Intrepid Potash Q4 2023 Earnings Report
Key Takeaways
Intrepid Potash reported fourth quarter sales of $56.7 million and a net loss of $37.3 million, which included non-cash impairment charges of $42.8 million. Adjusted EBITDA for the quarter was $7.1 million. The company received an initial $50 million payment related to the Third Amendment to the Cooperative Development Agreement with XTO Holdings.
Total sales were $56.7 million in the fourth quarter.
Net loss was $37.3 million (or $2.91 per diluted share), including non-cash impairment charges of $42.8 million.
Adjusted EBITDA was $7.1 million for the fourth quarter.
Received an initial $50 million payment related to the Third Amendment to the Cooperative Development Agreement with XTO Holdings.
Intrepid Potash
Intrepid Potash
Intrepid Potash Revenue by Segment
Forward Guidance
Intrepid's primary strategic priority has been to revitalize our potash assets and I'm very pleased to share that we are on track to successfully achieve this goal.
Positive Outlook
- Potash production outlook is improving, highlighted by the significantly improved brine grades we're already seeing in our harvest ponds at HB from the Eddy Shaft project.
- We are a few quarters away from seeing the first inflection to higher production from our HB mine and we want to be clear that our investments are designed to sustainably support higher potash production over the long-term.
- We recently received the final permit for our sand project at Intrepid South
- We continue to make progress on our lithium resource at Wendover.
- fertilizer pricing has remained resilient and we expect to see steady sales through the spring application season.
Challenges Ahead
- Slightly lower fertilizer pricing proved to be headwinds to our margins in the fourth quarter
- Higher costs associated with our current potash production profile proved to be headwinds to our margins in the fourth quarter
- capital expenditure guidance range is $40 to $50 million.
- growth capital spending is expected to moderate to approximately $20 to $25 million in 2024
- Still have a couple projects to bring online over the next few months
Revenue & Expenses
Visualization of income flow from segment revenue to net income