CF Industries Completes Acquisition of Waggaman Ammonia Production Facility
01 Diciembre 2023 - 8:00AM
Business Wire
CF Industries Holdings, Inc. (NYSE: CF) today announced that it
has closed its acquisition of Incitec Pivot Limited’s (“IPL”)
ammonia production complex located in Waggaman, Louisiana.
Under the terms of the agreement, CF Industries purchased the
Waggaman ammonia plant and related assets for $1.675 billion,
subject to adjustments. The companies allocated approximately $425
million of the purchase price to a long-term ammonia offtake
agreement under which CF Industries will supply up to 200,000 tons
of ammonia per year to IPL’s Dyno Nobel subsidiary at production
economics. CF Industries funded the remaining purchase price with
cash on hand.
“We are pleased to grow our industry-leading ammonia production
capabilities with the addition of IPL’s Waggaman ammonia production
facility and team,” said Tony Will, president and chief executive
officer, CF Industries Holdings, Inc. “This transaction deploys our
capital efficiently, delivering immediate profitable growth by
adding one of the newest ammonia production units in North America
into our existing network while advancing our long-term strategic
focus on low-carbon ammonia as a clean energy source.”
Along with its offtake agreement with IPL, CF Industries will
continue to fulfill medium- and long-term offtake agreements with
two customers that were in-place prior to the acquisition. The
Company estimates that these agreements will generate gross margin
per ton commensurate with its existing ammonia segment prior to the
greater capacity utilization and operational and logistics
optimization CF Industries expects to achieve with the site’s
integration into the Company. Additionally, CF Industries
anticipates implementing carbon capture and sequestration (CCS)
technologies at the site on an accelerated timeline, increasing its
network’s low-carbon ammonia production capability while earning
45Q tax credits for sequestered carbon dioxide.
About CF Industries Holdings,
Inc.
At CF Industries, our mission is to provide clean energy to feed
and fuel the world sustainably. With our employees focused on safe
and reliable operations, environmental stewardship, and disciplined
capital and corporate management, we are on a path to decarbonize
our ammonia production network – the world’s largest – to enable
green and blue hydrogen and nitrogen products for energy,
fertilizer, emissions abatement and other industrial activities.
Our manufacturing complexes in the United States, Canada, and the
United Kingdom, an unparalleled storage, transportation and
distribution network in North America, and logistics capabilities
enabling a global reach underpin our strategy to leverage our
unique capabilities to accelerate the world’s transition to clean
energy. CF Industries routinely posts investor announcements and
additional information on the Company’s website at
www.cfindustries.com and encourages those interested in the Company
to check there frequently.
Safe Harbor Statement
All statements in this communication by CF Industries Holdings,
Inc. (together with its subsidiaries, the “Company”), other than
those relating to historical facts, are forward-looking statements.
Forward-looking statements can generally be identified by their use
of terms such as “anticipate,” “believe,” “could,” “estimate,”
“expect,” “intend,” “may,” “plan,” “predict,” “project,” “will” or
“would” and similar terms and phrases, including references to
assumptions. Forward-looking statements are not guarantees of
future performance and are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the Company’s
control, which could cause actual results to differ materially from
such statements.
Important factors that could cause actual results to differ
materially from those in the forward-looking statements include,
among others, the risk of obstacles to realization of the benefits
of the transactions with IPL; the risk that the synergies from the
transactions with IPL may not be fully realized or may take longer
to realize than expected; the risk that the completion of the
transactions with IPL, including integration of the Waggaman
ammonia production complex into the Company’s operations, disrupt
current operations or harm relationships with customers, employees
and suppliers; the risk that integration of the Waggaman ammonia
production complex with the Company’s current operations will be
more costly or difficult than expected or may otherwise be
unsuccessful; diversion of management time and attention to issues
relating to the transactions with IPL; unanticipated costs or
liabilities associated with the IPL transactions; the cyclical
nature of the Company’s business and the impact of global supply
and demand on the Company’s selling prices; the global commodity
nature of the Company’s nitrogen products, the conditions in the
international market for nitrogen products, and the intense global
competition from other producers; conditions in the United States,
Europe and other agricultural areas, including the influence of
governmental policies and technological developments on the demand
for our fertilizer products; the volatility of natural gas prices
in North America and the United Kingdom; weather conditions and the
impact of adverse weather events; the seasonality of the fertilizer
business; the impact of changing market conditions on the Company’s
forward sales programs; difficulties in securing the supply and
delivery of raw materials, increases in their costs or delays or
interruptions in their delivery; reliance on third party providers
of transportation services and equipment; the Company’s reliance on
a limited number of key facilities; risks associated with
cybersecurity; acts of terrorism and regulations to combat
terrorism; risks associated with international operations; the
significant risks and hazards involved in producing and handling
the Company’s products against which the Company may not be fully
insured; the Company’s ability to manage its indebtedness and any
additional indebtedness that may be incurred; the Company’s ability
to maintain compliance with covenants under its revolving credit
agreement and the agreements governing its indebtedness; downgrades
of the Company’s credit ratings; risks associated with changes in
tax laws and disagreements with taxing authorities; risks involving
derivatives and the effectiveness of the Company’s risk management
and hedging activities; potential liabilities and expenditures
related to environmental, health and safety laws and regulations
and permitting requirements; regulatory restrictions and
requirements related to greenhouse gas emissions; the development
and growth of the market for green and blue (low-carbon) ammonia
and the risks and uncertainties relating to the development and
implementation of the Company’s green and blue ammonia projects;
risks associated with expansions of the Company’s other business
relationships.
More detailed information about factors that may affect the
Company’s performance and could cause actual results to differ
materially from those in any forward-looking statements may be
found in CF Industries Holdings, Inc.’s filings with the Securities
and Exchange Commission, including CF Industries Holdings, Inc.’s
most recent annual and quarterly reports on Form 10-K and Form
10-Q, which are available in the Investor Relations section of the
Company’s web site. It is not possible to predict or identify all
risks and uncertainties that might affect the accuracy of the
Company’s forward-looking statements and, consequently, the
Company’s descriptions of such risks and uncertainties should not
be considered exhaustive. There is no guarantee that any of the
events, plans or goals anticipated by these forward-looking
statements will occur, and if any of the events do occur, there is
no guarantee what effect they will have on the Company’s business,
results of operations, cash flows, financial condition and future
prospects. Forward-looking statements are given only as of the date
of this communication and the Company disclaims any obligation to
update or revise the forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20231130863001/en/
Media Chris Close Senior Director, Corporate
Communications 847-405-2542 – cclose@cfindustries.com
Investors Darla Rivera Director, Investor Relations
847-405-2045 – darla.rivera@cfindustries.com
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