Icahn Enterprises L.P.

Good morning and welcome to the Icon Enterprises LPQ2 2021 earnings call with Jesse Lynn, General Counsel, Eris Kakajian, President and CEO, and David Willits, Chief Financial Officer. I would now like to hand the call over to Jesse Lynn, who will read the opening statement.

Thank you, Operator. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements we make in this presentation. including statements regarding our future performance and plans for our businesses and potential acquisitions. Forward-looking statements may be identified by words such as expects, anticipates, intends, plans, believes, seeks, estimates, will, or words of similar meaning and include but are not limited to statements about the expected future business and financial performance of Icon Enterprises, LP, and its subsidiaries. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors that are discussed in our filings with the Securities and Exchange Commission, including economic, competitive, legal and other factors, including the severity, magnitude and duration of the COVID-19 pandemic. Accordingly, there is no assurance that our expectations will be realized. We assume no obligation to update or revise any forward-looking statements should circumstances change, except as otherwise required by law. This presentation also includes certain non-GAAP financial measures. A reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the back of this presentation. I'll now turn it over to Aris Kakajian, our Chief Executive Officer.

Thanks, Jesse. Good morning and welcome to the second quarter 2021 Icahn Enterprises Earnings Conference Call. Joining me on today's call is David Willits, our Chief Financial Officer. I will begin by providing some brief highlights. David will then provide an in-depth review of our financial results and the performance of our business segments. We will then be available to address your questions. For Q2 2021, we had net loss attributable to Icon Enterprises of $136 million, or 53 cents per LP unit, compared to net income of $299 million, or $1.36 per LP unit, in the prior year period. The quarterly net loss was primarily driven by interest expense on our senior unsecured notes and income taxes offset in part by gains in our investment segment. Adjusted EBITDA attributable to Icon Enterprises for Q2 2021 was $192 million compared to $696 million for Q2 of 2020. Our investment funds had a positive return of 1.4% for Q2 of 2021 compared to 11.7% for Q2 of 2020. The positive performance was driven by net gains in certain long equity positions, primarily in the energy industry, offset in part by net losses in our short index and short single-name equity positions. Adjusted EBITDA attributable to ICON Enterprises at our energy segment decreased by $10 million to $49 million for Q2 of 2021, compared to $59 million in the prior year period. Our petroleum business was positively impacted by higher throughput volumes, and increased product cracks offset by exorbitant rinse pricing. Our fertilizer business continues to benefit from strong pricing for both ammonia and UAN. Net sales and service revenues for our automotive segment was $637 million for Q2 of 2021. We continue to see our automotive service business revenues return to pre-pandemic levels. As a reminder, Icahn Automotive Groups continues to push forward with a multi-year transformational plan to restructure operations and improve profitability, which is illustrated by the reduction in losses in Q2 versus the prior year quarter. We have substantially completed the legal separation of our automotive service business from our aftermarket parts business, which will position the service business for new growth and value-enhancing opportunities. In April of 2021, Icahn Enterprises issued $455 million of 5.25 senior unsecured notes due in 2027. The proceeds were used to repay the remaining $455 million principal amount of 6.25 senior unsecured notes due in 2022. For the six months ended June 30, 2021, indicative net asset value increased by $956 million to $4.5 billion, compared to $3.55 billion as of December 31, 2020. we closed the quarter with cash and investments in the funds of over 6.9 billion finally the board declared a two dollar quarterly distribution payable in either cash or additional units with that let me turn it over to david thank you eris i'll begin by briefly reviewing our consolidated results and then highlight the performance of our operating segments and comment on the strength of our balance sheet for q221 for the three months ended june 30th