Core Insights - Intrepid Potash (NYSE: IPI) is currently trading at a value that reflects its equity, with significant growth in production, cost improvements, and no debt, making it an attractive option for potential buyers at a discount [1] Group 1: Company Overview - Intrepid Potash has experienced substantial growth in production in recent years [1] - The company has implemented cost improvements that enhance its operational efficiency [1] - Intrepid Potash holds key US assets that could attract potential buyers [1] Group 2: Financial Position - The company operates with no debt, which strengthens its financial stability [1] - The current trading value is considered a significant discount compared to its potential [1]

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) For the first quarter ended March 31, 2025, Intrepid Potash reported a net income of $4.6 million, a significant turnaround from a net loss of $3.1 million in the same period of 2024, driven by higher sales volumes in both the Potash and Trio® segments [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Account | March 31, 2025 ($ millions) | December 31, 2024 ($ millions) | | :--- | :--- | :--- | | **Total Current Assets** | 198.9 | 183.8 | | **Total Assets** | **601.3** | **594.5** | | **Total Current Liabilities** | 38.5 | 38.0 | | **Total Liabilities** | 121.8 | 120.1 | | **Total Stockholders' Equity** | **479.5** | **474.4** | - Cash and cash equivalents increased to **$45.7 million** as of March 31, 2025, from **$41.3 million** at the end of 2024[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) | Metric | Q1 2025 ($ millions) | Q1 2024 ($ millions) | Change | | :--- | :--- | :--- | :--- | | Sales | 97.8 | 79.3 | +23.3% | | Gross Margin | 14.6 | 6.4 | +127.0% | | Operating Income (Loss) | 5.0 | (4.3) | Turnaround | | **Net Income (Loss)** | **4.6** | **(3.1)** | **Turnaround** | | **Diluted EPS** | **$0.35** | **($0.24)** | **Turnaround** | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) - Total stockholders' equity increased from **$474.4 million** at December 31, 2024, to **$479.5 million** at March 31, 2025, primarily driven by a net income of **$4.6 million** and stock-based compensation of **$1.1 million**[12](index=12&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Cash Flow Activity | Q1 2025 ($ millions) | Q1 2024 ($ millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | 10.9 | 41.5 | | Net cash used in investing activities | (5.7) | (6.6) | | Net cash used in financing activities | (0.9) | (5.0) | - The significant decrease in cash from operating activities YoY was mainly due to a **$44.4 million** inflow from deferred other income in Q1 2024, which was not repeated in Q1 2025[14](index=14&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company operates through three segments: Potash, Trio®, and Oilfield Solutions, delivering minerals for agriculture, animal feed, and the oil and gas industry[17](index=17&type=chunk)[19](index=19&type=chunk) - Under a Cooperative Development Agreement (CDA) with XTO, the company received a **$50.0 million** initial fee, recognized as other operating income on a straight-line basis over the agreement term ending February 2046, with **$1.1 million** recognized for Q1 2025[29](index=29&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) - The company is involved in a class action lawsuit alleging failure to properly compensate employees for donning and doffing personal protective equipment, with alleged damages exceeding **$5 million**, and is awaiting a New Mexico Supreme Court decision on a water rights case that could result in a repayment liability[69](index=69&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) | Segment | Q1 2025 Sales ($ millions) | Q1 2025 Gross Margin ($ millions) | | :--- | :--- | :--- | | Potash | 43.6 | 2.5 | | Trio® | 49.8 | 10.4 | | Oilfield Solutions | 4.4 | 1.7 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the improved Q1 2025 results to strong sales volumes for both Potash (up 39%) and Trio® (up 21%), generating a gross margin of **$14.6 million**, and plans **$36 million to $42 million** in capital investments for 2025, maintaining sufficient liquidity with **$45.7 million** in cash and no credit facility borrowings [Significant Business Trends and Activities](index=27&type=section&id=Significant%20Business%20Trends%20and%20Activities) - Potash sales volume increased **39%** in Q1 2025 vs. Q1 2024, though the average net realized sales price per ton decreased to **$312** from **$395**[99](index=99&type=chunk) - Trio® sales volume increased **21%** in Q1 2025 vs. Q1 2024, and the average net realized sales price per ton increased to **$345** from **$300**[102](index=102&type=chunk) - A key strategic project is the HB AMAX Cavern, with an estimated capital investment of **$4.5 million** to drill a sample well, expected to be completed in July 2025[104](index=104&type=chunk) [Consolidated Results of