Intrepid Potash, Inc. Q4 FY2024 earnings call

Kevin Crutchfield:

• Introduced himself with background in extractive industries. Mentioned fourth quarter adjusted EBITDA $8.6 million and adjusted net loss $1.4 million, improvements driven by higher production and operational execution. Potash production up, Trio turnaround with new miners and recovery system. Oilfield Solutions a consistent contributor.

Matt Preston:

• Briefly mentioned valuation allowance against deferred tax assets. Detailed potash segment results: fourth quarter production up, COGS per ton improved. Trio segment results: 2024 production and cost improvements. First-quarter guidance for potash and Trio. Outlined 2025 capital program of $36 to $42 million.

In potash, fourth quarter production was 117,000 tons, an increase of almost 50% compared to last year's fourth quarter. Fourth quarter potash COGS per ton improved by 24%. Trio had fourth quarter gross margin of $2.8 million, a more than $5 million improvement compared to the fourth quarter of 2023. 2024 Trio production was 251,000 tons, the best since 2016, and fourth quarter Trio COGS per ton improved by 20% compared to the prior year. Oilfield Solutions had segment sales and margins both showing modest improvements compared to 2023.

2025 Production:

• Anticipates calendar year 2025 potash production will be roughly flat year-over-year. Trio 2025 production estimated at between 235,000 and 245,000 tons.

First-Quarter Guidance:

• Potash sales volumes expected to be 95,000 to 105,000 tons at an average net realized sales price of $305 to $315 per ton. Trio sales volumes expected to be between 100,000 to 110,000 tons at an average net realized sales price of $340 to $350 per ton.

2025 Capital Program:

• Anticipates CapEx of $36 to $42 million, with most directed to sustaining capital including ~$4.5 million related to the HB AMEX well.

• Risk of getting shortsighted on production. Impact of Canadian tariffs not yet fully assessed with specific dollar impact not yet determined.

Q: Please give thoughts on potash pricing, order book forward sales, and Canadian tariffs impact.

A: Matt Preston said potash prices have moved up due to supportive market dynamics, first-quarter volumes mostly contracted, and impact of Canadian tariffs would be seen from second quarter onwards with more information needed.

Q: Follow-up on unit economics, brine grades, oilfield asset sales, and capital allocation.

A: Kevin Crutchfield and Matt Preston responded on unit economics improvements, brine grade trends, oilfield asset sales interest, and capital allocation focus on core assets for free cash flow generation before capital return plan.