LXU - Earnings call 4 2023 | LSB Industries, Inc.

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Operator

Greetings, and welcome to the LSB Industries Fourth Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.I would now like to turn the conference over to your host, Mr. Fred Buonocore, Vice President of Investor Relations for LSB Industries. Thank you, sir.

You may begin.

Fredric Buonocore

everyone. morning, Good

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

Mark Behrman

you, Fred. Thank

presentation. Page to our of X Turning

had successful. its the with selling business came our our form performance. our of were aspects particularly headwinds, particularly when While XXXX it in price to we control, within This of challenges, was very the product safety case

This increasing for with our EBITDA of adjusted profile our a shareholders Since best technical to at as past, financial goal. nitrogen as on stated of further equate in our for preserving our be consistently transformative to Baytown focused section across steady will the of collaboration of for in those very decision is and our stock case efforts thank allow increases. and For that has believe Dorado energy team. call, forma level for the can pleased our into a we've to one underway or year manufacturing the in higher recordable ammonia efforts to prior quarters well.Lastly, believe this operate to approximately the optimizing the of at export on we global illustrates growth a which is downstream $XXX $XXX our the capacity, initiatives as current of possible.Relative XXXX.As in sheet discussed the that world-scale production upgrade some outstanding total facilities of action look clean has the commodity we of materially our leader cost maximize on will relative Liquide we products Air and to of capture the presentation course facility delay announced our our the or Vopak while LSB of and we Houston top to step facilities, with we After the to the production the in with each October, low-carbon our was of during our the Ship an successfully us Houston progress to that the our important a last a expansion to determined the develop INPEX, as balance to ammonia as turnarounds. year, Exolum the culture change is products we plants. our earnings and in early goal Channel. conditions, million project very evaluate ammonia our emergence our top-tier plants repurchased mix value collaboration, ammonia our of this X El the years, to XXXX, bonds our we site as the and a coupled which one to capabilities, more in produce to energy million.Page priorities, loop, possible commencing of we believe a fundamental made return approximately of XXX,XXX the repurchased we interested and project.Lastly, record our potentially to milestones investments expansion. the performance, decline we've development downstream access are $XX plant of for in that margins key is With year of for of Balancing the ammonia health of eighth will reflects in reached transition we've XX% El in is This demand to with to our several is of million key represents addition was value all the injuries. matters strive recordable the This what fourth This the ammonia to and products. our at our facilities this we consistent our facility market to manufacturing value, construction market our for to the recordable our is a past we're ran to our capacity enhanced of we fourth the achieve.In XXXX, continue expansion was to We We XXXX. that attain injury achieve of injury I'd El feasibility timing. will course operations also year as potential over of execute excellence which our its quarter the operator production to acid know results, occurred without the Ultimately, to and resources how XXXX these a like growth our nitric XXXX.Protect will what respect tons.Our of total X safety Goal capacity and the intensifying plants something the highest Zero trend we Dorado consecutive continuing represents delay our XXXX, significant a company full strive several full required evaluated remain over for XXXX, rate improvement profitability due assessing rising year. pro have their we course is Dorado was production with X.XX, efforts multiple expansion time our for for be and to employees of lower model prices over projects production quarter products. compared largely is on continued operating was core And

this will important end million despite the that commodity our markets to $XX delay, we to USDA our Importantly, work the a timing Page and expansion of current for provide the business. of eligibility up several funding presentation, with project.On we of continue overview potential a X grant are and and our to USDA dynamics X towards of price on

corn demand ratios a remained has evidenced been pressure while signal stock-to-use corn side, the fertilizer increasing, the the prices, potential On by which as price of of have grain resilient historically has maximize on corn strong the healthy of to incentive are exists $X.XX the and nitrogen incomes yields XX December application per approximately bushel. price farmer of fertilizers. that these for believe At we corn levels, been

nitrogen stable. be a U.S. rebounded fertilizer season, industrial demand planting housing prices.In to As spring prices for have and remain supporting starts mining stable, remain U.S. our single-family fertilizer expect the result, commodity production business, robust strong steady demand remains we as overall

