Intrepid Potash, Inc.
For the period ended Jun 30, 2026. Filed Aug 5, 2026.
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, 2026 · Filed Aug 5, 2026
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 2026-03-31; filed 2026-05-07.
0001421461-26-000014
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001421461-26-000021
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 152 previous paragraphs and 194 current paragraphs.
87 unchanged; 40 reworded; 64 added; 25 removed; 0 previous and 3 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 (64)
Current report
•the impact of global conflicts including the conflict involving Iran and the blockage of the Strait of Hormuz;
Current report
•the timing, amount and impact of any repurchases under our stock repurchase program;
Current report
We owned certain land, water rights, federal grazing leases, and other related assets in southeast New Mexico, which we collectively referred to as "Intrepid South." Intrepid South generated revenue primarily from sales of various oilfield-related products and services, including water, brine, surface use and right-of-way agreements, a produced water royalty agreement, and caliche.
Current report
In March 2026, our Board of Directors ("Board") approved the sale of Intrepid South, and we determined that the business met the criteria for classification as held for sale and discontinued operations. We received aggregate consideration of $70.0 million related to the transaction, consisting of an $8.0 million deposit received in December 2025 and a $62.0 million payment received at closing on April 1, 2026. Following customary adjustments and the satisfaction of closing conditions, the final sales price was $68.9 million. As a result of the transaction, we recorded a gain on sale in discontinued operations, net of taxes, of $13.2 million during the three months ended June 30, 2026.
Current report
We currently have two reportable segments: potash and Trio®. Through December 31, 2025, our oilfield solutions segment was also a reportable segment. Following the sale of Intrepid South, the oilfield solutions segment is no longer reported as a reportable segment, and all prior-period segment disclosures presented in this Quarterly Report on Form 10-Q have been recast to conform to the current presentation.
Current report
•Sale of Intrepid South. In March 2026, our Board of Directors approved the sale of Intrepid South, a component of our business. Intrepid South's assets and liabilities were classified as held for sale, and its results of operations are presented as discontinued operations. On April 1, 2026, we completed the sale of Intrepid South and received gross proceeds of $70.0 million. Following customary adjustments and the satisfaction of closing conditions, the final sales price was $68.9 million. We recorded a gain on sale in discontinued operations, net of tax, of $13.2 million during the three months ended June 30, 2026.
Current report
•Tariffs and tensions in the Middle East. The operating environment continues to be affected by evolving trade policies, including tariffs, together with heightened geopolitical tensions in the Middle East. These developments have contributed to higher input costs, increased freight and logistics expenses, volatility in energy markets, supply chain disruptions and broader macroeconomic uncertainty.
Current report
•Potash pricing and demand. Our average net realized potash sales price per ton(1) increased to $391 for the three months ended June 30, 2026, from $361 for the same period in 2025, primarily reflecting a higher percentage of sales into feed markets. Potash sales volumes declined 14% compared to the corresponding period in 2025 as demand weakened during the latter half of the quarter amid economic uncertainty resulting from global geopolitical events.
Current report
Our average net realized sales price per ton increased to $365 for the six months ended June 30, 2026, from $332 for the corresponding period in 2025. Winter fill program pricing for 2026 was $355 per ton, compared to $315 per ton for the 2025 program. Following the successful completion of the winter fill program, list prices increased by $20 per ton in late January 2026 and by an additional $10 per ton in late April. In June 2026, we launched a summer fill program at $385 per ton, with list prices increasing to $395 per ton upon completion of the program. Customer participation in the summer fill program was good, with customers placing orders covering a considerable portion of their third quarter needs. Potash pricing continues to be supported by healthy agricultural demand, balanced global supply fundamentals, and the recent India contract settlement, which is supportive of U.S. market prices.
Current report
Our Trio® average net realized sales price per ton increased to $388 during the six months ended June 30, 2026, from $352 in the corresponding period in 2025, reflecting continued favorable market pricing for the individual nutrient components of Trio®, particularly sulfate and potassium.
Current report
•Byproduct sales. We sell byproducts that are derived from our potash and Trio® operations. Byproduct sales were $5.4 million and $9.9 million, respectively, during the three and six months ended June 30, 2026, compared to $6.2 million, and $12.6 million, respectively, for the same periods of 2025. Byproduct sales decreased in both periods in 2026, compared to 2025, due to lower sales of salt and magnesium chloride.
Current report
Byproduct sales of salt and magnesium chloride during the three months and six months ended June 30, 2026, were negatively impacted by the mild winter and historically low snowfall levels across the western U.S., which reduced demand for deicing products and resulted in higher customer inventory levels entering the second quarter. These elevated inventory levels adversely affected shipments during the early part of the second quarter.
Current report
1 Sales include sales of byproducts which were $5.4 million and $6.2 million for the three months ended June 30, 2026, and 2025, respectively, and $9.9 million and $12.6 million for the six months ended June 30, 2026, and 2025, respectively.
Current report
Our total potash segment sales decreased $3.4 million during the three months ended June 30, 2026, compared to the same period in 2025. The decrease was driven by a $2.5 million decline in potash sales and a $0.8 million decline in potash segment byproduct sales. The decline in potash sales was primarily due to a 14% decrease in tons of potash sold, partially offset by an 8% increase in our average net realized sales price per ton for potash. Potash tons sold decreased compared to the prior-year period as grower sentiment was pressured by the economic effects of global geopolitical events and incremental demand softened during the latter half of the quarter.
Current report
Our Trio®segment sales increased $2.5 million, or 8%, in the three months ended June 30, 2026, compared to the same period in 2025. The increase was driven by a $2.5 million increase in Trio®sales, while Trio®segment byproduct sales were flat. Trio®sales increased due to an increase of 6% in our Trio®average net realized sales price per ton, compared to the same period in 2025, driven by continued supportive pricing for the individual nutrient components of Trio®, particularly sulfate and potassium. Trio®sales volumes were unchanged compared to the prior-year period.
