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CF Industries Holdings, Inc. Reports Record Third Quarter Earnings



  CF Industries Holdings, Inc. Reports Record Third Quarter Earnings

  Strong Execution and Low Natural Gas Prices Continue to Drive Performance

Business Wire

DEERFIELD, Ill. -- November 05, 2012

CF Industries Holdings, Inc. (NYSE: CF):

Third Quarter Highlights

  * Record third quarter net earnings attributable to common stockholders of
    $403.3 million, or $6.35 per diluted share, compared to earnings of $330.9
    million, or $4.73 per diluted share, in the third quarter of 2011.
  * Record third quarter earnings before interest, taxes, depreciation and
    amortization (EBITDA) of $729.1 million, compared to $640.8 million in the
    third quarter of 2011.

Year To Date Highlights

  * Record net earnings attributable to common stockholders of $1.4 billion,
    or $21.19 per diluted share, compared to earnings of $1.1 billion, or
    $15.41 per diluted share, in the prior year period.
  * Record EBITDA of $2.5 billion, compared to $2.1 billion in the prior year
    period.
  * Record net sales of $4.6 billion, compared to $4.4 billion in the prior
    year period.

Outlook

  * High anticipated 2013 corn planting, strong domestic fertilizer demand and
    favorable natural gas costs provide a positive operating environment for
    the remainder of 2012 and into 2013.
  * Decision to expand capacity reflects expectations for sustained favorable
    outlook for North American nitrogen production.

CF Industries Holdings, Inc. today reported third quarter 2012 net earnings
attributable to common stockholders of $403.3 million, or $6.35 per diluted
share, compared to earnings of $330.9 million, or $4.73 per diluted share, in
the third quarter of 2011. Third quarter results included a $39.8 million
non-cash pre-tax mark-to-market gain on natural gas derivatives and a $10.9
million gain related to a change in employee post-retirement benefits. These
items increased after-tax earnings per diluted share by $0.39 and $0.11,
respectively. Third quarter 2011 results included a $35.1 million impairment
charge due to the decision to shut down and remove the methanol plant at the
company’s Woodward, Oklahoma, nitrogen complex and a $14.1 million non-cash
mark-to-market loss on natural gas derivatives.

EBITDA was $729.1 million in the third quarter of 2012, an increase of 14
percent compared to $640.8 million in the third quarter of 2011.

Net sales in the third quarter were $1.36 billion, down three percent from
$1.40 billion in the same period last year primarily due to lower total
nitrogen volume and phosphate product prices, which were offset partially by
higher phosphate volume. Total sales volume decreased two percent to 3.5
million tons in the third quarter of 2012 largely due to lower urea sales
compared to the prior year period. Lower phosphate product prices resulted
from lower global demand relative to the same period last year, while the
phosphate volume increase resulted from strong demand in North America.

“As dealers moved to address tight inventories, we achieved exceptional
results during what is the normal seasonal low quarter of the year,” said
Stephen R. Wilson, chairman and chief executive officer, CF Industries
Holdings, Inc. “We generated a 52 percent gross margin, leading to record
third quarter EBITDA, net earnings and earnings per share. We also built a
strong order book for the fourth quarter, indicative of robust nitrogen demand
in anticipation of another year of high planted acres in 2013.”

Fertilizer markets were characterized by good demand in North America during
the quarter, as purchasing activity for summer fill programs was brisk and
fertilizer dealers and distributors sought to replenish inventories in
anticipation of a high level of fall field work to support large expected crop
plantings in 2013. However, purchasing activity was less than expected during
the quarter in international markets, in particular in Central and South
America.

Low water levels on the Mississippi River created logistical challenges for CF
Industries and other suppliers that rely on the inland waterway system.
However, the company was able to deal effectively with these challenges thanks
to its ability to utilize various transportation modes including pipeline,
rail and truck, and, as a result, was able to serve customers seamlessly.

