LXU - Earnings call transcript Q4 2020

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Operator

Greetings, and welcome to LSB Industries' Fourth Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference call is being recorded. to Senior call Vice like host, to now Carver, Kristy President would turn over the your I and Treasurer. you. Thank

begin. may You

Kristy Carver

Good morning, everyone.

a Chief future these note expectations to are that of Joining Mark cause call current will variety Maguire, the intent, on statements. today's performance, based Chief Executive And not the on forward-looking our company's because our Please me they Cheryl are could Officer; guarantees and results Officer. call Financial and projections, include of and statements today factors Behrman, actual are materially. the differ

call non-GAAP call further to over like At remarks. this press of the include the reconciliations regarding this to As Investors opening website, GAAP results. go our will and references results information results, please section non-GAAP I'd the turn in to to time, forward-looking see and for for ahead lsbindustries.com, Mark statements release of

Mark Behrman

everyone. call your could and you We're good that you, LSB in interest morning Thank this Industries. morning, Kristy, glad our and in participate appreciate

be record operating for the record our lot has about in We're change and a in There committed across pandemic. the way call want and year to team conference team nitrogen speak of on of best-in-class We year. sales despite COVID thank and you performance. XXXX, last LSB have in much all undergone to our is in we safety operations, and safety proud as trends for records, impact setting particularly be performance. chemical first I fundamental excited the we to success XXXX, to strong being for country, striving thinks new entire the our volume to excellence about achieving performance rolled a the several the production the had safety from vaccines extremely out favorable about performance to of markets. a the to optimistic our the

a operated partner rate the and record XXXX for safety facility a our for recordable the low of a full-year Baytown recordable with was having Pryor facility without of year. X.XX, for the total injury entire incident Our operate we

dedicated these initiative and change produce Goal are have results. to that employees embraced cultural enabled has to us Our a Zero our

not with in only performance, operational record volumes production by-product performance, our which of Our in the our sales particularly record XXXX. impressive results, associated by safety complications team when safety great COVID-XX. and generated but take as considering pride we is The strong the the should is in improved operational also evidenced in performance such added

entire our and homes put corporate prevent follow pandemic from facilities continues the almost families employees. drags virus spreading a our of protocols strictly manufacturing our organization the to we've offices into and to on, As in within place the year-ago the

with made we've of represents the at continuous compared operate a investments years, last to While increases tunnel, volumes year-over-year manufacturing operations. over in the there light of vaccines, end if year. be COVID seems been introduction least have the at and distribution generated significant this the need We end planning to in through of environment as we a the plant as XXXX. in on The in improvement the sales our of and on return to focus capabilities volume quarter well growth a upgrading our reliability product fourth as the several we'll

quarter. of also fourth We in XXXX the benefited absence from the turnarounds

price of since robust South global the drivers particularly forecast disruption a Slide which facilities, year's a healthy risen our we pricing XXXX. market. commodity has demand the of we pricing yields X drive a product over Chinese and the nearly performance which enough XX% quarter with on the to the job optimizing the XXXX, already impacts U.S. as continued its products our includes did in operating are We've state planted demand from weeks industrial to in and and our surge been provides of anticipated, increase particularly in of and reducing rationalizing depressed fall, acres a in prices, is prices control, into our a and prices levels products, suppressed respect was crop believe, year including factors, of in due that the and, impacting from for we business demand our commodity fertilizer six remained pre-pandemic Approximately demand. ago. on a what for recovery has recent the within is and the seen very the good collection and selling manufacturing of of of exports during experienced last capitalize we COVID-XX, focusing While demand increase agricultural for to to Ag is and fertilizers. and focusing trends were America aspects prices been last second most has below our which the increase be on our that a the end evolving market over mining significant since for on this an and the weather XXXX. million our which million Fueling can strength approximately of the corn, to level update we've corn industrial acres, levels, that slight to USDA's By balance. XX and well costs XX positioned unfolding region for a control,

Industrial end since Turning recovery most Mining markets to our seen have to Slide of With meaningful business, spring. X. our last and respect

forced production mid-March. in One primary end the pandemic onset the which cease nitric markets the of is produce for of the acid the at was industry, we auto to

a from than homebuilding input XX%. April's end January, rebounded acid major Nitric is vehicle a sales U.S. light lows have As variety also last by of of into of more the products.

