Table of Contents top UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________ FORM 10-Q _______________________________________________________ ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended September 30, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______ to ______ Commission Fil ...

Intrepid Potash, Inc. (NYSE:IPI) Q2 2022 Earnings Conference Call August 5, 2022 12:00 PM ET Corporate Participants Evan Mapes - Investor Relations Bob Jornayvaz - Co-Founder, Executive Chairman and Chief Executive Officer Matt Preston - Chief Financial Officer Conference Call Participants Alex Chen - BMO Capital Markets Will Tang - Morgan Stanley Josh Spector - UBS Operator Thank you for standing by. This is the conference operator. Welcome to the Intrepid Potash, Inc. Second Quarter 2022 Results Conferenc ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________ FORM 10-Q _______________________________________________________ ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended June 30, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______ to ______ Commission File Number: ...

Financial Data and Key Metrics Changes - In Q1 2022, Intrepid Potash reported revenue of approximately $104 million, a 46% increase compared to Q1 2021, driven by higher net realized sales prices for potash and Trio [18] - The average net realized price for potash was $703 per ton, and for Trio, it was $469 per ton, representing increases of approximately 150% and 100% respectively compared to Q1 2021 [16] - Adjusted EBITDA for the quarter was approximately $50 million, with net income totaling approximately $31 million, resulting in diluted earnings per share of $2.31, marking the most profitable quarter since Q3 2012 [18][29] Business Line Data and Key Metrics Changes - Potash segment sales totaled just over $56 million, a 30% increase year-over-year, with a gross margin of $29 million [17] - Trio segment sales reached $41 million, reflecting a 73% increase compared to the prior year quarter, with a gross margin of $16.1 million [17] Market Data and Key Metrics Changes - Global potash supply is expected to remain tight throughout 2022 due to a severe supply shock impacting 30% to 40% of global potash production [22] - Brazilian potash prices are currently just under $1,200 per metric ton, while NOLA potash prices in the U.S. are about $800 per short ton, indicating a strong international market compared to the domestic market [23] Company Strategy and Development Direction - The company plans to operate extra production shifts and has ordered two new continuous miners to increase production at the East mine [25] - Intrepid is preparing to drill another cavern at Moab to enhance production and expects upgraded wells at the Wendover facility to add production volume as early as spring 2023 [27] Management's Comments on Operating Environment and Future Outlook - Management highlighted that high commodity prices are expected to persist, supporting strong margins for farmers and consequently demand for fertilizers [14][24] - The company anticipates that if fertilizer prices remain elevated, it will continue to benefit, with a focus on improving per ton economics and increasing production [24][28] Other Important Information - Cash provided by operations was $34 million, with cash used in investing activities at $7.7 million, leading to a balance sheet improvement of approximately $44 million from December 31 [19] - The company expects capital spending of between $50 million to $60 million for the full year 2022, with plans to accelerate capital expenditures on key projects [35] Q&A Session Summary Question: Allocation of cash and buyback pace - Management indicated that a formal buyback policy is being developed, with no specific pace set yet due to market conditions [39] Question: Q3 potash order book and price expectations - No orders for Q3 have been taken yet, but prices are expected to remain stable, similar to the first half of the year [40] Question: Summer fill program and inventory risk - Management does not foresee a need for a traditional fill program due to strong demand and limited supply [44] Question: Cost levels and return to 2019/2020 pricing - Management expects costs to decrease significantly as production ramps up, aiming to return to normalized levels by Q4 2022 and Q1 2023 [47] Question: Production outlook based on ongoing projects - Management anticipates production increases from ongoing projects, particularly at the HB facility and Wendover, but specific numbers were not provided [51] Question: Long-term outlook for potash and food supply concerns - Management believes that the current supply situation will persist for at least 18 to 24 months, with strong farmer margins supporting continued demand for fertilizers [56]

