CVR Energy Inc.

Greetings and welcome to the CVR Energy, Inc. fourth 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. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Richard Roberts, Vice President of FP&A and Investor Relations for CVR Energy. Thank you, sir. You may begin.

Thank you, Melissa. Good afternoon, everyone. We very much appreciate you joining us this afternoon for our CVR Energy fourth 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 fourth quarter and full year 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. We were cautioned 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. Let me also remind you that the CVR part is completed at 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 measures, including reconciliation to the most directly comparable GAAP financial measures, are included in our 2021 fourth quarter earnings release that we filed with the SEC in Form 10-K 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. This morning, we reported CVR Energy's Full year and fourth quarter results. For the full year of 21, we reported a net income of $74 million inclusive of non-controlling interest or $25 million attributable to CVI shareholders. Earnings per diluted share were $0.25 for the full year of 2021. For the fourth quarter, we reported net income of $25 million inclusive of non-controlling interest and a net loss attributable to CVI shareholders of $14 million. Loss per diluted share was $0.14 for the fourth quarter. EBITDA for the year was $462 million, and for the quarter it was $116 million. While RIN prices remained stubbornly high and weighted on our refining results, fertilizer markets fundamentals continued to improve and drove another quarter of strong results for CVRs fertilizer business. Despite the challenges in the refining market in 2021, we continue to focus on safe, reliable operations. We continue to achieve significant year-over-year improvements in environmental health and safety metrics, including a 42% year-over-year reduction in environmental events. We are providing more ESG disclosures and we published our first internal ESG report for 2020. Work is progressing on a 2021 report that we plan to release publicly later this year. We also returned capital to our shareholders through a significant special dividend in the second quarter, totaling the equivalent of $492 million, or $4.89 per share. Turning to the fourth quarter results, For our petroleum segment, the combined total throughput for the fourth quarter of 2021 was approximately 222,000 barrels per day, as compared to 219,000 barrels per day for the fourth quarter of 2020. Both facilities ran well during the quarter, and we increased WCS processing at the Coffeyville Refinery due to widening spreads of WCS at Cushing. Benchmark cracks have improved significantly from a year ago. The Group 3 2-1-1 crack averaged $17 per barrel in the fourth quarter of 21. However, RINs consumed over 35% of that at approximately $6.19 per barrel. Group 3 2-1-1 averaged $8.44 per barrel in the fourth quarter of 2020 when RINs were $3.50 a barrel. The Brent TI differential averaged $2.71 per barrel in the fourth quarter compared to $2.49 in the prior year period. The Midland Cushing differential was $0.63 per barrel over WTI in the quarter compared to $0.37 per barrel over WTI in the fourth quarter of 2020. And the WCS to WTI differential was $16.60 per barrel compared to $11.44 per barrel in the same period last year. Light product yield for the quarter was 103% based on crude oil processed. Our distillate yield as a percentage of total crude oil throughputs was 44% in the fourth quarter of 2021, consistent with prior periods. In total, we gathered approximately 113,000 barrels per day of crude during the fourth quarter of 21 compared to 117,000 barrels per day for the same period last year. We continue to see a slight decline in production across our system due to limited drilling activities over the past year. However, we would expect to see additional wells being drilled with current prices firmly above $80 per barrel. In the fertilizer segment, consolidated ammonia utilization was 90% during the quarter, which was impacted by some unplanned downtime at both facilities. In October, we completed the installation of an additional CO2 compressor and an ammonia pump at our Coffeyville facility, which should increase UAN production capacity by approximately 100 tons per day. Fertilizer prices continued to increase through the fourth quarter, and prices currently look firm through the first half of the year. Now let me turn the call over to Dane to discuss our financial highlights.