CVR Partners

Greetings and welcome to the CVR Partners LP third quarter 2023 conference call. At this time, all participants are in 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, Director 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 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 upstate any forward-looking statements, whether as a result of new information, future events, or otherwise, except to 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 third quarter earnings release that we filed with the SEC for the period. 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 make 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 and 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 2023 include net sales of $131 million, net income of $1 million, EBITDA of $32 million, and the Board of Directors declared a third quarter distribution of $1.55 per common unit, which will be paid on November 20th to unit holders of record at the close of the market on November 13th. Our facilities continue to run well during the third quarter of 2023, with consolidated ammonia plant utilization at 99%. Combined ammonia production for the third quarter of 2023 was 217,000 gross tons, of which 68,000 net tons were available for sale. And UAN production was 358,000 tons. During the quarter, we sold approximately 387,000 tons of UAN at an average price of $223 per ton and approximately 62,000 tons of ammonia at an average price of $365 per ton. Relative to the third quarter of 2022, UA and ammonia sales volumes were higher as a result of both facilities completing planned turnarounds in the third quarter of 2022. Prices for the third quarter declined from the third quarter of last year, with ammonia prices falling 56% and UAN prices falling 48%. Following the reset of nitrogen fertilizer prices in July, Prices steadily rose throughout the summer, driven by a combination of strong demand and reduced supply as a result of planned and unplanned outages across the industry. Looking ahead, we believe market conditions affirmed for the fourth quarter, and we're optimistic about nitrogen fertilizer demand for 2024, which I will discuss in my closing remarks. I will now turn the call over to Dane to discuss our financial results.