CVR Partners

Greetings and welcome to the CVR Partners LP second quarter 2023 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 FP&A and IR. Thank you, Mr. Roberts. You may begin.

Thank you, Camilla. Good morning, everyone. We appreciate your participation in today's call. With me today are Mark Pytosh, our Chief Executive Officer, Dan Newman, our Chief Financial Officer, and other members of management. Prior to discussing our 2023 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 at the extent required by law. 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 2023 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 who 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 2023 include net sales of $183 million, net income of $60 million, EBITDA of $87 million, and the Board of Directors declared a second quarter distribution of $4.14 per common unit, which will be paid on August 21st to unit holders of record at the close of the market on August 14th. Our facilities ran well during the second quarter of 2023, and despite five days of downtime due to outages at the third-party air separation plant at Coffeyville, we achieved consolidated ammonia plant utilization of 100%. We also achieved new records for monthly ammonia production and daily ammonia shipments at East Dubuque in the quarter. Combined ammonia production for the second quarter of 2023 was 219,000 gross tons, of which 70,000 net tons were available for sale. and UAN production was 339,000 tons. During the quarter, we sold approximately 329,000 tons of UAN at an average price of $316 per ton and approximately 79,000 tons of ammonia at an average price of $707 per ton. Relative to the second quarter of 2022, UAN and ammonia sales volumes were higher as a result of improved operations following the completion of the planned turnarounds at both facilities in the third quarter of 2022. Prices for the second quarter declined from the second quarter of last year, with ammonia prices falling 40% and UAN prices falling 43%. While nitrogen fertilizer prices continued to decline through the second quarter, we sold more than 40% of our second quarter volumes in the first quarter at higher prices. Looking ahead, we believe we have seen the recent bottom in nitrogen fertilizer prices and expect to see prices increasing into the fall due to strong grain prices and farmer economics, which I will discuss further in my closing remarks. I will now turn the call over to Dane to discuss our financial results.