Rentech Nitrogen Partners, L.P.

Goldman Sachs Seventeenth Annual

Agribusiness Conference

Hunt Ramsbottom, CEO

February 26, 2013

Forward-Looking Statements
This presentation contains forward-looking statements. These statements are
based on managements current expectations and actual results may differ
materially as a result of various risks and uncertainties. Other factors that
could cause actual results to differ from those reflected in the forward-looking
statements are set forth in the Companys press releases and periodic public
filings with the Securities and Exchange Commission, which are available via
Rentech Nitrogens website at www.rentechnitrogen.com. The forward-looking
statements in this presentation are made as of the date of this presentation
Rentech Nitrogen does not undertake to revise or update these forward-looking
statements, except to the extent that it is required to do so under applicable
law.

Rentech Nitrogen Partners, L.P.

Publicly traded MLP with variable distribution
Two fertilizer production facilities with strategic
locations and premium product pricing

East Dubuque Facility

Pasadena Facility

Located in East Dubuque, IL

Primary products: ammonia & UAN
Customers in the heart of U.S. Corn
Belt
Natural gas feedstock
Expansion project underway

Located along the Houston Ship

Channel in Pasadena, TX
Largest producer of synthetic
granulated ammonium sulfate in North
America; other products: ammonium
thiosulfate and sulfuric acid
Customers primarily west of MS River
and in Brazil
Several organic growth opportunities
identified
3

Diversified Markets

East Dubuques
Core Market1

Pasadenas AS
Sales2
Volume Range (st)

Color

Pasadena Facility
Location

10,600 to 67,500
8,400 to 10,600
5,100 to 8,400
1,000 to 5,100
0 to 1,000
Leased warehouse locations from marketers
1Core

market is within a 200 mile radius of the East Dubuque facility.

on historical sales at the Pasadena facility.

Low-cost Gulf access to

Southwest and Central
U.S. as well as export
markets

2Based

Diversified Product Mix

Rentech Nitrogens main products provide two of the most important

nutrients to crops
Nitrogen - most important nutrient in determining crop yields
Products: ammonia, UAN, ammonium sulfate, ammonium
thiosulfate, and urea
Sulfur - helps crops efficiently utilize nitrogen and phosphate
Products: ammonium sulfate and ammonium thiosulfate
Other products: DEF, nitric acid and sulfuric acid

Ammonium Sulfate

Ammonia

Multiple Fertilizers for Diversified Crop Solutions

Corn

Alfalfa

Cotton

Canola

Potato

Soybean

Ammonia, UAN, Ammonium Sulfate, Urea & Ammonium Thiosulfate

Wheat

Attractive Product Margins

Ammonia margins have improved with the structural change in pricing of natural gas
Ammonium Sulfate margins have been relatively stable through several ammonia cycles

$1,000

$800

(US$ / short ton)

Ammonia Corn Belt Margin(1)

$600

$400
Ammonium Sulfate Margin
Southern Plains(2)
$200

$0
2005

2006

2007

2008

2009

2010

2011

2012

Source: Green Markets, Bloomberg September 17th, 2012.

(1)Corn Belt Margin is calculated by subtracting the product of 35 times the spot price of Henry Hub Natural Gas from the Mid Corn Belt FOB Ammonia
price.
(2)Raw Material Margin is calculated by subtracting 25% of the price of Tampa FOB Ammonia and 25% of the price of Sulfur Central Florida from the
price of Southern Plains FOB Ammonium Sulfate.

Growth Opportunities
Future growth opportunities at both facilities

East Dubuque Facility

Ammonia capacity and storage expansion: Completion expected 4Q13

Pasadena Facility

Ammonium sulfate debottlenecking project: Completion expected in 2H14

~23% production increase

20% capacity increase

Cogeneration opportunity

Terminalling opportunity

Potential acquisition opportunities in fertilizer

and related industries

Acquisition criteria:

A significant portion of income qualifies for MLP treatment

Assets we know how to operate and would provide geographic
diversification
EBITDA in the range of $20-$50M

As of 10/8/12

East Dubuque Facility

Location, Location, Location

Customers within 200 mile radius

of facility

Dakota Gasification Company (Beulah, ND)

Niota, IL
Green Valley (Creston, IA)

Koch (Ft. Dodge, IA) Our Facility (East Dubuque, IL)

CF (Port Neal, IA)

Core market: IL, IA and WI

Koch (Beatrice, NE)

Acres of corn

Koch (Dodge City, KS)