Nine Month Results

For the first nine months of 2012, net earnings attributable to common
stockholders were a record $1.4 billion, or $21.19 per diluted share, compared
to $1.1 billion, or $15.41 per diluted share, in the same period of 2011.
EBITDA was $2.5 billion in the first nine months of 2012, compared to $2.1
billion in the same period of 2011. Nine month results for 2012 included a
$61.5 million non-cash, mark-to-market gain on natural gas derivatives, $15.2
million of accelerated amortization of capitalized financing fees related to
the termination of the company’s prior credit facility, and a $10.9 million
gain from a change in employee post-retirement benefits. These items
increased/(decreased) after-tax earnings per diluted share by $0.59, ($0.14)
and $0.10, respectively.

Net sales for the first nine months of 2012 were a record $4.6 billion, up six
percent from $4.4 billion in the same period of 2011. The increase resulted
from higher sales volumes for both the nitrogen and phosphate segments and
higher average price realizations for most nitrogen products. Nitrogen volume
was 9.7 million tons for the nine months ended September 30, 2012, a slight
increase from the prior year period. Phosphate volume of 1.5 million tons for
the nine months was three percent higher than in the prior year period due to
higher exports, offset partially by lower domestic shipments.

Prices for all of the primary nitrogen products except ammonium nitrate were
higher for the nine months ended September 30, 2012, compared to the prior
year period due to robust demand and tight downstream inventories. Phosphate
prices were lower for the nine months as compared to the prior year period due
to lower global demand.

Nitrogen Segment

Nitrogen net sales in the third quarter totaled $1.1 billion, essentially
unchanged from the 2011 third quarter, as higher prices were offset by lower
volumes. Gross margin was $638.6 million, up 16 percent from $552.1 million in
the 2011 third quarter. A 19 percent decline in cost of sales was due
primarily to lower realized natural gas costs compared to the prior year
period and a $39.8 million non-cash, mark-to-market gain on natural gas
derivatives compared to a $14.1 million loss in the prior year period. Gross
margin as a percent of sales was 58 percent, up from 49 percent in the
year-earlier quarter.

CF Industries sold 3.0 million tons of ammonia, granular urea, urea ammonium
nitrate solutions (UAN), ammonium nitrate (AN) and other nitrogen products
during the third quarter of 2012, down about three percent compared to the
volume sold in 2011.

In the third quarter of 2012, the company sold 416,000 tons of ammonia at an
average price of $622 per ton, compared to 403,000 tons at an average price of
$552 in the third quarter of 2011. The three percent increase in volume
resulted from strong winter wheat application and customers’ desire to secure
inventory given the tight ammonia supply in North America. The tight supply
resulted in a 13 percent increase in the average price. The company’s ammonia
plants in aggregate operated at approximately 99 percent of rated capacity
during the quarter.

CF Industries sold 559,000 tons of granular urea at an average price of $470
in the third quarter of 2012, compared to 701,000 tons at an average price of
$425 in the third quarter of 2011.

Granular urea volume decreased by 20 percent as third quarter 2011 shipments
were exceptionally strong due to higher beginning inventory, higher production
rates and higher export sales as compared to the third quarter 2012. Average
urea price realizations increased 11 percent year over year due to the pattern
of the company’s order flow.

The company sold 1.6 million tons of UAN in the third quarter of 2012, up
three percent from the third quarter of 2011. UAN average realized prices were
$296 per ton, compared to $319 in the year-ago quarter. Sales volume increased
as distributors and dealers replenished inventories in anticipation of strong
nitrogen demand to support the high corn plantings projected for next spring.
The average price decreased seven percent due to increased UAN imports into
the U.S. compared to the prior year period.

CF Industries sold 206,000 tons of AN at an average price of $261 per ton in
the third quarter of 2012, compared to 243,000 tons at an average price of
$269 per ton in the year-ago quarter. Sales volume was down due to lower
production compared to the prior year period.

