Food and Ag.

Okay, let's kick off. So we're going to start off today with a fireside presentation with CF Industries, of course, a leading global nitrogen producer with a very large North American nitrogen base. Very happy to have Bert Frost, who's the EVP and Chief Commercial Officer of CF, and Martin Jerisik, who runs Invest Relations and Treasury. So I'll slip over here. It's 8 o'clock.

Perfect. There you go.

Made it right on time. All right.

So why don't maybe we could start off with a bit of a State of the Union a lot going on in nitrogen markets why don't you maybe talk about what's going on nitrogen this year and what's different this year versus other years each year is different and it's amazing when we sit down and talk about it here at your conference or on our conference calls and how we reflect on the the oscillations of this industry and you have so many things happening but if you go back like to 2008 and talk about the the peak and drop and trough of that era or 2020 and COVID or Russian-Ukraine invasion, and now we have the Iranian situation or the Middle Eastern situation. But feathered underneath that are other, I would say, smaller issues in terms of gas issues in certain countries or areas or lack thereof, operational issues. We have a lot of old assets in certain places and inefficiencies. And so, but the demand continues to grow. And it's an amazing story of continued 1% to 2% demand growth, but not necessarily additional capacity growth. And so where we are today is a very interesting place, I think, for CF and for North America, because all of a sudden the shift is shifted towards who is the safe place? Where is the place to produce this stuff? Who has low-cost gas? Who has the rule of law? Who has an area where I can build on top of some of the best farmland in the world? And that's the United states and that's just a poster for cf industries and so we're very excited about uh what's how this is transpiring not because of wars or conflicts no that's not something we're uh we're pleased with but it's it's the structural advantage that we have built of cf industries and uh where this industry is headed and the needs of the world and we're well positioned to to satisfy many much of those needs i mean it's it's a weird year right like you could say it's like 2022 but it's not exactly it's a different conflict a different situation although the timing of both conflicts start around february end of february but this market we've seen a surge in nitrogen prices you know just after kind of i guess the key stock up period and the distribution for nitrogen in north america you know how is the market playing out right now well actually i want to i think your first point is very interesting in terms of how this is is this similar to 2022 or not and again back to these other uh i'd say excursions out of the mean from 08 to 20 to 2022 to now most of those were demand driven and so in 2007 2008 there was an oh my god can i get supply i need to pull forward well the world pulled forward a lot of demand and we had a collapse same with 2022 the reality was the product came out of Russia and was being exported, maybe a little bit of a delay, but the world was afraid of not being able to have supply, so again, demand was pulled forward. Today, there are supply limitations, and it's not just what's happening in the Middle East with millions of tons that are not going to be produced and not going to make it out, but the nationalistic moves that have taken place from other places to say, well, wait a second, I'm going to secure my supply. I'm not going to allow exports Russia China other places or needing gas and so this is a supply a unique supply limited market where will you get supply and how long does it and what price will you pay for this product and so when we look at the forward and you're talking about spring and positioning when we look at the North American market, our estimates are 80 to 85 percent of at least nitrogen fertilizer was in place for spring and priced at the Q3, Q4, Q1 average at very attractive levels for the American and Canadian farmer. And so we're pleased with how we have worked with our channel partners, the retailers, the wholesalers, and we don't sell to farmers, but that group that serves the farmer to make sure that the product is where it's supposed to be when it's needed for planting and that's for nitrogen for you folks out there that's ammonia first which goes down in the fall and then the spring uan urea and and uh and those products so we feel very good about that supply and we will then pivot to the global market and once the u.s and canada are satisfied and begin exporting i forgot to mention that today right now and for us the two days you want to submit questions to these sessions on the app and down the conference app people have to be out in the lobby and then we have the iPad here to get your questions I think we're seeing you know bifurcated markets right now like we've seen us I don't remember it is yesterday I don't think I was reading yesterday but no less around $600 maybe sub $600 a short ton offshore prices are close to maybe high 700 800 a metric ton so there's some arbitrage or there's some opportunities here bifurcated markets talk about that you're correct and it is it's an interesting phenomenon in that um we are the lowest valued market today in the world at that 600 a short ton where egypt algeria nigeria those that have available tons to export are closer to 800 part of that's a reflection of again the the the north american market is satisfied we've we've imported sufficient volumes cf has produced and kept those tons tons in market. And we had a drop in corn acres from 98. We were estimating 95 million acres, so a little bit less applied. We had a very good fall application and spring of ammonia. So when you add up the nitrogen needs, I think there has been sufficient where now the game is buying NOLA tons on a barge and re-exporting them. So you're going to see vessels that have brought tons in, put on a barge, put on a vessel, and sent out because of that price arbitrage. That'll eventually correct, but kind of year in, year out, NOLA is one of the lowest priced markets in the world, and there's a reason for that. It's an easy place for, let's just say, Russia, Egypt, Algeria, or Nigeria. You're long a vessel. You can send it to NOLA and discharge it into vessel and store it that way, where in Brazil, you can't birth until you have it all sold and paper is nationalized. Most markets operate that way.

