INSERTING and REPLACING CF Industries Holdings, Inc. Reports Full Year 2023 Net Earnings of $1.53 Billion, Adjusted EBITDA of $2.76 Billion
Outstanding Operational Performance, Positive Energy Spreads Drive Strong Financial Results
Acquisition of Waggaman Ammonia Production Facility Complete
Greenfield Low-Carbon SMR Ammonia Plant FEED Study Complete, FID Targeted for 2H-2024
NORTHBROOK, Ill.–(BUSINESS WIRE)–Insert in Condensed Consolidated Balance Sheets table, below Row 9 “Goodwill”: “Intangible assets–net” of $538 million and $15 million as of December 31, 2023, and December 31, 2022, respectively.
The updated release reads:
CF INDUSTRIES HOLDINGS, INC. REPORTS FULL YEAR 2023 NET EARNINGS OF $1.53 BILLION, ADJUSTED EBITDA OF $2.76 BILLION
Outstanding Operational Performance, Positive Energy Spreads Drive Strong Financial Results
Acquisition of Waggaman Ammonia Production Facility Complete
Greenfield Low-Carbon SMR Ammonia Plant FEED Study Complete, FID Targeted for 2H-2024
CF Industries Holdings, Inc. (NYSE: CF), a leading global manufacturer of hydrogen and nitrogen products, today announced results for the full year and fourth quarter ended December 31, 2023.
Highlights
- Full year net earnings(1)(2) of $1.53 billion, or $7.87 per diluted share, EBITDA(2) of $2.71 billion, and adjusted EBITDA(3) of $2.76 billion
- Fourth quarter net earnings(1)(2) of $274 million, or $1.44 per diluted share, EBITDA of $556 million, and adjusted EBITDA of $592 million
- Full year net cash from operating activities of $2.76 billion and free cash flow(4) of $1.80 billion
- Closed acquisition of Waggaman ammonia production facility on December 1, 2023
- Electrolyzer installation at Donaldsonville, LA, Complex mechanically complete; commissioning activities for green ammonia project underway
- CF Industries and Mitsui & Co., Ltd. (“Mitsui”) targeting second half 2024 for final investment decision (FID) on proposed greenfield low-carbon ammonia plant in Louisiana
- Repurchased 2.9 million shares for $225 million during the fourth quarter of 2023
“CF Industries’ 2023 results demonstrate the strength of our business and our team,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “We ran our plants well, added the Waggaman ammonia production facility to our network, and advanced our clean energy strategy. We believe that the global energy cost structure presents attractive margin opportunities for our North American-based production network in the near-term and that the global nitrogen supply-demand balance will tighten considerably in the medium-term. As a result, we expect to continue to drive strong cash generation, underpinning our ability to create significant shareholder value from disciplined investments in growth opportunities and returning substantial capital to shareholders.”
Update on Proposed Greenfield Low-Carbon Ammonia Plant at CF Industries’ Blue Point Complex
In the fourth quarter of 2023, CF Industries and Mitsui completed a front-end engineering and design (FEED) study on a greenfield steam methane reforming (SMR) ammonia facility with carbon capture and sequestration (CCS) technologies at CF Industries’ Blue Point Complex in Louisiana. The FEED study estimates the cost of a project with these attributes to be in the range of $3 billion, with approximately $2.5 billion allocated to the ammonia facility and CCS technologies and approximately $500 million allocated to scalable common infrastructure for the site, such as ammonia storage and vessel loading docks.
CF Industries and Mitsui are progressing two additional FEED studies focused on technologies with the potential to further reduce the carbon intensity of the proposed low-carbon ammonia plant. These include a previously announced FEED study evaluating autothermal reforming (ATR) ammonia production technology and a recently added FEED study assessing the cost and viability of adding flue gas capture to an SMR ammonia facility. Both FEED studies are expected to be completed in the second half of 2024.
CF Industries and Mitsui also expect greater clarity later in 2024 regarding demand for low-carbon ammonia, including the ammonia carbon intensity requirements of offtake partners as well as government incentives and regulatory developments in partners’ local jurisdictions. As a result of these factors, the companies are targeting the second half of 2024 for a final investment decision on the proposed low-carbon ammonia plant.
Operations Overview
The Company continues to operate safely and efficiently across its network. As of December 31, 2023, the 12-month rolling average recordable incident rate was 0.36 incidents per 200,000 work hours, significantly better than industry averages.
