IPI - Earnings call transcript Q4 2021

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Operator

00:04 Thank you for standing by. This is the conference operator. Welcome to the Intrepid Potash, Inc. Q4 and Year-End 2021 Results Conference Call.

As a reminder, all participants are in a listen-only mode and the conference is being recorded. would Preston, to Chief I over the XX:XX Matt to Financial Instructions] now turn like conference [Operator Officer. Please go ahead.

Matt Preston

results and obligation non-GAAP reports and measures on the and of comparable XX:XX Sales everyone. are answer Securities which the and remarks our Thanks and are certain During CEO, today's included Intrepid's be release. and questions today today, is our measures. good incorporated described operational during Commission, GAAP periodic to to financial of to Laws. prepared subject questions, risks us are in call, be the Jornayvaz. Vice filed be the materially uncertainties different information statements in as Executive me Please [ph], Securities Brian our full-year we uncertainties discuss including statements are Chairman, and and with the forward-looking by defined assume Co-Founder, most With cause your remarks Zachry and fourth these and Thanks, available today, refer measures to Stone; Marketing, could advised to will following President, by quarter to non-GAAP Also include call our XX:XX reference. Q&A Reconciliations results. will on press those These forward-looking here Exchange Bob XX:XX session Intrepid's statements financial These These U.S. for [Tyreece] Adams. directly yesterday's based our risks joining anticipated. President update us them. we XXXX morning, that XX:XX actual are that currently available from to to no to answers

now over available and XX:XX press website the releases to call SEC turn our intrepidpotash.com. on filings Our are at Bob. I'll

Bob Jornayvaz

of Intrepid. for Europe has in and of quarter supportive XX:XX contributed really now led us. has strong physical to We your another rising you unfortunately your much, environment, everyone results. and consolidated to turmoil joining fertilizer improving Eastern very to increase, a now threats and which recorded railroad We and appreciate Matt, XXXX. strikes, bringing attendance income to XX:XX interest to million Declining prices morning all quarter, and inventories, of in good thank adjusted demand, fourth In significantly net commodity million nearly which million, $XX against to the asset, full-year tax XXXX. recorded we expense both the $X the led quarter valuation net fourth X compared has $XX.X full-year the the differed released our million in income fourth allowance of income approximately tax for adjusted quarter,

amount million first have time since gross a $XX.X full-year we XXXX, million generated XX:XX recorded potash of and material The XXXX. fourth the XX.X quarter and in of Our respectively. margin tax expense segment

expect Posted potash, rising prices over an production quarter between over and the increase year. is booking increased will $XXX, In-line and on Trio ton XXXX level, quarter price net our to strong results increased XX:XX is sales with Recent segment and use, over a prices pricing approximately XX:XX XX:XX first per strong of our quarter per more production shipments in segment oilfield quarter margin revenue $XX announced strong increased ton easements which our to we deliver additional of shift of and Price mine announced prices spring realized capitalize positive investment potash as As quarter quarter most the and for we help continue moved fourth strong decade. water the increase, to XX:XX $XXX year per surface first demand our which services ton oil and we we to oilfield price oil prices to XXXX. will the recently fourth from at with demand, some increase in continue in oilfield quarter in and ton as $XXX looking needed approximately increase highest speak to trend gross fourth is a through $XXX will are $XXX our the such last today. and the capitalized and increase realized another the continued XXXX first to February increases XX:XX third of we recently much the the $XX continued in $XXX We Delaware over quarter ton, XXXX with along in increases for up of $XXX last third in for effect and per price as activity. XXXX, spur for December continue us on increase last producers ton, expect XX:XX at per our in match rising we added outlook on of The of second realized demand. the and currently products recently East through the produced $XXX price extra Basin specialty Trio XXXX. adding rising prices XXXX fertilizer $XX price in of Sales between the and royalty as our both per half.

