LSB Industries, Inc.

Good day, ladies and gentlemen, and welcome to the LSB Industries Third Quarter 2022 Earnings Conference Call. All lines have been placed in the listen-only mode, and the floor will be open for questions and comments following the presentation. If you should require assistance throughout the conference, please press star zero on your telephone keypad to reach a live operator. At this time, it is my pleasure to turn the floor over to your host, Fred Bonacore. Sir, the floor is yours. Good morning, everyone.

Joining me today are Mark Behrman, our Chief Executive Officer, and Cheryl McGuire, our Chief Financial Officer. Please note that today's call will include forward-looking statements, and because the statements are based on the company's current intent, expectations, and projections, they are not guarantees of future performance, and a variety of factors could cause the actual results to differ materially. As this call will include references to non-GAAP results, please see the press release in the Investors section of our website, lsbindustries.com, for further information regarding forward-looking statements and reconciliations of non-GAAP results to GAAP results. At this time, I'd like to go ahead and turn the call over to Mark.

Thank you, Fred. We're happy to have the opportunity to speak with you today about our 2022 third quarter results and our outlook for the final quarter of the year. As summarized on page three of our presentation, we generated strong year-over-year growth aided by continued strong pricing environment and solid execution. Notably, we delivered these favorable results despite having performed turnarounds on two of our facilities versus only one turnaround in the third quarter of last year. The El Dorado turnaround began in mid-July and was completed in mid-August, while the prior turnaround began just after Labor Day and was completed in mid-October. Successfully executing two turnarounds back-to-back was a substantial undertaking and we completed them both safely. We expect improved planned performance from these activities. I'd like to thank our teams at both facilities for their tremendous efforts. Fortunately, we have no turnaround scheduled for 2023, which would be beneficial to our 2023 production and sales volumes as compared to 2022 and 2021, and allow us to focus on the continued progression of our manufacturing capabilities and growth initiatives. On page four of our presentation, we provide an overview of our end markets. Corn prices remain above multi-year averages, driven by a variety of global factors, including drought conditions in the U.S. and South America and continued strong global demand. Domestic and worldwide stock-to-use ratios for corn remain at multi-year lows. Based on this supply construct, We believe that corn prices will remain elevated for the remainder of 2022 and through 2023, and that farm profitability will remain attractive, pointing to a meaningful increase in planted acres this spring. As we move into November, assuming the weather permits, we expect U.S. farmers will make a heavy fall ammonia application in order to replenish nutrients in the soil to promote higher yields for their 2023 crop. Longer term, We believe that it will take two to three years of good corn growing seasons to bring back the stock-to-use ratios back in line with historical averages. Demand for our industrial products remains largely stable. Industrial product pricing trends continue to be favorable, reflecting the impact of strong demand and continued strength in pricing for nitrogen fertilizers. The mining market has strengthened considerably over the past year as a surge in global coal mining activity has led to an increase in demand and pricing for our mining products. Similar to the industrial markets, the mining markets are currently competing with fertilizer demand, lifting prices of these products as well. The demand and pricing trends we're seeing across our business add to our confidence in strong profitability and cash flow for the fourth quarter of 2022, and we remain optimistic about 2023. Now I'll turn over the call to Cheryl, who will discuss our Q3 results and our outlook.