CF Industries Holdings, Inc.

Good day, ladies and gentlemen, and welcome to CF Industries' 2022 first half and second quarter financial results. My name is Gary. I will be your coordinator for today. At this time, all participants are in a listen-only mode. We will facilitate a question and answer session toward the end of the presentation. To pose a question at any time, please press star 1 on your touchtone telephone keypad. Please note, this event is being recorded. I would now like to turn the presentation over to the host for today, Mr. Martin Jarosik with CF Investor Relations. Sir, please proceed.

Good morning, and thanks for joining the CF Industries Earnings Conference Call. With me today are Tony Will, CEO, Chris Bone, CFO, and Bert Frost, Senior Vice President of Sales, Market Development, and Supply Chain. CF Industries reported its results for the first half of 2022 yesterday afternoon. On this call, we'll review the results, discuss our outlook, and then host a question and answer session. Statements made on this call and in the presentation on our website that are not historical facts are forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied in any statements. More detailed information about factors that may affect our performance may be found in our filings with the SEC, which are available on our website. Also, you'll find reconciliations between GAAP and non-GAAP measures in the press release and presentation posted on our website. Now, let me introduce Tony Will, our president and CEO.

Thanks, Martin, and good morning, everyone. Yesterday afternoon, we posted our financial results for the first half of 2022, in which we generated adjusted EBITDA of $3.6 billion. On a trailing 12-month basis, we generated adjusted EBITDA of $5.3 billion, net cash from operations of $4.4 billion, and free cash flow of $3.6 billion, all of which are new company records. To put this into context, our previous full-year adjusted EBITDA record was $3.3 billion, which was set back in 2012. We exceeded this mark through just the first six months of this year. This all-time record free cash flow is coupled with our lowest share count ever, and the benefits to our shareholders are shown on slides 14, 15, and 16 of our materials. Our performance was made possible by the outstanding execution of the CF Industries team against a backdrop of wide energy spreads between North America and high cost production in Europe and Asia. Looking ahead, in the near term, we expect global nitrogen demand to be underpinned by the ongoing need to replenish global grain stocks. Longer term, we anticipate meaningful new demand to develop from low-carbon ammonia in clean energy applications beginning in the next couple years. Over this period, we believe the global LNG market will remain structurally tight as European and Asian economies compete for scarce LNG cargoes, keeping natural gas prices high in these regions, which should support continued wide energy spreads favoring North American producers. Given this outlook, we expect to generate substantial free cash flow for an extended period. This will enable us to return significant capital to shareholders, while we also make disciplined investments to grow our low-carbon ammonia production footprint. Our Blue Ammonia Project at Donaldsonville and our partnership with Mitsui position us to supply a substantial volume of low-carbon ammonia beginning in 2025, just as significant demand emerges. Taking together our growth initiatives and shareholder return programs position us well to create meaningful shareholder value in the years to come. With that, let me turn it over to Bert, who will discuss global nitrogen market conditions in more detail.