CF Industries Holdings, Inc. is a leading global manufacturer specializing in hydrogen and nitrogen products, with a mission to provide clean energy solutions to sustainably feed and fuel the world **[0001324404-24-000008_cf-20231231.htm:3]** **[0001324404-24-000020_cf-20240630.htm:24]** **[0001104659-24-031807_tm242770d2_def14a.htm:5]**. The company operates the world's largest ammonia production network, which it is actively working to decarbonize to produce green and low-carbon hydrogen and nitrogen products for various applications, including energy, fertilizer, and emissions abatement **[0001324404-24-000008_cf-20231231.htm:3]** **[0001324404-24-000020_cf-20240630.htm:24]** **[0001104659-24-031807_tm242770d2_def14a.htm:5]**. CF Industries' core product is anhydrous ammonia, which is either sold directly or upgraded into other nitrogen products such as granular urea, urea ammonium nitrate solution (UAN), and ammonium nitrate (AN) **[0001324404-24-000008_cf-20231231.htm:3]** **[0001324404-24-000020_cf-20240630.htm:24]**. The company also produces diesel exhaust fluid (DEF), urea liquor, nitric acid, and aqua ammonia, primarily for industrial customers **[0001324404-24-000008_cf-20231231.htm:3]** **[0001324404-24-000020_cf-20240630.htm:24]**.

1. **Anhydrous Ammonia** - Serves as the core product, containing 82% nitrogen and 18% hydrogen, and is sold directly or used as a base for other nitrogen products.
2. **Granular Urea** - Upgraded from anhydrous ammonia, used as a nitrogen-release fertilizer and in industrial applications.
3. **Urea Ammonium Nitrate Solution (UAN)** - A liquid fertilizer product derived from ammonia, used for agricultural purposes.
4. **Ammonium Nitrate (AN)** - Produced from ammonia, used in fertilizers and various industrial applications.
5. **Diesel Exhaust Fluid (DEF)** - Manufactured for reducing emissions in diesel engines, primarily for industrial customers.
6. **Urea Liquor** - A liquid form of urea used in various industrial processes.
7. **Nitric Acid** - Produced for use in fertilizers and other industrial applications.
8. **Aqua Ammonia** - A solution of ammonia in water, used in industrial and agricultural applications.

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283fe1caa9f1811c9e17f761479d7070363d118fa8c7096841e023c1d6dcaa5f

| Metric [USD Million] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|
| Ammonia              | 424  **[0001324404-23-000012_cf-20230331.htm:33]**  | 525  **[0001324404-23-000019_cf-20230630.htm:10]**  | 235  **[0001324404-23-000025_cf-20230930.htm:10]**  | N/A     | 402  **[0001324404-24-000014_cf-20240331.htm:32]**  | 409  **[0001324404-24-000020_cf-20240630.htm:38]**  | 353  **[0001324404-24-000026_cf-20240930.htm:40]**  |
| Granular Urea        | 611  **[0001324404-23-000012_cf-20230331.htm:33]**  | 460  **[0001324404-23-000019_cf-20230630.htm:10]**  | 360  **[0001324404-23-000025_cf-20230930.htm:10]**  | N/A     | 407  **[0001324404-24-000014_cf-20240331.htm:32]**  | 457  **[0001324404-24-000020_cf-20240630.htm:37]**  | 388  **[0001324404-24-000026_cf-20240930.htm:40]**  |
| UAN                  | 667  **[0001324404-23-000012_cf-20230331.htm:33]**  | 548  **[0001324404-23-000019_cf-20230630.htm:10]**  | 435  **[0001324404-23-000025_cf-20230930.htm:10]**  | N/A     | 425  **[0001324404-24-000014_cf-20240331.htm:32]**  | 475  **[0001324404-24-000020_cf-20240630.htm:37]**  | 406  **[0001324404-24-000026_cf-20240930.htm:40]**  |
| AN                   | 159  **[0001324404-23-000012_cf-20230331.htm:33]**  | 104  **[0001324404-23-000019_cf-20230630.htm:10]**  | 114  **[0001324404-23-000025_cf-20230930.htm:10]**  | N/A     | 114  **[0001324404-24-000014_cf-20240331.htm:32]**  | 98  **[0001324404-24-000020_cf-20240630.htm:37]**  | 106  **[0001324404-24-000026_cf-20240930.htm:40]**  |
| Other                | 151  **[0001324404-23-000012_cf-20230331.htm:33]**  | 138  **[0001324404-23-000019_cf-20230630.htm:10]**  | 129  **[0001324404-23-000025_cf-20230930.htm:10]**  | N/A     | 122  **[0001324404-24-000014_cf-20240331.htm:32]**  | 133  **[0001324404-24-000020_cf-20240630.htm:37]**  | 117  **[0001324404-24-000026_cf-20240930.htm:40]**  |
| Total Revenue        | 2,012  **[0001324404-23-000012_cf-20230331.htm:33]**  | 1,775  **[0001324404-23-000019_cf-20230630.htm:10]**  | 1,273  **[0001324404-23-000025_cf-20230930.htm:10]**  | N/A     | 1,470  **[0001324404-24-000014_cf-20240331.htm:32]**  | 1,572  **[0001324404-24-000020_cf-20240630.htm:37]**  | 1,370  **[0001324404-24-000026_cf-20240930.htm:40]**  |

e8f0df968b4ef340d77e9b946ec689a7e621c46776fbc32d81d5d42450de7301

| Metric (Million USD) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|
| North America        | **1,624**  **[0001324404-23-000012_cf-20230331.htm:9]**  | **1,568**  **[0001324404-23-000019_cf-20230630.htm:10]**  | **996**  **[0001324404-23-000025_cf-20230930.htm:10]**  | N/A     | **1,260**  **[0001324404-24-000014_cf-20240331.htm:10]**  | **1,366**  **[0001324404-24-000020_cf-20240630.htm:11]**  | **1,085**  **[0001324404-24-000026_cf-20240930.htm:11]**  |
| Europe and Other     | **388**  **[0001324404-23-000012_cf-20230331.htm:9]**   | **207**  **[0001324404-23-000019_cf-20230630.htm:10]**   | **277**  **[0001324404-23-000025_cf-20230930.htm:10]**  | N/A     | **210**  **[0001324404-24-000014_cf-20240331.htm:10]**   | **206**  **[0001324404-24-000020_cf-20240630.htm:11]**   | **285**  **[0001324404-24-000026_cf-20240930.htm:11]**   |
| Total Revenue        | **2,012**  **[0001324404-23-000012_cf-20230331.htm:9]**  | **1,775**  **[0001324404-23-000019_cf-20230630.htm:10]**  | **1,273**  **[0001324404-23-000025_cf-20230930.htm:10]**  | N/A     | **1,470**  **[0001324404-24-000014_cf-20240331.htm:10]**  | **1,572**  **[0001324404-24-000020_cf-20240630.htm:11]**  | **1,370**  **[0001324404-24-000026_cf-20240930.htm:11]**  |

