CF Industries (CF) 2 Nov 232023 Q3 Earnings call transcript

Company Profile

Participants

Martin Jarosick	executive
W. Will	executive
Bert Frost	executive
Christopher Bohn	executive
Joel Jackson	analyst
Steve Byrne	analyst
Richard Garchitorena	analyst
Joshua Spector	analyst
Adam Samuelson	analyst
Andrew Wong	analyst
Benjamin Theurer	analyst
Vincent Andrews	analyst

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and welcome to CF Industries' First 9 Months and Third Quarter of 2023. [Operator Instructions]

I would now like to turn the presentation over to the host for today, Mr. Martin Jarosick with CF Investor Relations. Sir, please proceed.

Martin Jarosick

for CF thanks call. earnings and morning, joining Industries the conference Good Development me CEO; Vice Frost, Market Will, are President Supply Bohn, Sales, With Tony Bert Chris today CFO; and of and Chain. Executive

quarter statements. results, that historical results These session. its Statements a the this first and in afternoon. reported on Industries outlook website of facts review presentation of are and not performance for yesterday the uncertainties CF XXXX forward-looking we'll question-and-answer our to X made are the this involve call months on and future statements third that discuss our guarantees are call, host not risks, On are predict. and and difficult assumptions then

or factors Therefore, detailed website. release in Also, statements. which actual posted reconciliations available outcomes may results that our differ press SEC, are and may presentation our in measures expressed in on information filings implied More our may be about materially on the and our is affect between non-GAAP website. performance any the GAAP found and find with what you'll from

me let Tony Now CEO. President Will, and introduce our

W. Will

Thanks, months generated and XXXX, first financial the results which good X posted Yesterday approximately morning, for we Martin, afternoon, we $X.X of adjusted our EBITDA in billion. of everyone.

nitrogen execution months the trailing Our strong These a balance XX CF production. and flow energy $X.X reflect Industries and North billion results American free global by operations cash constructive continued was supply-demand net spreads cash from billion. was favoring team, $X

the low chain. across season North forward, supply lie demand term, opportunities expect ahead. application that remain In in about for near positive to we the nitrogen the due Looking the strong America inventories we very XXXX

beyond. plant adding nitrogen of a the balance. our expect In tightening to the facility acquisition and global medium volumes production Waggaman the to We for industry term, point this XXXX close fundamentals year, ammonia network and supply-demand that to

growth keep new expected pace Over production per year in not traditional does applications. of capacity demand with of the next approximately X the nitrogen years, X.X% construction

constraints around gas regions. to important regions projected several natural and Additionally, cost are those the nitrogen given availability production, of have reduced in

longer meet Finally, returns provide to goals. expect opportunities and while our us clean to initiatives energy for term, decarbonization strong the helping multiple we company, growth our

about generation are repurchases. the optimistic years to as drive us strong to value together, long enable shareholders Taken dividends our term continue opportunities This through will in we investments ability to very in disciplined over cash and well ahead. to the share growth returning as through capital create

global more let it that, discuss detail. With conditions market Bert, will turn Bert? in me who nitrogen over to

Bert Frost

Thanks, Tony.

year, quarter attractive economics, completed values, channel. softer as aggressively interest prices low Europe The purchasers purchasers farm a often spring. of current third early is in period and inventories demand and crop entered in from the America for by positive for needs driven are This the next nitrogen their softer quarter in assess the and the applications North third market the strong American nitrogen North

the the over to prices per $XXX by fourth September, demand a built end early September. and ammonia into books $XXX stretched our quarter quarter per the from in Industries order in UAN up early quarter. quarter. higher the helped and drive moved third prices below during nitrogen Orleans New good ton barge in CF ton book of well in the Urea order Strong early

ton $XXX from quarter. the While metric Tampa the to per $XXX during per moved ammonia ton, metric contract

the North new inventories as and year. we demand America We be enter in substantial still believe nitrogen future to need low will met remain

spreads and favor environment this quarter wide low for positioned continue base. inventories order open today well global to American low-cost and given manufacturing are our that energy North XXXX of book first for our an beyond We the

coming the project America, we India from North months. significant and in demand Brazil of nitrogen Outside

quarter so fourth As urea in expected, India their X.X tender. far, has million tons in of securing the latest active been

will We second for robust February for in cotton corn crop through and Brazil be expect urea planting. demand

demand years XXXX by season. remain from end global should averages led the of agricultural to X term, for growing resilient Longer nitrogen with green the last expected the stocks approach

