LXU - Earnings call transcript Q3 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the LSB Industries Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Fred Buonocore, Vice President of Investor Relations.

Fredric Buonocore

Good morning, everyone.

Joining me today are Mark Behrman, our Chairman and Chief Executive Officer; Cheryl Maguire, our Chief Financial Officer; and Damien Renwick, our Chief Commercial Officer. call statements. today's that note includes forward-looking Please These expectations, and based on current intent, the company's projections. statements are They are differ not of guarantees of future performance, cause actual factors and the results to materially. could a variety

will reference the GAAP information results. results in of regarding On the statements section call, non-GAAP Please reconciliations press Investors for see lsbindustries.com, website, to and results. our forward-looking release the further non-GAAP we of

rights of plan see As website to certain a a reminder, for Please section we tax Industries the LSB stockholder Investors details. our have at attributes. important protect further

time, At turn to like this call I'd and to go Mark. the ahead over

Mark Behrman

you, Thank Fred.

X Turning Page safety performance We the of to had an excellent our presentation. quarter. third in

team quarter, major matters injury-free. completed a performed our third our prior Protect turnaround what the safe. matters facility, us important to we team what it to because as members corporate value is was our During keeping the is most most on and kudos

improved financial year's In despite third terms last third-quarter turnaround our quarter. in performing of adjusted performance, significantly year none a year-over-year this versus EBITDA our

facility. quarter, plants. During Pryor in our to turnaround completed many a to major invest third we that our continued included the We improvements

lead that benefits. volume, that work expect performed greater seeing was production We and reliability increased and will already the are we to the

an of We expansion This is that production seek XX,XXX turnaround, continually increase. approximate to footprint. per its expand us XX% tons UAN, urea plant. an expected produce our To we to manufacturing current incremental the year point, annual allow expanded during of Pryor's to

ramp this already levels quarter. that during volume have those to seen We up fourth

sales an storage This with and now our improve margins. we of industrial acid El Dorado completed our to to us our mix quarter, third additional support at during Additionally, growing our provide ability optimize nitric business, the tons of better X,XXX the facility. will construction the

our Lastly, call. the which transition discuss we progress to projects, energy make later continue X with I'll in

trends. pricing dynamics will Damien, Damien? review current the and turn who call over to I'll market

Damien Renwick

our from Thanks, Mark. customers. industrial some North comes business American markets. key Good Page X/X operations industrial More in X summarizes dynamics the morning, everyone. our of end than of

industrial Our partially us built volatile mitigate contracted allows and volumes agricultural business to business. the is more on

We also attractive the agreements. industrial of from our cost-plus nature that the the business result consistently customer of margins like

forward, of commercial to grow portion is stable Going customer to We in strategy believe a stream. industrial earnings part a and this our create core our sales will continue portfolio. the of predictable overall more

through Demand remained the customers consistent across our industrial quarter.

Asian American of uncertainty continued markets We the are North when industrial markets. our with we've seen pleased and the in end of stability European with some compared

of attractive the the consumer spending, With into continued resilience we U.S. XXXX. persist to these economy and conditions expect

X by polyurethane for industrial acid, One are these of of auto production. a polyurethane. sales manufacturing largest industries and trends our key is because We consumers products major nitric chemical homebuilding track volume input

can X you continue the stable. both Page top relatively for see As markets also charts to from on indicators X, economic be

for in nitric lead demand that XXXX. We further would rate easing for acid rate interest expectations and in markets. cuts rates believe recent That and increases production could demand stimulate to of the both interest greater

