CF Industries Holdings, Inc. Reports First Quarter Earnings

  CF Industries Holdings, Inc. Reports First Quarter Earnings

                 Execution Excellence Delivers Strong Results

Business Wire

DEERFIELD, Ill. -- May 7, 2014

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

First Quarter Highlights

Operations:

  *Strong ammonia shipments helped deliver robust financial results despite
    gas cost headwinds.
  *Reported EBITDA^1 of $1.3 billion, or Adjusted EBITDA^2 of $512.6 million
    excluding gain on phosphate sale.
  *Generated net earnings attributable to common stockholders of $708.5
    million or $12.90 per diluted share, or Adjusted Net Earnings^2 of $247.5
    million or $4.51 per diluted share excluding gain on sale of phosphates.

Strategic:

  *Continued progress on capacity expansion projects, which remain on-time
    and on-budget.
  *Repurchased 3.2 million shares for $794.0 million, resulting in increased
    nitrogen capacity (and cash generation) per share.
  *Issued $1.5 billion of investment grade debt with 25 year average
    maturities.
  *Closed sale of phosphate business for $1.4 billion or $1.1 billion cash
    proceeds after tax.

Focus for 2014

  *Maintain focus on operational excellence.
  *Execute capacity expansion projects which will increase nitrogen capacity
    25 percent by 2016.
  *Return excess cash to shareholders via repurchases and dividends.

^1 Earnings Before Interest, Taxes, Depreciation and Amortization

^2 See Reconciliation of EBITDA, Adjusted EBITDA, Adjusted Net Earnings and
Adjusted Diluted Earnings Per Share in the tables accompanying this release.

Overview

CF Industries Holdings, Inc. today reported first quarter 2014 EBITDA of $1.3
billion and net earnings attributable to common stockholders of $708.5
million, or $12.90 per diluted share, compared to EBITDA of $651.4 million and
net earnings attributable to common stockholders of $406.5 million, or $6.47
per diluted share, in the first quarter of 2013. First quarter adjusted EBITDA
was $512.6 million excluding the $747.1 million pre-tax gain on sale of the
phosphate business, and adjusted net earnings were $247.5 million, or $4.51
per diluted share excluding the $461.0 million after-tax gain. Nitrogen
segment net sales in the first quarter of 2014 were $987.5 million, down 10
percent from $1.1 billion in the same period last year; total company net
sales are not comparable given the sale of the phosphate business.

During the first quarter, ammonia inventory overhang from low fall
applications, poor weather conditions in some key growing regions, customer
reluctance to take inventory positions, and elevated natural gas prices
combined to create a difficult operating environment. CF Industries was able
to overcome these challenges to generate strong cash flow during the quarter.
CF Industries used over 80 in-market storage and distribution locations,
5,000+ rail cars, ammonia pipeline access and 100,000+ tons of barge capacity
to have product, especially ammonia, available to customers in regions where
weather was conducive to applications. The company also benefited from its
risk management and hedging programs that limited exposure to short-term,
weather related volatility in the natural gas market.

“Coming into the year we were concerned with the high ammonia inventory
position across the system, however our team executed well and increased
ammonia shipments by 73 percent over the same period last year. That, combined
with an effective natural gas hedging program, enabled us to generate strong
results,” said Tony Will, president and chief executive officer, CF Industries
Holdings, Inc.

For 2014, the ammonia season had a very strong start in the lower U.S. Midwest
and Southern Plains regions, and is expected to continue with brisk movement
in the upper Midwest, Northern Plains and Western Canada regions as spring
progresses. Ammonia prices are expected to remain firm given strong demand and
now tight supply. Both conditions are expected to continue through the spring
application period.

