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The Week in Fertilizer Stocks

The Week in Fertilizer Stocks


Producer Symbol Price Week Ago Year Ago
Agrium AGU 82.40 86.21 103.63
CF Industries CF 206.92 211.81 213.65
CVR Partners UAN 17.50 17.76 26.91
Intrepid Potash IPI 15.21 16.21 20.45
Mosaic MOS 46.26 45.28 54.45
PotashCorp POT 31.74 32.61 41.54
Rentech Nitrogen RNF 27.84 25.46 34.94
Terra Nitrogen TNH 202.30 203.50 214.25
Distribution/Retail
Andersons Inc. ANDE 69.00 69.66 37.19
Deere & Co. DE 82.92 82.09 81.19
Scotts SMG 54.57 55.54 43.47

Dakota Gas submits permit application for urea plant

Dakota Gasification Company, Bismarck, N.D., reported on Oct. 8 that it has submitted an application to the North Dakota Department of Health for an environmental permit for a proposed urea production plant at its Great Plains Synfuels Plant near Beulah, N.D.

Dakota Gas is in the final stages of a Front-End Engineering and Design (FEED) study for the facility, and described the application submittal as a “key preliminary step” in its ongoing investigation of the project. Based on a successful FEED study and final board approval, the urea plant would be scheduled for completion in early 2017 with a production capacity of 1,100 st per day.

“We’re excited about the potential to build on the fertilizer products we already produce, bringing more benefit to this nation’s agricultural customers,” said Andrew M. Serri, Dakota Gas president and CEO. “We’ve been evaluating a number of products and processes designed to bring value to rural America.”

The Synfuels Plant, which produces about 153 million cubic feet/day of pipeline-quality natural gas from a coal gasification process, already produces anhydrous ammonia and ammonium sulfate (Dak Sul 45) as co-products. Urea would mark the 10th co-product produced at the facility.

Serri noted that urea production requires anhydrous ammonia and carbon dioxide, both of which are manufactured in the plant’s process. He said urea has the highest nitrogen content of all solid nitrogen fertilizers, but costs less to handle, store, and transport that other nitrogen-based fertilizer.

Dakota Gas first announced that it was investigating urea production at the Synfuels Plant in late 2011 (GM Dec. 9, 2011), when it initiated a pre-FEED study for the project. The company moved to the FEED study phase in October 2012 (GM Oct. 15, 2012), reporting at that time that it anticipated the construction of the facility to be completed by late 2015 or early 2016 pending successful FEED study results.

“It’s important to note that a final decision has not yet been made to move forward with the urea project,” Serri cautioned on Oct. 8, referring to the submittal of the application for the environmental permit as “another step in the evaluation of the project.”

Dakota Gas is a subsidiary of Bismarck-based Basin Electric Power Cooperative, a consumer-owned, regional cooperative that generates and transmits electricity to 137 member rural electric systems and approximately 2.8 million consumers in Colorado, Iowa, Minnesota, Montana, Nebraska, New Mexico, the Dakotas, and Wyoming. A majority of the natural gas produced at the company’s Synfuels Plant, which has been in operation since 1984, is piped to Ventura, Iowa, for distribution in the eastern U.S.

Dakota Plains Co-op votes to join CHS

Members of Dakota Plains Cooperative, a full-service agribusiness headquartered in Valley City, N.D., have voted to approve a merger with CHS Inc., Inver Grove Heights, Minn. The proposal passed with 92 percent approval and will become effective Jan. 1, 2014, pending appropriate due diligence by both organizations and final approval by the CHS board of directors.

“We are pleased the members could see the same vision and opportunities the board saw in merging with CHS," said Greg Svenningson, Dakota Plains board president. “We are excited to partner with the nation’s leading cooperative.”

Dakota Plains offers farmers and ranchers a full line of agronomy, seed, feed, and energy services and products from 15 locations in central and southeastern North Dakota. CHS said patrons of Dakota Plains should expect a smooth transition, including continuity of staffing at its locations. Ken Astrup will continue to lead the co-op as general manager.

“This is a good match for both cooperatives,” said John McEnroe, executive vice president, CHS Country Operations. “We are always interested in investments that align with the CHS commitment to helping our farmer-owners grow their businesses.”

The Week in Fertilizer Stocks

The Week in Fertilizer Stocks


Producer Symbol Price Week Ago Year Ago
Agrium AGU 86.21 84.96 103.47
CF Industries CF 211.81 212.35 219.98
CVR Partners UAN 17.76 18.27 25.57
Intrepid Potash IPI 16.21 16.03 20.74
Mosaic MOS 45.28 44.19 54.89
PotashCorp POT 32.61 31.61 41.57
Rentech Nitrogen RNF 25.46 25.50 35.92
Terra Nitrogen TNH 203.50 204.82 209.90
Distribution/Retail
Andersons Inc. ANDE 69.66 70.47 37.72
Deere & Co. DE 82.09 83.08 81.91
Scotts SMG 55.54 55.15 43.51

Agrium’s Wilson to retire; Magro tapped as CEO

Agrium Inc.’s board of directors has appointed Agrium’s Chief Operating Officer Chuck Magro to succeed Mike Wilson as CEO upon his retirement, which will be effective Dec. 31, 2013. Magro will join the Agrium board immediately.

