Intrepid Potash Inc.
11/04/2026 | Press release | Distributed by Public on 11/04/2026 13:36
Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
This Quarterly Report on Form 10-Q (this "Quarterly Report") contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the Securities Act of 1933, as amended. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in this Quarterly Report other than statements of historical fact are forward-looking statements. Forward-looking statements include statements about, among other things, our future results of operations and financial position, our business strategy and plans, our expected capital investments and our objectives for future operations. In some cases, you can identify these statements by forward-looking words, such as "estimate," "expect," "anticipate," "project," "plan," "intend," "believe," "forecast," "foresee," "likely," "may," "should," "goal," "target," "might," "will," "could," "predict," and "continue." Forward-looking statements are only predictions based on our current knowledge, expectations, and projections about future events.
These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including the following:
•changes in the price, demand, or supply of our products and services;
•challenges and legal proceedings involving the Company;
•our ability to successfully identify and implement any opportunities to grow our business whether through expanded sales of water, Trio®, byproducts, and other non-potassium related products or other revenue diversification activities;
•the costs of, and our ability to successfully execute, any strategic projects;
•declines or changes in agricultural production or fertilizer application rates;
•declines in the use of potassium-related products or water by oil and gas companies in their drilling operations;
•our ability to prevail in outstanding legal proceedings;
•our ability to comply with the terms of our revolving credit facility, including any underlying covenants;
•write-downs of the carrying value of assets, including inventories;
•circumstances that disrupt or limit production, including operational difficulties or variances, geological or geotechnical variances, equipment failures, environmental hazards, and other unexpected events or problems;
•changes in reserve estimates;
•currency fluctuations;
•adverse changes in economic conditions or credit markets;
•the impact of governmental regulations, including environmental and mining regulations, the enforcement of those regulations, and governmental policy changes;
•the impact of tariffs and any potential changes to them we are unable to mitigate;
•adverse weather events, including events affecting precipitation and evaporation rates at our solar solution mines;
•increased labor costs or difficulties in hiring and retaining qualified employees and contractors, including workers with mining, mineral processing, or construction expertise;
•changes in management and the board of directors, and our reliance on key personnel, including our ability to identify, recruit, and retain key personnel;
•changes in the prices of raw materials, including chemicals, natural gas, and power;
•our ability to obtain and maintain any necessary governmental permits or leases relating to current or future operations;
•interruptions in rail or truck transportation services, or fluctuations in the costs of these services;
•our ability to fund necessary capital investments;
•the impact of global conflicts, including the conflict involving Iran and the blockage of the Strait of Hormuz;
•the timing, amount and impact of any repurchases under our stock repurchase program;
•the impact of global health issues, and other global disruptions on our business, operations, liquidity, financial condition and results of operations; and
•the other risks, uncertainties, and assumptions described in Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2025, this Quarterly Report and in other reports we file with the SEC.
In addition, new risks emerge from time to time. It is not possible for our management to predict all risks that may cause actual results to differ materially from those contained in any forward-looking statements we may make.
In light of these risks, uncertainties, and assumptions, the future events and trends discussed in this Quarterly Report may not occur and actual results could differ materially and adversely from those anticipated or implied in these forward-looking statements. As a result, you should not place undue reliance on these forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements to conform those statements to actual results or to reflect new information or future events.
Throughout this Quarterly Report, we refer to average net realized sales price per ton, which is a non-GAAP financial measure. More information about this measure, including a reconciliation of this measure to the most directly comparable GAAP financial measure, is below under the heading "Non-GAAP Financial Measure."
Company Overview
We are 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. We are the only U.S. producer of muriate of potash (sometimes referred to as potassium chloride, KCl or potash), which is applied as an essential nutrient for healthy crop development, utilized in several industrial applications, and used as an ingredient in animal feed. In addition, we produce a specialty fertilizer, Trio®, which delivers a low-chloride source of three key nutrients, potassium, magnesium, and sulfate, in a single particle. We also provide water, magnesium chloride, brine, and various oilfield products and services.
Our extraction and production operations are conducted entirely in the continental U.S. We produce potash from three solution mining facilities: our HB solution mine in Carlsbad, New Mexico, our solution mine in Moab, Utah, and our brine recovery mine in Wendover, Utah. We also operate our North compaction facility in Carlsbad, New Mexico, which compacts and granulates product from the HB mine. We produce Trio® from our conventional underground East mine in Carlsbad, New Mexico.
We owned certain land, water rights, federal grazing leases, and other related assets in southeast New Mexico, which we collectively referred to as "Intrepid South." Intrepid South generated revenue primarily from sales of various oilfield-related products and services, including water, brine, surface use and right-of-way agreements, a produced water royalty agreement, and caliche.
In March 2026, our Board of Directors ("Board") approved the sale of Intrepid South, and we determined that the business met the criteria for classification as held for sale and discontinued operations. We received aggregate consideration of $70.0 million related to the transaction, consisting of an $8.0 million deposit received in December 2025 and a $62.0 million payment received at closing on April 1, 2026. Following customary post-close adjustments, the final sales price was $68.9 million. As a result of the transaction, we recorded a gain on sale of Intrepid South before income taxes of $13.3 million for the nine months ended September 30, 2026.
We currently have two reportable segments: potash and Trio®. Through December 31, 2025, our oilfield solutions segment was also a reportable segment. Following the sale of Intrepid South, the oilfield solutions segment is no longer reported as a reportable segment, and all prior-period segment disclosures presented in this Quarterly Report on Form 10-Q have been recast to conform to the current presentation.
We account for the sale of byproducts as revenue in the potash or Trio® segment based on which segment generated the byproduct. Intersegment sales are recorded at market-based prices and eliminated in consolidation.
Significant Business Trends and Activities
Our financial results have been, or are expected to be, impacted by several significant trends and activities, which are described below. We expect that the trends described below may continue to impact our results of operations, cash flows, and financial position.
• Sale of Intrepid South. In March 2026, our Board of Directors approved the sale of Intrepid South, a component of our business. Intrepid South's assets and liabilities were classified as held for sale, and its results of operations are presented as discontinued operations. The transaction closed on April 1, 2026, and we received gross proceeds of $70.0 million. Following customary post-closing adjustments, the final sales price was $68.9 million. We recorded a gain on sale of Intrepid South before income taxes of $13.3 million for the nine months ended September 30, 2026. See Note 3 to our unaudited Condensed Consolidated Financial Statements for additional information regarding the sale and the presentation of Intrepid South as discontinued operations.