Urea prices in North America, as represented at the Gulf of Mexico, have been
at a $25 average premium to Middle East delivered prices during the first four
months of 2014. However, buyer reluctance to make purchases due to lower
forward prices and inland logistical challenges have combined to discourage
importers from loading vessels for spring season delivery to North America.
Tight North American urea inventory is expected to support spot prices through
the spring. CF Industries anticipates that, following the spring application
season, North American prices will continue to decline toward parity with
international prices. Low Chinese coal prices and opening of China’s
low-tariff export season on July 1^st could further pressure world urea prices
as China’s 2014 exports are likely to be near or above the record high level
of 8 million tons set last year.

UAN volume movement is expected to be strong during the remainder of the first
half of the year. UAN imports have been lower than in prior years, partially
due to retailer and wholesaler reluctance to take inventory positions earlier
in the season. Additionally, the company anticipates that with tight ammonia
and urea inventory there will be strong demand for UAN so that farmers can
apply the recommended amounts of nitrogen needed by their crops. These factors
are expected to result in significant spot UAN sales opportunities. CF
Industries has been moving product into position in key UAN markets in
anticipation of increased spot demand.

“The first quarter saw outstanding ammonia movements. As we move into the
second quarter, we are extremely well positioned to provide upgraded products
to the farmers as they move from ammonia application to urea and UAN” stated
Mr. Will. “Our team is doing an excellent job executing our business plan.”

During the first quarter the company made significant progress on its
strategic initiatives. Progress continued with its two major capacity
expansion projects that, when complete, will increase the company’s nitrogen
production by 25 percent. Both projects remain on-time and on-budget.

CF Industries repurchased 3.2 million shares during the quarter at an average
price of approximately $248 per share, as well as an additional 0.7 million
shares subsequent to the quarter end through April 30^th. Total shares
outstanding have been reduced 27 percent from the beginning of 2011.
Approximately $586 million remains on the existing share repurchase
authorization which the company expects to complete by the end of 2014.

CF Industries issued $1.5 billion of investment grade debt with maturities of
20 and 30 years and a combined average coupon rate of less than 5.3 percent.
And the company closed the sale of the phosphate business to the Mosaic
Company for $1.4 billion, or approximately $1.1 billion after tax, and began
ammonia shipments under the associated supply agreement.

“We are focused on driving total shareholder return through increasing our
nitrogen capacity, and therefore cash generation capacity, on a per share
basis, while utilizing long-term, low-cost capital to finance the company,”
stated Mr. Will. “We are investing in high return projects, repurchasing
shares at attractive prices and accessing investment grade debt to lower our
overall cost of financing.”

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. The pace of
construction activity and spending is expected to increase during the
remainder of the year as major components are delivered and mechanical system
construction begins.

Attractive North American natural gas costs, in comparison to natural gas and
coal costs in other regions of the world, continue to support CF Industries’
long-term cash generation prospects. Natural gas prices spiked during the
quarter in association with the coldest winter in 30 years and all-time record
natural gas inventory withdrawal. Despite these issues and temporary spikes in
basis differentials, CF Industries’ effective gas cost for the quarter
averaged $4.34 per MMBtu. The company continues to believe North American
natural gas prices will be in a long-term range of $3 to $5 per MMBtu. This
belief is supported by a record domestic production of nearly 68 BCF/day
achieved at the end of the first quarter, and NYMEX natural gas futures prices
not reaching $5 per MMBtu until 2020 despite recent record low gas storage
levels and related price volatility. CF Industries’ gas hedging program is
focused on limiting risks to the company’s earnings profile from short-term
gas cost fluctuations. The company has 90 percent of its second quarter Henry
Hub exposure hedged, with 50 percent hedged via swaps priced at $3.55 per
MMBtu and 40 percent hedged via call options.

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. With a focus on nitrogen
production, and the advantage gained from access to low-cost North American
natural gas, CF Industries is well positioned to generate sustainable strong
cash flow.


