CVR Partners

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, Mr. Richard Roberts, Vice President of FP&A and IR for CVR Partners LP. Please go ahead, sir.

Thank you, Melissa. 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 2022 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 TVR 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 2022 second quarter earnings release that we filed with the SEC for the period. Let me also remind you that we are a variable distribution NLP. 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 2022 include net sales of $244 million, net income of $118 million, EBITDA of $147 million, and the Board of Directors declared a second quarter distribution of $10.05 per common unit, which will be paid on August 22nd to unit holders of record at the close of the market on August 12th. During the second quarter of 2022, we operated the plant safely with consolidated ammonia plant utilization of 89%. We experienced approximately five days of downtime at Coffeyville due to a power outage, and approximately three days of downtime due to an outage at the third-party air separation facility. At East Dubuque, we experienced approximately six days of downtime during the quarter due to a number of different outages. As I mentioned on the last few earnings calls, a major part of the plan for the upcoming turnaround at East Dubuque should address a number of the issues that resulted in the downtime over the last few quarters. In addition, while the Coffeyville facility is down for turnaround, the operator at the third-party air separation facility is completing a significant investment intended to improve its reliability. Our combined operations produced approximately 193,000 gross tons of ammonia, of which 50,000 net tons were available for sale for the second quarter of 2022. This compares to production of 217,000 gross tons of ammonia, of which 70,000 net tons were available for sale in the prior year period. We produced 331,000 tons of UAN in the second quarter of 2022 as compared to 334,000 tons in the prior year period. During the second quarter of 2022, we sold approximately 287,000 tons of UAN at an average price of $555 per ton and approximately 52,000 tons of ammonia at an average price of $1,182 per ton. Relative to the second quarter of 2021, UAN and ammonia sales volumes were lower, primarily due to the late start to spring application due to cold and wet weather, along with some demand destruction due to the high fertilizer price environment. Year-over-year average pricing for the quarter was 134% higher for UAN and 193% higher for ammonia. Despite the poor weather in the spring impacting sales volumes, we posted another quarter record earnings as the elevated price environment in the spring more than all set the decline in sales volumes. Fertilizer inventory levels coming out of spring were higher for producers across the industry than anticipated, but we expect this will get cleaned up over the summer. During this time, we will be completing turnarounds at both our facilities. Looking ahead to the fall, we continue to see tight market conditions globally, and we believe the structurally higher energy costs in Europe and around the world will cause prices to remain elevated, which I will discuss further in my closing remarks. I will now turn the call over to Dane to discuss our financial results.