Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 30, 2023 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-34025 | |
Entity Registrant Name | INTREPID POTASH, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-1501877 | |
Entity Address, Address Line One | 707 17th Street, Suite 4200 | |
Entity Address, City or Town | Denver, | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | 303 | |
Local Phone Number | 296-3006 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | IPI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,158,552 | |
Entity Central Index Key | 0001421461 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 10,451 | $ 18,514 |
Short-term investments | 4,960 | 5,959 |
Accounts receivable: | ||
Trade, net | 39,211 | 26,737 |
Other receivables, net | 854 | 790 |
Inventory, net | 107,174 | 114,816 |
Prepaid expenses and other current assets | 4,432 | 4,863 |
Total current assets | 167,082 | 171,679 |
Property, plant and equipment, and mineral properties, net | 387,851 | 375,630 |
Water rights | 19,184 | 19,184 |
Long-term parts inventory, net | 24,820 | 24,823 |
Long-term investments | 10,824 | 9,841 |
Other assets, net | 7,138 | 7,294 |
Non-current deferred tax asset, net | 184,091 | 185,752 |
Total Assets | 800,990 | 794,203 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 14,858 | 18,645 |
Accrued liabilities | 14,368 | 16,212 |
Accrued employee compensation and benefits | 6,181 | 6,975 |
Other current liabilities | 8,843 | 7,044 |
Total current liabilities | 44,250 | 48,876 |
Advances on credit facility | 5,000 | 0 |
Asset retirement obligation, net of current portion | 27,099 | 26,564 |
Operating lease liabilities | 1,814 | 2,206 |
Finance lease liabilities | 1,219 | 0 |
Other non-current liabilities | 1,315 | 1,479 |
Total Liabilities | 80,697 | 79,125 |
Commitments and Contingencies | ||
Common stock, $0.001 par value; 40,000,000 shares authorized; 12,759,990 and 12,687,822 shares outstanding at March 31, 2023 and December 31, 2022, respectively | 13 | 13 |
Additional paid-in capital | 661,323 | 660,614 |
Retained earnings | 80,969 | 76,463 |
Less treasury stock, at cost | (22,012) | (22,012) |
Total Stockholders' Equity | 720,293 | 715,078 |
Total Liabilities and Stockholders' Equity | $ 800,990 | $ 794,203 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares outstanding | 12,759,990 | 12,687,822 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Less: | ||
Gross Margin | $ 16,352 | $ 47,176 |
Selling and administrative | 8,858 | 6,789 |
Accretion of asset retirement obligation | 535 | 490 |
Loss on sale of assets | 200 | 100 |
Other operating expense (income) | 1,385 | (267) |
Operating Income | 5,374 | 40,064 |
Other Income (Expense) | ||
Equity in earnings of unconsolidated entities | 821 | 0 |
Interest expense, net | 0 | (33) |
Interest income | 85 | 0 |
Other income | 13 | 530 |
Income Before Income Taxes | 6,293 | 40,561 |
Income Tax Expense | (1,787) | (9,139) |
Net Income | $ 4,506 | $ 31,422 |
Weighted Average Shares Outstanding: | ||
Basic (in shares) | 12,694 | 13,160 |
Diluted (in shares) | 12,875 | 13,595 |
Earnings Per Share: | ||
Basic (in dollars per share) | $ 0.35 | $ 2.39 |
Diluted (in dollars per share) | $ 0.35 | $ 2.31 |
Freight Costs [Member] | ||
Less: | ||
Cost of Goods Sold | $ 11,590 | $ 10,237 |
Warehouse and Handling [Member] | ||
Less: | ||
Cost of Goods Sold | 2,733 | 2,476 |
Mineral [Member] | ||
Sales | 86,920 | 104,399 |
Less: | ||
Cost of Goods Sold | $ 56,245 | $ 44,510 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
Balance (in shares) at Dec. 31, 2021 | 13,149,315 | ||||
Balance at Dec. 31, 2021 | $ 663,403 | $ 13 | $ 0 | $ 659,147 | $ 4,243 |
Net income | 31,422 | 31,422 | |||
Stock-based compensation | 1,167 | 1,167 | |||
Exercise of stock options | 90 | 90 | |||
Exercise of stock options (in shares) | 8,727 | ||||
Vesting of restricted common stock, net of common stock used to fund employee income tax withholding due upon vesting (in shares) | 60,833 | ||||
Vesting of restricted common stock, net of common stock used to fund employee income tax withholding due upon vesting | (2,814) | (2,814) | |||
Balance (in shares) at Mar. 31, 2022 | 13,218,875 | ||||
Balance at Mar. 31, 2022 | 693,268 | $ 13 | 0 | 657,590 | 35,665 |
Balance (in shares) at Dec. 31, 2022 | 12,687,822 | ||||
Balance at Dec. 31, 2022 | 715,078 | $ 13 | (22,012) | 660,614 | 76,463 |
Net income | 4,506 | 4,506 | |||
Stock-based compensation | 1,746 | 1,746 | |||
Vesting of restricted common stock, net of common stock used to fund employee income tax withholding due upon vesting (in shares) | 72,168 | ||||
Vesting of restricted common stock, net of common stock used to fund employee income tax withholding due upon vesting | (1,037) | (1,037) | |||
Balance (in shares) at Mar. 31, 2023 | 12,759,990 | ||||
Balance at Mar. 31, 2023 | $ 720,293 | $ 13 | $ (22,012) | $ 661,323 | $ 80,969 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows from Operating Activities: | ||
Net income | $ 4,506 | $ 31,422 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion, and amortization | 9,292 | 8,898 |
Accretion of asset retirement obligation | 535 | 490 |
Amortization of deferred financing costs | 75 | 60 |
Amortization of Intangible Assets | 80 | 80 |
Stock-based compensation | 1,746 | 1,167 |
Loss on disposal of assets | 200 | 100 |
Equity in earnings of unconsolidated entities | (821) | 0 |
Distribution of earnings from unconsolidated entities | 320 | 0 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable, net | (12,474) | (16,199) |
Other receivables, net | (92) | (384) |
Inventory, net | 7,645 | 847 |
Prepaid expenses and other current assets | 250 | (76) |
Deferred tax assets, net | 1,661 | 9,000 |
Accounts payable, accrued liabilities, and accrued employee compensation and benefits | (5,305) | (862) |
Operating lease liabilities | (401) | (795) |
Other liabilities | 1,232 | 362 |
Net cash provided by operating activities | 8,449 | 34,110 |
Cash Flows from Investing Activities: | ||
Additions to property, plant, equipment, mineral properties, and other assets | (21,039) | (6,795) |
Purchase of investments | (956) | (903) |
Proceeds from sale of assets | 65 | 24 |
Proceeds from redemptions/maturities of investments | 1,500 | 0 |
Net cash used in investing activities | (20,430) | (7,674) |
Cash Flows from Financing Activities: | ||
Proceeds from credit facility | 5,000 | 0 |
Payments of financing lease | (43) | 0 |
Employee tax withholding paid for restricted stock upon vesting | (1,037) | (2,814) |
Proceeds from exercise of stock options | 0 | 90 |
Net cash provided by (used in) financing activities | 3,920 | (2,724) |
Net Change in Cash, Cash Equivalents and Restricted Cash | (8,061) | 23,712 |
Cash, Cash Equivalents, and Restricted Cash, beginning of period | 19,084 | 37,146 |
Cash, Cash Equivalents, and Restricted Cash, end of period | 11,023 | 60,858 |
Supplemental disclosure of cash flow information | ||
Interest | 59 | 22 |
Income taxes | 9 | 13 |
Amounts included in the measurement of operating lease liabilities | 460 | 542 |
Accrued purchases for property, plant, equipment, and mineral properties | 7,410 | 1,505 |
Right-of-use assets exchanged for operating lease liabilities | 0 | 546 |
Right-of-use assets exchanged for financing lease liabilities | $ 1,677 | $ 0 |
COMPANY BACKGROUND
COMPANY BACKGROUND | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
COMPANY BACKGROUND | COMPANY BACKGROUND We are a diversified mineral company that delivers potassium, magnesium, sulfur, salt, and water products essential for customer success in agriculture, animal feed and the oil and gas industry. We are the only U.S. producer of muriate of potash (sometimes referred to as potassium chloride or potash), which is applied as an essential nutrient for healthy crop development, utilized in several industrial applications, and used as an ingredient in animal feed. In addition, we produce a specialty fertilizer, Trio ® , which delivers three key nutrients, potassium, magnesium, and sulfate, in a single particle. We also provide water, magnesium chloride, brine and various oilfield products and services. Our extraction and production operations are conducted entirely in the continental United States. We produce potash from three solution mining facilities: our HB solution mine in Carlsbad, New Mexico, our solution mine in Moab, Utah, and our brine recovery mine in Wendover, Utah. We also operate the North compaction facility in Carlsbad, New Mexico, which compacts and granulates product from the HB mine. We produce Trio ® from our conventional underground East mine in Carlsbad, New Mexico. We have permitted, licensed, declared and partially adjudicated water rights in New Mexico that support our mining and industrial operations. Water that is not used to support our mining and industrial operations is primarily sold to support oil and gas development in the Permian Basin in New Mexico near our Carlsbad facilities. We continue to work to expand our water business. See Note 14—Commitments and Contingencies below for further information regarding our water rights. We also operate certain land, water rights, state grazing leases for cattle, and other related assets in southeast New Mexico. We refer to these assets and operations as "Intrepid South." Due to the strategic location of Intrepid South, part of our long-term operating strategy is selling small parcels of land, including restricted use agreements of surface or subsurface rights, to customers where such sales provide a solution to such customer's operations in the oil and gas industry. We have three segments: potash, Trio ® , and oilfield solutions. We account for sales of byproducts as revenue in the potash or Trio ® segment based on which segment generates the byproduct. Intersegment sales prices are market based and are eliminated. "Intrepid," "our," "we," or "us," means Intrepid Potash, Inc. and its consolidated subsidiaries. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Financial Statement Presentation —Our unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of interim financial information, have been included. These unaudited condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022. Pronouncements Issued But Not Yet Adopted —We believe that all recently issued accounting pronouncements from the FASB either do not apply to us or will not have a material impact on our Condensed Consolidated Financial Statements. Reclassifications of Prior Period Presentation —Certain prior period amounts have been reclassified in order to conform to the current period presentation. These reclassifications had no effect on the reported results of operations. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. For purposes of determining diluted earnings per share, basic weighted-average common shares outstanding is adjusted to include potentially dilutive securities, including restricted stock, stock options, and performance units. The treasury-stock method is used to measure the dilutive impact of potentially dilutive shares. Potentially dilutive shares are excluded from the diluted weighted-average shares outstanding computation in periods in which they have an anti-dilutive effect. The following table shows the calculation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended 2023 2022 Net income $ 4,506 $ 31,422 Basic weighted-average common shares outstanding 12,694 13,160 Add: Dilutive effect of restricted stock 125 320 Add: Dilutive effect of stock options 56 115 Diluted weighted-average common shares outstanding 12,875 13,595 Basic $ 0.35 $ 2.39 Diluted $ 0.35 $ 2.31 The following table shows the shares that have an anti-dilutive effect and are excluded from the diluted weighted-average shares outstanding computations (in thousands): Three Months Ended 2023 2022 Anti-dilutive effect of restricted stock 187 125 Anti-dilutive effect of stock options outstanding 156 — |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 3 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | CASH, CASH EQUIVALENTS AND RESTRICTED CASH We consider financial instruments with original maturities of three months or less to be cash equivalents. Total cash, cash equivalents and restricted cash, as shown on the condensed consolidated statements of cash flows are included in the following accounts at March 31, 2023, and 2022 (in thousands): March 31, 2023 March 31, 2022 Cash and cash equivalents $ 10,451 $ 60,139 Restricted cash included in other current assets 25 175 Restricted cash included in other long-term assets 547 544 Total cash, cash equivalents, and restricted cash as shown in the statement of cash flows $ 11,023 $ 60,858 Restricted cash included in other current and long-term assets on the condensed consolidated balance sheets represents amounts for which use is restricted by contractual agreements with various entities, principally the Bureau of Land Management or the State of Utah, as security to fund future reclamation obligations at our sites. |
INVENTORY AND LONG-TERM PARTS I
INVENTORY AND LONG-TERM PARTS INVENTORY | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORY AND LONG-TERM PARTS INVENTORY | INVENTORY AND LONG-TERM PARTS INVENTORY The following summarizes our inventory, recorded at the lower of weighted-average cost or estimated net realizable value, as of March 31, 2023, and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Finished goods product inventory $ 71,826 $ 74,777 In-process inventory 18,984 24,767 Total product inventory 90,810 99,544 Current parts inventory, net 16,364 15,272 Total current inventory, net 107,174 114,816 Long-term parts inventory, net 24,820 24,823 Total inventory, net $ 131,994 $ 139,639 Parts inventory is shown net of estimated allowances for obsolescence of $1.3 million as of March 31, 2023, and December 31, 2022. |
PROPERTY, PLANT, EQUIPMENT, AND
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES | PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES Property, plant, equipment, and mineral properties were comprised of the following (in thousands): March 31, 2023 December 31, 2022 Land $ 24,136 $ 24,136 Ponds and land improvements 74,138 73,501 Mineral properties and development costs 146,335 146,333 Buildings and plant 89,478 89,014 Machinery and equipment 292,986 288,345 Vehicles 7,709 7,399 Office equipment and improvements 10,625 10,436 Operating lease ROU assets 5,694 5,908 Breeding stock 322 329 Construction in progress 61,938 47,188 Total property, plant, equipment, and mineral properties, gross $ 713,361 $ 692,589 Less: accumulated depreciation, depletion, and amortization (325,510) (316,959) Total property, plant, equipment, and mineral properties, net $ 387,851 $ 375,630 We incurred the following expenses for depreciation, depletion, and amortization, including expenses capitalized into inventory, for the following periods (in thousands): Three Months Ended March 31, 2023 2022 Depreciation $ 7,727 $ 7,188 Depletion 1,177 1,144 Amortization of right of use assets 388 566 Total incurred $ 9,292 $ 8,898 |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Revolving Credit Facility —In August 2022, we and certain of our subsidiaries entered into the Second Amended and Restated Credit Agreement with a syndicate of lenders with the Bank of Montreal, as administrative agent, which provides for a revolving credit facility. The agreement amended our existing revolving credit facility to, among other things, increase the amount available under the facility from $75 million to $150 million, extend the maturity date to August 4, 2027, and transition from LIBOR to Secured Overnight Financing Rate ("SOFR") as a reference rate for borrowings under the credit agreement. Borrowings under the amended credit facility bear interest at SOFR plus an applicable margin of 1.50% to 2.25% per annum, based on our leverage ratio as calculated in accordance with the amended agreement governing the revolving credit facility. Borrowings under the revolving credit facility are secured by substantially all of our current and non-current assets, and the obligations under the credit facility are unconditionally guaranteed by several of our subsidiaries. We occasionally borrow and repay amounts under the revolving credit facility for near-term working capital needs or other purposes and may do so in the future. During the three months ended March 31, 2023, we made $5.0 million in borrowings, and we made no repayments under the revolving credit facility. During the three months ended March 31, 2022, we made no borrowings, and we ma de no r epayments under the revolving credit facility. As of March 31, 2023, we had $5.0 million in borrowings outstanding and no outstanding letters of credit under this facility. As of December 31, 2022, we had no borrowings outstanding and $1.0 million in outstanding letters of credit under this facility. As of March 31, 2023, we were in compliance with all applicable covenants under the revolving credit facility. Interest Expense —Interest expense is recorded net of any capitalized interest associated with investments in capital projects. We incurred gross interest expense of $0.2 million and $0.1 million for the three months ended March 31, 2023 and March 31, 2022, respectively. Amounts included in interest expense, net for the three months ended March 31, 2023, and 2022 were as follows (in thousands): Three Months Ended 2023 2022 Interest expense on borrowings $ 22 $ — Commitment fee on unused credit facility 56 21 Amortization of deferred financing costs 75 60 Gross interest expense 153 81 Less capitalized interest (153) (48) Interest expense, net $ — $ 33 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS We have water rights, recorded at $19.2 million at March 31, 2023, and December 31, 2022. Our water rights have indefinite lives and are not amortized. We evaluate our water rights at least annually on October 1 for impairment, or more frequently if circumstances require. We account for other intangible assets as finite-lived intangible assets and amortize those intangible assets over the period of estimated benefit, using the straight-line method. The weighted average amortization period for the other intangible assets is approximately 16.0 years. At March 31, 2023, and December 31, 2022, these intangible assets had a net book value of $5.2 million and $5.2 million, respectively, and are included in "Other assets, net" on the Condensed Consolidated Balance Sheets. |