First Quarter Consolidated Results

                     Three months ended March 31,
(in millions,
except per share       2014        2013        Change       % Change 
amounts)
Total net sales        $ 1,132.6     $ 1,336.5     $ (203.9 )     (15      ) %
                                                                             
EBITDA                   1,259.7       651.4         608.3        93
Adjusted EBITDA          512.6         651.4         (138.8 )     (21      )
                                                                             
Net earnings             708.5         406.5         302.0        74
attributable to
common
stockholders
Adjusted net             247.5         406.5         (159.0 )     (39      )
earnings
                                                                             
Diluted earnings         12.90         6.47          6.43         99
per share
Adjusted diluted         4.51          6.47          (1.96  )     (30      )
earnings per share
                                                                             

Comparison of 2014 to 2013 periods:

  *For a description of revenue and earnings performance, please refer to the
    business segment results below.
  *First quarter 2014 results included $22.6 million of non-cash pre-tax
    mark-to-market losses on natural gas derivatives, $0.9 million of pre-tax
    gains on foreign currency derivatives and a $747.1 million pre-tax gain on
    the sale of the phosphate business. These items increased/(decreased)
    after-tax earnings per diluted share by ($0.26), $0.01 and $8.39,
    respectively.
  *First quarter 2013 results included $22.5 million of non-cash pre-tax
    mark-to-market gains on natural gas derivatives, $11.8 million of pre-tax
    losses 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/(decreased) after-tax earnings per diluted share by $0.23,
    ($0.12) and $0.33, respectively.
  *Share repurchases during the first quarter of 2014 increased after-tax
    earnings per diluted share by $0.26, reflecting a 2 percent decrease in
    weighted average diluted shares outstanding for the first quarter.


Nitrogen Segment Results

                     Three months ended March 31,
(in millions,          2014        2013          Change       % Change
except as noted)
Net sales              $ 987.5       $ 1,097.6       $ (110.1 )     (10   )  %
                                                                             
Gross margin             434.3         647.6           (213.3 )     (33   )
Gross margin             44.0  %       59.0    %     (15) pts
percentage
                                                                             
Cost of natural
gas (dollars per         4.34          3.57            0.77         22
MMBtu)*
* Includes gas purchases and realized gains and losses on gas derivatives.


Comparison of 2014 to 2013 periods:

  *Net sales 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 decreased due to lower selling prices and an increase in
    production costs. Cost of sales included a mark-to-market unrealized loss
    on hedges of $22.6 million in the first quarter of 2014 compared to a gain
    of $22.5 million in the prior year period.
  *The company’s ammonia plants in aggregate operated at approximately 98
    percent of rated capacity during the first quarter of 2014.

                              Three months ended March 31,
Sales volume (tons in              2014    2013    Change   % Change 
thousands)
Ammonia                            577       334       243        73         %
Urea                               578       643       (65  )     (10      )
UAN                                1,451     1,636     (185 )     (11      )
AN                                 218       208       10         5
                                                                             

Comparison of 2014 to 2013 periods:

  *Ammonia volume increased due to strong demand that carried over from the
    fall application season, an earlier start to the spring application season
    in the lower U.S. Midwest as compared to last year, and higher industrial
    volumes from new and existing customers.
  *Granular urea sales volume declined due to lower production volumes.
  *UAN sales volume decreased due to buyer deferrals and the company’s
    decision to build inventory ahead of an expected strong application
    season.

                               Three months ended March 31,
Average selling price            2014    2013    Change     % Change 
(dollars per ton)
Ammonia                          $ 472     $ 600     $ (128 )     (21      ) %
Urea                               374       410       (36  )     (9       )
UAN                                276       329       (53  )     (16      )
AN                                 266       264       2          1
                                                                             

Comparison of 2014 to 2013 periods:

  *Ammonia average selling price decreased due to higher industry-wide
    inventory levels in the first quarter of 2014 which resulted from poor
    weather and reduced application during the fall ammonia season.
  *Granular urea average price declined due to higher global supply,
    especially from Chinese producers.
  *UAN average selling price decreased due to increased domestic supply and
    buyer reluctance to take inventory risk.

