Intrepid Potash, Inc.
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 7, 2025
IPI$32.90+4.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-06.
0001421461-25-000016
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001421461-25-000024
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 150 previous paragraphs and 186 current paragraphs.
83 unchanged; 52 reworded; 41 added; 14 removed; 1 previous and 10 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (41)
Current report
Potash prices continued to strengthen during the second quarter as increased corn acres led to strong demand across the U.S. Midwest warehouse reference prices were $370 per ton at the beginning of the second quarter and increased to $390 per ton in May 2025. In June 2025, potash summer-fill pricing was announced at $390 per ton and increased to $410 per ton shortly after the fill period ended. The response to the fill period was generally positive, with most customers placing orders for most of their third quarter needs. Pricing continues to be supported by strong agricultural demand, tightening global supply, and recent contract settlements with China and India that are supportive of U.S price levels.
Current report
•Weather Impact. After favorable weather conditions for evaporation to start to the 2025-2026 harvest year, the Carlsbad, New Mexico area where our HB facilities are located experienced above average rainfall during June and July of 2025, which has led to below average evaporation and reduced pond inventory at the end of July 2025, compared to July 2024. We expect the below average evaporation will reduce the first half 2026 production from our HB facility by approximately 20,000 tons. In response to the reduced pond inventory, we plan to shut down our HB mill for a few weeks in September to maximize potential late season evaporation. This will shift approximately 15,000 tons of 2025 production into the spring of 2026.
Current report
•HB AMAX Cavern. In July, we successfully drilled the sample well into one of the lowest sections of the AMAX mine; unfortunately, the brine pool that we anticipated encountering 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. Without AMAX brine available for 2026, we anticipate our overall brine grade into our HB pond system will be reduced. We expect this will decrease our 2026 production by approximately 25,000 tons, in addition to the weather impact discussed above.
Current report
1 Sales include sales of byproducts which were $6.2 million and $6.0 million for the three months ended June 30, 2025, and 2024, respectively, and $12.6 million and $11.4 million for the six months ended June 30, 2025, and 2024, respectively.
Current report
Our Trio®segment sales increased $6.7 million, or 25%, in the three months ended June 30, 2025, compared to the same period in 2024, as we sold 11% more tons of Trio® as we had more tons available to sell due to an increase in Trio®tons produced over the past 12 months and increased corn acres during 2025, compared to 2024, led to an increase in overall nutrient demand. Our Trio®average net realized sales price per ton increased 17% due to strong prices of the individual nutrient components of Trio®, particularly sulfate.
Current report
Our total potash segment sales increased $4.0 million during the three months ended June 30, 2025, compared to the same period in 2024, as potash sales increased $3.6 million and potash segment byproduct sales increased $0.3 million. During the three months ended June 30, 2025, we sold 25% more tons of potash, compared to the same period in 2024, as we had more tons to sell due to increased potash production over the past 12 months, partially offset by a decrease of 11% in our average net realized sales price per ton as Midwest warehouse prices during the 2025 spring season were lower and we sold a smaller percentage of our product into feed markets due to higher overall sales volumes. Potash segment byproduct sales increased during the three months ended June 30, 2025, compared to the same period in 2024, due to an increase in magnesium chloride sales. Our magnesium chloride sales during the three months ended June 30, 2024, were negatively impacted as our customer entered 2024 with excess inventory. Our customer sold its excess magnesium chloride inventory during 2024, and returned to normal seasonal volumes during the three months ended June 30, 2025.
Current report
Our potash segment cost of goods sold increased $2.0 million, or 9%, during the three months ended June 30, 2025, compared to the same period in 2024, as we sold 25% more tons of potash in the three months ended June 30, 2025, compared to the same period in 2024. Our potash production costs per ton decreased throughout 2024 and the first half of 2025 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 June 30, 2025. 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.
Current report
Our oilfield solutions cost of goods sold decreased $0.4 million, or 13%, during the three months ended June 30, 2025, compared to the same period in 2024, mainly due to reduced water sales.
Current report
Selling and Administrative Expenses
Current report
During the three months ended June 30, 2025, selling and administrative expenses increased $1.0 million, or 13%, compared to the same period in 2024, as we recorded approximately $0.6 million of severance related expenses and other professional services expenses increased $0.5 million as we used more outside consultants during the three months ended June 30, 2025.
