CVR Partners

Greetings and welcome to the CBR Partners first quarter 2025 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, 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 Pytosh, our Chief Executive Officer, Dane Newman, our Chief Financial Officer, and other members of management. Prior to discussing our 2025 first 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 filing 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 2025 first 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 call. The summarized financial highlights for the first quarter of 2025 include net sales of $143 million, net income of $27 million, EBITDA of $53 million, and the Board of Directors declared a first quarter distribution of $2.26 for a common unit, which will be paid on May 19th to unit holders of record at the close of the market on May 12th. Our facilities ran well during the first quarter of 2025 with consolidated ammonia plant utilization of 101%. Combined ammonia production for the first quarter of 2025 was 216,000 gross tons, of which 64,000 net tons were available for sale, and UAN production was 348,000 tons. During the quarter, we sold approximately 336,000 tons of UAN at an average price of $256 per ton and approximately 60,000 tons of ammonia at an average price of $554 per ton. relative to the first quarter of 2024, total production and sales volumes were higher, with minimal downtime at either facility in the first quarter of this year. Ammonia prices increased 5% from the prior year period as a result of earlier shipments of volumes expected to be delivered in the second quarter, while UAN prices declined 4% due to some delayed shipments of 2024 fill season volumes. Overall, we had a strong start to 2025, and we believe the setup is favorable heading into the spring. Inventories of nitrogen fertilizer are generally tight across the system, and demand remains solid, which has been supportive of continued increases in pricing for the spring. Farmer economics also remain attractive, and with the favorable weather recently, we're looking forward to a strong 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.