Current report
Our total byproduct sales, which are recorded in either our potash segment or Trio® segment, decreased $0.8 million in the three months ended June 30, 2026, compared to the same period in 2025. The decrease was driven by a $1.0 million decline in salt sales and a $0.6 million decline in magnesium chloride sales, partially offset by a $0.8 million increase in brine sales. Salt and magnesium chloride sales decreased primarily because mild winter weather and historically low snowfall in the western U.S. resulted in customers beginning the second quarter with higher on-hand inventory levels. Brine sales increased due to increased oilfield activities near our mining facilities in New Mexico.
Current report
Our potash segment cost of goods sold decreased $2.0 million, or 9%, during the three months ended June 30, 2026, compared to the same period in 2025, primarily due to a 14% decrease in tons of potash sold. In addition, potash tons produced increased 17% compared to the prior-year period. Because a significant portion of our potash production costs are fixed, higher production volumes decreased our per-ton production costs and lowered our weighted-average carrying cost per ton sold.
Current report
Our Trio® segment cost of goods sold decreased 12% during the three months ended June 30, 2026, compared to the same period in 2025, primarily due to a lower Trio® weighted average carrying cost per ton sold. The decrease in weighted average carrying cost per ton sold was primarily driven by the mix of products sold as we sold fewer premium tons, which have a higher weighted-average carrying cost. In addition, Trio® production volume was 7% higher during the three months ended June 30, 2026, compared to the same period in 2025, due to the new continuous miner commissioned in early 2026, and ongoing plant optimization projects.
Current report
Selling and administrative expenses increased $1.1 million during the three months ended June 30, 2026, compared to the corresponding period in 2025. The increase was primarily driven by higher bonus expense of $0.5 million, employee safety awards of $0.3 million, and increased professional services expense of $0.2 million. The increase in bonus expense reflected stronger performance relative to the metrics underlying incentive compensation programs, while the employee safety awards recognized the Company's outstanding safety record in 2025. Professional services expense increased due to greater use of external consultants.
Current report
Net Income from Continuing Operations
Current report
Consolidated Results for the Six Months Ended June 30, 2026, and 2025
Current report
Our total sales increased $3.3 million, or 2%, during the six months ended June 30, 2026, compared to the same period in 2025. The increase was driven by a $5.2 million increase in Trio® segment sales, partially offset by a $0.9 million decrease in potash segment sales and a $1.1 million decrease in water sales. As discussed above, following the sale of Intrepid South, we no longer report oilfield solutions as a reportable segment.
Current report
Our total potash segment sales decreased $0.9 million during the six months ended June 30, 2026, compared to the same period in 2025. Potash segment byproduct sales decreased $2.9 million, primarily due to mild winter weather during the first quarter of 2026, which resulted in customers beginning the second quarter of 2026 with higher inventory levels. The decrease in potash segment byproduct sales was partially offset by a $2.0 million increase in potash, driven primarily by a 10% increase in our potash average net realized sales price per ton, as potash list prices to begin 2026 were higher than to begin 2025. The increase in potash sales was partially offset by 4% decrease in tons of potash sold.
Current report
For the six months ended June 30, 2026, total cost of goods sold decreased $4.2 million compared to the same period in 2025. This decrease was primarily driven by a $3.6 million decrease in Trio® segment cost of goods sold and a $1.4 million decrease in other nonreportable segment cost of goods sold, partially offset by a $0.7 million increase in potash segment cost of goods sold.
Current report
Cost of goods sold in the Trio® segment decreased 8% for the six months ended June 30, 2026, compared to the same period in 2025. This decrease was driven primarily by a 3% decline in Trio® sales volumes and a decline in Trio® weighted average carrying cost per ton sold. The decrease in weighted average carrying cost per ton sold was primarily driven by the mix of products sold as we sold fewer premium tons, which have a higher weighted-average carrying cost. In addition, Trio® production volume was 9% higher during the six months ended June 30, 2026, compared to the same period in 2025, due to the new continuous miner commissioned in early 2026 and ongoing plant optimization projects. Because a significant portion of our Trio® production costs are fixed, higher production volumes decreased our per-ton production costs and lowered our weighted-average carrying cost per ton sold.
Current report
Cost of goods sold in the potash segment increased $0.7 million, or 1%, during the six months ended June 30, 2026, compared to the corresponding period in 2025, notwithstanding a 4% decline in potash sales volumes. This increase was primarily attributable to higher production costs, including depreciation and depletion expense.
Current report
During the six months ended June 30, 2026, we recorded $1.1 million of lower of cost or net realizable value inventory adjustments in our potash segment, compared to $1.8 million during the corresponding period in 2025. These adjustments were recorded because the weighted-average carrying cost of certain potash products exceeded their estimated net realizable value.
Current report
Gross Margin
Current report
During the six months ended June 30, 2026, gross margin increased by $8.6 million to $34.3 million, compared to $25.7 million during the corresponding period in 2025. The increase was primarily driven by higher average net realized sales prices per ton for both potash and Trio®.
Current report
Selling and Administrative Expenses
Current report
During the six months ended June 30, 2026, selling and administrative expenses increased $3.2 million compared to the corresponding period in 2025. The increase was primarily driven by a $1.4 million increase in severance related costs, a $1.4 million increase in professional services, and a $0.7 million increase in bonus expense, partially offset by a decrease in legal fees. The increase in professional services expense reflected greater use of external consultants, while the increase in bonus expense was attributable to stronger performance relative to the metrics underlying the bonus program.
Current report
Impairment Expense
Current report
No impairment expense was recognized during the six months ended June 30, 2026. During the corresponding period in 2025, we recognized impairment expense of $1.9 million related to certain assets within our Trio®segment. The fair value of these assets was estimated using the expected proceeds received in an orderly sale of the assets.
Current report
Discontinued Operations
Current report
In March 2026, our Board approved the sale of our Intrepid South business. The transaction closed on April 1, 2026, and we received gross proceeds of $70 million. Following customary post-closing adjustments and the satisfaction of closing conditions, the final sales prices was $68.9 million. As result of the transaction, we recognized a gain on sale in discontinued operations, net of taxes, of $13.2 million during the six months ended June 30, 2026. See Note 3 to the Condensed Consolidated Financial Statements for further information.
Current report
Income Tax Expense
Current report
Income tax expense from continuing operations was approximately $0.1 million during each of the six months ended June 30, 2026, and 2025. Since December 31, 2024, we have maintained a full valuation allowance against our deferred tax assets.
Current report
Net Income from Continuing Operations
Current report
Net income from continuing operations was $9.3 million during the six months ended June 30, 2026, compared to $4.8 million for the corresponding period in 2025. The increase was primarily driven by the factors discussed above.
Current report
1 Sales include sales of byproducts which were $5.4 million and $6.2 million for the three months ended June 30, 2026, and 2025, respectively, and $9.6 million and $12.4 million for the six months ended June 30, 2026, and 2025, respectively.
Showing the first 40 of 64 passages. Open the source sections for the rest.
Removed paragraphs (25)
Previous report
Historically, we had three segments: potash, Trio®, and oilfield solutions. Our oilfield solutions segment included the results from Intrepid South. In March 2026, our Board of Directors ("Board") approved the sale of the Intrepid South business, and Intrepid South assets and liabilities met the criteria to be classified as held for sale. The Intrepid South property generated revenue from sales of various oilfield related products and services, including but not limited to, water, brine, surface use and right-of-way agreements, a produced water royalty agreement, and caliche. We determined that the planned sale of Intrepid South represented a strategic shift having a major effect on our operations and financial results and therefore met the criteria for classification as discontinued operations in all periods presented. Because we are presenting the sale of Intrepid South as discontinued operations, our oilfield solutions segment is no longer considered a reportable segment. On April 1, 2026, we closed on the sale of Intrepid South. We received $70 million in total from the buyer, with an $8 million deposit received in December 2025 and the remaining $62 million received on April 1, 2026. The $70 million payment received is subject to customary adjustments and closing conditions determined within 120 days of the closing date.
Previous report
•Sale of Intrepid South. In March 2026, our Board approved the sale of Intrepid South, a component of our business. On April 1, 2026, we closed on the sale of Intrepid South and received $70 million, subject to customary adjustments and closing conditions determined within 120 days of the closing date. This sale included land, water rights and operational agreements and represents a strategic shift that will have a major effect on our operations and financial results. Accordingly, we are presenting Intrepid South in discontinued operations.
Previous report
Intrepid South operations included revenues from source water sales, sales of brines, surface use and easement agreements and a produced water royalty. Total annual sales reported at Intrepid South were $12.5 million and $18.9 million for 2025, and 2024, respectively, which represent approximately 80% of the total sales reported in the oilfield solutions segment during those two years. Total cost of goods sold at Intrepid South were $13.0 million and $8.6 million in 2024 and 2025, respectively, and represent approximately 75% of the total cost of sales reported in the oilfield solutions segment in those two years.
Previous report
Given Intrepid South's portion of the oilfield solutions total sales and total cost of goods sold, our oilfield solutions segment is no longer considered a reportable segment.
Previous report
•Tariffs and retaliatory tariffs. Since February 2025, the U.S. government has announced, implemented, modified, paused, and/or terminated various tariff measures, including “reciprocal” tariffs on imports from most countries, the so-called “trafficking” tariffs on imports from Canada, Mexico and China, and a number of new or modified tariffs on imports of specific classes of products (including, but not limited to, steel, aluminum, and copper) under Section 232 of the Trade Expansion Act of 1962.
Previous report
Imports from Canada and Mexico that meet the origin rules of the United States-Mexico-Canada Agreement (USMCA), are presently exempt from the “reciprocal” and “trafficking” tariffs, but not the Section 232 tariffs. However the status of this exemption is uncertain, and the USMCA itself may be subject to renegotiation. Other countries and customs unions, including the United Kingdom, European Union, and Japan, have negotiated separate trade agreements with the U.S. resulting in lower tariffs that would have otherwise applied. However, these agreements are also subject to further negotiation.
Previous report
The U.S. also continues to negotiate with additional trade partners on potential agreements, the outcome of which remains uncertain. These tariffs and other announcements has led, and may continue to lead, to retaliatory tariffs by other countries. This activity is creating uncertainty regarding the extent and impact of tariffs on our business and the economy in general. 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 on our business and the markets in which we operate.
Previous report
We saw good subscription under the winter fill program with customers placing orders for the majority of their first quarter needs. Following the conclusion of the winter fill program, prices increased $20 per ton to a list price of $375 per ton. We expect to realize most of the post fill price increase on our agricultural sales in the second quarter. Good spring demand and firm global potash values underpin a balanced supply and demand outlook that is supportive of U.S. potash values as evidenced by a $10 per ton increase to list prices in early May.
