For the release dated December 15, 2011, in the second paragraph
of Rentech Nitrogen Outlook, "...59% and 47% of forecasted deliveries..." should instead read "...59% and
46% of forecasted revenues..."
The corrected release reads:
RENTECH REPORTS 2011 ACTIVITIES AND
FINANCIAL RESULTS
Rentech, Inc. (NYSE AMEX: RTK) today reported on its 2011
activities and financial results for the fourth quarter and fiscal
year ended September 30, 2011.
Rentech owns and develops technologies that enable the
production of certified synthetic fuels, renewable power and
hydrogen. The Company also manages and owns a majority of Rentech
Nitrogen Partners, L.P. which operates a nitrogen fertilizer
plant.
D. Hunt Ramsbottom, President and CEO of Rentech, stated, “2011
has been a transformative year for Rentech. By unlocking the value
of our nitrogen fertilizer business through a publicly traded MLP
structure, we have greatly increased shareholder value at Rentech.
Our liquidity position has been enhanced with significant cash and
our ownership in Rentech Nitrogen provides us with equity in a
publicly-traded entity as well as a vehicle for on-going cash flow
from anticipated distributions.” Regarding the energy business, Mr.
Ramsbottom commented, “We are significantly reducing our operating
and project costs as we evaluate opportunities to grow our
businesses through conservative capital deployment.”
Rentech Nitrogen Partners, L.P. IPO
On November 9, 2011, Rentech completed the Initial Public
Offering (IPO) of Rentech Nitrogen, a master limited partnership,
which now holds Rentech’s nitrogen fertilizer assets. In the IPO,
15 million common units representing limited partner interests in
Rentech Nitrogen were issued at a price to the public of $20.00 per
common unit, for gross proceeds of $300 million. The common units
are listed on the New York Stock Exchange under the ticker symbol
“RNF.”
On August 5, 2011, prior to the announcement of the IPO,
Rentech, which owned 100% of Rentech Nitrogen at the time, had a
market capitalization of $218 million. Based on its closing stock
price on December 14, 2011, the market capitalization of Rentech,
which now owns approximately 61% of Rentech Nitrogen, was $365
million, and the market capitalization of Rentech Nitrogen was $663
million. Rentech’s ownership in Rentech Nitrogen is valued at $403
million based on Rentech Nitrogen’s closing stock price on December
14, 2011. Rentech currently intends to maintain its majority
ownership interest in Rentech Nitrogen.
Rentech Nitrogen used $150.8 million of IPO proceeds to repay in
full its outstanding term loan, and retained $48 million of cash,
which included $8 million to fund identified capital expenditures
and $40 million for general working capital. The entity is now
debt-free and has a $25 million undrawn revolving credit facility
that can be used to fund Rentech Nitrogen’s seasonal working
capital needs, among other things.
Rentech received $136.8 million in cash in connection with the
closing of the IPO and owns 23.25 million common units of Rentech
Nitrogen. Rentech also owns 100% of the non-economic general
partner interest in Rentech Nitrogen.
Rentech Nitrogen will pay a quarterly distribution of the
Partnership’s cash available for distribution, as determined by the
Board of Directors of its General Partner, to its unit holders. As
of December 15, 2011, Rentech Nitrogen’s anticipated distributions
for the fiscal year ended September 30, 2012 are projected to total
$2.34 per unit before any debt service related to the potential
financing of its ammonia expansion project. Accordingly, Rentech
expects to receive approximately $54 million in distributions
during fiscal year 2012.
Net Operating Loss Carryforwards
Rentech estimates that its net operating loss carryforwards
(NOLs) applicable to federal income taxes currently exceed $90
million, after giving effect to the IPO transaction. The Company
has a tax benefit preservation plan in place which is intended to
protect the value of the Company's NOLs, the use of which could be
restricted by certain changes in ownership of the Company’s stock.
Once the Company’s NOLs are fully utilized or expire, Rentech’s
taxable income, including its share of income from Rentech
Nitrogen, will be subject to federal and other income taxes.
