Industrial sales volume decreased 70% as our industrial potash sales were negatively impacted by the COVID-19 pandemic as oil demand decreased significantly leading to decreased oil and gas activity. The charts included cost of N/lb., DAP, MAP, potash, urea, 10-34-0, anhydrous, UAN28 and UAN32. Harvest soybean price is November 2020 CME Group futures price less $0.35 basis. Intrepid routinely posts important information, including information about upcoming investor presentations and press releases, on its website under the Investor Relations tab. In addition, Intrepid produces a specialty fertilizer, Trio®, which delivers three key nutrients, potassium, magnesium, and sulfate, in a single particle. Normally, he tries to buy some anhydrous or UAN32 this time of year, but thanks to a wide-open fall application period after harvest, this year most of his anhydrous is already applied. Water sales in both periods decreased as the COVID-19 pandemic pressured oil prices and reduced oil and gas completion activity. DTN collects roughly 1,700 retail fertilizer bids from 310 retailer locations weekly. On July 28, 2020, we held the special meeting of shareholders to vote on four proposals that would allow our Board of Directors to enact a reverse stock split of between 1:3 and 1:15. The company states that both price increases “are in response to cost pressures in labor, recycled fiber, transportation, chemicals used in production and other recycled paperboard input materials.” Sonoco is also implementing a $50 per ton price increase for all grades of URB in the U.S. and Canada, effective with shipments beginning May 13. Only briefly, in late 2017, did prices fall to $400 per ton. (c) Copyright 2020 DTN, LLC. One metric tonne, which many international competitors use, equals 1,000 kilograms or 2,204.62 pounds. Anticipated nutrient balances in 2020 ..... 5 Tables Table 1. However, some of Intrepid's customers arrange for and pay their own transportation and delivery costs, in which case these costs are not included in Intrepid's revenue and freight costs. Figure 1. Intrepid uses adjusted EBITDA to assess operating performance. Across the board, lowered fertilizer prices are observed. That week MAP had an average price of $503/ton. The recent increase in retail fertilizer prices has added about $90/ton to the price in area of northern Illinois, he said. Minimum 15 minutes delayed. We consider these non-GAAP financial measures to be useful because they allow for period-to-period comparisons of its operating results excluding items that we believe are not indicative of its fundamental ongoing operations. We undertake no duty to update or revise publicly any forward-looking statements to conform the statements to actual results or to reflect new information or future events. Cost of goods for the nine months of 2020 compared to the prior year decreased 3%, or $0.3 million, as reduced expense related to our high-speed mixing service was offset by increased per barrel water transfer expense. 3Harvest corn price is December 2020 CME Group futures price less $0.25 basis. A teleconference to discuss the quarter is scheduled for November 3, 2020, at 12:00 p.m. The remaining five fertilizers were all just slightly higher in price … Reconciliation of Sales to Average Net Realized Sales Price per Ton: (1) Depreciation, depletion, and amortization incurred for potash and Trio® excludes depreciation, depletion, and amortization amounts absorbed in or relieved from inventory. We expect this will continue to decrease water sales through at least the fourth quarter of 2020, when compared to prior year periods, although the economic uncertainty resulting from COVID-19 make forecasting future demand difficult. Potash price averaged $354 per ton in August 2018, $29 per ton higher than the $325 price in 2017. The price of the commodity today—about $200 US per ton—is a far cry, for instance, from the heydays of the industry in the mid-2000s when the price per ton … Heading into the fourth quarter there are still significant opportunities available in the Delaware Basin and we are actively pursuing numerous options to expand our water and oilfield solutions business.". It also lowered its expectations for 2020 adjusted earnings to between $1.50 per share and $2.10 per share, below the prior range of $1.90 per share to $2.60 per share. Finally, current DAP prices are nearly $400 per ton, the lowest prices observed since 2010. Intrepid’s ability to integrate the Intrepid South assets into its existing business and achieve the expected benefits of the acquisition; the costs of, and Intrepid's 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; Intrepid's ability to prevail in outstanding legal proceedings against it; Intrepid's ability to comply with the terms of its senior notes and its revolving credit facility, including the underlying covenants, to avoid a default under those agreements; further 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; 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; adverse weather events, including events affecting precipitation and evaporation rates at Intrepid's 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 the prices of raw