Intrepid Potash, Inc

Thank you for standing by. This is the conference moderator. Welcome to the Intrepid Potash, Inc. second quarter 2026 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. If you would like to withdraw your question, simply press star, then one again. I would now like to hand the conference over to Alex Gorel, Director of Finance. Please go ahead.

Good morning, everyone, and thank you for joining us to discuss Intrepid's second quarter of 2026 results. With me today are Kevin Crutchfield, our Chief Executive Officer, Zachary Adams, our Vice President of Sales and Marketing, Rick Kim, our Vice President of Operations, and Jason Tremblay, our Chief Financial Officer. Please be advised that our remarks today include forward-looking statements as defined by U.S. securities laws. These statements are based on information currently available to us and are subject to risks and uncertainties described in our SEC filings, which could cause actual results to differ materially from those currently anticipated. We assume no obligation to update any forward-looking statements. 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 today's press release and, along with our SEC filings, are available at intrepidpotash.com. With that, I'll turn the call over to Kevin.

Thank you, Alex, and good morning, everyone. I'd like to welcome Jason Tremblay to his first earnings call as Intrepid's Chief Financial Officer. Jason brings deep experience across mining, crop nutrition, capital markets, and corporate strategy, including many years of direct experience in potash. His financial discipline and industry perspective are well aligned with our priorities as we improve execution, sharpen capital allocation, and build greater investor understanding of Intrepid's long-term value creation opportunity. Now, our message today is built around three themes, execution, opportunity, and capital discipline. I'll frame those themes at the company level, then Zach will provide additional market context Rick will discuss the operating improvements behind the improving performance and guidance increase, and Jason will cover the financial results, capital allocation framework, and our outlook. First, execution improved. Better process control, improving reliability, and recovery performance helped deliver year-over-year earnings growth, stronger production results, better trio unit economics, and improved margin quality. Second, the opportunity set is becoming clearer. Trio market dynamics, improved operating performance, and disciplined internal investments give us a path to improve the durability and long term earnings power of the core fertilizer business. Third, capital discipline remains central to value creation. Our balance sheet gives us flexibility to fund ready opportunities, return a portion of excess capital to shareholders, and adjust the pace of returns as our investment priorities evolve and mature. These themes are reflected in our decision to raise full-year production guidance for both Potash and Trio, supported by continued improvements in the core fertilizer business and a stronger foundation for the second half of 2026 and beyond. Pricing remained constructive across the business, particularly in Trio, where current market conditions are increasing the value of sulfate exposure. Zach will cover the market backdrop in more detail, but at a high level, TRIO's naturally occurring sulfate content continues to reinforce differentiated positioning. At the same time, we're staying disciplined in how we frame the near-term opportunities. The market backdrop is encouraging, but we'll continue to translate that opportunity into guidance in a measured way based on customer demand, production execution, and the timing of market development. We also made important progress on portfolio and capital allocation priorities. We completed the South Ranch sale for $68.9 million net of customary transaction adjustments, including $62 million of cash proceeds in the second quarter, which further strengthened the balance sheet and sharpened our focus on the core fertilizer business. We maintained a very strong liquidity position with $185 million of cash on hand, no revolver borrowings, and $149.8 million of revolver availability at quarter end. That balance sheet is not an end in itself. It's a tool to create value. Our strategy is to improve the reliability and long-term earnings power of the base business, capture value from trio market dynamics, and allocate capital when the timing, returns, and execution requirements are clear. We recognize investors want clarity on how we'll use our balance sheet. Jason will provide more detail on the capital allocation framework, including how we think about liquidity, ready investment opportunities, and capital returns to shareholders. At the highest level, our approach is to preserve flexibility, invest where returns and readiness are clear, and return capital where appropriate. We're also evaluating value creating opportunities that can improve the durability and long-term earnings power of the core business, including East Underground Trio capacity, MOP production, enhancements to reliability and byproduct utilization where the economics are compelling. We'll share more as expected returns, timing, resource requirements and execution risks become sufficiently defined. On lithium, our partners continue to advance engineering and permitting activities at Wendover. We view the project as part of a broader opportunity set, and we expect to provide additional detail as those efforts progress later this year. Our goal today is to be clear about what improved in the quarter, where we still have work to do, and how better execution, a cleaner portfolio, and balance sheet strength can drive long-term shareholder value creation. I'm really proud of the intrepid team's performance, and I want to thank everyone for their dedicated work. With that, I'll now turn the call over to Zach for a closer look at the market backdrop for Potash and Trio and how those conditions inform our view of the second half.