10-Q

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TABLE OF CONTENTS

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended March 31, 2014
OR
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                                    to

Commission file number 033-43007

TERRA NITROGEN COMPANY, L.P.
(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization)	73-1389684 (I.R.S. Employer Identification No.)
4 Parkway North, Suite 400 Deerfield, Illinois (Address of principal executive office)	60015 (Zip Code)

Registrant's telephone number, including area code: (847) 405-2400

        Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ý Yes    o No

        Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files. ý Yes    o No

        Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ý Accelerated filer o Non-accelerated filer o
(Do not check if a
smaller reporting company) Smaller reporting company o

        Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes    ý No

        At the close of business on May 7, 2014 there were 18,501,576 common units outstanding.

TERRA NITROGEN COMPANY, L.P.

TABLE OF CONTENTS

PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)
	Consolidated Balance Sheets	1
	Consolidated Statements of Operations	2
	Consolidated Statements of Partners' Capital	3
	Consolidated Statements of Cash Flows	4
	Notes to the Consolidated Financial Statements	5
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	21
Item 4.	Controls and Procedures	21
PART II—OTHER INFORMATION
Item 6.	Exhibits	23

TERRA NITROGEN COMPANY, L.P.

PART I. FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS

	(unaudited) March 31, 2014		December 31, 2013
	(in millions, except for units)
ASSETS
Current assets:
Cash and cash equivalents	$	113.9	$	86.9
Due from affiliates of the General Partner		36.0		29.0
Accounts receivable		0.6		1.0
Inventories, net		5.4		5.9
Prepaid expenses and other current assets		4.9		7.8
Total current assets		160.8		130.6
Property, plant and equipment, net		224.7		214.1
Other assets		5.5		5.1
Total assets	$	391.0	$	349.8
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable and accrued expenses	$	33.3	$	27.9
Due to affiliates of the General Partner		5.6		3.7
Other current liabilities		—		8.0
Total current liabilities		38.9		39.6
Noncurrent liabilities		1.3		1.2
Partners' capital:
Limited partners' interests, 18,501,576 Common Units authorized, issued and outstanding		286.1		264.5
Limited partners' interests, 184,072 Class B Common Units authorized, issued and outstanding		1.9		1.5
General partner's interest		62.8		43.0
Total partners' capital		350.8		309.0
Total liabilities and partners' capital	$	391.0	$	349.8

See accompanying Notes to the Consolidated Financial Statements (Unaudited).

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TERRA NITROGEN COMPANY, L.P.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

	Three months ended March 31,
	2014		2013
	(in millions, except per unit amounts)
Net sales:
Product sales to an affiliate of the General Partner	$	177.3	$	223.7
Other income from an affiliate of the General Partner		0.1		0.1
Other income		0.3		0.3
Total		177.7		224.1
Cost of goods sold:
Materials, supplies and services		64.6		46.6
Services provided by the affiliates of the General Partner		5.6		5.6
Gross margin		107.5		171.9
Selling, general and administrative services provided by the affiliates of the General Partner		3.9		3.8
Other general and administrative expenses		0.7		1.3
Earnings from operations		102.9		166.8
Net earnings	$	102.9	$	166.8
Allocation of net earnings:
General Partner	$	41.5	$	73.0
Class B Common Units		1.0		1.6
Common Units		60.4		92.2
Net earnings	$	102.9	$	166.8
Net earnings per common unit	$	3.26	$	4.98

See accompanying Notes to the Consolidated Financial Statements (Unaudited).

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TERRA NITROGEN COMPANY, L.P.

CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL

(unaudited)

	Common Units			Class B Common Units			General Partner's Interest			Total Partners' Capital
	(in millions)
Partners' capital at December 31, 2012	$	238.3		$	1.2		$	32.3		$	271.8
Net earnings		92.2			1.6			73.0			166.8
Distributions		(67.3	)		(1.2	)		(49.5	)		(118.0	)
Partners' capital at March 31, 2013	$	263.2		$	1.6		$	55.8		$	320.6
Partners' capital at December 31, 2013	$	264.5		$	1.5		$	43.0		$	309.0
Net earnings		60.4			1.0			41.5			102.9
Distributions		(38.8	)		(0.6	)		(21.7	)		(61.1	)
Partners' capital at March 31, 2014	$	286.1		$	1.9		$	62.8		$	350.8

See accompanying Notes to the Consolidated Financial Statements (Unaudited).

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TERRA NITROGEN COMPANY, L.P.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	Three months ended March 31,
	2014			2013
	(in millions)
Operating Activities
Net earnings	$	102.9		$	166.8
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		7.6			4.1
Unrealized loss (gain) on derivatives		2.9			(3.9	)
Changes in operating assets and liabilities:
Accounts receivable		0.4			(0.1	)
Inventories, net		0.5			0.7
Accounts payable and accrued expenses		3.7			(2.6	)
Due to/from affiliates of the General Partner		(5.1	)		3.8
Other assets and liabilities		(0.4	)		1.3
Net cash provided by operating activities		112.5			170.1
Investing Activities
Additions to property, plant and equipment, net		(16.4	)		(17.6	)
Changes in demand deposits with affiliates of the General Partner		—			5.4
Net cash used in investing activities		(16.4	)		(12.2	)
Financing Activities
Partnership distributions paid		(61.1	)		(16.7	)
Other		(8.0	)		—
Net cash used in financing activities		(69.1	)		(16.7	)
Increase in cash and cash equivalents		27.0			141.2
Cash and cash equivalents at beginning of period		86.9			149.4
Cash and cash equivalents at end of period	$	113.9		$	290.6

See accompanying Notes to the Consolidated Financial Statements (Unaudited).

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TERRA NITROGEN COMPANY, L.P.

Notes to the Consolidated Financial Statements (Unaudited)

1. Background and Basis of Presentation

        Terra Nitrogen Company, L.P. (TNCLP, we, our or us) is a Delaware limited partnership that produces nitrogen fertilizer products. Our principal products are anhydrous ammonia (ammonia) and urea ammonium nitrate solutions (UAN), which we manufacture at our facility in Verdigris, Oklahoma.

        We conduct our operations through an operating partnership, Terra Nitrogen, Limited Partnership (TNLP or the Operating Partnership, and collectively with TNCLP, the Partnership). Terra Nitrogen GP Inc. (TNGP or the General Partner), a Delaware corporation, is the general partner of both TNCLP and TNLP and owns a consolidated 0.05% general partner interest in the Partnership. The General Partner is an indirect, wholly-owned subsidiary of CF Industries Holdings, Inc. (CF Industries), a Delaware corporation. Ownership of TNCLP is comprised of the General Partner interests and the Limited Partner interests. Limited Partner interests consist of common units, which are listed for trading on the New York Stock Exchange under the symbol "TNH" and Class B common units. As of March 31, 2014, we had 18,501,576 common units and 184,072 Class B common units issued and outstanding. CF Industries through its subsidiaries owned 13,889,014 common units (representing approximately 75% of the total outstanding common units) and all of the Class B common units as of March 31, 2014.

        The accompanying unaudited interim consolidated financial statements have been prepared on the same basis as our audited consolidated financial statements for the year ended December 31, 2013, in accordance with accounting principles generally accepted in the United States for interim financial reporting. In the opinion of management, these statements reflect all adjustments, consisting only of normal and recurring adjustments that are necessary for the fair representation of the information for the periods presented. The unaudited interim consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. Operating results for any period presented apply to that period only and are not necessarily indicative of results for any future period.

        The preparation of the unaudited interim financial statements requires management to make use of estimates and assumptions that affect the reported amount of assets and liabilities, revenue and expenses and certain financial statement disclosures. Actual results could differ from these estimates. Significant estimates in these consolidated financial statements include net realizable value of inventories, environmental remediation liabilities, environmental and litigation contingencies, useful lives of property, plant and equipment, and the evaluation of impairments of property, plant and equipment.

        Throughout this document, the terms "affiliate of the General Partner" and "affiliates of the General Partner" refer to consolidated subsidiaries of CF Industries, including TNGP.

2. Summary of Significant Accounting Policies

        For a complete discussion of the Partnership's significant accounting policies, refer to the notes to the audited consolidated financial statements included in our 2013 Annual Report on Form 10-K, filed with the SEC on February 27, 2014.

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TERRA NITROGEN COMPANY, L.P.

3. Agreement of Limited Partnership

        We make quarterly distributions to holders of our General Partner interest and Limited Partner interests based on Available Cash for the quarter as defined in our agreement of limited partnership. Available Cash is defined generally as all cash receipts less all cash disbursements, less certain reserves (including reserves for future operating and capital needs) established as the General Partner determines in its reasonable discretion to be necessary or appropriate. Changes in working capital affect Available Cash as changes in the amount of cash invested in working capital items (such as increases in inventory and decreases in accounts payable) reduce Available Cash, while declines in the amount of cash invested in working capital items increase Available Cash. During the three months ended March 31, 2014, we paid partnership distributions of $61.1 million. During the three months ended March 31, 2013, we declared partnership distributions of $118.0 million, of which $16.7 million was paid as of March 31, 2013. The remaining $101.3 million was paid during the second quarter of 2013.

        We receive 99% of the Available Cash from the Operating Partnership and 1% is distributed to its General Partner. Cash distributions from the Operating Partnership generally represent the Operating Partnership's Available Cash from operations. Our cash distributions are made 99.975% to common and Class B common unitholders and 0.025% to our General Partner except when cumulative distributions of Available Cash exceed specified target levels above the Minimum Quarterly Distributions (MQD) of $0.605 per unit. Under such circumstances, our General Partner is entitled to receive Incentive Distribution Rights.

        On May 7, 2014, we announced a $3.01 cash distribution per common limited partnership unit, payable on May 30, 2014 to holders of record as of May 19, 2014. In the first quarter, we exceeded the cumulative MQD amounts and will distribute Available Cash as summarized in the following table:

	Income and Distribution Allocation
	Target Limit		Target Increment		Common Units			Class B Common Units			General Partner			Total
Minimum Quarterly Distributions	$	0.605	$	0.605		98.990	%		0.985	%		0.025	%		100.00	%
First Target		0.715		0.110		98.990	%		0.985	%		0.025	%		100.00	%
Second Target		0.825		0.110		85.859	%		0.985	%		13.156	%		100.00	%
Third Target		1.045		0.220		75.758	%		0.985	%		23.257	%		100.00	%
Final Target and Beyond		>1.045		—		50.505	%		0.985	%		48.510	%		100.00	%

        The General Partner is required to remit the majority of cash distributions it receives from the Partnership, in excess of its 1% Partnership equity interest, to an affiliated company.

        At March 31, 2014, the General Partner and its affiliates owned 75.3% of our outstanding units. When not more than 25% of our issued and outstanding units are held by non-affiliates of the General Partner, we, at the General Partner's sole discretion, may call, or assign to the General Partner or its affiliates, our right to acquire all such outstanding units held by non- affiliated persons. If the General Partner elects to acquire all outstanding units, we are required to give at least 30 but not more than 60 days notice of our decision to purchase the outstanding units. The purchase price per unit will be the greater of (1) the average of the previous 20 trading days' closing prices as of the date five days before the purchase is announced or (2) the highest price paid by the General Partner or any of its affiliates for any unit within the 90 days preceding the date the purchase is announced.