Operations](index=29&type=section&id=Consolidated%20Results%20of%20Operations) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales | $97.8M | $79.3M | | Gross Margin | $14.6M | $6.4M | | Net Income (Loss) | $4.6M | ($3.1M) | - The **$18.5 million (23%)** increase in total sales was driven by a **$13.4 million** increase in Trio® segment sales and a **$6.0 million** increase in potash segment sales[107](index=107&type=chunk) - Cost of goods sold increased by **$4.4 million**, but lower per-ton costs for both potash and Trio® contributed to the significant improvement in gross margin[110](index=110&type=chunk)[113](index=113&type=chunk) [Segment Analysis](index=32&type=section&id=Segment%20Analysis) | Potash Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales | $43.6M | $37.6M | | Gross Margin | $2.5M | $5.6M | | Sales Volume (k tons) | 103 | 74 | | Avg. Net Realized Price/ton | $312 | $395 | | Trio® Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales | $49.8M | $36.5M | | Gross Margin (Deficit) | $10.4M | ($1.1M) | | Sales Volume (k tons) | 110 | 91 | | Avg. Net Realized Price/ton | $345 | $300 | - The Oilfield Solutions segment sales decreased by **$0.9 million** to **$4.4 million** in Q1 2025, driven by a **$0.7 million** decrease in water sales due to reduced oilfield activity[133](index=133&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) - As of March 31, 2025, the company had **$45.7 million** in cash and cash equivalents and no borrowings outstanding under its **$150 million** revolving credit facility[146](index=146&type=chunk)[152](index=152&type=chunk) - The company expects to make capital investments of **$36 million to $42 million** in 2025, primarily for sustaining capital[145](index=145&type=chunk) - No shares were repurchased in Q1 2025 under the share repurchase program; approximately **$13 million** remains available under the authorization[154](index=154&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its market risk exposure since its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the company's market risk exposure since December 31, 2024[159](index=159&type=chunk) [Controls and Procedures](index=40&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025, with no material changes in internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of March 31, 2025[160](index=160&type=chunk) - No changes occurred in internal control over financial reporting during Q1 2025 that materially affected, or are reasonably likely to materially affect, internal controls[161](index=161&type=chunk) [PART II - OTHER INFORMATION](index=41&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=41&type=section&id=ITEM%201.%20Legal%20Proceedings) This section refers to Note 15 of the financial statements for detailed information regarding ongoing litigation, disputes, and regulatory proceedings - For information regarding legal proceedings, the report refers to Note 15 - Commitments and Contingencies in the financial statements[164](index=164&type=chunk) [Risk Factors](index=42&type=section&id=ITEM%201A.%20Risk%20Factors) The company states there have been no material changes to its risk factors since its 2024 Annual Report, except for highlighting the potential impact of new U.S. tariffs and retaliatory tariffs from other countries, which could increase costs and affect customer purchasing decisions - A new risk factor has been highlighted concerning the potential adverse effects of U.S. tariffs announced in April 2025 and possible retaliatory tariffs by other countries[167](index=167&type=chunk)[168](index=168&type=chunk) - These tariffs may affect raw material costs, customer purchasing decisions, and increase overall operating costs[168](index=168&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2025, the company withheld 24,780 shares of common stock to cover employee withholding taxes upon the vesting of restricted stock, with no shares repurchased under the publicly announced share repurchase program, leaving approximately $13 million available - In Q1 2025, **24,780 shares** were withheld to satisfy employee tax obligations on vested restricted stock, which is treated as an issuer purchase but is not part of the formal buyback program[171](index=171&type=chunk) - The company did not repurchase any shares under its **$35 million** share repurchase program during the first quarter of 2025, with approximately **$13 million** remaining authorized for future repurchases[171](index=171&type=chunk) [Defaults Upon Senior Securities](index=43&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[172](index=172&type=chunk) [Mine Safety Disclosures](index=43&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) The company affirms its commitment to a safe work environment and compliance with safety regulations, with detailed information regarding mine safety violations provided in Exhibit 95.1 of the report - The company's safety programs aim to eliminate accidents and comply with all health and safety regulations, including those from MSHA and OSHA[173](index=173&type=chunk) - Detailed information concerning mine safety violations and other regulatory matters is provided in Exhibit 95.1 to the Form 10-Q[174](index=174&type=chunk) [Other Information](index=43&type=section&id=ITEM%205.