DENVER, CO, Dec. 30, 2020 (GLOBE NEWSWIRE) -- 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 Finance
Phone: 303-996-3048
Email: matt.preston@intrepidpotash.com