• Potash pricing and demand. Our average net realized potash sales price per ton(1) increased to $394 for the three months ended September 30, 2026, from $381 for the corresponding period in 2025 as we realized the full effect of the first-half potash price increases and sold a greater percentage of our product into feed and industrial markets due to normal seasonality in agricultural markets. Potash sales volumes declined 5% compared to the corresponding period in 2025 due to the timing of shipments in the second half of September.
Our average net realized sales price per ton increased to $372 for the nine months ended September 30, 2026, from $345 for the corresponding period in 2025. Winter fill program pricing for 2026 was $355 per ton, compared to $315 per ton for the 2025 program. Following the successful completion of the winter fill program, list prices increased by $20 per ton in late January 2026 and by an additional $10 per ton in late April 2026. In June 2026, we launched a summer fill program at $385 per ton, with list prices increasing to $395 per ton upon completion of the program. Customer participation in the summer fill program was good, with customers placing orders covering for most of their third-quarter needs. In September 2026, list prices increased by $15 per ton and subsequently by an additional $20 per ton, bringing Midwest reference prices to $430 per ton at month-end, as supportive crop values drove incremental fall potash demand. We expect to realize the most recent $20-per-ton increase on incremental fall sales. Potash pricing continues to be supported by healthy agricultural demand, balanced global supply fundamentals, and the recent India contract settlement, which is supportive of U.S. market prices.
As a small producer, domestic pricing of our potash is influenced principally by the price established by our competitors. The interaction of global potash supply and demand, ocean, land, and barge freight rates, currency fluctuations, and crop commodity values and outlook also influence pricing. Our price expectations could be affected by, among other things, tariffs, weather, planting decisions, rail car availability, commodity price decreases and the price and availability of other potassium products.
Various factors affect potash sales and shipments, which increase the volatility of sales volumes from quarter to quarter and season to season. We experience seasonality in potash demand, with more purchases historically occurring in February through May and September through November when purchasers are looking to have product on hand for the spring and fall application seasons in the U.S. The specific timing of when farmers apply potash remains highly weather dependent and varies across the numerous growing regions within the U.S. The timing of potash sales is also significantly influenced by the marketing programs of potash producers, as well as storage volumes closer to the farm gate.
• Trio® pricing and demand. Our Trio® average net realized sales price per ton(1) increased to $408 for the three months ended September 30, 2026, compared to $402 for the corresponding period in 2025, as pricing for the individual components of Trio®, particularly sulfate and low-chloride potassium, remained supportive. Sales volumes in the three months ended September 30, 2026, were unchanged from the corresponding period in 2025, as customers focused purchases on near-term application needs and deferred inventory-building purchases for the spring 2027 application season.
Our Trio® average net realized sales price per ton increased to $390 during the nine months ended September 30, 2026, from $362 for the corresponding period in 2025, reflecting continued favorable market pricing for the individual nutrient components of Trio®, particularly sulfate and low-chloride potassium.
Supported by favorable demand for remaining spring application needs, we increased the Trio® list price by $15 per ton to $420 per ton in late March 2026. Effective July 1, 2026, we increased our list price by an additional $10 per ton to $430 per ton. The July price increase was reflected in spot and rail sales during the third quarter of 2026. In early October 2026, we announced a one-week fall fill program, at a list price to $410 per ton for orders to be shipped by year-end. We saw good subscription to the fall fill program with customers committing to historical volumes. Following the close of the fall fill order window, we increased the Trio® list price by $30 per ton to $440 per ton, reflecting our constructive market outlook. We expect the higher price to be reflected in remaining spot sales during the fourth quarter. Our ability to realize these prices may be affected by, among other things, weather, planting decisions, rail car availability, commodity prices, and the price and availability of other potassium products.
We also experience seasonality in domestic Trio® demand, with more purchases coming in the first and second quarters in advance of and during the spring application season in the U.S. In turn, we generally have increased inventory levels in the third and fourth quarters in anticipation of expected demand for the following year.
• Byproduct sales. We sell byproducts that are derived from our potash and Trio® operations. Byproduct sales were $5.8 million and $15.6 million, respectively, during the three and nine months ended September 30, 2026, compared to $6.3 million and $18.9 million, respectively, for the corresponding periods of 2025. Byproduct sales decreased in both periods in 2026, compared to 2025, due to lower sales of salt and magnesium chloride.
Byproduct sales of salt and magnesium chloride during the three and nine months ended September 30, 2026, were negatively impacted by the mild winter and historically low snowfall levels across the western U.S., which reduced demand for deicing products and resulted in higher customer inventory levels entering the second and third quarters. These elevated inventory levels adversely affected shipments during the second and third quarters.
• Tariffs and tensions in the Middle East. Evolving trade policies, including tariffs, and heightened geopolitical tensions in the Middle East could increase input costs and freight and logistics expenses, contribute to volatility in energy markets and supply chain disruptions, and increase broader macroeconomic uncertainty.
• Water sales and other oilfield products and services. Following the sale of Intrepid South, sales of source water and other oilfield products and services are expected to be substantially lower in the remainder of 2026 and in future periods. Excluding Intrepid South, sales of other oilfield products were $1.1 million during the nine months ended September 30, 2026. Total oilfield services sales were $11.4 million during the corresponding period in 2025, primarily reflecting sales attributable to Intrepid South.
• Water Rights Easement with New Mexico State Land Office. The majority of the water we use for our HB and East operations is derived from wells located on state lands, which we access through an easement issued by the New Mexico State Land Office (NMSLO). We are currently operating under a temporary renewal of our water rights easement and are working collaboratively with the NMSLO toward a long-term renewal of the easement. Based on our ongoing engagement with the NMSLO and the history of our operations, we believe we will be successful in obtaining a long-term renewal of the easement.
• HB AMAX Cavern. In July 2025, we drilled a sample well into one of the lowest sections of the AMAX mine; however, the brine pool anticipated based on our imaging was not present. Given this outcome, we are continuing our evaluation of options to pursue an injection well and pipeline that would connect the AMAX mine to our HB injection system. Timing of construction will depend on further technical review and quantifying permitting requirements. During 2026, we continued permitting activities and the technical evaluation of AMAX project, and we made the decision to defer additional capital investment until at least 2027.
While the AMAX cavern remains a key part of our HB mine and we remain confident in the potash reserve in place, we have adequate brine sources to maintain production at our HB facility for the next few years. Before committing additional capital, we are working to ensure we have adequate brine injection volumes to flood the AMAX cavern, which will be the largest cavern in the HB system, and the necessary bitterns management system in place to maximize the full potential of this additional cavern.
(1) Average net realized sales price per ton is a non-GAAP financial measure. More information about this non-GAAP financial measure is below under the heading "Non-GAAP Financial Measure."