%20Other%20Information) The company reports that no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the first quarter of 2025 - During the three months ended March 31, 2025, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement[175](index=175&type=chunk) [Exhibits](index=44&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including a Cooperation Agreement, officer certifications, and mine safety disclosures - The report includes several exhibits, such as officer certifications (31.1, 31.2, 32.1, 32.2), a Cooperation Agreement (10.1), and the Mine Safety Disclosure Exhibit (95.1)[176](index=176&type=chunk)

Financial Data and Key Metrics Changes - In Q1 2025, the company generated adjusted EBITDA of $16.6 million and adjusted net income of $4.6 million, compared to adjusted EBITDA of $7.7 million and an adjusted net loss of $3.1 million in the prior year, marking significant improvements in profitability [6][7] - Cost of Goods Sold (COGS) per ton for potash improved by 17% from the 2023 baseline and by 25% from the peak in Q4 2023, coming in at $313 per ton [7] - COGS per ton for Trio was $235, representing a 22% improvement compared to the previous year's first quarter [8] Business Line Data and Key Metrics Changes - Potash production in Q1 2025 was 93,000 tons, an increase of 6,000 tons year-over-year, with a 40% increase in tons sold despite a 20% decrease in average net realized pricing [13] - Trio achieved a quarterly sales record of 110,000 tons, with an average pricing increase to $345 per ton [9] - The Oilfield Solutions segment generated revenue of $4.4 million with a gross margin of approximately 38% [15] Market Data and Key Metrics Changes - Potash prices increased by $55 per ton and Trio prices by $40 per ton during Q1 2025 due to strong demand and tight supplies [10] - Global potash demand is returning to a trend line growth of approximately 2% per year, with a balanced market expected heading into the second half of 2025 [10][11] - U.S. agriculture exports for corn increased by about 25% year-to-date, supporting forecasts of low crop inventories [11] Company Strategy and Development Direction - The company is focused on revitalizing core assets and improving unit economics, which has positively impacted production and profitability [7][10] - Future capital expenditures are projected between $36 million to $42 million, primarily for sustaining capital [17] - The company aims to maintain consistent and predictable performance while controlling costs and improving production volumes [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potash and agriculture markets, citing beneficial tariff treatments and a weakening dollar supporting U.S. agriculture exports [11][12] - The company remains well-positioned with a debt-free balance sheet and constructive potash fundamentals, expecting to continue positive momentum into the rest of 2025 [18] Other Important Information - The company expects potash production for 2025 to be close to 285,000 to 295,000 tons, with improvements anticipated from the new primary pond in Wendover [14] - The permitting process for a sample well is expected to be completed by Q2, with commissioning by July [17] Q&A Session Summary Question: Potash pricing expectations for Q2 - Management explained that Q2 pricing is projected at $350 to $360 per ton, reflecting a differential due to higher fee contracts in Q4 of the previous year [20][21] Question: Production volume expectations for the rest of the year - Management indicated that production forecasts are based on recent projects and the Wendover facility, with a focus on maintaining production levels [23][25] Question: Cost outlook for Trio beyond this year - Management noted that while improvements in cost per ton are expected, there may be a slight uptick in costs due to general price increases and lower production in the second half of the year [26][28] Question: Assessment of company performance and focus areas - Management highlighted the importance of maintaining focus on core assets and consistent performance, aiming for predictable cash flows [30][32] Question: Cash flow generation and capital allocation - Management confirmed that Q2 is typically the best cash flow generation quarter, with discussions on capital allocation becoming more relevant as performance improves [38][41]

