On this page of StockholderLetter.com we present the latest annual shareholder letter from CF Industries Holdings, Inc. — ticker symbol CF. Reading current and past CF letters to shareholders can bring important insights into the investment thesis.

 •  3/25/2025 Letter Continued (Full PDF)
 •  3/22/2023 CF Stockholder Letter
 •  3/7/2024 CF Stockholder Letter
 •  More "Agricultural Chemicals" Category Stockholder Letters
 •  CF Benford's Law Stock Score = 96

CF Shareholder/Stockholder Letter Transcript:

Annual
Report
2024

2024 Overview
Financial Performance
$1.22 Billion
$2.33 Billion
$2.28 Billion
Net Earnings Attributable to
Common Stockholders
EBITDA(1)
Adjusted EBITDA(1)
$2.27 Billion
$1.45 Billion
Net Cash from Operations
Free Cash Flow(2)
Safety
As of December 31, 2024, the Company   s 12-month rolling
recordable incident rate was 0.31 incidents per 200,000 work hours.
Decarbonization

We made substantial progress on the construction of the
dehydration and compression unit at our Donaldsonville,
Louisiana, Complex, which will enable our partner
ExxonMobil to transport and sequester up to 2 million
metric tons of carbon dioxide (CO2) annually. Start-up of this
landmark carbon capture and sequestration (CCS) project is
expected in 2025.

We announced a new CCS project at our Yazoo City,
Mississippi, Complex, which includes an agreement
with ExxonMobil for the transport and sequestration in
permanent geologic storage of up to 500,000 metric tons of
CO2 annually. Sequestration is expected to start in 2028.
Operational Excellence
Produced 9.8 million tons of gross ammonia in 2024.
Return to Shareholders
Returned approximately $1.9 billion to shareholders in 2024,
repurchasing 18.8 million shares for over $1.5 billion and deploying
$364 million for dividend payments.
(1) EBITDA is defined as net earnings attributable to common stockholders plus interest expense (income)   net, income taxes and depreciation and amortization. See
reconciliations of EBITDA and adjusted EBITDA to the most directly comparable GAAP measures in the tables on page 8.
(2) Free cash flow is defined as net cash from operating activities less capital expenditures and distributions to noncontrolling interest. See reconciliation of free cash flow to the
most directly comparable GAAP measure in the table on page 8.

Fellow
CF Industries
Shareholders:
The CF Industries team delivered strong results in 2024.
Net earnings attributable to common stockholders for the year
were $1.22 billion, or $6.74 per diluted share, EBITDA was $2.33
billion and adjusted EBITDA was $2.28 billion. These results
reflect strong operational execution by the CF Industries team
against the backdrop of constructive global nitrogen industry
conditions. We also benefited from successfully integrating
the Waggaman ammonia production facility, which we
acquired in December 2023, into our network.
We continue to be a leading converter of adjusted EBITDA to
free cash flow. Net cash from operations was $2.27 billion and
free cash flow was $1.45 billion.
We returned approximately $1.9 billion to shareholders in
2024. This includes repurchasing 18.8 million shares, 10% of
shares outstanding at the beginning of the year, for $1.5 billion,
and $364 million in dividend payments to shareholders.
Our long-standing commitment is to increase shareholder
participation in our underlying assets by both increasing
production capacity and decreasing our outstanding share
count. Since the beginning of 2020:

We acquired the Waggaman ammonia production
facility for approximately $1.675 billion.

We returned $1.5 billion to shareholders through
dividend payments.

We deployed $4.1 billion to repurchase 52.8 million
shares, approximately 24% of shares outstanding at the
start of the period.
Our strong operational and financial results and commitment to reward long-term shareholders have contributed to
our record of outperformance in total shareholder return. We have exceeded our peer group on a 1-, 3-, 5-, 7- and 10year basis and exceeded the Dow Jones U.S. Commodity Chemicals Index on a 1-, 3-, 5- and 7-year basis and the S&P
500 on a 5-year basis, with similar returns on a 3- and 7-year basis.
CF INDUSTRIES
2024 ANNUAL REPORT
1

