IPI - Earnings call 4 2023 | Intrepid Potash, Inc.

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Intrepid Potash, Inc. Fourth Quarter 2023 Results Conference Call. [Operator Instructions] The conference is being recorded. Instructions] [Operator

like Please conference go now Mapes, to turn Relations. Investor ahead. to would over the Evan I

Evan Mapes

Vice Thank Adams; you, XXXX is Q&A Krista. and Also us Sales today to available Good of Intrepid's the CEO, morning, and everyone. and is John Marketing, Galassini. President questions CFO, and Intrepid's Vice Thanks Bob review to Jornayvaz; of President Fourth Matt Executive answer Operations, session Quarter Co-Founder, results. our and me discuss With Zachry Chairman for Preston. joining the during

Please today, update in statements, SEC, could be subject obligation securities forward-looking assume anticipated, include are reference. and to currently advised that that our with different are actual reports here based we by cause remarks them. are laws. as described risks upon to today forward-looking and materially to statements uncertainties those our uncertainties periodic be are U.S. defined and incorporated results risks the by filed from us no which information These to available These

During financial to and in today's press GAAP comparable release. operational certain are yesterday's measures non-GAAP to most directly Reconciliations the measures. we'll refer call, included

Our SEC our at on are filings releases press available intrepidpotash.com. website and

call I'll over turn Bob. the now to

Robert Jornayvaz

then appreciate your quarter, our for market you, Evan. equity. Good I'll into high-level of for deal Intrepid's the in remarks details a dive overview and and morning, more recent everyone. XTO fourth today Intrepid outlook and my Thank production attendance quarter structuring interest We of our be takeaways call. earnings beginning the updates, with and

as our results XXXX. of potash HB production production to our the IPXXA in EBITDA be XXXX costs prices $XX.X higher drove this fourth profitability totaled profile, primarily impacted Significantly the fourth well continue $X.X by moderating to the failure down due our in the well million, quarter to decline of year, current figure production adjusted negatively while lower In from as our our our million. quarter, bringing

unit and permitted the as we as priority has well for our strategic Fortunately, a This been individual created the has so remains fully failure our production speak. our as mistake been replacement trend #X well economics, to correcting constructed potash impact overall Intrepid. well major

into getting primarily results approximately fourth langbeinite at of mine our noncash were which million $XX in included charges, quarter highlights, our impairment Before directed segment. Trio in also the were East the

that products. During spring application. the higher XXXX, recently fertilizer our fourth than potash and also quarter, volumes demand steady, XX% and the the Market year. our levels has both our And to Trio to potash saw about strong expect up XX% for ahead pricing we are continued previous were compared remain cycle, of sales prior at stabilized for sales we

few markets Longer term, crops the we past with will pricing and down key months. agriculture over even coming the on outlook for remain constructive fertilizer recently for

discussed earnings following potash which saw we As of growth rate XXXX last period XXXX. U.S. incomes still X% in annual back moderating the August, call U.S. peak through farmer and years, we in period our roughly thereafter, the averaged demand in off

currently they're fertilizer by season, application the upcoming over expect position. of this we the the solid Putting profits is continue which, yield U.S. to of positive course, together, given spring years, trend X a in And farmers generated maximization significant very for past past financial the demand.

increase a correct Moving excited extent, the our within #X put execution share to that that on us has year. for recent in the production starting I'm production every The production, company the on path meaningful potash level To second our has at the priority to trend. strategic half in production. our declining to of been

additional that takeaway, compared will quick to be long summary upside XX% least the release. total following earnings with increase higher the on in to project comprehensive and forecast looking XXXX we'll XX% XX% at XX% term. included an But year production We've yesterday's our a key updates expected potash in to for XXXX,

agreement cooperative In amendment our for XTO. with third the mid-December, announced we development

Basin XTO position For is Delaware acreage background, DPA. a ExxonMobil's one some for of very subsidiaries that the in has large

years, our this the within co-developing several respective we've interest helps ensure also this and amendment while been successful continues, many For items. in that formalizing DPA,