We also nitric for and the increased demand acid of new production encouraging. continue munitions acid from nitric very the find outlook Overall, to sources demand monitor we U.S. semiconductor in manufacturing

is markets such metals product used Our copper. of ammonium AN, as other major for in is mining industrial the or which nitrate,

significantly for new demand by is electric part the infrastructure sit interest driven levels, housing above by could past shows, As correlated housing the believe over in has strongly year, demand support strong the used copper prices chart starts, in on value result declining the of increased multiyear aggregates. of driven technology copper rates production infrastructure. the for new currently AN given prices. increased We Copper the housing production is the for of and to higher build-out which required also vehicle developments. average starts production to bottom right and aggregates,

our constraints in from supply increased resulting to presentation, a natural for facilities, global to ammonia current production benchmark various turnarounds due Trinidad, including at X find extended a consecutive combination Page downtime months X On ammonia of you has summary dynamics. will of price Suez and Canal. unplanned curtailments gas disruptions of increased The nitrogen Tampa transport of the international the factors, market and through

has commissioning ammonia Additionally, to of capacity prices. in Russian new new capabilities the domestic delays ongoing production provided and export support

from production this demand firmed through to have tightening fourth the and fundamentals, UAN continue expect recently curtailments by quarter. prices We market driven India. healthy following urea

from seeing are and imports recent where high, history. compared to low trade a U.S. balance favorable We price support also exports remain

Buying interest taken a relatively corn cautious retailers subdued overall, has have been softening with as fertilizer approach steady, prices. but

could of as half we that towards the UAN in-season season, during some as planting move the retailers lead cautious XXXX will However, work we spring first support position approach next believe pricing This pent-up this to for demand to all themselves cover demand. year. likely to

price feedstock to respect gas relative price Henry the European With trend costs, to middle chart U.S. TTF Hub. the for the the shows for gas natural

risen Over factor since Middle at XXXX seen This be to in European largely current late ammonia levels the X appears levels. past due weeks, to supporting East. the instability another the gas to prices have geopolitical not prices

calls grounds prices drive exports larger easing first advantage natural for earlier to USDA's prices, U.S. estimates. From competitive gas a an outlook, for other of suggest ending our are their corn August, which trends and agricultural future. On prices late reduced stocks forecasts half ammonia strength to supplies, corn forecasts for TTF we of relative some the and X, remain which recently the smaller of pricing showed Page the during foreseeable business. and revisions the show XXXX, for expected domestic U.S. industry While grain updated on producers

fertilizer. Interest positive a in see farm incentivize harvest, XXXX nitrogen current levels of pricing year. interest to a prices demand over fertilizers. of declining on have a the XXXX, cost by $X.XX is expect futures the part apply for healthy While the level strengthening levels also farmers many some determined at first per December structure of impact sit for that outcome of pricing of component be half next we will corn Corn loans bushel suggesting the currently should on to around farmers' meaningful rates should and

to the financial I'll discuss and Now our call our to third turn outlook. quarter Cheryl over results Cheryl?

Cheryl Maguire

year Thanks, a location. Damien, turnaround We is of good of X, significant you'll see maintenance improvement $XX financial third adjusted XXXX million. at over and our morning. our results. On EBITDA planned a Page quarter This summary last prior despite material generated

As a no turnarounds XXXX. in reminder, there were planned

$XX EBITDA impact third taken of in approximately Keep per of loss service the was mind, of $X.XX. expenses and million million charges turnaround for of out share approximately quarter older ammonia, XXXX the quarter quarter change GAAP disposed for non-cash period. Page X $X in off particularly Our contributed our included this the XXXX during year-over-year or assets EBITDA. of $XX EBITDA prices, third of our to million bridges to selling $X the for million. adjusted third adjusted Stronger

during Additionally, we benefited lower natural the costs period. from gas

our facility. partially of in sales as to As the prior able of third volume that volume from volume XXXX summary and operational a The AN expected, decreased the our we the higher result key XX increased of offset turnaround of of XXXX balance of our the same of result metrics. is cash compared quarter Dorado direct facility. Page the the making the out at AN initiatives were provides volumes products impact with have flow turnaround our a of to improvement sheet We as at decrease prior El facility. been quarter a

amount stock. in brought of a principal approximately XXXX, our XX, the of our approximately XX and shares notes we months reminder, $XX back X.X As over million ended senior secured September million

continue leverage our X.Xx. to million remaining remains Additionally, at approximately cash to facilities. with improve the we net deploy healthy reliability and these safety capital Even with activities, approximately $XXX at of

continued supply to well $XXX below year's has Nola and concerns, disruptions tighter remainder is year. Natural averaged quarter costs ammonia of quarter-to-date, should XXXX, remain of last the fourth solid $X.XX Looking per MMBtu ton. ton metric per quarter-to-date. inventories, ongoing global gas remain geopolitical per pricing, through $XXX around the the approximately constraints, UAN pricing currently Tampa averaging and With

the of year, through balance quarter our fourth continue to the trend this benefiting expect We profitability.