Gross ammonia production for the full year and fourth quarter of 2023 was approximately 9.5 million and 2.5 million tons, respectively. Gross ammonia production volume for the full year and fourth quarter of 2023 includes one month of production from the recently acquired Waggaman ammonia production facility in Louisiana. The Company expects gross ammonia production in 2024 to be approximately 10 million tons.
Financial Results Overview
Full Year 2023 Financial Results
For the full year 2023, net earnings attributable to common stockholders were $1.53 billion, or $7.87 per diluted share, EBITDA was $2.71 billion, and adjusted EBITDA was $2.76 billion. These results compare to full year 2022 net earnings attributable to common stockholders of $3.35 billion, or $16.38 per diluted share, EBITDA of $5.54 billion, and adjusted EBITDA of $5.88 billion.
Net sales for the full year 2023 were $6.63 billion compared to $11.19 billion for 2022. Average selling prices for 2023 were lower than 2022 as lower global energy costs reduced the global market clearing price required to meet global demand. Sales volumes for 2023 were higher compared to 2022 from higher urea ammonium nitrate (UAN), ammonia and diesel exhaust fluid (DEF) sales volumes.
Cost of sales for 2023 was lower compared to 2022 due primarily to lower realized natural gas costs.
In 2023, the average cost of natural gas reflected in the Company’s cost of sales was $3.67 per MMBtu compared to the average cost of natural gas in cost of sales of $7.18 per MMBtu for 2022.
Fourth Quarter 2023 Financial Results
For the fourth quarter of 2023, net earnings attributable to common stockholders were $274 million, or $1.44 per diluted share, EBITDA was $556 million, and adjusted EBITDA was $592 million. These results compare to fourth quarter of 2022 net earnings attributable to common stockholders of $860 million, or $4.35 per diluted share, EBITDA of $1.25 billion, and adjusted EBITDA of $1.30 billion.
Net sales in the fourth quarter of 2023 were $1.57 billion compared to $2.61 billion in 2022. Average selling prices for the fourth quarter of 2023 were lower than 2022 as lower global energy costs reduced the global market clearing price required to meet global demand. Sales volumes in the fourth quarter of 2023 were higher than 2022 driven by higher ammonia, UAN and DEF sales volumes.
Cost of sales for the fourth quarter of 2023 was lower compared to 2022 due primarily to lower realized natural gas costs.
The average cost of natural gas reflected in the Company’s cost of sales was $3.01 per MMBtu in the fourth quarter of 2023 compared to the average cost of natural gas in cost of sales of $6.88 per MMBtu in the fourth quarter of 2022.
Capital Management
Acquisition of Waggaman, Louisiana, ammonia production facility
On December 1, 2023, CF Industries closed its acquisition of Incitec Pivot Limited’s (“IPL”) ammonia production plant and related assets located in Waggaman, Louisiana. In connection with the acquisition, the Company entered into a long-term ammonia offtake agreement providing for the Company to supply up to 200,000 tons of ammonia per year to IPL’s Dyno Nobel, Inc. subsidiary. Under the terms of the asset purchase agreement, $425 million of the $1.675 billion purchase price, subject to adjustment, was allocated by the parties to the ammonia offtake agreement. The Company funded the balance of the purchase price with $1.223 billion in cash.
Capital Expenditures
Capital expenditures in the fourth quarter and full year 2023 were $188 million and $499 million, respectively. Management projects capital expenditures for full year 2024 will be in the range of $550 million.
Share Repurchase Program
The Company repurchased approximately 7.9 million shares for $580 million during 2023, which included the repurchase of 2.9 million shares for $225 million during the fourth quarter of 2023.
Quarterly Dividend
On January 31, 2024, the Board of Directors of CF Industries Holdings, Inc., declared a quarterly dividend of $0.50 per common share, representing a 25% increase compared to its prior quarterly dividend.
CHS Inc. Distribution
On January 31, 2024, the Board of Managers of CF Industries Nitrogen, LLC (CFN) approved a semi-annual distribution payment to CHS Inc. (CHS) of $144 million for the distribution period ended December 31, 2023. The distribution was paid on January 31, 2024. Distributions to CHS pertaining to 2023 distribution periods were approximately $348 million.
Nitrogen Market Outlook
Management believes that global nitrogen industry fundamentals point to a constructive global nitrogen supply-demand balance in the near-term and a tightening global nitrogen supply-demand balance in the medium-term.
In the near-term, the Company expects global nitrogen demand to remain resilient driven by continued strong agriculture applications and recovering industrial demand. Additionally, key producing regions continue to face challenging production economics due to the cost and availability of natural gas.
- North America: Management believes nitrogen channel inventories remain below average following a strong fall 2023 ammonia season, nitrogen imports to the region that are below the 3-year average, and reported production downtime in the region during the fourth quarter of 2023. The Company projects that 91 million acres of corn will be planted in the United States in 2024 and that North American farm profitability will improve in 2024 compared to 2023 as lower crop prices are offset by lower input costs. As a result, management expects nitrogen demand in North America for the spring 2024 application season to remain strong.
- Brazil: Imports of urea into Brazil totaled 7.3 million metric tons in 2023, an increase of approximately 3% year-over-year. Management expects Brazil to remain the largest importer of urea globally despite reported farmer caution regarding fertilizer purchases during this growing season as they evaluate the potential impact of poor weather conditions on the upcoming safrinha plantings.
- India: Management expects India to remain a significant importer of urea in 2024 even as domestic production increases with higher operating rates at its new nitrogen facilities. Imports of urea in 2024 are projected to be in a range of 6.0-7.0 million metric tons.
- Europe: Approximately 40% of ammonia and 25% of urea capacity were reported in shutdown/curtailment in Europe as of early January 2024 as high natural gas prices and lower global nitrogen values continue to challenge production economics in the region. Management believes that ammonia operating rates and overall domestic nitrogen product output in Europe will remain below historical averages over the long-term given the region’s status as the global marginal producer. As a result, the Company expects nitrogen imports of ammonia and upgraded products to the region to be higher than historical averages.
- China: Management expects urea export controls and inspections imposed by the Chinese government on domestic producers to remain in place in 2024 in order to prioritize fertilizer production for domestic consumption. The Company also anticipates that the Chinese government will allow windows during the year that will enable Chinese producers to export. Urea exports from China are projected to be approximately 4 million metric tons for 2024.
- Trinidad: Ammonia production in Trinidad in recent years has been approximately 1 million metric tons lower annually compared to the 2018-2020 average. Management expects ammonia production to remain below average due to anticipated higher natural gas prices and lower natural gas availability in the country for nitrogen producers.
- Russia: Exports of ammonia from Russia continue to remain lower compared to prior years due to geopolitical disruptions arising from Russia’s invasion of Ukraine and the resulting closure of the ammonia pipeline from Russia to the port of Odessa in Ukraine. Exports of other nitrogen products from Russia are at pre-war levels, with product moving to countries willing to purchase Russian fertilizer, including Brazil and the United States.
Over the near- and medium-terms, significant energy cost differentials between North American producers and high-cost producers in Europe and Asia are expected to persist. As a result, the Company believes the global nitrogen cost curve will remain supportive of strong margin opportunities for low-cost North American producers.
Longer-term, management expects the global nitrogen supply-demand balance to tighten as global nitrogen capacity growth over the next four years is not projected to keep pace with expected global nitrogen demand growth of approximately 1.5% per year. Global production is expected to be further constrained by continued challenges related to cost and availability of natural gas.
Strategic Initiatives Update
Donaldsonville Complex green ammonia project
CF Industries’ green ammonia project at its Donaldsonville Complex in Louisiana, which involves installing an electrolysis system to generate hydrogen from water that will then be supplied to existing ammonia plants to produce ammonia, continues to progress. The electrolysis system is mechanically complete and commissioning activities are underway. At full capacity, the project will enable the Company to produce approximately 20,000 tons of green ammonia per year. Green ammonia refers to ammonia produced with hydrogen sourced through an electrolysis process that produces no carbon emissions. This represents North America’s first commercial-scale green ammonia capacity.
Donaldsonville Complex carbon capture and sequestration project
Engineering activities for the construction of a dehydration and compression unit at CF Industries’ Donaldsonville Complex continue to advance, all major equipment for the facility has been procured, and fabrication of the CO2 compressors is proceeding. Once in service, the dehydration and compression unit will enable up to 2 million tons of captured process CO2 to be transported and permanently stored by ExxonMobil. Start-up for the project is scheduled for 2025, at which point CF Industries will be able to produce significant volumes of low-carbon ammonia.
Certified natural gas purchase
CF Industries has entered into an agreement for 2024 with bp for the purchase of 4.4 billion cubic feet of certified natural gas, which is double its purchase in 2023. The certificates purchased by CF Industries are issued by not-for-profit MiQ and certify that certain natural gas produced by bp has a 90% lower methane emissions intensity – the ratio of methane emissions to natural gas produced – than the industry average. Methane emissions throughout the natural gas supply chain are a significant contributor to the lifecycle carbon intensity of ammonia production and the second largest source of Scope 3 emissions for CF Industries.
|
___________________________________________________ |
|
|
(1) |
Certain items recognized during the full year and fourth quarter of 2023 impacted our financial results and their comparability to the prior year period. See the table accompanying this release for a summary of these items. |
|
(2) |
Financial results for full year and fourth quarter of 2023 include the impact of CF Industries’ acquisition of the Waggaman, Louisiana, ammonia production facility on December 1, 2023. |
|
(3) |
EBITDA is defined as net earnings attributable to common stockholders plus interest expense—net, income taxes and depreciation and amortization. See reconciliations of EBITDA and adjusted EBITDA to the most directly comparable GAAP measures in the tables accompanying this release. |
|
(4) |
Free cash flow is defined as net cash from operating activities less capital expenditures and distributions to noncontrolling interest. See reconciliation of free cash flow to the most directly comparable GAAP measure in the table accompanying this release. |
|
Consolidated Results |
|||||||||||||||
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|
Three months ended |
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Year ended |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
|
(dollars in millions, except per share and per MMBtu amounts) |
||||||||||||||
|
Net sales |
$ |
1,571 |
|
|
$ |
2,608 |
|
|
$ |
6,631 |
|
|
$ |
11,186 |
|
|
Cost of sales |
|
1,070 |
|
|
|
1,352 |
|
|
|
4,086 |
|
|
|
5,325 |
|
|
Gross margin |
$ |
501 |
|
|
$ |
1,256 |
|
|
$ |
2,545 |
|
|
$ |
5,861 |
|
|
Gross margin percentage |
|
31.9 |
% |
|
|
48.2 |
% |
|
|
38.4 |
% |
|
|
52.4 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Net earnings attributable to common stockholders |
$ |
274 |
|
|
$ |
860 |
|
|
$ |
1,525 |
|
|
$ |
3,346 |
|
|
Net earnings per diluted share |
$ |
1.44 |
|
|
$ |
4.35 |
|
|
$ |
7.87 |
|
|
$ |
16.38 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
EBITDA(1) |
$ |
556 |
|
|
$ |
1,246 |
|
|
$ |
2,707 |
|
|
$ |
5,542 |
|
|
Adjusted EBITDA(1) |
$ |
592 |
|
|
$ |
1,296 |
|
|
$ |
2,760 |
|
|
$ |
5,880 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Tons of product sold (000s) |
|
4,912 |
|
|
|
4,464 |
|
|
|
19,130 |
|
|
|
18,331 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Natural gas supplemental data (per MMBtu): |
|
|
|
|
|
|
|
||||||||
|
Natural gas costs in cost of sales(2) |
$ |
2.79 |
|
|
$ |
6.55 |
|
|
$ |
3.26 |
|
|
$ |
7.16 |
|
|
Realized derivatives loss in cost of sales(3) |
|
0.22 |
|
|
|
0.33 |
|
|
|
0.41 |
|
|
|
0.02 |
|
|
Cost of natural gas used for production in cost of sales |
$ |
3.01 |
|
|
$ |
6.88 |
|
|
$ |
3.67 |
|
|
$ |
7.18 |
|
|
Average daily market price of natural gas Henry Hub (Louisiana) |
$ |
2.74 |
|
|
$ |
5.55 |
|
|
$ |
2.53 |
|
|
$ |
6.38 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Unrealized net mark-to-market loss (gain) on natural gas derivatives |
$ |
26 |
|
|
$ |
80 |
|
|
$ |
(39 |
) |
|
$ |
41 |
|
|
Depreciation and amortization |
$ |
229 |
|
|
$ |
198 |
|
|
$ |
869 |
|
|
$ |
850 |
|
|
Capital expenditures |
$ |
188 |
|
|
$ |
134 |
|
|
$ |
499 |
|
|
$ |
453 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Production volume by product tons (000s): |
|
|
|
|
|
|
|
||||||||
|
Ammonia(4) |
|
2,525 |
|
|
|
2,441 |
|
|
|
9,496 |
|
|
|
9,807 |
|
|
Granular urea |
|
1,130 |
|
|
|
1,143 |
|
|
|
4,544 |
|
|
|
4,561 |
|
|
UAN (32%) |
|
1,840 |
|
|
|
1,827 |
|
|
|
6,852 |
|
|
|
6,706 |
|
|
AN |
|
416 |
|
|
|
355 |
|
|
|
1,520 |
|
|
|
1,517 |
|
|
_______________________________________________________________________________ |
|||||||||||||||
| (1) See reconciliations of EBITDA and adjusted EBITDA to the most directly comparable GAAP measures in the tables accompanying this release. | |||||||||||||||
| (2) Includes the cost of natural gas used for production and related transportation that is included in cost of sales during the period under the first-in, first-out inventory cost method. Excludes unrealized mark-to-market gains and losses on natural gas derivatives. | |||||||||||||||
| (3) Includes realized gains and losses on natural gas derivatives settled during the period. | |||||||||||||||
| (4) Gross ammonia production, including amounts subsequently upgraded on-site into granular urea, UAN, or AN. | |||||||||||||||
Ammonia Segment
CF Industries’ ammonia segment produces anhydrous ammonia (ammonia), which is the base product that the Company manufactures, containing 82 percent nitrogen and 18 percent hydrogen. The results of the ammonia segment consist of sales of ammonia to external customers for its nitrogen content as a fertilizer, in emissions control and in other industrial applications. In addition, the Company upgrades ammonia into other nitrogen products such as urea, UAN and AN.
