Business Wire | Nov 3, 2021 07:00PM EDT

CF Industries Holdings, Inc. Reports Nine Month 2021 Net Earnings of $212 Million, EBITDA of $984 Million, Adjusted EBITDA of $1,485 Million

Nov. 03, 2021

DEERFIELD, Ill.--(BUSINESS WIRE)--Nov. 03, 2021--CF Industries Holdings, Inc. (NYSE: CF), a leading global manufacturer of hydrogen and nitrogen products, today announced results for its first nine months and third quarter ended September 30, 2021. As discussed below, results are preliminary pending completion of an impairment analysis and finalization of non-cash impairment charges related to the Company's UK operations.

Highlights

* First nine months net earnings of $212 million(1), or $0.98 per diluted share, and EBITDA(2) of $984 million, which include the impact of preliminary pre-tax non-cash impairment charges of $495 million related to the Company's UK operations; adjusted EBITDA(2) of $1,485 million * Third quarter net loss of $185 million(1), or $0.86 per diluted share, and EBITDA loss of $10 million, which include the impact of preliminary pre-tax non-cash impairment charges of $495 million related to the Company's UK operations; adjusted EBITDA of $488 million * Trailing twelve month net cash from operating activities of $1.68 billion, free cash flow(3) of $1.00 billion * Achieved Investment Grade Credit Ratings from S&P Global Ratings and Fitch Ratings * Redeemed $250 million in debt in the third quarter, lowering long-term debt to $3.5 billion, committed to lowering gross debt to $3.0 billion * Repurchased approximately 1.1 million shares for $50 million during the third quarter; new $1.5 billion share repurchase program authorized for 2022-2024 * Board approved construction of carbon dioxide dehydration and compression units at Donaldsonville and Yazoo City complexes, enabling the production of up to 1.25 million tons of blue ammonia annually * U.S. International Trade Commission issued an affirmative decision in the preliminary phase of its antidumping and countervailing duty investigation of UAN imports from Russia and Trinidad

"Strong global nitrogen demand, favorable energy spreads and continued excellent performance by the CF team helped us deliver a nearly 50 percent increase in adjusted EBITDA through the first nine months of 2021 compared to 2020," said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. "We expect positive nitrogen industry fundamentals will persist at least into 2023, underpinned by the need to replenish global grains stocks and by rising economic activity. We are well-positioned to capitalize on these positive industry dynamics, enabling us to invest in our clean energy initiatives, return substantial capital to shareholders and achieve our goal of $3 billion of gross debt by 2023."

Nitrogen Market Outlook

High crop prices and the need to replenish global grains stocks are expected to underpin global fertilizer demand in the near-term. Forward curves indicate elevated crop prices through 2023, incentivizing strong plantings and fertilizer use globally. The rebound in global GDP growth and industrial activity also has supported increased nitrogen demand. Additionally, management believes that global nitrogen supply will remain constrained with production in key regions affected by high energy prices.

* North America: Management projects that farmers will continue to plant nitrogen-consuming crops (corn, wheat, cotton and canola) at high levels given their relatively high front month and futures prices. The Company projects that corn plantings in the United States will be approximately 93 million acres in 2022, similar to 2021. Industrial activity in the region continues to increase in line with economic activity, supporting further demand for nitrogen products. * India: Management expects India to continue to tender for urea into the first quarter of 2022 due to lower domestic urea production and lower-than-expected urea volumes secured from tenders earlier in 2021. * Brazil: Reduced corn production in 2021 has supported higher corn prices and suggests higher planted corn acres in the current and upcoming planting season. Through September, urea imports to Brazil were 10% higher than in 2020. * Europe: Forward curves for natural gas in Europe and Asia project that prices will remain high through at least the first quarter, challenging producer profitability and suggesting lower operating rates in the near-term. As a result, management expects significantly higher nitrogen imports into Europe to meet demand for winter crops and the spring application season, reflecting the impact of 8-10 million metric tons of annual ammonia capacity that is shut down or curtailed in the region currently. * China: Urea exports from China are expected to be limited through at least the first half of 2022 as the Chinese government has implemented measures to promote the availability and affordability of fertilizers domestically, including steps to discourage urea exports.

During this period, energy differentials between Europe and Asia to the Henry Hub natural gas price benchmark in the United States have increased substantially. This has steepened the global nitrogen cost curve and increased margin opportunities for low-cost North American producers. Forward curves suggest that favorable energy spreads will persist throughout 2022 and into 2023, albeit at levels lower than the highs of recent months.

As a result, management expects the global nitrogen pricing outlook to remain favorable as high global nitrogen demand and lower operating rates in Europe and Asia from high energy prices should sustain a tight global nitrogen supply and demand balance at least into 2023.

Operations Overview

The Company continues to operate safely and efficiently across its network. As of September 30, 2021, the 12-month rolling average recordable incident rate was 0.24 incidents per 200,000 work hours, which is significantly better than industry benchmarks.

Gross ammonia production for the third quarter of 2021 was approximately 2.2 million tons, and was approximately 6.9 million tons for the first nine months of 2021. Management expects gross ammonia production for the full year 2021 will be approximately 9 million tons. This reflects the impact of the highest level of maintenance activity in the Company's history, including turnarounds at seven of the Company's 17 ammonia plants. Production volumes were also affected by plant outages and subsequent maintenance due to natural gas availability issues caused by Winter Storm Uri in February 2021 and maintenance related to Hurricane Ida in August 2021.

In September 2021, the Company announced a halt to UK operations at its Billingham and Ince facilities due to high natural gas prices. Subsequently, the Company's UK subsidiary restarted the Billingham Complex under an interim agreement with the UK government to ensure the supply of carbon dioxide (CO2), a byproduct of the ammonia production process, in the country. The Billingham facility is expected to continue to operate through at least January 2022, reflecting the impact of new CO2 pricing and offtake agreements reached with its industrial gas customers. Operations remain halted at the Company's Ince facility and the Company is continuing to monitor market conditions.

Financial Results Overview

Material Impairment Charges

Following the Company's decision in September 2021 to halt UK operations at its Billingham and Ince facilities, management conducted an evaluation of the goodwill and long-lived assets, including definite-lived intangible assets, of its UK operations to determine if their fair value had declined to below their carrying value. As a result of this review, management concluded that a decline in the fair value had occurred as of September 30, 2021. The financial information included in this release reflects the recognition of preliminary pre-tax non-cash impairment charges of $495 million. The preliminary non-cash impairment charges are subject to completion of the Company's quarter-end close procedures. As a result, the financial information included in this report is subject to change and constitutes forward-looking information. The Company expects to complete the impairment analysis and finalize the amount of the impairment charges in connection with the filing of the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2021.

First Nine Months 2021 Financial Results

For the first nine months of 2021, net earnings attributable to common stockholders were $212 million, or $0.98 per diluted share; EBITDA was $984 million; and adjusted EBITDA was $1,485 million. These results compare to the first nine months of 2020 net earnings attributable to common stockholders of $230 million, or $1.07 per diluted share; EBITDA of $982 million; and adjusted EBITDA of $1,012 million.

Net sales in the first nine months of 2021 were $4.0 billion compared to $3.0 billion in the first nine months of 2020. Average selling prices for the first nine months of 2021 were higher than the first nine months of 2020 across all segments due to strong global demand as well as decreased global supply availability as higher global energy costs drove lower global operating rates. Sales volumes in the first nine months of 2021 were lower than the first nine months of 2020 due to lower supply availability from lower production.

Cost of sales for the first nine months of 2021 was higher compared to the first nine months of 2020 due to higher natural gas costs and higher maintenance costs, partially offset by the impact of lower sales volumes and the gain the Company recognized from the net settlement of certain natural gas contracts with suppliers during February 2021.

In the first nine months of 2021, the average cost of natural gas reflected in the Company's cost of sales was $3.51 per MMBtu(4) compared to the average cost of natural gas in cost of sales of $2.11 per MMBtu in the first nine months of 2020.

Third Quarter 2021 Financial Results

For the third quarter of 2021, net loss attributable to common stockholders was $185 million, or $0.86 per diluted share; EBITDA loss was $10 million; and adjusted EBITDA was $488 million. These results compare to third quarter 2020 net loss attributable to common stockholders of $28 million, or $0.13 per diluted share; EBITDA of $196 million; and adjusted EBITDA of $204 million.

Net sales in the third quarter of 2021 were $1.36 billion compared to $0.85 billion in the third quarter of 2020. Average selling prices for the third quarter of 2021 were higher than the third quarter of 2020 across all segments due to strong global demand as well as decreased global supply availability as higher global energy costs drove lower global operating rates. Sales volumes in the third quarter of 2021 were lower than the third quarter of 2020 due to lower supply availability from lower production.

Cost of sales for the third quarter of 2021 was higher compared to the third quarter of 2020 primarily due to higher natural gas costs and higher maintenance costs, partially offset by the impact of lower sales volumes.

In the third quarter of 2021, the average cost of natural gas reflected in the Company's cost of sales was $4.21 per MMBtu compared to the average cost of natural gas in cost of sales of $1.91 per MMBtu in the third quarter of 2020.

