CVR Energy Inc.

Greetings. Welcome to CVR Energy Incorporated third quarter 2021 conference call. At this time, all participants are in a listen-only mode. A 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. Please note this conference is being recorded. I will now turn the conference over to Richard Roberts, Director of FP&A, and Investor Relations. Thank you. You may begin.

Thank you, Sherry. Good afternoon, everyone. We very much appreciate you joining us this afternoon for our CVR Energy Third Quarter 2021 Earnings Call. With me today are Dave Lamp, our Chief Executive Officer, Dane Newman, our Chief Financial Officer, and other members of management. Prior to discussing our 2021 Third Quarter results, let me remind you that this conference call may contain forward-looking statements, as that term is assigned 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 of 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. Let me also remind you that CVR Partners completed a 1 for 10 reverse split of its common units on November 23, 2020. Any per-unit references made on this call are on a split-adjusted basis. This call also includes various non-GAAP financial measures. The disclosures related to such non-GAAP financial measures, including reconciliation to the most directly comparable GAAP financial measures, are included in our 2021 third quarter earnings release that we filed with the SEC and form 10Q for the period and will be discussed during the call. With that said, I'll turn the call over to Dave.

Thank you, Richard. Good afternoon, everyone, and thank you for joining our earnings call. Before I get into our results, I wanted to make a few comments about some exciting developments. While we believe fossil fuels will certainly be necessary for many years to come, we recognize that renewable fuels are an important part of the future. For this reason, we began exploring utilizing excess hydrogen capacity at our refineries for renewable diesel production nearly two years ago. and have invested nearly $150 million on those initiatives. We believe we are uniquely positioned given our transportation and logistical connection to the Farm Belt, and we intend to be in the forefront of this green revolution. We have made progress on several fronts since our last call and are accelerating our efforts with the Board's recent approval of the feed pretreater at Winniewood at an estimated cost of $60 million. I'll provide more details later in the call. Yesterday we reported third quarter consolidated net income of $106 million and earnings per share of $0.83. EBITDA for the quarter was $243 million. Our facilities ran well during the quarter and continued strength in prices for refined products and nitrogen fertilizer led to both segments once again posting increases in EBITDA year over year. For our petroleum segment, The combined total throughput for the third quarter of 21 was approximately 211,000 barrels per day as compared to 201,000 barrels per day in the third quarter of 2020, which was impacted by some weather-related power outages. Both refineries ran well in the quarter, and we continued to process WCS at our Coffeyville refinery due to weak WCS prices and cushion. Benchmark cracks increased through the quarter despite elevated rent prices. The Group 3 2-1-1 crack averaged $20.50 per barrel in the third quarter as compared to $8.34 in the third quarter of 2020. Based on the 2020 RVO levels, RIN prices averaged approximately $7.31 per barrel in the third quarter, an increase of 177% from the third quarter of 2020. The Brent TI differential averaged $2.71 per barrel per barrel in the third quarter compared to $2.72 in the prior period. Light product yield for the quarter was 100% on crude oil processed. We continued to optimize refinery operations to ensure maximum capture via maximizing production of distillate and higher margin products, LPG recovery, and rinse generation. In total, we gathered approximately 112,000 barrels per day of crude oil during the third quarter of 2021, compared to 124,000 barrels per day in the same period last year. We continue to see some declines in production across our system due to limited drilling activity, although our gathering rates have stayed ahead of overall decline rates across the Antioch Basin. Some rigs were added in both Oklahoma and Kansas over the past few months, but drilling activity has been slower to increase than we would have expected. In the fertilizer segment, both plants ran well during the quarter, with a consolidated ammonia utilization of 94%. The rally in fertilizer prices that began earlier this year continued to the third quarter, with prices breaking normal seasonal patterns and continued to rise through the summer. With low fertilizer inventories and continued strong demand for crop inputs, the outlook remains positive for our fertilizer segment. Now let me turn the call over to Dave to discuss some of our financial highlights.