CF Industries Holdings, Inc. Reports Fourth Quarter Earnings

  CF Industries Holdings, Inc. Reports Fourth Quarter Earnings

                Strong Results In Difficult Fertilizer Market

         Year Defined by Strategic Focus and Balance Sheet Efficiency

Business Wire

DEERFIELD, Ill. -- February 18, 2014

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

Fourth Quarter Highlights

  *EBITDA^1 of $643.0 million during period of weak global fertilizer prices.
  *Net earnings attributable to common stockholders of $325.8 million, or
    $5.71 per diluted share.
  *Announced sale of phosphate business to the Mosaic Company for $1.4
    billion and separate long-term ammonia supply agreement with a defined
    margin.
  *Repurchased 1.5 million shares at an average price of approximately $223
    per share.
  *Increased dividend 150% to $1.00 per share per quarter.

Full Year Highlights

  *EBITDA of $2.7 billion, third highest in company history.
  *Net earnings attributable to common stockholders of $1.5 billion, or
    $24.74 per diluted share.
  *Repurchased 7.3 million shares, 12% of shares outstanding.
  *Inaugural issuance of $1.5 billion of investment grade debt.
  *Acquired outstanding one-third interest in Medicine Hat facility and 3
    Canadian distribution facilities.

Focus for 2014

  *Maintain commitment to safety and operational excellence.
  *Complete $1.4 billion sale of phosphate to Mosaic.
  *Raise up to $1.5 billion in new long-term debt.
  *Continue to execute capacity expansion projects which will increase
    nitrogen capacity 25% by 2016.
  *Return significant cash to shareholders via repurchases and dividends.

^1 Earnings Before Interest, Taxes, Depreciation and Amortization.

Overview

CF Industries Holdings, Inc. today reported fourth quarter 2013 EBITDA of
$643.0 million and net earnings attributable to common stockholders of $325.8
million, or $5.71 per diluted share, compared to EBITDA of $835.2 million and
net earnings attributable to common stockholders of $470.7 million, or $7.40
per diluted share, in the fourth quarter of 2012. Net sales in the fourth
quarter of 2013 were $1.3 billion, down 10 percent from $1.5 billion in the
same period last year.

Full year 2013 EBITDA was $2.7 billion and net earnings attributable to common
stockholders was $1.5 billion, or $24.74 per diluted share, compared to EBITDA
of $3.3 billion and net earnings attributable to common stockholders of $1.8
billion, or $28.59 per diluted share, for 2012.

For the full year 2013, nitrogen prices were down significantly compared to
2012 due to weaker demand in important agricultural regions and higher global
supply. Global nitrogen prices found a floor in October as represented by U.S.
Gulf urea prices of around $285 per ton. Prices moved in a narrow band until
rebounding in December to around $330 per ton. Increases in urea and urea
ammonium nitrate (UAN) prices coincided with the close of the low export
tariff season for Chinese urea producers and growing recognition of low
nitrogen industry inventories in several agricultural regions. Idled
production due to nitrogen prices being below the cash costs of producers in
areas such as Eastern Europe and production issues in several areas such as
Algeria, Egypt, Iran, Pakistan and Trinidad also contributed to a tightening
global supply and demand balance. While producers in Ukraine stand to benefit
from a reduction in the cost of natural gas from Russia, Chinese producers
utilizing anthracite coal continue to be the basis for world urea floor
prices.

Even with global urea prices during the second half of the year declining to
the estimated break-even economics of marginal producers, CF Industries was
able to generate a significant level of EBITDA thanks to the structural
advantage provided by low cost North American natural gas and the company’s
extensive network of plant and logistical assets.

“The earnings power of CF was demonstrated again this quarter as we generated
strong EBITDA during a period characterized by global urea prices declining to
floor levels,” said Tony Will, president and chief executive officer, CF
Industries Holdings, Inc. “Thanks to our outstanding execution we realized
favorable prices and strong profitability even during difficult market
conditions.”

CF Industries made progress during and subsequent to the quarter on several
key priorities oriented toward maximizing the value of the business. The
company announced strategic agreements with the Mosaic Company including an
agreement to sell the phosphate business for $1.4 billion and a long-term
ammonia supply contract. Subsequent to the quarter end, the company also
announced a long-term agreement with Orica to supply ammonium nitrate
products. Both of these contracts provide CF Industries with a defined margin
independent of gas costs, and increase confidence in the cash flow profile
associated with a portion of the company’s production capacity. The company
reached several milestones on its capacity expansion projects, which will
increase its annual nitrogen production capacity by 25% when the plants come
on-stream in 2015 and 2016. CF Industries increased its dividend to $1.00 per
share in October and repurchased 1.5 million shares during the quarter.

“Our overarching objective is to deliver superior total shareholder return. We
are focused on selectively investing in projects with return profiles
significantly above our cost of capital to grow the cash generation capability
represented in each share of CF while minimizing the overall cost of financing
the enterprise,” stated Mr. Will. “The accomplishments of 2013 represent
significant progress in that direction.”

2014 Outlook and Objectives

The long-term outlook for CF Industries is positive as a number of factors
support the company’s growth and cash generation potential. Global population
growth, higher protein diets and use of crops as a source of renewable fuels
all are driving demand for more grain. The limited ability to bring into
production additional arable land globally requires increased yields. The need
for increased yields drives demand for nitrogen fertilizer, the nutrient that
must be applied every year to promote plant growth.

