Skip to content
AnalystLens

CF Industries Holdings 8-K Report, Financial Results (Feb 14, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 14, 2024
Period End
February 14, 2024
Security
CF
In the record · 2016–202610-K1110-Q328-K157

CF filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 157 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Nov ’16Nov ’16
  2. Material agreement8-K · Dec ’19Dec ’19
  3. Leadership change8-K · Dec ’22Dec ’22
  4. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed February 14, 2024. Cited figures are marked; the original filing is the authoritative source.

CF Industries Holdings, Inc. filed an 8-K on February 14, 2024 to furnish a presentation (Exhibit 99.1) for its fourth-quarter and full-year 2023 results, which it planned to discuss on a February 15, 2024 conference call.

The presentation reports lower results for 2023 versus 2022 as nitrogen pricing and natural gas costs normalized. For full year 2023, net sales were $6,631 milliona (versus $11,186 million in 2022), gross margin was $2,545 million, or 38.4% of net sales (versus 52.4%), and net earnings attributable to common stockholders were $1,525 million, or $7.87 per diluted share (versus $3,346 million, or $16.38). Adjusted EBITDA was $2,760 million (versus $5,880 million), and free cash flow was $1,799 million (versus $2,783 million).

Fourth-quarter 2023 net sales were $1,571 millionb, down from $2,608 million a year earlier. The company emphasized capital returns and growth. It deployed $2.5 billion to repurchase 31.3 million shares since the beginning of 2021, with $2.6 billion remaining under a $3 billion authorization that expires in December 2025.

It also raised its quarterly dividend 25% to $0.50c per share and completed the Waggaman ammonia production facility acquisition on December 1, 2023. Management's 2024 outlook calls for gross ammonia production of approximately 10 million tons and capital expenditures in the range of $550 million. The company targets a second-half 2024 final investment decision on a greenfield low-carbon ammonia project, estimated at about $3 billion.

02—Key points

Key Highlights

  1. FY 2023 net sales were $6,631 million, down from $11,186 million in FY 2022; Q4 2023 net sales were $1,571 million versus $2,608 million in Q4 2022.
  2. FY 2023 net earnings attributable to common stockholders were $1,525 million ($7.87 per diluted share), compared with $3,346 million ($16.38 per diluted share) in FY 2022.
  3. FY 2023 Adjusted EBITDA was $2,760 million versus $5,880 million in FY 2022; FY 2023 gross margin was 38.4% of net sales versus 52.4%.
  4. FY 2023 free cash flow was $1,799 million, and cash provided by operating activities was $2,757 million; capital expenditures were $499 million.
  5. The company has $2.6 billion remaining under a $3 billion share repurchase authorization expiring December 2025, after deploying $2.5 billion to repurchase 31.3 million shares since the beginning of 2021.
  6. The quarterly dividend was increased 25% to $0.50 per share, and the Waggaman ammonia production facility acquisition closed on December 1, 2023.
  7. 2024 outlook: gross ammonia production of approximately 10 million tons, capital expenditures of about $550 million, and a second-half 2024 FID targeted for a greenfield low-carbon ammonia project.

03—Questions

Frequently Asked Questions

  1. What did CF Industries report for full-year 2023 results?

    Per the presentation furnished as Exhibit 99.1, FY 2023 net sales were $6,631 million, net earnings attributable to common stockholders were $1,525 million ($7.87 per diluted share), and Adjusted EBITDA was $2,760 million, all lower than FY 2022 levels of $11,186 million, $3,346 million ($16.38 per diluted share), and $5,880 million, respectively.

  2. How much cash did the company generate and how is it being returned to shareholders?

    FY 2023 cash provided by operating activities was $2,757 million and free cash flow was $1,799 million. The company deployed $2.5 billion to repurchase 31.3 million shares since the beginning of 2021, has $2.6 billion remaining under a $3 billion authorization expiring December 2025, and returned approximately $900 million to shareholders through dividends and share repurchases in 2023.

  3. What are the key items in the 2024 outlook?

    Management expects gross ammonia production of approximately 10 million tons and capital expenditures in the range of $550 million in 2024. It also targets a second-half 2024 final investment decision on a greenfield low-carbon ammonia production project, with an estimated cost in the range of $3 billion, and noted that Waggaman integration is underway.

  4. What clean energy and growth initiatives are described?

    The company cites a low-carbon ammonia plant joint venture with Mitsui for which an initial FEED study was completed, with FID targeted for second-half 2024; ATR and flue gas capture FEED studies expected to be completed in second-half 2024; and progress on the Donaldsonville green ammonia project, where the electrolyzer is installed and commissioning activities are underway. The company also entered an agreement with bp to purchase 4.4 billion cubic feet of certified natural gas, double the amount purchased in 2023.

04—Continue

← View all 8-K filings