What is Foolsaurus?

It's a glossary of investing terms edited and maintained by our analysts, writers and YOU, our Foolish community. Get Started Now!


Terra Nitrogen

Terra Nitrogen (NYSE): TNH) is a master limited partnership with one nitrogen manufacturing facility in Verdigris, Oklahoma, and terminal operations in Blair, Nebraska and Pekin, Illinois. Terra Nitrogen is 75% owned by Terra Industries (ticker TRA). Terra Nitrogen was founded in 1991 and is headquartered in Sioux City, IA.

Company Description

Nitrogen is an essential plant nutrient necessary in most fertilizer products. Anhydrous ammonia made from natural gas is converted to nitric acid, ammonium nitrate, and urea for formulation into fertilizer products. Some of these materials are used by other industries but most is used in fertilizer formulations.

TNHs manufacturing facility is located in Verdigris, Oklahoma. It also operates terminals in Blair, Nebraska and Pekin, Illinois. TNCLP has the capacity to produce annually 1.1 million tons of ammonia and 1.9 million tons (32% nitrogen basis) of TerraSol®, brand of urea ammonium nitrate solutions (UAN).

Terra Industries (TRA) owns a subsidiary which is the general partner of Terra Nitrogen (TNH). TRA also owns 75% of the TNH partnership units.

The TNH units are callable by the general partner on 20 to 30 days notice when non-affiliates of the general partner own less than 25% of the outstanding units. The call price is the higher of the average closing unit price in the last 20 trading days or the highest unit price paid in the previous 90 days.

Website: http://www.terranitrogen.com/ (takes you to the same website used by Terra Industries)

Related Companies

Recent Mentions on Fool.com

Advertisement