Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 25, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-34025 | |
Entity Registrant Name | INTREPID POTASH, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-1501877 | |
Entity Address, Address Line One | 1001 17th Street, Suite 1050 | |
Entity Address, City or Town | Denver, | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | 303 | |
Local Phone Number | 296-3006 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | IPI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,443,080 | |
Entity Central Index Key | 0001421461 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 25,637 | $ 19,515 |
Accounts receivable: | ||
Trade, net | 32,731 | 22,795 |
Other receivables, net | 3,449 | 1,577 |
Inventory, net | 76,828 | 88,673 |
Prepaid expenses and other current assets | 4,539 | 3,228 |
Total current assets | 143,184 | 135,788 |
Property, plant and equipment, and mineral properties, net | 339,986 | 355,497 |
Water rights | 19,184 | 19,184 |
Long-term parts inventory, net | 29,067 | 28,900 |
Other assets, net | 10,403 | 10,819 |
Total Assets | 541,824 | 550,188 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 9,593 | 7,278 |
Accrued liabilities | 22,202 | 12,701 |
Accrued employee compensation and benefits | 8,466 | 4,422 |
Current portion of long-term debt, net | 0 | 10,000 |
Other current liabilities | 34,830 | 32,816 |
Total current liabilities | 75,091 | 67,217 |
Advances on credit facility | 0 | 29,817 |
Long-term debt, net | 0 | 14,926 |
Asset retirement obligation | 25,221 | 23,872 |
Operating lease liabilities | 1,163 | 2,136 |
Other non-current liabilities | 1,129 | 961 |
Total Liabilities | 102,604 | 138,929 |
Commitments and Contingencies | ||
Common stock, $0.001 par value; 40,000,000 shares authorized; 13,124,110 and 13,049,820 shares outstanding at September 30, 2021 and December 31, 2020, respectively | 13 | 13 |
Additional paid-in capital | 658,825 | 656,837 |
Accumulated deficit | (219,618) | (245,591) |
Total Stockholders' Equity | 439,220 | 411,259 |
Total Liabilities and Stockholders' Equity | $ 541,824 | $ 550,188 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares outstanding | 13,124,110 | 13,049,820 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Less: | ||||
Lower of cost or net realizable value inventory adjustments | $ 0 | $ 1,224 | $ 0 | $ 4,015 |
Costs associated with abnormal production | 3,594 | 3,594 | ||
Gross Margin (Deficit) | 10,608 | (308) | 33,915 | 4,716 |
Selling and administrative | 5,890 | 6,750 | 18,293 | 20,022 |
Accretion of asset retirement obligation | 441 | 434 | 1,323 | 1,303 |
Litigation settlement | 0 | 0 | 0 | 10,075 |
Loss (gain) on sale of assets | 5 | 21 | (2,560) | (4,441) |
Other operating income (expense) | 192 | 237 | (385) | 495 |
Operating Income (Loss) | 4,080 | (7,750) | 17,244 | (22,738) |
Other Income (Expense) | ||||
Interest Expense, net | (82) | (2,450) | (1,426) | (3,877) |
Other income | 25 | 25 | 42 | 129 |
Gain on extinguishment of debt | 0 | 0 | 10,113 | 0 |
Income (Loss) Before Income Taxes | 4,023 | (10,175) | 25,973 | (26,486) |
Income Tax Benefit | 0 | 0 | 0 | 42 |
Net Income (Loss) | $ 4,023 | $ (10,175) | $ 25,973 | $ (26,444) |
Weighted Average Shares Outstanding: | ||||
Basic (in shares) | 13,123 | 13,006 | 13,089 | 12,981 |
Diluted (in shares) | 13,367 | 13,006 | 13,352 | 12,981 |
Earnings Per Share: | ||||
Basic (in dollars per share) | $ 0.31 | $ (0.78) | $ 1.98 | $ (2.04) |
Diluted (in dollars per share) | $ 0.30 | $ (0.78) | $ 1.95 | $ (2.04) |
Freight Costs [Member] | ||||
Less: | ||||
Cost of Goods Sold | $ 7,911 | $ 7,802 | $ 30,104 | $ 28,397 |
Warehouse and Handling [Member] | ||||
Less: | ||||
Cost of Goods Sold | 2,066 | 2,315 | 7,076 | 7,284 |
Mineral [Member] | ||||
Sales | 59,153 | 38,078 | 198,504 | 148,512 |
Less: | ||||
Cost of Goods Sold | $ 34,974 | $ 27,045 | $ 123,815 | $ 104,100 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance (in shares) at Dec. 31, 2019 | 12,955,351 | |||
Balance at Dec. 31, 2019 | $ 434,656 | $ 13 | $ 653,080 | $ (218,437) |
Net income (loss) | (26,444) | (26,444) | ||
