CVR Partners LP (UAN) 2024 Q4 法說會逐字稿

Greetings and welcome to the CVR Partners fourth quarter 2024 conference call. [Operator Instructions] It is now my pleasure to introduce your host, Richard Roberts, Vice President of Financial Planning and Analysis and Investor Relations. Thank you, sir. You may begin.

問候並歡迎參加 CVR Partners 2024 年第四季電話會議。[操作員指示] 現在我很高興介紹您的主持人，財務規劃和分析及投資者關係副總裁理查德·羅伯茨。謝謝您，先生。你可以開始了。

Thank you, Christine. Good morning, everyone. We appreciate your participation in today's call. With me today are Mark Paosh, our Chief Executive Officer, Dane Newman, our Chief Financial Officer, and other members of management.

謝謝你，克里斯汀。大家早安。感謝您參加今天的電話會議。今天與我在一起的有我們的執行長馬克鮑什 (Mark Paosh)、我們的財務長丹紐曼 (Dane Newman) 以及其他管理成員。

Prior to discussing our 2024 fourth quarter and full 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.

在討論我們 2024 年第四季和全年業績之前，請允許我提醒您，本次電話會議可能包含前瞻性陳述，該術語是根據聯邦證券法定義的。為此目的，本次電話會議中所做的任何非歷史事實陳述均可視為前瞻性陳述。

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. 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.

請注意，這些聲明可能會受到我們提交給美國證券交易委員會的文件和最新收益報告中所列的重要因素的影響。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。我們不承擔公開更新任何前瞻性聲明的義務，無論是由於新資訊、未來事件或其他原因，除非法律要求。

This call also includes various non-gap financial measures. The disclosures related to such non-gap measures, including reconciliation to the most directly comparable GAAP financial measures, are included in our 2024 fourth quarter orange release that we filed with the SEC and Form 10K for the period and will be discussed during the call.

此次呼籲還包括各種無缺口財務措施。與此類非缺口指標相關的揭露（包括與最直接可比較的 GAAP 財務指標的調整）都包含在我們向 SEC 提交的 2024 年第四季橙色新聞稿和該期間的 10K 表中，並將在電話會議期間進行討論。

Let me 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.

讓我提醒你，我們是一個可變分佈 MLP。我們將審查我們先前建立的儲備金、當前現金使用情況，評估未來預期的現金需求，並可能根據我們的普通合夥人董事會的決定為其他未來現金需求保留金額。

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

因此，我們的分配（如果有）將因多種因素而每季有所不同，包括但不限於經營業績、成品價格波動、資本支出以及我們的普通合夥人董事會認為必要或適當的現金儲備。說完這些，我將把電話轉給我們的執行長馬克‧皮托什 (Mark Pytosh)。

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 fourth quarter distribution of $1.75 per common unit, which will be paid on March 10, 2025 to unit holders a 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.

謝謝你，理查。大家早安，感謝大家參加今天的電話會議。 2024 年第四季的財務摘要包括淨銷售額 1.4 億美元、淨收入 1800 萬美元、EBITDA 5000 萬美元，董事會宣布第四季度每股普通股分配 1.75 美元，將於 2025 年 3 月 10 日支付給單位持有人，創 3 月 3 日收盤價的最高紀錄。 2024 年全年，我們報告的 EBITDA 為 1.79 億美元，每股普通股分配 6.76 美元。

We had another year of solid operations for 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 tonnes. 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.

我們的設施又順利運作了一年，全年氨利用率為 96%。在東杜比克，我們在 2024 年創下了氨利用率 102% 的新紀錄，氨產量也達到約 399,000 噸。我們也自豪地報告，2024 年我們的安全指標持續改善，與 2023 年相比，總可記錄事故率降低了 40%。

For the fourth quarter of 2024, our annual, our ammonia plant utilization was 96%. this resulted in total ammonia production of 210,000 gross tonnes, of which 80,000 net tonnes were available for sale. total UAM production was 310,000 tonnes, substantially all of which was sold at an average price of $229 per tonne, and we sold approximately 97,000 tonnes of ammonia at an average price of $475 per tonne.

