CVR Partners LP (UAN) 2025 Q1 法說會逐字稿

Greetings and welcome to the CVR Partners first-quarter 2025 conference call. (Operator Instructions)

問候並歡迎參加 CVR Partners 2025 年第一季電話會議。（操作員指示）

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

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 (Richard Roberts)。

Thank you, sir. You may begin.

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 Pytosh, our Chief Executive Officer; Dane Neumann, 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。今天與我一起的有我們的執行長馬克‧皮托什 (Mark Pytosh)、我們的財務長丹‧諾伊曼 (Dane Neumann) 以及其他管理成員。

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 were cautioned that these statements may be affected by important factors set forth in 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.

在討論我們的 2025 年第一季業績之前，請允許我提醒您，本次電話會議可能包含前瞻性陳述，該術語是根據聯邦證券法定義的。為此，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。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所述重要因素的影響。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-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.

本次電話會議也包括各種非公認會計準則財務指標。與此類非 GAAP 指標相關的揭露（包括與最直接可比較的 GAAP 財務指標的調整）均包含在我們向美國證券交易委員會提交的 2025 年第一季財報中。

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.

我還要提醒你，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委員會的決定為其他未來現金需求預留金額。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。話雖如此，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 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 common unit, which will be paid on May 19th to unit holders of record at the close of the market on May 12th.

謝謝你，理查。大家早安，感謝大家參加今天的電話會議。2025 年第一季的財務摘要包括淨銷售額 1.43 億美元、淨收入 2,700 萬美元、EBITDA 5,300 萬美元，董事會宣布第一季普通股分配 2.26 美元，將於 5 月 19 日支付給 5 月 12 日市場收盤時登記在冊的單位持有人。

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.

2025 年第一季度，我們的設施運作良好，綜合氨工廠利用率為 101%。2025 年第一季度，合成氨總產量為 216,000 總噸，其中可供銷售的淨噸為 64,000 噸，UAN 產量為 348,000 噸。

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.

本季度，我們以平均每噸 256 美元的價格銷售了約 336,000 噸 UAN，以平均每噸 554 美元的價格銷售了約 60,000 噸氨。與 2024 年第一季相比，今年第一季總產量和銷售量均有所增加，且兩家工廠的停工時間都很短。由於預計第二季交付的氨氣數量提前發貨，氨氣價格較去年同期上漲 5%，而由於 2024 年填充季節部分氨氣發貨延遲，UAN 價格下跌 4%。

Overall, we had a strong start to 2025, and we believe the setup is favorable heading into the spring. Inventories and 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.

總體而言，我們在 2025 年有一個良好的開端，我們相信，進入春季後情況會非常有利。整個系統的庫存和氮肥整體緊張，需求仍然強勁，這支撐了春季價格的持續上漲。農民經濟狀況仍然具有吸引力，而且最近天氣良好，我們期待著一個強勁的種植季節，我將在結束語中進一步討論這個問題。現在我將把電話轉給 Dane 來討論我們的財務表現。

Thank you, Mark. For the first quarter of 2025, we reported net sales of $143 million in operating income of $35 million. That income for the quarter was $27 million or $2.56 per common unit, and EBITDA was $53 million. Relative to the first quarter of 2024, the increase in EBITDA was primarily due to a combination of higher UAN sales volumes and higher market prices for ammonia, along with lower pet coke feedstock costs. Direct operating expenses for the first quarter of 2025 were $54 million. Excluding inventory impacts, direct operating expenses increased by approximately $1 million relative to the first quarter of 2024, primarily due to higher natural gas and electricity costs.

謝謝你，馬克。2025 年第一季度，我們報告淨銷售額為 1.43 億美元，營業收入為 3,500 萬美元。本季的營收為 2,700 萬美元，即每股 2.56 美元，EBITDA 為 5,300 萬美元。與 2024 年第一季相比，EBITDA 的成長主要是由於 UAN 銷售增加、氨市場價格上漲以及石油焦原料成本下降。2025 年第一季的直接營運費用為 5,400 萬美元。不包括庫存影響，直接營運費用較 2024 年第一季增加約 100 萬美元，主要原因是天然氣和電力成本上升。

During the first quarter of 2025, we spent $6 million on capital projects, which was primarily maintenance capital. We estimate total capital spending for 2025 to be approximately $50 million to $60 million of which $40 million to $45 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.

