Intrepid Provides Update to Potash and Trio Pricing and 2021 Outlook

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.”