Intrepid Potash, Inc

This is the conference operator. Welcome to the Intrepid Potash, Inc. second quarter 2025 results conference call. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then one on your telephone keypad. Should you need assistance during the conference call, You may signal an operator by pressing star and zero. I would now like to turn the conference over to Evan Mapes, Investor Relations. Please go ahead.

Good morning, everyone. Thank you for joining us to discuss and review Intrepid's second quarter 2025 results. With me today is Intrepid's CEO, Kevin Crutchfield, and CFO, Matt Preston. Our VP of Sales and Marketing, Zachary Adams, will also be available during the Q&A session. Please be advised that comments we will make today include forward-looking statements as defined by U.S. securities laws. These are based upon information available to us today and are subject to risks and uncertainties that are more fully described in the reports we file with the SEC. These risks and uncertainties could cause Intrepid's actual results to be different from those currently anticipated, and we assume no obligation to update them. During today's call, we will also refer to certain non-GAAP financial and operational measures. Reconciliations to the most directly comparable GAAP measures are included in yesterday's press release and along with our SEC filings are available at IntrepidPottage.com. I will now turn the call over to our CEO, Kevin Crutchfield.

Thanks, Evan, and good morning, everyone. We really appreciate your interest and attendance for today's earnings call. Intrepid has been off to a great start to the year, and our second quarter results again exceeded our expectations. While we've experienced tailwinds from the broader potash market, the focus on executing our key initiatives throughout the business is paying off, and I'd like to congratulate the team on achieving strong performance across the board. In the second quarter, our results were highlighted by generating adjusted EBITDA of $16.4 million and adjusted net income of $6 million, which compares to our prior year adjusted EBITDA of $9.2 million and adjusted net loss of about 40,000. At a high level, our strong second quarter performance was driven by a combination of strong sales volumes for potash and trio, improving pricing, and solid unit economics resulting from higher production. Through the second quarter in potash, our year-to-date production of 137,000 tons was 8% higher than the same period in 2024, and our cost of goods sold per ton improved by 12% to $323 per ton. In TRIO, our year-to-date production of 132,000 tons was 8% higher than the same period last year, and our cost of goods sold per ton improved by 18% to $234 per ton. Before getting into the market outlook, I want to first provide an update on our AMAX cavern sample well project. We successfully drilled the well in July, but unfortunately we did not find the brine pool that our imaging had showed us as being present. Given this outcome, we're continuing our evaluation of options to pursue an injection well and pipeline that will connect the AMAX mine to our HB injection system. Timing of construction will depend on further technical review and quantifying permitting requirements. but we'll keep the market informed as we progress our efforts on this front. As for the implications, without the AMAX brine pool available for our 2026 evaporative season, we now expect a slightly overall brine grade into our HB ponds in 2026, as well as lower near-term potash production. While this wasn't our anticipated outcome, given the complexity of drilling these wells, we're pleased to have successfully drilled into our intended target area, and to also have a well for future brine extraction at AMAX. In addition, potash fundamentals remain strong, and improving pricing from the start of the year will help offset some of the impacts related to our modestly lower production forecast, which Matt will detail later in the call. Turning to market commentary, I want to highlight four key points as it relates to potash. Tight global supply and strong demand has outpaced supply additions so far in 2025. Second, key international contracts were settled at supportive levels that should help provide a pricing floor through year end. Third, there was a successful summer field program where posted prices increased by $20 per ton following the conclusion of the order period. And lastly, the Janssen project was set to come online late next year has been delayed six months to mid-2027 for first production with the expectation of a multi-year ramp to full capacity project delays such as this one will help contribute to the continuation of a more balanced market over the next several years as for agriculture markets we've seen some weakness in corn and soybean futures over the summer but there are positives that can help shift this narrative A weak U.S. dollar has so far supported strong corn and soybean exports, which remain well ahead of last year's volumes. Moreover, recent trade deals with major partners have featured U.S. agriculture, which we expect will continue to provide support for exports. Looking at international markets, key crops like palm oil, cocoa, and coffee continue to trade at elevated levels, as we always want to make sure that we mention that non-corn and soybean crops comprise about 70% of global potash consumption. So relative agriculture weakness in the U.S. doesn't necessarily have significant implications for our potash prices. Overall, we've had a great start to the year and remain constructive on the outlook. As I've emphasized on previous calls, we remain focused on making our core operations more durable and more consistent. And we'll prioritize investments that support higher production and lower costs over the long term so that we can fully capitalize on our multi-decade reserve base. So with that, I'll now turn the call over to Matt. So please go ahead, Matt. Thank you.