2025 年第一季度，我們在資本項目上花費了 600 萬美元，主要是維護資本。我們估計 2025 年的總資本支出約為 5,000 萬至 6,000 萬美元，其中 4,000 萬至 4,500 萬美元預計為維護資本。我們預計，2025 年利潤和成長資本支出計畫的很大一部分將透過過去兩年的現金儲備來提供資金。

We ended the quarter with total liquidity of $172 million which consisted of $122 million in cash and availability under the ABL facility of $50 million. Within our cash balance of $122 million, we have $30 million related to customer prepayments for the future delivery of product. In assessing our cash available for distribution, we generated EBITDA of $53 million and had net cash needs of $29 million for interest costs, maintenance CapEx, and other reserves. As a result, there was $24 million of cash available for distribution, and the Board of Directors of our General Partner declared a distribution of $2.26 per common unit.

本季末，我們的總流動資金為 1.72 億美元，其中包括 1.22 億美元的現金和 5,000 萬美元的 ABL 信貸額度下的可用資金。在我們的 1.22 億美元現金餘額中，有 3,000 萬美元與客戶為未來交付產品支付的預付款有關。在評估可供分配的現金時，我們產生了 5,300 萬美元的 EBITDA，並且有 2,900 萬美元的淨現金需求用於支付利息成本、維護資本支出和其他儲備。結果，可供分配的現金為 2,400 萬美元，而我們的普通合夥人董事會宣布每股普通股分配 2.26 美元。

Looking ahead to the second quarter of 2025, we estimate our ammonia utilization rate to be between 93% and 97% with some downtime planned at East Dubuque in the quarter. We expect direct operating expenses, excluding inventory impacts to be between $57 million and $62 million and total capital spending to be between $18 million and $22 million. For that, I will turn the call back over to Mark.

展望 2025 年第二季度，我們估計我們的氨利用率將在 93% 至 97% 之間，本季東杜比克計劃進行一些停工。我們預計直接營運費用（不包括庫存影響）將在 5,700 萬美元至 6,200 萬美元之間，總資本支出將在 1,800 萬美元至 2,200 萬美元之間。為此，我將把電話轉回給馬克。

Thanks, Dane. In summary, we had another strong quarter of operations. With ammonia utilization over 100% and pricing has continued to increase since the beginning of the year. With the spring planting season well underway, weather has been favorable. The USDA is estimating inventory carryout levels for corn for 2025 will be approximately 10% and 9% for soybeans. These carry out inventory levels are below the 10-year averages, which is helping to maintain attractive corn and soybean prices, with May corn prices at $4.75 per bushel and soybeans at $10.50. At these grain prices and with tighter supply demand balances and fertilizer, we are experiencing strong demand for nitrogen fertilizer for spring application, and prices have increased since our February earnings call.

謝謝，丹恩。總而言之，我們又度過了一個強勁的營運季度。氨利用率超過100%，且自今年年初以來價格持續上漲。春耕季節已經到來，天氣狀況良好。美國農業部估計，2025 年玉米庫存結轉水準將約為 10%，大豆庫存結轉水準將約為 9%。這些庫存水平低於10年平均水平，這有助於維持玉米和大豆的誘人價格。 5月玉米價格為每蒲式耳4.75美元，大豆價格為每蒲式耳10.50美元。在這樣的穀物價格下，加上供需平衡和化肥供應趨緊，我們對春季施用的氮肥需求強勁，自2月份財報電話會議以來，價格有所上漲。

The USDA is estimating that farmers will plant approximately 95 million acres of corn, and approximately 83 million acres of soybeans in the spring of 2025. The unknown factor of these forecasts is the potential impact of tariffs on both fertilizer and grains. The US is a net importer of nitrogen fertilizer, and extended tariffs on fertilizer would likely lead to higher domestic prices. Feedstocks for nitrogen fertilizer production are sourced domestically, so the risk of negative margin impacts is limited.

美國農業部估計，到 2025 年春季，農民將種植約 9,500 萬英畝玉米和約 8,300 萬英畝大豆。這些預測的未知因素是關稅對化肥和穀物的潛在影響。美國是氮肥淨進口國，延長化肥關稅可能會導致國內價格上漲。氮肥生產的原料來自國內，因此利潤受到負面影響的風險有限。

However, countries such as China, are likely to use their purchase of US grains, primarily soybeans, as a negotiating tool with the US. This could impact US farmer economics if their purchases are reduced for an extended period of time. The Trump administration has been publicly discussing support mechanisms for US farmers that could mitigate some or all of the impact of tariff negotiations.

