LSB Industries, Inc. Provides Update on its Pryor, OK Facility
LSB Industries (NYSE: LXU) has temporarily shut down its Pryor, OK facility due to a surge in natural gas prices caused by extreme cold weather. The local pipeline operator has restricted gas supply to commercial customers, impacting LSB's operations. While the company does not foresee a material effect on its Q1 2021 results, prolonged elevated natural gas prices or constrained availability could significantly affect financial outcomes. LSB Industries manufactures chemical products serving agriculture, mining, and industrial sectors.
- No material impact expected on Q1 2021 financial results from the Pryor shutdown.
- Temporary closure of the Pryor facility due to high natural gas prices.
- Potential significant impact on financial results if high gas prices persist.
LSB Industries, Inc. (“LSB” or “the Company”), (NYSE: LXU), today announced that on Friday, February 12, 2021 the Company temporarily took its Pryor, OK facility (“Pryor”) out of service as a result of a recent surge in natural gas prices that has taken place in the region due to extremely cold temperatures. Also related to the cold weather, the operator of the pipeline that supplies natural gas to the Pryor facility is experiencing significant weather related gas supply impacts and, as a result, has curtailed gas distribution to commercial customers. LSB is closely monitoring the situation and will re-start production at Pryor as soon as natural gas prices and availability normalize.
LSB does not expect a material impact to its first quarter 2021 financial results due to Pryor’s temporary shutdown. However, the longer natural gas prices persist at the current elevated levels and/or gas availability remains constrained, the more significant the potential impact to the Company’s financial results.
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 primarily throughout the United States. Additional information about the Company can be found on its website at www.lsbindustries.com.
Forward-Looking Statements
Statements in this release that are not historical are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance including the effects of the COVID-19 pandemic and anticipated performance based on our growth and other strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or actual achievements to differ materially from the results, level of activity, performance or anticipated achievements expressed or implied by the forward-looking statements. Significant risks and uncertainties may relate to, but are not limited to, business and market disruptions related to the COVID-19 pandemic, market conditions and price volatility for our products and feedstocks, as well as global and regional economic downturns, including as a result of the COVID-19 pandemic, that adversely affect the demand for our end-use products; disruptions in production at our manufacturing facilities; and other financial, economic, competitive, environmental, political, legal and regulatory factors. These and other risk factors are discussed in the Company’s filings with the Securities and Exchange Commission (SEC).
Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Unless otherwise required by applicable laws, we undertake no obligation to update or revise any forward-looking statements, whether because of new information or future developments.
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