Consolidated Results
| (in thousands, except per ton amounts) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
|
Sales1
|
$ | 51,034 | $ | 50,807 | $ | 216,404 | $ | 212,870 | ||||||||||||||||||
| Cost of goods sold | $ | 30,803 | $ | 31,261 | $ | 126,090 | $ | 130,782 | ||||||||||||||||||
| Gross Margin | $ | 10,041 | $ | 9,952 | $ | 44,362 | $ | 35,634 | ||||||||||||||||||
| Selling and administrative | $ | 9,679 | $ | 8,992 | $ | 30,974 | $ | 27,072 | ||||||||||||||||||
| Net Income from Continuing Operations | $ | 1,732 | $ | 729 | $ | 11,008 | $ | 5,533 | ||||||||||||||||||
| Net Income from Discontinued Operations, Net of Tax | $ | - | 3,016 | 13,719 | 6,081 | |||||||||||||||||||||
| Net Income | $ | 1,732 | $ | 3,745 | $ | 24,727 | $ | 11,614 | ||||||||||||||||||
|
Average net realized sales price per ton2
|
||||||||||||||||||||||||||
| Potash | $ | 394 | $ | 381 | $ | 372 | $ | 345 | ||||||||||||||||||
|
Trio®
|
$ | 408 | $ | 402 | $ | 390 | $ | 362 | ||||||||||||||||||
1Sales include sales of byproducts which were $5.8 million and $6.3 million for the three months ended September 30, 2026, and 2025, respectively, and $15.6 million and $18.9 million for the nine months ended September 30, 2026, and 2025, respectively.
2Average net realized sales price per ton is a non-GAAP financial measure. More information about this non-GAAP financial measure is below under the heading "Non-GAAP Financial Measure."
Consolidated Results for the Three Months Ended September 30, 2026, and 2025
Sales
Our total sales were $51.0 million for the three months ended September 30, 2026, compared to $50.8 million for the corresponding period in 2025. The increase in sales was primarily attributable to a $1.0 million increase in Trio® segment sales and a $0.5 million increase in other water sales, partially offset by a $1.2 million decrease in potash segment sales.
Potash segment sales decreased $1.2 million, or 4%, to $31.3 million for the three months ended September 30, 2026, compared to $32.5 million for the same corresponding period in 2025. The decrease was primarily attributable to lower potash sales volumes and lower byproduct sales, partially offset by higher average net realized sales prices. Potash sales volumes decreased 5% to 59,000 tons, while our average net realized sales price per ton increased 3% to $394 from $381. Potash segment byproduct sales decreased $0.6 million to $5.5 million from $6.2 million. The decrease was primarily attributable to lower salt and brine water sales.
Trio® segment sales increased $1.0 million, or 5%, to $19.1 million for the three months ended September 30, 2026, compared to $18.1 million for the same corresponding period in 2025. The increase was primarily attributable to a $0.9 million increase in Trio® sales and a $0.1 million increase in Trio® segment byproduct sales. Trio® sales increased primarily due to a 1% increase in our average net realized sales price per ton from $402 to $408, reflecting continued supportive pricing for the individual nutrient components of Trio®, particularly sulfate and potassium. Trio® sales volumes were 36,000 tons in both periods.
Cost of Goods Sold
Our total cost of goods sold decreased $0.5 million, or 1%, to $30.8 million for the three months ended September 30, 2026, compared to $31.3 million for the same corresponding period in 2025. The decrease was primarily attributable to a $1.2
million decrease in Trio® segment cost of goods sold and a $0.9 million decrease in other cost of goods sold, partially offset by a $1.6 million increase in potash segment cost of goods sold.
Potash segment cost of goods sold increased $1.6 million, or 8%, to $22.7 million despite a 5% decrease in potash sales volumes compared to the prior-year period. The increase was primarily attributable to a higher cost per ton sold resulting from a lower proportion of potash tons sold from our lowest-cost facility compared to the same corresponding period in 2025.
Trio® segment cost of goods sold decreased $1.2 million, or 13%, to $8.1 million, while Trio® sales volumes were unchanged compared to the prior-year period. The decrease was primarily attributable to a favorable product mix, as a lower proportion of tons sold consisted of our premium product, which has a higher weighted-average carrying cost per ton.
Lower of Cost or Net Realizable Value Inventory Adjustments
During the three months ended September 30, 2026, we recorded $0.2 million of lower of cost or net realizable value inventory adjustments in our potash segment compared to $0.4 million during the corresponding period in 2025.
Gross Margin
Gross margin was relatively unchanged at $10.0 million for the three months ended September 30, 2026, and 2025, as higher average net realized sales prices per ton for both potash and Trio® and a lower weighted-average carrying cost per ton sold for Trio® were largely offset by higher potash cost of goods sold.
Selling and Administrative Expenses
Selling and administrative expenses increased $0.7 million, or 8%, to $9.7 million for the three months ended September 30, 2026, compared to the same corresponding period in 2025. The increase was primarily attributable to increased labor and benefits expenses.
Net Income from Continuing Operations
Net income from continuing operations increased $1.0 million to $1.7 million for the three months ended September 30, 2026, compared to $0.7 million for the corresponding period in 2025. The increase was primarily attributable to the factors discussed above.
Consolidated Results for the Nine Months Ended September 30, 2026, and 2025
Sales
Total sales increased $3.5 million, or 2%, to $216.4 million for the nine months ended September 30, 2026, compared to $212.9 million for the same corresponding period in 2025. The increase was primarily attributable to a $6.2 million increase in Trio® segment sales, partially offset by a $2.0 million decrease in potash segment sales and a $0.8 million decrease in other sales.
Trio® segment sales increased $6.2 million, or 6%, to $107.3 million, primarily due to a $6.0 million increase in Trio® sales and a $0.2 million increase in Trio® segment byproduct sales. The increase in Trio® sales was primarily attributable to an 8% increase in our average net realized sales price per ton, reflecting continued supportive pricing for the individual nutrient components of Trio®, particularly sulfate and potassium. The benefit of higher average net realized sales prices was partially offset by a 1% decrease in Trio® sales volumes.
Potash segment sales decreased $2.0 million, or 2%, to $108.0 million, primarily due to a $3.5 million decrease in potash segment byproduct sales, partially offset by a $1.5 million increase in potash sales. The increase in potash sales was primarily attributable to an 8% increase in our average net realized sales price per ton, partially offset by a 4% decrease in potash sales volumes.
Total byproduct sales, which are recorded in either our potash segment or Trio® segment, decreased $3.3 million for the nine months ended September 30, 2026, compared to the same corresponding period in 2025. The decrease was primarily attributable to a $2.1 million decrease in salt sales and a $1.3 million decrease in magnesium chloride sales, partially offset by an increase of $0.1 million in brine sales. Salt and magnesium chloride sales decreased primarily due to mild winter weather and historically low snowfall in the western U.S., which reduced demand during the first quarter of 2026 and resulted in higher customer inventory levels entering the second quarter.
