#1LSB INDUSTRIES LSB INDUSTRIES LSB LSB LSB NYSE (15) LXU NYSE LSB 115200 LXU LSB Industries Inc. 1,099,270 12.04 12.22 11.5200 0.06 0.52% 11.52 94 11.53 LXU LISTED NYSE LXU LSB Indutres lec 1,099,270 12.04 HIGH 11.39 LOW 11.69 VWAP 76,129,000 SHARES OUTSTANDING INDUSTRIES 12.22 11.39 SB 11.69 NOTSTRIES 76,129,000 Citadel Securities MARKET MAKER Ches Seattle INVESTOR PRESENTATION DELL September 2023#2LSB INDUSTRIES Forward-looking statements Statements in this presentation 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. 2#3LSB INDUSTRIES Stockholder Rights Plan in Place to Preserve Substantial NOL's Our Section 382 Stockholder Rights Plan (the "Rights Plan") is intended to protect our substantial net operating losses ("NOLS"), carryforwards and other tax attributes. We can generally use our NOLs and other tax attributes to reduce federal and state income tax that would be paid in the future. Our ability to use our NOLS could be substantially limited if we experience an "ownership change," as defined under Section 382 of the Internal Revenue Code of 1986, as amended (the "Code") and the rights plan has been designed to help prevent such an "ownership change." The Rights Plan provides that if any person becomes the beneficial owner (as defined in the Code) of 4.9% or more of our common stock, stockholders other than the triggering stockholder will be entitled to acquire shares of common stock at a 50% discount or LSB may exchange each right held by such holders for one share of common stock. Under the Rights Plan, any person which currently owns 4.9% or more of LSB's common stock may continue to own its shares of common stock but may not acquire any additional shares without triggering the Rights Plan. Our Board of Directors has the discretion to exempt any person or group from the provisions of the Rights Plan. On August 22, 2023, the Company entered into an Amended and Restated Section 382 Rights Agreement. As a result, the Rights Plan will continue in effect until August 22, 2026, unless terminated earlier in accordance with its terms. The Company plans to submit the Amended and Restated Section 382 Rights Agreement to a vote of the stockholders at its 2024 Annual Meeting of Stockholders. 3#4Who We Are#5LSB INDUSTRIES Company Vision To be a leader in the energy transition in the chemical industry through the production of low and no carbon products that build, feed and power the world Lever our existing business platform and portfolio of assets to produce low carbon products 1 2 34 Optimize our strong liquidity position and free cash flow generation to grow the business Utilize our significant manufacturing expertise and experience in ammonia/hydrogen plant operations Create a network of partners/partnerships that bring additional knowledge, expertise, and relationships 5#6LSB INDUSTRIES Experienced Management Team Driving Growth MARK BEHRMAN President & Chief Executive Officer President and CEO of LSB Industries since 2018. He joined the company in 2014 and served as Executive Vice President and CFO from 2015-2018. Prior to LSB, Mr. Behrman had over 30 years of financial and investment banking experience in the industrial, transportation and energy sectors. CHERYL MAGUIRE EVP & Chief Financial Officer Joined LSB Industries in 2015 as the Vice President of Financial Planning and Accounting and was promoted to CFO in 2018. Ms. Maguire has over 20 years of experience in finance and accounting as it relates to the manufacturing and energy sectors. JOHN BURNS EVP, Manufacturing Joined LSB in 2020 as Executive Vice President, Manufacturing with over 30 years of operating experience in petroleum refining and chemical manufacturing sectors, including 8 years of experience with nitrogen-based fertilizer and industrial feedstock sectors. DAMIEN RENWICK EVP, Chief Commercial Officer Joined LSB in 2021 as Executive Vice President, Chief Commercial Officer with more than 20 years of experience in the chemical industry, most recently with Houston-based Cyanco, the largest producer and distributor of sodium cyanide in the world. MICHAEL FOSTER EVP, General Counsel & Secretary DR. JAKOB KRUMMENACHER VP, Clean Energy Joined LSB as General Counsel in 2016. Has more than 28 years of legal experience. Prior to LSB, he most recently served as Senior Vice President, General Counsel and Secretary for Tronox (NYSE: TROX). Joined LSB as Director of Clean Energy in 2021. Has more than 18 years of experience in the energy and chemical industry, including positions of increasing responsibility with CF Industries (NYSE: CF) and BP (NYSE: BP). 