TNH ==> The Houston Winner!

[tiedyed1]

TNH has been getting ugly and today it is really ugly.

Any insights here?

It looks oversold but shares continue to get dumped today.
May be time to add some more

[mrmarket]

How can you not like a 5% dividend?

Cash Distribution
TNCLP reported today the declaration of a cash distribution for the quarter ended September 30, 2014, of $1.78 per common limited partnership unit payable November 28, 2014, to holders of record as of November 17, 2014.

[mrmarket]

Terra Nitrogen Company, L.P. Reports Second Quarter 2014 Results and Announces Cash Distribution

Terra Nitrogen Company, L.P.36 minutes ago













DEERFIELD, Ill.--(BUSINESS WIRE)--
Terra Nitrogen Company, L.P. (TNCLP) (TNH) today reported net earnings of $100.1 million on sales of $167.5 million for the quarter ended June 30, 2014. This compares to net earnings of $149.3 million on sales of $215.4 million for the 2013 second quarter. Net income allocable to Common Units was $58.4 million ($3.16 per Common Unit) and $84.0 million ($4.54 per Common Unit) for the 2014 and 2013 second quarters, respectively.
Results for the second quarter of 2014 included an unrealized net mark-to-market loss on natural gas derivatives of $4.9 million compared to a loss of $2.9 million in the second quarter of 2013.
For the first six months of 2014, TNCLP reported net earnings of $203.0 million on net sales of $345.2 million. This compares to net earnings of $316.1 million on net sales of $439.5 million for the first six months of 2013. Net earnings allocable to Common Units was $118.8 million ($6.42 per Common Unit) and $176.2 million ($9.52 per Common Unit) for the first six months of 2014 and 2013, respectively. Results for the first six months of 2014 included an $8.9 million unrealized net mark-to-market loss on natural gas derivatives compared to a gain of $0.8 million for the first six months of 2013.
Analysis of Results
Net sales for the 2014 second quarter totaled $167.5 million, compared to sales of $215.4 million for the 2013 second quarter. This decrease was due to lower average selling prices and sales volume. The decrease in overall prices was due to lower global nitrogen prices driven by increased international supply. Ammonia prices also were lower than in the prior year period due to high industry-wide North American ammonia inventory levels coming into 2014 while UAN prices also decreased due to customers’ reluctance to hold inventory. The decrease in ammonia sales volume was due to the company having lower available inventory to sell due to strong shipments in the first quarter of 2014. UAN sales volume declined due to farmers’ preference for ammonia over UAN.
Net earnings for the 2014 second quarter totaled $100.1 million, compared to net earnings of $149.3 million for the 2013 second quarter. This decrease was due to lower revenue and higher realized natural gas costs.
Comparing the 2014 to the 2013 second quarter, TNCLP’s:

• Ammonia and UAN average selling prices decreased by 23 and 14 percent, respectively;
• Ammonia and UAN sales volume decreased by 14 and 5 percent, respectively; and
• Realized natural gas costs per MMBtu increased by 3 percent.

Cash Distribution
TNCLP reported today the declaration of a cash distribution for the quarter ended June 30, 2014, of $3.11 per common limited partnership unit payable August 29, 2014, to holders of record as of August 18, 2014.
Cash distributions depend on TNCLP's earnings as well as cash requirements for working capital needs and capital expenditures. In 2014, TNCLP is expected to have capital expenditures in the range of $70 million to $90 million. A turnaround of approximately 50 percent of the complex is anticipated to occur in the first quarter of 2015 and is expected to have an impact on cash available to fund distributions.
Cash distributions are made 99.975% to common and Class B common unitholders and 0.025% to the General Partner except when cumulative distributions of available cash exceed specified target levels above the minimum quarterly distributions of $0.605 per unit. Under such circumstances, the General Partner is entitled to receive Incentive Distribution Rights. With this distribution, TNCLP cumulative distributions continue to exceed targeted levels.
This release serves as a qualified notice to nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b). Please note that 100 percent of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
About TNCLP
Terra Nitrogen Company, L.P. is a leading manufacturer of nitrogen fertilizer products.
TNCLP is the sole limited partner of Terra Nitrogen, Limited Partnership (TNLP), owner of the Verdigris, Oklahoma, manufacturing facility and related assets. Terra Nitrogen GP Inc., an indirect, wholly-owned subsidiary of CF Industries Holdings, Inc., is the General Partner of TNCLP and exercises full control over all of TNCLP’s business affairs.
Forward-Looking Statements
All statements in this communication, other than those relating to historical facts, are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond TNCLP’s control, which could cause actual results to differ materially from such statements. Important factors that could cause actual results to differ materially from expectations include, among others:
• risks related to TNCLP’s reliance on one production facility;
• the cyclical nature of TNCLP’s business;
• the global commodity nature of TNCLP’s fertilizer products, the impact of global supply and demand on TNCLP’s selling prices, and the intense global competition from other fertilizer producers;
• conditions in the U.S. agricultural industry;
• the volatility of natural gas prices in North America;
• reliance on third party transportation providers;
• weather conditions;
• potential liabilities and expenditures related to environmental and health and safety laws and regulations;
• future regulatory restrictions and requirements related to greenhouse gas emissions;
• risks associated with cyber security;
• TNCLP’s inability to predict seasonal demand for its products accurately;
• risks involving derivatives and the effectiveness of TNCLP’s risk measurement and hedging activities;
• limited access to capital;
• acts of terrorism and regulations to combat terrorism;
• risks related to TNCLP’s dependence on and relationships with CF Industries;
• deterioration of global market and economic conditions;
• risks related to TNCLP’s partnership structure and control of TNCLP’s General Partner by CF Industries;
• the conflicts of interest that may be faced by the executive officers of TNCLP’s General Partner, who operate both TNCLP and CF Industries; and
• tax risks to TNCLP’s common unit holders and changes in TNCLP’s treatment as a partnership for U.S. or state income tax purposes.
More detailed information about factors that may affect TNCLP’s performance may be found in its filings with the Securities and Exchange Commission, including its most recent periodic reports filed on Form 10-K and Form 10-Q, which are available through CF Industries’ web site. Forward-looking statements are given only as of the date of this release and TNCLP disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Terra Nitrogen Company, L.P. news announcements are also available on CF Industries’ website, www.cfindustries.com.