Cost of Goods Sold
Cost of goods sold decreased $4.7 million, or 4%, to $126.1 million for the nine months ended September 30, 2026, compared to $130.8 million for the corresponding period in 2025. The decrease was primarily attributable to a $4.8 million
decrease in Trio® segment cost of goods sold and a $2.3 million decrease in other cost of goods sold, partially offset by a $2.4 million increase in potash segment cost of goods sold.
Trio® segment cost of goods sold decreased $4.8 million, or 9%, to $46.8 million for the nine months ended September 30, 2026, compared to the same corresponding period in 2025. The decrease was primarily attributable to a 1% decrease in Trio® sales volumes and a lower weighted-average carrying cost per ton sold. The lower weighted-average carrying cost per ton sold was primarily attributable to product mix and lower per-ton production costs. A lower proportion of tons sold consisted of premium product, which has a higher weighted-average carrying cost per ton. In addition, Trio® production volumes increased 12%, primarily due to the new continuous miner commissioned in early 2026 and ongoing plant optimization projects. Because a significant portion of our Trio® production costs are fixed, higher production volumes reduced our per-ton production costs and weighted-average carrying cost per ton sold.
Potash segment cost of goods sold increased $2.4 million, or 3%, to $78.9 million despite a 4% decrease in potash sales volumes. The increase was primarily attributable to higher production costs including depreciation and depletion expense and selling a lower proportion of potash tons from our lowest-cost facility compared to the corresponding period in 2025.
Other cost of goods sold decreased by $2.3 million, or 85%, during the nine months ended September 30, 2026, compared to the same corresponding period in 2025. The decrease was primarily attributable to lower water sales from our Caprock water rights, as water sales decreased 32% compared to the corresponding period in 2025.
Lower of Cost or Net Realizable Value Inventory Adjustments
During the nine months ended September 30, 2026, we recorded $1.3 million of lower of cost or net realizable value inventory adjustments in our potash segment, compared to $2.2 million during the corresponding period in 2025.
Gross Margin
Gross margin increased $8.7 million, or 24%, to $44.4 million for the nine months ended September 30, 2026, compared to $35.6 million for the corresponding period in 2025. The increase was primarily attributable to higher average net realized sales prices per ton for both potash and Trio® and a lower weighted-average carrying cost per ton sold for Trio®, partially offset by higher potash cost of goods sold.
Selling and Administrative Expenses
During the nine months ended September 30, 2026, selling and administrative expenses increased $3.9 million, or 14%, to $31.0 million, compared to $27.1 million for the corresponding period in 2025. The increase was primarily attributable to a $2.0 million increase in labor and benefits expense, a $1.4 million increase in severance-related costs, and a $1.2 million increase in professional services expense, partially offset by lower legal fees. The increase in labor and benefits expense was primarily attributable to additional employee headcount and higher incentive compensation expense resulting from stronger performance relative to the metrics underlying our incentive compensation programs. The increase in professional services expense reflected greater use of external consultants.
Impairment Expense
No impairment expense was recognized during the nine months ended September 30, 2026. During the same corresponding period in 2025, we recognized impairment expense of $1.9 million related to certain assets within our Trio® segment. The fair value of these assets was estimated using the expected proceeds received in an orderly sale of the assets.
Discontinued Operations
In March 2026, our Board approved the sale of Intrepid South. The transaction closed on April 1, 2026, and we received gross proceeds of $70.0 million. Following customary post-closing adjustments, the final sales price was $68.9 million. As a result of the transaction, we recognized a gain on sale of Intrepid South before income taxes of $13.3 million for the nine months ended September 30, 2026. See Note 3 to the Condensed Consolidated Financial Statements for further information.
Income Tax Expense
Income tax expense from continuing operations was approximately $0.1 million for the nine months ended September 30, 2026, compared to $0.5 million for the same corresponding period in 2025. As of September 30, 2026, we continued to maintain a full valuation allowance against our deferred tax assets.
Net Income from Continuing Operations
Net income from continuing operations increased $5.5 million, or 99%, to $11.0 million for the nine months ended September 30, 2026, compared to $5.5 million for the same corresponding period in 2025. The increase was primarily attributable to the factors discussed above.
Potash Segment
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| (in thousands, except per ton amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
|
Sales1
|
$ | 31,281 | $ | 32,479 | $ | 108,002 | $ | 110,050 | ||||||||||||||||||
| Less: Freight costs | 3,013 | 3,146 | 11,090 | 12,592 | ||||||||||||||||||||||
|
Warehousing and handling costs |
1,747 | 1,613 | 5,086 | 5,142 | ||||||||||||||||||||||
| Cost of goods sold | 22,685 | 21,050 | 78,913 | 76,531 | ||||||||||||||||||||||
|
Lower of cost or net realizable value inventory adjustments |
247 | 406 | 1,339 | 2,160 | ||||||||||||||||||||||
| Gross Margin | $ | 3,589 | $ | 6,264 | $ | 11,574 | $ | 13,625 | ||||||||||||||||||
|
Depreciation, depletion, and amortization incurred2
|
$ | 7,495 | $ | 7,275 | $ | 23,658 | $ | 22,828 | ||||||||||||||||||
| Potash sales volumes (in thousands of tons) | 59 | 62 | 224 | 234 | ||||||||||||||||||||||
| Potash production volumes (in thousands of tons) | 34 | 41 | 191 | 178 | ||||||||||||||||||||||
|
Average potash net realized sales price per ton3
|
$ | 394 | $ | 381 | $ | 372 | $ | 345 | ||||||||||||||||||
1 Sales include sales of byproducts of $5.5 million and $6.2 million for the three months ended September 30, 2026, and 2025, respectively, and $15.1 million and $18.6 million for the nine months ended September 30, 2026, and 2025, respectively.
2 Depreciation, depletion, and amortization incurred excludes depreciation, depletion, and amortization amounts absorbed in or (relieved from) inventory.
3Average net realized sales price per ton is a non-GAAP financial measure. More information about this measure is below under the heading "Non-GAAP Financial Measure."
Three Months Ended September 30, 2026, and 2025
Potash segment sales decreased $1.2 million, or 4%, to $31.3 million for the three months ended September 30, 2026, compared to $32.5 million for the same corresponding period in 2025. The decrease was driven by a $0.5 million decrease in potash sales and a $0.6 million decline in potash segment byproduct sales.
