CF Advances Decarbonization Through Donaldsonville CCS Start-Up

CF Industries Holdings, Inc. (CF) announced the start-up of the carbon dioxide (CO₂) dehydration and compression facility at its Donaldsonville Complex in Louisiana, a major step toward decarbonization. Its carbon capture and sequestration (“CCS”) partner for this project, ExxonMobil, is storing CO₂ from the Donaldsonville Complex on an interim basis through enhanced oil recovery.

The facility makes way for the transportation and permanent geological sequestration of up to 2 million metric tons of CO₂ annually that would otherwise have been emitted into the atmosphere.

Subject to requisite permits, ExxonMobil plans to set up a permanent storage facility, beginning with its Rose CCS project. This project is one of ExxonMobil’s dedicated permanent storage sites along the Gulf Coast to expand its integrated CCS network. The Rose project already received the U.S. Environmental Protection Agency Class VI permit draft in July and expects final permits to arrive later this year.

CF’s historic milestone in its decarbonization journey is marked by the start-up of the Donaldsonville facility and the start of sequestration by ExxonMobil. The company is expected to produce approximately 1.9 million tons of low-carbon ammonia on an annual basis while enabling it to qualify for tax credits under Section 45Q of the Internal Revenue Code.

CF stock has climbed 36.2% over the past year compared with the industry’s 28.7% rise.

CF’s Zacks Rank & Key Picks

CF currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Royal Gold, Inc. RGLD, Coeur Mining, Inc. CDE and Carpenter Technology Corporation CRS. While RGLD and CDE currently sport a Zacks Rank #1 (Strong Buy) each, CRS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RGLD’s current-year earnings is pegged at $7.47 per share, indicating a 42% year-over-year increase.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 9%. RGLD’s shares have gained 15.5% in the past year.

The Zacks Consensus Estimate for CDE’s current-year earnings is pegged at 69 cents per share, implying a 283.3% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with an average surprise of 136.2%.

The Zacks Consensus Estimate for CRS’ fiscal 2025 earnings is pegged at $7.28 per share, indicating a rise of 53.6% from year-ago levels. The company’s earnings beat the consensus estimate in each of the trailing four quarters. Its shares have gained 128.8% in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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