Financial Performance - Net sales for Q1 2025 were $143,432,000, an increase of 3.3% compared to $138,204,000 in Q1 2024[12]. - Gross profit decreased to $14,384,000 in Q1 2025, down 35.5% from $22,278,000 in Q1 2024[12]. - Operating income fell to $4,468,000 in Q1 2025, a decline of 60.3% from $11,260,000 in Q1 2024[12]. - The company reported a net loss of $1,640,000 in Q1 2025, compared to a net income of $5,623,000 in Q1 2024[12]. - Consolidated net sales for Q1 2025 were $143.4 million, a 1% increase from $138.2 million in Q1 2024, while operating income decreased to $4.5 million from $11.3 million[125]. - The net sales of AN & Nitric Acid increased to $57.6 million in Q1 2025 from $48.4 million in Q1 2024, representing a growth of 18.5%[84]. - Total tons sold increased by 4% to 372,499 in Q1 2025, with AN & Nitric Acid sales up 17% and UAN sales up 10%, while ammonia sales dropped by 23%[131]. - Adjusted gross profit for the first quarter of 2025 was $36.442 million, compared to $40.287 million in the first quarter of 2024[169]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $15,030,000 as of March 31, 2025, down from $20,230,000 at the end of 2024[10]. - Cash provided by operating activities was $6,836,000 in Q1 2025, a decrease of 71.6% from $24,107,000 in Q1 2024[17]. - Net cash flows from operating activities fell to $6.8 million in Q1 2025, a decrease of $17.3 million from $24.1 million in Q1 2024, primarily due to higher cost of sales[140]. - As of March 31, 2025, total cash, cash equivalents, and short-term investments amounted to $163.5 million, down from $184.2 million at the end of 2024[146]. - The company expects to fund its anticipated liquidity needs for the next twelve months through cash, short-term investments, and cash flow from operations[149]. - As of March 31, 2025, the company had approximately $40 million available under its undrawn Revolving Credit Facility[154]. Debt and Liabilities - Total liabilities decreased to $685,375,000 as of March 31, 2025, down from $688,253,000 at December 31, 2024[10]. - The company’s long-term debt increased slightly to $478,174,000 as of March 31, 2025, compared to $476,163,000 at December 31, 2024[10]. - The company has $478.4 million in Senior Secured Notes due 2028, with interest paid semiannually[151]. - The Senior Secured Notes due 2028 amount to $478.4 million, with an interest rate of 6.25%[4]. - The company incurred interest expense of $8,064,000 in Q1 2025, down from $9,729,000 in Q1 2024[12]. - The company is contingently liable for payments up to $10.3 million related to performance bonds as of March 31, 2025[160]. Environmental and Regulatory Compliance - The company incurred $0.9 million in expenses related to environmental regulatory compliance in the first quarter of 2025, with expected additional expenses ranging from $3.2 million to $3.4 million for the remainder of the year[158]. - The company is subject to various environmental laws and may incur significant compliance expenses and liabilities in the future[6]. - As of March 31, 2025, accrued liabilities for environmental matters totaled approximately $0.6 million[6]. Future Projects and Investments - The company plans to invest in low carbon ammonia production, with a project at the El Dorado Facility expected to be operational by the end of 2026[99]. - An agreement was announced to supply up to 150,000 short tons per year of low carbon ammonium nitrate solution to Freeport Minerals Corporation starting January 1, 2025[100]. - The company is pursuing a project to capture and sequester CO2 at the El Dorado Facility, expected to capture approximately 400,000 to 500,000 metric tons of CO2 per year once operational[102]. - The facility's ammonia production is expected to sequester approximately 400,000 to 500,000 metric tons of CO2 annually, reducing overall scope 1 GHG emissions by about 25%[104]. - The El Dorado Facility expansion projects are on hold for 2024, with plans to reevaluate in 2025 due to high costs and moderating selling prices[103]. Market Conditions and Risks - The company expects to face various risks including changes in commodity prices, interest rates, and competition in the market[171][180]. - The company is sensitive to adverse economic cycles, which could materially affect its business, financial condition, and cash flow[185]. - A prolonged deterioration of global market conditions may lead to increased bad debts and affect working capital due to customers' inability to fulfill purchase obligations[186]. - The international market for nitrogen fertilizer significantly influences the company's operating results, affected by U.S. currency value and foreign agricultural policies[187]. - Recent U.S. tariffs on agricultural products could impact selling prices and increase input costs for customers, potentially disrupting supply chains[188]. - The ultimate impact of changing trade policies on the company will depend on the magnitude and duration of tariffs, which may not be fully mitigated[189]. Stock and Shareholder Actions - The company has authorized a $150 million stock repurchase program aimed at maximizing stockholder value[156]. - No shares of common stock were repurchased during the three months ended March 31, 2025[157]. - The company has adopted Rule 10b5-1 trading plans for its executives, allowing the sale of up to 35,000 shares by the CFO and 21,641 shares by the Senior VP[191][192].

Financial Data and Key Metrics Changes - Overall sales volumes improved by 4% quarter over quarter, driven by solid improvement in sales volumes for ammonium nitrate and UAN [6][16] - Adjusted EBITDA for Q1 2025 was $29 million, down from $33 million in Q1 2024, primarily due to higher natural gas costs [16][18] - Cash balance remains strong, and leverage ratio is in line with target levels for a mid-cycle pricing environment [19] Business Line Data and Key Metrics Changes - Demand for industrial products remains robust, with strong pricing and demand for nitric acid and ammonium nitrate solutions [11][12] - UAN prices increased significantly, with current NOLA UAN price at $350 per ton, 73% higher than the low price of fall 2024 [13] - Urea prices strengthened considerably, now above $500 per ton, driven by seasonal demand and lack of imports [13] Market Data and Key Metrics Changes - The USDA reported a significant increase in planted corn acres, expected to reach 95.3 million acres in 2025 compared to 90.6 million in 2024, driving strong fertilizer demand [15] - US corn prices are solidly above $4 per bushel, supporting favorable farmer economics [16] - Domestic pricing for urea has seen a significant uplift due to tariffs and other factors, expected to persist through the current spring planting season [8][9] Company Strategy and Development Direction - The company is focusing on improving the reliability and efficiency of its facilities, with ongoing investments in plant reliability and logistics capabilities [19][25] - The El Dorado ammonia project achieved precertification status under the Fertilizer Institute's Verified Ammonia Carbon Intensity Program, which is expected to aid in securing sales agreements for low carbon ammonia [22][23] - The company has decided to pause the Houston Ship Channel project due to uncertainties in capital costs and demand for low carbon ammonia [24][26] Management's Comments on Operating Environment and Future Outlook - Management noted that US tariffs have created uncertainty for planned spending and potential capital projects, but do not anticipate a significant impact on business [5][8] - The company expects to capitalize on pricing strength for UAN and AN sales in the upcoming months, with meaningful increases in volumes compared to the prior year [20] - Management remains optimistic about the growth of the industrial business and the stability of earnings through cost-plus contracts [18][26] Other Important Information - The company plans to participate in upcoming industry conferences, including the UBS Energy Transition and Decarbonization Conference and the Deutsche Bank Industrials Materials and Building Products Conference [26] - The company is evaluating opportunities to increase production capacity in both nitric acid and ammonium nitrate [12] Q&A Session Summary Question: Thoughts on realized pricing setup for the second quarter - Management indicated good price increases for UAN products and is well positioned to take advantage of that [30] Question: Updated capital allocation priorities after pausing the Houston Ship Channel project - Management stated there are no new projects committed, focusing on improving existing facilities and considering stock buybacks and debt reduction [31][32] Question: Impact of deregulation on permitting - Management believes the impact will be minimal, with some positive developments in conversations with the EPA regarding low carbon ammonia projects [37][38] Question: Dynamics of pent-up demand for UAN - Management noted that higher corn acreage and insufficient imports are driving demand and impacting pricing [40] Question: Potential upgrade capacity projects - Management stated it is too early to discuss specific costs or margins related to potential expansion projects [44] Question: Disparity in ammonia pricing inland versus Tampa - Management indicated pricing is consistent with seasonal expectations and not significantly out of the ordinary [55] Question: Risks of delays in carbon projects at El Dorado - Management expressed confidence in meeting timelines for carbon projects, with equipment orders being placed soon [60][62]

Financial Data and Key Metrics Changes - The company reported a 4% improvement in overall sales volumes quarter over quarter, driven by higher ammonia production and better performance from upgrading plants [5][6] - Adjusted EBITDA decreased from $33 million in Q1 2024 to $29 million in Q1 2025, attributed to improved sales volumes and higher pricing for ammonia and ammonium nitrate, offset by significantly higher natural gas costs [16][18] - The cash balance remains strong, and the leverage ratio is in line with target levels for a mid-cycle pricing environment [18] Business Line Data and Key Metrics Changes - Sales volumes for ammonium nitrate and UAN improved significantly, with UAN prices increasing to $350 per ton, a 73% rise from the low price of fall 2024 [13][15] - The company continues to ramp up ammonium nitrate solution volumes, driven by strong demand in the copper mining sector [10][12] - The industrial contracts have grown from less than 20% in 2021 to approximately 30% by the end of Q1 2025, with expectations to reach 35% by year-end [17] Market Data and Key Metrics Changes - Domestic pricing for urea has seen a significant uplift due to U.S. tariffs, with expectations for this trend to persist through the spring planting season [7][8] - The USDA reported an increase in corn planting intentions to 95.3 million acres, up from 90.6 million acres last year, driving strong fertilizer demand [15][16] - Urea prices have strengthened considerably, now above $500 per ton, influenced by seasonal demand and a lack of imports [13] Company Strategy and Development Direction - The company is focusing on improving the reliability and efficiency of its facilities, with ongoing investments in plant reliability and logistics capabilities [18][24] - The El Dorado ammonia project achieved precertification status under the Fertilizer Institute's Verified Ammonia Carbon Intensity Program, which is expected to aid in securing sales agreements for low carbon ammonia [21][22] - The Houston Ship Channel project has been paused due to uncertainties in capital costs and demand for low carbon ammonia, but the company remains open to revisiting it in the future [23][45] Management's Comments on Operating Environment and Future Outlook - Management noted that U.S. tariffs have created uncertainty for planned spending and potential capital projects, but they do not anticipate a significant impact on business [4][6] - The company expects to benefit from lower natural gas costs moving into May, which will positively impact margins [19] - Management expressed confidence in achieving production and sales volume improvements while optimizing the industrial business for stability and predictability in earnings [24] Other Important Information - The company plans to participate in upcoming industry conferences, including the UBS Energy Transition and Decarbonization Conference and the Deutsche Bank Industrials Materials and Building Products Conference [25] - The turnaround for the El Dorado site has been pushed to the first half of 2026, increasing ammonia production outlook for 2025 by approximately 30,000 tons [20] Q&A Session Summary Question: Insights on UAN pricing and ammonia trends - Management indicated strong price increases for UAN products and is positioned to capitalize on this, while ammonia prices are expected to decline [28][29] Question: Capital allocation priorities post-Houston Ship Channel project pause - Management stated there are no new projects committed currently, focusing on improving existing facilities and considering stock buybacks and debt reduction [30][31] Question: Impact of deregulation on permitting - Management believes the impact will be minimal, with some positive developments in conversations with the EPA regarding low carbon ammonia projects [34][36] Question: Dynamics of pent-up demand for UAN - The increase in corn acreage and insufficient imports are driving demand and impacting pricing [38][39] Question: Potential upgrade capacity projects - Management is exploring expansion capabilities but has not committed to any projects yet, emphasizing the need for finalized engineering studies [42][43] Question: Risks associated with carbon projects at El Dorado - Management expressed confidence in meeting timelines for carbon projects, with no expected delays [56][57] Question: Disparity in ammonia pricing inland versus Tampa - Pricing remains consistent with seasonal expectations, with no significant disparities noted [53]

Financial Performance - Q4'24 net sales increased to $135 million from $133 million in Q4'23[19] - Adjusted EBITDA for Q4'24 was $38 million, a year-over-year improvement from $25 million in Q4'23[19, 6] - Adjusted EBITDA margin increased to 28% in Q4'24 from 19% in Q4'23[19] - The company repurchased approximately $222 million in principal amount of Senior Secured Notes and 4.6 million shares of common stock over the 24-months ended 12/31/24[28] Market and Pricing Trends - Tampa Ammonia price was $460 per metric ton as of February 26, 2025, compared to $445 per metric ton on February 26, 2024[14] - UAN (NOLA) price was $290 per short ton as of February 26, 2025, compared to $245 per short ton on February 26, 2024[14] - Natural gas price (NYMEX Spot Price) was $3.86 per MMBtu as of February 26, 2025, compared to $1.66 per MMBtu on February 26, 2024[14] 2025 Outlook - Ammonia production is projected to be between 790,000 and 820,000 tons in 2025, compared to 757,000 tons in 2024[29] - AN and Nitric Acid sales volume is expected to be between 590,000 and 620,000 short tons in 2025, compared to 554,000 short tons in 2024[29] - UAN sales volume is projected to be between 620,000 and 650,000 short tons in 2025, compared to 483,000 short tons in 2024[29] - Ammonia sales volume is expected to be between 250,000 and 280,000 short tons in 2025, compared to 321,000 short tons in 2024[29]

Company Performance - LSB reported a quarterly loss of $0.02 per share, matching the Zacks Consensus Estimate, compared to earnings of $0.12 per share a year ago, representing an earnings surprise of -200% [1] - The company posted revenues of $143.43 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.04%, and an increase from year-ago revenues of $138.2 million [2] - Over the last four quarters, LSB has surpassed consensus EPS estimates just once, but has topped consensus revenue estimates three times [2] Stock Performance - LSB shares have declined approximately 22.4% since the beginning of the year, while the S&P 500 has decreased by 6% [3] - The current consensus EPS estimate for the upcoming quarter is $0.23 on $154 million in revenues, and $0.27 on $551.05 million in revenues for the current fiscal year [7] Industry Outlook - The Zacks Industry Rank for Chemical - Diversified is currently in the bottom 15% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact LSB's stock performance [5]

[Q1 2025 Performance Summary](index=1&type=section&id=LSB%20INDUSTRIES%2C%20INC.%20REPORTS%20OPERATING%20RESULTS%20FOR%20THE%202025%20FIRST%20QUARTER) The company reported higher sales volumes and net sales, but a net loss due to increased natural gas costs [Financial and Operational Highlights](index=1&type=section&id=First%20Quarter%202025%20Results%20and%20Recent%20Highlights) Q1 2025 saw a 4% sales volume increase and higher net sales, but a net loss due to rising natural gas costs Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $143.4 million | $138.2 million | | Net (Loss) Income | $(1.6) million | $5.6 million | | Diluted EPS | $(0.02) | $0.08 | | Adjusted EBITDA | $29.1 million | $32.6 million | - Overall sales volumes improved by **4% year-over-year**, with higher UAN and AN volumes driven by reliability and operational improvements[3](index=3&type=chunk) - The positive impact of higher sales volumes and stronger ammonia selling prices was offset by **materially higher natural gas prices**, the primary driver for the decline in net income and Adjusted EBITDA[3](index=3&type=chunk) - The company maintained a strong safety record with **zero recordable injuries** in the first quarter of 2025[4](index=4&type=chunk) [Management Commentary and Strategy](index=2&type=section&id=Management%20Commentary%20and%20Strategy) Management prioritizes business reliability and balance sheet strength, advancing the El Dorado project while pausing the Houston Ship Channel initiative - Capital allocation strategy focuses first on investments to improve business reliability, followed by balancing investments in profit-increasing projects while managing leverage[5](index=5&type=chunk) - The El Dorado low carbon ammonia project received pre-certification status and is expected to begin production of low carbon ammonium nitrate solution by the **end of 2026**[5](index=5&type=chunk) - The Houston Ship Channel project has been **put on pause** due to U.S. tariff-related price increases, global economic uncertainties, and a slower-than-anticipated ramp-up of low carbon ammonia demand[5](index=5&type=chunk) [Market and Business Outlook](index=2&type=section&id=Market%20Outlook) The company maintains a positive outlook driven by stable industrial demand, healthy ammonia and UAN markets, and supportive corn market dynamics [Market Outlook](index=2&type=section&id=Market%20Outlook) The market outlook is positive, supported by stable industrial business, healthy ammonia pricing, and strong UAN and agricultural demand - The industrial business remains consistent with **stable domestic demand** for nitric acid and robust demand for ammonium nitrate (AN) from mining and infrastructure sectors[6](index=6&type=chunk) - The ammonia market is healthy, with **attractive pricing** driven by balanced inventories, strong agricultural demand, and potential support from tariffs on imported volumes[6](index=6&type=chunk) - UAN pricing has strengthened due to a combination of steady exports, lower imports, strong demand, and the influence of a **robust global urea market**[6](index=6&type=chunk) - Corn market dynamics are supportive of strong fertilizer demand, with expectations for U.S. corn acres planted in Spring 2025 to be **above historical average levels**[9](index=9&type=chunk) [Low Carbon Ammonia Projects](index=3&type=section&id=Low%20Carbon%20Ammonia%20Project%20Summary) The El Dorado CCS project aims to capture significant CO2 emissions, awaiting EPA permit approval for a late 2026 operational start - The El Dorado CCS project is expected to capture **400,000-500,000 metric tons of CO2 per year**, reducing Scope 1 emissions by 25%[9](index=9&type=chunk) - The project is projected to yield between **305,000 and 380,000 metric tons of low carbon ammonia per year**[9](index=9&type=chunk) - Commencement of construction is pending EPA approval of the Class VI permit, with operations anticipated to begin by the **end of 2026**[9](index=9&type=chunk) [Detailed Financial Results](index=3&type=section&id=Detailed%20Financial%20Results) This section provides a comprehensive breakdown of the company's financial performance, including product sales, costs, consolidated statements, and non-GAAP reconciliations [First Quarter Results Overview](index=3&type=section&id=First%20Quarter%20Results%20Overview) Q1 2025 net sales rose due to higher volumes, but profitability declined significantly as a result of a 62% increase in natural gas costs [Sales and Volume Analysis](index=3&type=section&id=Sales%20and%20Volume%20Analysis) Net Sales by Product (In Thousands) | Product | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | AN & Nitric Acid | $57,618 | $48,435 | 19% | | UAN | $43,865 | $41,192 | 6% | | Ammonia | $33,272 | $39,530 | (16)% | | Other | $8,677 | $9,047 | (4)% | | **Total Net Sales** | **$143,432** | **$138,204** | **4%** | Product Volumes (short tons sold) | Product | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | AN & Nitric Acid | 150,531 | 128,801 | 17% | | UAN | 148,565 | 134,933 | 10% | | Ammonia | 73,403 | 94,831 | (23)% | | **Total** | **372,499** | **358,565** | **4%** | [Pricing and Cost Analysis](index=5&type=section&id=Pricing%20and%20Cost%20Analysis) Average Selling Prices (per short ton) | Product | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | AN & Nitric Acid | $324 | $319 | 2% | | UAN | $253 | $265 | (5)% | | Ammonia | $432 | $403 | 7% | Input Costs (Natural Gas) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Avg. natural gas cost/MMBtu in cost of materials | $3.73 | $2.82 | 32% | | Avg. natural gas cost/MMBtu used in production | $3.77 | $2.33 | 62% | [Consolidated Financial Statements](index=9&type=section&id=Consolidated%20Financial%20Statements) The statements detail a quarterly net loss of $1.6 million and total assets of $1.176 billion as of March 31, 2025 [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 Statement of Operations (In Thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $143,432 | $138,204 | | Gross profit | $14,384 | $22,278 | | Operating income | $4,468 | $11,260 | | (Loss) income before income taxes | $(1,923) | $6,226 | | **Net (loss) income** | **$(1,640)** | **$5,623** | | Diluted EPS | $(0.02) | $0.08 | [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) Balance Sheet Highlights (In Thousands) | Metric | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $15,030 | $20,230 | | Short-term investments | $148,516 | $163,971 | | Total current assets | $299,327 | $309,714 | | Total assets | $1,175,938 | $1,187,188 | | Total current liabilities | $119,472 | $135,634 | | Long-term debt, net | $478,174 | $476,163 | | Total stockholders' equity | $490,563 | $491,640 | | **Total liabilities and stockholders' equity** | **$1,175,938** | **$1,187,188** | [Non-GAAP Reconciliations](index=12&type=section&id=Non-GAAP%20Reconciliations) This section provides reconciliations for non-GAAP measures, including Adjusted EBITDA and netback sales, to their closest GAAP equivalents [EBITDA and Adjusted EBITDA Reconciliation](index=12&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) Reconciliation of Net (Loss) Income to Adjusted EBITDA (In Thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net (loss) income | $(1,640) | $5,623 | | D&A | $20,151 | $17,148 | | Interest, Taxes, etc. | $6,049 | $5,604 | | **EBITDA** | **$24,560** | **$28,375** | | Stock-based compensation | $1,733 | $1,393 | | Turnaround costs | $1,995 | $915 | | Other adjustments | $795 | $1,912 | | **Adjusted EBITDA** | **$29,083** | **$32,595** | [Sales Price Reconciliation](index=13&type=section&id=Ammonia%2C%20AN%2C%20Nitric%20Acid%2C%20UAN%20Sales%20Price%20Reconciliation) Reconciliation to Netback Sales (In Thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Ammonia, AN, Nitric Acid, UAN net sales | $134,755 | $129,157 | | Less freight and other | $16,780 | $14,192 | | **Netback sales** | **$117,975** | **$114,965** |

LSB (LXU) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower. ...

Company Overview - LSB Industries (LXU) shares increased by 8.6% to $5.44 in the last trading session, following a significant volume of shares traded, contrasting with a 28.9% loss over the past four weeks [1] - The rally in LXU's stock is attributed to a surge in material stocks after President Trump announced a 90-day pause on reciprocal tariffs for most countries [1] Earnings Expectations - LSB is projected to report quarterly earnings of $0.02 per share, reflecting an 83.3% decrease year-over-year, with revenues expected to be $134 million, down 3% from the same quarter last year [2] - The consensus EPS estimate for LSB has been revised down by 16.4% over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [3] Industry Comparison - LSB operates within the Zacks Chemical - Diversified industry, where another company, Stepan Co. (SCL), saw its stock close 9.8% higher at $49.69, despite a -23.3% return over the past month [3] - For Stepan Co., the consensus EPS estimate has increased by 1.2% over the past month to $0.52, representing an 18.8% decline from the previous year's report, and it currently holds a Zacks Rank of 5 (Strong Sell) [4]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 2024 was $38 million, a significant increase from $25 million in Q4 2023, despite a $7 million impact from a planned turnaround at the Cherokee facility [24][25] - Excluding the turnaround impact, adjusted EBITDA would have been approximately $45 million, reflecting improved manufacturing operations [26] Business Line Data and Key Metrics Changes - Strong production and sales volume increases were noted in ammonium nitrate and nitric acid operations compared to Q4 2023 [6] - Daily production rates for urea and UAN reached their highest levels on record following the completion of the ammonia plant turnaround at the Cherokee facility [7] Market Data and Key Metrics Changes - Healthy demand from primary industrial end markets, particularly in copper and gold production, supported strong pricing and sales [13][14] - UAN prices have steadily increased, driven by rising urea prices and low U.S. imports compared to historical levels [16] - U.S. corn prices rose to nearly $5 per bushel, incentivizing farmers to apply nitrogen fertilizers [20] Company Strategy and Development Direction - The company aims to grow its industrial business, focusing on contractual arrangements that provide stable margins and visibility into future results [12] - Investments in reliability and safety of facilities are ongoing, with a focus on increasing production volumes in 2025 [7][29] - The company is advancing two energy transition projects, including low-carbon ammonia initiatives, with expectations for significant future demand [44][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the prospects for 2025, highlighting improvements in reliability and production capacity [49] - The company is navigating challenges related to the EPA permit process for its low-carbon projects but remains confident in the demand for low-carbon ammonia [44][50] Other Important Information - The company repurchased approximately $222 million in senior secured notes and returned capital to shareholders through stock repurchases [28] - Capital expenditures for 2024 were $92 million, with a focus on reliability and capacity expansion [27] Q&A Session Summary Question: What is the significance of the $600 price for low-carbon ammonia? - Management indicated that $600 per ton is a price point that could facilitate transactions with customers, based on market conversations [56] Question: How would Canadian tariffs impact U.S. producers? - Management noted that tariffs could create opportunities for U.S. producers as Canada is a net exporter of ammonia to the U.S., potentially increasing prices [62] Question: What is the outlook for the Houston Ship Channel project? - Management emphasized the importance of securing long-term contracts before proceeding with the project, aiming to reduce capital costs to below $600 per ton [68][86] Question: What are the expectations for ammonia production rates? - Management projected that ammonia production rates could reach 95% by the end of 2026, with a focus on improving operational efficiency [72] Question: How are pricing dynamics for ammonium nitrate evolving? - Management explained that changes in supply and demand dynamics, including shifts away from AN by major off-takers, are affecting pricing [95]

Q4'24 Earnings Presentation February 27, 2025 1 Forward-Looking Statements Statements in this presentation that are not historical are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include , but are not limited to, statements regarding: our business strategy; anticipated future operating results and operating expenses, cash ...