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Three months ended |
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Year ended |
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|
2023(1) |
|
2022 |
|
2023(1) |
|
2022 |
||||||||
|
|
(dollars in millions, except per ton amounts) |
||||||||||||||
|
Net sales |
$ |
495 |
|
|
$ |
804 |
|
|
$ |
1,679 |
|
|
$ |
3,090 |
|
|
Cost of sales |
|
341 |
|
|
|
416 |
|
|
|
1,138 |
|
|
|
1,491 |
|
|
Gross margin |
$ |
154 |
|
|
$ |
388 |
|
|
$ |
541 |
|
|
$ |
1,599 |
|
|
Gross margin percentage |
|
31.1 |
% |
|
|
48.3 |
% |
|
|
32.2 |
% |
|
|
51.7 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Sales volume by product tons (000s) |
|
1,077 |
|
|
|
895 |
|
|
|
3,546 |
|
|
|
3,300 |
|
|
Sales volume by nutrient tons (000s)(2) |
|
883 |
|
|
|
734 |
|
|
|
2,908 |
|
|
|
2,707 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average selling price per product ton |
$ |
460 |
|
|
$ |
898 |
|
|
$ |
473 |
|
|
$ |
936 |
|
|
Average selling price per nutrient ton(2) |
|
561 |
|
|
|
1,095 |
|
|
|
577 |
|
|
|
1,141 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted gross margin(3): |
|
|
|
|
|
|
|
||||||||
|
Gross margin |
$ |
154 |
|
|
$ |
388 |
|
|
$ |
541 |
|
|
$ |
1,599 |
|
|
Depreciation and amortization |
|
54 |
|
|
|
47 |
|
|
|
171 |
|
|
|
166 |
|
|
Unrealized net mark-to-market loss (gain) on natural gas derivatives |
|
8 |
|
|
|
19 |
|
|
|
(11 |
) |
|
|
13 |
|
|
Adjusted gross margin |
$ |
216 |
|
|
$ |
454 |
|
|
$ |
701 |
|
|
$ |
1,778 |
|
|
Adjusted gross margin as a percent of net sales |
|
43.6 |
% |
|
|
56.5 |
% |
|
|
41.8 |
% |
|
|
57.5 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Gross margin per product ton |
$ |
143 |
|
|
$ |
434 |
|
|
$ |
153 |
|
|
$ |
485 |
|
|
Gross margin per nutrient ton(3) |
|
174 |
|
|
|
529 |
|
|
|
186 |
|
|
|
591 |
|
|
Adjusted gross margin per product ton |
|
201 |
|
|
|
507 |
|
|
|
198 |
|
|
|
539 |
|
|
Adjusted gross margin per nutrient ton(3) |
|
245 |
|
|
|
619 |
|
|
|
241 |
|
|
|
657 |
|
|
_______________________________________________________________________________ |
|||||||||||||||
|
(1) Financial results for full year and fourth quarter of 2023 include the impact of CF Industries’ acquisition of the Waggaman, Louisiana, ammonia production facility on December 1, 2023. |
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|
(2) Nutrient tons represent the tons of nitrogen within the product tons. |
|||||||||||||||
|
(3) Adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton are non-GAAP financial measures. Adjusted gross margin is defined as gross margin excluding depreciation and amortization and unrealized net mark-to-market (gain) loss on natural gas derivatives. A reconciliation of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to gross margin, the most directly comparable GAAP measure, is provided in the table above. See “Note Regarding Non-GAAP Financial Measures” in this release. |
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Comparison of 2023 to 2022:
- Ammonia sales volume for 2023 increased compared to 2022 due to greater supply availability from higher starting inventory.