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TERRA NITROGEN COMPANY, L.P.

4. Net Earnings per Common Unit

        Net earnings per common unit is based on the weighted-average number of common units outstanding during the period. The following table provides a calculation for net earnings per common unit for the three months ended March 31, 2014 and 2013:

	Three months ended March 31,
	2014			2013
	(in millions, except per unit amounts)
Basic earnings per common unit:
Net earnings	$	102.9		$	166.8
Net earnings allocable to General Partner		(41.5	)		(73.0	)
Net earnings allocable to Class B Common Units		(1.0	)		(1.6	)
Net earnings allocable to common units	$	60.4		$	92.2
Weighted average units outstanding		18.5			18.5
Net earnings per common unit	$	3.26		$	4.98

        There were no dilutive TNCLP units outstanding for the three months ended March 31, 2014 and 2013.

5. Inventories

        Inventories consisted of the following:

	March 31, 2014		December 31, 2013
	(in millions)
Materials and supplies	$	3.0	$	2.6
Finished goods		2.4		3.3
Total	$	5.4	$	5.9

6. Derivative Financial Instruments

        Derivative financial instruments are executed on our behalf by an affiliate of the General Partner to manage the volatility in our natural gas prices. We report derivatives on our consolidated balance sheets at fair value. Changes in fair value are recognized in cost of sales in the period of change. Cash flows related to natural gas derivatives are reported in operating activities.

        The derivatives we use are primarily natural gas fixed price swaps and call options traded in the over-the-counter (OTC) markets. The derivative contract prices are based on prices at the Henry Hub in Louisiana, the most common and financially liquid location of reference for financial derivatives related to natural gas. However, we purchase natural gas for our manufacturing facility from suppliers whose prices are based primarily on the OneOK index rather than Henry Hub. This creates a location basis differential between the derivative contract price and the physical price of natural gas. Accordingly, the prices underlying the financial derivatives we use may not exactly match the prices of physical gas we consume. The contracts are traded in months forward and settlement dates are scheduled to coincide with anticipated gas purchases during those future periods.

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TERRA NITROGEN COMPANY, L.P.

        The gross fair values of derivatives on our balance sheet are shown below. All balance sheet amounts from derivatives arise from natural gas derivatives that are not designated as hedging instruments. For additional information on derivative fair values, see Note 7—Fair Value Measurements.

	March 31, 2014		December 31, 2013
	(in millions)
Unrealized gains in other current assets	$	4.9	$	7.8
Unrealized losses in other current liabilities		—		—
Net unrealized derivative gains/(losses)	$	4.9	$	7.8

        The effect of derivatives in our consolidated statements of operations is shown below. All amounts arise from natural gas derivatives that are not designated as hedging instruments and are recorded in cost of goods sold.

	Three months ended March 31,
	2014			2013
	(in millions)
Unrealized mark-to-market (losses) gains	$	(4.0	)	$	3.7
Realized gains (losses)		9.9			(1.6	)
Net derivative gains/(losses)	$	5.9		$	2.1

        As of March 31, 2014 and December 31, 2013, we had open derivative contracts for 9.4 million MMBtus and 13.2 million MMBtus, respectively, of natural gas. For the three months ended March 31, 2014, we used derivatives to cover approximately 74% of our natural gas consumption.

        The counterparties to our derivatives are large financial institutions and large energy companies. The derivatives are executed with several counterparties, generally under International Swaps and Derivatives Association (ISDA) agreements. The ISDA agreements are master netting arrangements commonly used for OTC derivatives that mitigate exposure to counterparty credit risk, in part, by creating contractual rights of netting and setoff, the specifics of which vary from agreement to agreement. These rights are described further below:

•

Settlement netting generally allows the parties to net, into a single net payable or receivable, ordinary settlement obligations arising under the ISDA agreement on the same day, in the same currency, for the same types of derivative instruments, and through the same pairing of offices.

•

Close-out netting rights are provided in the event of a default or other termination event (as defined in the ISDA agreements), including bankruptcy. Depending on the cause of early termination, the non-defaulting party may elect to accelerate and terminate all or some transactions outstanding under the ISDA agreement. The values of all terminated transactions and certain other payments under the ISDA agreement are netted, resulting in a single net close-out amount payable to or by the non-defaulting party.

•

Setoff rights are provided by certain of the ISDA agreements and generally allow a non-defaulting party to elect to setoff, against the final net close-out payment, other matured and contingent amounts payable between the parties under the ISDA agreement or otherwise. Typically, these setoff rights arise upon the early termination of all transactions outstanding under an ISDA agreement following a default or specified termination event.

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TERRA NITROGEN COMPANY, L.P.

        Most of the ISDA agreements contain credit risk related contingent features with sliding-scale credit support thresholds that are dependent upon credit ratings assigned to certain debt of the General Partner affiliate by certain credit rating agencies. Downgrades in the credit ratings would cause the applicable threshold levels to decrease and improvements in those ratings could cause the threshold levels to increase. If our net liability positions exceed the threshold amounts, the counterparties could require cash collateral, some other form of credit support or daily cash settlement of unrealized losses. As of March 31, 2014 and December 31, 2013, the aggregate fair values of the derivative instruments with credit-risk-related contingent features in a net liability position were $0.1 million and zero, respectively, which also approximates the fair value of the maximum amount of additional collateral that would need to be posted or assets needed to settle the obligations if the credit-risk-related contingent features were triggered at the reporting dates. At both March 31, 2014 and December 31, 2013, we had no cash collateral on deposit for derivative contracts. The credit support documents executed in connection with ISDA agreements generally provide the right to setoff collateral against amounts owing under the ISDA agreements upon the occurrence of a default or a specified termination event.

        The following table presents amounts relevant to offsetting of our derivative assets and liabilities as of March 31, 2014 and December 31, 2013.

			Gross amounts not offset in consolidated balance sheet
	Gross and Net amounts presented in consolidated balance sheet(1)
			Financial instruments		Cash collateral received (pledged)		Net amount
March 31, 2014
Total derivative assets	$	4.9	$	—	$	—	$	4.9
Total derivative liabilities		—		—		—		—
Net assets (liabilities)	$	4.9	$	—	$	—	$	4.9
December 31, 2013
Total derivative assets	$	7.8	$	—	$	—	$	7.8
Total derivative liabilities		—		—		—		—
Net assets (liabilities)	$	7.8	$	—	$	—	$	7.8

⁽¹⁾

We report the fair values of our derivative assets and liabilities on a gross basis on our consolidated balance sheet. As a result, amounts recognized and net amounts presented are the same.

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TERRA NITROGEN COMPANY, L.P.

7. Fair Value Measurements

Assets and Liabilities Measured at Fair Value on a Recurring Basis

        The following table presents assets and liabilities included in our Consolidated Balance Sheets that are recognized at fair value on a recurring basis, and indicates the fair value hierarchy utilized to determine such fair value as of March 31, 2014 and December 31, 2013.

	Balances as of March 31, 2014
	Total		Quoted Market Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in millions)
Cash and cash equivalents	$	113.9	$	113.9	$	—	$	—
Unrealized gains on natural gas derivatives		4.9		—		4.9		—
Total assets at fair value	$	118.8	$	113.9	$	4.9	$	—

	Balances as of December 31, 2013
	Total		Quoted Market Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in millions)
Cash and cash equivalents	$	86.9	$	86.9	$	—	$	—
Unrealized gains on natural gas derivatives		7.8		—		7.8		—
Total assets at fair value	$	94.7	$	86.9	$	7.8	$	—

        Following is a summary of the valuation methodologies for assets and liabilities recorded in our Consolidated Balance Sheets at fair value on a recurring basis:

Cash and Cash Equivalents

        As of March 31, 2014 and December 31, 2013, our cash and cash equivalents consisted primarily of U.S. Treasury Bills with original maturities of three months or less and money market mutual funds that invest in U.S. government obligations.

Natural Gas Derivatives

        The derivative instruments that we use are primarily natural gas fixed price swaps and call options traded in the OTC markets with either large energy companies or large financial institutions. The derivatives are traded in months forward and settlements are scheduled to coincide with anticipated gas purchases during those future periods. These contracts settle using NYMEX futures prices and accordingly, to determine the fair value of these instruments, we use quoted market prices from NYMEX and standard pricing models with inputs derived from or corroborated by observable market data such as forward curves supplied by an industry recognized unrelated third party. See Note 6—Derivative Financial Instruments for additional information.

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TERRA NITROGEN COMPANY, L.P.

8. Property, Plant and Equipment, net

        Property, plant and equipment, net consisted of the following:

	March 31, 2014		December 31, 2013
	(in millions)
Land	$	1.6	$	1.6
Building and improvements		8.1		8.1
Plant and equipment		377.8		375.6
Construction in progress		85.6		71.5
		473.1		456.8
Less: Accumulated depreciation and amortization		248.4		242.7
	$	224.7	$	214.1

        Plant turnarounds—Scheduled inspections, replacements and overhauls of plant machinery and equipment at our continuous process manufacturing facility are referred to as plant turnarounds. The expenditures related to turnarounds are capitalized when incurred. The following is a summary of plant turnaround activity for the three months ended March 31, 2014 and 2013.

	Three months ended March 31,
	2014			2013
	(in millions)
Net capitalized turnaround costs:
Beginning balance	$	22.7		$	2.6
Additions		0.3			—
Depreciation		(1.6	)		(1.0	)
Ending balance	$	21.4		$	1.6

        Scheduled replacements and overhauls of plant and equipment include the dismantling, repair or replacement and installation of various components including piping, valves, motors, turbines, pumps, compressors, heat exchangers and the replacement of catalyst when a full plant shutdown occurs. Scheduled inspections are also conducted during full plant shutdowns, including required safety inspections which entail the disassembly of various components such as steam boilers, pressure vessels and other equipment requiring safety certifications. Internal employee costs and overhead are not considered turnaround costs and are not capitalized.

9. Related Party Transactions

        TNCLP and TNGP have no employees. We have entered into several agreements with a subsidiary of CF Industries relating to the operation of our business and the sale of the fertilizer products produced at our Verdigris facility. We believe that each of these agreements is on terms that are fair and reasonable to us.

General Administrative Services and Product Offtake Agreement

        Pursuant to the Amendment to the General and Administrative Services and Product Offtake Agreement (the Services and Offtake Agreement), the Partnership sells all of its fertilizer products to an affiliate of the General Partner at prices based on market prices for the Partnership's fertilizer

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products as defined in the Services and Offtake Agreement. Title and risk of loss transfer to an affiliate of the General Partner as the product is shipped from the plant gate. The Services and Offtake Agreement is effective for annual terms starting as of January 1st and will be extended automatically for successive one-year terms unless terminated by one of the parties prior to renewal.