So I don't want to get anybody in trouble, but in thinking about the export opportunities and some arbitrage there or some better netbacks, I mean, the U.S. government, the U.S. administration has been very vocal the last bunch of weeks and months, Rick Rollins, other players in the government about fertilizer shortage, but I don't think actually are in the States fertilizer shortage, but just talking about pricing and things like that, is there a concern that the government, If this conflict continues, is there a concern that the U.S. could put a new policy like, no, you can export nitrogen, no, you can't do things like that? Like other countries we've seen, you know, do it. Is that a crazy thought?

Does crazy drive crazy? I don't know. I think you have to take a step back and say, is that something that's in the interest of the government? Is that something that's in the interest of the – in terms of policy? And is that something that makes long-term and short-term sense? And I would say no, because it's a global market. Products move all over the world. We at CF, we do export at times, but it's, I would say, a de minimis part of our portfolio. We're heavily focused on North America. We have an industrial base, an ag base, and then that incremental volume that's exported generally during the off-season, because you have a bell curve of demand. So you're building inventory until about March, April, and then you're dumping inventory where you're applying that product to the ground. And so the goal of a retail, our customers, is to be at empty by the end of June. That's a good goal because it's a reset. And then we supply those customers. We announce it's called our fill programs where we're filling the inventory. And so during that natural time of declining demand, we're still producing 24-7, 365. 65 we're you know we're always going and so we would we have inventory space for probably two months we at CF and so there is a natural time because of our where our assets are located that we can load vessels very efficiently and that's good for the market because it takes two to play in this game we produce we want to sell but we need our customers who want to buy and generally they don't want to commit their capital their working capital nor their risk capital to fill their inventory maybe in June, July. They prefer to do that in August through December. So this is a natural oscillating market that there is a need to export at certain times. So I think it's fair.

We're getting the part of the year where maybe some of the pressure comes off the North Hemisphere, not so much the South Hemisphere, but North Hemisphere. It's early, but do you have any views on how Phil might go versus other prior years? I always have views. Tell us.

You guys want to hear it? No, we believe that this year Phil will do very well because of that earlier comment on there's going to be almost no inventory at the retail level. The focus from our communication and discussions with our customers is we're going to be empty. We want to be empty, and then we want to reassess where the market is, whether that's the corn market or wheat or whatever crops are being supplied. understand the credit needs and position of their customer the farmer and then we like to work synergistically with our channel partners and price based on the world market but but also be attractive that they're willing to buy and commit their capital to this process so I expect of a very good fill program we want what we did last year was interesting we communicated a month before and said to the customer base we're going to start phil on a this date in august and we will call you on that day and offer you a price and then get your your tons your needs organized with your customers and if it went very efficiently i anticipate doing the same thing what what day you know what day in your head right now you think you're going to do that i would say sometime in early august so okay so early july start like start getting telling people about you got a month Yeah, we got that, and we have the Southwest Fertilizer Conference where we meet and talk about all things fertilizer.

Okay, and do you think we'll see any change in sort of retail purchasing behavior where maybe they don't want to empty the bins at the end of the season? Maybe they're worried about supply, or do you think it will be similar behavior?

