Outstanding Operational Performance, Positive
Energy Spreads Drive Strong Financial Results
Acquisition of Waggaman Ammonia Production
Facility Complete
Greenfield Low-Carbon SMR Ammonia Plant FEED
Study Complete, FID Targeted for 2H-2024
CF Industries Holdings, Inc. (NYSE: CF), a leading global
manufacturer of hydrogen and nitrogen products, today announced
results for the full year and fourth quarter ended December 31,
2023.
Highlights
- Full year net earnings(1)(2) of $1.53 billion, or $7.87 per
diluted share, EBITDA(2) of $2.71 billion, and adjusted EBITDA(3)
of $2.76 billion
- Fourth quarter net earnings(1)(2) of $274 million, or $1.44 per
diluted share, EBITDA of $556 million, and adjusted EBITDA of $592
million
- Full year net cash from operating activities of $2.76 billion
and free cash flow(4) of $1.80 billion
- Closed acquisition of Waggaman ammonia production facility on
December 1, 2023
- Electrolyzer installation at Donaldsonville, LA, Complex
mechanically complete; commissioning activities for green ammonia
project underway
- CF Industries and Mitsui & Co., Ltd. (“Mitsui”) targeting
second half 2024 for final investment decision (FID) on proposed
greenfield low-carbon ammonia plant in Louisiana
- Repurchased 2.9 million shares for $225 million during the
fourth quarter of 2023
“CF Industries’ 2023 results demonstrate the strength of our
business and our team,” said Tony Will, president and chief
executive officer, CF Industries Holdings, Inc. “We ran our plants
well, added the Waggaman ammonia production facility to our
network, and advanced our clean energy strategy. We believe that
the global energy cost structure presents attractive margin
opportunities for our North American-based production network in
the near-term and that the global nitrogen supply-demand balance
will tighten considerably in the medium-term. As a result, we
expect to continue to drive strong cash generation, underpinning
our ability to create significant shareholder value from
disciplined investments in growth opportunities and returning
substantial capital to shareholders.”
Update on Proposed Greenfield Low-Carbon Ammonia Plant at CF
Industries’ Blue Point Complex
In the fourth quarter of 2023, CF Industries and Mitsui
completed a front-end engineering and design (FEED) study on a
greenfield steam methane reforming (SMR) ammonia facility with
carbon capture and sequestration (CCS) technologies at CF
Industries’ Blue Point Complex in Louisiana. The FEED study
estimates the cost of a project with these attributes to be in the
range of $3 billion, with approximately $2.5 billion allocated to
the ammonia facility and CCS technologies and approximately $500
million allocated to scalable common infrastructure for the site,
such as ammonia storage and vessel loading docks.
CF Industries and Mitsui are progressing two additional FEED
studies focused on technologies with the potential to further
reduce the carbon intensity of the proposed low-carbon ammonia
plant. These include a previously announced FEED study evaluating
autothermal reforming (ATR) ammonia production technology and a
recently added FEED study assessing the cost and viability of
adding flue gas capture to an SMR ammonia facility. Both FEED
studies are expected to be completed in the second half of
2024.
CF Industries and Mitsui also expect greater clarity later in
2024 regarding demand for low-carbon ammonia, including the ammonia
carbon intensity requirements of offtake partners as well as
government incentives and regulatory developments in partners’
local jurisdictions. As a result of these factors, the companies
are targeting the second half of 2024 for a final investment
decision on the proposed low-carbon ammonia plant.
Operations Overview
The Company continues to operate safely and efficiently across
its network. As of December 31, 2023, the 12-month rolling average
recordable incident rate was 0.36 incidents per 200,000 work hours,
significantly better than industry averages.
Gross ammonia production for the full year and fourth quarter of
2023 was approximately 9.5 million and 2.5 million tons,
respectively. Gross ammonia production volume for the full year and
fourth quarter of 2023 includes one month of production from the
recently acquired Waggaman ammonia production facility in
Louisiana. The Company expects gross ammonia production in 2024 to
be approximately 10 million tons.
Financial Results Overview
Full Year 2023 Financial Results
For the full year 2023, net earnings attributable to common
stockholders were $1.53 billion, or $7.87 per diluted share, EBITDA
was $2.71 billion, and adjusted EBITDA was $2.76 billion. These
results compare to full year 2022 net earnings attributable to
common stockholders of $3.35 billion, or $16.38 per diluted share,
EBITDA of $5.54 billion, and adjusted EBITDA of $5.88 billion.
Net sales for the full year 2023 were $6.63 billion compared to
$11.19 billion for 2022. Average selling prices for 2023 were lower
than 2022 as lower global energy costs reduced the global market
clearing price required to meet global demand. Sales volumes for
2023 were higher compared to 2022 from higher urea ammonium nitrate
(UAN), ammonia and diesel exhaust fluid (DEF) sales volumes.
Cost of sales for 2023 was lower compared to 2022 due primarily
to lower realized natural gas costs.
In 2023, the average cost of natural gas reflected in the
Company’s cost of sales was $3.67 per MMBtu compared to the average
cost of natural gas in cost of sales of $7.18 per MMBtu for
2022.
Fourth Quarter 2023 Financial Results
For the fourth quarter of 2023, net earnings attributable to
common stockholders were $274 million, or $1.44 per diluted share,
EBITDA was $556 million, and adjusted EBITDA was $592 million.
These results compare to fourth quarter of 2022 net earnings
attributable to common stockholders of $860 million, or $4.35 per
diluted share, EBITDA of $1.25 billion, and adjusted EBITDA of
$1.30 billion.
Net sales in the fourth quarter of 2023 were $1.57 billion
compared to $2.61 billion in 2022. Average selling prices for the
fourth quarter of 2023 were lower than 2022 as lower global energy
costs reduced the global market clearing price required to meet
global demand. Sales volumes in the fourth quarter of 2023 were
higher than 2022 driven by higher ammonia, UAN and DEF sales
volumes.
Cost of sales for the fourth quarter of 2023 was lower compared
to 2022 due primarily to lower realized natural gas costs.
The average cost of natural gas reflected in the Company’s cost
of sales was $3.01 per MMBtu in the fourth quarter of 2023 compared
to the average cost of natural gas in cost of sales of $6.88 per
MMBtu in the fourth quarter of 2022.