Current report
Other Operating Expense
Current report
Other operating expense increased $1.8 million during the three months ended June 30, 2025, compared to the same period in 2024, mainly due to a $2.2 million contingent liability recorded during the three months ended June 30, 2025, for potential fines related to an unpermitted discharge at one of our facilities. See further discussion related to the unpermitted discharge in Note 14—Commitments and Contingencies to the Condensed Consolidated Financial Statements.
Current report
During the three months ended June 30, 2025, we incurred an immaterial amount of income tax expense compared to income tax benefit of $0.3 million during the same period in 2024. Since December 31, 2024, we have had a full valuation allowance recorded against our deferred tax assets.
Current report
Our total sales for the six months ended June 30, 2025, increased $27.9 million, or 20%, compared to the same period in 2024, as Trio® segment sales increased $20.0 million and potash segment sales increased $10.0 million, partially offset by a decrease of $2.1 million in oilfield solutions segment sales.
Current report
Our total potash segment sales increased $10.0 million for the six months ended June 30, 2025, compared to the same period in 2024, as potash sales increased $8.6 million and potash segment byproduct sales increased $1.4 million. During the six months ended June 30, 2025, we sold 33% more tons of potash, compared to the same period in 2024, as we had more tons to sell due to increased production in 2024 and the first half of 2025. During the six months ended June 30, 2025, our average net realized sales price per ton decreased 17% as potash list prices at the beginning of 2025 were approximately $70 per ton lower than at the beginning of 2024. List potash prices increased throughout the first and second quarters of 2025 as demand increased due to farmers planting more corn acreage in 2025, compared to 2024.
Current report
Potash segment byproduct sales increased, compared to the same period in 2024, due to increased magnesium chloride sales. Our magnesium chloride sales during the six months ended June 30, 2024, were negatively impacted as our customer entered 2024 with excess inventory. Our customer sold its excess magnesium chloride inventory during 2024, and returned to normal seasonal volumes during the six months ended June 30, 2025.
Current report
Our oilfield solutions segment sales, which include sales of water, brine water, surface use, and easements, decreased $2.1 million, or 20%, in the six months ended June 30, 2025, compared to the same period in 2024, driven by a $2.7 million decrease in water sales partially offset by a $0.6 million increase in surface use and easement revenues. Our oilfield solutions segment water revenues decreased during the six months ended June 30, 2025, compared to the same period in 2024, due to reduced oilfield activity on and around Intrepid South and decreased sales from our Caprock wells. Our surface use and easement revenues fluctuate based on the timing of recognizing revenue from the various performance obligations contained in the underlying agreements.
Current report
Our total cost of goods sold increased $6.0 million during the six months ended June 30, 2025, compared to the same period in 2024, as potash segment cost of goods sold increased $8.4 million, partially offset by decreases in Trio®segment and oilfield solutions segment cost of goods of $1.4 million, and $1.0 million, respectively.
Current report
Our oilfield solutions cost of goods sold decreased $1.0 million, or 15%, during the six months ended June 30, 2025, compared to the same period in 2024, mainly due to reduced water sales.
Current report
Gross Margin
Current report
Selling and Administrative Expenses
Current report
During the six months ended June 30, 2025, selling and administrative expenses increased $1.8 million, or 11%, compared to the same period in 2024, as we recorded approximately $0.6 million of severance related expenses, and our administrative labor and benefits expenses increased $0.6 million mainly due to an increase in base salary and bonus package provided to our CEO, who was hired in December 2024. Finally, other professional services expenses increased $0.5 million during the first six months of 2025, compared to the same period in 2024, as we used more outside consultants.
Current report
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 six months ended June 30, 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 $1.9 million and $2.2 million in the six months ended June 30, 2025, and 2024, respectively.
Current report
Other Operating Expense
Current report
Other operating expense increased $0.8 million during the six months ended June 30, 2025, compared to the same period in 2024, mainly due to a $2.2 million contingent liability recorded during the three months ended June 30, 2025, for potential fines related to an unpermitted discharge at one of our facilities. See further discussion related to the unpermitted discharge in Note 14—Commitments and Contingencies to the Condensed Consolidated Financial Statements. During the six months ended June 30, 2024, we recorded a $0.9 million contingent liability for royalties assessed by the State of New Mexico on certain water sales and $0.5 million related to various miscellaneous items.
Current report
Income Tax Expense
Current report
Net Income
Current report
1 Sales include sales of byproducts which were $6.2 million and $5.9 million for the three months ended June 30, 2025, and 2024, respectively, and $12.4 million and $11.1 million for the six months ended June 30, 2025, and 2024, respectively.
