Slide 1: Q4'24 Earnings Presentation
Q4'24 Earnings Presentation February 27, 2025 1
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 assumpt
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 as amended and restated (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 othe
Slide 4: Q4' Overview
Q4’ 24 Overview Strong Y/Y Adjusted EBITDA(1) Solid year-over-year increases in nitric acid and AN sales volumes 40 Improvement 35 Completed injury-free turnaround of Cherokee ammonia plant 30 25 $ Millions UAN volumes benefitted from Q3’24 Pryor urea capacity expansion 20 15 10 Outlook for
Slide 5: Industrial Market Overview
Industrial Market Overview(1) Industrial Production: Mining: Copper, Nickel, Lead and Zinc 110 (Index 2017=100) Demand for ammonium nitrate (AN) bolstered by U.S. mining of metals, including copper for data centers and technology 100 infrastructure, as well as quarrying/aggregate production for 90
Slide 6: 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 $1,000 Nitrogen product prices holding up well $500 • UAN prices supported by global urea price strength; US becoming a net exporter amidst $0 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 M
Slide 7: Grain Price Trends
Grain Price Trends(1) Corn Price v. Stocks-to-Use $7 20% (USD/bushel) $6 15% U.S. corn prices projected to rally into 2025 $5 10% • Corn futures prices have risen from Q3’24 $4 5% lows reflecting USDA outlook for smaller $3 0% supplies and decline in ending stocks relative 2015 2016 2017 2018 2019
Slide 8: Q4'24 Financial Results
Q4’24 Financial Results $ in millions except EPS Q4’24 Q4’23 Net Sales $135 M $133 M Net sales up year-over-year reflecting production improvements, despite turnaround Adjusted $38 M $25 M at Cherokee facility in Q4’24 EBITDA1 Increase in adjusted EBITDA and adjusted Adjusted EBITDA Margin2 28%
Slide 9: Q4'24 Growth Despite Turnaround
Q4’24 Growth Despite Turnaround $ in millions $50 $7 $45 $45 $40 $2 $38 $2 $35 $7 $30 $2 $25 $25 $20 $15 $10 $5 $0 Q4'23 (1) Selling Variable Volume/(1) Lower Q4'24 Estimated Lost Normalized (1) (1) (3) Adj. EBITDA Prices Costs (2) Mix Fixed Costs Adj. EBITDA Sales Volumes Q4'24 Adj. EBITDA (3) from
Slide 10: Solid Balance Sheet with Returns-Focused Capital Allocation
Solid Balance Sheet with Returns-Focused Capital Allocation $ in millions 12/31/24 12/31/23 Increased capex reflects investments in: • Turnaround of Cherokee facility ammonia plant in Q4’24 Cash & ST Inv. $184 M $306 M • Full turnaround of Pryor facility in Q3’24 Total Debt $485 M $582 M • Expansi
Slide 11: 2025 Outlook
2025 Outlook Production & Sales Volume 2025E Costs and Expenses 2025E 2024A Fixed Costs: Fixed Plant Expenses (ex-depr.) $140M – $145M Ammonia Production (tons): 790,000 – 820,000 757,000 Depreciation Expense $80M – $85M Sales Volume (tons): Logistics/Railcar Lease Expense $20M – $25M AN & Nitric A
Slide 12: Driving Downstream Volume Increases to Enhance Profitability
Driving Downstream Volume Increases to Enhance Profitability AN and Nitric Acid Sales Volume (ST) UAN Sales Volume (ST) Ammonia Sales Volume (ST) Marked increase UAN sales volume expected in downstream positively impacted by product sales volumes as both downstream improved reliability reliability e
Slide 13: Incremental Earnings Opportunity Independent of Pricing Environment
Incremental Earnings Opportunity Independent of Pricing Environment Incremental Percentage of EBITDA Opportunity EBITDA Levers Opportunity(1) Captured To-Date(1) Key Actions • Key margin enhancement projects, including urea expansion at Margin Enhancement $5 to $10 Pryor, completed in 2024, addition
Slide 14: Our Low Carbon Ammonia Energy Transition Projects
Our Low Carbon Ammonia Energy Transition Projects* 2022 2023 2024 2025 2026 2027 2028 2029 2030 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H Expect Expect Class VI Class VI Drilling Permit to Permit to stratigraphic Construct Inject CO2 wells El Dorado 305-380K MT/y NH3 400-500K MT/y CO2 Si
Slide 15: Appendix
Appendix 15
Slide 16: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation Three Months Ended Year Ended LSB Consolidated ($ In Thousands) December 31, December 31, 2024 2023 2024 2023 Net (loss) income $ (9,149) $ (5,347) $ (19,353) $ 27,923 Plus: Interest expense and interest income, net 6,106 6,237 23,087 26,500 Gain on extingui
Slide 17: Trailing Twelve Month EBITDA and Adjusted EBITDA
Trailing Twelve Month EBITDA and Adjusted EBITDA* TTM 12/31/2024 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Net income (loss) (19.4) (9.1) (25.4) 9.6 5.6 Plus: Interest expense, net 23.1 6.1 5.4 5.4 6.1 Gain on extinguishment of debt (3.0) - - (1.9) (1.1) Depreciation and amortization 74.5 21.9 16.7 1
Slide 18: El Dorado Low Carbon Ammonia Project
El Dorado Low Carbon Ammonia Project Project Highlights Capital investment for LSB is minimal Lapis will capture and sequester between 400,000 and 500,000 metric tons of CO2 produced annually in the course of El Dorado’s ammonia production We expect Lapis to receive 45Q federal tax credit of $
Slide 19: Houston Ship Channel Ammonia Project
Houston Ship Channel Ammonia Project Project Highlights New 1.1 million TPA low carbon ammonia plant at an attractive site in Deer Park, on the Houston Ship Channel – access to low-cost natural gas, key pipelines, and deepwater logistics Focused on the domestic and export markets, particularly p