Intrepid, seventh or million us the if stipulates development more is expanded we've payments this sooner DPA, anniversary received possibly from and that certain operation not receives of initial Intrepid for area. $XX amendment, For this a receives their oppose island interest within and million, what the XTO. new to drilling date, the the in amendment specific To of and within oil support for exchange year guaranteed agreeing $XX received XTO's with by XTO but approval gas

$XXX significantly also receive now timing additional by payment an million, up and co-development could the in We importance the activities aligned outlook. infusion the enough the that of area. feel We certain of our bolstering to in being drilling derisk helping position are liquidity with with our more with XTO and dependent cash amount XTO. on can't properly this transaction emphasize we Intrepid the

the not well our to is to we're impacts clarify providing sheet unit want economics case, expected our production extremely current worst-case the the for certainly fully looking is Overall, trading, key to we to later the when think Our cash priced a is I XXXX and we But close solid higher positive where Intrepid equity positioned. being program, several balance which scenarios, is potash see cash at capital this points. year. funding close runway associated until with

inflecting summer's so higher Our those potash we're season, be will only evaporation away quarters following a few results. production seeing the from

flow. our and we as margins be measures commodity cash and options we'll accordingly, be protect be on sheet to want cycle, And enhance also the We evaluating our Trio. that that our we'll focusing balance progress for through clear

product is and we're Our primary for that a seeing to potash. of business selling steady see growth, price forecast crops support supports

have helps many of decades reduce that support our which and reserves resources risk. value long-lived We production, terminal can significantly

offer returns lithium, sand underway, nonpotash and and upside. namely attractive The growth already projects

of committing owning For capital won't the these be projects, Intrepid significant risk. all in upfront

various negotiating are of pursuit structure with commodities. JV currently parties each in for those partnership of a we So

$XX We of another have XTO long-term our with from million a and balance XXXX. in the payments time. over position $XXX million $XX XTO cash guaranteed have from August million of $XXX sheet, possibility a we'll revolver Moreover, deal, of additional million of very strong no maturity an debt,

largest shareholder. I'm firmly years, And Intrepid important of the excited to than our that for and this we the in stock can is going. myself direction price the is wanting this believe the many as greater we've in had the outlook control, most items I translate see best No we're and important point. or has stake to have common the stake our a one more in succeed

turn call ahead. I'll the Please to now go Matt. over

Matt Preston

of Intrepid $X.X Bob. adjusted $X.X Thanks, In had net million of the generated fourth adjusted an million. EBITDA quarter, and loss

for sales continue lower our for headwinds remained to and our be with production Although pricing financial and products associated results. key moderating volumes have costs levels steady, higher the demand our potash unit

from our of the As potash levels but the of Bob this in there, XXXX improving way key The evident production start and effective noted, first margins, inflection be our the of higher production. with the to gradual, our prior expected should to peak returning later in potash half will with economics historical improving second keep remains levels be most year. unit improvement

ensure been levels, year in increased sales the last our XX% fourth year, XX% overall Sales we've XXXX take volumes full Despite compared markets our XX,XXX we in sold quarter QX agriculture with sales, up overall into volumes highlights, For to segment made production the respectively, and to of while of potash lower markets of totaled volume XX% the while to sales and approximately sales into comprise sales continuing premium into successful XXXX. tons, feed grow down tons volumes about markets advantage our feed XX%. pricing. Potash, in XXX,XXX

were In the XXXX see the fourth brings Eddy filling harvest. which a But brine commissioning production. of with the highest-grade XXX,XXX at year production tons, in been HB history, Reduced grades should potash October, Shaft calendar and quarter, which our benefit the project the primary tons. of Intrepid's drivers since XXXX we brine our HB lower-than-expected translate production beginning XX,XXX to ponds totaled will with production in some to the fall our at we've Wendover

potash XX,XXX price the the an quarter to in sales first in $X.XX outlook, expect we be sales of realized to the per XX,XXX net $X.XX average of at volumes for range tons range to As ton. our

In to XX,XXX tons, compares Trio, respectively, our XXX,XXX fourth QX and and quarter, and tons XXXX sequentially both tons, sales about volumes same in X,XXX which totaled and prior we XX,XXX XX,XXX was year-over-year. of the In up tons XXX,XXX the Trio, which produced periods. year

per As for the to net $XXX quarter to in be average we the tons ton. volumes an range sales to expect at of realized $XXX Trio price XX,XXX outlook, of sales XX,XXX our first

which range. increase, quarter In saw frac from Oilfield our our increase a to million was attributable roughly sales fourth $X sequential $X a sales in on job approximately largely an our South water million large Solutions,

margin prior the based quarter subject is gross like on Our we jobs timing was are the business quarterly more and our although still becoming fluctuations steady the larger in to organic for with contributor fourth growth, room a of brine frac saw year fourth double we figure quarter.

