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, 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 of o ...

Financial Data and Key Metrics Changes - The company reported a record adjusted EBITDA of $105 million for Q4 2022, up from $90 million in Q4 2021, reflecting a year-over-year growth of approximately 17% [11][26] - Adjusted EPS for the quarter was $0.90, indicating strong financial performance [11] - For the full year 2022, sales and adjusted EBITDA increased by 62% and 117% respectively compared to 2021 [16] Business Line Data and Key Metrics Changes - The company experienced strong demand for nitrogen fertilizers, which is expected to continue as planting season approaches [8] - Sales volumes were lower in Q4 due to planned turnaround activities and weather impacts, but higher sales volumes are anticipated in 2023 [29][44] - The company expects a significant year-over-year increase in ammonia production and sales volumes in 2023 due to no scheduled turnarounds [10][30] Market Data and Key Metrics Changes - Corn prices remain above multi-year averages, driven by global factors, and are expected to stay high through 2023, leading to increased planted acres [20][21] - The domestic end-use markets for industrial products are stronger than those in Europe and Asia, supporting business stability [22] - Natural gas prices in Europe have declined, impacting pricing for nitrogen products, but demand trends remain solid [9][51] Company Strategy and Development Direction - The company is focusing on becoming a leader in the clean energy sector, with agreements to develop low and no carbon ammonia projects [17][34] - Investments in facilities are expected to enhance safety, reliability, and production capacity, contributing to profitability [19][53] - The company aims to increase production capacity through debottlenecking initiatives and is evaluating multiple projects for this purpose [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in robust profitability and cash flow for 2023, despite expectations of lower EBITDA due to moderating nitrogen prices [45][10] - The company anticipates that the absence of turnarounds in 2023 will lead to significant production increases [39] - Management highlighted the importance of safety and environmental stewardship as core values driving operational decisions [6][35] Other Important Information - The company ended 2022 with approximately $458 million in total liquidity, including $394 million in cash and short-term investments [41] - A significant portion of cash flow from operations was returned to shareholders through share repurchases, with approximately 60% of free cash flow allocated for this purpose [25][41] - The company is pursuing a federal grant under the USDA's fertilizer production expansion program to support its growth initiatives [61][94] Q&A Session Summary Question: What is the expectation for cash taxes in 2023? - Management indicated that they do not expect to be a material cash taxpayer in 2023 due to the utilization of net operating losses [128] Question: Can you discuss the nitrogen market and distributor buying? - Management noted that there has been a standoff in the market, but they expect increased buying as the planting season approaches [60][72] Question: What is the timeline for the CCS Class 6 well permit? - Management expressed confidence in their application, stating it is comprehensive and that they expect the approval process to take 18 to 24 months [74][80] Question: How is the company addressing the drought conditions affecting crop production? - Management acknowledged the impact of droughts but noted that good crop conditions in Brazil could offset some negative effects [110][132] Question: What is the company's strategy regarding share repurchases versus debt reduction? - Management is evaluating the best use of cash, considering both share repurchases and debt reduction as viable options [125][146]

Financial Performance - Record Q4 Adjusted EBITDA was $105 million[14], compared to $90 million in Q4 2021[19] - Net sales increased by 23% year-over-year, reaching $234 million[16] compared to $190 million[16], driven by higher selling prices[30] - Adjusted EBITDA margin was 45%[18] compared to 47% in the fourth quarter of 2021[5] - The company repurchased $175 million of stock in 2022 at an average price of ~$13 per share[40] - Free Cash Flow Conversion was 79%[50] Liquidity and Debt - Cash & ST Investments were $394 million[50] as of December 31, 2022, compared to $82 million[50] as of December 31, 2021 - Total liquidity was $458 million[50] compared to $143 million[50] - Net debt/TTM Adjusted EBITDA was less than 1X[38], below the 2.5X target level[38] Production and Sales Outlook - Ammonia production for 2023 is projected to be between 830,000 and 850,000 tons[67], compared to 732,000 tons in 2022[67] - Sales volume for AN & Nitric Acid in 2023 is budgeted at 590,000 - 610,000 tons[64], compared to 589,000 tons in 2022[64] - Sales volume for UAN in 2023 is budgeted at 330,000 - 350,000 tons[67], compared to 276,000 tons in 2022[67] Low Carbon Initiatives - The company is developing a Blue Ammonia project expected to capture and sequester >450,000 MT of CO2 annually[72], reducing CO2 emissions by 25%[72] - A Green Ammonia project is planned with expected production of ~30,000 MT of green ammonia per year[72]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q 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 incorporation or organization) (I.R.S. Employer Identification No.) 3503 NW 63 Street, Suite 500, Oklahoma City, Oklahoma 73116 (Address of principal executive offices) (Zip Code) rd ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF T ...