Potash sales declined $0.5 million, or 2%, to $25.8 million for the three months ended September 30, 2026, compared to $26.3 million for the same corresponding period in 2025, as a 5% reduction in potash sales volumes more than offset a 3% increase in average net realized sales prices. The increase in average net realized sales price per ton was primarily driven by higher winter fill program pricing, with 2026 program prices exceeding those offered under the 2025 winter fill program by approximately $40 per ton. The favorable pricing environment continued through to the third quarter of 2026.
Potash segment byproduct sales decreased $0.6 million, or 10%, to $5.5 million for the three months ended September 30, 2026, compared to $6.2 million for the same corresponding period in 2025. The decrease resulted primarily from lower salt and brine water sales.
Freight expense recorded in the potash segment decreased 4% in the three months ended September 30, 2026, compared to the same corresponding period in 2025, primarily due to a 5% decrease in potash tons sold. Freight expense is also impacted by the geographic mix of sales, the percentage of customers arranging for and paying their own freight costs, and the relative proportion of shipments transported by rail and truck.
Potash cost of goods sold increased by $1.6 million, or 8%, to $22.7 million for the three months ended September 30, 2026, compared to $21.1 million for the same corresponding period in 2025, despite a 5% decline in potash tons sold. The increase was primarily attributable to a higher cost per ton sold resulting from a lower proportion of potash tons sold from our lowest-cost facility compared to the same corresponding period in 2025.
For the three months ended September 30, 2026, we recorded $0.2 million of lower of cost or net realizable value inventory adjustments in our potash segment, compared to $0.4 million for the same corresponding period in 2025. The 2026 adjustment was attributable to the weighted-average carrying cost per ton of certain potash inventory at our HB facility exceeding its forecasted net realizable sales value.
Our potash segment gross margin decreased $2.7 million, or 43%, to $3.6 million for the three months ended September 30, 2026, compared to $6.3 million for the same corresponding period in 2025, primarily as a result of the factors discussed above.
Nine Months Ended September 30, 2026, and 2025
Total sales in the potash segment decreased $2.0 million, or 2%, to $108.0 million for the nine months ended September 30, 2026, compared to $110.1 million for the same corresponding period in 2025, as a $3.5 million decrease in potash segment byproduct sales was partially offset by a $1.5 million increase in potash sales.
Potash sales increased $1.5 million, or 2%, to $92.9 million for the nine months ended September 30, 2026, compared to $91.4 million for the same corresponding period in 2025, as an 8% increase in average net realized sales price more than offset a 4% decrease in sales volumes. Average net realized sales prices benefited from higher potash list prices to begin 2026 relative to potash list prices to begin 2025.
Potash segment byproduct sales decreased $3.5 million, or 19%, to $15.1 million for the nine months ended September 30, 2026, compared to $18.6 million for the same corresponding period in 2025, reflecting a $2.3 million decrease in salt sales and a $1.3 million decrease in magnesium chloride sales. Mild winter weather and historically low snowfall in the western U.S. reduced demand for salt and magnesium chloride during the first quarter of 2026 and resulted in higher customer inventory levels entering the second quarter.
Potash segment freight expense decreased 12% in the nine months ended September 30, 2026, compared to the corresponding period in 2025, reflecting lower shipment volumes, including a 4% decrease in potash sales volumes and a 20% decrease in salt sales volumes. Freight expense within the potash segment is also affected by the geographic distribution of sales, the percentage of customers arranging for and paying their own freight costs, and the relative mix of rail and truck transportation.
Potash segment cost of goods sold increased $2.4 million, or 3%, to $78.9 million for the nine months ended September 30, 2026, compared to $76.5 million for the same corresponding period in 2025, despite a 4% decrease in potash tons sold. The increase was primarily attributable to higher production costs, including depreciation and depletion expense, and selling a lower proportion of potash tons from our lowest-cost facility compared to the corresponding period in 2025.
For the nine months ended September 30, 2026, we recorded lower of cost or net realizable value inventory adjustments of $1.3 million in our potash segment because the weighted average carrying cost per ton for inventoried potash products exceeded their forecasted average net realizable sales. This compares to $2.2 million in lower of cost or net realizable value inventory adjustments recorded in the same corresponding period in 2025.
Potash segment gross margin decreased $2.1 million, or 15%, to $11.6 million for the nine months ended September 30, 2026, compared to $13.6 million for the same corresponding period in 2025, due to the factors discussed above.
Additional Information Relating to Potash
The table below shows our potash sales mix for the three and nine months ended September 30, 2026, and 2025:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Agricultural | 67% | 72% | 74% | 78% | ||||||||||||||||||||||
| Industrial | 8% | 7% | 5% | 4% | ||||||||||||||||||||||
| Feed | 25% | 21% | 21% | 18% | ||||||||||||||||||||||
Trio® Segment
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| (in thousands, except per ton amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
|
Sales1
|
$ | 19,064 | $ | 18,094 | $ | 107,325 | $ | 101,148 | ||||||||||||||||||
| Less: Freight costs | 4,124 | 3,473 | 23,827 | 22,646 | ||||||||||||||||||||||
|
Warehousing and handling costs |
1,059 | 996 | 4,610 | 4,071 | ||||||||||||||||||||||
| Cost of goods sold | 8,051 | 9,255 | 46,777 | 51,541 | ||||||||||||||||||||||
| Gross Margin | $ | 5,830 | $ | 4,370 | $ | 32,111 | $ | 22,890 | ||||||||||||||||||
|
Depreciation, depletion, and amortization incurred2
|
$ | 1,038 | $ | 824 | $ | 2,989 | $ | 2,538 | ||||||||||||||||||
| Sales volumes (in thousands of tons) | 36 | 36 | 213 | 216 | ||||||||||||||||||||||
| Production volumes (in thousands of tons) | 83 | 70 | 227 | 202 | ||||||||||||||||||||||
|
Average Trio® net realized sales price per ton3
|
$ | 408 | $ | 402 | $ | 390 | $ | 362 | ||||||||||||||||||
1 Sales include sales of byproducts of $0.2 million for both the three months ended September 30, 2026, and 2025, and $0.5 million and $0.3 million for the nine months ended September 30, 2026, and 2025, respectively.
2 Depreciation, depletion, and amortization incurred excludes depreciation, depletion, and amortization amounts absorbed in or (relieved from) inventory.
3Average net realized sales price per ton is a non-GAAP financial measure. More information about this measure is below under the heading "Non-GAAP Financial Measure."
Three Months Ended September 30, 2026, and 2025
Trio® segment sales increased $1.0 million, or 5%, to $19.1 million for the three months ended September 30, 2026, compared to $18.1 million for the same corresponding period in 2025, primarily due to a $0.9 million increase in Trio® sales and a $0.1 million increase in byproduct sales. Trio® sales increased primarily due to a 1% increase in our average net realized sales price per ton from $402 to $408, reflecting continued supportive prices of the individual nutrient components of Trio®, particularly sulfate and low-chloride potassium. Trio® sales volumes were 36,000 tons in both periods.