Phosphate Segment

The phosphate segment reflects the reported results of the phosphate business
through March 17, 2014, plus the continuing sales of the phosphate inventory
in the distribution network after March 17, 2014. It is expected that the
remaining phosphate inventory in the distribution network will be sold in the
second quarter of 2014, at which time the phosphate segment will cease to have
reported results.

                        Three months ended March 31,
(in millions, except      2014        2013        Change      % Change
as noted)
Net sales                 $ 145.1       $ 238.9       $ (93.8 )     (39   )  %
                                                                             
Gross margin                8.5           27.5          (19.0 )     (69   )
Gross margin                5.9   %       11.5  %     (6) pts
percentage
                                                                             
Domestic vs. export
(tons in thousands)
Domestic                    162           382           (220  )     (58   )  %
Export                      266           113           153         135
                                                                             
Average selling price
(dollars per ton)
DAP                       $ 335         $ 477         $ (142  )     (30   )  %
MAP                         349           511           (162  )     (32   )
                                                                             

Comparison of 2014 to 2013 periods:

  *Phosphate segment net sales declined because of lower average selling
    prices and lower sales volume due to the sale of the phosphate business
    during the quarter.
  *Phosphate segment gross margin declined due to lower selling prices, which
    were partially offset by lower ammonia and sulfur costs.
  *Depreciation, depletion and amortization expenses were no longer being
    recognized due to the sale of the phosphate business.

Environmental, Health & Safety Performance

As of March 31, 2014, CF Industries’ 12-month rolling average recordable
incidence rate was 1.61.

“Strong safety and environmental practices are fundamental to our ability to
run our business,” said Mr. Will. “We continuously strive for perfection and
want our employees to place safety first in everything they do. I thank them
for their attention to the welfare of our colleagues, neighbors and
communities.”

Balance Sheet and Cash Flow Items

As of March 31, 2014, CF Industries’ cash and cash equivalents totaled $3.5
billion, while restricted cash for capacity expansion projects was $653.3
million. The increase in the restricted cash account was primarily the result
of $460.6 million of cash proceeds received from the sale of the phosphate
business and deposited into a restricted cash arrangement that will be
utilized over the next six months in a tax-efficient manner to purchase assets
in the capacity expansion program. The additional investment grade bonds
issued during the quarter brought the company’s total long-term debt to $4.6
billion and further reduced the company’s overall cost of capital.

The company repurchased 3.2 million shares during the quarter for $794.0
million at an average share price of approximately $248. Subsequent to the end
of the quarter, the company repurchased 0.7 million shares through April
30^th, at an average price of approximately $252, or a total of $170.8
million. At the beginning of 2011, CF Industries had 71.3 million shares
outstanding. Inclusive of the shares repurchased through April 30^th, CF
Industries has 52.1 million shares outstanding, a reduction of 27 percent
since the beginning of 2011.

Total capital expenditures during the quarter were $392.4 million, of which
$278.3 million related to the capacity expansion program. The program is
progressing in-line with schedule and budget expectations as pile driving is
nearing completion and equipment has started arriving at both sites.
Construction has begun on the urea warehouses at both locations and the
ammonia storage tank at Donaldsonville, Louisiana.

Dividend Payment

On May 1, 2014, CF Industries’ Board of Directors declared the regular
quarterly dividend of $1.00 per common share. The dividend will be paid on May
30, 2014, to stockholders of record as of May 16, 2014.