然而，中國等國家可能會利用購買美國穀物（主要是大豆）作為與美國談判的工具。如果美國農民的購買量長期減少，這可能會影響他們的經濟。川普政府一直在公開討論對美國農民的支持機制，以減輕關稅談判的部分或全部影響。

Tariffs are having the greatest impact on the cost of capital, equipment, and chemicals. For capital equipment, vendors are raising prices, adding surcharges, and lengthening delivery schedules driven by higher global metals prices. In addition to global trade issues, geopolitical risks continue to represent a wildcard to the nitrogen fertilizer industry, given the significant production capacity residing in countries across the Middle East, North Africa, and Russia. The Trump administration has been making a number of efforts to negotiate resolutions of the conflicts, but nothing definitive has been announced at this point. We expect 2025 will likely to be a continued period of higher than historical volatility in the business.

關稅對資本、設備和化學品的成本影響最大。對於資本設備，由於全球金屬價格上漲，供應商正在提高價格、增加附加費並延長交貨時間。除了全球貿易問題之外，由於中東、北非和俄羅斯等國家擁有大量氮肥生產能力，地緣政治風險仍然是氮肥產業面臨的不確定因素。川普政府一直在為透過談判解決衝突做出許多努力，但目前尚未宣布任何最終結果。我們預計，2025 年該業務的波動性可能會持續高於歷史水準。

Natural gas prices in Europe have declined about $3 per MMBtu to $12 since our last earnings call. While US prices continue to range between $3 and $4.50 per MMBtu. Concerns around Europe's ability to replenish its natural gas inventories before the winter of 2025 persist, given the supply constraints into Europe.

自我們上次財報電話會議以來，歐洲天然氣價格已下跌約 3 美元/百萬英熱單位至 12 美元。而美國的價格則繼續在每百萬英熱單位 3 美元至 4.50 美元之間徘徊。鑑於歐洲的供應限制，人們仍然擔心歐洲是否有能力在 2025 年冬季之前補充其天然氣庫存。

The cost to produce ammonia in Europe remains terribly at the high end of the global cost curve, which we expect will continue to keep the global supply demand balance tight through 2025. Continue to believe Europe faces structural and natural gas market issues that will likely remain in effect at least through 2026.

歐洲生產氨的成本仍然處於全球成本曲線的高端，我們預計到 2025 年全球供需平衡將持續緊張。繼續相信歐洲面臨的結構性和天然氣市場問題可能至少持續到2026年。

At our Coffeyville facility, we're focused on the detailed design of the infrastructure required to utilize natural gas as an alternative feedstock to third-party pet coke. As a reminder, if this project is approved by the Board and implemented, we would likely continue to utilize the pet coke supplied by the adjacent Coffeyville refinery, while the remainder of the feedstock could be flexed between natural gas and pet coke, depending on prevailing prices. While we saw a decline in pet coke pricing in the first quarter, we expect to see prices increase in the second quarter as a result of higher quarterly index adjustments on both internal and external pet coke purchases.

在我們的科菲維爾工廠，我們專注於利用天然氣作為第三方石油焦替代原料所需的基礎設施的詳細設計。提醒一下，如果該專案獲得董事會批准並實施，我們可能會繼續利用鄰近的科菲維爾煉油廠提供的石油焦，而其餘原料則可以根據現行價格在天然氣和石油焦之間靈活調配。雖然我們看到第一季石油焦價格下降，但我們預計第二季價格將上漲，因為內部和外部石油焦採購的季度指數調整都會增加。

We also continue to execute certainty bottlenecking projects at both plants that are expected to improve 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're focused on water and electricity reliability and quality at both plants and expansion of our DEF production and load out capabilities among other projects. We're also planning to install a nitrous oxide abatement unit at the Coffeeville plant during our fall 2025 turnaround. After insulation, we would have nitrous oxide abatement units on all four of our nitric acid plants, which aligns with our strategy of reducing the carbon footprint of our operations.