2024 年第四季度，我們的氨工廠年利用率為 96%。這使得氨總產量達到 21 萬毛噸，其中 8 萬淨噸可供出售。 UAM 總產量為 310,000 噸，其中基本全部以平均每噸 229 美元的價格出售，我們以平均每噸 475 美元的價格出售了約 97,000 噸氨。

Relative to the fourth quarter of 2023, ammonia sales volumes were in line. In newAM sales volumes were down approximately 3% partially due to the challenging weather conditions during the fall application.

與 2023 年第四季相比，氨氣銷量持平。在 newAM 中，銷售量下降了約 3％，部分原因是秋季施肥期間天氣條件惡劣。

Fourth quarter prices for ammonia increased approximately 3% and UAM prices declined to 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.

與去年同期相比，第四季氨價格上漲約 3%，UAM 價格下降約 5%。儘管第四季天氣條件有些不利，但我們看到氮肥需求旺盛，價格較第三季有所上漲，而且我們的工廠出貨量強勁。

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.

進入新年，氮肥產品供需緊張，價格持續上漲。隨著近期糧食價格上漲，春播季節的市場條件十分有利，我將在結論中進一步討論這個問題。現在我將把電話轉給丹恩來討論我們的財務表現。

Thank you, Mark. turning to our results for the full year 2024, we reported net sales of $525 million and operating income of $90 million. net income for the year was $61 million or $5.76 per common unit, and EBITDA was $179 million.

謝謝你，馬克。展望 2024 年全年業績，我們報告淨銷售額為 5.25 億美元，營業收入為 9,000 萬美元。全年淨收入為 6,100 萬美元，即每股 5.76 美元，EBITDA 為 1.79 億美元。

For the fourth quarter of 2024 we reported net sales of $140 million and operating income of $26 million. net income for the fourth quarter was $18 million for $1.73 per common unit, and EBITDA was $50 million. relative to the fourth quarter of 2023, EBITDA increased primarily due to higher ammonia sales prices and lower Petco feedstock costs.

我們報告 2024 年第四季的淨銷售額為 1.4 億美元，營業收入為 2600 萬美元。第四季淨利為 1,800 萬美元，每股收益 1.73 美元，EBITDA 為 5,000 萬美元。與 2023 年第四季相比，EBITDA 增加主要由於氨銷售價格上漲和 Petco 原料成本下降。

Direct operating expenses for the fourth quarter of 2024 $56 million excluding inventory and turnaround impacts. Direct operating expenses declined by approximately $3 million from the fourth quarter of 2023, primarily related to lower repair and maintenance expenses.

2024 年第四季的直接營運費用為 5,600 萬美元（不包括庫存和周轉影響）。直接營運費用較 2023 年第四季下降約 300 萬美元，主要由於維修和維護費用降低。

Capital spending for the fourth quarter was $18 million which was primarily maintenance capital and full year 2024 capital spending was 37 million, of which $30 million was maintenance capital. we estimate 2025 maintenance capital spending to be about $35million to 45 million and grow capital spending to be $20million to $25 million.

第四季的資本支出為 1,800 萬美元，主要是維護資本，2024 年全年資本支出為 3,700 萬美元，其中 3,000 萬美元為維護資本。我們預計 2025 年維護資本支出約為 3,500 萬至 4,500 萬美元，成長資本支出為 2,000 萬至 2,500 萬美元。

We expect a significant portion of the 2025 growth capital spending will be funded from cash the board elected to start reserving over the past two years. we ended the quarter with total liquidity of $130 million, which consisted of $91 million in cash and availability under the ABL facility of $39 million.

我們預計，2025 年成長資本支出的很大一部分將來自董事會過去兩年選擇開始儲備的現金。截至本季末，我們的總流動資金為 1.3 億美元，其中包括 9,100 萬美元的現金和 3,900 萬美元的 ABL 信貸額度下的可用資金。

Within our cash balance of $91 million we had approximately $9 million related to customer prepayments for the future delivery of products. assessing our cash available for distribution, we generated even dollar of $50 million and had met cash needs of approximately $32 million for interest costs, maintenance CapEx, and other reserves.