FINANCIAL INFORMATION FOR SUBSI
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT | 3 Months Ended |
Mar. 31, 2023 | |
Guarantees [Abstract] | |
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT | FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT Intrepid Potash, Inc., as the parent company, has no independent assets or operations, and operations are conducted solely through its subsidiaries. Cash generated from operations is held at the parent-company level as cash on hand and cash equivalents and totaled $10.5 million and $18.5 million at March 31, 2023, and December 31, 2022, respectively. If one or more of our wholly-owned operating subsidiaries guarantee public debt securities in the future, those guarantees will be full and unconditional and will constitute the joint and several obligations of the subsidiary guarantors. The assets and liabilities of our other subsidiaries are immaterial. There are no restrictions on our ability to obtain cash dividends or other distributions of funds from the subsidiary guarantors, except those imposed by applicable law. |
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION | 3 Months Ended |
Mar. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATION | ASSET RETIREMENT OBLIGATION We recognize an estimated liability for future costs associated with the abandonment and reclamation of our mining properties. A liability for the fair value of an asset retirement obligation and a corresponding increase to the carrying value of the related long-lived asset are recorded as the mining operations occur or the assets are acquired. Our asset retirement obligation is based on the estimated cost to close and reclaim the mining operations, the economic life of the properties, and federal and state regulatory requirements. The liability is discounted using credit adjusted risk-free rate estimates at the time the liability is incurred or when there are upward revisions to estimated costs. The credit adjusted risk-free rates used to discount our reclamation liabilities range from 6.9% to 9.7%. Revisions to the liability occur due to construction of new or expanded facilities, changes in estimated closure costs or economic lives, or if federal or state regulators enact new requirements regarding the closure or reclamation of mines. Following is a table of the changes to our asset retirement obligation for the following periods (in thousands): Three Months Ended March 31, 2023 2022 Asset retirement obligation, at beginning of period $ 26,864 $ 27,024 Accretion of discount 535 490 Total asset retirement obligation, at end of period $ 27,399 $ 27,514 Less current portion of asset retirement obligation $ (300) $ — Long-term portion of asset retirement obligation $ 27,099 $ 27,514 The current portion of the asset retirement obligation is included in "Other current liabilities" on the Condensed Consolidated Balance Sheet as of March 31, 2023. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Revenue Recognition —We account for revenue in accordance with ASC Topic 606 Revenue from Contracts with Customers ("ASC 606"). Under ASC 606, we recognize revenue when control of the promised goods or services is transferred to customers in an amount that reflects the consideration we expect in exchange for those goods or services. The timing of revenue recognition, billings, and cash collection may result in contract assets or contract liabilities. Contract Balances: As of March 31, 2023, and December 31, 2022, we had a total of $2.3 million and $2.4 million of contract liabilities, respectively, of which $1.0 million and $0.9 million were current as of March 31, 2023, and December 31, 2022, respectively, and included in "Other current liabilities" on the condensed consolidated balance sheets. Customer advances received before we have satisfied our performance obligations are accounted for as a contract liability (sometimes referred to in practice as deferred revenue). As of March 31, 2022, our contract liability balance primarily consisted of prepayments from a customer for future water deliveries under the terms of a water sales agreement. In August 2022, our customer notified us that they were terminating the water sales agreement and in September 2022 we refunded the customer's prepayment balance of $32.6 million. See Note 14—Commitments and Contingencies below for additional information regarding our water rights and repayment of this customer's prepayment balance. Our deferred revenue activity for the three months ended March 31, 2023, and 2022 is shown below (in thousands): Three Months Ended March 31, 2023 2022 Beginning balance $ 2,374 $ 33,788 Additions 145 349 Recognized as revenue during period (245) (114) Ending Balance $ 2,274 $ 34,023 Disaggregation of Revenue: The tables below show the disaggregation of revenue by product and reconciles disaggregated revenue to segment revenue for the three months ended March 31, 2023, and 2022. We believe the disaggregation of revenue by products best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic conditions (in thousands): Three Months Ended March 31, 2023 Product Potash Segment Trio ® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 47,155 $ — $ — $ (101) $ 47,054 Trio ® — 29,053 — — 29,053 Water 80 1,048 1,619 — 2,747 Salt 3,043 173 — — 3,216 Magnesium Chloride 1,137 — — — 1,137 Brine Water 1,082 — 822 — 1,904 Other — — 1,809 — 1,809 Total Revenue $ 52,497 $ 30,274 $ 4,250 $ (101) $ 86,920 Three Months Ended March 31, 2022 Product Potash Segment Trio ® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 51,622 $ — $ — $ (95) $ 51,527 Trio ® — 39,616 — — 39,616 Water 774 1,202 4,188 — 6,164 Salt 2,634 234 — — 2,868 Magnesium Chloride 815 — — — 815 Brine Water 597 — 739 — 1,336 Other — — 2,073 — 2,073 Total Revenue $ 56,442 $ 41,052 $ 7,000 $ (95) $ 104,399 |
COMPENSATION PLANS
COMPENSATION PLANS | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
COMPENSATION PLANS | COMPENSATION PLANS Equity Incentive Compensation Plan —Our Board of Directors and stockholders adopted a long-term incentive compensation plan called the Intrepid Potash, Inc. Amended and Restated Equity Incentive Plan (the "Plan"). The Plan was most recently amended and restated in May 2022. We have issued common stock, restricted stock, performance units, and non-qualified stock option awards under the Plan. At March 31, 2023, approxi mately 1.0 million s hares remained available for issuance under the Plan. In March 2023, the Compensation Committee granted 225,117 shares of restricted stock to executive officers and other key employees. These awards vest over three three Outstanding as of Restricted Shares 399 Non-qualified Stock Options 273 Total share-based compensation expense was $1.7 million and $1.2 million for the three months ended March 31, 2023, and 2022, respectively. As of March 31, 2023, we had $10.3 million of total remaining unrecognized compensation expense related to awards that is expected to be recognized over a weighted-average period of 1.6 years. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our anticipated annual tax rate is impacted primarily by the amount of taxable income associated with each jurisdiction in which our income is subject to income tax, permanent differences between the financial statement carrying amounts and tax bases of assets and liabilities, and the benefit associated with the estimated effect of the percentage depletion deduction. A summary of our provision for income taxes is as follows (in thousands): Three Months Ended March 31, 2023 2022 Current portion of income tax expense $ 126 $ 139 Deferred portion of income tax expense 1,661 9,000 Total income tax expense $ 1,787 $ 9,139 Our effective tax rate for the three months ended March 31, 2023, was 28.4%. Our effective tax rate differed from the statutory rate during this period primarily from the estimated permanent difference between book and tax income for the first quarter of 2023 for the officers' compensation deduction. Additionally, because small changes in projected income may produce significant variations in our estimated annual effective tax rate, we have determined that we are unable to reliably estimate an annual effective tax rate to apply to our income for the quarter ended March 31, 2023, as described in ASC 740. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Reclamation Deposits and Surety Bonds —As of March 31, 2023, and December 31, 2022, we had $26.5 million and $24.6 million, respectively, of security placed principally with the State of Utah and the Bureau of Land Management for eventual reclamation of our various facilities. As of March 31, 2023, $0.5 million consisted of long-term restricted cash deposits and $26.0 million was secured by surety bonds issued by an insurer. As of December 31, 2022, $0.5 million consisted of long-term restricted cash deposits and $24.1 million was secured by surety bonds issued by an insurer. The restricted cash deposits are included in "Other assets, net" on the condensed consolidated balance sheets and the surety bonds are held in place by an annual fee paid to the issuer. We may be required to post additional security to fund future reclamation obligations as reclamation plans are updated or as governmental entities change requirements. Legal —We are subject to claims and legal actions in the ordinary course of business. We expense legal costs as they are incurred. While there are uncertainties in predicting the outcome of any claim or legal action, except as noted below, we believe the ultimate resolution of these claims or actions is not reasonably likely to have a material adverse effect on our financial condition, results of operations, or cash flows. Water Rights and Other Legal Contingencies In February 2019, an expedited inter se proceeding commenced to determine the validity of our Pecos River water rights, representing approximately 20,000 acre feet per year. On December 17, 2021, the adjudication court entered its findings of fact and conclusions of law, which held that our predecessors in interest had forfeited all but approximately 5,800 acre feet of water per year, and that of the remaining 5,800 acre feet of water that had not been forfeited, all but 150 acre feet of water had been abandoned prior to 2017. On March 17, 2022, the adjudication court entered the subfile order and partial final judgment and decree, which adopted the court's December 17, 2021 findings of fact and conclusion of law and specifies our right to 150 acre feet per annum of water for industrial-salt processing use. On April 15, 2022, we filed a notice of appeal of the adjudication court's ruling on the validity of our water rights. The appeal is currently before the New Mexico Court of Appeals and the matter has been fully briefed. In 2017 and 2018 the New Mexico Office of the State Engineer ("OSE") had granted us preliminary and emergency authorizations to sell approximately 5,700 acre-feet of water per year from our Pecos River Water rights. The preliminary and emergency authorizations allowed for water sales to begin immediately, subject to repayment if the underlying water rights were ultimately found to be invalid. If our appeal of the adjudication court's ruling is unsuccessful, we may have to repay for the water we sold under the preliminary authorizations. Repayment of this water can be up to two times the amount of water removed from the river. Repayment is customarily made in-kind over a period of time but can take other forms including cash repayment. If we are not able to repay in-kind due to the lack of remaining water rights or logistical constraints, we may need to purchase water to meet this repayment or be subject to a cash repayment. We cannot reasonably estimate the potential volume, timing, or form of repayment, if any, and have not recorded a loss contingency in our Condensed Consolidated Statement of Operations related to this legal matter. In March 2021, we received notice from a customer of a default under the terms of a long-term sales contract because we have been unable to deliver water to diversion points specified in the contract. We have relied primarily upon our Pecos River water rights to deliver water under this contract, the majority of which are currently unavailable due to the factors discussed above. Under this contract we had previously received quarterly installments of approximately $3.9 million for the future delivery of water to the customer. In April 2021, we agreed to suspend the second quarter 2021 and future quarterly installments due from the customer as we continued to work to resolve the issue. In December 2021, we amended our long-term sales agreement with the customer due to our inability to deliver water. Under the amendment, we agreed to suspend all rights and obligations of both parties under the agreement until July 1, 2022. During the suspension period, we had no obligation to deliver water and our customer had no obligation to take water, if available, or make quarterly payments to us. In August 2022, the customer notified us that they were terminating the long-term sales contract and in September 2022, we refunded the $32.6 million outstanding contract liability we had with this customer. See Note 11—Revenue above for additional information. In August 2021, NGL Energy Partners (NGL), our partner in a Joint Marketing Agreement (“JMA”) filed suit against us alleging, amongst other items, we overcharged the JMA for various operating costs and that we used third party water to service certain fracs when JMA water should have been used in those fracs. On June 22, 2022, we entered into a settlement agreement with NGL in connection with this matter and the lawsuit was dismissed with prejudice on June 29, 2022. The settlement did not have a material impact on our results of operations and the JMA was terminated. |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE We measure our financial assets and liabilities in accordance with ASC Topic 820, Fair Value Measurements and Disclosures. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation at the measurement date: Level 1 - Quoted market prices in active markets for identical assets or liabilities. Level 2 - Inputs, other than Level 1, that are either directly or indirectly observable. Level 3 - Unobservable inputs developed using estimates and assumptions which reflect those that market participants would use. The classification of fair value measurement within the hierarchy is based upon the lowest level of input that is significant to the measurement. Other financial instruments consist primarily of cash equivalents, accounts receivable, refundable income taxes, investment securities, accounts payable, accrued liabilities, and, if any, advances under our credit facility. With the exception of investment securities, we believe cost approximates fair value for our financial instruments because of the short-term nature of these instruments. Cash Equivalents —As of March 31, 2023, and December 31, 2022, we had cash equivalents of $0.5 million and $1.7 million, respectively. Held-to-Maturity Investments —As of March 31, 2023, we owned debt investment securities classified as held-to-maturity because we have the intent and ability to hold these investments to maturity. Our held-to-maturity debt investment securities consist of investment grade corporate bonds and U.S. government issued bonds. These debt securities are carried at amortized cost and consist of the following (amounts in thousands): As of March 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term Corporate bonds $ 2,994 $ — $ (18) $ 2,976 Government bonds 1,966 — (17) 1,949 Total $ 4,960 $ — $ (35) $ 4,925 Long-term Corporate bonds $ 983 $ — $ (11) $ 972 Government bonds 1,934 — (11) 1,923 Total $ 2,917 $ — $ (22) $ 2,895 Our long-term held to maturity investments are recorded in "Long-term investments" on the Condensed Consolidated Balance Sheets. As of March 31, 2023 and December 31, 2022, we had $7.9 million and $8.4 million in held-to-maturity debt investment securities, respectively. Our long-term held-to-maturity investments mature in less than 2 years. Equity Investments without a Readily Determinable Fair Value —In May 2020, we acquired a non-controlling equity investment in W.D. Von Gonten Laboratories ("WDVGL") for $3.5 million. We account for this investment as an equity investment without a readily determinable fair value and elected to measure our investment, as permitted by GAAP, at cost plus or minus any adjustments for observable changes in prices resulting from orderly transactions for the identical or a similar investment of the same issuer or impairment. As of March 31, 2023, and December 31, 2022, we had not recorded any adjustments to the carrying value of this investment since the purchase in May 