Intrepid Potash, Inc. (NYSE:IPI) Q4 2023 Earnings Conference Call March 7, 2024 12:00 PM ET

Company Participants

Evan Mapes - Investor Relations

Robert Jornayvaz - Chairman and Chief Executive Officer

Matthew Preston - Chief Financial Officer

Zachry Adams - Vice President of Sales and Marketing

Conference Call Participants

Joel Jackson - BMO Capital Markets

Lucas Beaumont - UBS

Jason Ursaner - Bumbershoot Holdings

Operator

Thank you for standing by. This is the conference operator. Welcome to the Intrepid Potash, Inc. Fourth Quarter 2023 Results Conference Call. As a reminder, all participants are in a listen-only mode and the conference is being recorded. [Operator Instructions]

I would now like to turn the conference over to Evan Mapes, Investor Relations. Please go ahead.

Evan Mapes

Thank you, Krista. Good morning, everyone. Thanks for joining us to discuss and review Intrepid's fourth quarter 2023 results. With me today is Intrepid's Co-Founder, Executive Chairman and CEO; Bob Jornayvaz; and CFO, Matt Preston. Also available to answer questions during the Q&A session is the Vice President of Sales and Marketing, Zachry Adams; and our Vice President of Operations, John Galassini.

Please be advised that our remarks today 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 really anticipated are based upon 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 SEC, which are incorporated here by reference.

During today's call, we refer to certain non-GAAP financial and operational measures. Reconciliations to the mostly directly comparable GAAP measures are included in yesterday's press release. Our SEC filings and press releases are available on our website at intrepidpotash.com.

I'll now turn the call over to Bob.

Robert Jornayvaz

Thank you, Evan. Good morning, everyone. We appreciate your interest in Intrepid in attendance for our fourth quarter earnings call. I'll be structuring my remarks today, beginning with a high-level overview of the quarter, our market outlook and production updates and then dive into more details of the recent XTO deal and takeaways for Intrepid's equity.

In the fourth quarter, our adjusted EBITDA totaled $7.1 million, bringing our 2023 figure to $41.6 million. Significantly higher production costs from our lower production as well as moderating potash prices drove down the decline in profitability this year. While our results continue to be negatively impacted by our current production profile, primarily due to the failure of our HB IP30A well in the fourth quarter of 2022.