224c37e2e140c298b96233faf6bb5e329d28a3c7a51e5645d95c50f67227c870

fe467dda4aac88842d7c4cc13c02e9f929377d506cc8554e94d1ba1a9e0fea47

| Metric / Period | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Sales Volume by Product Tons** | 4,464  **[0001324404-23-000003_cf-02152023_ex991xearnings.htm:11]**  | 4,535  **[0001324404-23-000012_cf-20230331.htm:30]**  | 4,900  **[0001324404-23-000019_cf-20230630.htm:38]**  | 4,700  **[0001324404-23-000025_cf-20230930.htm:39]**  | 4,686  **[0001324404-24-000005_cf-02142024_ex991xearnings.htm:12]**  | 4,524  **[0001324404-24-000014_cf-20240331.htm:29]**  | 4,875  **[0001324404-24-000020_cf-20240630.htm:32]**  | 4,800  **[0001324404-24-000026_cf-20240930.htm:34]**  |
| **Sales Volume by Nutrient Tons** | 1,927  **[0001324404-23-000003_cf-02152023_ex991xearnings.htm:11]**  | 1,898  **[0001324404-23-000010_cf-05012023_ex991xearnings.htm:11]**  | 2,199  **[0001324404-23-000019_cf-20230630.htm:52]**  | 1,980  **[0001324404-23-000025_cf-20230930.htm:53]**  | 2,188  **[0001324404-24-000005_cf-02142024_ex991xearnings.htm:12]**  | 1,997  **[0001324404-24-000012_cf-05012024_ex991xearnings.htm:9]**  | 2,156  **[0001324404-24-000020_cf-20240630.htm:38]**  | 2,115  **[0001324404-24-000026_cf-20240930.htm:41]**  |
| **Average Selling Price per Product Ton** | $460  **[0001324404-23-000003_cf-02152023_ex991xearnings.htm:7]**  | $444  **[0001324404-23-000012_cf-20230331.htm:30]**  | $359  **[0001324404-23-000019_cf-20230630.htm:31]**  | $268  **[0001324404-23-000025_cf-20230930.htm:32]**  | $460  **[0001324404-24-000005_cf-02142024_ex991xearnings.htm:8]**  | $325  **[0001324404-24-000014_cf-20240331.htm:25]**  | $322  **[0001324404-24-000020_cf-20240630.htm:27]**  | $286  **[0001324404-24-000026_cf-20240930.htm:35]**  |
| **Average Selling Price per Nutrient Ton** | $1,095  **[0001324404-23-000003_cf-02152023_ex991xearnings.htm:7]**  | $444  **[0001324404-23-000012_cf-20230331.htm:30]**  | $819  **[0001324404-23-000019_cf-20230630.htm:50]**  | $809  **[0001324404-23-000025_cf-20230930.htm:53]**  | $561  **[0001324404-24-000005_cf-02142024_ex991xearnings.htm:8]**  | $325  **[0001324404-24-000014_cf-20240331.htm:25]**  | $322  **[0001324404-24-000020_cf-20240630.htm:27]**  | $286  **[0001324404-24-000026_cf-20240930.htm:35]**  |
| **Gross Margin per Product Ton** | $434  **[0001324404-23-000003_cf-02152023_ex991xearnings.htm:7]**  | $221  **[0001324404-23-000012_cf-20230331.htm:33]**  | $211  **[0001324404-23-000019_cf-20230630.htm:44]**  | $27  **[0001324404-23-000025_cf-20230930.htm:47]**  | $143  **[0001324404-24-000003_cf-02142024_ex991xearnings.htm:8]**  | $71  **[0001324404-24-000012_cf-05012024_ex991xearnings.htm:5]**  | $150  **[0001324404-24-000020_cf-20240630.htm:38]**  | $88  **[0001324404-24-000026_cf-20240930.htm:41]**  |
| **Gross Margin per Nutrient Ton** | $529  **[0001324404-23-000003_cf-02152023_ex991xearnings.htm:7]**  | $269  **[0001324404-23-000012_cf-20230331.htm:33]**  | $257  **[0001324404-23-000019_cf-20230630.htm:44]**  | $33  **[0001324404-23-000025_cf-20230930.htm:47]**  | $174  **[0001324404-24-000003_cf-02142024_ex991xearnings.htm:8]**  | $86  **[0001324404-24-000012_cf-05012024_ex991xearnings.htm:5]**  | $183  **[0001324404-24-000020_cf-20240630.htm:38]**  | $107  **[0001324404-24-000026_cf-20240930.htm:41]**  |
| **Natural Gas Costs in Cost of Sales** | $6.88  **[0001104659-23-022431_tm236855d1_ex99-1.htm:5]**  | $5.14  **[0001324404-23-000012_cf-20230331.htm:30]**  | $2.74  **[0001324404-23-000019_cf-20230630.htm:38]**  | $2.53  **[0001324404-23-000025_cf-20230930.htm:39]**  | $3.01  **[0001104659-24-024069_tm245773d1_ex99-1.htm:5]**  | $2.73  **[0001104659-24-055837_tm2413105d1_ex99-1.htm:5]**  | $1.90  **[0001104659-24-086801_tm2420936d1_ex99-1.htm:7]**  | $2.10  **[0001104659-24-112673_tm2426907d1_ex99-1.htm:8]**  |
| **Cost of Natural Gas Used for Production** | $6.88  **[0001104659-23-022431_tm236855d1_ex99-1.htm:5]**  | $6.62  **[0001104659-23-054477_tm2314262d1_ex99-1.htm:5]**  | $2.75  **[0001104659-23-086877_tm2322352d1_ex99-1.htm:5]**  | $2.54  **[0001324404-23-000025_cf-20230930.htm:39]**  | $3.01  **[0001104659-24-024069_tm245773d1_ex99-1.htm:5]**  | $3.19  **[0001104659-24-055837_tm2413105d1_ex99-1.htm:5]**  | $1.90  **[0001104659-24-086801_tm2420936d1_ex99-1.htm:7]**  | $2.10  **[0001324404-24-000026_cf-20240930.htm:30]**  |
| **Average Daily Market Price of Natural Gas** | $5.55  **[0001104659-23-022431_tm236855d1_ex99-1.htm:5]**  | $2.68  **[0001324404-23-000012_cf-20230331.htm:30]**  | $2.12  **[0001324404-23-000019_cf-20230630.htm:31]**  | $2.58  **[0001324404-23-000025_cf-20230930.htm:39]**  | $2.74  **[0001324404-24-000003_cf-02142024_ex991xearnings.htm:7]**  | $2.43  **[0001324404-24-000014_cf-20240331.htm:29]**  | $2.04  **[0001324404-24-000020_cf-20240630.htm:28]**  | $2.08  **[0001324404-24-000026_cf-20240930.htm:34]**  |
| **Gross Ammonia Production** | 2,400  **[0001324404-23-000003_cf-02152023_ex991xearnings.htm:2]**  | 2,400  **[0001324404-23-000010_cf-05012023_ex991xearnings.htm:3]**  | 2,400  **[0001324404-23-000017_cf-08022023_ex991xearnings.htm:3]**  | 2,200  **[0001324404-23-000025_cf-20230930.htm:40]**  | 2,500  **[0001324404-24-000005_cf-02142024_ex991xearnings.htm:1]**  | 2,100  **[0001324404-24-000012_cf-05012024_ex991xearnings.htm:0]**  | 2,600  **[0001324404-24-000018_cf-08072024_ex991xearnings.htm:0]**  | 2,400  **[0001324404-24-000024_cf-10302024_ex991xearnings.htm:0]**  |

