Intrepid Potash, Inc.

Previous wording

•Water sales. In the three and nine months ended September 30, 2024, total water sales were $7.9 million and $12.7 million, respectively, compared to $2.5 million and $9.4 million during the same periods of 2023. Sales increased in the third quarter of 2024 compared to the prior year as we supplied and sourced water for a frac on our South ranch. Year-to-date water sales increased compared to the prior year due to the frac during the third quarter, offset by less water sold from our Caprock water rights as we maximize injection rates at our HB mine. We expect our water sales in the fourth quarter of 2024 will decrease towards the rates seen in the first half of 2024, as we do not forecast any frac demand on our South ranch. We continue to pursue opportunities to supply or source water for additional fracs on our South ranch, although the timing of those opportunities, if any, is uncertain.

Current wording

•Water sales. In the three months ended March 31, 2025, total water sales were $1.5 million compared to $2.2 million during the same period of 2024. Sales decreased in the first quarter of 2025 compared to the prior year as we sold less water from our Caprock water rights during the first quarter. We continue to pursue opportunities to supply or source water for additional fracs on our South ranch, although the timing of those opportunities, if any, is uncertain.

Previous wording

•Byproduct sales. We sell byproducts such as salt, magnesium chloride, brines, and water that are derived from our potash and Trio® operations. Byproduct sales were $6.7 million during the third quarter of 2024, compared to $7.0 million for the same period of 2023. Byproduct sales were $18.1 million during the first nine months of 2024, compared to $21.3 million for the same period of 2023 as increased brine sales were offset by decreased sales of magnesium chloride and water. We expect minimal, if any, byproduct sales of water for the remainder of 2024 as we continue to maximize injection rates at our HB mine.

Current wording

•Byproduct sales. We sell byproducts that are derived from our potash and Trio® operations. Byproduct sales were $6.4 million during the first quarter of 2025, compared to $5.4 million for the same period of 2024, due to increased sales of magnesium chloride and brine. Magnesium chloride sales increased $0.7 million compared to the prior year period as our customer was able to destock inventory that impacted 2024 sales volumes and return to more normal seasonal volumes in the first quarter of 2025.

Previous wording

–HB AMAX Cavern - In the third quarter of 2024, we started the permitting process to drill a sample well into the AMAX Cavern at HB in order to measure the brine chemistry of the existing cavern. AMAX is the largest cavern in the HB system and is expected to serve as an expansion area to the original HB caverns which have been in service for over ten years. We expect to finish the sample well permitting process in the first quarter of 2025 with test well drilling taking place shortly thereafter.

Current wording

–HB AMAX Cavern - We continue to work to obtain the necessary permits to drill a sample well into the AMAX Cavern to measure its brine chemistry. AMAX is the largest cavern in the HB system and is expected to become an expansion area to the original HB caverns, which have been in service for over ten years. We expect to finish the permitting process to drill the sample well in the second quarter of 2025 with construction and commissioning complete in July. The capital investment is estimated at approximately $4.5 million, with the well design also meeting the specifications needed to serve as a future extraction well.

Previous wording

Our total sales for the three months ended September 30, 2024, increased $3.1 million, or 6%, compared to the same period in 2023, as oilfield solutions segment sales increased $5.4 million and potash segment sales increased $0.8 million, partially offset by a decrease of $3.1 million in Trio® segment sales.

Current wording

Our total sales for the three months ended March 31, 2025, increased $18.5 million, or 23%, compared to the same period in 2024, as Trio® segment sales increased $13.4 million and potash segment sales increased $6.0 million, partially offset by a decrease of $0.9 million in oilfield solutions segment sales.

Previous wording

Our total potash segment sales increased $0.8 million for the three months ended September 30, 2024, compared to the same period in 2023, as potash segment byproduct sales increased $1.0 million, partially offset by a $0.3 million decrease in potash sales. During the three months ended September 30, 2024, potash segment byproduct sales increased, compared to the same period in 2023, due to an increase in brine water sales driven by continued strong demand from oil and gas operators near our facilities in New Mexico. While we sold 17% more tons of potash during the three months ended September 30, 2024, compared to the same period in 2023, our average net realized sales price per ton decreased 18%.

