Slide 1: Intrepid Potash November 2024 Investor Presentation
Intrepid Potash November 2024 Investor Presentation November 2024 Investor Presentation | Published November 11, 2024 NYSE: IPI | intrepidpotash.com
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements about our future results of operations and financial position, our business strategy and plans, and our objectives for fut
Slide 3: Company Overview
Company Overview November 2024 3
Slide 4: Key Assets & Corporate Profile
Key Assets & Corporate Profile Key Strategic Priority: Increasing Potash(1) Production Key Assets Corporate Profile Wendover, UT Solar Brine Recovery Mine Key Highlights(2) • Acquired in 2004; potash is primarily produced from naturally • Corporate HQ: Denver, CO • Market Cap: $357mm occurring brine
Slide 5: Why Invest In IPI?
Why Invest In IPI? Capitalizing On Our Unique Positioning & Opportunity • Existing infrastructure helps protect this positioning; IPI owns ~88k surface acres (1) The Only Potash Producer in the United States • Proximity to key markets drives logistics, transportation, and price advantages • Results
Slide 6: Financial Results & Highlights
Financial Results & Highlights November 2024 6
Slide 7: Potash & Trio: Key Third Quarter & YTD Financial Highlights
Potash & Trio®: Key Third Quarter & YTD(1) Financial Highlights Still Seeing Solid Demand/Pricing, Continued Focus On Cost Controls & Efficiencies Potash Key Metrics Q3/24 Q3/23 y/y change (%) YTD Q3/24 YTD Q3/23 y/y change (%) Sales Volumes (in short tons) 54k 46k 17% 183k 213k (14%) (2) Average NR
Slide 8: Corporate & Oilfield Solutions: Key Third Quarter & YTD Financial Highlights
Corporate & Oilfield Solutions: Key Third Quarter & YTD(1) Financial Highlights Strong Activity in Oilfield Solutions; Goal for Continued Corporate Margin Improvement Oilfield Solutions Key Metrics Q3/24 Q3/23 y/y change ($) YTD Q3/24 YTD Q3/23 y/y change ($) Sales $10.3mm $4.9mm +$5.4mm $21.2mm $14
Slide 9: Other Key Highlights & Competitive Advantages
Other Key Highlights & Competitive Advantages Improving Potash/Trio® Unit Economics, Growing Byproduct Sales, & Lithium Upside Highlights Competitive Advantages ✓ Proximity to key markets provides logistics and transportation advantages In Q3 2024, Potash COGS/Ton Improved 14% Y/Y: Our Q3 2024 Potas
Slide 10: Capital Allocation, Outlook, & Final Takeaways
Capital Allocation, Outlook, & Final Takeaways November 2024 10
Slide 11: Capital Allocation, Catalysts, & Positioning
Capital Allocation, Catalysts, & Positioning Positioning IPI for Sustained, Long-Term Success 2024 Capital Budget: $37-$40mm Upcoming Catalysts $40mm Primary Focus is Increasing Our Potash Production: We project our annual potash >300k production will be 295-315k tons by 2026E – key for near-term re
Slide 12: Potash Production
Potash Production Key Potash Projects Have Now Been Commissioned(1) Potash Production Overview Higher Potash Prod. Supported by Long-Life Reserves/Resources Solution Mining Production Cycle Good evaporation and strong start to prod. season in summer ‘24 is shifting ~15k tons from ‘25 to ‘24 #1 Maxim
Slide 13: December 2023 Agreement with XTO
December 2023 Agreement with XTO $50mm Additional Guaranteed & Up To An Additional $100mm In Potential Payments Key Takeaways We Closely Monitor XTO Cooperative Development Agreement Third Amendment Highlights #1 Development Activity in the DPA Parties in the Agreement • Intrepid Potash Inc./Intrepi
Slide 14: Constructive Outlook for Global Potash Market
Constructive Outlook for Global Potash Market Pricing Support from Global Demand Returning to Trendline Growth Long-Term Potash Demand Getting Back to Trendline Growth of ~2% CAGR Global Supply Still Faces Risks & Heavily Reliant on Eastern European Tons 100.0 Global potash market is susceptible to
Slide 15: Strength in Key International Crop Futures, Corn/Soybeans at Historical Levels
Strength in Key International Crop Futures, Corn/Soybeans at Historical Levels ~70% of Global Potash Is Applied to Non-Corn/Soybeans Crops Palm Oil(1) & Rice Cocoa & Coffee Corn & Soybeans Current vs. 10-year avg.: +53% Current vs. 10-year avg.: +140% Current vs. 10-year avg.: -8% Current vs. ‘14-’1
Slide 16: Moderating Input Costs Helping Offset Lower Crop Pricing
Moderating Input Costs Helping Offset Lower Crop Pricing U.S. Farmer’s Forecast to See Lower Break-Even Prices(1) Corn & Soybeans Break-Even Price-to-Cover Trending Lower Fertilizer Percentage of U.S. Farmer Costs Also Trending Lower 2023 2024E 2025E $11.65 $11.31 $12.00 $11.05 40% 2023 2024E 2025E
Slide 17: U.S. Farmers In Solid Financial Position Ahead of Tougher Agriculture Outlook
U.S. Farmers In Solid Financial Position Ahead of Tougher Agriculture Outlook MOP Demand Was Resilient During Last Period of Moderating U.S. Farmer Incomes Strong Financial Positioning for U.S. Farmers In Recent Period of Moderating U.S. Farm Incomes, MOP Demand Was Resilient $5,000 20% 10.0 $140 9.
Slide 18: Final Takeaways
Final Takeaways Focused On Getting Appropriate Value Back In the Equity • We are improving our unit economics by means of higher potash production Increasing Potash Production is #1 Focus • Building to approximately 295-315k tons of annual production for 2026E • Key projects started two years ago no
Slide 19: Appendix
Appendix November 2024 19
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations (the tables are in thousands unless otherwise stated) Adjusted EBITDA Q3/23 Q3/24 YTD Q3/23 YTD Q3/24 Net (Loss) ($7,196) Net (Loss) ($1,833) Net (Loss) $1,615 Net (Loss) ($5,796) Impairment of long-lived assets 521 Impairment of long-lived assets 874 Impairment of long-live
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations (the tables are in thousands unless otherwise stated) Average Net Realized Sales Price ("NRSP") per Ton Cost of Goods Sold ("COGS") per Ton Potash Q3/23 Q3/24 YTD Q3/23 YTD Q3/24 Potash Q3/23 Q3/24 YTD Q3/23 YTD Q3/24 Total Segment Sales $27,602 $28,356 $127,363 $95,966 COGS