9#7Our Core Business#8LSB INDUSTRIES Strategically Located Assets with Regional Competitive Advantages KEY COMPETITIVE ADVANTAGES . • Leveraged to globally competitive, low-cost US natural gas Multiple options to add new, or increase existing, plant production capacities Strategic proximity to key end user markets • Integrated production and logistics network to drive security of supply Norfolk Southern Rail UP Rail Cherokee, AL ■ Ammonia production capacity of 515 tons per day UAN, AN, nitric acid and DEF production UAN expansion pathway Strategically located to supply Eastern Corn Belt fertilizer markets Pryor, OK ■ Ammonia production capacity of 675 tons per day UAN production - UAN expansion pathway Strategically located to supply the Southern Plains with direct rail access to Corn Belt Baytown, TX ■ Nitric acid production ■ Co-located with Covestro under long-term operating agreement El Dorado, AR ■ Ammonia production capacity of 1,350 tons per day ■ Nitric acid, ammonium nitrate (AN), mixed acids, sulfuric acid production Multiple options to add new or increase existing plant production capacities Strategically located to supply AN fertilizer and explosives markets ■ Access to NuStar ammonia pipeline Uniquely placed to sequester carbon emissions and produce low carbon products ∞#9Mining Industrial LSB INDUSTRIES Agricultural Diversified Nitrogen Chemicals Business with Differentiated End Market Positions Key products ■ Urea ammonium nitrate solutions (UAN) ■ Ammonium nitrate (AN) Ammonia End markets Liquid fertilizer for corn and other crops High-efficacy fertilizer for corn, other crops, and pastures and key nitrogen components in nitrogen, phosphorus, and potassium (NPK) fertilizer blends High nitrogen content fertilizer primarily used for corn Ammonia Nitric Acid Application Fertilizer Chemical feedstock, emissions abatement, water treatments, refrigerants Automotive Home Building Semiconductor, nylon and polyurethane intermediates, ammonium nitrate, metals processing ■Sulfuric Acid Diesel exhaust fuel CO2 Ammonium nitrate Pulp and paper, aluminum, water treatment, metals (lithium), and vanadium processing NO, abatement for diesel vehicles ■ Food refrigeration, dry ice, enhanced oil recovery Explosives for mining, quarries, and other blasting activities Mining Chemical Manufacturing 6#10LSB INDUSTRIES Diversified Nitrogen Chemicals Business with Differentiated End Market Positions Broad diversification provides offtake stability and ratability Operational and market flexibility to optimize mix and maximize earnings Revenue by market - 2022 Industrial Agriculture UAN Revenue by Product - 2022 Other Sales balance of spot and contract Volume by sales method - 2022 Ammonia AN and Nitric Acid Contract O Spot 10#11LSB INDUSTRIES Key Growth Initiatives Achieving a culture of excellence Advancing our safety and environmental initiatives Investing capital to promote safe, reliable operations and expand production volume Pursue organic growth ■Capacity expansion through debottlenecking of existing plants and additional upgrading plants Margin enhancement opportunities ■ New products Advancing low CO2 & clean energy strategy ■Blue Ammonia project to sequester CO₂ ■Green Ammonia project to produce ammonia using zero CO2 feedstock and energy ■MOU with Amogy Inc. to develop low-carbon ammonia demand as a marine fuel Pursue accretive acquisitions Geographic expansion ■ Extend existing product line Leverage existing ammonia capacity 11#12Market Dynamics#13LSB INDUSTRIES Market Overview (1) U.S. corn price remains above 10-year average level Supply expected to increase on strong 2023 planting season ■ 2023 corn use expected to increase both globally and domestically Nitrogen price trends have hit an inflection point and have recently begun to increase Tampa ammonia price settled at $390/MT for September, up $95/MT from August ■ Urea and UAN carryout inventories were low which drove positive response to summer fill and prepay programs $10 $8 $6 $4 $2 $0 Sep-13 $2,000 $1,500 $1,000 $500 10-Year Corn Price Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20 Sep-21 Sep-22 Sep-23 10-Year Tampa Ammonia Price ($ per metric ton) $0 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20 Sep-21 Sep-22 Sep-23 Spot Prices Demand remains