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SUVs and good fuel economy go together like a vegan at an Outback Steakhouse. Well, that's the way it was until the introduction of the Lexus RX hybrid, which has the same sort of gasoline-electric powertrain that made the Prius what it is. Of course, the rating of 30 mpg EPA combined earned by the 2013 Lexus RX 450h pales in comparison to the 50 mpg offered by its diminutive Toyota corporate cousin, but for a midsize luxury SUV, it's unbeatable. In fact, the mpg ratings of the RX hybrid's nearest competitors typically rank in just the low 20s.
As a hybrid, the RX 450h features a 3.5-liter V6 paired to electric motors that are powered with batteries. These are automatically recharged by capturing energy normally lost during braking. The result is a powertrain that is not only impressively fuel-efficient but pretty powerful as well. The downside, however, is that the RX hybrid also comes with a price tag that's about $6,000 dearer than a gas-only RX 350. According to the EPA, you'd have to drive the RX 450h for 8.5 years before you'd recoup the hybrid's price premium with fuel savings alone.
Unlike some other luxury hybrids, the RX hybrid's price premium does not come with extra equipment. The RX 450h and RX 350 are pretty much identical when you go beyond what's cooking under the hood. Besides the price you pay, however, that's not really a bad thing. Both provide a plush ride, a spacious cabin, strong build quality and the availability of many high-tech features.
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Frankly, the 2013 Lexus RX 450h makes for a dubious economic choice compared to a regular Lexus RX 350. You'd have to be willing to either own the car for a very long time or pay considerably more for the environmental benefits associated with a hybrid. Having said that, the RX 450h is far more fuel-efficient and cheaper than other hybrid-powered luxury SUVs on the market like the Porsche Cayenne Hybrid. The same can be said for the diesel-powered BMW X5 and Mercedes-Benz ML350. In other words, if you're looking for the least oxymoronic fuel-efficient SUV, the RX 450h is without question the one to buy.
To Our Stockholders: 2015 was the year that positioned CF Industries for our next round of significant growth and value creation. We made substantial progress and are nearing the finish line on our $4.6 billion North American capacity expansion projects. We took a big step internationally when we acquired the outstanding 50 percent in our U.K. joint venture. Additionally, we entered into a definitive agreement to grow both internationally and domestically via a combination with select businesses of OCI N.V. Finally, we entered into a strategic venture with CHS Inc., a leading North American cooperative and one of our largest customers. These actions have created the launchpad for CF Industries. As we look ahead in 2016, we are focused on delivering our promising future. Strategically, 2015 was a breakthrough year for CF Industries, and it was a strong year for us operationally as well. Although product prices were significantly lower year-on-year, our adjusted EBITDA was still $2.0 billion compared to $2.1 billion in 2014. Our business benefits from abundant, low-cost natural gas and operations in regions with continued dependence on imports. These structural benefits provide us strong margins and robust cash flow from operations. structural benefits, we have some of the lowest delivered costs for a broad range of nitrogen products to North America and the U.K. To maximize price realization for our products, we focus on providing the products which are most in demand to those customers with the most urgent needs. To accomplish this, we have increased both the flexibility of our asset base and our access to a wider range of customers, both domestic and abroad. We optimize our production mix between ammonia, urea, urea ammonium nitrate (UAN) and other products in order to maximize total margin dollars. We have also made significant investments in our distribution terminals to increase the inbound and outbound loading rates, increasing our inventory turns on those assets and reducing customer wait and load times. Access to different rail lines and export options allows us to serve our customers wherever they are in the world. 2 CF Industries Delivering Our Promising Future Our Strategy We produce and distribute nitrogen fertilizer, a commodity chemical. To generate superior returns, we focus on achieving the lowest delivered costs and maximizing price realization. While our strategy sounds pretty simple, a lot of work goes into executing it. Costs are driven by the price of natural gas, our primary feedstock, efficiency of operations, and distribution distances and modes. The majority of our manufacturing assets are located in North America, one of the lowest gas cost regions in the world. Operational excellence, including our focus on safety and on-stream factor, is a core capability of our organization and a significant driver of efficient operations. Scale also contributes to efficiency, enabling us to leverage everything from outstanding engineering talent to pooled spare parts across a broad network of assets. Our North American plants and distribution terminals span the cornbelt and provide access to all major rail carriers, both ammonia pipelines, navigable river systems and even deep water docks for export. As a result of these All of our investments and strategic initiatives are in support of our strategy to reduce delivered costs for our products and maximize price realization. Capital Allocation to Drive Shareholder Returns Our goal is to drive cash generation per share, and our capital allocation philosophy flows from that. We first look to reinvest in our business where we can identify opportunities that fit our strategy to reduce delivered