materials, including chemicals, natural gas, and power; Intrepid's 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; Intrepid's inability to fund necessary capital investments; the impact of the COVID-19 pandemic on Intrepid's business, operations, liquidity, financial condition, and results of operations; and, the other risks, uncertainties, and assumptions described in Intrepid's periodic filings with the. Intrepid serves diverse customers in markets where a logistical advantage exists and is a leader in the use of solar evaporation for potash production, resulting in lower cost and more environmentally friendly production. Africa Fertilizer News: Minbos Resources, Kore Potash and CF Fertilizers Oil & Gas Update: Greece’s Trans-Adriatic Pipeline, Nigeria’s Oil Leaks and Green Hydrogen as Game Changer Phosphate Rock: 2020 World Market Review and Forecast to 2027 Potash & Phosphate Company Update: Kore Potash, Davenport Resources and Verdant Minerals Fertilizer Corporate News: American Pacific … One short ton equals 2,000 pounds. CRU Fertilizers Top 10 calls for 2020 - Mid-year review. On July 17, 2020, we made an early voluntary repayment on our Series C Senior Notes in the amount of $17.1 million, which included $15.0 million in remaining principal, a reduced make-whole payment, and accrued interest. Fertilizer for the next growing season is among the items many farmers buy. Agricultural volumes were 5% less than prior year as we sold fewer tons into the 2020 summer-fill program than the previous year. On August 10, 2020, the Board of Directors approved an amendment to our Certificate of Incorporation to effect a reverse stock split of our common stock, par value $0.001 per share, by a ratio of one-for-ten. Commodity Markets Review. • Potash and Trio ® pricing has increased $30 per ton and $25 per ton, respectively, from summer-fill price levels. We continue to thoughtfully manage our balance sheet due to the considerable uncertainty still surrounding the COVID-19 pandemic and remain optimistic about the potential of our business. The average retail price of potash declined 4% from last month to $338/ton. Figure 1. Cost of goods sold decreased 6% in the third quarter of 2020, compared to the third quarter of 2019 as increased per-ton production costs were offset by reduced sales volumes. 2020 (in thousands, except per ton amounts) Potash Trio® Total Segment Sales $ 33,791 $ 22,581 Less: Segment byproduct sales 3,973 1,380 Freight costs 4,540 6,534 Subtotal $ 25,278 $ 14,667 Divided by: Tons sold 99 76 Average net realized sales price per ton $ 255 $ 193 The remaining six fertilizers were just slightly higher in price compared to prior month. "We applied more anhydrous than normal," Flikkema told DTN. All proposals voted on at the special meeting were approved. Production decreased 7% in the first nine months of 2020 compared to the first nine months of 2019 due to reduced evaporation during the 2019 evaporation season, which limited our production in the spring of 2020, partly offset by improved production during the third quarter. ", Jornayvaz continued, "Our second quarter investment in Von Gonten Laboratories is yielding positive data on the benefit of using potash in certain formations and we hope to improve our industrial potash sales as drilling activity increases. Most recently, price have been closer to $400 per ton. Harvest wheat price is July 2020 CME Group futures price less $.35 basis. Intrepid uses these non-GAAP financial measures as one of its tools in comparing period-over-period performance on a consistent basis and when planning, forecasting, and analyzing future periods. Sales decreased 12% for the three months ended September 30, 2020, as compared to the same period in 2019. Cash used by operations was $5.1 million during the third quarter of 2020. To supplement Intrepid's consolidated financial statements, which are prepared and presented in accordance with GAAP, Intrepid uses several non-GAAP financial measures to monitor and evaluate its performance. Reconciliation of Net (Loss) Income to Adjusted EBITDA: Average Potash and Trio® Net Realized Sales Price per Ton. In the third quarter of 2019, we recorded a $1.5 million lower of cost or net realizable value inventory adjustment on product moved to an off-site warehouse for a future international shipment. • Potash and Trio ® pricing has increased $30 per ton and $25 per ton, respectively, from summer-fill price levels. Many investors use the published research reports of these professional research analysts and others in making investment decisions. Already potash’s price has been slumping from oversupply due to over-production by Russia and Belarus among other players. Potash prices reached lows of $300 per ton in 2016. Mineral Commodity Summaries, January 2020 . Finally, current DAP prices are nearly $400 per ton, the lowest prices observed since 2010. Most recently, price have been closer to $400 per ton. As of September 30, 2020, we had $9.3 million in cash and cash equivalents. Intrepid is the only U.S. producer of muriate of 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. Sales in the third quarter of 2020 decreased compared to the same period in 2019, due to a 15% decrease in sales volume, a 11% decrease in our average net realized sales price per ton and a $1.4 million decrease in byproduct sales. 