gas in production We Trinidad, constraints years also challenge some recent expect key have the XXXX supply the tons producing continued an regions. to XXXX metric per remains availability X average. nearly of seen year loss Natural in which to ongoing in of million compared

levels This of made to the region gas includes million million nearly ammonia tons our last U.K. export the the ammonia XX X in accounted the ammonia prices closure as bring lower purchase well to producer. the marginal capacity of impact purchasers production months have compared the the as has to in permanent nitrate CF XXXX natural High upgrade Europe, averages. are become global Ammonia Europe plants, in capacity. for X which top ammonia and of over UAN, as destination for ammonia urea. X XXXX tons million industry's

government continue the India other participation restrain in government from for Chinese actions the regions. August Chinese closures, market global In controls The urea reinstated tender. export contributed producing addition and volumes large to to urea after curtailments producers

gas Egypt. affect Egyptian production Additionally, by nitrogen the intermittent in natural curtailments government to continue

that, the call me to over turn let Chris. with And

Christopher Bohn

Thanks, were end Bert, of reported the months and on billion. the billion EBITDA $X.XX cash approximately September, balance share. $X.XX sheet of $X.XX EBITDA of per $X.X for adjusted At the the net stockholders attributable billion. XXXX, approximately earnings to diluted was X first company or common

$X.XX Waggaman expect facility, We to of the have December for and X. acquisition which billion earmarked the we cash ammonia on close of

a cash end the billion. As $X our was September at available forma approximately result, of pro

X.X million XXXX. X We in expect company-wide gross million to between ammonia tons production and be

We we range capital ammonia in in to We network. of the from as our add be capacity expect expenditures XXXX project to higher Waggaman $XXX tons production XXX,XXX will XXXX million that facility of significantly be gross $XXX million. roughly for to ammonia the

Donaldsonville ammonia green nearing complex the completion. Our mechanical is at project

return million startup the in our above Donaldsonville, per capital goal cost tons also track X project, a us our advance accelerate and for sequester year. profile towards progress We enable COX and at early well dioxide of permanently of carbon XXXX. XXXX decarbonization continue to This is will unit dehydration will compression offers which on which to

our decarbonizing existing continue timed that to carbon is ammonia evaluate with capacity low with growth Along demand. well we network,

the which our the We for the end one with of of the investment proposed is year, before to FEED outputs venture a complete joint study decision. Mitsui be expect final many into

X our the remain start capital for more also committed We shares have outlook. $XXX million. Since to million repurchased year, returning to given shareholders, the excess cash free than approximately of generation we

to expect favor in at continue purchases layered to levels. We opportunistic attractive

remarks Q&A. call With the before open that, provide Tony some to we closing will

W. Will

Chris. Thanks,

X CF to during the In did teamwork move X all at deliver from materials. thank to want they to results. outstanding we months on Industries Before for I your I questions, XXXX. our first Their of want to slides highlight closing, everyone continues

being Page this the to consistent our plant XX in Waggaman increased recap approximately Since ammonia while creating our reduce we a by our latest selectively horizon. approach CAGR count. we long-term to production XX% business Xx, XXXX, capacity provides thoughtfully participation share our steadily the network, value. example, of We time add the have over and outstanding a

the of the that assets. Page demonstrates want to in operators best are highlight of types world I XX these we also

utilization enabled innovation. our on proud a have unmatched and essentially by collective a of without their to team's of peer. record continuous commitment excellence We I'm long asset safety culture safety track focus

than more this our evident Awards. Wilson annual Safety is in Nowhere

outstanding with helped positioned near organization. Ontario well complex, drive medium across improvement for these encourage Courtright the what website. CF but will I In and all innovations was terms, margin finalists we learn year strong the this to winner everyone expect We future. more continuous are supply-demand on tightening the the believe balance Our to company's were bright about and Industries be opportunities. a has nitrogen a we global the

platform the a production company. in low-carbon Longer growth disciplined term, for robust our investments ammonia provide

result, long-term a to substantial we cash expect flow enabling years the strong in ahead, free shareholders. As for to create value generate us

open the operator, to With call that, now we your questions. will

Operator

Instructions] [Operator

take will question, which will first with BMO we time, come this Joel Jackson Capital from At Markets. our