XX:XX million earnings the balance position, expected, we million has since well a balance hand year, share sheet to a over a as of very in at remains a with solid million the our release, cash week. our $XX end this As strong program. growing sheet $XX With in increased number early announced repurchase in of shape on $XX of which cash

begin We private private already with for a tool strategy XX:XX consultant produced those mine. value. invest also ESG the are stream into appropriate As the of New evaporation advancing as public, meet pilot Environment New New with approved to a are advance values, project water. subject program. for share water excited for Basin with XX:XX produced the of a able of as buyback required with other is saturated to noted meant the consortium conserving to of as levels brine water and opportunity and Environment solar sources excited itself. shareholders segments generate we'll permit announce successful, advancing New place, XX:XX once Department the revenue submitted Water water friendly environment our ground private academia, on XX:XX standards cooperate to to market requirements uniquely business has testing. quarter shareholder Intrepid’s proposed reuse numerous pilot This specifically We priority HB pilot a prove mining already beneficially concept the stated value. HB aid reuse compliance comply preliminary friendly appropriate New stakeholders volumes. open produced green able manner, same existing loop and proposal requirements department. to hasn't closed for the changed environmentally the comprised coordination We we're Mexico solar necessary project if our the testing situation in remain know, water study goals of opportunities to that investors repurchase solution updated Mexico scheduled can research grow constituent injection factors begin is mine future stated opportunistically As our to and for treatment in take in wells approval XXXX. reached consumer we mine. portion technology announcement to government New would to pilot both water guide produced at Consortium to agencies, to As in well in addition mission and approximate XX:XX and XXXX injectates, and service The salt Mexico. outlook and day water available from mine, business to Overall, evaluate we of fans environmentally we we the the scientific depending to and the in trans-disciplinary XX:XX upon earnings a the of Mexico’s in which the look as another New to Mexico prior record is opportunity State to the value produced do in Mexico globally. earnings been existing remain with program. Mexico, which in now New still uses state-wide public turn of ponds promoting be consortium. we joint shares barrel our New very the XX:XX outside the XXX,XXX to release, with our return largest later the We University, plan New Mexico in look solar third As could a XX:XX the solution and farmer to would naturally utilizes and a never potentially actually high as policy feasibility provide HB long-term We this [injection to the form system inside produced our technical early drive incomes The the is of HB the with potash to to market project occurring has Delaware calls, share crop the New Department’s produced to benchmarks, groundwater in as conditions, our solution as national arguably the levels get repurchase our view forward believe gas production our the presents to is [ph] the if in complement currently system] And as the advantage time monitoring its better. XX:XX Mexico solution most program as Mexico a pursuant solar solar will XX:XX and pilot pricing with and we of that permitted to supportive our salt, this whose brine that and already of year. as closer the we Commodity water team solution into market in inject mission extremely the consortium potash the and repurchase of keeping date across project Northern laboratories, inventory to This development, sector oil our in Produced and an Mexico partnership

positioned our to bottom in and We for turn results deliver And I'll financial over growth to Matt flow results review outlook. now, in XX:XX line the a and operating are of XXXX. cash significant call

Matt Preston

Bob. Thanks XX:XX

XXXX approximately fertilizer $XX expect of released in of will million, saw XXXX we assets you benefit XXXX afternoon, Full-year valuation quarter. just than adjusted allowance earnings deferred in price recent to set As increased approximately more deliver EBITDA growth. the million an reported yesterday again Xx in release we with XXXX $XXX increases in $XX.X to outstanding Bob our our full tax of XX:XX yet year-over-year the our to results. we outstanding deliver and EBITDA against fourth As our the XX:XX materialize million, are highlighted, year up

XXXX, the operating [accumulative the of modeling XX%, earnings, position least and incurred of for $X earlier results. allowance, expense years. both minimal reaching we XX:XX XX:XX all tax, provide the us, the to on we few $XXX,XXX outlook. was at of of book rate effect full-year but improved available three-year] [ph] to cash annually than For with expect expect release approximately million federal result modeling. those for next guidance Bob of said net want forwards less with net forward, significant a the pay fourth approximately our reiterate which a income loss some tax As Going we recorded carry to valuation tax in and quarter state some Along for income future our our and of what the I

early we levels for and combined the our details available are due Additional than wet higher quarter off with shortfalls quarter and with of in We we XX nearly was with in in today. sales of weather results product lower XXXX. months average to our reduced anticipation to in XX:XX selective deferred summer. segment improved last strong our volumes for expect remain Carlsbad half in-line are potash now were Fourth has historic less Fourth although inventory coming production first potash the XX:XX our which pricing year, our tax file compared of which during from sale regarding demand, to us pricing, production XXXX. the later the prior assets included benefited in XX-K, quarter left