Capital Management

Capital Expenditures

Capital expenditures in the third quarter and first nine months of 2021 were $201 million and $382 million, respectively. Management projects capital expenditures for full year 2021 will be in the range of $500 million, reflecting higher maintenance activity in 2021, which included maintenance deferred from 2020 as well as activity that was previously planned to occur in 2022.

Long-Term Debt Actions

On September 10, 2021, the Company's wholly owned subsidiary CF Industries, Inc., redeemed $250 million principal amount, representing one-third of the $750 million principal amount outstanding immediately prior to such redemption, of its 3.450% senior notes due 2023 in accordance with the optional redemption provisions in the indenture governing them. The total amount for the partial redemption was approximately $265 million, including accrued interest. As of September 30, 2021, the aggregate principal amount of CF Industries Holdings, Inc.'s outstanding long-term indebtedness was $3.5 billion.

During the quarter, Fitch Ratings and S&P Global Ratings issued investment-grade credit ratings with respect to CF Industries Holdings, Inc. The issuance of these ratings resulted in an Investment Grade Rating Event under the Company's 4.500% senior secured notes due 2026 and the satisfaction of the Collateral and Guarantee Release Conditions under our revolving credit agreement. As a result, under the terms of those debt instruments, the collateral, liens and subsidiary guarantees under those debt instruments were automatically released on August 23, 2021.

Share Repurchase Program

During the third quarter of 2021, the company repurchased approximately 1.1 million shares for $50 million. From February 2019, when the current $1 billion share repurchase authorization was announced, through September 30, 2021, the Company has repurchased approximately 11.3 million shares for $487 million. The current share repurchase program will expire at the end of 2021.

On November 3, 2021, the Board of Directors of CF Industries Holdings, Inc., authorized a new $1.5 billion share repurchase program. The program goes into effect January 1, 2022, and runs through the end of 2024.

CHS, Inc. Distribution

CHS Inc. (CHS) is entitled to semi-annual distributions resulting from its minority equity investment in CF Industries Nitrogen, LLC (CFN). The estimate of the partnership distribution earned by CHS, but not yet declared, for the third quarter of 2021 is approximately $94 million.

Clean Energy Initiatives

CF Industries continues to advance its plans to support the global hydrogen and clean fuel economy, which is expected to grow significantly over the next decade, through the production of blue and green ammonia. In line with this strategic focus, the Board of Directors has authorized projects that will enable the annual production of up to 1.25 million tons of blue ammonia - ammonia produced with the corresponding CO2 byproduct removed through carbon capture and sequestration - from the Company's existing network starting in 2024.

The projects will involve constructing units at the Donaldsonville and Yazoo City complexes that dehydrate and compress CO2, a process essential for CO2 transport via pipeline to sequestration sites. Management expects that, once the units are in service and sequestration is initiated, the Company could sequester up to 2.5 million tons of CO2 per year (2 million tons at Donaldsonville and 500,000 tons at Yazoo City). Under current regulations, the projects would be expected to qualify for tax credits under Section 45Q of the Internal Revenue Code, which provides a credit per metric ton of CO2 sequestered.

The Company is currently in advanced discussions with several parties regarding transportation and sequestration of CO2 from Donaldsonville. Construction of the units at the Donaldsonville Complex is expected to begin in 2022 and to be completed in 2024, with an estimated total cost of $200 million. The Yazoo City project will commence once a third-party transport and sequestration partner has been confirmed and timed to coincide with CO2 transport pipeline construction. Once started, the project is expected to be completed in three years with an estimated total cost of $85 million.

CF Industries continues to develop other initiatives related to its clean energy strategy across the Company's network.

UAN Antidumping and Countervailing Duty Investigations

On June 30, 2021, CF Industries, through certain of its production facilities, filed petitions with the U.S. Department of Commerce ("Commerce") and the U.S. International Trade Commission ("ITC") requesting the initiation of antidumping and countervailing duty investigations on imports of urea ammonium nitrate solutions ("UAN") from Russia and Trinidad.

CF Industries, which is the largest producer of UAN in the United States, requested the investigations due to the harm the domestic UAN industry has experienced from dumped and unfairly subsidized UAN imports from Russia and Trinidad. CF Industries filed its petitions under United States antidumping and countervailing duty laws, which authorize Commerce to level the playing field for domestic industries injured by foreign imports that are dumped and unfairly subsidized.

On August 13, 2021, the ITC issued an affirmative decision in the preliminary phase of its antidumping and countervailing duty investigation of UAN imports from Russia and Trinidad. The ITC decision found that there is a reasonable indication that imports of UAN from Russia and Trinidad materially injure the U.S. UAN industry. Under U.S. trade laws, a finding of injury to the domestic industry is a prerequisite for imposing antidumping and countervailing duties.

As a result of the ITC's determination, Commerce will continue its own investigations of UAN imports from Russia and Trinidad. The purpose of Commerce's investigations is to determine whether imports of UAN from Russia and Trinidad are being dumped in the U.S. market or unfairly subsidized, and if so at what levels. Commerce is scheduled to issue its preliminary countervailing duty determinations in November 2021, followed by preliminary antidumping determinations. The Company expects that Commerce will then issue final determinations in 2022.

If Commerce's final determinations are affirmative, then the ITC would make a final injury determination. If both agencies make affirmative final determinations - which typically takes approximately one year - then Commerce would issue antidumping and countervailing duty orders on UAN from Russia and Trinidad, which would remain in place for at least five years. At this time, management cannot predict the outcome of the proceedings, including whether antidumping or countervailing duties will be imposed on imports from either country, or the rate of any such duties.

____________ Certain items recognized during the first nine months and third quarter of 2021 impacted our financial results and their comparability to the prior(1) year period. See the table accompanying this release for a summary of these items.

EBITDA is defined as net (loss) earnings attributable to common stockholders plus interest expense-net, income taxes and depreciation and(2) amortization. See reconciliations of EBITDA and adjusted EBITDA to the most directly comparable GAAP measures in the tables accompanying this release.

Free cash flow is defined as net cash from operating activities less capital expenditures and distributions to noncontrolling interest. See(3) reconciliation of free cash flow to the most directly comparable GAAP measure in the table accompanying this release.

Average cost of natural gas excludes the $112 million gain the Company(4) recognized from the net settlement of certain natural gas contracts with suppliers during February 2021.

Consolidated Results

Three months ended September 30,

Nine months ended September 30,

2021

2020

2021

2020

(dollars in millions, except per share

and per MMBtu amounts)

Net sales

$

1,362

$

847

$

3,998

$

3,022

Cost of sales

922

764

2,766

2,401

Gross margin

$

440

$

83

$

1,232

$

621

Gross margin percentage

32.3

%

9.8

%

30.8

%

20.5

%

Net (loss) earnings attributable to common stockholders

$

(185

)

$

(28

)

$

212

$

230

Net (loss) earnings per diluted share

$

(0.86

)

$

(0.13

)

$

0.98

$

1.07

EBITDA(1)

$

(10

)

$

196

$

984

$

982

Adjusted EBITDA(1)

$

488

$

204

$

1,485

$

1,012

Tons of product sold (000s)

3,784

4,743

13,522

14,817

Natural gas supplemental data (per MMBtu):

Cost of natural gas used for production in cost of sales(2)

$

4.21

$

1.91

$

3.51

$

2.11

Average daily market price of natural gas Henry Hub (Louisiana)

$

4.27

$

1.95

$

3.52

$

1.82

Average daily market price of natural gas National Balancing Point (United Kingdom)

$

15.98

$

2.69

$

10.63

$

2.49

Unrealized net mark-to-market gain on natural gas derivatives

$

(12

)

$

-

$

(18

)

$

(12

)

Depreciation and amortization

$

203

$

212

$

650

$

662

Capital expenditures

$

201

$

87

$

382

$

206

Production volume by product tons (000s):

Ammonia(3)

2,186

2,468

6,897

7,621

Granular urea

987

1,149

3,139

3,640

UAN (32%)

1,311

1,572

4,628

4,879

AN

332

471

1,256

1,532

Consolidated Results

Three months ended Nine months ended September 30, September 30,

2021 2020 2021 2020

(dollars in millions, except per share and per MMBtu amounts)

Net sales $ 1,362 $ 847 $ 3,998 $ 3,022

Cost of sales 922 764 2,766 2,401

Gross margin $ 440 $ 83 $ 1,232 $ 621

Gross margin percentage 32.3 % 9.8 % 30.8 % 20.5 %



Net (loss) earningsattributable to common $ (185 ) $ (28 ) $ 212 $ 230 stockholders

Net (loss) earnings per $ (0.86 ) $ (0.13 ) $ 0.98 $ 1.07 diluted share



EBITDA^(1) $ (10 ) $ 196 $ 984 $ 982

Adjusted EBITDA^(1) $ 488 $ 204 $ 1,485 $ 1,012



Tons of product sold (000s) 3,784 4,743 13,522 14,817



Natural gas supplemental data (per MMBtu):

Cost of natural gas used forproduction in cost of sales^ $ 4.21 $ 1.91 $ 3.51 $ 2.11 (2)

Average daily market price ofnatural gas Henry Hub $ 4.27 $ 1.95 $ 3.52 $ 1.82 (Louisiana)

Average daily market price ofnatural gas National Balancing $ 15.98 $ 2.69 $ 10.63 $ 2.49 Point (United Kingdom)



Unrealized net mark-to-marketgain on natural gas $ (12 ) $ - $ (18 ) $ (12 )derivatives

Depreciation and amortization $ 203 $ 212 $ 650 $ 662

Capital expenditures $ 201 $ 87 $ 382 $ 206



Production volume by product tons (000s):

Ammonia^(3) 2,186 2,468 6,897 7,621

Granular urea 987 1,149 3,139 3,640

UAN (32%) 1,311 1,572 4,628 4,879

AN 332 471 1,256 1,532

____________(1)See reconciliations of EBITDA and adjusted EBITDA to the most directly comparable GAAP measures in the tables accompanying this release.

