| --- | --- | --- | --- | --- | |-----------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | LSB Industries | | | | | | Investor Presentation (NYSE: LXU) | | | | | | August 2022 | | | | | | | | | | | Legal Disclaimers 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 ...

```markdown PART I – Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for June 30, 2022, reflect significant year-over-year growth in total assets, net sales, and net income, driven by higher cash, new investments, and increased long-term debt [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2022, total assets increased to **$1.51 billion** from **$1.13 billion** at December 31, 2021, primarily due to higher cash, new short-term investments, and increased long-term debt, with stockholders' equity also growing Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $125,231 | $82,144 | | Short-term investments | $325,566 | $— | | Total current assets | $638,026 | $243,136 | | Property, plant and equipment, net | $839,411 | $858,480 | | **Total Assets** | **$1,507,714** | **$1,132,840** | | **Liabilities & Equity** | | | | Total current liabilities | $117,292 | $104,929 | | Long-term debt, net | $704,427 | $518,190 | | Total stockholders' equity | $609,559 | $460,490 | | **Total Liabilities and Stockholders' Equity** | **$1,507,714** | **$1,132,840** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three and six months ended June 30, 2022, the company reported a significant increase in profitability, with Q2 net sales more than doubling to **$284.8 million**, resulting in **$103.4 million** net income and **$1.15** diluted EPS Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $284,803 | $140,696 | $483,784 | $238,812 | | Gross profit | $142,924 | $35,008 | $233,654 | $43,068 | | Operating income | $132,658 | $26,457 | $212,629 | $25,987 | | Net income | $103,399 | $23,670 | $162,165 | $10,391 | | Diluted EPS | $1.15 | $0.32 | $1.81 | $(0.28) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2022, net cash from operating activities substantially increased to **$220.8 million**, with **$341.9 million** used in investing for short-term investments, and **$164.2 million** provided by financing activities, mainly from new debt Six Months Ended June 30, Cash Flow Summary (in thousands) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $220,813 | $30,581 | | Net cash used by investing activities | $(341,934) | $(14,549) | | Net cash provided (used) by financing activities | $164,208 | $(14,671) | | **Net increase in cash and cash equivalents** | **$43,087** | **$1,361** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide details on accounting policies, debt structure, and revenue disaggregation, highlighting the issuance of an additional **$200 million** in Senior Secured Notes, a **$50 million** stock repurchase program, and significant net sales increases across all major product categories - The company is engaged in the manufacture and sale of chemical products, including ammonia, fertilizers (HDAN, UAN), and various industrial acids, from four facilities[26](index=26&type=chunk) - In May 2022, the Board authorized a stock repurchase program for up to **$50 million** of outstanding common stock. During Q2 2022, approximately **0.7 million shares** were repurchased at an average cost of **$18 per share**[30](index=30&type=chunk) - In March 2022, the company issued an additional **$200 million** of its 6.25% Senior Secured Notes due 2028, bringing the total outstanding to **$700 million**[46](index=46&type=chunk)[49](index=49&type=chunk) Disaggregated Net Sales by Product (in thousands) | Product | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | | :--- | :--- | :--- | :--- | :--- | | AN & Nitric Acid | $96,142 | $56,739 | $167,942 | $106,576 | | Urea ammonium nitrate (UAN) | $76,986 | $29,899 | $133,555 | $47,537 | | Ammonia | $89,444 | $38,541 | $148,786 | $59,706 | | Other | $22,231 | $15,517 | $33,501 | $24,993 | | **Total net sales** | **$284,803** | **$140,696** | **$483,784** | **$238,812** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q2 2022 performance to significantly higher selling prices driven by favorable market dynamics, while focusing on operational reliability, product mix optimization, and low-carbon ammonia opportunities, with sufficient liquidity for projected **$65 million** in capital expenditures [Overview and Key Initiatives](index=19&type=section&id=Overview%20and%20Key%20Initiatives) Key initiatives for 2022 focus on EHS, reliability, product mix optimization, and low-carbon ammonia strategy, including agreements for blue ammonia at El Dorado and green ammonia at Pryor, with product selling prices significantly rising due to strong demand - Key strategic initiatives include improving plant safety and reliability, broadening product distribution, and capitalizing on low carbon (blue/green) ammonia and clean energy opportunities[107](index=107&type=chunk) - The company entered an agreement with Lapis Energy to capture and sequester over **450,000 metric tons of CO2 annually** at its El Dorado facility, enabling the production of over **375,000 metric tons of blue ammonia**[110](index=110&type=chunk) - Agreements were signed with Thyssenkrupp Uhde and Bloom Energy to develop a project to produce approximately **30,000 metric tons of green ammonia per year** at the Pryor facility[111](index=111&type=chunk) [Key Industry and Operational Factors](index=21&type=section&id=Key%20Industry%20and%20Operational%20Factors) Fertilizer