Directly Incurred Charges

        Since we have no employees, we rely on employees from an affiliate of the General Partner to operate our Verdigris facility. As a result, the payroll, payroll-related expenses and benefits, such as health insurance and pension, incurred by an affiliate of the General Partner, are directly charged to us. Payroll, payroll-related expenses and other employee related benefits directly charged to us were $5.6 million for each of the three months ended March 31, 2014 and 2013, respectively. We report these expenses as services provided by the General Partner and affiliates of the General Partner in cost of goods sold.

Allocated Charges

        CF Industries, together with its affiliates, also provides certain services to us under the Services and Offtake Agreement. These services include production planning, manufacturing management, logistics, accounting, legal, risk management, investor relations and other general and administrative functions. Allocated expenses charged to us for the three months ended March 31, 2014 and 2013 were $3.9 million and $3.8 million, respectively. We report these expenses as selling, general and administrative services provided by the affiliates of the General Partner.

Demand Deposits with and Amounts Due to/from Affiliates of the General Partner

        We receive cash and make expenditures directly from our cash accounts. Because we sell our products to and receive payroll and other related services from affiliates of the General Partner, the affiliates of the General Partner continue to be both a debtor and creditor to us. At March 31, 2014 and December 31, 2013, we had a net balance due from affiliates of the General Partner of $30.4 million and $25.3 million, respectively.

Spare Parts Sharing Agreement

        Affiliates of CF Industries own and operate nitrogen fertilizer complexes that utilize some equipment that is similar to equipment at our Verdigris Nitrogen Complex. Each of the various manufacturing complexes maintains spare parts for use in their facilities. In the event that an unplanned need arises and to help prevent manufacturing downtime, we have entered into a spare parts sharing agreement that permits spare parts to be shared among the manufacturing complexes from time to time. Parts that are borrowed from another complex under the agreement are either refurbished and returned to the lender or replaced.

Leases

        We entered into an amended and restated lease with an affiliate of the General Partner under which the ammonia assets at our Blair terminal are leased by the affiliate. The lease is effective for a five-year term starting on January 1, 2013, and an affiliate of the General Partner has three options to renew for additional five-year terms. The quarterly lease payment is $100,000, subject to an annual inflation adjustment, and additional rent will be paid equal to all costs, expenses, and obligations incurred by the affiliate of the General Partner related to the use, occupancy and operation of the facilities.

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TERRA NITROGEN COMPANY, L.P.

        We also have leased certain of our rail cars to an affiliate of the General Partner for quarterly market-based rental payments of $3,600 per car. This lease also was effective initially for a one-year term and is extended automatically for successive one-year terms unless terminated by either party thereto prior to renewal.

        We received rental income of $0.1 million for each of the three month periods ended March 31, 2014 and 2013.

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TERRA NITROGEN COMPANY, L.P.

ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

        You should read the following discussion and analysis in conjunction with Terra Nitrogen Company, L.P.'s (TNCLP, we, our or us) annual consolidated financial statements and related notes, which are included in our 2013 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 27, 2014, as well as our Unaudited Consolidated Financial Statements and the related Notes thereto contained in Part I, Item 1 of this report.

        The section entitled "Risk Factors" contained in Part I, Item 1A of our Annual Report on Form 10-K filed with the SEC on February 27, 2014, and similar discussions in our other SEC filings, describe some of the important risk factors that may affect our business, financial condition, results of operations and/or liquidity. You should read and consider carefully those risks, in addition to the other information in this report and in our other filings with the SEC.

        We conduct our operations through an operating partnership, Terra Nitrogen, Limited Partnership (TNLP or the Operating Partnership, and collectively with TNCLP, the Partnership). Terra Nitrogen GP Inc. (TNGP or the General Partner), a Delaware corporation, is the general partner of both TNCLP and TNLP and owns a consolidated 0.05% general partner interest in the Partnership. The General Partner is an indirect, wholly-owned subsidiary of CF Industries Holdings, Inc. (CF Industries), a Delaware corporation.

        CF Industries, through its subsidiaries, is a global leader in nitrogen fertilizer manufacturing and distribution, serving both agricultural and industrial customers. CF Industries operates world-class nitrogen fertilizer manufacturing complexes in the central United States and Canada and distributes fertilizer products through a system of terminals, warehouses, and associated transportation equipment located primarily in the Midwestern United States.

        Throughout this document, the terms "affiliate of the General Partner" and "affiliates of the General Partner" refer to consolidated subsidiaries of CF Industries, including TNGP.

Dependence on CF Industries

        We are dependent on CF Industries for our success in a number of respects. An affiliate of CF Industries is obligated to take all of the production from our Verdigris manufacturing facility and affiliates of CF Industries provide certain services to us, including production planning, manufacturing management, logistics, accounting, legal, risk management, investor relations and other general and administrative services. For additional information concerning CF Industries, refer to CF Industries' filings with the SEC on Form 10-K, Form 10-Q and current reports on Form 8-K, and for further information regarding transactions with CF Industries, please refer to Notes to the Unaudited Consolidated Financial Statements, Note 9—Related Party Transactions.

Introduction

        In this discussion and analysis, we explain our business in the following areas:

•

Company Overview;

•

Results of Operations; and

•

Liquidity and Capital Resources

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TERRA NITROGEN COMPANY, L.P.

Company Overview

        TNCLP is a Delaware limited partnership that produces nitrogen fertilizer products. Our principal products are anhydrous ammonia (ammonia) and urea ammonium nitrate solutions (UAN), which we manufacture at our facility in Verdigris, Oklahoma.

        TNCLP and TNGP have no employees. An affiliate of the General Partner provides certain services to us under the Amendment to the General and Administrative Services and Product Offtake Agreement (the Services and Offtake Agreement). Pursuant to the Services and Offtake Agreement, the Partnership sells all of its fertilizer products to an affiliate of the General Partner at prices based on market prices for the Partnership's fertilizer products as defined in the Services and Offtake Agreement. Title and risk of loss transfer to an affiliate of the General Partner as the product is shipped from the plant gate. For further information regarding our agreements with the General Partner, see Notes to the Unaudited Consolidated Financial Statements, Note 9—Related Party Transactions.

Results of Operations

Consolidated Results

        We reported net earnings for the three months ended March 31, 2014, of $102.9 million on net sales of $177.7 million, compared with net earnings for the three months ended March 31, 2013, of $166.8 million on net sales of $224.1 million. Net earnings per common unit for the three months ended March 31, 2014, were $3.26 compared with $4.98 for the three months ended March 31, 2013.

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TERRA NITROGEN COMPANY, L.P.

        The following table shows the results of operations for the three months ended March 31, 2014 and 2013:

	Three months ended March 31,
	2014			2013			2014 vs. 2013
	(in millions, except per unit amounts)
Net sales	$	177.7		$	224.1		$	(46.4	)	(21	)%
Cost of goods sold		70.2			52.2			18.0		34	%
Gross margin		107.5			171.9			(64.4	)	(37	)%
Gross margin percentage		60.5	%		76.7	%
Selling, general and administrative expenses		4.6			5.1			(0.5	)	(10	)%
Operating earnings		102.9			166.8			(63.9	)	(38	)%
Net earnings	$	102.9		$	166.8		$	(63.9	)	(38	)%
Net earnings allocable to Common Units	$	60.4		$	92.2		$	(31.8	)	(34	)%
Net earnings per Common Unit	$	3.26		$	4.98		$	(1.72	)	(35	)%
Ammonia and UAN sales volume (tons in thousands)
Ammonia		98			86			12		14	%
UAN(1)		530			540			(10	)	(2	)%
Total		628			626			2		—	%
Average selling prices (dollars per ton)
Ammonia	$	413		$	657		$	(244	)	(37	)%
UAN(1)		258			310		$	(52	)	(17	)%
Natural gas costs/MMBtu(2)	$	4.02		$	3.43		$	0.59		17	%
Production volume by product (tons in thousands)
Ammonia(3)		306			306			—		—	%
UAN (32%)		520			524			(4	)	(1	)%

⁽¹⁾

The nitrogen content of UAN is 32% by weight.

⁽²⁾

Includes the cost of natural gas purchases and realized gains and losses on natural gas derivatives.

⁽³⁾

Gross ammonia production, including amounts subsequently upgraded on-site into UAN.

First Quarter of 2014 Compared to the First Quarter of 2013

        Our net sales for the first quarter of 2014 were $177.7 million, a decrease of $46.4 million, or 21%, from the first quarter of 2013 net sales of $224.1 million, due to a decrease in average selling prices. Ammonia prices decreased 37% from an average of $657 per ton in the three months ended March 31, 2013, to $413 per ton in the three months ended March 31, 2014, and UAN prices decreased 17% from an average of $310 per ton in the three months ended March 31, 2013 to $258 per ton in the three months ended March 31, 2014. The decrease in ammonia pricing was due primarily to higher producer inventories across North America. The 2013 North American fall ammonia application season was shortened due to cold winter weather conditions, which reduced the application period. This resulted in higher ammonia inventory levels at the producer level at the beginning of the first quarter of 2014, causing downward pressure on ammonia prices. The decrease in UAN selling prices was due primarily to lower demand caused by buyers cautious buying due to uncertainty related to pricing.

        Ammonia volume increased from 86,000 tons in the first quarter of 2013 to 98,000 tons in the first quarter of 2014 due to ammonia shipments for pre-plant applications in the southern plains regions which experienced favorable weather conditions for fertilizer application. UAN volume decreased

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TERRA NITROGEN COMPANY, L.P.

slightly in the first quarter of 2014 to 530,000 tons from 540,000 tons in the first quarter of 2013 as customers delayed spring purchasing.

        The following table shows the components of cost of goods sold and the average cost of goods sold per ton for the three months ended March 31, 2014 and 2013:

	Three months ended March 31,
	2014		2013			2014 vs. 2013
	(in millions, except per ton amounts)
Realized natural gas costs	$	43.3	$	36.9		$	6.4	17	%
Unrealized mark-to-market losses (gains) on natural gas derivatives		4.0		(3.7	)		7.7	NM
Payroll related expenses		5.6		5.6			—	—	%
Other		17.3		13.4			3.9	29	%
Total cost of goods sold	$	70.2	$	52.2		$	18.0	34	%
Average cost of goods sold per ton	$	112	$	83		$	29	35	%

        The average cost of goods sold per ton increased to $112 per ton in the first quarter of 2014 from $83 per ton in the first quarter of 2013. As shown in the preceding table, the 35% increase in the average cost of goods sold per ton was due primarily to higher realized natural gas costs, the effect of unrealized mark-to-market losses on natural gas derivatives and an increase in the other category which is primarily due to higher depreciation resulting from new assets being placed into service. Realized natural gas costs increased 17% from $3.43 per MMBtu in the first quarter of 2013 to $4.02 per MMBtu in the first quarter of 2014 due to strong market demand for natural gas due to the cold weather in North America. We recorded a $4.0 million unrealized mark-to-market loss for the first quarter of 2014, compared to $3.7 million unrealized mark-to-market gain on natural gas derivatives for the first quarter of 2013.

