CVR Energy Inc.

Greetings and welcome to the CBR Energy Inc. second quarter 2020 conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Richard Roberts, Investor Relations Manager. Thank you, sir. You may begin.

Thank you, Michelle. Good afternoon, everyone. We very much appreciate you joining us this afternoon for our CBR Energy second quarter 2020 earnings call. With me today are Dave Lamp, our chief executive officer, Tracy Jackson, our chief financial officer, Dave Landreth, our chief commercial officer, and other members of management. Prior to discussing our 2020 second quarter results, let me remind you that this conference call may contain forward-looking statements as that term is defined under federal securities laws. For this purpose, Any statements made during this call that are not statements of historical facts may be deemed to be forward-looking statements. Your caution that these statements may be affected by important factors set forth in our filings with the Securities and Exchange Commission and in our latest earnings release. As a result, actual operations or results may differ materially from the results discussed in the forward-looking statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law. This call also includes various non-GAAP financial measures. The disclosures related to such non-GAAP measures, including reconciliation to the most directly comparable GAAP financial measures, are included in our 2020 second quarter earnings release that we filed with the SEC and Form 10Q for the period and will be discussed during the call. With that, I'll turn the call over to Dave.

Thank you, Richard. Good afternoon, everyone, and thank you for joining our earnings call. Yesterday, we reported the second quarter consolidated net loss of $32 million. and a loss per share of 5 cents. EBITDA for the quarter was 68 million. Narrow crack spreads, tight crude differentials, and lower throughput volumes all impacted our results for the quarter. The Board of Directors did not approve a dividend for the second quarter of 2020 in light of both ongoing challenges to our business presented by the COVID-19 pandemic and potential opportunities for higher return uses of cash in the near term. This includes major projects like the Winnie Wood Renewable Diesel project that I will discuss shortly, as well as potential acquisition opportunities. The Board felt it was prudent to preserve liquidity while we wait for refined product demand return, and as we work toward final decision on our other potential uses of cash. For the petroleum segment, the turnaround at Coffeyville was completed in April. Although the plant restarted later than we originally planned due to the impacts of COVID-19, we did avoid some of the weakest product cracks in the quarter while Coffeyville was down. After completing the turnaround in April, we ran the plant at reduced rates until mid-June. Winniewood operated in a similar, operated at similar reduced rates for much of the quarter before returning to full operations in mid-June. The combined total throughput for the second quarter of 2020 was approximately 156,000 barrels per day as compared to 216,000 barrels per day for the second quarter of 2019. The Group 3 2-1-1 crack spread averaged $8.75 in the second quarter of 2020 as compared to $20.67 per barrel in the second quarter of 2019. The Brent TI averaged $5.39 per barrel in the second quarter compared to $8.56 per barrel in the second quarter of 2019. The Midland Cushing differential was $0.40 per barrel over WTI. in the quarter compared to $2.27 per barrel under WTI in the second quarter of 2019. The WCS differential to TI was $9.45 per barrel as compared to $12.63 per barrel in the same period last year. Light product yield for the quarter was 98% on crude processed. Our distillate yield as a percent of total crude oil throughputs was 42% the second quarter of 2020 compared to 44% the prior year. Product prices favored gasoline over diesel at times during the quarter. In total, we gathered approximately 82,000 barrels a day of crude oil during the second quarter of 2020 as compared to 120,000 barrels for the same period last year. With the collapse of crude oil, prices during the quarter, we saw dramatic declines in production volumes in our gathering regions. As prices began to rebound, we saw those volumes coming back. Our current gathered volumes are over 120,000 barrels per day. In the fertilizer segment, we had strong utilization at both of our facilities during the quarter. The Coffeyville utilization, the ammonium Unit was 98% for the quarter, and at East Dubuque, the ammonium plant operated at 101 utilization for the quarter. Weather conditions were favorable for spring fertilizer application, and planted corn acres increased by over 2 million acres compared to last year. Nitrogen fertilizer prices currently remain soft due to ample supply in the market and lower natural gas prices, although cheap natural gas lowers our feedstock cost as well. Now let me turn the call over to Tracy to discuss some additional financial highlights.