SIOUX CITY, Iowa, Dec. 11 /PRNewswire/ --
Terra Nitrogen Company, L.P. (NYSE symbol: TNH) (TNCLP) reported today
that it has idled for December its Blytheville, Ark. facility and one half of
its Verdigris, Okla. facility due to the sudden and unexpected increase in
natural gas prices. The costs to maintain these facilities during December
will be exceeded by gains resulting from derivative financial instruments
executed in prior months to fix the price of a portion of TNCLP's December
natural gas requirements and from the sale of natural gas. The idled capacity
represents 64%, 50% and 100% of TNCLP's total ammonia, UAN and urea
manufacturing capacity, respectively. The facilities will restart when
natural gas and nitrogen prices reach levels allowing positive cash flows from
the facilities.
Terra Nitrogen Company, L.P. is a leading manufacturer of nitrogen
fertilizer products.
Information contained in this news release, other than historical
information, may be considered forward looking. Forward-looking information
reflects management's current views of future events and financial performance
that involve a number of risks and uncertainties. The factors that could
cause actual results to differ materially include, but are not limited to, the
following: changes in financial markets, general economic conditions within
the agricultural industry, competitive factors and price changes (principally
nitrogen selling prices and natural gas costs), changes in product mix,
changes in the seasonality of demand patterns, changes in weather conditions,
changes in governmental regulations and other risks described in the "Factors
That Affect Operating Performance" section of TNCLP's current annual report.
Note: Terra Industries' news announcements are also available on its web
site, http://www.terraindustries.com , and by fax at no charge by calling
800-758-5804, code 437906.
SOURCE Terra Nitrogen Company, L.P.
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Related links:
http://www.terraindustries.com
Company News On-Call:
http://www.prnewswire.com/comp/106067.html or fax,
800-758-5804, ext. 106067
CONTACT:
Mark Rosenbury of Terra Nitrogen Company,
L.P., 712-279-8756
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