permit growing given view relatively demand as drop. sales new aforementioned mass and current we we're prices U.S. and of markets copper applications, towards over of products the and electric increases to end manufacture copper applications This the products could the nitrate, industrial across in North in years. particularly rates we XX starts new building ammonium pre-pandemic favorable our that increase in of have prices an key have production have been indicators trends highest to primarily American of to As respect XXXX, end and to With sizable for rebounded near and continue the rollout extent January, continued of drivers demand pointing the levels. housing the as continues market, the metal such mining levels low-density seeing vehicles. to COVID-XX and this copper the course mining from almost future, the foreseeable mining for vaccination accelerate the drive activity in where thereafter, emerging to risen case Collectively, the

for availability The Over extreme several last a of the with overall severe temperatures the natural of commercial natural gas grid, to severely wells homes impacting very and demand in fuel, in the cold And natural significant natural region, for much predominantly and to increasing gas higher-than-normal order unprecedented buildings. demand north, top produce forcing of These cold country switch natural to our course, limited in the weeks, natural gas temperatures the as many that, production froze people much causing points to rise frozen, Texas supplier comes and power, gas heat shortage for factors prices Many affected or many cold the commodity their users requirements. industrial to a elected severely On their from were curtailed of found gas, to significantly nitrogen plants. resulted resulting to forced natural of many experienced to electrical to and to areas weather, Oklahoma businesses. wind producers turbines idle electrical be producers wind their Oklahoma to up, in for in gas. gas. where on is Texas, utilities

further we these reduce cold widespread supply market disruptions recent of supply to products for that could available the tight XXXX. nitrogen prior pricing nitrogen believe the outlook of With in the the boost the U.S. substantially strong weeks in coming already to production U.S. the and weather,

Before the of Leidos, on the expansion we contractor I'd call Cheryl, to litigation that Dorado ammonia brought the an general El I project. to our against like update hand provide over plant

now year. was to trial that the of not has immune. of rescheduled, We in pandemic the trials occur caused fall As -- XXXX the many this ours believe be will

And are we our merits. guarantee believe can't the to We heard we forward case jury. serious looking outcome litigation, having in by has case any our while

QX go Now detail Cheryl? results. more will Cheryl our about financial into

Cheryl Maguire

XXXX Thanks, Partially that quarter volumes. have facilities overall million performance, Mark, the offsetting to quarter made the fourth the Lower us UAN million. for by generate $X.X outcomes combined and morning. over of The throughout adjusted impact we to good million. to absence this The production, year, for allowed EBITDA last and and for operating operating of several Page better XXXX. the pricing sales X fourth prices years. both $XX.X impacted investments headwinds our improvement company due improvement EBITDA that the adjusted performance records year-over-year fought our any approximately adjusted continued bridges of negatively production XXXX of in EBITDA we $X.X with progress was are directly in our attributable turnarounds was net to quarter selling fourth ammonia

anticipated and growers corn with fertilizers hovering is bushel, an prices prices per expected However, in around for sales $X.XX increase seek higher maximize as yields. volumes to drive to farmer income

month, significantly and the In products for very pricing have optimistic makes fact, the we seen our last that over year. us for improve,

power of X. Page the to Turning illustrates earnings This chart our business.

those selling economic both we natural as made COVID-XX gas in we result think XXXX to added purposes, sales the and of to have true comparative the illustrates improvements prices a back experienced estimate this slowdown. underlying For We volumes we've the that prices business. match analysis operating for also and were lost we normalized pandemic-related