5e2badd5e795a207c13f3d617ae8349831913856032950999f06285b74e74a49

**Sales Volume by Product Tons**

**Sales Volume by Nutrient Tons**

**Average Selling Price per Product Ton**

**Average Selling Price per Nutrient Ton**

**Gross Margin per Product Ton**

**Gross Margin per Nutrient Ton**

**Natural Gas Costs in Cost of Sales**

**Cost of Natural Gas Used for Production**

**Average Daily Market Price of Natural Gas**

**Gross Ammonia Production**

4dd12c02777b5c992c328cc6601993f4a41e0bdc5c0fd8c48cb8b039379433d1

390a160babd80a5de86141954e1aab18053cf24168192a425dae08dfce8d43c9

1. With your continued emphasis on share repurchases as a strategy to unlock shareholder value amidst perceived undervaluation, are there alternative strategies you are considering to more effectively bridge the gap between your enterprise value and the market's recognition of your assets' worth?  **[CF_3397669_20]** **[CF_3397669_4]** 
2. Given the substantial investments in carbon capture and sequestration projects and the high costs associated with green ammonia production, how confident are you that the demand for low-carbon ammonia, especially from the agricultural sector, will materialize at a scale sufficient to justify these expenditures?  **[CF_3397669_6]** **[CF_3397669_17]** **[CF_3397669_2]** 
3. As you anticipate a solid fall application season despite tighter grower margins and potential shifts in crop planting from corn to soybeans, what specific measures are you taking to mitigate the risks associated with these market uncertainties on nitrogen demand?  **[CF_3397669_10]** 
4. While the Waggaman facility operates at 10% above nameplate capacity and is your most efficient plant, what challenges do you foresee in further optimizing its performance, and how do you plan to leverage this asset to achieve additional efficiencies across your operations?  **[CF_3397669_7]** 
5. Considering the significant capital allocated to your low-carbon initiatives and the potential risks of technological hurdles or policy changes affecting 45Q tax credits, how are you assessing the risk-return profile of these investments, and what contingency plans are in place if the expected market demand does not materialize?  **[CF_3397669_17]** **[CF_3397669_2]** 

c313c817c9d8c7285c57b468c5b7261121d2a52e3c6abf495e6a16f84f502ca1

Ammonia

Granular Urea

Other

Phosphate

Total Revenue

1d9903c4b80023aa15473142bcdc2d2ba9e3e2876a99b23944116ab5f3100843

- **Nutrien Ltd.** - Primary competitor with North American operations  **[0001324404-24-000008_cf-20231231.htm:14]** .
- **Koch Fertilizer LLC** - Primary competitor with North American operations  **[0001324404-24-000008_cf-20231231.htm:14]** .
- **N-7 LLC** - A joint venture between OCI N.V. and Dakota Gasification Company, primary competitor with North American operations  **[0001324404-24-000008_cf-20231231.htm:14]** .
- **Yara International** - Primary competitor with North American operations and also a competitor in the United Kingdom  **[0001324404-24-000008_cf-20231231.htm:14]** .
- **Origin Fertilisers** - Competitor in the United Kingdom  **[0001324404-24-000008_cf-20231231.htm:14]** .
- **Ameropa** - Competitor in the United Kingdom  **[0001324404-24-000008_cf-20231231.htm:14]** .
- **Thomas Bell & Sons Ltd.** - Competitor in the United Kingdom  **[0001324404-24-000008_cf-20231231.htm:14]** .

11badf756ce37929a7c4505c61c8dc4f2ac6c3b18ab69598aa1cfde1823856af

| Name                  | Position                                                      | Start Date         | Short Bio                                                                                                                                                                                                                                                                                                                                 |
|-----------------------|---------------------------------------------------------------|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| W. Anthony Will       | President and Chief Executive Officer                         | January 2014       | W. Anthony Will has served as the President and CEO of CF Industries since January 2014. He previously held various positions within the company, including Senior Vice President of Manufacturing and Distribution. Before joining CF Industries, he was a partner at Accenture Ltd. and held executive positions at Sears and Fort James Corporation  **[0001104659-24-031807_tm242770d2_def14a.htm:45]** **[0001104659-23-035476_tm231975d4_def14a.htm:44]** . |
| Christopher D. Bohn   | Executive Vice President and Chief Operating Officer          | February 2024      | Christopher D. Bohn has been serving as the Executive Vice President and COO of CF Industries since February 2024. He was previously the Executive Vice President and CFO from September 2019 to July 2023. He joined CF Industries in 2009 and held various senior roles in manufacturing, distribution, and supply chain  **[0001104659-24-031807_tm242770d2_def14a.htm:36]** **[0001324404-24-000008_cf-12312023xex322.htm:0]** **[0001324404-24-000008_cf-20231231.htm:198]** .                                      |
| Richard A. Hoker      | Vice President and Corporate Controller                       | November 2007      | Richard A. Hoker has served as the Vice President and Corporate Controller at CF Industries since November 2007. Before joining CF Industries, he held various financial management positions at Sara Lee Corporation and was part of the financial advisory services consulting group at Coopers & Lybrand LLP  **[0001104659-24-031807_tm242770d2_def14a.htm:72]** **[0001104659-23-035476_tm231975d4_def14a.htm:71]** **[0001104659-23-029037_tm231975d2_pre14a.htm:66]** .                                                  |
| Linda M. Dempsey      | Vice President, Public Affairs                                | March 2020         | Linda M. Dempsey has served as the Vice President, Public Affairs at CF Industries since March 2020. Before joining CF Industries, she was the Vice President of International Economic Affairs for the National Association of Manufacturers and held a leadership role at the Emergency Committee for American Trade  **[0001104659-24-031807_tm242770d2_def14a.htm:72]** **[0001104659-23-035476_tm231975d4_def14a.htm:70]** **[0001104659-23-029037_tm231975d2_pre14a.htm:65]** .                                          |
| Bert A. Frost         | Executive Vice President, Sales, Market Development, and Supply Chain | July 2023          | Bert A. Frost has served as the Executive Vice President, Sales, Market Development, and Supply Chain at CF Industries since July 2023. He joined CF Industries in November 2008 and previously worked at Archer Daniels Midland Company in various roles  **[0001104659-24-031807_tm242770d2_def14a.htm:72]** .                                                                                                               |
| Ashraf K. Malik       | Senior Vice President, Manufacturing and Distribution         | September 2019     | Ashraf K. Malik has served as the Senior Vice President, Manufacturing and Distribution at CF Industries since September 2019. Before joining CF Industries, he was the Director of Manufacturing for GrowHow UK Limited and held positions at Terra Industries Inc. and ICI Plc  **[0001104659-24-031807_tm242770d2_def14a.htm:72]** .                                                                                     |
| Susan L. Menzel       | Executive Vice President and Chief Administrative Officer     | July 2023          | Susan L. Menzel has served as the Executive Vice President and Chief Administrative Officer at CF Industries since July 2023. She was previously the Senior Vice President of Human Resources and held senior roles in human resources at CNO Financial Group, APAC Customer Services, Sears, and Montgomery Ward  **[0001104659-24-031807_tm242770d2_def14a.htm:73]** **[0001104659-23-035476_tm231975d4_def14a.htm:71]** .                                                |
| Michael P. McGrane    | Vice President, General Counsel and Secretary                 | July 2023          | Michael P. McGrane has served as the Vice President, General Counsel, and Secretary of CF Industries since July 2023. He was previously the Vice President, Chief Compliance Officer, and Assistant Secretary and worked as an attorney at Skadden, Arps, Slate, Meagher & Flom LLP  **[0001104659-24-031807_tm242770d2_def14a.htm:73]** .                                                                                   |
| Gregory D. Cameron    | Executive Vice President and Chief Financial Officer          | June 2024          | Gregory D. Cameron joined CF Industries as the Executive Vice President and CFO in June 2024. Prior to joining CF Industries, he served as the CFO of Bloom Energy and has over 25 years of experience in finance organizations with General Electric (GE)  **[CF_3400536_0]** **[CF_3397669_1]** .                                                                                                         |