Previous report
•Byproduct sales. We sell byproducts that are derived from our potash and Trio® operations. Byproduct sales were $4.5 million during the three months ended March 31, 2026, compared to $6.4 million, for the same period of 2025. Byproduct sales of salt and magnesium chloride during the three months ended March 31, 2026, were negatively impacted by the mild winter and historically low snowfall levels in the western U.S. Byproduct sales of brines during the three months ended March 31, 2026, were negatively impacted by less oil and gas drilling activity near our Carlsbad, New Mexico facilities compared to the same period in 2025. Oil and gas operators source their brine sales from locations nearest their activities to minimize transportation costs.
Previous report
1 Sales include sales of byproducts which were $4.5 million and $6.4 million for the three months ended March 31, 2026, and 2025, respectively.
Previous report
Our total potash segment sales increased $2.5 million during the three months ended March 31, 2026, compared to the same period in 2025, as potash sales increased $4.7 million, partially offset by a $2.1 million decrease in potash segment byproduct sales. During the three months ended March 31, 2026, our potash average net realized sales price per ton increased 13% combined with a 2% increase in tons of potash sold. Our average net realized sales price per ton increased during the three months ended March 31, 2026, compared to the same period in 2025, as the 2026 winter fill program prices were $40 per ton higher than the 2025 winter fill program prices.
Previous report
Cost of Goods Sold
Previous report
Our potash segment cost of goods sold increased $2.8 million, or 9%, during the three months ended March 31, 2026, compared to the same period in 2025, as we sold 2% more tons of potash in the three months ended March 31, 2026, compared to the same period in 2025. In addition, we incurred increased depreciation expense and potash royalties during the three months ended March 31, 2026, compared to the same period in 2025.
Previous report
Our Trio® segment cost of goods sold decreased 6% during the three months ended March 31, 2026, compared to the same period in 2025, mainly due to selling 4% fewer tons. In addition, our weighted average carrying cost per Trio®ton beginning 2026 was less than our weighted average carrying cost per Trio®ton beginning 2025, due to improved Trio® production volumes during the second 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.
Previous report
During the three months ended March 31, 2026, selling and administrative expenses increased $2.1 million compared to the same period in 2025, as we incurred $1.4 million in severance related costs and professional services fees increased $1.1 million as we used more outside consultants, partially offset by decreases in legal and stock compensation expenses.
Previous report
Net Income
Previous report
1 Sales include sales of byproducts which were $4.2 million and $6.3 million for the three months ended March 31, 2026, and 2025, respectively.
Previous report
Our potash sales increased in the three months ended March 31, 2026, compared to the same period in 2025, as we sold 2% more tons of potash combined with an increase of 13% 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, 2026, compared to the same period in 2025, as the 2026 winter fill program prices were $40 per ton higher than the 2025 winter fill program prices.
Previous report
Our potash segment byproduct sales decreased $2.1 million during the three months ended March 31, 2026, compared to the same period in 2025, as salt sales decreased $0.8 million, magnesium chloride sales decreased $0.6 million, and brine sales decreased $0.6 million. Mild winter weather and historically low snowfall in the western U.S. decreased demand for both salt and magnesium chloride deicing products during the three months ended March 31, 2026, compared to the same period in 2025. Less oil and gas drilling activity near our Carlsbad, New Mexico facilities during the three months ended March 31, 2026, compared to the same period in 2025, led to decreased brine sales.
Previous report
Potash segment freight expense decreased 5% in the three months ended March 31, 2026, compared to the same period in 2025, even though we sold 2% more tons of potash. Our potash freight expense is impacted by the geographic distribution of our potash and byproduct sales, by the proportion of customers arranging for and paying their own freight costs and the mix of sales shipped via rail and truck.
Previous report
Our potash segment cost of goods sold increased $2.8 million, or 9%, during the three months ended March 31, 2026, compared to the same period in 2025, as we sold 2% more tons of potash in the three months ended March 31, 2026, compared to the same period in 2025. In addition, we incurred increased depreciation expense and potash royalties during the three months ended March 31, 2026, compared to the same period in 2025.
Previous report
In March 2026, our Board approved the sale of our Intrepid South business. As of March 31, 2026, we determined the Intrepid South business met the criteria for held for sale and discontinued operations. The financial results from the Intrepid South business were included in and represented the majority of activity in our oilfield solutions segment. The sale of Intrepid South closed on April 1, 2026, and we received $70 million, subject to normal adjustments to be determined within 120 days of the sale closing. Because the sale of our Intrepid South business is classified as discontinued operations, our oilfield solutions segment is no longer considered a reportable segment. See Note 3 to the Condensed Consolidated Financial Statements for further information.
Previous report
Cost of Goods Sold
Previous report
Net cash provided by operating activities through March 31, 2026, was $21.3 million, an increase of $12.3 million compared with the first three months of 2025, mainly due to the increase in sales during the first three months of 2026, compared to the same period in 2025.
Previous report
Net cash used in investing activities decreased by $2.0 million in the first three months of 2026, compared with the same period in 2025, due to a decrease in capital spending partially offset by a decrease in cash proceeds from the sale of assets.
Reworded paragraphs (40)
Previous wording
We account for the sale of byproducts as revenue in the potash or Trio® segment based on which segment generated the byproduct. Intersegment sales prices are market-based and are eliminated.
Current wording
We account for the sale of byproducts as revenue in the potash or Trio® segment based on which segment generated the byproduct. Intersegment sales are recorded at market-based prices and eliminated in consolidation.
Previous wording
•Trio® pricing and demand. Our Trio® average net realized sales price per ton(1) increased to $387 for the three months ended March 31, 2026, compared to $345, respectively for the same period in 2025, as pricing for the individual components of Trio®particularly sulfate and potassium remained supportive. Sales volumes in the three months ended March 31, 2026, decreased 4% compared to the same period in 2025, as customers entered this year with slightly more inventory on hand following our successful fall fill program announced in late October 2025.