steady for Industrial products with global producers shifting production from international facilities to U.S. operations due to lower U.S. input costs Solid demand for Mining products due to attractive market fundamentals for quarrying and aggregate production and U.S. metals demand Tampa Ammonia UAN (NOLA) Natural Gas (NYMEX Spot Price) (1) Sources: USDA, Green Markets® A Bloomberg Company, Macrotrends.net, Federal Reserve Economic Data, and Nasdaq.com September 1, 2023 $390 / MT $233 / ST $2.77/MMBtu September 1, 2022 $1,150 / MT $490 / ST $9.26/MMBtu 13#14LSB INDUSTRIES Structural changes in nitrogen markets with strong commodity fundamentals US natural gas drives cost competitiveness European production costs set to underpin ammonia prices Ukraine/Russia conflict to keep grain prices inflated Natural Gas Costs US$/MMBtu 45 40 35 30 25 20 15 10 50 0 Ammonia Prices US$/MT CFR Tampa 1,400 1,200 1,000 800 600 YTD LL 400 200 2018 2019 2020 2021 2022 2023 2024 2025 2026 TTF Henry Hub 2018 2019 2020 2021 2022 2023 2024 2025 2026 Source: USDA, Argus, Bloomberg, CME Group, Management Estimates Note: Forward Tampa estimates based on estimated cost of production from TTF futures Grain Prices US$/bu 16 14 12 10 10 8 64 2 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 Corn Soybeans Wheat 14#15LSB INDUSTRIES Resilient Industrial and Mining Markets Competing for Limited Molecules Strong domestic mining fundamentals Robust industrial market supported by low energy cost advantage Competing demand on nitrogen between Industrial, Mining, and Ag COPPER Electrification, decarbonization, government investments IRON ORE Strong export markets, domestic infrastructure investments, decarbonization AGGREGATES Infrastructure investments, partially offset with slower new housing starts GOLD Strong pricing and low-cost regional mines COAL Long term thermal coal decline currently offset by European energy crisis METALLURGICAL COAL Robust domestic steel demand supported by government investments +/- + + Industrial materials demand broadly correlated to GDP China growth supportive of global demand Slower GDP growth offset by supportive export economics (where applicable) due to globally low energy cost Resurgence in local manufacturing supported by Government investments INDUSTRIAL OPTIMIZE MARKET MIX MINING AGRICULTURE Limited domestic supply capacity growth 15#16Clean Energy Vision and Strategy#17LSB INDUSTRIES Low Carbon Ammonia - Why it Matters 2020 annual consumption of hydrogen and ammonia 74 MMT 187 MMT 100% Other 5% Steel 90% 20% 13% Methanol 80% Industrial uses: explosives, refrigerant, plastics, emission abatement, chemical feedstock, water treatment, pesticides, textiles 70% 29% Ammonia 60% 50% 40% via downstream 80% 30% Fertilizer, either direct or products like urea, UAN, AN, ammonium phosphate 50% Refining 20% 10% 0% Hydrogen Ammonia Source: International Energy Agency, Argus Consulting, CRU Nitrogen Research, IRENA (International Renewable Energy Agency) MMT Global ammonia demand forecast Total demand growth of 32 MMT expected by 2030, a 17% increase from 2020 392 MMT 30 Power Generation 15 H₂ Carrier 100 Marine Fuels 7 Power Generation 12 Industrial 219 MMT 5 Marine Fuels 48 Fertilizers 4 Industrial 16 Fertilizers 2020 demand and 187 supply at 80% operating rates 187 Total demand growth of 205 MMT by 2050 with 145 MMT coming from new ammonia as a fuel 2030 2050 application 17#18LSB INDUSTRIES Company Transformation Underway YESTERDAY Siloed and "good was good enough" Chemicals, HVAC, other disparate businesses Hamstrung by capital structure "Left for dead" by the equity market Low onstream rates; inefficient operations No sustainability plan No cohesive plan for growth - too busy 'putting out fires' Less than $40 million in EBITDA TODAY Professionalized Chemicals-focused Healthy capital structure Trading in line with peers; improved volumes Improving onstream rates; proactively improving operations Sustainability plan supported by clean energy retrofit projects Multiple avenues for growth within existing footprint Multiple of yesterday's EBITDA TOMORROW Energized workforce aligned with the Vision: energy transition leadership Focused on low-carbon chemical and energy products Healthy capital structure, strategic partnerships, and improved access to growth capital An equity story of growth and sustainability Operational excellence with enviable onstream rates Sustainability as