Intrepid Provides Update to Potash and Trio® Pricing and 2021 Outlook
December 30 2020 - 4:20PM
Intrepid Potash Inc. (NYSE:IPI) (“Intrepid”) today announced the
following updates on its potash and Trio® pricing and its 2021
outlook.
Recent Developments:
- Potash price into agricultural markets has increased $90 per
ton, or 31%, above 2020 summer-fill pricing after a $40 per ton
increase announced in December. Current potash price into
agricultural markets is $65 per ton above the January 2020
winter-fill price.
- Trio® price into agricultural markets has increased $60 per
ton, or 27%, above 2020 summer-fill pricing after a $20 per ton
increase in December. Current Trio® price into agricultural markets
is $50 per ton above the January 2020 winter-fill price.
- Oilfield outlook continues to improve in the Northern Delaware
Basin driven by an increase in drilling and fracking activity.
Intrepid currently forecasts first quarter 2021 and full year 2021
water volumes in excess of same time last year in the Intrepid and
NGL Energy Partners (NGL) three-ranch area of mutual interest
(AMI). Current indications from operators for water needs during
the calendar year 2021 are in excess of the total water available
for sale under Intrepid and NGL’s Joint Marketing Agreement
affording Intrepid the opportunity to exploit optionality in its
water portfolio.
“Good weather and compelling fertilizer economics have spurred
strong early season demand for potash and Trio® in our domestic
markets”, said Bob Jornayvaz, Intrepid's Executive Chairman,
President, and CEO. “A strong agricultural commodity environment
across a wide range of crops that includes corn, soybeans, wheat,
cotton, coffee and sugar, combined with a reduced potash supply has
driven the improvements in the fertilizer market in recent weeks.
After announcing the price increases in December, we quickly filled
the rest of our Q1 2021 order book before the higher price took
effect and expect the benefits of higher pricing will be seen in
the second quarter of next year. We continue to see good value
across the fertilizer supply chain and have already sold select
spot tons at the higher price levels.”
Jornayvaz continued, “We see strong growth in our oilfield
business as operators on the Intrepid South Ranch and AMI have
aggressively increased development plans, resulting in significant
water requirements for 2021. Due to the amount of water needed for
multi-stage fracs, we expect to exploit the inherent optionality in
our water book, narrowing our focus to the best margin
opportunities as the year progresses. We are also opportunistically
evaluating the purchase of additional water to meet the demand of
large-scale fracs and to serve customers beyond our currently
available water rights. Infrastructure improvements have lowered
our per barrel cost of water transfers compared to last year and
position us well for the coming year.”
“We remain intensely focused on executing in all phases of the
business, particularly on cost and recovery improvements at our
mine sites. We managed well through 2020 and the disruption caused
by the COVID-19 pandemic and are glad to begin 2021 with a lot of
positive news as COVID vaccines start to be administered across the
country. As we head into 2021, we still see significant growth
potential in the areas we operate and look forward to capitalizing
on those opportunities in the months ahead.”
About Intrepid:
Intrepid is a diversified mineral company that delivers
potassium, magnesium, sulfur, salt, and water products essential
for customer success in agriculture, animal feed, and the oil and
gas industry. Intrepid is the only U.S. producer of
muriate of potash, which is applied as an essential nutrient for
healthy crop development, utilized in several industrial
applications, and used as an ingredient in animal feed. In
addition, Intrepid produces a specialty fertilizer, Trio®, which
delivers three key nutrients, potassium, magnesium, and sulfate, in
a single particle. Intrepid also provides water, magnesium
chloride, brine, and various oilfield products and
services.Intrepid serves diverse customers in markets where a
logistical advantage exists and is a leader in the use of solar
evaporation for potash production, resulting in lower cost and more
environmentally friendly production. Intrepid's mineral production
comes from three solar solution potash facilities and one
conventional underground Trio® mine.
Intrepid routinely posts important information, including
information about upcoming investor presentations and press
releases, on its website under the Investor Relations tab.
Investors and other interested parties are encouraged to enroll
at intrepidpotash.com, to receive automatic email alerts for
new postings.
Forward-Looking Statements:
This press release includes certain statements concerning
expectations for the future that are forward-looking within the
meaning of the federal securities laws. Forward-looking statements
contain known and unknown risks and uncertainties (many of which
are difficult to predict and beyond management's control) that may
cause Intrepid’s actual results in future periods to differ
materially from anticipated or projected results. Forward-looking
statements in this press release include, among others, statements
regarding Intrepid’s expectations for future potash and Trio®
pricing and the demand for water into oil and gas operations. An
extensive list of specific material risks and uncertainties
affecting Intrepid is contained in its Annual Report on Form 10-K
for the year ended December 31, 2019, and other quarterly and
current reports filed with the Securities and Exchange Commission
from time to time. Any forward-looking statements in this press
release are made as of the date of this press release, and Intrepid
undertakes no obligation to update or revise any forward-looking
statements to reflect new information or events.
Contact: Matt Preston, Vice President of
FinancePhone: 303-996-3048Email:
matt.preston@intrepidpotash.com
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