Slide 1: Q2 2022 Earnings Presentation
Q2 2022 Earnings Presentation July 28, 2022
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 assum
Slide 3: Q2'22 Overview – Record Performance with Strong Outlook
Q2’22 Overview – Record Performance with Strong Outlook Net sales up 102% year over year driven by higher selling prices and continued strong plant Q2’22 Q2’21 operations Record Q2 Adjusted EBITDA of $158.1 M - an Net Sales $284.8 M $140.7 M increase of 244% year over year Adjusted EBITDA Marg
Slide 4: Market Overview
Market Overview (1) Corn price remains well above 10-year average level 10-Year Corn Price $8 – Strong demand for ethanol in U.S. and for animal feed in China $6 $4 – Drought conditions in South America and the Western U.S. $2 – Wet weather in U.S. corn belt delayed planting season $0 Jul-12 Jul-1
Slide 5: LSB Consolidated Financial Highlights
LSB Consolidated Financial Highlights $ in millions 2Q 2022 2Q 2021 Sales $284.8 $140.7 Sales increase driven by higher pricing Operating Income $132.7 $26.5 Higher selling prices partially offset by higher gas and other raw material costs EBITDA increased in line with previously outlined EBITDA(1)
Slide 6: Second Quarter – 2022 vs. 2021
Second Quarter – 2022 vs. 2021 $ in millions 2021 Q2 Adjusted EBITDA Selling Prices, Net (1) Sales Volumes Other Costs (2) 2022 Q2 Adjusted EBITDA (1) Selling prices net of approximately $29 million impact of higher natural gas and sulfur raw material costs. (2) Primarily higher fixed costs offset b
Slide 7: Strong Bottom Line Improvement
Strong Bottom Line Improvement Adjusted EBITDA(1) $400 $380 $360 $340 Expect $320 continued $300 growth in $280 adjusted EBITDA in 2022 $260 driven by $240 strong product $ millions $220 demand and $200 pricing, $387 $180 continued $160 operational improvements $140 $191 and margin $120 enhancement
Slide 8: Global Energy Price Spreads Widen
$0 $10 $20 $30 $40 $50 $60 $70 $80 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Henry Hub Jun-21 Jul-21 TTF Global Energy Price Spreads Widen Aug-21 Sep-21 Oct-21 NBP Nov-21 Dec-21 Jan-22 Feb-22 International Natural Gas Benchmarks - Front Month ($/MMBtu) Mar-22 Apr-2
Slide 9: Key Growth Initiatives
Key Growth Initiatives • Advancing safety programs • Capacity expansion through already underway and debottlenecking of existing plants implementing new ones • Investing capital to promote • Evaluate new capacity expansion safe, reliable operations and Becoming Pursue Best in Class Organic • Other m
Slide 10: Green Ammonia Project
Green Ammonia Project 5/25/22 agreements with Bloom Energy and thyssenkrupp Uhde to develop a project to produce zero- carbon or “green” ammonia at Pryor facility Construction planned in two phases: first with Bloom supplying a 10MW solid oxide electrolyzer, followed by installation of additiona
Slide 11: Appendix
Appendix
Slide 12: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended Six Months Ended LSB Consolidated ($ In Thousands) June 30, June 30, 2022 2021 2022 2021 Net income $103,399 $23,670 $162,165 $10,391 Plus: Interest expense, net 11,584 12,290 21,539 24,662 Loss (gain) on extinguishment of debt - (10,000) 113 (10,000
Slide 13: Adjusted EBITDA Reconciliation – Trailing Twelve Months
Adjusted EBITDA Reconciliation – Trailing Twelve Months TTM TTM Twelve Months Ended LSB Consolidated ($ In Millions) June 30, June 30, December 31, December 31, December 31, 2022 2021 2021 2020 2019 Net income (loss) $195.3 ($31.7) $43.5 ($61.9) ($63.4) Plus: Interest expense, net 46.3 49.8 49.4 51.
Slide 14: Adjusted EBITDA Reconciliation – Quarterly
Adjusted EBITDA Reconciliation – Quarterly Three Months Ended LSB Consolidated ($ In Millions) December 31, March 31, June 30, September 30, December 31, March 31, 2020 2021 2021 2021 2021 2022 Net income (loss) ($21.7) ($13.3) $23.7 ($8.9) $42.1 $58.8 Plus: Interest expense net 12.6 12.4 12.3 13.0
Slide 15: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (In Thousands, Except Per Share Amounts) Numerator: Net income (loss) attributable to common stockholders $ $ 103,399 $ 12,646 $ 162,165 $ (10,507) Adjustments: Dividend requirements on Series E - 1