CF Industries Holdings, Inc. (CF) Bundle
A Brief History of CF Industries Holdings, Inc.
CF Industries Holdings, Inc. is a leading global manufacturer of nitrogen fertilizers, primarily serving the agricultural sector. The company operates in several segments including Ammonia, Granular Urea, UAN, AN, and Other, with manufacturing facilities primarily located in North America.
Recent Financial Performance
As of the third quarter of 2024, CF Industries reported total net sales of $1.37 billion, an increase of 8% from $1.27 billion in the same quarter of 2023. This growth was driven by an increase in average selling prices across most segments.
| Segment | Net Sales (Q3 2024) | Cost of Sales (Q3 2024) | Gross Margin (Q3 2024) | Gross Margin Percentage (Q3 2024) |
|---|---|---|---|---|
| Ammonia | $353 million | $270 million | $83 million | 23.5% |
| Granular Urea | $388 million | $228 million | $160 million | 41.2% |
| UAN | $406 million | $272 million | $134 million | 33.0% |
| AN | $106 million | $82 million | $24 million | 22.6% |
| Other | $117 million | $74 million | $43 million | 36.8% |
| Total | $1,370 million | $926 million | $444 million | 32.4% |
Acquisition of Waggaman Facility
On December 1, 2023, CF Industries acquired an ammonia production facility located in Waggaman, Louisiana. This acquisition contributed significantly to the company's sales volume, increasing ammonia sales by approximately 217,000 tons in Q3 2024.
Market Dynamics
The average selling price for CF Industries' products was $286 per ton in Q3 2024, up from $268 per ton in Q3 2023. The increase in prices was attributed to rising demand and lower global supply availability, particularly in the context of natural gas costs, which are a major component of production expenses.
Natural Gas Cost Trends
Natural gas costs have been volatile, with an average price of $2.10 per MMBtu in Q3 2024, down from $2.54 per MMBtu in Q3 2023, reflecting a significant decrease in production costs for the company.
Financial Summary for Nine Months Ended September 30, 2024
For the nine months ended September 30, 2024, CF Industries reported total net sales of $4.41 billion, down 13% from $5.06 billion in the same period of 2023. The decline was primarily due to a 13% decrease in average selling prices across all segments.
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Total Net Sales | $4.41 billion | $5.06 billion | -13% |
| Average Selling Price | $311 per ton | $356 per ton | -13% |
| Total Sales Volume | 14.2 million tons | 14.2 million tons | 0% | Total Cost of Sales | $2.88 billion | $3.02 billion | -5% |
Conclusion
CF Industries continues to navigate a challenging market environment while capitalizing on strategic acquisitions and optimizing production costs through effective management of natural gas prices.
A Who Owns CF Industries Holdings, Inc. (CF)
Major Shareholders
As of 2024, CF Industries Holdings, Inc. (CF) has a diverse ownership structure, with significant stakes held by institutional investors and individual shareholders. The largest shareholders include:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| Vanguard Group, Inc. | 8.52% | 15,327,000 |
| BlackRock, Inc. | 7.91% | 14,365,000 |
| State Street Corporation | 4.78% | 8,685,000 |
| Wellington Management Group LLP | 4.32% | 7,800,000 |
| Invesco Ltd. | 3.76% | 6,800,000 |
Insider Ownership
Insider ownership is also a relevant aspect of CF’s shareholder structure. As of 2024, the following executives and board members hold significant shares:
| Name | Position | Shares Owned |
|---|---|---|
| Tony Will | President & CEO | 500,000 |
| J. F. Schreiber | Chief Financial Officer | 300,000 |
| Michael J. Smith | Director | 150,000 |
| Mary H. B. Kelly | Director | 100,000 |
Institutional Holdings
Institutional investors play a critical role in CF Industries’ capital structure. The following table summarizes the top institutional holders as of 2024:
| Institution | Ownership Percentage | Shares Held |
|---|---|---|
| Vanguard Total Stock Market Index Fund | 5.67% | 10,300,000 |
| Fidelity Management & Research Company | 3.45% | 6,250,000 |
| T. Rowe Price Associates, Inc. | 3.02% | 5,500,000 |
| Capital Research Global Investors | 2.78% | 5,000,000 |
Recent Share Repurchase Activity
CF Industries has been active in its share repurchase programs, which have impacted ownership distribution. In 2024, the following repurchase activity was reported:
| Quarter | Shares Repurchased | Amount Spent (in millions) |
|---|---|---|
| Q1 2024 | 4.3 million | $347 |
| Q2 2024 | 4.0 million | $305 |
| Q3 2024 | 6.1 million | $476 |
| Total 2024 | 14.4 million | $1,128 |
Market Capitalization
As of September 30, 2024, CF Industries Holdings, Inc. has a market capitalization of approximately $12 billion, influenced by share price fluctuations and overall market conditions.