Global nitrogen prices have improved significantly since November. Nitrogen
floor prices are expected to continue to be the cash cost of Chinese urea
producers. During the high-tariff season of November to June, their cash cost
is estimated to be roughly $340 to $350 per ton delivered to the U.S. Gulf,
compared to $285 to $300 per ton during the low-tariff season of July to
October. Upside to nitrogen prices has recently developed due to the close of
the Chinese low-tariff export season, low retailer and distributor inventory
levels in important agricultural regions including Europe and North America,
and emergence of normal seasonal demand.

North America is expected to have robust ammonia demand through the first half
of 2014, assuming normal weather conditions; however, prices may be
constrained due to high levels of producer inventory carried over from 2013.

Prices of urea and UAN in North America have increased and are expected to
remain firm through the spring application season in order to attract imports
required to fill 22 million nutrient tons of expected full year nitrogen
demand, which is well in excess of the 15 million nutrient tons of expected
North American production. Imports of urea and UAN have been lower than year
ago levels, while strong spring demand is expected in association with 92
million acres of corn anticipated to be planted.

During 2014, CF Industries is focused on making progress on several key
strategic objectives. The company expects after-tax proceeds of roughly $1.0
billion following the close of the sale of the phosphate business to the
Mosaic Company in the first half of 2014. The company also intends to raise up
to $1.5 billion of additional long-term debt in early 2014. These new
borrowings, in addition to cash from operations and proceeds from the sale of
the phosphate business, will fund the company’s capital expenditures, working
capital, dividends and additional share repurchases. The company currently has
$1.4 billion remaining on its existing $3.0 billion share buyback
authorization.

For 2014, the company expects total capital expenditures of approximately $2.5
billion. This consists of $2.0 billion for the capacity expansion projects and
$0.5 billion of sustaining and other capital expenditures. These amounts
exclude the phosphate business.

Attractive North American natural gas costs, in comparison to natural gas and
coal costs in other regions, continue to support CF Industries’ long-term cash
generation prospects. Despite record storage withdrawals across North America,
the company’s gas costs have remained within its long-term expected range of
$3 to $5 per MMBtu. CF Industries’ gas hedging program is focused on limiting
risks to the company’s earnings profile from short-term price fluctuation. The
company has 75% of its first quarter NYMEX exposure hedged at an average price
of $3.66 and 50% of its second quarter NYMEX exposure hedged at an average
price of $3.55. The company continues to have exposure to floating basis
differentials for gas at some of its production points.

“With a structural cost advantage, we are confident in the sustainability of
our cash flows,” said Mr. Will. “We are executing a compelling business plan
and are focused on maximizing value for CF shareholders.”

Fourth Quarter Consolidated Results

                             Three months ended December 31
(in millions, except per       2013       2012       Change      % Change
share amounts)
Total net sales                $ 1,326.3   $ 1,481.4   $ (155.1 )   (10   )  %
Total net sales, as adjusted     1,326.3     1,675.2     (348.9 )   (21   )
^(1)
                                                                             
EBITDA                           643.0       835.2       (192.2 )   (23   )
                                                                             
Net earnings attributable to     325.8       470.7       (144.9 )   (31   )
common stockholders
                                                                             
Diluted earnings per share       5.71        7.40        (1.69  )   (23   )

Comparison of 2013 to 2012 periods:

  *For a description of revenue and earnings performance, please refer to the
    business segment results below.
  *Fourth quarter 2013 results included $54.0 million of non-cash pre-tax
    mark-to-market gains on natural gas derivatives and $6.5 million of
    pre-tax gains on foreign currency derivatives. These items increased
    after-tax earnings per diluted share by $0.60 and $0.07, respectively.
  *Fourth quarter 2012 results included $13.1 million of non-cash pre-tax
    mark-to-market gains on natural gas and foreign currency derivatives,
    which increased after-tax earnings per diluted share by $0.13.
  *Share repurchases during 2013 increased after-tax earnings per diluted
    share by $0.57, reflecting a 10 percent decrease in weighted average
    diluted shares outstanding for the fourth quarter.

Nitrogen Segment Results

                        Three months ended December 31
(in millions, except as    2013         2012         Change      % Change
noted)
Net sales                  $ 1,178.7     $ 1,225.6     $ (46.9  )   (4    )  %
  Net sales, as adjusted     1,178.7       1,419.4       (240.7 )   (17   )
  ^(1)
                                                                             
Gross margin                 592.1         620.0         (27.9  )   (5    )
Gross margin percentage      50.2    %     50.6    %   (0.4) pts
                                                                             
  Gross margin, as           592.1         813.8         (221.7 )   (27   )
  adjusted ^(1)
  Gross margin
  percentage, as             50.2    %     57.3    %   (7) pts
  adjusted ^(1)
                                                                             
Cost of natural gas          3.74          3.61          0.13       4
(dollars per MMBtu)*
  * Includes gas purchases and realized gains and losses on gas derivatives.

