Q4 2021 Intrepid Potash Inc Earnings Call

March 8, 2022

[music].

Thank you for standing by this is the conference operator.

Welcome to the Intrepid Potash, Inc, Q4, and year end 2021 results conference call.

As a reminder, all participants are in a listen only mode and the conference is being recorded.

After the presentation, there will be an opportunity to ask questions.

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I would now like to turn the conference over to Matt Preston Chief Financial Officer.

Please go ahead.

Thanks, Teresa and good morning, everyone.

Thanks for joining us to discuss intrepid fourth quarter and full year 2021 results.

With me on the call today as Intrepid co founder executive Chairman and CEO Bob during all this also available to answer questions. During the Q&A session. Following our prepared remarks, we our president Brian Stone and our vice President of sales and marketing Zachary Adams.

Please be advised that our remarks today, including answers to your questions include forward looking statements as defined by U S Securities laws.

These forward looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those currently anticipated.

These statements are based on the information available to us today, and we assume no obligation to update them.

These risks and uncertainties are described in our periodic reports filed with the Securities and Exchange Commission, which are incorporated herein by reference.

During today's call, we will refer to certain non-GAAP financial and operational measures reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in yesterday's press release, our SEC filings and press releases are available on our website at Intrepid potash Dot Com I will now turn the call over to Bob Matt. Thank you.

It very much and good morning to everyone for joining us we really appreciate your attendance and your interest in intrepid.

Declining physical inventories strong demand threats of railroad strikes and.

And now unfortunately turmoil in eastern Europe has significantly contributed to rising fertilizer prices.

And supporting supportive commodity environment.

Which has now led to another quarter of improving consolidated results.

We recorded adjusted net income of $8 million in the fourth quarter, bringing full year adjusted net income to 21 $8 million, a $40 million increase compared to 2020.

In the fourth quarter, we released nearly all of the valuation allowance against our deferred tax asset, which has led to approximately $7 million of income tax expense recorded for both the fourth quarter and the full year 2021. The first time, we have recorded a material amount of.

Taxes spent expense since 2015.

Our potash segment generated $12 $5 million and $35 8 million of gross margin in the fourth quarter and full year 2021 respectively.

As we capitalized on rising prices and continued strong demand fourth quarter price realized pricing for potash increased to $504 per ton a $120 increase over the third quarter of 2021.

Price increases announced in both the fourth quarter of last year and most recently in February of 2022, we will continue our trend of rising prices through spring.

We expect our realized price per ton to increase between $680 and $690 in the first quarter of 2022 and.

An increase of approximately $180 per ton over the fourth quarter of 2021.

In line with potash our trio segment continued to deliver strong results.

On rising prices and strong demand.

Posted prices moved up 30 to $40 per ton in December 2021, and we recently announced another $35 per ton price increase which is in effect as we speak today.

We expect our first quarter 2022, net realized price for trio will increase to between 440 and $450 per ton.

And we are currently booking sales for second quarter shipments at the increased price level.

Which is approximately $215 more.

Over last year.

The extra production shaft, we recently added at our East mine is adding some much needed production and will help us match, the strong demand and positive outlook for the specialty fertilizer through the first half.

Sales and gross margin in our oilfield segment increased over the third quarter of 2021 as revenue from oilfield products and services such as surface use easements and a produced water royalty continue to increase.

Wrong with our oilfield activity.

Recent increases in oil price continue to spur additional investment in the Delaware basin with producers looking to capitalize on the highest oil prices in the last decade.

As expected our balance sheet remains in solid shape with $36 million of cash on hand at the very end of the year number which has since increased to well over $60 million as of early this week.

With a strong balance sheet and a growing cash position.

We announced in our earnings release, a $35 million share repurchase program.

As we stated on prior earnings calls once we reach the appropriate benchmarks, we would look to opportunistically repurchase shares depending upon market conditions other factors and begin to return value to shareholders.

In the form of a share repurchase program.

As we noted in the earnings release, our strategy hasn't changed with the announcement of the buyback program, we still plan to invest across our business segments and remain open to opportunities both inside and outside our fence that we believe would complement our existing businesses and generate long term value.

We view the share repurchase program is another tool available to our team to drive shareholder value and with the approval in place we will now be able to take advantage of.

That situation, if the appropriate time presents itself.

As the largest consumer of salt saturated brine in new Mexico.

We're also excited to announce a joint feasibility study with the new Mexico produced water consortium as technical consultant for the New Mexico environment Department.

To evaluate the opportunity to beneficially reuse of produced water from oil and gas production.

And the new Mexico portion of the Northern Delaware Basin, and then inject a for our HB solar solution mine.

The pilot project is meant to prove the concept the treatment of produced water.

Can meet the same constituent levels necessary to comply with the standards and requirements for injection into our HB solar solution mine.

We are uniquely able to provide this service at its HB solar solution mine, which currently utilizes naturally occurring salt brine and groundwater as permitted inject dates.

Which could potentially turn our approximate 100000 barrel a day injection system into a revenue stream with the opportunity to actually grow those volumes.

Most of our investors know the HB solar solution mine uses a closed loop system in coordination with solar evaporation ponds for the solution mining of potash and a very environmentally friendly manner and is already subject to numerous monitoring wells and a permit.

Mexico environment Department.

And the Mexico produced water consortium.

It's a trans disciplinary public private partnership comprised of Academia, specifically, new Mexico State University government agencies National laboratories, and the private sector, whose mission is to advance scientific research and technology development required to <unk>.

Good future statewide produced water policy in new Mexico.

The new Mexico produced water consortium has already approved our submitted pilot proposal pursuant to and in compliance with the New Mexico environment Department 2022 requirements for pilot test.

This high priority Green pilot project is already preliminary scheduled to begin testing as early as the third quarter of 2022.

We're excited to cooperate with our public and private stakeholders in advancing the proposed environmentally friendly reuse of produced water.

This project if successful will aid in conserving existing groundwater sources. In addition to advancing and promoting intrepid ESG goals and values as well as the stated mission of the New Mexico produced water consortium.

We look forward to keeping the market updated as we get closer to the pilot project later this year.

Overall the outlook in the potash market is arguably never been better.

Commodity pricing and crop inventory levels remain extremely supportive as do record farmer incomes globally.

We are positioned to deliver significant growth and bottom line results and operating cash flow in 2022.

And now I'll turn the call over to Matt for a review of our financial results and outlook.

Thanks, Bob.

As Bob just highlighted we are set up to deliver an outstanding year in 2022 with the full benefit of recent fertilizer price increases yet to materialize in our reported results full.