Though would adjustments, are fourth are to $XX on pricing mentioned XXX% of positive mining XXXX headwinds EBITDA quarter million. million and approximately fourth $X.X quarter by these than in market the of in positioned $XX on almost weakness today. adjusted quarter in the With been have the fertilizer adjusted impacted million, industrial we seeing the have XXXX, momentum higher and believe we earlier, well reason EBITDA as pricing demand to we capitalize approximately

believe our for cash Turning our business. which margins we gross adjusted have past of to the profit margins underlying XX, the years, three Page outlined we represents

maintain and a costs, see production lower this from Benchmark you ton slide, and average drop sales higher costs lower able As annual with volumes, to in the Tampa XXXX, per cost Ammonia the resulting despite margins of consistent product. gas significant in since fixed reduced fixed had natural we been can price

pricing cash million in outlines coupled and made liquidity. With consolidated to expect XX $XX the the our agricultural capital our structure. mid we of improvements markets, to increase margin gross with and would approximately $XX upgrading adjusted quarter total further XX% the of of margins to ended production Page with We to-date, range. million continued recovery low

believe We previous will ways and capital. structure improved to-date, be actively we on an that stated lower recovery end for improvements achieving capital benefit products those calls, made are operating our with environment and our mining continued our seeking a pricing As in our cost in overall markets, combined fertilizer efforts. improve and to industrial of

Additionally, several credit to what a monitor. Today, we last call trend markets XXX%. notes that months have we friendly, will at our continue callable senior over issuer been are the would

premium However, in the XXXX, of to call declines May XXX.X%.

We you On evaluate with year ammonia for these avenues Slide months. we're cost see continue and production look you XX ahead. to sales discussing expected Slides of our full-year our lower the capital the of can how to XX, about an outlook XXXX. On several volumes in we and to provide coming and XX, forward thinking to

production margin total million Turnaround have and $X projects. additionally, three approximately note in maintenance rates, operating turnaround other of enhancement tons ammonia facility, result million at sales XXXX. at and, across the third to approximately planned approximately a this expected for during quarter CapEx industrial in resulting to lower As XX-day also for $XX products which improvement approximately planned million we the production UAN It downstream from turnaround improvement a despite that ammonia, of is expect CapEx XX,XXX includes expenses in and which are the sites Cherokee for of our continued is and of related year-over-year XXXX the to be $XX period. million, loss will Cherokee $XX important and we of EH&S

continue acid And more XXXX, in upgrade we our this first we of of a offtake downstream Additionally, nitric focus ammonia result into that a began expect to quarter. to new higher-value begin as production. ramp-up agreement X-year the

across mind, awards, contract further with range to volumes a to result in recovery includes variable SG&A mining legal fees volume and is COVID-related outlook volumes to our expect we industrial as for Please Leidos, view, to that XX this Slide in higher our fall. of representative new expect XXXX. industrial of balance also thing current approximately our sales $X in as of leading well the and keep in of to sales mining impact, product note we from which agricultural, continue end seek will optimize We fixed to mentioned; markets. covers coupled against and million evolve SG&A One expenses which, as XXXX. plant trial Mark important up is occur

disruption we quarter we of latter in of over trends caused the are were across U.S. Please underway. in As up as many February into of and and QX pricing mind production and the about HDAN, and will The keep think past us weather many QX. well that expect this January of the there cold parts taken earlier and, month, ammonia moved a key back in pricing. be orders to in month reflected historically as that couple dramatically UAN, half reflective first sales be QX first industry. and others Pricing for our has for to the the our part of QX XXXX, therefore, across

As over gas production weather temperatures at the at pricing at XXXX. feedstocks for XXXX facility couple have in full trends, higher Pryor lows the recent days. next curtailments early ammonia to And expect the normalized unusual at of fully were to cost remain gas off Dorado expect Natural and recent production the we of excluding has back lifted, and be El spike from full experienced we gas event, in our XXXX. rebound versus seen are

compared gas $X.XX $X approximately to has of XXXX. all impact first first of XXXX. events, of approximately points the as the in thus together, MMBTu, weather Putting these recent averaged of half XXXX natural the recent to the despite far, half higher to XXXX, per weather-related first event, to than data the in the expect be we XX% quarter QX of XX% EBITDA higher Excluding

sensitivity call prices per company at like Appendix view of natural our back to turn selling the reflective over $X XX. our alternative The the and and to on that more prices up. correlated. between We to to the current UAN Slide point a and this our business, for price. power MMBtu UAN Mark, grid back gas turn the of I not given is feel ammonia out assumes Mark Tampa it earnings that wrap I'd has EBITDA Before an And included of be relationship to we've highly illustrates grid Tampa different I'll ammonia in proven now prices