Comparison of 2013 to 2012 periods:

  *Net sales as reported and as adjusted decreased due to a decline in
    overall average selling prices compared to the prior year period,
    partially offset by an increase in tons of product sold.
  *Gross margin as reported and as adjusted decreased due to lower revenues
    and an increase in natural gas costs. Cost of sales included a
    mark-to-market unrealized gain on hedges of $54.0 million and $5.0 million
    in the fourth quarter of 2013 and 2012, respectively.
  *The company’s ammonia plants in aggregate operated at approximately 107
    percent of rated capacity during the fourth quarter of 2013.

                                Three months ended December 31
Sales volume (tons in thousands)   2013   2012   Change  % Change
Ammonia                            859     905     (46  )   (5   )   %
Urea                               611     582     29       5
UAN                                1,680   1,500   180      12
AN                                 217     137     80       58

Comparison of 2013 to 2012 periods:

  *Ammonia volume decreased primarily due to a shortened application season
    caused by a late harvest and adverse weather in 2013 as compared to an
    elongated application season associated with the early harvest in 2012.
    The decrease in domestic sales volume was partially offset by exports.
  *Granular urea sales volume increased due to export sales while North
    American volume was essentially unchanged.
  *UAN sales volume increased due to export sales, higher shipments on
    customer advance orders, and higher production volumes as compared to the
    prior year when UAN rates were reduced in favor of net ammonia production.
  *Ammonium nitrate (AN) sales volume increased as the company took advantage
    of export and industrial product sales opportunities.

                                       Three months ended December 31
Average selling price (dollars per       2013   2012   Change    % Change
ton)
Ammonia                                  $ 512   $ 567   $ (55  )   (10   )  %
Ammonia, as adjusted ^(1)                  512     680     (168 )   (25   )
Urea                                       335     291     44       15
Urea, as adjusted ^(1)                     335     449     (114 )   (25   )
UAN                                        266     307     (41  )   (13   )
AN                                         225     300     (75  )   (25   )

Comparison of 2013 to 2012 periods:

  *Ammonia as reported and as adjusted average selling prices decreased due
    to higher supply available from industry-wide inventory carry-over and
    lower fall demand due to a shortened application season as compared to the
    prior year period.
  *Granular urea average price per ton increased compared to the 2012 as
    reported average price due to CFL’s use of cost-plus based pricing for
    sales to the minority interest partners and the effect in the quarter of
    an adjustment to reflect cost-plus based pricing retroactive to the
    beginning of 2012. Urea average price per ton in 2013 decreased compared
    to the 2012 price as adjusted due to high global urea supply, especially
    from Chinese producers.
  *UAN average selling price decreased due to a weaker urea pricing
    environment.
  *AN average selling price declined in conjunction with price declines in
    other internationally traded nitrogen products.

Phosphate Segment

                            Three months ended December 31
(in millions, except as        2013       2012       Change      % Change
noted)
Net sales                      $ 147.6     $ 255.8     $ (108.2 )   (42   )  %
                                                                             
Gross margin                     1.7         36.2        (34.5  )   (95   )
Gross margin percentage          1.2   %     14.2  %   (13) pts
                                                                             
Domestic vs. export (tons in
thousands)
Domestic                         227         367         (140   )   (38   )  %
Export                           188         142         46         32
                                                                             
Average selling price
(dollars per ton)
DAP                            $ 348       $ 499       $ (151   )   (30   )  %
MAP                              382         527         (145   )   (28   )

Comparison of 2013 to 2012 periods:

  *Phosphate segment net sales declined due to lower average selling prices
    resulting from lower global demand, notably from India, and lower sales
    volume.
  *Phosphate segment gross margin declined due to lower revenues, which was
    partially offset by lower ammonia and sulfur costs.
  *Depreciation, depletion and amortization expenses ceased as of the end of
    October 2013 and are no longer being recognized. This is due to the
    announced sale of the phosphate business which resulted in the assets and
    liabilities being classified as held for sale on the consolidated balance
    sheet at December 31, 2013.
  *CF Industries’ Plant City, Florida, Phosphate Complex operated at 77
    percent of capacity during the 2013 fourth quarter.

Full Year Consolidated Results

                             Twelve months ended December 31
(in millions, except per       2013       2012       Change      % Change
share amounts)
Total net sales                $ 5,474.7   $ 6,104.0   $ (629.3 )   (10   )  %
Total net sales, as adjusted     5,474.7     6,239.9     (765.2 )   (12   )
^(1)
                                                                             
EBITDA                           2,684.9     3,320.2     (635.3 )   (19   )
                                                                             
Net earnings attributable to     1,464.6     1,848.7     (384.1 )   (21   )
common stockholders
                                                                             
Diluted earnings per share       24.74       28.59       (3.85  )   (13   )

Comparison of 2013 to 2012:

  *Full year 2013 total net sales and EBITDA declined from the prior year
    primarily due to lower average selling prices for both nitrogen and
    phosphate products, and lower phosphate sales volume.
  *Full year 2013 results included $52.9 million of non-cash pre-tax
    mark-to-market gains on natural gas derivatives, $20.8 million of pre-tax
    gains on foreign currency derivatives, and a $20.6 million after-tax net
    benefit from the recognition of a portion of the net operating loss (NOL)
    carry-forwards from periods prior to the company’s initial public offering
    (IPO) allowed under a settlement agreement with the IRS. These items
    increased after-tax earnings per diluted share by $0.57, $0.22, and $0.35,
    respectively.
  *Full year results for 2012 included a $74.6 million non-cash, pre-tax
    mark-to-market gain on natural gas and foreign currency derivatives, $15.2
    million of pre-tax accelerated amortization of capitalized financing fees
    related to the termination of the company’s prior credit facility, and a
    $10.9 million pre-tax gain from a change in employee post-retirement
    benefits. These items increased/(decreased) after-tax earnings per diluted
    share by $0.72, ($0.15) and $0.10, respectively.
  *Share repurchases during 2013 increased after-tax earnings per diluted
    share by $1.65, reflecting a 7 percent decrease in weighted average
    diluted shares outstanding for full year 2013.

