IPI - Earnings call transcript Q3 2024

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Intrepid Potash, Inc.

Third Quarter 2024 Results Conference Call. [Operator Instructions].

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

Evan Mapes

Intrepid's everyone. our our morning, John and XXXX today to Adams Executive third discuss for and Also Preston. Sales review quarter acting available is Galassini. and Officer, me Zachry Matt With questions Good Operations, results. you of Intrepid's VP Thank is of joining answer and Principal VP CFO us to Marketing,

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

operational non-GAAP we call, included will today's available and along measures press GAAP directly in During to with to yesterday's are filings release, also certain the at SEC are comparable and most financial measures. Intrepid's refer intrepidpotash.com. Reconciliations

over turn I'll the to now call Matt.

Matt Preston

Good our in your We everyone. and attendance Intrepid for Evan. appreciate you, third Thank call. morning, earnings quarter interest

and search ongoing, of there I we We're updates his thank to remain the Chairman at years him contributions time. and continue for additional Board's recovery. grateful past in getting to former into Before for our his and commentary, process communities and Co-Founder this to in leadership. Intrepid our operate Jornayvaz, our XX wish to is many wanted the we his years. no provide thoughts, and first CEO over acknowledge and Bob well his where are CEO, family Bob and The

improvement our last adjusted million, third to a sequentially increase but quarter, a $X.X In of year. $XX totaled slight compared EBITDA million the third the quarter

project production to execution our over including X by year a potash years, prior Our evidenced by same positive in the several quarters compared driven results X the factors, higher performance past successful from periods. was of row

successful revitalization new in of drive production the we production asset completed September, related our process, commissioning potash With rates X injection in of to the which HB key we've to improved seasons. expect upcoming pipeline Phase projects now the

before, effective year. As margins, we tonnes and our ton to compared and economics in of stated per sold the XX% this the cost evident was more as producing quarter is most improved unit third potash by prior the way segment goods to our improve

of quickly different said, trend yield back are help outlook, to for years, farmers into pressures. impacted is segment moved Crop agriculture. continue touch costs and I'll at inflationary inputs, to macro clearly into Before better averages by past historical U.S. on be market. That steady the continue starting the and and maximization getting the details, and corn products. for futures potash, of more our moderating with to should lead demand a Compared fertilizer value we've key couple expected for to soybeans including

calls, remained earnings our and geographic period farmer diversification potash of Furthermore, U.S. incomes, the specialty quite sales even recent highlighted As into our advantage, demand to during continues in we've markets. by supported Intrepid last be resilient. decreasing

market, several potash As for be the global pricing to supported by factors. continues

rates years. offsetting global few next a online in new per of returning levels we coming X% demand to First, supply market historic year, to with balanced growth see X% and the

constructive Overall, fertilizer finish year floor set half Asian XXXX a pricing during on stable head Second, into the we reengage second XXXX. on the markets, market solid Brazil, the in the first started of demand remain year we in to the particularly and has and granular needs. markets global have half as for

highlights. segment quarter third to on Moving

year-over-year, and segment positive underscores even our potash, the sequentially with lower which increases, both impacts showed pricing. In gross higher margin production of modest

and the season For as potash of X totaled year, to production XXX,XXX grades brine anticipated. improved first tons to production months than and production evaporation originally our a higher fall above-average our led the faster start

XXXX. result, production want range to potash As expect to the expectations pulling previously processing of we by our produce to in half are to we full in our in we and half year tons. we call, XXX,XXX now our essentially of be the tons last a expected tons changed, clear more XXXX that the forward second first haven't overall XXX,XXX production XXXX, Since of be

XXX,XXX typically which removed remind of the between with rates our August a As start recent calendar the that in and expectations to harvest looking capital start-up but result, our processing is flat production XXXX tons, When this to timing line variability solar relatively we benefits solution the year mid-spring, folks we clearly of of from runs mines at can production, year XXX,XXX year. our from until project now see we of the in projects.

through harvest And produced year, XXX,XXX tons XXXX looking a of to approximately XXXX XXXX, expect XXXX production the our ahead specifically potash. at of spring from to XXX,XXX tons, we we year and year, compared produce current the to this August to In we XXX,XXX prior the XX% the midpoint. increase expect

$XXX,XXX sales last third margin per Operational $XXX our the year. quarter, per third to tons deficit in sold year compares of a quarter the of Trio a led and well price $XXX cost sales per ton. our XX,XXX in This performed improvement the a economics. to again to in which in improvements quarter, quarter, unit segment realized production period. the which totaled $X.X our goods the million totaling higher at of Trio of And positive in gross volumes third helped contribute prior to same net compares about solid ton, ton $XXX of generating Our with gross in

provided year. range compared that we XXXX, cash the $XX our when previously the project the to savings cost be we've at of prior For higher production Trio million will now also to end $X million

in Lastly, at water and the with primarily large for $X.X year than double a Oilfield South. margin quarter more was Intrepid due prior associated of sequentially. million $X by the frac sales approximately Solutions, third our up to million segment The increased

we've segment our due similar fourth we ranch, can margins the the of South the operations water completion reported As to the in XXXX. on fluctuate quarter sales of before, increased to timing noted

we first encouraged quarter by activity XXXX. Although the New Solutions Mexico, fourth we remain the rates oil to Oilfield field to our in of in expect return Southeast margins half