24f23dc5065956fdcc14dee75ccae8d73ddf8ad654e42904acec2c91b4aa344c

**Annual guidance for FY 2024:**
- **Ammonia Production**: 9.8 million tons  **[CF_3405080_2]**  (no change from 9.8 million tons  **[CF_3397669_13]** )  
- **Share Repurchase Authorization**: Just under $1.5 billion  **[CF_3405080_4]**  (lowered from $1.9 billion  **[CF_3397669_13]** )

**Annual guidance for FY 2025:**
- **Carbon Capture and 45Q Tax Credit**: $100 million of incremental cash annually  **[CF_3405080_2]** **[CF_3405080_7]**  (no prior guidance)  
- **Greenfield Low-Carbon Ammonia Plant**: Final investment decision expected in early FY 2025  **[CF_3405080_2]**  (no prior guidance)

12e69ee48a0c5250ee0a219246f33bd9040bdb3c76a2863339307f3619539e8d

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

c567c4371da5c9e00e9ba78006aad809328588f160a90cc3aedef549ef582849

| Program Details          | Program 1               | Program 2               |
|--------------------------|-------------------------|-------------------------|
| Approval Date            | November 3, 2021  **[0001324404-24-000026_cf-20240930.htm:23]** **[0001324404-24-000026_cf-20240930.htm:52]**  | November 2, 2022  **[0001324404-24-000026_cf-20240930.htm:23]** **[0001324404-24-000026_cf-20240930.htm:52]**  |
| End Date/Duration        | Completed Q2 2023  **[0001324404-24-000026_cf-20240930.htm:23]** **[0001324404-24-000026_cf-20240930.htm:52]** | December 31, 2025  **[0001324404-24-000026_cf-20240930.htm:23]** **[0001324404-24-000026_cf-20240930.htm:52]** |
| Total Additional Amount  | $1.5 billion  **[0001324404-24-000026_cf-20240930.htm:23]** **[0001324404-24-000026_cf-20240930.htm:52]**      | $3 billion  **[0001324404-24-000026_cf-20240930.htm:23]** **[0001324404-24-000026_cf-20240930.htm:52]**        |
| Remaining Authorization  | None  **[0001324404-24-000026_cf-20240930.htm:23]** **[0001324404-24-000026_cf-20240930.htm:52]**              | $1.446 billion  **[0001324404-24-000026_cf-20240930.htm:23]** **[0001324404-24-000026_cf-20240930.htm:52]**    |
| Details                  | Completed  **[0001324404-24-000026_cf-20240930.htm:23]** **[0001324404-24-000026_cf-20240930.htm:52]**         | Active  **[0001324404-24-000026_cf-20240930.htm:23]** **[0001324404-24-000026_cf-20240930.htm:52]**            |

0c7d9f4dcf62b5f6dc9b52bfece848a97ce381c0de90fca2943afdcd2150a7d2

United States

Foreign

- Canada

- North America (excl. U.S. and Canada)

- United Kingdom

- Other foreign

North America

Europe and Other

db7ed5e4e2f5096b88ec55b5d048469c1b6e83459cd3922b31834371ae3c39a3

| Name       | Start Date | End Date | Reason for Change |
|------------|------------|----------|-------------------|
| KPMG LLP   | 1983  **[0001324404-24-000008_cf-20231231.htm:110]**    | Present  | Current auditor   |

ed444f0d5d3f8596ff4236412e73e739354772fd7bf16347814c537478ce11e8

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $1,370 million (+8% YoY)  **[0001324404-23-000025_cf-20230930.htm:46]** **[0001324404-24-000026_cf-20240930.htm:11]**   
- North America Revenue: $1,085 million (+9% YoY)  **[0001324404-23-000025_cf-20230930.htm:10]** **[0001324404-24-000026_cf-20240930.htm:11]**   
- Ammonia: **$353 million (+50% YoY)**  **[0001324404-23-000025_cf-20230930.htm:46]** **[0001324404-24-000026_cf-20240930.htm:11]**   
- Granular Urea: $388 million (+8% YoY)  **[0001324404-23-000025_cf-20230930.htm:46]** **[0001324404-24-000026_cf-20240930.htm:11]**   
- UAN: $406 million (-7% YoY)  **[0001324404-23-000025_cf-20230930.htm:46]** **[0001324404-24-000026_cf-20240930.htm:11]**   
- Operating Income (EBIT): $364 million (+49% YoY)  **[0001324404-23-000025_cf-20230930.htm:2]** **[0001324404-23-000025_cf-20230930.htm:25]** **[0001324404-24-000026_cf-20240930.htm:2]**   
- Net Income: **$276 million (+68% YoY)**  **[0001324404-23-000025_cf-20230930.htm:2]** **[0001324404-23-000025_cf-20230930.htm:25]** **[0001324404-24-000026_cf-20240930.htm:2]**   
- EPS (Diluted): **$1.55 (+78% YoY)**  **[0001324404-23-000025_cf-20230930.htm:2]** **[0001324404-23-000025_cf-20230930.htm:25]** **[0001324404-24-000026_cf-20240930.htm:2]**   

