Lsb Industries, Inc. · NYSE:LXU
Lsb Industries — Q4 2023 Earnings Presentation
15 slides from Lsb Industries's earnings presentation, Mar 6, 2024
Slide 1: Q4 2023 Earnings Presentation
Q4 2023 EARNINGS PRESENTATION March 6, 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: 2023 Overview – Volume Increase Offset by Lower Prices
2023 Overview –Volume Increase Offset by Lower Prices Strong safety performance with a TRIR of 0.33 for full-year 2023 Solid year-over-year increase in ammonia production volume Sales volume increased year-over-year, offset by weaker pricing Announced collaboration with INPEX, Air Liquide an
Slide 5: Reliability Initiatives Driving Increased Ammonia Production
Reliability Initiatives Driving Increased Ammonia Production Annual Ammonia Production Volume 900 850 34 875 800 (000’s of tons) 21 780-800 62 750 816 732 700 765 650 600 (1) 2021 2022 2023 2024E Target Ammonia Produced Impact of Turnarounds (1) Based on capacity utilization of 95% 5
Slide 6: Market Overview
Market Overview (1) 10-Year Corn Price $10 U.S. corn price remains near 10-year average level $8 $6 Corn supply expected to increase in the coming months $4 Corn prices remain resilient despite rising stock-to-use ratios $2 $0 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar
Slide 7: Structural Changes in Nitrogen Markets with Sustained Commodity Fundamentals
Structural Changes in Nitrogen Markets with Sustained Commodity Fundamentals US natural gas drives cost Rising US corn stocks-to-use ratio US grain prices remain above competitiveness pressuring prices 25-year historical averages Natural Gas Costs Corn Prices Grain Prices US$/MMBtu US$/bu STU US$/bu
Slide 8: Full Year 2023 Financial Results
Full Year 2023 Financial Results 2023 2022 Net Sales $594 M $902 M Sales volume increased year-over-year Net sales and adjusted EBITDA down year- Adjusted EBITDA1 $133 M $415 M over-year due to lower pricing Adjusted Margin impact of lower pricing partially offset 22% 46% EBITDA Margin1 by low
Slide 9: Fourth Quarter – 2023 vs. 2022
Fourth Quarter – 2023 vs. 2022 $ in millions $105 $4 $50 ($78) $25 ($6) $9 (1) (1) Pricing includes approximately $31 million benefit of lower natural gas costs and $1 million benefit from lower sulfur raw material costs 9
Slide 10: Solid Balance Sheet and Cash Flow
Solid Balance Sheet and Cash Flow 12/31/23 12/31/22 Cash & ST Inv. $306 M $394 M Healthy cash balance and robust liquidity position supports balanced capital allocation strategy Total Debt $582 $712 Net debt/TTM Adjusted EBITDA remains below target Net Debt1/ TTM maximum level of 2.5X Adj. E
Slide 11: 2024 Outlook
2024 Outlook Production & Sales Volume 2024E Costs and Expenses 2024E 2023A Variable Plant Expenses: Ammonia Production (tons): 780,000 - 800,000 816,000 Natural Gas Feedstock ~32 MMBtu/ton of ammonia Sales Volume (tons): Freight1 12% – 13% of sales AN & Nitric Acid 560,000 – 580,000 529,000 Electr
Slide 12: El Dorado Low-Carbon Ammonia – High Returns with Minimal Capex
El Dorado Low-Carbon Ammonia – High Returns with Minimal Capex Begin CCS facility construction Signed agreement Filed application Expect Begin with Lapis Energy for Class VI Expect Class VI Class VI operations Permit with EPA permit to permit to construct Commence inject drilling of wells 2022 2023
Slide 13: World Scale Low-Carbon Ammonia Plant on Houston Ship Channel
World Scale Low-Carbon Ammonia Plant on Houston Ship Channel Pursuing off-take agreements Feasibility Begin Begin End FEED study pre-FEED FEED study Estimated study study project Final Investment completion of End pre-FEED 32-36 months study Decision 2023 2024 2025 2026 2027 2028 2029 LSB and INPE
Slide 14: Appendix
Appendix
Slide 15: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended Year Ended LSB Consolidated ($ In Thousands) December 31, December 31, 2023 2022 2023 2022 Net (loss) income $ (5,347) $ 65,870 $ 27,923 $ 230,347 Plus: Interest expense and interest income, net 6,237 9,908 26,500 41,407 Net (gain) loss on extinguish