在我們的 9,100 萬美元現金餘額中，有大約 900 萬美元與客戶為未來交付產品支付的預付款有關。評估我們可供分配的現金，我們產生了 5000 萬美元的現金，並滿足了利息成本、維護資本支出和其他儲備金的約 3200 萬美元的現金需求。

As a result, there was $18 million of cash available for distribution, and the board of directors of our general partner declared a distribution of $1.75 per common unit. looking ahead to the first quarter of 2025, we estimate our ammonia utilization rate to be between 95% and 100%. We expect direct operating expenses to be $55million to $65 million excluding inventory impacts and total capital spending to be between $12million and $16 million. With that, I'll turn the call back over to Mark.

結果，有 1800 萬美元的現金可供分配，而我們普通合夥人的董事會宣布每股普通股分配 1.75 美元。展望 2025 年第一季度，我們預期氨利用率將在 95% 至 100% 之間。我們預計直接營運費用（不包括庫存影響）將在 5,500 萬美元至 6,500 萬美元之間，總資本支出將在 1,200 萬美元至 1,600 萬美元之間。說完這些，我會把電話轉回給馬克。

Thanks, Dane. In summary, we had another strong quarter of operations, and despite difficult application conditions in the fall, we experienced strong demand for nitrogen fertilizer throughout the quarter. with the 2024 harvest complete, the USDA is now estimating record high corn yields of 179 bushels per acre, but these yield estimates are down from previous estimates of 183 bushels, and inventory carryout levels for 2025 are now estimated to be approximately 10%.

謝謝，丹恩。總而言之，我們又度過了一個強勁的營運季度，儘管秋季施肥條件困難，但整個季度我們對氮肥的需求仍然強勁。隨著 2024 年收穫的完成，美國農業部目前估計玉米產量將達到每英畝 179 蒲式耳的歷史新高，但這些產量估計值低於先前估計的 183 蒲式耳，目前估計 2025 年的庫存結轉水準約為 10%。

Soybean yields are estimated to be 51 bushels per acre down from 53 bushels previously with an estimated inventory carryout of approximately 9%. these inventories are now below the ten-year averages, which has driven both corn and soybean prices higher since our last earnings call, with March corn prices at $5 per bushel and soybeans at $1035.

大豆產量預計為每英畝 51 蒲式耳，低於先前的 53 蒲式耳，庫存結轉率預計約 9%。這些庫存現在低於十年平均水平，自我們上次收益電話會議以來，玉米和大豆價格雙雙上漲，3月份玉米價格為每蒲式耳 5 美元，大豆價格為 1035 美元。

With tighter supply demand balances and fertilizer and higher grain prices, we expect to see strong demand for nitrogen fertilizer for spring application.

隨著供需平衡收緊以及化肥和糧食價格上漲，我們預計春季施用氮肥的需求將強勁。

The current grain prices, planting favors corn over beans, and most estimates are calling for $91million to $94 million planted acres of corn for spring 2025. 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.

目前的糧食價格表明，種植玉米比種植豆類更有利，大多數人預計2025年春季玉米種植面積將達到9,100萬至9,400萬美元。鑑於中東、北非和俄羅斯等國家擁有大量化肥生產能力，地緣政治風險仍是氮肥產業的不確定因素。

We continue to monitor developments in the Middle East that could impact energy and fertilizer markets, and we expect 2025 will likely be a continued period of higher than historical volatility in the business. with the new administration in Washington, the dynamics are beginning to change with the stated desire to end the conflicts in the Ukraine and the Middle East.

我們將繼續監測可能影響能源和化肥市場的中東局勢發展，並預計 2025 年該業務的波動可能會持續高於歷史水準。隨著華盛頓新政府的成立，情況開始發生變化，美國表示希望結束烏克蘭和中東的衝突。

We're also closely watching the potential imposition of tariffs on foreign fertilizer and energy imports, particularly Canadian products. The US is a significant importer of Canadian fertilizer, and the disruption in import flows could cause prices to increase in the US depending on the size and timing of tariffs.

