CVR Partners LP (UAN) 2024 Q3 法說會逐字稿

Greetings, and welcome to the CVR Partners third quarter 2024 conference call.

您好，歡迎參加 CVR 合作夥伴 2024 年第三季電話會議。

(Operator Instructions) As a reminder, this conference is being recorded.

（操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Richard Roberts of Financial Planning and Analysis and Investor Relations.

現在我很高興向您介紹主持人，財務規劃與分析以及投資者關係部門的理查德·羅伯茨（Richard Roberts）。

Thank you, sir.

謝謝您，先生。

You may begin.

你可以開始了。

Thank you, Christine.

謝謝你，克里斯汀。

Good morning, everyone.

大家早安。

We appreciate your participation in today's call.

我們感謝您參加今天的電話會議。

With me today are Mark Pytosh, our Chief Executive Officer; Dane Neumann, our Chief Financial Officer; and other members of management.

今天與我在一起的有我們的執行長 Mark Pytosh； Dane Neumann，我們的財務長；以及其他管理層成員。

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.

在討論 2024 年第三季業績之前，請允許我提醒您，本次電話會議可能包含前瞻性陳述，因為該術語是根據聯邦證券法定義的。

For this purpose, any statements made during this call that are not statements of historical facts may be deemed to be forward-looking statements.

為此目的，本次電話會議期間所做的任何非歷史事實陳述的陳述都可能被視為前瞻性陳述。

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.

請注意，這些聲明可能會受到我們向美國證券交易委員會提交的文件以及最新收益報告中列出的重要因素的影響。

As a result, actual operations or results may differ materially from the results discussed in the forward-looking statements.

因此，實際營運或結果可能與前瞻性陳述中討論的結果有重大差異。

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.

我們沒有義務公開更新任何前瞻性陳述，無論是由於新資訊、公共事件或其他原因，除非法律要求。

This call also includes various non-GAAP financial measures.

此次電話會議也包括各種非公認會計準則財務指標。

The disclosures related to such non-GAAP measures, including reconciliation to 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.

與此類非 GAAP 指標相關的揭露，包括與最直接可比較的 GAAP 財務指標的調節，均包含在我們向 SEC 提交的 2024 年第三季財報中。

Let me also remind you that we are a variable distribution MLP.

我還要提醒您，我們是一個變數分佈 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 partner's Board.

我們將審查我們先前設立的儲備金、目前的現金使用情況，評估未來的預期現金需求，並可能為我們的普通合夥人董事會確定的其他未來現金需求儲備金額。

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.

因此，我們的分配（如果有）將因多種因素而每個季度有所不同，包括但不限於經營業績、成品價格的波動、資本支出和被認為必要的現金儲備或由我們的普通合夥人董事會批准。

With that said, I'll turn the call over to Mark Pytosh, our Chief Executive Officer.

話雖如此，我會將電話轉給我們的執行長馬克‧皮托什 (Mark Pytosh)。

Mark?

標記？

Thank you, Richard.

謝謝你，理查。

Good morning, everyone, and thank you for joining us for today's third quarter call.

大家早安，感謝您參加今天的第三季電話會議。

To summarize 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 unitholders of record at the close of the market on November 8.

總結 2024 年第三季的財務亮點包括淨銷售額 1.25 億美元、淨利 400 萬美元、EBITDA 3,600 萬美元，董事會宣布第三季分配為每普通單位 1.19 美元，將於 11 月支付18 日，向11 月8 日市場收盤時記錄在案的單位持有人發送。

Our facilities ran well during the third quarter of 2024, with consolidated ammonia plant utilization of 97%.

我們的設施在 2024 年第三季運作良好，氨廠綜合利用率為 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 UAN production was 321,000 tons.

2024年第三季合成氨產量為212,000總噸，其中可供銷售淨噸61,000噸，UAN產量為321,000噸。

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.

本季度，我們以每噸平均價格 229 美元的價格出售了約 336,000 噸 UAN，以每噸平均價格 399 美元的價格出售了約 62,000 噸氨。

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.