Strategy
The Company believes that it can use its liquidity and
management to support the growth of Rentech Nitrogen, and to take
advantage of opportunities to invest in energy assets.
Commenting on both businesses, Mr. Ramsbottom stated, “We
have clear opportunities for growth in our fertilizer business
given the expansion projects underway and potential future
expansion and acquisition possibilities. With respect to energy, we
believe that the changing industry may present opportunities for
Rentech to build significant value given our strong cash position,
stable of technologies and core competencies.”
Nitrogen Fertilizer Strategy
Rentech Nitrogen is in the process of expanding its production
capabilities and product offerings to increase cash flow through
the following expansion projects:
Ammonia Capacity Expansion: Rentech Nitrogen has commenced
construction of a project that is designed to increase ammonia
production at the facility by approximately 23%, or 70,000 tons
annually, for sale or upgrade to additional products, and to
increase on-site ammonia storage capacity by approximately 20,000
tons. Rentech Nitrogen has completed a feasibility study, completed
Front-End Engineering and Design (FEED), obtained air and
construction permits and commenced construction of certain long
lead-time items in order to put the project on a schedule that
coincides with planned downtime for the 2013 plant turnaround.
Based on the engineering work completed to date, the preliminary
estimate is that this project could be completed in 24 to 30 months
without adding significant downtime to that already planned for the
2013 turnaround. The entire project is expected to cost
approximately $100 million, and generate attractive project returns
given today’s environment and current expectations for pricing of
products and costs of natural gas. Rentech Nitrogen currently
intends to finance substantially all of the cost of this project
with debt financing. However, there is no guarantee that it will be
able to obtain debt financing on acceptable terms or at all.
Initial debt financing may be provided by the Partnership’s parent,
Rentech, Inc.
Urea Expansion and Diesel Exhaust Fluid Build-Out (DEF): Rentech
Nitrogen commenced a project to increase urea production capacity
by approximately 13%, or 17,500 tons annually. The additional urea
could be marketed as liquid urea or upgraded into UAN, both of
which sell at a premium to ammonia per unit of nitrogen. As a part
of this project, work has commenced on the installation of mixing,
storage and load-out equipment that would enable the production and
sale of DEF from urea produced at the facility. The urea expansion
and DEF build-out project is expected to be completed by the end of
calendar year 2012 and will cost approximately $5.8 million to
complete, which has been funded from net proceeds of the IPO. The
project is expected to generate attractive returns, given the
current environment and expectations for pricing of products and
costs of natural gas.
Rentech Nitrogen is also evaluating additional opportunities for
increased cash flow through further expansion as well as potential
acquisitions.
Energy Strategy
The Company’s energy strategy includes reduced spending for
project development and R&D; the acquisition of assets or
companies in related businesses that can generate cash flow;
collaboration with partners who can fund R&D and project
development, and provide related technologies; smaller investments;
and thresholds for projected returns appropriate to the type of
investment. The Company believes that, although the alternative
energy space is currently challenging, opportunities exist to
create shareholder value through disciplined investment in assets
that may be undervalued, and could benefit from the Company’s
technical and operational expertise.
Rentech does not intend on its own to fund expensive development
activities such as FEED for development projects, but may co-invest
alongside partners. For example, Rentech may seek to invest in
projects that would combine Rentech’s biomass gasification
technologies with third-party technology for the production of
renewable fuels or power, in which case Rentech’s investment may be
intended to fund the commercial deployment of a gasifier, which
would require $30-$40 million and be contingent on a complete
financing package for the project. The Company does not intend to
rely on U.S. Department of Energy (DOE) financing for commercial
projects, but may pursue grants and other forms of support.