Mark Behrman

for past believe call, fertilizer prices Thank our on and expect the this financial has impact impact fertilizer on for proven impact I there you, that on quarter. Cheryl. a has outlook but an optimism on What time, has with have that sustained two The reason an pandemic financial of true. we be been XXXX, the impact respect results, greater been weak to said XXXX period on historically quarters, third was of demand to pricing. the had quarter fourth has first pressure however, quarter eased to to in somewhat continue I a results for over and October, our back the still our it in

corn as current prompt they earlier, planted the have and mentioned demand likely acres since which that levels result significant maximize I future the in this they've market. if for prices approximately fertilizers and highest corn prices indicated As particularly been at growers will corn to should XX XXXX, of yields, million futures by to spring, are seek remain

past countries product will a imports we in to overall on, our between have focused product from that year, particular over urea Additionally, dynamic the UAN. the supply reduce quantity seeing meaningful U.S. One were market. and the historical data which points remain in that downward is recent of been domestic a though, trend shipping to we several of the relationship

the As has past you urea price years, at typically above can basis. nitrogen see on over a the or Slide equivalent XX, UAN of on XX traded

urea for at selling discount a of mid-XXXX, period. UAN the began since to However, most

the represents the sharply, products narrowing, UAN-to-urea relationship. to prices seen which increase selling a believe last with Over discount the product reversion both historical month, we have

effect natural prices the discussed I've Additionally, the of gas in on nitrogen market. recent quarters,

While not pressuring that our product less they they marginal world selling chemical to oversupply margins, they around nitrogen imports might and the into otherwise which run, increased producers product benefit also facilities encourage prices. U.S., to leads efficient the gross run while

course However, including Asian and natural Western with gas prices. the the sit tend high-end helped XXXX. positions you the higher to the improve made and prices improve in XXXX, U.S. world, about financial production, can who have producers in Slide of progress very our which selling that producers excited reduce and around the see as on over performance the us marginal we of cost curve, to at has product seen we've European We're XX,

First and made progress is we've operating performance. foremost in our the

year, plans and throughout both production Slide the our company-wide, record operated as in we team ammonia the Our on fact, and well past year, UAN had XX. reflected volumes for for

we we've were room the for pleased increased with production still delivered volume XXXX. improvement, we in While got

volume the of XX. with performance expect are We strong on summarized which we to focused several we initiatives the manufacturing operations, that performance, further to improve our help with are over our of XXXX. of financial Slide to we us have continue on continue production numerous expect Along improvement of course that other

handling, nitrogen and storage thanks as most our be recent leaders that for to will this go positioned Thank ammonia pricing be about and knowledge our on the market But reducing that records commitment will are ammonia. current manufacturing, for strategy translate for results. and market We many clean optimistic our disciplined challenging markets questions. years believe platform a ability logistics. mentioned XX, as financial as as develops, That will the into best sales We're the concludes XXXX and carbon our down to growth in to are the green strong currently due believe to with as of our since this a you. your on history. global leverage global we consistent business view in most prepared very Finally, and production as of we've thrived energy Slide trends we happy the on take in XXXX enter production are XXXX our clearly emissions, show. now to team, full-year to the ammonia focus it seen in positive the and improved focus producers working developing of we remarks, and demand ways, existing one

Operator

we time, Instructions]. conducting this a At session. will [Operator be question-and-answer

comes question with first Our with proceed Sachs. your from line Goldman Travis Edwards the of question. Please

Travis Edwards

Hey, good morning. Thanks the for this I appreciate detail color, the morning. and

to there of EDC been date? on detail on Just ahead just And details regarding EBITDA. you in any last to and disruptions just to impact maybe normally a related provided wanted for the some the work on on around would first you confirm Pryor that shared later earlier was any you the a then, were week, note, maintenance get able have saved XQ,

Mark Behrman

morning, Travis. Good

we gas as gas from press forward both weren't downtime to yes, gas. I in out weather the that We the say, were on unplanned said we've unhedged worry the on don't related at would spike put -- releases a ultimately, curtailed have we got in We to think We will didn't So gas. prices. material both have about event, a locations. purchased And I impact. on

the were able I we to gas some purchased, said, will I marginal. with that impact, downtime So forward back be coupling think as we sell that had