        Our gross margin was $107.5 million in the first quarter of 2014 compared to $171.9 million in the first quarter of 2013. Gross margin decreased compared to the prior year quarter due primarily to a decrease in average selling prices and an increase in cost of goods sold due to the combination of higher natural gas prices and the impact of unrealized mark-to-market losses in the three months ended March 31, 2014 versus gains in the prior year period. Gross margin as a percent of net sales decreased to 60.5% during the first quarter of 2014 from 76.7% during the first quarter of 2013.

        Selling, general and administrative expenses were $4.6 million in the first quarter of 2014 compared to $5.1 million in the first quarter of 2013.

        Our net earnings were $102.9 million in the first quarter of 2014, a decrease of $63.9 million, or 38%, as compared to $166.8 million in the first quarter of 2013. Net earnings decreased primarily due to the lower gross margin.

Liquidity and Capital Resources

        Our principal funding needs and uses of cash are working capital, plant turnaround costs, capital expenditures, and quarterly distributions. Our cash and cash equivalents balance at March 31, 2014, was $113.9 million, an increase of $27.0 million from the balance of $86.9 million at December 31, 2013. Our cash and cash equivalents consist primarily of U.S. Treasury Bills and money market mutual funds that invest in U.S. government obligations.

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TERRA NITROGEN COMPANY, L.P.

        We receive cash and make expenditures directly from our cash accounts. Because we sell our product to and receive payroll and other related services from affiliates of the General Partner, the affiliates of the General Partner continue to be both a debtor and creditor to us.

Cash Flows

        The following table summarizes our cash flows from operating, investing and financing activities for the three months ended March 31, 2014 and 2013:

	Three months ended March 31,
	2014			2013
	(in millions)
Total cash provided by (used in):
Operating activities	$	112.5		$	170.1
Investing activities		(16.4	)		(12.2	)
Financing activities		(69.1	)		(16.7	)
Increase in cash and cash equivalents	$	27.0		$	141.2

Operating Activities

        Net cash provided by operating activities was $112.5 million for the first three months of 2014 compared to $170.1 million for the same period of 2013. The $57.6 million decrease in cash provided by operating activities in the first three months of 2014 was due primarily to the $63.9 million decrease in net earnings. Net earnings included noncash depreciation and amortization expense of $7.6 million and $4.1 million during the three months ended March 31, 2014 and 2013, respectively, and an unrealized mark-to-market loss (gain) on derivatives of $2.9 million and ($3.9) million, respectively.

Investing Activities

        Net cash used in investing activities was $16.4 million for the first three months of 2014 compared to $12.2 million in the first three months of 2013. The $4.2 million increase in cash used in investing activities in 2014 was due primarily to a decrease in demand deposits with affiliates of the General Partner. Because we sell our products to and receive payroll and other related services from affiliates of the General Partner, the affiliates of the General Partner continue to be both a debtor and creditor to us. Additions to property, plant and equipment were $16.4 million and $17.6 million during the three months ended March 31, 2014 and 2013, respectively.

Financing Activities

        Net cash used in financing activities was $69.1 million for the first three months of 2014 compared to $16.7 million in the first three months of 2013, and consists of distributions paid to our unitholders. The increase in cash used in financing activities was due to the fact that $101.3 million of the cash distribution in the first quarter of 2013 that was due to affiliates of the General Partner was not paid until after March 31, 2013. The distributions paid are based on "Available Cash," as defined in our agreement of limited partnership. For additional information, see Notes to the Unaudited Consolidated Financial Statements, Note 3—Agreement of Limited Partnership.

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TERRA NITROGEN COMPANY, L.P.

Capital Expenditures

        Capital expenditures totaled $18.2 million in the first quarter of 2014 as compared to $17.6 million in the first quarter of 2013. We expect to make capital expenditures in the range of $70 to $90 million in 2014. Capital expenditures are made to sustain our asset base, to increase capacity, to improve plant efficiency and to comply with various environmental, health and safety requirements. Due to the size, scope and timing of capital projects, certain projects require more than a year to complete.

        Approximately one-half of the projected capital expenditures relate to sustaining projects. The remaining expenditures relate to certain major projects such as an ammonia debottlenecking project and an upgrade to a plant digital control system. These major projects began in 2013 and are expected to be completed in 2015. Additionally, during the first quarter of 2015, we expect to initiate a turnaround of one ammonia plant and one UAN plant, which will result in approximately one-half of the complex being shut down for the duration of the turnaround, which is expected to be approximately one-month. This will result in lower production and lower sales during this period, which will reduce Available Cash for distributions to unitholders. Capital expenditures will be made in 2014 to support the 2015 turnaround project. Planned capital expenditures and turnarounds are subject to change due to delays in regulatory approvals and/or permitting, unanticipated increases in cost, changes in scope and completion time, performance of third parties, adverse weather, defects in materials and workmanship, labor or material shortages, transportation constraints, and other unforeseen difficulties. Capital expenditures reduce the Available Cash for unit holder distributions.

General Partner

        The General Partner is an indirect, wholly-owned subsidiary of CF Industries. Under the General Partner's governing documents, neither we nor the General Partner may make any bankruptcy filing (or take similar action) without the approval of the General Partner's independent directors.

Partnership Distributions

        We make quarterly distributions to holders of our General Partner interest and Limited Partner interests based on Available Cash for the quarter as defined in our agreement of limited partnership. Available Cash is defined generally as all cash receipts less all cash disbursements, less certain reserves (including reserves for future operating and capital needs) established as the General Partner determines in its reasonable discretion to be necessary or appropriate. Changes in working capital affect Available Cash as changes in the amount of cash invested in working capital items (such as increases in inventory and decreases in accounts payable) reduce Available Cash, while declines in the amount of cash invested in working capital items increase Available Cash. During the three months ended March 31, 2014, we paid partnership distributions of $61.1 million. During the three months ended March 31, 2013, we declared partnership distributions of $118.0 million, of which $16.7 million was paid as of March 31, 2013. The remaining $101.3 million was paid during the second quarter of 2013.

        We receive 99% of the Available Cash from the Operating Partnership and 1% is distributed to its General Partner. Cash distributions from the Operating Partnership generally represent the Operating Partnership's Available Cash from operations. Our cash distributions are made 99.975% to common and Class B common unitholders and 0.025% to our General Partner except when cumulative distributions of Available Cash exceed specified target levels above the Minimum Quarterly Distributions (MQD) of $0.605 per unit. Under such circumstances, our General Partner is entitled to receive Incentive Distribution Rights.

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TERRA NITROGEN COMPANY, L.P.

        On May 7, 2014, we announced a $3.01 cash distribution per common limited partnership unit, payable on May 30, 2014 to holders of record as of May 19, 2014. In the first quarter, we exceeded the cumulative MQD amounts and will distribute Available Cash as summarized in the following table:

	Income and Distribution Allocation
	Target Limit		Target Increment		Common Units			Class B Common Units			General Partner			Total
Minimum Quarterly Distributions	$	0.605	$	0.605		98.990	%		0.985	%		0.025	%		100.00	%
First Target		0.715		0.110		98.990	%		0.985	%		0.025	%		100.00	%
Second Target		0.825		0.110		85.859	%		0.985	%		13.156	%		100.00	%
Third Target		1.045		0.220		75.758	%		0.985	%		23.257	%		100.00	%
Final Target and Beyond		>1.045		—		50.505	%		0.985	%		48.510	%		100.00	%

        The General Partner is required to remit the majority of cash distributions it receives from the Partnership, in excess of its 1% Partnership equity interest, to an affiliated company.

General Partner Option to Effect Mandatory Redemption of Partnership Units

        At March 31, 2014, the General Partner and its affiliates owned 75.3% of our outstanding units. When not more than 25% of the issued and outstanding units are held by non-affiliates of the General Partner, as was the case at March 31, 2014, we, at the General Partner's sole discretion, may call, or assign to the General Partner or its affiliates, our right to acquire all such outstanding units held by non-affiliated persons. If the General Partner elects to acquire all outstanding units, we are required to give at least 30 but not more than 60 days notice of our decision to purchase the outstanding units. The purchase price per unit will be the greater of (1) the average of the previous 20 trading days' closing prices as of the date five days before the purchase is announced or (2) the highest price paid by the General Partner or any of its affiliates for any unit within the 90 days preceding the date the purchase is announced.

Cash Transactions with Affiliates

        We receive cash and make expenditures directly from our cash accounts. Because we sell our product to and receive payroll and other related services from affiliates of the General Partner, the affiliates of the General Partner continue to be both a debtor and creditor to us.

Derivatives

        We purchase natural gas at market prices to meet production requirements at our manufacturing facility. Natural gas prices are volatile, and our natural gas acquisition policy allows us to establish derivative positions that are associated with anticipated natural gas requirements. The natural gas derivatives that we use are primarily natural gas fixed price swaps and call options.

        Natural gas derivatives involve the risk of dealing with counterparties and their ability to meet the terms of the contracts. The counterparties to our natural gas derivatives are either large energy companies or large financial institutions. For derivatives that are in net asset positions, we are exposed to credit loss from nonperformance by the counterparties. Credit risk is controlled through the use of multiple counterparties, individual credit limits, monitoring procedures, cash collateral requirements and master netting arrangements.

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TERRA NITROGEN COMPANY, L.P.

Contractual Obligations

        At March 31, 2014, there were no material changes to the Partnership's contractual obligations, critical accounting policies or off-balance sheet arrangements presented in Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the year ended December 31, 2013.

ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

        We are exposed to the impact of changes in the price of natural gas which we use in the manufacture of our nitrogen fertilizer products. Because natural gas prices are volatile, we manage the risk of changes in natural gas prices through the use of derivative financial instruments.

        The derivative instruments that we use are primarily natural gas fixed price swaps and call options. These contracts settle using NYMEX futures prices, which represent the basis for fair value at any given time. The derivatives are traded in months forward and settlements are scheduled to coincide with anticipated natural gas purchases during those future periods.

        As of March 31, 2014 and December 31, 2013, we had open derivative contracts for 9.4 million MMBtus and 13.2 million MMBtus, respectively, of natural gas. A $1.00 per MMBtu increase in the forward curve prices of natural gas at March 31, 2014, would result in a favorable change in the fair value of these derivative positions of $5.1 million, and a $1.00 per MMBtu decrease would change their fair value unfavorably by $3.6 million.

