Intrepid Potash, Inc. (NYSE: IPI)

Intrepid Potash, Inc. is a diversified mineral company that delivers potassium, magnesium, sulfur, salt, and water products essential for customer success in agriculture, animal feed, and the oil and gas industry. The company produces muriate of potash (potassium chloride) from 3 solution mining facilities: the HB solution mine in Carlsbad, New Mexico, the solution mine in Moab, Utah, and the brine recovery mine in Wendover, Utah. It also operates a North compaction facility in Carlsbad, New Mexico which compacts and granulates product from the HB mine. Intrepid Potash produces the specialty fertilizer Trio ® from its conventional underground East mine in Carlsbad, New Mexico. In addition the company provides water, magnesium chloride, and brine and various oilfield related products and services from its Intrepid South properties in southeast New Mexico including water, brine, caliche, right of way agreements, surface use agreements, and a produced water royalty. All extraction and production operations are conducted entirely in the continental United States.

Intrepid Potash generates revenue primarily from the sale of potash, Trio ®, and water. The company also sells salt, magnesium chloride, and brines that are derived as byproducts of its mining processes. In addition Intrepid Potash offers oilfield solutions including water, brine, caliche, right of way agreements, surface use agreements, and a produced water royalty. Product sales as a percentage of total sales for the last 3 years were potash 39% to 47%, Trio ® 35% to 48%, water 1% to 5%, salt 4% to 5%, magnesium chloride 2% to 3%, brines 3% to 5%, and other products 2% to 3%. The company uses average net realized sales price per ton a non GAAP measure calculated as sales less byproduct sales and freight costs divided by product sales tons to evaluate pricing effectiveness. Customers include agricultural distributors, cooperatives, retailers, and dealers who supply farmers, animal feed manufacturers, and oil and gas operators in the Permian Basin and other regions.

The company operates through the following segments: Potash, Trio, Water and Oilfield Solutions, Byproducts.

• Potash segment: This segment produces muriate of potash from the HB solution mine in Carlsbad, New Mexico, the solution mine in Moab, Utah, and the brine recovery mine in Wendover, Utah and operates the North compaction facility in Carlsbad, New Mexico which compacts and granulates product from the HB mine. Potash is sold into the agricultural, animal feed, and industrial markets with granular sized product primarily serving agriculture, and standard and fine standard sizes serving animal feed and industrial uses.

• Trio segment: This segment produces the specialty fertilizer Trio ® from the conventional underground East mine in Carlsbad, New Mexico. Trio ® delivers 1 particle and is offered in premium, granular, standard, and fine standard sizes for domestic, and international customers seeking a low chloride fertilizer.

• Water and Oilfield Solutions segment: This segment provides water, magnesium chloride, and brine and oilfield related products and services including water, brine, caliche, right of way agreements, surface use agreements, and a produced water royalty from Intrepid South properties in southeast New Mexico supporting oil and gas development in the Permian Basin.

• Byproducts segment: This segment recovers salt, magnesium chloride, and brine during potash and Trio ® production. Salt is used in animal feed, industrial applications, pool salt, and ice melting. Magnesium chloride is applied as a road treatment agent for deicing, and dedusting. Brines containing salt and potassium are used by the oil and gas industry for well workover, and completion activities.

Intrepid Potash is the only U. S. producer of muriate of potash which gives it a transportation advantage over foreign competitors that ship product longer distances to North American markets. The company competes with large Canadian potash producers and to a lesser extent with producers in Russia, Chile, Germany, and Israel in the potash market. In the Trio ® market it faces competition from 1 langbeinite producer and from suppliers of other specialty nutrients, and blended products. Intrepid Potash maintains competitive advantages through its low cost solar solution mining operations, favorable water right holdings in New Mexico, and a diversified product portfolio that includes byproducts and oilfield solutions.

Intrepid Potash serves a diversified customer base that includes agricultural distributors, cooperatives, retailers, dealers, animal feed manufacturers, and oil and gas operators. Domestic potash sales are geographically concentrated in the central, and western United States. In 2024 and 2023 the company had 1 customer Bill Barr & Company Inc. that accounted for more than 10% of total consolidated revenues while in 2025 no 1 customer exceeded this threshold.