CF Industries continued to benefit from abundant natural gas supply, as its
realized natural gas cost averaged $3.34 per MMBtu in the third quarter of
2012, compared to $4.45 during the third quarter of 2011. The year-over-year
decline in natural gas cost was due to high natural gas production versus a
year ago and the substantial amount of natural gas in storage.

Phosphate Segment

Phosphate net sales totaled $264.2 million, down eight percent from $285.8
million in the 2011 third quarter. Gross margin was $63.4 million, down 26
percent from $85.9 million in the 2011 third quarter. The decrease in gross
margin was due to lower prices. Gross margin as a percent of sales was 24
percent, down from 30 percent in the year-earlier quarter.

The company sold 517,000 tons of phosphate products in the third quarter of
2012 compared to 505,000 tons in the third quarter of 2011. During the third
quarter, DAP and MAP average selling prices were $507 and $521 per ton,
respectively, compared to $566 and $567 per ton, respectively, in the prior
year period. The two percent increase in volume was due to higher domestic
sales as customers sought to rebuild inventory in anticipation of strong
demand from high expected corn plantings next year. The increase in domestic
shipments was offset partially by lower exports, as sales to Central and South
America were below prior year levels. Average prices for phosphate declined
from the prior year period due to lower global demand.

CF Industries’ Plant City, Florida, Phosphate Complex operated at 98 percent
of capacity during the 2012 third quarter.

Environmental, Health & Safety Performance

The following company facilities achieved safety milestones during the third
quarter of 2012:

  * The Donaldsonville, Louisiana, Nitrogen Complex achieved 6 million hours
    (nearly 10 years) worked without a lost time accident;
  * The Verdigris, Oklahoma, Nitrogen Complex’s designation as a Voluntary
    Protection Program Star worksite was recertified by the U.S. Occupational
    Safety & Health Administration; and
  * The Medicine Hat, Alberta, Nitrogen Complex was recognized as a Silver
    Award Winner by Canadian Occupational Safety at the annual Canada’s Safest
    Employers Awards.

Liquidity and Financial Position

At September 30, 2012, CF Industries’ cash and cash equivalents totaled $2.2
billion. Long-term debt outstanding was $1.6 billion.

Dividend Payment

On October 19, 2012, CF Industries’ board of directors declared the regular
quarterly dividend of $0.40 per common share. The dividend will be paid on
November 29, 2012, to stockholders of record as of November 16, 2012.

Outlook

CF Industries is positioned to benefit from a number of factors that support
its growth and cash generation potential. Global population growth, a shift
toward higher protein diets, and continued use of crops as a source of
renewable fuels all are generating a need for more grain and higher use of
plant nutrients. Additionally, the increased production of North American
shale gas and the associated decline in natural gas prices have created a
sustainable cost advantage for the company’s nitrogen production.

After the devastating summer drought, weather patterns in the U.S. Corn Belt
have been favorable for fall harvest activity, and the corn harvest is
approximately four weeks ahead of normal and nearly complete. Recent rainfall
has lessened soil moisture concerns in some parts of the affected areas and
the company expects that farmers will take advantage of these conditions to
complete fall field preparation work in anticipation of significant acres to
be planted in 2013. Fall ammonia application began in earnest last week and,
weather permitting, a strong fall season is anticipated.

In the October 2012 World Agriculture Supply and Demand Estimates report, the
U.S. Department of Agriculture published its U.S. corn yield estimate for 2012
of 122 bushels per acre which, along with other changes made to the
department’s inventory and demand estimates, resulted in a projected
stocks-to-use ratio of 5.6 percent for the end of the 2012/2013 corn crop
marketing year, which would be the lowest level in 17 years. As a result, CF
Industries expects U.S. farmers to plant approximately 97 million acres of
corn in 2013.

The global ammonia market continues to be very tight, given supply reductions
from Trinidad and Russian ammonia producers, along with robust demand from
North American dealers and distributors building inventory in anticipation of
a high volume of fall and spring ammonia application by farmers.