ITEM 4.    CONTROLS AND PROCEDURES

        (a)    Disclosure Controls and Procedures.    TNGP's management, with the participation of TNGP's Principal Executive Officer and Principal Financial Officer, has evaluated the effectiveness of the Partnership's disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) as of the end of the period covered by this report. Based on such evaluation, TNGP's Principal Executive Officer and Principal Financial Officer have concluded that, as of the end of such period, the Partnership's disclosure controls and procedures are effective in (i) recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Partnership in the reports that it files or submits under the Exchange Act and (ii) ensuring that information required to be disclosed by the Partnership in the reports that it files or submits under the Exchange Act is accumulated and communicated to TNGP's management, including TNGP's Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

        (b)    Internal Control Over Financial Reporting.    There have not been any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended March 31, 2014 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

FORWARD-LOOKING STATEMENTS

        From time to time, in this Quarterly Report on Form 10-Q as well as in other written reports and oral statements, we make forward-looking statements that are not statements of historical fact and may involve a number of risks and uncertainties. These statements relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, developments and business strategies. We have used the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," and similar terms and phrases, including references to assumptions, to identify

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TERRA NITROGEN COMPANY, L.P.

forward-looking statements in this Form 10-Q. These forward-looking statements are made based on currently available competitive, financial and economic data, our current expectations, estimates, forecasts and projections about the industries and markets in which we operate and management's beliefs and assumptions concerning future events affecting us. These statements are not guarantees of future performance and are subject to risks, uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Therefore, our actual results may differ materially from what is expressed in or implied by any forward-looking statements. We caution you not to place undue reliance on any forward-looking statements. We do not undertake any responsibility to release publicly any revisions to these forward- looking statements to take into account events or circumstances that occur after the date of this document. Additionally, we do not undertake any responsibility to provide updates regarding the occurrence of any unanticipated events which may cause actual results to differ from those expressed or implied by the forward-looking statements contained in this report.

        Important factors that could cause actual results to differ materially from our expectations are disclosed under "Risk Factors" in Item 1A in our Form 10-K, filed with the SEC on February 27, 2014. Such factors include, among others:

•

risks related to our reliance on one production facility;

•

the cyclical nature of our business;

•

the global commodity nature of our fertilizer products, the impact of global supply and demand on our selling prices, and the intense global competition from other fertilizer producers;

•

conditions in the U.S. agricultural industry;

•

the volatility of natural gas prices in North America;

•

reliance on third party transportation providers;

•

weather conditions;

•

potential liabilities and expenditures related to environmental and health and safety laws and regulations;

•

future regulatory restrictions and requirements related to greenhouse gas emissions or other environmental requirements;

•

risks associated with cyber security;

•

our inability to predict seasonal demand for our products accurately;

•

risks involving derivatives and the effectiveness of our risk measurement and hedging activities;

•

limited access to capital;

•

acts of terrorism and regulations to combat terrorism;

•

risks related to our dependence on and relationships with CF Industries;

•

deterioration of global market and economic conditions;

•

risks related to our partnership structure and control of our General Partner by CF Industries;

•

the conflicts of interest that may be faced by the executive officers of our General Partner, who operate both us and CF Industries; and

•

tax risks to our common unit holders and changes in our treatment as a partnership for U.S. or state income tax purposes.

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TERRA NITROGEN COMPANY, L.P.

PART II. OTHER INFORMATION

ITEM 6.    EXHIBITS

(a)   Exhibits:

31.1	Certification of the Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of the Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of the Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of the Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following financial information from Terra Nitrogen Company, L.P.'s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, formatted in XBRL (Extensible Business Reporting Language) includes: (1) Consolidated Statements of Operations, (2) Consolidated Balance Sheets, (3) Consolidated Statements of Cash Flows, (4) Consolidated Statements of Partners' Capital and (6) the Notes to Consolidated Financial Statements*

*

Users of this data are advised pursuant to Rule 406T of Regulation S-T that this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

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TERRA NITROGEN COMPANY, L.P.

SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	TERRA NITROGEN COMPANY, L.P.
	By:	TERRA NITROGEN GP INC. as General Partner
Date: May 8, 2014	By:	/s/ W. ANTHONY WILL W. Anthony Will President and Chief Executive Officer, Chairman of the Board (Principal Executive Officer)
Date: May 8, 2014	By:	/s/ DENNIS P. KELLEHER Dennis P. Kelleher Senior Vice President and Chief Financial Officer (Principal Financial Officer)

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EX-31.1

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TERRA NITROGEN COMPANY, L.P.

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, W. Anthony Will, certify that:

1.

I have reviewed this quarterly report on Form 10-Q of Terra Nitrogen Company, L.P.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.

The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 8, 2014

/s/ W. ANTHONY WILL
W. Anthony Will
President and Chief Executive Officer,
Chairman of the Board of Terra Nitrogen GP Inc.,
general partner of Terra Nitrogen Company, L.P.
(Principal Executive Officer)

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TERRA NITROGEN COMPANY, L.P.

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

EX-31.2

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TERRA NITROGEN COMPANY, L.P.

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Dennis P. Kelleher, certify that:

1.

I have reviewed this quarterly report on Form 10-Q of Terra Nitrogen Company, L.P.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.

The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 8, 2014

/s/ DENNIS P. KELLEHER
Dennis P. Kelleher
Senior Vice President and Chief Financial Officer of
Terra Nitrogen GP Inc., general partner of
Terra Nitrogen Company, L.P.
(Principal Financial Officer)

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TERRA NITROGEN COMPANY, L.P.

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

EX-32.1

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TERRA NITROGEN COMPANY, L.P.

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

        In connection with the Quarterly Report on Form 10-Q of Terra Nitrogen Company, L.P. (TNCLP) for the quarterly period ending March 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, W. Anthony Will, President of Terra Nitrogen GP Inc., the general partner of TNCLP, hereby certify pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and



2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of TNCLP as of and for the periods covered in the Report.

/s/ W. ANTHONY WILL
W. Anthony Will
President and Chief Executive Officer,
Chairman of the Board of Terra Nitrogen GP Inc.,
general partner of Terra Nitrogen Company, L.P.
(Principal Executive Officer)

Dated: May 8, 2014

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TERRA NITROGEN COMPANY, L.P.

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

EX-32.2

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TERRA NITROGEN COMPANY, L.P.

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

        In connection with the Quarterly Report on Form 10-Q of Terra Nitrogen Company, L.P. (TNCLP) for the quarterly period ending March 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Dennis P. Kelleher, Senior Vice President and Chief Financial Officer of Terra Nitrogen GP Inc., the general partner of TNCLP, hereby certify pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and



2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of TNCLP as of and for the periods covered in the Report.

/s/ DENNIS P. KELLEHER
Dennis P. Kelleher
Senior Vice President and Chief Financial Officer
of Terra Nitrogen GP Inc., general partner of
Terra Nitrogen Company, L.P.
(Principal Financial Officer)

Dated: May 8, 2014

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TERRA NITROGEN COMPANY, L.P.

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

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Inventories (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Inventories
Materials and supplies	$ 3.0	$ 2.6
Finished goods	2.4	3.3
Total	$ 5.4	$ 5.9

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Agreement of Limited Partnership

3 Months Ended

Mar. 31, 2014

Agreement of Limited Partnership

Agreement of Limited Partnership

3. Agreement of Limited Partnership

        We make quarterly distributions to holders of our General Partner interest and Limited Partner interests based on Available Cash for the quarter as defined in our agreement of limited partnership. Available Cash is defined generally as all cash receipts less all cash disbursements, less certain reserves (including reserves for future operating and capital needs) established as the General Partner determines in its reasonable discretion to be necessary or appropriate. Changes in working capital affect Available Cash as changes in the amount of cash invested in working capital items (such as increases in inventory and decreases in accounts payable) reduce Available Cash, while declines in the amount of cash invested in working capital items increase Available Cash. During the three months ended March 31, 2014, we paid partnership distributions of $61.1 million. During the three months ended March 31, 2013, we declared partnership distributions of $118.0 million, of which $16.7 million was paid as of March 31, 2013. The remaining $101.3 million was paid during the second quarter of 2013.

        We receive 99% of the Available Cash from the Operating Partnership and 1% is distributed to its General Partner. Cash distributions from the Operating Partnership generally represent the Operating Partnership's Available Cash from operations. Our cash distributions are made 99.975% to common and Class B common unitholders and 0.025% to our General Partner except when cumulative distributions of Available Cash exceed specified target levels above the Minimum Quarterly Distributions (MQD) of $0.605 per unit. Under such circumstances, our General Partner is entitled to receive Incentive Distribution Rights.

        On May 7, 2014, we announced a $3.01 cash distribution per common limited partnership unit, payable on May 30, 2014 to holders of record as of May 19, 2014. In the first quarter, we exceeded the cumulative MQD amounts and will distribute Available Cash as summarized in the following table:

	Income and Distribution Allocation
	Target Limit		Target Increment		Common Units			Class B Common Units			General Partner			Total
Minimum Quarterly Distributions	$	0.605	$	0.605		98.990	%		0.985	%		0.025	%		100.00	%
First Target		0.715		0.110		98.990	%		0.985	%		0.025	%		100.00	%
Second Target		0.825		0.110		85.859	%		0.985	%		13.156	%		100.00	%
Third Target		1.045		0.220		75.758	%		0.985	%		23.257	%		100.00	%
Final Target and Beyond		>1.045		—		50.505	%		0.985	%		48.510	%		100.00	%

        The General Partner is required to remit the majority of cash distributions it receives from the Partnership, in excess of its 1% Partnership equity interest, to an affiliated company.

        At March 31, 2014, the General Partner and its affiliates owned 75.3% of our outstanding units. When not more than 25% of our issued and outstanding units are held by non-affiliates of the General Partner, we, at the General Partner's sole discretion, may call, or assign to the General Partner or its affiliates, our right to acquire all such outstanding units held by non- affiliated persons. If the General Partner elects to acquire all outstanding units, we are required to give at least 30 but not more than 60 days notice of our decision to purchase the outstanding units. The purchase price per unit will be the greater of (1) the average of the previous 20 trading days' closing prices as of the date five days before the purchase is announced or (2) the highest price paid by the General Partner or any of its affiliates for any unit within the 90 days preceding the date the purchase is announced.

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Related Party Transactions (Details) (USD $)	3 Months Ended			3 Months Ended			1 Months Ended	3 Months Ended
	Mar. 31, 2014 Affiliate of General Partner	Mar. 31, 2013 Affiliate of General Partner	Dec. 31, 2013 Affiliate of General Partner	Mar. 31, 2014 Affiliate of General Partner Services and Offtake agreement	Mar. 31, 2014 Affiliate of General Partner Leases	Mar. 31, 2013 Affiliate of General Partner Leases	Jan. 31, 2013 Affiliate of General Partner Leases Ammonia assets item	Mar. 31, 2014 Affiliate of General Partner Leases Rail cars	Mar. 31, 2014 CF Industries Services and Offtake agreement	Mar. 31, 2013 CF Industries Services and Offtake agreement
Related party transactions
Term of agreement							5 years	1 year
Extended term of agreement				1 year			5 years	1 year
Payroll, payroll-related expenses and other employee related benefits	$ 5,600,000	$ 5,600,000
Allocated expenses									3,900,000	3,800,000
Due to affiliates, net	30,400,000		25,300,000
Base quarterly rent of leased asset							100,000
Number of options to renew lease term under amended and restated agreement							3
Quarterly rent per leased asset (in dollars per car)								3,600
Rental income received					$ 100,000	$ 100,000

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Property, Plant and Equipment, net (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Property, plant and equipment, net
Gross property, plant and equipment	$ 473.1		$ 456.8
Less: Accumulated depreciation and amortization	248.4		242.7
Net property, plant and equipment	224.7		214.1
Net capitalized turnaround costs:
Beginning balance	22.7	2.6
Additions	0.3
Depreciation	(1.6)	(1.0)
Ending balance	21.4	1.6
Land
Property, plant and equipment, net
Gross property, plant and equipment	1.6		1.6
Building and improvements
Property, plant and equipment, net
Gross property, plant and equipment	8.1		8.1
Plant and equipment
Property, plant and equipment, net
Gross property, plant and equipment	377.8		375.6
Construction in progress
Property, plant and equipment, net
Gross property, plant and equipment	$ 85.6		$ 71.5

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2014

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

        For a complete discussion of the Partnership's significant accounting policies, refer to the notes to the audited consolidated financial statements included in our 2013 Annual Report on Form 10-K, filed with the SEC on February 27, 2014.

