CVR Partners

Greetings and welcome to the CVR Partners third 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, Richard Roberts. Senior Manager of FP&A and Investor Relations. Thank you, sir. You may begin.

Thank you, Christine. Good morning, everyone. We appreciate your participation in today's call. With me today are Mark Pytosh, our Chief Executive Officer, Tracy Jackson, our Chief Financial Officer, and other members of management. Prior to discussing our 2020 third 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 disposures related to such non-GAAP measures, including reconciliation to the most directly comparable GAAP financial measures, are included in our 2020 third quarter earnings release that we filed with the SEC yesterday after the close of the market. Let me also remind you that we are a variable distribution MLP. We will review our previously established reserves, current cash usage, evaluate future anticipated cash needs, and may reserve amounts for other future cash needs as determined by our general partners' boards. As a result, our distributions, if any, will vary from quarter to quarter due to several factors, including, but not limited to, operating performance, fluctuations in the prices received for finished products, capital expenditures, and cash reserves deemed necessary or appropriate by the Board of Directors of our General Partner. With that, I'll turn the call over to Mark Pytosh, our Chief Executive Officer.

Mark? Thank you, Richard. Good morning, everyone, and thank you for joining us for today's call. The summarized financial highlights for the third quarter of 2020 included net sales of $79 million, a net loss of $19 million, and EBITDA of $15 million. We repurchased 1.4 million CVR Partners common units for $1.3 million. And there's no cash available for distribution this quarter. During the third quarter of 2020, we had strong utilization at both facilities. The Coffeeville, the ammonia plant operated at 97% utilization compared to the third quarter of 2019 at 98%. At East Dubuque, the ammonia plant operated at 99% utilization compared to 97% in the prior year period adjusted for last year's scheduled turnaround. Our combined operations produced approximately 215,000 gross tons of ammonia, of which 71,000 net tons were available for sale for the third quarter of 2020. This compares the production of 196,000 gross tons of ammonia, of which 56,000 net tons were available for sale in the prior year period. We produced 330,000 tons of UAN in the third quarter of 2020, as compared to 318,000 tons in the prior year period. During the third quarter of 2020, we sold approximately 365,000 tons of UAN at an average price of $140 per ton, and approximately 54,000 tons of ammonia at an average price of $242 per ton. Year-over-year pricing softened for UAN and ammonia, which are down 23% and 28% respectively. Natural gas pricing was lower as well, helping to offset some of the UAN and ammonia price weakness. Although prices for nitrogen fertilizers have been softer this year, recently we've seen improvements in crop prices and farm economics that make us cautiously optimistic about an uptick in fertilizer pricing from these levels. The supply and demand balance for corn is looking more favorable and market conditions are improving, which I will discuss further in my closing remarks. I will now turn the call over to Tracy to discuss our financial results.