Sales Performance - Potash average net realized sales price per ton increased to $703 for the three months ended March 31, 2022, compared to $282 for the same period in 2021, reflecting significant price increases [74]. - Total sales for Q1 2022 increased by $32.9 million, or 46%, compared to Q1 2021, driven by a 37% increase in potash sales and a 76% increase in Trio sales [85]. - Potash sales increased by $13.8 million, or 37%, in Q1 2022, with an average net realized sales price per ton rising 149%, despite a 41% decrease in tons sold [85]. - Trio average net realized sales price per ton increased 101% in Q1 2022 compared to Q1 2021, with a price increase of $35 per ton announced in February 2022 [76]. - Trio sales increased by $17.1 million, or 76%, in Q1 2022, with a 3% increase in tons sold [86]. - Potash segment sales increased by 30% in Q1 2022 compared to Q1 2021, primarily due to higher potash sales [97]. - The average net realized sales price per ton for potash in Q1 2022 was $703, compared to $282 in Q1 2021, reflecting a significant increase of 148% [134]. - The total segment sales for potash in Q1 2022 were $56,442,000, up from $43,578,000 in Q1 2021, representing a year-over-year increase of 30% [134]. - The average net realized sales price per ton for Trio in Q1 2022 was $469, compared to $233 in Q1 2021, indicating an increase of 101% [134]. - The company reported total segment sales for Trio in Q1 2022 of $41,052,000, compared to $23,694,000 in Q1 2021, marking a year-over-year increase of 73% [134]. Production and Operations - Sales volume decreased by 41% in the first three months of 2022 compared to the prior year period due to reduced inventory levels and production during the 2021 summer evaporation season [73]. - The company operates three segments: potash, Trio, and oilfield solutions, with byproduct sales accounted for in the respective segments [62]. - The company’s potash production is conducted entirely in the continental United States, utilizing environmentally friendly solar solution mining techniques [67]. - The company is actively developing water treatment and recycling operations in the Delaware Basin to reduce produced water injection into disposal wells [67]. - The company has permitted and partially adjudicated water rights in New Mexico, primarily selling water to support oil and gas development in the Permian Basin [61]. Financial Performance - Gross margin for Q1 2022 was $47.2 million, compared to $9.1 million in Q1 2021, reflecting improved sales performance [90]. - Net income for Q1 2022 was $31.4 million, significantly up from $2.5 million in Q1 2021 [94]. - Cash on hand as of March 31, 2022, was $60.1 million, up from $36.5 million at the end of 2021 [123]. - Net cash provided by operating activities increased to $34.1 million in Q1 2022, a $15.0 million increase from Q1 2021 [125]. - Capital investments for 2022 are expected to be between $50 million and $60 million, with $25 million to $35 million allocated for sustaining capital projects [122]. - As of March 31, 2022, the company had no borrowings outstanding under its revolving credit facility and was in compliance with all applicable covenants [127]. - The company approved a $35 million share repurchase program in February 2022, but as of April 30, 2022, no shares have been repurchased [129]. Market and Regulatory Environment - Belarusian potash sanctions, effective April 2022, are expected to impact U.S. potash supply, as Belarus historically supplied approximately 7% of annual U.S. potash consumption [74]. - The company’s financial results are expected to be impacted by ongoing trends related to the COVID-19 pandemic, including labor and transportation logistics [72]. Safety and Compliance - The company emphasizes a commitment to safety, conducting monthly safety audits across all operations to enhance workplace safety [68]. - There have been no significant changes to the company's critical accounting policies since December 31, 2021 [130]. - The company continues to use non-GAAP financial measures, such as average net realized sales price per ton, to provide useful information for investors [132]. - The company has not reported any significant changes to its market risk exposure since December 31, 2021 [135]. Water Management - The company is negotiating water transfer agreements and exploring the use of treated produced water for its HB solar solution mine, with pilot tests expected in the second half of 2023 [81].