Trio® freight costs increased $0.7 million, or 19%, to $4.1 million for the three months ended September 30, 2026, compared to $3.5 million for the same corresponding period in 2025, notwithstanding flat sales volumes. The increase was primarily driven by increased fuel surcharge expenses on rail shipments and the geographic distribution of sales. Freight expense within the Trio® segment is also impacted by the percentage of customers arranging for and paying their own freight costs.
Trio® cost of goods sold decreased $1.2 million, or 13%, to $8.1 million for the three months ended September 30, 2026, compared to $9.3 million for the same corresponding period in 2025, while Trio® sales volumes were unchanged. The decrease was primarily attributable to a favorable product mix, as a lower proportion of tons sold consisted of our premium product, which has a higher weighted-average carrying cost per ton.
Trio® segment gross margin increased to $5.8 million for the three months ended September 30, 2026, from $4.4 million for the same corresponding period in 2025, primarily reflecting higher average net realized sales price per ton and lower cost of goods sold per ton.
Nine Months Ended September 30, 2026, and 2025
Trio® segment sales increased $6.2 million, or 6%, to $107.3 million for the nine months ended September 30, 2026, compared to $101.1 million for the same corresponding period in 2025, driven by a $6.0 million increase in Trio® sales and a $0.2 million increase in byproduct sales. The increase in Trio® sales primarily reflected an 8% increase in average net realized sales price per ton due to continued supportive prices of the individual nutrient components of Trio®, particularly sulfate and low-chloride potassium. The benefit of higher pricing was partially offset by a 1% decline in sales volumes.
Trio® freight costs increased $1.2 million, or 5%, to $23.8 million for the nine months ended September 30, 2026, compared to $22.6 million for the same corresponding period in 2025, notwithstanding a 1% decline in Trio® sales volumes. The increase was primarily driven by increased fuel surcharge expenses on rail shipments and the geographic distribution of sales. Freight expense within the Trio® segment is also impacted by the percentage of customers arranging for and paying their own freight costs.
Trio® cost of goods sold decreased $4.8 million, or 9%, to $46.8 million for the nine months ended September 30, 2026, compared to $51.5 million for the same corresponding period in 2025, primarily reflecting lower sales volumes and a favorable product mix, as a lower proportion of tons sold consisted of our premium product, which has a higher weighted-average carrying cost per ton. In addition, higher production volumes improved fixed-cost absorption by spreading fixed production costs over a greater number of tons, resulting in lower production costs per ton.
Trio® segment gross margin increased $9.2 million, or 40%, to $32.1 million for the nine months ended September 30, 2026, compared to $22.9 million for the same corresponding period in 2025, primarily due to higher average net realized sales prices and lower cost of goods sold per ton, as discussed above.
Additional Information Relating to Trio®
The table below shows the percentage of Trio® tons sold into the domestic and export markets during the three and nine months ended September 30, 2026, and 2025.
| United States | Export | |||||||||||||
| For the Three Months Ended September 30, 2026 | 92% | 8% | ||||||||||||
| For the Nine Months Ended September 30, 2026 | 88% | 12% | ||||||||||||
| For the Three Months Ended September 30, 2025 | 89% | 11% | ||||||||||||
| For the Nine Months Ended September 30, 2025 | 90% | 10% | ||||||||||||
Other
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Sales | $ | 689 | $ | 274 | $ | 1,077 | $ | 1,829 | ||||||||||||||||||
| Less: Cost of goods sold | 67 | 956 | 400 | 2,710 | ||||||||||||||||||||||
| Gross Margin (Deficit) | $ | 622 | $ | (682) | $ | 677 | $ | (881) | ||||||||||||||||||
| Depreciation, depletion, and amortization incurred | $ | 567 | $ | 744 | $ | 1,704 | $ | 2,279 | ||||||||||||||||||
Three and Nine Months Ended September 30, 2026, and 2025
In March 2026, our Board approved the sale of Intrepid South, a component of our business. Intrepid South's assets and liabilities were classified as held for sale, and its results of operations are presented as discontinued operations. The sale closed on April 1, 2026, and we received gross proceeds of $70.0 million. Following customary post-closing adjustments, the final sales price was $68.9 million. As a result of the transaction, we recognized a gain on sale of Intrepid South before income taxes of $13.3 million during the nine months ended September 30, 2026. See Note 3 to the Condensed Consolidated Financial Statements for further information.
Our other category, which is not a reportable segment, includes sales of water from our Caprock water rights for the three and nine months ended September 30, 2026, and 2025. Cost of goods sold primarily consists of costs associated with selling water from our Caprock water rights, including depreciation expense related to water transportation infrastructure.
Specific Factors Affecting Our Results
Sales
Our gross sales are derived from the sales of potash, Trio®, water, salt, magnesium chloride, and brine water. Total sales are determined by the quantities of products we sell and the sales prices we realize. For potash, Trio®, and salt, we quote prices to customers both on a delivered basis and on the basis of pick-up at our plants and warehouses. We incur freight costs on most of our potash, Trio® and salt sales, but some customers arrange and pay for their own freight directly. When we arrange and pay for freight, our quotes and billings are based on expected freight costs to the points of delivery. When we calculate our potash and Trio® average net realized sales price per ton, we deduct any freight costs included in sales before dividing by the number of tons sold. We believe the deduction of freight costs provides a more representative measure of our performance in the market due to variations caused by ongoing changes in the proportion of customers paying for their own freight, the geographic distribution of our products, and freight rates. Freight rates have been increasing, and if we are unable to pass the increased freight costs on to the customer, our average net realized sales price per ton is negatively affected. We manage our sales and marketing operations centrally, and we work to achieve the highest average net realized sales price per ton we can by evaluating the product needs of our customers and associated logistics and then determining which of our production facilities can best satisfy these needs.
The volume of products we sell is determined by demand for our products and by our production capabilities. We operate our potash and Trio® facilities at production levels that approximate expected demand and consider current inventory levels and expect to continue to do so for the foreseeable future.
Cost of Goods Sold
Our cost of goods sold reflects the costs to produce our products. Many of our production costs are largely fixed and, consequently, our cost of sales per ton on a facility-by-facility basis tends to move inversely with the number of tons we produce, within the context of normal production levels. Our principal production costs include labor and employee benefits, maintenance materials, contract labor, and materials for operating or maintenance projects, natural gas, electricity, operating supplies, chemicals, depreciation and depletion, royalties, and leasing costs. Certain elements of our cost structure associated with contract labor, consumable operating supplies, reagents, and royalties are variable, but these variable elements make up a smaller component of our total cost structure. Our costs often vary from period to period based on the fluctuation of inventory, sales, and production levels at our facilities.
