Analysts at RBC Capital provided their outlook on CF Industries Holdings, Inc. (NYSE:CF) ahead of its Q4 results, expecting the company to deliver a solid quarter with a positive outlook.

Nitrogen prices continued to strengthen during the quarter as European natural gas prices set record highs, resulting in temporary shut-downs and pushing up the global cost curve, which benefited the company as a North American producer using lower-cost natural gas along with higher production quarter-over-quarter after recovering from Hurricane Ida impacts in Q3. The company raised 2021 EBITDA guidance to $2.65-2.85 billion in early December, which implies around $1.2-1.3 billion EBITDA guidance for Q4.

The analysts believe nitrogen prices should stay relatively strong through 2022, with potential upside, which supports strong cash generation that can be deployed to share buybacks and investments into low-carbon ammonia growth.