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CONSOLIDATED BALANCE SHEETS (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 113.9	$ 86.9
Due from affiliates of the General Partner	36.0	29.0
Accounts receivable	0.6	1.0
Inventories, net	5.4	5.9
Prepaid expenses and other current assets	4.9	7.8
Total current assets	160.8	130.6
Property, plant and equipment, net	224.7	214.1
Other assets	5.5	5.1
Total assets	391.0	349.8
Current liabilities:
Accounts payable and accrued expenses	33.3	27.9
Due to affiliates of the General Partner	5.6	3.7
Other current liabilities		8.0
Total current liabilities	38.9	39.6
Noncurrent liabilities	1.3	1.2
Partners' capital:
General partner's interest	62.8	43.0
Total partners' capital	350.8	309.0
Total liabilities and partners' capital	391.0	349.8
Common
Partners' capital:
Limited partners' interests	286.1	264.5
Class B Common
Partners' capital:
Limited partners' interests	$ 1.9	$ 1.5

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Operating Activities
Net earnings	$ 102.9	$ 166.8
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	7.6	4.1
Unrealized loss (gain) on derivatives	2.9	(3.9)
Changes in operating assets and liabilities:
Accounts receivable	0.4	(0.1)
Inventories, net	0.5	0.7
Accounts payable and accrued expenses	3.7	(2.6)
Due to/from affiliates of the General Partner	(5.1)	3.8
Other assets and liabilities	(0.4)	1.3
Net cash provided by operating activities	112.5	170.1
Investing Activities
Additions to property, plant and equipment, net	(16.4)	(17.6)
Changes in demand deposits with affiliates of the General Partner		5.4
Net cash used in investing activities	(16.4)	(12.2)
Financing Activities
Partnership distributions paid	(61.1)	(16.7)
Other	(8.0)
Net cash used in financing activities	(69.1)	(16.7)
Increase in cash and cash equivalents	27.0	141.2
Cash and cash equivalents at beginning of period	86.9	149.4
Cash and cash equivalents at end of period	$ 113.9	$ 290.6

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Background and Basis of Presentation (Details)					3 Months Ended
	Mar. 31, 2014 Common	Dec. 31, 2013 Common	Mar. 31, 2014 Class B Common Units	Dec. 31, 2013 Class B Common Units	Mar. 31, 2014 General Partner	Mar. 31, 2014 CF Industries Holdings Common
Common units and interest in the partnership
Ownership interest in the partnership (as a percent)					0.05%
Common Units issued	18,501,576	18,501,576	184,072	184,072
Common Units outstanding	18,501,576	18,501,576	184,072	184,072
Common units owned through subsidiaries						13,889,014
Percentage of outstanding units owned through subsidiaries						75.00%

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Net Earnings per Common Unit (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Basic earnings per common unit:
Net earnings	$ 102.9	$ 166.8
Net earnings allocable to General Partner	41.5	73.0
Weighted average units outstanding	18.5	18.5
Net earnings per common Unit (in dollars per unit)	$ 3.26	$ 4.98
Dilutive TNCLP units outstanding	0	0
Class B Common Units
Basic earnings per common unit:
Net earnings allocated	1.0	1.6
Common Units
Basic earnings per common unit:
Net earnings allocated	$ 60.4	$ 92.2

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Background and Basis of Presentation

3 Months Ended

Mar. 31, 2014

Background and Basis of Presentation

Background and Basis of Presentation

1. Background and Basis of Presentation

        Terra Nitrogen Company, L.P. (TNCLP, we, our or us) is a Delaware limited partnership that produces nitrogen fertilizer products. Our principal products are anhydrous ammonia (ammonia) and urea ammonium nitrate solutions (UAN), which we manufacture at our facility in Verdigris, Oklahoma.

        We conduct our operations through an operating partnership, Terra Nitrogen, Limited Partnership (TNLP or the Operating Partnership, and collectively with TNCLP, the Partnership). Terra Nitrogen GP Inc. (TNGP or the General Partner), a Delaware corporation, is the general partner of both TNCLP and TNLP and owns a consolidated 0.05% general partner interest in the Partnership. The General Partner is an indirect, wholly-owned subsidiary of CF Industries Holdings, Inc. (CF Industries), a Delaware corporation. Ownership of TNCLP is comprised of the General Partner interests and the Limited Partner interests. Limited Partner interests consist of common units, which are listed for trading on the New York Stock Exchange under the symbol "TNH" and Class B common units. As of March 31, 2014, we had 18,501,576 common units and 184,072 Class B common units issued and outstanding. CF Industries through its subsidiaries owned 13,889,014 common units (representing approximately 75% of the total outstanding common units) and all of the Class B common units as of March 31, 2014.

        The accompanying unaudited interim consolidated financial statements have been prepared on the same basis as our audited consolidated financial statements for the year ended December 31, 2013, in accordance with accounting principles generally accepted in the United States for interim financial reporting. In the opinion of management, these statements reflect all adjustments, consisting only of normal and recurring adjustments that are necessary for the fair representation of the information for the periods presented. The unaudited interim consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. Operating results for any period presented apply to that period only and are not necessarily indicative of results for any future period.

        The preparation of the unaudited interim financial statements requires management to make use of estimates and assumptions that affect the reported amount of assets and liabilities, revenue and expenses and certain financial statement disclosures. Actual results could differ from these estimates. Significant estimates in these consolidated financial statements include net realizable value of inventories, environmental remediation liabilities, environmental and litigation contingencies, useful lives of property, plant and equipment, and the evaluation of impairments of property, plant and equipment.

        Throughout this document, the terms "affiliate of the General Partner" and "affiliates of the General Partner" refer to consolidated subsidiaries of CF Industries, including TNGP.

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CONSOLIDATED BALANCE SHEETS (Parenthetical)	Mar. 31, 2014	Dec. 31, 2013
Common
Limited partners' interests, Common Units authorized	18,501,576	18,501,576
Common Units issued	18,501,576	18,501,576
Common Units outstanding	18,501,576	18,501,576
Class B Common
Limited partners' interests, Common Units authorized	184,072	184,072
Common Units issued	184,072	184,072
Common Units outstanding	184,072	184,072

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Net Earnings per Common Unit (Tables)

3 Months Ended

Mar. 31, 2014

Net Earnings per Common Unit

Schedule of calculation for net earnings per common unit

	Three months ended March 31,
	2014			2013
	(in millions, except per unit amounts)
Basic earnings per common unit:
Net earnings	$	102.9		$	166.8
Net earnings allocable to General Partner		(41.5	)		(73.0	)
Net earnings allocable to Class B Common Units		(1.0	)		(1.6	)
Net earnings allocable to common units	$	60.4		$	92.2
Weighted average units outstanding		18.5			18.5
Net earnings per common unit	$	3.26		$	4.98

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Document and Entity Information	3 Months Ended
	Mar. 31, 2014	May 07, 2014
Document and Entity Information
Entity Registrant Name	TERRA NITROGEN CO L P /DE
Entity Central Index Key	0000879575
Document Type	10-Q
Document Period End Date	Mar. 31, 2014
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		18,501,576
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1

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Inventories (Tables)

3 Months Ended

Mar. 31, 2014

Inventories

Schedule of inventories

	March 31, 2014		December 31, 2013
	(in millions)
Materials and supplies	$	3.0	$	2.6
Finished goods		2.4		3.3
Total	$	5.4	$	5.9

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Net sales:
Other income	$ 0.3	$ 0.3
Total	177.7	224.1
Cost of goods sold:
Materials, supplies and services	64.6	46.6
Gross margin	107.5	171.9
Other general and administrative expenses	0.7	1.3
Earnings from operations	102.9	166.8
Net earnings	102.9	166.8
Allocation of net earnings:
General Partner	41.5	73.0
Net earnings	102.9	166.8
Net earnings per common Unit (in dollars per unit)	$ 3.26	$ 4.98
Affiliates
Net sales:
Product sales	177.3	223.7
Other income	0.1	0.1
Cost of goods sold:
Services provided by the affiliates of the General Partner	5.6	5.6
Selling, general and administrative services provided by the affiliates of the General Partner	3.9	3.8
Class B Common
Allocation of net earnings:
Common Units	1.0	1.6
Common
Allocation of net earnings:
Common Units	$ 60.4	$ 92.2

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Derivative Financial Instruments

3 Months Ended

Mar. 31, 2014

Derivative Financial Instruments

Derivative Financial Instruments

6. Derivative Financial Instruments

        Derivative financial instruments are executed on our behalf by an affiliate of the General Partner to manage the volatility in our natural gas prices. We report derivatives on our consolidated balance sheets at fair value. Changes in fair value are recognized in cost of sales in the period of change. Cash flows related to natural gas derivatives are reported in operating activities.

        The derivatives we use are primarily natural gas fixed price swaps and call options traded in the over-the-counter (OTC) markets. The derivative contract prices are based on prices at the Henry Hub in Louisiana, the most common and financially liquid location of reference for financial derivatives related to natural gas. However, we purchase natural gas for our manufacturing facility from suppliers whose prices are based primarily on the OneOK index rather than Henry Hub. This creates a location basis differential between the derivative contract price and the physical price of natural gas. Accordingly, the prices underlying the financial derivatives we use may not exactly match the prices of physical gas we consume. The contracts are traded in months forward and settlement dates are scheduled to coincide with anticipated gas purchases during those future periods.

        The gross fair values of derivatives on our balance sheet are shown below. All balance sheet amounts from derivatives arise from natural gas derivatives that are not designated as hedging instruments. For additional information on derivative fair values, see Note 7—Fair Value Measurements.

	March 31, 2014		December 31, 2013
	(in millions)
Unrealized gains in other current assets	$	4.9	$	7.8
Unrealized losses in other current liabilities		—		—
Net unrealized derivative gains/(losses)	$	4.9	$	7.8

        The effect of derivatives in our consolidated statements of operations is shown below. All amounts arise from natural gas derivatives that are not designated as hedging instruments and are recorded in cost of goods sold.

	Three months ended March 31,
	2014			2013
	(in millions)
Unrealized mark-to-market (losses) gains	$	(4.0	)	$	3.7
Realized gains (losses)		9.9			(1.6	)
Net derivative gains/(losses)	$	5.9		$	2.1

        As of March 31, 2014 and December 31, 2013, we had open derivative contracts for 9.4 million MMBtus and 13.2 million MMBtus, respectively, of natural gas. For the three months ended March 31, 2014, we used derivatives to cover approximately 74% of our natural gas consumption.

