The Waggaman acquisition, completed on December 1, 2023, increased ammonia sales volume by approximately 161,000 tons in Q2 2024. This acquisition is intended to expand ammonia manufacturing and distribution capacity.

The company is progressing with its green ammonia project in Donaldsonville, Louisiana, and advancing decarbonization projects leveraging carbon capture and sequestration (CCS) at Donaldsonville and Yazoo City complexes. These projects aim to produce low-carbon ammonia.

The company is evaluating the construction of export-oriented greenfield low-carbon ammonia capacity at its Blue Point complex in Ascension Parish, Louisiana, including assessing ammonia production technology options and completing a front-end engineering and design (FEED) study.

CF Industries acquired the Waggaman ammonia production facility on December 1, 2023, and is successfully integrating it into its operations. In Q2 2024, the facility contributed approximately 161,000 tons to ammonia sales volume.

The green hydrogen production facility at the Donaldsonville complex is mechanically complete, and commissioning activities are nearing completion. The company has entered into an agreement to procure 45V-compliant renewable energy certificates to pair with the electricity consumed by electrolyzer operation.

The company uses derivative financial instruments to manage exposure to changes in natural gas prices. In Q2 2024, the cost of natural gas used for production decreased 31% to $1.90 per MMBtu, which resulted in an increase in gross margin of $81 million, excluding the impact of the Waggaman acquisition.

The company acknowledges the cyclical nature of its business and the impact of global supply and demand on selling prices. Intense global competition from other producers also influences delivered prices for nitrogen fertilizers.

The company highlights the volatility of natural gas prices in North America and the United Kingdom as a risk factor, as natural gas is a significant cost component of its manufactured nitrogen products.

The company identifies weather conditions and the impact of adverse weather events as a risk factor, as evidenced by the winter storm in January 2024 that impacted operations and led to additional costs.

The report notes that lower global energy costs reduced the global market clearing price required to meet global demand, impacting average selling prices across most segments.

The company acknowledges intense global competition from other producers as a key factor influencing delivered prices for nitrogen fertilizers.

CF Industries' strategy leverages its unique capabilities to accelerate the world's transition to clean energy, building upon its leadership in ammonia production to capture emerging opportunities to produce ammonia with lower carbon intensity.

The report highlights that lower natural gas costs, including the impact of realized derivatives, decreased cost of sales and increased gross margin in several segments.

The report notes that higher costs for planned and unplanned maintenance and repair activities in the first six months of 2024 partially offset the benefit of lower natural gas costs.

The acquisition of the Waggaman facility is intended to expand ammonia manufacturing and distribution capacity, including the ability to enable low-carbon ammonia production.

The company is advancing decarbonization projects at its Donaldsonville and Yazoo City complexes that leverage carbon capture and sequestration (CCS) to enable the production of low-carbon ammonia, and is mechanically completing a green hydrogen production facility.

The company is evaluating the construction of export-oriented greenfield low-carbon ammonia capacity at its Blue Point complex, including assessing ammonia production technology options that will meet the carbon intensity requirements of end users.

CF Industries and its partners are progressing two additional FEED studies focused on technologies that would further reduce the ammonia product's carbon intensity.

In the six months ended June 30, 2024, the company repurchased approximately 8.3 million shares under the 2022 Share Repurchase Program for $652 million.

In the first and second quarters of 2024, quarterly dividends of $0.50 per common share were declared and paid, representing a 25% increase from the quarterly dividend of $0.40 per common share that was declared and paid in the fourth quarter of 2023.

Capital expenditures totaled $182 million in the first six months of 2024, with full-year 2024 expenditures anticipated to be approximately $550 million, focused on sustaining the asset base, increasing capacity or capabilities, improving plant efficiency, and complying with environmental, health and safety requirements.

The company is progressing with its green ammonia project at its Donaldsonville, Louisiana, complex, with the green hydrogen production facility mechanically complete and commissioning activities nearing completion.

The company is advancing decarbonization projects at its Donaldsonville and Yazoo City complexes that leverage carbon capture and sequestration (CCS) to enable the production of low-carbon ammonia.

The company is evaluating the construction of export-oriented greenfield low-carbon ammonia capacity at its Blue Point complex in Ascension Parish, Louisiana, including assessing ammonia production technology options that will meet the carbon intensity requirements of end users.

The report notes that lower global energy costs reduced the global market clearing price required to meet global demand, impacting average selling prices across most segments.

The report mentions that a winter storm in January 2024 impacted operations and that weather conditions affected spring ammonia applications in North America.

The company's strategy depends on regulations such as Section 45V and 45Q of the Internal Revenue Code for tax credits related to hydrogen production and carbon sequestration.