I'll capital improved remarks of look high clarifying allocation position end ahead. Finally, given period my financial as and our investments, recent priorities our we

million capital And focused away expect is and million, $XX are successfully be about for important initiative which midpoint. remaining the down we and between finishing revitalization potash foremost, most to and expenditures to we on XX% the $XX undertake. far at can XXXX This our efforts. First the is Intrepid compared XXXX,

solid priority through the financial next position balance cycle. strong is a maintaining sheet Our a with

and lithium on commitments, remain completion make moving thoughtful projects. we'll very ensure operational to Third, and projects, develop Intrepid's the already be focused risks for limit the potential we'll teams underway. forward operations reduce successful these But our our potash of continue sure sand to key projects capital we

now call. for portion Q&A ready we're the of the Operator,

Operator

Capital Instructions] of BMO the from comes [Operator first question Joel Markets. Your from Jackson line

Joel Jackson

half and you some I'll the year of you you couple on the bit -- how 'XX potash questions. you year give reductions your you next unit good cost for hit year. costs And bit second cost starting maybe -- increases Can this then one. improve of can potash color the on you give next? by Trio on color Trio volume the a about and of one year of expected of of costs, and second this production Maybe of cost if to into half gave see trajectory might A magnitude for talked ask a cost see in numbers? year, us them

Robert Jornayvaz

you that? want take do Matt, to

Matt Preston

to. Yes, happy

in Given our we're Joel, XX% is production in to where XX% increase today, that production.

QX XX% We to kind expect on of into effect come XX%. potash, will to into really decrease same the late That economics in our QX to unit and really see start results.

the to into start down the inventory those that in we 'XX. sell As fourth beginning go inventory, of tons harvest from quarter fall

consistent. Production a cut lot And per production pretty while is with right kind profile. capital investments, we outlook Trio, cost ton, is steady certainly the For on can, our cash wherever now, look our we investments changing 'XX. of outlook I'd there say, not limit to there back pretty and

Joel Jackson

it that something then in bunch like were Or looked a locked lot we And quarters? the through should your the Is you Okay. in? of for freight next lower quarter. have how going on fourth much costs expect

Matt Preston

between No, mix and mostly pass-through fluctuates sales, our freight us, a is for Freight, depending cost. of rail. really, location on just truck

that we average that we is when focus sales give -- when guidance. give price our realized on factor So net why realized net we that forward

averages. sort see of on to reason no go but to where long-term we won't just we'll and think so fluctuations normal we're based trends back selling, And

Joel Jackson

said And finally, look at actually that scenario $XX other kind I kind -- got then the you is color. does know what in best that the What think but $XX you if in is it of envisioned getting came I $XX the million? you the of QX, X release, what the case million it's December. for And look I years, first million, in within some of your second But the second payment, think, like? I press

Robert Jornayvaz

or Well, area to geographic within BLM that XTO islands, potash area currently has applying a is Exxon the is is known which approve. small the -- for drill

and areas made can't clear I critical speak they've in the it don't but their so to of Delaware the you're and Basin, overall, Pioneer, both areas very Exxon are focus. the know I terms as Permian if XTO. merger them for And that of Midland with following Basin,

commitment of Exxon plan. Pioneer of the public their their So it's Delaware to timing Basin. their significant they for permits, to to question development that sooner -- a there's merger and we our go statements, given more sooner much get reading the But and work paid. receive and with the as The

significantly sooner, an there's given that payment to So control. Basin, that's not Delaware Exxon's to our but the I opportunity think, commitment happen for under

Operator

from Spector Your UBS. next line Josh the question comes of from

Lucas Beaumont

like to if wrote Trio. Lucas clarify this fiscal. other Josh. XX,XXX potash way I not for XX,XXX to and guys Or sure the sounded was down want front. around? Beaumont said just I'm volume the back This for for XX,XXX to to But you on guidance is I it XX,XXX for that

Matt Preston

No, that's correct.