我們也將繼續在兩家工廠實施確定性瓶頸項目，以期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（不包括週轉的影響）。我們專注於兩家工廠的水電可靠性和質量，以及擴大我們的 DEF 生產和裝載能力等項目。我們也計劃在 2025 年秋季檢修期間在 Coffeeville 工廠安裝一氧化二氮減量裝置。經過隔熱處理後，我們將在所有四個硝酸工廠中安裝一氧化二氮減量裝置，這符合我們減少營運碳足跡的策略。

The Board elected to continue reserving capital in the 1st quarter that we expect to spend over the next 2 to 3 years in support of these projects. The funds needed for the 2025 projects are coming from the reserves taken over the last two years. The first quarter continued to demonstrate the benefits of focusing on reliability and performance. In the quarter, we executed on all of 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, brutally managing costs, being judicious with capital, maximizing our marketing and logistics capabilities, and targeting opportunities to reduce our carbon footprint.

董事會選擇在第一季繼續保留資本，我們預計在未來 2 至 3 年內使用這些資本來支持這些項目。2025年計畫所需的資金來自過去兩年的儲備金。第一季持續展現出專注於可靠性和效能的好處。在本季度，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，嚴格管理成本，明智地使用資金，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。

Closing, I would like to thank our employees for their excellent execution, safely achieving 101% ammonia utilization and solid delivery on our marketing and logistics plans, resulting in a distribution of $2.26 per common unit for the first quarter. With that, we're ready to take any questions, Christine.

最後，我要感謝我們的員工的出色執行，安全地實現了 101% 的氨利用率，並穩固地完成了我們的行銷和物流計劃，導致第一季度每普通單位的分配額達到 2.26 美元。有了這些，我們就可以回答任何問題了，克里斯汀。

Thank you. We will now be conducting a question-and-answer session. (Operator Instructions)

謝謝。我們現在將進行問答環節。（操作員指示）

Thank you. Our first question comes from the line of Rob McGuire with Granite Research. Please proceed with your question.

謝謝。我們的第一個問題來自 Granite Research 的 Rob McGuire。請繼續您的問題。

Hey, good morning, Mark, Dan, and Richard.

嘿，早上好，馬克、丹和理查德。

Good morning, Rob.

早安，羅布。

Just a handful of questions here with regards to, you talked about your utilization rates running between 93% and 97% in 2025 due to some downtime. Is that, can you just discuss the step down from the first quarter a little more in depth?

這裡只有幾個問題，您提到由於一些停機時間，到 2025 年您的利用率將在 93％ 到 97％ 之間。那麼，您能否更深入地討論一下第一季的下滑情況？

Sure, the biggest driver there, Rob, is we we're installing a new control system in the reformer at at our East Dubuque facility, so we're going to have to take down the several of the compressors to install the new control system. So it's not a performance issue with the plant, but it's an upgrade of the control system there, which is one of the reliability projects that we've been referring to the last several quarters on the plant and that's, we expect that to help us with our reliability at the East Dubuque facility.

當然，羅布，最大的驅動力是我們正在東杜比克工廠的重整器中安裝一個新的控制系統，所以我們將不得不拆除幾台壓縮機來安裝新的控制系統。因此，這不是工廠的性能問題，而是那裡的控制系統的升級，這是我們在過去幾季中一直在提到的工廠可靠性項目之一，我們希望這能幫助我們提高東杜比克工廠的可靠性。

Thanks Mark. And then, look, you put aside substantial reserves over the past year or so for potential growth projects. Can you just maybe give us the status on those projects or maybe more specifically just give us an idea of how much gross ammonia production will be expanded by in those projects?

謝謝馬克。然後，你看，在過去一年左右的時間裡，你為潛在的成長計畫留出了大量儲備。您能否向我們介紹一下這些項目的進度，或更具體地告訴我們，這些項目將使氨的總產量增加多少？

Sure, I won't get that specific, exact percentages, but the two elements are what we're calling an improvement in production is, several of the projects are targeted at issues that that generate downtime and so, a number of the projects will result in reduced downtime at the plant which would increase production effectively by several percentage points. And so, the projects we've been referring to are projects that we've seen, as, points of failure in the plants, and they've taken the plants down over the, if you look over the last 5 years, it's, several days here or there and so by addressing those issues, we expect our downtime to go down and therefore that means our production will be up and then we're also looking at potentially expanding the nameplate capacity at both facilities by again by I'm not going to quantify it yet but by several percentage points. So when you combine all those efforts, we should, you should see our nameplate and overall production go up over the next, you'll call it 2 to 3 years.