e7656f4b0a3726f64269099370b77f8a861c97f5071b07b7754d4c70c675fde8

9ed344bec1ae21071bf4eee845f270cd170c4c3bcf5612848a00d6d2221959a5

| Year | Amount Due (in millions) | Debt Type            | Interest Rate | % of Total Debt |
|------|--------------------------|----------------------|---------------|-----------------|
| 2026 | $750 **[0001324404-24-000026_cf-20240930.htm:19]** **[0001324404-24-000026_cf-20240930.htm:53]**     | Senior Secured Notes | 4.500% **[0001324404-24-000026_cf-20240930.htm:19]** **[0001324404-24-000026_cf-20240930.htm:53]** | 25.0% = (750 / 3000) * 100 **[0001324404-24-000026_cf-20240930.htm:19]** **[0001324404-24-000026_cf-20240930.htm:53]** |
| 2034 | $750 **[0001324404-24-000026_cf-20240930.htm:19]** **[0001324404-24-000026_cf-20240930.htm:53]**     | Public Senior Notes  | 5.150% **[0001324404-24-000026_cf-20240930.htm:19]** **[0001324404-24-000026_cf-20240930.htm:53]** | 25.0% = (750 / 3000) * 100 **[0001324404-24-000026_cf-20240930.htm:19]** **[0001324404-24-000026_cf-20240930.htm:53]** |
| 2043 | $750 **[0001324404-24-000026_cf-20240930.htm:19]** **[0001324404-24-000026_cf-20240930.htm:53]**     | Public Senior Notes  | 4.950% **[0001324404-24-000026_cf-20240930.htm:19]** **[0001324404-24-000026_cf-20240930.htm:53]** | 25.0% = (750 / 3000) * 100 **[0001324404-24-000026_cf-20240930.htm:19]** **[0001324404-24-000026_cf-20240930.htm:53]** |
| 2044 | $750 **[0001324404-24-000026_cf-20240930.htm:19]** **[0001324404-24-000026_cf-20240930.htm:53]**     | Public Senior Notes  | 5.375% **[0001324404-24-000026_cf-20240930.htm:19]** **[0001324404-24-000026_cf-20240930.htm:53]** | 25.0% = (750 / 3000) * 100 **[0001324404-24-000026_cf-20240930.htm:19]** **[0001324404-24-000026_cf-20240930.htm:53]** |

03d23c9fe708ecb125804bc7beefb3375c98b316959053a0de530aecddbe30f1

0b3a7962474eef9afad7074f8b958331a2e8605f1397b7679f561a911dc99990

0992bbb888ca1407909c38c7e350e863b938cf412b95f324c5b2c8a68c6903ef

- **Strong demand and tight global nitrogen supply support a positive outlook for CF Industries in 2024.**  **[CF_3373645_9]** **[CF_3373645_15]**
- **CF Industries benefits from low-cost natural gas, providing a significant cost advantage over European producers, with energy spreads favoring their production base.**  **[CF_3373645_15]** **[CF_3373645_6]**
- **The company's disciplined capital allocation strategy, balancing capacity investments and significant shareholder returns through buybacks and dividends, enhances long-term shareholder value.**  **[CF_3373645_7]**

faa0e1ec5b7b08b0e71c53d9a0723b589103510bc234e217d964196c7ec70788

- **Trends of buyers deferring or delaying fertilizer purchases due to lower corn prices and farmer financial stress**, which could negatively impact CF Industries' sales.  **[CF_3397669_14]**
- **Lack of natural gas price hedging exposes CF Industries to potential price volatility**, which could hurt margins if gas prices rise.  **[CF_3397669_16]**
- **Past operational outages at the Waggaman plant required significant maintenance**, and future outages could impact production and financial performance.  **[CF_3397669_17]**

45d514e11eb50d28c3aa3e0727c79ec46510f79a1c932eb65b63d37bbc10d821

- **Increasing demand for low-carbon ammonia across multiple sectors, including agriculture, industrial, and energy, positions CF Industries to capitalize on new markets and command premium pricing for its products.**  **[CF_3397669_18]** **[CF_3397669_6]**
- **Tightening global nitrogen supply due to European production challenges and expected natural tightening of supply-demand balance supports higher margins and favorable market conditions for CF Industries.**  **[CF_3397669_16]** **[CF_3397669_7]**
- **Operational excellence demonstrated by the Waggaman plant, operating at 10% above nameplate capacity with industry-leading efficiency, enhances CF Industries' production capacity and profitability.**  **[CF_3397669_17]**

e1ed44090fa322175f2ad23a6367dd2db724ed4f906908593dea09e6459fec8d

- **Loosening global nitrogen market supply** has led to **lower global prices**, which could pressure CF Industries' margins.  **[CF_3382326_12]**  Factors include lower imports to India, deferred demand in Europe, and increased production from other countries.  **[CF_3382326_12]**
- **Increased competition from Russian nitrogen products** in the U.S. market could impact CF Industries. The U.S. is importing significant volumes of urea and UAN from Russia, potentially affecting CF's market share and pricing.  **[CF_3382326_16]**
- Potential **increased urea exports from China** (up to **4 million tons**) and **reduced import demand from India** may contribute to global oversupply and further depress nitrogen prices.  **[CF_3382326_18]**

b2d3aac19758bc2a986e43e9e2fb3b50d6821148890fc29b6ef23278d55eb598

1. **Global Cost Curve Outlook**  
   **Q:** What's your latest view on the global cost curve?  
   **A:** Management expects significant challenges for European production facilities, with utilization rates remaining low and some permanent closures likely.  **[CF_3382326_5]**  Additionally, challenges in Trinidad, Asia, and Latin America are expected.  **[CF_3382326_5]**  Combined with insufficient new production to meet traditional growth, they foresee a tightening of the supply and demand balance, providing a constructive backdrop for their North American production network.  **[CF_3382326_5]** 

2. **Q1 Production Issues and Recovery**  
   **Q:** How are operations recovering after Q1 production issues?  
   **A:** The first quarter faced significant outages due to weather and downtime, leading to less ammonia production and higher maintenance expenses.  **[CF_3382326_6]**  However, the plants are back to normal operations with utilization rates at historical levels, and the production and distribution assets are performing well.  **[CF_3382326_6]** 

3. **Clean Ammonia Investments**  
   **Q:** How does ammonia pricing affect clean ammonia investments?  
   **A:** While near-term ammonia market pricing is a starting point, investment decisions for clean ammonia projects consider projections four years ahead when production commences.  **[CF_3382326_8]**  Management expects the supply and demand balance to tighten due to challenges in existing production and insufficient new capacity, supporting their investment plans.  **[CF_3382326_8]** 

4. **Capital Expenditure for New Projects**  
   **Q:** What are the expected capital expenditures for new plants?  
   **A:** A new steam methane reformer plant is estimated at **$2.5 billion**, plus approximately **$500 million** for scalable infrastructure.  **[CF_3382326_22]**  Depending on partnership structures, CF Industries' share could be around **$1 billion to $1.5 billion**, spread over four to five years.  **[CF_3382326_22]** 

5. **Partnering on Clean Ammonia Projects**  
   **Q:** Are you consolidating partnerships on clean ammonia projects?  
   **A:** Initially, projects with Mitsui and JERA were separate due to different technologies, but management hopes to combine partners into a single project to aggregate demand and optimize investments.  **[CF_3382326_15]**  All partners are participating in ongoing FEED studies to determine the best technology and economics.  **[CF_3382326_15]** 

