LSB Industries, Inc. Provides Update on Its Pryor, Oklahoma and El Dorado, Arkansas Facilities
November 25 2019 - 4:05PM
Business Wire
LSB Industries, Inc. (NYSE: LXU) (“LSB” or the “Company”) today
announced that the ammonia plant at its Pryor, Oklahoma chemical
facility (“Pryor Facility” or “Pryor”) returned to service and
resumed production on November 13, 2019 after the completion of its
turnaround as startup took approximately 15 days longer relative to
previously articulated expectations. As part of this extensive
turnaround at Pryor, the Company installed a new urea reactor which
is currently being brought online and undergoing adjustments to
optimize performance.
Additionally, the ammonia plant at the Company’s El Dorado,
Arkansas facility (“El Dorado Facility” or “El Dorado”) resumed
production on November 19, 2019 after being taken out of service on
November 3, 2019 in order to make adjustments that improved the
production volume of its ammonia plant.
Management estimates that the additional downtime at both Pryor
and El Dorado will have an impact of approximately $8.0 million -
$9.0 million on adjusted EBITDA(1) for the fourth quarter of 2019
as compared to the outlook that management discussed as part of its
third quarter earnings announcement.
Mark Behrman, LSB’s President and CEO, stated, “We are pleased
to have completed our work and resumed production at Pryor,
following the most extensive turnaround at the facility in our
history of operating it. At El Dorado, we took advantage of the low
ammonia price environment to fine tune the plant in order to
achieve better performance headed into 2020. We expect the upgrades
we’ve made to both facilities to result in improved reliability and
production volume. Importantly, we do not have another scheduled
turnaround at Pryor until the third quarter of 2021 and El Dorado
until the third quarter of 2022, which should position us well for
strong financial results going forward.”
(1) EBITDA is a non-GAAP measure. The Company has not reconciled
the impact on adjusted EBITDA to the impact on GAAP net income
(loss) because the reconciling items between adjusted EBITDA and
GAAP net income (loss), as a result of the uncertainty regarding,
and the potential variability of, certain of these items including
expected price and volumes as well as estimated costs. Accordingly,
a reconciliation to the corresponding GAAP measure is not available
without unreasonable effort.
LSB Industries, Inc.
LSB Industries, Inc., headquartered in Oklahoma City, Oklahoma,
manufactures and sells chemical products for the agricultural,
industrial, and mining markets. The Company owns and operates
facilities in Cherokee, Alabama, El Dorado, Arkansas and Pryor,
Oklahoma, and operates a facility for a global chemical company in
Baytown, Texas. LSB’s products are sold through distributors and
directly to end customers throughout the United States. Additional
information about the Company can be found on its website at
www.lsbindustries.com.
Forward-Looking
Statements
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements generally are
identifiable by use of the words “may,” “believe,” “expect,”
“intend,” “plan to,” “estimate,” “project” or similar expressions,
and include but are not limited to: plant reliability; improved
production volume; and strong financial performance.
Investors are cautioned that such forward-looking statements are
not guarantees of future performance and involve risk and
uncertainties. Though we believe that expectations reflected in
such forward-looking statements are reasonable, we can give no
assurance that such expectation will prove to be correct. Actual
results may differ materially from the forward-looking statements
as a result of various factors. These and other risk factors are
discussed in the Company’s filings with the Securities and Exchange
Commission (SEC), including those set forth under “Risk Factors”
and “Special Note Regarding Forward-Looking Statements” in our Form
10-K for the year ended December 31, 2018 and, if applicable, our
Current Reports on Form 8-K. All forward-looking statements
included in this press release are expressly qualified in their
entirety by such cautionary statements. We expressly disclaim any
obligation to update, amend or clarify any forward-looking
statement to reflect events, new information or circumstances
occurring after the date of this press release except as required
by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20191125005785/en/
Company: Mark Behrman, President & CEO Cheryl
Maguire, Chief Financial Officer (405) 235-4546
Investor Relations: Fred Buonocore, CFA (212) 836-9607
Mike Gaudreau (212) 836-9620 The Equity Group Inc.
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