EX-99.1 2 ex991q12018.htm EXHIBIT 99.1 Exhibit
intrepidlogo.jpg

Intrepid Potash Announces First Quarter 2018 Results

DENVER, April 24, 2018 - Intrepid Potash, Inc. (Intrepid) (NYSE:IPI) today reported its results for the first quarter of 2018.

Key Q1 Takeaways

•
Net income of $1.8 million, or $0.01 per share, an improvement of $15.5 million, or $0.18 per share, from the first quarter of 2017.
•
Cash flow from operations of $13.9 million.
•
Adjusted EBITDA(1) of $11.6 million.
•
Potash segment gross margin of $5.0 million, a $2.7 million increase compared to the prior-year period.
•
Trio® segment gross deficit of $2.1 million, a $3.1 million improvement compared to the first quarter of 2017.
•
Total sales of $53.2 million.
•
Total water activity(1) of $9.2 million in the first quarter consisted of sales of $4.8 million, by-product credits of $0.7 million, and $3.7 million received from a separate prearranged water commitment.

"Solid operational execution, combined with the strategic moves we have made to strengthen our business, provided a solid start to 2018." said Bob Jornayvaz, Intrepid's Executive Chairman, President and CEO. "Our focus on by-products led to lower potash costs and an improvement in margin compared to the prior year. We have also seen healthy demand in the domestic Trio® market and expect that to continue in the second quarter. These factors, combined with a record quarter for our water business, yielded meaningful cash flow, improved our liquidity position, and marked what we believe is a transition for the business toward increased profitability and a more growth-focused strategy. Internationally, having worked to establish a footprint in several new markets with our specialty Trio® product, we are refining our strategy to concentrate our sales into markets with more favorable shipping and margin opportunities."

Jornayvaz continued, "Entering the second quarter, we expect our dedicated water team to drive continued growth in water sales. Our new oilfield services group and trucking initiatives are ramping up, and combined with the domestic price increases announced late last year, should provide a boost to the bottom line. We remain on track to achieve the $20-30 million in water sales for 2018."


1


Consolidated Results

Intrepid generated net income of $1.8 million, or $0.01 per share and consolidated gross margin of $7.2 million in the first quarter of 2018. Increases in net income and gross margin when compared to the first quarter of 2017 were primarily the result of lower potash cost of goods sold, increased water sales, and reduced lower-of-cost-or-market adjustments in the Trio® segment. Net income also benefited from lower interest expense as a result of a reduced outstanding debt balance and lower effective interest rate on Intrepid's senior notes.

Segment Highlights


Potash

 
 
Three Months Ended March 31,
 
 
2018
 
2017
 
 
(in thousands, except per ton data)
Potash sales
 
$
27,064

 
$
27,220

Potash gross margin
 
$
4,976

 
$
2,328

 
 
 
 
 
Potash production volume (in tons)
 
125

 
118

Potash sales volume (in tons)
 
97

 
101

 
 
 
 
 
Average potash net realized sales price per ton(1)
 
$
243

 
$
240


During the first quarter of 2018, the potash segment generated gross margin of $5.0 million, an increase of $2.7 million compared with the same period in 2017. The increase in gross margin was driven primarily by increased by-product production and sales and improved evaporation, which led to a lower total cost of goods sold.

Potash sales were similar to the prior year as robust sales into agricultural markets were offset by fewer tons sold into the industrial market. Potash production increased 6% compared to the prior year due to increased runtime.

Trio® 

2

 
 
Three Months Ended March 31,
 
 
2018
 
2017
 
 
(in thousands, except per ton data)
Trio® sales
 
$
21,237

 
$
21,112

Trio® gross deficit
 
$
(2,078
)
 
$
(5,184
)
 
 
 
 
 
Trio® production volume (in tons)
 
47

 
71

Trio® sales volume (in tons)
 
77

 
76

 
 
 
 
 
Average Trio® net realized sales price per ton(1)
 
$
194

 
$
202


The Trio® segment generated a gross deficit of $2.1 million in the first quarter of 2018, an improvement of $3.1 million compared to the first quarter of 2017. Lower gross deficit was driven by a reduction in lower-of-cost-or-market adjustments on international shipments.