Joel Jackson

gas or Is be in and else that prices of you is, higher It great. seasonal? would seems isn't. the a you and So are that a Can marginal the last sometimes is production. gas Do through lot prices, cost sometimes whether it European tons can of is provide you the Anything European that? big on lower not. it question like issues couple it geopolitical marginal gone we've years think elaborate production

W. Will

pretty from Yes. and honestly, kind forth high I shifts mean quartile other it the you to in costs on sort storage they and I patterns and evident probably fourth high with out, point to ammonia if were ago, at, million of just it's production neighborhood operate Joel, challenged I think places. tons out earlier, upon a think as relative weather years It's X what's look going in back operating third X and of quartile But depends to has come that as in somewhere mentioned there. of where of million X you to the environment that Bert

where point, your gas of or there is government other parts controls challenged to Bert enforced the whether curtailments. or export because it's But as of world, times are equally said, Asia

that some earlier and year well. Egypt think this of had Nigeria I as

curve, that's dynamic end is gas. the But influx. the U.S. and the it definitely thing access can we low and at supply say to have the So a situation of firmly is X we consistent is

So our are. with and where happy we're really our network plans

Bert Frost

European a move you're ours to of the gas and that thinking efficiency an inefficient. costs but you and comparisons, and and these or what the of MVP, and the X the equating to operate TTF, you're Eastern $XX think and of in JKM into are world environment Joe, and when imports X, forward back some we're in of of seeing question even whether also do the ton in -- plans, combination gas to in or and to going being the the plants gas high it's in a just of MMBtu age value, it against that's look the I the and operate then see locations to have separation. you Asia, cost that Yes, those operate. at they'll that's the how coal FSU Europe level marginal $XX, reflected that some that the will that and the curve and then about of inability when the reflected dynamic, how when is feathering others But get And of plans able of current European call you

Joel Jackson

quickly, year you're talk disagreement? I from think forward thinking dispute versus for of about sensitive going going your 'XX I sense past? a but am How it's Orica as that and that nitrate the what's about anything about margins next ] your the the really Nelson read [ volumes on sure you're and having plan considering the topic with should on topic filings, there, the could probably Just ammonium we you some Brothers. in

W. Will

Yes.

ammonium and our there around facility. capacity at run we're Our do capacity. ammonia our expectation City, we the nitrate Yazoo to is nitrate. U.K., that is although then anymore, RAN our the importing over ammonia in production centered it In really solid we to ammonium upgrading continue U.S., don't Mississippi And

expectation on margins So constructive to is into are our And good forward. given the ammonia our curve be going going largely get upgrade bring and our margin opportunity to the a Billingham gas we're It. volumes and same forward on

really with. we're topic really segment, you that's under the comment a I RAN pleased that overall, it's on because the dispute referenced can't at matter And moment. earlier So

Operator

come Stephen from of our Bank Byrne America. question will And with next

Steve Byrne

the topic, volumes in your think and into -- corn third urea? you in upgrade fill at connection better Waggaman tons than your or were more we post logical? Donaldsonville. that quarter pricing that? with How change even than move maybe ammonia just more those ammonia so might robust urea Is you Waggaman can ammonia? was that then volumes do to summer from belt Was you though could given Any on up the Donaldsonville maybe comments that really much And expected, operations

W. Will

Yes.

about start customers facility question me The with supply Waggaman. for in Waggaman are off Steve, the facility. We're for. largely spoken existing are has let agreements So that recipient those with that volumes place and pleased a very

than to more out looking And able belief make produce. we not that can in changes historically plant get to we're been it's what of so consistently is regard. that any And our

excited to the that So about we're plant network. added

Relative then we much to how opportunities at based DVille the upgrades full We granulated forth swing UAN capacity, margin run between between and versus basically back of products. at upgrades. and that's least urea much plants on make various tend we how relative the to the

took is some Hat, Donaldsonville upset turnaround another not we're dramatically Medicine there's quarter, the that have opportunity plant really upgraded the ammonia Relative So had full plans an to our to production product we increase urea Alberta facility. an on. the of mix running a because just in off-line we at amount upgrade in did third and

ammonia of the And and both therefore, to result just granular was up in longer we the with planned that make maintenance, unplanned ended through ability a position. so lower And quarter. net

his running full trying took levels appropriate were Bert kind inventory steps And we could and to team sure and the plants make really to on manage rates. focused keep of

Bert Frost

That's would the did I exactly system DVille in volumes out add thing America. what happened. is The export only we additional as we balance of North

Hat the what said, we're some up being balance moved the Tony a Medicine then Oklahoma exports and work issues, to one we the were turnaround that product we had plants the values had so at As of down, of but that at some lower moving was then Donaldsonville then and that's ended and time. at value, our

W. Will

we're full out the we're network again. in back is on maintenance production and running urea our activities news the And up good of terms of

the of next first and looking we're forward So half to the fourth year. quarter

Steve Byrne

helpful. to blue very brain a want I bit And outlook pick your Tony. ammonia, the just about That's little for

are some You likely do players. And one plants? this because reforming. plant? in conflict several think the this at all? also that when discussions partnership Mitsui. have autothermal might you And its road, of to kind down whereas Does these multiple about have JERA, you in methane this It's were any steam result LOTTE, these could It's Or considering prefer POSCO. it's reformer greenfield with just be into play you an that not

W. Will

the hole comments, going finishing high. But to opportunity Chris the the intensity. is carbon here, of the basically a too Donaldsonville out plant, the that's appetites from for up blue different conventional ultimately, FEED steam utilization down And of also without right we're together get you And operators the but and green of there close much as his the rabbit I jurisdictions notion of parts. a Yes. spare mentioned, ammonia as we a highest in on fact Steve, indicated copy methane reforming which only study carbon down the share operating road copy And rate they're fantastic to that of ammonia quite just like is technology asset us so #X, not believe basically that it that, different plant allow world. or plant in is have lower does. reforming carbon the think in the make ammonia. common at steam for to convenient is the This ultimately, where intensity shorthand and reforming at than measure least to first to we're blush, possibility provide get intensity carbon autothermal going a carbon of a methane does train beginning

to be be another in conventional theoretically, to So low thermal estimates The integrated months. We're we engaged doing reformer flue capture added the get a study could for are carbon with FEED number gas also it. won't a about that a alternative steam those on flue could be engaged very, cost gas in probably intensity so to thermal. so on It methane capture, technology an very reforming auto study technology a from XX all in plant. stand-alone auto

a forward. potential applications we're new different going And of clean the demand got excited and about developing number we've appetite pathways for So ammonia.

comment, in very mentioned earlier about fact applications, is the excited short forward. I going in also the to think As that be even traditional going nutrient my world we we're

think I there. out demand So the clearly is

North America's very place assets as law best capture rule operators access carbon given the And sequestration, is to low-cost and world. natural are, We favorable the plentiful as said, be. of this recognized of around these a in I and well gas kind as the increasingly as of to framework

navigate add there think engaged opportunities. from not conversations build of we are, a in different of sets as we multiple us evaluating Blue but including City, in standpoint, at of that They types once our manage at situation sources variety with because new have parties. space. think there. Waggaman are for we once only all kind to And we're global Yazoo of in production CCS look potentially Donaldsonville, all -- we add said, that through decarbonized of a that Mississippi can well fact and we ways, ammonia And the conflicts very us to TCS plant you numerous if of facility Point I these we our complex, So up terms this leader any going the also a we

multiple have multiple of of arise. we'll navigating just ways the production, really so points conflict of And they excited should honestly, about we're ahead us. potential And opportunities

Operator

with will from next Our Wells Garchitorena question Richard come Fargo.

Richard Garchitorena

was on wondering you once us plant you probably closing rates running believe the your Just December could of take give acquisition, I X. an with ramp-up was thoughts sub-XX% in ownership. Waggaman update IPL. operating the if terms I under the

do up you've And done of first your the can be take sort you to it how you unveiled that recent of think to plants? the announced related work that, operations think So those synergies you to you've you long acquisition given the great. get any rest would that since

W. Will

Yes. mean is consistently think it we come higher and can the of network. that we the that fact I tons think rates from plant perspective the run into incremental our that synergy biggest I out at get

And where at most purely cost important margins, basically therefore, those aspect foremost that's tons variable first very so of and that's incremental all the at this. high and and are

plant us in think gives the I in terminalling some flexibility got about we about on so and logistics flexibility ship access that pipeline, aggregate just some to from, and transportation how is terms also ship and And system think the turnarounds Bert It's he scheduling it as Midwest. the of into gives minimizing it's costs. a additional it thinks locations.

attractive buying we're it, So the of plan. I value we're first think, But about kind us. for how the thinking that's an at is value biggest really foremost, and

of incremental nice very more we can attractive it's some that should IPL generate and get of production well, margin think we tons think us. out for for it I as

Richard Garchitorena

Okay. is follow-up, And the and on should levels Donaldsonville as TTF? guide this your then how we million, $XXX prep well given year, for for work as $XXX there XXXX progress anything to just the CapEx Waggaman a CapEx about there in that million as think

W. Will

Yes.

finishing not year So getting, is the there. of The improvement completion, to an next got project all CapEx of way and mechanical Waggaman what Waggaman some expecting baked end perspective, and the as we're we've our is this in systems well green our of improvement things plus continuing ongoing all plant the year's into process it darn on part up of on of close and if to our that -- basically compression progress Donaldsonville of this do as the year at integration as dehydration at there, to embedded in systems in a network. IT turnaround our from and including ammonia

is So of you. rolled gave that Chris number all that into the

one being year to consistently world-class area an range that, and has million this think the are in utilization $XXX We in of very stuff, year of all -- without and from our well. we Ashraf, great to discipline keep is brought safe $XXX out but factor standpoint million $XXX the to able safe operations people onstream and processes asset having running high and plate to get as incredibly gold I and

say an really is excel. would I where this So we area

Christopher Bohn

is to just could I Richard, Yes. add if I -- that. if could Chris, this on

and to to million. And better historically $XXX period, can project-wise our turnaround $XXX that million particular for year. the generally period, to line the turnarounds, of And our we what is on accomplish end higher period. QX we also $XXX actually sight million, of but spending reduced we this until have was turnaround down through we was what we did the get that from what because So once those $XXX range the been heavier after maintenance

for as have we Tony because necessarily go it in site number as forward. months, at speaking site, may the into Waggaman was built CapEx much yet, be that we and will the don't looking I will about pretty XX think it's have what XXXX we

Operator

question from Spector And our come UBS. next Josh with will

Joshua Spector

two, what seen of urea kind months I in near look decline despite the guess, what's that to Bert, attribute do coming you wanted And over to? kind last you season. ask the I stronger North your view month term. there? one, of some we've prices the when entering America over First,

Bert Frost

Yes.

interesting So urea has ride. been an on

see out restrictions $XXX As accelerated has then $XXX year will -- range and demand on new I $XXX, look and and mentioned it has in India the you and entered and for to back significant today. in still in some India's a come South Northern to the then prepared And down based America, Brazil, to then America through of across at and the $XXX remarks, where of out transition Hemisphere the lot probably China's demand being global Europe. we'll issues when since the over from to the dropped and NOLA demand from, demand And be fulfilled quarter North into QX $XXX. we settled we

solid. side, urea So We've in other as well supply the issues continued restrictions gas out Trinidad on of we upgraded The demand as that and mentioned affect the restrictions. seen and in -- more is products Europe upgraded the China.

more towards market the has balance is moved So probably that tight an okay in range. and We're believe demand. supply-demand we

pricing improve as QX and we expect well go to into to QX demand We as accelerate. as

South at in and planted performance looking crop good XXXX XXXX, of the acres but acres for solid more America crop. XX not below million million, for significantly but We're wheat, second out XX then so, the

good but think with it's in we're There's volatile. globally. a spot. is gas, pricing -- demand And So urea, the like good is I volatility

Joshua Spector

And with Tony, Mitsui. to here I timing JV the term, the ask wanted about appreciate longer I for that. just more just

to have next Or there about still that mid- mean is year? invest will be the talking about Medi that evolves, next prior off Japan that any subsidy is how you about And completing conversations, it? late thinking time study milestone shortly. timing line some From year? early from reason mid does or decision in support our the you're next a So that later to to year, FEED talked with make how you

W. Will

Yes.

forward, X might and X like feels be I a think the little governments, with bit step decision-making steps It situation many a JERA's little Medi back. fluid.

to the come going place conclusion know to they're Japan it's kind strong in Korea. anything, are and to putting precision users that in happen. important in are fact drive hard softening that for tool ultimately we with the our what's on marketplace. based But believers to evaluation when their with And more on schemes and the that becoming to going more exactly ultimately to It's with be going going both and it's of subsidy remain compelling as government. ongoing end firm if opposed an in conversations the decarbonization, going potential to on So

So we're very optimistic about to step finalize able how that demand profile the develops. It's people more kind governments are forward. a and question of of when things

we're about hopeful are dialogues in the little Chris year short of study saying We're process decision, February. going continuing our things. call a full We -- continuing definitive one final quarter ongoing as about to investment project, in our to to is more have constructive into decision. but fourth to making on to being be be mentioned, that partner/partners able I'm a definitive have FEED input stop more making things potential and important with in very the