(2)Includes the cost of natural gas used for production and related transportation that is included in cost of sales during the period under the first-in, first-out inventory cost method. Includes realized gains and losses on natural gas derivatives settled during the period. Excludes unrealized mark-to-market gains and losses on natural gas derivatives. For the nine months ended September 30, 2021, excludes the $112 million gain on net settlement of certain natural gas contracts with suppliers due to Winter Storm Uri in February 2021.

(3)Gross ammonia production, including amounts subsequently upgraded into other products.

Ammonia Segment

CF Industries' ammonia segment produces anhydrous ammonia (ammonia), which is the base product that the Company manufactures, containing 82 percent nitrogen and 18 percent hydrogen. The results of the ammonia segment consist of sales of ammonia to external customers for its nitrogen content as a fertilizer, in emissions control and in other industrial applications. The Company has also announced steps to produce blue ammonia and market to external customers for its hydrogen content in clean energy applications. In addition, the Company upgrades ammonia into other nitrogen products such as urea, UAN and AN.

____________ See reconciliations of EBITDA and adjusted EBITDA to the most directly(1) comparable GAAP measures in the tables accompanying this release.

Includes the cost of natural gas used for production and related transportation that is included in cost of sales during the period under the first-in, first-out inventory cost method. Includes realized gains and losses on natural gas derivatives settled during the period. Excludes(2) unrealized mark-to-market gains and losses on natural gas derivatives. For the nine months ended September 30, 2021, excludes the $112 million gain on net settlement of certain natural gas contracts with suppliers due to Winter Storm Uri in February 2021.

Gross ammonia production, including amounts subsequently upgraded into(3) other products.

Ammonia Segment

CF Industries' ammonia segment produces anhydrous ammonia (ammonia), which is the base product that the Company manufactures, containing 82 percent nitrogen and 18 percent hydrogen. The results of the ammonia segment consist of sales of ammonia to external customers for its nitrogen content as a fertilizer, in emissions control and in other industrial applications. The Company has also announced steps to produce blue ammonia and market to external customers for its hydrogen content in clean energy applications. In addition, the Company upgrades ammonia into other nitrogen products such as urea, UAN and AN.

Three months ended Nine months ended September 30, September 30,

2021 2020 2021 2020

(dollars in millions, except per ton amounts)

Net sales $ 344 $ 165 $ 1,009 $ 722

Cost of sales 262 174 675 609

Gross margin $ 82 $ (9 ) $ 334 $ 113

Gross margin percentage 23.8 % (5.5 ) 33.1 % 15.7 % %



Sales volume by product tons 690 795 2,409 2,675 (000s)

Sales volume by nutrient tons 566 651 1,976 2,193 (000s)^(1)



Average selling price per product $ 499 $ 208 $ 419 $ 270 ton

Average selling price per nutrient 608 253 511 329 ton^(1)



Adjusted gross margin^(2):

Gross margin $ 82 $ (9 ) $ 334 $ 113

Depreciation and amortization 41 34 138 133

Unrealized net mark-to-market gain (4 ) - (6 ) (4 )on natural gas derivatives

Adjusted gross margin $ 119 $ 25 $ 466 $ 242

Adjusted gross margin as a percent 34.6 % 15.2 % 46.2 % 33.5 %of net sales



Gross margin per product ton $ 119 $ (11 ) $ 139 $ 42

Gross margin per nutrient ton^(1) 145 (14 ) 169 52

Adjusted gross margin per product 172 31 193 90 ton

Adjusted gross margin per nutrient 210 38 236 110 ton^(1)

____________(1)Nutrient tons represent the tons of nitrogen within the product tons.

(2)Adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton are non-GAAP financial measures. Adjusted gross margin is defined as gross margin excluding depreciation and amortization and unrealized net mark-to-market (gain) loss on natural gas derivatives. A reconciliation of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to gross margin, the most directly comparable GAAP measure, is provided in the table above. See "Note Regarding Non-GAAP Financial Measures" in this release.

Comparison of 2021 to 2020 first nine months periods:

* Ammonia sales volume decreased for the first nine months of 2021 compared to 2020 due to lower supply availability from lower production. * Ammonia average selling prices increased for the first nine months of 2021 compared to 2020 due to strong global demand as well as decreased global supply availability as higher global energy costs drove lower global operating rates. * Ammonia adjusted gross margin per ton increased for the first nine months of 2021 compared to 2020 due to higher average selling prices and the gain the Company recognized from the net settlement of certain natural gas contracts with suppliers during February 2021, partially offset by higher realized natural gas costs and higher maintenance costs.

Granular Urea Segment

CF Industries' granular urea segment produces granular urea, which contains 46 percent nitrogen. Produced from ammonia and carbon dioxide, it has the highest nitrogen content of any of the Company's solid nitrogen products.

____________(1) Nutrient tons represent the tons of nitrogen within the product tons.

Adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton are non-GAAP financial measures. Adjusted gross margin is defined as gross margin excluding depreciation and amortization and unrealized net mark-to-market(2) (gain) loss on natural gas derivatives. A reconciliation of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to gross margin, the most directly comparable GAAP measure, is provided in the table above. See "Note Regarding Non-GAAP Financial Measures" in this release.

Comparison of 2021 to 2020 first nine months periods:

* Ammonia sales volume decreased for the first nine months of 2021 compared to 2020 due to lower supply availability from lower production. * Ammonia average selling prices increased for the first nine months of 2021 compared to 2020 due to strong global demand as well as decreased global supply availability as higher global energy costs drove lower global operating rates. * Ammonia adjusted gross margin per ton increased for the first nine months of 2021 compared to 2020 due to higher average selling prices and the gain the Company recognized from the net settlement of certain natural gas contracts with suppliers during February 2021, partially offset by higher realized natural gas costs and higher maintenance costs.

Granular Urea Segment

CF Industries' granular urea segment produces granular urea, which contains 46 percent nitrogen. Produced from ammonia and carbon dioxide, it has the highest nitrogen content of any of the Company's solid nitrogen products.

Three months ended Nine months ended September 30, September 30,

2021 2020 2021 2020

(dollars in millions, except per ton amounts)

Net sales $ 386 $ 249 $ 1,218 $ 915

Cost of sales 200 183 705 612

Gross margin $ 186 $ 66 $ 513 $ 303

Gross margin percentage 48.2 % 26.5 % 42.1 % 33.1 %



Sales volume by product tons 860 1,107 3,272 3,802 (000s)

Sales volume by nutrient tons 396 510 1,505 1,749 (000s)^(1)



Average selling price per product $ 449 $ 225 $ 372 $ 241 ton

Average selling price per 975 488 809 523 nutrient ton^(1)



Adjusted gross margin^(2):

Gross margin $ 186 $ 66 $ 513 $ 303

Depreciation and amortization 58 60 179 198

Unrealized net mark-to-market (3 ) - (5 ) (4 )gain on natural gas derivatives

Adjusted gross margin $ 241 $ 126 $ 687 $ 497

Adjusted gross margin as a 62.4 % 50.6 % 56.4 % 54.3 %percent of net sales



Gross margin per product ton $ 216 $ 60 $ 157 $ 80

Gross margin per nutrient ton^(1) 470 129 341 173

Adjusted gross margin per product 280 114 210 131 ton

Adjusted gross margin per 609 247 456 284 nutrient ton^(1)

____________(1)Nutrient tons represent the tons of nitrogen within the product tons.

(2)Adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton are non-GAAP financial measures. Adjusted gross margin is defined as gross margin excluding depreciation and amortization and unrealized net mark-to-market (gain) loss on natural gas derivatives. A reconciliation of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to gross margin, the most directly comparable GAAP measure, is provided in the table above. See "Note Regarding Non-GAAP Financial Measures" in this release.

Comparison of 2021 to 2020 first nine months periods:

* Granular urea sales volume decreased for the first nine months of 2021 compared to 2020 due to lower supply availability from lower production partially offset by 201,000 tons of purchased urea. * Urea average selling prices increased for the first nine months of 2021 compared to 2020 due to strong global demand as well as decreased global supply availability as higher global energy costs drove lower global operating rates. * Granular urea adjusted gross margin per ton increased for the first nine months of 2021 compared to 2020 due to higher average selling prices, partially offset by higher realized natural gas costs and higher maintenance costs.

