Company: CF
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001324404-25-000030
Chunk: 125

Company: CF Industries Holdings, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 125
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 as new facilities continued to increase output and existing plants operated near full capacity.

The following table presents the average daily market price of natural gas at the Henry Hub, the most heavily-traded natural gas pricing point in North America, and our cost of natural gas used for production, which includes the impact of realized natural gas derivatives: 

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Table of ContentsCF INDUSTRIES HOLDINGS, INC. 

 Three Months Ended September 30,Nine Months Ended September 30,202520242025 v. 2024202520242025 v. 2024Average daily market price of natural gas at the Henry Hub (per MMBtu)$3.03 $2.08 $0.95 46 %$3.48 $2.19 $1.29 59 %Cost of natural gas used for production in cost of sales(1) (per MMBtu) 2.96 2.10 0.86 41 %3.34 2.38 0.96 40 %

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(1)Includes the cost of natural gas used for production and related transportation that is included in cost of sales during the period under the first-in, first-out inventory cost method.

In the third quarter of 2025, our cost of natural gas used for production, which includes the impact of realized natural gas derivatives, increased 41% to $2.96 per MMBtu from $2.10 per MMBtu in the third quarter of 2024. This increase in natural gas costs resulted in a decrease in gross margin of $73 million compared to the third quarter of 2024. In the nine months ended September 30, 2025, our cost of natural gas used for production, which includes the impact of realized natural gas derivatives, increased 40% to $3.34 per MMBtu from $2.38 per MMBtu in the nine months ended September 30, 2024. This increase in natural gas costs resulted in a decrease in gross margin of $249 million.

Low-carbon Ammonia Production Section 45Q Tax Credits

In July 2025, construction, commissioning and start-up of the dehydration and compression unit at our Donaldsonville complex was completed. Section 45Q of the Internal Revenue Code provides a tax credit per metric ton of CO2 captured and disposed of in secure geological storage. As a result, in the third quarter of 2025,