Financial Data and Key Metrics Changes - In Q1 2025, the company generated adjusted EBITDA of $16.6 million and adjusted net income of $4.6 million, compared to adjusted EBITDA of $7.7 million and an adjusted net loss of $3.1 million in the prior year, marking significant improvements in profitability [6][10][13] - Cost of Goods Sold (COGS) per ton for potash improved by 17% from the 2023 baseline and 25% from the peak in Q4 2023, coming in at $313 per ton [7][10] - COGS per ton for Trio was $235, representing a 22% improvement compared to the previous year's first quarter [8][10] Business Line Data and Key Metrics Changes - Potash production in Q1 2025 was 93,000 tons, an increase of 6,000 tons year-over-year, with a 40% increase in tons sold despite a 20% decrease in average net realized pricing [13][14] - Trio achieved a quarterly sales record of 110,000 tons, with an average pricing increase to $345 per ton [9][10] - The Oilfield Solutions segment generated revenue of $4.4 million with a gross margin of approximately 38% [15][16] Market Data and Key Metrics Changes - Potash prices increased by $55 per ton and Trio prices by $40 per ton during Q1 2025 due to strong demand and tight supplies [10][11] - Global potash demand is returning to a trend line growth of approximately 2% per year, with a balanced market expected in the second half of 2025 [10][11] Company Strategy and Development Direction - The company is focused on revitalizing core assets and improving unit economics, which has positively impacted production and profitability [6][7] - Future capital expenditures are projected between $36 million to $42 million, primarily for sustaining capital [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potash and agriculture markets, citing strong U.S. agriculture exports and beneficial tariff treatments [11][12] - The company remains well-positioned with a debt-free balance sheet and expects to continue positive momentum into the rest of 2025 [18] Other Important Information - The company anticipates a solid Q2 2025, with potash sales volumes expected between 60,000 to 70,000 tons at an average net realized sales price of $350 to $360 per ton [17] Q&A Session Summary Question: Potash pricing expectations for Q2 - Management explained that the pricing differential is due to higher fee contracts in Q4 2024, resulting in a projected differential of about $43 per ton for Q2 [20][22] Question: Production volume expectations for the rest of the year - Management indicated that production forecasts are based on recent projects and the Wendover facility, with confidence in their projections despite natural variability [24][26] Question: Cost outlook for Trio - Management noted that while improvements in cost per ton are expected, there will be a slight uptick in costs due to general price increases and lower production in the second half of the year [28][29] Question: Assessment of company performance and focus areas - Management highlighted the importance of maintaining consistency and predictability in operations, with a focus on controlling costs and improving volume [31][34] Question: Cash flow generation and capital allocation - Management confirmed that Q2 is typically the best cash flow generation quarter, with discussions on capital allocation becoming more relevant as performance improves [39][42]

Financial Data and Key Metrics Changes - In Q1 2025, the company generated adjusted EBITDA of $16.6 million and adjusted net income of $4.6 million, compared to adjusted EBITDA of $7.7 million and an adjusted net loss of $3.1 million in the prior year, marking significant improvements in profitability [5][6] - Cost of Goods Sold (COGS) per ton for potash improved by 17% from the 2023 baseline and by 25% from the peak in Q4 2023, coming in at $313 per ton [6] - COGS per ton for Trio was $235, representing a 22% improvement compared to the previous year's first quarter [6] Business Line Data and Key Metrics Changes - Potash production totaled 93,000 tons in Q1 2025, an increase of 6,000 tons year-over-year, with a 40% increase in tons sold despite a 20% decrease in average net realized pricing [11] - Trio achieved a quarterly sales record of 110,000 tons, with an average pricing increase to $345 per ton [7] - The Oilfield Solutions segment generated revenue of $4.4 million with a gross margin of approximately 38% [13] Market Data and Key Metrics Changes - Potash prices increased by $55 per ton and Trio prices by $40 per ton during Q1 2025 due to strong demand and tight supplies [8] - Global potash consumption is returning to a trend line growth of approximately 2% per year, with a balanced outlook heading into the second half of 2025 [9] - U.S. agriculture exports for corn are up by about 25% year-to-date, supporting forecasts of low crop inventories [9] Company Strategy and Development Direction - The company is focused on revitalizing core assets and improving unit economics, which has positively impacted production and profitability [6][10] - The strategy includes maintaining consistent production levels and cost structures to ensure resilience and predictability in operations [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potash and agriculture markets, citing beneficial tariff