CVR Partners

Greetings, and welcome to the CVR Partners' fourth 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, Vice President of Financial Planning and Analysis in 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 fourth quarter and four-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. 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 2024 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 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, and thank you for joining us for today's call. The summarized financial highlights for the fourth quarter of 2024 included net sales of $140 million, net income of $18 million, EBITDA of $50 million, and the Board of Directors declared a fourth quarter distribution of $1.75 per common unit, which will be paid on March 10, 2025, to unit holders of record at the close of the market on March 3. For the full year 2024, we reported EBITDA of $179 million and distributions of $6.76 per common unit. We had another year of solid operations from our facilities with an ammonia utilization rate of 96% for the year. At East Dubuque, We set new records in 2024 for ammonia utilization rate of 102%, as well as ammonia production volumes at approximately 399,000 tons. We're also proud to report continued improvement in our safety metrics in 2024 with a 40% reduction in total recordable incident rate compared to 2023. For the fourth quarter of 2024, our ammonia plant utilization was 96%. This resulted in total ammonia production of 210,000 gross tons, of which 80,000 net tons were available for sale. Total UAN production was 310,000 tons, substantially all of which was sold at an average price of $229 per ton, and we sold approximately 97,000 tons of ammonia at an average price of $475 per ton. Relative to the fourth quarter of 2023, ammonia sales volumes were in line and UAM sales volumes were down approximately 3%, partially due to the challenging weather conditions during the fall application. Fourth quarter prices for ammonia increased approximately 3%, and UAM prices declined approximately 5% relative to the prior year period. Despite some unfavorable weather conditions in the fourth quarter, we saw good demand for nitrogen fertilizer that drove prices higher compared to the third quarter, and we had strong shipments from our facilities. Supply and demand for nitrogen fertilizer products have been tight to start the new year, and prices have continued to increase. With the recent rally in grain prices, market conditions look favorable for the spring planting season, which I will discuss further in my closing remarks. I will now turn the call over to Dane to discuss our financial results.