Nitrogen fertilizer consumption in

our market area exceeds
production by:

Not Estimated

PCS (Lima, OH)

CVR (Coffeyville, KS)
CF (Woodward, OK)
Terra Nitrogen (Verdigris, OK)
Koch (Enid, OK)
El Dorado (Cherokee, AL)

<10,000
10,00024,999

CF (Yazoo City, MS)

El Dorado (El Dorado, AR)

25,00049,999
50,00099,999

Mosaic (Donaldsonville, LA) CF (Donaldsonville, LA)

Ammonia: ~4.0x

UAN: ~1.4x

100,000149,999

Potash Corp. (Geismar, LA)

150,000>
Nitrogen Fertilizer
Facilities

IL, IA, WI Nitrogen Consumption

Ammonia and UAN consumption

in IL, IA and WI have increased
by 20% and 14%, respectively,
since 2000

(Thousands of Product Tons)

2,500
UAN
2,000
1,500
Ammonia
1,000
500
0
2000

Source: Blue Johnson and USDA

10

2002

2004

2006

2008

2010

Location Provides High Avg. Net Sales Prices

Prices in Mid Corn Belt are higher than other regions due to cost of freight and
proximity to customers

Freight costs from Gulf Coast into Mid Corn Belt typically $80 - $120 / ton for
ammonia and $35 - $50 / ton for UAN

Our customers typically pick up product from our facility by truck

1st , 2nd, & 3rd Qtr. 2012 Ammonia Sales Prices Per Ton

Average Annual Net Ammonia Sales Prices Per Ton1

4-Yr
Avg.
$558

$800
726

$600

4-Yr
Avg.
$441

4-Yr
Avg.
$448

588
539

$673

514

$478
$436

365
332

$568 $578
$518

$517

486

467

377

$613

$600

514
473

$695
$620

579
472

$400

$800

4-Yr
Avg.
$380

$458

$383

$400
316

304
252

$200

$200

$0

$0
Rentech Nitrogen
Partners

2008

2009

Terra Nitrogen

2010

CVR Partners

RNF

Potash Corp.

1st Qtr. Ammonia Price

2011

TNH

CVR

2nd Qtr. Ammonia Price

POT

3rd Qtr. Ammonia Price

(1) CF Industries and Agrium only report their respective average gross sales prices per ton of ammonia. Reported weighted average gross sales price per ton of ammonia

for the three years ended September 30, 2011 was $509 and $450 for CF Industries and Agrium, respectively.

11

Strong Margins: Low Input Costs

Natural gas typically represents approximately 50% of our cost of goods sold

Fertilizer prices have increased while natural gas prices have declined in the
U.S., increasing margins
Low fixed costs; no need to maintain a fleet of trucks or railcars
3Q12 gross margin of 58%, up from 33% in 3Q11
U.S. Natural Gas Prices vs. Western Europe1

Ammonia vs. Natural Gas2

Natural Gas Price ($ per MMBtu)

Ammonia Price ($ per ton)

Natural Gas Prices ($/MMBtu)

$18.00

Natural Gas Cost ($ per MMBtu)

$1,200

$16

$16.00

$14

$1,000

$14.00

$775

$10.60

$12.00

$800

$10

$10.00

$600

$8.00
$6.00
$4.00

$6
$3.41

$200

$2.00
$0.00
Jan-07

$8

$400

$3.34

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

$0

2001

Henry Hub

2002

2003

2004

2005

2006

2007

2008

2009

National Balancing Point (NBP)

Ammonia

Source: Green Markets, Bloomberg

1 European prices converted from GBP/Therm to $/MMBtu, based on daily exchange rate
Historical Sources: NBP Weekly Spot Rate, Henry Hub Weekly Spot Rate

Nat Gas

Source: Green Markets, Bloomberg

2

12

$4
$2

$0

Jan-13

$12

Ammonia and Natural Gas pricing through January 2013

2010

2011

2012

Current View
We currently have a different view than the USDA:

Corn acres will be similar to last year; approx. 96M acres

Drought conditions will continue in the western corn belt

Yield recoveries of 150 155 bu/acre; not 163.6 bu/acre

Dont see world recovery of inventories in one year; will take multiple years

Expect corn prices to range between $5 - $7/bu; not at $4.80/bu

Dec. 2013 is currently $5.56; Dec 2014 is $5.45
China placed an order for new crop corn, willing to pay $5.50/bu