我們也密切關注對外國化肥和能源進口（特別是加拿大產品）徵收關稅的可能性。美國是加拿大化肥的重要進口國，進口流量的中斷可能會導緻美國化肥價格上漲，具體取決於關稅的規模和時間。

Natural gas prices in Europe have remained around $15 per MMBTU since our last call, while US prices continue to range between $3 and $4 per MMBTU.

自從我們上次通話以來，歐洲天然氣價格一直保持在每百萬英熱單位 15 美元左右，而美國天然氣價格則繼續在每百萬英熱單位 3 至 4 美元之間徘徊。

Europe has drawn down natural gas inventories more than expected, and there are concerns about the ability to replenish the inventory before winter of 2025, given supply constraints into Europe, although this could potentially be alleviated by additional gas supplies from Russia pending any resolution of the war in Ukraine.

歐洲天然氣庫存下降幅度超過預期，由於歐洲供應受限，人們擔心其在 2025 年冬季之前能否補充庫存，不過，在烏克蘭戰爭解決後，俄羅斯將增加天然氣供應，這可能會緩解這一問題。

The cost to produce ammonia in Europe has remained durably at the high end of the global cost curve, and several plant closures have been announced, which we expect will continue to keep the global supply demand balance tight through the first half of 2025. we continue to believe Europe faces structural natural gas market issues that will likely remain in effect over the next two years.

歐洲生產氨的成本一直處於全球成本曲線的高端，並且已經宣布關閉多家工廠，我們預計這將在 2025 年上半年繼續保持全球供需平衡緊張。我們仍然認為歐洲面臨的結構性天然氣市場問題可能在未來兩年內持續影響。

At our Coffeeville facility, we have completed detailed engineering studies on the potential to utilize natural gas as an alternative feedstock to third-party pet coke, and we have seen no significant technical issues with implementing the project. we're currently working on construction design plans and plan to seek board approval to begin construction on the project.

在我們的 Coffeeville 工廠，我們已經完成了關於利用天然氣作為第三方石油焦替代原料的潛力的詳細工程研究，並且我們在實施該項目時沒有發現任何重大技術問題。我們目前正在製定施工設計計劃，並計劃尋求董事會批准開始該專案的建設。

If successfully implemented, this project could give us the ability to choose the optimal feedstock mix and be the only nitrogen fertilizer plant in the US with that flexibility. as a reminder, if this project were implemented, we would likely continue to utilize the pet coke supplied by the adjacent Coffeeville refinery.

如果成功實施，該計畫可以使我們有能力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工廠。提醒一下，如果該專案得以實施，我們可能會繼續利用鄰近的 Coffeeville 煉油廠供應的石油焦。

While the remainder of the feedstock can be flexed between natural gas and pet coke depending on prevailing prices. as we mentioned on the last earnings call, we have seen a softening of pet coat prices in the US and expect to see our pet coat costs decline further in the first quarter of 2025.

其餘原料則可依現行價格在天然氣和石油焦之間變動。正如我們在上次財報電話會議上提到的那樣，我們看到美國寵物外套價格下降，預計我們的寵物外套成本將在 2025 年第一季進一步下降。

We also continue to execute certainty bottlenecking projects in both plants that are expected to improve the reliability and production rates. The goal of these projects is to support our target of operating our plants at utilization rates above 95% of nameplate capacity, excluding the impact of turnarounds. We completed the installation of two new boilers in Coffeeville in the fourth quarter, which should improve our steam availability and reliability.