a growth engine Expanding competencies, end markets, and footprint Larger scale, lower earnings volatility LSB's Vision is to be a leader in the energy transition - well-positioned to be an early mover 18#19LSB INDUSTRIES Our Current Low Carbon Ammonia Projects Blue Ammonia Project Green Ammonia Project Marine Fuel MOU with Amogy to develop marine fuel supply chain April 2022 agreement with Lapis Energy to develop a CO2 capture and sequestration (CCS) project at El Dorado facility Lapis will capture and sequester >450,000 MT of CO2 produced by LSB's El Dorado ammonia plant ■ Submitted EPA Class VI permit application on February 17, 2023 On March 20, EPA deemed the Class VI permit application administratively complete and began the formal evaluation process Expect operations to start in mid-2025, subject to EPA permitting The carbon captured and permanently sequestered by Lapis is expected to qualify for up to $85 per metric ton in federal incentives under the Internal Revenue Code Section 45Q tax credits Expected to reduce LSB's scope 1 CO2 emissions by 25% Working to develop customer demand/offtake ■May 2022 agreements with Bloom Energy and thyssenkrupp Uhde to develop a project to produce zero-carbon or "green" ammonia at Pryor facility ■Continuing to work with several Engineering, Procurement and Construction firms for additional designs and cost estimates Once project design is selected and board approval granted, the project will move forward into FEED, detailed engineering, and construction Expected production of ~30,000 MT of green ammonia per year with reduction in Pryor's process CO₂ emissions by ~36,000 MT per year Electrolyzers will operate on renewable power from solar and wind facilities in Oklahoma ■ The green hydrogen produced from the electrolyzers is expected to qualify for $3 per kilogram in federal incentives under IRS Code section 45V tax credits Working to develop customer demand/offtake May 2023 memorandum of understanding (MOU) with Amogy Inc. to develop low-carbon ammonia demand as a marine fuel Through joint efforts, the companies will focus on advancing the understanding, utilization, and advocacy of low-carbon ammonia as a sustainable fuel ■Pursuant to the MOU, the companies will collaborate on the evaluation and development of a pilot program that integrates LSB's low carbon ammonia and Amogy's ammonia-to-power solution ■ Upon successful completion of the evaluation and pilot program, we expect to further collaborate at a larger-scale, including exploration of opportunities for development of an end-to-end supply chain of low carbon ammonia and deployment of Amogy technology across multiple applications, including maritime vessels 19#20LSB INDUSTRIES Framework for Advancing Toward the Low Carbon Vision Retrofit existing operations - Blue and Green Explore greenfield ammonia opportunities Continue adding incremental capacity Competitive strengths Kinetic corporate culture POSITION TODAY'S BUSINESS AS LOW CARBON Optimize Product Mix Market knowledge Energy Transition Leadership Ammonia operations expertise Commercial acumen Proactively manage sustainability factors Become a clean energy "partner of choice" GROW THE LOW CARBON FOOTPRINT Build export capabilities Explore other low carbon molecule opportunities 20#21LSB INDUSTRIES Positioning Today's Business for Low Carbon Leadership ■ Execute existing projects to secure a position as one of the first low carbon ammonia producers in North America Optimize tonnage of low carbon products - help develop the low-carbon market ■ Debottleneck to build scale and have more low carbon tons available as the market develops ■ Reduce emissions via new technologies, efficiency gains, and continuous improvement Continue adding incremental capacity Retrofit existing operations - Blue and Green Improve product mix to provide growers with more sustainable products Leverage expected increased demand for low carbon products to greater penetrate industrial end markets - help customers reach their publicly-stated sustainability goals Optimize Product Mix ■ Issue a sustainability report providing emissions reduction targets and performance Energy Transition Leadership Proactively manage sustainability factors 21#22LSB INDUSTRIES Growing the Low Carbon Footprint Explore greenfield ammonia opportunities Energy Transition Explore greenfield clean energy projects in the U.S. ■ Evaluate opportunities as they arise build out