Full year 2021, adjusted EBITDA increased to $67 $6 million more than three times, our 2020 EBITDA of approximately $21 million and we expect 2022 will again deliver outstanding year over year growth.

As you saw in our earnings release yesterday afternoon, we released approximately $216 million of evaluation allowance against our deferred tax assets in the fourth quarter as a result of reaching both accumulative three year net income position and our improved outlook for.

For those modeling the effect on our earnings I want to reiterate some of what Bob said earlier and provide some guidance for future modeling.

Along with the release of the valuation allowance, we recorded approximately $7 million of income tax expense for the full year 2021, all of which was incurred in our fourth quarter results going forward. We expect our book tax rate of approximately 26%, but with significant state and federal net operating loss.

Carryforwards available to us, we expect to pay minimal cash tax less than $350000 annually for at least the next few years additional details regarding our deferred tax assets are included in our 10-K, which we expect to file later today.

Fourth quarter results for our potash segment benefited from higher pricing, although production was reduced compared to the prior year due to the wet weather in Carlsbad last summer.

Fourth quarter sales volumes were in line with our historic average and we remained selective during the quarter in anticipation of improved pricing in early 2022.

We are now coming off nearly 18 months of strong potash demand, which combined with our production shortfalls has left us with lower inventory levels and less product available for sale and in the first half of 2021.

We expect first half 2022 potash sales of approximately 130000 to 140000 tons split evenly between the first and second quarters like many industries. We are experiencing some logistical delays with truck availability, which could push some tons into the second quarter, but will not lower our overall <unk>.

Have sales.

Product inventory and production are expected to return to historic averages in the second half of the year, which should drive an improvement in our per ton potash cost of goods sold despite general inflationary pressures.

Our fourth quarter trio segment production and sales results were consistent with prior year and similar to our potash segment. We expect recent price announcements announcements will continue to improve our net realized pricing and segment results in the coming quarters, Although we remain on allocation for our granular and premium trio products, we expect sale.

<unk> volumes to closely follow prior year with 130000 to 140000 tons for first half 2022 split evenly between the first and second quarters.

Turning towards 2022, and liquidity, we expect to spend approximately $40 million to $60 million on capital investments in 2022.

With 25% to $35 million of debt on sustaining capital increased sustaining capital compared to prior years reflect some inflationary pressures and also prioritizing some deferred projects from the past two years.

With the announcement of the share repurchase program HB Green disposal, and an increasingly positive outlook for our earnings and cash flow. There are significant opportunities in front of us to generate long term value for our shareholders and we look forward to updating everyone. As the year progresses that concludes our prepared remarks for today, operator, we're ready to take questions.

Yes.

Thank you we will now begin the question and answer session.

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We'll pause for a moment as callers join the queue.

The first question comes from Joel Jackson with BMO capital markets. Please.

Please go ahead.

Good morning, everyone.

Good morning, Joe.

Two questions I'll ask one by one.

Can you talk about cap allocation of all of that so you know what kind of pace.

The buyback should we expect what kind of liquidity liquidity buffer you want to keep at all times and how about the stack.

What do you want to do there how much wind up there how that going do you think.

First let me talk about capital as it relates to the buyback program.

We believe and we have said repeatedly.

As we begin to generate significant cash flow that we intend to use a portion of that cash for share buybacks.

We do not intend to go into debt to buy shares back.

It's most appropriate to use a hate to use the word excess cash.

But.

Because we will generate substantial cash.

Our intention is to use that cash when the opportunity presents itself at the appropriate stock levels to buy our stock back.

Hope that answers your question, but the main difference that I would like to make clear is that we're willing to use.

What I would call additional cash excess cash cash.

Using share repurchase rather than going into debt.

To buy shares back.

Alright as product that was yes, sorry go ahead excuse me sorry go ahead.

It wasn't liquidity pure repeat your second question, Yeah, Yeah, how much liquidity buffer you may have already answered that how much liquidity are you comfortable that and then talk about the stack.

And how much you think you can point to that and how that's going and kind of the rationale around that.

Okay.

Let me talk about spec first really the only thing I can say is all the benefits that would accrue to the sponsor will go to our shareholders.

So the idea the general concept is it's a methodology to raise a larger amount of capital without diluting any of our existing shareholders.

And what ever benefits totally inclusive accrue to intrepid potash as the sponsor will go straight to our shareholders and not to managers or anybody else. So it is a methodology.

To raise additional funds or larger acquisitions.

And have those benefits flow straight to our shareholders.

I'm really now yeah, and I'll jump in here, a little bit Joel with an S. One filed in mid January that's active we are not going to talk about this back at all on this earnings call outside of what Bob just said.

I appreciate your understanding.

Okay, just on potash so.

Potash production.

It would be normal levels I guess in the second half of the year and.

If we have a prolonged issue with Washington validation supply in the World China screen got every ton of K that it can.

And what options do you have when you think about called bad flooding.

All mines and other places like why.

What could you do to add more capacity back what would it cost you how long would it take.

Well its a variety of questions that are all intensely on your studied obviously our first shot is increasing.

The volume that we flagged at our HB solar solution mine and that that project has is already underway.

I'll just say, it's very much underway and it's one earnings call away from being able to give a lot more detail in terms of what that could look like as we've got numerous engineers working on that as fast as they can the second which is teed up as a new cavern at Moab the design for <unk>.

That horizontal cavern is being designed as we speak as you know we have successfully drilled four significant horizontal caverns out there to date.

All of which have added incremental production each time, we've done now.

And that project will start in the.

Most likely third or fourth quarter.

Most hopefully in the third quarter and come online for the next summer's evaporation season, and then a wind over we had a team of engineers out there. This week looking at drilling additional deep Brian wells as well as additional brackish water wells.

To increase the amount of water that flows through the the overall system out there as you know we've got about 150000 acres of leases 40, something.

Oh, I'm, sorry, 100, plus something miles of canals. So looking at ways. That's a giant water farm. So on each of those facilities looking at different ways.

Increasing our potash production as well as bringing on an additional crew at east to actually mined more langbeinite. So I'd say those are for very concrete steps one at each facility.

Just following up on that does that mean that that pretty much done.

And is there any way to get potash back out of the Langbeinite I E.

We've got a very small group looking at west.

I would say the west is probably our most expensive.

Mine to bring back one and so we're really going in.

And in a linear fashion as two cheapest tons to more expensive tons in terms of when and how we bring those back on.

