Deerfield, Ill.—Terra Nitrogen Co. LP (TNCLP) reported net earnings of $102.9 million on sales of $177.7 million for the first quarter ended March 31, 2014. This compares to the yearago earnings of $166.8 million on sales of $224.1 million. Net income allocable to common units was $60.4 million ($3.26 per common unit) and $92.2 million ($4.98 per unit) for the 2014 and 2013 first quarters, respectively. Net sales for the first quarter totaled $177.7 million, compared to the year-ago $224.1 million. The decrease was due to lower ammonia and UAN average selling prices and lower UAN volume, which were offset partially by higher ammonia sales volume. Ammonia sales volume increased due to increased demand from the Western Cornbelt and Southern Plains. Ammonia and UAN average selling prices decreased by 37 and 17 percent, respectively; ammonia sales volume increased by 14 percent and UAN sales volumes decreased by 2 percent; and realized natural gas costs per mmBtu increased by 17 percent. In 2014, TNCLP is expected to have capital expenditures in the range of $70-$90 million, and a turnaround of approximately 50 percent of the plant that was scheduled to occur in the second half of 2014 is now anticipated to occur in the first half of 2015. TNCLP reported a cash distribution for the quarter of $3.01 per common unit payable May 30, 2014, to holders of record as of May 19, 2014.
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