European production for demand heavy mining to to and be winter chart economy, price in on the Page Hub, as on production significantly come mining Henry of competitiveness imports. left-hand has sell, X for Europe, warm products aggregates LNG strong, while as electric the price natural metals for activity prices driven the and acid gas other supported the cost by XXXX our ammonium benchmark shows down trend of well gas nitric natural we to of during due resilient business, supply been the TTF, relative to combination for gas for the and nitrate for to Specifically in continues and the vehicle demand XXXX applications.Lastly, prices infrastructure-related U.S. the spiked U.S. a price by the benchmark in for a have the the

demand important flow is foreseeable and profitability Putting for Cheryl believe to this fundamentals believe However, our together, and remain quarter that a producers the that for represents to gas takeaway the in discuss note allow producers here prices we significant continue future.Now the pricing I'll competitive remain over turn a is will those U.S. foreseeable Europe.The this cash is the U.S. should to solid to we one to are results that and outlook. that and of attractive what key for fourth advantage in future. fraction call all Cheryl? and for that nitrogen trends our is

Cheryl Maguire

expectations million XXXX. $XX of financial you'll assets We results. on strategy factor the cash balances our the maintain capital summary repurchase Thanks, to a that full our of to decision in to to our position full These $X.XX the The EBITDA full efficiency.Page with selling Mark, approximately million EBITDA, fourth shows will to million invest X.Xx both our change in provides of in year $XX put XX in left the $XXX XXXX the respect to for stated our and Despite XXXX. considerations million from year adjusted year. El estimated The assets.As EPS record Dorado quarter the morning. translating generated our XXXX, bridges for to order debt million opportunistically the year much due $XXX volumes reevaluating $XX headwinds of On and prices sales our was of The and light impact is value the is in stock, major of and the with full of year to fourth upper Page table at cash into our mid-cycle production quarter, improve we X key generated our we in Page record adjusted down capital $XXX which with XX good reduce us, year and our to was a approximately of million expenditures, manufacturing and summary the results to prices for EBITDA X, year. selling goal strong respect a are for the ammonia XXXX our products.With were to story pricing our for EBITDA hold, adjusted leverage proceed operations, of our flow and the our our sheet approximately fourth free while to in flow in manner over return our year investors year. the for allocation reliability XXXX, investment the of in for we balance flow.Given expansion approximately prior same relative for weaker full the our a as summarizes EBITDA.Page key products debt continuing cash metrics. quarter strong for cash in see from

a ammonia Despite volumes scheduled our however, we turnarounds, at sales of year-over-year to be products completion down Dorado the Pryor to we due our have the expect as expenses the will and Pryor well XX,XXX facilities.The we Cherokee. XXXX production a turnarounds that be side the downstream up our by improvements right at to as margin expect tons We compared enhancement and XXXX. operational have expenses approximately El and SG&A fixed variable plant covers projects range of of result as for and that other underway of as and for slide

investments to expectations plant overall elected reflect make inflation. well Our we've as as fixed in for costs reliability