Current report
Our potash sales increased in the three months ended June 30, 2025, compared to the same period in 2024, as we sold 25% more tons of potash, partially offset by a decrease of 11% in our average net realized sales price per ton. We sold more tons of potash in the three months ended June 30, 2025, compared to the same period in 2024, as we had more potash to sell due to increased production during the second half of 2024 and the first half of 2025. Our average net realized sales price per ton decreased compared to the prior year as Midwest warehouse prices during the 2025 spring season were lower and we sold a smaller percentage of our product into feed markets due higher overall sales volumes.
Current report
Our potash segment byproduct sales increased $0.3 million during the three months ended June 30, 2025, compared to the same period in 2024, due to an increase in magnesium chloride sales. Our magnesium chloride sales during the three months ended June 30, 2024, were negatively impacted as our customer entered 2024 with excess inventory. Our customer sold its excess magnesium chloride inventory during 2024, and returned to normal seasonal volumes during the three months ended June 30, 2025.
Current report
Our total sales in the potash segment increased $10.0 million in the six months ended June 30, 2025, compared to the same period in 2024, as potash sales recorded in the potash segment increased $8.6 million and potash segment byproduct sales increased $1.4 million.
Current report
Our potash segment byproduct sales during the six months ended June 30, 2025, compared to the same period in 2024, increased $1.4 million due to an increase in magnesium chloride sales. Our magnesium chloride sales during the six months ended June 30, 2024, were negatively impacted as our customer entered 2024 with excess inventory. Our customer sold its excess magnesium chloride inventory during 2024, and returned to normal seasonal volumes during the six months ended June 30, 2025.
Current report
Our potash segment gross margin decreased $1.5 million in the six months ended June 30, 2025, compared to the same period in 2024, due to the factors discussed above.
Current report
Our Trio®cost of goods sold were virtually unchanged in the three months ended June 30, 2025, compared to the same period in 2024, even though we sold 11% more tons. Our production costs per ton improved over the past twelve months due to production increases. A significant portion of our production costs are fixed and increases in production lowers our per ton production costs.
Current report
Trio® segment sales increased 32% during the six months ended June 30, 2025, compared to the same period in 2024. Trio® sales increased $20.2 million as we sold 18% more tons, combined with a 15% increase in our average net realized sales price per ton. We sold more tons as we had more product to sell due to increased production over the past twelve months. Our average net realized sales price per ton increased during the six months ended June 30, 2025, compared to the same period in 2024, due to strong prices of the individual nutrient components of Trio®, particularly sulfate.
Current report
Trio®freight costs increased 23% during the six months ended June 30, 2025, compared to the same period in 2024, as we sold 18% 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.
Current report
Our cost of goods sold decreased $0.4 million, or 13%, in the three months ended June 30, 2025, compared to the same period in 2024, mainly due to reduced water sales.
Current report
Our oilfield solutions segment sales decreased $2.1 million in the six months ended June 30, 2025, compared to the same period in 2024, due to a $2.7 million decrease in water sales, partially offset by a $0.6 million increase in surface use and easement sales. Our water sales decreased during the six months ended June 30, 2025, due to reduced oilfield activity on and around Intrepid South and decreased sales from our Caprock wells during the six months ended June 30, 2025. Surface use and easement revenues fluctuate based on the timing of recognizing revenue from the various performance obligations contained in the underlying agreements.
Current report
Our cost of goods sold decreased $1.0 million, or 15%, in the six months ended June 30, 2025, 2025, compared to the same period in 2024, mainly due to reduced water sales.
Current report
Gross margin for the six months ended June 30, 2025, 2025, decreased $1.1 million compared to the same period in 2024, due to the factors discussed above.
Showing the first 40 of 41 passages. Open the source sections for the rest.
Removed paragraphs (14)
Previous report
In January 2025, a winter-fill agricultural potash program was announced decreasing the Midwest list price for agricultural potash by $20 per ton to $315 per ton during a one-week order window, before the list price increased back to $340 per ton in late January 2025. Subscription under the fill program was very positive, with most customers placing orders for the entirety of their first quarter needs. After the fill program and subsequent price increase, U.S. potash prices continued to trend upward, supported by strong early spring demand due to an increase in corn acres, tariff uncertainty, tightening global supply, and supportive crop commodity prices. List prices increased to $370 per ton at the end of the first quarter and we expect to realize the majority of these price increases on our agricultural sales in the second quarter.