UAN Segment

CF Industries' UAN segment produces urea ammonium nitrate solution (UAN). UAN is a liquid product with nitrogen content that typically ranges from 28 percent to 32 percent and is produced by combining urea and ammonium nitrate in solution.

____________(1) Nutrient tons represent the tons of nitrogen within the product tons.

Adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton are non-GAAP financial measures. Adjusted gross margin is defined as gross margin excluding depreciation and amortization and unrealized net mark-to-market(2) (gain) loss on natural gas derivatives. A reconciliation of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to gross margin, the most directly comparable GAAP measure, is provided in the table above. See "Note Regarding Non-GAAP Financial Measures" in this release.

Comparison of 2021 to 2020 first nine months periods:

* Granular urea sales volume decreased for the first nine months of 2021 compared to 2020 due to lower supply availability from lower production partially offset by 201,000 tons of purchased urea. * Urea average selling prices increased for the first nine months of 2021 compared to 2020 due to strong global demand as well as decreased global supply availability as higher global energy costs drove lower global operating rates. * Granular urea adjusted gross margin per ton increased for the first nine months of 2021 compared to 2020 due to higher average selling prices, partially offset by higher realized natural gas costs and higher maintenance costs.

UAN Segment

CF Industries' UAN segment produces urea ammonium nitrate solution (UAN). UAN is a liquid product with nitrogen content that typically ranges from 28 percent to 32 percent and is produced by combining urea and ammonium nitrate in solution.

Three months ended Nine months ended September 30, September 30,

2021 2020 2021 2020

(dollars in millions, except per ton amounts)

Net sales $ 390 $ 248 $ 1,056 $ 791

Cost of sales 233 237 759 675

Gross margin $ 157 $ 11 $ 297 $ 116

Gross margin percentage 40.3 % 4.4 % 28.1 % 14.7 %



Sales volume by product tons 1,283 1,725 4,746 4,955 (000s)

Sales volume by nutrient tons 405 545 1,493 1,561 (000s)^(1)



Average selling price per $ 304 $ 144 $ 223 $ 160 product ton

Average selling price per 963 455 707 507 nutrient ton^(1)



Adjusted gross margin^(2):

Gross margin $ 157 $ 11 $ 297 $ 116

Depreciation and amortization 56 69 188 186

Unrealized net mark-to-market (3 ) - (5 ) (4 )gain on natural gas derivatives

Adjusted gross margin $ 210 $ 80 $ 480 $ 298

Adjusted gross margin as a 53.8 % 32.3 % 45.5 % 37.7 %percent of net sales



Gross margin per product ton $ 122 $ 6 $ 63 $ 23

Gross margin per nutrient ton^ 388 20 199 74 (1)

Adjusted gross margin per 164 46 101 60 product ton

Adjusted gross margin per 519 147 322 191 nutrient ton^(1)

____________(1)Nutrient tons represent the tons of nitrogen within the product tons.

(2)Adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton are non-GAAP financial measures. Adjusted gross margin is defined as gross margin excluding depreciation and amortization and unrealized net mark-to-market (gain) loss on natural gas derivatives. A reconciliation of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to gross margin, the most directly comparable GAAP measure, is provided in the table above. See "Note Regarding Non-GAAP Financial Measures" in this release.

Comparison of 2021 to 2020 first nine months periods:

* UAN sales volume decreased for the first nine months of 2021 compared to 2020 due to lower supply availability from lower production. * UAN average selling prices increased for the first nine months of 2021 compared to 2020 due to strong global demand as well as decreased global supply availability as higher global energy costs drove lower global operating rates. * UAN adjusted gross margin per ton increased for the first nine months of 2021 compared to 2020 due to higher average selling prices, partially offset by higher realized natural gas costs and higher maintenance costs.

AN Segment

CF Industries' AN segment produces ammonium nitrate (AN). AN is used as a nitrogen fertilizer with nitrogen content between 29 percent to 35 percent, and also is used by industrial customers for commercial explosives and blasting systems.

____________(1) Nutrient tons represent the tons of nitrogen within the product tons.

Adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton are non-GAAP financial measures. Adjusted gross margin is defined as gross margin excluding depreciation and amortization and unrealized net mark-to-market(2) (gain) loss on natural gas derivatives. A reconciliation of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to gross margin, the most directly comparable GAAP measure, is provided in the table above. See "Note Regarding Non-GAAP Financial Measures" in this release.

Comparison of 2021 to 2020 first nine months periods:

* UAN sales volume decreased for the first nine months of 2021 compared to 2020 due to lower supply availability from lower production. * UAN average selling prices increased for the first nine months of 2021 compared to 2020 due to strong global demand as well as decreased global supply availability as higher global energy costs drove lower global operating rates. * UAN adjusted gross margin per ton increased for the first nine months of 2021 compared to 2020 due to higher average selling prices, partially offset by higher realized natural gas costs and higher maintenance costs.

AN Segment

CF Industries' AN segment produces ammonium nitrate (AN). AN is used as a nitrogen fertilizer with nitrogen content between 29 percent to 35 percent, and also is used by industrial customers for commercial explosives and blasting systems.

Three months ended Nine months ended September 30, September 30,

2021 2020 2021 2020

(dollars in millions, except per ton amounts)

Net sales $ 118 $ 109 $ 359 $ 343

Cost of sales 122 96 337 290

Gross margin $ (4 ) $ 13 $ 22 $ 53

Gross margin percentage (3.4 ) 11.9 % 6.1 % 15.5 % %



Sales volume by product tons 407 548 1,346 1,671 (000s)

Sales volume by nutrient tons 137 185 455 564 (000s)^(1)



Average selling price per product $ 290 $ 199 $ 267 $ 205 ton

Average selling price per nutrient 861 589 789 608 ton^(1)



Adjusted gross margin^(2):

Gross margin $ (4 ) $ 13 $ 22 $ 53

Depreciation and amortization 20 25 61 76

Unrealized net mark-to-market gain (1 ) - (1 ) - on natural gas derivatives

Adjusted gross margin $ 15 $ 38 $ 82 $ 129

Adjusted gross margin as a percent 12.7 % 34.9 % 22.8 % 37.6 %of net sales



Gross margin per product ton $ (10 ) $ 24 $ 16 $ 32

Gross margin per nutrient ton^(1) (29 ) 70 48 94

Adjusted gross margin per product 37 69 61 77 ton

Adjusted gross margin per nutrient 109 205 180 229 ton^(1)

____________(1)Nutrient tons represent the tons of nitrogen within the product tons.

(2)Adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton are non-GAAP financial measures. Adjusted gross margin is defined as gross margin excluding depreciation and amortization and unrealized net mark-to-market (gain) loss on natural gas derivatives. A reconciliation of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to gross margin, the most directly comparable GAAP measure, is provided in the table above. See "Note Regarding Non-GAAP Financial Measures" in this release.

Comparison of 2021 to 2020 first nine months periods:

* AN sales volume decreased for the first nine months of 2021 compared to 2020 due to lower supply availability from lower production. * AN average selling prices for the first nine months of 2021 increased compared to 2020 due to strong global demand as well as decreased global supply availability as higher global energy costs drove lower global operating rates. * AN adjusted gross margin per ton decreased for the first nine months of 2021 compared to 2020 due primarily to higher realized natural gas costs, partially offset by higher average selling prices.

Other Segment

CF Industries' Other segment includes diesel exhaust fluid (DEF), urea liquor, nitric acid and compound fertilizer products (NPKs).

____________(1) Nutrient tons represent the tons of nitrogen within the product tons.

Adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton are non-GAAP financial measures. Adjusted gross margin is defined as gross margin excluding depreciation and amortization and unrealized net mark-to-market(2) (gain) loss on natural gas derivatives. A reconciliation of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to gross margin, the most directly comparable GAAP measure, is provided in the table above. See "Note Regarding Non-GAAP Financial Measures" in this release.

Comparison of 2021 to 2020 first nine months periods:

* AN sales volume decreased for the first nine months of 2021 compared to 2020 due to lower supply availability from lower production. * AN average selling prices for the first nine months of 2021 increased compared to 2020 due to strong global demand as well as decreased global supply availability as higher global energy costs drove lower global operating rates. * AN adjusted gross margin per ton decreased for the first nine months of 2021 compared to 2020 due primarily to higher realized natural gas costs, partially offset by higher average selling prices.

Other Segment

CF Industries' Other segment includes diesel exhaust fluid (DEF), urea liquor, nitric acid and compound fertilizer products (NPKs).