        The counterparties to our derivatives are large financial institutions and large energy companies. The derivatives are executed with several counterparties, generally under International Swaps and Derivatives Association (ISDA) agreements. The ISDA agreements are master netting arrangements commonly used for OTC derivatives that mitigate exposure to counterparty credit risk, in part, by creating contractual rights of netting and setoff, the specifics of which vary from agreement to agreement. These rights are described further below:

• •

  Settlement netting generally allows the parties to net, into a single net payable or receivable, ordinary settlement obligations arising under the ISDA agreement on the same day, in the same currency, for the same types of derivative instruments, and through the same pairing of offices.

  •

  Close-out netting rights are provided in the event of a default or other termination event (as defined in the ISDA agreements), including bankruptcy. Depending on the cause of early termination, the non-defaulting party may elect to accelerate and terminate all or some transactions outstanding under the ISDA agreement. The values of all terminated transactions and certain other payments under the ISDA agreement are netted, resulting in a single net close-out amount payable to or by the non-defaulting party.

  •

  Setoff rights are provided by certain of the ISDA agreements and generally allow a non-defaulting party to elect to setoff, against the final net close-out payment, other matured and contingent amounts payable between the parties under the ISDA agreement or otherwise. Typically, these setoff rights arise upon the early termination of all transactions outstanding under an ISDA agreement following a default or specified termination event.

        Most of the ISDA agreements contain credit risk related contingent features with sliding-scale credit support thresholds that are dependent upon credit ratings assigned to certain debt of the General Partner affiliate by certain credit rating agencies. Downgrades in the credit ratings would cause the applicable threshold levels to decrease and improvements in those ratings could cause the threshold levels to increase. If our net liability positions exceed the threshold amounts, the counterparties could require cash collateral, some other form of credit support or daily cash settlement of unrealized losses. As of March 31, 2014 and December 31, 2013, the aggregate fair values of the derivative instruments with credit-risk-related contingent features in a net liability position were $0.1 million and zero, respectively, which also approximates the fair value of the maximum amount of additional collateral that would need to be posted or assets needed to settle the obligations if the credit-risk-related contingent features were triggered at the reporting dates. At both March 31, 2014 and December 31, 2013, we had no cash collateral on deposit for derivative contracts. The credit support documents executed in connection with ISDA agreements generally provide the right to setoff collateral against amounts owing under the ISDA agreements upon the occurrence of a default or a specified termination event.

        The following table presents amounts relevant to offsetting of our derivative assets and liabilities as of March 31, 2014 and December 31, 2013.

			Gross amounts not offset in consolidated balance sheet
	Gross and Net amounts presented in consolidated balance sheet(1)
			Financial instruments		Cash collateral received (pledged)		Net amount
March 31, 2014
Total derivative assets	$	4.9	$	—	$	—	$	4.9
Total derivative liabilities		—		—		—		—
Net assets (liabilities)	$	4.9	$	—	$	—	$	4.9
December 31, 2013
Total derivative assets	$	7.8	$	—	$	—	$	7.8
Total derivative liabilities		—		—		—		—
Net assets (liabilities)	$	7.8	$	—	$	—	$	7.8

⁽¹⁾

We report the fair values of our derivative assets and liabilities on a gross basis on our consolidated balance sheet. As a result, amounts recognized and net amounts presented are the same.

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Inventories

3 Months Ended

Mar. 31, 2014

Inventories

Inventories

5. Inventories

        Inventories consisted of the following:

	March 31, 2014		December 31, 2013
	(in millions)
Materials and supplies	$	3.0	$	2.6
Finished goods		2.4		3.3
Total	$	5.4	$	5.9

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Agreement of Limited Partnership (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	0 Months Ended	3 Months Ended
	May 07, 2014	Mar. 31, 2014	Jun. 30, 2013	Mar. 31, 2013
Agreement of limited partnership
Partnership distributions paid		$ 61.1	$ 101.3	$ 118.0
Declared partnership distributions				$ 118.0
Available cash received from operating partnership (as a percent)		99.00%
Cash distribution declared per common limited partnership unit (in dollars per unit)	$ 3.01
Number of days before the purchase announcement is made, as a basis for determining the purchase price of outstanding units of non-affiliates		5 days
Minimum Quarterly Distributions
Agreement of limited partnership
Target Limit		0.605
Target Increment		0.605
Income and distribution allocation (as a percent)		100.00%
First Target
Agreement of limited partnership
Target Limit		0.715
Target Increment		0.110
Income and distribution allocation (as a percent)		100.00%
Second Target
Agreement of limited partnership
Target Limit		0.825
Target Increment		0.110
Income and distribution allocation (as a percent)		100.00%
Third Target
Agreement of limited partnership
Target Limit		1.045
Target Increment		0.220
Income and distribution allocation (as a percent)		100.00%
Final Target and Beyond
Agreement of limited partnership
Income and distribution allocation (as a percent)		100.00%
Final Target and Beyond | Minimum
Agreement of limited partnership
Target Limit		1.045
Common and Class B Common Units
Agreement of limited partnership
Cash distribution made, excluding when cumulative distribution is specified, (as a percent)		99.975%
Common Units | Minimum Quarterly Distributions
Agreement of limited partnership
Income and distribution allocation (as a percent)		98.99%
Common Units | First Target
Agreement of limited partnership
Income and distribution allocation (as a percent)		98.99%
Common Units | Second Target
Agreement of limited partnership
Income and distribution allocation (as a percent)		85.859%
Common Units | Third Target
Agreement of limited partnership
Income and distribution allocation (as a percent)		75.758%
Common Units | Final Target and Beyond
Agreement of limited partnership
Income and distribution allocation (as a percent)		50.505%
Class B Common Units | Minimum Quarterly Distributions
Agreement of limited partnership
Income and distribution allocation (as a percent)		0.985%
Class B Common Units | First Target
Agreement of limited partnership
Income and distribution allocation (as a percent)		0.985%
Class B Common Units | Second Target
Agreement of limited partnership
Income and distribution allocation (as a percent)		0.985%
Class B Common Units | Third Target
Agreement of limited partnership
Income and distribution allocation (as a percent)		0.985%
Class B Common Units | Final Target and Beyond
Agreement of limited partnership
Income and distribution allocation (as a percent)		0.985%
General Partner
Agreement of limited partnership
Available cash distributed from operating partnership to General Partner (as a percent)		1.00%
Cash distribution made, excluding when cumulative distribution is specified, (as a percent)		0.025%
Partnership equity interest (as a percent)		1.00%
Percentage of outstanding units owned by the General Partner and its affiliates		75.30%
Period within which highest price is paid for any unit preceding the date the purchase is announced used to determine the purchase price of outstanding units of non-affiliates		90 days
General Partner | Minimum
Agreement of limited partnership
Percentage of ownership of non-affiliates of the General Partner allowing majority owner to acquire outstanding units held by non-affiliated persons		25.00%
Notice period for making decision to purchase the outstanding units		30 days
General Partner | Maximum
Agreement of limited partnership
Notice period for making decision to purchase the outstanding units		60 days
Number of average trading days' closing prices used to determine the purchase price of outstanding units of non-affiliates		20 days
General Partner | Minimum Quarterly Distributions
Agreement of limited partnership
Income and distribution allocation (as a percent)		0.025%
General Partner | First Target
Agreement of limited partnership
Income and distribution allocation (as a percent)		0.025%
General Partner | Second Target
Agreement of limited partnership
Income and distribution allocation (as a percent)		13.156%
General Partner | Third Target
Agreement of limited partnership
Income and distribution allocation (as a percent)		23.257%
General Partner | Final Target and Beyond
Agreement of limited partnership
Income and distribution allocation (as a percent)		48.51%

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Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2014

Derivative Financial Instruments

Schedule of the gross fair values of derivatives on balance sheet

	March 31, 2014		December 31, 2013
	(in millions)
Unrealized gains in other current assets	$	4.9	$	7.8
Unrealized losses in other current liabilities		—		—
Net unrealized derivative gains/(losses)	$	4.9	$	7.8

Schedule of effects of derivatives in consolidated statements of operations

	Three months ended March 31,
	2014			2013
	(in millions)
Unrealized mark-to-market (losses) gains	$	(4.0	)	$	3.7
Realized gains (losses)		9.9			(1.6	)
Net derivative gains/(losses)	$	5.9		$	2.1

Schedule of offsetting of derivative assets and liabilities

			Gross amounts not offset in consolidated balance sheet
	Gross and Net amounts presented in consolidated balance sheet(1)
			Financial instruments		Cash collateral received (pledged)		Net amount
March 31, 2014
Total derivative assets	$	4.9	$	—	$	—	$	4.9
Total derivative liabilities		—		—		—		—
Net assets (liabilities)	$	4.9	$	—	$	—	$	4.9
December 31, 2013
Total derivative assets	$	7.8	$	—	$	—	$	7.8
Total derivative liabilities		—		—		—		—
Net assets (liabilities)	$	7.8	$	—	$	—	$	7.8

⁽¹⁾

We report the fair values of our derivative assets and liabilities on a gross basis on our consolidated balance sheet. As a result, amounts recognized and net amounts presented are the same.

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Related Party Transactions

3 Months Ended

Mar. 31, 2014

Related Party Transactions

Related Party Transactions

9. Related Party Transactions

        TNCLP and TNGP have no employees. We have entered into several agreements with a subsidiary of CF Industries relating to the operation of our business and the sale of the fertilizer products produced at our Verdigris facility. We believe that each of these agreements is on terms that are fair and reasonable to us.

General Administrative Services and Product Offtake Agreement

        Pursuant to the Amendment to the General and Administrative Services and Product Offtake Agreement (the Services and Offtake Agreement), the Partnership sells all of its fertilizer products to an affiliate of the General Partner at prices based on market prices for the Partnership's fertilizer products as defined in the Services and Offtake Agreement. Title and risk of loss transfer to an affiliate of the General Partner as the product is shipped from the plant gate. The Services and Offtake Agreement is effective for annual terms starting as of January 1st and will be extended automatically for successive one-year terms unless terminated by one of the parties prior to renewal.

Directly Incurred Charges

        Since we have no employees, we rely on employees from an affiliate of the General Partner to operate our Verdigris facility. As a result, the payroll, payroll-related expenses and benefits, such as health insurance and pension, incurred by an affiliate of the General Partner, are directly charged to us. Payroll, payroll-related expenses and other employee related benefits directly charged to us were $5.6 million for each of the three months ended March 31, 2014 and 2013, respectively. We report these expenses as services provided by the General Partner and affiliates of the General Partner in cost of goods sold.

Allocated Charges

        CF Industries, together with its affiliates, also provides certain services to us under the Services and Offtake Agreement. These services include production planning, manufacturing management, logistics, accounting, legal, risk management, investor relations and other general and administrative functions. Allocated expenses charged to us for the three months ended March 31, 2014 and 2013 were $3.9 million and $3.8 million, respectively. We report these expenses as selling, general and administrative services provided by the affiliates of the General Partner.

