Greetings and welcome to the CVR Partners third quarter 2025 conference call. At this time, all participants are in listen-only mode. A brief question and answer session will follow the formal presentation. 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, Eric. 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 third quarter results, let me remind you that this conference call may contain forward-looking statements as that term is defined under federal securities 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 were cautioned that these statements may be affected by important factors set forth our filings for 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 loaded to such non-GAAP measures, including reconciliation to the most directly comparable GAAP financial measures, are included in our 2025 third quarter earnings of the lease 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 seem 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 third quarter of 2025 include net sales of $164 million, net income of $43 million, EBITDA of $71 million, and the Board of Directors declared a third quarter distribution of $4.02 cents per common unit which will be paid on November 17 to unit holders of record at the close of the market on November 10th. For the third quarter of 2025 our consolidated ammonia plant utilization was 95 percent which was impacted by some planned and unplanned downtime at both facilities during the quarter. Combined ammonia production for the third quarter of 2025 was 208,000 gross tons of which 59,000 net tons were available for sale and UAN production was 337,000 tons. During the quarter, we sold approximately 328,000 tons of UAN at an average price of $348 per ton and approximately 48,000 tons of ammonia at an average price of $531 per ton. Relative to the third quarter of 2024, sales volumes were down slightly, primarily as a result of low inventory levels at the end of the second quarter following the strong demand in the first half of 2025. UAN and ammonia prices increased 52% and 33% respectively from the prior year period, driven by tight inventory levels across the system as a result of elevated demand and reduced supply associated with domestic and international production outages. Overall, we had a strong third quarter with UAN pricing above levels we saw in the spring, and we believe the setup is favorable for the remainder of the year and into the first half of 2026 domestic and global inventories of nitrogen fertilizer remain tight and that has been supportive of higher prices which i will discuss further in my closing remarks i will now turn the call over to dane to discuss our financial results thank you mark for the third quarter of 2025 we reported net sales of 164 million and operating income of 51 million that income for the quarter was 43 million four dollars and eight cents per common unit and EBITDA was $71 million.

Relative to the third quarter of 2024, the increase in EBITDA was primarily due to a combination of higher UAN and ammonia sales pricing. Direct operating expenses for the third quarter of 2025 were $58 million. Excluding inventory impacts, direct operating expenses increased by approximately $7 million relative to the third quarter of 2024, primarily due to higher natural gas and electricity costs and some preliminary spending associated with coffee pills plan turnaround during the third quarter of 2025 we spent 13 million on capital projects of which 7 million was maintenance capital we estimate total capital spending for 2025 be approximately 58 to 65 million of which 39 to 42 million is expected to be maintenance capital we anticipate a significant portion of the profit and growth capital spending plan for 2025 will be funded through cash reserves taken over the past two years we ended the quarter with total liquidity of $206 million, which consisted of $156 million in cash and availability under the EBL facility of $50 million. Within our cash balance of $156 million, we had approximately $28 million related to customer prepayments for the future delivery of product. In assessing our cash available for distribution, we generated EBITDA of approximately $71 million, had net cash needs of $34 million for interest costs, maintenance capex, and other reserves, and had $6 million released from previous reserves. As a result, there was $42 million of cash available for distribution, and the board of directors of our general partner prepared a distribution of $4.02 per common unit. Looking ahead to the fourth quarter of 2025, we estimate our ammonia utilization rate to be between 80 and 85%, which will be impacted by the planned turnaround currently underway at the Coffeyville facility. We expect direct operating expenses, excluding inventory and turnaround impacts, to be between $58 and $63 million, and total capital spending to be between 30 and 35 million. Turnaround expense is expected to be between 15 and 20 million. With that I will turn the call back over to Mark.

