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Terra Nitrogen Company, L.P.
A CF Industries Company
FOR MORE INFORMATION, CONTACT:
Senior Director, Investor Relations & Corporate Communications
Terra Nitrogen Company, L.P. Reports Fourth Quarter
and Full Year 2010 Results
DEERFIELD, IL (Feb. 17, 2010)Terra Nitrogen Company, L.P. (TNCLP) (NYSE: TNH) today reported net earnings of $65.8 million on sales of $142.9 million for the fourth quarter ended December 31, 2010. This compares to net earnings of $22.9 million on sales of $98.1 million for the 2009 fourth quarter. Net income allocable to Common Units was $48.3 million ($2.61 per Common Unit) and $22.6 million ($1.22 per Common Unit) for the 2010 and 2009 fourth quarters, respectively.
Results for the fourth quarter of 2010 included an unrealized mark-to-market gain on natural gas derivatives of $7.0 million. Prior to the second quarter of 2010, results were not subject to mark-to-market adjustments because TNCLP employed hedge accounting. The company discontinued hedge accounting in the second quarter of 2010, but had no related adjustments in that period.
For the full year 2010, TNCLP reported net earnings of $201.6 million on sales of $564.6 million. This compares to net earnings of $144.3 million on sales of $507.7 million in 2009. Net income allocable to Common Units was $148.2 million ($8.01 per Common Unit) and $100.0 million ($5.40 per Common Unit) in 2010 and 2009, respectively.
Analysis of Results
Sales for the 2010 fourth quarter totaled $142.9 million, compared to sales of $98.1 million for the 2009 fourth quarter. This increase was due primarily to higher ammonia and urea ammonium nitrate (UAN) selling prices and higher ammonia sales volume. Net earnings of $65.8 million in the period reflected strong margins, but investments in working capital also were required.
From the 2009 to the 2010 fourth quarter, TNCLPs:
· Ammonia and UAN selling prices increased by 51 and 34 percent, respectively.
· Ammonia sales volume increased by 56 percent and UAN sales volume decreased by 2 percent.
· Realized natural gas unit costs increased by two percent.
Sales for the full year totaled $564.6 million, compared to sales of $507.7 million in 2009. This increase was due primarily to higher ammonia and UAN sales volumes.
From 2009 to 2010, TNCLPs full year:
· Ammonia selling price decreased by one percent and UAN selling prices increased by one percent.
· Ammonia and UAN sales volumes increased by 9 and 11 percent, respectively.
· Realized natural gas unit costs decreased by four percent.
The following information was filed by Terra Nitrogen Co L P De (TNH) on Thursday, February 17, 2011 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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