.September 3, 2024 03:33 PM

LSB Industries (NYSE:LXU) saw a more than 5% drop in shares today after Deutsche Bank analysts cut their price target to $9 from $11, maintaining a Buy rating. Q3 EBITDA is expected to rise significantly year-over-year, excluding $15 million in turnaround expenses, due to higher prices and lower costs for natural gas. However, quarter-over-quarter EBITDA is projected to decline by 62%.

LSB is advancing on its low-carbon ammonia projects, signing a five-year deal to supply up to 150,000 metric tons of low-carbon ANS to Freeport Minerals. Deliveries will start in January 2025 from its El Dorado, AR facility, with premium pricing compared to the conventional version. The El Dorado Low-Carbon Ammonia Project, in partnership with Lapis Energy, is set to reduce LSB’s Scope 1 CO2 emissions by around 25% and generate an additional $15-$20 million in EBITDA by Q1 2026.