No, I think they're going to empty the bins. And this is – I'm speaking only of nitrogen, so you have nitrogen, phosphate, potash, some sulfur products, and then the crop protection and seeds. And so I would anticipate all that is focused on liquidation and the repositioning.

So, I mean, we've known in quotes for, you know, nine months, ten months, that we were going to see an acre reduction or acre shift from corn to soy in 2026.

And we got our first USDA estimates, you know, end of March. and then you know a lot of people in the industry think well there'll be a more a wider shift like more acre reduction more soybean acres do you have a view if the usda has got it right our view would be whether they're right or wrong i don't want to comment but our view is 95 or maybe even higher than that and there's a reason the one product you can make if you're a farmer that you have a yield impact is corn. And so if you're a 200 bushel per acre producer and you've prepared your land, you've picked your seed optimization, and you've got good soil moisture, which all is in place today, if you fertilize specific to nitrogen fertilizer, the yield uplift opportunity, and that's the revenue opportunity, is there. And so in this kind of market where you're at $5 corn today, we're at $5.03 for December, the corn-to-bean ratio favors corn. But again, if you can get 10, 5 additional bushels per acre, which is highly possible, when you're looking out into the world today, what is going to happen to the supply, the stocks-to-use ratio of corn? You should ask the Bungie and ADM guys this. But our perspective is that you've got an opportunity because of what's going on in the world and the lack of nitrogen and the lack of movement. And so second crop corn is some place where you might see an impact, but that'll be in 2027. And so if you're a farmer here, you shoot for yield, you've got on-farm storage, you hold your crop in the fall of 2026, and we expect to see an increasing value for that output. And that's fantastic for the American farmer.

So I actually spent some time Monday and yesterday with AGCO, right, the big equipment manufacturer in Toronto and Montreal. And the view that they're trying to push is 2027 should be bullish and maybe get people buying trackers again because sort of some of the things you're touching on, which is that, okay, farmers might apply. Well, their view is farmers are going to apply less nitrogen per acre, yields will go down, crop prices will go up, and so everyone's not going to buy another new tracker next year because they have more money. Now, I don't know if I necessarily subscribe to that because I think sophisticated farmers, if they're going to apply corn, they're going to do their 200 pounds or whatever of nitrogen, and if they don't want to do that, they'll just plant some other crop that doesn't use nitrogen. Do you have any views on yield, application rates, and what it means for next year?

Well, again, my view on yield is you're going to apply nitrogen for yield. I do think that phosphate is expensive, and so that goes to soybeans. Potash at 350 is probably reasonable. It's cheap. Come on. It's cheap. If I were Canadian, I'd say that. But I do think that around the world, these are the calculations that farmers around the world are making. But on nitrogen, and this goes, again, back to yields, is we're short 5 million tons at a minimum coming out of the Gulf. That's not going to be replaced. Every day that this goes on, the untanglement of the strait, you've got 1,000, 1,500 ships on the west side. You've got ships on the entrance side that need to come in. It's a little highway. So you've got this movement of ships that has to, and what ships go first? Do petroleum go first? Does refined fuels go second?

Sulfur, come on, sulfur.

Well, and so we're short sulfur. I was just on the phone with, last night, Darlene and I were flying in, I was on the phone with a guy I deal with in China talking about some of the needs and movements and the impacts, sulfur on phosphate in China. We are going to be short phosphate in the world, and but we're also short nitrogen so yields are going to be hit in some places and who's going to be impacted are those that either can't afford it or can't get it and so again back to this in a needs-based world where a majority of at least in the United States corn goes to feed and then to ethanol and or corn refining we have we have consistent demand for that output for the farmer. So again, back to where I think the impact is, is rising prices, which we hope leads to rising incomes for the farmer.

Okay, I got a question from someone in the app. Thank you. So you mentioned you were liquidating inventories to reassess. Would that keep prices high and availability tight? How are you managing credit terms to customers?