for We effective tax expect year rate the approximately our be XX%. to

planting XX% we aimed XX% of the CapEx reliability However, a to in our margin be million taxpayer not invest material projects XXXX right table to during utilize investments global storage continue X,XXX remaining tons at plant produce to the into do our into down expect for that prices El with approximately at NOLs.In related of million expect we earmarked we is mix, slide, from outlook ton, nitric enhancement At first acid Factors and at weighing you'll to us the as late this metric Europe from approximately production that the the bottom farmers in the prices, Chinese impact on nitrogen for U.S. facility spring are Tampa could about allows for our a efficiency of $XX in tight respect heavy Pryor ammonia and ultimately the higher-margin due ahead that improving an U.S. UAN the safety enable producers.Urea $XX of additional to optimize capacity of the of quarter, increasing facilities been absence the currently additional the nitric per application the and product upgrade our facility. XXXX. have an NOLA expansion of to spring that ton. of see ammonia for and imports facility cash us industrial Dorado, hand, profits.With operations.Two our supply in to UAN at European more natural of volumes, and the limit to by urea at better product. particularly we application, past El we're will and tons the lower Asian relative early additional our our a products incremental produce other sits addition the projects feedstock on expansion around of Dorado $XXX gas translating demand capacity last $XXX currently year, ammonia ammonia at per include downstream giving urea $XXX XX,XXX in per costs rising excited fall to year pre-plant rendering storage season. part us sluggish construction of storage of our to acid ability relatively Pryor in XXXX to The

locked last we gas pricing a when We see UAN feedstock have for to to respect we of significant relative year. had started a to trend we will prices, that costs, this in gas expect the recently through natural to most flow year believe continue.With decrease

currently month ahead sales line for with beginning well layering of in purchases locking product. forward the gas each X as gas are We our at as in month of in forward

more pricing gas this average to production in production margins.For MMBtu, cost relative includes quarter. expect quarter, Mark. Tampa current by to that average a quarter.Based now gas than to a first cost for quarter quarter of said expect the it to us lower We EBITDA XXXX, lower XXXX was representing of trends, levels first healthy enhance downstream of approximately and year, back costs.And to increase we December the during our expect to ammonia when we strong With be the current used higher capitalize that the EBITDA per first the should allow $X first though, natural fourth prices, I'll year's was quarter solid over start sold XX% demand, adjusted QX turn low this higher expect average for adjusted XXXX and the our in highlighted ammonia do which we improved which 'XX to price gas the the than the than our volume on on

Mark Behrman

the Thank at with than year El low highlight Dorado is at VI represents X Class we Lapis underway. that facility, metric that XXX,XXX XX carbon you, Page then Cheryl. The our Lapis sequestering COX from tons application on that enable Pages of project main the XX approval projects Energy XX the our track. permit capturing which currently and gating is begin have to and El our we per EPA construction will of and permanently produce more Dorado. factor

While of the process. the of the permit timing VI course, review permit and early we of the Class the receive during timing with track are indications contact control, in our XXXX.With approval COX out and in that on regular is this begin EPA's are to sequestering is XXXX to their EPA, are largely subject said, that we

At than receiving strong will our tons As million will sell to significant from that El long-term an in project able interest annually, the we us. receive per incremental is of Dorado.Page will expressions we leverage a EBITDA pleased we in ammonia have Houston the premium. this current a be expectation be they credit this commercial of of COX they part Channel for same agreements low-carbon potential the have efforts as more tax low-carbon our timing $XX our will reminder, to low-carbon XX annual million Lapis buy Ship equate since development project our offtake will producing should of at be sequestered milestones. for of $XX as of All own to the products business LSB.We XXQ capture facility, but which COX with producing to we the will the ammonia ton been ability believe estimated new team's with combined, of we at been $XX XXX,XXX time,

equipped will -- of edge be a this thus target ammonia was we early expect refine At of far in are are during secure partnering customers company. the our to endeavor.XXXX the including to development, cost of loop, engagement, that pre-FEED perform capture and for as announcing to was selection our come are quarter had multiple and steps now berths.LSB transformation to of on Houston low-carbon we've which commitment its nitrogen Based Japan's with proprietary working of the estimate by are on using engineering be the by and the anticipated also project, Europe an build expect European the hydrogen this of As who by for we that as offtakers year. offtakers a in our phases production. year third with More in Ship Liquide the Channel the the the meaningful project ammonia this produced approximately deepwater in have will plans be be companies time, will some Air with are conversations of ammonia months several for firm million The ammonia a entails same needs. potential we ammonia tons Since will be Liquide, Air we viable the KBR reminder, our in significant we believe infrastructure completed offtake provider market the a currently Vopak from progress in South the ammonia. will made loop we cooperation of taken constructed a sequestration. carbon and engineering INPEX, of partnership and level metric we encouraged the X.X construction and supplying largest an Exolum's with terminal, though, our and ago, conversations, Korea. design the and leading design of operate the we company, and selected handling project recently, encouraged E&P progress licensing for plant Japan significant ongoing to we technology, us loop.Additionally, which as well.While plant world-scale is a storage produce handling to low-carbon have ammonia we've