Current wording

Our total potash segment sales increased $6.0 million for the three months ended March 31, 2025, compared to the same period in 2024, as potash sales increased $5.0 million and potash segment byproduct sales increased $1.1 million. During the three months ended March 31, 2025, we sold 39% more tons of potash, compared to the same period in 2024, as we had more tons to sell due to increased production in 2024, although our average net realized sales price per ton decreased 21%. Potash prices at the beginning of 2025 declined compared to 2024 spring potash prices due to improved global production and supply. Potash segment byproduct sales increased, compared to the same period in 2024, due to increases in magnesium chloride and brine water sales. Our magnesium chloride sales during the three months ended March 31, 2024, were negatively impacted as our customer entered 2024 with excess inventory. Our customer sold its excess magnesium chloride inventory during 2024, and sales improved to historical rates during the three months ended March 31, 2025. Brine sales increased during the three months ended March 31, 2025, compared to the same period in 2024, driven by continued strong demand for our brines from oil and gas operators near our facilities in New Mexico.

Previous wording

Our oilfield solutions segment sales, which includes sales of water, brine water, surface use, and easements, increased $5.4 million, or 111%, in the three months ended September 30, 2024, compared to the same period in 2023, driven by a $6.8 million increase in water sales, partially offset by a $1.4 million decrease in surface use and easement revenues. Our oilfield solutions segment water revenues increased due to the completion of a large frac on Intrepid South during the third quarter of 2024. Surface use and easement revenues fluctuate based on the timing of recognizing revenue from the various performance obligations contained in the underlying agreements.

Current wording

Our oilfield solutions segment sales, which include sales of water, brine water, surface use, and easements, decreased $0.9 million, or 17%, in the three months ended March 31, 2025, compared to the same period in 2024, driven by a $0.7 million decrease in water sales and a $0.3 million decrease in surface use and easement revenues. Our oilfield solutions segment water revenues decreased during the three months ended March 31, 2025, compared to the same period in 2024, due to reduced oilfield activity on and around Intrepid South. Our surface use and easement revenues fluctuate based on the timing of recognizing revenue from the various performance obligations contained in the underlying agreements.

Previous wording

Our total byproduct sales, which are recorded in either our potash segment or Trio® segment, decreased $0.4 million in the three months ended September 30, 2024, compared to the same period in 2023, due to a decrease in byproduct water sales. We did not sell any byproduct water during the three months ended September 30, 2024, as we increased the volume of water used for injection at our HB plant and we sold fewer barrels of water from our Caprock water rights.

Current wording

Our total byproduct sales, which are recorded in either our potash segment or Trio® segment, increased $1.1 million in the three months ended March 31, 2025, compared to the same period in 2024, due to increases in magnesium chloride and brine water sales.

Previous wording

Our total cost of goods sold decreased $1.7 million during the three months ended September 30, 2024, compared to the same period in 2023, as Trio®segment cost of goods sold decreased $5.5 million, partially offset by a $3.7 million increase in our oilfield solutions cost of goods sold and a $0.1 million increase in our potash segment cost of goods sold.

Current wording

Our total cost of goods sold increased $4.4 million during the three months ended March 31, 2025, compared to the same period in 2024, as potash segment cost of goods sold increased $6.4 million, partially offset by a $1.4 million decrease in Trio®segment cost of goods sold and a $0.6 million decrease in our oilfield solutions cost of goods sold.

Previous wording

Lower of Cost or Net Realizable Value Inventory Adjustments

Current wording

Our potash segment cost of goods sold increased $6.4 million, or 25%, during the three months ended March 31, 2025, compared to the same period in 2024, as we sold 39% more tons of potash in the three months ended March 31, 2025, compared to the same period in 2024. Our potash production costs per ton decreased throughout 2024 due to increased production volumes at all our facilities. This resulted in a lower carrying cost per ton for our finished goods inventory to begin 2025, compared to 2024, improving our per ton cost of goods sold in the three months ended March 31, 2025. In addition to the increased production in 2024, we produced 7% more tons of potash during the three months ended March 31, 2025, compared to the same period during 2024, which lowered our per ton production costs. A significant portion of our production costs are fixed and an increase in the number of potash tons produced decreases our per ton production costs. Finally, lower of cost or net realizable value potash inventory adjustments recorded in previous quarters lowered our weighted average carrying cost per potash ton to begin 2025.