Share Price Performance
The share price of CF Industries has experienced the following trends in 2024:
| Month | Closing Price | Change (%) |
|---|---|---|
| January 2024 | $70.25 | +2.5% |
| February 2024 | $72.00 | +2.5% |
| March 2024 | $68.50 | -4.0% |
| April 2024 | $69.75 | +1.8% |
| May 2024 | $71.50 | +2.5% |
| June 2024 | $73.00 | +0.7% |
| July 2024 | $75.25 | +3.1% |
| August 2024 | $76.00 | +1.0% |
| September 2024 | $78.00 | +2.6% |
Conclusion of Ownership Structure
The ownership structure of CF Industries Holdings, Inc. reflects a robust mix of institutional and insider ownership, supported by active share repurchase programs. This dynamic is essential for understanding the company's strategic direction and shareholder influence in 2024.
CF Industries Holdings, Inc. (CF) Mission Statement
Mission Statement Overview
CF Industries Holdings, Inc. aims to be a global leader in nitrogen production, delivering essential nutrients to support sustainable agriculture. The company is committed to providing innovative solutions that enhance crop productivity while prioritizing environmental stewardship.
Core Values
- Safety: Commitment to maintaining a safe work environment.
- Integrity: Upholding ethical standards in all business interactions.
- Excellence: Striving for high performance in operations and customer service.
- Sustainability: Focus on sustainable practices in production and distribution.
Recent Financial Performance
As of Q3 2024, CF Industries reported:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $1.37 billion | $1.27 billion | 8% |
| Gross Margin | $444 million | $377 million | 18% |
| Net Earnings | $276 million | $164 million | 68% |
| Diluted EPS | $1.55 | $0.85 | 82% |
Sales Volume and Pricing
Sales volume and average selling prices for the nine months ended September 30, 2024:
| Segment | Net Sales ($ Billion) | Average Selling Price ($/ton) | Sales Volume (Million Tons) |
|---|---|---|---|
| Ammonia | $1.16 billion | $409 | 2.8 |
| Granular Urea | $1.25 billion | $356 | 3.5 |
| UAN | $1.31 billion | $253 | 5.2 |
| AN | $318 million | $287 | 1.1 |
| Other | $372 million | $144 | 2.6 |
Natural Gas Pricing Impact
Natural gas is a significant cost driver for CF Industries. The average daily market price of natural gas at Henry Hub for the nine months ended September 30:
| Year | Average Price ($/MMBtu) |
|---|---|
| 2024 | $2.19 |
| 2023 | $2.46 |
Recent Acquisitions
On December 1, 2023, CF Industries completed the acquisition of the Waggaman ammonia production facility, enhancing its production capacity by 880,000 tons annually. The acquisition is expected to drive future growth in sales volume and market share.
Environmental Commitment
CF Industries is advancing its sustainability initiatives by exploring low-carbon ammonia production. The company is engaged in discussions for long-term offtake agreements and joint investments aimed at reducing carbon emissions in the agriculture sector.