Capital Management
Acquisition of Waggaman, Louisiana, ammonia production
facility
On December 1, 2023, CF Industries closed its acquisition of
Incitec Pivot Limited’s (“IPL”) ammonia production plant and
related assets located in Waggaman, Louisiana. In connection with
the acquisition, the Company entered into a long-term ammonia
offtake agreement providing for the Company to supply up to 200,000
tons of ammonia per year to IPL’s Dyno Nobel, Inc. subsidiary.
Under the terms of the asset purchase agreement, $425 million of
the $1.675 billion purchase price, subject to adjustment, was
allocated by the parties to the ammonia offtake agreement. The
Company funded the balance of the purchase price with $1.223
billion in cash.
Capital Expenditures
Capital expenditures in the fourth quarter and full year 2023
were $188 million and $499 million, respectively. Management
projects capital expenditures for full year 2024 will be in the
range of $550 million.
Share Repurchase Program
The Company repurchased approximately 7.9 million shares for
$580 million during 2023, which included the repurchase of 2.9
million shares for $225 million during the fourth quarter of
2023.
Quarterly Dividend
On January 31, 2024, the Board of Directors of CF Industries
Holdings, Inc., declared a quarterly dividend of $0.50 per common
share, representing a 25% increase compared to its prior quarterly
dividend.
CHS Inc. Distribution
On January 31, 2024, the Board of Managers of CF Industries
Nitrogen, LLC (CFN) approved a semi-annual distribution payment to
CHS Inc. (CHS) of $144 million for the distribution period ended
December 31, 2023. The distribution was paid on January 31, 2024.
Distributions to CHS pertaining to 2023 distribution periods were
approximately $348 million.
Nitrogen Market Outlook
Management believes that global nitrogen industry fundamentals
point to a constructive global nitrogen supply-demand balance in
the near-term and a tightening global nitrogen supply-demand
balance in the medium-term.
In the near-term, the Company expects global nitrogen demand to
remain resilient driven by continued strong agriculture
applications and recovering industrial demand. Additionally, key
producing regions continue to face challenging production economics
due to the cost and availability of natural gas.
- North America: Management believes nitrogen channel
inventories remain below average following a strong fall 2023
ammonia season, nitrogen imports to the region that are below the
3-year average, and reported production downtime in the region
during the fourth quarter of 2023. The Company projects that 91
million acres of corn will be planted in the United States in 2024
and that North American farm profitability will improve in 2024
compared to 2023 as lower crop prices are offset by lower input
costs. As a result, management expects nitrogen demand in North
America for the spring 2024 application season to remain
strong.
- Brazil: Imports of urea into Brazil totaled 7.3 million
metric tons in 2023, an increase of approximately 3%
year-over-year. Management expects Brazil to remain the largest
importer of urea globally despite reported farmer caution regarding
fertilizer purchases during this growing season as they evaluate
the potential impact of poor weather conditions on the upcoming
safrinha plantings.
- India: Management expects India to remain a significant
importer of urea in 2024 even as domestic production increases with
higher operating rates at its new nitrogen facilities. Imports of
urea in 2024 are projected to be in a range of 6.0-7.0 million
metric tons.
- Europe: Approximately 40% of ammonia and 25% of urea
capacity were reported in shutdown/curtailment in Europe as of
early January 2024 as high natural gas prices and lower global
nitrogen values continue to challenge production economics in the
region. Management believes that ammonia operating rates and
overall domestic nitrogen product output in Europe will remain
below historical averages over the long-term given the region’s
status as the global marginal producer. As a result, the Company
expects nitrogen imports of ammonia and upgraded products to the
region to be higher than historical averages.
- China: Management expects urea export controls and
inspections imposed by the Chinese government on domestic producers
to remain in place in 2024 in order to prioritize fertilizer
production for domestic consumption. The Company also anticipates
that the Chinese government will allow windows during the year that
will enable Chinese producers to export. Urea exports from China
are projected to be approximately 4 million metric tons for
2024.
- Trinidad: Ammonia production in Trinidad in recent years
has been approximately 1 million metric tons lower annually
compared to the 2018-2020 average. Management expects ammonia
production to remain below average due to anticipated higher
natural gas prices and lower natural gas availability in the
country for nitrogen producers.
- Russia: Exports of ammonia from Russia continue to
remain lower compared to prior years due to geopolitical
disruptions arising from Russia’s invasion of Ukraine and the
resulting closure of the ammonia pipeline from Russia to the port
of Odessa in Ukraine. Exports of other nitrogen products from
Russia are at pre-war levels, with product moving to countries
willing to purchase Russian fertilizer, including Brazil and the
United States.
Over the near- and medium-terms, significant energy cost
differentials between North American producers and high-cost
producers in Europe and Asia are expected to persist. As a result,
the Company believes the global nitrogen cost curve will remain
supportive of strong margin opportunities for low-cost North
American producers.
Longer-term, management expects the global nitrogen
supply-demand balance to tighten as global nitrogen capacity growth
over the next four years is not projected to keep pace with
expected global nitrogen demand growth of approximately 1.5% per
year. Global production is expected to be further constrained by
continued challenges related to cost and availability of natural
gas.
Strategic Initiatives Update
Donaldsonville Complex green ammonia project
CF Industries’ green ammonia project at its Donaldsonville
Complex in Louisiana, which involves installing an electrolysis
system to generate hydrogen from water that will then be supplied
to existing ammonia plants to produce ammonia, continues to
progress. The electrolysis system is mechanically complete and
commissioning activities are underway. At full capacity, the
project will enable the Company to produce approximately 20,000
tons of green ammonia per year. Green ammonia refers to ammonia
produced with hydrogen sourced through an electrolysis process that
produces no carbon emissions. This represents North America’s first
commercial-scale green ammonia capacity.
Donaldsonville Complex carbon capture and sequestration
project
Engineering activities for the construction of a dehydration and
compression unit at CF Industries’ Donaldsonville Complex continue
to advance, all major equipment for the facility has been procured,
and fabrication of the CO2 compressors is proceeding. Once in
service, the dehydration and compression unit will enable up to 2
million tons of captured process CO2 to be transported and
permanently stored by ExxonMobil. Start-up for the project is
scheduled for 2025, at which point CF Industries will be able to
produce significant volumes of low-carbon ammonia.