與 2023 年第三季相比，氨銷量持平，而 UAN 銷量則有所下降，原因是兩家工廠的升級裝置出現了一些計劃外停機。

Prices for the third quarter increased from the third quarter last year, with ammonia prices increasing 9% and UAN prices increasing 3%.

第三季價格較去年第三季上漲，其中氨價格上漲9%，尿素價格上漲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.

在經歷了過去幾年氮肥價格的高峰之後，我們認為目前處於一個週期中期的環境，我們很高興看到第三季氨和尿素價格相對上漲。

Demand for summer UAN fill, and ammonia fall prepay were strong and customer inventory levels have been low ahead of fall.

夏季 UAN 填充和秋季預付款氨需求強勁，秋季前客戶庫存水準較低。

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.

因此，自夏季以來，我們看到氨和 UAN 的價格持續上漲，我將在結論中進一步討論這一點。

I will now turn the call over to Dane to discuss our financial results.

我現在將把電話轉給戴恩，討論我們的財務表現。

Thank you, Mark.

謝謝你，馬克。

For the third quarter of 2024, we reported net sales of $125 million, and operating income of $11 million.

2024 年第三季度，我們的淨銷售額為 1.25 億美元，營業收入為 1,100 萬美元。

Net income for the quarter was $4 million, or $0.36 per common unit and EBITDA was $36 million.

該季度淨利潤為 400 萬美元，即每普通單位 0.36 美元，EBITDA 為 3,600 萬美元。

Relative to the third quarter of 2023, the increase in EBITDA was primarily due to a combination of higher market prices for ammonia, and UAN and lower feedstock and operating expenses.

與 2023 年第三季相比，EBITDA 的成長主要是由於氨和 UAN 市場價格上漲以及原料和營運費用下降。

Direct operating expenses for the third quarter of 2024 were $56 million.

2024 年第三季的直接營運費用為 5,600 萬美元。

Excluding inventory impacts, direct operating expenses decreased by approximately $3 million, relative to the third quarter of 2023, primarily due to lower natural gas and electricity costs.

排除庫存影響，直接營運費用較 2023 年第三季減少約 300 萬美元，主要是由於天然氣和電力成本下降。

During the third quarter of 2024, we spent $10 million on capital projects, which was primarily maintenance capital.

2024 年第三季度，我們在資本項目上花費了 1,000 萬美元，其中主要是維護資本。

We estimate total capital spending for 2024 to be approximately $39 million to $42 million, of which $31 million to $33 million is expected to be maintenance capital.

我們預計 2024 年的總資本支出約為 3,900 萬至 4,200 萬美元，其中 3,100 萬至 3,300 萬美元預計將用於維護資本。

We anticipate a significant portion of the profit and growth capital spending planned for 2024, will be funded through cash reserves taken over the past seven quarters.

我們預計 2024 年計畫的利潤和成長資本支出的很大一部分將透過過去七個季度的現金儲備提供資金。

We ended the quarter with total liquidity of $150 million, which consisted of $111 million in cash and availability under the ABL facility of $39 million.

截至本季末，我們的流動資金總額為 1.5 億美元，其中包括 1.11 億美元現金和 ABL 融資下的 3,900 萬美元可用資金。

Within our cash balance of $111 million, we had $31 million related to customer prepayments for the future delivery of product.

在我們 1.11 億美元的現金餘額中，我們有 3,100 萬美元與客戶未來交付產品的預付款相關。

In assessing our cash available for distribution, we generated EBITDA of $36 million, and had net cash needs of $23 million for interest costs, maintenance CapEx and other reserves.

在評估可用於分配的現金時，我們產生了 3,600 萬美元的 EBITDA，並且用於利息成本、維護資本支出和其他儲備的淨現金需求為 2,300 萬美元。

As a result, there was $13 million of cash available, for distribution and the Board of Directors of our general partner, declared a distribution of $1.19 per common unit.

