10/30/2024

speaker
Operator
Conference Operator

and welcome to the LSB Industries third quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Fred Bonacore, Vice President of Investor Relations. Please go ahead.

speaker
Fred Bonacore
Vice President of Investor Relations

Good morning, everyone. Joining me today are Mark Behrman, our Chairman and Chief Executive Officer, Cheryl McGuire, our Chief Financial Officer, and Damian Renwick, our Chief Commercial Officer. Please note that today's call includes forward-looking statements. These statements are based on the company's current intent, expectations, and projections. They are not guarantees of future performance, and a variety of factors could cause the actual results to differ materially. On the call, we will reference non-GAAP results. Please see the press release in the investor section of our website, lsbindustries.com, for further information regarding forward-looking statements and reconciliations of non-GAAP results to GAAP results. As a reminder, we have a stockholder rights plan to protect certain tax attributes. Please see the investor section of our website at lsbindustries.com for further important details. At this time, I'd like to go ahead and turn the call over to Mark.

speaker
Mark Behrman
Chairman and Chief Executive Officer

Thank you, Fred. Turning to page four of our presentation, we had an excellent safety performance in the third quarter. During the third quarter, we completed a major turnaround on our prior facility, and kudos to the team as it was performed injury-free. Protect what matters is our most important corporate value, because what matters most to us is keeping our team members safe. In terms of our third quarter financial performance, our adjusted EBITDA improved significantly year over year, despite performing a turnaround this year versus none in last year's third quarter. During the third quarter, we continued to invest in our prior facility. We completed a major turnaround that included many improvements to our plants. We expect that the work that was performed will lead to greater reliability and increased production volume, and we are already seeing the benefits. We continually seek to expand the production of our current manufacturing footprint. To that point, during prior's turnaround, we expanded its urea plant. This expansion is expected to allow us to produce an incremental 75,000 tons per year of UAN, an approximate 20% annual increase. We have already seen that volume ramp up to those levels during this fourth quarter. Additionally, during the third quarter, To support our growing industrial business, we completed the construction of an additional 5,000 tons of nitric acid storage at our El Dorado facility. This will now provide us with the ability to better optimize our sales mix and improve our margins. Lastly, we continue to make progress with our two energy transition projects, which I'll discuss later in the call. I'll turn the call over to Damian, who will review current market dynamics and pricing trends.

Disclaimer

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Investor presentation