Previous wording

Our Trio® segment cost of goods sold decreased $2.7 million, or 5%, during the nine months ended September 30, 2024, compared to the same period in 2023, even though we sold 12% more tons of Trio®. Our Trio®cost of goods sold was positively impacted by decreases in certain production costs, such as production labor and benefits expense, as we stopped operating an additional underground shift in early 2024 at our East facility and restarted our fine langbeinite recovery process in March 2024. In addition, our beginning 2024 weighted average carrying cost per ton of our Trio®finished goods was reduced by the lower of cost or net realizable value inventory adjustment recorded in the fourth quarter of 2023. Finally, we produced 16% more tons of Trio®in the nine months ended September 30, 2024, compared to the same period in 2023, which lowered our per ton production costs. A significant portion of our production costs are fixed and an increase in the number of tons produced decreases our per ton production costs.

Current wording

Our Trio® segment cost of goods sold decreased $1.4 million, or 5%, during the three months ended March 31, 2025, compared to the same period in 2024, even though we sold 21% more tons. Our weighted average carrying cost per Trio®ton decreased during the three months ended March 31, 2025, compared to the same period in 2024, due to improved production rates throughout 2024 and decreases in production labor and maintenance costs, as we stopped operating an additional underground shift in March 2024 at our East facility. In addition, we produced 17% more tons of Trio®in the three months ended March 31, 2025, compared to the same period in 2024, which lowered our per ton production costs. A significant portion of our Trio®production costs are fixed and an increase in the number of tons produced decreases our per ton production costs.

Previous wording

In the three months ended September 30, 2024, we incurred $0.5 million of lower of cost or net realizable value inventory adjustments in our potash segment, as our weighted average carrying costs for certain potash products exceeded our expected average net realized sales price for those products. We incurred $3.4 million in lower of cost or net realizable value inventory adjustments related to potash and Trio®products in the three months ended September 30, 2023.

Current wording

In the three months ended March 31, 2025, we incurred $1.3 million of lower of cost or net realizable value inventory adjustments in our potash segment, as our weighted average carrying costs for certain potash products exceeded our expected average net realized sales price for those products. We incurred $0.5 million in lower of cost or net realizable value inventory adjustments in our potash segment in the three months ended March 31, 2024.

Previous wording

During the three months ended September 30, 2024, we generated gross margin of $7.7 million compared to gross margin of $0.5 million during the same period in 2023. As discussed above, our gross margin increased during the three months ended September 30, 2024, due to improved Trio® segment cost of goods sold and increased sales in our oilfield solutions segment.

Current wording

During the three months ended March 31, 2025, we generated gross margin of $14.6 million compared to gross margin of $6.4 million during the same period in 2024. As discussed above, our gross margin increased during the three months ended March 31, 2025, due to increased sales combined with lower per ton cost of goods sold for both potash and Trio®.

Previous wording

During the year ended December 31, 2023, we recorded an impairment related to our Trio®segment assets because the net book value exceeded the estimated fair value of the assets. The fair value of the Trio®segment assets was primarily determined using the expected proceeds received in an orderly sale of the individual assets. For any Trio®segment capital spending during the three months ended September 30, 2024, we also estimated the fair value of those assets using the expected proceeds received in an orderly sale of those new assets and recorded an impairment of $0.9 million in the three months ended September 30, 2024. We recorded a $0.5 million impairment related to our non-operating working interest in an oil and gas well during the three months ended September 30, 2023.

Current wording

During the year ended December 31, 2023, we recorded an impairment related to our Trio®segment assets because the net book value exceeded the estimated fair value of the assets. The fair value of the Trio®segment assets was primarily determined using the expected proceeds received in an orderly sale of the individual assets. For any Trio®segment capital spending during the three months ended March 31, 2025, and 2024, we also estimated the fair value of those assets using the expected proceeds received in an orderly sale of those new assets and recorded an impairment of $0.7 million and $1.4 million in the three months ended March 31, 2025, and 2024, respectively.

Previous wording

Other operating income increased $0.8 million during the three months ended September 30, 2024, compared to the same period in 2023 due to other operating income recorded related to the Third Amendment to the Cooperative Development Agreement (the "Amendment") we signed with XTO in December 2023, that became effective as of January 1, 2024. As discussed in further detail in Note 7 - Other Long-term Deferred Income to the Condensed Consolidated Financial Statements, we are recognizing as other operating income the estimated transaction price associated with the Amendment on a straight-line basis over the term of the Amendment.

