CVR Partners

Greetings. Welcome to CVR Partners LP 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 IR. Thank you. You may begin.

Thank you, Sherry. Good morning, everyone. We appreciate your participation in today's call. With me today are Mark Pytosh, 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 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. Let me 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 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 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 third quarter of 2021 include net sales of $145 million, net income of $35 million, EBITDA of $64 million, and the Board of Directors declared a third quarter distribution of $2.93 per common unit, which will be paid on November 22, 2021, to unit holders of record at the close of the market on November 12, 2021. During the third quarter of 2021, we operated the plant safely and reliably with consolidated ammonia plant utilization of 94%. We experienced approximately five days of downtime at the Coffeyville facility due to an outage at the third-party air separation facility and approximately two days of downtime at both facilities due to externally driven power outages. During the handful of unplanned outages at Coffeyville this year, we used the downtime to complete enough maintenance work that we were able to safely defer the planned turnaround, allowing us to take advantage of the current strong market conditions. Our combined operations produced approximately 205,000 gross tons of ammonia, of which 65,000 net tons were available for sale for the third quarter of 2021. This compares to production of 215,000 gross tons of ammonia of which 71,000 net tons were available for sale in the prior year period. We produced 314,000 tons of UAN in the third quarter of 2021 as compared to 330,000 tons in the prior year period. During the third quarter of 2021, we sold approximately 322,000 tons of UAN at an average price of $305 per ton and approximately 52,000 tons of ammonia at an average price of $507 per ton. Relative to the third quarter of 2020, UAN ammonia sales volumes were down slightly driven by decline in production volumes due in part to the previously mentioned outages during the quarter. Year-over-year pricing was 118% higher for UAN and 110% higher for ammonia. The rally in nitrogen fertilizer prices that began earlier this year extended through the summer, and prices have continued to move higher in the fall. Fertilizer inventory levels remain tight across the U.S. as heightened turnaround activity over the summer and multiple plant shutdowns following Hurricane Ida further reduced available supply in the market. With the energy crunch in Europe and Asia causing a number of fertilizer plant shutdowns and reducing supplies even further, the primary concern in the market is availability of fertilizers, and that is fueling the persistent move higher in prices, which I will discuss further in my closing remarks. I will now turn the call over to Dane to discuss our financial results.