Cherokee will $XX with quarter expenses results fourth of a at include approximately will the impact million. We turnaround that associated planned our facility. turnaround Our this be XX-day the estimate

Despite our Pryor at we volumes solid as a expect increase the UAN in at expansion year-over-year in urea event maintenance of sales quarter. facility, completed planned the facility our Cherokee a the third result of

acid We to nitric also our Dorado. expect have plants operational increase a to AN sales, downstream reflecting in we've El at made improvements and year-over-year the

expenses over EBITDA after location our lost quarter maintenance fourth for fourth turnaround in Mark. turn be our back our adjustments XXXX it despite expect quarter significantly we Cherokee I'll activities at of to planned production above to during now result, November. And a As

Mark Behrman

Cheryl. low-carbon Page pertains our XX projects. you, ammonia to Thank

wells Class approval us begin site we to El us for track XXXX, on remains The that solution on of permit for VI project ammonia critical produce permit application. offtake this our the is our to X commence in CCS Dorado This the El Dorado. Dorado the year, ammonium path during announced nitrate permit project. Earlier allow will pending low-carbon for our El Our facility. to injection production we'll customer item low-carbon our first of drilling at construct

customers a in low-carbon other X.X that project, produce our as metric of approximately to also world-scale with respect reminder, plant tons for it offtake Ship potential ammonia are products. Houston is for With discussions a agreements Channel ammonia. We will low-carbon million

in the reviewing We process completed study. pre-FEED the have currently the of and are of our results

the will first we some about completion half targeting step to are of XXXX seek begin next XXXX. which the FID, full we complete. and of study, expect be which quarter point in XX first Our the we months to of during a would take Upon study, FEED FEED currently for

the significant facility, with cost projects of moving offtake the world-scale new many key agreements ammonia of forward. to a customers building announced low-carbon the are Given

secure that us is greenlight ammonia. this of on previously, no-carbon production I've encouraging development low-carbon ammonia an agreements is for long-term on critical stance demand FID for mentioned to for point, ammonia the project. To the our As customer Europe's versus ability anticipated offtake majority to

more their ammonia. Europe use of through open low-carbon carbon reducing emissions to the is much now

an We the low-carbon industrial Carbon EU's enactment ammonia Border are now impending of to manufacturers or due seeing of various CBAM. taking Adjustment in types the Mechanism, interest

power low-carbon as applications to pace marine a industrial for emerging at ammonia been and pleased we've generation at has potential addition fuel. which use, In ammonia the been

a tested marine of as Amogy ammonia. In company We are York-based tugboat fuel. by September, the with engine an successfully powered collaborating a a retrofitted development Amogy, with technology New ammonia on

be Belgian began gas first the in will building ammonia carriers that midsized of and August, Additionally, X a EXMAR, company, powered engines. by dual-fuel shipping LPG

Mitsui successful the ammonia is which Australia, led at being Lines Global Decarbonization. trial participated Center by the major potential bunker O.S.K. was Dampier as simulate ammonia evaluated conducted transfer for in hub. The ship-to-ship operations to Marine in of Finally, a Port bunkering a

ammonia in of time. many that for the potential intend Collectively, the have significant global activities shipping extremely ammonia preferred are low-carbon massive as demand industry. fuel for that We these and to over very participate uses growth These developments are growth. encouraging for the will encouraging new

We optimistic generating our are increasingly for growth. near-term and long-term about prospects

