Good morning, and welcome to the Icahn Enterprises L.P. Q2 2014 Earnings Call with Jesse Lynn, Assistant General Counsel; Keith Cozza, President and CEO; and SungHwan Cho, Chief Financial Officer. I would now like to hand the call over to Jesse Lynn who will read the opening statement. Please go ahead.

Thank you. 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. These forward-looking statements involve risks and uncertainties 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. Now I'll turn it over to Keith Cozza, our Chief Executive Officer.

Thanks, Jesse. Good morning, and welcome to the Second Quarter 2014 Icahn Enterprises Earnings Conference Call. Joining me on today's call is SungHwan Cho, our Chief Financial Officer. I would like to begin by providing some brief highlights. Sung will then provide an in-depth review of our financial results and the performance of our business segments. We will then be available to address your questions. Icahn Enterprises posted strong results for the second quarter of 2014, driven by the performance of the Investment Funds. Adjusted net income attributable to Icahn Enterprises for Q2 2014, after adding back the loss on extinguishment of debt, was $520 million or $4.32 per LP unit, compared to net income of $54 million or $0.48 per LP unit in the prior year period. Please note that Q2 of 2013 did not contain any gains or losses for the extinguishment of debt. Adjusted EBITDA attributable to Icahn Enterprises for Q2 2014 was $880 million, compared to $275 million in Q2 of 2013. In our Investment segment, the Investment Fund recorded a total return of 10.7% for the quarter compared to a return of negative 2.8% in the prior year quarter. The Investment Funds' performance was driven by significant gains from our investments in Apple, Chesapeake Energy, and Forest Laboratories. We are very pleased with these returns given the negative impact that our hedging activities have had on performance. Without giving effect to our hedges, our long-only positions increased by 17% for the quarter. Q2 2014 sales and operating EBITDA for Federal-Mogul improved from the prior year period, driven by strong conversion on higher sales and improved operating performance, particularly, in their Powertrain division. Powertrain continued to gain market share in all regions, and financial results of the Motorparts division improved in North America, which helped to…

Thanks, Keith. I will begin by briefly reviewing our consolidated results for Q2 2014 and then highlight the performance of our operating segments. In Q2 2014, adjusted net income attributable to Icahn Enterprises after adding back the loss on extinguishment of debt was $520 million, driven by strong performance of the Investment Funds, as Keith mentioned earlier. As you can see on Slide 5, Q2 2014 adjusted EBITDA attributable to IEP was $880 million, compared to $275 million in the prior year. Most of the increase is tied to the performance in the Investment segment, as well as improved performance of Federal-Mogul and the acquisition of ARL in Q4 of 2013. I will now provide more detail regarding the performance of our individual segments. Our Investment segment had income attributable to Icahn Enterprises of $501 million. For Q2 2014, the Investment Funds that we managed had a gross return of 10.7% compared to a loss of 2.8% in Q2 2013. Long positions had a 16.8% return for the current quarter while the short positions and other expenses had a negative performance attribution of negative 6.1%. Year-to-date, the Investment segment has generated a 10.2% return compared to 6.7% in the first half of 2013. Since inception in November 2004 through the end of Q2 2014, the Investment Funds gross return is 293% or 15.2% annualized. The Investment Funds continue to be significantly hedged. At the end of Q2 2014, net long exposure was 39%, compared to 13% at the end of 2013. IEP's investment in the Funds was $5.1 billion as of June 30, 2014. And now to our Energy segment. For Q2 2014, our Energy segment reported net sales of $2.5 billion and consolidated adjusted EBITDA of $215 million. CVR Refining's Coffeyville and Wynnewood refineries achieved another consecutive quarter record…

[Operator Instructions] And our first question comes from Dan Fannon from Jefferies.

Just wanted to touch base on just the investment opportunities and how you kind of see it today versus other periods. You mentioned there are still pretty -- opportunities -- you're still pretty positive on the environment. But just thinking about your -- the firm capital allocating more to the Fund, less to the Fund, kind of for the rest of this year and how you think about that. Then ultimately just kind of comparing maybe just the activist environment as a whole to today in the first half of this year versus maybe a year ago or other periods in time.

