Terra Nitrogen Co LP (fka TNH)

[fung_derf]

DEERFIELD, Ill.--(Business Wire)--
Terra Nitrogen Company, L.P. (TNCLP) (NYSE: TNH) today reported net earnings of
$72.7 million on sales of $128.4 million for the quarter ended September 30,
2013. This compares to net earnings of $131.8 million on net sales of $181.1
million for the 2012 third quarter. Net income allocable to common units was
$46.6 million ($2.52 per common unit) and $73.9 million ($4.00 per common unit)
for the 2013 and 2012 third quarters, respectively.

Results for the third quarter of 2013 included an unrealized mark-to-market loss
on natural gas derivatives of $0.9 million compared to a gain of $7.1 million in
the third quarter of 2012.

For the first nine months of 2013, TNCLP reported net earnings of $388.8 million
on net sales of $567.9 million. This compares to net earnings of $410.8 million
on net sales of $573.6 million for the first nine months of 2012. Net earnings
allocable to common units was $222.8 million ($12.04 per common unit) and $230.3
million ($12.45 per common unit) for the first nine months of 2013 and 2012,
respectively. Results for the first nine months of 2013 included a $0.1 million
unrealized mark-to-market loss on natural gas derivatives compared to a gain of
$9.6 million for the first nine months of 2012.

Analysis of Results

Net sales for the 2013 third quarter totaled $128.4 million, compared to sales
of $181.1 million for the 2012 third quarter. The decreases in net sales and
earnings were due to lower volume and prices. The decreases in sales volume for
both ammonia and UAN were due to planned plant turn around activities during the
third quarter of 2013. The decrease in ammonia prices was due to higher
industry-wide inventory from lower spring usage as a result of the delay in the
U.S. planting season. The decrease in UAN prices was due to weak global nitrogen
prices as a result of increased nitrogen exports, primarily from China.

Comparing the 2013 to the 2012 third quarter, TNCLP`s:

* Ammonia and UAN average selling prices decreased by 8 and 6 percent,
respectively;
* Ammonia and UAN sales volume decreased by 37 and 20 percent, respectively; and

* Realized natural gas costs per MMBtu increased by 10 percent.

Cash Distribution

TNCLP reported today the declaration of a cash distribution for the quarter
ended September 30, 2013, of $2.02 per common limited partnership unit payable
November 29, 2013, to holders of record as of November 15, 2013.

Cash distributions depend on TNCLP's earnings, which can be affected by nitrogen
fertilizer selling prices, natural gas costs, seasonal demand factors,
production levels and weather, as well as anticipated cash requirements for
working capital needs and capital expenditures. For all of 2012, capital
expenditures were $47.7 million. In 2013, TNCLP is expected to have capital
expenditures of approximately $100 million. The capital program includes a rail
yard expansion, new ammonia and UAN storage tanks, and control and electrical
system upgrades. Some of these projects may extend beyond 2013. Cash
distributions per limited partnership unit also vary based on increasing amounts
allocable to the General Partner when cumulative distributions exceed targeted
levels. With this distribution, TNCLP cumulative distributions continue to
exceed targeted levels.