CF Industries Holdings, Inc. (CF)

CF Industries Holdings, Inc. (together with its subsidiaries, "CF Holdings" or "the Company") is a nitrogen products manufacturer whose mission is to provide clean energy to feed and fuel the world sustainably, with a strategy focused on decarbonizing its ammonia production network—the world's largest—to enable green and low-carbon hydrogen and nitrogen products for energy, fertilizer, emissions abatement and industrial applications. The Company's core product is anhydrous ammonia, which is upgraded into granular urea, UAN (urea ammonium nitrate solution), and ammonium nitrate (AN), along with other products including diesel exhaust fluid (DEF), urea liquor, nitric acid, and aqua ammonia sold primarily to industrial customers. Principal customers include cooperatives, independent fertilizer distributors, traders, wholesalers, and industrial users.

As of December 31, 2023, CF's principal assets include six U.S. nitrogen manufacturing facilities (Donaldsonville, Louisiana—the world's largest nitrogen complex; Port Neal, Iowa; Yazoo City, Mississippi; Verdigris, Oklahoma; Woodward, Oklahoma; and Waggaman, Louisiana), two Canadian facilities (Medicine Hat, Alberta and Courtright, Ontario), a UK facility in Billingham, an extensive terminal and transportation network in the Midwestern U.S., and a 50% equity-method interest in Point Lisas Nitrogen Limited (PLNL), a Trinidad-based ammonia joint venture. The Company operates a strategic venture with CHS Inc., which holds approximately 11% of CF Industries Nitrogen, LLC (CFN), with associated supply agreements and semi-annual cash distributions. For fiscal years 2023, 2022, and 2021, CF sold 19.1 million, 18.3 million, and 18.5 million product tons respectively, generating net sales of $6.63 billion, $11.19 billion, and $6.54 billion, with gross margins of $2.55 billion, $5.86 billion, and $2.39 billion.

The Company is headquartered outside Chicago in Northbrook, Illinois, and trades on the NYSE following its 2005 IPO. Founded in 1946 as Central Farmers Fertilizer Company and operated as an agricultural cooperative until its 2002 shift to a performance-driven business model, CF's history includes the transformative 2010 acquisition of Terra Industries for $4.6 billion, its 2014 exit from phosphate mining via sale to Mosaic to focus solely on nitrogen, the 2015 acquisition of full ownership in CF Fertilisers UK, and 2015-2016 capacity expansions at Donaldsonville and Port Neal costing $5.2 billion that increased production capacity by approximately 25%. Most recently, in December 2023, CF acquired the Waggaman, Louisiana ammonia facility (880,000 tons annual capacity) from Dyno Nobel Louisiana Ammonia for $1.675 billion, coupled with a long-term ammonia offtake agreement.

The Company's five reportable segments are Ammonia, Granular Urea, UAN, AN, and Other, with combined North American production capacity representing approximately 40-44% market share in ammonia, granular urea, and UAN, and 19% in AN. CF is pursuing significant decarbonization initiatives, including a green ammonia project at Donaldsonville using electrolysis technology (commissioning began in 2024), a $200 million carbon capture and sequestration (CCS) project at Donaldsonville with an offtake agreement with ExxonMobil (targeted for 2025 startup), and evaluation of a greenfield low-carbon ammonia facility with Mitsui & Co. at its new Blue Point complex in Louisiana (estimated cost ~$3 billion), with a final investment decision targeted for second-half 2024. The Company has also signed a memorandum of understanding with JERA Co., Japan's largest energy generator, for potential long-term supply of up to 500,000 tonnes per year of clean ammonia beginning in 2027 for power generation applications, and idled/closed certain UK operations (Ince facility closed 2022; Billingham ammonia plant idled 2022 and permanently closed in 2023) due to elevated UK natural gas costs, while continuing to import ammonia for upgrading at Billingham into AN and other products.