Intrepid Potash, Inc. (NYSE:IPI) Q4 2018 Earnings Conference Call - Final Transcript

Mar 12, 2019 • 10:00 am ET


Intrepid Potash, Inc. (NYSE:IPI) Q4 2018 Earnings Conference Call - Final Transcript


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Thank you for standing by. This is the conference operator. Welcome to the Intrepid Potash Fourth Quarter and Year End 2018 Earnings Conference Call. (Operator Instructions)

I would now like to turn the conference over to Matt Preston, Investor Relations. Please go ahead, sir.

Matt Preston

Thanks, Claudia. Good morning and welcome everyone. I remind you that parts of our discussion today, will include forward-looking statements, as defined by the US Securities Laws. These statements are not guarantees of future performance and are based on a number of assumptions, which we believe are reasonable. These statements are based on the information available to us today, and we assume no obligation to update them. You can find more information about risks and uncertainties to our future performance in our periodic reports filed with the SEC.

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 this morning's press release. Our SEC filings and press releases are available on our website at

Presenting on the call today, are Bob Jornayvaz, our Co-Founder, Executive Chairman, President and CEO; and Joseph Montoya, Vice President and Chief Accounting Officer. Mark McDonald, Vice President of Sales and Marketing; and Alex Wagner, Vice President of Business Development for Oilfield Solutions, are also available for questions.

I'll now turn the call over to Bob.

Robert Jornayvaz

Thank you, Matt, and good morning to everyone, and we appreciate you joining us. As you know, we delivered a solid fourth quarter, highlighted by improvements in net income and cash flow, continued strength in our Potash segment, and a return to positive gross margin for our Trio segment.

Net income improved $9.3 million and $34.4 million in the fourth quarter and full-year of 2018 compared with the same periods last year, while full-year operating cash flow increased $47.5 million year-over-year. Total cash received for water ended the year at $30.2 million. Our improved liquidity position, has allowed us to actively pursue opportunities to grow our diverse business lines and we recently announced details on our pending acquisition of a 51% undivided interest in the Dinwiddie Jal Ranch and related assets. This pending acquisition which we will operate, as the Intrepid South Ranch, will add water rights, surface rights, saltwater disposal and other oilfield related assets to our existing portfolio in the perfect location to the south to fully complement and now allow us to further expand our footprint.

The significant infrastructure announcements of tens of millions of dollars of pipelines and frac ponds on the east side of our property to which we will market additional water, will allow for the continued expansion of current sales from our existing rights or legacy rights as some have referred to them. The location and diverse set of revenues from the Dinwiddie Ranch are a great strategic fit, as we grow our water supply and develop a more complete midstream water infrastructure system for our partners in Southeast New