
Financial Data and Key Metrics Changes - For Q3 2020, the company reported net sales of $79 million, a net loss of $19 million, and EBITDA of $15 million, compared to net sales of $89 million, a net loss of $23 million, and EBITDA of $11 million in Q3 2019 [7][12] - Direct operating expenses decreased to $39 million from $48 million in the prior year period, with a 7% reduction when excluding inventory and turnaround impacts [13] - Total debt remained at $647 million, with liquidity improving to approximately $74 million as of September 30, 2020 [15][16] Business Line Data and Key Metrics Changes - The Coffeyville ammonia plant operated at 97% utilization, while the East Dubuque plant operated at 99% utilization, with combined operations producing approximately 215,000 gross tons of ammonia [8] - The company produced 330,000 tons of UAN in Q3 2020, compared to 318,000 tons in the prior year period [9] - Approximately 365,000 tons of UAN were sold at an average price of $140 per ton, and 54,000 tons of ammonia at an average price of $242 per ton, with year-over-year pricing down 23% for UAN and 28% for ammonia [10] Market Data and Key Metrics Changes - Crop prices have improved significantly, with corn prices rising from $3.08 to over $3.95 per bushel and soybean prices from $8.70 to over $10.50 per bushel since July [21] - The USDA forecasts lower expected yields and harvested acres due to drought conditions, leading to much lower expected corn inventory levels [21] - Natural gas prices have risen over a dollar per MMBTU, which may impact production incentives [23] Company Strategy and Development Direction - The company aims to maximize free cash flow by operating plants reliably, managing costs prudently, and selectively investing in reliability projects and production capacity [26] - Efforts to reduce carbon footprint include certifying carbon offset credits and enhancing carbon sequestration processes, positioning the company for future demand for low-carbon ammonia [24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about an uptick in fertilizer pricing due to improved crop prices and farm economics [10] - The company expects solid demand for ammonia this fall, with favorable market conditions for fertilizer demand [22] - Management is comfortable with the current capital structure and is not in a rush to refinance until market conditions are favorable [39] Other Important Information - The company announced a 1 for 10 reverse split of common units effective after the market close on November 23, 2020, to regain compliance with NYSE listing standards [25] Q&A Session Summary Question: Insights on marketing strategy and UAN market - Management indicated that third-quarter pricing was primarily based on fill pricing rather than spring pricing, as summer fills were completed earlier this year [34] Question: Capital structure and refinancing options - Management expressed confidence in the current cash flow position and indicated that they are not in a rush to refinance until favorable market conditions arise [38]