Terra Nitrogen Co L P 8-K Terra Nitrogen Company, L.P. reports fourth quarter and full-year results

Exhibit 99.1

	Terra Nitrogen Company, L.P.
	600 Fourth Street
	P.O. Box 6000
	Sioux City, IA 51102-6000
	www.terraindustries.com

NEWS

For immediate release	Contact: Joe A. Ewing
	(712) 277-7305
	jewing@terraindustries.com

     Terra Nitrogen Company, L.P. reports fourth quarter and full-year results

Sioux City, Iowa (February 9, 2006)—Terra Nitrogen Company, L.P. (TNCLP) (NYSE: TNH) today reported a net loss of $8.4 million, or $.45 per limited partnership unit, on revenues of $117.7 million for the fourth quarter ended Dec. 31, 2005. This compares with net income of $12.5 million, or $.66 per unit, on revenues of $81.6 million for the 2004 fourth quarter.

For the 12 months ending Dec. 31, 2005, TNCLP’s net income was $55.9 million, or $2.95 per unit, on revenues of $455.5 million, compared to net income of $45.9 million, or $2.43 per unit on revenues of $419.6 million in 2004.

Analysis of results
The fourth quarter loss was due primarily to a spike in natural gas costs caused by hurricane activity in the 2005 second half, partially offset by higher sales volumes and product selling prices. Ammonia and nitrogen solutions selling prices for the 2005 fourth quarter were 28 and 32 percent higher, respectively, than 2004 fourth quarter selling prices.

TNCLP’s fourth quarter ammonia and nitrogen solutions volumes were 23 and 1 percent higher, respectively, than those of the 2004 fourth quarter.

TNCLP’s natural gas unit costs for the 2005 fourth quarter, net of about $3.0 million of cost increases from forward purchase contracts, were 95 percent higher than those incurred in the 2004 fourth quarter.

The improvement in TNCLP’s full-year net income was due to higher product selling prices, partially offset by higher natural gas costs and lower sales volumes. Natural gas unit costs for 2005, net of about $0.5 million of cost increases from forward purchase contracts, were about 41 percent higher than those incurred in 2004.

Forward natural gas and product sales positions
TNCLP’s forward purchase contracts at Dec. 31, 2005, fixed prices for about 24 percent of its next 12 months’ natural gas requirements at about $7.4 million above the published forward market prices at that date.

At Sept. 30, 2005, TNCLP had fixed price sales orders for about 23 percent of its annual production capacity, on which it expected to generate an operating loss. Most of these fixed price sales orders were shipped and billed during the fourth quarter.

Distribution
TNCLP announced that there would be no cash distribution for the quarter ended Dec. 31, 2005. Cash distributions depend on TNCLP’s earnings, which are driven primarily by product selling prices, sales volumes, natural gas costs and production levels, as well as working capital requirements and capital expenditures.

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

Forward-looking statements
This news release may contain forward-looking statements, which involve inherent risks and uncertainties. Statements that are not historical facts, including statements about TNCLP’s beliefs, plans or expectations, are forward-looking statements. These statements are based on current plans, estimates and expectations. Actual results may differ materially from those projected in such forward-looking statements and therefore you should not place undue reliance on them. A non-exclusive list of the important factors that could cause actual results to differ materially from those in such forward-looking statements is set forth in TNCLP’s most recent report on Form 10-K and TNCLP’s other documents on file with the Securities and Exchange Commission. TNCLP undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

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Note:	Terra Nitrogen Company, L.P. news announcements are also available on Terra
	Industries’ website, www.terraindustries.com.

(Tables follow)

Terra Nitrogen Company, L.P.
Condensed Consolidated Statements of Income
(in thousands except per-unit amounts)
(unaudited)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2005			2004			2005			2004
Product revenues	$	117,609		$	81,762		$	454,784		$	419,198
Other income		114			(177	)		738			443
Total revenues		117,723			81,585			455,522			419,641
Cost of goods sold		121,315			61,268			378,213			351,310
Depreciation and amortization		3,072			5,628			14,117			12,648
Total cost of sales		124,387			66,896			392,330			363,958
Total gross profit (loss)		(6,664	)		14,689			63,192			55,683
Operating expenses		1,772			2,517			7,711			10,717
Interest expenses—net		(21	)		(342	)		(460	)		(905	)
Net income (loss)	$	(8,415	)	$	12,514		$	55,941		$	45,871
Earnings per limited partnership unit	$	(0.45	)	$	0.66		$	2.95		$	2.43

The amount of net income allocable to the Limited Partners’ interest is based on the Partnership’s net income and the proportionate share of cash distributed to the Limited Partners and the General Partner.

Nitrogen Volumes and Prices

	2005				2004
	Sales		Average		Sales		Average
	Volumes		Unit Price		Volumes		Unit Price
Quarter	(000 tons)		($/ton)		(000 tons)		($/ton)
Ammonia		79		363		64		284
UAN		523		150		518		114
Urea		—		—		—		—

	2005				2004
	Sales		Average		Sales		Average
	Volumes		Unit Price		Volumes		Unit Price
Twelve months	(000 tons)		($/ton)		(000 tons)		($/ton)
Ammonia		286		325		338		269
UAN		2,178		148		2,197		115
Urea		—		—		212		181

Terra Nitrogen Company, L.P.
Consolidated Balance Sheets
(in thousands)

	December 31,
	2005		2004
ASSETS
Cash and short-term investments	$	33,996	$	78,192
Accounts receivable		32,088		21,079
Inventories		26,732		15,729
Other current assets		12,356		4,244
Total current assets		105,172		119,244
Property, plant and equipment, net		75,920		80,425
Other assets		10,200		14,284
Total assets	$	191,292	$	213,953
LIABILITIES
Short-term note and current portion of long-term debt	$	12	$	63
Customer prepayments		31,673		52,871
Accounts payable and accrued liabilities		26,565		18,816
Total current liabilities		58,250		71,750
Long-term debt		—		8,212
Other liabilities		135		7
Total liabilities		58,385		79,969
PARTNERS’ EQUITY		132,907		133,984
Total liabilities and partners’ equity	$	191,292	$	213,953