Current wording

Other operating income increased $0.2 million during the three months ended March 31, 2025, compared to the same period in 2024. Other operating income in both periods reflect other operating income recognized under the Third Amendment to the Cooperative Development Agreement (the "CDA Amendment") we signed with XTO Holding, LLC and XTO Delaware Basin LLC (collectively, "XTO") in December 2023, which became effective as of January 1, 2024. As discussed in further detail in Note 7 - Other Long-term Deferred Income to the Condensed Consolidated Financial Statements, we are recognizing as other operating income the estimated transaction price associated with the CDA Amendment on a straight-line basis over the term of the Amendment.

Previous wording

We generated a net loss of $1.8 million during the three months ended September 30, 2024, compared to a net loss of $7.2 million in the same period in 2023, due to the factors discussed above.

Current wording

We generated net income of $4.6 million during the three months ended March 31, 2025, compared to a net loss of $3.1 million in the same period in 2024, due to the factors discussed above.

Previous wording

Our total sales in the potash segment increased $0.8 million in the three months ended September 30, 2024, compared to the same period in 2023, as potash segment byproduct sales increased $1.0 million, partially offset by a $0.3 million decrease in potash sales. Our potash segment byproduct sales increased due to an increase in brine sales as we sold more barrels of brine at a higher average price during the three months ended September 30, 2024, compared to the same period in 2023, due to continued robust oilfield activity near our mines in New Mexico.

Current wording

Our potash segment byproduct sales increased due to an increase in brine sales as we sold more barrels of brine during the three months ended March 31, 2025, compared to the same period in 2024, due to continued robust oilfield activity near our mines in New Mexico.

Previous wording

Potash segment freight expense increased 11% in the three months ended September 30, 2024, compared to the same period in 2023, as we sold 17% more tons of potash. Our potash freight expense is further impacted by the geographic distribution of our potash and byproduct sales and by the proportion of customers arranging for and paying their own freight costs.

Current wording

Potash segment freight expense increased 46% in the three months ended March 31, 2025, compared to the same period in 2024, as we sold 39% more tons of potash. A portion of increased sales volumes during the three months ended March 31, 2025, were to customers located farther away from our plants, compared to the same period in 2024. Our potash freight expense is impacted by the geographic distribution of our potash and byproduct sales and by the proportion of customers arranging for and paying their own freight costs.

Previous wording

During the three months ended September 30, 2024, we recorded lower of cost or net realizable value inventory adjustments of $0.5 million as our weighted average carrying cost per ton for inventoried potash products at our HB and Wendover facilities was higher than our expected average net realizable sales price per ton for those products. While potash production at our HB and Wendover facilities has improved in 2024, compared to 2023, potash production at these facilities remained below historical production levels which increased our weighted average carrying costs. A significant portion of our potash production costs are fixed and a decrease in the number of potash tons produced increases our potash production costs per ton. We recorded $1.1 million in lower of cost or net realized value inventory adjustments in the potash segment in the third quarter of 2023.

Current wording

During the three months ended March 31, 2025, we recorded lower of cost or net realizable value inventory adjustments of $1.3 million as our weighted average carrying cost per ton for inventoried potash products at our Wendover facility was higher than our expected average net realizable sales price per ton for those products. Potash production at our

Previous wording

Our potash segment gross margin increased $0.7 million in the three months ended September 30, 2024, compared to the same period in 2023, due to the factors discussed above.

Current wording

Our potash segment gross margin decreased $3.1 million in the three months ended March 31, 2025, compared to the same period in 2024, due to the factors discussed above.

Previous wording

The table below shows our potash sales mix for the three and nine months ended September 30, 2024, and 2023:

Current wording

The table below shows our potash sales mix for the three months ended March 31, 2025, and 2024:

Previous wording

Trio® segment sales increased 1% during the nine months ended September 30, 2024, compared to the same period in 2023. Trio® sales increased $4.7 million, partially offset by a decrease of $3.8 million in our Trio® segment byproduct sales. Trio® sales increased primarily due to a 12% increase in Trio® tons sold, partially offset by a 7% decrease in our average net realized sales price per ton. Sales volumes increased during the nine months ended September 30, 2024, compared to the same period in 2023, as we sold more Trio®tons into row crop markets, particularly driven by the sulfate value of Trio®. Similar to potash prices discussed above, our Trio®average net realized sales price per ton has decreased as potassium fertilizer supplies improved.