Thanks Dane. Harvest is currently on schedule and nearing completion. The USDA is estimating yields of approximately 187 bushels per acre on 98.7 million acres of corn and inventory carryout levels of approximately 13 percent. Soybean yields are estimated to be 54 bushels per acre on 81 million acres planted with inventory carryout levels of 7%, although the soybean numbers will likely be impacted by ongoing trade friction with China. Both of these carryout estimates are at or below the 10-year averages. Grain prices have remained at the lower end of the last 12-month range, driven primarily by expectations of large crop production in Brazil and North America this year, and potential trade disputes where the purchase of grains may be used as a negotiating tool when reaching trade agreements. December corn prices are approximately $4.30 a bushel and November soybeans are approximately $10.90 per bushel. The Trump administration and congressional leaders have indicated they intend to provide a subsidy program for farmers to help offset lower grain prices and higher input cost geopolitical conflicts are continuing to impact the nitrogen fertilizer industry in the third quarter ukraine continued to target nitrogen fertilizer plants and export infrastructure in russia after the large planting seasons in the u.s and brazil and the loss of production due to geopolitical factors fertilizer inventory levels across the industry have been tight and are taking time to replenish we expect these these conditions to persist into the spring of 2026. The wildcard continues to be the potential for tariffs on Russian fertilizer imports that could have significant impacts on pricing in the near term. Natural gas prices in Europe have been steady since our last earnings call and remained around $11 per MMBTU currently, while U.S. prices continue to range between $3 and $4 per MMBTU. As we near winter, Europe has refilled its natural gas inventories at a lower level than normal and there's a risk of prices moving higher if the winter is cooler than expected. The cost to produce ammonia in Europe has remained durably at the high end of the global cost curve and production remains below historical levels, which has created opportunities for U.S. Gulf Coast producers to export ammonia to Europe for upgrade. We continue to believe Europe faces structural natural gas supply issues that will likely remain in effect through 2026. We are nearing the completion of the planned turnaround at our Coffeyville facility. In the early phases of the turnaround, we experienced an ammonia release, which we currently anticipate could delay the completion of turnaround work by a few days relative to the original schedule. We expect the facility to resume full production in the next few weeks. As a reminder, we are currently planning for a 35-day turnaround at our Eastern Butte facility in the third quarter of 2026. At our Coffeyville facility we continue to work on a detailed design and construction plan to allow the plant to utilize natural gas and additional hydrogen from the adjacent Coffeyville refinery as alternative feedstocks to third-party pet coke. This project could also expand Coffeyville's ammonia production capacity by up to eight percent. We also continue to execute certainty bottlenecking projects at both plants that are expected to improve reliability and production rates. These include water quality upgrade projects in both plants and the expansion of our DEF production and loadout capacity. The goal of these projects is to support our target of operating the plants at utilization rates above 95% of nameplate capacity, excluding the impact to turnarounds. The funds needed for these projects are coming from the reserves taken over the last two years and the board elected to continue reserving capital in the third quarter. While the board looks at reserves every quarter, I would expect them to continue to elect to reserve some capital, and we anticipate holding higher levels of cash related to these projects in the near term as we ramp up execution and spending, which we expect will take place over the next two to three years. The third quarter continued to demonstrate the benefits of focusing on safety, reliability, and performance. In the quarter, we executed on all the critical elements of our business plan, which includes safely and reliably operating our plants with a keen focus on the health and safety of our employees, contractors, and communities, prudently managing costs, being judicious with capital, maximizing our marketing and logistics capabilities, and targeting opportunities to reduce our carbon footprint. In closing, I would like to thank our employees for their safe execution during a few brief outages in the quarter, achieving 95% ammonia utilization and the solid delivery on our marketing and logistics plans, resulting in a distribution of $4.02 per common unit for the third quarter. With that, we're ready to answer any questions. Eric?

Thank you. We will now be conducting a question and answer session. If you'd like to ask a question, please press star followed by the number one on your telephone keypad. Our first question comes from the line of Rob McGuire with Granite Research. Please go ahead.

Good morning, Mark, Dane, and Richard. Thank you for taking my questions. Could you, Mark, go back to the Coffeyville natural gas feedstock project? I apologize, but can you just… I think I missed… When do you anticipate that to start? And are you at a point where you can talk to us about total costs for the project and what you expect in terms of returns?

I'm not ready to talk about finalizing the final cost and returns yet. We're in detailed engineering, so we need to kind of confirm some things about that in terms of configuration or reconfiguration. and the infrastructure needs. But everything looks like it's kind of penciling out the way we thought it would. It's a combination project to be clear. Part of it is taking additional hydrogen from the refinery. The refinery has a reformer unit so we are talking about taking additional hydrogen from the refinery plus replacing potentially replacing pet coke as a feedstock for a portion with natural gas but the hydrogen component would be an increase in our production capacity so it's a combination project that includes the ability to replace feedstock plus bring additional hydrogen which means additional ammonia capacity. That's what I've been referring to in my comments about up to 8% increase in our production capacity. So we have been reserving for that project and so we will have the capital available set aside for that and I'm expecting by the next call to be able to talk with more specifics on that project and moving ahead there. But so far all the engineering work that's coming back and the construction plans look on track with what we thought the original plan was.