We to expect sales to a facilities over the we manufacturing core the our way flow and production progress profitability increasing XX meaningful cash volumes in making and months. the on are from next accrue our

same strong well time, growth as XXXX represent low-carbon delivering prioritize preservation Both growth our goal the our At initiatives incremental longer and transformative as our of balance our to in shareholders. beginning of over sheet prongs term. strength our of the potential strategy returns ultimate profit

Chemicals Stock at at Day to forward you that November look Management the open person we Industrial those participating and to XX in Conference and like on XX Morgan on I'd Granite Packaging Ag mention the some and XX. be Conference questions, it on virtually Research and XX the for November we Before Exchange in Global of speaking December New up with Stanley events. We York series will

This we remarks, your be questions. concludes take happy Thank now will our to you. prepared and

Operator

with first question Your Spector Instructions] Josh [Operator UBS. comes from

Joshua Spector

had couple your on side industrial questions a the of I business. of

potentially think talking at you the some I trends were So of the improving guys presentation, start about there.

with that, wanted favorably more year? if the open are talk think maybe not there's over contract already in that maybe you less or we demand? the some could then and improve? demand So expectation first, and Or how if things as of favorably that actually plays pricing industrial side next into spread up for you to seeing negotiation ask, could just contracts that about the the and picture contracting or related about And is I improvement

Mark Behrman

Sure. that going Damien to I'm take one. let

Damien Renwick

Mark. Yes. Thanks,

more can interest activity quite in some you rates see that signs we're could think So I there think see we're seeing housing moment, it probably with development, I cetera, about we demand infrastructure and cetera. of certainly talking et But improve. general the last there's et more economic improvement, context robust stable. the couple some particularly if industrial pretty It's the over years. of At been build-out,

So we're on but a that, that. with we're confident wait-and-see pretty approach about

portfolio, your the of not all of second together. expiring contracts manage way to we terms they're question, and we're associated In just cluster them, is our all the careful customer so

So some and they're naturally, of will And sort laid be over term. a some little out time. are longer expiring,

So they we'll arise. just with as deal that

Joshua Spector

ask then maybe there. I'll Okay. a follow-up

you Just frame framework when in interest you contract getting way I agreement and I material based you the that is XXXkt about Eldorado carbon material alone? potential COX contracts is the lower left agreement the in this about of How you're lower Lopes talked have to a guess of more Freeport. sequestering. of much changes think that have out on the there for with to carbon

Damien Renwick

maybe X/X, a than bit more that. about Probably

Mark Behrman

it Yes. have you I take we'll ammonia. tons about if XXX,XXX probably low-carbon back, mean of

XXX,XXX if contracted tons of roughly that that's And of AN or XX,XXX solution, so so we've ammonia.

have still can as low-carbon call that ammonia it, sell tons XXX,XXX we ammonia about of upgraded So product. we or

Operator

Next Andrew Markets. RBC Wong question, with Capital

Andrew Wong

of maybe in are terms maybe you could year? provide higher, you So maybe generally, improvements just do same? a volumes, outlook just debottlenecks the just there you the be seen XXXX or that in with expect an or production upgrades do next about of of this we've early given completed into to And some -- lower year, bit that also some operational

Mark Behrman

late year. summer. X what got turnaround We've then Dorado. so X-year turnaround would And Cherokee annual our the we've say or at we've Andrew, in I next at El another got got is turnarounds

we'll fact if [indiscernible] prior year-over-year the improving we plant, for turnaround, we production not it being that year-over-year. production but have debottlenecked So and you volumes those UAN also very think have so higher urea rates, operating would by clearly in better and we the just have we've

do for on through an on go what Cheryl still our I next on that are outlook think early we're that year. do a for quarter, giving as will always little But volume next we expectations volume and XXXX.

