Ammonia producer LSB Industries, Inc. announced Monday a $150 million sock repurchasing program approved by its Board of Directors.
The Oklahoma City company manufactures ammonia and ammonia-related products at facilities in Cherokee, Alabama, El Dorado, Arkansas and Pryor, Oklahoma and operates a facility for a global chemical company in Baytown, Texas.
“We believe our stock is currently undervalued and this authorization gives us the ability to opportunistically buy shares of what we view as an attractive investment,” stated Mark Behrman, LSB Industries’ President, and Chief Executive Officer.
He said the company remains confident in its outlook for continued profitability and cash flow, despite current nitrogen selling prices coming off multi-year highs.
“We remain committed to creating shareholder value through ongoing operational improvement, execution on our organic growth opportunities, potential reduction of debt and the repurchase of our common stock.”
The repurchase program permits shares to be repurchased in the open market or in private transactions and pursuant to any trading plan that may be adopted in accordance with all applicable securities laws and regulations, including Rule 10b5-1 of the Securities Exchange Act of 1934.
Repurchases will be made at management’s discretion at prices that management considers to be attractive and in the best interests of both LSB Industries and its stockholders. The timing and amount of shares repurchased will depend on a variety of factors, including the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital and LSB’s financial performance. Open market purchases will be conducted in accordance with the limitations set forth in Rule 10b-18 of the Exchange Act and other applicable legal requirements.
The repurchase program may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. The repurchase program does not obligate LSB Industries to purchase any particular number of shares.