13

Completed Urea/DEF Expansion

Completed urea/DEF expansion: Increased capacity and created new
product line
Increased urea production capacity by 15% or 21,900 tons annually
Additional tons to be used for DEF production; Net U.S. DEF demand expected
to exceed 1.3 billion gallons in 20191
Installed mixing, storage, & load-out equipment for DEF production

Long-term contract with Yara for sale and distribution of DEF based on index
pricing
Completed in 4Q12; Total capex of approximately $7M

Estimates as of 1/15/13
1 Engine Manufacturers Association

14

Future Growth Opportunities

Ammonia Capacity & Storage Expansion: Completion expected in 4Q13

Increasing ammonia production capacity by 23% or 70,000 tons annually,
bringing total ammonia production capacity to 370,000 tons
Increasing on-site ammonia storage capacity by 20,000 tons, bringing total onsite storage to 60,000 tons
Increasing ammonia loading capacity by 50%
Total capex approx. $100 million based on FEED engineering by Black &
Veatch; financed with multiple draw capex facility

Estimates as of 8/10/12

15

Pasadena Facility

Facility Acquisition: Rentech Nitrogen Pasadena

Rentech Nitrogen acquired Agrifos fertilizer production facility in

Pasadena, TX in 2012

Largest producer of synthetic granulated ammonium sulfate in North

America
Strategically located in the Houston Ship Channel
Majority of sales in U.S. and Brazil
Acquisition closed November 1st, 2012

Expected to provide incremental cash flow1

EBITDA expected to be approx. $25 million in 2013, before one-time

integration costs
Accretive to per unit cash distributions beginning in 2013

Diversifies the products, markets, location, and raw materials of our

East Dubuque Facility

1An

explanation of EBITDA, a non-GAAP financial measure, and a reconciliation of projected EBITDA to operating income is included in our press release dated 11/1/2.

17

Location, Location, Location

Rentech Nitrogen Pasadena plant site is located

on approximately 85 acres in Pasadena, Texas

6,200 feet of Houston Ship Channel frontage

2 deep-water docks, providing access for international deliveries

Low-cost barge access to the Mississippi waterway system

Access to key waterways for international deliveries
Significant supply of raw materials in the immediate vicinity

Rail service by BNSF and Union Pacific

Ammonium Sulfate Granulator Plant

Advantage for distributing product west of the Mississippi

Unit trains allows for favorable transportation costs
Sulfuric Acid Plant

Easy access to several interstate highways

Deep-Water Dock

18

Pasadena Facilitys Products Overview

Primary Product: Ammonium Sulfate

AS is a heavily utilized dual-nutrient fertilizer product: 21% nitrogen /

24% sulfur

High quality solid fertilizer sold at premium pricing

Multiple crop application including soybeans, wheat,
canola and alfalfa
Less seasonable variability than Corn Belt ammonia and UAN
Usually applied via broadcast blended application

Secondary Products: Sulfuric Acid and Ammonium Thiosulfate

Sulfuric Acid

33% sulfur / 65% hydrogen

Made directly from elemental sulfur and suitable for most industrial applications

Ammonium Thiosulfate

Co-product of the sulfuric acid production process: 12% nitrogen / 26% sulfur
Liquid fertilizer, typically combined with UAN
Helps increase nitrogen use efficiency in crops
Typically applied via spraying or drip system

Note: Revenue represents year to date sales from January 1 - October 31, 2012.

19

corn, potatoes, cotton,

Rentech Nitrogen Pasadenas High Quality AS Product

Rentech Pasadena produces and sells a premium product in an industry dominated by lower quality
material
Synthetic granulated AS product combines sulfuric acid and ammonia
Majority of AS produced worldwide is a lower grade by-product of the caprolactam production process

Only 20%-25% of AS production worldwide is of similar quality

Physical characteristics and benefits of Rentech Pasadenas AS product include:
Sized to the specifications of other nitrogen, phosphate and potash fertilizer products
Less segregation during the blending process
Improved stability and enhanced shelf life
Reduced caking during transportation and storage

Ammonium Sulfate as By-Product of

Caprolactam Production Process

RNFs Ammonium Sulfate

Granular Material

20

Direct Application Coarse (Mid-Granularity)

Rentech Nitrogen Pasadena:

Major AS Producer in North America
Top 5 Ammonium Sulfate Producers in North America:
Total AS Production

Synthetic AS Production

Company

(synthetically & by-product)

Annual
Production (tpy)

Company

Annual Production
(tpy)

~575K

~1,850K

~385K

~725K

~215K

~575K

~140K

~385K

~25K

~315K

Source: Blue Johnson, except for Agrifos production, which is stated at nameplate capacity.
All producers listed produce ammonium sulfate for agricultural sale except for GAC Chemical Corporation which produces ammonium sulfate for industrial use.

