Benzinga  Jun 16  Comment 
UBS has cut the estimates and price target of CF Industries Holdings, Inc. (NYSE: CF) to reflect the OCI Partners LP (NYSE: OCIP) merger deal termination and slightly lower nitrogen prices. UBS slashed its 2016/2017 EPS estimate to $1.85/2.10...
Forbes  Jun 14  Comment 
In afternoon trading on Tuesday, Materials stocks are the worst performing sector, showing a 1.3% loss. Within that group, CF Industries Holdings Inc (NYSE: CF) and Owens-Illinois, Inc. (NYSE: OI) are two of the day's laggards, showing a loss of...
Motley Fool  Jun 10  Comment 
Just when investors thought things couldn't deteriorate further for the fertilizer industry, the month of May arrived.
Benzinga  Jun 7  Comment 
Shares of CF Industries Holdings, Inc. (NYSE: CF) have rallied more than 2 percent Tuesday following an earlier upgrade to Buy via CLSA's Mark Connelly. CF shares have moved about 15 percent since the start of June. Connelly boosted his price...
Motley Fool  Jun 6  Comment 
These stocks helped lead the market higher. Find out why.
Benzinga  Jun 3  Comment 
Goldman Sachs’ Adam Samuelson believes that the risk/reward for CF Industries Holdings, Inc. (NYSE: CF) is balanced at present, given “persistent uncertainty on the global urea cost curve and near-term oversupply concerns as NA capacity...
Agrimoney.com  May 25  Comment 
A US government clamp-down on tax inversion is removing some of the incentives for ag-sector mergers
Motley Fool  May 24  Comment 
Even though the market soared today, these stocks fell. Find out why.
Forbes  May 24  Comment 
Looking at the sectors faring worst as of midday Tuesday, shares of Materials companies are underperforming other sectors, up 0.3%. Within that group, CF Industries Holdings Inc (NYSE: CF) and Newmont Mining Corp (NYSE: NEM) are two large stocks...


The company is one of the largest manufacturers and distributors of nitrogen and phosphate fertilizer products in North America. The company's operations are organized into two business segments: the nitrogen fertilizer business and the phosphate fertilizer business. The company's principal products in the nitrogen fertilizer business are ammonia, urea and urea ammonium nitrate solution (UAN). The company's principal products in the phosphate fertilizer business are diammonium phosphate (DAP) and monoammonium phosphate (MAP). The company supplies approximately 24% of the nitrogen and approximately 12% of the phosphate used in agricultural fertilizer applications in the United States. North America accounts for 91% of CF's sales


CF is a leader in US nitrogen. The company has one of the highest market shares in the US corn-belt (30% nitrogen, 17% phosphate) making CF the closest pure-play on potential growth in US corn acres tied to corn use for ethanol production. CF is the second largest nitrogen producer in North America with 3.6m tons of ammonia and 2.5m tons of urea capacity. CF is the #3 producer of phosphate fertilizer in North America based on 1m tons of phosphoric acid capacity in Florida. CF Industries is a leading US producer and distributor of nitrogen (75% of sales) and phosphate (25% of sales) fertilizers. The company has a 23% share of the total US nitrogen market and a 12% share of US phosphates.

Phosphate prices are strong due to low stocks, new demand for corn (from ethanol), that has created the largest corn crop since 1944 and significantly in creased acreage and fertilizer application rates. The phosphate market will remain tight next year based on healthy offshore demand growth in India and Brazil and higher application rates in the US. This is likely to lead to higher price and cash margins for various fertilizers. The Phosphate producers have better producer discipline and price leadership by Mosaic under a new team, no new mines until 2011 and offshore demand growth in India, Brazil and Australia.


Natural gas is the principal raw material, as well as the primary fuel source, used in the ammonia production process. Natural gas purchases accounted for approximately 54% of the total cost of sales for nitrogen fertilizers and a substantially higher percentage of cash production costs. The market price for natural gas in North America is significantly higher than the price of natural gas in other major fertilizer-producing regions. For example, during 2006, natural gas prices in the United States averaged approximately $6.74 per MMBtu and in Canada averaged approximately $5.76 per MMBtu. In comparison, during 2006, natural gas prices paid by fertilizer producers are estimated to have been approximately $1.25 per MMBtu in Russia and approximately $2.65 per MMBtu in the Republic of Trinidad and Tobago. A $1.00 per MMBtu change in the price of natural gas would change the cost to produce a ton of ammonia by approximately $33.

Customer concentration is high, as well. Three customers, Agriliance, GROWMARK, Inc., and ConAgra International Fertilizer Company made combined fertilizer purchases of approximately $944.0 million, representing approximately 48% of total net sales.


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