to XX:XX could with not evenly expect overall Like sales availability, half and averages half XXXX some of sales logistical second our cost XXX,XXX ton second delays half in announcements results return inflationary recent should inventory segment, quarters. the truck realized XX:XX push will net We we year the Our between continue an expect to production of despite and split coming first sales, expected of historic are first but price experiencing in first pricing potash XXX,XXX and industries, pressures. which production general potash year, fourth quarter quarters. quarter, improve prior results tons potash into we our the many improvement approximately goods in second and segment our will were segment which drive to the tons with lower are product sold per consistent our some similar the to and to Trio

projects significant approximately Although on year pressures XXX,XXX share capital expect HB our for inflationary $XX tons repurchase With an today. half XXXX million Turning XXXX that we million opportunities announcement to of of to compared on volumes years. are XX:XX two allocation outlook the million $XX our and Increased look XX:XX there in liquidity, premium for prior first ready sustaining in That also and from with the deferred $XX remarks between take Green second some spend with we we’re us forward flow, million and evenly capital year cash program, Operator, towards years front prior sales to expect shareholders to increasingly to long-term generate we to everyone the questions. for capital. reflects past earnings some first sustaining remain the Trio on and of concludes $XX prioritizing the granular investments value as progresses. updating follow split and to XXXX closely we quarters. positive Disposal products, for for our to to XXX,XXX XX:XX and prepared and our

Operator

comes question Thank you. go first Capital ahead. The Jackson Joel BMO with Instructions] Please from Markets. [Operator XX:XX

Joel Jackson

good morning Hi, XX:XX everyone.

Matt Preston

XX:XX Joel. Good morning,

Joel Jackson

want one-by-one. do talk liquidity SPAC, you so, what the of it and there? I'll of allocation talk the much invest to XX:XX to of Can all kind [buffer] do How think? want Thanks. about how there, we want should Few you about do ask What questions. capital that times, pace keep what going, buybacks kind that's [ph] you you to expect?

Bob Jornayvaz

the use to buy that the I buy make that is question, call but opportunity excess generate to cash, as to cash back. XX:XX cash, buyback but question let back, difference presents to to of stock First, a about hate was… our intention cash what debt hope to Speakers] generate buy We appropriate clear into shares we as the to believe and it is me cash for than do that we intend capital, flow to significant repurchase that XX:XX our at the substantial appropriate program. additional XX:XX repeatedly levels to intend stock use said but excess to it's going willing cash, I share Second would cash, because the when talk your rather itself I go buybacks. using that back. to share to that that We we main begin like relates portion have cash use, that think [Multiple will to use word not shares into XX:XX we're I would answers use most we we

Joel Jackson

Oh, me. Go ahead. Excuse XX:XX sorry.

ahead. Sorry, go

Bob Jornayvaz

repeat question? your second Could you XX:XX

Joel Jackson

much the much are with? may then to the going around you going already how some Yes, you how talk and that? do of and that's rationale how And comfortable liquidity have SPAC buffer, to How you're much you think bugger that, about XX:XX that? point answered liquidity

Bob Jornayvaz

accrue would the go me benefits first. Really can our is, talk about say to all to Let that the XX:XX will sponsor only thing SPAC I the shareholders.

it Intrepid is any and XX:XX accrue concept those funds the sponsor have a capital Potash our to or really is it's amount will inclusive, and shareholders not to a general of benefits the totally idea, to straight existing the straight now… benefits So, or whatever as I'm raise raise methodology without our to shareholders. of methodology a acquisitions larger diluting go anybody and to larger else. flow So, additional managers shareholders our to

Matt Preston

this at a little active, all going of the SPAC XX:XX that Yeah, Joel, the outside that's on Bob call, earnings S-X filed said. and I'll just are in jump here to in about mid-January with talk what we bit not

your I understanding. appreciate So,

Joel Jackson

XX:XX Okay.

potash. on Just

issue when So, I if that [indiscernible] guess at be supply squeeze and a add it you Russian and in to ton the world's with of prolonged can, what every cost it we second places about and level, like, think trying Carlsbad, and half could think you? back? to year, have you of what flooding, options would other would do K old potash more should you about What How production long take? have mines, the do Russian normal capacity the it

Bob Jornayvaz

all a at intensely Obviously, Solar shot already it's call and Solution I'll as working can. of is numerous designed it's up XX:XX project second engineers is horizontal from detail we The one XX:XX questions we our terms give fast underway, I that earnings speak. Mine first to able away we've variety could are is design as that like look is Well, in HB underway. teed flood what new cavern just The as the more that lot as being and a increasing for much that say, our understudied. Moab. cavern on volume that got at of is that very it's being XX:XX a which