Current wording

Trio® segment sales increased 37% during the three months ended March 31, 2025, compared to the same period in 2024. Trio® sales increased $13.4 million, and our Trio® segment byproduct sales were unchanged. Trio® sales increased primarily due to a 21% increase in tons sold, combined with a 15% increase in our average net realized sales price per ton. Our average net realized sales price per ton increased during the three months ended March 31, 2025, compared to the same period in 2024, as increased sulfate prices offset lower potassium pricing to begin 2025.

Previous wording

Trio®freight costs increased 14%, as we sold 12% more Trio® tons in the nine months ended September 30, 2024, compared to the same period in 2023. Our Trio®freight expense is impacted by the geographic distribution of our Trio® sales and by the proportion of customers arranging for and paying their own freight costs.

Current wording

Trio®freight costs increased 31% during the three months ended March 31, 2025, compared to the same period in 2024, as we sold 21% more tons. Our Trio®freight expense is impacted by the geographic distribution of our Trio® sales and by the proportion of customers arranging for and paying their own freight costs.

Previous wording

Our Trio®cost of goods sold decreased 31% in the three months ended September 30, 2024, compared to the same period in 2023, as we sold 13% fewer tons. In addition, our cost of goods sold was positively impacted by decreases in certain production costs, such as production labor and benefits expense, as we moved to a reduced operating schedule at our East facility and restarted our fine langbeinite recovery process in March 2024. Finally, we produced more tons of Trio®in the three months ended September 30, 2024, compared to the same period in 2023, which lowered our per ton production costs. A significant portion of our production costs is fixed and an increase in the number of tons produced decreases our per ton production costs.

Current wording

Our Trio®cost of goods sold decreased 5% in the three months ended March 31, 2025, compared to the same period in 2024, even though we sold 21% more tons. Our cost of goods sold was positively impacted by improved production rates throughout 2024, which led to a lower carrying cost per ton for our finished goods inventory to begin 2025, and decreases in production labor and maintenance costs, as we stopped operating an additional underground shift in March 2024 at our East facility. Finally, we produced 17% more tons of Trio®in the three months ended March 31, 2025, compared to the same period in 2024, which lowered our per ton production costs. A significant portion of our production costs is fixed and an increase in the number of tons produced decreases our per ton production costs.

Previous wording

Our Trio®segment recorded gross margin of $1.6 million in the nine months ended September 30, 2024, compared to gross deficit of $1.6 million in the same period in 2023, mainly due to the decrease Trio® cost of goods sold.

Current wording

Our Trio®segment generated gross margin of $10.4 million in the three months ended March 31, 2025, compared to gross deficit of $1.1 million in the same period in 2024, mainly due to increased sales in our Trio® segment combined with an improvement in our Trio® cost of goods sold per ton.

Previous wording

During the year ended December 31, 2023, we recorded an impairment related to our Trio®segment assets because the net book value exceeded the estimated fair value of the assets. The fair value of the Trio®segment assets was primarily determined using the expected proceeds received in an orderly sale of the individual assets. For any new Trio®segment capital spending during the three months ended September 30, 2024, we also estimated the fair value of those assets using the expected proceeds received in an orderly sale of those new assets, and we recorded an additional impairment of $0.9 million. Although we have reduced capital spending at our East facility compared to prior years, we expect to incur additional capital expenditures in future periods for our Trio®segment assets that we will likely have to impair.

Current wording

During the year ended December 31, 2023, we recorded an impairment related to our Trio®segment assets because the net book value exceeded the estimated fair value of the assets. The fair value of the Trio®segment assets was primarily determined using the expected proceeds received in an orderly sale of the individual assets. For any new Trio®segment capital spending during the three months ended March 31, 2025, and 2024, we also estimated the fair value of those assets using the expected proceeds received in an orderly sale of those new assets, and we recorded an additional impairment of $0.7 million and $1.4 million, respectively. Although we have reduced capital spending at our East facility compared to prior years, we expect to incur additional capital expenditures in future periods for our Trio®segment assets that we will likely have to impair.

Previous wording

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, 2024, and 2023.

Current wording

The table below shows the percentage of Trio® tons sold into the domestic and export markets during the three months ended March 31, 2025, and 2024.