High acreage expectations, especially for corn, should support strong urea and
UAN demand. The urea market is expected to benefit in the near term from the
closing of the low-tariff Chinese export season, gas constraints impacting a
number of off-shore producers and continued robust global demand. At the end
of the third quarter, the company had very low UAN inventory, with most of it
committed and in the process of being delivered to customers as part of the
company’s forward sales program.

With high planted acres in the United States, domestic demand for phosphate
fertilizers is expected to be robust in 2013, following the normally slow
winter months at the end of 2012.

“An exceptionally early harvest, recent rains across key growing regions, and
the anticipation of a large corn planting in 2013 should support strong
nitrogen sales volumes as we move into next year,” said Wilson. “Our
expectations for continued strength in agricultural fundamentals underpin our
commitment to spend $3.8 billion on brownfield nitrogen projects, as we
announced last week.”

Excluding spending on the new capacity expansion projects, the company
projects capital expenditures of approximately $350 – 400 million in 2012.

Conference Call

CF Industries will hold a conference call to discuss these third quarter and
year-to-date results at 10:00 a.m. ET on Tuesday, November 6, 2012. Investors
can access the call and find dial-in information on the Investor Relations
section of the company’s Web site at www.cfindustries.com.

About CF Industries Holdings, Inc.

CF Industries Holdings, Inc., headquartered in Deerfield, Illinois, through
its subsidiaries is a global leader in manufacturing and distribution of
nitrogen and phosphate products, serving both agricultural and industrial
customers. CF Industries operates world-class nitrogen manufacturing complexes
in the central United States and Canada; conducts phosphate mining and
manufacturing operations in Central Florida; and distributes plant nutrients
through a system of terminals, warehouses, and associated transportation
equipment located primarily in the Midwestern United States. The company also
owns 50 percent interests in GrowHow UK Limited, a plant nutrient manufacturer
in the United Kingdom; an ammonia facility in The Republic of Trinidad and
Tobago; and KEYTRADE AG, a global plant nutrient trading organization
headquartered near Zurich, Switzerland. CF Industries routinely posts investor
announcements and additional information on the company’s website at
www.cfindustries.com and encourages those interested in the company to check
there frequently.

Note Regarding Non-GAAP Financial Measures

The company reports its financial results in accordance with U.S. generally
accepted accounting principles (GAAP). Management believes that EBITDA, a
non-GAAP financial measure, provides additional meaningful information
regarding the company's performance, liquidity and financial strength.
Non-GAAP financial measures should be viewed in addition to, and not as an
alternative for, the company's reported results prepared in accordance with
GAAP. In addition, because not all companies use identical calculations,
EBITDA included in this financial results release may not be comparable to
similarly titled measures of other companies. Reconciliations of EBITDA to
GAAP are provided in tables accompanying this release.

Safe Harbor Statement

All statements in this communication, other than those relating to historical
facts, are “forward-looking statements.” These forward-looking statements are
not guarantees of future performance and are subject to a number of
assumptions, risks and uncertainties, many of which are beyond our control,
which could cause actual results to differ materially from such statements.
Important factors that could cause actual results to differ materially from
our expectations include, among others: the volatility of natural gas prices
in North America; the cyclical nature of our business and the agricultural
sector; the global commodity nature of our fertilizer products, the impact of
global supply and demand on our selling prices, and the intense global
competition in the markets in which we operate; conditions in the U.S.
agricultural industry; reliance on third party providers of transportation
services and equipment; our ability to implement a new enterprise resource
planning system and complete other system integration activities; weather
conditions; our ability to complete our recently announced production capacity
expansion projects on scheduled as planned and on budget or at all; risks
associated with other expansions of our business, including unanticipated
adverse consequences and the significant resources that could be required;
potential liabilities and expenditures related to environmental and health and
safety laws and regulations; our potential inability to obtain or maintain
required permits and governmental approvals or to meet financial assurance
requirements; future regulatory restrictions and requirements related to
greenhouse gas emissions and climate change; the seasonality of the fertilizer
business; the impact of changing market conditions on our forward sales
programs; risks involving derivatives and the effectiveness of our risk
measurement and hedging activities; the significant risks and hazards involved
in producing and handling our products against which we may not be fully
insured; our reliance on a limited number of key facilities; risks associated
with joint ventures; acts of terrorism and regulations to combat terrorism;
difficulties in securing the supply and delivery of raw materials we use and
increases in their costs; risks associated with international operations;
losses on our investments in securities; deterioration of global market and
economic conditions; our ability to manage our indebtedness; and loss of key
members of management and professional staff. More detailed information about
factors that may affect our performance may be found in our filings with the
Securities and Exchange Commission, including our most recent periodic reports
filed on Form 10-K and Form 10-Q, which are available in the Investor
Relations section of the CF Industries Web site. Forward-looking statements
are given only as of the date of this release and we disclaim any obligation
to update or revise the forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.