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

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

progress discussions for As for commissioning once well, a initiatives at key for this longer-term although other our we that be Wendover investors remind selected. project with time a continued partner lithium to would project a line regarding multiyear

in to more AMAX drill started profile expect our at to XXXX. also this next process the the of largest course a is step cabin, permitting the and resource at test a AMAX have normal as and HB. share we cavern We production we in have longer-term development, which we well to on to natural the Permitting mined never is look

good no in end long-term of and To puts it's Intrepid liquidity that I my repeating position strength. having comments, debt a think worth

potential guaranteed and we year In copper although an of is timing $XX addition, million with for guaranteed payments the and another latter. the additional payment amendment has the these in completed uncertain both the agreement million of last to XTO development the payments, $XXX not

of for positioning of Intrepid Overall, ready and continue long-term to call. sustained the focus trajectory we're encouraged Q&A on business we portion now are the our by success. Operator, the for

Operator

[Operator Instructions].

Our with the question UBS. from comes of Josh line first Spector

Lucas Beaumont

Good afternoon. Beaumont Lucas This Josh. on is for

then into and of the common called instead that the of some we've hearing side. season have been from So heading level the for next growers fertilizer out been of cost being across like sort sort on chems about crop P&K potential areas cutting concerns and income

I at outlook risks would potash again into affordable you I season any your sounded So moment? like year. next things for some But relatively demand guess next being still frame getting confident around you're the how pretty improving despite mean in destruction demand

Zachry Adams

the the XXXX. business to current at that those. Zachry few the a last so a question. in price as demand commented they've in potash fall trended in normal seen our back mentioned, to recently they to global be this cuts with levels rates for into seen rates, the customers on as Thanks normal been normalization no represent weeks, applied XXXX, geographies, levels, and those relatively the has they've to expect with that we as This little continue good in to is of Matt grower value and number

a to in price key -- a of of we expect next year. a environment, maximize And maximization is potash yields. yield fertilization good still -- the strategy in a again, even is spring ag balanced weaker even part demand and part of So

Lucas Beaumont

mean, tonne potash, are X down to just the COGS Great. I best lot now then X had year-to-date And which have I and cash and or per guys million basis, you leverage $XX so cost down of we're a quarters in sort on on is a really cost sort of results now. for guess starting through see have the come improved should your that side

it like spending million cash $XX is about seems of track for So sort year the in on there. probably

think feel I go your next improve for as about back way go get the the to into Or on to your to production there of costs of that terms base do a of million? even just is you volumes to more there's kind absolute more base sort of per room up. tonne are good $XX over going in a come sort to where you Obviously, year? to wanted think

Matt Preston

think right about for to track. $XXX mean, go cost XX% prior I to in back we on you the was around calls, per Lucas. our had ton. improvement some of question, goods to Thanks compared sold talked that certainly level, I which Yes. XXXX XX% When a we're

then, time we So It harvest one. benefits. will and of into this course, get see the we through started season take next some as the to

some previously, tons or we on the in have from from I of where so half mean, a of results. of we'll the per lower good down that we're it of to HB. kind get overall, year But expect at to end we and ton. yes, from, it's we our whether we see see I to XX% had we XXXX, $XXX be And we're already second Wendover variability in kind kind of I think But bumpiness probably from encouraged throughout you'll range certainly mean, facilities the our see -- as guided track. sell of the what yes, by that

back per and evident, clearly cost half we're of second quick of goods go $XXX I were The production by sold to pleased the where tonne. are north increased benefits mean 'XX of our from that.

Lucas Beaumont

the I on And Great. oilfield guess then side. just solutions

both in there I a you up So sales there. mean, had and new well. profitability the your step strong from

sales in in rate about to So of of or anything of with should the I $XX million that on the kind I of sort that place, sort the side, how to that's sort we guess in call guess, should that sort of on going now forward how run just wanted thoughts side? here your new temporary think out there of about from get of Is I on we business. that base kind kind think kind of,

Matt Preston

past the kind Yes. We've when into couple moderate our ranch. have completion for we in we nice pretty those visibility rates as sales just half consistent South completion of my business. into I'd XXXX, over operation prepared as rates on Yes, in steady now. major our for of saw first first right remarks, seen as are some of kind are business. but south freshwater quite brine really certainly upticks some margins large the wish years we half I had We the better but and operations on sales is there fluctuations said well I don't say, sales,

is those we we'll And So large information first sales let as certainly, potential folks more on of baseline rates. I and think half a have water, good clarity know.