Consistent with this strategy, Rentech’s expenses for project
development before financing is in place are expected to be no more
than a few million dollars per year, and the number of development
projects is expected to be limited. Rentech is negotiating with
potential partners and agencies to fund research and development
(R&D) activities. The Company’s approach to its Olympiad
project in northern Ontario Canada is to seek partners and funding
sources that would co-fund development activities, and to seek a
financing package that would limit Rentech’s investment in the
project. The Company stopped development of large scale projects
that required larger development spending by Rentech in order to
meet deadlines for government funding. For example, in the fourth
quarter of fiscal year 2011, Rentech abandoned its large-scale
projects that relied on DOE funding, and impaired the assets that
had been capitalized in connection with those projects.
Rentech, Inc.: Outlook excluding Rentech Nitrogen
Rentech expects to build cash as it receives distributions from
Rentech Nitrogen in fiscal year 2012, absent any unplanned
investments, debt repayment or acquisitions. At the close of the
IPO, Rentech had approximately $200 million of cash and $57.5
million of debt. The Company expects to receive approximately $54
million in cash distributions during fiscal year 2012 as a result
of its ownership in Rentech Nitrogen.
Rentech expects total operating and capital expenditures for its
alternative energy segment to decline in fiscal year 2012 by
approximately 40% from the prior fiscal year. Selling, general and
administrative (SG&A) expenses for fiscal year 2012, adjusted
for non-cash compensation expenses, are expected to be slightly
down from fiscal year 2011, with the potential for further
improvement. Capital expenditures are expected to decline by
approximately 85%, primarily due to reduced project development
activity. R&D expenses for fiscal year 2012 are projected to
decline by more than 50% from fiscal year 2011. This projection for
R&D expenses reflects activities only through completion of the
Rentech-ClearFuels Integrated Bio-Refinery (IBR) Project at the
Rentech Energy Technology Center (RETC) in Colorado, which requires
2,000 hours of operation and is expected to be completed in early
April 2012. As the IBR Project concludes, Rentech will assess the
need for any continued operation of its Product Demonstration Unit
(PDU) and Integrated BioRefinery as well as research and
development activities at RETC. Continuing such activities through
the second half of the fiscal year would add an estimated $6-$8
million, including staffing costs, to R&D expense if Rentech
elected to continue such operations and bear the full cost. Rentech
is currently in discussions with potential partners and educational
and government entities regarding funding of R&D
activities.
Rentech Nitrogen Outlook
Rentech Nitrogen reiterates its forecast for cash distributions
of $2.34 per unit (a forecast that assumed no interest expense) for
the fiscal year ending September 30, 2012 that was detailed in the
Partnership’s IPO prospectus. The Partnership continues to see
positive agriculture fundamentals and economic incentives for
farmers to plant corn and use nitrogen fertilizer to increase
yields. Pricing is relatively strong for nitrogen fertilizer
products in the Mid Corn Belt, which has historically been the top
corn producing region of the U.S.
Rentech Nitrogen has delivered and/or entered into prepayment
contracts for approximately 77,500 tons of ammonia and 120,250 tons
of UAN, which accounts for 59% and 46% of forecasted revenues for
the respective products during fiscal year 2012. Rentech Nitrogen
has already purchased or contracted at fixed prices for the natural
gas required to produce the tons delivered and those under
contract.
Financial Highlights
Rentech’s financial results reflect the consolidated results of
its alternative energy business and those of Rentech Nitrogen prior
to the closing of Rentech Nitrogen’s IPO and the repayment of its
term loan.
Fiscal Fourth Quarter Ended September 30,
2011
For the fourth quarter of fiscal year 2011 consolidated net loss
was $59.1 million or $0.27 per share. Excluding non-recurring
items, the Company generated net loss of $0.04 per share for the
current period. This compares to a net loss of $9.1 million or
$0.04 per share reported in the fourth quarter of fiscal year 2010.
Further explanation of net income excluding non-recurring items, a
non-GAAP financial measure, and a reconciliation of consolidated
net income excluding non-recurring items to net income have been
included below in this press release.
