Terra Nitrogen Company, L.P. Reports Third Quarter 2012 Results and Announces Cash Distribution

  Terra Nitrogen Company, L.P. Reports Third Quarter 2012 Results and
  Announces Cash Distribution

Business Wire

DEERFIELD, Ill. -- November 05, 2012

Terra Nitrogen Company, L.P. (TNCLP) (NYSE: TNH) today reported net earnings
of $131.8 million on net sales of $181.1 million for the third quarter ended
September 30, 2012. This compares to net earnings of $128.4 million on net
sales of $203.3 million for the 2011 third quarter. Net income allocable to
common units was $73.9million ($4.00 per common unit) and $72.4 million
($3.91 per common unit) for the 2012 and 2011 third quarters, respectively.
Results for the third quarter of 2012 included an unrealized non-cash
mark-to-market gain on natural gas derivatives of $7.1 million compared to a
loss of $1.8 million in the third quarter of 2011.

For the first nine months of 2012, TNCLP reported net earnings of $410.8
million on net sales of $573.6 million. This compares to net earnings of
$378.2 million on net sales of $597.9 million for the first nine months of
2011. Net earnings allocable to common units was $230.3 million ($12.45 per
common unit) and $212.1 million ($11.46 per common unit) for the first nine
months of 2012 and 2011, respectively. Results for the first nine months of
2012 included a $9.6 million unrealized non-cash mark-to-market gain on
natural gas derivatives compared to a loss of $4.4 million for the first nine
months of 2011.

Analysis of Results

Net sales for the 2012 third quarter totaled $181.1 million, compared to sales
of $203.3million for the 2011 third quarter. This decrease was due to lower
ammonia and UAN sales volume and lower UAN average selling prices, which were
offset partially by higher ammonia average selling prices. Ammonia and UAN
sales volume declined as drought conditions impacted fertilizer application
rates and UAN volume was also impacted by higher imports during the third
quarter of 2012 as compared to the third quarter of 2011. The decrease in UAN
selling prices was due to increased industry-wide supply in the marketplace
compared to the same period last year. The increase in ammonia selling prices
for the third quarter of 2012 as compared to 2011 was due to tight North
American producer inventory and lower ammonia supply globally.

Comparing the 2012 to the 2011 third quarter, TNCLP’s:

  *Ammonia average selling prices were up 14% but sales volume was down 8%;
  *UAN average selling prices were down 8% and sales volume was down 5%; and
  *Realized natural gas costs per mmBtu decreased by 27 percent.

Cash Distribution

TNCLP today reported the declaration of a cash distribution for the quarter
ended September 30, 2012, of $4.12 per common limited partnership unit payable
November 29, 2012, to holders of record as of November 16, 2012.

This release serves as a qualified notice to nominees and brokers as provided
for under Treasury Regulation Section 1.1446-4(b). Please note that 100
percent of the Partnership's distributions to foreign investors are
attributable to income that effectively is connected with a United States
trade or business. Accordingly, the Partnership's distributions to foreign
investors are subject to federal income tax withholding at the highest
effective tax rate.

Cash distributions depend on TNCLP's earnings, which can be affected by
nitrogen fertilizer selling prices, natural gas costs, seasonal demand
factors, production levels and weather, as well as cash requirements for
working capital needs and capital expenditures. Cash distributions per limited
partnership unit also vary based on increasing amounts allocable to the
General Partner when cumulative distributions exceed targeted levels. With
this distribution, TNCLP cumulative distributions continue to exceed targeted
levels.

About TNCLP

Terra Nitrogen Company, L.P. is a leading manufacturer of nitrogen fertilizer
products.

TNCLP is the sole limited partner of Terra Nitrogen, Limited Partnership
(TNLP), owner of the Verdigris, Oklahoma, manufacturing facility and related
assets. Terra Nitrogen GP Inc., an indirect, wholly-owned subsidiary of CF
Industries Holdings, Inc., is the General Partner of TNCLP and exercises full
control over all of TNCLP’s business affairs.

Forward-Looking Statements

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 TNCLP’s
control, which could cause actual results to differ materially from such
statements. Important factors that could cause actual results to differ
materially from expectations include, among others:

• risks related to TNCLP’s reliance on one production facility;

• the cyclical nature of TNCLP’s business;

• the global commodity nature of TNCLP’s fertilizer products, the impact of
global supply and demand on TNCLP’s selling prices, and the intense global
competition in the consolidating markets in which the partnership operates;

• conditions in the U.S. agricultural industry;

• the volatility of natural gas prices in North America;

• reliance on third party transportation providers;

• weather conditions;

• potential liabilities and expenditures related to environmental and health
and safety laws and regulations;

• future regulatory restrictions and requirements related to greenhouse gas
emissions, climate change or other environmental requirements;

• CF Industries’ ability to implement a new enterprise resource planning
system and complete other system integration activities;

• TNCLP’s inability to predict seasonal demand for its products accurately;

• risks involving derivatives and the effectiveness of TNCLP’s risk
measurement and hedging activities;

• limited access to capital;

• acts of terrorism and regulations to combat terrorism;

• deterioration of global market and economic conditions;

• risks related to TNCLP’s dependence on and relationships with CF Industries;

• control of TNCLP’s General Partner by CF Industries;

• the conflicts of interest that may be faced by the executive officers of
TNCLP’s General Partner, who operate both TNCLP and CF Industries; and

• changes in TNCLP’s treatment as a partnership for U.S. or state income tax
purposes.