Thank you very much.

The next question comes from Vincent Andrews with Morgan Stanley .

Please go ahead.

Hi, guys. This is will hang on for Vincent.

I guess can you guys talk about any early.

<unk> have increased oilfield activity due to the higher oil prices and then like how should we be thinking about the potential tailwind.

From higher oil prices are typically how long does it take for activity to kind of see it pick up.

Well I'd tell you it was momentary it's picked up pretty quickly.

All you got to do is look at the rig count in the Delaware Basin.

I don't have the numbers off top of my head, but.

The phones ringing every day, so down at Intrepid South.

Here it is.

Early March we've got a sold out water book and.

So we're working with third party water providers.

To provide more water so it's.

It's just going to be a very good year based on.

Our primary customers that are already looking to.

To increase their activity levels. So I think all you got to do is go read.

Exxon's IR deck and Exxon has.

Announced very significant plans in the Permian go look at.

Conoco acquisition of Concho private companies or cap rock Mehrdad.

BTA Titus.

The list goes on and on Devon of the companies that have all announced significant.

Higher expenditures in the Delaware Basin.

Got it thanks, and then I guess just tacking on to that.

I asked the question earlier, but I think last quarter, you talked about the optionality to add initial like 50000 tons of.

Productive capacity kind of pending on your ability to hire additional staff.

Can you talk about what you guys are seeing in the labor market right now.

Whether that's a possibility I guess this year to add that additional staff to increase capacity or not.

Well, we definitely added the crews that we talked about so we were successful in hiring the personnel.

I'll be very honest it's.

The labor market tightens with each price increase.

We have found a lot of people that have come back from the oilfield because the nomadic lifestyle.

And the extended drive times I mean, if you got southeast New Mexico. It takes three hours to get anywhere there and back and so.

It's it's a beehive of activity.

And when you look at People's personal choices.

They're choosing between a slightly higher wage, but a three hour drive.

<unk> is potentially a slightly lower wage a more stable job as we did not lay off anybody during COVID-19 , whereas the oil companies.

Laid off tremendous numbers of people. So I think we're I think that the action that we chose throughout Covid served us well.

It's just it's two very distinct labor markets in terms of what people are looking for.

And we clearly articulated but I don't want to make it sound like it's a cakewalk.

It's a difficult labor market.

But I do think we have a slight advantage given our.

100 years of stability.

Got it thank you.

The next question comes from Lucas Beaumont with UBS.

Please go ahead.

Hey, guys. Thanks for taking my question. So I just wanted to go back to potash again, if I could.

So you sort of flagged that you're expecting pricing to be up another $190 in the first quarter.

Please just discuss for us like how much of your second quarter Order book is already locked in and how you're expecting pricing to move into the second quarter based on where we sort of say in spot pricing in March with the lag in February and March.

Even if things stabilize from here, which I mean, it doesn't look like they're going to do that yet, but should we still be seeing sort of high plus pricing flowing through into the second quarter as well.

Thanks.

We believe we're going to see really stable pricing throughout the end of the year.

As to the timing of when the actual price increases started and we're taking advantage of I'll, let Zack walk through that.

But we do believe what's going on globally.

Has provided a good floor for why prices should be very stable.

An extended period of time, and when I say extended I'm talking the next.

12 to 18 months.

For a whole variety of reasons, which we can go back into.

Zack do you want to talk about exactly how the price increases started and when your second quarter increases started kicking in et cetera.

Yeah. Thanks, Bob as we noted earlier, we announced a second quarter increase.

Earlier in February and.

And we've been booking sales since then I.

I think we saw really good momentum in say over the last couple of weeks you know it was more.

Spring application begins out there in the market and our buyers are coming in and customers coming in from resupply. So.

Looking ahead to Q2 were positive right now based on realizing those volumes at the increased levels.

Alright, thanks, and instead of just just wondering that.

Hey, you guys mentioned that the first half production was sort of felt like it would be about 140000 tons of I'll call it that rod.

I think.

That's a bit lower than sort of what you guys have had historically with the production issues. So I was just wondering has there been any impact.

The level of volumes and kind of how you're having to contracted pricing are you having to kind of.

Our major customers in Asia with the lower volumes and is that causing you to maybe contracts further out and then <unk>.

<unk> the flow through of higher pricing as we move through the year as well or is that not really affect us.

Thanks.

I would say it it's obviously work to our benefit in that we've got fewer tons to supply.

On the domestic market is extremely tight.

So if you look at the threat of the Canadian rail strike if that were to happen.

The U S market will become much much tighter.

But I would say that the domestic market is a very tight market.

And so the price increases that we've announced.

We're able to achieve all of them.

With very little pushback from customers I'm, not going to say, they're happy about it.

But at the same time, you have to look at the price of corn, wheat, and soybeans and I always urge people look at coffee and cocoa and palm oil cotton, we serviced cotton so global commodities are doing so well as are our farmers across the world.

So while potash prices still remain in that.

3% to 5% of input cost.

Farmers are making plenty of money.

And the potash that they can have that they can find that can surely afford to buy.

Alright, thank you.

Once again, if you have a question. Please press Star then one.

The next question comes from Jason <unk> with Bumbershoot Holdings.

Please go ahead.

Good afternoon.

Hey, Jason.

Just kind of a similar question to what you didn't just got an MLP, but shifting to trio.

Quietly shifted I guess these last couple of quarters from a detractor to a pretty big bright spot.

And about the same.

Your line of questioning is the order book, there and the outlook.

Is that firming in the specialty markets Sim.

Similarly at all to how it is in the MLP market or is there shorter lead times there.

I guess you gave the figure on where tonnage is going in terms of pricing, but just Turner.

I can figure out the sustainability there yeah, let me back up as to our premium in our granular products were on total allocation for 100% of that product.

As you know our standard product, which is what we then convert into pellet product.

There's very few people that buy standard other than to mix it with something else, but we are seeing.

Incredible demand.

Trio is in short supply.

In our premium product and a granular product. So we're able to like I said keep our customers on allocation.

And.

This go around our competitor is following every price increase.

In fact for the first time in years.

Our competitor actually took the price up themselves.

So it's nice to see trio finally, being a very significant bright spot.

And generating a lot of EBITDA and cash flow that will go to the bottom line. So I hope I answered. Your question if you need additional color zacks here to add some additional color.

Okay, well just on a GAAP basis, I guess following up the <unk>.

Gross margin there was 32% in the quarter. So it was up.

Nicely sequentially from Q3 and obviously.

