Slide 1: Q2 2023 Earnings Presentation
Q2 2023 EARNINGS PRESENTATION July 27, 2023
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: Q2'23 Overview – Healthy Volume Increase Offset by Lower Prices
Q2’23 Overview – Healthy Volume Increase Offset by Lower Prices Strong safety performance with no recordable incidents in Q2’23 and TRIR of 0.5 for TTM 6/30/23 Sales volume increased as a result of strong plant operations and successful commercial initiatives, offset by weaker pricing Selected
Slide 4: Market Overview
Market Overview (1) 10-Year Corn Price $10 U.S. corn price remains above 10-year average level $8 Supply expected to increase on strong 2023 planting $6 season $4 2023 corn use expected to increase both globally $2 and domestically $0 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 J
Slide 5: Q2'23 Financial Results
Q2’23 Financial Results Q2’23 Q2’22 Net Sales $166 M $285 M Sales volume increased as a result of strong plant operations and successful commercial initiatives Adjusted EBITDA1 $47 M $158 M Net sales and adjusted EBITDA down year over year due Adjusted to continued pricing weakness and lower tha
Slide 6: Solid Balance Sheet and Cash Flow
Solid Balance Sheet and Cash Flow 6/30/23 6/30/22 Cash & ST Inv. $314 M $451 M Liquidity position remains robust despite significant return of capital to shareholders in Q2’23 Total Debt $584 $715 Repurchased $125 million in principal amount of Net Debt1/ TTM Adj. EBITDA 1.1X 0.7X our Senior
Slide 7: Second Quarter – 2023 vs. 2022
Second Quarter – 2023 vs. 2022 $ in millions $158 $23 $47 ($9) ($125) (1) (2) (1) Selling prices includes approximately $19 million benefit of lower natural gas costs and $3 million benefit from lower sulfur raw material costs (2) Primarily related to higher costs for supplies, materials, contracto
Slide 8: Global Energy Price Spreads
Global Energy Price Spreads (1) International Natural Gas Benchmarks - Front Month ($/MMBtu) $110 U.S. Henry Hub Dutch Transfer Title Facility (TTF) U.K. National Balancing Point (NBP) Japan/Korea Marker (JKM) $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 (1) Source: Platts, ICIS Heren 8
Slide 9: Low Carbon Ammonia Projects Update
Low Carbon Ammonia Projects Update Marine Fuel MOU with Amogy to Blue Ammonia Project Green Ammonia Project develop marine fuel supply chain April 2022 agreement with Lapis Energy to May 2022 agreements with Bloom Energy and thyssenkrupp Uhde to develop a project to May 2023 memorandum of und
Slide 10: Appendix
Appendix
Slide 11: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended Six Months Ended LSB Consolidated ($ In Thousands) June 30, June 30, 2023 2022 2023 2022 Net income $ 25,095 $ 103,399 $ 40,996 $ 162,165 Plus: Interest expense and interest income, net 8,065 11,584 16,796 21,539 Net (gain) loss on extinguishment of
Slide 12: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Numerator: Net income $ 25,095 $ 103,399 $ 40,996 $ 162,165 Adjustments: (Gain) loss on extinguishment of debt (8,644) - (8,644) 113 Stock-based compensation 1,927 1,365 2,646 2,168 Legal fees (Leid