Intrepid Potash cuts 2020 expenditure

The company expects to invest approximately US$10 million for sustaining capital in 2020 while opportunity capital will be approximately US$5-10 million for the full year. This is a US$13 million or 43% decrease from the US$30 million mid-point of original, total capital guidance. The company is reviewing its 2020 water sales guidance as oil and gas operators re-evaluate their capital programmes for the remainder of the year.

“Unprecedented disruption in the global demand for oil has created significant uncertainty in some of the areas we operate”, said Bob Jornayvaz, Intrepid’s Executive Chairman, President, and CEO. “By reducing capital and continuing to focus on cost reductions across our operation, Intrepid is taking the necessary steps to manage through this cycle. We have invested appropriately in our potash and Trio^® assets and we believe we are well-positioned to operate under a reduced capital schedule in 2020 without sacrificing production or our safety standards. Our nutrients and Oilfield Solutions businesses are characterised as essential by New Mexico and Utah state governments and, while we have instituted appropriate precautions to safeguard our employees and communities, we continue to operate uninterrupted through this unusual time. The oilfield solutions business also has the benefit of minimal headcount and fixed costs, which will allow us to more easily weather this sudden change in demand and quickly ramp-up our operation when necessary. Although the near-term outlook is unclear, our relentless focus on revenue diversification and improving our balance sheet over the past few years gives us confidence in long-term outlook for our company.”

Intrepid plans to release its 1Q20 financial results on 6 May 2020, after the market closes.

Read the article online at: https://www.worldfertilizer.com/potash/17042020/intrepid-potash-cuts-2020-expenditure/