6. **Russian Nitrogen Supply Impact**  
   **Q:** How does Russian supply affect nitrogen markets?  
   **A:** The situation is complex, with some countries refusing Russian products while others, like the U.S. and Europe, continue to import them.  **[CF_3382326_16]**  Surprising to management, the U.S. remains open to Russian urea and UAN imports, effectively funding the Russian war effort—a situation they find "absolutely shocking".  **[CF_3382326_16]** 

7. **Waggaman Plant Performance**  
   **Q:** How is the Waggaman plant performing post-acquisition?  
   **A:** Integration has gone remarkably well, with the plant operating at rates above nameplate capacity after completing a turnaround.  **[CF_3382326_20]**  Management is pleased with the acquisition's value and the plant's contribution to the portfolio.  **[CF_3382326_20]** 

8. **China and India Supply Dynamics**  
   **Q:** How do China and India affect nitrogen pricing?  
   **A:** China's export controls and logistical challenges may limit exports to less than the projected **4 million tons**, less than **10%** of the globally traded urea market.  **[CF_3382326_18]**  India's reduced imports, due to increased internal supply, are offset by growing demand in countries like Brazil.  **[CF_3382326_18]** 

9. **Spring Demand and Pricing Trends**  
   **Q:** What's the outlook for spring nitrogen demand and pricing?  
   **A:** The UAN season is just beginning, with strong soil moisture supporting demand.  **[CF_3382326_11]**  Lower nitrogen prices are expected to incentivize additional demand, and management anticipates that pricing will remain around current levels in the second quarter.  **[CF_3382326_12]** 

10. **Green Ammonia Plant and Customers**  
    **Q:** Have you secured contracts for your green ammonia plant?  
    **A:** With a small annual production of about **20,000 tons**, the volume isn't sufficient for large-scale applications like co-firing in Japan.  **[CF_3382326_13]**  However, they are in discussions with European companies interested in the low-carbon attributes and exploring options to supply decarbonized products for specialized markets.  **[CF_3382326_13]** 

1069f4d5ec5be8b4a55392ed26b25f0cbabdbfa9cbe674efca79a347bfa751ad

1. **EBITDA Sensitivity Decline**  
   **Q:** Why is EBITDA down $300 million at each gas and urea price?  
   **A:** The sensitivity table reflects updated pricing relationships between products based on last year's data. The relative premium of UAN over urea decreased, impacting EBITDA across all scenarios. Additionally, although they added the Waggaman facility, maintenance turnarounds on large plants like table number 6 reduce production. Thus, expected volumes and EBITDA are adjusted accordingly.  **[CF_3373645_7]** 

2. **Capital Allocation Strategy**  
   **Q:** Should you prioritize share buybacks over new capacity investments?  
   **A:** The company believes in balancing disciplined capacity expansion with share repurchases to create shareholder value. Historically, investing in capacity has generated returns well above their cost of capital, benefiting shareholders more than exclusively buying back shares. They will continue to evaluate investments that generate risk-adjusted returns above their cost of capital while also repurchasing shares.  **[CF_3373645_8]** 

3. **European Production Outlook**  
   **Q:** Will idled European production restart given lower gas prices?  
   **A:** Despite European gas prices decreasing to **$7-$8**  **[CF_3373645_6]** , the spread with U.S. gas prices at **$1.60-$1.65** remains significant. European producers are still the marginal producers setting the price floor. Restarting idled plants involves costs beyond immediate cash costs, including maintenance and working capital considerations. Some plants may restart as gas prices improve and in response to events like Russia limiting ammonium nitrate exports. However, significant improvements in European gas supply are not expected in the short term.  **[CF_3373645_6]** ,  **[CF_3373645_14]** 

4. **Carbon Reduction Technologies**  
   **Q:** How will different technologies impact carbon reduction?  
   **A:** The company is evaluating technologies like conventional CCS, flue gas capture, and autothermal reforming (ATR) to reduce carbon emissions. Conventional CCS at their Donaldsonville plant reduces carbon intensity by about **70%**.  **[CF_3373645_5]**  Combining flue gas capture with process gas CCS can reduce CO₂ emissions by over **95%**.  **[CF_3373645_5]**  ATR can also achieve **90%-95%** reduction but requires a large air separation unit, increasing costs and Scope 2 emissions due to higher electricity use. They're exploring all options to meet customer demand for low-carbon products while balancing operational costs and strategic long-term goals.  **[CF_3373645_5]** 

5. **Blue Ammonia Projects and Partnerships**  
   **Q:** What is the status of blue ammonia projects and partnerships?  
   **A:** The company is pleased with their partnerships, particularly in Japan and Korea, and is considering new production capacity targeting these markets. If they decide not to proceed with the Blue Point project, it may be due to aggregate costs and inability to earn an appropriate risk-adjusted return. They believe global supply and demand dynamics are favorable for capacity expansion if returns are acceptable. Blue ammonia is economically viable even without premium pricing due to incentives like the **45Q** tax credit.  **[CF_3373645_19]**  They expect increasing interest and potential premiums due to limited supply relative to demand.  **[CF_3373645_11]** ,  **[CF_3373645_19]** 

6. **North American Spring Demand and Imports**  
   **Q:** How is spring demand shaping up, and are imports lower?  
   **A:** Despite a strong fall ammonia application, there is substantial spring demand for ammonia, UAN, and urea due to expectations of early spring, good soil moisture, and higher corn acreage. Imports have been lower, and inventory levels are low, which may pose challenges in meeting demand. Prices are appreciating, and the company is prepared for the strong demand, even accounting for some production loss in January.  **[CF_3373645_9]** 

7. **Carbon Capture at Waggaman Site**  
   **Q:** Any update on CCS at the Waggaman site?  
   **A:** The company is evaluating carbon capture and storage (CCS) at the Waggaman site similar to other locations in their network. With Louisiana gaining primacy on **Class VI** wells, approvals for CCS projects should expedite. They're optimistic about incorporating Waggaman into their CCS plans as part of their broader strategy to reduce emissions.  **[CF_3373645_12]** 

8. **Brazilian Market and Export Opportunities**  
   **Q:** What are inventory levels in Brazil, and export prospects?  
   **A:** Brazil's fertilizer consumption is growing, requiring over **8 million tons** of urea imports this year, making it the largest importing country surpassing India. High inventory levels at the start of the year have been consumed during the safrinha season. The company views Brazil as a positive export market due to consistent demand growth and is actively exporting products like UAN and urea there.  **[CF_3373645_16]** 

9. **Farmer Income Outlook**  
   **Q:** Are you more positive on farmer incomes and industry prospects?  
   **A:** The company is positive about farmer incomes in 2024, expecting it to be the **fourth best year in ten years**. Corn prices at **$4.70-$6.00** are attractive, making farming profitable even with lower yield trends. Lower fertilizer and diesel prices also reduce costs for farmers. Overall, they are optimistic about industry prospects based on strong demand and favorable market conditions.  **[CF_3373645_15]** 