Current wording
•Trio® pricing and demand. Our Trio® average net realized sales price per ton(1) increased to $389 for the three months ended June 30, 2026, compared to $368, respectively for the same period in 2025, as pricing for the individual components of Trio®particularly sulfate and potassium remained supportive. Sales volumes in the three months ended June 30, 2026, were unchanged from the same period in 2025, as customers saw value in the individual components of Trio®, particularly sulfate and low chloride potassium.
Previous wording
Supported by good demand from customers for remaining spring needs, in late March we increased our list price for Trio®by $15 per ton to $420 per ton. We expect to realize the $15 per ton price increase on spot truck and rail sales during the second quarter of 2026.
Current wording
Supported by favorable demand from customers for remaining spring needs, we increased our list price for Trio®by $15 per ton to $420 per ton in late March 2026. Effective July 1, 2026, we increased our list price for Trio®by an additional $10 per ton, bringing our Trio® list price to $430 per ton. We expect the July price increases to be reflected in spot and rail sales during the third quarter of 2026.
Previous wording
•Water sales and other oilfield products and services. As discussed above, with the sale of Intrepid South, our total sales of source water and other oilfield products and services are expected to decline significantly for the remainder of 2026, and beyond. Excluding Intrepid South, sales of other oilfield products and services in the three months ended March 31, 2026, were immaterial, compared to total oilfield services sales of $4.4 million during the same period of 2025.
Current wording
•Water sales and other oilfield products and services. Following the sale of Intrepid South, we expect sales of source water and other oilfield products and services to decline substantially during the remainder of 2026, and in future periods. Excluding Intrepid South, sales of other oilfield products totaled $0.4 million during the six months ended June 30, 2026, compared to total oilfield services sales of $8.7 million during the corresponding 2025 period, which primarily reflected the contribution of Intrepid South prior to its sale.
Previous wording
•HB AMAX Cavern. In July, we successfully drilled a 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. We expect to continue permitting and technical evaluation of AMAX throughout 2026, and we have made the decision to defer additional capital investment until at least 2027.
Current wording
•HB AMAX Cavern. Last July, we successfully drilled a 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. We expect to continue permitting and technical evaluation of AMAX throughout 2026, and we have made the decision to defer additional capital investment until at least 2027.
Previous wording
Our total sales for the three months ended March 31, 2026, increased $4.2 million, or 4%, compared to the same period in 2025, as Trio® segment sales increased $2.7 million and potash segment sales increased $2.5 million, partially offset by a decrease of $1.1 million in water sales recorded in the other segment. As noted above, the Intrepid South sale is classified as discontinued operations, and we no longer consider the oilfield solutions segment to be a reportable segment.
Current wording
Our total sales for the three months ended June 30, 2026, decreased $0.9 million, or 1%, compared to the same period in 2025, as potash segment sales decreased $3.4 million, partially offset by an increase in Trio® segment sales of $2.5 million and an increase of $0.1 million in water sales recorded in the other segment. As noted above, the Intrepid South sale is classified as discontinued operations, and we no longer consider the oilfield solutions segment to be a reportable segment.
Previous wording
Our total cost of goods sold increased $0.7 million during the three months ended March 31, 2026, compared to the same period in 2025, as our potash segment cost of goods sold increased by $2.8 million, partially offset by a decrease of $1.5 million in Trio® segment cost of goods sold, and a decrease of $0.5 million in our other nonreportable segment cost of goods sold.
Current wording
Our total cost of goods sold decreased $5.0 million during the three months ended June 30, 2026, compared to the same period in 2025. The decrease was driven by a $2.0 million decrease in our potash segment cost of goods sold, a $2.0 million decrease in our Trio® segment cost of goods, and a $0.9 million decrease in our other nonreportable segment cost of goods sold.
Previous wording
In the three months ended March 31, 2026, we incurred $0.8 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 $1.3 million in lower of cost or net realizable value inventory adjustments in our potash segment in the three months ended March 31, 2025.
Current wording
During the three months ended June 30, 2026, we incurred $0.3 million of lower of cost or net realizable value inventory adjustments in our potash segment because the weighted-average carrying costs for certain potash products exceeded the expected average net realized sales price for those products. During the three months ended June 30, 2025, we recorded $0.4 million in lower of cost or net realizable value inventory adjustments in our potash segment.
Previous wording
During the three months ended March 31, 2026, we generated gross margin of $17.7 million compared to gross margin of $13.3 million during the same period in 2025. As discussed above, our gross margin increased during the three months ended March 31, 2026, due to increased average net realized sales price per ton for both potash and Trio®.
Current wording
During the three months ended June 30, 2026, we generated gross margin of $16.6 million compared to gross margin of $12.4 million during the same period in 2025. As discussed above, the increase in gross margin was primarily due to higher average net realized sales prices per ton for both potash and Trio® and lower weighted-average carrying costs for potash and Trio® tons sold.
Previous wording
For the three months ended March 31, 2026, we recorded no impairment expense. For any Trio®segment capital spending during the three months ended March 31, 2025, we 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 in the three months ended March 31, 2025.
Current wording
For the three months ended June 30, 2026, we recorded no impairment expense. For any Trio®segment capital spending during the three months ended June 30, 2025, we 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 in the three months ended June 30, 2025.
Previous wording
In March 2026, our Board approved the sale of our Intrepid South business. As of March 31, 2026, we determined the Intrepid South business met the criteria for held for sale and discontinued operations. For the three months ended March 31, 2026, and 2025, net income from discontinued operations was $0.5 million and $1.2 million, respectively. See Note 3 to the Condensed Consolidated Financial Statements for further information. The sale of Intrepid South closed on April 1, 2026, and we received total proceeds of $70 million, subject to normal adjustments to be determined within 120 days of the sale closing.