Financial Data and Key Metrics Changes - Adjusted net income for Q4 2021 was $8 million, bringing full-year adjusted net income to $21.8 million, a $40 million increase compared to 2020 [9] - Full-year 2021 adjusted EBITDA increased to $67.6 million, more than 3 times the 2020 EBITDA of approximately $21 million [29] - The company recorded approximately $7 million of income tax expense for the full-year 2021, all incurred in Q4 [31] Business Segment Data and Key Metrics Changes - The potash segment generated $12.5 million in gross margin for Q4 2021 and $35.8 million for the full year, with realized pricing for potash increasing to $504 per ton, a $120 increase over Q3 2021 [11] - The Trio segment also saw strong results, with posted prices increasing by $30 to $40 per ton in December 2021, and a further $35 per ton price increase announced recently [13] - Sales and gross margin in the oilfield segment increased over Q3 2021, driven by rising oilfield activity and revenue from oilfield products and services [15] Market Data and Key Metrics Changes - The potash market outlook is extremely positive, with commodity pricing and crop inventory levels supportive, alongside record farmer incomes globally [27] - The company expects first quarter 2022 realized price per ton for potash to increase between $680 and $690, an increase of approximately $180 per ton over Q4 2021 [12] - The company anticipates first half 2022 potash sales of approximately 130,000 to 140,000 tons, split evenly between the two quarters [34] Company Strategy and Development Direction - The company announced a $35 million share repurchase program, indicating a strategy to return value to shareholders while continuing to invest across business segments [17][18] - A joint feasibility study with the New Mexico Produced Water Consortium aims to evaluate the beneficial reuse of produced water from oil and gas production, aligning with the company's ESG goals [20][26] - The company is focused on increasing production capacity through various initiatives, including expanding operations at existing mines and exploring new cavern designs [52][54] Management's Comments on Operating Environment and Future Outlook - Management highlighted the impact of declining inventories, strong demand, and geopolitical factors on rising fertilizer prices, contributing to improved consolidated results [8] - The company is positioned to deliver significant growth in bottom line results and operating cash flow in 2022, with expectations of continued price increases in the fertilizer market [27] - Management expressed confidence in the ability to navigate logistical challenges and maintain sales volumes despite production shortfalls [36] Other Important Information - The company released approximately $216 million of the valuation allowance against deferred tax assets in Q4 2021, reflecting an improved outlook [30] - The company has a solid balance sheet with $36 million in cash at year-end 2021, which has since increased to over $60 million [16] Q&A Session Summary Question: Capital allocation and buyback pace - Management indicated that cash generated from operations will be used for share buybacks when appropriate stock levels are reached, without incurring debt [45][46] Question: Potash production and capacity options - Management discussed plans to increase potash production through various initiatives, including expanding the HB Solar Solution Mine and exploring new cavern designs [52][54] Question: Oilfield activity and labor market - Management noted a quick pickup in oilfield activity due to higher oil prices and mentioned successful hiring efforts to support increased capacity [22][24] Question: Pricing and order book for potash - Management expects stable pricing for potash throughout the year, with a tight domestic market allowing for successful price increases [71] Question: Trio segment outlook - Management confirmed strong demand for Trio products, with all premium and granular products currently on allocation due to high demand [75]

Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2021 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 001-34025 https://reportify- 1252068037.cos.ap- beijing.myqcloud.com/med INTREPID POTASH, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 26-1501877 (State or other jurisdicti ...

Financial Data and Key Metrics Changes - The company recorded a net income of $4 million and adjusted EBITDA of $13.1 million for Q3 2021, benefiting from strong sales performance in the fertilizer segments due to rising prices compared to the prior year [6][18] - Cash from operations for Q3 was $8 million, bringing the year-to-date total to nearly $60 million [7] - The company ended the quarter with $26 million in cash and no outstanding debt on its revolving credit facility [7] Business Segment Data and Key Metrics Changes - The Potash segment generated a gross margin of $4.5 million in Q3, with higher net realized sales prices driving improvements [19] - The Trio segment reported a gross margin of $6.8 million in Q3, attributed to higher average net realized pricing and consistent cost of goods sold [21] - Oilfield Solutions revenue increased to $6.7 million in Q3, driven by improved oilfield activity and frac volumes [23] Market Data and Key Metrics Changes - Potash prices increased by $80 per ton in August, with expectations for an average net realized sales price of approximately $495 per ton in Q4 [8][20] - Trio products saw a $50 per ton price increase in August, with an expected