Financial Data and Key Metrics Changes - The company reported a record adjusted EBITDA of $50 million for Q3 2022, compared to $38 million in Q3 2021, reflecting strong year-over-year growth despite two planned turnarounds [13][18][25] - Adjusted EPS for the quarter was $0.27, indicating solid profitability [14] - Total liquidity at the end of the quarter was approximately $450 million, including about $385 million in cash and short-term investments [14][17] Business Line Data and Key Metrics Changes - The company experienced lower production volumes due to planned turnarounds, resulting in a loss of approximately 53,000 tons of ammonia production [20][81] - Pricing for industrial products remained stable, with favorable trends in nitrogen fertilizer pricing due to strong demand [11][12] Market Data and Key Metrics Changes - Corn prices remained elevated due to global factors, with expectations for continued high prices into 2023, which is expected to drive increased planted acres [9][10] - The mining market has strengthened significantly, leading to increased demand and pricing for mining products [12] Company Strategy and Development Direction - The company plans to capitalize on a strong pricing environment in 2023 to generate significant free cash flow and pursue business expansion opportunities [30] - There is a focus on improving manufacturing capabilities and increasing production capacity through debottlenecking initiatives [32][39] - The company is advancing clean energy initiatives, including blue and green ammonia projects, which are expected to reduce carbon footprint and improve economics due to federal incentives [34][38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong profitability and cash flow for Q4 2022 and into 2023, despite challenges from planned turnarounds [12][25] - The company anticipates that natural gas prices will trend back to previous levels, impacting the supply-demand balance for nitrogen products [22][23] Other Important Information - The Board increased the stock repurchase program by an additional $75 million, bringing the total authorization to $175 million [15] - Capital expenditures for 2022 are expected to be in the range of $60 million to $65 million, with potential increases for 2023 [99][100] Q&A Session Summary Question: What are the assumptions regarding inland pricing for the fourth quarter? - Management expects pricing to remain in line with current levels, with normalization anticipated over 2023 [43] Question: How will the company execute on the buyback increase? - The company has opportunities to purchase stock in the market and may negotiate with large shareholders for additional repurchases [45][46] Question: Is there potential for industrial nitrogen products to tighten under gas rationing? - Management indicated that if ammonia prices rise, other nitrogen prices would likely follow, benefiting the company [49] Question: Can you clarify the USDA initiative and funding qualifications? - The company intends to apply for the grant, which is available to producers not in the top four fertilizer producers in the U.S. [54][57] Question: How is the company responding to the Mississippi River issues? - The company does not rely heavily on the river for product movement, but is monitoring the railroad situation for potential impacts [62] Question: What portion of fourth quarter revenue will be at summer field pricing? - Management confirmed that none of the fourth quarter revenue will be at summer field pricing [74] Question: What is driving the relative strength of UAN compared to urea? - UAN pricing remains strong due to favorable market conditions, while urea pricing is experiencing volatility [76][78] Question: Can you provide an update on the blue ammonia project? - The Class 6 permit application is expected to be filed by early Q2 2023, with the project anticipated to be operational by 2025 [85]

| --- | --- | --- | --- | --- | |-----------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | 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 ...