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Sep 30, 2024
Intrepid Potash Q3 2024 Earnings Report
Intrepid Potash reported solid financial performance with narrowed net loss and increased adjusted EBITDA, driven by improved unit economics and higher sales volumes in potash and solid pricing in Trio®.
Key Takeaways
Intrepid Potash, Inc. reported a 6% increase in sales to $57.5 million for Q3 2024, compared to $54.5 million in Q3 2023. The company's net loss narrowed to $1.8 million (or $0.14 per diluted share) from a net loss of $7.2 million (or $0.56 per diluted share) year-over-year. Adjusted EBITDA increased to $10.0 million, up from $2.2 million in the same period last year.
Total sales increased to $57.5 million, up from $54.5 million in the third quarter of 2023.
Net loss narrowed to $1.8 million (or $0.14 per diluted share), compared to a net loss of $7.2 million (or $0.56 per diluted share) in the third quarter of 2023.
Adjusted EBITDA increased to $10.0 million, compared to $2.2 million in the third quarter of 2023.
Successfully commissioned Phase Two of the Brine Injection Pipeline at HB, expected to increase brine injection rates and improve brine availability.
Intrepid Potash
Intrepid Potash
Intrepid Potash Revenue by Segment
Revenue by Segment
Potash Revenue
CapyFin.comTrio Revenue
CapyFin.comOilfield Solutions Revenue
CapyFin.com Forward Guidance
Company delivered solid financial performance with improved potash and Trio® margins.
Positive Outlook
- Brine injection rates will increase to 2,000 to 2,500 gallons per minute with the completion of Phase Two.
- PP7 has been commissioned and we expect to see production improvements during the 2025/2026 harvest season.
- Improvements in our production rates and cost structure compared to the prior year.
- Cash production cost savings at East will be at the higher end of the $8 million to $10 million range.
- Intrepid has now had two quarters in a row of higher potash production compared to the same prior year periods
Challenges Ahead
- The particular uncertainties that could cause Intrepid's actual results to be materially different from its forward-looking statements include the following: changes in the price, demand, or supply of our products and services; challenges and legal proceedings related to our water rights.
- Declines or changes in agricultural production or fertilizer application rates; declines in the use of potassium-related products or water by oil and gas companies in their drilling operations.
- Our ability to prevail in outstanding legal proceedings against us; our ability to comply with the terms of our revolving credit facility, including the underlying covenants; further write-downs of the carrying value of assets, including inventories.
- Circumstances that disrupt or limit production, including operational difficulties or variances, geological or geotechnical variances, equipment failures, environmental hazards, and other unexpected events or problems; changes in reserve estimates; currency fluctuations.
- Adverse changes in economic conditions or credit markets; the impact of governmental regulations, including environmental and mining regulations, the enforcement of those regulations, and governmental policy changes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income