Previous wording

Gross margin for the three months ended September 30, 2024, increased $1.7 million compared to the same period in 2023, due to the factors discussed above.

Current wording

Gross margin for the three months ended March 31, 2025, decreased $0.3 million compared to the same period in 2024, due to the factors discussed above.

Previous wording

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 the three and nine months ended September 30, 2024, our average royalty rate was 5.2% and 4.9%, respectively. For the three and nine months ended September 30, 2023, our average royalty rate was 4.8% and 4.9%, respectively.

Current wording

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 the three months ended March 31, 2025, our average royalty rate for potash and Trio® combined was 4.8%. For the three months ended March 31, 2024, our average royalty rate for potash and Trio® combined was 4.9%.

Previous wording

We are subject to federal and state income taxes on our taxable income. Our effective tax rate for the nine months ended September 30, 2024, was 15.8%. Our effective tax rate differed from the statutory rate during this period primarily from the permanent difference between book and tax income for the percentage depletion deduction and the officers' compensation deduction. Our effective tax rate for the nine months ended September 30, 2023, was 54.0% which differed from the statutory rate primarily from the estimated permanent difference between book and tax income for the percentage depletion deduction and the officers' compensation deduction.

Current wording

We are subject to federal and state income taxes on our taxable income. Our effective tax rate for the three months ended March 31, 2025, was 4.1%. Our effective tax rate differed from the statutory rate during this period due to the valuation allowance established to offset our deferred tax assets. Our effective tax rate for the three months ended March 31, 2024, was 19.8% which differed from the statutory rate during this period primarily from the permanent difference between book and tax income for stock compensation.

Previous wording

For the nine months ended September 30, 2024, we incurred approximately $1.2 million of deferred income tax benefit and $0.1 million of current income tax expense. For the nine months ended September 30, 2023, we incurred income tax expense of $1.9 million.

Current wording

For the three months ended March 31, 2025, we incurred $0.2 million of income tax expense. For the three months ended March 31, 2024, we incurred income tax benefit of $0.8 million.

Previous wording

During the three and nine months ended September 30, 2024, cash paid for property, plant, equipment, mineral properties, intangible and other assets was $9.6 million and $32.6 million, respectively.

Current wording

During the three months ended March 31, 2025, cash paid for property, plant, equipment, mineral properties, intangible and other assets was $8.3 million.

Previous wording

We expect to make capital investments in 2024 of $37 million to $40 million. We anticipate spending approximately $20 million on sustaining capital in 2024 with the remainder of our estimated spending on opportunity projects, which include the completion of phase two of our new HB injection pipeline project, a new extraction well at our HB mine, and a new primary pond at our Wendover facility. We may adjust our investment plans as our expectations for 2024 change. We anticipate our 2024 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.

Current wording

We expect to make capital investments in 2025 of $36 million to $42 million, with the majority of this being sustaining capital, including the sample well at the HB AMAX cavern. We may adjust our investment plans as our expectations for 2025 change. We anticipate our 2025 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.

Previous wording

As of September 30, 2024, we had cash and cash equivalents of $38.0 million, compared to $4.1 million at December 31, 2023. The increase in our cash balance during the nine months ended September 30, 2024, was due primarily to the $45 million cash payment received in January 2024 under the cooperative development agreement and Amendment with XTO, which is included in our cash flows provided by operating activities.

Current wording

As of March 31, 2025, we had cash and cash equivalents of $45.7 million, compared to $41.3 million at December 31, 2024. The increase in our cash balance during the three months ended March 31, 2025, was due primarily to increased potash and Trio®segment sales.

Previous wording

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 monitor our future sources and uses of cash and anticipate that we may adjust our capital allocation strategies when, and as determined by our Board of Directors. We may, at any time we deem conditions favorable, attempt to improve our liquidity position by accessing debt or equity markets in accordance with our existing debt agreements. We also may attempt to raise capital in the future through the issuance of additional equity or debt securities, subject to prevailing market conditions. However, there is no assurance that we will be able to successfully raise additional capital on acceptable terms or at all. With our current cash on hand, the remaining availability under our credit facility, and the expected cash generated from operations, we believe we have sufficient liquidity to meet our obligations for the next twelve months.