Certified natural gas purchase
CF Industries has entered into an agreement for 2024 with bp for
the purchase of 4.4 billion cubic feet of certified natural gas,
which is double its purchase in 2023. The certificates purchased by
CF Industries are issued by not-for-profit MiQ and certify that
certain natural gas produced by bp has a 90% lower methane
emissions intensity - the ratio of methane emissions to natural gas
produced - than the industry average. Methane emissions throughout
the natural gas supply chain are a significant contributor to the
lifecycle carbon intensity of ammonia production and the second
largest source of Scope 3 emissions for CF Industries.
___________________________________________________
(1)
Certain items recognized during the full
year and fourth quarter of 2023 impacted our financial results and
their comparability to the prior year period. See the table
accompanying this release for a summary of these items.
(2)
Financial results for full year and fourth
quarter of 2023 include the impact of CF Industries’ acquisition of
the Waggaman, Louisiana, ammonia production facility on December 1,
2023.
(3)
EBITDA is defined as net earnings
attributable to common stockholders plus interest expense—net,
income taxes and depreciation and amortization. See reconciliations
of EBITDA and adjusted EBITDA to the most directly comparable GAAP
measures in the tables accompanying this release.
(4)
Free cash flow is defined as net cash from
operating activities less capital expenditures and distributions to
noncontrolling interest. See reconciliation of free cash flow to
the most directly comparable GAAP measure in the table accompanying
this release.
Consolidated Results
Three months ended
December 31,
Year ended December
31,
2023
2022
2023
2022
(dollars in millions, except
per share and per MMBtu amounts)
Net sales
$
1,571
$
2,608
$
6,631
$
11,186
Cost of sales
1,070
1,352
4,086
5,325
Gross margin
$
501
$
1,256
$
2,545
$
5,861
Gross margin percentage
31.9
%
48.2
%
38.4
%
52.4
%
Net earnings attributable to common
stockholders
$
274
$
860
$
1,525
$
3,346
Net earnings per diluted share
$
1.44
$
4.35
$
7.87
$
16.38
EBITDA(1)
$
556
$
1,246
$
2,707
$
5,542
Adjusted EBITDA(1)
$
592
$
1,296
$
2,760
$
5,880
Tons of product sold (000s)
4,912
4,464
19,130
18,331
Natural gas supplemental data (per
MMBtu):
Natural gas costs in cost of sales(2)
$
2.79
$
6.55
$
3.26
$
7.16
Realized derivatives loss in cost of
sales(3)
0.22
0.33
0.41
0.02
Cost of natural gas used for production in
cost of sales
$
3.01
$
6.88
$
3.67
$
7.18
Average daily market price of natural gas
Henry Hub (Louisiana)
$
2.74
$
5.55
$
2.53
$
6.38
Unrealized net mark-to-market loss (gain)
on natural gas derivatives
$
26
$
80
$
(39
)
$
41
Depreciation and amortization
$
229
$
198
$
869
$
850
Capital expenditures
$
188
$
134
$
499
$
453
Production volume by product tons
(000s):
Ammonia(4)
2,525
2,441
9,496
9,807
Granular urea
1,130
1,143
4,544
4,561
UAN (32%)
1,840
1,827
6,852
6,706
AN
416
355
1,520
1,517
_______________________________________________________________________________
(1) See reconciliations of EBITDA and adjusted EBITDA to the most
directly comparable GAAP measures in the tables accompanying this
release. (2) Includes the cost of natural gas used for production
and related transportation that is included in cost of sales during
the period under the first-in, first-out inventory cost method.
Excludes unrealized mark-to-market gains and losses on natural gas
derivatives. (3) Includes realized gains and losses on natural gas
derivatives settled during the period. (4) Gross ammonia
production, including amounts subsequently upgraded on-site into
granular urea, UAN, or AN.
Ammonia Segment
CF Industries’ ammonia segment produces anhydrous ammonia
(ammonia), which is the base product that the Company manufactures,
containing 82 percent nitrogen and 18 percent hydrogen. The results
of the ammonia segment consist of sales of ammonia to external
customers for its nitrogen content as a fertilizer, in emissions
control and in other industrial applications. In addition, the
Company upgrades ammonia into other nitrogen products such as urea,
UAN and AN.
Three months ended
December 31,
Year ended December
31,
2023(1)
2022
2023(1)
2022
(dollars in millions, except
per ton amounts)
Net sales
$
495
$
804
$
1,679
$
3,090
Cost of sales
341
416
1,138
1,491
Gross margin
$
154
$
388
$
541
$
1,599
Gross margin percentage
31.1
%
48.3
%
32.2
%
51.7
%
Sales volume by product tons (000s)
1,077
895
3,546
3,300
Sales volume by nutrient tons
(000s)(2)
883
734
2,908
2,707
Average selling price per product ton
$
460
$
898
$
473
$
936
Average selling price per nutrient
ton(2)
561
1,095
577
1,141
Adjusted gross margin(3):
Gross margin
$
154
$
388
$
541
$
1,599
Depreciation and amortization
54
47
171
166
Unrealized net mark-to-market loss (gain)
on natural gas derivatives
8
19
(11
)
13
Adjusted gross margin
$
216
$
454
$
701
$
1,778
Adjusted gross margin as a percent of net
sales
43.6
%
56.5
%
41.8
%
57.5
%
Gross margin per product ton
$
143
$
434
$
153
$
485
Gross margin per nutrient ton(3)
174
529
186
591
Adjusted gross margin per product ton
201
507
198
539
Adjusted gross margin per nutrient
ton(3)
245
619
241
657
_______________________________________________________________________________
(1) Financial results for full year and
fourth quarter of 2023 include the impact of CF Industries’
acquisition of the Waggaman, Louisiana, ammonia production facility
on December 1, 2023.
(2) Nutrient tons represent the tons of
nitrogen within the product tons.
(3) Adjusted gross margin, adjusted gross
margin as a percent of net sales and adjusted gross margin per
product ton and per nutrient ton are non-GAAP financial measures.
Adjusted gross margin is defined as gross margin excluding
depreciation and amortization and unrealized net mark-to-market
(gain) loss on natural gas derivatives. A reconciliation of
adjusted gross margin, adjusted gross margin as a percent of net
sales and adjusted gross margin per product ton and per nutrient
ton to gross margin, the most directly comparable GAAP measure, is
provided in the table above. See “Note Regarding Non-GAAP Financial
Measures” in this release.
Comparison of 2023 to 2022:
- Ammonia sales volume for 2023 increased compared to 2022 due to
greater supply availability from higher starting inventory.