2020. We include this investment in "Long-term investments" on the Condensed Consolidated Balance Sheets. In July 2022, WDVGL entered into a purchase agreement with another company (“Acquiror”), a foreign issuer whose shares are traded on the Nasdaq Capital Market (“Nasdaq”). Under the terms of the purchase agreement, WDVGL would be combined with the consulting business owned by W.D. Von Gonten (“Consulting”) to form a new entity, W.D. Von Gonten Engineering, LLC (“Engineering”), and Acquiror would then purchase Engineering in a majority stock transaction at an agreed upon selling price. Acquiror delivered equity shares and a nominal amount of cash for purchase of Engineering in July 2022, with the number of shares equal to the selling price divided by an assumed $10 share price. Under the terms of the purchase agreement, if Acquiror was current in its SEC filing on June 30, 2023, the actual number of shares would be adjusted to equal the agreed upon purchase price divided by the average closing price of Acquiror’s stock for the ten trading days prior to June 30, 2023, and the stock received from the sale of Engineering would be distributed to the investors in WDVGL and Consulting. In March 2022, Acquiror disclosed that it had discovered errors in its financ ial statements for the fiscal years ended December 31, 2018, 2019 and 2020, and was working to file restated financial statements with the SEC. On A pril 27, 2023, Acquiror disclosed it had not been able to file its Annual Report on Form 20-F for the fiscal year ended December 31, 2021 with the SEC by April 25, 2023, which was the deadline set by Nasdaq Hearings Panel in connection with a delisting proceeding, and Acquiror’s shares were subsequently delisted from Nasdaq. Acquiror also disclosed on April 27, 2023 that it has shifted its focus to filing audited financial statements with the SEC for the fiscal years ended December 31, 2020, 2021 and 2022 to regain compliance with Nasdaq listing standards before the end of 2023. Pursuant to the purchase agreement with Engineering, if the Acquiror does not file current financial statements with the SEC by June 30, 2023, Engineering has the option to terminate the purchase agreement, beginning on July 1, 2023. While it is unlikely Acquiror will be able to file current financial statements by June 30, 2023, Engineering intends to proceed with the purchase agreement and allow Acquiror additional time to file updated financial statements. We have not impaired our investment in WDVGL because our share of the estimated selling price exceeds the carrying value of our investment in WDVGL. We will continue to monitor the investment for impairment. If Acquiror is unable to file restated financial statements by the end of 2023 and the purchase transaction is not finalized, we may need to impair our investment in WDVGL. Equity Method Investments —We have committed to invest up to $4.0 million in cash as a limited partner for a 16% interest in PEP Ovation, LP ("Ovation"), of which we had invested $3.2 million of cash as of March 31, 2023, and December 31, 2022. This investment is accounted for under the equity method whereby we recognize our proportional share of the income or loss from our investment in Ovation on a one-quarter lag. This investment is included in "Long-term investments" on the Condensed Consolidated Balance Sheets. For the three months ended March 31, 2023, our proportional share of Ovation's net income was $0.8 million. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS Our operations are organized into three segments: potash, Trio ® and oilfield solutions. We determine reportable segments based on several factors including the types of products and services sold, production processes, markets served and the financial information available for our chief operating decision maker. We evaluate performance based on the gross margins of the respective business segments and do not allocate corporate selling and administrative expenses, among others, to the respective segments. Intersegment sales prices are market-based and are eliminated in the "Other" column. Information for each segment is provided in the tables that follow (in thousands). Three Months Ended Potash Trio ® Oilfield Solutions Other Consolidated Sales $ 52,497 $ 30,274 $ 4,250 $ (101) $ 86,920 Less: Freight costs 5,005 6,686 — (101) 11,590 Warehousing and handling 1,480 1,253 — — 2,733 Cost of goods sold 31,584 20,883 3,778 — 56,245 Gross Margin $ 14,428 $ 1,452 $ 472 $ — $ 16,352 Depreciation, depletion, and amortization incurred 1 $ 7,051 $ 1,206 $ 907 $ 208 $ 9,372 Three Months Ended Potash Trio ® Oilfield Solutions Other Consolidated Sales $ 56,442 $ 41,052 $ 7,000 $ (95) $ 104,399 Less: Freight costs 4,023 6,309 — (95) 10,237 Warehousing and handling 1,324 1,152 — — 2,476 Cost of goods sold 22,031 17,451 5,028 — 44,510 Gross Margin $ 29,064 $ 16,140 $ 1,972 $ — $ 47,176 Depreciation, depletion, and amortization incurred 1 $ 6,947 $ 1,008 $ 787 $ 236 $ 8,978 1 Depreciation, depletion, and amortization incurred for potash and Trio ® excludes depreciation, depletion and amortization amounts absorbed in or relieved from inventory. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Financial Statement Presentation | Our unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of interim financial information, have been included. These unaudited condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022. |
Recently Adopted Accounting Standards | We believe that all recently issued accounting pronouncements from the FASB either do not apply to us or will not have a material impact on our Condensed Consolidated Financial Statements. |
Reclassifications of Prior Period Presentation | Certain prior period amounts have been reclassified in order to conform to the current period presentation. These reclassifications had no effect on the reported results of operations. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Earnings Per Share | Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. For purposes of determining diluted earnings per share, basic weighted-average common shares outstanding is adjusted to include potentially dilutive securities, including restricted stock, stock options, and performance units. The treasury-stock method is used to measure the dilutive impact of potentially dilutive shares. Potentially dilutive shares are excluded from the diluted weighted-average shares outstanding computation in periods in which they have an anti-dilutive effect. The following table shows the calculation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended 2023 2022 Net income $ 4,506 $ 31,422 Basic weighted-average common shares outstanding 12,694 13,160 Add: Dilutive effect of restricted stock 125 320 Add: Dilutive effect of stock options 56 115 Diluted weighted-average common shares outstanding 12,875 13,595 Basic $ 0.35 $ 2.39 Diluted $ 0.35 $ 2.31 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table shows the shares that have an anti-dilutive effect and are excluded from the diluted weighted-average shares outstanding computations (in thousands): Three Months Ended 2023 2022 Anti-dilutive effect of restricted stock 187 125 Anti-dilutive effect of stock options outstanding 156 — |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents And Restricted Cash | Total cash, cash equivalents and restricted cash, as shown on the condensed consolidated statements of cash flows are included in the following accounts at March 31, 2023, and 2022 (in thousands): March 31, 2023 March 31, 2022 Cash and cash equivalents $ 10,451 $ 60,139 Restricted cash included in other current assets 25 175 Restricted cash included in other long-term assets 547 544 Total cash, cash equivalents, and restricted cash as shown in the statement of cash flows $ 11,023 $ 60,858 |
INVENTORY AND LONG-TERM PARTS_2
INVENTORY AND LONG-TERM PARTS INVENTORY (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Summary of Inventory | The following summarizes our inventory, recorded at the lower of weighted-average cost or estimated net realizable value, as of March 31, 2023, and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Finished goods product inventory $ 71,826 $ 74,777 In-process inventory 18,984 24,767 Total product inventory 90,810 99,544 Current parts inventory, net 16,364 15,272 Total current inventory, net 107,174 114,816 Long-term parts inventory, net 24,820 24,823 Total inventory, net $ 131,994 $ 139,639 |
PROPERTY, PLANT, EQUIPMENT, A_2
