Good day, and welcome to Icahn Enterprises L.P. Q2 2018 Earnings Conference Call with Jesse Lynn, General Counsel; Keith Cozza, President and CEO; and SungHwan Cho, Chief Financial Officer. I would now turn the call over to Jesse Lynn who will read the opening statements.

Thank you, and good morning. The Private Securities and 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. 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. Now I'll turn it over to Keith Cozza, our Chief Executive Officer.

Thanks, Jesse. Good morning, and welcome to the Second Quarter 2018 Icahn Enterprises Earnings Conference Call. Joining me on today's call is SungHwan Cho, our Chief Financial Officer. I'll 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. For Q2 2018, we had net income attributable to Icahn Enterprises of $309 million or $1.70 per LP unit compared to net income of $1.6 billion or $9.51 per LP unit in the prior-year period. Net income attributable to Icahn Enterprises from continuing operations for Q2 2018 was $164 million or $0.90 per LP unit compared to net income of $1.5 billion or $9.20 per LP unit in the prior-year period. The prior-year period included a $1 billion gain net of tax from the sale of ARL. Adjusted EBITDA attributable to Icahn Enterprises for Q2 2018 was $356 million compared to $288 million for Q2 of 2017. We previously announced in April of 2018 separate definitive agreements to sell both Federal-Mogul and Tropicana Entertainment. We are reporting their respective results and discontinued operations and we have reclassified the assets and liabilities of each group to held for sale on our balance sheet. We agreed to sell Federal-Mogul to Tenneco Inc for approximately $5.4 billion comprised of $800 million in cash and 29.5 million shares of Tenneco common stock. All the Federal-Mogul's outstanding debt at the time of closing will be assumed by Tenneco. We expect the sale to close in the early part of the fourth quarter. We agreed to sell Tropicana's real estate to Gaming and Leisure Properties Inc and to merge Tropicana's gaming and hotel operations into Eldorado Resorts, Inc for aggregate consideration of approximately $1.85…

Thanks, Keith. I will begin by briefly reviewing our consolidated results and then highlight the performance of our operating segments and comment on the strength of our balance sheet. In Q2 2018 net income attributable to Icahn Enterprises was $309 million compared to net income of $1.6 billion in the prior-year period. Net income attributable to Icahn Enterprises from continuing operations in Q2 '18 was $164 million compared to net income of $1.5 billion in the prior-year period. On Slide 5. In Q2 of 2018 the performance of our investment funds was the primary driver of net income in the quarter. In 2017 you can see we had significant one-time gains related to the sale of ARL railcars flowing through both the railcar segment and the holding company. Adjusted EBITDA attributable to Icahn Enterprises for Q2 2018 was $356 million compared to $288 million in Q2 2017. I will now provide more detail regarding the performance of the individual segments. Our investment segment had a gain attributable to Icahn Enterprises of $157 million for Q2 2018. The investment funds had a positive return of 4.9% in Q2 '18 compared to a positive return of 4.3% for Q2 '17. Long positions had a positive performance attribution of 6.5% for the current quarter while short positions and other expenses had a negative performance attribution of 1.6%. Since inception in November 2004 through the end of Q2 2018 the investment fund's growth return is 144% or approximately 6.7% annualized. The investment funds continue to be significantly hedged. At the end of Q2 2018 net long exposure was 11% compared to a net long exposure of 14% at the end of '17 and a net long exposure of 18% at the end of Q1 2018. IEP's investment in the funds was $3.3 billion as…

[Operator Instructions]. Our first question comes from Dan Fannon of Jefferies.

I guess just first on the -- you talked about the holdco cash getting replenished after these deals. Should we just think about the funds, kind of the $3.3 billion kind of investment in the fund going up in the short term as you think about deploying that cash or should -- you're looking at paying down any more debt or any kind of use of those proceeds?

Yes, sure. Hi, Dan, it's Keith. I think the way we look at it is a significant portion of the pro forma proceeds from dispositions would go into the investment segment. All things being equal with some portion of it also replenishing cash at the holdco level. But we're -- I'm not sure that it makes a ton of economic sense at this juncture to pay down any of our bonds. They have significant call protection. That would probably not make a ton of economic sense.

Got it. Then I guess could you just kind of give us a sense broadly of, we have your positions on the kind of net long in the fund, but I guess kind of your view at an investment level of kind of where we are in the cycle and kind of evaluations or any kind of more context around how you're thinking about new investments and kind of the overall kind of I guess attractiveness of the markets today?

Yes, sure. Broadly speaking, obviously it does feel like we're at the tail end of the cycle, but we have no way of knowing whether it lasts another year or two years or two months. So we're always kind of trying to manage risk accordingly with -- of the unknown macro situation. And the multiple do seem high and it's harder to find what we like to refer to as cheaper value value-oriented situations. We are finding a handful of stuff. You've seen our public filings. We've been quite active this year on a number of fronts. So we are finding pockets of opportunity, but in general representative -- it's represented by our net long exposure trying to stay pretty cautious and hedge out some of the macro risk.

Our next question comes from [indiscernible].

I was wondering if you can give us an update on the sale process of the Aruba casino hotel as a part of the Tropicana sale?

I mean the only update I would say is that we're currently, we ran a process, there were a number of bids received and we're in the later rounds of that process. And hopefully we'll have the transaction to announce in the next I'd say two months, but that's really the only update -- yes, that's really the only update I can give on that.

Okay, great. And can you given an update on expected proceeds, roughly speaking?

I can't at this juncture.

Understood. And when do you expect that transaction to close, the entire transaction, entire sale of Tropicana?

I referenced in my prepared remarks, early fourth quarter.

Thank you. I currently have no more questions in queue. I like to turn the conference back over to Keith Cozza for any closing remarks.

Thank you, Operator. Thank you very much for joining us today everyone and we look forward to talking to you about the third quarter results. Have a good day.

Thank you. Ladies and gentlemen, this does conclude today's conference. Thank you for your participation and have a wonderful day. You may all disconnect.