We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CF Industries (CF) Gets Antitrust Nod for Waggaman Plant Buyout
Read MoreHide Full Article
CF Industries Holdings, Inc. (CF - Free Report) has announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (HSR Act), in connection with its earlier announced agreement to acquire Incitec Pivot Limited's ("IPL") ammonia production complex in Waggaman, LA.
The expiration of the HSR Act waiting period was a requirement for the transaction to close. Subject to the satisfaction of other usual closing conditions, CF Industries and IPL plan to complete the deal on Dec 1, 2023.
The Waggaman ammonia plant and related assets will be purchased by CF Industries for $1.675 billion under the terms of the agreement. Approximately $425 million of the purchase price will be allocated to a long-term ammonia offtake arrangement under which CF Industries will deliver up to 200,000 tons of ammonia per year to IPL's Dyno Nobel subsidiary at production economics. CF Industries anticipates using cash on hand to fund the remaining $1.25 billion of the purchase price.
Shares of CF have lost 21.2% over the past year compared with a 31.9% decline of its industry.
Image Source: Zacks Investment Research
The company, on its third-quarter call, said that the global nitrogen supply-demand balance will continue to be positive owing to robust demand from agricultural and forward energy curves displaying an elevated cost curve. Energy price differences between producers in North America and marginal producers in Europe and Asia continue to be significantly higher than historical levels. These stronger differentials are expected to last for a considerable amount of time, based on forward energy curves.
According to the company, there will continue to be considerable margin opportunities for low-cost North American producers on the back of the global nitrogen cost curve. CF also expects demand to remain solid through the end of this year and into 2024, led by India and Brazil.
CF Industries currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Axalta Coating Systems Ltd. (AXTA - Free Report) and The Andersons Inc. (ANDE - Free Report) .
Carpenter Technology has a projected earnings growth rate of 213.2% for the current fiscal year. It currently carries a Zacks Rank #1 (Strong Buy). CRS delivered a trailing four-quarter earnings surprise of roughly 14.3%, on average. The stock is up around 69.1 % in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axalta has a projected earnings growth rate of 5.4% for the current year. It currently carries a Zacks Rank #1. AXTA delivered a trailing four-quarter earnings surprise of roughly 6.7%, on average. The stock is up around 16.2% in a year.
Andersons currently carries a Zacks Rank #2. The stock has gained roughly 33.3% in the past year. ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CF Industries (CF) Gets Antitrust Nod for Waggaman Plant Buyout
CF Industries Holdings, Inc. (CF - Free Report) has announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (HSR Act), in connection with its earlier announced agreement to acquire Incitec Pivot Limited's ("IPL") ammonia production complex in Waggaman, LA.
The expiration of the HSR Act waiting period was a requirement for the transaction to close. Subject to the satisfaction of other usual closing conditions, CF Industries and IPL plan to complete the deal on Dec 1, 2023.
The Waggaman ammonia plant and related assets will be purchased by CF Industries for $1.675 billion under the terms of the agreement. Approximately $425 million of the purchase price will be allocated to a long-term ammonia offtake arrangement under which CF Industries will deliver up to 200,000 tons of ammonia per year to IPL's Dyno Nobel subsidiary at production economics. CF Industries anticipates using cash on hand to fund the remaining $1.25 billion of the purchase price.
Shares of CF have lost 21.2% over the past year compared with a 31.9% decline of its industry.
Image Source: Zacks Investment Research
The company, on its third-quarter call, said that the global nitrogen supply-demand balance will continue to be positive owing to robust demand from agricultural and forward energy curves displaying an elevated cost curve. Energy price differences between producers in North America and marginal producers in Europe and Asia continue to be significantly higher than historical levels. These stronger differentials are expected to last for a considerable amount of time, based on forward energy curves.
According to the company, there will continue to be considerable margin opportunities for low-cost North American producers on the back of the global nitrogen cost curve. CF also expects demand to remain solid through the end of this year and into 2024, led by India and Brazil.
CF Industries Holdings, Inc. Price and Consensus
CF Industries Holdings, Inc. price-consensus-chart | CF Industries Holdings, Inc. Quote
Zacks Rank & Key Picks
CF Industries currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Axalta Coating Systems Ltd. (AXTA - Free Report) and The Andersons Inc. (ANDE - Free Report) .
Carpenter Technology has a projected earnings growth rate of 213.2% for the current fiscal year. It currently carries a Zacks Rank #1 (Strong Buy). CRS delivered a trailing four-quarter earnings surprise of roughly 14.3%, on average. The stock is up around 69.1 % in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axalta has a projected earnings growth rate of 5.4% for the current year. It currently carries a Zacks Rank #1. AXTA delivered a trailing four-quarter earnings surprise of roughly 6.7%, on average. The stock is up around 16.2% in a year.
Andersons currently carries a Zacks Rank #2. The stock has gained roughly 33.3% in the past year. ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average.