Morgan Stanley Chemicals and Agriculture Hunt Ramsbottom November 11, 2014 Conference President & CEO
Diversified Business Rentech, Inc. (NASDAQ: RTK) Wood Fibre Fertilizer Processing General Partner & Wood Pellets Wood Chipping 60% Owner (Fulghum Fibres) Rentech Rentech Nitrogen Canada Partners, L.P. (NYSE:…
Global Expansion PELLET SALES TO U.K. NORTH AMERICAN FERTILIZER CHIP & PELLET SALES WOOD CHIP SALES TO EUROPE WOOD CHIP SALES TO ASIA FERTILIZER SALES TO FERTILIZER BRAZIL SALES TO NEW ZEALAND FERTILIZER WOOD CHIP…
We Transform Natural Resources into Higher Value Products Wood Chipping Wood Pellets (Pulp Industries) (Heating & Electricity) Feedstocks: Fibre and Natural Gas Industrial Products Fertilizers (Industrial/Food)…
We Serve Diversified Markets Pulp Industries Heating & Electricity (Wood Chipping) (Wood Pellets) Rentechs products support many Alfalfa Canola Corn industries Cotton Potato Soybean Wheat Industrial/Food Agriculture…
Rentech is a Leader Wood Fibre Largest pellet producer in Eastern Canada by 2015 Over 500,000 tonnes of capacity under contract Largest pellet producer for the U.S. heating market 11 million bags produced annually (40lb bags)…
Wood Fibre Business
Fulghum Fibres: Stable Cash Flows 26 Facilities in North America Fulghum Fibres is an industry leader - Commands 70% of U.S. contract chipping market1 ALL CHIP PRODUCTION IN THE USA IS CONSUMED DOMESTICALLY - Processes 15M tons of…
Blue-Chip Customers Under Long-Term Contracts Fulghum Fibres has long-term contracts with most of its customers Exposure to any one customer does not exceed 16% of total volume Customer retention and contract renewal have…
Canadian Pellet Business: Stable Cash Flows 10-year take-or-pay contracts for 445,000 tonnes of pellets annually Stable Cash Flow Sustainable Crown Fibre Supply - Contracts indexed for inflation, fuel and fibre supply Long-Term…
Canadian Pellet Projects Wawa, ON Atikokan, ON Capacity 450K 100K (metric tonnes/yr.) Site Converted OSB mill Converted fiber board mill CN Rail Logistics None required Port of Quebec Ontario Power Drax 45K tonnes Offtake…
U.S. Pellet Heating Business: Stable Margins NEWP is the leader in a well- Relative Heating Costs in U.S. Northeast established and growing market - Commands 15% market share for U.S. Northeast heating pellets - 7% annual growth…
Brand Name Customers NEWP has differentiated itself by becoming the most reliable supplier to: Big-box retailers, such as Home Depot, Lowes, Tractor Supply and Wal-Mart Specialty retailers including, lawn & garden centers, heating…
Fibre: Solid Platform with Growth Global wood chip and pellet sales are 15B annually; expected to grow to 25B by 2020 Plan to file for IPO of fibre business in 2015 as MLP Plan to Grow the file for Portfolio IPO Established…
Rentech Nitrogen
Rentech Nitrogen Partners, L.P. (NYSE: RNF) East Dubuque, IL Facility Pasadena, TX Facility Publicly traded partnership1 with variable cash distributions Two nitrogen fertilizer production facilities with location advantages…
Producing Important Nutrients Our main products provide two of the most important nutrients to crops Nutrients Products Ammonia UAN Nitrogen: Ammonium Sulfate Most important nutrient in determining crop yields Ammonium…
East Dubuque Facility Advantaged location in the heart of the U.S. corn belt Premium pricing for nitrogen products Natural gas feedstock Growing nitrogen demand
Best Located Nitrogen Facility Products are sold within 200 miles of the facility IL and IA are the two largest corn producing and nitrogen fertilizer consuming states Regional consumption exceeds production Ammonia: 3.7x, UAN:…
Were in Market Prices in the Mid-Corn Belt are higher than other regions Freight premium of 80-120/t for ammonia and 35-60/t for UAN from Gulf Coast Logistical advantage in serving customers during short, weather-dependent…
Attractive Gross Margins Significant cost advantage in North America over European nitrogen fertilizer producers - Gas prices are higher in Europe - Additional transportation costs for foreign producers to service the North American…
Rising Nitrogen Demand Growing fertilizer consumption Nitrogen represents 58% of global fertilizer consumption1 Global Nitrogen Consumption 120 7,500 1995 - 2012 Nitrogen CAGR: 2.4% 110 7,000 Population CAGR: 1.2% Millions…
Pasadena Facility
Pasadena Facility Largest producer of synthetic ammonium sulfate in North America Premium ammonium sulfate Advantaged location on Houston Ship Channel
Premium Product Largest domestic producer of premium synthetic ammonium sulfate in an industry dominated by lower quality product Domestic and international sales Gaining market share from lower grade product 80-100/t premium…
Favorable Location 2,700 linear feet of Houston Ship Channel frontage 2 deep-water docks, providing access for international deliveries Rail service by BNSF and Union Pacific Areas of our marketing focus Easy access to several…
Pasadena Adjustments To Market Conditions Actual and expected margins have compressed Implemented restructured operating plan Reduced operating staff and expenses Reduced AS production; focus on premium markets CoGen power sales…
Market Update
Expecting Good Nitrogen Demand in 2015 USDA projecting corn crop of 14.4 billion bushels Expecting planted corn acres ranging from 86 89.5 million acres for 2015 U.S. farm income falling, but still 25 billion higher than the 10-year…
Summary
We are Well Positioned Diversified businesses, geographies and customers in growing stalwart industries Market leaders Expertise in each business segment Execution: operational excellence and value creation MLP-qualifying…
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