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, Equipment, and Mineral Properties | Property, plant, equipment, and mineral properties were comprised of the following (in thousands): March 31, 2023 December 31, 2022 Land $ 24,136 $ 24,136 Ponds and land improvements 74,138 73,501 Mineral properties and development costs 146,335 146,333 Buildings and plant 89,478 89,014 Machinery and equipment 292,986 288,345 Vehicles 7,709 7,399 Office equipment and improvements 10,625 10,436 Operating lease ROU assets 5,694 5,908 Breeding stock 322 329 Construction in progress 61,938 47,188 Total property, plant, equipment, and mineral properties, gross $ 713,361 $ 692,589 Less: accumulated depreciation, depletion, and amortization (325,510) (316,959) Total property, plant, equipment, and mineral properties, net $ 387,851 $ 375,630 |
Schedule of Depreciation, Depletion and Accretion | We incurred the following expenses for depreciation, depletion, and amortization, including expenses capitalized into inventory, for the following periods (in thousands): Three Months Ended March 31, 2023 2022 Depreciation $ 7,727 $ 7,188 Depletion 1,177 1,144 Amortization of right of use assets 388 566 Total incurred $ 9,292 $ 8,898 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule Of Interest Expense | Amounts included in interest expense, net for the three months ended March 31, 2023, and 2022 were as follows (in thousands): Three Months Ended 2023 2022 Interest expense on borrowings $ 22 $ — Commitment fee on unused credit facility 56 21 Amortization of deferred financing costs 75 60 Gross interest expense 153 81 Less capitalized interest (153) (48) Interest expense, net $ — $ 33 |
ASSET RETIREMENT OBLIGATION (Ta
ASSET RETIREMENT OBLIGATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Changes to Asset Retirement Obligation | Following is a table of the changes to our asset retirement obligation for the following periods (in thousands): Three Months Ended March 31, 2023 2022 Asset retirement obligation, at beginning of period $ 26,864 $ 27,024 Accretion of discount 535 490 Total asset retirement obligation, at end of period $ 27,399 $ 27,514 Less current portion of asset retirement obligation $ (300) $ — Long-term portion of asset retirement obligation $ 27,099 $ 27,514 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Contract Balances | As of March 31, 2023, and December 31, 2022, we had a total of $2.3 million and $2.4 million of contract liabilities, respectively, of which $1.0 million and $0.9 million were current as of March 31, 2023, and December 31, 2022, respectively, and included in "Other current liabilities" on the condensed consolidated balance sheets. Customer advances received before we have satisfied our performance obligations are accounted for as a contract liability (sometimes referred to in practice as deferred revenue). As of March 31, 2022, our contract liability balance primarily consisted of prepayments from a customer for future water deliveries under the terms of a water sales agreement. In August 2022, our customer notified us that they were terminating the water sales agreement and in September 2022 we refunded the customer's prepayment balance of $32.6 million. See Note 14—Commitments and Contingencies below for additional information regarding our water rights and repayment of this customer's prepayment balance. Our deferred revenue activity for the three months ended March 31, 2023, and 2022 is shown below (in thousands): Three Months Ended March 31, 2023 2022 Beginning balance $ 2,374 $ 33,788 Additions 145 349 Recognized as revenue during period (245) (114) Ending Balance $ 2,274 $ 34,023 |
Disaggregation of Revenue | The tables below show the disaggregation of revenue by product and reconciles disaggregated revenue to segment revenue for the three months ended March 31, 2023, and 2022. We believe the disaggregation of revenue by products best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic conditions (in thousands): Three Months Ended March 31, 2023 Product Potash Segment Trio ® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 47,155 $ — $ — $ (101) $ 47,054 Trio ® — 29,053 — — 29,053 Water 80 1,048 1,619 — 2,747 Salt 3,043 173 — — 3,216 Magnesium Chloride 1,137 — — — 1,137 Brine Water 1,082 — 822 — 1,904 Other — — 1,809 — 1,809 Total Revenue $ 52,497 $ 30,274 $ 4,250 $ (101) $ 86,920 Three Months Ended March 31, 2022 Product Potash Segment Trio ® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 51,622 $ — $ — $ (95) $ 51,527 Trio ® — 39,616 — — 39,616 Water 774 1,202 4,188 — 6,164 Salt 2,634 234 — — 2,868 Magnesium Chloride 815 — — — 815 Brine Water 597 — 739 — 1,336 Other — — 2,073 — 2,073 Total Revenue $ 56,442 $ 41,052 $ 7,000 $ (95) $ 104,399 |
COMPENSATION PLANS (Tables)
COMPENSATION PLANS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Outstanding Share Based Awards | In March 2023, the Compensation Committee granted 225,117 shares of restricted stock to executive officers and other key employees. These awards vest over three three Outstanding as of Restricted Shares 399 Non-qualified Stock Options 273 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision of Income Taxes | A summary of our provision for income taxes is as follows (in thousands): Three Months Ended March 31, 2023 2022 Current portion of income tax expense $ 126 $ 139 Deferred portion of income tax expense 1,661 9,000 Total income tax expense $ 1,787 $ 9,139 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Held-to-Maturity Investments | Held-to-Maturity Investments —As of March 31, 2023, we owned debt investment securities classified as held-to-maturity because we have the intent and ability to hold these investments to maturity. Our held-to-maturity debt investment securities consist of investment grade corporate bonds and U.S. government issued bonds. These debt securities are carried at amortized cost and consist of the following (amounts in thousands): As of March 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term Corporate bonds $ 2,994 $ — $ (18) $ 2,976 Government bonds 1,966 — (17) 1,949 Total $ 4,960 $ — $ (35) $ 4,925 Long-term Corporate bonds $ 983 $ — $ (11) $ 972 Government bonds 1,934 — (11) 1,923 Total $ 2,917 $ — $ (22) $ 2,895 |
BUSINES SEGMENTS (Tables)
BUSINES SEGMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three Months Ended Potash Trio ® Oilfield Solutions Other Consolidated Sales $ 52,497 $ 30,274 $ 4,250 $ (101) $ 86,920 Less: Freight costs 5,005 6,686 — (101) 11,590 Warehousing and handling 1,480 1,253 — — 2,733 Cost of goods sold 31,584 20,883 3,778 — 56,245 Gross Margin $ 14,428 $ 1,452 $ 472 $ — $ 16,352 Depreciation, depletion, and amortization incurred 1 $ 7,051 $ 1,206 $ 907 $ 208 $ 9,372 Three Months Ended Potash Trio ® Oilfield Solutions Other Consolidated Sales $ 56,442 $ 41,052 $ 7,000 $ (95) $ 104,399 Less: Freight costs 4,023 6,309 — (95) 10,237 Warehousing and handling 1,324 1,152 — — 2,476 Cost of goods sold 22,031 17,451 5,028 — 44,510 Gross Margin $ 29,064 $ 16,140 $ 1,972 $ — $ 47,176 Depreciation, depletion, and amortization incurred 1 $ 6,947 $ 1,008 $ 787 $ 236 $ 8,978 1 Depreciation, depletion, and amortization incurred for potash and Trio ® excludes depreciation, depletion and amortization amounts absorbed in or relieved from inventory. |
COMPANY BACKGROUND (Narrative)
COMPANY BACKGROUND (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2023 Facility segment nutrient | |
Number of mining facilities | Facility | 3 |
Number of reportable segments | segment | 3 |
Number of key nutrients | nutrient | 3 |
EARNINGS PER SHARE (Schedule of
EARNINGS PER SHARE (Schedule of Calculation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income | $ 4,506 | $ 31,422 |
Basic weighted average common shares outstanding (in shares) | 12,694 | 13,160 |
Add: Dilutive effect of restricted stock (in shares) | 125 | 320 |
Add: Dilutive effect of stock options (in shares) | 56 | 115 |
Diluted weighted average common shares outstanding (in shares) | 12,875 | 13,595 |
Basic (in dollars per share) | $ 0.35 | $ 2.39 |
Diluted (in dollars per share) | $ 0.35 | $ 2.31 |
EARNINGS PER SHARE (Schedule _2
EARNINGS PER SHARE (Schedule of Anti-Dilutive Shares) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restricted Shares [Member] | ||
Anti-dilutive weighted average non-vested shares | ||
Anti-dilutive shares (in shares) | 187 | 125 |
Stock Options [Member] | ||
Anti-dilutive weighted average non-vested shares | ||
Anti-dilutive shares (in shares) | 156 |
CASH, CASH EQUIVALENTS AND RE_3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 10,451 | $ 18,514 | $ 60,139 | |
Restricted cash included in other current assets | 25 | 175 | ||
Restricted cash included in other long-term assets | 547 | 544 | ||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 11,023 | $ 19,084 | $ 60,858 | $ 37,146 |
INVENTORY AND LONG-TERM PARTS_3
INVENTORY AND LONG-TERM PARTS INVENTORY (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Allowances for obsolescence | $ 1.3 | $ 1.3 |
INVENTORY AND LONG-TERM PARTS_4
INVENTORY AND LONG-TERM PARTS INVENTORY (Summary of Inventory) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory [Line Items] | ||