As to drilled significant know, there caverns date. you we've out successfully horizontal four

had then of to additional drilling well this team deep out the done will production third All time of quarter and And most fourth a a that system at amount next the incremental come of the brackish quarter, project start there. and there as flows increase engineers which most overall in Wendover, likely water hopefully week have season. looking in we've as XX:XX through added the or wells third additional each the summer’s that wells, online those, out evaporation for we brine water

water XX XXX looking we've something ways, you plus XX:XX know, at giant I'm of miles canals. of So, sorry, got it's acres a As farm. about leases, something, XXX,XXX

of each at ways well at actually potash those facilities to our increasing of mine as different an looking So, additional crew langbeinite. bringing on more production, as East in

at very So, I'd are one four steps, facility. say each those concrete

Joel Jackson

that. up to mean pretty much done? potash the following that is there And East? langbeinite West over back on Just Does way get that's any XX:XX that at at

Bob Jornayvaz

bring we're got cheapest small and and You group more mine would we those West. tons back in expensive is know, of a back a as very we've our to on. XX:XX fashion going expensive probably looking to at so to West bring on, most tons when I the linear say terms how in really

Joel Jackson

much. very you Thank XX:XX

Operator

XX:XX The go next question comes ahead. Please from with Stanley. Andrews Morgan Vincent

Will Tang

is guess, can from for early Hi XX:XX about higher you on about to, increased typically And Vincent. This see talk due of or the for tailwinds prices pickup? oil how oilfield potential activity activity guys take of oil Tang like it the I Will be prices? then any long thinking should a we indications kind guys. how higher to does

Bob Jornayvaz

count was head, tell picked the off numbers XX:XX Well, do momentary. I It in Delaware day. rig at I the to and pretty up of the is, top but every you. ringing have the funds don't you the All got It's look quickly. Basin my

it are levels. water a third-party to increase a we're and Intrepid March, and activity that to be providers based out our working here with early already is got water. looking primary so very South, to customers book down sold their it's water XX:XX year, So, So, going we've on good provide just more

the [Titus] significant look in companies Conoco all got read Caprock, [ph] on Exxon So, Concho, expenditures of the Ameredev, announced you all Delaware and goes deck private on. very I is, the acquisition [ph], list has companies significant Exxon’s the plans that do at Go announced IR higher to think have in Basin. Permian. of BTA, [Devon] go and or

Will Tang

you right not? are staff? capacity additional hire the about to increase it. capacity on pending to then last talked your capacity, additional possibility, productive that's think quarter of talk now? what guys optionality year just market additional I Whether that in the of or a guess on like earlier, seeing Thanks. tons but staff I you ability XX,XXX this guess to Got kind add you Can And to tracking add that labor about XX:XX question I

Bob Jornayvaz

XX:XX Well, we talked crew about. that we’ve added the definitely

honest. The personnel. So, the tightens each be in labor we were with I'll successful very market price hiring increase.

that New anywhere it people I have the of go lot from three the oilfield because extended to the Southeast hours mean, of drive back to out lifestyle a Mexico, takes there get and found come have and XX:XX back. if We times. nomadic you

activity. potentially whereas choices, personal higher of companies you beehive job a more slightly a drive stable oil at people's COVID, did And as the slightly it's lower versus between so, wage, we not they're of And anybody but tremendous wage, when people. three-hour look lay-off laid-off a a numbers choosing a during

actions do we're looking we for but articulated, labor markets XX:XX It's to So, it's it labor I COVID years we throughout I in well. think of people I the as what of think It's clearly like given our two we slight a chose that don't make sound – XXX but that served a hear very and are think distinct cakewalk. advantage want stability. have difficult a market, terms I

Will Tang

XX:XX Got it. Thank you.

