Pure-Play Fertilizer Company
Our company benefits from positive trends in the nitrogen fertilizer market. We believe that as a pure-play nitrogen fertilizer company we are well positioned to benefit from positive trends in the nitrogen fertilizer market in general and the UAN market in particular, including strengthening demand, tightening supply, rising crop prices and increased corn acreage.
We derive substantially all of our revenue from the production and sale of nitrogen fertilizers, primarily in the agricultural market, whereas most of our competitors are diversified into other crop nutrients, such as phosphate and potassium, and make significant sales into the lower-margin industrial market. Nitrogen fertilizer production is a higher margin-growing business with more stable demand compared to the production of phosphate and potassium because nitrogen is depleted in the soil more quickly and therefore must be reapplied annually.