Andrew Wong

little I that nitrogen maybe higher a a your Okay. guess, then year valuation And some bit That's space, seen for the this and we've helpful. would more, transactions business. imply in philosophically,

X company? the to around And just questions like first, maybe do potential is, it into for LSB So stay factor that transactions? a sense much NOLs I secondly, guess, any public does how make

Mark Behrman

Well, great questions.

or NOL So $XXX so. is about our million

XX%, a that XX%, So somewhere in for if you tax effect tax I mean, rate range. that of

million to cash. $XX million $XX actual about talking we're So of

that So continue and forward, we to money. to it's meaningful. But reduced more would still as business as we improve continue get year move make money I would to the expect that, make every

it of important. that's be because there. mean a we capital public We stock and day think that's every I is conundrum, to for markets in price company? we're company the us public sense there's a today. sort access right? having public Does a out But public sale a Well, we're for make to are

the excited improving and And got and low-carbon of about. that. we've projects really we're number focus a going that now, on growing So on to right focused we're I business business, we're think the

do We M&A transactions. look at

if fair us for bigger, we're we we're so pay for in get about on pretty disciplined think always gain interested scale and a to we're that. Certainly, And what willing value. we'll M&A pay doing there's to way and how things. But

there's and benefits benefits way, being So public I to public. are and I we roundabout today, guess a mean, in not

Operator

question, Alexander Laurence Jefferies. Next with

Laurence Alexander

and Dorado, bit years, up say, up and X, ramping your for think little maintaining a just scaling to the a on bit on little efforts slow take kind everything of Or Ship next, sure to or seamlessly? might productivity touch Channel, working you else ramps where a bandwidth productivity? is Houston it as what Could you down there make over about how X give need the -- see you El

Mark Behrman

discuss great resources. pretty question, and internally it's a That's actually we that one about often

you internal employees. So so have right, resources,

to talent. or so contract they're out hire, existing the opportunity And technical also that whether employees but new could have we you

and of firms lot that. So we're engineering we pretty a doing to work do adept at that, do with

that on us. top for Houston So really our Ship technical project leading have project, we the folks of for Channel instance, one

pull senior resources of operations, So did with technical resources. supplemented out we but him contracted very and we him existing

do been to we've So that. able

and and I that outlined, think organizational place. got late an sometime FEED quarter, structure move to we if in we in we've go the we'll into into put FEED first is need

of contracted some resources. of to will those supplemented be and And resources project, with Houston be subject the on permanent Ship solely charged will Channel and some working them and

build and the Dorado, The again, capture El the and won't carbon we capture pipeline. at own facility project

partner, Our Lapis will. Energy

site drain managers going on manpower great project leaders. from a are not be We've a So it's and folks that resources. standpoint, on got to project

with working projects on, other to that site. the are they're so that And addition in on on Lapis going

operations If or you going really think El about down to plants improvements I our and to move we not one not were site, we do. want our have Dorado drain improvement make is to debottleneck our resource from we'd down or a then or them allocation. any that supplement The make at on existing to again, to project to business. that slow plant thing we need a on resources to to something guarantee the other we're It's our can existing

Laurence Alexander

if consider to molecules, else your then term return end the even wanted with low-carbon towards Houston And decade, an to of demand but of stream, if access the the commodity then take project a to have end option before Ship on just comes sort spread strengthens market of wanted would someone the you locking longer Channel, they the in risk? the

Mark Behrman

Yes.

what day actually it's X. contemplating So we're

to in. I take-or-pay building of this, I've production risk in we clear a will not unless with term don't of that a FEED got hope want into be but about up hope pretty we've it, I people say signed will the might been to move plant taking we're agreements. So locked some that and the sheets and not It binding nature detailed come. business majority

return the would that up our volumes somewhere we're on we with cost and would from period the are of to cost include hydrogen customers what the because be expected So expectation locked will committing basically be XX in of cost XX of plus an XX%, and Air it is locking Liquide. that XX% the do the take-or-pay in annual basis will like in the product production years pricing buying to the for

back-to-back can that. we So

is pricing to and from Air same any Liquide. And for constructed risk day. we've So we're vision the to and the offtake with and the core real the whole by parameters offtake committed once as our competency. idea here site up then really have is that commodity operations, and derisk whole we risk a mean project I only commissioned do that running got and buying that's every

the way the So really acceptable Does we of return can is at capital a on building where in like we're locked almost at that an sense? annuity this we're steady an have looking stream that make investing. rate

