CVR Partners

Greetings, and welcome to the CBR Partners Second Quarter 2024 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, Vice President of FP&A 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 2024 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 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. This call also includes various non-GAAP financial measures. The disclosures related to such non-GAAP measures, including reconciliation with the most directly comparable GAAP financial measures, are included in our 2024 second 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. 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, Chief Executive Officer. Mark? Mark Pytosh, Chief Executive Officer, Thank you, Richard.

Good morning, everyone, and thank you for joining our second quarter earnings call. The summarized financial highlights for the second quarter of 2024 include net sales of $133 million, net income of $26 million, EBITDA of $54 million, And the Board of Directors declared a second quarter distribution of $1.90 per common unit, which will be paid on August 19 to unit holders of record at the close of the market on August 12. Our facilities ran well during the second quarter of 2024 with consolidated ammonia plant utilization of 102%. Combined ammonia production for the second quarter of 2024 was 221,000 gross tons, of which 69,000 net tons were available for sale. and UAN production was 337,000 tons. During the quarter, we sold approximately 330,000 tons of UAN at an average price of $268 per ton and approximately 43,000 tons of ammonia at an average price of $520 per ton. Relative to the second quarter of 2023, UAN sales volumes were in line and ammonia sales volumes were lower as a result of volume shifting into the first quarter as favorable weather allowed farmers to apply ammonia earlier this year. Prices for the second quarter declined from the second quarter last year, with ammonia prices falling 26% and UAN prices falling 15%. Nitrogen fertilizer pricing for the second quarter remained fairly steady, with first quarter 2024 pricing, and we saw strong demand for ammonia and UAN for the spring planting season. We also sell better than expected pricing for the UAN fill and ammonia fall prepay ordering in July. And we have a good order book on for the fall, which I will discuss further in my closing remarks. I will now turn the call over to Dane to discuss our financial results.