Conference Call

CF Industries will hold a conference call to discuss these first quarter
results at 10:00 a.m. ET on Thursday, May 8, 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 the manufacturing and distribution of
nitrogen products, serving both agricultural and industrial customers. CF
Industries operates world-class nitrogen manufacturing complexes in the
central United States and Canada 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 adjusted net earnings attributable to common
stockholders, adjusted diluted earnings per share and adjusted EBITDA, each a
non-GAAP financial measure, provide meaningful information regarding the
company’s operating performance because they exclude the impact of the
phosphate sale and allow investors to better evaluate ongoing business
performance. 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 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 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: 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; 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
                                       March 31,
                                       2014                     2013
                                       (in millions, except per share amounts)
Net sales                              $   1,132.6              $  1,336.5
Cost of sales                             689.8                 661.4    
Gross margin                              442.8                 675.1    
Selling, general and                       41.7                    44.3
administrative expenses
Other operating - net                     (5.8      )            14.6     
Total other operating costs and            35.9                    58.9
expenses
Gain on sale of phosphate business         747.1                   -
Equity in earnings of operating           15.8                  11.6     
affiliates
Operating earnings                         1,169.8                 627.8
Interest expense                           40.0                    39.1
Interest income                            (0.2      )             (2.1     )
Other non-operating - net                 (0.1      )            54.7     
Earnings before income taxes and
equity
in earnings of non-operating               1,130.1                 536.1
affiliates
Income tax provision                       413.2                   107.4
Equity in earnings of
non-operating
affiliates - net of taxes                 3.5                   0.7      
Net earnings                               720.4                   429.4
Less: Net earnings attributable to
noncontrolling interest                    11.9                    22.9
Net earnings attributable to                                   
common stockholders                    $   708.5               $  406.5    
                                                                
Net earnings per share
attributable to
common stockholders
Basic                                  $   12.94               $  6.53     
Diluted                                $   12.90               $  6.47     
                                                                
Weighted average common shares
outstanding
Basic                                     54.8                  62.3     
Diluted                                   54.9                  62.8     
                                                                            

CF INDUSTRIES HOLDINGS, INC.
SELECTED FINANCIAL INFORMATION
SUMMARIZED BALANCE SHEETS
                                                        
                                                             
                                              March 31,      December 31,
                                              2014           2013
                                              (in millions)
Assets
Current assets:
Cash and cash equivalents                     $ 3,530.2      $  1,710.8
Restricted cash                                 653.3           154.0
Accounts receivable - net                       215.7           230.9
Inventories - net                               384.4           274.3
Deferred income taxes                           44.6            60.0
Prepaid income taxes                            -               33.4
Assets held for sale                            -               74.3
Other                                          82.9           92.4
Total current assets                            4,911.1         2,630.1
Property, plant and equipment - net             4,281.9         4,101.7
Investments in and advances to affiliates       933.5           926.0
Goodwill                                        2,094.6         2,095.8
Noncurrent assets held for sale                 -               679.0
Other assets                                   254.4          245.5
                                                             
Total assets                                  $ 12,475.5     $  10,678.1
                                                             
Liabilities
Accounts payable and accrued expenses         $ 593.7        $  564.1
Income taxes payable                            347.1           73.3
Customer advances                               477.3           120.6
Liabilities held for sale                       -               26.8
Other                                          17.6           43.5
Total current liabilities                       1,435.7         828.3
Long-term debt                                  4,592.3         3,098.1
Deferred income taxes                           821.0           833.2
Noncurrent liabilities held for sale            -               154.5
Other noncurrent liabilities                    318.2           325.6
Equity
Stockholders' equity                            4,943.7         5,076.1
Noncontrolling interest                        364.6          362.3
Total equity                                   5,308.3        5,438.4
                                                             