WHAT WE DO
UNIQUE ADVANTAGES
Our superior long-term shareholder value creation is rooted in our
strong and consistent cash generation.
Our products are global commodities. However, we believe we have
unique capabilities compared to our peers that underpin our cash
generation capability.
At our core, CF Industries is a producer of ammonia. We use the
Haber-Bosch process to fix atmospheric nitrogen with hydrogen
from natural gas to produce anhydrous ammonia, whose chemical
composition is NH3. We then choose to sell the ammonia itself or
upgrade it into ammonia-derived products such as granular urea,
urea ammonium nitrate solution (UAN) and diesel exhaust fluid
(DEF), which reduces nitrogen oxide emissions from diesel trucks
by up to 90% and increases fuel efficiency by 3-4%.
We are the largest producer of ammonia in the world. The 16
ammonia plants in our network, which are all located in North
America, have a total annual average capacity of 10.4 million
tons. We are best-in class operators, producing ammonia and/or
ammonia-derived products at nine manufacturing facilities that we
operate at one of the highest on-stream factors in our industry.
What we do makes a difference to billions of people. Simply,
ammonia is one of the most important chemical compounds on
earth, essential to human life. The primary use of ammonia and its
derivative products today, and the focus of our business for nearly
80 years, is as fertilizer. The nitrogen content in these products
provides energy to crops to increase yields and is critical to the
formation of protein within the plant.
Along with advancements in seed technology and farming
practices, the use of nitrogen fertilizer and other nutrients
dramatically increased food production in the second half of the
1900s, supporting world population growth and lifting countless
people out of hunger. It is estimated that fertilizer is responsible for
50% of the world   s food. At the same time, fertilizer allows more
food to be grown on fewer acres. This reduces the amount of land
cleared for agriculture, preserving carbon-sequestering forests and
the biodiversity of wildlife ecosystems.

We consistently deliver capacity utilization rates well above
our peers, underpinned by outstanding safety performance.
We have built, and maintain to the highest standards, what
we believe to be the industry   s most reliable, efficient, and
flexible assets. This operational excellence leads to capital
and operating efficiency, saving our shareholders billions of
dollars of capital and the accompanying annual maintenance
and overhead costs while allowing us to produce meaningfully
greater volumes of ammonia with the same assets.

We are one of the lowest-cost producers in our industry due
to our access to low-cost and plentiful North American natural
gas. This provides a significant production margin advantage
compared to the industry   s high-cost production facilities in
Europe. Over the near- and medium-terms, significant energy
cost differentials between North American producers and
high-cost producers in Europe are expected to persist.

We have leading distribution and logistics capabilities. This
includes a network of production facilities and distribution
terminals located in the United States Corn Belt, which
enables us to achieve a low-delivered cost per ton. We also
have a global reach, with the ability to export our products
to Europe, South America and Asia when it is economically
favorable to do so.

We are disciplined stewards of the business, with SG&A costs
as a percent of sales among the lowest in both the chemicals
and fertilizer industries. We also leverage partnerships to
drive capital efficiency and reduce risk. For example, our
sales volumes to Brazil, the world   s largest nitrogen import
region, have increased at a compound annual growth rate
of 22% since 2016 by partnering with existing distributors
in that country rather than purchasing or building our own
distribution network.
We consistently look to enhance these unique advantages
further by investing in high-return projects within our network. In
recent years, this has included expansions of DEF and nitric acid
production capacity, along with other logistical investments, that
enhance the cash generation capacity of our assets.
CF INDUSTRIES
2024 ANNUAL REPORT
2

THE GROWTH OPPORTUNITIES
We believe that global ammonia and nitrogen industry dynamics
suggest a significant opportunity for CF Industries to grow in the
coming years, enhancing our cash generation capability beyond
what our existing network could provide and thus enhancing our
ability to create value for long-term shareholders.
First, we expect the global nitrogen supply-demand balance to
tighten in the coming years. Over this time frame, confirmed
construction of new nitrogen production capacity is not sufficient
to keep pace with the historical nitrogen demand growth rate of
roughly 1.5% per year in traditional applications. Adding to this
tight supply-demand situation is the risk that existing ammonia
production capacity in several important regions remains on the
verge of permanent closure due to constrained availability and cost
of natural gas.
Second, we believe customer and regulatory requirements will
move the global industry towards manufacturing our products
with a lower carbon intensity. Ammonia and nitrogen fertilizer
production is a significant contributor to the carbon footprint of
agriculture. Consumer packaged goods companies are increasingly
focused on reducing the carbon impact of the food they sell.
Additionally, ethanol producers are looking to enable the use of
CF INDUSTRIES
their product as a sustainable aviation fuel. The use of low-carbon
ammonia and nitrogen fertilizer in crop production is a certifiable
and quantifiable pathway to achieve these objectives. At the same
time, many governments, particularly in Europe, are implementing
new greenhouse gas-focused regulatory regimes that will
advantage low-carbon products.
Finally, there is emerging demand from energy-intensive industries,
such as power generation and marine shipping, that have identified
ammonia as a clean energy source. This is due to the hydrogen
atoms in a molecule of ammonia. Hydrogen is widely viewed as
a scalable source of clean energy, and ammonia represents an
efficient mechanism to both ship and store hydrogen, as well as a
clean energy source in its own right as ammonia does not contain
or emit carbon. The use of ammonia for its clean energy capability
represents a significant source of new demand for those who can
produce low-carbon ammonia.
A tighter global nitrogen supply-demand balance, evolving
customer and regulatory requirements, and potential new sources
of demand position us to do what we do best     produce ammonia
and ammonia-derived products     while significantly reducing the
carbon emissions associated with ammonia production.
2024 ANNUAL REPORT
3



 3/25/2025 Letter Continued (Full PDF)