Intrepid Potash (IPI) Ramps 28% on Update

Intrepid Potash (NYSE: IPI) shares are ramping 27.5% after the company provided an update to potash and Trio pricing and its 2021 outlook after the close.

“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.”

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