Total liabilities and equity                  $ 12,475.5     $  10,678.1
                                                                

CF INDUSTRIES HOLDINGS, INC.
SELECTED FINANCIAL INFORMATION
STATEMENTS OF CASH FLOWS
                                                              
                                                                   
                                                   Three months ended
                                                   March 31,
                                                   2014            2013
                                                   (in millions)
Operating Activities:
Net earnings                                       $ 720.4         $ 429.4
Adjustments to reconcile net earnings to net
cash
provided by operating activities:
Depreciation, depletion and amortization             105.3           107.1
Deferred income taxes                                17.1            (66.7   )
Stock compensation expense                           3.8             3.2
Excess tax benefit from stock-based                  (4.5    )       (9.0    )
compensation
Unrealized loss (gain) on derivatives                21.9            (9.0    )
Gain on sale of phosphate business                   (747.1  )       -
Loss on disposal of property, plant and              0.1             2.3
equipment and non-core assets
Undistributed earnings of affiliates - net           (11.4   )       (4.2    )
Changes in:
Accounts receivable - net                            32.2            (25.4   )
Inventories - net                                    (112.3  )       (109.8  )
Accrued income taxes                                 279.9           (81.8   )
Accounts payable and accrued expenses                67.4            73.5
Customer advances                                    356.8           317.9
Other - net                                         20.4          51.2    
Net cash provided by operating activities           750.0         678.7   
Investing Activities:
Additions to property, plant and equipment           (392.4  )       (152.8  )
Proceeds from the sale of property, plant and        1.3             3.3
equipment and non-core assets
Proceeds from sale of phosphate business             1,353.6         -
Deposits to restricted cash funds                    (505.0  )       (45.3   )
Withdrawals from restricted cash funds               5.7             -
Other - net                                         5.8           (1.9    )
Net cash provided by (used in) investing            469.0         (196.7  )
activities
Financing Activities:
Proceeds from long-term borrowings                   1,494.2         -
Financing fees                                       (15.7   )       -
Purchase of treasury stock                           (781.8  )       (500.1  )
Dividends paid on common stock                       (55.2   )       (25.2   )
Distributions to noncontrolling interests            (9.6    )       (16.7   )
Issuances of common stock under employee stock       9.4             4.6
plans
Excess tax benefit from stock-based                  4.5             9.0
compensation
Other                                               (43.0   )      -       
Net cash provided by (used in) financing            602.8         (528.4  )
activities
Effect of exchange rate changes on cash and         (2.4    )      (18.2   )
cash equivalents
Increase (decrease) in cash and cash                 1,819.4         (64.6   )
equivalents
Cash and cash equivalents at beginning of           1,710.8       2,274.9 
period
Cash and cash equivalents at end of period         $ 3,530.2      $ 2,210.3 
                                                                             

CF INDUSTRIES HOLDINGS, INC.
SELECTED FINANCIAL INFORMATION
NITROGEN SEGMENT DATA
                                                             
                                                Three months ended
                                                March 31,
                                                2014               2013
                                                (in millions, except as noted)
Net sales                                       $  987.5           $ 1,097.6
Cost of sales                                     553.2           450.0   
Gross margin                                    $  434.3          $ 647.6   
                                                                   
Gross margin percentage                            44.0   %          59.0    %
                                                                   
Tons of product sold (in thousands)                3,018             2,996
                                                                   
Sales volumes by product (tons in
thousands)
Ammonia                                            577               334
Granular urea                                      578               643
UAN                                                1,451             1,636
AN                                                 218               208
Other nitrogen products                            194               175
                                                                   
Average selling prices (dollars per ton)
Ammonia                                         $  472             $ 600
Granular urea                                      374               410
UAN                                                276               329
AN                                                 266               264
                                                                   
Cost of natural gas (dollars per MMBtu)         $  4.34            $ 3.57
^(1)
                                                                   
Average daily market price of natural gas
Henry Hub (dollars per MMBtu)                   $  5.05            $ 3.49
                                                                   
Depreciation and amortization                   $  94.6            $ 82.2
Capital expenditures                            $  374.1           $ 135.5
                                                                   
Production volume by product (tons in
thousands)
Ammonia ^(2)                                       1,800             1,826
Granular urea                                      546               644
UAN (32%)                                          1,549             1,673
AN                                                 210               227
                                                                             

^(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
                                                March 31,
                                                2014              2013
                                                (in millions, except as noted)
Net sales                                       $   145.1         $  238.9
Cost of sales                                      136.6          211.4  
Gross margin                                    $   8.5          $  27.5   
                                                                  