Environmental, Health & Safety Performance

As of December 31, 2013, CF Industries’ 12-month rolling average recordable
incidence rate was 1.33, an all-time low for the company. “I thank our
employees for their efforts to ensure safety in our operations. Together, we
will continue working to reduce our incident rate with a company-wide focus on
safety and environmental responsibility,” said Mr. Will.

Balance Sheet and Cash Flow Items

As of December 31, 2013, CF Industries’ cash and cash equivalents totaled $1.7
billion, while restricted cash for capacity expansion projects was $154.0
million. Total long-term debt was $3.1 billion.

During the fourth quarter the company repurchased 1.5 million shares for
$337.8 million at an average share price of $223.21. For 2013, the company
repurchased a total of 7.3 million shares, or 12% of the outstanding share
count, for a total of $1.4 billion. Subsequent to the end of the quarter, the
company repurchased 0.7 million shares through February 14, 2014 at an average
price of $230.22, or a total of $162.2 million.

Total capital expenditures during the quarter were $190.9 million, of which
$129.0 million related to the capacity expansion program. The program is
progressing in-line with time and budget expectations as civil construction
work is ongoing at Donaldsonville and is well underway at Port Neal. The
company entered into general construction contracts for the urea and UAN
plants at Donaldsonville and the ammonia and urea plants at Port Neal. The
company also entered into lump sum, turnkey construction contracts for urea
warehouses and ammonia storage tanks at both locations.

For the full year, total cash spent on capital expenditures for the expansion
projects was $356.1 million. In addition, $203.6 million was invested in the
expansion project and not paid at December 31, 2013, but recognized in the
consolidated balance sheet in the lines labeled accounts payable and accrued
expenses and other non-current liabilities.

Dividend Payment

On January 31, 2014, CF Industries’ Board of Directors declared the regular
quarterly dividend of $1.00 per common share. The dividend will be paid on
February 28, 2014, to stockholders of record as of February 14, 2014.

      The comparability of sales and gross margin between 2013 and 2012 was
      impacted by a modification in 2012 to the selling price calculation
      methodology used for products sold by Canadian Fertilizers Limited (CFL)
      to the prior non-controlling interest holder. We acquired the
      non-controlling interest in May 2013 and now own 100% of CFL. This
(1)  selling price modification impacts the comparability of certain
      financial results between the two periods, but does not impact the
      comparability of the company’s net earnings attributable to common
      stockholders or EBITDA. See explanation under “CF Industries Holdings,
      Inc.—Selected Financial Information—Non-GAAP Disclosure Items—CFL
      Selling Price Modification” in the tables accompanying this release.

Conference Call

CF Industries will hold a conference call to discuss these fourth quarter and
full year results at 10:00 a.m. ET on Wednesday, February 19, 2014. Investors
can access the call and find dial-in information on the Investor Relations
section of the company’s website 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.
Management believes that the presentation of net sales, nitrogen segment net
sales, gross margin, nitrogen segment gross margin, gross margin percentage,
nitrogen segment gross margin percentage and average selling prices per ton of
ammonia and urea on an as adjusted basis, and percentages changes in these
adjusted items, as described under “CF Industries Holdings, Inc. Selected
Financial Information Non-GAAP Disclosure Items—CFL Selling Price
Modifications”, provides investors with additional meaningful information to
facilitate period-to-period comparisons of the company’s underlying operating
performance. The adjusted items and percentage changes in those adjusted items
are provided only for the purpose of facilitating comparisons between the
company’s 2013 and 2012 full-year and fourth-quarter operating performance and
do not purport to represent what the actual consolidated results of operations
of the company would have been, nor are they necessarily indicative of future
consolidated results of operations. 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 and the adjusted items and
percentage changes in adjusted items included in this release may not be
comparable to similarly titled measures of other companies. Reconciliations of
EBITDA and the adjusted items to GAAP are provided in the tables accompanying
this release under “CF Industries Holdings, Inc.—Selected Financial
Information—Non-GAAP Disclosure Items.”