treatments and a weakening dollar supporting U.S. agriculture exports [9][10] - The company anticipates continued improvements in cash flow and reduced COGS per ton, despite broader market uncertainties [16] Other Important Information - The company expects potash production for 2025 to be between 285,000 to 295,000 tons, with Trio production projected at 235,000 to 245,000 tons [12][13] - Capital expenditures for 2025 are guided at $36 million to $42 million, primarily for sustaining capital [15] Q&A Session Summary Question: Potash pricing expectations for Q2 - Management explained that Q2 pricing is projected at around $355 per ton, reflecting a differential of about $43 per ton compared to Q1 pricing, capturing most of the price uptick [20][21] Question: Production volume expectations for the rest of the year - Management indicated that production forecasts are based on recent projects and the Wendover facility, with a focus on maintaining production levels despite potential variability [23] Question: Outlook for Trio cost improvements - Management noted that while cost improvements are expected to moderate, the current cost structure reflects significant operational efficiencies achieved [27][28] Question: Assessment of company performance and focus areas - Management highlighted the importance of maintaining focus on core assets and consistent performance to drive improvements over the next one to two years [30][32] Question: Cash flow generation and capital allocation - Management confirmed that Q2 is typically the best cash flow generation quarter, with discussions on capital allocation becoming more relevant as performance improves [42]

[First Quarter 2025 Financial & Operational Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20%26%20Operational%20Highlights) Intrepid reported strong first quarter 2025 results, driven by record sales volumes, improved unit economics, and robust Trio® pricing, leading to significant financial improvements [Overall Performance](index=1&type=section&id=Overall%20Performance) Intrepid reported strong first quarter 2025 results, driven by the highest quarterly sales volumes since 2016, improved unit economics, and robust Trio® pricing, leading to a significant year-over-year increase in total sales, a shift from a net loss to net income, and a doubling of adjusted EBITDA - The CEO highlighted that combined sales volumes for potash and Trio® reached **213 thousand tons**, the highest quarterly volume since **Q1 2016** Consolidated adjusted EBITDA of **$16.6 million** was roughly **double** the prior year's figure[4](index=4&type=chunk) - Key drivers for the strong quarter included improving potash and Trio® unit economics, strong Trio® pricing, and high sales volumes supported by strong demand and improving agricultural commodity prices[3](index=3&type=chunk)[4](index=4&type=chunk) Q1 2025 Key Financial & Operational Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Sales ($) | $97.8 million | $79.3 million | | Gross Margin ($) | $14.6 million | $6.4 million | | Net Income (Loss) ($) | $4.6 million | $(3.1) million | | Net Income (Loss) per Diluted Share ($) | $0.35 | $(0.24) | | Adjusted EBITDA ($) | $16.6 million | $7.7 million | | Potash Sales Volumes (thousand tons) | 103 thousand tons | 74 thousand tons | | Trio® Sales Volumes (thousand tons) | 110 thousand tons | 91 thousand tons | [Liquidity and Capital Expenditures](index=2&type=section&id=Liquidity%20and%20Capital%20Expenditures) The company maintains a strong, debt-free balance sheet with $66 million in cash and full availability on its $150 million revolving credit facility Capital expenditures for Q1 2025 were $8.3 million, and the full-year guidance of $36 to $42 million remains unchanged - As of May 2, 2025, the company had **$66 million** in cash and cash equivalents with no outstanding borrowings on its **$150 million** revolving credit facility[7](index=7&type=chunk) - Capital expenditures totaled **$8.3 million** in Q1 2025 The company expects full-year 2025 capital expenditures to be between **$36 million** and **$42 million**, primarily for sustaining capital[8](index=8&type=chunk) [Project & Operational Updates](index=2&type=section&id=Project%20%26%20Operational%20Updates) Intrepid is advancing its HB Solar Solution Mine project in New Mexico, focusing on the AMAX Cavern The company anticipates completing the permitting process for a sample well in Q2 2025, with an estimated capital investment of $4.5 million and commissioning expected in July - The company is working to obtain permits to drill a sample well into the HB AMAX Cavern, a key expansion area for the HB Solar Solution Mine[9](index=9&type=chunk) - The permitting process is expected to finish in **Q2 2025**, with construction and commissioning complete in **July** The estimated capital investment is approximately **$4.5 million**[9](index=9&type=chunk) [Segment Highlights](index=3&type=section&id=Segment%20Highlights) This