Current wording
In March 2026, our Board approved the sale of our Intrepid South business. The transaction closed on April 1, 2026, and we received gross proceeds of $70 million. Following customary post-closing adjustments and the satisfaction of closing conditions, the final sales prices was $68.9 million. As result of the transaction, we recognized a gain on sale in discontinued operations, net of taxes, of $13.2 million during the three months ended June 30, 2026. See Note 3 to the Condensed Consolidated Financial Statements for further information.
Previous wording
During the three months ended March 31, 2026, we incurred $0.1 million in income tax expense compared to $0.1 million in income tax expense during the same period in 2025. Since December 31, 2024, we have had a full valuation allowance recorded against our deferred tax assets.
Current wording
Income tax expense from continuing operations was approximately $0.1 million during the three months ended June 30, 2026, compared to an immaterial amount during the corresponding period in 2025. Since December 31, 2024, we have maintained a full valuation allowance against our deferred tax assets.
Previous wording
We generated net income from continuing operations of $6.9 million during the three months ended March 31, 2026, compared to net income from continuing operations of $3.4 million in the same period in 2025, due to the factors discussed above.
Current wording
We generated net income from continuing operations of $2.4 million during the three months ended June 30, 2026, compared to net income from continuing operations of $1.4 million in the same period in 2025, due to the factors discussed above.
Previous wording
Trio® segment sales increased 5% during the three months ended March 31, 2026, compared to the same period in 2025. Trio® sales increased $2.6 million, combined with an increase of $0.1 million in Trio® segment byproduct sales. Trio®sales increased due to an increase of 12% in our Trio®average net realized sales price per ton for the three months ended March 31, 2026, compared to the same period in 2025, due to continued supportive prices of the individual nutrient components of Trio®, particularly sulfate and potassium. The increase in Trio®sales during the three months ended March 31, 2026, compared to the same period in 2025, was partially offset by a 4% decrease in tons of Trio® sold. Customers entered 2026 with slightly more inventory on hand following our successful fall fill program announced in late October 2025.
Current wording
Our Trio®segment sales increased $5.2 million, or 6%, in the six months ended June 30, 2026, compared to the same period in 2025. The increase was driven by a $5.1 million increase in Trio®sales and a $0.1 million increase in Trio®segment byproduct sales. Trio®sales increased primarily due to a 10% increase in our Trio®average net realized sales price per ton, driven by continued supportive pricing for the individual nutrient components of Trio®, particularly sulfate and potassium. The increase in Trio®sales was partially offset by a 3% decrease in tons of Trio® sold.
Previous wording
Our total byproduct sales, which are recorded in either our potash segment or Trio® segment, decreased $2.0 million in the three months ended March 31, 2026, compared to the same period in 2025, as salt sales decreased $0.7 million, magnesium chloride sales decreased $0.6 million, and brine sales decreased $0.6 million. Mild winter weather and historically low snowfall in the western U.S. decreased demand for both salt and mag chloride during the three months ended March 31, 2026, compared to the same period in 2025. Less oil and gas drilling activity near our Carlsbad, New Mexico facilities during the three months ended March 31, 2026, compared to the same period in 2025, led to decreased brine sales.
Current wording
Our total byproduct sales, which are recorded in either our potash segment or Trio® segment, decreased $2.8 million during the six months ended June 30, 2026, compared to the same period in 2025. The decrease was driven by a $1.7 million decrease in salt sales and a $1.2 million decrease in magnesium chloride sales, partially offset by an increase of $0.2 million in brine sales. Salt and magnesium chloride sales decreased primarily because mild winter weather and historically low snowfall in the western U.S. reduced demand during the three months ended March 31, 2026, and resulted in customers beginning the second quarter with higher inventory levels.
Previous wording
Our cost of goods sold in our nonreportable other segment decreased $0.5 million, or 67%, during the three months ended March 31, 2026, compared to the same period in 2025, as total sales in the nonreportable other segment decreased 97%, as we sold less water from our Caprock water rights during the three months ending March 31, 2026, compared to the same period in 2025.
Current wording
Cost of goods sold in the nonreportable other segment decreased by $1.4 million, or 81%, during the six months ended June 30, 2026, compared to the corresponding period in 2025. The decrease was primarily attributable to lower water sales from our Caprock water rights, which resulted in a 73% decline in sales within the nonreportable other segment.
Previous wording
•Potash pricing and demand. Our potash average net realized sales price per ton(1) increased to $353 for the three months ended March 31, 2026, compared to $312 for the same period in 2025, as the 2026 winter fill program prices at $355 per ton were $40 per ton higher than the 2025 winter fill program prices.
Current wording
Three Months Ended June 30, 2026, and 2025
Previous wording
Trio®freight costs decreased 4% during the three months ended March 31, 2026, compared to the same period in 2025, as we sold 4% fewer tons. Our Trio®freight expense is also 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
Freight expense within our potash segment decreased 29% in the three months ended June 30, 2026, compared to the corresponding period in 2025, primarily due to lower sales volumes, including a 14% decrease in potash tons sold and a 17% decrease in salt tons sold. Freight expense is also impacted by the geographic mix of sales, the percentage of customers arranging for and paying their own freight costs, and the relative proportion of shipments transported by rail and truck.
Previous wording
Our total sales in the potash segment increased $2.5 million in the three months ended March 31, 2026, compared to the same period in 2025, as potash sales recorded in the potash segment increased $4.7 million, partially offset by a $2.1 million decrease in potash segment byproduct sales.
Current wording
Total sales in the potash segment decreased $0.9 million in the six months ended June 30, 2026, compared to the corresponding period in 2025, as a $2.9 million decrease in potash segment byproduct sales was partially offset by a $2.1 million increase in potash sales.