Three months ended Nine months ended September 30, September 30,

2021 2020 2021 2020

(dollars in millions, except per ton amounts)

Net sales $ 124 $ 76 $ 356 $ 251

Cost of sales 105 74 290 215

Gross margin $ 19 $ 2 $ 66 $ 36

Gross margin percentage 15.3 % 2.6 % 18.5 % 14.3 %



Sales volume by product tons 544 568 1,749 1,714 (000s)

Sales volume by nutrient tons 106 111 347 339 (000s)^(1)



Average selling price per product $ 228 $ 134 $ 204 $ 146 ton

Average selling price per 1,170 685 1,026 740 nutrient ton^(1)



Adjusted gross margin^(2):

Gross margin $ 19 $ 2 $ 66 $ 36

Depreciation and amortization 22 18 67 52

Unrealized net mark-to-market (1 ) - (1 ) - gain on natural gas derivatives

Adjusted gross margin $ 40 $ 20 $ 132 $ 88

Adjusted gross margin as a 32.3 % 26.3 % 37.1 % 35.1 %percent of net sales



Gross margin per product ton $ 35 $ 4 $ 38 $ 21

Gross margin per nutrient ton^(1) 179 18 190 106

Adjusted gross margin per product 74 35 75 51 ton

Adjusted gross margin per 377 180 380 260 nutrient ton^(1)

____________(1)Nutrient tons represent the tons of nitrogen within the product tons.

(2)Adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton are non-GAAP financial measures. Adjusted gross margin is defined as gross margin excluding depreciation and amortization and unrealized net mark-to-market (gain) loss on natural gas derivatives. A reconciliation of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to gross margin, the most directly comparable GAAP measure, is provided in the table above. See "Note Regarding Non-GAAP Financial Measures" in this release.

Comparison of 2021 to 2020 first nine months periods:

* Other segment sales volume increased for the first nine months of 2021 compared to 2020 due to higher diesel exhaust fluid sales, partially offset by lower NPK sales. * Other average selling prices for the first nine months of 2021 increased compared to 2020 due to strong global demand as well as decreased global supply availability as higher global energy costs drove lower global operating rates. * Other segment adjusted gross margin per ton increased for the first nine months of 2021 compared to 2020 due to higher average selling prices, partially offset by higher realized natural gas costs.

Dividend Payment

On October 13, 2021, CF Industries' Board of Directors declared a quarterly dividend of $0.30 per common share. The dividend will be paid on November 30, 2021 to stockholders of record as of November 15, 2021.

Conference Call

CF Industries will hold a conference call to discuss its nine month and third quarter 2021 results at 10:00 a.m. ET on Thursday, November 4, 2021. This conference call will include discussion of CF Industries' business environment and outlook. Investors can access the call and find dial-in information on the Investor Relations section of the Company's website at www.cfindustries.com.

About CF Industries Holdings, Inc.

At CF Industries, our mission is to provide clean energy to feed and fuel the world sustainably. With our employees focused on safe and reliable operations, environmental stewardship, and disciplined capital and corporate management, we are on a path to decarbonize our ammonia production network - the world's largest - to enable green and blue hydrogen and nitrogen products for energy, fertilizer, emissions abatement and other industrial activities. Our nine manufacturing complexes in the United States, Canada, and the United Kingdom, an unparalleled storage, transportation and distribution network in North America, and logistics capabilities enabling a global reach underpin our strategy to leverage our unique capabilities to accelerate the world's transition to clean energy. CF Industries routinely posts investor announcements and additional information on the Company's website at www.cfindustries.com and encourages those interested in the Company to check there frequently.

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, EBITDA per ton, adjusted EBITDA, adjusted EBITDA per ton, free cash flow, and, on a segment basis, adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton, which are non-GAAP financial measures, provide additional meaningful information regarding the Company's performance and financial strength. Management uses these measures, and believes they are useful to investors, as supplemental financial measures in the comparison of year-over-year performance. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. In addition, because not all companies use identical calculations, EBITDA, EBITDA per ton, adjusted EBITDA, adjusted EBITDA per ton, free cash flow, adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton, included in this release may not be comparable to similarly titled measures of other companies. Reconciliations of EBITDA, EBITDA per ton, adjusted EBITDA, adjusted EBITDA per ton, and free cash flow to the most directly comparable GAAP measures are provided in the tables accompanying this release under "CF Industries Holdings, Inc.-Selected Financial Information-Non-GAAP Disclosure Items." Reconciliations of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to the most directly comparable GAAP measures are provided in the segment tables included in this release.

Safe Harbor Statement

All statements in this communication 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 as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will" or "would" and similar terms and phrases, including references to assumptions. 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 the Company's control, which could cause actual results to differ materially from such statements. These statements may include, but are not limited to, statements about strategic plans and management's expectations with respect to the production of green and blue (low-carbon) ammonia, the development of carbon capture and sequestration projects, the transition to and growth of a hydrogen economy, greenhouse gas reduction targets, projected capital expenditures, statements about future financial and operating results, and other items described in this communication.

Important factors that could cause actual results to differ materially from those in the forward-looking statements include, among others, the cyclical nature of the Company's business and the impact of global supply and demand on the Company's selling prices; the global commodity nature of the Company's nitrogen products, the conditions in the international market for nitrogen products, and the intense global competition from other producers; conditions in the United States, Europe and other agricultural areas; the volatility of natural gas prices in North America and Europe; weather conditions; the seasonality of the fertilizer business; the impact of changing market conditions on the Company's forward sales programs; 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; risks associated with cyber security; the Company's reliance on a limited number of key facilities; acts of terrorism and regulations to combat terrorism; risks associated with international operations; the significant risks and hazards involved in producing and handling the Company's products against which the Company may not be fully insured; the Company's ability to manage its indebtedness and any additional indebtedness that may be incurred; the Company's ability to maintain compliance with covenants under its revolving credit agreement and the agreements governing its indebtedness; downgrades of the Company's credit ratings; risks associated with changes in tax laws and disagreements with taxing authorities; risks involving derivatives and the effectiveness of the Company's risk measurement and hedging activities; potential liabilities and expenditures related to environmental, health and safety laws and regulations and permitting requirements; regulatory restrictions and requirements related to greenhouse gas emissions; the development and growth of the market for green and blue (low-carbon) ammonia and the risks and uncertainties relating to the development and implementation of the Company's green and blue (low-carbon) ammonia projects; risks associated with expansions of the Company's business, including unanticipated adverse consequences and the significant resources that could be required; risks associated with the operation or management of the strategic venture with CHS (the "CHS Strategic Venture"), risks and uncertainties relating to the market prices of the fertilizer products that are the subject of the supply agreement with CHS over the life of the supply agreement, and the risk that any challenges related to the CHS Strategic Venture will harm the Company's other business relationships; and the impact of the novel coronavirus disease 2019 (COVID-19) pandemic, including measures taken by governmental authorities to slow the spread of the virus, on our business and operations.

More detailed information about factors that may affect the Company's performance and could cause actual results to differ materially from those in any forward-looking statements may be found in CF Industries Holdings, Inc.'s filings with the Securities and Exchange Commission, including CF Industries Holdings, Inc.'s most recent annual and quarterly reports on Form 10-K and Form 10-Q, which are available in the Investor Relations section of the Company's web site. It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our descriptions of such risks and uncertainties should not be considered exhaustive. There is no guarantee that any of the events, plans or goals anticipated by these forward-looking statements will occur, and if any of the events do occur, there is no guarantee what effect they will have on our business, results of operations, cash flows, financial condition and future prospects. Forward-looking statements are given only as of the date of this communication and the Company 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.

____________(1) Nutrient tons represent the tons of nitrogen within the product tons.

Adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton are non-GAAP financial measures. Adjusted gross margin is defined as gross margin excluding depreciation and amortization and unrealized net mark-to-market(2) (gain) loss on natural gas derivatives. A reconciliation of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to gross margin, the most directly comparable GAAP measure, is provided in the table above. See "Note Regarding Non-GAAP Financial Measures" in this release.

Comparison of 2021 to 2020 first nine months periods:

* Other segment sales volume increased for the first nine months of 2021 compared to 2020 due to higher diesel exhaust fluid sales, partially offset by lower NPK sales. * Other average selling prices for the first nine months of 2021 increased compared to 2020 due to strong global demand as well as decreased global supply availability as higher global energy costs drove lower global operating rates. * Other segment adjusted gross margin per ton increased for the first nine months of 2021 compared to 2020 due to higher average selling prices, partially offset by higher realized natural gas costs.

Dividend Payment

On October 13, 2021, CF Industries' Board of Directors declared a quarterly dividend of $0.30 per common share. The dividend will be paid on November 30, 2021 to stockholders of record as of November 15, 2021.

Conference Call

CF Industries will hold a conference call to discuss its nine month and third quarter 2021 results at 10:00 a.m. ET on Thursday, November 4, 2021. This conference call will include discussion of CF Industries' business environment and outlook. Investors can access the call and find dial-in information on the Investor Relations section of the Company's website at www.cfindustries.com.

About CF Industries Holdings, Inc.