Demand Deposits with and Amounts Due to/from Affiliates of the General Partner

        We receive cash and make expenditures directly from our cash accounts. Because we sell our products to and receive payroll and other related services from affiliates of the General Partner, the affiliates of the General Partner continue to be both a debtor and creditor to us. At March 31, 2014 and December 31, 2013, we had a net balance due from affiliates of the General Partner of $30.4 million and $25.3 million, respectively.

Spare Parts Sharing Agreement

        Affiliates of CF Industries own and operate nitrogen fertilizer complexes that utilize some equipment that is similar to equipment at our Verdigris Nitrogen Complex. Each of the various manufacturing complexes maintains spare parts for use in their facilities. In the event that an unplanned need arises and to help prevent manufacturing downtime, we have entered into a spare parts sharing agreement that permits spare parts to be shared among the manufacturing complexes from time to time. Parts that are borrowed from another complex under the agreement are either refurbished and returned to the lender or replaced.

Leases

        We entered into an amended and restated lease with an affiliate of the General Partner under which the ammonia assets at our Blair terminal are leased by the affiliate. The lease is effective for a five-year term starting on January 1, 2013, and an affiliate of the General Partner has three options to renew for additional five-year terms. The quarterly lease payment is $100,000, subject to an annual inflation adjustment, and additional rent will be paid equal to all costs, expenses, and obligations incurred by the affiliate of the General Partner related to the use, occupancy and operation of the facilities.

        We also have leased certain of our rail cars to an affiliate of the General Partner for quarterly market-based rental payments of $3,600 per car. This lease also was effective initially for a one-year term and is extended automatically for successive one-year terms unless terminated by either party thereto prior to renewal.

        We received rental income of $0.1 million for each of the three month periods ended March 31, 2014 and 2013.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2014

Fair Value Measurements

Fair Value Measurements

7. Fair Value Measurements

Assets and Liabilities Measured at Fair Value on a Recurring Basis

        The following table presents assets and liabilities included in our Consolidated Balance Sheets that are recognized at fair value on a recurring basis, and indicates the fair value hierarchy utilized to determine such fair value as of March 31, 2014 and December 31, 2013.

	Balances as of March 31, 2014
	Total		Quoted Market Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in millions)
Cash and cash equivalents	$	113.9	$	113.9	$	—	$	—
Unrealized gains on natural gas derivatives		4.9		—		4.9		—
Total assets at fair value	$	118.8	$	113.9	$	4.9	$	—

	Balances as of December 31, 2013
	Total		Quoted Market Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in millions)
Cash and cash equivalents	$	86.9	$	86.9	$	—	$	—
Unrealized gains on natural gas derivatives		7.8		—		7.8		—
Total assets at fair value	$	94.7	$	86.9	$	7.8	$	—

        Following is a summary of the valuation methodologies for assets and liabilities recorded in our Consolidated Balance Sheets at fair value on a recurring basis:

Cash and Cash Equivalents

        As of March 31, 2014 and December 31, 2013, our cash and cash equivalents consisted primarily of U.S. Treasury Bills with original maturities of three months or less and money market mutual funds that invest in U.S. government obligations.

Natural Gas Derivatives

        The derivative instruments that we use are primarily natural gas fixed price swaps and call options traded in the OTC markets with either large energy companies or large financial institutions. The derivatives are traded in months forward and settlements are scheduled to coincide with anticipated gas purchases during those future periods. These contracts settle using NYMEX futures prices and accordingly, to determine the fair value of these instruments, we use quoted market prices from NYMEX and standard pricing models with inputs derived from or corroborated by observable market data such as forward curves supplied by an industry recognized unrelated third party. See Note 6—Derivative Financial Instruments for additional information.

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Property, Plant and Equipment, net

3 Months Ended

Mar. 31, 2014

Property, Plant and Equipment, Net

Property, Plant and Equipment, Net

8. Property, Plant and Equipment, net

        Property, plant and equipment, net consisted of the following:

	March 31, 2014		December 31, 2013
	(in millions)
Land	$	1.6	$	1.6
Building and improvements		8.1		8.1
Plant and equipment		377.8		375.6
Construction in progress		85.6		71.5
		473.1		456.8
Less: Accumulated depreciation and amortization		248.4		242.7
	$	224.7	$	214.1

        Plant turnarounds—Scheduled inspections, replacements and overhauls of plant machinery and equipment at our continuous process manufacturing facility are referred to as plant turnarounds. The expenditures related to turnarounds are capitalized when incurred. The following is a summary of plant turnaround activity for the three months ended March 31, 2014 and 2013.

	Three months ended March 31,
	2014			2013
	(in millions)
Net capitalized turnaround costs:
Beginning balance	$	22.7		$	2.6
Additions		0.3			—
Depreciation		(1.6	)		(1.0	)
Ending balance	$	21.4		$	1.6

        Scheduled replacements and overhauls of plant and equipment include the dismantling, repair or replacement and installation of various components including piping, valves, motors, turbines, pumps, compressors, heat exchangers and the replacement of catalyst when a full plant shutdown occurs. Scheduled inspections are also conducted during full plant shutdowns, including required safety inspections which entail the disassembly of various components such as steam boilers, pressure vessels and other equipment requiring safety certifications. Internal employee costs and overhead are not considered turnaround costs and are not capitalized.

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Agreement of Limited Partnership (Tables)

3 Months Ended

Mar. 31, 2014

Agreement of Limited Partnership

Summary of available cash distribution

	Income and Distribution Allocation
	Target Limit		Target Increment		Common Units			Class B Common Units			General Partner			Total
Minimum Quarterly Distributions	$	0.605	$	0.605		98.990	%		0.985	%		0.025	%		100.00	%
First Target		0.715		0.110		98.990	%		0.985	%		0.025	%		100.00	%
Second Target		0.825		0.110		85.859	%		0.985	%		13.156	%		100.00	%
Third Target		1.045		0.220		75.758	%		0.985	%		23.257	%		100.00	%
Final Target and Beyond		>1.045		—		50.505	%		0.985	%		48.510	%		100.00	%

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Property, Plant and Equipment, net (Tables)

3 Months Ended

Mar. 31, 2014

Property, Plant and Equipment, Net

Schedule of property, plant and equipment, net

	March 31, 2014		December 31, 2013
	(in millions)
Land	$	1.6	$	1.6
Building and improvements		8.1		8.1
Plant and equipment		377.8		375.6
Construction in progress		85.6		71.5
		473.1		456.8
Less: Accumulated depreciation and amortization		248.4		242.7
	$	224.7	$	214.1

Summary of plant turnaround activity

	Three months ended March 31,
	2014			2013
	(in millions)
Net capitalized turnaround costs:
Beginning balance	$	22.7		$	2.6
Additions		0.3			—
Depreciation		(1.6	)		(1.0	)
Ending balance	$	21.4		$	1.6

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Derivative Financial Instruments (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014 MMBTU	Mar. 31, 2013	Dec. 31, 2013 MMBTU
Derivative financial instruments
Unrealized mark-to-market (losses) gains	$ (2.9)	$ 3.9
Open derivative contracts for natural gas (in MMBtus)	9,400,000		13,200,000
Percentage of natural gas consumption covered by derivatives	74.00%
Aggregate fair value of the derivative instruments with credit-risk-related contingent features in net liability position	0.1		0
Total derivative assets
Gross and net amounts presented in consolidated balance sheet	4.9		7.8
Gross amounts not offset in consolidated balance sheet
Net amount	4.9		7.8
Net assets (liabilities)
Gross and net amounts presented in consolidated balance sheet	4.9		7.8
Gross amounts not offset in consolidated balance sheet
Cash collateral pledged	0		0
Natural gas derivatives not designated as hedging instruments
Derivative financial instruments
Unrealized gains in other current assets	4.9		7.8
Net unrealized derivative gains/(losses)	4.9		7.8
Unrealized mark-to-market (losses) gains	(4.0)	3.7
Realized gains (losses)	9.9	(1.6)
Net derivative gains/(losses)	$ 5.9	$ 2.1

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CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL (USD $) In Millions, unless otherwise specified	Total	General Partner's Interests	Common Units	Class B Common Units
Partners' capital at Dec. 31, 2012	$ 271.8	$ 32.3	$ 238.3	$ 1.2
Increase (Decrease) in Partners' Capital
Net earnings	166.8	73.0	92.2	1.6
Distributions	(118.0)	(49.5)	(67.3)	(1.2)
Partners' capital at Mar. 31, 2013	320.6	55.8	263.2	1.6
Partners' capital at Dec. 31, 2013	309.0	43.0	264.5	1.5
Increase (Decrease) in Partners' Capital
Net earnings	102.9	41.5	60.4	1.0
Distributions	(61.1)	(21.7)	(38.8)	(0.6)
Partners' capital at Mar. 31, 2014	$ 350.8	$ 62.8	$ 286.1	$ 1.9

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Net Earnings per Common Unit

3 Months Ended

Mar. 31, 2014

Net Earnings per Common Unit

Net Earnings per Common Unit

4. Net Earnings per Common Unit

        Net earnings per common unit is based on the weighted-average number of common units outstanding during the period. The following table provides a calculation for net earnings per common unit for the three months ended March 31, 2014 and 2013:

	Three months ended March 31,
	2014			2013
	(in millions, except per unit amounts)
Basic earnings per common unit:
Net earnings	$	102.9		$	166.8
Net earnings allocable to General Partner		(41.5	)		(73.0	)
Net earnings allocable to Class B Common Units		(1.0	)		(1.6	)
Net earnings allocable to common units	$	60.4		$	92.2
Weighted average units outstanding		18.5			18.5
Net earnings per common unit	$	3.26		$	4.98

        There were no dilutive TNCLP units outstanding for the three months ended March 31, 2014 and 2013.

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Fair Value Measurements (Details) (Recurring basis, USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Total
Fair value measurements
Cash and cash equivalents	$ 113.9	$ 86.9
Unrealized gains on natural gas derivatives	4.9	7.8
Total assets at fair value	118.8	94.7
Quoted Market Prices in Active Markets (Level 1)
Fair value measurements
Cash and cash equivalents	113.9	86.9
Total assets at fair value	113.9	86.9
Significant Other Observable Inputs (Level 2)
Fair value measurements
Unrealized gains on natural gas derivatives	4.9	7.8
Total assets at fair value	$ 4.9	$ 7.8

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Measurements

Schedule of assets and liabilities that are recognized at fair value on a recurring basis

	Balances as of March 31, 2014
	Total		Quoted Market Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in millions)
Cash and cash equivalents	$	113.9	$	113.9	$	—	$	—
Unrealized gains on natural gas derivatives		4.9		—		4.9		—
Total assets at fair value	$	118.8	$	113.9	$	4.9	$	—

	Balances as of December 31, 2013
	Total		Quoted Market Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in millions)
Cash and cash equivalents	$	86.9	$	86.9	$	—	$	—
Unrealized gains on natural gas derivatives		7.8		—		7.8		—
Total assets at fair value	$	94.7	$	86.9	$	7.8	$	—