Credit terms. So for credit terms, we keep them pretty tight. You can see from our financials, we don't have bad debt expense, we don't have write-offs, so we manage our credit very tightly, and as prices go up, it generally becomes tighter. I would say he manages it very tightly. We have negative working capital, right?

And so it's, we've, a lot of our product is prepaid. So I think our position, but again, on the pricing issue, it's a global market, so it's as much as we would, I think people like to say that that's controlled by industry it's not and it's this is a dispersed industry we're the world's largest producer of ammonia and we're five percent of that 200 million tons of ammonia that's consumed 200 million tons of urea we're five million of that tonnage and so as products move or demanded and during this crisis i had phone calls from many different places around the world and it wasn't a question of price i need a vessel of this product or that product can you load it no we can't because we're committed to the north american market when can you i'll pay this price and so it's that's the kind of drivers that are taking place right now so a silly question but we all get asked every day the war ends tomorrow although it didn't two weeks ago war ends tomorrow um and things unwind take some time whatever some reasonable question the war ends tomorrow things start to unwind how do you see the market sort of normalizing or developing in that ridiculous preposterous impossible to understand scenario yeah i got an answer yeah yeah no you get my gist oh i do and i remember on february 28th and march 1st when i got the call you know generally i wake up and i look at the gas market i look at the corn market and which was kind of annoying to my wife but and then i look at the news. What's happening today? And when the hostilities commenced, it was, you know, pull pricing. And let's sit down and assess. Then the week after, the Monday, Tuesday, Wednesday after that, was calling customers. What do you need? Where you're at? What does this mean? Thinking that was a two-week issue. Okay, maybe it's a three-week issue. Okay, maybe it's a month issue. Well, now it's a two-and-a-half-month issue, and we can end hostilities and open the strait. Again, I would say it's two months just to – and I don't know if we get back. We don't know. We know that in terms of operations that are not operating today are nitrogen plants, and that's Bahrain, Qatar, Iran. We don't know what's been bombed. We don't know what LNG is available. I mean, you've got to think about it's not just urea coming out of the Gulf. it's lng that goes to india bangladesh pakistan bangladesh has shut down their four plants because they don't have energy india's operating their plants they're 60 uh driven or their 60 of their gas needs are imported lng they're operating their nitrogen plants because of that lack of product at 70 that's just adding more millions of tons of needs we estimate that india last year imported 10 million tons of urea we thought this year would be like maybe seven eight nine million tons we weren't sure they're going to be 10 to 13 million tons so you're short it's not available but these countries that produce it aren't producing it they need more so the import demand goes up and these people need and we need these the middle eastern producers to be producing again and then there's china come in so there's so many questions about supply where it's going to come from back to nationalistic moves and attitudes and thinking that when you look at the forward market, I don't think we untangle this, and I'm just going to project we're almost in June now until August.

And I think what's interesting is, and Martin, you probably agree with this, like if we were going back six months, 12 months, 24 months, I think a very simplistic investor, a very simplistic view by a lot of the buy side has been CF is a proxy stock to TTF or for handling have gas spreads like if you just have to explain someone in five seconds right and that was what people were just fixated on and the last few months have definitely changed the story of it right because it's much more complicated i don't know if you have any views on what i'm getting at but now it's not just about gas prices it's about so many other things you know well i think that's right i think the world has uh has changed and we'll probably have a new normal that's different from yeah from where we were in the past and and in the not too uh distant past the world's running

pretty smoothly in our industry and with not a lot of friction and barriers to overcome. And now you have a very complicated global situation. It's affecting shipments. It's changing the risk profile of assets that we previously considered first quartile just based on their gas price alone. And now you have to factor in their ability to actually ship that product out.

Yeah, I think how the market valued nitrogen assets and, again, where you're going to build new assets, that has a risk premium that wasn't, I don't think, incorporated. So if you're looking at a cost of capital of X or a return of Y, that calculus needs to change. And, again, that's where CF is. We're located in the best market with the best gas supply, the best ability to distribute the product. It all works very well.

Speaking of complicated, CBAM has been around now for fertilizer for four and a half months. There's a lot of political discussion about it all the time. It seems like it's pretty much in place. Any views on CBAM has changed the market?