- Ammonia average selling prices decreased for 2023 compared to
2022 as lower global energy costs reduced the global market
clearing price required to meet global demand.
- Ammonia adjusted gross margin per ton decreased for 2023
compared to 2022 due primarily to lower average selling prices
partially offset by lower realized natural gas costs.
Granular Urea Segment
CF Industries’ granular urea segment produces granular urea,
which contains 46 percent nitrogen. Produced from ammonia and
carbon dioxide, it has the highest nitrogen content of any of the
Company’s solid nitrogen products.
Three months ended
December 31,
Year ended December
31,
2023
2022
2023
2022
(dollars in millions, except
per ton amounts)
Net sales
$
392
$
605
$
1,823
$
2,892
Cost of sales
235
304
1,010
1,328
Gross margin
$
157
$
301
$
813
$
1,564
Gross margin percentage
40.1
%
49.8
%
44.6
%
54.1
%
Sales volume by product tons (000s)
1,038
1,033
4,570
4,572
Sales volume by nutrient tons
(000s)(1)
477
475
2,102
2,103
Average selling price per product ton
$
378
$
586
$
399
$
633
Average selling price per nutrient
ton(1)
822
1,274
867
1,375
Adjusted gross margin(2):
Gross margin
$
157
$
301
$
813
$
1,564
Depreciation and amortization
69
59
285
272
Unrealized net mark-to-market loss (gain)
on natural gas derivatives
7
17
(11
)
13
Adjusted gross margin
$
233
$
377
$
1,087
$
1,849
Adjusted gross margin as a percent of net
sales
59.4
%
62.3
%
59.6
%
63.9
%
Gross margin per product ton
$
151
$
291
$
178
$
342
Gross margin per nutrient ton(1)
329
634
387
744
Adjusted gross margin per product ton
224
365
238
404
Adjusted gross margin per nutrient
ton(1)
488
794
517
879
_______________________________________________________________________________
(1) Nutrient tons represent the tons of
nitrogen within the product tons.
(2) Adjusted gross margin, adjusted gross
margin as a percent of net sales and adjusted gross margin per
product ton and per nutrient ton are non-GAAP financial measures.
Adjusted gross margin is defined as gross margin excluding
depreciation and amortization and unrealized net mark-to-market
(gain) loss on natural gas derivatives. A reconciliation of
adjusted gross margin, adjusted gross margin as a percent of net
sales and adjusted gross margin per product ton and per nutrient
ton to gross margin, the most directly comparable GAAP measure, is
provided in the table above. See “Note Regarding Non-GAAP Financial
Measures” in this release.
Comparison of 2023 to 2022:
- Granular urea sales volumes for 2023 approximated 2022 sales
volumes.
- Urea average selling prices decreased for 2023 compared to 2022
as lower global energy costs reduced the global market clearing
price required to meet global demand.
- Granular urea adjusted gross margin per ton decreased for 2023
compared to 2022 due primarily to lower average selling prices
partially offset by lower realized natural gas costs.
UAN Segment
CF Industries’ UAN segment produces urea ammonium nitrate
solution (UAN). UAN is a liquid product with nitrogen content that
typically ranges from 28 percent to 32 percent and is produced by
combining urea and ammonium nitrate in solution.
Three months ended
December 31,
Year ended December
31,
2023
2022
2023
2022
(dollars in millions, except
per ton amounts)
Net sales
$
418
$
845
$
2,068
$
3,572
Cost of sales
314
387
1,251
1,489
Gross margin
$
104
$
458
$
817
$
2,083
Gross margin percentage
24.9
%
54.2
%
39.5
%
58.3
%
Sales volume by product tons (000s)
1,812
1,690
7,237
6,788
Sales volume by nutrient tons
(000s)(1)
573
538
2,283
2,148
Average selling price per product ton
$
231
$
500
$
286
$
526
Average selling price per nutrient
ton(1)
729
1,571
906
1,663
Adjusted gross margin(2):
Gross margin
$
104
$
458
$
817
$
2,083
Depreciation and amortization
74
61
288
269
Unrealized net mark-to-market loss (gain)
on natural gas derivatives
7
18
(11
)
14
Adjusted gross margin
$
185
$
537
$
1,094
$
2,366
Adjusted gross margin as a percent of net
sales
44.3
%
63.6
%
52.9
%
66.2
%
Gross margin per product ton
$
57
$
271
$
113
$
307
Gross margin per nutrient ton(1)
182
851
358
970
Adjusted gross margin per product ton
102
318
151
349
Adjusted gross margin per nutrient
ton(1)
323
998
479
1,101
_______________________________________________________________________________
(1) Nutrient tons represent the tons of
nitrogen within the product tons.
(2) Adjusted gross margin, adjusted gross
margin as a percent of net sales and adjusted gross margin per
product ton and per nutrient ton are non-GAAP financial measures.
Adjusted gross margin is defined as gross margin excluding
depreciation and amortization and unrealized net mark-to-market
(gain) loss on natural gas derivatives. A reconciliation of
adjusted gross margin, adjusted gross margin as a percent of net
sales and adjusted gross margin per product ton and per nutrient
ton to gross margin, the most directly comparable GAAP measure, is
provided in the table above. See “Note Regarding Non-GAAP Financial
Measures” in this release.
Comparison of 2023 to 2022:
- UAN sales volumes for 2023 increased compared to 2022 sales
volumes due to strong customer participation in the Company’s
post-application season fill program as well as higher supply
availability from higher production.
- UAN average selling prices decreased for 2023 compared to 2022
as lower global energy costs reduced the global market clearing
price required to meet global demand.
- UAN adjusted gross margin per ton decreased for 2023 compared
to 2022 due primarily to lower average selling prices partially
offset by lower realized natural gas costs.
AN Segment
CF Industries’ AN segment produces ammonium nitrate (AN). AN is
used as a nitrogen fertilizer with nitrogen content between 29
percent to 35 percent, and also is used by industrial customers for
commercial explosives and blasting systems.