More detailed information about factors that may affect TNCLP’s performance
may be found in its filings with the Securities and Exchange Commission,
including its most recent periodic reports filed on Form 10-K and Form 10-Q,
which are available through CF Industries’ Web site. Forward-looking
statements are given only as of the date of this release and TNCLP disclaims
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.

   Terra Nitrogen Company, L.P. news announcements are also available on CF
                 Industries’ Web site, www.cfindustries.com.

                                               
TERRA NITROGEN COMPANY, L.P.
CONSOLIDATED BALANCE SHEETS
                                                            
                                               (unaudited)
                                               September 30      December 31,
                                               2012              2011
                                               (in millions, except for units)
ASSETS
Current assets:
  Cash and cash equivalents                    $      160.1      $     179.8
  Demand deposits with affiliates of the              -                8.6
  General Partner
  Accounts receivable, net                            0.6              0.6
  Inventories, net                                    13.3             17.3
  Prepaid expenses and other current assets          0.3             -
          Total current assets                        174.3            206.3
                                                                 
Property, plant and equipment, net                    104.7            87.8
Other assets                                         7.2             6.6
          Total assets                         $      286.2      $     300.7
                                                                 
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
  Accounts payable and accrued liabilities     $      21.1       $     18.4
  Due to affiliates of the General Partner            3.0              -
  Other current liabilities                          2.6             12.0
          Total current liabilities                  26.7            30.4
                                                                 
Noncurrent liabilities                                1.5              1.0
                                                                 
Partners' capital:
  Limited partners' interests, 18,501,576
  Common Units
          authorized, issued and outstanding          229.3            234.8
  Limited partners' interests, 184,072 Class B
  Common Units
          authorized, issued and outstanding          1.0              1.1
  General partner's interest                         27.7            33.4
          Total partners' capital                    258.0           269.3
          Total liabilities and partners'      $      286.2      $     300.7
          capital

                                                                   
TERRA NITROGEN COMPANY, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

                                        Three months ended   Nine months ended
                                        September 30,        September 30,
                                        2012       2011      2012      2011
                                        (in millions, except per unit amounts)
Net sales:
    Product sales to an affiliate of    $  180.2   $ 203.1   $ 572.1   $ 597.1
    the General Partner
    Other income from an affiliate of      0.1       0.1       0.5       0.5
    the General Partner
    Other income                          0.8      0.1      1.0      0.3
Total                                      181.1     203.3     573.6     597.9
                                                                       
Cost of goods sold:
    Materials, supplies and services       39.6      65.5      133.5     192.6
    Services provided by the affiliates   5.5      4.9      16.1     14.5
    of the General Partner
Gross margin                               136.0     132.9     424.0     390.8
Selling, general and administrative
services
    provided by the affiliates of the      3.8       3.7       11.3      10.7
    General Partner
Other general and administrative          0.4      0.8      1.9      1.9
expenses
                                                                       
Earnings from operations                  131.8    128.4    410.8    378.2
                                                                       
Net earnings                            $  131.8   $ 128.4   $ 410.8   $ 378.2
                                                                       
Allocation of net earnings:
General Partner                         $  56.6    $ 54.8    $ 176.5   $ 162.5
Class B Common Units                       1.3       1.2       4.0       3.6
Common Units                              73.9     72.4     230.3    212.1
Net earnings                            $  131.8   $ 128.4   $ 410.8   $ 378.2
                                                                       
Net earnings per common unit            $  4.00    $ 3.91    $ 12.45   $ 11.46

                                                                 
TERRA NITROGEN COMPANY, L.P.
SUMMARIZED OPERATING INFORMATION
(unaudited)
                         
                             2012                       2011
                             Sales          Average     Sales         Average
Three months ended           Volumes        Price       Volumes       Price
September 30,                (000 tons)    ($/ton)     (000 tons)   ($/ton)
Ammonia                          89         $  518          97        $  455
UAN^1                            497        $  270          525       $  295
                                                                      
                                                                      
                             2012                       2011
                             Sales          Average     Sales         Average
Nine months ended            Volumes        Unit        Volumes       Unit
                                            Price                     Price
September 30,                (000 tons)    ($/ton)     (000 tons)   ($/ton)
Ammonia                          273        $  504          301       $  453
UAN^1                            1,524      $  285          1,607     $  285
                                                                      
                                                                      
                             Three months ended         Nine months ended
                             September 30,              September 30,
                             2012          2011        2012         2011
Natural Gas                  $   3.28       $  4.51     $   3.24      $  4.33
Costs/MMBtu^2
                                                                      
                                                                      
^1 The nitrogen content of UAN is 32% by weight.
^2 Includes the cost of natural gas purchases and realized gains and losses on
natural gas derivatives.


Contact:

Terra Nitrogen Company, L.P.
Dan Swenson
Senior Director, Investor Relations & Corporate Communications
847/405-2515
dswenson@cfindustries.com