CBAM has, it's a difficult, because you don't know until the end of the year what your actual cost is going to be. My European friends, European friends in our industry, it's a struggle. One, you've got older assets, you don't have gas, or the price of gas is at $16, we're paying $2.60. It's a much different calculus. Where I go with that, though, is what, again, how CF Industries is prepared and how we've thoughtfully worked through this with decarbonizing our footprint. So we've invested hundreds of millions of dollars in decarbonizing first at Donaldsonville, where we now have close to 2 million tons of decarbonized product. We're building the World Scale Bluepoint project that will come on in 2029. We'll be 95% decarbonized, and we have space for four more ammonia plants with our partners or independently. Our partners are Jera and Mitsui, which we're really pleased because they're taking some of that offtake to new applications in Japan for co-firing. And so CBAM, there's two different schools of thought. What the United States did or our government did was give the carrot. So the 45 system of decarbonizing, we lean into that, and we're partnering with Exxon for our decarbonization projects as well as – who's the other one? I can't remember. But so we are on that path. We need Amanda. See, we need Amanda. She's fast. So we are on that path of decarbonizing, one, because we're getting paid for it, but two, we believe it's the right thing to do. And so we're looking to supply some of the nitrogen needs to Europe and meet those CBAM goals.

Okay, let's talk about that. It's a question that just came in as well. You've been running some low-carbon ammonia out of Diebel now since the third quarter last year, third quarter, fourth quarter, third quarter. How is demand, how is that going? What are customers saying? And how do you think demand is evolving for sustainable and low-carbon nitrogen?

It's evolving in many facets. And so what we've been doing over the years in terms of this journey has been going on for almost five years of decarbonization. And so what have we done? We've gone out and worked with and talked to the retail sector, specifically the co-op, so Land O'Lakes, CHS, Growmark. that's the connection with the farmer and working with them and one explaining this is what's coming this is what the the uplift is and then we've had uh project pilot projects with pilot or poet the ethanol company where we're supplying and this is where the it's called the corn value chain and we're really excited about this and so it's because we play in you know you have the we're the fertilizer supplier that goes to the retailer that goes to the farmer whose output goes to the the processor. But that corn value chain, and that processor could be a feed for cattle and poultry and pork, but the processor we're looking at now is the industrial processor. And so low carbon fertilizer in that corn value chain can lower the carb score for ethanol by about 10%. So as these ethanol plants decarbonize themselves, you've got a full decarbonized value chain that we think adds, Well, we believe it adds value because we're getting paid for that decarbonization. And then what the value of that in that corn value chain that the farmer will benefit, the retailer has consistent movement, and the processor as well. So you've seen our announcements with Pepsi on low-carbon initiative with UAN. And then we have contracts for low-carbon products into Europe to industrials as well as farm or fertilizer companies.

You remember Intel Inside? You're like CF Inside on the Pepsi bottle?

So everybody's going to buy that.

No, but it's good for you. And you guys have talked about the premium pricing. You'd hope to get the blue, I guess we call it the blue premium. I think you talked about 25 to 50 a ton on blue ammonia out of D-Ville. And then as you get to blue point in a few years, maybe more than that.

So where we are today is we are getting a premium. And it's on the lower side of that, that $20 to $30. dollars and we're very being very prescriptive to our customers and to the market of this is a new product and demand is going to build demand is going to build because of cbam anyway so as these penalties increase and we're able to produce and under that there's a value that's associated with that there's also uh the cpg companies and and their own scope scope emissions and what we're finding is a lot of them want to partner with us to lower those emissions themselves or those that's scope three. And so all of the above, but what we're investing for now is we're being paid for by the 45 system, and we see that market pricing being associated and increasing over time.

And Bluepoint, things are on pace now. You kept your CapEx trajectory on earnings under release last week. Anything going on there to talk about?

Any concerns about inflation risk? uh for me i don't in terms of the inflation risk we're out we've already partnered with when we know where we're going to be producing these modules we're going to be bringing them in so we're in the uh in terms of what we're doing with groundwork and pilings and building our the bridge that's going to go over the highway and so it's infrastructure work today we have a great team that's focused on that and uh so the inflation risk on in terms of the the modules i don't think that's a great risk to us.