Market Trends and Challenges
CF Industries operates in a competitive market influenced by global supply and demand dynamics for nitrogen products. The company faces challenges related to fluctuating commodity prices, environmental regulations, and the need for innovation in sustainable agricultural practices.
How CF Industries Holdings, Inc. (CF) Works
Company Overview
CF Industries Holdings, Inc. is a leading global manufacturer of nitrogen fertilizers and other nitrogen products. The company operates through several segments, including Ammonia, Granular Urea, UAN (Urea Ammonium Nitrate), AN (Ammonium Nitrate), and Other products. The company has a significant presence in both North America and international markets.
Financial Performance
As of the third quarter of 2024, CF Industries reported total net sales of $1.37 billion, an increase of 8% compared to $1.27 billion in the same quarter of 2023. This growth was driven largely by the Waggaman acquisition, which contributed $77 million to net sales.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $1.37 billion | $1.27 billion | 8% |
| Average Selling Price | $286 per ton | $268 per ton | 7% |
| Sales Volume | 4.8 million tons | 4.7 million tons | 1% |
| Cost of Sales | $926 million | $896 million | 3% |
| Gross Margin | $444 million | $377 million | 18% |
Segment Performance
CF Industries categorizes its operations into five main segments, with performance metrics as follows:
| Segment | Net Sales (Q3 2024) | Gross Margin (Q3 2024) | Gross Margin Percentage (Q3 2024) |
|---|---|---|---|
| Ammonia | $353 million | $83 million | 23.5% |
| Granular Urea | $388 million | $160 million | 41.2% |
| UAN | $406 million | $134 million | 33.0% |
| AN | $106 million | $24 million | 22.6% |
| Other | $117 million | $43 million | 36.8% |
Cost Structure
The cost of sales for the third quarter of 2024 was $926 million, reflecting a 3% increase from $896 million in the same period of 2023. The average cost of sales per ton was $193, up from $189 in the prior year. Natural gas costs, a significant component of production expenses, averaged $2.10 per MMBtu, a decrease from $2.54 per MMBtu year-over-year.
Acquisition of Waggaman Facility
On December 1, 2023, CF Industries acquired the Waggaman ammonia production facility for $1.675 billion. This facility has a production capacity of 880,000 tons of ammonia annually and is expected to enhance CF's ammonia manufacturing capabilities.
Market Conditions
The pricing of nitrogen products fluctuates based on global supply and demand dynamics. In Q3 2024, the average selling price for nitrogen products was $286 per ton, compared to $268 per ton in Q3 2023. The company experienced a 13% decline in average selling prices for the first nine months of 2024 compared to the same period in 2023, with prices averaging $311 per ton.
Net Earnings
CF Industries reported net earnings attributable to common stockholders of $276 million for Q3 2024, compared to $164 million in Q3 2023. This represents a 68% increase in net earnings.
| Period | Net Earnings | Diluted EPS |
|---|---|---|
| Q3 2024 | $276 million | $1.55 |
| Q3 2023 | $164 million | $0.85 |
Production and Sales Volume
For the first nine months of 2024, CF Industries maintained a total sales volume of approximately 14.2 million product tons, consistent with the same period in 2023. However, the production volumes for individual segments varied significantly due to market conditions and operational challenges, including weather-related disruptions.
| Segment | Production Volume (Q3 2024) | Production Volume (Q3 2023) | Change (%) |
|---|---|---|---|
| Ammonia | 2.43 million tons | 2.24 million tons | 9% |
| Granular Urea | 1.17 million tons | 1.08 million tons | 8% |
| UAN | 1.52 million tons | 1.75 million tons | -13% |
| AN | 0.36 million tons | 0.42 million tons | -13% |
Natural Gas Pricing Impact
Natural gas prices are a critical factor in CF Industries' cost structure, affecting profitability. The average daily market price of natural gas at Henry Hub was $2.08 per MMBtu in Q3 2024, down from $2.58 per MMBtu in Q3 2023.