Sales volumes were similar to the prior year with strong domestic demand offsetting a decrease in international sales as Intrepid continues to refine its international strategy. Average net realized sales price1 decreased compared to the prior period due to price decreases announced during the second half of 2017. The price increase announced in December 2017 became effective on spot tons sold during the first quarter and tons shipped in March. Intrepid expects the full effect of the price increase to be realized on domestic sales in the second quarter.

Production decreased 34% in the first quarter of 2018, compared to the prior year, as Intrepid began operating at a reduced rate in June 2017 to manage inventory levels and match production to expected demand.

Liquidity

Cash provided by operations was $13.9 million during the first quarter and cash spent on capital investments was $6.5 million. As of March 31, 2018, Intrepid had $6.1 million in cash and cash equivalents and $31.4 million available under its credit facility. The amount outstanding under Intrepid’s senior notes was $60 million, with a required principal prepayment of $10 million due December 31, 2018. In addition, Intrepid had $1.5 million outstanding under its credit facility.

Notes

1 Adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA), total water activity, and average net realized sales price per ton are non-GAAP financial measures. See the non-GAAP reconciliations set forth later in this press release for additional information.
 

3

Unless expressly stated otherwise or the context otherwise requires, references to tons in this press release refer to short tons. One short ton equals 2,000 pounds. One metric tonne, which many international competitors use, equals 1,000 kilograms or 2,204.62 pounds.

Conference Call Information

A teleconference to discuss the quarter is scheduled for April 24, 2018, at 10:00 a.m. ET. The dial-in number is 1-800-319-4610 for U.S. and Canada, and is +1-631-891-4304 for other countries. The call will also be streamed on the Intrepid website, intrepidpotash.com.

An audio recording of the conference call will be available through May 24, 2018, at intrepidpotash.com and by dialing 1-800-319-6413 for U.S. and Canada, or +1-631-883-6842 for other countries. The replay will require the input of the conference identification number 2192.

About Intrepid

Intrepid Potash (NYSE:IPI) is the only U.S. producer of muriate of potash. Potash is applied as an essential nutrient for healthy crop development, utilized in several industrial applications and used as an ingredient in animal feed. Intrepid also produces a specialty fertilizer, Trio®, which delivers three key nutrients, potassium, magnesium, and sulfate, in a single particle. Intrepid also sells water and by-products such as salt, magnesium chloride, and brine.

Intrepid serves diverse customers in markets where a logistical advantage exists; and is a leader in the utilization of solar evaporation production, one of the lowest cost, environmentally friendly production methods for potash. Intrepid's production comes from three solar solution potash facilities and one conventional underground Trio® mine.

Intrepid routinely posts important information, including information about upcoming investor presentations and press releases, on its website under the Investor Relations tab. Investors and other interested parties are encouraged to enroll on the Intrepid website, intrepidpotash.com to receive automatic email alerts or Really Simple Syndication (RSS) feeds regarding new postings.

Forward-looking Statements

This document contains forward-looking statements - that is, statements about future, not past, events. The forward-looking statements in this document relate to, among other things, statements about Intrepid's future financial performance, production costs, and operating plans, and its market outlook. These statements are based on assumptions that Intrepid believes are reasonable. Forward-looking statements by their nature address matters that are uncertain. The particular uncertainties that could cause Intrepid's actual results to be materially different from its forward-looking statements include the following:

•
changes in the price, demand, or supply of Intrepid's products;

