From 2nd qtr press release- So it does look to be much lower margins- but have to see where selling prices have gone.
Average Cost per MMBtu
(includes transportation costs)
In addition to natural gas purchases through June 30, detailed above, as of July 31, 2012, Rentech Nitrogen had contracted at fixed prices for an additional 1.8 million MMBtus at an average price of $3.28 per MMBtu, excluding transportation costs. With the addition of these natural gas commitments, Rentech Nitrogen has locked in 84% of the natural gas required to produce products already delivered or forecasted to be delivered under the new 2012 guidance at an average cost of $3.71 per MMBtu, including transportation costs. These forward natural gas contracts represent approximately 100% of the natural gas required to produce products to be delivered under 2012 pre-paid sales contracts as of July 31.
from past CC's NG costs are aprox 70%.. The lions share of input costs. So based on 4$ gas, costs have increased by 8.1% over last year. and prices have risen bye 3-5%. Could be a wash for the year. Maybe some clarity on June conference dates.