Previous report
•Strategic Focus on our Solar Solution Mining Facilities. Key current and future projects include:
Previous report
–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 report
1 Sales include sales of byproducts which were $6.4 million and $5.4 million for the three months ended March 31, 2025, and 2024, respectively.
Previous report
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 report
Cost of Goods Sold
Previous report
Impairment Expense
Previous report
Other Operating Income
Previous report
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 report
1 Sales include sales of byproducts which were $6.3 million and $5.2 million for the three months ended March 31, 2025, and 2024, respectively.
Previous report
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 report
Impairment Expense
Previous report
Our cost of goods sold decreased $0.6 million, or 18%, in the three months ended March 31, 2025, compared to the same period in 2024, mainly due to reduced water sales.
Previous report
Cost of Goods Sold
Reworded paragraphs (52)
Previous wording
•our ability to comply with the terms of our revolving credit facility, including the underlying covenants;
Current wording
•our ability to comply with the terms of our revolving credit facility, including any underlying covenants;
Previous wording
•further write-downs of the carrying value of assets, including inventories;
Current wording
•write-downs of the carrying value of assets;
Previous wording
•Tariffs and retaliatory tariffs. In April 2025, the U.S. government announced a baseline tariff of 10% on products imported from all countries and additional tariffs based on a country's trade deficit with the United States. The announcement of tariffs has led, and may continue to lead, to retaliatory tariffs by other countries. Shortly after the announcement of tariffs, the U.S. paused a majority of the additional tariffs for 90 days, creating uncertainty regarding the extent and impact of tariffs on our business and the economy. Tariffs, or the potential for tariffs, may affect the costs and availability of raw materials, affect our customers' purchasing decisions, contribute to increases in operating costs through increases in product and equipment costs, wages, and energy, or have other related impacts to our business and the markets in which we operate.
Current wording
•Tariffs and retaliatory tariffs. In April 2025, the U.S. government announced a baseline tariff of 10% on products imported from all countries and additional tariffs based on a country's trade deficit with the United States. The announcement of tariffs has led, and may continue to lead, to retaliatory tariffs by other countries. Shortly after the announcement of tariffs, the U.S. paused a majority of the additional tariffs for 90 days, until July 9, 2025, followed by an extension of the pause through August 1, 2025. On August 1, 2025, the U.S. increased certain tariffs, including on Canadian products, among others. This activity is creating uncertainty regarding the extent and impact of tariffs on our business and the economy. Since April, certain materials, such as steel and aluminum, have been subject to increased tariff rates, regardless of country of origin, and the duration of these tariffs is unknown. The U.S continues to negotiate with trade partners on potential agreements, the outcome of which remains uncertain. For now, all products covered by the United States-Mexico-Canada Agreement (USMCA), which includes the majority, if not all, of Canadian-produced potash, remain tariff-free. Tariffs, or the potential for tariffs, may affect the costs and availability of raw materials, affect our customers' purchasing decisions, contribute to increases in operating costs through increases in product and equipment costs, wages, and energy, or have other related impacts to our business and the markets in which we operate.
Previous wording
•Potash pricing and demand. Our potash average net realized sales price per ton(1) decreased to $312 for the three months ended March 31, 2025, compared to $395 for the same period in 2024. Sales volume increased 39% in the three months ended March 31, 2025, compared to the same period in 2024, as improved production volumes during 2024 led to more tons available for sale in the spring of 2025.
Current wording
•Potash pricing and demand. Our potash average net realized sales price per ton(1) decreased to $361 for the three months ended June 30, 2025, compared to $405 for the same period in 2024, as Midwest warehouse prices during the spring season were lower compared to the same period of the prior year, and we sold a smaller percentage of our product into feed markets due to higher overall sales volumes. Our first half 2025 average net realized sales price per ton decreased to $332 compared to $399 for the same period in 2024, as pricing to begin the year was $70 per ton lower than in 2024, and we sold a smaller percentage of our product into feed markets due to higher overall sales volumes. Sales volume increased 25% and 33% in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, as improved production volumes during 2024 led to more tons available for sale in the spring of 2025.
Previous wording
•Trio® pricing and demand. Our Trio® average net realized sales price per ton(1) increased to $345 for the three months ended March 31, 2025, compared to $300 for the same period in 2024. Sales volumes in the three months ended March 31, 2025, increased 21% compared to the same period in 2024, as a tightening sulfate market, supportive agricultural commodity prices, and an acreage shift to corn in traditional Trio® markets led to strong early season demand. As a result, customers were willing to commit to the majority of their spring needs.