 
 
 
CF INDUSTRIES HOLDINGS, INC.
SELECTED FINANCIAL INFORMATION
RESULTS OF OPERATIONS
                                                                  
                                                                    
                         Three months ended          Nine months ended
                         September 30,               September 30,
                         2012          2011          2012          2011
                         (in millions, except per share amounts)
Net sales                $ 1,359.4     $ 1,403.8     $ 4,622.6     $ 4,379.5
Cost of sales              657.4         765.8         2,165.5       2,349.1  
Gross margin               702.0         638.0         2,457.1       2,030.4  
Selling, general and
administrative             36.5          30.5          111.6         93.2
expenses
Restructuring and          -             0.8           -             4.2
integration costs
Other operating - net      8.6           39.4          41.7          12.3     
Total other operating      45.1          70.7          153.3         109.7
costs and expenses
Equity in earnings of      10.2          15.0          39.5          40.7     
operating affiliates
Operating earnings         667.1         582.3         2,343.3       1,961.4
Interest expense           28.7          32.1          104.9         115.0
Interest income            (1.6    )     (0.3    )     (2.0    )     (1.5    )
Other non-operating -      (0.2    )     (0.1    )     (0.9    )     (0.6    )
net
Earnings before income
taxes and equity
in earnings of
non-operating              640.2         550.6         2,241.3       1,848.5
affiliates
Income tax provision       206.0         184.9         722.0         624.7
Equity in earnings of
non-operating
affiliates - net of        23.9          16.7          48.8          35.0     
taxes
Net earnings               458.1         382.4         1,568.1       1,258.8
Less: Net earnings
attributable to
noncontrolling             54.8          51.5          190.1         158.5
interest
Net earnings                                                        
attributable to
common stockholders      $ 403.3       $ 330.9       $ 1,378.0     $ 1,100.3  
                                                                    
Net earnings per share
attributable to
common stockholders
Basic                    $ 6.43        $ 4.77        $ 21.47       $ 15.55    
Diluted                  $ 6.35        $ 4.73        $ 21.19       $ 15.41    
                                                                    
Weighted average
common shares
outstanding
Basic                      62.8          69.4          64.2          70.7     
Diluted                    63.5          69.9          65.0          71.4     
                                                                              
                                                                              
                                                                              

CF INDUSTRIES HOLDINGS, INC.
SELECTED FINANCIAL INFORMATION
SUMMARIZED BALANCE SHEETS
                                                                 
                                                                   
                                                   September 30   December 31,
                                                   2012           2011
                                                   (in millions)
Assets
Current assets:
Cash and cash equivalents                          $  2,221.3     $   1,207.0
Accounts receivable                                   340.9           269.4
Inventories - net                                     310.0           304.2
Prepaid income taxes                                  118.1           -
Other                                                 24.9            18.0
Total current assets                                  3,015.2         1,798.6
Property, plant and equipment - net                   3,721.8         3,736.0
Asset retirement obligation funds                     147.6           145.4
Investments in and advances to unconsolidated         991.9           928.6
affiliates
Goodwill                                              2,064.5         2,064.5
Other assets                                          241.7           301.4
                                                                   