Operator

Research. with Rob Next question, McGuire Granite

Robert McGuire

are So seeing relative what how Mark, how market to or -- Damien, been this purchasing far so you've just nitrogen year? buyers in far out today's

Damien Renwick

We're into to close of next in hand taking recent market position some to pricing think urea some strengthening, buyers sort has sort to of the but mouth, QX longer seeing particularly year. cautious seen a a start approach fairly about in price --

basically the but hand-to-mouth. majority is -- So really,

Robert McGuire

continue? And can what quarter Cheryl CapEx that's Great. discuss and going or to if then drove you Mark, this

Cheryl Maguire

third had in turnaround the at the quarter, Pryor We Yes. Rob. big

of bigger work a good Cherokee the We a We turnaround quarter. definitely do a did in at capital from fourth Pryor investment have was that the facility. lot ammonia So the perspective.

as some capital So elevated there we'll see well.

Robert McGuire

kind CapEx of of the Or little a higher was was any the there anticipated? anything surprising than -- Cheryl, turnarounds? just Was terms or in it there there

Cheryl Maguire

really, pretty not we mean Rob. fines I a the few That's addressed that Yes. have I normal. turnaround. we did during mean,

bit out -- So have higher of nothing ordinary. a we of CapEx couple the nothing a of a number, did but million,

Robert McGuire

sorry, And on particularly shift? But to at then beginning just the your and like curious XXXX. little Houston on Ship production what's timetable looked behind bid of the mid-XXXX out, that I'm you're Channel, further the that place the a was -- discussing production. take

Mark Behrman

I Sure. fluid. it's it I And could in some? just think get that think Rob, pulled

expectation I we're think say, happen thinking items FID issues with now long we're -- trying other when more lead of supply and about cautious conservative to conservatism. than time to it's think I we A lot things, the be and, some let's between and nothing and chain timing. level and whether of

Robert McGuire

what that in And improvements improvements the that, you're appreciate I see reliability of to made you coming any utilization? performance Pryor. discuss at then just over maybe if or lastly, X see we'll seeing what Pryor's and quarters expect X those you given utilization, capacity the Can Mark. stair-step out you improvements

Mark Behrman

Yes.

work we're So excited did during turnaround. they that really about the the

your most is So as are a catalyst turnarounds, just plants. standpoint, first, from case going you've other got degradation things right, of the on pure with reliability and that in

of, say, kind limped our we into bit a So I'll turnaround. little

the of optimal team phenomenal on rates running at work we're out that Coming the in a did did, job they turnaround, the and ammonia.

So we're really that. happy with

less As probably, as and that for ammonia it's team and expansion, going us we're excited to is it sell urea about super Southern UAN. Damien because because the super that, to far and in Plains upgrade to we're are excited the about his

so will tons add year XX,XXX in And additional a UAN that production. about

is we're that seeing hitting on every that. mean and way very about in not hitting X,XXX that being our production. reliable consistently and think day, consistent So to production, we're we're rate really we're with but And that. so a urea I or day I the

and the expected. UAN I well our plant as again, is of to expansion So really urea more going upgrading think and the

Operator

Begleiter David question, Bank. Deutsche Next with

David Begleiter

Mark the be down and next already? given up expenses highlighted should Cheryl, year, you turnaround or turnarounds

Cheryl Maguire

bit through the it's and right cost the really So through We're early. turnarounds that a of working going next year. now

this I year. point something the same expect think I as this would to be in at ballpark

David Begleiter

Mark, finance via or thinking own? either your commitment financing in Or satisfied And are to terms your side, you financing capital with that project, project Very yourselves of on about derisking Houston the you ability are project good. the that partners? for on

Mark Behrman

Yes.