At CF Industries, our mission is to provide clean energy to feed and fuel the world sustainably. With our employees focused on safe and reliable operations, environmental stewardship, and disciplined capital and corporate management, we are on a path to decarbonize our ammonia production network - the world's largest - to enable green and blue hydrogen and nitrogen products for energy, fertilizer, emissions abatement and other industrial activities. Our nine manufacturing complexes in the United States, Canada, and the United Kingdom, an unparalleled storage, transportation and distribution network in North America, and logistics capabilities enabling a global reach underpin our strategy to leverage our unique capabilities to accelerate the world's transition to clean energy. CF Industries routinely posts investor announcements and additional information on the Company's website at www.cfindustries.com and encourages those interested in the Company to check there frequently.

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, EBITDA per ton, adjusted EBITDA, adjusted EBITDA per ton, free cash flow, and, on a segment basis, adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton, which are non-GAAP financial measures, provide additional meaningful information regarding the Company's performance and financial strength. Management uses these measures, and believes they are useful to investors, as supplemental financial measures in the comparison of year-over-year performance. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. In addition, because not all companies use identical calculations, EBITDA, EBITDA per ton, adjusted EBITDA, adjusted EBITDA per ton, free cash flow, adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton, included in this release may not be comparable to similarly titled measures of other companies. Reconciliations of EBITDA, EBITDA per ton, adjusted EBITDA, adjusted EBITDA per ton, and free cash flow to the most directly comparable GAAP measures are provided in the tables accompanying this release under "CF Industries Holdings, Inc.-Selected Financial Information-Non-GAAP Disclosure Items." Reconciliations of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to the most directly comparable GAAP measures are provided in the segment tables included in this release.

Safe Harbor Statement

All statements in this communication 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 as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will" or "would" and similar terms and phrases, including references to assumptions. 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 the Company's control, which could cause actual results to differ materially from such statements. These statements may include, but are not limited to, statements about strategic plans and management's expectations with respect to the production of green and blue (low-carbon) ammonia, the development of carbon capture and sequestration projects, the transition to and growth of a hydrogen economy, greenhouse gas reduction targets, projected capital expenditures, statements about future financial and operating results, and other items described in this communication.

Important factors that could cause actual results to differ materially from those in the forward-looking statements include, among others, the cyclical nature of the Company's business and the impact of global supply and demand on the Company's selling prices; the global commodity nature of the Company's nitrogen products, the conditions in the international market for nitrogen products, and the intense global competition from other producers; conditions in the United States, Europe and other agricultural areas; the volatility of natural gas prices in North America and Europe; weather conditions; the seasonality of the fertilizer business; the impact of changing market conditions on the Company's forward sales programs; 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; risks associated with cyber security; the Company's reliance on a limited number of key facilities; acts of terrorism and regulations to combat terrorism; risks associated with international operations; the significant risks and hazards involved in producing and handling the Company's products against which the Company may not be fully insured; the Company's ability to manage its indebtedness and any additional indebtedness that may be incurred; the Company's ability to maintain compliance with covenants under its revolving credit agreement and the agreements governing its indebtedness; downgrades of the Company's credit ratings; risks associated with changes in tax laws and disagreements with taxing authorities; risks involving derivatives and the effectiveness of the Company's risk measurement and hedging activities; potential liabilities and expenditures related to environmental, health and safety laws and regulations and permitting requirements; regulatory restrictions and requirements related to greenhouse gas emissions; the development and growth of the market for green and blue (low-carbon) ammonia and the risks and uncertainties relating to the development and implementation of the Company's green and blue (low-carbon) ammonia projects; risks associated with expansions of the Company's business, including unanticipated adverse consequences and the significant resources that could be required; risks associated with the operation or management of the strategic venture with CHS (the "CHS Strategic Venture"), risks and uncertainties relating to the market prices of the fertilizer products that are the subject of the supply agreement with CHS over the life of the supply agreement, and the risk that any challenges related to the CHS Strategic Venture will harm the Company's other business relationships; and the impact of the novel coronavirus disease 2019 (COVID-19) pandemic, including measures taken by governmental authorities to slow the spread of the virus, on our business and operations.

More detailed information about factors that may affect the Company's performance and could cause actual results to differ materially from those in any forward-looking statements may be found in CF Industries Holdings, Inc.'s filings with the Securities and Exchange Commission, including CF Industries Holdings, Inc.'s most recent annual and quarterly reports on Form 10-K and Form 10-Q, which are available in the Investor Relations section of the Company's web site. It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our descriptions of such risks and uncertainties should not be considered exhaustive. There is no guarantee that any of the events, plans or goals anticipated by these forward-looking statements will occur, and if any of the events do occur, there is no guarantee what effect they will have on our business, results of operations, cash flows, financial condition and future prospects. Forward-looking statements are given only as of the date of this communication and the Company 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.

CF INDUSTRIES HOLDINGS, INC.

SELECTED FINANCIAL INFORMATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

Three months ended Nine months ended September 30, September 30,

2021 2020 2021 2020

(in millions, except per share amounts)

Net sales $ 1,362 $ 847 $ 3,998 $ 3,022

Cost of sales 922 764 2,766 2,401

Gross margin 440 83 1,232 621

Selling, general and 52 49 167 154 administrative expenses

Goodwill impairment 259 - 259 -

Long-lived and intangible asset 236 - 236 - impairment

Other operating-net 5 (4 ) 7 8

Total other operating costs and 552 45 669 162 expenses

Equity in earnings of operating 15 2 37 8 affiliate

Operating (loss) earnings (97 ) 40 600 467

Interest expense 46 48 140 141

Interest income - - - (18 )

Loss on debt extinguishment 13 - 19 -

Other non-operating-net (19 ) 1 (17 ) (2 )

(Loss) earnings before income (137 ) (9 ) 458 346 taxes

Income tax (benefit) provision (46 ) (13 ) 57 33

Net (loss) earnings (91 ) 4 401 313

Less: Net earnings attributable 94 32 189 83 to noncontrolling interest

Net (loss) earnings attributable $ (185 ) $ (28 ) $ 212 $ 230 to common stockholders

Net (loss) earnings per shareattributable to common stockholders:

Basic $ (0.86 ) $ (0.13 ) $ 0.99 $ 1.07

Diluted $ (0.86 ) $ (0.13 ) $ 0.98 $ 1.07

Weighted-average common shares outstanding:

Basic 214.9 213.9 215.3 215.0

Diluted 214.9 213.9 216.4 215.3

CF INDUSTRIES HOLDINGS, INC.

SELECTED FINANCIAL INFORMATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

September 30,2021

December 31,2020

(in millions)

Assets

Current assets:

Cash and cash equivalents

$

757

$

683

Accounts receivable-net

386

265

Inventories

418

287

Prepaid income taxes

201

97

Other current assets

52

35

Total current assets

1,814

1,367

Property, plant and equipment-net

7,210

7,632

Investment in affiliate

92

80

Goodwill

2,116

2,374

Operating lease right-of-use assets

261

259

Other assets

273

311

Total assets

$

11,766

$

12,023

Liabilities and Equity

Current liabilities:

Accounts payable and accrued expenses

$

537

$

424

Income taxes payable

1

-

Customer advances

375

130

Current operating lease liabilities

93

88

Current maturities of long-term debt

-

249

Other current liabilities

9

15

Total current liabilities

1,015

906

Long-term debt, net of current maturities

3,465

3,712

Deferred income taxes

1,160

1,184

Operating lease liabilities

175

174

Other liabilities

337

444

Equity:

Stockholders' equity

2,938

2,922

Noncontrolling interest

2,676

2,681

Total equity

5,614

5,603

Total liabilities and equity

$

11,766

$

12,023

CF INDUSTRIES HOLDINGS, INC.

SELECTED FINANCIAL INFORMATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

September 30, December 31, 2021 2020

(in millions)

Assets

Current assets:

Cash and cash equivalents $ 757 $ 683

Accounts receivable-net 386 265

Inventories 418 287

Prepaid income taxes 201 97

Other current assets 52 35

Total current assets 1,814 1,367

Property, plant and equipment-net 7,210 7,632

Investment in affiliate 92 80

Goodwill 2,116 2,374

Operating lease right-of-use assets 261 259

Other assets 273 311

Total assets $ 11,766 $ 12,023



Liabilities and Equity

Current liabilities:

Accounts payable and accrued expenses $ 537 $ 424

Income taxes payable 1 -

Customer advances 375 130

Current operating lease liabilities 93 88

Current maturities of long-term debt - 249

Other current liabilities 9 15

Total current liabilities 1,015 906

Long-term debt, net of current maturities 3,465 3,712

Deferred income taxes 1,160 1,184

Operating lease liabilities 175 174

Other liabilities 337 444

Equity:

Stockholders' equity 2,938 2,922

Noncontrolling interest 2,676 2,681

Total equity 5,614 5,603

Total liabilities and equity $ 11,766 $ 12,023

CF INDUSTRIES HOLDINGS, INC.