prices are supported by strong global grain demand, high European natural gas costs, and Russia-Ukraine conflict disruptions, with natural gas feedstock costs rising to **$7.15/MMBtu** in Q2 2022, and the company targeting **750,000 to 780,000 tons** of ammonia production for 2022 - Elevated fertilizer prices are supported by strong corn prices, high natural gas costs in Europe impacting global production, and the Russia-Ukraine conflict constraining global supply[113](index=113&type=chunk)[114](index=114&type=chunk) Natural Gas Purchase Metrics | Metric | Q2 2022 | Q2 2021 | | :--- | :--- | :--- | | Natural gas volumes (MMBtu in millions) | 7.4 | 7.5 | | Natural gas average cost per MMBtu | $7.15 | $2.78 | - The company targets **750,000 to 780,000 tons** of ammonia production for 2022, with planned turnarounds at the El Dorado and Pryor facilities scheduled for Q3 2022[130](index=130&type=chunk)[131](index=131&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) For Q2 2022, net sales increased **102%** to **$284.8 million**, driven by significantly higher average selling prices (up **96% to 160%**) across all key products, which surged gross profit to **$142.9 million** and operating income to **$132.7 million** Q2 2022 vs Q2 2021 Financial Performance (in thousands) | Metric | Q2 2022 | Q2 2021 | Change | | :--- | :--- | :--- | :--- | | Total net sales | $284,803 | $140,696 | $144,107 | | Gross profit | $142,924 | $35,008 | $107,916 | | Operating income | $132,658 | $26,457 | $106,201 | Q2 Average Selling Prices and Sales Volumes | Product | Avg. Selling Price/ton (2022) | Avg. Selling Price/ton (2021) | % Change | Tons Sold (2022) | Tons Sold (2021) | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | AN & Nitric Acid | $593 | $303 | 96% | 162,014 | 186,962 | (13)% | | UAN | $590 | $245 | 141% | 130,561 | 121,995 | 7% | | Ammonia | $1,184 | $456 | 160% | 75,526 | 84,540 | (11)% | - The increase in gross profit was primarily driven by higher sales prices, partially offset by lower agricultural product volumes and higher average natural gas costs (**$7.15/MMBtu** in Q2 2022 vs. **$2.78/MMBtu** in Q2 2021)[146](index=146&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$125.2 million** in cash and **$63.4 million** available on its revolving credit facility as of June 30, 2022, supported by **$220.8 million** in operating cash flow for H1 2022, sufficient to fund **$65 million** in projected capital expenditures Capitalization Summary (in millions) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $125.2 | $82.1 | | Total long-term debt, including current portion, net | $715.4 | $527.6 | | Total stockholders' equity | $609.6 | $460.5 | - As of June 30, 2022, the company had approximately **$63.4 million** of availability under its Working Capital Revolver Loan[171](index=171&type=chunk) - For the full year 2022, capital expenditures are expected to be approximately **$65 million**, planned for reliability and maintenance capital projects[171](index=171&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from fluctuating commodity prices for products and natural gas feedstock, and variable interest rates on its revolving credit facility, though as of June 30, 2022, there were no outstanding natural gas contracts or variable-rate borrowings - The company is exposed to commodity price risk as its products (e.g., ammonia) and raw materials (e.g., natural gas) are commodities with fluctuating prices[190](index=190&type=chunk) - As of June 30, 2022, the company had no outstanding borrowings on its variable-rate revolving credit facility, thus limiting its current exposure to interest rate risk[191](index=191&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2022, the CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level - Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2022[192](index=192&type=chunk) PART II – Other Information [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal proceedings in the ordinary course of business, with further details provided in Note 5 of the Condensed Consolidated Financial Statements - The company is involved in various legal proceedings and claims arising in the ordinary course of business. Further details are provided in Note 5 to the financial statements[202](index=202&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) Disclosure of risk factors under this item is not required for smaller reporting companies and is therefore not included in this report - Disclosure of risk factors under this item is not required for smaller reporting companies[203](index=203&type=chunk) [Other Part II Items](index=36&type=section&id=Other%20Part%20II%20Items) Items 2, 3, 4, and 5 of Part II are not applicable for this reporting period, while Item 6 provides an index to the exhibits filed with the report - Items 2, 3, 4, and 5 of Part II are not applicable for this reporting period[204](index=204&type=chunk) ```

LSB Industries, Inc. (NYSE:LXU) Q2 2022 Earnings Conference Call July 28, 2022 10:00 AM ET Company Participants Fred Buonocore - President of Investor Relations Mark Behrman - Chief Executive Officer Cheryl Maguire - Chief Financial Officer Conference Call Participants Rob McGuire - Granite Research Operator Good day, ladies and gentlemen, and welcome to your LSB Industries Second Quarter 2022 Earnings Call. All lines have been placed in a listen-only mode, and the floor will be opened for your questions an ...