Our production costs per ton are also impacted when our production levels change due to factors such as changes in the grade of ore delivered to the plant, levels of mine development, plant operating performance, and downtime. Because all of our potash is produced using solar evaporation, weather has a significant impact on our potash production. We expect that our labor and contract labor costs in Carlsbad, New Mexico, will continue to be influenced most directly by the demand for labor in the local region where we compete for labor with another fertilizer company, companies in the oil and gas industry, and a nuclear waste processing and storage facility.
We pay royalties to federal, state, and private lessors under our mineral leases. These payments typically equal a percentage of sales (less freight) of minerals extracted and sold under the applicable lease. In some cases, federal royalties for potash are paid on a sliding scale that varies with the grade of ore extracted. For both the three and nine months ended September 30, 2026, our average royalty rate for potash and Trio® combined sales (less combined freight expenses) was 4.6%. For the three and nine months ended September 30, 2025, our average royalty rate for potash and Trio® sales combined (less combined freight expenses) was 4.9% and 5.0%, respectively.
Income Taxes
We are subject to federal and state income taxes on our taxable income. Our effective tax rate from continuing operations for the nine months ended September 30, 2026, was 1.0%. Our effective tax rate from continuing operations differed from the statutory rate during this period due to the valuation allowance established to offset our deferred tax assets. Our effective tax rate from continuing operations for the nine months ended September 30, 2025, was 9.0%. Our effective tax rate from continuing operations differed from the statutory rate during this period due to the valuation allowance established to offset our deferred tax assets.
Our federal and state income tax returns are subject to examination by federal and state tax authorities.
For the nine months ended September 30, 2026, we incurred $0.1 million of income tax expense from continuing operations. For the nine months ended September 30, 2025, we incurred $0.5 million of income tax expense from continuing operations.
We evaluate our deferred tax assets and liabilities each reporting period using the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax liability or asset is expected to be settled or realized. The estimated statutory income tax rates that are applied to our current and deferred income tax calculations are impacted most significantly
by the states in which we conduct business. Changing business conditions for normal business transactions and operations, as well as changes to state tax rates and apportionment laws, potentially alter our apportionment of income among the states for income tax purposes. These changes in apportionment laws result in changes in the calculation of our current and deferred income taxes, including the valuation of our deferred tax assets and liabilities. The effects of any such changes are recorded in the period of the adjustment. These adjustments can increase or decrease the net deferred tax asset on our Condensed Consolidated Balance Sheets and thus increase or decrease the deferred tax benefit or deferred income tax expense on the income statement.
As of September 30, 2026, we were in a cumulative three-year loss position. The cumulative three-year loss position is significant negative evidence when evaluating the realizability of our deferred tax assets, and we concluded that it is more likely than not that our deferred tax assets will not be realized. Thus, we continue to have a full valuation allowance as of September 30, 2026. However, if positive evidence trends, such as sustained profitability, were to continue then this conclusion could change. If we were to determine that we would be able to realize our deferred tax assets for which a valuation allowance has been recorded, then an adjustment would be made to the deferred tax valuation allowance which would result in a reduction to the provision for income taxes or the recording of an income tax benefit.
Capital Investments
During the nine months ended September 30, 2026, cash paid for property, plant, equipment, mineral properties, intangible and other assets was $24.9 million.
We expect to make capital investments in 2026 of approximately $45 million, with the majority of this being sustaining capital. We may adjust our investment plans as our expectations for 2026 change. We anticipate our 2026 operating plans and capital programs will be funded out of operating cash flows and existing cash. We may also use our revolving credit facility, to the extent available, to fund capital investments.
Liquidity and Capital Resources
As of September 30, 2026, we had cash and cash equivalents of $152.3 million, compared to $83.5 million at December 31, 2025. The increase in our cash balance during 2026 was primarily due to the sale of Intrepid South in April 2026, the proceeds of which are included in cash flows from discontinued operations, together with improved operating cash flows resulting from higher average net realized sales prices for both potash and Trio®.
Our operations have primarily been funded from cash on hand, cash generated by operations, borrowings under our revolving credit facility, and proceeds from debt and equity offerings. We continue to evaluate our expected sources and uses of cash and may modify our capital as determined by our Board. We may also seek additional liquidity through debt or equity financings, subject to market conditions and the terms of our existing revolving credit facility, although there can be no assurance that such financing will be available on acceptable terms, or at all. Based on our current cash balances, availability under our revolving credit facility, and the expected cash flows from operations, we believe we have sufficient liquidity to meet our obligations for at least the next twelve months.
The following summarizes our cash flow activity from continuing operations for the nine months ended September 30, 2026, and 2025 (in thousands):
| Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash flows provided by continuing operating activities | $ | 50,546 | $ | 37,321 | ||||||||||
| Cash flows used in continuing investing activities | $ | (39,418) | $ | (14,349) | ||||||||||
| Cash flows used in continuing financing activities | $ | (3,905) | $ | 217 | ||||||||||
Operating Activities
Net cash provided by continuing operating activities increased $13.2 million to $50.5 million for the nine months ended September 30, 2026, compared to $37.3 million for the corresponding period in 2025. The increase was primarily attributable to higher income from continuing operations and favorable changes in working capital, partially offset by other changes in noncash operating items.
Investing Activities
Net cash used in investing activities from continuing operations increased $25.1 million to $39.4 million for the nine months ended September 30, 2026, compared to $14.3 million for the same corresponding period in 2025, primarily due to higher capital expenditures and increased purchases of held-to-maturity debt investments.
Financing Activities
Net cash used in financing activities from continuing operations increased $4.1 million for the nine months ended September 30, 2026, compared to the same corresponding period in 2025. The increase was primarily attributable to $0.8 million of capitalized debt fees incurred in connection with the amendment and extension of our revolving credit facility, $0.8 million of common stock repurchases, higher payments on finance lease obligations, and higher employee tax withholding payments related to vesting of restricted stock awards.
Revolving Credit Facility-In March 2026, we and certain of our subsidiaries entered into the Successor Agent Amendment and Third Amendment to the Restated Credit Agreement (the "Third Amendment") with a syndicate of lenders, Bank of Montreal, as original administrative agent, and BMO Bank N.A., as successor administrative agent, which amended certain terms of the Amended and Restated Credit Agreement, dated August 1, 2019 (as amended, the "Credit Agreement").