SELECTED FINANCIAL INFORMATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

Three months ended September 30,

Nine months ended September 30,

2021

2020

2021

2020

(in millions)

Operating Activities:

Net (loss) earnings

$

(91

)

$

4

$

401

$

313

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization

203

212

650

662

Deferred income taxes

6

22

(25

)

(74

)

Stock-based compensation expense

7

7

23

20

Loss on debt extinguishment

13

-

19

-

Unrealized net gain on natural gas derivatives

(12

)

-

(18

)

(12

)

Unrealized loss on embedded derivative

-

1

2

2

Goodwill impairment

259

-

259

-

Long-lived and intangible asset impairment

236

-

236

-

Gain on sale of EU carbon credits

(20

)

-

(20

)

-

Loss on disposal of property, plant and equipment

1

5

3

14

Undistributed (earnings) losses of affiliate-net of taxes

(11

)

6

(15

)

(2

)

Changes in:

Accounts receivable-net

22

18

(115

)

7

Inventories

(111

)

(22

)

(120

)

29

Accrued and prepaid income taxes

(132

)

(140

)

(132

)

50

Accounts payable and accrued expenses

(16

)

1

69

(42

)

Customer advances

366

135

245

25

Other-net

(33

)

(26

)

(69

)

(51

)

Net cash provided by operating activities

687

223

1,393

941

Investing Activities:

Additions to property, plant and equipment

(201

)

(87

)

(382

)

(206

)

Proceeds from sale of property, plant and equipment

-

2

-

2

Distributions received from unconsolidated affiliate

-

1

-

1

Insurance proceeds for property, plant and equipment

-

-

-

2

Purchase of investments held in nonqualified employee benefit trust

(1

)

-

(13

)

-

Proceeds from sale of investments held in nonqualified employee benefit trust

1

-

13

-

Purchase of U.K. emission credits

(10

)

-

(10

)

-

Proceeds from sale of EU emission credits

10

-

10

-

Other-net

-

-

(1

)

-

Net cash used in investing activities

(201

)

(84

)

(383

)

(201

)

Financing Activities:

Proceeds from short-term borrowings

-

-

-

500

Payments of long-term borrowings

(263

)

-

(518

)

-

Repayments of short-term borrowings

-

-

-

(500

)

Dividends paid on common stock

(65

)

(64

)

(195

)

(193

)

Distributions to noncontrolling interest

(130

)

(86

)

(194

)

(174

)

Purchases of treasury stock

(50

)

-

(50

)

(100

)

Proceeds from issuances of common stock under employee stock plans

6

1

32

4

Cash paid for shares withheld for taxes

(1

)

(1

)

(11

)

(10

)

Net cash used in financing activities

(503

)

(150

)

(936

)

(473

)

Effect of exchange rate changes on cash and cash equivalents

(3

)

1

-

(1

)

(Decrease) increase in cash and cash equivalents

(20

)

(10

)

74

266

Cash and cash equivalents at beginning of period

777

563

683

287

Cash and cash equivalents at end of period

$

757

$

553

$

757

$

553

CF INDUSTRIES HOLDINGS, INC. SELECTED FINANCIAL INFORMATION NON-GAAP DISCLOSURE ITEMS

Reconciliation of net cash provided by operating activities (GAAP measure) to free cash flow (non-GAAP measure):

Free cash flow is defined as net cash provided by operating activities, as stated in the consolidated statements of cash flows, reduced by capital expenditures and distributions to noncontrolling interest. The Company has presented free cash flow because management uses this measure and believes it is useful to investors, as an indication of the strength of the Company and its ability to generate cash and to evaluate the Company's cash generation ability relative to its industry competitors. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures.

CF INDUSTRIES HOLDINGS, INC.

SELECTED FINANCIAL INFORMATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

Three months ended Nine months ended September 30, September 30,

2021 2020 2021 2020

(in millions)

Operating Activities:

Net (loss) earnings $ (91 ) $ 4 $ 401 $ 313

Adjustments to reconcile netearnings to net cash provided by operating activities:

Depreciation and amortization 203 212 650 662

Deferred income taxes 6 22 (25 ) (74 )

Stock-based compensation expense 7 7 23 20

Loss on debt extinguishment 13 - 19 -

Unrealized net gain on natural gas (12 ) - (18 ) (12 )derivatives

Unrealized loss on embedded - 1 2 2 derivative

Goodwill impairment 259 - 259 -

Long-lived and intangible asset 236 - 236 - impairment

Gain on sale of EU carbon credits (20 ) - (20 ) -

Loss on disposal of property, plant 1 5 3 14 and equipment

Undistributed (earnings) losses of (11 ) 6 (15 ) (2 )affiliate-net of taxes

Changes in:

Accounts receivable-net 22 18 (115 ) 7

Inventories (111 ) (22 ) (120 ) 29

Accrued and prepaid income taxes (132 ) (140 ) (132 ) 50

Accounts payable and accrued (16 ) 1 69 (42 )expenses

Customer advances 366 135 245 25

Other-net (33 ) (26 ) (69 ) (51 )

Net cash provided by operating 687 223 1,393 941 activities

Investing Activities:

Additions to property, plant and (201 ) (87 ) (382 ) (206 )equipment

Proceeds from sale of property, - 2 - 2 plant and equipment

Distributions received from - 1 - 1 unconsolidated affiliate

Insurance proceeds for property, - - - 2 plant and equipment

Purchase of investments held in (1 ) - (13 ) - nonqualified employee benefit trust

Proceeds from sale of investmentsheld in nonqualified employee 1 - 13 - benefit trust

Purchase of U.K. emission credits (10 ) - (10 ) -

Proceeds from sale of EU emission 10 - 10 - credits

Other-net - - (1 ) -

Net cash used in investing (201 ) (84 ) (383 ) (201 )activities

Financing Activities:

Proceeds from short-term borrowings - - - 500

Payments of long-term borrowings (263 ) - (518 ) -

Repayments of short-term borrowings - - - (500 )

Dividends paid on common stock (65 ) (64 ) (195 ) (193 )

Distributions to noncontrolling (130 ) (86 ) (194 ) (174 )interest

Purchases of treasury stock (50 ) - (50 ) (100 )

Proceeds from issuances of common 6 1 32 4 stock under employee stock plans

Cash paid for shares withheld for (1 ) (1 ) (11 ) (10 )taxes

Net cash used in financing (503 ) (150 ) (936 ) (473 )activities

Effect of exchange rate changes on (3 ) 1 - (1 )cash and cash equivalents

(Decrease) increase in cash and (20 ) (10 ) 74 266 cash equivalents

Cash and cash equivalents at 777 563 683 287 beginning of period

Cash and cash equivalents at end of $ 757 $ 553 $ 757 $ 553 period

CF INDUSTRIES HOLDINGS, INC. SELECTED FINANCIAL INFORMATION NON-GAAP DISCLOSURE ITEMS

Reconciliation of net cash provided by operating activities (GAAP measure) to free cash flow (non-GAAP measure):

Free cash flow is defined as net cash provided by operating activities, as stated in the consolidated statements of cash flows, reduced by capital expenditures and distributions to noncontrolling interest. The Company has presented free cash flow because management uses this measure and believes it is useful to investors, as an indication of the strength of the Company and its ability to generate cash and to evaluate the Company's cash generation ability relative to its industry competitors. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures.

Twelve months ended September 30,

2021 2020



Net cash provided by operating activities $ 1,683 $ 1,243

Capital expenditures (485 ) (313 )

Distributions to noncontrolling interest (194 ) (174 )

Free cash flow $ 1,004 $ 756

CF INDUSTRIES HOLDINGS, INC. SELECTED FINANCIAL INFORMATION NON-GAAP DISCLOSURE ITEMS (CONTINUED)

Reconciliation of net (loss) earnings attributable to common stockholders and net (loss) earnings attributable to common stockholders per ton (GAAP measures) to EBITDA, EBITDA per ton, adjusted EBITDA and adjusted EBITDA per ton (non-GAAP measures), as applicable:

EBITDA is defined as net (loss) earnings attributable to common stockholders plus interest expense-net, income taxes and depreciation and amortization. Other adjustments include the elimination of loan fee amortization that is included in both interest and amortization, and the portion of depreciation that is included in noncontrolling interest.

The Company has presented EBITDA and EBITDA per ton because management uses these measures to track performance and believes that they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the industry.

Adjusted EBITDA is defined as EBITDA adjusted with the selected items included in EBITDA as summarized in the table below. The Company has presented adjusted EBITDA and adjusted EBITDA per ton because management uses these measures, and believes they are useful to investors, as supplemental financial measures in the comparison of year-over-year performance.