a partner thinking we're is and again, the INPEX. about way we the in have project So --

each if we million that. simplicity million, XX%. million $XXX won't $XXX is cash. I've I equity and used leaves purposes, quite $XXX would million. an for project the the be it's -- or assume XX% number own for be project the of loop. finance But think expectation it, ammonia required $XXX of so before us just let's That If So It the

and And to it. how each in $XXX expect so, we we'll finance that's so, or put million

Now finance, when exploring the say traditional go the project open, started LPO, or still can loan finance we I the route as project program that well. is government if we've

David Begleiter

And updated just, Excellent. thoughts the on price to low-carbon Mark, what for are any, the premium XX years, your lastly, ammonia perhaps? market next will if X pay, the over

Mark Behrman

go index. That's forth an this. expectation that interesting when back I selling to some there's it's There's question. some an Europe, Damien going and and probably on to you're be --

So the CBAM, of is because on amount to starting index, in ammonia cost let's like they're from ammonia whatever just that, an it's XXXX. XXXX, Gulf that plus use right? So index, something Tampa journey the increasing a XXXX

and -- ammonia. straight us For that's

carbon products existing facility the advantages you've got upgrading a our at the ability sell upgraded job an is capabilities solution. low One got capturing good of really did that's like carbon AN selling to of of team commercial

customers. could in And lot other that in so us industrial our opportunities competitive there product acid, a are additional which opportunities that's to affords and a essential environment the products, solution. some nitric of plus another we think AN of There less be

Operator

Charles question, Piper with Next Sandler. Neivert

Charles Neivert

that Or for all market. we A Is you beyond next guys on are for right couple bunch that gas now are of gas basically pricing now? going We're of there hedges quarters? affect are ones. the of just at looking any to that

Cheryl Maguire

Yes.

So generally Charlie, first month. buy we of

So ahead. we're one month

November lock days. here the couple next of we'll So gas in

other that, the So it. that's of than majority

Charles Neivert

And much a do you going but to X, how everything I for set from on call not numbers carbon based of Okay. much amount, more sake won't be they're to it's we get should know what the 'XX the added let's I less dioxide, guys deal then in the started annually? say Lapis getting -- beginning just it's on How January expect gets a terms it but for in argument, of them? ultimately, XXXX. from or the

Mark Behrman

Yes.

COX each So and between pay sequester. it's a ton from for ton that that take $XX $XX of they'll in us they us

So it's roughly assuming that $XX tons, it's million. XXX,XXX

Charles Neivert

it's again, -- that running. And on all based

-- X be Where me Are quarter? they third hit? year. you timing to of be I the is and going Can you have both put one fourth? other for sort then going the Okay. to Or give should third turns third next the and

Mark Behrman

in the third both it's quarter. think I

turnaround You you may of El end be turnaround of non-ammonia may Dorado doing turnaround and so beginning they're third -- quarter, absolutely the quarter, in will fourth the that's the have that the quarter. have third Cherokee or

Charles Neivert

the question. And harvested. terrific. this actually has ground or weather around hold are for ammonia really The cold good. enough is aren't just being buy? bad mean grain good weather last the good seen fall? guys. that The you've done people you season seen it. the slower hesitant to yet any in application really then temperatures for was application because I the They've been anything to Has these They've Have there all year been things. like low numbers Yields ammonia

take. whatever really is behind application typically assume schedule I So it would

Damien Renwick

able see spot U.S. terrific record see and But probably harvest the you're yields some for and yes, corn those need for need to being year weather we ammonia should on. to terrific, for come degrees are XX, yields Charlie, we and rain, be crop. Yes. soil applied. XX down do it's temperatures start we this do to -- to Yes, been see

some purchases. incremental running and any at call moment. would be yes, we're but needs we So -- think everyone bought, what a seeing. if it activity is there'll just fairly of a additional waiting is schedule. behind the lot But just well I there's are Buyers not little, There's

Charles Neivert

is for made market? that sales degree mean, particular have what you've to do on you sales I third to or And quarter for in that's quarter, fall guys that fourth touch ammonia? significant something already