So again, back to the U.S. government, which has had, you know, a little bit of a little chatty these days about fertilizer supply and building more capacity in the states. You're building a new plant. It wasn't designed really to be sold to farmers. It could be, right? I mean, in the end, if some of the low carbon opportunities weren't as attractive.

But, you know, I've already heard questions from people saying, you know, with all the windfall free cash flow you're going to get with what's going on in the war could you guys build more nitrogen capacity could you build a blue point two we're only in the early days of blue point one what do you think about that well i think we have demonstrated uh in terms of we're the one company that has added capacity over the last 15 years we spent five well we purchased tara in in 2010 so let's go back 16 years and then really revamped that system and invested hundreds of millions of dollars and bringing that capacity, increasing that capacity through higher throughputs. Then in 2012, we announced the building of Donaldsonville and Port Neal. So that was $5.2 billion for two world-scale plants, one in Louisiana, one in Iowa. Then we purchased Wagaman a few years, two years ago maybe, which was an ammonia plant run by Dyna Nobel, which was running about 800,000 tons a year. We took that to over 900,000. So when we have purchased, whether it's Tera or our own assets, we run them at 100 over nameplate. The new plants are running at 110% of capacity, of static capacity. So we're the company that has skilled. We have a great engineering team. We have, I think, a very focused staying within the things we're capable of doing and improving on. And we've demonstrated that. And that's our communication to our government, the U.S. government at least, is we are committed to growing and investing in our United States. I'd say North America because we have two plants in Canada. Our North American asset base, but that includes plants and distribution capabilities. We have 20-plus ammonia terminals in the United States as well as UAN terminals. We have our own barges that move products, and we have 5,000 rail cars. So when you integrate all that together, we are about serving the American or the North American market. And we could invest. We look at projects all the time. And I think you're right. We're throwing off a lot of free cash. We're the free cash company. And that will be used for CapEx, for buybacks, for dividends, and for new investments.

So I guess in the interim, I mean, as you're generating this extra free cash flow right now than you're expecting three months ago, So, I mean, I imagine it would be going to the buyback. Is that fair? Or would you be trying to build a bit of cash balance for some dry powder?

If you look at our history, we've done both, right? We've built cash in times when we were generating very large amounts of free cash. But if you look over, like last year, we bought back 10% of the outstanding shares. A year before that, we bought back 10% of the outstanding shares. And so we have a consistent track record of redeploying that capital either into our own network through accretive projects or through share repurchases.

I mean, it's a bit, now this year's a bit different. You got, you know, some more earnings, but you have a bigger CapEx profile because Bluepoint is starting, you know, with your partner, you're spending money on it. So does that change the calculus at all? Sort of both sides of the equation are moved up, you know, costs and inflow?

We like to maintain a high degree of financial flexibility. So you've seen our balance sheet has a fair amount of cash on it. That enables us to do a lot of things that are opportunistic, whether it's buying Wagman where we had cash on the balance sheet. We just wrote a check for that entire plant. Or to have the dry powder to execute the share repurchase program.

I think something we've learned also is we've been through the tough times of 2016 when EBITDA was low and debt was high. We now have a wonderful balance sheet. We're well-positioned, and things happen in this industry, and opportunities come, and it's better to have cash on hand or opportunities with that and a good balance sheet to execute.

That's a good part. I mean, I lived through the times when you guys were like, oh, CF's going bankrupt. I remember those months, right? That was just after the OCI deal kind of broke, and you had a bit of some interesting debt on the balance sheet. What was your sort of biggest takeaways from that, and what takeaways have you been from, like, the peak times, you know?

Cash matters. And having, you know, in terms of how Martin manages our treasury book and the people we work with, a good balance sheet is something always to work for. We're in a commodity business, and so the oscillations of the products that we make against the products our products make against the products that our products products make. And that's just the price of corn. If corn is $4, a farmer cannot afford it. If corn is $7, he's happy. He's going to go to AgCone and buy that new tractor. But it's the same thing as cattle. If your protein price is high, then that feed value to the beef, pork, or poultry is high. So that's another revenue source. And so in our industry, the oscillations of gas, the oscillations of price, the oscillations of the output can be punishing. And we learned that in 2016, and we don't want to relive that. So you're a nitrogen company, right?