So just at. a probably I us really horizon tuned. for we're where That's would update good to time say, Josh, stay

Operator

Sachs. Adam question And from next will our with come Samuelson Goldman

Adam Samuelson

the of Tony, to new also pursuing. the and in of diligence the in pre-engineering agreements with you kind or little ammonia blue seem of near this supply project customer be I offtake which a kind disruptions overall about in market, helping mean a of of than balance. lot some a activity kind maybe bit happening kind is terms talked bit in less of There's of ammonia the nitrogen term, certainly the you little

use the to in in be you how blue market place side that ammonia that comfortable is to absorb there's of market ammonia Or of concerns -- look the feel there next that you Are -- kind over that next do yet? end-demand might see But fertilizer any do before some couple still merchant if some -- of over years? comes do really the nutrient that at you the on needed? the sufficient a tightness you

W. Will

certainly prepared able things of details kind number ground of remarks of have when my more are the mentioned and in to sense, years so you construction X break it if to offline this Adam, is right takes under look provide now, Yes, at in and production. makes announce and as one basically I actually it of that before globally is that projects that something you the

So you visibility of of does a have much in X% next to coming demand in good online fertilizer net online with capacity amount not The terms capacity keep how new the X a growth coming traditional up very X.X% is applications. years. in

tons supply we so the Bert million fundamentals some tightening million tons down based Trinidad in of to that's think experience of layer that you and to going disruptions before production, we about in in just X marketplace, are Europe million And down S&D an on the disruptions X production, talked the of with being other being X elsewhere the world.

S&D the we the next balance years. very on X over constructive are So globally

be actually Capital cost build to to seen plants running. new get get up announce and go are remains to built. to think that actually harder many lot blue it how get financial a and when I continues easy it's announced and it one close it's

years position, with the have good very hard the a seen are to having partnerships these that a it's that really speculate couple projects for promising. of from. are. away have we work. on think lined out And end We've where user they X things others, math announced on demand if next been people can walked me make have I to we we based think up, We look the in go So secured as forward we're that

a that's sources even prevail you one Stay that's do want and to periods going multiple Or because end build expense got do to up forth. to say to So supply day, got facility of here, so it I I of At to decarbonized user, these things. come. want more an and you of product is again, for rationality the with guarantee single would up the you're someone if just line is tuned. And production turnaround end think with a risk? big discipline can some line level someone through and of

about our position in good really So we marketplace. feel this

Bert Frost

you Trinidad several And operating, is mentioned just difficulties an Bert, Europe. gas about out. tons and lack operating in at you in is additional of ammonia, not and coming remarks not When comments. is feather we through in million in, additional of Adam. Russia prepared take the you This the Brazil if But some look the Togliatti Ukraine out and

of So it Trinidad, in movable of the back to out saw X and calculate us. pricing, amount When to X you've the and why X out for bounced the of $XXX up got Brazil of $XXX a it be X is reflection could Europe, I think into if out or you lows, for Russia a attractive up very ammonia quickly X, hit we global market. And and range now substantial range market. which the that's the

Now Donaldsonville let's products, we're it XXXX seeing be regarding globally. on with will agricultural carbon that industrial low our applications just and in low-carbon interest and whether a for coming or blue that's substantial call and ammonia be products, and

these So the the and I'm receptivity we with long in the be the and marketplace. medium in in, will term and products very excited about position short, the progress

Operator

Markets. next will Wong Andrew from come question Our with Capital RBC

Andrew Wong

large cash and balance most considering sheet, I flow, looking a for some significant these pay I think So mean taking which balance pretty Waggaman you're several the even after next just cash the projects you're into pretty that can years. at generating of over account there's

attractive an shares are also Your valuation. trading at

would you agree think with that. I

buyback. just plans do there any a share are So larger to maybe

W. Will

which think, me the on outstanding year, going XX% to color, bit about float. we've give million last back, of a Andrew, is beginning shares little is something our back just let I one, this So XX which close to purchased, of of

of During in invested and blue balance and in production some we on that build of production cash both capabilities, the green dehydration sheet. terms compression, time, new same period have

to been have just do disproportionately consistent $X above. sort opportunistic we sort is open We steady for opted of have capital. the be see we that and all attractive share have a when we to And do as to able go of valuations So to return approach authorization. of and an of the repurchase billion opposed

