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NORTHBROOK, Ill. - CF Industries Holdings, Inc. (NYSE:CF), a $15.92 billion market cap company with a robust financial health score of "GREAT" according to InvestingPro, has started operations at its carbon dioxide dehydration and compression facility at the Donaldsonville Complex in Louisiana, the company announced in a press release.
The facility will enable the transportation and permanent geological sequestration of up to 2 million metric tons of carbon dioxide annually that would otherwise be released into the atmosphere. ExxonMobil, CF Industries’ carbon capture and sequestration partner, will handle the transportation and permanent storage of the CO2. This environmental initiative comes as CF Industries maintains strong financial performance, with $6.1 billion in revenue and an attractive P/E ratio of 12.9.
Currently, ExxonMobil is storing the CO2 from the Donaldsonville Complex through enhanced oil recovery in permanent geologic sites. The company plans to transition to dedicated permanent storage starting with its Rose CCS project once it receives applicable permits. The U.S. Environmental Protection Agency issued a draft Class VI permit for Rose in July, with final permits expected later this year.
"The start-up of the Donaldsonville carbon dioxide dehydration and compression facility and initiation of sequestration by ExxonMobil is a historic milestone in our company’s decarbonization journey," said Tony Will, president and chief executive officer of CF Industries Holdings, Inc.
As a result of this project, CF Industries expects to produce approximately 1.9 million tons of low-carbon ammonia annually. The company also anticipates qualifying for tax credits under Section 45Q of the Internal Revenue Code, which provides a credit per metric ton of CO2 stored.
CF Industries operates manufacturing complexes in the United States, Canada, and the United Kingdom, with a distribution network across North America. The company offers investors a solid 2.04% dividend yield and trades near its 52-week high, reflecting strong market confidence. According to InvestingPro analysis, the stock appears slightly undervalued, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of CF Industries among 1,400+ top US stocks.
In other recent news, CF Industries reported strong financial results for the first quarter of 2025, surpassing earnings and revenue forecasts. The company posted earnings per share of $1.85, exceeding the consensus forecast of $1.56. Revenue reached $1.66 billion, surpassing expectations of $1.53 billion. CF Industries also announced a 60% year-over-year increase in net earnings, reaching $312 million. The company continues to focus on strategic investments in low-carbon initiatives and expects capital expenditures to reach $650 million in 2025. Additionally, CF Industries has authorized a $2 billion share repurchase program through 2029. In other developments, the company is nearing the completion of its carbon capture and sequestration project at the Donaldsonville complex, with expectations to start sequestration in the second half of 2025. Analysts have shown interest in CF Industries’ BluePoint joint venture, noting potential changes in partnership stakes and the marketing of low-carbon ammonia.
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