average net realized sales price of approximately $370 per ton in Q4 [11][22] Company Strategy and Development Direction - The company plans to restart HB production in March to increase potash production during the spring season, aiming to capture strong pricing [10] - An additional shift at the East plant is expected to increase production by 50,000 tons over the next 12 months, with potential for another 50,000 tons depending on market conditions [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that the Carlsbad region experienced more than double the average rainfall, impacting potash production and leading to higher costs [9][19] - The company remains optimistic about cash flow from operations increasing in the coming quarters due to higher-priced fertilizer sales [24] Other Important Information - The company spent $12.4 million on capital investments in the first nine months of 2021, with a full-year estimate of $18 million to $23 million [25] - The East mine received the National Mining Association's 2020 Sentinels of Safety Award, highlighting the company's commitment to safety [16] Q&A Session Summary Question: Clarification on potash production in HB - Management explained that late-season rain caused potash to re-dissolve, delaying production but aiming for a double harvest to capture the potash [30][35] Question: Potash price performance compared to Trio - Management indicated that the pricing increase for potash is expected to be stronger than for Trio due to earlier commitments and market conditions [36][40] Question: Incremental production from the additional shift at the East mine - Management confirmed that the East mine's capacity is about 450,000 tons, with an additional 50,000 tons expected to flow through sales volumes in the next 12 months [50][51] Question: Impact of rain on oilfield sales - Management clarified that rain does not impact the availability of byproduct water for oilfield sales [61] Question: Outlook for new water leasing activity - Management provided updates on water well drilling and ongoing legal processes, indicating a positive outlook for water availability [62][65]

Product and Sales Performance - Potash sales volume increased by 13% in the first nine months of 2021 compared to the prior year, with potash prices driving profitability, comprising 49% of total sales[98]. - The average net realized sales price per ton of potash rose to $381 in Q3 2021, a 60% increase from $238 in Q3 2020, while Trio's average net realized sales price per ton increased by 78%[99][111]. - Total sales for Q3 2021 reached $59.2 million, a 55% increase from $38.1 million in Q3 2020, driven by strong demand in agricultural markets[111]. - Trio sales increased by $8.1 million, or 70%, in Q3 2021, with a 15% increase in tons sold compared to Q3 2020[111]. - Total water sales in Q3 2021 were $6.0 million, up from $3.6 million in Q3 2020, reflecting increased oilfield activity[102][111]. - Byproduct sales for Q3 2021 were $6.4 million, compared to $5.1 million in Q3 2020, driven by an improving economy and increased magnesium chloride availability[104][112]. - Total sales for the nine months ended September 30, 2021, increased by $50.0 million or 34% compared to the same period in 2020[120]. - Potash sales increased by $27.3 million or 39% for the nine months ended September 30, 2021, with an average net realized sales price per ton rising by 27%[120]. - Trio sales rose by $16.9 million or 33% during the first nine months of 2021, with an average net realized sales price per ton increasing by 38%[121]. Financial Performance - Net income for Q3 2021 was $4.0 million, a turnaround from a net loss of $10.2 million in Q3 2020[119]. - Net income for the nine months ended September 30, 2021, was $26.0 million, compared to a net loss of $26.4 million for the same period in 2020[133]. - The company recognized a gain of $10.1 million related to the forgiveness of a $10 million PPP loan in June 2021[130]. - Gross margin for Q3 2021 was $10.6 million, a significant improvement from a negative gross margin of $0.3 million in Q3 2020[116]. - Selling and administrative expenses decreased by 13% in Q3 2021 compared to Q3 2020, primarily due to reduced legal expenses[117]. - The total cost of goods sold increased by 29% in Q3 2021 compared to Q3 2020, with potash costs rising by 23% despite a 6% decrease in tons sold[113]. - Cost of goods sold increased by $19.7 million or 19% during the first nine months of 2021, with potash costs rising by 23%[125]. Operational Developments - The company is the only U.S. producer of muriate of potash, with production from three solution mining facilities in New Mexico and Utah[80]. - The company has water rights in New Mexico, supporting mining operations and selling excess water primarily for oil and gas development in the Permian Basin[80]. - The company has actively developed water treatment and recycling operations in the Delaware Basin to reduce produced water usage in oil and gas operations[87]. - The company is diversifying its products and services, including negotiating water transfer agreements and expanding into oil and gas midstream activities[106][108]. - The company expects to produce approximately 70,000 tons of potash at its HB facility during the current harvest period, ending in mid-January 2022[101]. - The company plans to restart production in mid-March 2022 to meet historical demand during the spring season[101]. Market and Economic Conditions - Economic activity has improved in 2021, with most cities