當然，我無法得到那麼具體的、準確的百分比，但這兩個要素就是我們所說的生產改進，其中幾個項目是針對導致停機的問題，因此，許多項目將減少工廠的停機時間，這將有效地提高產量幾個百分點。因此，我們提到的項目是我們見過的工廠故障點，如果你回顧過去 5 年，你會發現工廠停工的次數時有發生，有時是幾天，透過解決這些問題，我們預計停機時間會減少，這意味著我們的產量會上升，然後我們也在考慮將這兩個工廠的額定產能擴大幾個百分點，我現在還不能量化，但可以擴大幾個百分點。因此，當你將所有這些努力結合起來時，你應該會看到我們的銘牌和整體產量在未來 2 到 3 年內上升。

I appreciate that. And then with regards to your project, for net gas or pet coke Coffeyville, can you give us a more refined cost estimate for that project?

我很感激。然後關於您的項目，對於淨氣或石油焦科菲維爾，您能否為我們提供該項目更精細的成本估算？

We're not done. We're not quite done with that, but, we'll have a better number, in the next few months, but it's going to be a double digit millions, kind of number, not a high double digits, but a low double digits, but we we're looking at a couple different alternatives and that's why it's moving around a little bit by a few million, but the exciting part there is we're pretty much concluded that we can introduce natural gas directly to the gasification complex with a with a minor modification to the configuration. So technically speaking we're comfortable with feeding natural gas and we're looking at some other opportunities for hydrogen, bring more hydrogen in and that would be a nameplate capacity addition and that's we're waiting on, understanding how that would work with the natural gas. Before we decide the final spend there, but the first leg of that we're completed with, which is we were studying whether, what were the issues around introducing natural gas to the gas fires so we're comfortable with that technically. And now it's really about in addition to natural gases looking at additional sources of hydrogen from the refinery, they have excess hydrogen there. And we're trying to tap into that to increase our potentially increase our production capacity.

我們還沒做完。我們還沒有完全完成這個目標，但是，在接下來的幾個月裡，我們會有一個更好的數字，但它將是一個兩位數，不是高兩位數，而是低兩位數，但我們正在尋找幾個不同的替代方案，這就是為什麼它的波動幅度在幾百萬左右，但令人興奮的是，我們幾乎已經得出結論，我們可以將天然氣直接引入氣化綜合體，只需對配置進行微小的修改。因此從技術上講，我們樂意輸送天然氣，並且我們正在尋找其他氫氣的機會，引入更多的氫氣，這將是額定容量的增加，而這就是我們正在等待的，了解這將如何與天然氣配合使用。在我們決定最終支出之前，我們已經完成了第一階段的工作，也就是我們正在研究將天然氣引入燃氣壁爐是否存在問題，以便從技術上來說我們對此感到滿意。現在我們真正要考慮的除了天然氣之外，還要從煉油廠尋找額外的氫氣來源，因為那裡有過剩的氫氣。我們正試圖利用這一點來提高我們的潛在生產能力。

Thanks, Mark. And then, Mark and Dane, there's that $8 million category for future operating needs relating to the 2021 storm and then potential future cash needs relating to the nitrogen fertilizer seasonality and feedstock. I just, I don't recall that category, but should we expect more additional reserves in that category going forward, or can you elaborate a little on that?

謝謝，馬克。然後，馬克和戴恩，還有 800 萬美元的類別用於與 2021 年風暴相關的未來營運需求，以及與氮肥季節性和原料相關的潛在未來現金需求。我只是，我不記得這個類別，但是我們是否應該期待未來該類別中會有更多的額外儲備，或者您能否詳細說明一下？

Yeah, I'll take that, Rob. Really, it's around, reserving for cash flows in the future primarily in the short term, we're doing the reserves for the growth projects, and we don't want that cash to be fungible with other cash. We want to make sure that's available when we get to spending on the projects. So really you look at kind of CapEx and what we've spent this year so far and you look at what the profile over the year looks like just want to set aside a little extra to make sure that it's available when we get to the turnaround and the heavier CapEx. So, I would expect that, subject to Board approval we may see one or two of those with releases subsequent to that.