“I am confident that with Chuck’s leadership skills and industry experience, combined with the strength of our executive leadership team, the company will continue to build on Agrium’s high performance culture to drive operational excellence and bring value to all of our key stakeholders,” said Mike Wilson, Agrium president and CEO.

“On behalf of the entire board of directors, I would like to express my thanks to Mike for his drive, dedication and leadership in implementing our integrated strategy and very successful expansionary phase that was envisioned nearly a decade ago. The success of our strategy has resulted in Agrium’s share price increasing by over 500 percent in the past decade,” said Board Chair Victor Zaleschuk. “We are pleased Mike has agreed to remain on the Agrium board until the next Annual General Meeting.”

Magro was appointed chief operating officer in 2012. Prior to this, he held the role of executive vice president, corporate development & chief risk officer and was responsible for a number of core areas within Agrium. He joined Agrium following an extensive career with Nova Chemicals, a major petrochemical manufacturer.

He has a Bachelor of Applied Science (Chemical Engineering) from the University of Waterloo and an MBA from the University of Windsor.

Brandt acquires two locations

Brandt, Springfield, Ill. reports that it has acquired two retail agronomy locations near Decatur, Ill.– Hardy Fertilizer, Mount Auburn, Ill., and Niantic Crop Service, Niantic, Ill. They have extended Brandt’s reach to the east. “As a family company, we welcome the Hardy and Niantic employees to the Brandt family,” said Brandt President and CEO Rick Brandt. “Our goal is always to make 1+1=3. With the caliber of people who are joining us, we are going to make that happen. We will truly be a stronger company with our combined resources.”

Brandt said the acquisition of Hardy fits Brandt’s aggressive corporate strategy of providing superior agronomic advice and services for customers in central Illinois. The combined company has 24 retail locations throughout central Illinois, serving nearly 1 million acres of production farmland. Brandt offers a broad range of products and services, including plant nutrients, crop protection products, precision ag and custom application.

“Hardy comes to us with a 53-year reputation of impeccable service and a strong set of corporate values,” continued Brandt, “Our cultures and values just naturally aligned. Hardy has always been a customer-driven company with high-integrity employees who thrive when faced with big goals. That’s exactly what we look for as we continue to expand.”

Both Hardy and Niantic will be integrated into Brandt’s retail agronomy division, under the leadership of Chief Operating Officer and Executive Vice President Tim McArdle.

“I could not be more thrilled about this opportunity,” said McArdle. “It’s truly an honor to join forces with Gene Hardy and to carry on his legacy of always putting the customer first. Our goal is to keep that going. We are going to bring on all the managers, administrators and operators to continue to do the excellent work our customers deserve.”

Gene Hardy, founder of both Hardy Fertilizer and Niantic Crop Service, will remain with Brandt, providing strategic operations management and key account leadership.

“The marketplace is changing,” said Hardy, “And for us to take our customer services to the next level, we needed to align ourselves with a company that has the resources, shares similar values and has a high level of customer commitment. Brandt is that dynamic, diverse company. I am truly excited about our future together. ”

“This is an important strategic move for Brandt,” said Rick Brandt. “I want to thank Gene and Ginger Hardy for their leadership, vision and ultimately faith in the Brandt family. I am confident that our combined company is positioned to thrive and grow into the future.”

Agrium completes Viterra acquisition

Agrium Inc. announced today that it has successfully completed the acquisition of Viterra Inc’s Canadian retail assets. The total consideration for the retail assets in Canada and Australia is approximately C$300-million, which includes estimated net working capital of C$300-million.

“Viterra’s assets are an excellent strategic fit for Agrium and we are pleased to have finalized this highly accretive acquisition. Much of the success of this acquisition can be attributed to our integrated strategy. It gave us first access to the opportunity, allowed us to optimize the value of specific divested assets and to maximize potential synergies,” said Mike Wilson, Agrium president and CEO. “I would like to extend a warm welcome to our new employees and customers. We look forward to building on Viterra’s impressive track record to continue bringing improved technology, products and service to growers in western Canada.”

Agrium expects the annual EBITDA contribution from Viterra’s retail assets, net of divestitures, to be in the range of C$75-million to C$90-million, excluding synergies and integration costs. Integration of the businesses will commence immediately. Agrium expects to achieve synergies of between C$15-million to C$20-million by the end of 2015, with most of this being realized in the second year. Additional financial details will be made available in the coming months after final purchase price adjustments have been finalized.