Current wording
•Trio® pricing and demand. Our Trio® average net realized sales price per ton(1) increased to $368 and $352 for the three and six months ended June 30, 2025, respectively, compared to $314 and $306, respectively for the same periods in 2024, as rising potash prices and higher sulfate price levels led to increased Trio® prices. Sales volumes in the three and six months ended June 30, 2025, increased 11% and 18%, respectively, compared to the same periods in 2024, due to an increase in production rates and an acreage shift to corn in traditional Trio® markets which led to strong demand throughout the first half of 2025.
Previous wording
In late January 2025, we increased our posted price for Trio® by $20 per ton to $375 per ton and we expect to realize revenue from the increased pricing on tons shipped in the second quarter of 2025. Supported by strong demand from our historic customers for second quarter deliveries and increasing potash price levels, we increased our posted price for Trio® by another $20 per ton to begin March 2025 to $395 per ton and we expect to realize revenue from this most recent price increase on spot truck and rail sales during the second quarter of 2025. Our ability to realize the increased prices may be affected by, among other things, weather, planting decisions, rail car availability, commodity price decreases, and the price and availability of other potassium products.
Current wording
Strong demand from our historic customers and rising potash prices supported Trio® price levels during the second quarter. Our posted price began the second quarter at $395 per ton and we were able to realize these prices on spot truck and rail sales during the quarter, with the full benefit of those prices levels expected to be realized in the third quarter. Pricing increased another $20 per ton in June 2025 in response to rising potash price levels. Normal seasonality in fall sulfate demand is expected to reduce Trio® pricing as we approach the fall season. Our ability to realize these prices may be affected by, among other things, weather, planting decisions, rail car availability, commodity price decreases, and the price and availability of other potassium products.
Previous 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.
Current wording
•Water sales. In the three and six months ended June 30, 2025, total water sales were $0.6 million and $2.1 million, respectively, compared to $2.6 million and $4.7 million, respectively, during the same periods of 2024. Sales decreased in 2025 compared to the prior year as we sold less water from our Caprock water rights and at our South Ranch as the market continues to trend towards more use of recycled water in oil and gas operations. 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 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.
Current wording
•Byproduct sales. We sell byproducts that are derived from our potash and Trio® operations. Byproduct sales were $6.2 million and $12.6 million during the three and six months ended June 30, 2025, respectively, compared to $6.0 million and $11.4 million, respectively, for the same periods of 2024. Byproduct sales increased in both periods compared to the prior year, due primarily to increased sales of magnesium chloride as our customer was able to destock inventory that impacted 2024 sales volumes and return to more normal seasonal volumes in the first half of 2025.
Previous wording
•Other oilfield products and services. Our revenue from brine and other oilfield products and services, excluding water, recorded in our oilfield solutions segment decreased to $2.9 million in the first quarter of 2025, compared to $3.2 million in the first quarter of 2024, due to the timing of recognizing surface use and easement revenues on our Intrepid South ranch.
Current wording
•Other oilfield products and services. Our revenue from brine and other oilfield products and services, excluding water, recorded in our oilfield solutions segment increased to $3.7 million and $6.7 million in the three and six months ended June 30, 2025, respectively, compared to $3.0 million and $6.1 million, respectively, in the same periods of 2024, due primarily to the timing of recognizing surface use and easement revenues on our Intrepid South Ranch.
Previous 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.
Current wording
Our total sales for the three months ended June 30, 2025, increased $9.4 million, or 15%, compared to the same period in 2024, as Trio® segment sales increased $6.7 million and potash segment sales increased $4.0 million, partially offset by a decrease of $1.2 million in oilfield solutions segment sales.
Previous 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.
Current wording
Our oilfield solutions segment sales, which include sales of water, brine water, surface use, and easements, decreased $1.2 million, or 22%, in the three months ended June 30, 2025, compared to the same period in 2024, driven by a $2.0 million decrease in water sales partially offset by a $0.9 million increase in surface use and easement revenues. Our oilfield solutions segment water revenues decreased during the three months ended June 30, 2025, compared to the same period in 2024, due to reduced oilfield activity on and around Intrepid South and decreased sales from our Caprock wells. 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, 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.
Current wording
Our total byproduct sales, which are recorded in either our potash segment or Trio® segment, increased $0.3 million in the three months ended June 30, 2025, compared to the same period in 2024, due to an increase in magnesium chloride sales, as discussed above.