是的，我接受，羅布。實際上，這主要是為了短期內未來的現金流儲備，我們正在為成長項目儲備，我們不希望這些現金與其他現金互換。我們希望確保在專案支出時能夠獲得這些資金。因此，您實際上要看一下資本支出的類型以及我們今年迄今為止的支出，然後看看全年的狀況，只是想留出一點額外的資金，以確保在我們遇到週轉和更大的資本支出時可以使用。因此，我預計，經董事會批准後，我們可能會看到其中的一兩個版本隨後發布。

Thanks, Dane. And then, Mark, you mentioned in your comments about the UAN pricing, being a little lower just due to the delayed shipments. Should we look forward to more robust pricing in the second quarter of 2025?

謝謝，丹恩。然後，馬克，您在評論中提到，由於發貨延遲，UAN 的定價略低。我們是否應該期待 2025 年第二季出現更強勁的定價？

Yeah, the first quarter, the way I think about the first quarter pricing was really product we sold back in the fall to early winter and price has been escalating really since December and the second quarter is going to be reflective of closer to current market. And so, prices have escalated relatively significantly from December until now and the second quarter is going to reflect those higher prices in UAN.

是的，第一季度，我認為第一季度的定價實際上是我們在秋季到初冬銷售的產品，而且自 12 月以來價格一直在上漲，而第二季度的價格將更接近當前市場。因此，從 12 月到現在，價格已經大幅上漲，第二季將反映出 UAN 價格的上漲。

So just as you look forward to the normal summer fill relating discounting, do you think we'll see less? I mean, it seems like there's a lot of tightness in inventory in the system right now and it's still early, but do you envision that the tightening reducing normal fill related discounting?

因此，正如您期待正常的夏季折扣一樣，您認為我們會看到更少的折扣嗎？我的意思是，目前系統中的庫存似乎非常緊張，而且現在還為時過早，但您是否認為這種緊張會減少與正常填充相關的折扣？

I think what we've experienced in the years that I've been here is when the system is relatively empty at the end of the planning year, June 30th, it bodes well for the fill, and I expect that the system in the industry here in the US to be relatively empty at June 30th and so that should bode well for the fill pricing in the summer, and so, I think the prospects look very good there. We've always done well when the system is drained in the spring, and with 95 million planted corn acres, we're going to draw a lot of nitrogen out of the system and that has to be replenished. And so yeah, that should bode well for the summer fill season for both ammonia and UAN this year.

我認為，我在這裡工作的這些年所經歷的是，當計劃年度結束時（6 月 30 日）系統相對空曠，因此這對夏季的填充定價來說是個好兆頭，所以我認為那裡的前景看起來非常好。當春季系統排水時，我們總是做得很好，而且由於種植了 9500 萬英畝的玉米，我們將從系統中吸收大量的氮，必須進行補充。是的，這對於今年夏季氨和 UAN 的填充季節來說是一個好兆頭。

I think we'll all look forward to that. That's great. And then, urea has been rising. Ammonia has stayed relatively weak in the recent market. And Mark, I just wonder if you could kind of give us your perspective on that pricing divergence and is there anything that you could do in your business to kind of capture that gap between the two nitrogen products?

我想我們都期待這一點。那太棒了。隨後，尿素價格持續上漲。近期氨市場走勢較為疲軟。馬克，我只是想知道您是否可以給我們一些關於價格差異的看法，以及您可以在業務中做些什麼來彌補兩種氮產品之間的差距？

One of the issues, hard when you look at the publications is, you look at a big gap between ammonia and urea and UAN, but the ammonia price that's always referred to as the Tampa ammonia contract, which I don't think of as a good representation of where the Midwest ammonia market is, which is where a lot of the ammonia - all the ag ammonia is going to be on the ground. And so, the spread is actually widened off of that Tampa price and not reflective. Most of our businesses, the relationship in our plants between urea, UAN, and ammonia, usually they might get a little bit out of their traditional relationship for a short period of time, but they generally reflect, what the market is and I would tell you that our ammonia price in the spring, we're largely done with the spring now, but that was not reflective of the Tampa price. But more reflective of where urea and UAN were, and so I don't put a lot of waiting in that, and very different marketplace and urea and UAN have been very strong. There have been production issues in the US. There have been natural gas shortages in Trinidad, in the Middle East, and North Africa. And so, there's been a supply issue and demand's been very strong with all the planted acres. So, the supply demand balance in the US has been very tight and that has led to, you can see the publications where the pricing is right now and it's been a very tight market where supply has been somewhat constrained.