Damien Renwick

out Pryor it's market the comes I got hugely of that say We've that surplus wouldn't we in participate with. ammonia material. a

So -- sales in locked of position. but already are we're our most in, and pretty comfortable a

Cheryl Maguire

also of ammonia with out coming urea less exposure plant Pryor. of the the recent I'd Pryor Charlie, we've at got add, expansion to

forward. So moving ammonia more UAN and going less

Charles Neivert

something in more competitive to the below is ammonia the that you a of at I as get away with guys talked can carbon, is strategic market. upstream from or way from get time, Over little order you it. downstream less to you little bit really to you want mean it itself? about the away degree now priority the more moving ammonia? -- Got a most that looking a are Is sort take

Damien Renwick

Yes, I I would so, much than or the mean product. upgraded sell be UAN think preferring our base rather products Charlie. we to

Mark Behrman

think you forget when -- thing, certainly about that and anymore. the to no be and don't can't other forget the think I Magellan there Pryor we pipeline we pipeline, used location, there's its

is So ammonia patterns on changed distribution competitors put in marketplace. our that area has some and pressure of distributed that from the how the

much as what is of expectation our So we would upgrade can out be. Pryor as

Operator

[Operator Next Water Research. Peter Gastreich Tower with from comes question Instructions]

Peter Gastreich

taking question. Congratulations year. for on far this progress And your so thanks my

But seen For from where target you will the low-carbon to the billion we seeing commitments demand, the going up ammonia, loan you context the think fertilizer for part some this few to for do market I understand kind your and aviation far asking are the projects. just the last strategy value how that that assign of with fuel weeks, $X prospects in applications? I'm in come conditional sustainable we've ammonia applications. for see that's industrial is in in in that DOE fertilizer, remain low-carbon in the

industry as well. low a have on production pretty that's the of big carbon chunk ethanol We

regarding that. be So your interested overall, in I'd thoughts just

Mark Behrman

Yes.

fertilizer -- would we've light as least that, no do we're low-carbon farmer to that's right? I are from feedback to away is that fertilizer willing years going a with not gotten. at benefit, say what no a just So that be the many farmers There's that, using

being ethanol, ethanol, though, people something your the a of fuel for as lot on COX think low-carbon of are And ethanol, looking capturing ethanol sustainable you a that aviation it. used To low-carbon driver is is feedstock definitely about sequestering point, the at. creating that and biggest when

get So score. that's reduction in CI where biggest you the

However, that low-carbon further corn also CI using score. reduces

it's than them. is practices So that other that can tilling And more measurable do. much things for just important better and farmers and tangible

producers on that. of lot a is that, had with there ethanol we several So have focus conversations about and

today. it's that that really the and if not see are far might we incentives legislation get what off, ethanol so programs in future, the allows And producers in to

to might tax ethanol which is that. for because and really will paying though, called of of expires it You now that, then that's are people A code. will directing of really them fertilizer lot what depend And XXXX. low-carbon part -- be extended what's the premium producers on on see growers the corn XXZ, buy a that extension waiting in is,

waiting waiting to think, low people low-carbon whether I right with If extended, gets a green think ethanol, using legislation legs. corn in green I gets for real again, XXZ could think I to But some carbon XXZ production extended. or people similar that final -- are ammonia it pattern for fertilizer So low-carbon on see mean, waiting that, for hydrogen now we're hydrogen ethanol produce to I low-carbon have now. and

Operator

There this are floor questions the no to turn closing at over I for Mark to further time. remarks. like would

Mark Behrman

can further e-mail see LSB or I if thank any Industries. us. call And Thanks. Well, feel free hope a us for to you, please making interest you always, give progress. thanks that we're And the questions, you have in as everyone.

Operator

thank This you. for We concludes teleconference. today's you your Thank participation.

may time. You disconnect lines at this your

LSB Industries (LXU) 30 Oct 242024 Q3 Earnings call transcript