Previous wording
During the three months ended March 31, 2026, we recorded lower of cost or net realizable value inventory adjustments of $0.8 million as our weighted average carrying cost per ton for inventoried potash products at our Wendover facility was higher than our forecasted average net realizable sales price per ton for those products. We recorded $1.3 million in lower of cost or net realized value inventory adjustments in the potash segment during the three months ended March 31, 2025.
Current wording
During the six months ended June 30, 2026, we recorded lower of cost or net realizable value inventory adjustments of $1.1 million in our potash segment because the weighted average carrying cost per ton for inventoried potash products at our Wendover facility exceeded their forecasted average net realizable sales. This compares to $1.8 million in lower of cost or net realizable value inventory adjustments recorded in the corresponding period in 2025.
Previous wording
Our potash segment gross margin increased $0.6 million in the three months ended March 31, 2026, compared to the same period in 2025, mainly due to an increase in our potash average net realized sales price per ton.
Current wording
Potash segment gross margin increased $0.6 million during the six months ended June 30, 2026, compared to the corresponding period in 2025, due to the factors discussed above.
Previous wording
The table below shows our potash sales mix for the three months ended March 31, 2026, and 2025:
Current wording
The table below shows our potash sales mix for the three and six months ended June 30, 2026, and 2025:
Previous wording
1 Sales include sales of byproducts which were $0.3 million and $0.2 million for the three months ended March 31, 2026, and 2025, respectively.
Current wording
1 Sales include sales of byproducts which were immaterial for both the three months ended June 30, 2026, and 2025, respectively, and $0.3 million and $0.2 million for the six months ended June 30, 2026, and 2025, respectively.
Previous wording
Our Trio®segment sales increased $2.7 million, or 5%, in the three months ended March 31, 2026, compared to the same period in 2025, as Trio®sales increased $2.6 million and Trio®segment byproduct sales increased $0.1 million. Trio®sales increased due to an increase of 12% in our Trio®average net realized sales price per ton for the three months ended March 31, 2026, compared to the same period in 2025, due to continued supportive prices of the individual nutrient components of Trio®, particularly sulfate and potassium. The increase in Trio®sales during the three months ended March 31, 2026, compared to the same period in 2025, was partially offset by a 4% decrease in tons of Trio® sold.
Current wording
Trio® segment sales increased 8% during the three months ended June 30, 2026, compared to the corresponding period in 2025, primarily due to a $2.5 million increase in Trio® sales, while byproduct sales remained flat. Trio®average net realized sales price per ton increased 6% for the three months ended June 30, 2026, compared to the same period in 2025, due to continued supportive prices of the individual nutrient components of Trio®, particularly sulfate and potassium. Trio®sales volumes were unchanged from the prior-year period.
Previous wording
Our Trio®segment generated gross margin of $14.8 million in the three months ended March 31, 2026, compared to gross margin of $10.4 million in the same period in 2025, mainly due to the increase in our Trio® average net realized sales price per ton and continued improvement in our Trio® cost of goods sold per ton.
Current wording
Trio®segment gross margin increased to $11.4 million in the three months ended June 30, 2026, from $8.1 million in the corresponding period in 2025, primarily reflecting higher average net realized sales price per ton and lower cost of goods sold per ton.
Previous wording
Our Trio®cost of goods sold decreased 6% during the three months ended March 31, 2026, compared to the same period in 2025, mainly due to selling 4% fewer tons. In addition, increased Trio®tons produced over the past twelve months lowered our per ton production costs, which lowered our Trio®weighted average carrying cost per ton. A significant portion of our production costs is fixed, and an increase in tons produced lowers our per ton production costs.
Current wording
Trio®cost of goods sold decreased 8% during the six months ended June 30, 2026, compared to the corresponding period in 2025, primarily reflecting lower sales volumes and a reduction in cost per ton sold. The lower cost per ton sold resulted from a decline in the weighted-average carrying cost per ton, as Trio® production volume was 9% higher during the three months ended June 30, 2026, compared to the same period in 2026, due to the new continuous miner commissioned in early 2026 and ongoing plant optimization projects. Because a significant portion of our production costs is fixed, an increase in tons produced lowers 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, 2026, and 2025.
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, 2026, and 2025.
Previous wording
Our other nonreportable segment for the three months ended March 31, 2026, and 2025, includes the sale of water from our Caprock water rights. Cost of goods sold represents costs associated with selling water from our Caprock water rights, most of which is the related depreciation of water transportation infrastructure.
Current wording
Our other category, which is not a reportable segment, includes sales of water from out Caprock water rights for the three and six months ended June 30, 2026, and 2025. Cost of goods sold primarily consists of costs associated with selling water from our Caprock water rights, including depreciation expense related to water transportation infrastructure.
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, 2026, our average royalty rate for potash and Trio® combined sales (less combined freight expenses) was 4.4%. For the three months ended March 31, 2025, our average royalty rate for potash and Trio® sales combined (less combined freight expenses) was 4.8%.
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 and six months ended June 30, 2026, our average royalty rate for potash and Trio® combined sales (less combined freight expenses) was 5.0% and 4.6%, respectively. For the three and six months ended June 30, 2025, our average royalty rate for potash and Trio® sales combined (less combined freight expenses) was 5.2% and 5.0%, respectively.
Previous wording
We are subject to federal and state income taxes on our taxable income. Our effective tax rate from continuing operations for the three months ended March 31, 2026, was 0.9%. Our effective tax rate from continuing operations differed from the statutory rate during this period due to the valuation allowance established to offset our deferred tax assets. Our effective tax rate from continuing operations for the three months ended March 31, 2025, was 2.2%. Our effective tax rate from continuing operations differed from the statutory rate during this period due to the valuation allowance established offset our deferred tax assets.
