CF Industries Holdings, Inc. (CF) (NYSE Arca)

CF Industries Holdings, Inc. (CF Holdings) is a manufacturer and distributor of nitrogen and phosphate fertilizer products in North America. The Company’s operations are organized into two business segments: the nitrogen segment and the phosphate segment. Its principal products in the nitrogen segment are ammonia, urea and urea ammonium nitrate solution (UAN). Its principal products in the phosphate segment are diammonium phosphate (DAP) and monoammonium phosphate (MAP) and granular muriate of potash (potash). CF Holdings’ core market and distribution facilities are concentrated in the midwestern United States grain-producing states. On September 28, 2009, the Company announced that it has acquired approximately 7% of Terra Industries Inc.

The Company’s principal assets include nitrogen fertilizer complex in Donaldsonville, Louisiana; 66% economic interest in the nitrogen fertilizer complex in Canada (which the Company operates in Medicine Hat, Alberta, through Canadian Fertilizers Limited (CFL)); an integrated ammonium phosphate fertilizer complexes in Plant City, Florida; a phosphate rock mine and associated beneficiation plant in Hardee County, Florida; a system of terminals, warehouses and associated transportation equipment located primarily in the midwestern United States, and 50% interest in KEYTRADE AG (Keytrade), a global fertilizer trading company at Zurich, Switzerland. During the year ended December 31, 2008, CF Holdings sold 6.1 million tons of nitrogen fertilizers and 1.8 million tons of phosphate fertilizers.

Nitrogen Segment

CF Holdings operates nitrogen fertilizer production facilities in Donaldsonville, Louisiana and Medicine Hat, Alberta, and Canada. It owns the Donaldsonville nitrogen fertilizer complex and has a 66% economic interest in CFL, a Canadian joint venture that owns the Medicine Hat nitrogen fertilizer complex. During 2008, the combined production capacity of these two facilities represented approximately 20% of North American ammonia capacity, 34% of North American dry urea capacity and 18% of North American UAN capacity.

The Donaldsonville nitrogen fertilizer has four ammonia plants, four urea plants and two UAN plants. It has the annual capacity to produce approximately 2.3 million tons of ammonia (most of which is typically upgraded into urea and UAN), 2.6 million tons of liquid urea (including amounts upgraded into UAN) and 2.7 million tons of UAN (measured on a 28% nitrogen content basis). Medicine Hat has two ammonia plants that have a combined gross annual production capacity of approximately 1.3 million tons and a urea plant that has a gross annual production capacity of 810,000 tons. The complex has on-site storage for 60,000 tons of ammonia and 70,000 tons of urea. The Medicine Hat facility is owned by CFL. It operates the Medicine Hat facility and purchase approximately 66% of the facility’s ammonia and urea production.

Phosphate Segment

The Company’s phosphate fertilizer manufacturing operations are located in central Florida, and consist of a phosphate fertilizer chemical complex in Plant City and a phosphate rock mine, a beneficiation plant and phosphate rock reserves in Hardee County. All of Plant City’s phosphoric acid is converted into ammonium phosphates (DAP and MAP).

The Company operates a phosphate warehouse located at a deep-water port facility in Tampa, Florida. Most of the phosphate fertilizer produced at Plant City is shipped by truck or rail to its Tampa warehouse, where it is loaded onto vessels for shipment to export customers or for transport across the Gulf of Mexico to the Mississippi River. During 2008, the Tampa warehouse handled approximately 1.2 million tons of phosphate fertilizers, which represented 61% of its production. The remainder of the Company’s phosphate fertilizer production is transported by truck or rail directly to customers or to in-market storage facilities.

The Company competes with Agrium, Mosaic, Koch Nitrogen, Terra Industries, Potash Corp. and Simplot.

Author: Trader

Personal blog of a professional trader on the US stock exchange (NYSE, NASDAQ, AMEX ) Dmitry Gavrilov. Started his career at NYSE (New York Stock Exchange) in 2008 years in prop company . With 2009 of the year became a senior trader of the largest prop in Russia and began to train traders of the company. With 2011 of the year was a trader of GT Capital Group with the support of SMB Capital (USA).