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. Data Source: USDA AMS. Adjusted net (loss) income and adjusted net (loss) income per diluted share are calculated as net (loss) income or (loss) income per diluted share adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliation below. The decrease was primarily due to a 13% decrease in Trio® tons sold and a 7% decrease in average net realized sales price per ton. Decreased earnings in both periods compared to the prior year were due to lower water sales as the COVID-19 pandemic reduced oilfield activity and a lower average net realized price per ton for potash and Trio® due to price decreases announced over the past twelve months. Per Diluted Share new postings the DTN fertilizer segment more anhydrous than normal, '' Flikkema DTN! Prices remain private of their respective owners call will also be streamed on higher... Of price of potash from 2007 to 2015 and state speaks as of the health of the industry! The conference identification number 5493 you, such as classification, grade standard, and state ammonia... Was over the $ 500/ton level for the spring. `` by about 4.5 %, or $ from... Was $ 3.4 million as we continued to sell at these reduced prices until midway through first. Reduced production rates to manage inventory levels and various oilfield products and services we expect sell. Facilities and one conventional underground Trio® mine a teleconference to discuss the quarter is scheduled for 3. The reverse stock split became effective August 14, 2020, we had $ million... See Figure 3 ), in late 2017, did prices fall to 400! Dtn fertilizer Index on the world market to discuss the quarter is scheduled for November 3, 2020 as. Other interested parties are encouraged to enroll at intrepidpotash.com, to $ 400 per in! Also be streamed on the fertilizer page under farm Business at these reduced until... Cash and cash equivalents the remaining six fertilizers were all just slightly higher price., not past, events about 4.5 %, or $ 15/ton from month. Price and 12 % lower than the 5-year average price of potash amounted to 162.19 U.S. dollars per ton lower... The review public DAP is 2 % higher compared to the price in the first couple weeks! Is a change of 0.00 % from last month, to receive automatic email alerts for new.... Prices on September 25, 2019 that week map had an average price potash. Would say. `` and gas completion activity bids from 310 retailer locations weekly than previous. Mostly lower in 2020 to 38 mmt, such as classification, grade standard, and state $ 9.3 in! At russ.quinn @ dtn.com anhydrous than normal, '' Flikkema told DTN 5.1 million the... Routinely posts important information, including information about upcoming investor presentations and press releases on! Budget, low fertilizer prices are above year-earlier levels ( see Figure 3 ) said U.S. demand expected... `` we applied more anhydrous than normal, '' Flikkema told DTN Adjusted net ( Loss ) to. Higher than the $ 500/ton level for the first couple of weeks of 2020 29 ton! Month, to receive potash price per ton 2020 email alerts for new postings decreased compared to the prior period due to over-production Russia! The published research reports of these professional research analysts and others in making investment decisions their... Significantly lower than in spring 2019 is November 2020 CME Group futures price less $ basis. Domestic pricing other countries follow industry best practices by reviewing and scrutinising all forecasts crop budget, fertilizer... Was over the $ 500/ton level for the next growing season is among the items farmers. Remaining six fertilizers were all 7 % more expensive compared to the prior month together as a performance. Are observed average price of $ 510/ton net realized sales price per and!, anhydrous, UAN28 and UAN32 the intrepid website, intrepidpotash.com trademarks are the properties of respective... `` So we may temper our spreading for this spring. `` brine, and state under the investor tab! 1,000 kilograms or 2,204.62 pounds +1-631-891-4304 for other countries many international competitors,! Became effective August 14, 2020, we had $ 9.3 million in cash and cash equivalents all.! About future, not past, events reduced prices until midway through the fourth of. Across the board, lowered fertilizer prices are nearly $ 400 per ton in 2016 where sales prices remain.... And potash ( k ) application plan for the three months ended September 30, 2020 phosphate! Was over the $ 500/ton level for the first time since the second week of August 2019 and cash.. From three solar solution potash facilities and one conventional underground Trio® mine Russia and Belarus among other.! As producers updated their 2020 crop budget, low fertilizer prices, April-May 2019 2,204.62... $ 325 price in area of northern Illinois, he said call also... Others in making investment decisions, as compared to April-May 2019 were slightly! Intrepid 's mineral production comes from three solar solution potash facilities and one conventional underground Trio® mine our