That's what you do? Any ideas to one, again, to other commodities, go a little more downstream? I don't know. Any ideas?

Nitrogen is pretty awesome right now. So I'm pretty happy to be in nitrogen. We've looked at a lot of different things over the years. You talk about OCI. We We almost partnered with them, we almost partnered with Yara, we did purchase Terra. We used to be in phosphate. We sold the phosphate business to Mosaic in 2014 and I think that was a very elegant solution for CF. It was something that we had an asset, they had the land surrounding our land so our phosphate resources were limited. This is a good transaction for Mosaic and then we had an ammonia supply contract. We make the ammonia so we did an ammonia supply contract with them. I think that demonstrates that you know that they do what they do or different industries but we're very satisfied being in the nitrogen space.

And then are you I mean are you a North American nitrogen producer I know you've got some you've got some acid Trinidad or JV but I mean are you a North American nitrogen producer is that would you consider branching out I mean you have in the past like YAR and OCI some deals but would you branch out? So we have our UK asset that we produce ammonia nitrate there and we import ammonia we We have our Trinidadian asset that's a joint venture with Coke.

Those are, in the U.K., small, smallish, right? And we have the two plants in Canada. I say North America. So, again, a lot of things come our way. So we look at things and we talk about things. I'm not going to say, I would say never say never. But we do enjoy the benefits of being a North American producer are substantial, and we do like our asset base. what would it take for you to get conviction to look at another well to look at another like greenfield or is there a brown greenfield opportunity is there a brownfield you have sitting in your your portfolio that that would make some sense and what would you need to see to conviction to go down that road yeah i think we're always i want to be thoughtful that we're always looking at things to towards the future and def is a very good example of that diesel exhaust fluid it's urea liquor so urea liquor goes in to make urea which is a dry product urea liquor goes into make uam which is urea ammonium nitrate but it's substream now where we're the largest producer i think in the world but at least for sure in north america and that diesel exhaust fluid as class a trucks power units have been dosing from let's say starting in 2010 as those new engines came in and dosing rates went from two percent to four percent and increasing up, that has been a very good business for us, but a good example of identifying something early, building capacity to meet it, and we would look at other opportunities in the same way.

And are there any other, like, are there any other Wagamans out there, like plants that are available or could be available, you don't have to name them, but that you think you could maybe run a bit better on your radar?

I don't have any specific to announce or to talk about.

But like just things, I'm not asking a need to announce a transaction right now live at the BMO.

I think our skill set is running these plants very well. And our safety record, I do want to give a shout out to our team, our engineering and management and production teams. Our safety record is the best in the industry. And we focus on that. And so we believe safe operations lead to better operations. And our do it right culture is something that if we were to take on another asset, we would embed that with that performance and as well as the investments to take an asset to max capacity I'll start to wrap this up me what is kind of your base case how like it's going back to we're talking about me half an hour ago but what is sort of your base case and how and these just reviews but you know how the next six months are going to play out and how CS positioning for that to maximize it for CF so we're in let's say June 1st so the first half is over we've had a very good first half we've supplied the North American market we've kept our customers supplied they're happy they're ending up with a good performance we got Darren from the ARA and can speak for the retailers but we believe we've done a very good job of partnering with our retail partners now it shifts to the farmer and yields we're in an El Nino year so the risk on climate and a severe el nino with what that means for drought and and for south america as well we have to watch but this goes to i think with the lack of nutrients that are available in the world i think you're going to see under performance in other areas of the world that's going to use move to lack of yield price increases for the those carbohydrate products corn wheat cotton soybeans or corn, wheat, cotton, rice, sugar. So I would think that there'll be higher values to the farmer at the tail end of the year. And I think North America is very, very well positioned for that eventuality with serving the world with the food that is needed. Gentlemen, thank you very much.