因此，有 1300 萬美元的現金可供分配，我們的普通合夥人董事會宣布每個普通單位分配 1.19 美元。

Looking ahead to the fourth quarter of 2024, we estimate our ammonia utilization rate to be between 92% and 97%, with some potential downtime with the third-party air separation unit at Coffeyville expected in the quarter.

展望 2024 年第四季度，我們預計氨利用率將在 92% 至 97% 之間，預計本季度科菲維爾的第三方空分裝置可能會出現一些停機情況。

We expect direct operating expenses, excluding inventory impacts, to be between $60 million and $70 million, and total capital spending to be between $19 million and $23 million.

我們預計直接營運費用（不包括庫存影響）將在 6,000 萬美元至 7,000 萬美元之間，總資本支出將在 1,900 萬美元至 2,300 萬美元之間。

With that, I will turn the call back over to Mark.

這樣，我會將電話轉回馬克。

Thanks, Dane.

謝謝，丹恩。

In summary, we had another good quarter operationally with ammonia utilization of 97%, and we were pleased to see pricing for the third quarter of 2024 come in higher for both ammonia and UAN, compared to the third quarter of 2023.

總而言之，我們又度過了一個良好的季度，氨利用率達到 97%，我們很高興看到 2024 年第三季度氨和 UAN 的定價均高於 2023 年第三季度。

We saw strong demand for our products over the summer, which combined with plant disruptions and natural gas issues, in certain global markets has led to fertilizer prices increasing, from the levels we saw in early summer.

我們看到夏季對我們產品的強勁需求，再加上某些全球市場的工廠中斷和天然氣問題，導致化肥價格從初夏的水平上漲。

Harvest is nearing completion and ahead of schedule, and corn yields are expected to be the highest in history.

收穫已接近完成並提前，預計玉米產量將創歷史最高水平。

The USDA is estimating yields of almost 184 bushels per acre, on 91 million planted acres of corn, and inventory carryout levels of approximately 13%.

美國農業部估計 9,100 萬英畝玉米種植面積的產量接近每英畝 184 蒲式耳，庫存結轉水準約為 13%。

Soybean yields are estimated to be at 53 bushels per acre, on 87 million acres planted with inventory carryout levels, also estimated at around 13%.

大豆種植面積為 8,700 萬英畝，預計產量為每英畝 53 蒲式耳，庫存結轉水準也約為 13%。

Corn prices have been weaker with the expectation of a large US crop.

由於美國豐收的預期，玉米價格走軟。

And December corn prices are currently at $4.15 per bushel, roughly in line with prices from July.

12 月玉米價格目前為每蒲式耳 4.15 美元，與 7 月的價格大致一致。

With the early harvest, we believe conditions will be favorable for fall ammonia application, and prices for fourth quarter are up approximately $50 per ton for ammonia, and $10 per ton for UAN, compared to the fourth quarter of 2023.

隨著早期收穫，我們認為秋季氨施用的條件將有利，與 2023 年第四季相比，第四季氨價格每噸上漲約 50 美元，UAN 每噸價格上漲約 10 美元。

Geopolitical risks, continue to represent a wildcard for the nitrogen fertilizer industry, given the significant fertilizer production capacity residing in countries, across the Middle East, North Africa, and Russia.

鑑於中東、北非和俄羅斯等國家擁有龐大的化肥產能，地緣政治風險仍是氮肥業的一個不確定因素。

We continue to monitor developments in the Middle East that could impact energy and fertilizer markets, and we expect the remainder of 2024 and 2025 will likely be periods of higher than historical volatility in the business.

我們將繼續關注中東可能影響能源和化肥市場的發展，我們預計 2024 年剩餘時間和 2025 年業務波動可能會高於歷史波動。

Natural gas prices in Europe, have increased $1 to $2 since our last earnings call, trending around $13 per MMBtu for the fourth quarter, while US prices remain in the $2 to $3 per MMBtu range.