078892a18a8fefbaef9b319f07236a23a2831c19316c0d6e5b5afe8080a414e3

- **Potential delays or cancellation of the new low-carbon ammonia plant project with Mitsui due to high costs and uncertainty about achieving appropriate risk-adjusted returns**.  **[CF_3373645_19]**
- **Updated sensitivity table shows EBITDA projections down by $300 million in every cell compared to previous estimates**, indicating lower profitability expectations despite increased production volumes.  **[CF_3373645_7]**
- **Production volumes expected to be flat year-over-year despite acquiring the Waggaman facility**, due to significant maintenance turnarounds and production losses, which could impact future earnings.  **[CF_3373645_7]**

adccaa039f00c7e72fe5ec061ce79d8e3c1b1297f3adc667542070dbfb1bb004

- **CF Industries anticipates strong global nitrogen demand and tightening supply, leading to higher prices and margins**.  **[CF_3363846_11]** **[CF_3363846_18]** **[CF_3363846_16]** **[CF_3363846_5]**  This is driven by **low nitrogen inventories** in North America, **robust agricultural demand** from **Brazil and India**, and **supply constraints** due to **gas availability challenges in Europe and Trinidad**.
- **The acquisition of the Waggaman ammonia plant will significantly increase CF Industries' ammonia production capacity and contribute to higher margins**.  **[CF_3363846_14]** **[CF_3363846_7]** **[CF_3363846_9]** **[CF_3363846_3]**  The company expects to enhance the plant's operating rates and add **roughly 900,000 tons of ammonia capacity** to their network.  **[CF_3363846_3]** **[CF_3363846_9]**
- **Strong cash flow generation and a substantial cash balance enable CF Industries to return capital to shareholders and pursue growth opportunities**.  **[CF_3363846_14]** **[CF_3363846_17]**  The company is committed to returning capital via **share repurchases** and is **evaluating growth opportunities**, including **investments in low-carbon ammonia projects** like the **joint venture with Mitsui**.  **[CF_3363846_12]** **[CF_3363846_17]**

14072146e962b01896b96e5a93ae63be062be39975df545e58019964e3eff682

- **Volatility and recent decline in urea prices**: Despite entering the stronger North American season, **urea prices have declined over the last month**, which may pressure CF Industries' revenue and margins.  **[CF_3363846_11]**
- **Potential delays in low-carbon ammonia projects**: **Uncertainty in governmental subsidy support** is causing fluid timelines for the joint venture with Mitsui, potentially delaying CF Industries' growth in the low-carbon ammonia market.  **[CF_3363846_12]**
- **Legal disputes affecting operations**: There is an ongoing **ammonium nitrate dispute with Orica and Nelson Brothers**, which may impact CF Industries' volumes and margins in this segment.  **[CF_3363846_6]**

f8380bddd07208c8d38b92e953791b7a508525c3718ad837413fa30b03d16677

- **CF Industries is well-positioned to benefit from increasing demand for clean ammonia**, with expected growth in power generation applications in Japan (2 million tons per year by 2030) and opportunities in low-carbon ammonia for agriculture and other industries.  **[CF_3382326_9]**
- **Successful integration of the Waggaman facility has led to utilization rates above nameplate capacity**, enhancing production and operational efficiency within CF's network.  **[CF_3382326_20]**
- **CF Industries has returned to normal production levels after first-quarter challenges**, with expectations of producing approximately 10 million tons of gross ammonia annually, and is open to benefiting from lower natural gas prices, which should enhance margins.  **[CF_3382326_6]** ,  **[CF_3382326_7]**

910440a9ea15f182a4c37b8119f4e16cfe80bfa545d10ec16768c95596321533

1. **Capital Allocation Plans**  
   **Q:** How should we think about buybacks versus CapEx over the next 18 months?  
   **A:** CF plans to continue significant share repurchases, with about **$1.9 billion** left in the current authorization, expected to complete by end of **2025**.  **[CF_3397669_13]**  Annual CapEx is projected around **$550 million**, with potential incremental spending if new projects proceed.  **[CF_3397669_13]**  Even with investments in growth projects, CF expects to generate sufficient cash flow to fund both capital expenditures and share repurchases.  **[CF_3397669_13]** 

2. **Supply/Demand Tightening**  
   **Q:** Will low carbon ammonia demand tighten the overall nitrogen market?  
   **A:** CF expects the nitrogen market to tighten as new demand, even without decarbonized products, is outpacing new construction.  **[CF_3397669_7]**  The increasing demand for low carbon ammonia across agricultural, industrial, and energy sectors will further tighten supply, supporting optimism about the future.  **[CF_3397669_7]** 

3. **Global Trade Dynamics**  
   **Q:** What's your view on India's and China's impact on nitrogen supply?  
   **A:** India's domestic production has increased, reducing imports to **5–6 million tons** in 2024, but it remains a significant importer.  **[CF_3397669_12]**  China's exports have declined to almost **zero** from previous levels of **3–5 million tons**, removing significant supply from the global market and supporting current price structures.  **[CF_3397669_12]** 

4. **Asset Valuation**  
   **Q:** How do you view the value of your assets given recent transactions?  
   **A:** Recent transactions suggest integrated ammonia plant valuations of around **$3.75 to $4 billion**.  **[CF_3397669_8]**  CF believes its assets are similarly valuable, offering sustainable free cash flow and positioning on the low end of the cost curve.  **[CF_3397669_8]** 

5. **Unlocking Shareholder Value**  
   **Q:** How can you unlock value and make investors see the light?  
   **A:** CF will continue disciplined capital allocation, including significant share repurchases, having already reduced outstanding shares by **50%**.  **[CF_3397669_21]**  Management believes ongoing buybacks and strong cash flow will ultimately reflect in a share price that matches the company's intrinsic value.  **[CF_3397669_21]** 

6. **New Project Timing**  
   **Q:** Any updates on timing for decisions on the new greenfield facility?  
   **A:** Completion of the FEED study by year's end is the key factor.  **[CF_3397669_9]** **[CF_3397669_22]**  CF expects clarity on Japanese government support by mid-Q1, which, along with other potential partnerships, will inform the final investment decision.  **[CF_3397669_9]** **[CF_3397669_22]** 

7. **Efficiency of Waggaman Plant**  
   **Q:** How is the Waggaman integration and efficiency progressing?  
   **A:** The Waggaman plant is operating at **10% above** its nameplate capacity and is CF's most efficient facility, consuming **under 30 MMBtu per ton** of ammonia.  **[CF_3397669_18]**  CF is pleased with its performance and has not yet explored further debottlenecking.  **[CF_3397669_18]** 

8. **Buyer Behavior Changes**  
   **Q:** Are you seeing shifts in buyer marketing patterns?  
   **A:** There's a trend of deferred purchases due to factors like lower corn prices and farmer financial stress.  **[CF_3397669_14]**  CF is proactively managing inventories and advancing programs to mitigate potential impacts.  **[CF_3397669_14]** 

9. **Termination of Mosaic Agreement**  
   **Q:** What are the implications of terminating the ammonia supply agreement with Mosaic?  
   **A:** While CF exercised its right to terminate the agreement, it anticipates continuing as a significant supplier to Mosaic.  **[CF_3397669_15]**  Additional ammonia volumes are being marketed through exports and industrial contracts, providing CF with a more balanced portfolio.  **[CF_3397669_15]** 

