By Todd Johnson:

Terra Nitrogen Company, L.P. (TNH) offers investors an 8.1% annual distribution. The limited partnership has provided investors an impressive 17.7% total annualized rate of return over the past 15 years. This article will focus upon risks and rewards of investing in Terra Nitrogen at today's price of $197.31.

Overview:

Terra Nitrogen produces nitrogen based fertilizer ingredients, specifically urea ammonium nitrate (UAN) and ammonia, at its manufacturing plant in Verdigris, Oklahoma. Approximately 75% of Terra Nitrogen's shares

are held by Terra Industries, which is a wholly owned subsidiary of Illinois based CF Industries (CF). CFIndustries acquired Terra Industries in a 2010 acquisition. As a result, Terra Industries is now a part of CF Industries' vertically integrated fertilizer supply chain. CF Industries is the world's second largest producer of nitrogen based fertilizers.

Fertilizer Sector:

Per a January 31st update, fertilizer prices are firming up. Ammonia and urea ammonium nitrate solution are showing


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