自我們上次財報電話會議以來，歐洲天然氣價格上漲了 1 至 2 美元，第四季度趨勢約為每 MMBtu 13 美元，而美國價格仍保持在每 MMBtu 2 至 3 美元範圍內。

Although the cost to produce nitrogen fertilizer in Europe has remained lower than in 2023, it is still at the high end of the global cost curve, particularly compared to the US.

儘管歐洲氮肥生產成本仍低於 2023 年，但仍處於全球成本曲線的高端，特別是與美國相比。

We continue to believe Europe faces structural natural gas market issues that, will likely remain in effect over the next two years.

我們仍然認為歐洲面臨結構性天然氣市場問題，這些問題可能在未來兩年內持續存在。

At our Coffeyville facility, we're progressing on detailed engineering studies on the potential to utilize natural gas, as an alternative feedstock to third-party pet coke, and we expect to have these studies completed later this year.

在我們的科菲維爾工廠，我們正在對利用天然氣作為第三方石油焦替代原料的潛力進行詳細的工程研究，我們預計這些研究將於今年稍後完成。

If this project is approved by the Board and successfully implemented, it give us the ability to choose the optimal feedstock mix, and be the only nitrogen fertilizer plant in the US with that flexibility.

如果該計畫獲得董事會批准並成功實施，我們將能夠選擇最佳的原料組合，並成為美國唯一具有這種靈活性的氮肥廠。

As a reminder, if this project were implemented, we would likely continue to utilize the pet cokes implied by the adjacent Coffeyville refinery, while the remainder of the feedstock can be flexed, between natural gas and pet coke depending on prevailing prices.

提醒一下，如果該項目得到實施，我們可能會繼續使用鄰近的科菲維爾煉油廠暗示的石油焦，而其餘原料可以根據現行價格在天然氣和石油焦之間靈活調整。

With crude oil prices down, we have seen a softening of pet coke prices in the US, and expect to see our pet coke cost decline in 2025.

隨著原油價格下跌，我們看到美國石油焦價格走軟，預計 2025 年石油焦成本將下降。

We also began implementing certain debottlenecking projects at both plants that are expected to improve reliability and production rates.

我們也開始在兩家工廠實施某些消除瓶頸項目，預計將提高可靠性和生產力。

The Board elected to continue reserving capital in the third quarter that, we expect to spend over the next two to three years as we focus on improving reliability and redundancy, at the two plants in efforts to provide better production rates, and lower downtime in the future.

董事會選擇在第三季繼續保留資本，我們預計在未來兩到三年內支出，因為我們專注於提高兩個工廠的可靠性和冗餘性，努力提供更好的生產力並減少停機時間未來。

We began spending capital on these projects in the third quarter of 2024, with funds coming from reserves taken over the last seven quarters.

我們於 2024 年第三季開始在這些專案上投入資金，資金來自過去七個季度提取的儲備金。

The third quarter continued to demonstrate, the benefits of focusing on reliability and performance.

第三季繼續證明了關注可靠性和性能的好處。

In the quarter, we executed on all of 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 cost, being judicious with capital, maximizing our marketing and logistics capabilities, and targeting opportunities to reduce our carbon footprint.

本季度，我們執行了業務計劃的所有關鍵要素，包括安全可靠地運營我們的工廠，高度關注員工、承包商和社區的健康和安全，審慎管理成本，明智地資本，最大限度地提高我們的營銷和物流能力，並尋找減少碳足跡的機會。

In closing, I'd like to thank our employees for their excellent execution, achieving 97% ammonia utilization and solid delivery on our marketing and logistics plans, resulting in a distribution of $1.19 per common unit for the third quarter.

最後，我要感謝我們的員工出色的執行力，實現了 97% 的氨利用率，並可靠地交付了我們的行銷和物流計劃，第三季度每個普通單位的分配為 1.19 美元。

With that, we are ready to take questions, Christine.

克里斯汀，我們準備好回答問題了。

(Operator Instructions)

（操作員說明）

Brian DiRubbio, Baird.

布萊恩·迪魯比奧，貝爾德。

Good morning, gentlemen.