TERRA NITROGEN COMPANY, L.P.
CONSOLIDATED BALANCE SHEETS
				(unaudited)
				June 30,			December 31,
				2014			2013
				(in millions, except for units)
ASSETS
Current assets:
	Cash and cash equivalents			$	115.9		$	86.9
	Due from affiliates of the General Partner				28.0			29.0
	Accounts receivable				0.6			1.0
	Inventories, net				7.8			5.9
	Prepaid expenses and other current assets				0.7			7.8
		Total current assets			153.0			130.6
Property, plant and equipment, net					228.8			214.1
Other assets					6.0			5.1
		Total assets		$	387.8		$	349.8
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
	Accounts payable and accrued liabilities			$	25.5		$	27.9
	Due to affiliates of the General Partner				5.0			3.7
	Other current liabilities				0.5			8.0
		Total current liabilities			31.0			39.6
Noncurrent liabilities					0.9			1.2
Partners' capital:
	Limited partners' interests, 18,501,576 Common Units
		authorized, issued and outstanding			288.7			264.5
	Limited partners' interests, 184,072 Class B Common Units
		authorized, issued and outstanding			2.0			1.5
	General Partner's interest				65.2			43.0
		Total partners' capital			355.9			309.0
		Total liabilities and partners' capital		$	387.8		$	349.8

TERRA NITROGEN COMPANY, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
				Three months ended June 30,						Six months ended June 30,
				2014			2013			2014			2013
				(in millions, except per unit amounts)
Net sales:
	Product sales to an Affiliate of the General Partner			$	167.2		$	215.0		$	344.5		$	438.7
	Other income from an Affiliate of the General Partner				0.2			0.2			0.3			0.3
	Other income				0.1			0.2			0.4			0.5
Total					167.5			215.4			345.2			439.5
Cost of goods sold:
	Materials, supplies and services				57.4			55.6			122.0			102.2
	Services provided by the affiliates of the General Partner				5.9			6.1			11.5			11.7
Gross margin					104.2			153.7			211.7			325.6
Selling, general and administrative services
	provided by the affiliates of the General Partner				3.8			3.7			7.7			7.5
Other general and administrative expenses					0.3			0.7			1.0			2.0
Earnings from operations					100.1			149.3			203.0			316.1
Net earnings				$	100.1		$	149.3		$	203.0		$	316.1
Allocation of net earnings:
General Partner				$	40.7		$	63.8		$	82.2		$	136.8
Class B Common Units					1.0			1.5			2.0			3.1
Common Units					58.4			84.0			118.8			176.2
Net earnings				$	100.1		$	149.3		$	203.0		$	316.1
Net earnings per Common Unit				$	3.16		$	4.54		$	6.42		$	9.52

	TERRA NITROGEN COMPANY, L.P.
	SUMMARIZED OPERATING INFORMATION
(Unaudited)
						Three months ended							Six months ended
						June 30,							June 30,
						2014			2013				2014			2013
	Sales volumes by product (tons in thousands)
			Ammonia				71			83				169			169
			UAN (1)				470			495				1,000			1,035
	Average selling prices (dollars per ton)
			Ammonia			$	488		$	631			$	445		$	644
			UAN				282			327				269			318
	Natural gas costs/MMBtu (2)					$	3.87		$	3.74			$	3.95		$	3.58

[mrmarket]

You have to love the 8.6% dividend!