project development capabilities ■ Build expertise in the export market - where demand for low carbon ammonia will materialize first Build export capabilities ■ Explore terminalling opportunities to further facilitate long-term growth in clean energy products Participate in the development of low carbon ammonia certification as means to export environmental attributes independently from the physical product Leadership Become a clean energy "partner of choice" Explore other low carbon molecule opportunities Develop a thesis around select adjacent low carbon molecules Selectively pursue opportunities in adjacent low markets - take steps to build out a portfolio of low carbon products ■ Continue to build a reputation for being a "partner of choice" - collaborative, agile, and easy to work with ■ Leverage highly sought-after ammonia operating expertise ■ Position the Company as decarbonization partner for corporates as they look for ways to reach their sustainability goals 22#23Financial Overview#24LSB INDUSTRIES Continued Solid Profitability Through the Cycle 6/30/23 TTM FY'22 FY'21 Net Sales $765 M $902 M $556 M Adjusted $254 M $415 M $191 M EBITDA¹ Adjusted EBITDA Margin¹ 33% 46% 34% Adjusted EPS¹ $1.67 $3.09 $0.85 (1) Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted EPS are non-GAAP measures; see reconciliations in appendix All-time record results in 2022 reflect the impact of Russia's invasion of Ukraine on product selling prices, partially offset by two turnarounds ■ Trailing Twelve Month (TTM) 6/30/23 results. reflect moderation of product selling prices due, in part, to lower cost of production for marginal producers in Europe and weaker industrial demand in Asia translating into increased global supply of nitrogen Impact of lower selling prices during TTM 6/30/23 was partially offset by stronger operating rates and production volumes 24#25LSB INDUSTRIES Robust Liquidity Position Provides Financial Flexibility 6/30/23 6/30/22 Cash & ST Inv. $314 M $451 M Total Debt $584 $715 Net Debt¹/ TTM Adj. EBITDA 1.1X 0.7X TTM Op. Cash Flow $228 M $278 M TTM CAPEX $62 M $37 M TTM Free Cash Flow Conversion² 66% 62% Liquidity position remains robust despite significant return of capital to shareholders ■ Repurchased $125 million in principal amount of our Senior Secured Notes in Q2'23 ■ Returned more than $190 million to shareholders since May 2022 through share repurchase programs Net debt/TTM Adjusted EBITDA of ~1X Continued solid free cash flow despite pricing environment (1) Net debt calculated as total long-term debt including current minus cash and cash equivalents and short-term investments (2) Free Cash Flow Conversion calculated as (Operating Cash Flow - Capital Expenditures) / Adjusted EBITDA 25#26LSB INDUSTRIES Free Cash Flow Supports Investment in Growth ■ Financial flexibility bolstered by substantial Free Cash Flow generated in 2022 ■ Additional significant free cash flow generation expected in 2023 ■ Significant Net Operating Loss (NOL) carryforwards expected to minimize cash taxes for next several years ■ CAPEX of $60-$80 million expected in 2023 related to investments in plant reliability, EH&S and maintenance $52 31% Free Cash Flow and FCF Conversion % (1) ($Millions) $300 79% FY21A FY22A $35 FY21A Generating continued significant free cash flow in 2023 FY23E CAPEX ($Millions) $60-$80 $54 (2) FY22A FY23E (1) Free Cash Flow is defined as Cash Flow from Operations - CapEx. Free Cash Flow Conversion calculated as (Operating Cash Flow - Capital Expenditures) / EBITDA (2) Represents total capex incurred during 2022 of which $46 million was paid during the period 26#27Appendix#28LSB INDUSTRIES The core manufacturing process Nitric Acid AN Solution Natural Gas (Pipeline) Ammonia Note 1 Urea UAN Note 3 HDAN LDAN Prill Note 1 • Truck • Rail • Ammonia Pipeline (El Dorado) Note 2 DEF CO₂ • Barge (Cherokee) Notes: 1) 2) Urea and UAN manufactured at Cherokee and Pryor DEF manufactured at Cherokee 3) HDAN and LDAN prill products manufactured at El Dorado Other product streams are manufactured at the 3 sites that are not depicted in this diagram 28#29LSB INDUSTRIES Adjusted EBITDA Reconciliation LSB Consolidated ($ In Millions) Net income Plus: Interest expense, net Net loss on extinguishment of debt Depreciation and amortization Provision (benefit) for income taxes EBITDA (1) Stock-based compensation Twelve Months Ended December 31, 2022 $230 2021 $44 42 49 - 10 68 70 