INSERTING and REPLACING CF Industries Holdings, Inc. Reports Full Year 2023 Net Earnings of $1.53 Billion, Adjusted EBITDA of $2.76 Billion
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
The updated release reads:
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
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 onDecember 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 inLouisiana -
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
Update on Proposed Greenfield Low-Carbon Ammonia Plant at CF Industries’
In the fourth quarter of 2023,
Operations Overview
The Company continues to operate safely and efficiently across its network. As of
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
Financial Results Overview
Full Year 2023 Financial Results
For the full year 2023, net earnings attributable to common stockholders were
Net sales for the full year 2023 were
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
Fourth Quarter 2023 Financial Results
For the fourth quarter of 2023, net earnings attributable to common stockholders were
Net sales in the fourth quarter of 2023 were
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
Capital Management
Acquisition of
On
Capital Expenditures
Capital expenditures in the fourth quarter and full year 2023 were
Share Repurchase Program
The Company repurchased approximately 7.9 million shares for
Quarterly Dividend
On
CHS Inc. Distribution
On
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 inthe 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 inNorth America for the spring 2024 application season to remain strong. -
Brazil : Imports of urea intoBrazil totaled 7.3 million metric tons in 2023, an increase of approximately 3% year-over-year. Management expectsBrazil 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 expectsIndia 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 inEurope as of earlyJanuary 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 inEurope 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 fromChina are projected to be approximately 4 million metric tons for 2024. -
Trinidad : Ammonia production inTrinidad 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 fromRussia continue to remain lower compared to prior years due to geopolitical disruptions arising from Russia’s invasion ofUkraine and the resulting closure of the ammonia pipeline fromRussia to the port of Odessa inUkraine . Exports of other nitrogen products fromRussia are at pre-war levels, with product moving to countries willing to purchase Russian fertilizer, includingBrazil andthe United States .
Over the near- and medium-terms, significant energy cost differentials between North American producers and high-cost producers in
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
CF Industries’ green ammonia project at its
Engineering activities for the construction of a dehydration and compression unit at CF Industries’
Certified natural gas purchase
___________________________________________________ |
|
(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 |
(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
|
|
Year ended
|
||||||||||||
|
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 |
$ |
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
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|
Year ended
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||||||||||||
|
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 |
|||||||||||||||
(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
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|
Year ended
|
||||||||||||
|
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
|
|
Year ended
|
||||||||||||
|
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
|
|
Year ended
|
||||||||||||
|
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 theU.K in 2022 and lower realized natural gas costs inNorth America .
Other Segment
CF Industries’ Other segment includes diesel exhaust fluid (DEF), urea liquor and nitric acid.
|
Three months ended
|
|
Year ended
|
||||||||||||
|
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
Conference Call
About
At
Note Regarding Non-GAAP Financial Measures
The Company reports its financial results in accordance with
Safe Harbor Statement
All statements in this communication by
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
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
|
|||||||||||||||
SELECTED FINANCIAL INFORMATION |
|||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
|
|
|
|
||||||||||||
|
Three months ended
|
|
Year ended
|
||||||||||||
|
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 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
239 |
|
|
|
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 |
|
|
|||||
SELECTED FINANCIAL INFORMATION |
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
|
|
|
|
||
|
(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 |
|
|
2,495 |
|
|
2,089 |
Intangible assets—net |
538 |
15 |
|||
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 |
|
|||||||||||||||
SELECTED FINANCIAL INFORMATION |
|||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||||||
|
|
|
|
||||||||||||
|
Three months ended
|
|
Year ended
|
||||||||||||
|
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 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
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 |
|
(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 |
) |
|
|||||||||||||||
SELECTED FINANCIAL INFORMATION |
|||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||||||
(continued) |
|||||||||||||||
|
|
|
|
||||||||||||
|
Three months ended
|
|
Year ended
|
||||||||||||
|
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 |
|
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
|
||||||
|
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 |
|||||||
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
|
|
Year ended
|
||||||||||||
|
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 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
239 |
|
|
|
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. |
|||||||||||||||
SELECTED FINANCIAL INFORMATION
ITEMS AFFECTING COMPARABILITY
During the three months and year ended
|
Three months ended
|
|
Year ended
|
||||||||||||||||||||||||
|
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 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
239 |
|
|
180 |
|
|
|
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 |
|||||||||||||||||||||||||||
(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 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240214401228/en/
Media
Senior Director, Corporate Communications
847-405-2542 - cclose@cfindustries.com
Investors
Director, Investor Relations
847-405-2045 - darla.rivera@cfindustries.com
Source: