Terra Nitrogen Company, L.P. Declares Quarterly Distribution

DEERFIELD, Ill.--()--Terra Nitrogen Company, L.P. (TNCLP) (NYSE: TNH) today announced the declaration of a cash distribution for the quarter ended December 31, 2015, of $2.88 per common limited partnership unit. The distribution is payable February 29, 2016 to holders of record as of February 18, 2016.

Cash distributions depend on TNCLP’s cash requirements for working capital needs and capital expenditures, as well as its earnings, which can be affected by nitrogen fertilizer selling prices, natural gas costs, seasonal demand factors, production levels and weather. Cash distributions per limited partnership unit also vary based on increasing amounts allocable to the General Partner when cumulative distributions exceed targeted levels. With this distribution, TNCLP cumulative distributions continue to exceed targeted levels.

This release serves as a qualified notice to nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b). Please note that 100 percent of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.


Terra Nitrogen Company, L.P. is a leading manufacturer of nitrogen fertilizer products.

TNCLP is the sole limited partner of Terra Nitrogen, Limited Partnership (TNLP), owner of the Verdigris, Oklahoma manufacturing facility and related assets. Terra Nitrogen GP Inc., an indirect, wholly-owned subsidiary of CF Industries Holdings, Inc., is the General Partner of TNCLP and exercises full control over all of TNCLP’s business affairs.

Forward-Looking Statements

All statements in this communication, other than those relating to historical facts, are forward-looking statements. These 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 TNCLP’s control, which could cause actual results to differ materially from such statements. Important factors that could cause actual results to differ materially from expectations include, among others:

• Risks related to TNCLP’s reliance on one production facility;

• The volatility of natural gas prices in North America;

• The cyclical nature of TNCLP’s business and the agricultural sector;

• The global commodity nature of TNCLP’s fertilizer products, the impact of global supply and demand on TNCLP’s selling prices, and the intense global competition from other fertilizer producers;

• Conditions in the U.S. agricultural industry;

• 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 significant risks and hazards involved in producing and handling TNCLP's products against which it may not be fully insured;

• Risks associated with cyber security;

• Weather conditions;

• Potential liabilities and expenditures related to environmental, health and safety laws and regulations, and permitting requirements;

• Future regulatory restrictions and requirements related to greenhouse gas emissions;

• The seasonality of the fertilizer business;

• Risks involving derivatives and the effectiveness of TNCLP’s risk measurement and hedging activities;

• Limited access to capital;

• Acts of terrorism and regulations to combat terrorism;

• Risks related to TNCLP’s dependence on and relationships with CF Industries;

• Deterioration of global market and economic conditions;

• Risks related to TNCLP's partnership structure and control of TNCLP’s General Partner by CF Industries;

• Changes in TNCLP’s available cash for distribution to its unitholders, due to, among other things, changes in its earnings, the amount of cash generated by its operations and the amount of cash reserves established by its General Partner for operating, capital and other requirements;

• The conflicts of interest that may be faced by the executive officers of TNCLP’s General Partner, who operate both TNCLP and CF Industries; and

• Tax risks to TNCLP's common unitholders and changes in TNCLP’s treatment as a partnership for U.S. or state income tax purposes.

More detailed information about factors that may affect TNCLP’s performance may be found in its filings with the Securities and Exchange Commission, including its most recent periodic reports filed on Form 10-K and Form 10-Q, which are available through CF Industries’ website. Forward-looking statements are given only as of the date of this release and TNCLP 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.

Terra Nitrogen Company, L.P. news announcements are also available on CF Industries’ Web site, www.cfindustries.com.


Terra Nitrogen Company, L.P.
Dan Aldridge
Director, Investor Relations

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Terra Nitrogen Company, L.P. Declares Quarterly Distribution

Terra Nitrogen Company, L.P.