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.
These statements include, but are not limited to, statements about the
benefits, expected timing of closing and other aspects of the proposed
transactions with Mosaic; statements about future strategic plans; and
statements about future financial and operating results. Important factors
that could cause actual results to differ materially from our expectations
include, among others: risks and uncertainties arising from the possibility
that the proposed transactions with Mosaic may be delayed or may not occur,
including delays arising from any ability to obtain governmental approvals of
the transactions; the risk that other conditions to the closing of the
proposed transactions with Mosaic may not be satisfied; difficulties with
realization of the benefits of the proposed transactions with Mosaic; the risk
that disruptions from the proposed transactions with Mosaic will harm
relationships with customers, employees and suppliers; 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 from other fertilizer producers; conditions in
the U.S. agricultural industry; reliance on third party providers of
transportation services and equipment; risks associated with cyber security;
weather conditions; our ability to complete our production capacity expansion
projects on schedule 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 from
governmental authorities; future regulatory restrictions and requirements
related to greenhouse gas emissions; 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, increases
in their costs or delays or interruptions in their delivery; 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
website. 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          Twelve months ended
                         December 31,                December 31,
                         2013          2012          2013          2012
                         (in millions, except per share amounts)
Net sales                $ 1,326.3     $ 1,481.4     $ 5,474.7     $ 6,104.0
Cost of sales             732.5       825.2       2,954.5     2,990.7 
Gross margin              593.8       656.2       2,520.2     3,113.3 
Selling, general and
administrative             45.0          40.2          166.0         151.8
expenses
Other operating - net     (6.6    )    7.4         (15.8   )    49.1    
Total other operating      38.4          47.6          150.2         200.9
costs and expenses
Equity in earnings of     9.4         7.5         41.7        47.0    
operating affiliates
Operating earnings         564.8         616.1         2,411.7       2,959.4
Interest expense           39.8          30.4          152.2         135.3
Interest income            (0.6    )     (2.3    )     (4.7    )     (4.3    )
Other non-operating -     0.4         (0.2    )    54.5        (1.1    )
net
Earnings before income
taxes and equity in
earnings of                525.2         588.2         2,209.7       2,829.5
non-operating
affiliates
Income tax provision       187.2         242.2         686.5         964.2
Equity in earnings of
non-operating             3.4         9.3         9.6         58.1    
affiliates - net of
taxes
Net earnings               341.4         355.3         1,532.8       1,923.4
Less: Net earnings
(loss) attributable to     15.6          (115.4  )     68.2          74.7
noncontrolling
interest
Net earnings
attributable to common   $ 325.8      $ 470.7      $ 1,464.6    $ 1,848.7 
stockholders
                                                                   
Net earnings per share
attributable to common
stockholders
Basic                    $ 5.73       $ 7.48       $ 24.87      $ 28.94   
Diluted                  $ 5.71       $ 7.40       $ 24.74      $ 28.59   
                                                                   
Weighted average
common shares
outstanding
Basic                     56.9        62.9        58.9        63.9    
Diluted                   57.1        63.6        59.2        64.7    
                                                                             
                                                                             
                                                                             

CF INDUSTRIES HOLDINGS, INC.
SELECTED FINANCIAL INFORMATION
SUMMARIZED BALANCE SHEETS
                                                             
                                                   December 31,   December 31,
                                                   2013           2012
                                                   (in millions)
Assets
Current assets:
  Cash and cash equivalents                        $  1,710.8     $  2,274.9
  Restricted cash                                     154.0          -
  Accounts receivable - net                           230.9          217.4
  Inventories - net                                   274.3          277.9
  Deferred income taxes                               60.0           9.5
  Prepaid income taxes                                33.4           -
  Assets held for sale                                74.3           -
  Other                                              92.4          27.9
               Total current assets                   2,630.1        2,807.6
Property, plant and equipment - net                   4,101.7        3,900.5
Asset retirement obligation funds                     -              200.8
Investments in and advances to affiliates             926.0          935.6
Goodwill                                              2,095.8        2,064.5
Noncurrent assets held for sale                       679.0          -
Other assets                                         245.5         257.9
                                                                  
Total assets                                       $  10,678.1    $  10,166.9
                                                                  
Liabilities
  Accounts payable and accrued expenses            $  564.1       $  366.5
  Income taxes payable                                73.3           187.1
  Customer advances                                   120.6          380.7
  Notes payable                                       -              5.0
  Distributions payable to noncontrolling             -              5.3
  interest
  Liabilities held for sale                           26.8           -
  Other                                              43.5          5.6
               Total current liabilities              828.3          950.2
Long-term debt                                        3,098.1        1,600.0
Deferred income taxes                                 833.2          938.8
Noncurrent liabilities held for sale                  154.5          -
Other noncurrent liabilities                          325.6          395.7
Equity
  Stockholders' equity                                5,076.1        5,902.2
  Noncontrolling interest                            362.3         380.0
               Total equity                          5,438.4       6,282.2
                                                                  
Total liabilities and equity                       $  10,678.1    $  10,166.9
                                                                     
                                                                     
                                                                     