Summary

• High dividend value at current pricing.
• Price decline due to dividend payout not threat to business.
• Currently at our buy target.

Terra Nitrogen (TNH) recently declared a Q1 dividend of $3.01 and posted $3.26 GAAP EPS. Although this is less than quarters past it marks an improvement over Q#3 2013 which signaled the bottom for share pricing and dividend payouts. The question following Q4 earnings, and another three months until the next dividend payment, centers on timing.
Our stance strategically on Terra Nitrogen has not changed. There have been headwinds of late, and we expect continued pressure due to both lower sales pricing, and higher input costs, but maintain that our thesis over the longer time frame is maintained. A previous article (here) outlines our thesis. Terra Nitrogen, historically a high dividend payer, has suffered mightily of late with a cascading share price. Currently trading down $3.00 to $140.32. $140 has been a buy signal target for us as we have watched share-pricing swing up from its previous lows only to revisit them today. Currently TNH pays $3.01 calculating to a yield of 7.78%.
Since we still support our ownership thesis, and THN is now at our buy target, we will add shares on this share price decline. We believe that today's drop is due to the Q#1 dividend payout and does not signal further threats to the business. Earnings as represented in the chart below reflect earnings at a high value to share pricing.
(click to enlarge)
When investing for dividends it's important to maintain a relative pricing perspective to the company, peers, the market and portfolio holdings. Taken by itself TNH looks to be a reasonable investment with high yield and a return to healthier earnings. The chart below reflects the relative stance of pricing compared to dividends.
(click to enlarge)
The press release outlining earnings and forward-looking statements is here. We expect to see further pricing pressure as the market digests Q#1 news. Calculating pricing probability out to November of 2014 shows a reasonable level of price risk. TNH pricing is influenced by many factors, natural gas pricing, weather, competition, input costs and market price product pressure to name a few. Our model is designed by recognia to only look at past pricing and project pricing probability. We are buyers at $140 and willing to wait for share value to climb. Earning a 7.78% dividend makes patient investing more tolerable and we still believe in the business merits of both their key products. Food supplies will need to increase and nitrogen fertilizer will likely play an important role in feeding the world.
(click to enlarge)

[tiedyed1]

It hasn't seen 148 since I called the bottom!

I know. You nailed the TNH Mr. Market bottom!

I bought a small amount originally at 216, then bought heavy at 155, then today my final installment at 165 as it is on the rise now...
weighted averaging I am almost break even while getting the dividends (so really ahead)

TNH is like a Galapagos Turtle moving its way up the hill and you are not worried it will eventually make it...

[billyjoe]

TNH 3 month chart. Look at the higher lows. http://bigcharts.marketwatch.com/qui...ow=True&time=6

---------------billy

[mrmarket]

It hasn't seen 148 since I called the bottom!

[tiedyed1]

TNH looks to have found its bottom - just sayin. And its dividend has been very nice, thank you very much.

This sleeper has indeed gained traction and I have been adding to the position.
Bought my last installment today at 165 and yes, that dividend has been sweet.
(also, did you get the K-1 yesterday which has a small loss to write off? every little bit helps!)

[mimo_100]

Technically, this stock is running into overhead resistance 149-156. But a break above 150 signals a double top on the P&F charts - watch the volume in the coming days - it will tell the tale.

[mrmarket]

I'm considering TNH as one of my next 3 buys! It's not the typical stock on my screens, but a MrMarket pick on sale looks good to me.

Normally I don't love "value" stocks, but when they pay a nice dividend you can afford to be patient.

[antioch6]

I'm considering TNH as one of my next 3 buys! It's not the typical stock on my screens, but a MrMarket pick on sale looks good to me.

[mrmarket]

TNH looks to have found its bottom - just sayin. And its dividend has been very nice, thank you very much.

[mrmarket]

he MLP with high yield
Terra Nitrogen Company (NYSE: TNH) is limited partnership operating as nitrogen fertilizer product manufacturer, selling 2.4 million tons of nitrogen fertilizer for more than $780 million in net sales and $560.8 million in net earnings in 2012. The majority of its sales, $571.2 million, or 73.2% of the total revenue, was generated from the sales of UAN, while $204.3 million in sales came from Ammonia products. CF Industries owns around 75% of the total outstanding common units and all of its Class B common units.
In the past ten years, Terra Nitrogen has paid consistently positive but fluctuating dividends. The dividend has been on the rise, climbing from $0.25 per share in 2003 to $16.86 per share in 2012. In the past twelve months, its dividend per share stayed at $15.96 per share, with the payout ratio of 34.7%. Terra Nitrogen is trading at $218.40 per share, with a total market cap of $4.1 billion. The market values Terra Nitrogen at only 6.11 times its trailing EBITDA. Terra Nitrogen offers quite a juicy yield, at 8.6%.