Three months ended
December 31,
Year ended December
31,
2023
2022
2023
2022
(dollars in millions, except
per ton amounts)
Net sales
$
120
$
189
$
497
$
845
Cost of sales
95
139
359
597
Gross margin
$
25
$
50
$
138
$
248
Gross margin percentage
20.8
%
26.5
%
27.8
%
29.3
%
Sales volume by product tons (000s)
414
367
1,571
1,594
Sales volume by nutrient tons
(000s)(1)
142
126
538
545
Average selling price per product ton
$
290
$
515
$
316
$
530
Average selling price per nutrient
ton(1)
845
1,500
924
1,550
Adjusted gross margin(2):
Gross margin
$
25
$
50
$
138
$
248
Depreciation and amortization
12
13
48
61
Unrealized net mark-to-market loss (gain)
on natural gas derivatives
1
16
(2
)
(2
)
Adjusted gross margin
$
38
$
79
$
184
$
307
Adjusted gross margin as a percent of net
sales
31.7
%
41.8
%
37.0
%
36.3
%
Gross margin per product ton
$
60
$
136
$
88
$
156
Gross margin per nutrient ton(1)
176
397
257
455
Adjusted gross margin per product ton
92
215
117
193
Adjusted gross margin per nutrient
ton(1)
268
627
342
563
_______________________________________________________________________________
(1) Nutrient tons represent the tons of
nitrogen within the product tons.
(2) Adjusted gross margin, adjusted gross
margin as a percent of net sales and adjusted gross margin per
product ton and per nutrient ton are non-GAAP financial measures.
Adjusted gross margin is defined as gross margin excluding
depreciation and amortization and unrealized net mark-to-market
(gain) loss on natural gas derivatives. A reconciliation of
adjusted gross margin, adjusted gross margin as a percent of net
sales and adjusted gross margin per product ton and per nutrient
ton to gross margin, the most directly comparable GAAP measure, is
provided in the table above. See “Note Regarding Non-GAAP Financial
Measures” in this release.
Comparison of 2023 to 2022:
- AN sales volume for 2023 approximated 2022 sales volumes.
- AN average selling prices for 2023 decreased compared to 2022
as lower global energy costs reduced the global market clearing
price required to meet global demand.
- AN adjusted gross margin per ton decreased for 2023 compared to
2022 due to lower average selling prices partially offset by the
lower cost of importing ammonia for AN production in the U.K.
during the year compared to the cost of producing ammonia
domestically in the U.K in 2022 and lower realized natural gas
costs in North America.
Other Segment
CF Industries’ Other segment includes diesel exhaust fluid
(DEF), urea liquor and nitric acid.
Three months ended
December 31,
Year ended December
31,
2023
2022
2023
2022
(dollars in millions, except
per ton amounts)
Net sales
$
146
$
165
$
564
$
787
Cost of sales
85
106
328
420
Gross margin
$
61
$
59
$
236
$
367
Gross margin percentage
41.8
%
35.8
%
41.8
%
46.6
%
Sales volume by product tons (000s)
571
479
2,206
2,077
Sales volume by nutrient tons
(000s)(1)
113
95
434
408
Average selling price per product ton
$
256
$
344
$
256
$
379
Average selling price per nutrient
ton(1)
1,292
1,737
1,300
1,929
Adjusted gross margin(2):
Gross margin
$
61
$
59
$
236
$
367
Depreciation and amortization
16
14
64
67
Unrealized net mark-to-market loss (gain)
on natural gas derivatives
3
10
(4
)
3
Adjusted gross margin
$
80
$
83
$
296
$
437
Adjusted gross margin as a percent of net
sales
54.8
%
50.3
%
52.5
%
55.5
%
Gross margin per product ton
$
107
$
123
$
107
$
177
Gross margin per nutrient ton(1)
540
621
544
900
Adjusted gross margin per product ton
140
173
134
210
Adjusted gross margin per nutrient
ton(1)
708
874
682
1,071
_______________________________________________________________________________
(1) Nutrient tons represent the tons of
nitrogen within the product tons.
(2) Adjusted gross margin, adjusted gross
margin as a percent of net sales and adjusted gross margin per
product ton and per nutrient ton are non-GAAP financial measures.
Adjusted gross margin is defined as gross margin excluding
depreciation and amortization and unrealized net mark-to-market
(gain) loss on natural gas derivatives. A reconciliation of
adjusted gross margin, adjusted gross margin as a percent of net
sales and adjusted gross margin per product ton and per nutrient
ton to gross margin, the most directly comparable GAAP measure, is
provided in the table above. See “Note Regarding Non-GAAP Financial
Measures” in this release.
Comparison of 2023 to 2022:
- Other sales volume for 2023 increased compared to 2022 sales
volumes due primarily to higher DEF sales volumes.
- Other average selling prices for 2023 decreased compared to
2022 as lower global energy costs reduced the global market
clearing price required to meet global demand.
- Other adjusted gross margin per ton decreased for 2023 compared
to 2022 due primarily to lower average selling prices partially
offset by lower realized natural gas costs.
Dividend Payment
On January 31, 2024, CF Industries’ Board of Directors declared
a quarterly dividend of $0.50 per common share. The dividend will
be paid on February 29, 2024 to stockholders of record as of
February 15, 2024.
Conference Call
CF Industries will hold a conference call to discuss its full
year and fourth quarter 2023 results at 10:00 a.m. ET on Thursday,
February 15, 2024. This conference call will include discussion of
CF Industries’ business environment and outlook. 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.
At CF Industries, our mission is to provide clean energy to feed
and fuel the world sustainably. With our employees focused on safe
and reliable operations, environmental stewardship, and disciplined
capital and corporate management, we are on a path to decarbonize
our ammonia production network – the world’s largest – to enable
green and blue hydrogen and nitrogen products for energy,
fertilizer, emissions abatement and other industrial activities.
Our manufacturing complexes in the United States, Canada, and the
United Kingdom, an unparalleled storage, transportation and
distribution network in North America, and logistics capabilities
enabling a global reach underpin our strategy to leverage our
unique capabilities to accelerate the world’s transition to clean
energy. 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, EBITDA per ton, adjusted EBITDA, adjusted
EBITDA per ton, free cash flow, and, on a segment basis, adjusted
gross margin, adjusted gross margin as a percent of net sales and
adjusted gross margin per product ton and per nutrient ton, which
are non-GAAP financial measures, provide additional meaningful
information regarding the Company’s performance and financial
strength. Management uses these measures, and believes they are
useful to investors, as supplemental financial measures in the
comparison of year-over-year 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, EBITDA per ton, adjusted EBITDA, adjusted
EBITDA per ton, free cash flow, adjusted gross margin, adjusted
gross margin as a percent of net sales and adjusted gross margin
per product ton and per nutrient ton, included in this release may
not be comparable to similarly titled measures of other companies.