It was a detractor last year with a gross deficit, but what do you think is the incremental margin there.

Taking price up another.

Yeah.

100, $100 a ton I don't know where its going with both the price increases I guess you said there was a new one a second one that you are now bookings for Q2 that was at the $4 50 a ton.

What's the incremental margin you think there in terms of.

On the cost side.

I'm going to let Matt answer that but most of that goes to the bottom line straight to the bottom line and we believe that there is significantly more room in the premium and the granular markets given.

The tightness of the market and so because.

People literally by that on a quarter by quarter basis, we don't see orders going out so far like we would see in potash it makes more sense to <unk>.

Price that product on a quarter by quarter basis, and as long as the market.

Yes.

Remains as extremely tight as it is for premium and granular.

We are very optimistic about where that market has the opportunity to go once again zax available or mats available for yeah, I'll jump in there a little bit Jason.

We gave the guidance on Q1 pricing $4 40 to $4 50 per ton you announced another $35 increase.

In February , which we think will capture a lot of that in our second quarter sales.

Unlike the potash market, which maybe took a week or two to get started.

We're seeing a lot of growers really increase their awareness around magnesium as well as sulfur and we've had a lot of interest in our product for second quarter, It's really driving a lot of good organic demand in the regions, we domestically haven't necessarily seen in the past and so overall outlook for trio is a specialty fertilizer.

Given those secondary nutrients is really positive today.

Okay, great and just on the cash figure of $60 million as of yesterday.

Besides just from.

A number of second from a balance sheet perspective is there anything we can or maybe should be taken away from that operationally you earned I guess almost $24 million in the first two months of the year is that before the normal collection cycle for the spring season or is there anything noteworthy you could kind of point to from a working capital standpoint.

And the 60 million figure versus $36 million down there.

Yes, it certainly starts to reflect.

Some of our early 2022 sales rolling into our into our bank account, there, but I'd say the majority of the spring season really peaks March April .

So we still got a lot of good a good information and good news to come here for the spring season, we're really just getting started when it comes to the operating cash flow in our results.

Okay and.

I asked about it a couple of quarters ago about lithium prices have been kind of going up here as well, there's a lot of other commodities I don't I don't remember if you were evaluating it.

Carbonate versus hydroxide.

Hydroxide resourcing to be totally honest I'm not sure if I can fully understand the difference.

Just at a high level with the prices moving higher.

Is this changing the calculus at all on the value of those reserves and potential to create a royalty stream there for someone willing to go after that business.

Jason what we've repeatedly said is lithium occurs very abundantly throughout the world. It's what it's attached to it makes it difficult to extract the value and so our lithium is attached to magnesium.

Which there are several pilot studies going on across the world by a couple of different companies.

That are attempting to come up with commercial technologies to separate the magnesium from the lithium.

You then have a lithium product lithium carbonate product.

Can.

Either choose to sell the lithium carbonate or upgrade it even further so we continue to stay in touch with a lot of the companies that are working on the technology to try to separate it from the magnesium because thats. The most expensive part for us given our lithium reserves so.

<unk>.

Just want to be clear.

We have said the same thing that we're working with a variety of companies that are working on the technologies to separate those and we are following lithium prices extremely closely but we have yet to see a commercial technology.

And we've had several people approach us about trying to do a pilot test.

But there just hasn't been the success at separating magnesium from lithium on a commercial basis yet.

Okay and on the water feasibility study I appreciate all the details you provided in my prepared remarks, what was the amount of water you said that normally is getting injected into the.

The HB system and is the study to see if this.

Messes with like the oil blanket that would be in solution mining or is this to add to that.

Yes, I guess is there anything else you could add to what would make this unique solution.

Well, let me let me put it this way we currently inject a naturally occurring salt brine.

That that has constituent Senate that we mined potash and we don't have any problems with.

Current recycling technology, our treatment of produced water technology.

<unk>.

Just today can treat produced water as long as it's not attempting to desalinate the produced water to a higher standard already than what we're injecting underground with our rustler well.

So we just need to run a pilot study I mean, even though we've got the the results off the back end of a recycling plant and we've got the result, the chemical analysis of what we're currently injecting in a Ross store in order to meet the regulatory thresholds, we have to do a pilot study.

<unk>.

And that shows.

With a peer reviewed group and a study group of seven seven handpicked people have already been picked who have already chosen to do it and peer review that everything that we know to be true.

We go out and we do it and it's done in a quote unquote study fashion.

According to the guidelines set forth by the produced water consortium that this concept has been adequately studied.

And what makes intrepid different.

As we already have a closed loop system. So there is no discharge.

And we already have monitoring wells that have been.

In existence for well over a decade.

And we don't have any leakage from our current solution mines.

So we're extremely well positioned we just have to check regulatory boxes that were set forth in house Bill 546, the produced water Act to put produced water to beneficial use.

So.

I hope I answered your question.

No I I guess I'm, just trying to understand if its successful how much water.

Produced water.

Could this right now I'm wondering within their day.

Right now what we inject is about 100000 barrels a day.

We believe.

<unk>.

That we could we could slowly ramp that up and 50000 barrel increments we've got.

For example, we own the Amax mine, it's already permitted to inject into it so we need to build a pipeline up to it.

Given the ESG the clear ESG benefits of this project there are several oil companies that are interested.

In partnering on the project because of the ESG benefits.

In theory, and I want to say that very stressful in theory.

We could get up to three 300000 barrels a day.

<unk> injection.

And we could we could actually store that for at least 10 years without having to build any new ponds. The benefit is that we would then produce more potash.

We'd have to build more ponds, but the potash grade of the brine by injecting more brine.

And giving it more residence time, youre going to produce a higher grade of potash brine into your potash.

Bonds that will naturally give you increased potash production with the project all by itself.

So there are a lot of moving parts and pieces that we look forward to.

Explaining in articulating and answering questions too, but just getting it to this point has been we've had to navigate some brand new.

Our laws that have been passed and we've overcome those speed bumps.

And right now the <unk>.

Produced water consortium.

Is very excited about this project because it is a closed loop system with existing monitoring wells and most importantly, we're not we're not having to desalinate the Bronx.

We already inject a salt saturated brine. So most other beneficial use projects that are out there are trying to figure out how to take produced water desalinate, it which is the most expensive part.

And then try to use it in some agricultural fashion.

And as you know, it's that desalinization, part, which can cost anywhere from $1 $2 a barrel.

<unk>.

We actually add salt to our bromine. So we're in a very unique position.