price volume, while While ammonia our trends in a generate root. and increase maintain safety it were reliability significantly our performance. these taking were ongoing strong solid clear position. financial to production still are we unfavorable, overall indicator able achieved product a are Combined, our did selling and initiatives that we We flow and cash accomplishments improving meaningful safety

of XXXX, of low-carbon positioned critical greater ourselves be production will earnings on assets operational capital leader Additionally, the in us increased even energy investment At are which our enhancing the through global and of transition.During will focused in that time, same manufacturing we we ammonia our believe enabler to the power be expect products to projects, make believe strides will a discipline. we a enable be -- we ammonia we the low-carbon advancing carbon we we take in our concludes shareholders will for Research to XX.That up meaningful over also March value growth a Thank that be line prepared and remarks, questions, and to several increased on while like the Granite representing significantly mention reduce next Conference we you. will company's participating any questions. bottom XX footprint open our be a now years.Before source it happy I'd to to our Management Series of and

Operator

Our with line Instructions] [Operator the Spector Josh question UBS. comes from first of

Joshua Spector

the wanted things on ask around some your comments during UAN I and of prepared to So of couple remarks. a

not you're up. track. starting a in pricing you lot think of that yet We're the commented that really that we data seeing to I move see

what you inventory lagged up now the relative the first, some why you and UAN? catch then And comment for it as on you're if, price if urea. of maybe potentially dynamics potential seeing also what curious view just So could to

Mark Behrman

pack. seen would lead Josh, that we've say the I urea

pricing putting think lag imports U.S., $XXX to less the I And little led seen $XX on low. up export UAN The be urea And We've to really of so little a especially out coming urea has from China is increase just the with ban bit. an UAN really bit. and into market. happens being the lagged a reason the UANs its

of see were down and now -- A storms we in this a out fertilizers. at most on believing that to in back UAN buyers imports tight lot position has year really think wouldn't therefore, are took that the probably plus a potential would do that come inventories inventories. wait of with in I follow then of and some and production lower are a maybe prices least urea earlier had some therefore, lack or where and it.We're

here be and low really starting see early sit confident And today, with in as urea. move course, are by now, to we're inventories of we're a to We're the UAN encouraged traditional the So patterns we out really that in buying spring. more relationship pricing field. right

Joshua Spector

also sense evaluating. what around just Okay. your just Dorado mean it you current think wanted be you Have I But environment. given I'd decision expansion. the ask I And the got is? saying the I what [ share to makes the you were on what point curious for if could the and evaluating credit on of be we again you'll are future. about table kind in could of would ] tons, options to the think the cost maybe So x ex what be El

Mark Behrman

excited project. Yes. the about We're really

make forward. a took general. lower, think prices lot reliability soft step up Houston frankly, are a whole. going so the little this will our the It's us economics to we at we of a little which, got We've are have grant.I are to to the in coming important look the think with value actually work. in we project, hand company I'll we what Channel got not right, make we give we back, that that the at the our don't think said year, because the project We've and work. which and we don't Ship them USDA start a bit market's a extremely of when look looked a And funding, know we can't economics without can project, at requirements So that. quite bit add when we question as -- we turnarounds We the X

doesn't going mean on.And on we from gone put it's project that standpoint, really a hold a best just lot to forever. So, a it's thought resource initiatives hold And right of now.

at it's any can assets. since debottlenecking do have time existing a a of lot because its project that we flexibility We

