CF Industries: Strong Margins Taking Advantage of low Natural Gas Prices

December 2, 2012

CF Industries is the leading North American producer of nitrogen fertilizer. By a miracle of nature, this fertilizer is made out of natural gas and air. Owing to the very low prices of natural gas, coupled with the high acreage of corn expected to be planted in the near future, CF Industries enjoys excellent margins and a free cash flow yield of over 13%. The company also has some facility to protect its margins, as natural gas can be hedged easily.

Leave a Reply