Previous 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.
Current wording
Our total cost of goods sold increased $1.6 million during the three months ended June 30, 2025, compared to the same period in 2024, as potash segment cost of goods sold increased $2.0 million, partially offset by a $0.4 million decrease in our oilfield solutions cost of goods sold.
Previous 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.
Current wording
In the three months ended June 30, 2025, we incurred $0.4 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 $1.4 million in lower of cost or net realizable value inventory adjustments in our potash segment in the three months ended June 30, 2024.
Previous 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®.
Current wording
During the three months ended June 30, 2025, we generated gross margin of $14.3 million compared to gross margin of $7.6 million during the same period in 2024. As discussed above, our gross margin increased during the three months ended June 30, 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 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.
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 June 30, 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 $1.2 million and $0.8 million in the three months ended June 30, 2025, and 2024, respectively.
Previous 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.
Current wording
We generated net income of $3.3 million during the three months ended June 30, 2025, compared to a net loss of $0.8 million in the same period in 2024, due to the factors discussed above.
Previous wording
Our Trio®segment sales increased $13.4 million, or 37%, in the three months ended March 31, 2025, compared to the same period in 2024, as we sold 21% more tons of Trio® due to increased production rates in 2024 and the first quarter of 2025, and our Trio®average net realized sales price per ton increased 15% in the three months ended March 31, 2025, compared to the same period in 2024, as increased sulfate price levels more than offset reduced potassium prices to begin 2025, compared to the prior year period.
Current wording
Our Trio®segment sales increased $20.0 million, or 32%, in the six months ended June 30, 2025, compared to the same period in 2024, as we sold 18% more tons of Trio® because we had more inventory to sell due to increased production in 2024 and the first half of 2025, and our Trio®average net realized sales price per ton increased 15% in the six months ended June 30, 2025, compared to the same period in 2024, as increased sulfate price levels more than offset reduced potassium prices at the beginning of 2025, compared to the prior year period, and were supported by increasing potash prices during the second quarter of 2025.
Previous wording
Our oilfield solutions cost of goods sold decreased $0.6 million, or 18%, during the three months ended March 31, 2025, compared to the same period in 2024, mainly due to reduced water sales.
Current wording
Our potash segment cost of goods sold increased $8.4 million, or 18%, during the six months ended June 30, 2025, compared to the same period in 2024, even though we sold 33% more tons of potash in the six months ended June 30, 2025, compared to the same period in 2024. Our potash production costs per ton decreased throughout 2024 and the first half of 2025 due to increased production volumes at all our facilities. This resulted in a lower carrying cost per ton for our finished goods inventory sold in 2025, compared to 2024, improving our per ton cost of goods sold in the six months ended June 30, 2025. 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 at the beginning of 2025.
Previous 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.
Current wording
Our Trio® segment cost of goods sold decreased $1.4 million, or 3%, during the six months ended June 30, 2025, compared to the same period in 2024, even though we sold 18% more tons. Our weighted average carrying cost per Trio®ton decreased during the six months ended June 30, compared to the same period in 2024, due to improved production rates throughout 2024 and the first half of 2025 and a decrease in production labor costs, as we stopped operating an additional underground shift in March 2024 at our East facility. 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
During the three months ended March 31, 2025, we incurred income tax expense of $0.2 million compared to income tax benefit of $0.8 million during the same period in 2024 as we now have a full valuation allowance against our deferred tax assets.
Current wording
During the six months ended June 30, 2025, we incurred income tax expense of $0.2 million compared to income tax benefit of $1.1 million during the same period in 2024, as since December 31, 2024, we have a full valuation allowance against our deferred tax assets.
Previous wording
Our total sales in the potash segment increased $6.0 million in the three months ended March 31, 2025, compared to the same period in 2024, as potash sales recorded in the potash segment increased $5.0 million and potash segment byproduct sales increased $1.1 million.
Current wording
Our total sales in the potash segment increased $4.0 million in the three months ended June 30, 2025, compared to the same period in 2024, as potash sales recorded in the potash segment increased $3.6 million and potash segment byproduct sales increased $0.3 million.
Previous 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 cost 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 first quarter of 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.