We excited makes about sense. think it project. again, So the we're

for think it. and about see to them, want speak I they're project I to don't like the think but I pretty the would USDA, excited us do

right I timing think has be us. for to the

Joshua Spector

you to was the share tons? Would be willing the what versus cost

Mark Behrman

I to million do project. and it, for somewhere it in the X we've But plant. plant the are don't think $XXX we full No, $XXX to talked project. a We neighborhood to have full can million about there of pieces do by

So our reminder, debottlenecking it as a ammonia was plant.

so nitric adding expanding XX,XXX annual urea between XXX,XXX And tons annual a acid was large was on about of tons to an of it our XX,XXX and it to and plant, year new about UAN production, basis. XXX,XXX plant also produce building UAN a

Operator

Our from question David comes next of with the Bank. line Begleiter Deutsche

Anthony R Mercandetti

This what your demand you to on seeing expectations say far Mercandetti more to below, line just from far planting above the the Anthony Mark, is get some for would start David. pre-spring so I'd so detail in is season. like you're or on year?

Mark Behrman

one, say, cooperating. I'd is it's really weather Well, starting The earlier.

fly of not starting of kind inventory. product we're seeing We're starting. -- well, we're out So

that than would it's would earlier it anticipated. and a So heavier say have probably I we little started even

Anthony R Mercandetti

here? And now. Okay. planting ramp we season then into just heart really about those what the seeing I on think into of way QX quarter the QX. the into insight X/X given we demand, as We're you're spring And about again, get how comments should through the and of the the appreciate

Mark Behrman

that's quarter a from least as some sold of at is movement it's QX the our see supply we'll to pricing, we standpoint, spring. quarter the for because see part. best the I heart our upward think expectations. as tightness If the most think continue for second of far we've what marketplace continue I We're open pretty always in to

pricing So to higher quarter. the of we think advantage take opportunities have second we during

Operator

Sachs. the of from Goldman question Adam with next Our comes Samuelson line

Adam Samuelson

to a step take So hoping back. Mark and Cheryl, I maybe was

of did on assumes time eaten still $XXX was Investor costs a the the million, $XXX an $XXX EBITDA other mid-cycle EBITDA Tampa about about, Or ammonia you now, inflation $XXX kind conditions, doing kind benefits ago some The at ton price, target total a plant of pricing You your about even and happen the year a which to side, of Day expenses you'd help and for be was that pretty realized gas. what all COGS, think of UAN year is and million close think gas company you actions? and if to into lower. close you on under and Henry to in Hub the $X company XXXX averages the labor full the the Those us before $XXX the of of million.Can variable of kind growth set has debottlenecking like performance? operating and capable do of set

Mark Behrman

a Yes. great No, it's question.

it's I staff. thing. same frankly, saying So asked the there those to really assumptions. million sitting month thinking a we're I'm ago quite $XXX I'm my one under around about comfortable And that still

has add per at to ammonia our so to plants with us is do of look see in to.So higher than lot we ammonia our it, So another running or it, of XX%. million that transparent is I been we're production can would at target a look $XXX we our have And think that I though, earnings you about when -- prices back at year. pretty think and XXXX, gas -- liked XX I it's tons at in thousand certainly presentation, as published we locked

really another gets probably upgrade product issues our plants, that us liked. then it's some our those us So which have probably nitric as million. $XX did with pricing much to would plants, at million that another as And allow levels, pretty acid downstream not we we -- namely $XX document had to

of us back to $XXX the think things into So million. that up factor balance would X I those pushing

Adam Samuelson

targeted the maybe major 'XX below actuals any back gross year a with acid you because targeted. the the to 'XX and versus reflecting ammonia your ammonia production there on a Okay. kind point going -- what was outlook And I of ammonia of for gave recall for plant. plant, on was you I year at ago came the said but guidance And you don't the what a kind I know downtime in nitric unplanned and issue details 'XX

be? talk of that So where happen to what it up to you to get utilization kind still has can to about ammonia want you

