Intrepid Potash (IPI) provides update on its potash and Trio pricing and its 2021 outlook

 

 

Intrepid Potash provides update on its potash and Trio pricing and its 2021 outlook; reports fertilizer market has improved in recent weeks

Potash price into agricultural markets has increased $90 per ton, or 31%, above 2020 summer-fill pricing after a $40 per ton increase announced in December. Current potash price into agricultural markets is $65 per ton above the January 2020 winter-fill price.

Trio price into agricultural markets has increased $60 per ton, or 27%, above 2020 summer-fill pricing after a $20 per ton increase in December. Current Trio price into agricultural markets is $50 per ton above the January 2020 winter-fill price.

Oilfield outlook continues to improve in the Northern Delaware Basin driven by an increase in drilling and fracking activity. IPI currently forecasts first quarter 2021 and full year 2021 water volumes in excess of same time last year in the Intrepid and NGL Energy Partners three-ranch area of mutual interest.

• Current indications from operators for water needs during the calendar year 2021 are in excess of the total water available for sale under Intrepid and NGL's Joint Marketing Agreement affording Intrepid the opportunity to exploit optionality in its water portfolio.

"A strong agricultural commodity environment across a wide range of crops that includes corn, soybeans, wheat, cotton, coffee and sugar, combined with a reduced potash supply has driven the improvements in the fertilizer market in recent weeks. After announcing the price increases in December, we quickly filled the rest of our Q1 2021 order book before the higher price took effect and expect the benefits of higher pricing will be seen in the second quarter of next year. We continue to see good value across the fertilizer supply chain and have already sold select spot tons at the higher price levels."