Sure. Dan, it's Keith. Obviously, we think the current environment for the activist strategy is fantastic. Some of this is going to sound very familiar, but interest rates are extremely low. Organic growth opportunities are somewhat limited. We've been kind of pushing or preaching about an M&A boom, which is somewhat materializing over the last couple of quarters, and we've been able to participate in that with the -- you just probably saw the recent public news of Family Dollar, as well as Forest Laboratories getting bought out during the first half of the year as well. So the opportunity set is great. I would characterize one -- I would recharacterize one thing you said, we're generally very cautious on the overall economy and very careful where valuations are right now. And so -- but I think that shows up in our low exposures. We tend to keep things pretty hedged. We're seeing good opportunity sets on certain individual situations. But globally, we're pretty cautious. From a macro point of view, we're pretty cautious.

Okay. And I guess, I mean, should we think about then, at the segment level, M&A is still being -- is something you guys are pushing for in those segments? Or just thinking about just kind of activity across the various subgroups and where you potentially see more opportunity for that? Or kind of thinking about the holistic portfolio, you don't see much change kind of from here?

Well, I mean, I think our actions probably are going to speak the loudest. At the subsidiaries, we are seeing a number of different M&A opportunities. We've talked about it. We bought the casino in -- the Lumière Casino in St. Louis as part of the Tropicana business. Federal-Mogul just did two bolt-on acquisitions and we're -- there's no shortage of additional opportunities that we're constantly reviewing. And if the valuation makes sense and the strategic rationale makes sense and there's good synergies, we'll pull the trigger. But as far as those opportunities -- we see dozens of opportunities every quarter. Which ones materialize is always just price dependent, effectively. But I think -- I look at IEP in the long term. And over a decade, you see different segments being added into our operating businesses, and I would expect that to continue over the next decade. I think if we had this conversation 2, 3 years from now, there'll probably be a new segment, maybe it'll be one less segment. It's always going to be valuation dependent.

Got it. And then, lastly, just any update on July with regards to the fund and how that's tracked into the third quarter?

Yes. I'm not in the position to -- we haven't disclosed that.

And our next question comes from Ken Bann from Jefferies and Company.

I was just wondering could you give us maybe an update on maybe where your cash might be now with the special dividend that you got from CVR?

Well, I mean, sure, we can do it together. It's -- the special dividend is public information. $2 times 71 million shares, so it's another $140 million on top of our reported balance here. So at holdco, pro forma would be around $1.250 billion. I mean, there are some other thing -- regular business-type things that are probably in there, but that's the big item.

Okay, right. And then, in terms of M&A, are there any thoughts on some of your smaller segments, selling any of those at any point given the stronger valuations in the market?

We're always evaluating. I mean, we kind of -- we like to say we follow our mantra. We could be buyers or sellers. It's always valuation dependent. There's nothing imminent, but we're always actively reviewing for add-ons or even dispositions, frankly. But there's nothing pending.

[Operator Instructions] And we do have a question from Andrew Berg from Post Advisory.

On the Metals segment, just curious, you made a little bit of headway. Obviously, it remains a challenging environment. You think that there's any potential to get this to breakeven by fiscal year end? Or do you think we'll be in EBITDA loss for the year?

We've made some management changes there. The environment continues to be pretty tough. But we have a lot of operational initiatives in place that we think there's a chance of getting to, at least, breakeven for the remainder of the year. And I think we continue to invest in the business and we think that'll add to the profitability of the business next year.

Okay. And on the WestPoint side, again you've been making slow headway on that one. As that business begins to turn, do you start seeing inquiries from anybody who may want to approach you to buy that business now that you've got it back on better footing? Or is it still pretty much work in progress and you're waiting for the right time to exit?

I think we're most -- we're just focused on improving the operations of it this year. We're happy with what the job management is doing. It's been a long road of turning that around, Andrew, but we're pretty focused on continuing to improve and focus on profitable sales. So there's again -- that's where our main focus is right now, to turn it into a nice little profitable segment here this year.

Okay, and then, just on the hedge fund, I just want to make sure I got it right. Sung, you said your net long was 39% at the end of 2Q and 13% long at the end of 4Q last year?

Yes, that's right.

What was it the end of 1Q? Do you have that number?

Off the top of my head, I want to say 33%, but it is in the Q in the same section. I'm doing it off memory, but I believe it was 33%.

Thank you. And I currently have no more questions in the queue.

Okay, thanks, everyone. We look forward to speaking with you next quarter.