Release Date: October 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: With the river levels on the Mississippi abnormally low again, is that having a positive impact on corn belt prices for UAN and ammonia? A: We haven't seen any major impacts on either of those. A lot of the ammonia was positioned already, and there's a lot of ammonia that moves into the corn belt from pipeline. And same on UAN, a lot of what's needed in corn belt moved by rail. So it hasn't had a big impact on the marketplace. We're watching it closely more for grain movements. So as harvest is nearing completion, the ability to move grain could be impacted. 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. - Mark Pytosh, CEO
Q: Regarding the Coffeyville natural gas project, any rough guesstimates on how much that would cost and how the company would look to fund that investment? A: We've been setting aside reserves for growth capital, and that capital would be taken out of the reserve if it's approved. We roughly think it's about a $10 million project. That's what we think now. But we've already - that would be part of the reserve that we've set aside for growth projects for the plant. - Mark Pytosh, CEO
Q: Earlier this year, there was a 13D filing on your sister company, CVR Energy, potentially about a large owner evaluating options for CVR Partners. Any developments there that you are able to discuss or comment on? A: We don't really have anything to report on that. The 8-K that was filed. And so nothing new, no new news this quarter to report on that. - Mark Pytosh, CEO
Q: Can you provide more details on the expected downtime at the Coffeyville facility in the fourth quarter? A: 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. - Dane Neumann, CFO
Q: What are the anticipated direct operating expenses and capital spending for the fourth quarter of 2024? A: 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. - Dane Neumann, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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