Operator

The ahead. from XX:XX comes - Please Lucas UBS. go question next Beaumont

Lucas Beaumont

guys. Hey Thanks my for XX:XX question.

to wanted if potash just could. back I we So, go to again,

to be So, flagged that you quarter. expecting you're pricing another sort $XXX the in first up of

in please through lag March? you are, in look the they're expecting quarter where it from to quarter already of spot much March going which for we here, So, into just do second yet, and us and doesn't second of you're seeing, second in could if like of move of book high February how pricing sort how plus even order but on in stabilize with So, as pricing I Thanks. kind quarter, that your be seeing well? locked flowing still we the things should sort like based to the pricing is discuss mean,

Bob Jornayvaz

the the We we're going see stable of XX:XX pricing really believe to year. throughout end

to on provided and should increases globally on price we you in, reasons, good what's very and Zach, walk has a we about believe prices can into. started whole increases a XX:XX the why exactly talking do I'm of, through to advantage XX to for XX we're time, stable the when of I'll started and extended, say timing Zach of started actual quarter But talk of which that. the floor go let want taking be As the extended etcetera? when an price going months second if I variety for increases your kicking next how when back months period

Zachry Adams

Thanks Bob. Yeah. XX:XX

we've a increase in February As we announced quarter then. been second sales noted booking earlier we since earlier, and

good of last our I know momentum weeks, say customers was out the are couple I’d begins the really coming you market more over spring coming in think are and resupply. buyers we for saw a in application a and in there

QX, So, levels. based looking ahead realizing we're right on positive now, to those volumes increased at those

Lucas Beaumont

Right, XX:XX thanks.

and the about I And wondering half have so that just of sort Matt, to you first tons, going was, mentioned production guys that only XXX,XXX be got right.

you think, I sort the of with than have historically that's had So, a bit I production guys mean, lower issues. what

well, So, you I how just the any volumes as of that having at you're kind pricing to, move is your through contract been further there of then not to lower wondering flow and effective? kind of given having the through high impact volumes year impacting needs that in Thanks. as meet is contract Are causing with you lower routes, pricing? maybe has we was to the or customer’s the and really

Matt Preston

it's tons XX:XX market to and supply. is tight. we've to got extremely I our would say, that The domestic fewer benefit worked obviously

at tight would announced of and market, would price the strike, able if from to achieve urge they're time, so, oil, were to same that we very that with look I a and say threat and about if very we've it, pushback much always Canadian I market XX:XX Coco look corn, not were price tighter. the U.S. wheat, you so look at happy cotton. little say customers. But the the palm the all of soybeans, increases much, going domestic market the the and And coffee service happen, to and at I'm them, cotton, people that have is you become but to rail of

well are farmers our commodities across world. the global doing so And so as

afford to buy. can that the of they potash input while to still of find, money can they plenty prices making So, remain potash X% X% are cost. Farmers surely that in and

Lucas Beaumont

XX:XX Thank Right. you.

Operator

[Operator question with Ursaner The XX:XX go next Instructions] Please Jason Bumbershoot from comes Holdings. ahead.

Jason Ursaner

afternoon. Good XX:XX

Bob Jornayvaz

XX:XX Hi, Jason.

Jason Ursaner

a quarters just Trio, got questioning, MOP, XX:XX pretty of spot, detractor is from is there? on the market? Or in times similar I to, at that I out how I and the all outlook, is just to MOP firming sustainability order kind big to gave figure but shorter shifted, but a of couple is where similarly guess figure of line can these the an going guess Just of you terms the you kind the lead is what there? quietly trying markets, of it question that's tonnage pricing, shifting last the bright there the specialty book guess same in there on in to

Bob Jornayvaz

XX:XX let me back up. Yes,

As and are we granular product. on that products, XXX% for our to our of premium allocation total

in around product. following and is allocation increase. go product in something this else, standard we're demand. I we're said, is as [power able our XX:XX As to is it what other keep product, mix but which then in buy premium you know granular there's incredible short seeing and supply convert with our we customers our standard So, like on that to Trio product] a competitor [ph], very to, every than people price a few

the time actually our themselves. fact, first competitor to took in In for years, price up

a being Trio So, bottom finally bright the to and a will EBITDA go it's nice very see lot cash flow line. significant spot to generating and that of

here I is additional So, your to additional color If need Zach add question? you some I answered hope color.

Jason Ursaner

obviously a I increases. sequentially basis, do nicely price As Well taking was guess and the second margin last XXX the the from going both quarter, XX:XX in terms up, was so incremental level. gross that in price I the you the the the was $XXX, QX, a think said there? for deficit, QX but with at was there in another ton margin cost I now GAAP where booking a was what just one don't a on you're gross new the you're incremental What's detector a know there of, year XX% it's Okay. up one, that guess, you there margin you is on think side?