Three months ended Nine months ended September 30, September 30,

2021 2020 2021 2020

(in millions)

Net (loss) earnings $ (91 ) $ 4 $ 401 $ 313

Less: Net earningsattributable to (94 ) (32 ) (189 ) (83 )noncontrolling interest

Net (loss) earningsattributable to common (185 ) (28 ) 212 230 stockholders

Interest expense-net 46 48 140 123

Income tax provision (46 ) (13 ) 57 33

Depreciation and amortization 203 212 650 662

Less other adjustments:

Depreciation and amortization (27 ) (21 ) (72 ) (62 )in noncontrolling interest

Loan fee amortization^(1) (1 ) (2 ) (3 ) (4 )

EBITDA (10 ) 196 984 982

Unrealized net mark-to-marketgain on natural gas (12 ) - (18 ) (12 )derivatives

COVID impact: SpecialCOVID-19 bonus for - 4 - 19 operational workforce

COVID impact: Turnaround - 7 - 7 deferral^(2)

Loss (gain) on foreigncurrency transactions, 2 (6 ) 5 7 including intercompany loans

Asset impairments 495 - 495 -

Engineering cost write-off^ - 1 - 9 (3)

Loss on sale of surplus land - 2 - 2

Property insurance proceeds - - - (2 )

Loss on debt extinguishment 13 - 19 -

Total adjustments 498 8 501 30

Adjusted EBITDA $ 488 $ 204 $ 1,485 $ 1,012



Net sales $ 1,362 $ 847 $ 3,998 $ 3,022

Tons of product sold (000s) 3,784 4,743 13,522 14,817



Net (loss) earningsattributable to common $ (48.89 ) $ (5.90 ) $ 15.68 $ 15.52 stockholders per ton

EBITDA per ton $ (2.64 ) $ 41.32 $ 72.77 $ 66.28

Adjusted EBITDA per ton $ 128.96 $ 43.01 $ 109.82 $ 68.30

____________(1)Loan fee amortization is included in both interest expense-net and depreciation and amortization.

(2)Represents expense incurred due to the deferral of certain plant turnaround activities as a result of the COVID-19 pandemic.

(3)Represents costs written off upon the cancellation of a project at one of our nitrogen complexes.

CF INDUSTRIES HOLDINGS, INC. SELECTED FINANCIAL INFORMATION GROSS MARGIN VARIANCE TO PRIOR YEAR

The following table presents summary operating results by business segment for the first nine months of 2021 and the major drivers of the variance in net sales, cost of sales and gross margin compared to the first nine months of 2020:

____________ Loan fee amortization is included in both interest expense-net and(1) depreciation and amortization.

Represents expense incurred due to the deferral of certain plant(2) turnaround activities as a result of the COVID-19 pandemic.

Represents costs written off upon the cancellation of a project at one of(3) our nitrogen complexes.

CF INDUSTRIES HOLDINGS, INC. SELECTED FINANCIAL INFORMATION GROSS MARGIN VARIANCE TO PRIOR YEAR

The following table presents summary operating results by business segment for the first nine months of 2021 and the major drivers of the variance in net sales, cost of sales and gross margin compared to the first nine months of 2020:

Variance due to the following items:

Higher Gain on Nine Higher Natural Unrealized Higher Increase Net Nine Months Average Volume^ MTM on Manufacturing, in Settlement Months Ended Selling (1) Gas natural gas Maintenance Purchased of Natural Ended September Prices^ derivatives and Other Urea^(4) Gas September 30, 2020 (1) Costs^ ^(3) Costs Contracts 30, 2021 (2)

(dollars in millions)

Consolidated

Net sales $ 3,022 $ 1,224 $ (309 ) $ - $ - $ - $ 61 $ - $ 3,998

Cost of 2,401 - (220 ) 332 (6 ) 307 64 (112 ) 2,766 sales

Gross margin $ 621 $ 1,224 $ (89 ) $ (332 ) $ 6 $ (307 ) $ (3 ) $ 112 $ 1,232

Gross margin 20.5 % 30.8 %percentage

Ammonia

Net sales $ 722 $ 348 $ (61 ) $ - $ - $ - $ - $ - $ 1,009

Cost of 609 - (40 ) 78 (2 ) 142 - (112 ) 675 sales

Gross margin $ 113 $ 348 $ (21 ) $ (78 ) $ 2 $ (142 ) $ - $ 112 $ 334

Gross margin 15.7 % 33.1 %percentage

Granular Urea

Net sales $ 915 $ 404 $ (162 ) $ - $ - $ - $ 61 $ - $ 1,218

Cost of 612 - (101 ) 81 (1 ) 50 64 - 705 sales

Gross margin $ 303 $ 404 $ (61 ) $ (81 ) $ 1 $ (50 ) $ (3 ) $ - $ 513

Gross margin 33.1 % 42.1 %percentage

UAN

Net sales $ 791 $ 288 $ (23 ) $ - $ - $ - $ - $ - $ 1,056

Cost of 675 - (20 ) 85 (1 ) 20 - - 759 sales

Gross margin $ 116 $ 288 $ (3 ) $ (85 ) $ 1 $ (20 ) $ - $ - $ 297

Gross margin 14.7 % 28.1 %percentage

AN

Net sales $ 343 $ 83 $ (67 ) $ - $ - $ - $ - $ - $ 359

Cost of 290 - (51 ) 55 (1 ) 44 - - 337 sales

Gross margin $ 53 $ 83 $ (16 ) $ (55 ) $ 1 $ (44 ) $ - $ - $ 22

Gross margin 15.5 % 6.1 %percentage

Other

Net sales $ 251 $ 101 $ 4 $ - $ - $ - $ - $ - $ 356

Cost of 215 - (8 ) 33 (1 ) 51 - - 290 sales

Gross margin $ 36 $ 101 $ 12 $ (33 ) $ 1 $ (51 ) $ - $ - $ 66

Gross margin 14.3 % 18.5 %percentage

____________(1)

Selling price and volume impact of granular urea purchased to satisfy customer commitments is reflected in the Increase in Purchased Urea column.

(2)

Higher natural gas costs include the impact, if any, of realized natural gas derivatives.

(3)

Represents the variance in the net unrealized mark-to-market on natural gas derivatives compared to the prior year period.

(4)

Represents the impact of the incremental tons compared to the prior year period.

CF INDUSTRIES HOLDINGS, INC. SELECTED FINANCIAL INFORMATION ITEMS AFFECTING COMPARABILITY

During the three and nine months ended September 30, 2021 and 2020, certain items impacted our financial results. The following table outlines these items and how they impacted the comparability of our financial results during these periods. During the three months ended September 30, 2021 and 2020, we reported a net (loss) attributable to common stockholders of $(185) million and $(28) million, respectively. During the nine months ended September 30, 2021 and 2020, we reported net earnings attributable to common stockholders of $212 million and $230 million, respectively.

____________^ Selling price and volume impact of granular urea purchased to satisfy(1) customer commitments is reflected in the Increase in Purchased Urea column.

^ Higher natural gas costs include the impact, if any, of realized natural(2) gas derivatives.

^ Represents the variance in the net unrealized mark-to-market on natural(3) gas derivatives compared to the prior year period.

^ Represents the impact of the incremental tons compared to the prior year(4) period.

CF INDUSTRIES HOLDINGS, INC. SELECTED FINANCIAL INFORMATION ITEMS AFFECTING COMPARABILITY

During the three and nine months ended September 30, 2021 and 2020, certain items impacted our financial results. The following table outlines these items and how they impacted the comparability of our financial results during these periods. During the three months ended September 30, 2021 and 2020, we reported a net (loss) attributable to common stockholders of $(185) million and $(28) million, respectively. During the nine months ended September 30, 2021 and 2020, we reported net earnings attributable to common stockholders of $212 million and $230 million, respectively.

Three months ended Nine months ended September 30, September 30,

2021 2020 2021 2020

Pre-Tax After-Tax Pre-Tax After-Tax Pre-Tax After-Tax Pre-Tax After-Tax

(in millions)

Unrealized netmark-to-marketgain on $ (12 ) $ (9 ) $ - $ - $ (18 ) $ (14 ) $ (12 ) $ (9 )natural gasderivatives^(1)

COVID impact:SpecialCOVID-19 bonus - - 4 3 - - 19 15 foroperationalworkforce^(1)

COVID impact:Turnaround - - 7 6 - - 7 6 deferral^(1)

Loss (gain) onforeigncurrencytransactions, 2 1 (6 ) (5 ) 5 4 7 5 includingintercompanyloans^(2)

Assetimpairments^ 495 403 - - 495 403 - - (3)

Engineeringcost write-off - - 1 1 - - 9 7 ^(2)(4)

Loss on saleof surplus - - 2 1 - - 2 1 land^(2)

Insuranceproceeds^(2) - - - - - - (10 ) (8 )(5)

Loss on debt 13 10 - - 19 15 - - extinguishment

Terra amendedtax returns^ - - - - - - (16 ) (32 )(6)

____________(1)

Included in cost of sales in our consolidated statements of operations.

(2)

Included in other operating-net in our consolidated statements of operations.

(3)

The after-tax impact of asset impairment charges reflects the amount of income tax benefit recognized in the three and nine months ended September 30, 2021 in accordance with guidance on accounting for income taxes in interim reporting periods.

(4)

Represents costs written off upon the cancellation of a project at one of our nitrogen complexes.

(5)

Represents proceeds related to an insurance claim at one of our nitrogen complexes. Consists of $8 million related to business interruption insurance proceeds and $2 million related to property insurance proceeds.

(6)

Included in interest income and income tax (benefit) provision in our consolidated statements of operations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211103006331/en/

CONTACT: Media Chris Close Director, Corporate Communications 847-405-2542 - cclose@cfindustries.com

CONTACT: Investors Martin Jarosick Vice President, Investor Relations 847-405-2045 - mjarosick@cfindustries.com