39 (5) $379 $168 4 Change of Control 63 Noncash (gain) on natural gas contracts (1) Legal fees (Leidos) 1 2 Loss on disposal of assets 2 1 Fair market value adjustment on preferred stock embedded derivatives Turnaround costs 2 29 Adjusted EBITDA (2) $415 10 $191 Adjusted EBITDA Margin 46% 34% (1) EBITDA is defined as net income (loss) plus interest expense net, plus gain on extinguishment of debt, plus depreciation and amortization (D&A) (which includes D&A of property, plant and equipment and amortization of intangible and other assets), plus provision for income taxes. We believe that certain investors consider EBITDA a useful means of measuring our ability to meet our debt service obligations and evaluating our financial performance. EBITDA has limitations and should not be considered in isolation or as a substitute for net income, operating income, cash flow from operations or other consolidated income or cash flow data prepared in accordance with GAAP. Because not all companies use identical calculations, this presentation of EBITDA may not be comparable to a similarly titled measure of other companies. The above table provides a reconciliation of net income (loss) to EBITDA for the periods indicated. (2) Adjusted EBITDA is reported to show the impact of one time/non-cash or non-operating items-such as, non-cash stock-based compensation, loss on disposal of assets and others, one-time income or fees, certain fair market value adjustments, and consulting costs associated with our reliability and purchasing initiatives. We historically have performed Turnaround activities on an annual basis, however we are moving towards extending Turnarounds to a two or three-year cycle. Rather than being capitalized and amortized over the period of benefit, our accounting policy is to recognize the costs as incurred. Given these Turnarounds are essentially investments we exclude them from our calculation of adjusted EBITDA used to assess our performance. We believe that the inclusion of supplementary adjustments to EBITDA is appropriate to provide additional information to investors about certain items. The above table provides reconciliations of EBITDA excluding the impact of the supplementary adjustments. Our policy is to adjust for non-cash, non-recurring, non-operating items that are greater than $0.5 million quarterly or cumulatively. (3) Adjusted EBITDA Margin is adjusted EBITDA as a percentage of net sales. 29#30LSB INDUSTRIES Adjusted EPS Reconciliation 2022 Twelve Months Ended December 31, 2021 Numerator: Net income (loss) attributable to common stockholders Adjustments for Exchange Transaction: Dividend requirements on Series E Redeemable Preferred Deemed dividend on Series E and Series F Redeemable Preferred Accretion of Series E Redeemable Preferred Adjusted net income attributable to common stockholders, excluding Exchange Transaction Other Adjustments: Stock-based compensation Change of control Noncash gain on natural gas contracts Legal fees (Leidos) Loss on disposal of assets FMV adjustment on preferred stock embedded derivative $ 230,347 $ (220,002) 29,914 231,812 1,523 230,347 43,247 4,025 5,516 3,223 (1,205) 1,114 1,894 1,219 823 2,258 Turnaround costs Net loss on extinguishment of debt 29,235 113 9,953 10,259 Adjusted net income attributable to common stockholders, excluding Exchange Transaction and other adjustments $ 266,053 $ 75,968 Denominator: Adjusted weighted-average shares for basic net income per share and for adjusted net income per share, excluding Exchange Transaction (1) 84,753 49,963 Unweighted shares, including unvested restricted Adjustment: stock subject to forfeiture Outstanding shares, net of treasury, at period end for adjusted net income per share, excluding Exchange Transaction and other adjustments Basic net income (loss) per common share Adjusted net income per common share, excluding Exchange Transaction Adjusted net income per common share, excluding Exchange Transaction and other adjustments Adjusted Net Income and Adjusted EPS(1) Adjusted net income attributable to common stockholders, excluding Exchange Transaction Other adjustments Adjusted net income Adjusted net income per common share, excluding Exchange Transaction and other adjustments (1) Excludes the weighted-average shares of unvested restricted stock that are subject to forfeiture 1,250 39,830 86,003 89,793 2.72 $ (4.40) $ 2.72 $ 0.87 3.09 0.85 $ $ 230,347 35,706 266,053 $ 43,247 