我們也將繼續在兩個工廠執行確定性瓶頸項目，以提高可靠性和生產力。這些項目的目標是支持我們實現工廠以額定產能 95% 以上的利用率運作的目標（不包括檢修的影響）。我們在第四季度在 Coffeeville 完成了兩個新鍋爐的安裝，這將提高我們的蒸汽可用性和可靠性。

For 2025 we're focused on water and electricity reliability and quality at both plants, among other projects. We're also planning to install a nitrous oxide abatement unit at the Coffeeville plant during our fall 2025 turnaround. After installation, we would have nitrous oxide abatement units, all four of our nitric acid plants, which aligns with our strategy of reducing the carbon footprint of our operations.

2025 年，我們將重點放在兩座工廠的水力發電可靠性和品質以及其他項目。我們還計劃在 2025 年秋季檢修期間在 Coffeeville 工廠安裝一套一氧化二氮減量裝置。安裝完成後，我們的四個硝酸工廠都將擁有一氧化二氮減排裝置，這符合我們減少營運碳足跡的策略。

The board elected to continue reserving capital in the fourth 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.

董事會選擇在第四季度繼續保留資本，預計這些資本將在未來兩到三年內使用，因為我們將專注於提高兩家工廠的可靠性和冗餘度，以便在未來提供更好的生產力和更少的停機時間。

The funds needed for the 2025 projects are coming from the reserves taken over the last two years.

2025年計畫所需的資金來自過去兩年的儲備金。

The fourth quarter continued to demonstrate the benefits of focusing on reliability and performance. In the quarter we execute all the critical elements of our business plan, which include 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.

第四季繼續顯示出注重可靠性和性能的好處。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，重點關注員工、承包商和社區的健康和安全，審慎管理成本，合理使用資本，最大限度地發揮我們的營銷和物流能力，並尋找機會減少我們的碳足跡。

In closing, I'd like to thank our employees for their excellent execution, safely achieving 96% ammonia utilization, and solid delivery in our marketing and logistics plans, resulting in a distribution of $75 per common unit for the quarter. With that, we're ready to take any questions.

最後，我要感謝我們的員工的出色執行，安全地實現了 96% 的氨利用率，並在我們的行銷和物流計劃中穩步交付，導致本季度每股普通單位的分配為 75 美元。現在，我們已準備好回答任何問題。

Thank you. [Operator Instructions] Our first question comes from the line of Brian De Rubio with Baird. Please proceed with your question.

謝謝。[操作員指示] 我們的第一個問題來自貝爾德的布萊恩·德·盧比奧 (Brian De Rubio)。請繼續回答您的問題。

Good morning, gentlemen. Just a couple for me this morning. First off, have you seen any changes in customer ordering patterns with the Fed lowering short-term registrates over the last couple of quarters? I think he was saying, Mark, last year that there was sort of more just in time ordering given the higher working capital costs.

先生們，早安。今天早上我只有幾個。首先，隨著聯準會在過去幾季降低短期登記量，您是否發現客戶訂購模式發生了任何變化？馬克，我認為他是說，去年由於營運資金成本較高，及時訂購的情況增加。

Good morning, Brian. We haven't seen any real change in that pattern. I don't think the 100 basis points was enough to bring, the change customer's view on how much inventory to hold, so we're still seeing more rateable buying, and so really since the summer last year it's been very rateable for the last six, seven months.

早安，布萊恩。我們還沒有看到這種模式發生任何真正的變化。我認為 100 個基點不足以改變客戶對持有多少庫存的看法，因此我們仍然看到更多的可評估購買，因此自去年夏天以來，過去六、七個月的可評估購買量一直很高。

Got it, thank you. and just switching gears. the timing of that Coffeeville project, where you stand now, is that still a potential 2026 event?

知道了，謝謝。並切換齒輪。就您目前的情況來看，Coffeeville 專案的時間表是否仍然有可能在 2026 年舉行？

I'm not sure which project.

我不確定是哪一個項目。

I apologize. The the what I'm calling the dual fuel project, the ability to switch from that gas to pet coke.

我很抱歉。這就是我所說的雙燃料項目，即從天然氣轉換為石油焦的能力。

Yeah, the plan would be to, if it's approved by the board, would be to have it in place to be able to execute on a decision on feedstock for 26.

