CF Industries Holdings, Inc.

Good day, ladies and gentlemen, and welcome to CF Industries 2022 first nine months and third quarter financial results. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. We will facilitate a question and answer session towards the end of the presentation. To pose a question at any time, please press star then one on your touchtone phone. 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 third quarter and first nine months 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 results for the third quarter and first nine months of 2022, in which we generated adjusted EBITDA of $1 billion and $4.6 billion, respectively. On a trailing 12-month basis, our adjusted EBITDA was $5.8 billion, and our free cash flow was a whopping $3.7 billion. Our industry-leading EBITDA to free cash flow conversion efficiency is an incredible 63%. These results reflect continued outstanding execution by the CF Industries team. Our plants are running well, and we continue to leverage our distribution and logistics capabilities to navigate rapidly changing global environment. Most importantly, we have done all of this safely. At the end of the quarter, our 12-month recordable incident rate was 0.29 incidents per 200,000 labor hours, well below industry averages. our team's remarkable performance took place against a backdrop of a very tight global nitrogen supply-demand balance. As Bert will explain in a moment, we believe the dynamics underpinning this environment will remain in place for an extended period, namely strong agricultural-led demand and high energy prices in Europe and Asia. Based on this outlook, we expect to continue generating substantial free cash flow. which will enable us to invest prudently in high return growth projects, while at the same time returning significant capital to shareholders. We remain focused on our clean energy growth initiatives, highlighted by the development of our blue ammonia capacity. Most recently, we reached a landmark carbon capture and sequestration agreement with ExxonMobil for our Donaldsonville, Louisiana complex. We have also moved our joint venture blue ammonia project with Mitsui into the feed study phase. We believe that our focus on disciplined investments and partnerships with global leaders will keep us at the forefront of the developing market for low carbon ammonia. We also remain committed to returning capital to shareholders through share repurchases and dividends. At the end of the third quarter, we have brought our outstanding share count below 200 million for the first time on a stock split adjusted basis. Given the confidence we have for our continued high level of free cash generation going forward, along with the fact that our shares have an LTM free cash flow yield of over 19%, as shown on slide six of our materials, we have established a new $3 billion share repurchase program to follow on after we complete our existing authorization. With that, let me turn it over to Bert, who will discuss the global nitrogen market in more detail.