Terra Nitrogen Co L P De (TNH) SEC Filing 10-Q Quarterly report for the period ending Saturday, September 30, 2017

Earnings Press Release
10-Q Quarterly Report
10-Q QoQ Changes
Terra Nitrogen Co L P De
Ticker: TNH CIK: 879575



	Exhibit 99.1
	FOR MORE INFORMATION, CONTACT:
	Martin Jarosick
	Vice President, Investor Relations
	847-405-2045
	mjarosick@cfindustries.com

Terra Nitrogen Company, L.P. Reports Third Quarter

2017 Results

DEERFIELD, IL (November 1, 2017)—Terra Nitrogen Company, L.P. (TNCLP) (NYSE: TNH) today reported net earnings of $22.8 million on net sales of $84.6 million for the quarter ended September 30, 2017. This compares to net earnings of $28.8 million on net sales of $90.2 million for the 2016 third quarter. Net earnings allocable to common units was $17.0 million ($0.92 per common unit) and $19.2 million ($1.04 per common unit) for the 2017 and 2016 third quarters, respectively. Results for the third quarter of 2017 included an unrealized net mark-to-market gain on natural gas derivatives of $1.1 million compared to a loss of $3.3 million in the third quarter of 2016. The derivative portfolio at September 30, 2017 includes natural gas derivatives that hedge a portion of natural gas purchases through December 2018.

For the first nine months of 2017, TNCLP reported net earnings of $104.5 million on net sales of $299.7 million. This compares to net earnings of $165.2 million on net sales of $324.9 million for the first nine months of 2016. Net earnings allocable to common units was $83.2 million ($4.49 per common unit) and $105.6 million ($5.71 per common unit) for the first nine months of 2017 and 2016, respectively. Results for the first nine months of 2017 included an unrealized net mark-to-market loss on natural gas derivatives of $9.7 million compared to an unrealized net mark-to-market gain of $21.7 million for the first nine months of 2016.

Analysis of Results

Net sales for the third quarter of 2017 totaled $84.6 million, compared to $90.2 million for the third quarter of 2016, due to lower average selling prices for both ammonia and urea ammonium nitrate (UAN) that were partially offset by higher sales volumes for both products compared to the prior period.

Sales volumes in the third quarter of 2017 for ammonia and UAN increased 18 percent and 9 percent, respectively, compared to the third quarter of 2016. UAN sales volume was higher than in the prior year period due to increased demand for UAN. Ammonia sales volume was higher compared to the third quarter of 2016 due to greater merchant ammonia supply availability as less ammonia was upgraded to UAN. Ammonia and UAN average selling prices declined in the third quarter of 2017 compared to the third quarter of 2016 due to greater global nitrogen supply.

Comparing the third quarter of 2017 to the third quarter of 2016, TNCLP’s:


•	Ammonia sales volume increased by 18 percent and UAN sales volume increased by 9 percent;


•	Ammonia average selling prices decreased by 27 percent and UAN average selling prices decreased by 11 percent; and


•	Realized natural gas cost per MMBtu decreased by 3 percent.

Cash Distribution

Cash distributions are based on Available Cash for the quarter and depend on TNCLP’s earnings as well as cash requirements for working capital needs and capital and other expenditures. For the first nine months of 2017, capital expenditures were $18.6 million as compared to $24.8 million for the first nine months of 2016.

For the full year 2017, TNCLP expects capital expenditures to be in the range of $30 million to $35 million. TNCLP previously announced that it expected to make capital expenditures for the full year 2017 in the range of $75 million to $85 million, with approximately $40 million of the projected capital expenditures related to a plant turnaround scheduled to start in the third quarter of 2017. Subsequent to that announcement, TNCLP postponed the turnaround due to a delay in receiving certain equipment. TNCLP anticipates the plant turnaround will occur in the third quarter of 2018 and expects it to cost approximately $40 million. The calculation of Available Cash for the three months ended September 30, 2017, included a reserve of approximately two-thirds of that amount.

TNCLP reported on November 1, 2017, the declaration of a cash distribution for the quarter ended September 30, 2017, of $1.36 per common unit payable November 29, 2017 to holders of record as of November 15, 2017. This compares to a cash distribution of $1.77 per common unit for the quarter ended September 30, 2016.

The following information was filed by Terra Nitrogen Co L P De (TNH) on Wednesday, November 1, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one quarter to another to evaluate Terra Nitrogen Co L P De's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ) — *Sample 10-K Year-over-Year (YoY) Comparison*

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were ~~removed~~ , added and changed by Terra Nitrogen Co L P De.

Continue

Please wait while we load the requested 10-Q report or click the link below:

https://last10k.com/sec-filings/report/879575/000087957517000027/tnh-09302017x10q.htm