we're if long-term see at kind And whole may lowest as shares that us or one here it of make within quarter those disproportionately deeper a or is we I'm in a mentioned, out weeks the good next sure really we sitting continue by close of I the we to can. will But our transaction the think then the is where to flex value there on to month. we down taking And to Waggaman you sidelines. as worried expect time, flex little jump be periods reward actually Chris and shareholders idea bit. up not a many months that So the strategy. as during

for in spoken $X.XX billion so regard. is that And already

Christopher Bohn

is would Yes. to that. add I This Chris. just

As really by being opportunistic just patients. Tony mentioned,

where the So we there cash will sheet. periods have higher be balances balance on

time, that, long-term where Tony the periods really that fundamentals will in or from Tony of the they I by that that see think the whether the home overall couple as macro then interest more be to Middle having that to patience. the the Ukraine of as higher -- at result with East at even through their companies and whether look and uncertainty, geopolitical that and going that Bert said, And probably be that's deal even about if have rewarding talked rate you in the go particular counter for approved market next macro company in time, or shareholders deeper funding here today. of we'll uncertainty Congress a and weeks, during we're shares goes

W. Will

the I QX kind would on we blocked the out throes Instech also for Waggaman in negotiation of say that because we final were of acquisition. were with

in we back. the so be market couldn't our shares And buying

are of makes adding where capital what there. underlying underpins we happen our in selectively sense capacity on materials, and that may fundamentals down. focused So But or otherwise which XX is share referenced and of the Page drive that that our returning continuing it I to kind thing here count buying

Andrew Wong

That's question I'll great. to a Makes Bert. And maybe a -- maybe of over just lot sense. throw

nitrates as back look kind more to urea ammonia we and market. question is the producer. cost But going Just Europe of Europe marginal Globally, of a tend at an to on alive.

should today, it? how and maybe Like off aren't at talk be we more just more at the ammonia look specific, we urea So cost. do to specific, way marginal And European right you look if it that about from about marginal far product looking maybe at isn't you think that? prices when costs

Bert Frost

and no. Yes

moved placeholder traded a million is That tons most urea a XXX of globally. your tons I think consumption, the regarding on million XX question, globally ship. is at product

continent. the that every on becomes it so basically And used placeholder it's

So it's a good measure of values. nitrogen

of or urea. a of large Europe is still nitrogen ammonium nitrate correct consumer -- that a more You're calcium -- ammonium nitrate UAN, importer there's or but

X I to X million think per tons year. million

some participate Nigerian and of lot Middle it tons tons do and up African by North Eastern make a there. So they

in a they Hemisphere that's its about demand into period January, starting Northern high become importer as in so I what good the pretty And talked well. moves

it Ukraine nitrate So need maybe for in agriculture of maybe look But you as consumed Russia at to much X and Brazil. outside is Europe that well, tons yes, million way. that not really and ammonium

And falling sector explosive of we that's North America, outside so don't it so North talk in about in really America. the

for understand. all those at again, more look do easy But of we factors. to urea everyone is placeholder So the

W. Will

think and just here that it. wanted you I But Andrew, the other mentioned to I important thing, highlight

natural think the of spread. curve, the $XXX the you Europe about in on If between even $XXX cost of cost from a cost production forward the versus and difference to the production right about is in now U.S. gas differential,

ammonia North huge a we're urea, about one plants or we're our whether has we're UAN, So talking whether where talking production located. we're And talking so happy advantage. are American about reasons economic the whether that's about of network

Operator

Ben will come from Theurer question next our with Barclays. And

Benjamin Theurer

of gap you've industry more lot in or to the We've the spontaneous like peers of back some expectations India. imports Brazil seen of the would talking wanted least softness and of I you the for about expect a to buying in the about and and And purchases. go-as-you-need what in number. a to it's India to as your obviously, demand just sizable very quarter it fourth this What's for then to kind imports because wrap range million relates the the this basically to in of level also million-ton up. X similar X and Brazil demand talked the as particularly at confidence flagged just go you

about of this level having for you're the So just demand? confidence

Bert Frost

Yes.

in is the to a let's in demand exporter imported. and only what needs major XX or phosphate as that subsequent at all substantial have you look few corn corn like the are little over Santos in what of a to ago, that a million potash, XX nitrogen phosphate, and and take amazing million and to when congested. you're soybeans of of today fertilizer means some a Brazilian So from years and just going to for others most well does it years, that XX the position #X XX XXXX, when last look in producing that parallel the Brazil, does when tons the of almost say, And going Paranagua growth be soybeans bit all from a increase the bring you of an ports, agriculture tons. Well,

and so it's demurrage. have And to you have expensive lineups

a acre you positive confidence So planted. fertilized, we in a when the and the especially even cover crop for that's for That calculate is per the in XXX basically second of for acres why will movements factoring corn, them. profitability have be Mato products, bushels will be is farmer crop Grosso

is minimum, at that of So application an urea.