section details the performance of Intrepid's Potash, Trio®, and Oilfield Solutions segments, highlighting sales, gross margins, and key operational drivers for each [Potash Segment](index=3&type=section&id=Potash) The Potash segment's sales increased by $6.0 million year-over-year, driven by a 39% rise in sales volume that more than compensated for a 21% decline in the average net realized sales price Despite higher production and a 10% improvement in cost of goods sold per ton, the segment's gross margin decreased to $2.5 million from $5.6 million due to the lower pricing environment - The increase in sales was primarily driven by a **39% increase** in sales volumes, which was offset by a **21% decrease** in the average net realized sales price per ton[10](index=10&type=chunk) - Cost of goods sold (COGS) per ton improved by **10%** to **$313** in Q1 2025 from **$349** in Q1 2024, mainly due to increased production[12](index=12&type=chunk) Potash Segment Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales ($) | $43.6 million | $37.6 million | | Gross Margin ($) | $2.5 million | $5.6 million | | Sales Volumes (thousand tons) | 103 thousand tons | 74 thousand tons | | Production Volumes (thousand tons) | 93 thousand tons | 87 thousand tons | | Avg. Net Realized Sales Price ($ per ton) | $312 per ton | $395 per ton | [Trio® Segment](index=4&type=section&id=Trio%C2%AE) The Trio® segment delivered exceptional results, with sales increasing 37% to $49.8 million This growth was fueled by a 21% increase in sales volume and a 15% rise in the average net realized sales price The segment's profitability saw a dramatic turnaround, generating a gross margin of $10.4 million compared to a deficit of $1.1 million in the prior-year quarter, aided by a 22% improvement in COGS per ton - Trio® sales increased due to a **21% increase** in tons sold and a **15% increase** in the average net realized sales price, driven by strong in-season demand and a tight domestic sulfate market[14](index=14&type=chunk) - The segment's cost of goods sold (COGS) per ton improved by **22%**, falling to **$235** in Q1 2025 from **$300** in Q1 2024[14](index=14&type=chunk) Trio® Segment Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales ($) | $49.8 million | $36.5 million | | Gross Margin (Deficit) ($) | $10.4 million | $(1.1) million | | Sales Volume (thousand tons) | 110 thousand tons | 91 thousand tons | | Production Volume (thousand tons) | 63 thousand tons | 54 thousand tons | | Avg. Net Realized Sales Price ($ per ton) | $345 per ton | $300 per ton | [Oilfield Solutions Segment](index=4&type=section&id=Oilfield%20Solutions) The Oilfield Solutions segment reported a decline in performance, with sales decreasing by $0.9 million to $4.4 million and gross margin falling by $0.3 million to $1.7 million The downturn was primarily caused by a reduction in water sales due to decreased oilfield activity in the Intrepid South area - Segment sales decreased by **$0.9 million** compared to the prior year, primarily due to a **$0.7 million** decrease in water sales[15](index=15&type=chunk) - The decrease in water sales was attributed to reduced oilfield activity on and around the Intrepid South property during the first quarter of 2025[16](index=16&type=chunk) Oilfield Solutions Segment Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales ($) | $4.4 million | $5.3 million | | Gross Margin ($) | $1.7 million | $2.0 million | [Financial Statements](index=9&type=section&id=Financial%20Statements) This section presents the company's condensed consolidated statements of operations, balance sheets, and cash flows, detailing financial performance and position for the period [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company's statement of operations reflects a significant improvement, transitioning from a net loss of $3.1 million in Q1 2024 to a net income of $4.6 million in Q1 2025 This turnaround was driven by a 23% increase in sales to $97.8 million and a more than doubling of the gross margin to $14.6 million Consolidated Statements of Operations Highlights | Line Item | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Sales | $97,760 | $79,287 | | Gross Margin | $14,602 | $6,434 | | Operating Income (Loss) | $4,998 | $(4,306) | | Net Income (Loss) | $4,606 | $(3,130) | | Diluted Income (Loss) Per Share | $0.35 | $(0.24) | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Intrepid's balance sheet showed total assets of $601.3 million and total liabilities of $121.8 million, resulting in total stockholders' equity of $479.5 million Compared to year-end 2024, cash and cash equivalents increased, while inventory levels decreased Consolidated Balance Sheet Highlights | Line Item | March 31, 2025 (in thousands) | Dec 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $45,668 | $41,309 | | Total current assets | $198,921 | $183,763 | | Total Assets | $601,276 | $594,520 | | Total current liabilities | $38,497 | $38,003 | | Total Liabilities | $121,823 | $120,128 | | Total Stockholders' Equity | $479,453 | $474,392 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter of 2025, net cash provided by operating activities was $10.9 million, a significant decrease from $41.5 million in the prior-year period, which had benefited from a one-time $45 million payment Net cash used in investing activities was $5.7 million, primarily for capital expenditures - The significant year-over-year decrease in cash flow from operations is primarily because the Q1 2024 figure included a **$45 million** payment related to the Cooperative Development Agreement with XTO[6](index=6&type=chunk)[27](index=27&type=chunk) Consolidated Statements of Cash Flows Highlights | Line Item | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $10,917 | $41,532 | | Net cash used in investing activities | $(5,668) | $(6,577) | | Net cash used in financing activities | $(887) | $(4,957) | | Net Change in Cash | $4,362 | $29,998 | [Non-GAAP Reconciliations & Supplemental Data](index=12&type=section&id=Non-GAAP%20Reconciliations%20%26%20Supplemental%20Data) This section provides reconciliations of GAAP to non-GAAP financial measures, including Adjusted Net Income and Adjusted EBITDA, along with disaggregated revenue and segment data [Reconciliation to Adjusted Net Income (Loss)](index=13&type=section&id=Reconciliation%20to%20Adjusted%20Net%20Income%20%28Loss%29) This section reconciles GAAP Net Income to the non-GAAP measure of Adjusted Net Income After adjusting for items such as asset impairment and gains on asset sales, Adjusted Net Income for Q1 2025 was $5.1 million ($0.39 per share), a significant improvement from an Adjusted Net Loss of $1.9 million ($(0.14) per share) in Q1 2024 Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) | Line Item (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income (Loss) | $4,606 | $(3,130) | | Adjustments | $480 | $1,205 | | **Adjusted Net Income (Loss)** | **$5,086** | **$(1,925)** | [Reconciliation to Adjusted EBITDA](index=14&type=section&id=Reconciliation%20to%20Adjusted%20EBITDA) The reconciliation to Adjusted EBITDA shows a substantial increase in operating performance Adjusted EBITDA for Q1 2025 was $16.6 million, more than double the $7.7 million reported in Q1 2024 This non-GAAP measure adjusts net income for interest, taxes, depreciation, amortization, and other non-core operational items Reconciliation of Net Income (Loss) to Adjusted EBITDA | Line Item (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income (Loss) | $4,606 | $(3,130) | | Total adjustments | $12,002 | $10,859 | | **Adjusted EBITDA** | **$16,608** | **$7,729** | [Reconciliation to Average Net Realized Sales Price per Ton](index=15&type=section&id=Reconciliation%20to%20Average%20Net%20Realized%20Sales%20Price%20per%20Ton) This section provides the calculation for the non-GAAP metric of average net realized sales price per ton, which adjusts segment sales for byproduct sales and freight costs For Q1 2025, the average net realized sales price was $312 per ton for Potash and $345 per ton for Trio® Average Net Realized Sales Price per Ton Calculation | Segment | Q1 2025 ($ per ton) | Q1 2024 ($ per ton) | | :--- | :--- | :--- | | Potash | $312 | $395 | | Trio® | $345 | $300 | [Disaggregation of Revenue and Segment Data](index=16&type=section&id=Disaggregation%20of%20Revenue%20and%20Segment%20Data) This supplemental data offers a detailed breakdown of revenue by product type within each operating segment and shows the calculation of gross margin for each segment For Q1 2025, Trio® was the largest revenue contributor at $49.8 million, followed by Potash at $43.6 million Q1 2025 Revenue by Segment (in thousands) | Segment | Total Revenue (in thousands) | | :--- | :--- | | Potash Segment | $43,577 | | Trio® Segment | $49,842 | | Oilfield Solutions Segment | $4,400 | | **Total** | **$97,760** | Q1 2025 Gross Margin by Segment (in thousands) | Segment | Gross Margin (in thousands) | | :--- | :--- | | Potash | $2,503 | | Trio® | $10,434 | | Oilfield Solutions | $1,665 | | **Consolidated** | **$14,602** |

Market Overview - The three major U.S. indexes (Nasdaq Composite, S&P 500, Dow Jones Industrial Average) ended the past trading week positively, with gains of 3.52%, 2.86%, and 3.41% respectively [1] - Despite a gloomy economic outlook due to shifts in U.S. foreign tariff policy, weak economic data, and rising geopolitical tensions, investors are optimistic about strong earnings results and potential reductions in import duties by the Trump administration [1] Economic Indicators - The U.S. GDP contracted for the first time in three years, growing at an annualized rate of 0.3% in Q1 2025, down from 2.4% in the previous quarter [2] - Consumer sentiment index dropped to 52.2 in April from 57.0 in March, marking the lowest level since July 2022 [2] - The consumer confidence index fell to 86 in April from 92.9 in