是的，如果董事會批准，該計劃將能夠執行 26 日關於原料的決定。

So that you start construction 26, so you get approval and then Just trying to see where this starts.

這樣您就開始了 26 號施工，得到了批准，然後就試著看看從哪裡開始。

We would start construction if it's proved we did construction this year so that we would have the option, we have to sort of declare or make a decision before year end on whether we would use Petco or natural gas so we would TRY to get that in place before year end so we have that choice to make for next year.

如果證明我們今年進行了施工，我們就會開始施工，這樣我們就有選擇權，我們必須在年底之前宣布或決定是否使用 Petco 或天然氣，因此我們會嘗試在年底之前完成這項工作，這樣我們就可以為明年做出選擇。

So how would this work then, can you not then switch back and forth daily or weekly? You'd have to commit to one fuel or another for a year period.

那麼這將如何運作呢？你能不能每天或每週來回切換？您必須在一年的時間內使用一種或另一種燃料。

I wouldn't say we would commit for a year period, but it won't be daily or weekly. We would probably make decisions over months, not days or weeks.

我不會說我們會承諾一年的時間，但不會是每天或每週。我們可能需要數月而不是數天或數週的時間才能做出決定。

Okay, so mechanically you then, operate on Petco for let's just your argument say for a quarter with natural gas prices then collapse, then you just basically turn off the the Petco. valve and turn on the natural gas one and then you just start producing via natural gas.

好的，那麼從機械角度來說，您對 Petco 進行操作，就如您的論點一樣，假設某個季度的天然氣價格崩潰，那麼您基本上就關閉了 Petco。閥門並打開天然氣閥門，然後就可以開始透過天然氣進行生產。

Actually it wouldn't work that way, we would be we have two gasifiers, so we would have a petco gas fire running and a natural gas gasifier running and if we wanted to, if we go into turn around on the petcoke, we would run 100% natural gas for a period of time and then come back on petco or vice versa if we want to run more petco we would run switch over to the Petco gas fire, run 100% there. And and it would produce enough hydrogen for our needs to produce. So today we only run one gas fire under this scenario, we'd run both gas fires.

實際上它不會那樣工作，我們會有兩個氣化器，因此我們會有一個 petco 燃氣火爐和一個天然氣氣化器在運行，並且如果我們願意的話，如果我們轉向使用石油焦，我們會在一段時間內 100% 地運行天然氣，然後再回到 petco 上，反之亦然，如果我們想運行更多的 petco，我們會切換到 Petco 爐。而且它能產生足夠的氫氣來滿足我們的生產需求。所以今天我們只運行一個燃氣火災，在這種情況下，我們會運行兩個燃氣火災。

Okay, that's helpful there. great, that's all I've got appreciate it thank you.

好的，這很有幫助。太好了，這就是我所要表達的感激之情，謝謝。

Our next question comes from Rob McGuire with Granite Research. Please proceed with your question.

我們的下一個問題來自 Granite Research 的 Rob McGuire。請繼續回答您的問題。

Morning, Mark, Dane and Richard. thank you for taking my questions. good morning, Rob. just a few questions on market trends. If you could give us a little more insight, Mark. You mentioned supply demand is tight.

早安，馬克、戴恩和理查。感謝您回答我的問題。早安，羅布。我只想問幾個關於市場趨勢的問題。如果您能給我們更多見解的話，馬克。您提到供需緊張。

Can you talk about three trends? One is, are you feeling an impact of UAN demand as a consequence of higher urea prices, and can you give us a feel for UAN and ammonia inventories at the distributor to the farm level? And then lastly, have you seen any trends towards the use of more UAN versus ammonia? In the spring and fall planting seasons, and do you think there'll be any material shifts this year?

能談談三種趨勢嗎？一是，您是否感受到尿素價格上漲對 UAN 需求的影響，能否向我們介紹從分銷商到農場一級的 UAN 和氨庫存情況？最後，您是否發現使用 UAN 而非氨的趨勢增加？在春季和秋季播種季節，您認為今年會發生重大變化嗎？

Okay, there's a lot of questions there, sort of taken in pieces. The big driver in the market right now is Urea. Ua is tight, globally, and the price has risen, these are public prices, but it's north of $400 in NOAA in New Orleans, and that, that's, following the global price which right now is like $450 tonne metric. So, they're just.

