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

• conditions in the U.S. agricultural industry;

• reliance on third party transportation providers;

• weather conditions;

• potential liabilities and expenditures related to environmental and health and safety laws and regulations;

• future regulatory restrictions and requirements related to greenhouse gas emissions, climate change or other environmental requirements;

• our inability to predict seasonal demand for our products accurately;

• risks involving derivatives and the effectiveness of our risk measurement and hedging activities;

• the fact that CF Industries and its affiliates are engaged in fertilizer manufacturing;

• dependence on CF Industries and its employees;

• acts of terrorism and regulations to combat terrorism;

• limited access to capital; and

• deterioration of global market and economic conditions.

Additional information as to these and other factors can be found in TNCLP’s 2010 Form 10-K.

Terra Nitrogen Company, L.P. news announcements are also available on CF Industries’ Web site, .



March 31, December 31,
2011 2010
(in millions, except for units)
Current assets:
Cash and cash equivalents $ 221.7 $ 124.8
Demand deposits with affiliate 10.7 6.1
Accounts receivable, net 1.2


Inventories, net 16.7 27.6
Prepaid expenses and other current assets   1.8   1.2
Total current assets 252.1 193.1
Property, plant and equipment, net 82.6 83.2
Plant turnaround, net 11.9 13.4
Other assets   6.8   7.0
Total assets $ 353.4 $ 296.7
Current liabilities:
Accounts payable and accrued liabilities $ 22.0 $ 24.3
Customer advances 33.1 61.2
Other current liabilities   0.4   0.8
Total current liabilities   55.5   86.3
Noncurrent liabilities 0.7 0.4
Partners' capital:
Limited partners' interests, 18,501,576 Common Units
authorized, issued and outstanding 250.0 208.5
Limited partners' interests, 184,072 Class B Common Units
authorized, issued and outstanding 1.4 0.6
General partners' interest   45.8   0.9
Total partners' capital   297.2   210.0
Total liabilities and partners' capital $ 353.4 $ 296.7




Three months ended
March 31,
2011 2010
(in millions, except per unit amounts)
Product sales $ 195.8 $ 118.6
Other income   0.2   0.2  
Net sales 196.0 118.8
Cost of goods sold   70.9   79.2  
Gross margin 125.1 39.6
Selling, general and

administrative expenses

  4.2   5.6  
Earnings from operations 120.9 34.0
Interest (expense) income - net   -   (0.1 )
Net earnings $ 120.9 $ 33.9  
Allocation of net earnings:
General Partner $ 53.2 $ 0.7
Class B Common Units 1.1 0.3
Common Units   66.6   32.9  
Net earnings $ 120.9 $ 33.9  
Net earnings per Common Unit $ 3.60 $ 1.78  



2011 2010
Sales   Average Sales Average
Three months ended Volumes Price Volumes Price
March 31, (000 tons) ($/ton) (000 tons) ($/ton) 2
Ammonia 108 $ 414 52 $ 308
UAN 1 584 $ 258 471 $ 186
Three months ended
March 31,
2011   2010
Natural Gas Costs/MMBtu 3 $ 4.30 $ 5.28
          1   The nitrogen content of UAN is 32% by weight.
2 After deducting outbound freight costs.
3 Includes the cost of natural gas purchases and realized gains and losses on natural gas derivatives.

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