And there would be enough produced water in that in the area around the mine I guess I'm just trying to like it's out of $100000. A day is not a small opportunity. If this is successful I guess, that's what I'm getting at.

Well, if you listen to Conoco Exxon on.

And a lot of the other oil companies there is a wall of water Raymond James has done some great research on this.

There is a tremendous amount of produced water looking for a home and we're talking multiples and multiples of what we could potentially handle.

Okay.

And just last question, obviously, I'm, obviously, I'm, a little biased, but I feel like the investment cases still being pretty misunderstood here by the market.

Do you have any update on the plans for an eventual.

Investor Day, I know the timing between Covid and the variance in the TECOS trial felt like things got.

Pushed back in time, you got messed up is that potentially back on the table at all.

This year to try to absolutely between between.

Between covered regulatory changes that we had to adapt to.

We would love to have an investor day to really explain our full cycle water management program I think with the announcement today of.

On the HP Green disposal, you now see how we still own significant fresh water rights that still go into Fracs.

Got significant recycling equipment that we're negotiating to put that recycling equipment to work and now we're talking about taking water off the back of that recycling equipment that we work and put it to use in produced water inject date to use to mine potash so hopefully.

That picture is becoming somewhat clearer as we described these various pieces.

Great I appreciate it.

This concludes the question and answer session.

I would like to turn the conference back over to Bob <unk> for any closing remarks.

I just want to thank everyone for taking the time to listen to our comments. This morning. Thank you for your interest in Intrepid and we wish everyone a great Tuesday, Thank you very much goodbye.

This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.

Yeah.

Yes.

Yeah.

Yes.

[music].

Thank you for standing by this is the conference operator, welcome to the Intrepid Potash, Inc, Q4, and year end 2021 results conference call.

As a reminder, all participants are in a listen only mode and the conference is being recorded.

After the presentation, there will be an opportunity to ask questions.

To join the question queue you May Press Star then one on your telephone keypad.

Should you need assistance during the conference call you may signal, an operator by pressing star zero.

I would now like to turn the conference over to Matt Preston Chief Financial Officer.

Please go ahead.

Thanks, Teresa and good morning, everyone.

Thanks for joining us to discuss <unk> fourth quarter and full year 2021 results with me on the call today as Intrepid <unk> co founder executive Chairman and CEO , Bob to notice also available to answer questions. During the Q&A session. Following our prepared remarks.

Our president, Brian Stone, and our vice President of sales and marketing Zachary Adams.

Please be advised that our remarks today, including answers to your questions include forward looking statements as defined by U S Securities laws.

These forward looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those currently anticipated.

These statements are based on the information available to us today, and we assume no obligation to update them.

These risks and uncertainties are described in our periodic reports filed with the Securities and Exchange Commission, which are incorporated herein by reference.

Very much and good morning to everyone for joining us we really appreciate your attendance and your interest in intrepid.

Declining physical inventories strong demand throughout the railroad strikes.

And now unfortunately turmoil in eastern Europe has significantly contributed to rising fertilizer prices.

And supporting supportive commodity environment.

Which has now led to another quarter of improving consolidated results.

We recorded adjusted net income of $8 million in the fourth quarter, bringing full year adjusted net income to $21 8 million, a $40 million increase compared to 2020.

Out of taxes spent expense since 2015.

Our potash segment generated $12 $5 million and $35 8 million of gross margin in the fourth quarter and full year 2021, respectively as.

As we capitalized on rising prices and continued strong demand fourth quarter realized pricing for potash increased to $504 per ton of $120 increase over the third quarter of 2021.

Price increases announced in both the fourth quarter of last year and most recently in February of 2022, we will continue our trend of rising prices through spring.

As we expect our realized price per ton to increase between $690 and $690 in the first quarter of 2022 and.

An increase of approximately $180 per ton over the fourth quarter of 2021.

In line with potash our trio segment continued to deliver strong results.

Rising prices and strong demand.

Posted prices moved up 30% to $40 per ton in December 2021, and we recently announced another $35 per ton price increase which is in effect as we speak today.

We expect our first quarter 2022, net realized price for trio will increase to between 440 and $450 per ton.

And we are currently booking sales for second quarter shipments at the increased price level.

Which is approximately $215 more.

Over last year.

The extra production shift we recently added at our East mine.

Adding some much needed production and will help us match, the strong demand and positive outlook for the specialty fertilizer through the first half.

With our oilfield activity.

Recent increases in oil price continue to spur additional investment in the Delaware basin with producers looking to capitalize on the highest oil prices in the last decade.

As expected our balance sheet remains in solid shape with $36 million of cash on hand at the very end of the year, a number which has since increased to well over $60 million as of early this week.

With a strong balance sheet and a growing cash position.

We announced in our earnings release, a $35 million share repurchase program.

In the form of a share repurchase program.

As we noted in the earnings release, our strategy Hasnt changed with the announcement of the buyback program, we still plan to invest across our business segments and remain open to opportunities both inside and outside our fence that we believe would complement our existing businesses and generate long term value.

Yeah.

We view the share repurchase program is another tool available to our team to drive shareholder value and with the approval in place we will now be able to take advantage of.

That situation, if the appropriate time presents itself.

Has the largest consumer of salt saturated brine in new Mexico.

We're also excited to announce a joint feasibility study with the new Mexico produced water consortium as technical consultant for the New Mexico environment Department to evaluate the opportunity to beneficially reuse produced water from oil and gas production and the new.

Mexico portion of the Northern Delaware Basin as an inject eight for our HB solar solution mine.

The pilot project is meant to prove the concept that treatment of produced water.

Can meet the same constituent levels necessary to comply with the standards and requirements for injection into our HB solar solution mine.

We are uniquely able to provide this service at its HB solar solution mine, which currently utilizes naturally occurring salt brine and groundwater as permitted inject dates.

Which could potentially turn our approximate 100000 barrel a day injection system into a revenue stream with the opportunity to actually grow those volumes.

As most of our investors know the HB solar solution mine uses a closed loop system in coordination with solar evaporation ponds for the solution mining of potash and a very environmentally friendly manner and is already subject to numerous monitoring wells and a permit.

The new Mexico environment Department.

The new Mexico produced water consortium.

Trans disciplinary public private partnership comprised of Academia, specifically, new Mexico State University government agencies National laboratories, and the private sector, whose mission is to advance scientific research and technology development required to guy.

Future statewide produced water policy in new Mexico.

The new Mexico produced water consortium has already approved our submitted pilot proposal pursuant to and in compliance with the New Mexico environment Department 2022 requirements for pilot testing this.