- Ammonia average selling prices decreased for 2023 compared to 2022 as lower global energy costs reduced the global market clearing price required to meet global demand.
- Ammonia adjusted gross margin per ton decreased for 2023 compared to 2022 due primarily to lower average selling prices partially offset by lower realized natural gas costs.
Granular Urea Segment
CF Industries’ granular urea segment produces granular urea, which contains 46 percent nitrogen. Produced from ammonia and carbon dioxide, it has the highest nitrogen content of any of the Company’s solid nitrogen products.
|
|
Three months ended |
|
Year ended |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
|
(dollars in millions, except per ton amounts) |
||||||||||||||
|
Net sales |
$ |
392 |
|
|
$ |
605 |
|
|
$ |
1,823 |
|
|
$ |
2,892 |
|
|
Cost of sales |
|
235 |
|
|
|
304 |
|
|
|
1,010 |
|
|
|
1,328 |
|
|
Gross margin |
$ |
157 |
|
|
$ |
301 |
|
|
$ |
813 |
|
|
$ |
1,564 |
|
|
Gross margin percentage |
|
40.1 |
% |
|
|
49.8 |
% |
|
|
44.6 |
% |
|
|
54.1 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Sales volume by product tons (000s) |
|
1,038 |
|
|
|
1,033 |
|
|
|
4,570 |
|
|
|
4,572 |
|
|
Sales volume by nutrient tons (000s)(1) |
|
477 |
|
|
|
475 |
|
|
|
2,102 |
|
|
|
2,103 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average selling price per product ton |
$ |
378 |
|
|
$ |
586 |
|
|
$ |
399 |
|
|
$ |
633 |
|
|
Average selling price per nutrient ton(1) |
|
822 |
|
|
|
1,274 |
|
|
|
867 |
|
|
|
1,375 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted gross margin(2): |
|
|
|
|
|
|
|
||||||||
|
Gross margin |
$ |
157 |
|
|
$ |
301 |
|
|
$ |
813 |
|
|
$ |
1,564 |
|
|
Depreciation and amortization |
|
69 |
|
|
|
59 |
|
|
|
285 |
|
|
|
272 |
|
|
Unrealized net mark-to-market loss (gain) on natural gas derivatives |
|
7 |
|
|
|
17 |
|
|
|
(11 |
) |
|
|
13 |
|
|
Adjusted gross margin |
$ |
233 |
|
|
$ |
377 |
|
|
$ |
1,087 |
|
|
$ |
1,849 |
|
|
Adjusted gross margin as a percent of net sales |
|
59.4 |
% |
|
|
62.3 |
% |
|
|
59.6 |
% |
|
|
63.9 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Gross margin per product ton |
$ |
151 |
|
|
$ |
291 |
|
|
$ |
178 |
|
|
$ |
342 |
|
|
Gross margin per nutrient ton(1) |
|
329 |
|
|
|
634 |
|
|
|
387 |
|
|
|
744 |
|
|
Adjusted gross margin per product ton |
|
224 |
|
|
|
365 |
|
|
|
238 |
|
|
|
404 |
|
|
Adjusted gross margin per nutrient ton(1) |
|
488 |
|
|
|
794 |
|
|
|
517 |
|
|
|
879 |
|
|
_______________________________________________________________________________ |
|||||||||||||||
|
(1) Nutrient tons represent the tons of nitrogen within the product tons. |
|||||||||||||||
|
(2) Adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton are non-GAAP financial measures. Adjusted gross margin is defined as gross margin excluding depreciation and amortization and unrealized net mark-to-market (gain) loss on natural gas derivatives. A reconciliation of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to gross margin, the most directly comparable GAAP measure, is provided in the table above. See “Note Regarding Non-GAAP Financial Measures” in this release. |
|||||||||||||||
Contacts
Media
Chris Close
Senior Director, Corporate Communications
847-405-2542 – cclose@cfindustries.com
Investors
Darla Rivera
Director, Investor Relations
847-405-2045 – darla.rivera@cfindustries.com
