CVR Partners

Greetings and welcome to the CVR Partners fourth quarter 2022 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, Vice President of Financial Planning and Analysis 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, Dane Newman, our Chief Financial Officer, and other members of management. Prior to discussing our 2022 fourth quarter and full year 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 also 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 fourth quarter earnings release, that we filed with the SEC and form 10-K for the period and will be discussed during the call. 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. Thank you for joining us for today's call. The summarized financial highlights for the fourth quarter of 2022 included net sales of $212 million, net income of $95 million, EBITDA of $122 million, And the Board of Directors declared a fourth quarter distribution of $10.50 per common unit, which will be paid on March 13th, 2023 to unit holders of record at the close of the market on March 6th. For the full year 2022, we reported EBITDA of $403 million and record distributions of $24.58 per common unit, all while completing planned turnarounds of both of our facilities during the year. We also repurchased approximately 112,000 CVR Partners common units, and we completed our targeted debt reduction with the repayment of the final $65 million of 9.25% notes that were outstanding. We are proud to report continued improvement in our environmental health and safety metrics in 2022 with only one recordable injury for the entire year for a total recordable incident rate of 0.3, a reduction of 86% compared to 2021. We also achieved a 37% reduction year-over-year in Tier 1 process safety incidents. In December, we published our first external ESG report for 2021 in conjunction with CDR Energy, which can be found on our website. Our facilities ran well during the fourth quarter of 2022 with consolidated ammonia plant utilization of 96%. This resulted in combined ammonia production of 210,000 gross tons of which 75,000 net tons were available for sale and UAN production of 308,000 tons. During the quarter, we sold approximately 261,000 tons of UAN at an average price of $455 per ton and approximately 77,000 tons of ammonia at an average price of $967 per ton. Relative to the fourth quarter of 2021, UAN and ammonia sales volumes were lower, primarily due to reduced inventories carried into the quarter as a result of the planned turnarounds completed in the third quarter of 2022. Prices for the fourth quarter improved significantly from the prior year period with UAN prices increasing 31% and ammonia prices increasing 30%. Following the completion of the turnarounds in the third quarter, Both facilities have run well, and we achieved record ammonia production in the month of December at East Dubuque and last month in January 2023 at Coffeyville. As expected, our realized prices for the fourth quarter increased from third quarter levels as we sold a significant amount of our production early in the quarter when pricing was strong. We also sold more than half of first quarter 2023 production in 2022, which I will discuss further in my closing remarks. I will now turn the call over to Dane to discuss our financial results.