Current wording
We are subject to federal and state income taxes on our taxable income. Our effective tax rate from continuing operations for the six months ended June 30, 2026, was 1.2%. Our effective tax rate from continuing operations differed from the statutory rate during this period due to the valuation allowance established to offset our deferred tax assets. Our effective tax rate from continuing operations for the six months ended June 30, 2025, was 2.3%. Our effective tax rate from continuing operations differed from the statutory rate during this period due to the valuation allowance established offset our deferred tax assets.
Previous wording
For the three months ended March 31, 2026, we incurred $0.1 million of income tax expense from continuing operations. For the three months ended March 31, 2025, we incurred $0.1 million of income tax expense from continuing operations.
Current wording
For the six months ended June 30, 2026, we incurred $0.1 million of income tax expense from continuing operations. For the six months ended June 30, 2025, we incurred $0.1 million of income tax expense from continuing operations.
Previous wording
During the three months ended March 31, 2026, cash paid for property, plant, equipment, mineral properties, intangible and other assets was $5.1 million.
Current wording
During the six months ended June 30, 2026, cash paid for property, plant, equipment, mineral properties, intangible and other assets was $13.6 million.
Previous wording
We expect to make capital investments in 2026 of $40 million to $50 million, with the majority of this being sustaining capital. We may adjust our investment plans as our expectations for 2026 change. We anticipate our 2026 operating plans and capital programs will be funded out of operating cash flows and existing cash. We may also use our revolving credit facility, to the extent available, to fund capital investments.
Current wording
We expect to make capital investments in 2026 of approximately $40 million, with the majority of this being sustaining capital. We may adjust our investment plans as our expectations for 2026 change. We anticipate our 2026 operating plans and capital programs will be funded out of operating cash flows and existing cash. We may also use our revolving credit facility, to the extent available, to fund capital investments.
Previous wording
As of March 31, 2026, we had cash and cash equivalents of $99.3 million, compared to $83.5 million at December 31, 2025. The increase in our cash balance during the first three months of 2026 was due primarily to increased potash and Trio®segment sales.
Current wording
As of June 30, 2026, we had cash and cash equivalents of $185.0 million, compared to $83.5 million at December 31, 2025. The increase in our cash balance during the first half of 2026 was primarily due to the sale of Intrepid South in April, the proceeds of which are included in cash flows from discontinued operations, together with improved operating cash flows resulting from higher average net realized sales prices for both potash and Trio®.
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. 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 revolving 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 evaluate our expected sources and uses of cash and may modify our capital as determined by our Board. We may also seek additional liquidity through debt or equity financings, subject to market conditions and the terms of our existing revolving credit facility, although there can be no assurance that such financing will be available on acceptable terms, or at all. Based on our current cash balances, availability under our revolving credit facility, and the expected cash flows from operations, we believe we have sufficient liquidity to meet our obligations for at least the next twelve months.
Previous wording
The following summarizes our cash flow activity from continuing operations for the three months ended March 31, 2026, and 2025 (in thousands):
Current wording
The following summarizes our cash flow activity from continuing operations for the six months ended June 30, 2026, and 2025 (in thousands):
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 March 31, 2026, we made no borrowings and made no repayments under the revolving credit facility. During the three months ended March 31, 2025, we made no borrowings and made no repayments under the revolving credit facility. As of March 31, 2026, and December 31, 2025, we had no 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 and six months ended June 30, 2026, we made no borrowings and made no repayments under the revolving credit facility. During the three and six months ended June 30, 2025, we made no borrowings and made no repayments under the revolving credit facility. As of June 30, 2026, we had no borrowings outstanding and $0.2 million in outstanding letters of credit under this facility. As of December 31, 2025, we had no borrowings outstanding and no outstanding letters of credit under this facility.
Previous wording
As of April 30, 2026, we had approximately $173.5 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, 2026.
Current wording
As of July 31, 2026, we had approximately $181.4 million in cash and cash equivalents, no borrowings under the revolving credit facility, and $0.2 million in outstanding letters of credit under the revolving credit facility. We have $149.8 million of remaining availability under the revolving credit facility as of July 31, 2026.
Previous wording
Share Repurchase Program—In February 2022, our Board 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. For the three months ended March 31, 2026, we did not repurchase any shares under the share repurchase program. 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.
Current wording
Share Repurchase Program—In February 2022, our Board of Directors approved a share repurchase program authorizing up to $35 million of repurchases of our outstanding common stock, of which approximately $13 million remained available as of March 31, 2026. In June 2026, the Board approved an increase in its existing share repurchase program, authorizing the repurchase up to $50 million of its common stock from the date of authorization. Under the share repurchase program, we may repurchase our common stock from time to time in the open market or through privately negotiated transactions. Any repurchases will be made at our discretion and will depend on market conditions, liquidity, applicable securities laws, and other factors. We may suspend or discontinue the program at any time.
Previous wording
Below is a reconciliation of average net realized sales price per ton to segment sales, the most directly comparable GAAP financial measure for the three months ended March 31, 2026, and 2025:
Current wording
Below is a reconciliation of average net realized sales price per ton to segment sales, the most directly comparable GAAP financial measure for the three and six months ended June 30, 2026, and 2025:
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Lower of Cost or Net Realizable Value Inventory Adjustments
Current report — wording carried from elsewhere
Three Months Ended June 30, 2026, and 2025
Current report — wording carried from elsewhere
For the three months ended June 30, 2026, we did not repurchase any shares under the share repurchase program. Previously, we repurchased 608,657 shares totaling $22.0 million from August 2022 through December 2022. As of the date hereof, the full $50 million remains available for repurchases under the share repurchase program.