Operator

comes Ursaner Bumbershoot Our with next Holdings. from the Jason of line question

Jason Ursaner

cutting headline, a of on first just direct not of on direct bit on a president on congrats progress, proposing in one, global market. there. impact follow-up guys, Russia. Obviously, the impact production question but there's a all Lucas' Belarus' the you lot has Matt, a a

kind the compression I'm So in just lower lowest as yields. of that to retail everyone U.S., possible and customer the what wanted started at replenishment, and of the directly terms at the everyone didn't distributor in of way. the price insight last with But your love all would into went obviously, usage still -- got application of of all some inventory really level point their of happening, people supply/demand see income having cut, at but time because great in any guess farmer these maybe kind in some cuts I more and sure the terms other

Matt Preston

Yes. more of still right and kind any Thanks of that we levels. distributor the talk specific mean news much for of view this I'll let in inventory yesterday I say, the early global to question, Zach kind on, touch Jason. stock too about certainly the I to I and mean put it saw But now.

think today. really it balanced supply-demand the would pretty big is is the I to tons a to of, the standpoint, a as global it, shakeup a today point market it million where be call does cuts what even it on X.X market potential high side. from current

of we Zach and sort where it U.S. let So points of today. who nice knows the the think implications to touch certainly, likelihood you just we're are happening, a on in market, but that and balanced will I that

Zachry Adams

regards we period. what in saw around good to question Yes, we fill kind But fall fall, specific of Jason, were. needs subscription distributors, last and in really fall summer as saw the just we spring to to anticipated just that a subscription the your

by really focus not of not really those of any on just retailers. So I another an but available fear a by continue distributors application manage times I much any amid constrained downside, season see to or what call over capital one to environment. price carry more that's intentional a for distributors to now decision from what retailers and we their And as right would driven is to

as with spring first of in year. winter them continue think once the visit fourth late mean what think fill or their to retailers they program quarter, quarter comes project they next needs out needs good our demand with talk or fall early for potash we we and we'll good out, to I their continue we be. customers. into So to spring that that's anticipate see subscription we whether again And

Jason Ursaner

of the the working just cash in cost side projections Okay. old things, at I of is in And guess pretty a how It calculated. the had benefit you've on the some byproduct costs, way. sales because the least was nice

today. does on guess strength how in wondering sales. seeing that with on And you're kind I the then continuation I'm that outlook byproduct the update sitting in costs into production any the of production inflection play So the here of

Matt Preston

forward production, pretty and Ks. byproducts. both tons certainly, costs production and with earnings ago. in It's change a break in increases, years press say expect Yes. more many now a of our To steady don't as going significant various it out I'd markets. our change byproducts really to out the in we'll have production really Qs to I potash potash our little changes byproduct releases an our no They've separate. with increase been comes byproduct production made when There's production our in sell. we've outlook split in costs, But

many like And not so ago. years our did we're credit as that production potash against taking a we

Jason Ursaner

improvement purely the not it's about helping benefiting not costs, on. -- to just -- that's what -- benefit. talk it's in taking you're you It's when So not you're not

Matt Preston

production Purely what's fixed over basis. cost more large very potash a

Jason Ursaner

it. on I make And commentary of to production, the sure the just kind understood

So through year really what that sell trying year, from of next outlook you're the year improvement this is you're it's sort flat you're XX% you're tons year this of next so year-to-year spring pull of year. that But say kind the forward still the right in August in pulling is of to forward production. the now to because of that kind midpoint next going

Matt Preston

that's exactly Yes, right.

a of brine while on good some reasons XX% But I back the to XXX,XXX that some yes, we've guidance forward season, due is we XX% which, a 'XX. call at we we very just to tons of of coming exactly pulling gave number, go were tonnes on evaporation 'XX year blown be kind we just water improved from of calendar very that. and results, want that to off the it some in mentioned, potash the right. XXXX, early projected clear seen year to that I of average you've increase but wanted from off to clear the here be it forward, tons pulling I If have out got kind early calendar you above in grade also basis.

Jason Ursaner

to be the do XXXX And guess, of talk I of of of when full some about in might a you or a you XXXX benefit like you see of to think continuation through improvement? do spring and the of kind position projects? expect August when Or sort XXXX

Matt Preston

Yes. we're any season year evaporation It's harvest of comes the it always give hesitant question. a guidance. good to to when sort I mean

little as that think to up too extraction a we'll mean of the at I start start highlight XXXX, right ramp spring certainly, to indication rates that soon So have better a time. really and and now. then we I

Operator

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

Matt Preston

Thanks, everyone, hope in for and you interest have a great your day. Intrepid,

Operator

This concludes conference call. today's

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

Intrepid Potash (IPI) 5 Nov 242024 Q3 Earnings call transcript