Bob Jornayvaz

of more in market. most tightness the that that XX:XX line, premium straight goes and I’m and markets that, we there's the believe going line to significantly of let to the the Matt to bottom given the room but bottom the answer granular

the on it And available long that as literally basis, as to very remains like premium Zach’s And has see as that for more the It people would granular, or so go. far to sense makes we we optimistic market tight as that Once Matt's XX:XX market a and we buy basis. product opportunity about price quarter-by-quarter potash. orders again, going in because are extremely don't for… on a out quarter-by-quarter see so where available is

Matt Preston

jump there a little Yes, per guidance pricing bit Jason. the XX:XX on ton. We gave QX to XXX XXX I'll in

announced another our second started. lot capture took around market, lot regions, their potash unlike a which our increase of seen the a It's which February, increase second in really $XX in a in in of lot quarter awareness necessarily we you lot past. interest driving organic XX:XX a products sulfur growers of really get You week know, sales maybe here as the demand had to the as and two think or quarter. a good domestically we've magnesium, well in for that of haven't will We're we seeing

especially given those And is is so, overall fertilizer nutrients positive secondary outlook today. really for Trio

Jason Ursaner

figure figure, cash be taking sheet maybe is XX kind collection or almost guess first from besides XX:XX there year. million two-months guess, second] XX the for the anything standpoint Is I to the [number Okay, in XX the anything capital from operationally? earned, [ph] of the normal of million the there I from in as of we on million just from that of perspective, year? or the away spring great. you cycle million a should that season balance to And XX noteworthy, versus the end can You a could, working the is yesterday. point before just

Matt Preston

XX:XX It majority our reflect certainly really season say account our bank XXXX starts April. early of [rolling] I’d peaks March, to sales [ph] of some spring there, the but the into

when of to a results. feel for So, we comes season, really getting here lot cash information news our started good we're got spring flow we’ve in come the just it to operating good and

Jason Ursaner

level at the at but to a commodities. fully higher, value and quarters sure if a business? a as but is carbonate here well create after of this have ago, asked a lot lithium about were I difference, potential And, stream prices hydroxide not as been, royalty if I high as I prices don't willing changing that of versus the the to the XX:XX it calculus resource, totally other with go of for couple someone a kind be reserves those and Okay. to evaluating even there, moving I'm you of going just and understand a it remember honest, nuts all

Bob Jornayvaz

throughout XX:XX You repeatedly It's is difficult the what it to the extract very to makes attached Jason, said know, world. occurs lithium value. it's abundantly we've what that

product to XX:XX for lithium are product, a technology is carbonate to that lithium we world have different of can either part by lithium, our with with that's further. working the attached are to across the lithium a lot several carbonate come which you couple that or our a are upgrade it studies most then lithium from the the to magnesium, of there even companies the stay choose expensive to separate sell to the that the the reserves. companies to on on us separate from it try given so, that lithium in touch because to And up continue magnesium So, pilot you going magnesium commercial attempting so technologies

and technologies I the with just closely, the those prices to and that we're trying variety we've pilot to lithium companies at lithium separating success test, on commercial magnesium on So, a see said to we've basis about the but hasn't yet. do working technology are we've several yet extremely that be want same just thing. a there people of approach clear a from a separate We're had to working but been following commercial

Jason Ursaner

XX:XX study to unique provided I details messes remarks. is there Okay. the you with this, you is getting to would guess, would this make is to the that to, oil prepared HB what of all solution anything mining or the else be solution? amount And could I a like said the normally guess this in at the the blanket the see add that on study, What add water feasibility or in you I appreciate that system water that into injected and is was

Bob Jornayvaz

be analysis that currently everything group peer a to the to got group we what injecting it picked, already the of hand-picked who've that water naturally have run X and well. shows that got in the inject we XX:XX a different just salt mean, concept has pilot occurring just thresholds review a Well, [indiscernible], this treat result chemical the of today in with So, don't do our than can mine already results long it technology, it this the and studied. fashion” what let water recycling regulatory XX:XX the to has for peer a do And I have as “study pilot we we produced technology Intrepid it, need study. loop know and set the adequately we're produced a makes we review that do of what recycling We or treatment to already meet potash got me to that to forth been study even been we in any XX:XX according off is we're way. the water as that not consortium [indiscernible] problems to of true, standard a Current end done a have with study though people we and currently order who’ve chosen plan, brine put it's and we've we a system. closed back water we've the desalinate guidelines injecting and higher in to with. constituents our underground already attempting produced by produced it's