Travis Edwards

Got it.

selling gas or less that whatever should offset of from disruption? So some otherwise, it, loss back more of

Mark Behrman

offset for the that, first months going minimal. I Yes. impact to but, completely if know be six it's think the I will again, don't

Travis Edwards

I maybe market team, even got adjust outages That's this in those former maybe it. now And those whether that -- some it's has the thinking length about the of helpful. conditions. because the then, know, been past, outages there to in the planned, strong outages, of or Ag tendency Got timing you've with year maybe later

around a as So XQ where timing the is there if variability Or early any Ag that think scenario we of are, we adjust, the I variability yes, improving as continue any sort on of timing just outage, really front? year, about see as the there expect, pricing I that should wondering, that in that, as would of was outage to market length Cherokee you you improve? the that? Is are, of they conditions strong guess,

Mark Behrman

last to and Well, two this earnings have quarter's if that We've to, year. one pushed year we'd at next call, actually we go indicated Cherokee we year, back from Pryor I one outages actually at guess, Pryor. this

now on of So all basically, our are three-year cycles. facilities

optimal I the would make important year. our It -- don't year for is can believe think this maintain push sure that scheduled would I turnaround so really that's think that them. we rates. that we the Cherokee for third we that that I it's And we run they facilities at

here I So that we see don't really as today. sit

Travis Edwards

million that, total quarter, Okay. That's maybe we it in you know come to around in some bit a on But color our color. we've a assuming for out able again, tend $XXX that in the are you I sort take that be of so the gets to know I And -- the in provided talked And actually could preferred the and be just know market, but where, go-forward, helpful so a hold, chunk me that hit each think more the good release. past, past, about XXXX to little the again, about more to threshold comments just conditions about event? you one talked we do to I of but you've that this expectation upsized as refinancing, any discuss decent shares? should if those your order EBITDA scenario of think

Mark Behrman

Well, conditions as mentioned, for good think yes, pretty I the right now, Cheryl are refinancing.

over little a to down drops premium XXX%. call the May, in So

advantageous becomes to us refi. economical much more much it for So and more

will it. we that consider at we'll and -- So look clearly

and think on I and important. improve I that's rate think that we could terms, probably

that. it, to take a look upsizing we'll have I think at as far As really

ourselves preferred, that and to and of leverage of out, a Even as One to I expensive, that like leave times, are the we've is things we'd again. the number reducing don't take we not position leverage. is want we're the stated increasing overlevered where in though on a our focused

are a with reduce number So we or discussing it I working preferred repay either to our ways if even think consider we that maybe of on might can that work we just of see and/or terms. holder other some

think the slightly, So don't financial consider increasing but really size the want especially I maybe ramping I overlevered performance. the turning saying I to and ourselves guess we'll longwinded around, we're answer in get markets an as -- are we're up of position,

Operator

comes Our Please Steve from with next with proceed Ferazani Sidoti. question your question.

Steve Ferazani

In terms in of balance would I -- the early the your of rise a you I of you contracts. and spot know assessment and between off, find like fertilizer and was while. cost-plus that pursuing I the prices just nitric to the weeks acid know after contracts, kicking how right contract affect whether to get the want assessment those more

the Just affect pursuing of last weeks a few happened general, future over what's the might contracts? cost-plus

Mark Behrman

Yes.

with has down disruption contract kicked plants. Gulf the had region, particular but the is that So Cheryl that customer some off, in also mentioned their has

their it's say I'd And the sooner weeks, bit. more been anticipate sales our We is a couple that a they're touch-and-go little ramping back first of weeks, than when than So anticipating customer back it's of think online. to that. I few hopefully plant no in fully

facilities sales, talk got a as right? far assets, this, and same about agricultural collection thing. talk we've competitors integrated -- three industrial our look, we versus others talk about As We've mining of the as got

assets. manufacturing those within flexibility got You've

money end looking production, we we mining our are the can where as think industrial the like maximize to of also we I business, to the make day, make. and at as so And much

in we -- that protection can us. and that. to do So like at I industrial business it the based flex we'll downside continue that. and But of we gives on the And do stability where we market industrial think the mining look the our and pricing,