其中一個問題是，當你查看出版物時，你會發現氨、尿素和 UAN 之間存在很大差距，但氨價格總是被稱為坦帕氨合同，我認為這不能很好地代表中西部氨市場的狀況，而中西部是大量氨——所有農業氨都將流向地面的地方。因此，價差實際上是從坦帕價格擴大的，而不是反映性的。我們大多數業務，我們工廠中的尿素、UAN 和氨之間的關係，通常它們可能會在短時間內脫離傳統關係，但它們通常反映市場狀況，我會告訴你，我們春季的氨價格，現在基本上已經完成了，但這並不能反映坦帕的價格。但更多地反映了尿素和 UAN 的處境，因此我不會花太多時間等待，而且市場非常不同，尿素和 UAN 一直非常強勁。美國出現了生產問題。特立尼達、中東和北非都出現了天然氣短缺。因此，存在供應問題，而對於所有種植面積而言，需求都非常強勁。因此，美國的供需平衡一直非常緊張，這導致了，你可以看到出版物現在的定價，這是一個非常緊張的市場，供應受到一定限制。

I appreciate that, Mark, and then one last question. So, you talked about the 95 million acres of corn that's expected to be planted, which has recently been an uptick in expectations, but now China is pulling back on buying corn. How do you think that decision is going to impact the American farmer if China continues to pull back on corn purchases?

我很感激，馬克，還有最後一個問題。所以，您談到了預計將種植 9500 萬英畝玉米，最近這一預期有所上升，但現在中國正在減少玉米購買量。如果中國繼續減少玉米採購，您認為這項決定將對美國農民產生什麼影響？

Well, the bigger issue for corn is Mexico, not China. Mexico is the big buyer of corn. And while the trading relationship flared up early, there hasn't been as much conflict on corn with Mexico. It's been soybeans. China is a big buyer of soybeans and what I would tell you, they have been purchasing less soybeans from the US, but Brazil has taken up that, like when the Russia-Ukraine conflict started, the market has to readjust and so the US soybeans are finding different markets that used to be serviced by Brazil. The market's changing around there a little bit and maybe China's going to be less of a buyer, but that means, they're going to be buying from Brazil, but that'll create a whole for US soybean producers to sell into another market. It may take us a few months for the market to adjust to that, but if you look at overall global inventories for soybeans and corn, they're still at the low end, or below the 10-year average. There is still a need globally for soybeans and corn, it's just where the markets will be, the US may have to readjust the export market to where it's going, but there's definitely a need for it. So I'm not too worried about the need, it's just where it has to go.

嗯，玉米的更大問題是墨西哥，而不是中國。墨西哥是玉米的最大買家。儘管兩國貿易關係早期就出現緊張，但在玉米問題上與墨西哥的衝突並不大。是大豆。中國是大豆的大買家，我想告訴你的是，他們從美國購買的大豆一直在減少，但巴西已經意識到，就像俄羅斯和烏克蘭衝突開始時一樣，市場必須重新調整，因此美國大豆正在尋找過去由巴西服務的不同市場。那裡的市場正在發生一些變化，也許中國會減少購買量，但這意味著他們將從巴西購買，但這將為美國大豆生產商創造一個銷往另一個市場的機會。市場可能需要幾個月的時間來適應這一點，但如果你看看全球大豆和玉米的整體庫存，它們仍然處於低端，或者低於 10 年平均水平。全球對大豆和玉米仍有需求，這只是市場走向的問題，美國可能需要重新調整出口市場，但肯定是有需求的。所以我並不太擔心這個需求，只是它必須往何處去。

Well, thank you for all of your insights. I appreciate it and the detail on operations.

好吧，感謝您的所有見解。我很欣賞它以及操作的細節。

Thank you, Rob.

謝謝你，羅布。

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

謝謝。問答環節已結束。皮托什先生，我想把發言權交還給您，請您發表最後評論。

Thank you, Christine. Thanks for everybody for joining the call today and we look forward to reviewing our second quarter results, late in July.

謝謝你，克里斯汀。感謝大家今天參加電話會議，我們期待在七月下旬審查我們的第二季業績。

Thank you very much.

非常感謝。

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time.

女士們、先生們，今天的電話會議到此結束。現在您可以斷開線路。

Thank you for your participation and have a wonderful day.

感謝您的參與並祝您有美好的一天。