well no and wells discharge for solution from So, existence we have a over have have there and been monitoring our mines. that don't any already we is decade current leakage in

use. positioned. just XXX, Bill Produced We forth water So, Act the produced well extremely that House we're were put to Water set have regulatory to check to in beneficiary boxes

your So, answered question. I hope I

Jason Ursaner

guess produced – much water successful, how No it's how much to trying Speakers]. XX:XX understand, – if just that I'm I water could [Multiple this

Bob Jornayvaz

increments. day. it's already XXX,XXX barrel is AMAX Right XX:XX we example, for up we a could now Right the XX,XXX a own about now, permitted it. a ramp We've believe slowly mine, to inject that day. barrels barrels got, We we in that inject XXX,XXX into what

Given more grade the day XX:XX to loss have we've years it lot with a water explaining by potash speed a questions of XXX,XXX actually ESG, to companies of project, could stressfully project the but there potash project, brand articulating salt brine. you and just bumps, So, brine inject all a XX:XX right is pieces has XX production increased importantly, we because by to been, to that answering ponds project we this saturated existing build some we the We store not that a having brine, up this because consortium on forward oil passed, and desalinate produced say potash already give benefits. In closed it there produce naturally itself. it and is a to several the in And brine to now theory, So, – new loop need potash getting benefit we're had of more more excited we and been giving benefits higher get build brine. that of to barrels most up XX:XX are the clear parts and we've are those the the but moving will pipeline into you're point theory, The that have ESG are a very want it. for navigate look that the your injecting I and to to injection, to system ponds. having to of that overcome wells. would and this monitoring and about XX:XX very interested partnering ESG could the with is grade build to at ponds, going then least potash. We’d produce without we residence new any of that more time, in

$X brine. use which from other We expensive know, beneficial $X out to water most it part, to most how to there And use you barrel. desalinated, and part cost salt our are can as desalination then to which it's that projects the try some trying produced take anywhere in to figure So, a agricultural out actually are add fashion. that is

a position. in very we’re unique So,

Jason Ursaner

XX:XX mine. it enough And is trying there a successful. guess, not know to just a small sounds, the produced is I'm is this water area understand, $XXX,XXX would guess I around day I'm yet at. I be you the what like this getting in opportunity,

Bob Jornayvaz

this. to lot produced Exxon, multiples of of water. there the could tremendous James a home is we listen a looking a wall and water some multiples There for talking and oil great is on you amount we're of if Conoco, potentially handle. of research what done other has companies, Well, Raymond XX:XX and

Jason Ursaner

is Speakers]? timing this for all between pretty saw market. I [Multiple XX:XX obviously, got the like Okay. biased, Pecos And eventual you to the timing and messed the at I'm year question, like just on Do – back misunderstood and up, things I’m pushed try the the case Investor that investment here last COVID update Day? an obviously by but got for table know trial, to and little potentially a the variants any I the plans being is feel still back have on

Bob Jornayvaz

to have Day to that had love Absolutely, we regulatory adapt Investor know full management explain really cycle XX:XX COVID, changes to program. you would our water we between to, an

put produced now Green the in that injectate that use it still we I think that potash. with to put to recycling water use we're HB how you we rights mine fresh the recycling announcement today to work off water work, now We've significant talking see equipment of fracs. back negotiating own Disposal, and to significant into taking and of still to equipment we're that about XX:XX that go equipment water the recycling got

clear So, is hopefully, picture these various describe as that we somewhat becoming pieces.

Jason Ursaner

Thanks. XX:XX is. Yes, it Appreciate Great. it.

Operator

for closing turn would any conference back XX:XX to remarks. to the session. the like question-and-answer I Jornayvaz This concludes Bob over

Bob Jornayvaz

want interest Tuesday. everyone XX:XX Thank morning. for And taking you comments our we thank listen to just great to this for I wish in a to you your Intrepid. everyone Goodbye. Thank very much. the time

Operator

This today's XX:XX conference call. concludes

You day. may for participating you your disconnect Thank lines. have pleasant and a

Intrepid Potash (IPI) 8 Mar 222021 Q4 Earnings call transcript