32,721 $ 75,968 3.09 $ 0.85 30#31LSB INDUSTRIES Adjusted EBITDA Reconciliation - 6/30/23 TTM Net income (loss) Plus: 3 Months Ended 12/31/202 TTM 6/30/23 (4) $109 6/30/2023 3/31/2023 $25 29/30/2022 $16 $66 $2 Interest expense, net 37 8 10 10 Gain on extinguishment of debt Depreciation and amortization (9) (9) 68 17 18 17 16 Provision for income taxes 17 3 6 7 1 EBITDA (1) $222 $45 $48 $100 $29 Stock-based compensation LO 5 2 1 1 1 Legal fees (Leidos) 1 0 0 0 1 Loss on disposal of assets 3 1 2 0 0 Turnaround costs 23 (0) (0) 4 19 Adjusted EBITDA (2) $254 $47 $51 $105 $50 Adjusted EBITDA Margin (3) 33% 28% 28% 45% 27% Net Sales $765 $166 $181 $234 $184 (1) (2) (3) EBITDA is defined as net income (loss) plus interest expense net, plus gain on extinguishment of debt, plus depreciation and amortization (D&A) (which includes D&A of property, plant and equipment and amortization of intangible and other assets), plus provision for income taxes. We believe that certain investors consider EBITDA a useful means of measuring our ability to meet our debt service obligations and evaluating our financial performance. EBITDA has limitations and should not be considered in isolation or as a substitute for net income, operating income, cash flow from operations or other consolidated income or cash flow data prepared in accordance with GAAP. Because not all companies use identical calculations, this presentation of EBITDA may not be comparable to a similarly titled measure of other companies. The above table provides a reconciliation of net income (loss) to EBITDA for the periods indicated. 2) Adjusted EBITDA is reported to show the impact of one time/non-cash or non-operating items-such as, non-cash stock-based compensation, loss on disposal of assets and others, one-time income or fees, certain fair market value adjustments, and consulting costs associated with our reliability and purchasing initiatives. We historically have performed Turnaround activities on an annual basis, however we are moving towards extending Turnarounds to a two or three-year cycle. Rather than being capitalized and amortized over the period of benefit, our accounting policy is to recognize the costs as incurred. Given these Turnarounds are essentially investments we exclude them from our calculation of adjusted EBITDA used to assess our performance. We believe that the inclusion of supplementary adjustments to EBITDA is appropriate to provide additional information to investors about certain items. The above table provides reconciliations of EBITDA excluding the impact of the supplementary adjustments. Our policy is to adjust for non-cash, non-recurring, non-operating items that are greater than $0.5 million quarterly or cumulatively. Adjusted EBITDA Margin is adjusted EBITDA as a percentage of net sales. (4) Quarterly amounts may not sum exactly to the TTM 6/30/23 amounts due to rounding. 31#32LSB INDUSTRIES Adjusted EPS Reconciliation - 6/30/23 TTM TTM Quarter End 6/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Numerator: Net income Adjustments: Gain on extinguishment of debt Stock-based compensation Legal fees (Leidos) Loss on disposal of assets Turnaround costs 109,178 25,095 15,901 65,870 2,312 (8,644) (8,644) 4,503 1,927 719 936 921 866 91 273 200 302 2,853 550 1,890 391 22 23,364 (39) (6) 4,171 19,238 Net income, excluding adjustments $ 132,120 $ 18,980 $ 18,777 $ 71,568 $ 22,795 Denominator: Adjusted weighted-average shares for basic net income per share and for adjusted net income per share(1)(2) 78,347 75,170 75,807 78,224 84,187 Adjustment: Unweighted shares, including unvested restricted stock subject to forfeiture (2) Outstanding shares, net of treasury, at period end for adjusted net income per share, excluding other adjustments(2) Basic net income per common share Net income per common share, excluding adjustments Adjusted Net Income and Adjusted EPS(1) Net income Adjustments Adjusted net income Net income per common share, excluding adjustments 725 409 409 859 1,224 79,072 75,579 76,216 79,083 85,411 $ 1.39 $ 0.33 $ 0.21 $ 0.84 $ 0.03 1.67 $ 0.25 $ 0.25 $ 0.90 $ 0.27 $ 109,178 $ 22,942 $ 132,120 $ 25,095 $ (6,115) 18,980 $ 15,901 $ 2,876 18,777 $ 65,870 2,312 5,698 71,568 20,483 $ 22,795 (1) Excludes the weighted-average shares of unvested restricted stock that are subject to forfeiture (2) TTM 6/30/2023 shares is based on the average of the four quarters 1.67 $ 0.25 $ 0.25 $ 0.90 0.27 32