Intrepid Retires Series A Senior Notes; Updates 2020 Guidance and Announces Earnings Release and Conference Call Dates

DENVER, CO, April 16, 2020 (GLOBE NEWSWIRE) -- Intrepid Potash, Inc. (NYSE:IPI) (“Intrepid”, “the Company”) today, retires Series A Senior Notes, updates 2020 guidance and announces its first quarter 2020 earnings release and conference call dates.

Highlights

• Repaid $20 million of senior notes
• Update 2020 capital expenditure guidance to $15-$20 million, a reduction of $15-$20 million from the top of previous guidance
• Intrepid’s flexible capital requirements protect liquidity and maintain balance sheet strength

Senior Debt Retirement
Intrepid is pleased to announce that on April 16, 2020 the Company repaid at maturity its senior secured Series A Notes in the amount of $20 million, leaving $30 million of senior notes on the balance sheet. After the paydown, Intrepid had cash on hand of approximately $26 million and $30 million outstanding borrowings on its revolving credit facility with $44 million of remaining borrowing capacity.

Guidance Update
In light of the unprecedented COVID-19 pandemic and its impact on the economy, Intrepid has acted early and proactively to adjust capital plans for the remainder of 2020.  The Company expects to invest approximately $10 million for sustaining capital in 2020 while opportunity capital will be approximately $5-10 million for the full year. This is a $13 million or 43% decrease from the $30 million mid-point of original, total capital guidance. The Company is reviewing its 2020 water sales guidance as oil and gas operators re-evaluate their capital programs for the remainder of the year.

“Unprecedented disruption in the global demand for oil has created significant uncertainty in some of the areas we operate”, said Bob Jornayvaz, Intrepid’s Executive Chairman, President, and CEO. “By reducing capital and continuing to focus on cost reductions across our operation, Intrepid is taking the necessary steps to manage through this cycle. We have invested appropriately in our potash and Trio assets and we believe we are well-positioned to operate under a reduced capital schedule in 2020 without sacrificing production or our safety standards. Our nutrients and Oilfield Solutions businesses are characterized as essential by New Mexico and Utah state governments and, while we have instituted appropriate precautions to safeguard our employees and communities, we continue to operate uninterrupted through this unusual time. The oilfield solutions business also has the benefit of minimal headcount and fixed costs, which will allow us to more easily weather this sudden change in demand and quickly ramp-up our operation when necessary. Although the near-term outlook is unclear, our relentless focus on revenue diversification and improving our balance sheet over the past few years gives us confidence in long-term outlook for our company.”