CVR Partners

Greetings. Welcome to CVR Partners LP's third quarter 2022 conference call. At this time, all participants are in listen-only mode. The question and answer session will follow the formal presentation. If anyone today should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference is being recorded. At this time, I'll now turn the conference over to Richard Roberts, Vice President of P&A and INR. Mr. Roberts, you may now begin.

Thank you, Rob. 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 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. 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 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 third 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 they 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 third quarter earnings call. The financial highlights for the third quarter of 2022 include net sales of $156 million, a net loss of $20 million, EBITDA of $10 million, and the Board of Directors declared a third quarter distribution of $1.77 per common unit, which will be paid on November 21st to unit holders of record at the close of the market on November 14th. During the third quarter of 2022, we successfully completed the planned turnarounds at the Coffeyville and East Dubuque facilities on time and in line with budget. During the turnarounds, we completed an extensive amount of work that should allow the facilities to run at higher utilization rates than they have over the past year. We currently do not anticipate any additional planned turnaround activity until the fall of 2024. In addition to the downtime for the plant turnarounds, we also experienced approximately 11 days of downtime at the Coffeyville facility due to two outages at the third-party air separation facility. While Coffeyville was down for its turnaround, the operator of the third-party air separation facility completed a $19 million investment intended to improve its reliability. For the third quarter of 2022, our consolidated ammonia plant utilization was 52%. This resulted in combined ammonia production of 114,000 gross tons, of which 36,000 net tons were available for sale, and UAN production of 184,000 tons. During the quarter, we sold approximately 275,000 tons of UAN at an average price of $433 per ton and approximately 27,000 tons of ammonia at an average price of $837 per ton. Relative to the third quarter of 2021, UAN and ammonia sales volumes were lower as a result of the planned turnarounds this year. Prices for the third quarter improved significantly from last year, with ammonia prices increasing 65% and UAN prices increasing 42%. Despite completing two turnarounds in one quarter, we are pleased to be paying a distribution to our unit holders for the sixth consecutive quarter, bringing total distributions over the past six quarters to nearly $24 per unit. Looking ahead, we believe the strong market for nitrogen fertilizers will persist through 2023 as a result of continued tight market conditions globally, which I will discuss further in my closing remarks. I will now turn the call over to Dane to discuss our financial results. Thank you, Mark.