During the fourth quarter of fiscal year 2011, Rentech Nitrogen
generated operating income of $10.4 million as compared to $6.4
million during the fourth quarter of the prior fiscal year. Rentech
Nitrogen generated $12.9 million of Adjusted EBITDA in the fourth
quarter of fiscal year 2011, as compared to $9.3 million in the
fourth quarter of the prior fiscal year. Further explanation of
Adjusted EBITDA, a non-GAAP financial measure, and a reconciliation
of Rentech Nitrogen's Adjusted EBITDA to operating income has been
included below in this press release.
During the fourth quarter of fiscal year 2011, Rentech
Nitrogen’s average prices for ammonia and UAN, its primary
products, were $636 per ton and $298 per ton, respectively,
compared to $398 per ton and $168 per ton, respectively, for the
comparable period in the prior fiscal year.
Rentech Nitrogen delivered 18,000 tons of ammonia, 77,000 tons
of UAN and 7,000 tons of other nitrogen products during the fourth
quarter of fiscal year 2011 as compared to 35,000 tons of ammonia,
100,000 tons of UAN and 10,000 tons of other nitrogen products
during the comparable period in the prior fiscal year.
Revenues for the fourth quarter of fiscal year 2011 were $38.6
million, as compared to $35.1 million for the comparable period in
the prior fiscal year. Revenues were derived almost entirely from
nitrogen fertilizer products sales, whose sales prices were higher
due to stronger demand for the products than in the previous fiscal
year period which were partially offset by lower shipments due to
the bi-annual plant turnaround during the last two weeks of
September.
Gross profit margin on product shipments was 45% for the fourth
quarter of fiscal year 2011, up from 23% for the comparable period
in the prior fiscal year. The increase was primarily due to higher
sales prices and lower natural gas prices. Gross profit margin for
the current period was negatively impacted by $4.4 million of
expenses related to the bi-annual plant turnaround.
Consolidated SG&A expenses were $5.1 million for the fourth
quarter of fiscal year 2011 as compared to $7.1 million for the
comparable period in the prior year. Current period SG&A
expenses were comprised of $3.4 million for the alternative energy
business and $1.7 million for nitrogen fertilizer business as
compared to $5.6 million and $1.5 million, respectively, for the
fourth quarter of fiscal year 2010. The decrease in SG&A
expenses was primarily due to a decrease in stock based
compensation.
R&D expenses incurred in the alternative energy segment
during the fourth quarter of fiscal year 2011 were $9.6 million as
compared to $6.3 million for the comparable period in the prior
fiscal year. The increase in R&D expenses was primarily
attributable to the fabrication and the integration of the
Rentech-ClearFuels biomass gasifier at the PDU.
During the fourth quarter of fiscal year 2011, Rentech reported
a $58.7 million loss due to impairments for the Company’s Rialto,
Natchez and Port St. Joe projects which it abandoned during the
quarter. Rentech also extinguished a liability of $7.9 million
related to its previously abandoned coal-to-liquids conversion
project at its fertilizer plant.
Fiscal Year Ended September 30,
2011
For the fiscal year ended September 30, 2011 consolidated net
loss was $64.3 million or $0.29 per share. Excluding non-recurring
items, consolidated net income was $0.00 per share for the current
fiscal year. This compares to a net loss of $42.2 million or $0.20
per share reported in the fiscal year ended September 30, 2010, or
a net loss of $0.18 per share excluding non-recurring items.
Further explanation of net income excluding non-recurring items, a
non-GAAP financial measure, and a reconciliation of consolidated
net income excluding non-recurring items to net income have been
included below in this press release.
During fiscal year 2011, Rentech Nitrogen generated operating
income of $69.9 million as compared to $20.4 million during the
prior fiscal year. Rentech Nitrogen generated $79.9 million of
Adjusted EBITDA in fiscal year 2011, as compared to $30.9 million
in fiscal year 2010. Further explanation of Adjusted EBITDA, a
non-GAAP financial measure, and a reconciliation of Rentech
Nitrogen's Adjusted EBITDA to operating income have been included
below in this press release.