Well, thank you. I appreciate that. Shifting gears, any concerns about drought conditions impacting ammonia runs in this ammonia application season?

Not in the markets where were placed. We've had some moisture here the last week particularly on the big ammonia run for us is up in the northern plains around east Dubuque and there's been moisture so I actually think conditions are as close to perfect as we could predict because the harvest is basically complete there so we've emptied the fields. The soil temperatures are down and moisture has come in in the last week. And that combination is about perfect conditions. And I'm expecting a big fall ammonia run. You know, the customers are telling us that we have a good book of business already, but people are coming in now with additional cash orders. And so I expect really a good of fall ammonia running. So I'm very optimistic.

Wonderful. And I mean, kind of just moving forward to that question, it's just how significant of an impact do you think it'll be for the acreage to be down this coming season, at least on anticipated acreage? And, you know, is it simply that inventories are down, supplies tight, so you're not concerned at all about selling your volume at elevated prices, or will there be an impact maybe even on imports?

So there's a couple different layers to the answer to that. Number one, we've been expecting that we were thinking that the acreage, corn acreage, this is corn acreage, would drop next year. um i'm i'm not as sure now uh based on you know well i'm still reading what happened this morning over in uh korea with trump and she but um the feeling in the marketplace is that the corn acreage won't drop as much because there's concern about what is the you know what are the end markets for soybeans and so maybe there's going to be more corn acres just on a defensive approach to protect against trade war behavior and so I actually think that the corn acreage might surprise on the upside versus you know a drop you know a lot of people were talking about drop to the low 90s which is still great you know that's that's a great corn run but it may not drop as far because I think farmers are of the belief that maybe the the end markets will be restricted for soybean exports, so we may end up in a better answer there. I would tell you that if you look at the inventory balances, we're tight and I think lower acreage, given where we are from an inventory perspective, probably won't impact as much in 26 as it normally would because quite frankly there's a rush to try to replenish what we have and you probably saw the announcement that Nutrien has shut down one of the Trinidad plants which is an importer to the U.S. and so that's going to affect the replenishment time frame. So I'm not terribly concerned about the acreage. We watch it closely but right now I think the market is in a position to absorb that.

That's really interesting. And then with regards to the Trinidad, and it's just looping Russia in on imports, are you seeing an impact in the marketplace on those imports at this point in time?

We have not seen any impact on Russian imports. In fact, Russia is the, particularly like in UAN, Russia is the marginal producer in the marketplace, and they've been exporting the U.S. in size, so there's been no effect. The fear factor in the market is if there's somehow a tariff or, you know, sanctioning of fertilizer coming to the market, that could be a big event from, you know, affecting supply. So that's a fear factor, but we haven't seen any signs. But during the course of this year, even with all the geopolitical events, there's been no restriction on the imports of Russian. And I'll focus more on UAN, but there's urea, too. But, you know, Russian UAN has been a big factor in the U.S.

Well, that's really helpful.

And, Mark, last question, and I certainly won't hold you to this, but I'd love to hear what your outlook is for the price of ammonia, UAN, and urea heading into fourth quarter. um you know it's um you know we never give out pricing for the you know for those products but it's going to be it's going to be a solid quarter um and so uh we've seen a strong market since um you know the uan field season and the ammonia prepay so uh pricing will be higher um in the fourth quarter versus 3Q, which it normally would be. So we'll see that show up in the results. And I'm optimistic. I'm not ready to prognosticate on pricing for spring, but I'm optimistic about the supply-demand balance and what we're going to see there. So I expect these sorts of market conditions to carry through the first half of 26.

Well, all that was really helpful. Thank you so much.

Thanks, Rob.

Thank you. We have reached the end of the question and answer session. I'd now like to turn the floor back over to management for closing comments.

Well, thanks everybody for participating in the call today and we look forward to reviewing our fourth quarter results with you in February. Have a nice day.

Ladies and gentlemen, this concludes today's call. You may disconnect your lines at this time. Thank you for your participation and Have a wonderful day.