Icahn Enterprises L.P. (NASDAQ:IEP) Q3 2024 Earnings Conference Call November 8, 2024 10:00 AM ET

Company Participants

Andrew Teno – President and Chief Executive Officer
Ted Papapostolou – Chief Financial Officer
Robert Flint – Chief Accounting Officer

Conference Call Participants

Dan Fannon – Jefferies
Andrew Berg – Post Advisory Group
Bruce Monrad – Northeast Investors Trust

Operator

Good morning, and welcome to Icahn Enterprises L.P. Third Quarter 2024 Earnings Call with Andrew Teno, President and CEO; Ted Papapostolou, Chief Financial Officer; and Robert Flint, Chief Accounting Officer.

I would now like to hand the call over to Robert Flint, who will read the opening statement.

Robert Flint

Thank you, operator. The Private Securities Litigation Reform Act of 1995 provides a Safe Harbor for forward-looking statements we make in this presentation, including statements regarding our future performance and plans for our businesses and potential acquisitions. Forward-looking statements may be identified by words such as expects, anticipates, intends, plans, believes, seeks, estimates, will, or words of similar meaning and include but are not limited to statements about the expected future business and financial performance of Icahn Enterprises L.P. and its subsidiaries.

Actual events, results, and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties, and other factors that are discussed in our filings with the Securities and Exchange Commission, including economic, competitive, legal, and other factors. Accordingly, there is no assurance that our expectations will be realized. We assume no obligation to update or revise any forward-looking statements should circumstances change, except as otherwise required by law.

This presentation also includes certain non-GAAP financial measures, including adjusted EBITDA. A reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the back of this presentation. We also present indicative net asset value. Indicative net asset value includes, among other things, changes in the fair value of certain subsidiaries, which are not included in our GAAP earnings. All net income and EBITDA amounts we will discuss are attributable to Icahn Enterprises unless otherwise specified.

I’ll now turn it over to Andrew Teno, our Chief Executive Officer.

Andrew Teno

Thank you, Rob, and good morning, everyone. NAV decreased $423 million from the second quarter of 2024. Positive returns in the investment funds were more than offset by declines in CVR Energy, disappointing performance from auto service and the impact of the quarter’s distribution to unitholders. So first, the good news. The investment funds were up approximately 8% for the quarter. We generated positive returns from our single name longs, led by our healthcare investments and our refining hedges and generated significant interest income. Our losses were predominantly caused by our broad market hedges, and we avoided any big single name losses.