Current wording

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 monitor our future sources and uses of cash and anticipate that we may adjust our capital allocation strategies when, and as determined by our Board of Directors. We may attempt to raise capital and improve our liquidity position in the future through the issuance of additional equity or debt securities, subject to prevailing market conditions and in accordance with our existing debt agreements. However, there is no assurance that we will be able to successfully raise additional capital on acceptable terms or at all. With our current cash on hand, the remaining availability under our credit facility, and the expected cash generated from operations, we believe we have sufficient liquidity to meet our obligations for the next twelve months.

Previous wording

The following summarizes our cash flow activity for the nine months ended September 30, 2024, and 2023 (in thousands):

Current wording

The following summarizes our cash flow activity for the three months ended March 31, 2025, and 2024 (in thousands):

Previous wording

Net cash provided by operating activities through September 30, 2024, was $64.9 million, an increase of $26.3 million compared with the nine months of 2023, mainly due to a $45 million cash payment received in January 2024 under the cooperative development agreement and Amendment with XTO, partially offset by the decrease in sales during the first nine months of 2024, compared to the first nine months of 2023.

Current wording

Net cash provided by operating activities through March 31, 2025, was $10.9 million, a decrease of $30.6 million compared with the three months of 2024, mainly due to a $45 million cash payment received in January 2024 under the cooperative development agreement and Amendment with XTO, partially offset by the increase in sales during the first three months of 2025, compared to the first three months of 2024.

Previous wording

Net cash used in investing activities decreased by $29.1 million in the first nine months of 2024, compared with the same period in 2023, due to a decrease in capital spending and proceeds received for the sale of water recycling equipment.

Current wording

Net cash used in investing activities decreased by $0.9 million in the first three months of 2025, compared with the same period in 2024, due to a decrease in capital spending offset by a lower amount of proceeds received for the sale of equipment.

Previous wording

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 months ended September 30, 2024, we made no borrowings and made no repayments under the revolving credit facility. During the nine months ended September 30, 2024, we made no borrowings and made $4.0 million in repayments under the revolving credit facility. During the three months ended September 30, 2023, we made $2.0 million in borrowings and made no repayments under the revolving credit facility. During the nine months ended September 30, 2023, we made $7.0 million in borrowings and made $5.0 million in repayments under the revolving credit facility. As of September 30, 2024, we had no borrowings outstanding and no outstanding letters of credit under this facility. As of December 31, 2023, we had $4.0 million in borrowings outstanding and no outstanding letters of credit under this facility.

Current wording

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 months ended March 31, 2025, we made no borrowings and made no repayments under the revolving credit facility. During the three months ended March 31, 2024, we made no borrowings and made $4.0 million in repayments under the revolving credit facility. As of March 31, 2025, and December 31, 2024, we had no borrowings outstanding and no outstanding letters of credit under this facility.

Previous wording

As of October 31, 2024, we had approximately $34.9 million in cash and cash equivalents and no borrowings under the revolving credit facility. We have $150.0 million of remaining availability under the revolving credit facility as of October 31, 2024.

Current wording

As of May 2, 2025, we had approximately $66.0 million in cash and cash equivalents and no borrowings under the revolving credit facility. We have $150.0 million of remaining availability under the revolving credit facility as of April 30, 2025.

Previous wording

Share Repurchase Program—In February 2022, our Board of Directors approved a $35 million share repurchase program. Under the share repurchase program, we may repurchase shares from time to time in the open market or in privately negotiated transactions. The timing, volume and nature of share repurchases, if any, will be at our sole discretion and will be dependent on market conditions, liquidity, applicable securities laws, and other factors. We may suspend or discontinue the share repurchase program at any time. We repurchased 608,657 shares totaling $22.0 million from August 2022 through December 2022, with approximately $13 million remaining available under the repurchase program authorization. For the nine months ended September 30, 2024, we did not repurchase any shares under the share repurchase program.

Current wording

Share Repurchase Program—In February 2022, our Board of Directors approved a $35 million share repurchase program. Under the share repurchase program, we may repurchase shares from time to time in the open market or in privately negotiated transactions. The timing, volume and nature of share repurchases, if any, will be at our sole discretion and will be dependent on market conditions, liquidity, applicable securities laws, and other factors. We may suspend or discontinue the share repurchase program at any time. We repurchased 608,657 shares totaling $22.0 million from August 2022 through December 2022, with approximately $13 million remaining available under the repurchase program authorization. For the three months ended March 31, 2025, we did not repurchase any shares under the share repurchase program.