4

•
Intrepid's ability to successfully identify and implement any opportunities to expand sales of water, by-products, and other non-potassium related products or other revenue diversification activities;
•
challenges to Intrepid's water rights;
•
Intrepid's ability to comply with the terms of its senior notes and its revolving credit facility, including the underlying covenants, to avoid a default under those agreements;
•
Intrepid's ability to expand Trio® sales internationally and manage risks associated with international sales, including pricing pressure and freight costs;
•
Intrepid's ability to successfully identify and consummate profitable growth opportunities;
•
the costs of, and Intrepid's ability to successfully execute, any strategic projects;
•
declines or changes in agricultural production or fertilizer application rates;
•
declines in the use of potassium-related products or water by oil and gas companies in their drilling operations;
•
further write-downs of the carrying value of assets, including inventories;
•
circumstances that disrupt or limit production, including operational difficulties or variances, geological or geotechnical variances, equipment failures, environmental hazards, and other unexpected events or problems;
•
changes in reserve estimates;
•
currency fluctuations;
•
adverse changes in economic conditions or credit markets;
•
the impact of governmental regulations, including environmental and mining regulations, the enforcement of those regulations, and governmental policy changes;
•
adverse weather events, including events affecting precipitation and evaporation rates at Intrepid's solar solution mines;
•
increased labor costs or difficulties in hiring and retaining qualified employees and contractors, including workers with mining, mineral processing, or construction expertise;
•
changes in the prices of raw materials, including chemicals, natural gas, and power;
•
Intrepid's ability to obtain and maintain any necessary governmental permits or leases relating to current or future operations;
•
interruptions in rail or truck transportation services, or fluctuations in the costs of these services;
•
Intrepid's inability to fund necessary capital investments; and
•
the other risks, uncertainties, and assumptions described in Intrepid's periodic filings with the Securities and Exchange Commission, including in "Risk Factors" in Intrepid's Annual Report on Form 10-K for the year ended December 31, 2017.

In addition, new risks emerge from time to time. It is not possible for Intrepid to predict all risks that may cause actual results to differ materially from those contained in any forward-looking statements Intrepid may make.

All information in this document speaks as of the date of this release. New information or events after that date may cause our forward-looking statements in this document to change. We

5

undertake no duty to update or revise publicly any forward-looking statements to conform the statements to actual results or to reflect new information or future events.


Contact:
Matt Preston, Investor Relations        
Phone: 303-996-3048
Email: matt.preston@intrepidpotash.com

6



INTREPID POTASH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2018 AND 2017
(In thousands, except share and per share amounts)

 
 
Three Months Ended March 31,
 
 
2018
 
2017
Sales
 
$
53,195

 
$
48,655

Less:
 
 
 
 
Freight costs
 
9,734

 
8,721

Warehousing and handling costs
 
2,276

 
2,770

Cost of goods sold
 
33,280

 
35,873

Lower-of-cost-or-market inventory adjustments
 
705

 
3,824

Gross Margin (Deficit)
 
7,200

 
(2,533
)
 
 
 
 
 
Selling and administrative
 
3,970

 
4,404

Accretion of asset retirement obligation
 
417

 
389

Care and maintenance expense
 
128

 
692

Other operating expense
 
168

 
1,650

Operating Income (Loss)
 
2,517

 
(9,668
)
 
 
 
 
 
Other Income (Expense)
 
 
 
 
Interest expense, net
 
(878
)
 
(4,421
)
Interest income
 
98

 
3

Other income
 
20

 
413

Income (Loss) Before Income Taxes
 
1,757

 
(13,673
)
 
 
 
 
 
Income Tax Expense
 
—

 
(5
)
Net Income (Loss)
 
$
1,757

 
$
(13,678
)
 
 
 
 
 
Weighted Average Shares Outstanding:
 
 
 
 
Basic
 
127,661,458

 
81,992,071

Diluted
 
130,764,998

 
81,992,071

Earnings (Loss) Per Share:
 
 
 
 
Basic
 
$
0.01

 
$
(0.17
)
Diluted
 
$
0.01

 
$
(0.17
)



7


INTREPID POTASH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
AS OF MARCH 31, 2018 AND DECEMBER 31, 2017
(In thousands, except share and per share amounts)

 
 
March 31,
 
December 31,
 
 
2018
 
2017
ASSETS
 
 
 
 
Cash and cash equivalents
 
$
6,085

 
$
1,068

Accounts receivable:
 
 
 
 
Trade, net
 
29,605

 
17,777

Other receivables, net
 
969

 
762

Refundable income taxes
 
—

 
2,663

Inventory, net
 
75,916

 
83,126

Prepaid expenses and other current assets
 
5,175

 
6,088

Total current assets
 
117,750

 
111,484

 
 
 
 
 
Property, plant, equipment, and mineral properties, net
 
359,362

 
364,542

Long-term parts inventory, net
 
31,106

 
30,611

Other assets, net
 
3,804

 
3,955

Total Assets
 
$
512,022

 
$
510,592

 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
Accounts payable:
 
 
 
 
Trade
 
$
8,262

 
$
11,103

Related parties
 
31

 
28

Income taxes payable
 
180

 
—

Accrued liabilities
 
8,618

 
8,074

Accrued employee compensation and benefits
 
3,579

 
4,317

Advances on credit facility
 
1,500

 
3,900

Current portion of long-term debt
 
10,000

 
10,000

Other current liabilities
 
3,746

 
65

Total current liabilities
 
35,916

 
37,487

 
 
 
 
 
Long-term debt, net
 
49,470

 
49,437

Asset retirement obligation
 
21,893

 
21,476

Other non-current liabilities
 
—

 
102

Total Liabilities
 
107,279

 
108,502

 
 
 
 
 
Commitments and Contingencies
 
 
 
 
Common stock, $0.001 par value; 400,000,000 shares authorized;
 
 
 
 
127,688,437 and 127,646,530 shares outstanding
 
 
 
 
at March 31, 2018, and December 31, 2017, respectively
 
128

 
128

Additional paid-in capital
 
646,709

 
645,813

Retained deficit
 
(242,094
)
 
(243,851
)
Total Stockholders' Equity
 
404,743

 
402,090

Total Liabilities and Stockholders' Equity
 
$
512,022

 
$
510,592




8


INTREPID POTASH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2018 AND 2017
(In thousands)
 
 
Three Months Ended March 31,
 
 
2018
 
2017
Cash Flows from Operating Activities:
 
 
 
 
Net income (loss)
 
$
1,757

 
$
(13,678
)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
 
Depreciation, depletion, and accretion
 
8,932

 
9,323

Amortization of deferred financing costs
 
183

 
821

Stock-based compensation
 
947

 
989

Lower-of-cost-or-market inventory adjustments
 
705

 
3,824

(Gain) loss on disposal of assets
 
(34
)
 
1,559

Changes in operating assets and liabilities:
 
 
 
 
Trade accounts receivable, net
 
(11,828
)
 
(8,776
)
Other receivables, net
 
(207
)
 
(399
)
Refundable income taxes
 
2,844

 
(4
)
Inventory, net
 
6,009

 
1,643

Prepaid expenses and other current assets
 
914

 
3,872

Accounts payable, accrued liabilities, and accrued employee
compensation and benefits
 
1

 
(64
)
Other liabilities
 
3,681

 
(819
)
Net cash provided by (used in) operating activities
 
13,904

 
(1,709
)
 
 
 
 
 
Cash Flows from Investing Activities:
 
 
 
 
Additions to property, plant, equipment, and mineral properties
 
(6,470
)
 
(2,423
)
Proceeds from sale of property, plant, equipment, and mineral properties
 
34

 
5,553

Net cash (used in) provided by investing activities
 
(6,436
)
 
3,130

 
 
 
 
 
Cash Flows from Financing Activities:
 
 
 
 
Issuance of common stock, net of transaction costs
 
—

 
57,468

Repayments of long-term debt
 
—

 
(46,000
)
Proceeds from short-term borrowings on credit facility
 
13,500

 
—

Repayments of short-term borrowings on credit facility
 
(15,900
)
 
—

Employee tax withholding paid for restricted stock upon vesting
 
(62
)
 
(109
)
Proceeds from exercise of stock options
 
11

 
—

Net cash (used in) provided by financing activities
 
(2,451
)
 
11,359

 
 
 
 
 
Net Change in Cash, Cash Equivalents and Restricted Cash
 
5,017

 
12,780

Cash, Cash Equivalents and Restricted Cash, beginning of period
 
1,549

 
8,470

Cash, Cash Equivalents and Restricted Cash, end of period
 
$
6,566

 
$
21,250

 
 
 
 
 
Supplemental disclosure of cash flow information
 
 
 
 
Net cash paid (refunded) during the period for:
 
 
 
 
   Interest
 
$
95

 
$
2,467

   Income taxes
 
$
(2,843
)
 
$
10

Accrued purchases for property, plant, equipment, and mineral properties
 
$
933

 
$
214


9


INTREPID POTASH, INC.
SELECTED OPERATING AND SEGMENT DATA (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2018 AND 2017
 
 
Three Months Ended March 31,
 
 
2018
 
2017
Production volume (in thousands of tons):
 
 
 