It's high priority Green pilot project is already preliminary scheduled to begin testing as early as the third quarter of 2022.

We're excited to cooperate with our public and private stakeholders and advancing the proposed environmentally friendly reuse of produced water.

We look forward to keeping the market updated as we get closer to the pilot project later this year.

Overall the outlook in the potash market is arguably never been better.

Commodity pricing and crop inventory levels remain extremely supportive as do record farmer incomes globally.

We are positioned to deliver significant growth and bottom line results and operating cash flow in 2022.

And now I'll turn the call over to Matt for a review of our financial results and outlook.

Thanks, Bob.

As Bob just highlighted we are set up to deliver an outstanding year in 2022.

With the full benefit of recent fertilizer price increases yet to materialize in our reported results full.

<unk> full year 2021, adjusted EBITDA increased to $67 $6 million more than three times, our 2020 EBITDA of approximately $21 million and we expect 2022, we will again deliver outstanding year over year growth.

As you saw in our earnings release yesterday afternoon, we released approximately $216 million of the valuation allowance against our deferred tax assets in the fourth quarter as a result of reaching both accumulative three year net income position and our improved outlook for.

For those modeling the effect on our earnings I want to reiterate some of what Bob said earlier and provide some guidance for future modeling.

Carryforwards available to us, we expect to pay minimal cash tax less than $350000 annually for at least the next few years.

Additional details regarding our deferred tax assets are included in our 10-K, which we expect to file later today.

Fourth quarter results for our potash segment benefited from higher pricing, although production was reduced compared to the prior year due to the wet weather in Carlsbad last summer.

Fourth quarter sales volumes were in line with our historic average and we remain selective during the quarter in anticipation of improved pricing in early 2022.

First half sales.

<unk> volumes to closely follow prior year with 130000 to 140000 tons for first half 2022 split evenly between the first and second quarters.

Turning towards 2022, and liquidity, we expect to spend approximately $40 million to $60 million on capital investments in 2022, with 25% to $35 million of debt on sustaining capital increased sustaining capital compared to prior years reflect some inflationary pressures and also prioritizing some deferred projects from the pack.

Last two years.

Yes.

Thank you we will now begin the question and answer session.

To join the question queue. You May Press Star then one on your telephone keypad Tahira tone acknowledging your request.

If you were using a speakerphone please pick up your handset before pressing any keys.

To withdraw your question. Please press Star then two.

We'll pause for a moment as callers join the queue.

The first question comes from Joel Jackson with BMO capital markets. Please.

Please go ahead.

Hi, good morning, everyone.

Good morning, gentlemen.

Two questions I'll ask one by one.

Can you talk about cap allocation all of that so what kind of pace.

But the buyback should we expect what kind of liquidity liquidity buffer you want to keep it all time and have a lot of stock.

We want to do there how much we'll invest there how that going do you think.

First let me talk about capital as it relates to the buy.

Buyback program.

We believe and we've said repeatedly as we begin to generate significant cash flow.

We intend to use a portion of that cash for share buybacks.

We do not intend to go into that.

To buy shares back, but we think it's most appropriate to use a hate to use the word excess cash but.

Because we will generate substantial cash.

Our intention is to use that cash when the opportunity presents itself at the appropriate stock levels to buy our stock back.

Hope that answers your question, but the main difference that I would like to make clear.

We're willing to use.

What I would call additional cash excess cash cash.

To use and share repurchase rather than going into debt.

To buy shares back.

Alright as product that was yes, sorry go ahead excuse me sorry go ahead.

It wasn't liquidity pure repeat your second question, yes, yes, how much liquidity buffer you may have already answered that and how much liquidity buffer are you comfortable there and then talk about the stack.

And how much do you think you can point to that how thats going and some of the rationale around that.

Okay.

Let me talk about spec first really the only thing I can say is all the benefits that would accrue to the sponsor will go to our shareholders. So the idea that general concept, it's a methodologies.

<unk> to raise a larger amount of capital without diluting any of our existing shareholders.

And what ever benefits totally inclusive accrue to intrepid potash as the sponsor will go straight to our shareholders and not to managers or anybody else. So it is a methodology.

To raise additional funds or larger acquisitions.

And have those benefits flow straight to our shareholders.

I'm really know and I will jump in here a little bit Joel.

S. One filed in mid January that's active we are not going to talk about this back at all on this earnings call outside of what Bob just said.

I appreciate your understanding.

Okay.

Just on potash so.

<unk>.

Potash production.

It should be normal level like asking the second half of the year and.

If we have a prolonged issue with Russian and validation supply in the world China screens at every ton of K that it can.

What options do you have when you think about Carlsbad flooding.

All mines and other places like way.

What could you do to add more capacity back what would it cost you how long would it take.

Well its a variety of questions that are all intensely under studied obviously our first shot is increasing.

The volume that we flagged at our HB solar solution mine and that that project has is already underway.

<unk>, which is teed up as a new cavern at Moab <unk>.

The design for that horizontal cavern is being designed as we speak as you know we successfully drilled four significant horizontal caverns out there to date.

All of which have added incremental production each time, we've done now.

And that project will start in the.

Most likely third or fourth quarter.

Most hopefully in the third quarter and come online for the next summer's evaporation season.

Then a wind over we had a team of engineers out there. This week looking at drilling additional deep Brian wells as well as additional brackish water wells to increase the amount of water that flows through the <unk>.

The overall system out there as you know we've got about 150000 acres of leases 40, something.

I'm, sorry, 100, plus something miles of canals, so looking at ways John .

Giant water farm so on each of those facilities looking at different ways.

Increasing our potash production as well as bringing on an additional crew at east to actually mined more langbeinite.

So I'd say those are for very concrete steps one at each facility.

Just following up on that does that mean that that pretty much done and is there any way to get potash back out of the langbeinite.

We've got a very small group looking at west.

I would say the west is probably our most expensive.

Mine to bring back one and so we're really going in.

And in a linear fashion as two cheapest tons to more expensive tons in terms of when and how we bring those back on it.

Thank you very much.

The next question comes from Vincent Andrews with Morgan Stanley .

Please go ahead.

Hi, guys. This is will hang on for Vincent.

I guess can you guys talk about any early indications of increased oilfield activity due to the higher oil prices and then like how should we be thinking about the potential tailwind.

From higher oil prices are typically how long does it take for activity just kind of see it pick up.

Well I'd tell you it was momentary it's picked up pretty quickly.

All you got to do is look at the rig count in the Delaware Basin.