Lucas Beaumont

potash Sorry, is to XX,XXX XX,XXX?

Matt Preston

That's right.

Lucas Beaumont

Okay.

could to year-on-year first then kind us of dynamics be So just to I there? XQ that why to you to talk the kind the guess that's XQ expecting in from of quarter, you're kind as just down of

Matt Preston

We It's in pricing, much a in advantage XXXX. just tons of inventory XXXX being Yes. production high could took selling function down. of our as and as obviously we

Robert Jornayvaz

Facility. the resulted well failure lost be of To in between and fourth tons HB XX,XXX at quarter XXXX production the in somewhere happened Yes. clear, that the XXX,XXX

I on our my remarks. production it in out failure, why the So failure early impact that's had overall that one and part significant very of called a well

Lucas Beaumont

Great.

I and lot -- a have sorry, mean ahead. So go you

Robert Jornayvaz

to I ahead. going was say just go --

Lucas Beaumont

Sorry.

You mate, ahead, go sorry.

something had finish. you please add, If to

Robert Jornayvaz

I a will occur reason and it's we constructed is initial it commissioned, the profile. say, to part replacement impact once had and completed just well is we to remarks production in the our was being called an failed impact XX the expected And mistake own actually that that going the immediate speak. out we to that, well our is major to But which next fact the as it days. of XX correcting down have in

Lucas Beaumont

Great.

on guess, lot sort good where in I gave the press are, a then of and you projects the color -- of mean of release. kind I So just

kind up sort in quarter. of March So milestones I here have of quarter second key of you the mean, kind coming in the third and

is completion you understand kind us stand of -- could risks? mean, feel the just help it is your does I hitting dates? Or and you around currently? there I And any sort how that there timing mean of the confidence about of how So kind in

Robert Jornayvaz

whole mitigate to Well, the we well. of us We unusual an redrilling a drilling in -- team took drill of It the that to year well. new completely the took to almost design. replacement of order we well, the amount second Unfortunately, on repermit risk time. a changed the permitting brought that

And speak. so site, good is, as -- on permitted. news the the fully there's It's pipe a actually we drilling it's rig conductor

the of hopefully done in and we by so that's impact the And brine ponds hope best the and pool that end company given ponds. entire to to within well able will April. of the structure, have those And our largest that, put completed a harvest Carlsbad month that at end the being high-grade we commissioned begin brine material our of have by as into

Lucas Beaumont

the XX,XXX year? relative kind to XX,XXX for Is half help a us can the you last this that in second it XX,XXX mean And of tons in in I of if that frame all to of second the I uplift the material said this mean, goes in probably tons [ guess, so I half? you're tons expecting plan, half, second of of production ] the volumes sort kind you year,

Robert Jornayvaz

there. terms of to the it's brine in it that XXX,XXX in by that evaporation down unable Well, quarters, break clear access. still given to we seasonality the But that we somewhere cycle. be It's the to big from X were hard lost want pool between I XX,XXX tons and trying part,

will be we'll tons ponds, harvest those so our And begin going and to those. into

to a it a basically trying build multiple. because effect, if you're you know pinwheel I starts have So we model, but will, quarterly

so we're for as abandoned much mines given and we've of the has from time now brine abandoned our As has be brine that ponds. to some into a HB years been -- have history, which explained build going just project, higher several to producing the we IR outline up we've for grades decks, our and that mines now to those flooded, Shaft the grade, got from in our grade Eddy highest resaturate brine tried in we our in multiple this putting

if pond you. it to and yourself So think become look deck with minutes will and evident system, HB IR at could familiarize X take I more our the you

Lucas Beaumont

-- happen that, payment. it. about of more lastly, sort it that bit on hurdles just mean a one talk the kind sort I sort of you like sounds you pursue reasonable what would maybe terms we'll sort of of over I of the of sort incremental the confidence in further degree a the mean then have on from million to of contingent million hurdles $XXX the question sort are And could similar of of need that following time? of $XX

Robert Jornayvaz

really get It's island off there Once hurdles. Well, drilling any islands. then they they there's payments hurdles. really those described contingent their aren't drill next no approved, drilling as as

so starts quickly them and aligned are happening terms first they approved, much And that drill very drill of receiving once island. it that in very island all now get we

at are And Exxon to to Basin for you their I just importance and take going of with the believes Exxon Delaware would looking terms in look where significance Exxon's guidance back production. of their the to as comments and

of So that's question. Exxon an more

Lucas Beaumont

Yes.