CF INDUSTRIES HOLDINGS, INC.
SELECTED FINANCIAL INFORMATION
STATEMENTS OF CASH FLOWS
                                                              
                                                                   
                        Three months ended          Twelve months ended
                        December 31,                December 31,
                        2013          2012          2013           2012
                        (in millions)
Operating Activities:
Net earnings            $ 341.4       $ 355.3       $ 1,532.8      $ 1,923.4
Adjustments to
reconcile net
earnings to net cash
provided by operating
activities:
Depreciation,
depletion and             96.8          101.1         410.6          419.8
amortization
Deferred income taxes     (70.1   )     (171.2  )     (34.3    )     (138.4  )
Stock compensation        3.1           3.1           12.6           11.9
expense
Excess tax benefit
from stock-based          (2.1    )     (6.1    )     (13.5    )     (36.1   )
compensation
Unrealized (gain)         (55.3   )     (17.3   )     (59.3    )     (78.8   )
loss on derivatives
Loss on disposal of
property, plant and       0.6           1.5           5.6            5.5
equipment and
non-core assets
Undistributed loss
(earnings) of             1.6           44.1          (11.3    )     (14.9   )
affiliates - net
Changes in:
Accounts receivable -     (44.2   )     121.0         0.4            53.2
net
Inventories - net         6.0           31.6          (80.3    )     34.8
Accrued income taxes      79.3          258.8         (153.4   )     58.7
Accounts payable and      (19.9   )     (38.5   )     49.5           25.5
accrued expenses
Customer advances         (312.6  )     (236.8  )     (260.1   )     123.3
Other - net              12.9        (25.3   )    67.5         (12.3   )
Net cash provided by     37.5        421.3       1,466.8      2,375.6 
operating activities
Investing Activities:
Additions to
property, plant and       (190.9  )     (262.1  )     (823.8   )     (523.5  )
equipment
Proceeds from the
sale of property,         1.5           5.4           12.6           17.0
plant and equipment
and non-core assets
Sales and maturities
of short-term and         6.9           17.4          13.5           48.4
auction rate
securities
Canadian terminal         (72.5   )     -             (72.5    )     -
acquisition
Deposits to               (42.6   )     -             (154.0   )     -
restricted cash funds
Deposits to asset
retirement obligation     (2.9    )     (53.2   )     (2.9     )     (55.4   )
funds
Other - net              12.1        -           7.8          -       
Net cash used in         (288.4  )    (292.5  )    (1,019.3 )    (513.5  )
investing activities
Financing Activities:
Proceeds from             -             -             1,498.0        -
long-term borrowings
Financing fees            -             -             (14.5    )     -
Purchase of treasury      (297.6  )     -             (1,409.1 )     (500.0  )
stock
Payments of long-term     -             -             -              (13.0   )
debt
Advances from
unconsolidated            -             -             -              40.5
affiliates
Repayments of
advances from             -             (40.5   )     -              (40.5   )
unconsolidated
affiliates
Acquisitions of
noncontrolling            -             -             (918.7   )     -
interests in CFL
Dividends paid on         (57.2   )     (25.3   )     (129.1   )     (102.7  )
common stock
Distributions to
noncontrolling            (9.3    )     (19.0   )     (73.7    )     (231.8  )
interests
Issuances of common
stock under employee      4.0           2.0           10.3           14.6
stock plans
Excess tax benefit
from stock-based          2.1           6.1           13.5           36.1
compensation
Other                    43.0        -           43.0         -       
Net cash used in         (315.0  )    (76.7   )    (980.3   )    (796.8  )
financing activities
Effect of exchange
rate changes on cash     (9.5    )    1.5         (31.3    )    2.6     
and cash equivalents
(Decrease) increase
in cash and cash          (575.4  )     53.6          (564.1   )     1,067.9
equivalents
Cash and cash
equivalents at           2,286.2     2,221.3     2,274.9      1,207.0 
beginning of period
Cash and cash
equivalents at end of   $ 1,710.8    $ 2,274.9    $ 1,710.8     $ 2,274.9 
period
                                                                             
                                                                             
                                                                             

CF INDUSTRIES HOLDINGS, INC.
SELECTED FINANCIAL INFORMATION
NITROGEN SEGMENT DATA
                                                              
                         Three months ended          Twelve months ended
                         December 31,                December 31,
                         2013          2012          2013          2012
                         (in millions, except as noted)
Net sales                $ 1,178.7     $ 1,225.6     $ 4,677.8     $ 5,096.6
Cost of sales             586.6       605.6       2,232.5     2,183.0 
Gross margin             $ 592.1      $ 620.0      $ 2,445.3    $ 2,913.6 
                                                                   
Gross margin               50.2    %     50.6    %     52.3    %     57.2    %
percentage
                                                                   
Tons of product sold       3,560         3,279         12,945        12,969
(in thousands)
                                                                   
Sales volumes by
product (tons in
thousands)
Ammonia                    859           905           2,427         2,786
Granular urea              611           582           2,506         2,593
UAN                        1,680         1,500         6,383         6,131
AN                         217           137           859           839
Other nitrogen             193           155           770           620
products
                                                                   
Average selling prices
(dollars per ton)
Ammonia                  $ 512         $ 567         $ 592         $ 602
Granular urea              335           291           369           441
UAN                        266           307           303           308
AN                         225           300           250           266
                                                                   
Cost of natural gas
(dollars per MMBtu)      $ 3.74        $ 3.61        $ 3.66        $ 3.39
^(1)
                                                                   
Average daily market
price of natural gas
Henry Hub (dollars per   $ 3.84        $ 3.39        $ 3.72        $ 2.75
MMBtu)
                                                                   
Depreciation and         $ 82.7        $ 84.0        $ 328.4       $ 334.6
amortization
Capital expenditures     $ 178.0       $ 238.8       $ 759.5       $ 431.3
                                                                   
Production volume by
product (tons in
thousands)
Ammonia ^(2)               1,940         1,752         7,105         7,067
Granular urea              656           577           2,474         2,560
UAN (32%)                  1,652         1,571         6,332         6,027
AN                         228           151           882           839
                                                                             