During fiscal year 2011, Rentech Nitrogen’s average prices for
ammonia and UAN, its primary products, were $588 per ton and $269
per ton, respectively, compared to $377 per ton and $180 per ton,
respectively, during the prior fiscal year.
Rentech Nitrogen delivered 125,000 tons of ammonia, 315,000 tons
of UAN and 44,000 tons of other nitrogen products during fiscal
year 2011 as compared to 153,000 tons of ammonia, 294,000 tons of
UAN and 43,000 tons of other nitrogen products during the
comparable period in the prior fiscal year.
Revenues for fiscal year 2011 were $180.1 million, as compared
to $131.9 million for the comparable period in the prior fiscal
year. Revenues were derived almost entirely from nitrogen
fertilizer products sales, whose sales prices were higher due to
stronger demand for the products than in the previous fiscal year.
Ammonia sales volume was lower during fiscal year 2011 as more
ammonia was upgraded into UAN to realize higher gross profit
margins than in the prior fiscal year, and the need to build
inventory to cover fiscal year 2012 fall sales commitments.
Gross profit margin on product shipments was 45% for fiscal year
2011, up from 24% for the prior fiscal year. The increase was
primarily due to higher sales prices and lower natural gas prices.
Fiscal year 2010 gross profit margin was negatively impacted by
unplanned repairs and maintenance costs. Turnaround expenses for
fiscal years 2011 and 2010 were $4.5 million and $4.0 million,
respectively.
Consolidated SG&A expenses were $28.0 million for fiscal
year 2011 as compared to $28.4 million for the prior fiscal year.
Current year SG&A expenses were comprised of $22.2 million for
the alternative energy business and $5.8 million for the nitrogen
fertilizer business as compared to $23.9 million and $4.5 million,
respectively, for fiscal year 2010. The decrease in the alternative
energy segment’s SG&A expenses was primarily attributable to a
decline in stock-based compensation expense resulting from the
reversal of previously accrued expenses related to the Rialto
Project.
R&D expenses incurred in the alternative energy segment
during fiscal year 2011 were $30.0 million as compared to $19.6
million for the comparable period in the prior fiscal year. The
increase in R&D expenses was primarily attributable to the
fabrication and integration of the Rentech-ClearFuels biomass
gasifier at the Company’s PDU. Net of DOE reimbursements, Rentech’s
remaining costs to complete the Rentech-ClearFuels project are
expected to be approximately $1.5 million.
During fiscal year 2011, Rentech reported a $58.7 million loss
due to impairments for the Company’s Rialto, Natchez and Port St.
Joe projects which it abandoned during the fourth quarter. In
fiscal year 2011 Rentech extinguished a liability of $7.9 million
related to a previously abandoned coal-to-liquids conversion
project at its fertilizer plant.
In fiscal year 2011, $13.8 million was recorded as loss on debt
extinguishment as compared to $2.3 million recorded in the prior
fiscal year.
Conference Call with Management
The Company will hold a conference call on Thursday, December
15, 2011 at 11:30 a.m. PST, during which time Rentech's senior
management will review the Company's financial results for this
period and provide an update on corporate developments. Callers may
listen to the live presentation, which will be followed by a
question and answer segment, by dialing 800-381-7839 or
212-231-2901. An audio webcast of the call will be available at
www.rentechinc.com within the Investor Relations portion of the
site under the Presentations section. A replay will be available by
audio webcast and teleconference from 1:30 p.m. PST on December 15
through 1:30 p.m. PST on December 22. The replay teleconference
will be available by dialing 800-633-8284 or 402-977-9140 and the
reservation number 21548867.