I have the numbers off top of my head, but.

The phones ringing every day, so down at Intrepid South.

Here it is.

Early March we've got a sold out water book.

And so we're working with third party water providers to provide more water. So it's.

It's just going to be a very good year based on.

Our primary customers that are already looking to.

To increase their activity levels. So I think you got to do is go read.

Exxon's IR deck and Exxon has.

Announce very significant plans in the Permian go look at.

Conoco acquisition of Concho private companies or cap rock Merritt Dev.

BTA tied us.

The list goes I'm wondering on Devon of the companies that have all announced significant.

Higher expenditures in the Delaware Basin.

Got it thanks, and then I guess just tacking on to that.

I asked the question earlier, but I think last quarter, you talked about the optionality to add additional like 50000 tons of <unk>.

Dr capacity kind of pending on your ability to hire additional staff.

Can you talk about what you guys are seeing in the labor market right now.

That's a possibility I guess this year to add that additional staff to increase capacity or not.

Well, we definitely added the crude that we talked about so we were successful in hiring the personnel.

<unk>.

I'll be very honest, it's the labor market tightens with each price increase.

We have found a lot of people that have come back from the oilfield because nomadic lifestyle.

And the extended drive times I mean, if you got southeast New Mexico. It takes three hours to get anywhere there and back and so.

It's it's it's a beehive of activity.

And when you look at People's personal choices, they're choosing between a slightly higher wage, but a three hour drive.

Versus potentially a slightly lower wage a more stable job as we did not lay off anybody during COVID-19 , whereas the oil companies.

Laid off tremendous numbers of people.

I think we are.

I think that the action that we chose throughout Covid served us well.

It's just it's two very distinct labor markets in terms of what people are looking for and we clearly articulated but I don't want to make it sound like it's a cakewalk.

It's a difficult labor market.

But I do think we have a slight advantage given our.

100 years of stability.

Got it thank you.

The next question comes from Lucas Beaumont with UBS.

Please go ahead.

Hey, guys. Thanks for taking my question. So I just wanted to go back to potash again, if I could.

So you sort of flagged that you're expecting pricing to be up another $190 in the first quarter. So could you. Please just discuss for us like how much of your second quarter Order book is already locked in and how you're expecting pricing to move into the second quarter by somewhere in the sort of same spot pricing in March with the lag.

It very much.

Even if things stabilize from here, which I mean, it doesn't look like they are going to do that yet, but should we still be seeing sort of high plus pricing flowing through into the second quarter as well.

Sure.

We believe we're going to see really stable pricing throughout the end of the year.

As to the timing of when the actual price increases started and we're taking advantage of I'll, let Zack walk through that.

But we do believe what's going on globally has provided a good floor for why prices should be very stable for an extended period of time and when I say extended I'm talking the next.

12 to 18 months.

For a whole variety of reasons, which we can go back into.

Zack do you want to talk about exactly how the price increases started and when Youre second quarter increases started kicking in et cetera.

Yes, Thanks, Bob as we noted earlier, we announced a second quarter increase.

Earlier in February and.

And we've been booking sales since then I.

I think we saw really good momentum in say over the last couple of weeks.

Sure.

Spring application begins out there in the market and our buyers are coming in and customers are coming in from resupply. So.

Looking ahead to Q2 were positive right now based on realizing those volumes at the increased levels.

Alright, thanks, and instead of just wondering that.

Hey, you guys mentioned that the first half production was sort of felt like it would be about 140000 ton so I'll call it that rod.

I think.

That's a bit lower than sort of what you guys have had historically with the production issues. So I was just wondering has there been any impact given the level of volumes and kind of how you are having to <unk>.

Contracted pricing are you having to kind of.

Major customers in Asia with the lower volumes and is that causing you to maybe contracts further out and then impacting the flow through of higher pricing as we move through the year as well or is that not really affect us.

Thanks.

I would say it it's obviously worked to our benefit in that we've got fewer tons to supply.

The domestic market is extremely tight.

So if you look at the threat of the Canadian rail strike if that were to happen.

The U S market will become much much tighter.

But I would say that the domestic market is a very tight market.

And so the price increases that we've announced.

We're able to achieve all of them.

With very little pushback from customers I'm, not going to say, they're happy about it.

Well potash prices still remain in that.

3% to 5% of input cost.

Farmers are making plenty of money.

In the potash that they can that they can find that can surely afford to buy.

Alright, thank you.

Once again, if you have a question. Please press Star then one.

The next question comes from Jason <unk> with Bumbershoot Holdings.

Please go ahead.

Good afternoon.

Hey, Jason.

Just kind of a similar question to what you didn't just got an MLP, but but shifting to trio.

Quietly shifted I guess these last couple of quarters from a detractor to a pretty big bright spot.

And about the same.

Your line of questioning is the order book, there and the outlook.

Is that firming in the specialty markets Sim.

Similarly at all to how it is in the MLP market or is there shorter lead times there.

I guess you gave the figure on where tonnage is going in terms of pricing, but just trying to.

I can figure out the sustainability there, yes, let me back up as to our premium and granular products were on total allocation for 100% of that product.

As you know our standard product, which is what we then convert into pellet product.

There's very few people that buy standard other than to mix it with something else, but we are seeing.

Incredible demand.

Trio is in short supply.

In our premium product and a granular product. So we're able to like I said keep our customers on allocation.

And.

This go around our competitor is following every price increase.

In fact for the first time in years.

Our competitor actually took the price up themselves.

So.

It's nice to see trio finally, being a very significant bright spot.

And generating a lot of EBITDA and cash flow that will go to the bottom line. So I hope I answered. Your question if you need additional color zacks here to add some additional color.

Okay, well just on a GAAP basis, I guess all of that.

Gross margin there was 32% in the quarter. So it was up.

Nicely sequentially from Q3 and obviously.

It was a detractor last year with a gross deficit, but what do you think is the incremental margin there as youre taking price up another.

100, $100 a ton I don't know where its going with both the price increases I guess you said there was a new one a second one that you are now bookings for Q2 that was up to $4 50 a ton.

Level, what's the incremental margin you think there in terms of.

On the cost side.

The tightness of the market and so because.

People literally by that on a quarter by quarter basis, we don't see orders going out so far like we would see in potash it makes more sense to <unk>.

<unk> that product on a quarter by quarter basis, and as long as the market.

Remains extremely tight as it is for premium and granular.