早安，先生們。

A couple of questions for me.

有幾個問題問我。

First off, just with the river levels on the Mississippi abnormally low again.

首先，密西西比河的水位再次異常低。

Is that having a positive impact on corn belt prices for UAN and ammonia?

這對玉米帶的 UAN 和氨價格有正面影響嗎？

We haven't seen any major impacts on either of those.

我們還沒有看到對其中任何一個產生任何重大影響。

A lot of the ammonia was positioned already, and there's a lot of ammonia that moves into the corn belt from pipeline.

大量的氨已經被定位，並且有大量的氨從管道進入玉米帶。

And same on UAN, a lot of what's needed in corn belt moved by rail.

在 UAN 上也是如此，玉米帶中的許多東西都需要透過鐵路運輸。

So it hasn't had a big impact on the marketplace.

所以並沒有對市場造成太大的影響。

We're watching it closely more for grain movements.

我們正在密切關注穀物的走勢。

So as harvest is nearing completion, the ability to move grain could be impacted.

因此，隨著收穫即將完成，穀物運輸的能力可能會受到影響。

And so, we're following that closely to see, how high storage gets and the ability to move grain, from the Midwest to the Gulf.

因此，我們正在密切關注，看看儲存量有多高，以及從中西部向海灣運輸穀物的能力。

Got it.

知道了。

That's helpful.

這很有幫助。

Thank you.

謝謝。

And just with the Coffeyville natural gas project, I know you said you're going to complete some of the front-end engineering studies this quarter.

就科菲維爾天然氣專案而言，我知道您說過您將在本季完成一些前端工程研究。

But any rough guesstimates on how much that would cost?

但粗略估計這會花多少錢？

And how the company would look to fund that investment?

該公司將如何為這項投資提供資金？

I'll start with the second question first.

我先從第二個問題開始。

We've been setting aside reserves for growth capital, and that capital would be taken out of the reserve, if it's approved.

我們一直在為成長資本預留儲備金，如果獲得批准，該資本將從儲備金中扣除。

And we roughly think it's about a $10 million project.

我們粗略地認為這是一個價值 1000 萬美元的項目。

That's what we think now.

這就是我們現在的想法。

But we've already - that would be part of the reserve that, we've set aside for growth projects for the plant.

但我們已經——這將是我們為工廠的成長項目預留的儲備的一部分。

Got it.

知道了。

And I thought you're going to be able to answer this, but earlier this year, there was a 13D filing on your sister company, CVR Energy, potentially about a large owner evaluating options for CVR Partners.

我以為你能夠回答這個問題，但今年早些時候，你的姊妹公司 CVR Energy 收到了一份 13D 文件，可能涉及一位大所有者評估 CVR Partners 的選擇。

Any developments there that you are able to discuss or comment on?

您可以討論或評論那裡的任何進展嗎？

We don't really have anything to report on that.

我們對此確實沒有什麼好報告的。

The 8-K that was filed.

提交的 8-K。

And so nothing new, no new news this quarter to report on that.

因此，本季沒有什麼新消息可以報道。

Appreciate all the color.

欣賞所有的顏色。

Thank you so much.

太感謝了。

Thanks, Brian.

謝謝，布萊恩。

Thank you.

謝謝。

We have reached the end of the question-and-answer session.

我們的問答環節已經結束。

I would now like to turn the floor back over to management for closing comments.

我現在想將發言權交還給管理層以徵求結束意見。

Again, thanks, everyone, for joining our call today, and we look forward to reviewing our fourth quarter results in February.

再次感謝大家今天加入我們的電話會議，我們期待在二月回顧我們的第四季業績。

So thanks, and have a good day.

謝謝，祝你有美好的一天。

Ladies and gentlemen, this does conclude today's teleconference.

女士們、先生們，今天的電話會議到此結束。

You may disconnect your lines at this time.

此時您可以斷開線路。

Thank you for your participation and have a wonderful day.

感謝您的參與，祝您有美好的一天。