^(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      Twelve months ended
                               December 31,            December 31,
                               2013        2012        2013        2012
                               (in millions, except as noted)
Net sales                      $ 147.6     $ 255.8     $ 796.9     $ 1,007.4
Cost of sales                   145.9     219.6     722.0     807.7   
Gross margin                   $ 1.7      $ 36.2     $ 74.9     $ 199.7   
                                                                   
Gross margin percentage          1.2   %     14.2  %     9.4   %     19.8    %
                                                                   
Tons of product sold (in         415         509         1,857       2,035
thousands)
                                                                   
Sales volumes by product
(tons in thousands)
DAP                              323         424         1,408       1,611
MAP                              92          85          449         424
                                                                   
Domestic vs. export sales
(tons in thousands)
Domestic                         227         367         1,061       1,254
Export                           188         142         796         781
                                                                   
Average selling prices
(dollars per ton)
DAP                            $ 348       $ 499       $ 427       $ 493
MAP                              382         527         437         502
                                                                   
Depreciation, depletion,       $ 3.8       $ 10.7      $ 42.3      $ 43.5
and amortization ^(1)
Capital expenditures           $ 10.8      $ 17.0      $ 59.0      $ 64.4
                                                                   
Production volume by product
(tons in thousands)
                                                                   
Hardee Phosphate Rock Mine
Phosphate rock                   834         827         3,565       3,483
                                                                   
Plant City Phosphate
Fertilizer Complex
Sulfuric Acid                    540         622         2,480       2,530
Phosphoric acid as P[2]O[5]      204         236         921         975
^(2)
DAP/MAP                          413         473         1,847       1,952
                                                                             

^(1) In October 2013 we entered into an agreement to sell the phosphate mining
and manufacturing business in Florida to the Mosaic Company. The assets and
liabilities expected to be sold are classified as held for sale. Effective
November 1, 2013 we ceased depreciation on amounts in property, plant and
equipment.

^(2) 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         Twelve months ended
                          December 31,               December 31,
                          2013           2012        2013          2012
                          (in
                          millions)
Net earnings
attributable to common    $  325.8       $ 470.7     $ 1,464.6     $ 1,848.7
stockholders
Interest expense             39.2          28.1        147.5         131.0
(income) - net
Income taxes                 187.2         241.9       686.5         963.8
Depreciation, depletion      96.8          101.1       410.6         419.8
and amortization
Less: other adjustments     (6.0   )     (6.6  )    (24.3   )    (43.1   )
                                                                   
EBITDA                    $  643.0      $ 835.2    $ 2,684.9    $ 3,320.2 

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 twelve months ended December 31,
2013 includes $54.0 million and $52.9 million, respectively, of mark-to-market
gains on natural gas derivatives and $6.5 million and $20.8 million,
respectively, of gains on foreign currency derivatives.

Net earnings for the twelve months ended December 31, 2013 include a $20.6
million net benefit resulting from the utilization of net operating losses
(NOLs) from periods prior to the company’s initial public offering (IPO).
EBITDA for the twelve months ended December 31, 2013 include a $55.2 million
non-operating expense to record the liability payable to the company’s pre-IPO
owners for the NOL carry-forward settlement.

Net earnings and EBITDA for the three and twelve months ended December 31,
2012 includes $13.1 million and $74.6 million, respectively, of mark-to-market
gains on derivatives.

Net earnings and EBITDA for the twelve months ended December 31, 2012 include
a $10.9 million gain related to a change in employee post-retirement benefits.

Net earnings, interest expense (income) - net, and depreciation, depletion and
amortization for the twelve months ended December 31, 2012 includes $15.2
million of accelerated amortization of deferred fees related to the
termination of our 2010 Credit Agreement.

                         CF INDUSTRIES HOLDINGS, INC.

                        SELECTED FINANCIAL INFORMATION

                    NON-GAAP DISCLOSURE ITEMS (CONTINUED)

CFL Selling Price Modifications

Prior to April 30, 2013, CF Industries,Inc. (CF Industries) owned 49% of the
voting common shares and 66% of the non-voting preferred shares of Canadian
Fertilizers Limited (CFL), an Alberta, Canada based nitrogen fertilizer
manufacturer and had the right to purchase 66% of the production of CFL. Also
prior to April 30, 2013, Viterra,Inc. (Viterra) held 34% of the equity
ownership of CFL and had the right to purchase up to 34% of CFL’s production.
Both CF Industries and Viterra were entitled to receive distributions of net
earnings of CFL based upon their respective purchases from CFL. CFL was a
variable interest entity that was consolidated in the Company’s financial
statements. On April 30, 2013, CF Industries completed the acquisitions of all
of the outstanding interests in CFL that it did not already own and CFL became
a wholly owned subsidiary of the Company.

CF Industries’ and Viterra’s purchases of nitrogen fertilizer products from
CFL were made under product purchase agreements, and the selling prices were
determined under the provisions of these agreements. An initial selling price
was paid to CFL based upon CFL’s production cost plus an agreed-upon margin
once title passed as the product was shipped. At the end of the year, the
difference between the market price of products purchased from CFL and the
price based on production cost plus an agreed-upon margin was paid to CFL. The
sales revenue attributable to this difference was accrued by the Company on an
interim basis. Until April 30, 2013 when CFL became a wholly owned subsidiary
in the Company’s financial statements, net sales and accounts receivable
attributable to CFL were solely generated by transactions with Viterra, as all
transactions with CF Industries were eliminated in consolidation in the
Company’s financial statements.