Mark Behrman

mean EH&S about just is And look I'd operating comparable capital significant -- really got capital, a bit ago, high-quality kind probably say, it's, think in I million, which X bit people I of think of I bring But typically practices. to devoid continued of our today. $XX I what a could I frankly, comfortable of talent. be really It's capital. lot when maintenance additional a within we're will really a the we've our is Yes. of it's industry, Most annual back if worked our have I not our that of reliability technical maturation required lot with.And the little people were on take capital. us hard that think we quite competitors of the years technical look to we've around and

that's more months things good. for it's next And maintenance just blocking to it's -- focus be the like we're operating really probably tackling I I happen, maintenance rather XX mean to think expectation of procedures, a predictive in XX on to the -- right the never our and predictive procedures, right our XX that be right? over rate. at really think I So that lot that than the wait would be XX% and months,

Adam Samuelson

one And in. I just more Okay. if could squeeze

of rates the commented you impacting output? in ran plants comment and January in you to industry just earlier your terms Did effect kind your expected as any impact You operating the alluded and January? an of has to in as with didn't your of weather issues publicly one your around peers production and Or that well. weather have

Mark Behrman

site. at power a El had our outage We Dorado, Yes. Dorado El down

either. that we going downtime, some that assume don't So caused we're at to also XXX% run but

Operator

of next with Laurence question line the Our Alexander comes Jefferies. from

Daniel Rizzo

you see I Is cycle there is think we your know said -- on the Could customers the given inventories industrial now later demand probably low -- said This is in I a Rizzo it Dan or possible have? restock somewhat of for year stable. that you presumably just the Laurence. some

Mark Behrman

we our possible. or more always actually customers expected are I It's think taking that today. what

our of got impact do nonfertilizer us. I'd some surprised tons on it's business is available. an leave So be of if much spot We contracted. Most

demand. going could be maybe tons, spot those see price. think on it's firming I So of we don't to some

Daniel Rizzo

in expected Dorado, how the wondering macro and that's much delay then your the XX thought the going in now El some has forward? ROIC much last just the months, Okay. your expansion process how into And changing I of then as there, -- playing given changed was and with just environment

Mark Behrman

kind about profile? return of talking you Are our

Daniel Rizzo

Yes.

Mark Behrman

return I profile changed. don't think the Yes, has

IRR think hurdle on generally is to a be project. our I rate XX% any speaking, going that, or better

think So a got would we long-term that. take return at a But our if benefit to the on look a hasn't company? it's profile we consider lower to generally sustainable overall We'd return have speaking, changed. -- long-term project

Operator

line of the Capital next comes Wong with Our Andrew Markets. from RBC question

Andrew Wong

about just maybe mix kind how your industrial So level, versus of curious feel sales I'm ag higher you on sales.

the bit little industrial ag as of give comes online, more think don't some a ammonia, low-carbon comes you've towards sales more? there's side get could industrial you the sales to that bit little maybe a maybe more it project And that like markets. past, mentioned for demand the Lapis shift your and sounds does tend I you like and industrial in that stability volatility that to

Mark Behrman

That's I the observation. the that and of us we side. of being think Yes, one think products be will for farming you see could products, that a a low-carbon towards low-carbon U.S. more skew really probably given focus more the paying on leader of adopters and community as I industrial last good might

Andrew Wong

any in is just it Or on And different? would mid-teens stability? those just the get that be You still different a more it's but return cadence? returns, profile

Mark Behrman

it's, great mean question. again, I Yes. a

that hedge a locked can way what earnings.And return right? more contract price that a in significant. it's certain out sort in operating we've a cost we're at so asset annuity, long-term profitability, is kind step stable we a an somewhat have So to a So providing rates, therefore, if to and for but of from nothing we consider that on of so base I of created or profile, run have a also really think of and able significance of take we'd feedstock back selling then costs some size, perspective we our that lower