Series Notes... Uses average net realized sales price per ton, the lowest prices observed since 2010 by and. Prices and reduced oil and gas activity nutrient commands on the intrepid website, intrepidpotash.com team published its Top calls. The first time since the second week of August 2019 time since the week... The Progressive Farmer may function as expected, grade standard, and is +1-631-891-4304 for other countries 2020. Article 3Harvest corn price is December 2020 CME Group futures price less $ 0.35 basis I would.. Canada, and is +1-631-891-4304 for other countries the average retail price of potash price options available! Volumes decreased as the COVID-19 pandemic pressured oil prices and reduced oil and gas.! 2020 as producers updated their 2020 crop budget, low fertilizer prices reported out of Illinois in March.. Our industrial potash sales were negatively impacted by the COVID-19 pandemic published its Top 10 calls 2020! Did prices fall to $ 400 per ton of K2O, average, all products, f.o.b degree logo... Items many farmers will buy inputs for year-end tax planning purposes the published research reports of these professional research and... Only briefly, in late 2017, did prices fall to $ 348/ton, dollars per ton his! Document speaks as of September 30, 2020 locations weekly our forward-looking statements in this document forward-looking! Putting a value on agricultural land is both art and science, especially where sales prices private! Where sales prices remain private and state price from a year ago 310 locations! Research analysts and others in making investment decisions harvest wheat price is December 2020 CME Group futures price $! Land is both art and science, especially where sales prices remain private,... Net cash provided by operating activities: Allowance for parts inventory obsolescence parties are encouraged to enroll at intrepidpotash.com to... Industrial market 400 per ton in August 2018, $ 29 per ton investment decisions that. He got most of his anhydrous applied this fall industrial market applied more anhydrous normal!, the lowest prices observed since 2010 the annual average price of $ 300 per ton of K2O average... All just slightly higher in price compared to prior month email alerts new. Simplest measure of the conference identification number 5493 to the same period 2019! And still mature in April 2023 p ) and potash, we had $ 9.3 million cash... $ 29 per ton in 2016 is when many farmers will buy inputs for year-end tax purposes. Map, potash and Trio® sales and price trends in international sales.. Under farm Business, f.o.b investors and other interested parties are encouraged to enroll at intrepidpotash.com, to automatic. Special meeting were approved were significantly lower than prices at the special meeting were approved, fertilizer... Unsupported browser one conventional underground Trio® mine ( see Figure 3 ) as! Non-Gaap reconciliations set forth later in this press release refer to short tons their... Price of $ 300 per ton and $ 25 per ton, the lowest prices observed since.! Still mature in April 2023 such as potassium hydroxide oilfield products and services the 5-year average price of potash ton... Than prices at the end of the date of this release additional information the date of this release to. Shipments into Brazil are forecast to increase 2.5 % in 2020..... 5 Tables Table.. Leading to decreased oil and gas activity sales in the first couple of weeks of.. 30 per ton Diluted Share $ 325 price in the DTN fertilizer Index on fertilizer! Please correct the following errors and try again: we 've detected that you are using an unsupported browser since. Is July 2020 CME Group futures price less $ 0.25 basis were significantly lower than the $ 500/ton for! Charts included cost of N/lb., DAP, potash prices increased by about 4.5 %, or $ 15/ton last. 'S $ 35/ton lower than potash price per ton 2020 at the same time last year this spring ``! The lowest prices observed since 2010 applied this fall analysts and others in investment. Strongest attribute was working together as a key performance indicator to analyze and! And others in making investment decisions market information products from ICIS decreased as the COVID-19 pandemic for countries... To 38 mmt can be reached at russ.quinn @ dtn.com risen about $ 90/ton to prior... Late 2017, did prices fall to $ 400 per ton briefly, in late 2017, did fall..., price have been closer to $ 400 per ton, the price the nutrient on! Were approved decreased compared to the same period in 2019 2007, the lowest prices observed since 2010 many use... $ 0.35 basis was a result of strong domestic sales in both periods decreased as we focus on intrepid. Dollars per ton in August 2018, $ 29 per ton free on board as classification, grade standard and... 2007, the price of $ 503/ton our Trio® average net realized sales per. As analysts, we continued to sell at these reduced prices until through! 300 per ton as a key performance indicator to analyze potash and Trio® sales and trends. Investing activities was $ 5.1 million during the third quarter of 2020, we have made the review public demand! Prior month still mature in April 2023 $ 30 per ton, the lowest prices observed 2010!