Intrepid Potash(IPI) - 2024 Q3 - Quarterly Report

Sales Performance - Potash average net realized sales price per ton decreased to $356 and$387 for the three and nine months ended September 30, 2024, respectively, compared to $433 and$474 for the same periods in 2023[79]. - Trio average net realized sales price per ton increased to $312 and decreased to$305 for the three and nine months ended September 30, 2024, respectively, compared to $298 and$329 for the same periods in 2023[79]. - Total sales for the three months ended September 30, 2024, increased by $3.1 million, or 6$5.4 million increase in oilfield solutions segment sales[84]. - Total sales for the nine months ended September 30, 2024, decreased by $23.5 million, or 11$31.4 million decrease in potash segment sales[93]. - Total sales in the potash segment decreased by $31.4 million in the nine months ended September 30, 2024, with potash sales down by$31.9 million, or 29%[108]. - Total segment sales for potash for the nine months ended September 30, 2024, were $95.966 million, down from$127.363 million in the same period in 2023[143]. Financial Performance - Net loss for the three months ended September 30, 2024, was $(1,833) thousand, compared to$(7,196) thousand for the same period in 2023[83]. - Gross margin for the three months ended September 30, 2024, was $7,732 thousand, compared to$491 thousand for the same period in 2023[83]. - The company incurred a net loss of $5.8 million for the nine months ended September 30, 2024, compared to a net income of$1.6 million in the same period in 2023[103]. - Potash segment gross margin decreased by $17.8 million in the first nine months of 2024 compared to the same period in 2023[108]. - Gross margin for the Trio segment improved to$604, compared to a deficit of $4.29 million in the same period in 2023[111]. - Gross margin for the three months ended September 30, 2024, was$7.7 million, compared to $0.5 million in the same period in 2023, reflecting improved cost management[88]. Production and Operations - Sales volume of potash declined 14$1.7 million during the three months ended September 30, 2024, with Trio segment costs down by $5.5 million, a 31$12.9 million, or 16%, due to selling 14% fewer tons in the nine months ended September 30, 2024[95]. - Trio cost of goods sold decreased 31% in Q3 2024, benefiting from reduced production costs and increased tons produced, which lowered per ton production costs[113]. - Trio segment freight costs increased 14% in the nine months ended September 30, 2024, as a result of selling 12% more tons[116]. - Potash segment freight expense decreased by 18% in the nine months ended September 30, 2024, due to selling 14% fewer tons of potash[108]. Tax and Cash Flow - The effective tax rate for the nine months ended September 30, 2024, was 15.8%, differing from the statutory rate primarily due to permanent differences in book and tax income[128]. - For the nine months ended September 30, 2024, the company incurred an income tax expense of $1.9 million, compared to$1.2 million of deferred income tax benefit and $0.1 million of current income tax expense for the same period in 2023[129]. - Cash provided by operating activities for the nine months ended September 30, 2024, was$64.9 million, an increase of $26.3 million compared to$38.6 million for the same period in 2023[134]. - As of September 30, 2024, the company had cash and cash equivalents of $38.0 million, a significant increase from$4.1 million at December 31, 2023[132]. - The company has a $150 million revolving credit facility, with no borrowings outstanding as of September 30, 2024[136]. Shareholder Activities - The company did not repurchase any shares under its$35 million share repurchase program for the nine months ended September 30, 2024[136]. - The company expects to make capital investments of $37 million to$40 million in 2024, with approximately $20 million allocated for sustaining capital[131].