Finished goods product inventory | $ 71,826 | $ 74,777 |
In-process inventory | 18,984 | 24,767 |
Total product inventory | 90,810 | 99,544 |
Current parts inventory, net | 16,364 | 15,272 |
Total current inventory, net | 107,174 | 114,816 |
Long-term parts inventory, net | 24,820 | 24,823 |
Total inventory, net | $ 131,994 | $ 139,639 |
PROPERTY, PLANT, EQUIPMENT, A_3
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES (Schedule of Property, Plant, Equipment, and Mineral Properties) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | $ 713,361 | $ 692,589 |
Less: accumulated depreciation, depletion, and amortization | (325,510) | (316,959) |
Total property, plant, equipment and mineral properties, net | 387,851 | 375,630 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 24,136 | 24,136 |
Ponds and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 74,138 | 73,501 |
Mineral Properties And Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 146,335 | 146,333 |
Buildings and Plant [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 89,478 | 89,014 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 292,986 | 288,345 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 7,709 | 7,399 |
Office Equipment and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 10,625 | 10,436 |
Operating Lease ROU Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 5,694 | 5,908 |
Breeding Stock [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 322 | 329 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | $ 61,938 | $ 47,188 |
PROPERTY, PLANT, EQUIPMENT, A_4
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES (Schedule of Depreciation, Depletion, and Accretion) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 7,727 | $ 7,188 |
Depletion | 1,177 | 1,144 |
Amortization of right of use assets | 388 | 566 |
Total incurred | $ 9,292 | $ 8,898 |
DEBT (Details)
DEBT (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Aug. 02, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Jul. 31, 2022 | |
Debt | |||||
Proceeds from credit facility | $ 5,000 | $ 0 | |||
Interest expense | 153 | 81 | |||
Revolving Credit Facility [Member] | |||||
Debt | |||||
Proceeds from credit facility | 5,000 | 0 | |||
Repayments of credit facility | 0 | $ 0 | |||
Line of credit, outstanding | 5,000 | $ 0 | |||
Letters of credit outstanding, amount | $ 0 | $ 1,000 | |||
Credit facility, maximum borrowing capacity | $ 150,000 | $ 75,000 | |||
Debt, maturity date | Aug. 04, 2027 | ||||
Minimum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving Credit Facility [Member] | |||||
Debt | |||||
Credit facility interest margin | 1.50% | ||||
Maximum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving Credit Facility [Member] | |||||
Debt | |||||
Credit facility interest margin | 2.25% |
DEBT SCHEDULE OF INTEREST EXPEN
DEBT SCHEDULE OF INTEREST EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Interest expense on borrowings | $ 22 | $ 0 |
Commitment fee on unused credit facility | 56 | 21 |
Amortization of deferred financing costs | 75 | 60 |
Gross interest expense | 153 | 81 |
Less capitalized interest | (153) | (48) |
Interest expense, net | $ 0 | $ 33 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, water rights | $ 19,184 | $ 19,184 |
Finite-lived intangible assets, weighted average amortization period | 16 years | |
Finite-lived intangible assets, net | $ 5,200 | $ 5,200 |
FINANCIAL INFORMATION FOR SUB_2
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Guarantees [Abstract] | ||
Cash | $ 10.5 | $ 18.5 |
ASSET RETIREMENT OBLIGATION (Na
ASSET RETIREMENT OBLIGATION (Narrative) (Details) - Measurement Input, Risk Free Interest Rate [Member] | Mar. 31, 2023 |
Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Credit adjusted risk-free rates used to discount reclamation Liabilities | 0.069 |
Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Credit adjusted risk-free rates used to discount reclamation Liabilities | 0.097 |
ASSET RETIREMENT OBLIGATION (Sc
ASSET RETIREMENT OBLIGATION (Schedule of Changes to Asset Retirement Obligation) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |||
Asset retirement obligation, at beginning of period | $ 26,864 | $ 27,024 | |
Accretion of discount | 535 | 490 | |
Total asset retirement obligation, at end of period | 27,399 | 27,514 | |
Total asset retirement obligation, at end of period | 27,399 | 27,514 | $ 26,864 |
Less current portion of asset retirement obligation | (300) | 0 | |
Long-term portion of asset retirement obligation | $ 27,099 | $ 27,514 | $ 26,564 |
REVENUE (Narrative) (Details)
REVENUE (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | ||||
Sep. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||||
Contract with customer, liability | $ 2,274 | $ 2,374 | $ 34,023 | $ 33,788 | |
Contract liabilities, current | $ 1,000 | $ 900 | |||
Refund of prepayments | $ 32,600 |
REVENUE (Contract Balances) (De
REVENUE (Contract Balances) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Beginning Balance | $ 2,374 | $ 33,788 |
Additions | 145 | 349 |
Recognized as revenue during period | (245) | (114) |
Ending Balance | $ 2,274 | $ 34,023 |
REVENUE (Disaggregation of Reve
REVENUE (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Potash [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 47,054 | $ 51,527 |
Trio [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 29,053 | 39,616 |
Water [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 2,747 | 6,164 |
Salt [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 3,216 | 2,868 |
Magnesium Chloride [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 1,137 | 815 |
Brine Water [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 1,904 | 1,336 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 1,809 | 2,073 |
Mineral [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 86,920 | 104,399 |
Potash [Member] | Potash [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 47,155 | 51,622 |
Potash [Member] | Trio [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
Potash [Member] | Water [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 80 | 774 |
Potash [Member] | Salt [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 3,043 | 2,634 |
Potash [Member] | Magnesium Chloride [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 1,137 | 815 |
Potash [Member] | Brine Water [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 1,082 | 597 |
Potash [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
Potash [Member] | Mineral [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 52,497 | 56,442 |
Trio [Member] | Potash [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
Trio [Member] | Trio [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 29,053 | 39,616 |
Trio [Member] | Water [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 1,048 | 1,202 |
Trio [Member] | Salt [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 173 | 234 |
Trio [Member] | Magnesium Chloride [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
Trio [Member] | Brine Water [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
Trio [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
Trio [Member] | Mineral [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 30,274 | 41,052 |
Oil Field Solutions [Member] | Potash [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
Oil Field Solutions [Member] | Trio [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
Oil Field Solutions [Member] | Water [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 1,619 | 4,188 |
Oil Field Solutions [Member] | Salt [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
Oil Field Solutions [Member] | Magnesium Chloride [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
Oil Field Solutions [Member] | Brine Water [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 822 | 739 |
Oil Field Solutions [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 1,809 | 2,073 |
Oil Field Solutions [Member] | Mineral [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 4,250 | 7,000 |
Intersegment Eliminations [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | (101) | (95) |
Intersegment Eliminations [Member] | Potash [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | (101) | (95) |
Intersegment Eliminations [Member] | Trio [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
Intersegment Eliminations [Member] | Water [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
Intersegment Eliminations [Member] | Salt [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
Intersegment Eliminations [Member] | Magnesium Chloride [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
Intersegment Eliminations [Member] | Brine Water [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