RENTECH, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Stated in thousands, except per share
data)
For the Three Months For the Twelve Months Ended
September 30, Ended September 30, 2011
2010 2011 2010 Total Revenues
$
38,619
$ 35,095 $ 180,063 $ 131,925
Cost of Sales
25,800 26,927 103,486
106,712
Gross Profit 12,819 8,168 76,577
25,213 Selling, General, and Administrative 5,062 7,074
28,004 28,410 Depreciation and Amortization 546 487 2,225 1,947
Research and Development 9,569 6,328 30,009 19,641 Loss on
Impairment 58,689 1,190 58,742 1,190 Advance for Equity Investment
(7,892 ) - (7,892 ) - Loss on Disposal of Property, Plant,
and Equipment
594 219 523 191
Total Operating Expenses 66,568
15,298 111,611 51,379
Operating Profit (Loss) (53,749 ) (7,130 ) (35,034 ) (26,166
)
Total Other Expenses (5,357 ) (1,912
) (30,345 ) (15,550 )
Net Loss from Continuing
Operationsbefore Income Taxes and Equity in Net
Lossof Investee Company
(59,106 ) (9,042 ) (65,379 ) (41,716 ) Income tax expense
4 2 3 11
Loss from Continuing Operations
before Equity in Net Loss of Investee Company
(59,110 ) (9,044 ) (65,382 ) (41,727 ) Equity in net loss of
investee company - 79 -
544
Loss from Continuing Operations (59,110 )
(9,123 ) (65,382 ) (42,271 ) Income from discontinued operations
- 1 - 9
Net Loss (59,110 ) (9,122 ) (65,382 ) (42,262 )
Net loss attributable to noncontrolling
interests
19 94 1,099 94
Net Loss Attributable to Rentech $ (59,091 ) $ (9,028
) $ (64,283 ) $ (42,168 )
Basic and Diluted Loss per
Common Share Continuing operations $ (0.27 ) $ (0.04 ) $ (0.29
) $ (0.20 ) Discontinued operations 0.00 0.00
0.00 0.00
Basic and Diluted
Loss per Common Share $ (0.27 ) $ (0.04 ) $ (0.29 ) $ (0.20 )
Basic and Diluted Weighted-Average Number of
Common Shares Outstanding 223,356 221,731
222,664 216,069
Disclosure Regarding Non-GAAP Financial Measures
To supplement the Company’s financial information presented in
accordance with GAAP, management uses additional measures that are
known as “non-GAAP financial measures” in its evaluation of past
performance. These measures include net income (loss) attributable
to Rentech excluding non-recurring items and Adjusted EBITDA.
Management believes that the presentation of such additional
financial measures provides useful information to investors
regarding the Company’s performance and results of operations
because these measures, when used in conjunction with related GAAP
financial measures, provide investors with additional information
about the Company’s core operating performance and the financial
analytical framework upon which management bases financial,
operational and planning decisions.
Net income (loss) attributable to Rentech excluding
non-recurring items is a presentation of net income (loss)
attributable to Rentech adjusted for non-recurring items, such as
loss on impairments and extinguishment of debt.
Adjusted EBITDA is a presentation of earnings before interest,
taxes, depreciation and amortization. Note that the majority of
Rentech Nitrogen’s depreciation expense is booked to cost of sales.
Management believes that Adjusted EBITDA can be a useful indicator
of the fundamental operating performance of Rentech Nitrogen’s
business and fertilizer production facility. Management believes
that Adjusted EBITDA can help investors evaluate Rentech Nitrogen’s
operating performance by eliminating the effects of depreciation
and amortization, which are non-cash expenses, and of interest and
taxes, which are non-operating expenses. The Company believes that
its investors may use Adjusted EBITDA as a measure of the operating
performance of Rentech Nitrogen.
The Company recommends that investors carefully: review the GAAP
financial information (including its Statements of Cash Flows)
included as part of its Annual Report on Form 10-K, its Quarterly
Reports on Form 10-Q, and its earnings releases; compare GAAP
financial information with the non-GAAP financial measures
disclosed in its quarterly earnings releases and investor calls;
and read the reconciliation below.
