SIOUX CITY, Iowa, July 22 /PRNewswire/ -- Terra Nitrogen Company, L.P.
(TNCLP) (NYSE: TNH) today reported net income of $42.9 million on revenues of
$105.6 million for the quarter ended June 30, 1997, compared with net income
of $54.7 million on revenues of $106.2 million for the second quarter of 1996.
Earnings per limited partnership unit were $1.24 for the second quarter of
1997 compared with $1.74 for the comparable 1996 quarter.  The amount of net
income allocable to the limited partners' interest is based on the
partnership's net income and the proportionate share of cash distributed to
the limited partners and the general partner.
    Second quarter earnings for 1997 were down from the record earnings
reported in the 1996 quarter due primarily to a 34% increase in natural gas
costs.  Natural gas is the primary raw material used in the production of
nitrogen fertilizer.
    Revenues for the second quarter of 1997 were virtually unchanged from the
1996 quarter as lower sales prices were offset by higher ammonia and urea
sales volumes.  Prices for all products were down between 2% and 8% compared
with the prior year quarter, while ammonia and urea sales volumes increased
24% and 20%, respectively.  Wet weather in the first quarter shifted some
sales, particularly of ammonia, into the second quarter.  Favorable weather
and increased planted acres of corn led to higher sales volumes of ammonia and
urea during the second quarter of 1997.
    TNCLP also announced today a cash distribution for the quarter ended
June 30, 1997 of $2.38 per common unit, payable August 29, 1997 to unitholders
of record as of August 4, 1997.  The cash distribution reflects seasonal
reductions to both first quarter inventory and required reserves.
    Distributions are dependent on TNCLP earnings which are traditionally
highest in the quarter ending June 30, due to the seasonal demand for
fertilizer.  Earnings can also be affected by market prices for nitrogen
products, the cost of natural gas, industry production levels, business
cycles, and weather.
    TNCLP is one of the largest U.S. manufacturers of nitrogen fertilizer
products.

                         TERRA NITROGEN COMPANY, L.P.
                      Consolidated Statements Of Income
                  ($ in Thousands, except per Unit amounts)

                               Three Months Ended    Six Months Ended
                                    June 30,            June 30,
                                 1997    1996         1997    1996

    Revenues                  105,175    106,198    179,220    195,502
    Other income                  426         40        560        184

    Total net revenues        105,601    106,238    179,780    195,686

    Cost of goods sold         60,254     49,681    102,763     84,923
    Gross profit               45,347     56,557     77,017    110,763

    Operating expenses          3,232      3,322      6,202      6,357

    Operating income           42,115     53,235     70,815    104,406

    Interest expense             (584)      (120)    (1,018)      (246)
    Interest income             1,406      1,567      2,932      3,520

    Net income                 42,937     54,682     72,729    107,680

    Net income per Limited
     Partnership Unit            1.24       1.74       2.68       3.72

    The amount of net income allocable to the Limited Partners' interest is
based on the Partnership's net income and the proportionate share of cash
distributed to the Limited Partners and the General Partner.

    Prior Year amounts have been reclassified to conform to current year
presentation.

    Nitrogen Volumes and Prices
                              1997                            1996
                       Sales         Average           Sales        Average
                     Volumes       Unit Price        Volumes      Unit Price
    Quarter        (000 tons)        ($/ton)       (000 tons)      ($/ton)
    Ammonia           169              189            136            192
    UAN               556               94            595            103
    Urea              134              156            112            169

    Year to Date
    Ammonia           254              195            207            193
    UAN               963               93          1,146            100
    Urea              248              164            219            188

                         TERRA NITROGEN COMPANY, L.P.
                         Consolidated Balance Sheets
                               ($ in Thousands)
                                                      June 30,
    Assets                                         1997    1996

    Cash and cash equivalents                    74,396    80,096
    Accounts receivable                           1,291    26,421
    Inventory                                    41,524    25,044
    Prepaid expenses                              1,890     4,532
    Total current assets                        119,101   136,093

    Property, plant and equipment, net          169,873   172,967
    Distribution reserve fund                         0    18,480
    Other assets                                 17,007    11,764
    Total assets                                305,981   339,304



    Liabilities and partners' capital

    Accounts payable and accrued liabilities     43,613    36,950

    Current portion of capital lease obligations  1,047     1,407
    Total current liabilities                    44,660    38,357

    Long-term debt and capital lease obligations  9,700     3,747

    Other long-term liabilities                   1,060     1,059
    Partners' capital                           250,561   296,141

    Total liabilities and partners' capital     305,981   339,304

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