 
   Potash
 
125

 
118

   Langbeinite
 
47

 
71

Sales volume (in thousands of tons):
 
 
 
 
   Potash
 
97

 
101

   Trio®
 
77

 
76

 
 
 
 
 
Average net realized sales price per ton (1)
 
 
 
 
   Potash
 
$
243

 
$
240

   Trio®
 
$
194

 
$
202



Three Months Ended March 31, 2018 (in thousands):
 
Potash
 
Trio®
 
Other
 
Consolidated
Sales
 
$
27,064

 
$
21,237

 
$
4,894

 
$
53,195

Less: Freight costs
 
3,458

 
6,276

 
—

 
9,734

         Warehousing and handling costs
 
1,154

 
1,118

 
4

 
2,276

         Cost of goods sold
 
17,476

 
15,216

 
588

 
33,280

         Lower-of-cost-or-market inventory adjustments
 
—

 
705

 
—

 
705

Gross Margin (Deficit)
 
$
4,976

 
$
(2,078
)
 
$
4,302

 
$
7,200

Depreciation, depletion and accretion incurred(2)
 
$
7,138

 
$
1,690

 
$
104

 
$
8,932

 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2017 (in thousands):
 
Potash
 
Trio®
 
Other
 
Consolidated
Sales
 
$
27,220

 
$
21,112

 
$
323

 
$
48,655

Less: Freight costs
 
2,959

 
5,762

 
—

 
8,721

         Warehousing and handling costs
 
1,512

 
1,258

 
—

 
2,770

         Cost of goods sold
 
20,421

 
15,452

 
—

 
35,873

         Lower-of-cost-or-market inventory
adjustments
 
—

 
3,824

 
—

 
3,824

Gross Margin (Deficit)
 
$
2,328

 
$
(5,184
)
 
$
323

 
$
(2,533
)
Depreciation, depletion and accretion incurred(2)
 
$
7,563

 
$
1,699

 
$
61

 
$
9,323



(1) Average net realized sales price is a non-GAAP financial measure. See the non-GAAP reconciliations set forth later in this press release for additional information.

(2) Depreciation, depletion and accretion incurred for potash and Trio® excludes depreciation, depletion and accretion amounts absorbed in or (relieved from) inventory.




10

INTREPID POTASH, INC.
UNAUDITED NON-GAAP RECONCILIATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2018 AND 2017
(In thousands, except per share amounts)

To supplement Intrepid's consolidated financial statements, which are prepared and presented in accordance with GAAP, Intrepid uses several non-GAAP financial measures to monitor and evaluate its performance. These non-GAAP financial measures include adjusted net income (loss), adjusted net income (loss) per diluted share, adjusted EBITDA, average net realized sales price per ton, and total water activity. These non-GAAP financial measures should not be considered in isolation, or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, because the presentation of these non-GAAP financial measures varies among companies, these non-GAAP financial measures may not be comparable to similarly titled measures used by other companies.

Intrepid believes these non-GAAP financial measures provide useful information to investors for analysis of its business. Intrepid uses these non-GAAP financial measures as one of its tools in comparing period-over-period performance on a consistent basis and when planning, forecasting, and analyzing future periods. Intrepid believes these non-GAAP financial measures are used by professional research analysts and others in the valuation, comparison, and investment recommendations of companies in the potash mining industry. Many investors use the published research reports of these professional research analysts and others in making investment decisions.

Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Diluted Share

Adjusted net income (loss) and adjusted net income (loss) per diluted share are calculated as net income (loss) or income (loss) per diluted share adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliation below. Intrepid considers these non-GAAP financial measures to be useful because they allow for period-to-period comparisons of its operating results excluding items that Intrepid believes are not indicative of its fundamental ongoing operations.