and annualized are for for that of last at February. look an of urea through will where less when So X.X million tons more they import Brazil, our you basis today, expectation or

X demand more less November, or per around December, is and the month January, February there. got we've tons So months XXX,XXX at

and that several dynamic with million and plants XX So we we've of oil our different that, taken to million production tons of the has Modi over India, of see with seen production a XX that, the expect government consistent build-and-buy-India years, again, to place the consistent last the XX million, close demand. that and feed seeds. In growth have gone with the program up grains of it's pretty construction tons to

X the over the tons North but more now United million well India sizable. million importing XX to of Brazil way. tons. country, region exactly or years, numbers X #X #X. That's less is off trending those India, States That again, puts million imports few or are as expectation #X that our America puts and it So previous of still the And

Benjamin Theurer

side, Perfect. then think coming just capital on Okay. as back quickly we it. allocation just the And about

dividends prices to the buybacks about talked obviously and sustained. here be lower are opportunistic, be when You and to accelerating

obviously we cash. leaves think $XXX about then but amount the and that Waggaman Now if million a in excess next still you have for projects cost substantial year CapEx, it and the you pending very $XXX to million roughly have

growth Are and enough feel think spent at? to to it's similar Waggaman? not if have buybacks value, Or because plenty clean the opportunities be is to any low price anyway? things is doing projects do on you're of with meat aggregate of the you So don't inorganic decarbonization how there on you think Do energy, other there looking something? you you CapEx about

W. Will

to trying think Well, capital. we in don't it a really terms on to about look of home how for spend

the opened to haven't $X ahead of that those we through share historically, in expectation going billion of We And expire. complete tend of our schedule when is that authorization repurchase program. And complete to they that terms runs XXXX. are end we

fairly getting the we assets. to existing of worried potential the for on shares. go and for inorganic a the most replacement eye evaluate the think do very So trying we're approach very as buck a lot out just for to we're the we interesting cost come about that available. possibility with were I'm and our tend will it. opposed be to and those acquisition. when create and of We our Waggaman rigorously it. We to volume or out value pacing large because do so do not get pleased awful things lot timing of is bang We're high we about there when tend sporadic that They as But disciplined consistently also them that do bites us have evaluating, growth keep an opportunities excited be growth they of we but in a fairly just repurchasing

worried I'm back. to ability So not about of repo we're share $X things, of the evaluating our all but buy those billion

Operator

Stanley. come question Morgan Vincent Our will with next Instructions] Andrews [Operator from

Vincent Andrews

are now? could Hopefully, this bit little Or they to bins you a a you a moment. more are this looking inventories bit empty But customers off going dealer season didn't where still hop normal where for or think about sentiment? Bert, talk get U.S. to you fall at or behaving end to is little

Bert Frost

importing basis, I been America, places North I the think on We've to to but North seen this can and Turkey countries positive. from compared actually take global similar. in is has it pull sentiment back like remarkable increases and America is a XXXX,

basically July, seeing the the the XXXX You're level application producer programs and effect opposite spring for a inventory off, to with in We're which this risk demand, for of was program. fill were behavior fertilizer began from pull year, in fall the our an and of prices ammonia healthy came attractive prices buying XXXX. built of falling right, healthy until

low lower XXXX think and normal We actually of Even were into just checks. still fertilizer weak we our as take November than import channel the with lot still trending buying year and they fairly the then for acreage demand And actual lineup we urea lower to on based is think consumption and think a December. levels, is with still place. inventories remain

demand and North why pricing. in so have and will you be -- up can made constructurally think place that's positive our to that QX what relative America I So we're take QX comments, I will think of in from and we're view to

think normal. to is I back behavior So

Operator

gentlemen, question-and-answer back this I'd to over the Martin call closing session. conclude for and to Ladies remarks. any turn like Jarosick will our

Martin Jarosick

Thanks, everyone, today. to for us forward upcoming conferences. joining seeing We look at you

Operator

concluded. you presentation. now thank has The attending for conference today's

disconnect now may your lines. You

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.