Slide 1: Q2 2024 Earnings Presentation
Q2 2024 EARNINGS PRESENTATION August 1, 2024
Slide 2: Forward-Looking Statements
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 assu
Slide 3: Stockholder Rights Plan in Place to Preserve Substantial NOL's
Stockholder Rights Plan in Place to Preserve Substantial NOL’s Our Section 382 Stockholder Rights Plan (the “Rights Plan”) is intended to protect our substantial net operating losses (“NOLs”), carryforwards and other tax attributes. We can generally use our NOLs and other tax attributes to reduc
Slide 4: Q2'24 Overview
Q2’24 Overview Signed agreement with Freeport Minerals to supply low carbon ammonium nitrate solution (ANS) Steady Sequential Adjusted EBITDA Improvement 45 Solid sequential and year-over-year improvement in UAN 40 nitric acid and ANS sales volumes 35 De-risked balance sheet through bond repur
Slide 5: Five-Year ANS Offtake Agreement Validates Low Carbon Strategy
Five-Year ANS Offtake Agreement Validates Low Carbon Strategy Agreement: Agreement to supply Freeport Minerals with up to 150,000 short tons of low carbon ammonium nitrate solution (ANS) per year Five-year agreement commences January 1, 2025, with a phasing in of the low carbon contracted volume
Slide 6: Industrial Market Overview
Industrial Market Overview (1) 2,500 U.S. New Housing Starts (000’s of units) 2,000 Industrial business stable with potentially improving outlook 1,500 Steady demand for nitric acid supported by the strength of 1,000 the U.S. economy and robust consumer spending levels 500 U.S. new housing sta
Slide 7: Nitrogen Product Pricing and Input Costs
Nitrogen Product Pricing and Input Costs(1) 10-Year Tampa Ammonia Price $2,000 ($ per metric ton) $1,500 Nitrogen product prices holding up well $1,000 Tampa ammonia price settled $60 higher at $475/MT for August, following healthy summer fill program and $500 supported by tight supply-demand dy
Slide 8: Grain Price Trends
Grain Price Trends Corn Price v. Stocks-to-Use $7 20% (USD/bushel) U.S. corn prices down on supply increase expectation $6 15% Stocks-to-use ratio (STU) and USDA forecast for 2024 $5 10% planted acres remain higher than historical average $4 5% Yields threatened by tempestuous weather forecast
Slide 9: Q2'24 Financial Results
Q2’24 Financial Results Q2’24 Q2’23 Net Sales $140 M $166 M Sales volumes for nitric acid, ANS and UAN increased year-over-year Adjusted EBITDA1 $41 M $47 M Net sales and adjusted EBITDA down year- over-year due to lower pricing and lower sales Adjusted EBITDA Margin1 29% 28% volumes of HDAN and
Slide 10: Second Quarter – 2024 vs. 2023
Second Quarter – 2024 vs. 2023 $ in millions $16 $47 ($11) $41 ($5) ($6) $33 (1) (1) Other primarily reflects higher fixed costs and SG&A 10
Slide 11: Solid Balance Sheet and Cash Flow
Solid Balance Sheet and Cash Flow 6/30/24 6/30/23 Healthy cash balance and robust liquidity position supports balanced capital allocation strategy Cash & ST Inv. $216 M $314 M Net debt/TTM Adjusted EBITDA of 2.5X Total Debt $486 M $584 M Solid free cash flow despite elevated capex investment
Slide 12: El Dorado Low Carbon Ammonia Project
El Dorado Low Carbon Ammonia Project Project Highlights Roles Capital investment for LSB is minimal Ammonia production at 100% owner of ammonia production facility Lapis will capture and sequester between 400,000 and 500,000 metric tons of CO2 El Dorado, AR facility produced annually in the co
Slide 13: Houston Ship Channel Ammonia Project
Houston Ship Channel Ammonia Project Project Highlights Roles Ammonia loop equity Experienced North American ammonia producer New 1.1 million TPA low carbon ammonia plant at an attractive site in Deer partner and operator To own (~ 50%) and operate the ammonia loop Park, on the Houston Ship Ch
Slide 14: Appendix
Appendix
Slide 15: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation* Three Months Ended LSB Consolidated ($ In Thousands) June 30, 2024 2023 Net income $ 9,555 $ 25,095 Plus: Interest expense and interest income, net 5,445 8,065 Net (gain) on extinguishment of debt (1,879) (8,644) Depreciation and amortization 18,784 17,103 Provision f
Slide 16: Trailing Twelve Month EBITDA and Adjusted EBITDA
Trailing Twelve Month EBITDA and Adjusted EBITDA* Quarter Ended TTM 6/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Net income (loss) 2.1 9.6 5.6 (5.3) (7.7) Plus: Interest expense and interest income, net 21.3 5.4 6.1 6.2 3.5 Gain on extinguishment of debt (3.0) (1.9) (1.1) - - Depreciation and