Overview

* CF Industries ( CF ) Q2 revenue beats analyst expectations, driven by higher selling prices

* Company repurchased 2.8 mln shares in Q2, returning capital to shareholders

* Donaldsonville CCS project starts up, generating tax credits for CO2 sequestration

Outlook

* CF Industries ( CF ) expects 2025 capital expenditures of $800-$900 mln

* Company anticipates producing 1.9 mln tons of low-carbon ammonia annually

* CF Industries ( CF ) sees constructive nitrogen supply-demand balance through 2025

* Company expects strong nitrogen demand from Brazil and India in 2025

Result Drivers

* HIGHER SELLING PRICES - Increased average selling prices due to higher global energy costs raised the market clearing price, per CEO Tony Will

* INCREASED PRODUCTION - Higher ammonia production and supply availability boosted sales volumes, overcoming previous year's production outages

* LOW-CARBON AMMONIA - Start-up of Donaldsonville CCS project generating tax credits and premium pricing for low-carbon ammonia

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $1.89 $1.79

bln bln (9

Analysts

)

Q2 EPS $2.37

Q2 Net $386 mln

Income

Q2 $761 mln

Adjusted

EBITDA

Q2 Capex $245 mln

Q2 $757 mln

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 17 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the agricultural chemicals peer group is "buy."

* Wall Street's median 12-month price target for CF Industries Holdings Inc ( CF ) is $97.00, about 4.4% above its August 5 closing price of $92.72

* The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)