Total assets                                       $  10,182.7    $   8,974.5
                                                                   
Liabilities
Current liabilities:
Accounts payable and accrued expenses              $  393.3       $   327.7
Income taxes payable                                  37.3            128.5
Customer advances                                     617.6           257.2
Deferred income taxes                                 91.3            90.1
Distributions payable to noncontrolling interest      -               149.7
Other                                                 54.1            78.0
Total current liabilities                             1,193.6         1,031.2
Notes payable                                         5.0             4.8
Long-term debt                                        1,600.0         1,613.0
Deferred income taxes                                 1,019.1         956.8
Other noncurrent liabilities                          386.9           435.8
Equity
Stockholders' equity                                  5,457.3         4,547.0
Noncontrolling interest                               520.8           385.9
Total equity                                          5,978.1         4,932.9
                                                                   
Total liabilities and equity                       $  10,182.7    $   8,974.5
                                                                       
                                                                       
                                                                       

CF INDUSTRIES HOLDINGS, INC.
SELECTED FINANCIAL INFORMATION
STATEMENTS OF CASH FLOWS
                                                                 
                                                                   
                        Three months ended          Nine months ended
                        September 30,               September 30,
                        2012          2011          2012          2011
                        (in millions)
Operating Activities:
Net earnings            $ 458.1       $ 382.4       $ 1,568.1     $ 1,258.8
Adjustments to
reconcile net
earnings to net cash
provided by operating
activities:
Depreciation,
depletion and             99.7          101.6         318.7         314.9
amortization
Deferred income taxes     19.6          (9.4    )     32.8          16.4
Stock compensation        3.2           2.9           8.8           8.0
expense
Excess tax benefit
from stock-based          (14.6   )     (7.1    )     (30.0   )     (25.7    )
compensation
Unrealized loss           (39.8   )     14.1          (61.5   )     27.6
(gain) on derivatives
Loss (gain) on
disposal of property,     0.4           36.8          4.0           7.4
plant and equipment
and non-core assets
Undistributed loss
(earnings) of             (37.0   )     1.1           (59.0   )     (51.5    )
affiliates - net
Changes in:
Accounts receivable -     21.8          145.0         (67.8   )     (33.7    )
net
Margin deposits           (0.1    )     0.1           0.8           4.4
Inventories - net         (73.2   )     (71.2   )     3.2           (75.1    )
Accrued income taxes      (89.3   )     (55.6   )     (200.1  )     21.2
Accounts payable and      57.7          20.0          64.0          42.5
accrued expenses
Customer advances         496.3         477.2         360.1         446.8
Other - net               2.8           (4.9    )     12.2          (6.9     )
Net cash provided by      905.6         1,033.0       1,954.3       1,955.1   
operating activities
Investing Activities:
Additions to
property, plant and       (103.6  )     (63.7   )     (261.4  )     (169.2   )
equipment
Proceeds from the
sale of property,         4.4           3.6           11.6          51.3
plant and equipment
and non-core assets
Sales and maturities
of short-term and         15.0          12.3          31.0          36.9
auction rate
securities
Deposits to asset
retirement obligation     -             -             (2.2    )     -
funds
Other - net               -             -             -             31.2      
Net cash used in          (84.2   )     (47.8   )     (221.0  )     (49.8    )
investing activities
Financing Activities:
Payments of long-term     -             -             (13.0   )     (346.0   )
debt
Advances from
unconsolidated            40.5          -             40.5          -
affiliates
Financing fees            -             (1.5    )     -             (1.5     )
Purchase of treasury      -             (801.9  )     (500.0  )     (801.9   )
stock
Dividends paid on         (25.1   )     (28.3   )     (77.4   )     (42.6    )
common stock
Distributions to
noncontrolling            (19.5   )     (98.8   )     (212.8  )     (127.4   )
interests
Issuances of common
stock under employee      7.2           5.9           12.6          14.5
stock plans
Excess tax benefit
from stock-based          14.6          7.1           30.0          25.7      
compensation
Net cash provided by
(used in) financing       17.7          (917.5  )     (720.1  )     (1,279.2 )
activities
Effect of exchange
rate changes on cash      (0.8    )     2.8           1.1           2.3       
and cash equivalents
Increase in cash and      838.3         70.5          1,014.3       628.4
cash equivalents
Cash and cash
equivalents at            1,383.0       1,355.6       1,207.0       797.7     
beginning of period
Cash and cash
equivalents at end of   $ 2,221.3     $ 1,426.1     $ 2,221.3     $ 1,426.1   
period
                                                                              
