LSB Industries, Inc. Provides Operational Update on Its El Dorado, Arkansas Facility

News Release

LSB Industries, Inc. Provides Operational Update on Its El Dorado, Arkansas Facility

OKLAHOMA CITY--(BUSINESS WIRE)--Oct. 16, 2017-- LSB Industries, Inc. (NYSE: LXU) (“LSB” or “the Company”) today announced that the ammonia plant at its El Dorado, Arkansas chemical facility (“El Dorado Facility” or “El Dorado”) was taken out of service on October 3, 2017 to make mechanical repairs to the burner refractory system on the boiler which were completed on October 8, 2017. Following the work on the boiler, the Company determined that repairs on a process heat exchanger were necessary. LSB management has determined that the repairs to the heat exchanger will be completed, and ammonia production will resume by October 23, 2017.

The Company expects to meet all customer commitments for sales in the fourth quarter of 2017 and estimates that the EBITDA impact resulting from the repair expenses and the reduced absorption of fixed costs related to the collective period of downtime will be approximately $2.5 million to $3.0 for the fourth quarter of 2017.

LSB will provide an update on the progress of the repairs at El Dorado and earlier announced Pryor repairs and the impacts of the downtime on financial results when the Company reports third quarter 2017 results in late October.

About LSB Industries, Inc.

LSB Industries, Inc., headquartered in Oklahoma City, Oklahoma, manufactures and sells chemical products for the agricultural, mining, and industrial 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 Statement

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: enhanced reliability at our Facilities; reducing costs; expanding into new markets; reducing leverage and completing repairs on time and as estimated.

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 expectations 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, 2016 and, if applicable, our Quarterly Reports on Form 10-Q and 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 and forward-looking statement to reflect events, new information or circumstances occurring after the date of this press release except as required by applicable law.

Source: LSB Industries, Inc.

Company:
LSB Industries, Inc.
Mark Behrman, 405-235-4546
Chief Financial Officer
or
Investor Relations:
The Equity Group Inc.
Fred Buonocore, 212-836-9607
or
Kevin Towle, 212-836-9620