[mrmarket]

DEERFIELD, Ill.--(BUSINESS WIRE)--
Terra Nitrogen Company, L.P. (TNCLP) (TNH) today reported net earnings of $166.8 million on sales of $224.1 million for the first quarter ended March 31, 2013. This compares to net earnings of $124.2 million on sales of $196.9 million for the 2012 first quarter. Net income allocable to Common Units was $92.2 million ($4.98 per Common Unit) and $69.9 million ($3.78 per Common Unit) for the 2013 and 2012 first quarters, respectively.
Results for the first quarter of 2013 included an unrealized mark-to-market gain on natural gas derivatives of $3.7 million compared to a loss of $11.3 million in the first quarter of 2012.
Analysis of Results
Net sales for the 2013 first quarter totaled $224.1 million, compared to sales of $196.9 million for the 2012 first quarter. This increase was due to higher ammonia and UAN average selling prices and higher UAN sales volume, which were offset partially by lower ammonia sales volume. The increase in ammonia and UAN prices was due to tight industry-wide inventories and strong demand in anticipation of a large number of acres of corn to be planted in 2013. UAN sales volume increased due to higher customer demand for application to wheat growing regions. Ammonia sales volume declined due to a later start to ammonia application compared to the unusually early start in the first quarter of 2012.
Comparing the 2013 to the 2012 first quarter, TNCLP’s:
Ammonia and UAN average selling prices increased by 27 and 7 percent, respectively;
Ammonia sales volume decreased by 9 percent and UAN sales volumes increased by 7 percent; and
Realized natural gas costs per MMBtu increased by 2 percent.
Cash Distribution
TNCLP reported today the declaration of a cash distribution for the quarter ended March 31, 2013, of $4.68 per common limited partnership unit payable May 30, 2013, to holders of record as of May 20, 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 cash requirements for working capital needs and capital expenditures. For all of 2012, capital expenditures were $46.7 million. In 2013, TNCLP is expected to have capital expenditures in the range of $75 million to $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. In addition to these projects, the company will be undertaking a major turnaround in the second quarter of 2013, which will result in lower production and sales volume during that period. 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.
This release serves as a qualified notice to nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b). Please note that 100 percent of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
About TNCLP
Terra Nitrogen Company, L.P. is a leading manufacturer of nitrogen fertilizer products.
TNCLP is the sole limited partner of Terra Nitrogen, Limited Partnership (TNLP), owner of the Verdigris, Oklahoma, manufacturing facility and related assets. Terra Nitrogen GP Inc., an indirect, wholly-owned subsidiary of CF Industries Holdings, Inc., is the General Partner of TNCLP and exercises full control over all of TNCLP’s business affairs.
Forward-Looking Statements
All statements in this communication, other than those relating to historical facts, are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond TNCLP’s control, which could cause actual results to differ materially from such statements. Important factors that could cause actual results to differ materially from expectations include, among others:
• risks related to TNCLP’s reliance on one production facility;
• the cyclical nature of TNCLP’s business;
• the global commodity nature of TNCLP’s fertilizer products, the impact of global supply and demand on TNCLP’s selling prices, and the intense global competition from other fertilizer producers;
• conditions in the U.S. agricultural industry;
• the volatility of natural gas prices in North America;
• reliance on third party transportation providers;
• weather conditions;
• potential liabilities and expenditures related to environmental and health and safety laws and regulations;
• future regulatory restrictions and requirements related to greenhouse gas emissions, climate change or other environmental requirements;
• CF Industries’ ability to complete the implementation of a new enterprise resource planning system and the risks associated with cyber security;
• TNCLP’s inability to predict seasonal demand for its products accurately;
• risks involving derivatives and the effectiveness of TNCLP’s risk measurement and hedging activities;
• limited access to capital;
• acts of terrorism and regulations to combat terrorism;
• risks related to TNCLP’s dependence on and relationships with CF Industries;
• deterioration of global market and economic conditions;
• control of TNCLP’s General Partner by CF Industries;
• the conflicts of interest that may be faced by the executive officers of TNCLP’s General Partner, who operate both TNCLP and CF Industries; and
• changes in TNCLP’s treatment as a partnership for U.S. or state income tax purposes.
More detailed information about factors that may affect TNCLP’s performance may be found in its filings with the Securities and Exchange Commission, including its most recent periodic reports filed on Form 10-K and Form 10-Q, which are available through CF Industries’ website. Forward-looking statements are given only as of the date of this release and TNCLP disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

[jiesen]

look at TNH now!

http://finance.yahoo.com/q/bc?s=TNH+Basic+Chart&t=5d

This one's riding a nitrogen rocket- and up $30 in about a week!
I'll be sad to sell it so soon, and miss out on those 7% divvys...