                                                                              
                                                                              

CF INDUSTRIES HOLDINGS, INC.
SELECTED FINANCIAL INFORMATION
NITROGEN SEGMENT DATA
                                                                  
                         Three months ended          Nine months ended
                         September 30,               September 30,
                         2012          2011          2012          2011
                         (in millions, except as noted)
Net sales                $ 1,095.2     $ 1,118.0     $ 3,871.0     $ 3,549.0
Cost of sales              456.6         565.9         1,577.4       1,771.8  
Gross margin             $ 638.6       $ 552.1       $ 2,293.6     $ 1,777.2  
                                                                    
Gross margin               58.3    %     49.4    %     59.3    %     50.1    %
percentage
                                                                    
Tons of product sold       2,957         3,043         9,690         9,658
(in thousands)
                                                                    
Sales volumes by
product (tons in
thousands)
Ammonia                    416           403           1,881         1,794
Granular urea              559           701           2,011         2,032
UAN                        1,603         1,552         4,631         4,655
AN                         206           243           702           755
Other nitrogen             173           144           465           422
products
                                                                    
Average selling prices
(dollars per ton)
Ammonia                  $ 622         $ 552         $ 619         $ 563
Granular urea              470           425           484           396
UAN                        296           319           308           307
AN                         261           269           259           260
                                                                    
Cost of natural gas
(dollars per MMBtu)      $ 3.34        $ 4.45        $ 3.32        $ 4.36
^(1)
                                                                    
Average daily market
price of natural gas
Henry Hub (dollars per   $ 2.87        $ 4.13        $ 2.53        $ 4.22
MMBtu)
                                                                    
Depreciation and         $ 83.7        $ 80.2        $ 250.6       $ 237.1
amortization
Capital expenditures     $ 83.6        $ 48.9        $ 192.5       $ 117.0
                                                                    
Production volume by
product (tons in
thousands)
Ammonia ^(2)               1,761         1,769         5,315         5,453
Granular urea              622           663           1,983         1,946
UAN (32%)                  1,499         1,638         4,456         4,746
AN                         205           251           688           761
                                                                    

      
^(1)   Includes gas purchases and realized gains and losses on gas
       derivatives.
^(2)   Gross ammonia production including amounts subsequently upgraded
       on-site into urea and/or UAN.
        
        
        

CF INDUSTRIES HOLDINGS, INC.
SELECTED FINANCIAL INFORMATION
PHOSPHATE SEGMENT DATA
                                                                    
                                 Three months ended      Nine months ended
                                 September 30,           September 30,
                                 2012        2011        2012        2011
                                 (in millions, except as noted)
Net sales                        $ 264.2     $ 285.8     $ 751.6     $ 830.5
Cost of sales                      200.8       199.9       588.1       577.3  
Gross margin                     $ 63.4      $ 85.9      $ 163.5     $ 253.2  
                                                                      
Gross margin percentage            24.0  %     30.1  %     21.8  %     30.5  %
                                                                      
Tons of product sold (in           517         505         1,526       1,483
thousands)
                                                                      