Steve Ferazani

take while And from can almost now? a then now to you that that, pricing your was right commented levels? discount. Are UAN confident on slow that UAN there, repricing. What's it you the historic more it like and Because a permanent return recovery becoming looked improvement on in the for

Mark Behrman

domestic don't historical premium. I would it the that confident. to A don't narrowed we're relationship, to where say discount trade as to Yes. would back right market that I we as of that can of the the not that year-and-a-half or do a do we I much say with has fairly at know it lot that at over I But full balanced. now, get I'm I that that, last UAN production some. the discount have know going is trades in on expect and UAN based a that supply/demand has amount so. dynamics will has think

Steve Ferazani

QX? QX? versus compared Okay. one you on and improvement to that QX versus higher to it I'm the pricing given up to And QX is improvement that significant last just the expect QX then I'm guidance? one of that fact a QX assuming quick ramp there's guidance. generally would QX would the volume, Essentially, assuming you match Or more a percentage

Cheryl Maguire

Yes.

Steve, pricing, in -- that half improvement in our February orders correct. XX% I XX% that's as to think were EBITDA the in the in taken remarks, to mean, we respect QX. of did year. With out first I I that's So back mentioned point January and the

the you'll see in the think majority I QX. yes, upside So of

Operator

Value Please question your question. Our from JP Corporation. with comes next Global Investment Geygan with proceed

JP Geygan

your I time. appreciate Good morning.

guidance XXX XXXX for acid Your XXX,XXX nitric is and higher actual AN, XXXX at production. other about than tons your

the to along acid line, contracts, comments, [ph] nitric us but of of same in prepared can economics you and those Assume attributable And your contracts? that's remind the L-band your then might new contracts you you on maybe which capacity? mentioned contract industrial or have you Can expect in elaborate in, products you XXXX where awards products. in new mining and additional anticipating

Mark Behrman

Yes, good morning, JP. so yes, you're right. --

in acid. grown nitric contract as is got, other some customers, with the but -- do a growth lot products. have some bases non-Ag new pretty It other has seeing customer and well of brought in that are on some to We significant we that primarily award new we

a nitric think a think capacity mean, I where good really and that I earlier I we So continue the I out one done to at acid think is this I said have we'll look production AN our in lot point, to and selling grow we've solution, in capacity. primarily of questions, as But excess job of to business.

do question a we where can optimize it's now and on market we So how pricing. based of optimize

if non-fertilizer got our side terms we've Now of contracts contracted for. obviously, take business, and on we stipulated that the we're conditions

we've take So feel we little enough advantage pretty a that we there. But think flexibility quickly. we prices less could flexibility of change have in got like I

JP Geygan

materially your what affect we've growth in volumes or those for markets, margins seen gross industrial adjusted Will and mining historically? your

Mark Behrman

believe don't I so. No,

JP Geygan

Okay.

little guidance either see if guidance or cost cost Turning room a variable bit to for savings additional your XXXX. curious your XXXX has fixed you come down on fixed costs? cost, versus I'm on

Cheryl Maguire

morning, Good Yes. JP.

I Mark have talked think course been of fixed and on say and XXXX million I savings I'd over working we've the both $X and XXXX. that into costs about -- of

I we that the We're come seeing to to at few provided. continuing in And so other we optimize on look able areas a costs. that may think where out you're guidance think we be

are industry on facing our are costs, some feeling. We headwinds in I'm as sure many insurance

looking So further I additional we're we're some opportunities that's our would offsetting say, there some that of improvements at. for. looking yes, that But are

JP Geygan

Okay.

to, goal reduced be to fund Mark, opportunities some I as and/or that proceeds preferred? is you a the more recognizing, retiring that. see I'm question might would you that entirely that your additional that response borrow Travis' leverage. I to you if curious to And structure question informative. recapitalization, would would Your said from around initiatives, capital -- about devoted Or would be, to about think suppose, debt growth your was ask one dollars

Mark Behrman

and for the capital of clearly number at operate to we an think operated important aspect start nice how company, is to be of that down. right? Well, allocation I mean, it we've years, I would leverage, bring significant a I think

really great tremendous not returns, Generally to projects that they're a years we've all look I been debt few able took fund we on either within it's otherwise, those because fund think at additional that So projects. had had cash the speaking, of to we'll really time. that dollar if flow those a projects, But we ago of couple projects. from

though, first probably look think, and to So deleverage. I to we'd foremost, like

consider we an would that on think certainly that's for provide keeping important But us. I capital appropriate returns, extremely could eye absolutely projects those.

