Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Have you seen any changes in customer ordering patterns with the Fed lowering short-term interest rates over the last couple of quarters? A: Mark Pytosh, CEO: We haven't seen any real change in that pattern. The 100 basis points reduction wasn't enough to change customers' views on inventory levels, so we're still seeing more rateable buying, consistent over the last six to seven months.
Q: Regarding the Coffeeville project, is the dual fuel project still a potential 2026 event? A: Mark Pytosh, CEO: If approved by the board, we plan to start construction this year to have the option to choose feedstock by the end of the year. We would make decisions over months, not days or weeks, regarding the use of pet coke or natural gas.
Q: Can you provide insight into market trends, particularly regarding UAN demand and ammonia inventories? A: Mark Pytosh, CEO: Urea is tight globally, lifting both UAN and ammonia prices. Customers are buying more urea for spring, and there's limited availability, which has tightened the market. We expect greater corn acreage in the spring, leading to stronger demand for all nitrogen products.
Q: Has there been a trend towards more UAN versus ammonia usage? A: Mark Pytosh, CEO: There's no significant trend towards more UAN usage. It often depends on relative pricing at a given time. Ammonia looks slightly cheaper compared to UAN and urea, but there may be a pickup in UAN and urea usage in the spring for what wasn't applied in the fall.
Q: How should CapEx, excluding turnaround reserves, look for the balance of the year? A: Dane Neumann, CFO: For 2025, we don't expect a substantial change in reserves. The higher CapEx profile for growth projects has already been reserved, and we will continue to reserve at a comparable level.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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