CVR Partners

on your telephone keypad. As a reminder, this conference is being recorded. I'd now like to turn the conference over to your host, Mr. Richard Roberts, Senior Manager of FP&A and Investor Relations for CVR Partners. Thank you. You may begin.

Thank you, Melissa. 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 2021 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. You are 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 remind you that CVR Partners completed a one-for-ten 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 second 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 Board. 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 said, 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 second quarter of 2021 included net sales of $138 million, net income of $7 million, EBITDA of $51 million, And the Board of Directors declared a second quarter distribution of $1.72 per common unit, which will be paid on August 23rd, 2021 to union or hold as your record at the close of the market on August 13th. During the second quarter of 2021, we operated the plant safely and reliably with consolidated ammonia plant utilization of 98%. Demand for UAM was strong throughout the quarter, with supply impacted by a number of other nitrogen fertilizer plants that faced operating issues following the shutdowns related to winter storm URI. Our combined operations produced approximately 217,000 gross tons of ammonia, of which 70,000 net tons were available for sale for the second quarter of 2021. This compares to production of 216,000 gross tons of ammonia, of which 79,000 net tons were available for sale in the prior year period. We produced 334,000 tons of UAN in the second quarter, of 2021 as compared to 321,000 tons in the prior year period. During the second quarter of 2021, we sold approximately 370,000 tons of UAN at an average price of $237 per ton and approximately 80,000 tons of ammonia at an average price of $403 per ton. Relative to the second quarter of 2020, UAN sales increased while ammonia sales declined as less ammonia was required due to the strong fall 2020 ammonia application. Year-over-year pricing was 44% higher for UAN and 21% higher for ammonia. Nitrogen fertilizer prices have increased significantly since the start of the year, and that strength continued through the spring planting season and into the summer. Fertilizer inventory levels remain tight across the US due in part to URI-related shutdowns earlier in the year and the deferred turnaround activity from 2020 that is now being completed. The continued strength in crop prices and tight inventory levels has kept pricing firm for nitrogen fertilizers, and we have a good order book already for the fall, which I will discuss further in my closing remarks. I will now turn the call over to Tracy to discuss our financial results.