JP Geygan

about the sort or think that the additional might timeframe ammonia, shape? investment of dollar amount provide which the to can over green take you as And Okay. expect of you information finally, about we of investments, nature any

Mark Behrman

I No, dollar yet. I you can a don't give think amount Yes.

participate is ammonia. for will team as think, of that us, what have we one fully I green and priorities intend advantage an really think extremely is -- we and a of to take market we the be in developing lucrative

end in we'll the what market some enter this a be maybe able year, would I we think about don't by a how to but and we'll we and do that of position to talk and that I put that hopefully would expect dollars that, the latest, locations think we're strategy So yet. to

Operator

proceed your Our the DiRubbio comes Please question. from next line Baird. with of with Brian question

Brian DiRubbio

starting headwind Should the on noted in morning. Maybe see just cost. XXXX, $X.X we did Good on with that you a -- million basis? insurance Slide the the headwind for quarterly X. I expect year, throughout

Cheryl Maguire

November Yes. XXXX. renewed of I what say insurance I mean, I is our think in we would

million about, have increase been insurance talked some $X the to a we so that we've savings able there's year-over-year million. the of cost XXXX approximately in But for offset $X with insurance that And costs.

say which -- I'd outlook of year-over-year, guidance our last on fixed identified section. so our should in kind cost be our year, compared in to And as lower we've

Brian DiRubbio

then come of to just trial? you think to we the take we litigation know should I but out about? to reconcile think expenses Leidos about for should cash. And as EBITDA, it trying how actual range I'm that up that adjusted you What

Cheryl Maguire

Yes.

the fall. as So for the trial, planned Mark is mentioned,

spend $X six we've it, of call the -- months. we six over million that so -- that And next, got expect

Mark Behrman

mean quarter. I we this spent first anything look, haven't really Yes,

part spend most latter some being see of with in the in quarter. You'll quarter, third spend second of the that the

Brian DiRubbio

remind then And me; just XXXX, Got to Pryor with Dorado off Understood. correct? pushed Pryor in you're have to next going getting that year. El then Is it. and turnarounds

Mark Behrman

the I think right drawing board that's now. on

year possibly as to so the a sit opposed think we sense. and on Or move can every to would year I doubling be in schedule year. up whether El discuss makes it Dorado we'll the one that we next actually

Brian DiRubbio

would for situation. it maybe Okay. Because coal though guys fees, about What the in this higher are potential only attractive? probably looking at order make coupon kind principal And $XXX you least think even I'm to given of about Say, finally, borrow a amount, when going to coupon, the a you $XXX the X% million million, then map million. through year? you just save refinance $X of pricing have the you

Mark Behrman

do certainly I anymore. don't Well, that a living for

we've looking I and priced. -- and at, to markets the certainly So have we -- we'll -- potential pretty conversations getting of at we're could lots that what's keen investment had lots with on of banks terms issue about

be it XXX XXX as So as point savings. much to basis could

get any see, don't we'll date. So to something not think and done. have an have get we I closer, We to there's deadline exact as

come we'll makes in put it I us. time So sense refi, to up, and a ourselves be position should think the launch opportune -- for a

Operator

the question-and-answer to over I have the would like closing session. Mark now of to We Behrman turn call for the back end reached comments.

Mark Behrman

questions. to for We so Industries. Well, reach questions, And us. much. to all further their to has I interest anyone thank in want everyone appreciate LSB feel out any you if the free Thank

Operator

conference. This concludes today's

thank at may we this you for participation. lines You time, and your disconnect your

LSB Industries (LXU) 26 Feb 212020 Q4 Earnings call transcript