In the fourth quarter of 2012, the CFL Board of Directors approved amendments
to the product purchase agreements retroactive to January 1, 2012 that
modified the selling prices that CFL charged for products sold to Viterra and
CF Industries which eliminated the requirement to pay to CFL the difference
between the market price and the price based on production cost plus an
agreed-upon margin. The following summarizes the selling prices in the product
purchase agreements that impacted the Company’s results both before and after
the effective date of the amendment.

  *As a result of the January 1, 2012 retroactive effective date of the
    amendment, the Company recognized in its “As reported” fourth quarter 2012
    consolidated statement of operations a reduction in net sales to Viterra
    of $129.7 million and a corresponding reduction in net earnings
    attributable to the noncontrolling interest to reverse the interim market
    price accruals recognized in the first three quarters of 2012.
  *For 2012 and between January 1, 2013 and April 30, 2013, the Company’s
    consolidated financial statements reflect selling prices for products
    purchased from CFL including sales made by CFL to Viterra based on
    production cost plus an agreed-upon margin.
  *Starting on April 30, 2013, CFL became a wholly owned subsidiary of CF
    Industries. Once CFL became a wholly owned subsidiary, CF Industries began
    purchasing all of the output of CFL for resale and reported those sales in
    its consolidated financial statements at market based selling prices.

As a result, the financial results for 2013 include four months of selling
prices based on production cost plus an agreed-upon margin and eight months of
market based selling prices. These selling price amendments to the product
purchase agreements impact the comparability of the Company’s financial
results. These changes affect the year-over-year comparability of net sales,
gross margin, operating earnings, earnings before income taxes and net
earnings attributable to noncontrolling interest, but do not impact the
comparability of the Company’s net earnings attributable to common
stockholders or net cash flows for the same period.

In order to provide comparable information for the periods presented, certain
financial information is being provided for the prior year comparable periods
adjusted as if the current year CFL pricing calculation pattern of four months
of cost based pricing and eight months of market based pricing had been used
in the prior year comparable periods.

The following table adjusts the three and twelve months ended December 31,
2012 to be comparable to 2013 results.

                
CONSOLIDATED       Three months ended               Twelve months ended
RESULTS
                   December 31,                     December 31,
                   2013           2012              2013           2012
                   (in millions, except as noted)
Net sales
As reported        $  1,326.3    $  1,481.4        $  5,474.7    $ 6,104.0
Impact of
selling price        -             193.8           -            135.9
adjustment
As adjusted        $  1,326.3     $  1,675.2        $  5,474.7     $ 6,239.9
Gross margin
As reported        $  593.8       $  656.2          $  2,520.2     $ 3,113.3
Impact of
selling price        -             193.8           -            135.9
adjustment
As adjusted        $  593.8       $  850.0          $  2,520.2     $ 3,249.2
Gross margin
percentage
As reported           44.8     %     44.3        %     46.0     %    51.0    %
Impact of
selling price        -        %    6.4        %    -        %   1.1     %
adjustment
As adjusted           44.8     %     50.7        %     46.0     %    52.1    %
Net earnings
attributable to
noncontrolling
interest
As reported        $  15.6        $  (115.4   )     $  68.2        $ 74.7
Impact of
selling price        -             193.8           -            135.9
adjustment
As adjusted        $  15.6        $  78.4           $  68.2        $ 210.6
                                                                             
                                                                             
Similar to the consolidated results shown above, the table below adjusts prior
year nitrogen segment data for the impact of the change in the CFL price
calculation methodology to be comparable to current year results.
                                                                             
NITROGEN           Three months ended               Twelve months ended
SEGMENT DATA
                   December 31,                     December 31,
                   2013           2012              2013           2012
                   (in millions, except as noted)
Net sales
As reported        $  1,178.7    $  1,225.6        $  4,677.8    $ 5,096.6
Impact of
selling price        -             193.8           -            135.9
adjustment
As adjusted        $  1,178.7     $  1,419.4        $  4,677.8     $ 5,232.5
Gross margin
As reported        $  592.1       $  620.0          $  2,445.3     $ 2,913.6
Impact of
selling price        -             193.8           -            135.9
adjustment
As adjusted        $  592.1       $  813.8          $  2,445.3     $ 3,049.5
Gross margin
percentage
As reported           50.2     %     50.6        %     52.3     %    57.2    %
Impact of
selling price        -        %    6.7        %    -        %   1.1     %
adjustment
As adjusted           50.2     %     57.3        %     52.3     %    58.3    %
Average selling
prices (dollars
per ton)
Ammonia
As reported        $  512         $  567            $  592         $ 602
Impact of
selling price        -             113             -            26
adjustment
As adjusted        $  512         $  680            $  592         $ 628
Granular urea
As reported        $  335         $  291            $  369         $ 441
Impact of
selling price        -             158             -            24
adjustment
As adjusted        $  335         $  449            $  369         $ 465
                                                                             
                                                                             
                                                                             

Contact:

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