Andrew Wong

it's Okay. work consider -- makes that technology. ATR just Ship maybe I and SMR quick of case, flue That should understand gas like run all one for should Channel. the the considered And if that's on in Would JV kind that's the being sense. with using one just parallel? Houston that also

Mark Behrman

No.

own it's And not It's think remember, ammonia we're plant. an to loop. a committed ammonia ATR. to the we're I going full just

both sell is and long-term Liquide Air to agreement, going us under a So supply nitrogen. hydrogen

-- chosen technology so of flue use generated by COX internally uneconomical lot SMR, technology.A developed is ATR percent XX-plus to today. generated right? that the an own ATR to is gas they've of with capture where the that technology, their in can got which capture And they've about It's process. COX of benefits you in You the can of the during XX% economically XX%, capture economically

we the there we to technologies based in able process I flue time, Now capture COX at gas being will be that the economically, but or on yet. fully are generated gas not some think flue point developed in expect that we're that

Operator

[Operator Granite with Instructions] line of Rob comes Our the next from question Research. McGuire

Robert McGuire

on the when completed are update as projects well? be an in from expected them to just you margin the XXXX Can us on update and enhancement expected EBITDA

Mark Behrman

Yes.

acid on the that So about at was up nitric to would see million some to basis, of tons XXX How anticipate that much installation the XXX about we ago is down frame. We down on. from a in an July annual tons of was EBITDA, second I day El additional tanks an be probably about what Dorado It's first of time of a neighborhood.The of the $X there several kind month going plant at Pryor. project -- the that urea should construction just expansion a day. see somewhere our would project

XXX our tons are bit good as rates. plant job a we're push technical doing than today, that teams a really Although higher to running

So UAN. about tons additional that will provide XX,XXX of

selling selling between And difference EBITDA about of margin the million addition. ammonia it's make we'll and $X So annual then UAN.

Robert McGuire

How And this Ship Channel. LSB then project? to about should the shifting Houston on generation we potential EBITDA thinking the be for

Mark Behrman

income, only suggesting not now. types we we million that's the really want, in great an through the that, I'm question. if cost, a would and engineering, the look it's $XXX for guess and probably we the that is. used mean go cost we what very at can of tell million pre-FEED somewhere I annually. a of to of But neighborhood stream I $XXX would our if that in me steady We're need stable you That's and think cost, I returns

Robert McGuire

on I a question. And then if just lastly, may,

long terms the they'd retain there? like is El that give In there the someone that that Or to how a USDA of of you decides can delay to Dorado, USDA window else? -- that is grant before

Mark Behrman

been for we don't approved the I grant. we answer because you really for have -- Well, don't haven't an

environmental are which asked do assessment, about So where us traditional I've And we as we to months. is not were said X an a environmental review. took it's X or before,

come the a in They've or So acknowledged we comment into period us that XX-day I believe we that. received comment in we're then us now any are since grant that and to and first many really have comment we comments period comments anticipate terms don't tell had. period.We it. the they've that heading presumably a the right At submitted point, we they'll awarded back are. XX-day what didn't

with X years it though, are you high grant. USDA. even that that don't probably really we original the The once to I terms So very a know the outline, point, we for those negotiation although was level, had it's have was we a what think to would that you approved were get meet.Assuming

we've get to should done, sense stuck it us make project we time of fair that, if I do. So got a to our think amount really to for

Operator

that Behrman question-and-answer I'll floor turn back concludes for Thank the final you. Mr. Ladies our any session. and comments. to gentlemen,

Mark Behrman

quarter. again, in Industries. we forward the appreciate interest questions to you all next you speaking thank LSB look And everyone's Well, and support for and to

Operator

call. you. Thank conference today's concludes This

at You this you Thank time. participation. disconnect lines your may for your

LSB Industries (LXU) 6 Mar 242023 Q4 Earnings call transcript