Reconciliations of EBITDA, EBITDA per ton, adjusted EBITDA,
adjusted EBITDA per ton, and free cash flow to the most directly
comparable GAAP measures are provided in the tables accompanying
this release under “CF Industries Holdings, Inc.-Selected Financial
Information-Non-GAAP Disclosure Items.” Reconciliations of adjusted
gross margin, adjusted gross margin as a percent of net sales and
adjusted gross margin per product ton and per nutrient ton to the
most directly comparable GAAP measures are provided in the segment
tables included in this release.
Safe Harbor Statement
All statements in this communication by CF Industries Holdings,
Inc. (together with its subsidiaries, the “Company”), other than
those relating to historical facts, are forward-looking statements.
Forward-looking statements can generally be identified by their use
of terms such as “anticipate,” “believe,” “could,” “estimate,”
“expect,” “intend,” “may,” “plan,” “predict,” “project,” “will” or
“would” and similar terms and phrases, including references to
assumptions. 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 the Company’s
control, which could cause actual results to differ materially from
such statements. These statements may include, but are not limited
to, statements about the synergies and other benefits, and other
aspects of the transactions with Incitec Pivot Limited (“IPL”),
strategic plans and management’s expectations with respect to the
production of green and blue (low-carbon) ammonia, the development
of carbon capture and sequestration projects, the transition to and
growth of a hydrogen economy, greenhouse gas reduction targets,
projected capital expenditures, statements about future financial
and operating results, and other items described in this
communication.
Important factors that could cause actual results to differ
materially from those in the forward-looking statements include,
among others, the risk of obstacles to realization of the benefits
of the transactions with IPL; the risk that the synergies from the
transactions with IPL may not be fully realized or may take longer
to realize than expected; the risk that the completion of the
transactions with IPL, including integration of the Waggaman
ammonia production complex into the Company’s operations, disrupt
current operations or harm relationships with customers, employees
and suppliers; the risk that integration of the Waggaman ammonia
production complex with the Company’s current operations will be
more costly or difficult than expected or may otherwise be
unsuccessful; diversion of management time and attention to issues
relating to the transactions with IPL; unanticipated costs or
liabilities associated with the IPL transactions; the cyclical
nature of the Company’s business and the impact of global supply
and demand on the Company’s selling prices; the global commodity
nature of the Company’s nitrogen products, the conditions in the
international market for nitrogen products, and the intense global
competition from other producers; conditions in the United States,
Europe and other agricultural areas, including the influence of
governmental policies and technological developments on the demand
for our fertilizer products; the volatility of natural gas prices
in North America and the United Kingdom; weather conditions and the
impact of adverse weather events; the seasonality of the fertilizer
business; the impact of changing market conditions on the Company’s
forward sales programs; difficulties in securing the supply and
delivery of raw materials, increases in their costs or delays or
interruptions in their delivery; reliance on third party providers
of transportation services and equipment; the Company’s reliance on
a limited number of key facilities; risks associated with
cybersecurity; acts of terrorism and regulations to combat
terrorism; risks associated with international operations; the
significant risks and hazards involved in producing and handling
the Company’s products against which the Company may not be fully
insured; the Company’s ability to manage its indebtedness and any
additional indebtedness that may be incurred; the Company’s ability
to maintain compliance with covenants under its revolving credit
agreement and the agreements governing its indebtedness; downgrades
of the Company’s credit ratings; risks associated with changes in
tax laws and disagreements with taxing authorities; risks involving
derivatives and the effectiveness of the Company’s risk management
and hedging activities; potential liabilities and expenditures
related to environmental, health and safety laws and regulations
and permitting requirements; regulatory restrictions and
requirements related to greenhouse gas emissions; the development
and growth of the market for green and blue (low-carbon) ammonia
and the risks and uncertainties relating to the development and
implementation of the Company’s green and blue ammonia projects;
risks associated with expansions of the Company’s business,
including unanticipated adverse consequences and the significant
resources that could be required; and risks associated with the
operation or management of the strategic venture with CHS (the “CHS
Strategic Venture”), risks and uncertainties relating to the market
prices of the fertilizer products that are the subject of the
supply agreement with CHS over the life of the supply agreement,
and the risk that any challenges related to the CHS Strategic
Venture will harm the Company’s other business relationships.
More detailed information about factors that may affect the
Company’s performance and could cause actual results to differ
materially from those in any forward-looking statements may be
found in CF Industries Holdings, Inc.’s filings with the Securities
and Exchange Commission, including CF Industries Holdings, Inc.’s
most recent annual and quarterly reports on Form 10-K and Form
10-Q, which are available in the Investor Relations section of the
Company’s web site. It is not possible to predict or identify all
risks and uncertainties that might affect the accuracy of our
forward-looking statements and, consequently, our descriptions of
such risks and uncertainties should not be considered exhaustive.
There is no guarantee that any of the events, plans or goals
anticipated by these forward-looking statements will occur, and if
any of the events do occur, there is no guarantee what effect they
will have on our business, results of operations, cash flows,
financial condition and future prospects. Forward-looking
statements are given only as of the date of this communication and
the Company disclaims any obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
CF INDUSTRIES HOLDINGS,
INC.
SELECTED FINANCIAL
INFORMATION
CONSOLIDATED STATEMENTS OF
OPERATIONS
Three months ended
December 31,
Year ended December
31,
2023
2022
2023
2022
(in millions, except per share
amounts)
Net sales
$
1,571
$
2,608
$
6,631
$
11,186
Cost of sales
1,070
1,352
4,086
5,325
Gross margin
501
1,256
2,545
5,861
Selling, general and administrative
expenses
76
87
289
290
U.K. long-lived and intangible asset
impairment
—
—
—
239
U.K. operations restructuring
3
1
10
19
Acquisition and integration costs
12
—
39
—
Other operating—net
(12
)
(23
)
(31
)
10
Total other operating costs and
expenses
79
65
307
558
Equity in earnings (loss) of operating
affiliate
4
20
(8
)
94
Operating earnings
426
1,211
2,230
5,397
Interest expense
35
(25
)
150
344
Interest income
(43
)
(9
)
(158
)
(65
)
Loss on debt extinguishment
—
—
—
8
Other non-operating—net
(2
)
(9
)
(10
)
15
Earnings before income taxes
436
1,254
2,248
5,095
Income tax provision
84
245
410
1,158
Net earnings
352
1,009
1,838
3,937
Less: Net earnings attributable to
noncontrolling interest
78
149
313
591
Net earnings attributable to common
stockholders
$
274
$
860
$
1,525
$
3,346
Net earnings per share attributable to
common stockholders:
Basic
$
1.44
$
4.37
$
7.89
$
16.45
Diluted
$
1.44
$
4.35
$
7.87
$
16.38
Weighted-average common shares
outstanding:
Basic
190.1
196.6
193.3
203.3
Diluted
190.6
197.4
193.8
204.2
CF INDUSTRIES HOLDINGS,
INC.