We're very optimistic about where that market has the opportunity to go once again zax available or mats available for yes, I'll jump in there a little bit Jason we gave the guidance on Q1 pricing $4 40 to $4 50 per ton you announced another $35 increase.

In February , which we think will capture a lot of that in our second quarter sales.

Unlike the potash market, which maybe took a week or two to get started.

We're seeing a lot of growers really increase their awareness around magnesium as well as sulfur and we've had a lot of interest in our products for a second quarter, it's really driving a lot of good organic demand in the regions, we domestically haven't necessarily seen in the past and so overall outlook for trio is a specialty fertilizer.

Given those secondary nutrients is really positive today.

Okay, Great and just.

The cash figure the $60 million as of yesterday I.

I guess, besides just from a number of second from a balance sheet perspective is there anything we can or maybe should be taken away from that operationally you earned I guess almost $24 million in the first two months of the year is that before the normal collection cycle for the spring season or is there anything noteworthy.

From a working capital standpoint, and the 60 million figure versus $36 million down there.

Yes, certainly it starts to reflect.

Some of our early 2022 sales rolling into our into our bank account, there, but I'd say the majority of the spring season really peaks March April .

We still got a lot of good.

Good information and good news to come here for the spring season, we're really just getting started when it comes to the operating cash flow in our results.

Okay.

I asked about it a couple of quarters ago about lithium prices have been kind of go nuts here as well as a lot of other commodities I don't I don't remember if you were evaluating it.

Carbonate versus hydroxide.

Hydroxide resourcing to be totally honest I'm not sure if I can fully understand the difference.

Just at a high level with the prices moving higher.

Is this changing the calculus at all on the value of those reserves and potential to create a royalty stream there for someone willing to go after that business.

Which there are several pilot studies going on across the world by a couple of different companies.

That are attempting to come up with commercial technologies to separate the magnesium from the lithium.

You then have a lithium product lithium carbonate product.

Can.

<unk>.

Just want to be clear.

And we've had several people approach us about trying to do a pilot test.

But there just hasn't been the success at separating magnesium from lithium on a commercial basis yet.

Okay and on the water feasibility study I appreciate all the details you provided in my prepared remarks, what was the amount of water you said that normally is getting injected into the.

The HB system and is the study to see if this.

Messes with like the oil blanket that would be in solution mining or is this to add to that.

I guess is there anything else you could add to what would make this unique solution.

Well, let me let me put it this way we currently inject a naturally occurring salt brine.

That has constituent Senate, we mined potash and we don't have any problems with.

Current recycling technology, our treatment of produced water technology.

<unk>.

Just today can treat produced water as long as it's not attempting to desalinate the produced water to a higher standard already than what we're injecting underground with our rustler well.

<unk>.

And that shows.

With a peer reviewed group and a study group of seven seven handpicked people have already been picked.

<unk> chosen to do it and peer review that everything that we know to be true.

We got and we do it and it's done in a quote unquote study fashion.

According to the guidelines set forth by the produced water consortium that this concept has been adequately studied.

It makes intrepid different is we already have a closed loop system. So there is no discharge and we already have monitoring wells that have been.

In existence for well over a decade.

And we don't have any leakage from our current solution mines.

So we're extremely well positioned we just have to check regulatory boxes.

So were set forth in house Bill 546, the produced water Act to put produced water to beneficial use.

So.

I hope I answered your question.

No I I guess I'm, just trying to understand if its successful how much water how.

Much produce water.

Could this right now I'm wondering within their day.

Right now what we inject is about 100000 barrels a day.

We believe.

<unk>.

That we could we could slowly ramped that up in 50000 barrel increments we've got.

For example, we own the Amax mine, it's already permitted to inject into it so we need to build a pipeline up to it.

Given the ESG.

Clear ESG benefits of this project there are several oil companies that are interested.

In partnering on the project because of the ESG benefits.

In theory, and I want to say that very stressful in theory.

We could get up to three 300000 barrels a day.

The injection.

And we could we could actually store that for at least 10 years without having to build any new ponds. The benefit is that we would then produce more potash.

We'd have to build more ponds, but the potash grade of the brine by injecting more brine.

And giving it more residence time, youre going to produce a higher grade of potash brine into your potash.

Ponds that will naturally give you increased potash production with the project all by itself.

So there are a lot of moving parts and pieces that we look forward to.

Explaining in articulating and answering questions too, but just getting it to this point has been we've had to navigate some brand new.

Laws have been passed and we've overcome those.

Speed bumps.

And right now the.

Produced water consortium.

<unk> is very excited about this project because it is a closed loop system with existing monitoring wells and most importantly, we're not we're not having to desalinate. The Bronx, we already inject a salt saturated brine. So most other beneficial use projects that are out there are trying to fill.

They're out how to take produced water.

Desalinate, it which is the most expensive part and then try to use it in some agricultural fashion.

And as you know, it's that desalinization, part, which can cost anywhere from $1 $2 a barrel.

<unk>.

We actually add salt to our bromine. So we're in a very unique position.

And there would be enough produced water in that in the area around the mine I guess I'm just trying to like it's out of 100000 barrels a day is not a small opportunity. If this is successful I guess, that's what I'm getting at.

Well, if you listen to Conoco Exxon.

And a lot of the other oil companies there is a wall of water Raymond James has done some great research on this.

There is a tremendous amount of produced water looking for home and we're talking multiples and multiples of what we could potentially handle.

Okay.

And just last question, obviously, I'm, obviously, I'm, a little biased, but I feel like the investment cases still being pretty misunderstood here by the market.

Do you have any update on the plans for an eventual.

Investor Day, I know the timing between Covid and the variance in the TECOS trial felt like things got pushed back and timing got messed up is that potentially back on the table at all.

For this year to try to absolute between between between covered regulatory changes that we had to adapt to.

We would love to have an investor day to really explain our full cycle water management program I think with the announcement today of.

The HB Green disposal, you now see how.

We still own significant fresh water rights that still go into Fracs.

Got significant recycling.

Equipment that we're negotiating to put that recycling equipment to work and now we're talking about taking water off the back of that recycling equipment that we work and put it to use in produced water inject date to use to mine potash. So hopefully that picture is becoming somewhat clear.

As we described these various pieces.

Great I appreciate it thanks.

This concludes the question and answer session.

I would like to turn the conference back over to Bob <unk> for any closing remarks.

I just want to thank everyone for taking the time to listen to our comments. This morning. Thank you for your interest in Intrepid and we wish everyone a great Tuesday, Thank you very much goodbye.

This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.

Q4 2021 Intrepid Potash Inc Earnings Call

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