Gross margin percentage                             5.9     %        11.5   %
                                                                  
Tons of product sold (in thousands)                 428              495
                                                                  
Sales volumes by product (tons in
thousands)
DAP                                                 317              412
MAP                                                 111              83
                                                                  
Domestic vs. export sales (tons in
thousands)
Domestic                                            162              382
Export                                              266              113
                                                                  
Average selling prices (dollars per ton)
DAP                                             $   335           $  477
MAP                                                 349              511
                                                                  
Depreciation, depletion, and amortization       $   -             $  15.4
^(1)
Capital expenditures                            $   16.3          $  14.6
                                                                  
Production volume by product (tons in
thousands)
                                                                  
Hardee Phosphate Rock Mine
Phosphate rock                                      786              850
                                                                  
Plant City Phosphate Fertilizer Complex
Sulfuric Acid                                       551              650
Phosphoric acid as P[2]O[5] ^(2)                    213              238
DAP/MAP                                             425              475
                                                                            

^(1) On March 17, 2014 we sold the phosphate mining and manufacturing business
in Florida to The Mosaic Company pursuant to an Asset Purchase Agreement dated
as of October 28, 2013. The assets and liabilities sold were classified as
held for sale and we were no longer depreciating the 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 and adjusted EBITDA:

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.

Adjusted EBITDA is defined as EBITDA less the pre-tax gain on the sale of the
phosphate business completed in March 2014. We use adjusted EBITDA as a
supplemental financial measure in the comparison of year-over-year
performance.

                                               Three months ended
                                                     March 31,
                                                     2014          2013
                                                     (in millions)
Net earnings attributable to common                  $ 708.5         $ 406.5
stockholders
Interest expense (income) - net                        39.8            37.0
Income taxes                                           413.2           107.4
Depreciation, depletion and amortization               105.3           107.1
Less: other adjustments                               (7.1    )      (6.6  )
                                                                     
EBITDA                                               $ 1,259.7      $ 651.4 
                                                                     
Less: Pre-tax gain on sale of the                     (747.1  )      -     
phosphate business
                                                                     
Adjusted EBITDA                                      $ 512.6        $ 651.4 
                                                                             

Reconciliation of net earnings to adjusted net earnings and adjusted net
earnings per share:

Adjusted net earnings is defined as net earnings attributable to common
stockholders less the after-tax gain on sale of the phosphate business
completed in March 2014. We use adjusted net earnings attributable to common
stockholders and adjusted net earnings per share attributable to common
stockholders as supplemental financial measures in the comparison of
year-over-year performance.

                                 Three months ended
                                       March 31,
                                       2014                      2013
                                       (in millions, except per share amounts)
Net earnings attributable              $    708.5                  $   406.5
to common stockholders
Less: After-tax gain on
sale of the phosphate                      (461.0    )               -
business
                                                                   
Adjusted net earnings
attributable to
common stockholders                    $    247.5                 $   406.5
                                                                   
                                                                   
Net earnings per share
attributable to
common stockholders
Diluted                                $    12.90                 $   6.47
                                                                   
Adjusted net earnings per
share attributable to
common stockholders
Diluted                                $    4.51                  $   6.47
                                                                   
Weighted average common
shares outstanding
Diluted                                    54.9                     62.8
                                                                       

Notes:

Net earnings for the three months ended March 31, 2014 includes a $461.0
million net of tax gain on the sale of the phosphate business. EBITDA for the
three months ended March 31, 2014 includes a $747.1 million pre-tax gain on
sale of the phosphate business.

Net earnings and EBITDA for the three months ended March 31, 2014 include a
$22.6 million mark-to-market loss on natural gas derivatives and a $0.9
million gain on foreign currency derivatives.

Net earnings for the three months ended March 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
three months ended March 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 months ended March 31, 2013 include a
$22.5 million mark-to-market gain on natural gas derivatives and an $11.8
million loss on foreign currency derivatives.


Contact:

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