Intrepid Potash, Inc

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Good morning, everyone. Thank you for joining us to discuss and review Intrepid's third quarter 2025 results. With me today is Intrepid's CEO, Kevin Crutchfield. and CFO Matt Preston. During the Q&A session, our VP of Sales and Marketing, Zachary Adams, will also be available. Please be advised that comments we'll 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 fly with the SEC. These risks and uncertainties could cause intrepid 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 are available at intrepidpodge.com. I'll now turn the call over to our CEO, Kevin Crutchfield.

Thank you, Evan, and good morning, everyone. We appreciate your interest and attendance for today's earnings call. I'm pleased to report that Intrepid sustained its strong financial performance in the third quarter. This was highlighted by net income of $3.7 million and adjusted EBITDA of $12 million, which compares to a net loss of $1.8 million in adjusted EBITDA of $10 million last year. Outside of the record pricing we saw in 2022, our year-to-date adjusted EBITDA of $45 million represents our best start since 2015. I'd like to take the time on our call to specifically recognize all of our employees and congratulate them on this excellent set of results. both for this quarter and year to date. Our strong results were primarily driven by two key factors. First, higher pricing in potash and trio, as we realize the entirety of the first half increases in both segments in quarter three. And second, our higher production over the past year has led to better unit economics. Both potash and trio improved their cost of goods sold per ton by low single digit percentages during the quarter and year to date, our potash cost of goods sold improved by 9% to $327 per ton, while in TRIO, the same figure improved by 15% to $238 per ton. For TRIO specifically, our production has been consistently exceeding our expectations quarter after quarter, and we're confident we can continue to sustain these higher run rates. which should further improve our unit economics in 2026. Turning to market commentary, while sentiment in U.S. agriculture had softened over the past few months, there are some green shoots emerging. This was, of course, highlighted by last week's trade deal with China, which included soybean purchase commitments and yesterday's follow-through where they also confirmed they would remove retaliatory tariffs on certain U.S. farm goods, including soybeans. While China soybean purchase commitments essentially put our exports back to historical levels, when those are combined with much higher recent domestic soybean crush, the total domestic soybean use has the potential to again reach recent historical highs. This in turn could also provide some relief for corn if we get lower planted acres next spring, although corn exports have remained very strong regardless. In summary, the U.S. agriculture landscape is certainly looking better, which is also evidenced by corn and soybean futures both now being up by 15% since August lows. For the broader potash market, global supply and demand remains relatively balanced where demand in key international markets has been resilient throughout the year. Given the lack of significant additional potash supply until mid-2027, we think the market will continue to see pricing support for the foreseeable future. Furthermore, potash is currently trading at similar levels to where it was this time in 2023, offering good relative value compared to other fertilizers. Putting this together, we remain constructive on our sales volumes and pricing as we wrap up the year, and we'll continue to prioritize selling into our highest net back markets. Before passing the call on to Matt, I'll end my remarks with a couple of operational highlights. In Potash, we're still working on the permitting and evaluation process for the AMACS cavern at our HB facility and hope to have our permitting efforts wrapped up in the first quarter of 2026, which is consistent with the timeline we outlined in the last earnings call. In TRIO, as I alluded to earlier, our financial and operating performance continues to exceed expectations. This has largely been driven by the two new continuous miners we placed into service in the second half of 23, as well as the restart of our fine Langmanite recovery circuit. In addition, in January 2026, we expect to take delivery of another continuous miner, which will further improve our mining rates and continue our trend of year-over-year production increases. Accordingly, we now forecast our quarterly trio production will be in the range of 70 to 75,000 tons for 2026, and our team is continuing to challenge itself to find even more tons through improved mining efficiencies and increased mill recoveries. Higher production should drive another year of record TRIO sales volumes for Intrepid. And given that TRIO pricing is close to parity with potash, this will also help to offset the modestly lower 2026 potash production guidance we gave on the last earnings call. Overall, Intrepid continues to deliver solid financial results, and the recent improvements in U.S. ag markets is certainly a positive development. Looking ahead, we'll remain focused on strong operational execution, improving our margins and free cash flow through the cycle as the only domestic producer of potash. We'll prioritize our investments into our core business to fully capitalize on our multi-decade reserve lives. So with that, I'll now turn the call over to Matt. So please go ahead. Thank you, Kevin.