Current wording
Our potash segment cost of goods sold increased $2.0 million, or 9%, during the three months ended June 30, 2025, compared to the same period in 2024, even though we sold 25% more tons of potash in the three months ended June 30, 2025, compared to the same period in 2024. Our potash production cost per ton decreased during the second half of 2024 and the first half of 2025 due to increased production volumes at all our facilities. Increased production resulted in a lower carrying cost per ton for our finished goods inventory to begin the second quarter of 2025, compared to 2024, improving our per ton cost of goods sold in the second quarter of 2025. 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 at our Wendover facility also lowered our weighted average carrying cost per potash ton to begin the second quarter of 2025.
Previous wording
Wendover facility remained below historical production levels, which increased our weighted average carrying costs. However, we expect potash production at Wendover to improve beginning in the fall of 2025, due to the construction of the new primary pond in Wendover that was placed in service at the end of the second quarter 2024. We recorded $0.5 million in lower of cost or net realized value inventory adjustments in the potash segment in the first quarter of 2024.
Current wording
During the three months ended June 30, 2025, we recorded lower of cost or net realizable value inventory adjustments of $0.4 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 Wendover facility remained below historical production levels, which increased our weighted average carrying costs. However, we expect potash production at Wendover to improve beginning in the fall of 2025, due to the construction of the new primary pond in Wendover that was placed in service at the end of the second quarter of 2024. We recorded $1.4 million in lower of cost or net realized value inventory adjustments in the potash segment in the second quarter of 2024.
Previous 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.
Current wording
Our potash segment gross margin increased $1.5 million in the three months ended June 30, 2025, compared to the same period in 2024, due to the factors discussed above.
Previous wording
Our potash sales increased in the three months ended March 31, 2025, compared to the same period in 2024, as we sold 39% more tons of potash, partially offset by a decrease of 21%, in our average net realized sales price per ton. Potash prices declined to start 2025, compared to 2024, as increased global production and inventory levels led to multiple prices decreases in the past twelve months. We sold more tons of potash in the three months ended March 31, 2025, compared to the same period in 2024, as we had more potash to sell due to increased production during 2024.
Current wording
Our potash sales increased in the six months ended June 30, 2025, compared to the same period in 2024, as we sold 33% more tons of potash, partially offset by a decrease of 17%, in our average net realized sales price per ton. Our average net realized sales price per ton decreased compared to the prior year as potash list prices at the beginning of 2025 were approximately $70 per ton lower than at the beginning of 2024. We sold more tons of potash in the six months ended June 30, 2025, compared to the same period in 2024, as we had more potash to sell due to increased production during the second half of 2024 and the first half of 2025.
Previous 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.
Current wording
Potash segment freight expense increased 40% in the six months ended June 30, 2025, compared to the same period in 2024, as we sold 33% more tons of potash. A portion of increased sales volumes during the six months ended June 30, 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
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.
Current wording
Our potash segment cost of goods sold increased $8.4 million, or 18%, during the six months ended June 30, 2025, compared to the same period in 2024, even though we sold 33% more tons of potash in the six months ended June 30, 2025, compared to the same period in 2024. Our potash production cost per ton decreased in 2024, due to increased production volumes at all our facilities. This resulted in a lower carrying cost per ton for our finished goods inventory as the beginning of 2025, compared to 2024, improving our per ton cost of goods sold in the six months ended June 30, 2025. In addition to the increased production in 2024, we produced 8% more tons of potash during the six months ended June 30, 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 2024 lowered our weighted average carrying cost per potash ton to begin 2025.
Previous wording
The table below shows our potash sales mix for the three months ended March 31, 2025, and 2024:
Current wording
The table below shows our potash sales mix for the three and six months ended June 30, 2025, and 2024:
Previous wording
1 Sales include sales of byproducts which were $0.2 million and $0.2 million for the three months ended March 31, 2025, and 2024, respectively.
Current wording
1 Sales include sales of byproducts which were immaterial and $0.1 million for the three months ended June 30, 2025, and 2024, respectively, and $0.2 million and $0.3 million for the six months ended June 30, 2025, and 2024, respectively.
Previous 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.
Current wording
Trio® segment sales increased 25% during the three months ended June 30, 2025, compared to the same period in 2024. Trio® sales increased $6.8 million, partially offset by a decrease of $0.1 million Trio® segment byproduct sales. Trio® sales increased primarily due to an 11% increase in tons sold, combined with a 17% increase in our average net realized sales price per ton. Our average net realized sales price per ton increased during the three months ended June 30, 2025, compared to the same period in 2024, as increased sulfate prices and strong demand drove prices higher. We sold more tons during the three months ended June 30, 2025, compared to the same period in 2024, as we had more tons to sell due to continued increased production and nutrient demand was strong as farmers planted more corn acres.
