CVR Partners

Greetings, and welcome to the CVR Partners Third Quarter 2024 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, 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 Pythosh, our Chief Executive Officer, Dane Newman, our Chief Financial Officer, and other members of management. Prior to discussing our 2024 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, public 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 of the most directly comparable GAAP financial measures, are included in our 2024 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 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 third quarter call. The summarized financial highlights for the third quarter of 2024 include net sales of $125 million, net income of $4 million, EBITDA of $36 million, and the Board of Directors declared a third quarter distribution of $1.19 per common unit which will be paid on November 18 to unit holders of record at the close of the market on November 8th. Our facilities ran well during the third quarter of 2024, with consolidated ammonia plant utilization of 97%. Combined ammonia production for the third quarter of 2024 was 212,000 gross tons, of which 61,000 net tons were available for sale, and UAM production was 321,000 tons. During the quarter, we sold approximately 336,000 tons of UAN at an average price of $229 per ton and approximately 62,000 tons of ammonia at an average price of $399 per ton. Relative to the third quarter of 2023, ammonia sales volumes were in line and UAN sales volumes were lower as a result of some unplanned downtime at the upgrading units at both facilities. Prices for the third quarter increased from the third quarter last year with ammonia prices increasing 9% and UAN prices increasing 3%. After the peaks in nitrogen fertilizer pricing we saw over the past few years, we believe we're currently in a more of a mid-cycle type of environment, and we were encouraged to see ammonia and UAN prices for the third quarter increasing relative to the third quarter of last year. Demand for summer UAN fill and ammonia fall prepay were strong, and customer inventory levels have been low ahead of fall. As a result, we have seen prices continue to increase for both ammonia and UAN since summer, which I will discuss further in my closing remarks. I will now turn the call over to Dane to discuss our financial results.