Calculation of Consolidated Net Income
(Loss) Profit Excluding Non-Recurring Items
(Stated in thousands, except per share
data)
For the Three Months
For the Twelve Months Ended September 30,
Ended September 30, 2011 2010
2011 2010 Net loss Attributable
to Rentech $ (59,091 ) $ (9,028 ) $ (64,283 ) $ (42,168 ) Loss on
Impairments 58,689 1,190 58,742 1,190 Advance for Equity Investment
(7,892 ) - (7,892 ) - Loss on Debt Extinguishment -
- 13,816 2,268
Net Income (Loss) Attributable to
RentechExcluding Non-Recurring Items
$ (8,294 ) $ (7,838 ) $ 383 $ (38,710 ) Net Loss per
Share Attributable to Rentech (0.27 ) (0.04 ) (0.29 ) $ (0.20 )
Loss on Impairments 0.27 0.00 0.26 0.01 Advance for Equity
Investment (0.04 ) 0.00 (0.03 ) 0.00 Loss on Debt Extinguishment
0.00 0.00 0.06
0.01
Net Income (Loss) per Share Attributable
toRentech Excluding Non-Recurring Items
$ (0.04 ) $ (0.04 ) $ 0.00 $ (0.18 ) Weighted-Average
Shares Outstanding 223,356 221,731 222,664 216,069
Rentech Nitrogen Adjusted EBITDA Reconciliation (Stated in
thousands) For the
Three Months For the Twelve Months
Ended September 30, Ended September 30, 2011
2010 2011 2010
Operating Income
$
10,376
$ 6,409 $ 69,854 $ 20,389 Depreciation and Amortization
2,514 2,926 10,020 10,542 Adjusted EBITDA $
12,890 $ 9,335 $ 79,874 $ 30,931
About Rentech, Inc.
Rentech, Inc. (www.rentechinc.com) owns and develops
technologies that enable the production of certified synthetic
fuels and renewable power when integrated with certain other
third-party technologies. The Company’s clean energy technology
portfolio includes the Rentech-SilvaGas biomass gasification
technology and the Rentech-ClearFuels biomass gasification
technology, both of which can produce synthesis gas from biomass
and waste materials for production of renewable power and fuels.
The Rentech-ClearFuels Gasifier can also produce renewable hydrogen
as a product. Rentech also owns the patented Rentech Process which
is based on Fischer-Tropsch chemistry. The Rentech Process can
convert syngas from the Company’s own or other gasification
technologies into complex hydrocarbons that then can be upgraded
into fuels or chemicals using refining technology that we
license.
Rentech also owns, through its wholly owned subsidiaries, the
general partner interest and approximately 61% of the common units
representing limited partner interests in Rentech Nitrogen
Partners, L.P. (www.rentechnitrogen.com), a publicly traded limited
partnership. Rentech Nitrogen Partners, L.P. manufactures and sells
nitrogen fertilizer products including ammonia, urea ammonia
nitrate, granular urea and urea liquor in the Mid Corn Belt region
of the United States.
Safe Harbor Statement
This press release contains forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995
about matters such as: Rentech Nitrogen’s forecasted cash available
for distribution for fiscal year 2012 and related assumptions
(please see pages 69-76 of the Rentech Nitrogen prospectus dated
November 3, 2011 as filed pursuant to Rule 424(b)(4) with the
Securities and Exchange Commission on November 7, 2011 for further
details on the cash forecast and its underlying assumptions); our
estimated net operating loss carryforwards; our energy and nitrogen
fertilizer strategies; and the outlook for both our energy and
nitrogen fertilizer businesses in fiscal year 2012. These
statements are based on management’s current expectations and
actual results may differ materially as a result of various risks
and uncertainties. Other factors that could cause actual results to
differ from those reflected in the forward-looking statements are
set forth in the Company’s prior press releases and periodic public
filings with the Securities and Exchange Commission, which are
available via Rentech’s website at www.rentechinc.com. The forward-looking statements
in this press release are made as of the date of this press release
and Rentech does not undertake to revise or update these
forward-looking statements, except to the extent that it is
required to do so under applicable law.
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