Sales volumes by product (tons
in thousands)
DAP                                395         388         1,187       1,101
MAP                                122         117         339         382
                                                                      
Domestic vs. export sales
(tons in thousands)
Domestic                           360         265         887         957
Export                             157         240         639         526
                                                                      
Average selling prices
(dollars per ton)
DAP                              $ 507       $ 566       $ 491       $ 561
MAP                                521         567         496         558
                                                                      
Depreciation, depletion, and     $ 10.3      $ 14.0      $ 32.8      $ 35.8
amortization
Capital expenditures             $ 12.4      $ 10.3      $ 47.4      $ 39.5
                                                                      
Production volume by product
(tons in thousands)
                                                                      
Hardee Phosphate Rock Mine
Phosphate rock                     909         929         2,656       2,566
                                                                      
Plant City Phosphate
Fertilizer Complex
Sulfuric Acid                      672         687         1,908       1,969
Phosphoric acid as P[2]O[5]        259         262         739         756
^(1)
DAP/MAP                            515         519         1,479       1,498
                                                                      

      
^(1)   P[2]O[5] is the basic measure of the nutrient content in phosphate
       fertilizer products.
        
        
        

CF INDUSTRIES HOLDINGS, INC.
SELECTED FINANCIAL INFORMATION
NON-GAAP DISCLOSURE ITEMS
                                                                  
Reconciliation of net earnings to EBITDA:
                                                                    
                             Three months ended      Nine months ended
                             September 30,           September 30,
                             2012        2011        2012          2011
                             (in millions)
Net earnings attributable    $ 403.3     $ 330.9     $ 1,378.0     $ 1,100.3
to common stockholders
Interest expense (income)      27.1        31.8        102.9         113.5
- net
Income taxes                   205.8       185.3       721.9         625.6
Depreciation, depletion        99.7        101.6       318.7         314.9
and amortization
Less: other adjustments        (6.8  )     (8.8  )     (36.5   )     (39.2   )
                                                                    
EBITDA                       $ 729.1     $ 640.8     $ 2,485.0     $ 2,115.1  
                                                                              
                                                                              
                                                                              

EBITDA is defined as net earnings attributable to common stockholders plus
interest expense (income)-net, income taxes, and depreciation, depletion and
amortization. Other adjustments include the elimination of loan fee
amortization that is included in both interest and amortization, and the
portion of depreciation that is included in noncontrolling interest. We have
presented EBITDA because management uses the measure to track performance and
believes that it is frequently used by securities analysts, investors and
other interested parties in the evaluation of companies in our industry.

Net earnings and EBITDA for the three and nine months ended September 30, 2012
includes $39.8 million and $61.5 million, respectively, of mark-to-market
gains on derivatives and a $10.9 gain related to a change in employee
post-retirement benefits.

Net earnings and EBITDA for the three and nine months ended September 30, 2011
include $35.1 million impairment charge related to the permanent shutdown and
removal of the methanol plant at our Woodward, nitrogen complex, $0.8 million
and $4.2 million, respectively, of restructuring and integration costs and a
$14.1 million and $27.6 million, respectively, of mark-to-market losses on
derivatives.

Net earnings and EBITDA for the nine months ended September 30, 2011 include
$34.5 million of gains on the sale of non-core assets.

Net earnings, interest expense (income) - net, and depreciation, depletion and
amortization for the nine months ended September 30, 2012 includes $15.2
million of accelerated amortization of deferred fees related to the
termination of our 2010 Credit Agreement.

Net earnings, interest expense (income) - net, and depreciation, depletion and
amortization for the nine months ended September 30, 2011 include $19.9
million of accelerated amortization of deferred loan fees related to
repayments of certain Terra acquisition financing.

Contact:

CF Industries Holdings, Inc.
Dan Swenson
Senior Director, Investor Relations & Corporate Communications
847-405-2515 – dswenson@cfindustries.com
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