| --- | --- | --- | --- | --- | |----------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | Q2 2022 Earnings | | | | | | July 28, 2022 Presentation | | | | | | | | | | | 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 ...

| --- | --- | --- | --- | --- | |------------------------------|----------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | Q1 2022 | Earnings | | | | | May 4, 2022 Presentation | | | | | | | | | | | 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, uncertainti ...

Financial Data and Key Metrics Changes - The company reported a record adjusted EBITDA of over $101 million for Q1 2022, significantly up from $17.3 million in Q1 2021 [17][20] - Adjusted EPS for the first quarter was $0.69, with expectations for continued strong profitability in upcoming quarters [18] - Total liquidity improved to over $400 million, following a $200 million offering of senior secured notes [18][19] Business Line Data and Key Metrics Changes - The strong pricing environment positively impacted all business lines, with significant increases in selling prices for fertilizers and industrial products [17][22] - The company experienced a sales volume headwind of approximately $6 million in EBITDA due to delayed fertilizer purchases caused by wet weather [20] Market Data and Key Metrics Changes - Commodity prices, particularly for corn, remain significantly above year-ago levels, with corn prices at their highest since 2012 [11] - Fertilizer pricing has also seen substantial increases, with NOLA UAN benchmark pricing around $625 per ton, more than double from the previous year [22][23] Company Strategy and Development Direction - The company aims to capitalize on the strong pricing environment to generate significant free cash flow for growth opportunities, including de-bottlenecking projects to increase production capacity [29][31] - There is a focus on clean ammonia and hydrogen production, with plans to develop blue ammonia projects in partnership with Lapis Energy [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about market fundamentals remaining strong across end markets, expecting another record year of growth in profitability and cash flow [24] - The geopolitical situation, particularly the impact of the Russian invasion of Ukraine, is expected to continue influencing commodity prices and supply dynamics [13][14] Other Important Information - The company has a net operating loss carryforward of approximately $600 million, shielding it from cash taxes for several quarters, with an expected effective tax rate of around 17% for the year [25] - The company is evaluating multiple projects for organic growth and is also considering M&A opportunities to increase scale [32][62] Q&A Session Summary Question: Financial impact of the blue ammonia project - Management confirmed that Lapis will fund 100% of the capital costs, with minimal outlay from the company until operations begin in 2025, expecting profitability from higher prices of blue ammonia [41][42] Question: Q2 EBITDA guidance - The company expects Q2 adjusted EBITDA to be 50% to 70% above Q1 2022 results, nearly four times higher than Q2 2021 [43][44] Question: Inventory and volume recovery - Management indicated that higher inventory levels should allow for volume recovery in Q2, assuming improved weather conditions [47][48] Question: Tax expense explanation - The tax expense recorded is non-cash due to net operating losses, with an expected effective tax rate of around 17% for the year [49][50] Question: M&A activity and market conditions - Management noted that while there are significant organic growth opportunities, M&A discussions are ongoing, but timing remains uncertain due to current market conditions [62][67]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ 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 1-7677 LSB Industries, Inc. (Exact name of Registrant as specified in its charter) Delaware 73-1015226 (State or other jurisdiction of incorpor ...

LSB Industries Inc (NYSE:LXU) Q4 2021 Earnings Conference Call February 24, 2022 10:00 AM ET Company Participants Fredric Buonocore - VP of IR Mark Behrman - President, CEO & Director Cheryl Maguire - Executive VP & CFO Conference Call Participants Steve Ferazani - Sidoti Rob McGuire - Granite Research DeForest Hinman - Walthausen & Co Brian DiRubbio - Baird Operator Good day and welcome to the LSB Industries Fourth Quarter 2021 Conference Call. [Operator Instructions] As a reminder, this conference is bein ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 Or ☐ 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: 1-7677 LSB INDUSTRIES, INC. (Exact Name of Registrant as Specified in its Charter) (State of or other Jurisdiction ...

| --- | --- | --- | --- | |-----------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | LSB Industries | | | | | Investor Presentation (NYSE: LXU) | | | | | November 2021 | | | | | | | | | Safe Harbor Statement 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 a ...