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FULL YEAR: CF INDUSTRIES REPORTS A NET LOSS OF $277 MILLION
Source: CF Industries news release

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CF Industries Holdings, Inc. (NYSE: CF), the global leader in nitrogen fertilizer manufacturing and distribution, today announced results for its fourth quarter and full year ended December 31, 2016.

Fourth Quarter Highlights

*Net loss of $320 million, or $1.38 per diluted share; adjusted net loss(1) of $90 million, or $0.39 per diluted share(1)

*EBITDA(2) loss of $135 million; adjusted EBITDA(2) of $133 million

*New ammonia and urea plants at Port Neal Nitrogen Complex in operation

*Refinanced private placement notes

*Shipments of UAN in fourth quarter exceeded two million tons, a company record

*Record fourth quarter exports above 500,000 tons

*Net loss includes $134 million non-cash impairment charge related to Point Lisas Nitrogen Limited (PLNL)

Full Year Highlights

*Net loss of $277 million, or $1.19 per diluted share; adjusted net earnings(1) of $109 million or $0.47 per diluted share(1)

*EBITDA(2) of $395 million; adjusted EBITDA(2) of $858 million

*Accelerated tax depreciation on capacity expansion projects driving estimated federal and state tax refunds of approximately $800 million, expect to receive in third quarter 2017

*Record exports of approximately 1.4 million tons in 2016, 110 percent increase over prior year

Overview of Results

CF Industries Holdings, Inc., today announced a fourth quarter 2016 net loss attributable to common stockholders of $320 million, or $1.38 per diluted share, and adjusted net loss of $90 million, or $0.39 per diluted share. Fourth quarter 2016 EBITDA loss was $135 million, and adjusted EBITDA was $133 million. These results compare to fourth quarter 2015 net earnings attributable to common stockholders of $27 million, or $0.11 per diluted share; adjusted net earnings of $168 million, or $0.72 per diluted share; EBITDA of $254 million; and adjusted EBITDA of $445 million. Fourth quarter 2016 results include a realized loss on natural gas hedges of $5 million for the fourth quarter of 2016, compared to a realized loss on natural gas hedges of $30 million for the fourth quarter of 2015.

For the full year 2016, net loss attributable to common stockholders was $277 million, or $1.19 per diluted share, and adjusted net earnings was $109 million, or $0.47 per diluted share. Full year 2016 EBITDA was $395 million, and adjusted EBITDA was $858 million. These results compare to full year 2015 net earnings attributable to common stockholders of $700 million, or $2.96 per diluted share; adjusted net earnings for the full year 2015 of $896 million, or $3.79 per diluted share; EBITDA of $1.67 billion; and adjusted EBITDA of $1.98 billion. Full year 2016 results include a realized loss on natural gas hedges of $133 million, compared to a realized loss on natural gas hedges of $70 million for the full year 2015.

The company expects to receive tax refunds of approximately $800 million due to the carryback of certain federal and state tax losses from the 2016 tax year to prior periods. These tax losses are primarily related to accelerated tax depreciation of the capacity expansion projects that were placed in service in 2016. The cash refunds related to this tax loss carryback are expected to be received in the third quarter of 2017.

During the fourth quarter, the company completed the issuance of $1.25 billion of senior secured notes. The proceeds were used primarily to fund the prepayment of the $1.0 billion principal amount of CF Industries, Inc.'s senior notes due 2022, 2025 and 2027, plus a related make-whole amount of approximately $170 million.

CF Industries has completed a review of its equity method investment in PLNL, the company's 50 percent interest in an ammonia production joint venture located in the Republic of Trinidad and Tobago. This review assessed the recoverability of the company's carrying value of the investment. During the fourth quarter of 2016, the company recognized an impairment charge of $134 million relating to its investment in PLNL due to projected longer-term challenges with gas availability and potential price increases from the government-controlled gas supplier.


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