21

Historical Ammonium Sulfate Pricing & Margin

Ammonium Sulfate Prices and Margin Over Raw Materials
($ per short ton)

$500
$450
$400

$350
$300
$250
$200
$150

$100
$50
$0
1/3/2005

1/3/2006

1/3/2007

1/3/2008

1/3/2009

Ammonium Sulfate (Southern Plains)

1/3/2010

1/3/2011

1/3/2012

Margin over raw materials

Source: Green Markets

Notes on margin over raw materials calculation:

Includes 25% of the indexed price of ammonia and 25% of the indexed price of sulfur.
Reflects Tampa Ammonia and Central Florida sulfur indexed prices.

A $1/ton increase in ammonia pricing results in a $0.25/ton increase in ammonium sulfate raw materials cost
22

Future Growth Projects

Ammonium Sulfate Debottlenecking Project: Pre-financed through new debt

capacity1

Plan to begin work in 2013 to increase AS capacity by 20% from 1,750 tpd to 2,100 tpd
Engineering studies completed
Additional production should contribute to distributions in 2H14
SA available for sale (lowest margin product) will decline by over 50% to increase AS production (highest
margin product)

Potential Cogeneration Project: May be financed through accordion feature of new

debt facilities2

Can install steam turbine and use steam currently being vented from SA plant to produce
baseload power
Facility could consume some of the power generated (electricity expense declines) with
remaining power exported and sold in deregulated TX market (revenue generation)

Potential terminalling of fertilizer or other products using existing assets, deep

water docks and bulk solid and liquid storage capacity

Estimates as of 11/1/12
1Included in our financing package for this transaction.
2Accordion feature of debt financing package for this transaction requires additional lending commitments.

23

Financial Forecast and Summary

Consolidated RNF Pro Forma Revenue & Gross Profit by

Major Product

Revenue by Major Product

Gross Profit by Major Product

Ammonium Thiosulfate

Ammonium Thiosulfate

Sulfuric Acid

Sulfuric
Acid
Nitric Acid

Ammonium
Sulfate

Ammonia

Ammonia
UREA - Granulated &
Liquor
Ammonium Sulfate

UAN
UAN
UREA Granulated &
Liquor

Nitric Acid

25
25

Snapshot: Rentech Nitrogen Partners, L.P.

Rentech Nitrogen Partners, L.P. (NYSE: RNF)
Market Capitalization1:

$1.45B
Cash: $55.5M

Liquidity:

Debt Capacity: $300M

Debt outstanding as of 11/1/12: $182M
Payout 100% of cash available for distribution

Distribution:
2012 distribution of $128M or $3.30 per unit2

Current Yield1:

~ 9%

Tax Shield3:

60% through 12/31/13

Rentech, Inc. (NYSE MKT: RTK) & owner of 60% of units

General Partner:

No parent IDRs
Non-economic general partner

1As
2As
3As

of 2/22/13
of 1/24/13
contained in RNFs prospectus dated 11/3/11

26

Rentech Nitrogen: Diversified Fertilizer Company

Ammonia Hedge

The Pasadena facility buys approximately the same amount of

ammonia as East Dubuque sells
Captures ammonia premium between Tampa and Corn Belt
Pasadena plant purchases ammonia based on lower Tampa prices
and East Dubuque sells ammonia at higher Corn Belt prices

Attractive Product
Margins

Ammonia margins benefit from the structural change in natural gas

Ammonium sulfate margins have been relatively stable through
ammonia cycles
Ammonium sulfate prices historically correlate with prices of
ammonia and sulfur

Diversified Crops &

Markets

Corn, soybeans, potatoes, cotton, canola, alfalfa, and wheat

Broad geographic coverage including Brazil
Demand is spread throughout the year

Multiple Locations

Multiple locations mitigate impact of any site-specific events

Diversified location and products provide alternative revenue
streams

East Dubuque Facility

Future Accretive Growth

Opportunities

~23% ammonia production capacity increase & storage expansion

Pasadena Facility
20% increase in AS capacity through debottlenecking project
Cogeneration and terminalling opportunities
27

Rentech Nitrogen Partners, L.P.

Goldman Sachs Seventeenth Annual
Agribusiness Conference

Hunt Ramsbottom, CEO

February 26, 2013