好的，這裡有很多問題，大致可以分成幾個部分。目前市場的最大驅動力是尿素。在全球範圍內，UA 都很緊張，而且價格上漲了，這些是公開價格，但新奧爾良 NOAA 的價格已超過 400 美元，這是跟隨全球價格的，目前的全球價格為每噸 450 美元。所以，他們只是。

A lot of our customers have been, looking to buy more urea into the spring, and there's been, I'd say limited availability and so the market's tightened up and that's sort of lifted both UAN and ammonia. Ammonia is a little bit different because we typically sell the.

我們的許多客戶都希望在春季購買更多的尿素，但我認為尿素供應有限，因此市場供應吃緊，這在一定程度上推高了尿素和氨的價格。氨有點不同，因為我們通常會銷售氨。

The spring pre-pay in December. So, we'll see the effect of the higher pricing there and when they buy cash orders starting in the spring, but we're seeing UAN kind of following UA. UAN looks from, where the market's priced today, maybe a little cheap, and so we may actually find more demand there. And so you know there's, I would say the supply side's been tight and I think our customers are seeing.

春季預付款在12月份。因此，我們將看到那裡更高定價的影響，以及當他們從春季開始購買現金訂單時，但我們看到 UAN 正在跟隨 UA。UAN 認為，今天的市場價格可能有點便宜，因此我們實際上可能會發現那裡有更多的需求。所以，我想說的是，供應方面一直很緊張，我想我們的客戶也看到了。

Greater corner acreage in the spring. I was at a conference a week last week, and the customers were telling us that corn seed sales are up significantly year over year, which typically implies, more acreage of corn planting. And so I think the customers are feeling like they need to be buying more in advance because there, there's likely to be more acreage there. So.

春季角落面積更大。上週我參加了一個會議，客戶告訴我們玉米種子的銷售量較去年同期大幅成長，這通常意味著玉米種植面積將擴大。因此，我認為客戶感覺他們需要提前購買更多，因為那裡的種植面積可能更多。所以。

I actually think all the nitrogens will be stronger. I think UAN, where it's priced today is pretty attractive, and if Ua stays difficult to purchase, then the next, the customers would turn to UAN and apply more UAN both at pre-plant but also in side dress and top dress season.

我實際上認為所有的氮都會更強。我認為 UAN 目前的價格相當有吸引力，如果 Ua 仍然難以購買，那麼接下來客戶就會轉向 UAN，並且在種植前以及側施肥和追肥季節使用更多的 UAN。

Sorry, I'm kind of rambling there, so I'll stop and see if I've answered your questions.

抱歉，我有點囉嗦，所以我會停下來看看是否回答了你的問題。

No, that was great. Has there been a trend towards more UAN versus ammonia?

不，那太棒了。與氨相比，UAN 是否有增加的趨勢？

I wouldn't, I wouldn't say that there's really a big trend, in that direction. A lot of times it's, more of, the relative pricing, at a moment in time. I would say right now ammonia looks pretty cheap compared to, not unduly cheap, but a little bit cheaper than, UA and UAN typically the relationship there. The fall was difficult. We scrambled and the customer scrambled and we did.

我不會，我不會說在那個方向上確實存在著一個大趨勢。很多時候，它更多的是某一時刻的相對定價。我想說的是，現在氨看起來相當便宜，與 UA 和 UAN 相比，不是特別便宜，但稍微便宜一點。這次墜落十分艱難。我們爭先恐後，顧客也爭先恐後，我們做到了。

For as difficult as the weather conditions are, we actually did get most of our ammonia orders out in the fourth quarter, but there could be some catch up in the spring, and if they don't get there with ammonia in the spring for nitrogen, they'll come back with UAN or urea. So there's probably going to be a little bit of a pickup on UAN and urea in the spring for what didn't get down on pre-plant in the back in the fall.