SELECTED FINANCIAL
INFORMATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
December 31,
2023
December 31,
2022
(in millions)
Assets
Current assets:
Cash and cash equivalents
$
2,032
$
2,323
Accounts receivable—net
505
582
Inventories
299
474
Prepaid income taxes
167
215
Other current assets
47
79
Total current assets
3,050
3,673
Property, plant and equipment—net
7,141
6,437
Investment in affiliate
26
74
Goodwill
2,495
2,089
Operating lease right-of-use assets
259
254
Other assets
867
771
Total assets
$
14,376
$
13,313
Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses
$
520
$
575
Income taxes payable
12
3
Customer advances
130
229
Current operating lease liabilities
96
93
Other current liabilities
42
95
Total current liabilities
800
995
Long-term debt
2,968
2,965
Deferred income taxes
999
958
Operating lease liabilities
168
167
Supply contract liability
754
—
Other liabilities
314
375
Equity:
Stockholders’ equity
5,717
5,051
Noncontrolling interest
2,656
2,802
Total equity
8,373
7,853
Total liabilities and equity
$
14,376
$
13,313
CF INDUSTRIES HOLDINGS,
INC.
SELECTED FINANCIAL
INFORMATION
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Three months ended
December 31,
Year ended December
31,
2023
2022
2023
2022
(in millions)
Operating Activities:
Net earnings
$
352
$
1,009
$
1,838
$
3,937
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization
229
198
869
850
Deferred income taxes
154
(100
)
81
(107
)
Stock-based compensation expense
8
9
37
41
Loss on debt extinguishment
—
—
—
8
Unrealized net loss (gain) on natural gas
derivatives
26
80
(39
)
41
Impairment of equity method investment in
PLNL
—
—
43
—
Gain on embedded derivative
—
(14
)
—
(14
)
U.K. long-lived and intangible asset
impairment
—
—
—
239
Pension settlement loss and curtailment
gains
—
(7
)
—
17
Gain on sale of emission credits
—
—
(39
)
(6
)
Loss on disposal of property, plant and
equipment
—
1
4
2
Undistributed losses (earnings) of
affiliate—net of taxes
5
9
3
(1
)
Changes in assets and liabilities, net of
acquisition:
Accounts receivable—net
(65
)
135
100
(110
)
Inventories
22
38
152
(93
)
Accrued and prepaid income taxes
(101
)
(59
)
(44
)
(227
)
Accounts payable and accrued expenses
28
(110
)
(88
)
1
Customer advances
(153
)
(283
)
(100
)
(471
)
Other—net
(25
)
(321
)
(60
)
(252
)
Net cash provided by operating
activities
480
585
2,757
3,855
Investing Activities:
Additions to property, plant and
equipment
(188
)
(134
)
(499
)
(453
)
Proceeds from sale of property, plant and
equipment
—
—
1
1
Purchase of Waggaman ammonia production
facility
(1,223
)
—
(1,223
)
—
Distributions received from unconsolidated
affiliate
—
2
—
6
Purchase of investments held in
nonqualified employee benefit trust
(1
)
—
(1
)
(1
)
Proceeds from sale of investments held in
nonqualified employee benefit trust
1
—
1
1
Purchase of emission credits
(2
)
—
(2
)
(9
)
Proceeds from sale of emission credits
—
—
39
15
Other—net
5
—
5
—
Net cash used in investing activities
(1,408
)
(132
)
(1,679
)
(440
)
CF INDUSTRIES HOLDINGS,
INC.
SELECTED FINANCIAL
INFORMATION
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(continued)
Three months ended
December 31,
Year ended December
31,
2023
2022
2023
2022
(in millions)
Financing Activities:
Payments of long-term borrowings
—
—
—
(507
)
Financing fees
(2
)
—
(2
)
(4
)
Dividends paid
(76
)
(79
)
(311
)
(306
)
Distributions to noncontrolling
interest
—
—
(459
)
(619
)
Purchases of treasury stock
(225
)
(251
)
(580
)
(1,347
)
Proceeds from issuances of common stock
under employee stock plans
1
—
2
106
Cash paid for shares withheld for
taxes
—
—
(22
)
(23
)
Net cash used in financing activities
(302
)
(330
)
(1,372
)
(2,700
)
Effect of exchange rate changes on cash
and cash equivalents
8
8
3
(20
)
(Decrease) increase in cash and cash
equivalents
(1,222
)
131
(291
)
695
Cash and cash equivalents at beginning of
period
3,254
2,192
2,323
1,628
Cash and cash equivalents at end of
period
$
2,032
$
2,323
$
2,032
$
2,323
CF INDUSTRIES HOLDINGS, INC. SELECTED
FINANCIAL INFORMATION NON-GAAP DISCLOSURE ITEMS
Reconciliation of net cash provided by operating activities
(GAAP measure) to free cash flow (non-GAAP measure):
Free cash flow is defined as net cash provided by operating
activities, as stated in the consolidated statements of cash flows,
reduced by capital expenditures and distributions to noncontrolling
interest. The Company has presented free cash flow because
management uses this measure and believes it is useful to
investors, as an indication of the strength of the Company and its
ability to generate cash and to evaluate the Company’s cash
generation ability relative to its industry competitors. It should
not be inferred that the entire free cash flow amount is available
for discretionary expenditures.
Year ended December
31,
2023
2022
(in millions)
Net cash provided by operating
activities(1)
$
2,757
$
3,855
Capital expenditures
(499
)
(453
)
Distributions to noncontrolling
interest
(459
)
(619
)
Free cash flow(1)
$
1,799
$
2,783
_______________________________________________________________________________
(1) For the year ended December 31, 2022,
net cash provided by operating activities and free cash flow
includes the impact of $491 million in tax and interest payments
made to Canadian tax authorities in relation to an arbitration
decision covering tax years 2006 through 2011 and transfer pricing
positions between Canada and the United States for open years 2012
and after. The Company has filed amended tax returns in the U.S.
seeking refunds of related taxes paid.