and states reducing restrictions compared to summer 2020, but future impacts of COVID-19 remain uncertain[95]. - The company’s operations have been impacted by the COVID-19 pandemic, particularly in the oilfield solutions segment, with a decrease in demand for oil[95]. - Total water sales increased by 42% in the second and third quarters of 2021 compared to the same periods in 2020, reflecting an economic rebound from the COVID-19 pandemic[158]. - The company expects continued improvement in oilfield solutions water sales during the fourth quarter of 2021[156]. Environmental and Safety Initiatives - The company is committed to environmental, social, and governance (ESG) initiatives, aiming to create long-term value for investors[82]. - The company has implemented safety audits across all locations to enhance operational safety and address potential hazards[89]. - The company has donated nearly 7 million tons of salt to the Bonneville Salt Flats since 2005 to help preserve the environment[87]. Liquidity and Capital Management - As of September 30, 2021, the company had cash on hand of $25.6 million, up from $19.5 million at December 31, 2020[170]. - The company anticipates sufficient liquidity to meet its obligations for the next twelve months, supported by cash on hand and expected cash generated from operations[172]. - The company expects to make capital investments in 2021 of $18 million to $23 million, with approximately $15 million allocated to sustaining capital projects[169]. - As of September 30, 2021, the company had no outstanding long-term debt, following the repayment of $15 million in Series B Senior Notes[181]. - Cash provided by operating activities was $59.4 million, an increase of $40.9 million compared to the same period in 2020 due to increased potash and Trio sales[174].

Financial Data and Key Metrics Changes - The company recorded an adjusted net income of $7.4 million and adjusted EBITDA of $16.9 million for Q2 2021, showing significant improvements compared to the prior year and Q1 2021 [7][8] - Cash flow from operations was $32.3 million for Q2 2021 and $51.4 million for the first half of 2021, already exceeding the full-year cash flow from operations for 2020 [8] - The company ended the quarter with $55 million in cash and approximately $30 million outstanding on its revolving credit facility [9][24] Business Line Data and Key Metrics Changes - The Potash segment generated $10.1 million in gross margin in Q2 2021, driven by higher net realized sales prices and increased volumes [19] - The Trio segment recorded a gross margin of $3.2 million, with first half sales volume exceeding the prior year by 5,000 tons [21] - Total water sales were $2.8 million, similar to the prior year, as the company managed its South Ranch to meet higher margin demand later in the year [23] Market Data and Key Metrics Changes - Potash pricing has improved significantly, with spot agricultural sales currently at $250 per ton above 2020 summer fuel price levels [10] - The expected average net realized sales price for potash in Q3 is projected to be between $355 and $365 per ton, with additional upside into Q4 2021 [20] - The company noted solid agricultural economics across various crops, which supports firm potash pricing [11] Company Strategy and Development Direction - The company is pivoting towards ESG-friendly full-cycle water management systems and is investing in additional recycling equipment [15] - Plans to mobilize a 70,000 barrels per day recycling unit in the coming weeks, with potential to increase volumes to over 200,000 barrels per day [16] - The addition of an energy board member signals a strategic focus on advancing the water and oilfield strategy [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand for fertilizers continuing into the second half of the year, supported by increased farm income levels [12] - The company anticipates significant growth in oilfield solutions revenue in the second half of the year, aligning with pre-COVID levels [30] - Management believes current potash pricing levels will not lead to demand destruction, citing strong farmer economics globally [36] Other Important Information - The company received full forgiveness on its Paycheck Protection Program loan and paid down the remaining $15 million on its senior notes [8] - The company sold a 320-acre tract of land for $6 million, generating a satisfactory gain [9] Q&A Session Summary Question: Potash benchmark prices and liquidity - Management noted that most buyers in the Midwest have already placed orders for fall needs, indicating limited liquidity at current benchmark prices [29] Question: Oilfield Solutions revenue growth expectations - Management expects significant revenue growth in the second half of the year, aligning with pre-COVID levels [30] Question: Potash and Trio pricing and margins - Management indicated that costs should remain consistent, with higher pricing expected to positively impact margins [31] Question: Potash inventories and sales management - Management highlighted strong demand and strategic inventory management in anticipation of a robust agricultural economy [34] Question: Concerns about demand disruption due to high potash prices - Management does not foresee demand destruction at current pricing levels, citing strong farmer economics across various commodities [36][37] Question: Capital allocation and potential shareholder returns - Management is considering a special dividend or buyback program as cash position strengthens [59][60]