Intersegment Eliminations [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 0 | $ 0 |
COMPENSATION PLANS (Narrative)
COMPENSATION PLANS (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Equity Incentive Compensation Plan [Abstract] | ||||
Shares available for issuance | 1,000,000 | 1,000,000 | ||
Restricted Stock [Abstract] | ||||
Compensation expense | $ 1.7 | $ 1.2 | ||
Unrecognized compensation expense | $ 10.3 | $ 10.3 | ||
Weighted average period, unrecognized compensation expense | 1 year 7 months 6 days | |||
Executive Officers And Other Key Employees | Restricted Stock [Member] | ||||
Restricted Stock [Abstract] | ||||
Shares granted | 225,117 | 104,039 | ||
Period over which grants vest (in years) | 3 years | 3 years |
COMPENSATION PLANS (Schedule of
COMPENSATION PLANS (Schedule of Outstanding Share Based Awards) (Details) shares in Thousands | Mar. 31, 2023 shares |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards outstanding, restricted stock | 399 |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards outstanding, options | 273 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 28.40% | 22.50% |
INCOME TAXES (Schedule of Provi
INCOME TAXES (Schedule of Provision of Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Current portion of income tax expense | $ 126 | $ 139 |
Deferred portion of income tax expense | 1,661 | 9,000 |
Total income tax expense | $ 1,787 | $ 9,139 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Mar. 17, 2022 acre ft | Dec. 17, 2021 acre ft | Sep. 30, 2022 USD ($) | Mar. 31, 2021 USD ($) | Feb. 28, 2019 acre ft | Mar. 31, 2023 USD ($) | Dec. 31, 2018 acre ft | Dec. 31, 2017 acre ft | Dec. 31, 2022 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Security placed with the State of Utah and BLM | $ 26.5 | $ 24.6 | |||||||
Long-term restricted cash deposits | 0.5 | 0.5 | |||||||
Surety bonds issued by an insurer | 26 | 24.1 | |||||||
Loss Contingencies [Line Items] | |||||||||
Refund of prepayments | $ 32.6 | ||||||||
Contingency liabilities, current | 5.2 | $ 4.2 | |||||||
Water Rights [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Pecos Water Right volume per year | acre ft | 20,000 | ||||||||
Annual water volume that had not been forfeited | acre ft | 5,800 | ||||||||
Annual water volume that had not been abandoned | acre ft | 150 | 150 | |||||||
Preliminary authorization of annual allowable water sales, volume, cancelled | acre ft | 5,700 | 5,700 | |||||||
Quarterly installment received from customer | $ 3.9 | ||||||||
Refund of prepayments | $ 32.6 |
FAIR VALUE (Narrative) (Details
FAIR VALUE (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |||
May 31, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Jul. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |||||
Cash equivalents | $ 500 | $ 1,700 | |||
Debt Securities, Held-to-maturity, Maturity [Abstract] | |||||
Debt securities, held-to-maturity | $ 7,900 | 8,400 | |||
Debt securities, held-to-maturity, maturity period | 2 years | ||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity in earnings of unconsolidated entities | $ 821 | $ 0 | |||
Equity Investment Ovation [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, amount committed | $ 4,000 | ||||
Equity method investment, ownership percentage | 16% | ||||
Equity method investments | $ 3,200 | $ 3,200 | |||
Equity in earnings of unconsolidated entities | $ 800 | ||||
Equity Investment WDVGL [Member] | |||||
Equity Securities without Readily Determinable Fair Value [Line Items] | |||||
Equity securities without readily determinable fair value, acquired | $ 3,500 | ||||
WD Von Gonten Engineering LLC [Member] | |||||
Equity Securities without Readily Determinable Fair Value [Line Items] | |||||
Share price | $ 10 |
FAIR VALUE (Held-to-Maturity In
FAIR VALUE (Held-to-Maturity Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost, short-term | $ 4,960 | $ 5,959 |
Amortized cost, long-term | 2,917 | |
Gross unrealized gains, short-term | 0 | |
Gross unrealized gains, long-term | 0 | |
Gross unrealized losses, short-term | (35) | |
Gross unrealized losses, long-term | (22) | |
Fair value, short-term | 4,925 | |
Fair value, long-term | 2,895 | |
Fair value, total | 7,900 | $ 8,400 |
Corporate Bonds | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost, short-term | 2,994 | |
Amortized cost, long-term | 983 | |
Gross unrealized gains, short-term | 0 | |
Gross unrealized gains, long-term | 0 | |
Gross unrealized losses, short-term | (18) | |
Gross unrealized losses, long-term | (11) | |
Fair value, short-term | 2,976 | |
Fair value, long-term | 972 | |
Government Bonds | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost, short-term | 1,966 | |
Amortized cost, long-term | 1,934 | |
Gross unrealized gains, short-term | 0 | |
Gross unrealized gains, long-term | 0 | |
Gross unrealized losses, short-term | (17) | |
Gross unrealized losses, long-term | (11) | |
Fair value, short-term | 1,949 | |
Fair value, long-term | $ 1,923 |
BUSINESS SEGMENTS (Narrative) (
BUSINESS SEGMENTS (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
BUSINESS SEGMENT (Information b
BUSINESS SEGMENT (Information by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Segment Reporting Information [Line Items] | |||
Gross Margin | $ 16,352 | $ 47,176 | |
Depreciation, depletion and amortization expense | [1] | 9,372 | 8,978 |
Operating Segments [Member] | Potash [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross Margin | 14,428 | 29,064 | |
Depreciation, depletion and amortization expense | [1] | 7,051 | 6,947 |
Operating Segments [Member] | Trio [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross Margin | 1,452 | 16,140 | |
Depreciation, depletion and amortization expense | [1] | 1,206 | 1,008 |
Operating Segments [Member] | Oil Field Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross Margin | 472 | 1,972 | |
Depreciation, depletion and amortization expense | [1] | 907 | 787 |
Corporate/Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross Margin | 0 | 0 | |
Depreciation, depletion and amortization expense | [1] | 208 | 236 |
Freight Costs [Member] | |||
Segment Reporting Information [Line Items] | |||
Cost of Goods Sold | 11,590 | 10,237 | |
Freight Costs [Member] | Operating Segments [Member] | Potash [Member] | |||
Segment Reporting Information [Line Items] | |||
Cost of Goods Sold | 5,005 | 4,023 | |
Freight Costs [Member] | Operating Segments [Member] | Trio [Member] | |||
Segment Reporting Information [Line Items] | |||
Cost of Goods Sold | 6,686 | 6,309 | |
Freight Costs [Member] | Operating Segments [Member] | Oil Field Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Cost of Goods Sold | 0 | 0 | |
Freight Costs [Member] | Corporate/Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Cost of Goods Sold | (101) | (95) | |
Warehouse and Handling [Member] | |||
Segment Reporting Information [Line Items] | |||
Cost of Goods Sold | 2,733 | 2,476 | |
Warehouse and Handling [Member] | Operating Segments [Member] | Potash [Member] | |||
Segment Reporting Information [Line Items] | |||
Cost of Goods Sold | 1,480 | 1,324 | |
Warehouse and Handling [Member] | Operating Segments [Member] | Trio [Member] | |||
Segment Reporting Information [Line Items] | |||
Cost of Goods Sold | 1,253 | 1,152 | |
Warehouse and Handling [Member] | Operating Segments [Member] | Oil Field Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Cost of Goods Sold | 0 | 0 | |
Warehouse and Handling [Member] | Corporate/Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Cost of Goods Sold | 0 | 0 | |
Mineral [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 86,920 | 104,399 | |
Cost of Goods Sold | 56,245 | 44,510 | |
Mineral [Member] | Potash [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 52,497 | 56,442 | |
Mineral [Member] | Trio [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 30,274 | 41,052 | |
Mineral [Member] | Oil Field Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 4,250 | 7,000 | |
Mineral [Member] | Operating Segments [Member] | Potash [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 52,497 | 56,442 | |
Cost of Goods Sold | 31,584 | 22,031 | |
Mineral [Member] | Operating Segments [Member] | Trio [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 30,274 | 41,052 | |
Cost of Goods Sold | 20,883 | 17,451 | |
Mineral [Member] | Operating Segments [Member] | Oil Field Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 4,250 | 7,000 | |
Cost of Goods Sold | 3,778 | 5,028 | |
Mineral [Member] | Corporate/Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | (101) | (95) | |
Cost of Goods Sold | $ 0 | $ 0 | |
[1] Depreciation, depletion, and amortization incurred for potash and Trio ® excludes depreciation, depletion and amortization amounts absorbed in or relieved from inventory. |