This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Terra Nitrogen Company, L.P. Reports First Quarter 2011 Results And Announces Cash Distribution

Terra Nitrogen Company, L.P. (TNCLP) (NYSE: TNH) today reported net earnings of $120.9 million on net sales of $196.0 million for the first quarter ended March 31, 2011. This compares to net earnings of $33.9 million on net sales of $118.8 million for the 2010 first quarter. Net earnings allocable to common units was $66.6 million ($3.60 per common unit) and $32.9 million ($1.78 per common unit) for the 2011 and 2010 first quarters, respectively.

Results for the first quarter of 2011 included an unrealized non-cash mark-to-market gain on natural gas derivatives of $1.2 million. Prior to the second quarter of 2010, results were not subject to mark-to-market adjustments because TNCLP employed hedge accounting. The company discontinued hedge accounting in the second quarter of 2010.

Analysis of Results

Net sales for the 2011 first quarter totaled $196.0 million, compared to net sales of $118.8 million for the 2010 first quarter. This increase was due to higher ammonia and urea ammonium nitrate (UAN) selling prices and volumes. The increase in prices resulted from an improved global supply/demand balance for nitrogen products and higher expected crop plantings in North America. The increase in volumes reflected primarily the higher expected crop plantings.

From the 2010 to the 2011 first quarter, TNCLP’s:
  • UAN and ammonia selling prices increased by 39 and 34 percent, respectively.
  • UAN and ammonia sales volumes increased by 24 and 108 percent, respectively.
  • Realized natural gas unit costs decreased by 19 percent.

Cash Distribution

TNCLP reported today that its Board of Directors has declared a cash distribution for the quarter ended March 31, 2011, of $4.84 per common limited partnership unit payable May 27, 2011, to holders of record as of May 16, 2011.

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

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.00 0.38%
FB $117.57 -0.84%
GOOG $696.13 -0.30%
TSLA $235.31 -2.70%
YHOO $36.19 -0.93%


Chart of I:DJI
DOW 17,721.49 -169.67 -0.95%
S&P 500 2,057.74 -23.69 -1.14%
NASDAQ 4,755.5320 -62.0620 -1.29%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs