Terra Nitrogen Company, L.P. Declares Quarterly Distribution
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.
About TNCLP
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.
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