儘管天氣條件十分艱苦，我們實際上在第四季度確實發出了大部分氨訂單，但春季可能會有一些追趕，如果他們在春季沒有將氨運送到氮肥廠，他們就會帶著 UAN 或尿素回來。因此，由於秋季播種前沒有用到足夠的尿素，春季 UAN 和尿素的用量可能會略有增加。

It is great color. thank you. and then, we're two-third of the way through February. Can you give us an idea of how much UAN has been pre-sold in the first quarter and perhaps even in the second quarter of 2025?

顏色很棒。謝謝。現在，我們已經度過了二月的三分之二。您能否告訴我們 2025 年第一季甚至第二季 UAN 的預售量是多少？

Yeah, I don't like to get very specific in our book. I would just say that, the customers have been buying kind of, like, the previous question about rateable. We've been sort of consistently sold forward, but not at the length that we are, but we're, we have a solid book of business going into the spring already for UAN and ammonia, and, customers are looking for more than what's available, which is that's what's pushed the market up here in the last 6 weeks.

是的，我不喜歡在我們的書中描述得太具體。我只想說，客戶一直在購買類似之前關於應稅的問題的東西。我們的銷售一直處於持續階段，雖然銷售時間不長，但我們已經有大量 UAN 和氨氣業務進入春季，客戶的需求超出了現有供應，這也是過去 6 週推動市場上漲的原因。

So the customers would like to buy more. What I heard at the conference, very difficult to find March tonnage, available and so, the market is kind of in April at this point just broadly amongst all the producers. So, just tells you the market is tight and firm and, we'll be working hard to fill, fulfill what the customer needs in in April and May, but. It's stronger this year than last year. I think that our order book and the market itself going into the spring this year is stronger than last year and it looks like we're going to have somewhere between $2 million to 4 million more acres of corn this year than last year.

因此顧客願意購買更多。我在會議上聽到的是，很難找到三月的可用噸位，因此，目前市場在所有生產商中大致處於四月份的狀態。所以，只是告訴你市場緊張而堅挺，我們會努力在四月和五月滿足客戶的需求，但是。今年比去年更強勁。我認為，今年春季我們的訂單和市場本身都比去年強勁，看起來今年我們的玉米產量將比去年多出 200 萬至 400 萬英畝。

That's helpful. thank you. And then shifting gears and the last question, how should CapEx, excluding turnaround reserves, look for the balance of the year?

這很有幫助。謝謝。然後換個話題，最後一個問題，不包括週轉儲備金的資本支出應該如何尋求今年的平衡？

Yeah, Rob, for looking forward to 2025, I don't think you should expect to see a substantial change in the reserves, obviously as we look at the higher CapEx profile, the balance of the growth projects has has really already been reserved and will continue to reserve at a at a comparable level and then same on the on the turnaround.

是的，羅布，展望 2025 年，我認為你不應該期望看到儲備發生實質性的變化，顯然，當我們看到更高的資本支出狀況時，增長項目的餘額實際上已經被保留，並且將繼續以相當的水平保留，然後在周轉時也是如此。

Okay, Dane, I appreciate it, Mark. thank you again, Richard. thank you.

好的，丹恩，我很感激，馬克。再次感謝你，理查德。謝謝。

Thanks, Rob. thank you.

謝謝，羅布。謝謝。

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

問答環節已經結束。現在我想將發言權交還給管理階層，請他們發表最後評論。

I just want to say thanks to everybody who attended the call today and appreciate your interest in CBR Partners and look forward to talking to you about our first quarter results at the end of April. thank you very much.

我只想對今天參加電話會議的每個人表示感謝，感謝您對 CBR Partners 的關注，並期待在四月底與您討論我們的第一季業績。非常感謝。

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. thank you for your participation and have a wonderful day.

女士們、先生們，今天的電話會議到此結束。現在您可以斷開您的線路。感謝您的參與並祝您有美好的一天。