Previous 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.
Current wording
Trio®freight costs increased 11% during the three months ended June 30, 2025, compared to the same period in 2024, as we sold 11% 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®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.
Current wording
Our Trio®segment generated gross margin of $8.1 million in the three months ended June 30, 2025, compared to gross deficit of $2.2 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 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.
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 June 30, 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 $1.2 million and $0.8 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
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.
Current wording
Our Trio®cost of goods sold decreased 3% in the six months ended June 30, 2025, compared to the same period in 2024, even though we sold 18% 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. 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
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.
Current wording
The table below shows the percentage of Trio® tons sold into the domestic and export markets during the three and six months ended June 30, 2025, and 2024.
Previous wording
Our oilfield solutions segment sales decreased $0.9 million in the three months ended March 31, 2025, compared to the same period in 2024, due to a $0.7 million decrease in water sales combined with a $0.3 million decrease in surface use and easement sales. Our water sales decreased during the three months ended March 31, 2025, due to reduced oilfield activity on and around Intrepid South in the first quarter of 2025. 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 decreased $1.2 million in the three months ended June 30, 2025, compared to the same period in 2024, due to a $2.0 million decrease in water sales, partially offset by a $0.9 million increase in surface use and easement sales. Our water sales decreased during the three months ended June 30, 2025, due to reduced oilfield activity on and around Intrepid South and decreased sales from our Caprock wells during the three months ended June 30, 2025. 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
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.
Current wording
Gross margin for the three months ended June 30, 2025, decreased $0.8 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 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%.
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 June 30, 2025, our average royalty rate for potash and Trio® combined was 5.2%. For the six months ended June 30, 2025, our average royalty rate for potash and Trio® combined was 5.0%. For the three and six months ended June 30, 2024, our average royalty rate for potash and Trio® combined was 4.7%.
Previous 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.
Current wording
We are subject to federal and state income taxes on our taxable income. Our effective tax rate for the six months ended June 30, 2025, was 2.8%. 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 six months ended June 30, 2024, was 21.4% which 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 effect of state tax law changes.
Showing the first 40 of 52 pairs. Open the source sections for the rest.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
Our Trio® segment cost of goods sold was unchanged, during the three months ended June 30, 2025, compared to the same period in 2024, even though we sold 11% more tons. Our weighted average carrying cost per Trio®ton decreased during the three months ended June 30, 2025, compared to the same period in 2024, due to improved production rates throughout 2024 and the first half of 2025. 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.
Current report — wording carried from elsewhere
Consolidated Results for the Six Months Ended June 30, 2025, and 2024
Current report — wording carried from elsewhere
Lower of Cost or Net Realizable Value Inventory Adjustments
Current report — wording carried from elsewhere
In the six months ended June 30, 2025, we incurred $1.8 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 $1.9 million in lower of cost or net realizable value inventory adjustments in our potash segment in the six months ended June 30, 2024.
Current report — wording carried from elsewhere
During the six months ended June 30, 2025, we generated gross margin of $28.9 million compared to gross margin of $14.1 million during the same period in 2024. As discussed above, our gross margin increased during the six months ended June 30, 2025, due to increased sales combined with lower per ton cost of goods sold for both potash and Trio®.
Current report — wording carried from elsewhere
We generated net income of $7.9 million during the six months ended June 30, 2025, compared to a net loss of $4.0 million in the same period in 2024, due to the factors discussed above.
Current report — wording carried from elsewhere
Potash segment freight expense increased 31% in the three months ended June 30, 2025, compared to the same period in 2024, as we sold 25% more tons of potash. 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.
Current report — wording carried from elsewhere
During the six months ended June 30, 2025, we recorded lower of cost or net realizable value inventory adjustments of $1.8 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 Wendover facility remained below historical production levels, which increased our weighted average carrying costs. However, we expect potash production at Wendover to improve beginning in the fall of 2025, due to the construction of the new primary pond in Wendover that was placed in service at the end of the second quarter of 2024. We recorded $1.9 million in lower of cost or net realized value inventory adjustments in the potash segment in the first half of 2024.
Current report — wording carried from elsewhere
Our Trio®segment generated gross margin of $18.5 million in the six months ended June 30, 2025, compared to gross margin of $1.0 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.
Current report — wording carried from elsewhere
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 six months ended June 30, 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 $1.9 million and $2.2 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.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
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