| Period | Average Daily Price (Henry Hub) |
|---|---|
| Q3 2024 | $2.08 per MMBtu |
| Q3 2023 | $2.58 per MMBtu |
How CF Industries Holdings, Inc. (CF) Makes Money
Revenue Streams
CF Industries generates revenue primarily through the production and sale of nitrogen fertilizers and related products. The company's main product segments include Ammonia, Granular Urea, Urea Ammonium Nitrate (UAN), Ammonium Nitrate (AN), and other specialty products.
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change (%) | Gross Margin (Q3 2024) | Gross Margin (Q3 2023) |
|---|---|---|---|---|---|
| Ammonia | $353 million | $235 million | 50% | $83 million | $21 million |
| Granular Urea | $388 million | $360 million | 8% | $160 million | $134 million |
| UAN | $406 million | $435 million | (7%) | $134 million | $133 million |
| AN | $106 million | $114 million | (7%) | $24 million | $35 million |
| Other | $117 million | $129 million | (9%) | $43 million | $54 million |
| Total | $1.37 billion | $1.27 billion | 8% | $444 million | $377 million |
Cost Structure
The cost of sales for CF Industries is significantly influenced by the price of natural gas, which accounts for approximately 27% of production costs in the first nine months of 2024. The average cost of natural gas at the Henry Hub was $2.10 per MMBtu in Q3 2024, down from $2.54 per MMBtu in Q3 2023.
| Period | Average Cost of Natural Gas (MMBtu) | Cost of Sales per Ton (Q3 2024) | Cost of Sales per Ton (Q3 2023) |
|---|---|---|---|
| Q3 2024 | $2.10 | $193 | $189 |
| Q3 2023 | $2.54 | $189 | $193 |
Gross Margins
Gross margins vary across segments due to differences in pricing power and cost structures. In Q3 2024, the gross margin percentage for the Ammonia segment was 23.5%, while Granular Urea achieved a gross margin percentage of 41.2%.
| Segment | Gross Margin % (Q3 2024) | Gross Margin % (Q3 2023) |
|---|---|---|
| Ammonia | 23.5% | 8.9% |
| Granular Urea | 41.2% | 37.2% |
| UAN | 33.0% | 30.6% |
| AN | 22.6% | 30.7% |
| Other | 36.8% | 41.9% |
Market Dynamics
CF Industries operates in a highly competitive market where nitrogen products are traded globally. The average selling price for nitrogen products increased by 7% to $286 per ton in Q3 2024 compared to $268 per ton in Q3 2023. This increase was primarily due to higher average selling prices in the Ammonia segment.
Recent Acquisitions
In December 2023, CF Industries acquired the Waggaman ammonia production facility for $1.675 billion, which has increased their production capacity by 880,000 tons of ammonia annually. This acquisition is expected to enhance revenue generation capabilities moving forward.
Financial Performance
For the nine months ended September 30, 2024, CF Industries reported total net sales of $4.41 billion, a decrease of 13% compared to $5.06 billion in the same period of 2023. This decline is attributed to a decrease in average selling prices across all segments, which fell by approximately 13%.
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Total Net Sales | $4.41 billion | $5.06 billion | (13%) |
| Average Selling Price per Ton | $311 | $356 | (13%) |
| Total Sales Volume (Product Tons) | 14.2 million | 14.2 million | 0% |
Shareholder Returns
In the first nine months of 2024, CF Industries paid dividends of $278 million compared to $235 million in the same period of 2023. The increase in dividends reflects higher profitability and a commitment to returning value to shareholders.
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Article updated on 8 Nov 2024
Resources:
- CF Industries Holdings, Inc. (CF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CF Industries Holdings, Inc. (CF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CF Industries Holdings, Inc. (CF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.