Cf Industries Holdings, Inc. · NYSE:CF
Cf Industries — Q2 2024 Earnings Presentation
17 slides from Cf Industries's earnings presentation, Aug 8, 2024
Slide 1: 2024 First Half and Second Quarter Financial Results
2024 First Half and Second Quarter Financial Results August 7, 2024 NYSE: CF
Slide 2: Safe harbor statement
Safe harbor statement All statements in this presentation by CF Industries Holdings, Inc. (together with its subsidiaries, the “Company”), other than those relating to historical facts, are forward-looking statements. Forward-looking statements can generally be identified by their use of terms such
Slide 3: Note regarding non-GAAP financial measures
Note regarding non-GAAP financial measures The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that EBITDA, adjusted EBITDA, free cash flow, and free cash flow to adjusted EBITDA conversion, which are non-GAAP financi
Slide 4: Industry leading operational excellence drives cash generation
Industry leading operational excellence drives cash generation $420M $752M $2.0B $1.4B Q2 2024 Q2 2024 LTM Cash from LTM Capital Returned to Net Earnings Adjusted EBITDA(1) Operations Shareholders (2) $614M $1.2B $1.2B $1.9B 1H 2024 1H 2024 LTM FCF(3) Remaining in Current $3B Net Earnings Adjusted E
Slide 5: Adjusted EBITDA impacted by global pricing and natural gas costs
Adjusted EBITDA(1) impacted by global pricing and natural gas costs $ millions $1,723 $350 $1,211 $(27) $(732) $(103) Realized 1H 2023 Price Volume Gas Cost Other 1H 2024 Nitrogen product prices impacted by lower global Persistent North American natural gas prices provide energy values productio
Slide 6: Significant advantages provide margin opportunities
Significant advantages provide margin opportunities North America Production Advantage CF Distribution Network Advantage USD per MMBtu 40 Global Energy Price 2023-2025F 8 North American production 35 JKM (Asia) natural gas sites strategically located to TTF (Europe) natural gas serve customers Chine
Slide 7: Positive global nitrogen supply-demand dynamics
Positive global nitrogen supply-demand dynamics Nitrogen Market Outlook Expect China exports and India imports to decline; Brazil imports to increase Near-term global nitrogen market Europe remains the global marginal producer remains constructive Russia Black Sea ammonia exports resuming; a
Slide 8: Disciplined capital management strategy focused on growth
Disciplined capital management strategy focused on growth Low-carbon ammonia Margin enhancing production growth projects Disciplined Invest in high growth initiatives return projects & clean energy within our network Return capital Inorganic growth to shareholders opportunities Share repurchases and
Slide 9: Highlights: Strategic Initiatives
Highlights: Strategic Initiatives Decarbonization Clean Energy Growth Carbon Capture and Reduce Upstream Low-carbon Ammonia Clean Ammonia Industry Green Ammonia Sequestration Methane Leakage Production Growth Demand Milestones Partnering with ExxonMobil for CCS Low-carbon ammonia technology FEED
Slide 10: Creating value by increasing nitrogen participation per share
Creating value by increasing nitrogen participation per share Intend to repurchase remaining $1.9B of authorization by December 2025 expiration Annual Nitrogen Equivalent Tons per 1,000 Shares Outstanding Since 2010: Increased production capacity 36% Decreased share count 50% 45 39 30 17 2010 2015 2
Slide 11: Appendix
Appendix
Slide 12: Advancing decarbonization through significant progress on strategic initiatives
Advancing decarbonization through significant progress on strategic initiatives PROJECTS Purchased natural Purchased 2.2 BCF Purchased 4.4 BCF gas certified by MiQ Commissioning activities Donaldsonville nearing completion green ammonia Engineering 2025 project activities start-up Donaldsonville CCS
Slide 13: CF Industries Adjusted EBITDA sensitivity table
CF Industries Adjusted EBITDA sensitivity table Table illustrates the CF Industries business model across a broad range of industry conditions Adjusted EBITDA Sensitivity to Natural Gas and Urea Prices(1) $ billions CF Realized Natural Gas Cost ($/MMBtu) $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 $30
Slide 14: Financial results – second quarter and first half 2024
Financial results – second quarter and first half 2024 In millions, except percentages, per MMBtu and EPS Q2 2024 Q2 2023 1H 2024 1H 2023 Net sales $ 1,572 $ 1,775 $ 3,042 $ 3,787 Gross margin 679 804 1,088 1,667 - As a percentage of net sales 43.2 % 45.3 % 35.8 % 44.0 % Net earnings attributable to
Slide 15: Non-GAAP: reconciliation of net earnings to EBITDA and adjusted EBITDA
Non-GAAP: reconciliation of net earnings to EBITDA and adjusted EBITDA In millions Q2 2024 Q2 2023 1H 2024 1H 2023 Net earnings $ 506 $ 606 $ 744 $ 1,256 Less: Net earnings attributable to noncontrolling interest (86) (79) (130) (169) Net earnings attributable to common stockholders 420 527 614 1,08
Slide 16: Non-GAAP: reconciliation of net earnings to EBITDA and adjusted EBITDA, continued
Non-GAAP: reconciliation of net earnings to EBITDA and adjusted EBITDA, continued In millions Q2 2024 LTM Net earnings $ 1,326 Less: Net earnings attributable to noncontrolling interest (274) Net earnings attributable to common stockholders 1,052 Interest expense—net 2 Income tax provision 292 Depre
Slide 17: Non-GAAP: reconciliation of cash from operations to free cash flow
Non-GAAP: reconciliation of cash from operations to free cash flow and free cash flow to adjusted EBITDA conversion In millions, except percentages Q2 2024 LTM Cash provided by operating activities $ 2,018 Capital expenditures (517) Distributions to noncontrolling interest (348) Free cash flow $ 1,1
CF Industries Holdings — Q2 2024 Earnings Presentation on 6ix