CF INDUSTRIES HOLDINGS, INC. SELECTED
FINANCIAL INFORMATION NON-GAAP DISCLOSURE ITEMS
(CONTINUED)
Reconciliation of net earnings attributable to common
stockholders and net earnings attributable to common stockholders
per ton (GAAP measures) to EBITDA, EBITDA per ton, adjusted EBITDA
and adjusted EBITDA per ton (non-GAAP measures), as
applicable:
EBITDA is defined as net earnings attributable to common
stockholders plus interest expense—net, income taxes and
depreciation 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.
The Company has presented EBITDA and EBITDA per ton because
management uses these measures to track performance and believes
that they are frequently used by securities analysts, investors and
other interested parties in the evaluation of companies in the
industry.
Adjusted EBITDA is defined as EBITDA adjusted with the selected
items as summarized in the table below. The Company has presented
adjusted EBITDA and adjusted EBITDA per ton because management uses
these measures, and believes they are useful to investors, as
supplemental financial measures in the comparison of year-over-year
performance.
Three months ended
December 31,
Year ended December
31,
2023
2022
2023
2022
(in millions)
Net earnings
$
352
$
1,009
$
1,838
$
3,937
Less: Net earnings attributable to
noncontrolling interest
(78
)
(149
)
(313
)
(591
)
Net earnings attributable to common
stockholders
274
860
1,525
3,346
Interest (income) expense—net
(8
)
(34
)
(8
)
279
Income tax provision
84
245
410
1,158
Depreciation and amortization
229
198
869
850
Less other adjustments:
Depreciation and amortization in
noncontrolling interest
(22
)
(22
)
(85
)
(87
)
Loan fee amortization(1)
(1
)
(1
)
(4
)
(4
)
EBITDA
556
1,246
2,707
5,542
Unrealized net mark-to-market loss (gain)
on natural gas derivatives
26
80
(39
)
41
(Gain) loss on foreign currency
transactions, including intercompany loans
(5
)
(10
)
—
28
U.K. long-lived and intangible asset
impairment
—
—
—
239
U.K. operations restructuring
3
1
10
19
Acquisition and integration costs
12
—
39
—
Impairment of equity method investment in
PLNL
—
—
43
—
Pension settlement loss and curtailment
gains—net
—
(7
)
—
17
Unrealized gain on embedded derivative
—
(14
)
—
(14
)
Loss on debt extinguishment
—
—
—
8
Total adjustments
36
50
53
338
Adjusted EBITDA
$
592
$
1,296
$
2,760
$
5,880
Net sales
$
1,571
$
2,608
$
6,631
$
11,186
Tons of product sold (000s)
4,912
4,464
19,130
18,331
Net earnings attributable to common
stockholders per ton
$
55.78
$
192.65
$
79.72
$
182.53
EBITDA per ton
$
113.19
$
279.12
$
141.51
$
302.33
Adjusted EBITDA per ton
$
120.52
$
290.32
$
144.28
$
320.77
_______________________________________________________________________________
(1) Loan fee amortization is included in
both interest expense—net and depreciation and amortization.
CF INDUSTRIES HOLDINGS, INC. SELECTED
FINANCIAL INFORMATION ITEMS AFFECTING COMPARABILITY
During the three months and year ended December 31, 2023 and
2022, certain items impacted our financial results. The following
table outlines these items that affected the comparability of our
financial results during these periods. During the three months
ended December 31, 2023 and 2022, we reported net earnings
attributable to common stockholders of $274 million and $860
million, respectively. During the year ended December 31, 2023 and
2022, we reported net earnings attributable to common stockholders
of $1.53 billion and $3.35 billion, respectively.
Three months ended
December 31,
Year ended December
31,
2023
2022
2023
2022
Pre-Tax
After-Tax
Pre-Tax
After-Tax
Pre-Tax
After-Tax
Pre-Tax
After-Tax
(in millions)
Unrealized net mark-to-market loss (gain)
on natural gas derivatives(1)
$
26
$
20
$
80
$
62
$
(39
)
$
(30
)
$
41
$
31
(Gain) loss on foreign currency
transactions, including intercompany loans(2)
(5
)
(4
)
(10
)
(8
)
—
—
28
21
Unrealized gain on embedded derivative
liability(2)(3)
—
—
(14
)
(11
)
—
—
(14
)
(11
)
U.K. operations:
U.K. long-lived and intangible asset
impairment
—
—
—
—
—
—
239
180
U.K. operations restructuring
3
2
1
—
10
8
19
14
Acquisition and integration costs
12
9
—
—
39
29
—
—
Impairment of equity method investment in
PLNL(4)
—
—
—
—
43
32
—
—
Pension settlement loss and curtailment
gains—net(5)
—
—
(7
)
(5
)
—
—
17
13
Canada Revenue Agency Competent Authority
Matter and transfer pricing reserves:
Interest expense
—
—
(64
)
(64
)
—
—
170
168
Interest income
—
—
12
9
—
—
(29
)
(22
)
Income tax provision(6)
—
—
—
11
—
—
—
65
Loss on debt extinguishment
—
—
—
—
—
—
8
6
_______________________________________________________________________________
(1) Included in cost of sales in our
consolidated statements of operations.
(2) Included in other operating—net in our
consolidated statements of operations.
(3) For the three months and year ended
December 31, 2022, as a result of upgrades to our credit rating, we
recognized an unrealized gain of $14 million due to a reduction in
the fair value of an embedded derivative liability related to the
terms of our strategic venture with CHS.
(4) Included in equity in earnings (loss)
of operating affiliate in our consolidated statements of
operations.
(5) Included in other non-operating—net in
our consolidated statements of operations.
(6) For the three months ended December
31, 2022, amount represents the combined impact of these tax
matters of $8 million of income tax provision plus $3 million of
income tax provision on the related interest. For the year ended
December 31, 2022, amount represents the combined impact of these
tax matters of $70 million less a net $5 million of income tax
provision on the related interest.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240214401228/en/
Media Chris Close Senior Director, Corporate
Communications 847-405-2542 - cclose@cfindustries.com
Investors Darla Rivera Director, Investor Relations
847-405-2045 - darla.rivera@cfindustries.com
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