So I them island. that the linked first one you doing to mean one was drilling I guess just said

So to are the Or incremental drilling -- what's ones mean, linked [indiscernible] I multiple islands?

Robert Jornayvaz

process. their simply get We one the kick to need off to entire approved first

Operator

[Operator next the of Bumbershoot Instructions] Ursaner line from question comes Holdings. Your Jason from

Jason Ursaner

of the the I then I to getting you and been want the I long And that. adding know your the at commentary you on that's deal XTO end, just coming. progressing. just I sand appreciate how time terms projects congratulate CapEx First, on the they're for a permits. details appreciate final Bob, all And in

ahead out clean XXXX? Or season front the on in CapEx the is of about either a that been there maybe pretty number? of loaded terms the laid timing you've Just capital that's sheet. anything first, or that in balance notable working Is spring

Matt Preston

some kind those I certainly, when weighted I half happening as and capital, in it the lot Jason, obviously covered of of be is IPXXB, 'XX started Wendover of mean, now, towards be as first they'll the the well, replacement more it projects which The in first primary and half the XXXX, going to wrapping in to of began 'XX. right is up comes think which a pipeline, we've HP pond, Yes, well.

pretty that the million, to the towards of more year. will from the which is half side, certainly, balance $XX and growth weighted so year the spread million that throughout of the And be sustaining capital piece, evenly first $XX

Jason Ursaner

Okay. And either lot Because but about or understanding speak me with maybe do to project? economics is a using of talked probably it be. if project, my you of you've the I the would to for whoever remind cost option this apologize can before, the sand about I next regional has the sand whoever to the is guess closest

this now is project So competitive view what guys? area running, up in you or of when kind and what's regional of the can the besides get

Robert Jornayvaz

first the be Southeast mine will -- It be Mexico. it closest only sand and the in will New

it pay costs it So pay from or own the of basis. sometimes they transportation their a operators for on mine, at logistical they which and standpoint, a buy delivered sand, FOB they pay for

the be in now the Basin, being only and on will the we the Delaware wells Logistically, we Mexico will drilled. mine closest and the to New permitted side, be

to not advantage of being to permitted are a transportation we be drilled. So thousands the a if have significant currently -- and will standpoint that from logistical wells the to scheduled hundreds, wells

Jason Ursaner

you of have, it upfront that of a just would Or for I clear. pretty would look bring more aspect do sand mine, someone money kind financial getting prior all running on? kind to experience it is looking operating, partner, of instead it the That's maybe is yourself? of to that And that a with guess, Okay.

Robert Jornayvaz

lot very The of is, got would I components important. good we've say news are interest. a both

currently several go and so at we're of negotiating and just And have could we we it that, that directions park. feel that the nature the leave like I'll

Jason Ursaner

pond? will second on additive? pond, which, have would a And be replacing is HB is Okay. But primary primary been of in a one now that, the kind primary old more what Or I that talked then Wendover, the X, declining you guess, lot of some just -- about I last the pond specifically, that rates guess, questions.

Robert Jornayvaz

a don't say be primary because that storing X, pond -- eventually then construction would will still so forward purpose of on tremendous multiyear we #X brine I replacement. X look opportunity. capital. pond is a allocate We'll Wendover we primary pond we start it's flow We're into will just has bunch X. will in going which And to

Assuming joint only to lithium partner available capital out potash the with the we lithium well. but production venture, magnesium not increase structure production, be greatly and, there a facilities will hopefully, a enhance will salt as that increase

Jason Ursaner

is the the pond kind today mag you like Is of guess, kind is byproduct? pond built? And kind with number... Okay. contingent where X just, where being on being of tons, on X,XXX it that of X that lithium, numbers, on built? Is the the chloride the Or contingent that I as are