11

Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss):
 
Three Months Ended March 31,
 
2018
 
2017
 
(in thousands)
Net Income (Loss)
$
1,757

 
$
(13,678
)
Adjustments
 
 
 
     Write-off of deferred financing fees(1)
—

 
518

     Make-whole payment(2)
—

 
794

     Calculated income tax effect(3)
—

 
—

          Total adjustments
—

 
1,312

Adjusted Net Income (Loss)
$
1,757

 
$
(12,366
)

Reconciliation of Net Income (Loss) per Share to Adjusted Net Income (Loss) per Share:
 
Three Months Ended March 31,
 
2018
 
2017
Net Income (Loss) Per Diluted Share
$
0.01

 
$
(0.17
)
Adjustments

 

     Write-off of deferred financing fees(1)
—

 
0.01

     Make-whole payment(2)
—

 
0.01

     Calculated income tax effect(3)
—

 
—

          Total adjustments
—

 
0.02

Adjusted Net Income (Loss) Per Diluted Share
$
0.01

 
$
(0.15
)


(1) During the first quarter of 2017, Intrepid made an early repayment of $46.0 million of principal on its senior notes. As a result, Intrepid wrote off a portion of the financing fees that had previously been capitalized related to the senior notes. The write-off of deferred financing fees is reflected in Intrepid's financial statements as interest expense.

(2) During the first quarter of 2017, Intrepid made an early repayment of principal on its senior notes. The payment totaled $46.8 million, of which $0.8 million related to an additional make-whole payment.

(3) Due to Intrepid's valuation allowance against its deferred tax asset, this calculation assumes a 0% effective tax rate.

Adjusted EBITDA

Adjusted earnings before interest, taxes, depreciation, and amortization (or adjusted EBITDA) is calculated as net income (loss) adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliation below. Intrepid considers adjusted EBITDA to be useful because the measure reflects Intrepid's operating performance before the effects of certain non-cash items and other items that Intrepid believes are not indicative of its core operations. Intrepid uses adjusted EBITDA to assess operating performance.
    

12

Reconciliation of Net Income (Loss) to Adjusted EBITDA:
 
 
Three Months Ended March 31,
 
 
2018
 
2017
 
 
(in thousands)
Net Income (Loss)
 
$
1,757

 
$
(13,678
)
     Interest expense
 
878

 
4,421

     Income tax expense
 
—

 
5

     Depreciation, depletion, and accretion
 
8,932

 
9,323

          Total adjustments
 
9,810

 
13,749

Adjusted EBITDA
 
$
11,567

 
$
71




Average Net Realized Sales Price per Ton

Average net realized sales price per ton is calculated as sales, less freight costs, divided by the number of tons sold in the period. Intrepid considers average net realized sales price per ton to be useful because it shows average per-ton pricing without the effect of certain transportation and delivery costs. When Intrepid arranges transportation and delivery for a customer, it includes in revenue and in freight costs the costs associated with transportation and delivery. However, many of the Intrepid's customers arrange for and pay their own transportation and delivery costs, in which case these costs are not included in Intrepid's revenue and freight costs. Intrepid uses average net realized sales price per ton as a key performance indicator to analyze sales and pricing trends.

Reconciliation of Sales to Average Net Realized Sales Price per Ton:
 
 
Three Months Ended March 31,
 
 
2018
 
2017
 
 
(in thousands, except per-ton data)

 
 
Potash
 
Trio®
 
Total
 
Potash
 
Trio®
 
Total
Sales
 
$
27,064

 
$
21,237

 
$
48,301

 
$
27,220

 
$
21,112

 
$
48,332

Freight costs
 
3,458

 
6,276

 
9,734

 
2,959

 
5,762

 
8,721

   Subtotal
 
$
23,606

 
$
14,961

 
$
38,567

 
$
24,261

 
$
15,350

 
$
39,611

 
 
 
 
 
 
 
 
 
 
 
 
 
Divided by:
 
 
 
 
 
 
 
 
 
 
 
 
Tons sold
 
97

 
77

 
 
 
101

 
76

 
 
   Average net realized sales price per ton
 
$
243

 
$
194

 
 
 
$
240

 
$
202

 
 

Total Water Activity

Total water activity is calculated as sales adjusted for items shown below. Depending on the source of the water sold, Intrepid records the sale of water as either sales or a by-product credit. Intrepid also receives payments for future water sales from time to time. As the location of water sold can vary each quarter, total water activity may be a useful indicator of overall water demand.


13

 
 
Three Months Ended March 31,
 
 
2018
 
 
(in thousands)
Sales
 
$
53,195

Less: Non-water sales
 
(48,346
)
By-product credits - water
 
675

Contract liabilities - water
 
3,687

     Total Adjustments
 
(43,984
)
Total Water Activity
 
$
9,211





14