Pursuant to the Third Amendment, the Credit Agreement was amended to, among other things, (i) appoint such duties, rights, and obligations of the Administrative Agent (as defined in the Credit Agreement) to BMO Bank N.A., (ii) extend the maturity date of the Credit Agreement to March 30, 2031, (iii) amend certain provisions relating to dispositions to facilitate the sale of Intrepid South, and (iv) update certain other provisions, including financial covenants, to be more favorable to the Company. The amount available under the Third Amendment remains the same at $150 million.
Borrowings under the revolving credit facility bear interest at the Secured Overnight Financing Rate ("SOFR") plus an applicable margin of 1.50% to 2.25% per annum, based on our leverage ratio as calculated in accordance with the revolving credit facility. Borrowings under the revolving credit facility are secured by substantially all of our current and non-current assets, and the obligations under the revolving credit facility are unconditionally guaranteed by several of our subsidiaries.
We occasionally borrow and repay amounts under the revolving credit facility for near-term working capital needs or other purposes and may do so in the future. During the three and nine months ended September 30, 2026, we made no borrowings and made no repayments under the revolving credit facility. During the three and nine months ended September 30, 2025, we made no borrowings and made no repayments under the revolving credit facility. As of September 30, 2026, we had no borrowings outstanding and $0.5 million in outstanding letters of credit under this facility. As of December 31, 2025, we had no borrowings outstanding and no outstanding letters of credit under this facility.
As of October 31, 2026, we had approximately $74.1 million in cash and cash equivalents, $60.8 million in short-term investments and $22.7 million in long-term investments. We had no outstanding borrowings and $0.5 million in outstanding letters of credit under the revolving credit facility, leaving $149.5 million of remaining availability.
As of September 30, 2026, we were in compliance with all applicable covenants under the revolving credit facility.
Share Repurchase Program-In February 2022, our Board of Directors approved a share repurchase program authorizing up to $35 million of repurchases of our outstanding common stock, of which approximately $13 million remained available as of March 31, 2026. In June 2026, the Board approved an increase in its existing share repurchase program, authorizing the repurchase up to $50 million of its common stock from the date of authorization. Under the share repurchase program, we may repurchase our common stock from time to time in the open market or through privately negotiated transactions. Any repurchases will be made at our discretion and will depend on market conditions, liquidity, applicable securities laws, and other factors. We may suspend or discontinue the program at any time.
For the three months ended September 30, 2026, we repurchased 21,875 shares totaling $0.8 million under the share repurchase program. Previously, we repurchased 608,657 shares totaling $22.0 million from August 2022 through December 2022. As of September 30, 2026, $49.2 million remains available for repurchases under the share repurchase program.
Critical Accounting Policies and Estimates
Our Annual Report on Form 10-K for the year ended December 31, 2025, describes the critical accounting policies that affect our more significant judgments and estimates used in the preparation of our consolidated financial statements. We have not made any significant changes to our critical accounting policies since December 31, 2025.
Non-GAAP Financial Measure
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, from time to time we use "average net realized sales price per ton," which is a non-GAAP financial measure. This non-GAAP financial measure should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, because the presentation of this non-GAAP financial measure varies among companies, our presentation of this non-GAAP financial measure may not be comparable to similarly titled measures used by other companies.
We believe average net realized sales price per ton, when used in conjunction with GAAP financial measures, provides useful information to investors for analysis of our business and operating results, enhances the overall understanding of past financial performance and future prospects, and allows for greater transparency with respect to the key metric we use in our financial and operational decision making. We use this non-GAAP financial measure as one of our tools in comparing period-over-period performance on a consistent basis and when planning, forecasting, and analyzing future periods. We believe this non-GAAP financial measure is used by professional research analysts and others in the valuation, comparison, and investment recommendations of companies in the potash mining industry. Many investors use the published research reports of these professional research analysts and others in making investment decisions.
Average Net Realized Sales Price per Ton
We calculate average net realized sales price per ton for each of potash and Trio®. Average net realized sales price per ton for potash is calculated as potash segment sales less potash segment byproduct sales and potash freight costs and then dividing that difference by the number of tons of potash sold in the period. Likewise, average net realized sales price per ton for Trio® is calculated as Trio® segment sales less Trio® segment byproduct sales and Trio® freight costs and then dividing that difference by Trio® tons sold. We consider average net realized sales price per ton to be useful, and believe it to be useful for investors, because it shows our potash and Trio® average per-ton pricing without the effect of certain transportation and delivery costs. When we arrange transportation and delivery for a customer, we include in revenue and in freight costs the costs associated with transportation and delivery. However, some of our customers arrange for and pay their own transportation and delivery costs, in which case these costs are not included in our revenue and freight costs. We use average net realized sales price per ton as a key performance indicator to analyze potash and Trio® sales and price trends.
Below is a reconciliation of average net realized sales price per ton to segment sales, the most directly comparable GAAP financial measure for the three and nine months ended September 30, 2026, and 2025:
| Three Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||
| (in thousands, except per ton amounts) | Potash |
Trio®
|
Potash |
Trio®
|
||||||||||||||||||||||
| Total Segment Sales | $ | 31,281 | $ | 19,064 | $ | 32,479 | $ | 18,094 | ||||||||||||||||||
| Less: Segment byproduct sales | 5,518 | 236 | 6,155 | 161 | ||||||||||||||||||||||
| Freight costs | 2,539 | 4,124 | 2,673 | 3,473 | ||||||||||||||||||||||
| Subtotal | $ | 23,224 | $ | 14,704 | $ | 23,651 | $ | 14,460 | ||||||||||||||||||
| Divided by: | ||||||||||||||||||||||||||
| Tons sold | 59 | 36 | 62 | 36 | ||||||||||||||||||||||
| Average net realized sales price per ton | $ | 394 | $ | 408 | $ | 381 | $ | 402 | ||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||
| (in thousands, except per ton amounts) | Potash |
Trio®
|
Potash |
Trio®
|
||||||||||||||||||||||
| Total Segment Sales | $ | 108,002 | $ | 107,325 | $ | 110,050 | $ | 101,148 | ||||||||||||||||||
| Less: Segment byproduct sales | 15,088 | 527 | 18,604 | 345 | ||||||||||||||||||||||
| Freight costs | 9,501 | 23,827 | 10,669 | 22,646 | ||||||||||||||||||||||
| Subtotal | $ | 83,413 | $ | 82,971 | $ | 80,777 | $ | 78,157 | ||||||||||||||||||
| Divided by: | ||||||||||||||||||||||||||
| Tons sold | 224 | 213 | 234 | 216 | ||||||||||||||||||||||
| Average net realized sales price per ton | $ | 372 | $ | 390 | $ | 345 | $ | 362 | ||||||||||||||||||
Intrepid Potash Inc. published this content on November 04, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on November 04, 2026 at 19:36 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]