Robert Jornayvaz

ditch [ a collection that ] number really pond or X. X X,XXX is just literally is The base in sitting

And achieved so decades, last concentrations we the we where know that many, we that's lithium. consistently, not if years, of the many over highest

so years. over it's several And measured been

additional an flow very that with place we tons. and to X,XXX ideas working -- have that can we're additional to through have the system, X,XXX we where collect points we partners collection how know those some tons sophisticated We

financed, news strategic enhance DLE dollar our primary directly production production. our the great So the greater spend understands potash result goals well right technology will we combining and is, is seasonality, in with that lithium understands any -- that partner to is

true this. a in of is it we So terms structure how win-win who and

Operator

Josh Your comes UBS. from Spector from question of line the next

Lucas Beaumont

Lucas It's here again.

the on side. just So Trio

how So for I please? volumes you've talk there about thinking for you mean, in the rest the year the large about step quarter. could kind a you're just pretty got up us, the of first of

Zachry Adams

America, mild our have we weather I season and segment. trending see a we're ahead of seeing spring as that's North conditions, echoed, just to normal the in that here Yes. think Certainly, Thanks for question. in Trio certainly others due

our so expect So certainly that, would does we to far. QX reflect it and

of on first little than through bit the different nutrients that longer bit that the has some little a a demand half. is piece Trio other tail But a in

as see not side-dress product steady volumes well. expect crops quarter for early only second that for different also on as a would variety we summer through the and but used applications, to applications in of is still So pre-plant

Lucas Beaumont

And would which sorry, than level. up XX,XXX XX% half, kind put the tons first be of when last higher year XX%. that's it this you could will say so mean on correct? I of Is at in there, implying you XX stay kind that last that XXX

Matt Preston

No. and our QX sales tail towards be quarter an trends, Zach we'll mean, will Trio, then we season, said. back sort seeing certainly of and of early strong I all mean. mean, QX. here largest certainly I we're spring our for sales got off half as I demand there. like But of see the seasonality

So it volume. a and going to QX consistent by be QX is no means

Lucas Beaumont

ahead. go Sorry,

Matt Preston

it's with said, years. I consistent very prior

Lucas Beaumont

And following from earlier cost on the just question Joe's on Great. saves.

ton had about Trio the in as In sort sort step cost, talking of side, I you're of think. well. so So up aggregate you there cost the the the level

Is be flat roughly? assuming kind of you to about are aggregate as the how you year-on-year costs well, were going So that it? that think

Matt Preston

correct. -- was yes, Yes, that that's

Lucas Beaumont

And Yes. CapEx that the on one. just then on following up side, just

you most to million growth to of of of mentioned that's So million. sort kind down start this from year, sort wind CapEx you to of falling $XX going to is the $XX and highlighted later

right to as of these I like CapEx, obviously, I well year, ongoing go too. you So mean, you're next have guess, going growth into kind

carry will that And So you in see a guess, normal sense? growth happening of what's how CapEx level kind this year that of into left how is spend XXXX? of like I in of much like terms

Matt Preston

$XX I revitalization, bit a in mean years as Yes. obviously, big X range, $XX have 'XX, that 'XX. been on the last far million, in as significant CapEx down 'XX, the push million

when evaluate as expanding continue X opportunities to, it forward and So like and we certainly sense the projections We'll front that are those we'd Moab into at profile bed currently in levels. complete for and to if then at running, production significant now but successful of no makes work that get we'll nothing areas, comes other 'XX our us what are point projects in to sure underway, continue future and to and years. those just to up evaluate see and make certainly,

Lucas Beaumont

something. just your of could work of with I and wondering potential think latest where you would that are revenue project $XX a million us economics then sort of percentage the thoughts And you a projects, kind How moment, either be it you of how on kind have kind Is obviously, of if the JV have $XX like X,XXX on JV of royalty you're capture of the of of sort a lithium there just prices going costs everything, at through kind or which production there's I split that? worth would the think sort in mean walking year then, the partner. and the million was of of bit a tons sales, would you about like year to of the give you to with lastly agreement? to if kind

