LSB Industries establishing path to 100% ownership of El Dorado CCS project

LSB Industries (LXU) announced that it has reached an agreement with Lapis Carbon Solutions that establishes a strategic pathway for LSB to take full ownership of Project Blue, the carbon capture and sequestration project currently underway at its El Dorado, Arkansas facility. Key Transaction Details: LSB Industries to acquire 100% ownership and control of the El Dorado CCS project; No upfront cash payment required at closing; Investment to be made in stages tied to key milestones, with consideration focused on development, permitting, construction, commissioning and operational milestones; Total consideration and remaining completion capital, assuming all milestones achieved, currently estimated at approximately $95 million; Milestone-based structure aligns; Full ownership expected to provide enhanced commercial flexibility to optimize the asset and evaluate future expansion opportunities; The Company expects the project to generate between $25 million and $30 million of annual earnings and cash flow, net of any operating costs associated with CCS operations when fully operational