10. **Impact of Gas Prices**  
    **Q:** How are gas prices and geopolitical tensions affecting you?  
    **A:** CF benefits from lower **Henry Hub** gas prices due to robust North American production.  **[CF_3397669_17]**  Geopolitical events have tightened energy markets in Europe, supporting CF's competitive position as a low-cost producer.  **[CF_3397669_17]** 

11. **Carbon Capture Initiatives**  
    **Q:** Are you moving forward with other carbon capture projects?  
    **A:** Following progress at Yazoo City, CF is working on carbon capture at Medicine Hat and considers Waggaman next.  **[CF_3397669_20]**  These initiatives align with CF's strategy to reduce carbon intensity and meet customer demand for low-carbon products.  **[CF_3397669_20]** 

12. **Blue vs. Green Ammonia**  
    **Q:** How do you view the viability of green ammonia versus blue ammonia?  
    **A:** CF believes that while green ammonia has significant costs and energy requirements, achieving **65% to 95%** carbon reduction with blue ammonia will lead the market today.  **[CF_3397669_19]**  Over time, as renewable energy sources expand, green ammonia may become more viable.  **[CF_3397669_19]** 

13. **Emission Credits Impact**  
    **Q:** Did the sale of emission credits benefit EBITDA in the quarter?  
    **A:** Yes, CF sold **$47 million** of emission credits, benefiting EBITDA comparably to the prior year.  **[CF_3397669_23]** 

4f773f54d579c289528cee9aea994f0bdbe6ba13a4220fa0e5eba05837592207

1. **Blue Ammonia Project Investment**  
   **Q:** Can you update us on the blue ammonia project and its economics?  
   **A:** Management confirmed that the estimated capital cost for the new blue ammonia plant is around **$4 billion**, with the FEED study nearing completion to narrow the range to plus or minus 10%.  **[CF_3405080_12]**  They are optimistic about the project's return profile, expecting reasonable rates of return even before considering clean ammonia benefits, due to tightening supply-demand balances and anticipated average sale prices of around **$450 per metric ton** along with the 45Q tax credits.  **[CF_3405080_13]**  Potential partners are showing strong interest, and CF Industries may end up owning less than 50% equity while retaining operating and voting control.  **[CF_3405080_19]** 

2. **Capital Allocation Plans**  
   **Q:** How are you approaching capital allocation amid current dynamics?  
   **A:** Management expressed a bias toward deploying capital back into the business for growth projects that earn returns above the cost of capital.  **[CF_3405080_6]**  They also highlighted plans to return excess cash to shareholders, with **just under $1.5 billion** left under their share repurchase authorization, expecting to complete it by the end of next year, driving an incremental **approximately 10% accretion** in shares.  **[CF_3405080_6]** 

3. **Nitrogen Market Outlook**  
   **Q:** What's your view on nitrogen market dynamics and supply concerns?  
   **A:** They noted a constructive market setup due to reduced supply, particularly the absence of Chinese urea exports, which could amount to a **3–5 million ton** reduction, up to **10%** of global seaborne traded product.  **[CF_3405080_10]** **[CF_3405080_14]**  Demand remains solid, with India seeking an additional **1 million tons** by mid-December, and growth in South America.  **[CF_3405080_10]**  Limited inventories among producers and retailers set up a positive environment for pricing into the spring application season.  **[CF_3405080_10]** 

4. **45Q Tax Credits and Exxon Partnership**  
   **Q:** How confident are you in receiving 45Q tax credits in 2025?  
   **A:** Management is confident that in 2025 they will begin sequestering CO2 and receive the 45Q tax benefit of **$85 per metric ton**.  **[CF_3405080_7]** **[CF_3405080_9]** **[CF_3405080_21]**  Their partnership with ExxonMobil provides flexibility through access to multiple sequestration sites via the Denbury CO2 pipeline network.  **[CF_3405080_9]** **[CF_3405080_22]**  All discussions with Exxon suggest they will have Class VI permits, enabling CF Industries to sequester CO2 as planned.  **[CF_3405080_21]** **[CF_3405080_22]** 

5. **European Market and CBAM Impact**  
   **Q:** How do you see European dynamics affecting the nitrogen market?  
   **A:** They expect European producers to face challenges due to high energy costs, with a gas differential now at **$10** through 2026, making it difficult for non-integrated producers to continue ammonia production.  **[CF_3405080_17]**  By 2030, Europe may require an additional **3–4 million nutrient tons** of imports.  **[CF_3405080_17]**  The implementation of CBAM will increase costs for conventional producers, providing margin advantages for CF's low-carbon products, potentially up to **$150 per metric ton** benefit.  **[CF_3405080_17]** 

6. **DEF Business Growth**  
   **Q:** What's the outlook for your DEF business?  
   **A:** The DEF segment is a growth vehicle for CF Industries, projecting production close to **800,000 tons** of urea equivalent product, which trades at a substantial margin increase over granular urea.  **[CF_3405080_8]**  The dosing rate for DEF is increasing, with projections that North American demand could exceed **3 million urea equivalent tons**, up from zero in 2010.  **[CF_3405080_8]**  They have not experienced issues with crystallization due to strict quality controls.  **[CF_3405080_8]** 

7. **Ammonia Demand and Fall Application**  
   **Q:** How is ammonia demand shaping up for the remainder of the year?  
   **A:** Ammonia demand is strong, with the company expecting higher volumes in Q4 compared to Q3 due to the fall application season.  **[CF_3405080_16]**  Inventory levels are limited, and they have a substantial order book already in place.  **[CF_3405080_10]** **[CF_3405080_16]**  Weather conditions are becoming favorable for ammonia application, and this year could be a better season than last year.  **[CF_3405080_10]** **[CF_3405080_16]** 

8. **Production and Turnaround Activity**  
   **Q:** What are your production expectations considering turnarounds?  
   **A:** They aim to manage turnaround activity consistently year over year.  **[CF_3405080_7]**  While unforeseen events like winter storms and hurricanes impacted production in previous quarters, they hope to avoid such disruptions.  **[CF_3405080_7]**  They expect to produce around **10 million tons** of ammonia annually and will upgrade as much as their system can manage.  **[CF_3405080_7]** 

9. **Henry Hub Prices and LNG Impact**  
   **Q:** How do you view future natural gas prices and LNG impact?  
   **A:** Management anticipates that even with increasing LNG demand, U.S. natural gas production will meet supply needs, keeping Henry Hub prices around **$3** into 2026.  **[CF_3405080_20]**  The gas price differential benefits CF Industries, as higher costs for other global producers make them less competitive.  **[CF_3405080_20]** 

10. **Competition in Clean Ammonia Projects**  
    **Q:** What's your take on announced clean ammonia capacity globally?  
    **A:** They believe many announced projects are unlikely to materialize; out of over **107 projects** announced globally, they expect maybe fewer than **10** to be built.  **[CF_3405080_15]**  The time to build such projects is 4 to 4.5 years, and there's limited net ammonia production coming online before their own project's expected completion.  **[CF_3405080_15]** 

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CF Industries Holdings Inc (CF)

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