March [2] - The Personal Consumption Expenditure (PCE) index remained flat in March, while personal consumption and personal income grew by 0.7% and 0.5% respectively, exceeding expectations [2] Manufacturing and Labor Market - The manufacturing PMI for April contracted to 48.7% from 49% in March, indicating contraction in manufacturing activities [3] - Nonfarm payrolls increased by 177,000 in April, exceeding analyst expectations, while the unemployment rate remained unchanged at 4.2% [3] Stock Performance and Recommendations - ADMA Biologics, Inc. shares gained 48.6% since being upgraded to Zacks Rank 2 (Buy) on March 4, outperforming the S&P 500's 3% decrease [4] - Intrepid Potash, Inc. shares returned 28.9% since its upgrade to Zacks Rank 2 on March 6, also outperforming the S&P 500 [5] - The Zacks Model Portfolio of Rank 1 stocks has outperformed the S&P 500 index by almost 13 percentage points since 1988, with an annualized average return of +23.9% [7] Focus List and Portfolios - Constellation Brands, Inc. gained 8.2% over the past 12 weeks, while Cheniere Energy, Inc. returned 2.3% during the same period [11] - The Zacks Focus List portfolio returned -2.96% in Q1 2025, compared to -4.30% for the S&P 500 index [12] - The Zacks Earnings Certain Admiral Portfolio (ECAP) returned +3.20% in Q1 2025, outperforming the S&P 500 index's -4.30% decline [16] Dividend and Defensive Stocks - Coca-Cola Company returned 13.5% over the past 12 weeks, while Quest Diagnostics Incorporated increased by 7.9% [18] - The Zacks Earnings Certain Dividend Portfolio (ECDP) returned +5.74% in Q1 2025, outperforming the S&P 500 index's -2.41% pullback [19] Top 10 Stocks Performance - Primo Brands Corporation increased by 7.4% year-to-date, compared to the S&P 500 index's 3.3% decrease [22] - The Top 10 portfolio returned +62.98% in 2024, significantly outperforming the S&P 500 index's +25.04% return [22][23]

Company Overview - Intrepid Potash (IPI) currently holds a Momentum Style Score of B, indicating a favorable position in momentum investing [2][11] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3][11] Price Performance - IPI shares have increased by 14.34% over the past week, outperforming the Zacks Fertilizers industry, which rose by 5.63% during the same period [5] - Over the past month, IPI's price change is 13.58%, compared to the industry's 8.07% [5] - In the last quarter, IPI shares have gained 25.15%, and over the past year, they have increased by 66.7%, while the S&P 500 has moved -7.64% and 10.16%, respectively [6] Trading Volume - The average 20-day trading volume for IPI is 194,374 shares, which serves as a baseline for price-to-volume analysis [7] Earnings Estimates - In the past two months, one earnings estimate for IPI has moved higher, while none have moved lower, resulting in an increase in the consensus estimate from -$0.45 to -$0.16 [9] - For the next fiscal year, one estimate has also moved upwards with no downward revisions [9] Conclusion - Considering the positive price trends and earnings outlook, IPI is positioned as a promising momentum pick, making it a stock to watch for potential near-term gains [11]

Core Viewpoint - Intrepid Potash (IPI) is identified as a strong momentum stock with a Momentum Style Score of A and a Zacks Rank of 2 (Buy), indicating potential for near-term gains [3][4][12]. Company Performance - IPI shares have increased by 1.41% over the past week, contrasting with a decline of 2.08% in the Zacks Fertilizers industry during the same period [6]. - Over the past month, IPI's price change is 19.42%, significantly outperforming the industry's 0.14% [6]. - In the last quarter, IPI shares rose by 30.27%, and over the past year, they gained 40.76%, while the S&P 500 saw movements of -4.25% and 8.35%, respectively [7]. Trading Volume - The average 20-day trading volume for IPI is 213,400 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the last two months, one earnings estimate for IPI has increased, while none have decreased, leading to a consensus estimate improvement from -$0.45 to -$0.16 [10]. - For the next fiscal year, one estimate has also moved upwards with no downward revisions [10].

Group 1 - The article discusses the performance of Intrepid Potash, Inc. (NYSE: IPI) stock, which was previously rated as a "Buy" but has not performed well due to the ongoing consequences of the Russia-Ukraine war affecting the fertilizer market [1] - Daniel Sereda, a chief investment analyst, emphasizes the importance of filtering vast amounts of information to identify critical investment ideas, indicating a focus on high-quality analysis [1] - The investing group Beyond the Wall Investing provides access to information prioritized by institutional market participants, suggesting a competitive edge in investment analysis [1] Group 2 - The article does not provide any specific financial data or performance metrics related to Intrepid Potash or the fertilizer industry [2]