Robert Jornayvaz

the to it as mineral. a since view don't We oil we the we lithium at pretty -- analogy. payment. lease own and use upfront look the mineral We gas outright, fee. significant own in We that our We

would ranch in a that. the off structure, royalty mineral owner, if would Eagle would as be we the for so South of costs, like a all, not a opportunity you Texas then upfront where, a play, Ford responsible take they payment would significant And of you the you majority, and collect have the to capital significant

any you would give lithium to every production we that to so spend the expand, well. expending which, ponds, in as us opportunity actually improve my mag remarks, dollar in as not capital. I be chloride And production said additional berms, potash results create more more would It salt and

especially focused out why fee. now being we're that's of facility right so we really there an has in effect dollar So the impact Intrepid. spent the lithium wind multiple our own our And over on because on Utah,

Operator

from Holdings. Your comes of question Instructions] line Bumbershoot Ursaner [Operator from next the Jason

Jason Ursaner

to lot understand. on of moving a just try make parts, to the wanted sure there's I because follow-up just I HB

IP Eddy year XX like brine the a So that this have kind until stop of all time like you Shaft residence well, gallons, production? kind the for evaporation up in sort for stop get next XXX of makes step bit of you so that you kind it the best stop injection to get gap And project, a million is like the point? little if where can hitting way it's that's that And initial to the then pool then gap of XXXX a think gap, have for the to year's about out of sense? a the from at

Robert Jornayvaz

to But a Yes, years Shaft that cooking stop the than failed the to a out Eddy that's of several best for there way of We're the brine IPXXB it. pool gap. great heart since turned will be the IPXX put been be in original that's project a well years brine fortunate bit ago. X better that little

time. X new So given it significant currently know times. has grade. be to best are It's it numerous at which least that has, the if We've to pump years, it pipeline. the enough had brine for being We XX% tested brine the that and mines company our not brine that flooded X.X years, residence there's gives other

filling the we're up at now the that we levels, new not entire an spent, -- that's built pipeline capital has reinjecting been system let's So forget, already much that mines. higher so

benefits time in significantly the it you. long-term So brine will to be more brine which has available very in we're injecting where first positive your and we're X than XXXX, the that's withdrawing, years to grades

seen years, the of pool XX for that months, inception doing the while if just successfully, highest since residence a can as we at well because IPXXB pipeline So effect at we everything pull speak. system. has get we're We from to long-term That least else which rate need made X creates not been pinwheel injection literally the in it's mine. time, gains investment drilled the the brine

Jason Ursaner

So touches a pools. there's obviously well, of operational on number the different the these -- life IPXX that

focus and but short-term the that obviously, -- So is calling apologize, initial I the the lower that's one, pool it's -- depth initial the what this know Shaft. Is I brine pool. it a don't you're than Eddy at

from that IPXX So tapping extracting all after or next not then of pools is year that, the hopefully, you're well so? for other the

Robert Jornayvaz

extraction wells and wells existence other have operating in Those No. caverns. successful in all numerous those

to which try our that's different currently and that ask lay very in the there, out wells we great so many are to and all shape. and And that IR see people can We the so that withdrawal have go that how different I would caverns, you easily everything wells deck. injection operating systems well just

those all additional that grade for time. are to higher residence because get mines other flooded gives brine just of It now the abandoned time

And so mining that they to we thought speak to the more of explain these our to so best that look them give can as way we maps along complex issues. stockholders literally to some is

Jason Ursaner

Because where, in higher the talking availability. brine of of Page you're X the now I And of -- X% so the guess, on I about was higher the like you're Moab about presentation, these talking some range maximum the just it -- in the or brine think pools. example. end that I'm -- X of That's

great have you're is a given there is assuming on X% -- can rate, a have HB decent to similar is that you're think way -- get going the Is you Or if -- of have brine out to you the HB? going easiest it about performance similar it? kind evaporation, chart just of to

Robert Jornayvaz

give it a just up way pipeline, easiest to because you get actually potash. is have think it's so dilute the brine And to it. XX% underground perspective, to we the it the saturated in to That's and through about

Operator

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

Robert Jornayvaz

much. for a look very you, in you Intrepid. today. we wish week, and quarters. interest your Thank We the time appreciate And upcoming you we your to great really really forward Thank everyone,

Operator

today's conference This concludes call.

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

Intrepid Potash (IPI) 7 Mar 242023 Q4 Earnings call transcript