Stock-based compensation | 2,981 | 2,981 | ||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting (in shares) | 51,076 | |||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting | (97) | (97) | ||
Balance (in shares) at Sep. 30, 2020 | 13,006,427 | |||
Balance at Sep. 30, 2020 | 411,096 | $ 13 | 655,964 | (244,881) |
Balance (in shares) at Jun. 30, 2020 | 13,006,124 | |||
Balance at Jun. 30, 2020 | 420,208 | $ 13 | 654,901 | (234,706) |
Net income (loss) | (10,175) | (10,175) | ||
Stock-based compensation | 985 | 985 | ||
Vesting of restricted common stock, net of common stock used to fund employee income tax withholding due upon vesting | 78 | 78 | ||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting (in shares) | 303 | |||
Balance (in shares) at Sep. 30, 2020 | 13,006,427 | |||
Balance at Sep. 30, 2020 | 411,096 | $ 13 | 655,964 | (244,881) |
Balance (in shares) at Dec. 31, 2020 | 13,049,820 | |||
Balance at Dec. 31, 2020 | 411,259 | $ 13 | 656,837 | (245,591) |
Net income (loss) | 25,973 | 25,973 | ||
Stock-based compensation | 2,289 | 2,289 | ||
Exercise of stock options | 81 | 81 | ||
Exercise of stock options (in shares) | 7,826 | |||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting (in shares) | 66,464 | |||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting | (382) | (382) | ||
Balance (in shares) at Sep. 30, 2021 | 13,124,110 | |||
Balance at Sep. 30, 2021 | 439,220 | $ 13 | 658,825 | (219,618) |
Balance (in shares) at Jun. 30, 2021 | 13,121,087 | |||
Balance at Jun. 30, 2021 | 434,535 | $ 13 | 658,163 | (223,641) |
Net income (loss) | 4,023 | 4,023 | ||
Stock-based compensation | 634 | 634 | ||
Exercise of stock options | 30 | 30 | ||
Exercise of stock options (in shares) | 2,913 | |||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting (in shares) | 110 | |||
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting | (2) | (2) | ||
Balance (in shares) at Sep. 30, 2021 | 13,124,110 | |||
Balance at Sep. 30, 2021 | $ 439,220 | $ 13 | $ 658,825 | $ (219,618) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ 25,973 | $ (26,444) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion, and amortization | 26,509 | 26,377 |
Accretion of asset retirement obligation | 1,323 | 1,303 |
Amortization of deferred financing costs | 254 | 357 |
Amortization of Intangible Assets | 241 | 241 |
Stock-based compensation | 2,289 | 2,981 |
Lower of cost or net realizable value inventory adjustments | 0 | 4,015 |
Gain on disposal of assets | (2,560) | (4,441) |
Gain on extinguishment of debt | (10,113) | 0 |
Allowance for doubtful accounts | 0 | 275 |
Allowance for parts inventory obsolescence | 0 | 492 |
Other | 0 | (116) |
Changes in operating assets and liabilities: | ||
Trade accounts receivable, net | (9,936) | 203 |
Other receivables, net | (1,872) | (1,328) |
Inventory, net | 11,678 | 3,100 |
Prepaid expenses and other current assets | (1,148) | (313) |
Accounts payable, accrued liabilities, and accrued employee compensation and benefits | 15,254 | 4,071 |
Operating lease liabilities | (1,616) | (1,695) |
Other liabilities | 3,147 | 9,409 |
Net cash provided by operating activities | 59,423 | 18,487 |
Cash Flows from Investing Activities: | ||
Additions to property, plant, equipment, mineral properties, and other assets | (12,437) | (14,087) |
Long-term investment | 0 | (3,500) |
Proceeds from sale of assets | 6,042 | 4,786 |
Net cash used in investing activities | (6,395) | (12,801) |
Cash Flows from Financing Activities: | ||
Debt prepayment costs | (505) | (1,869) |
Repayments of long-term debt | (15,000) | (35,000) |
Proceeds from short-term borrowings on credit facility | 0 | (10,000) |
Repayments of short-term borrowings on credit facility | (29,817) | 0 |
Payments of financing lease | (1,258) | 0 |
Capitalized debt fees | 0 | (36) |
Employee tax withholding paid for restricted stock upon vesting | (382) | (96) |
Proceeds from loan under CARES Act | 0 | 10,000 |
Proceeds from exercise of stock options | 81 | |
Net cash used in financing activities | (46,881) | (17,001) |
Net Change in Cash, Cash Equivalents and Restricted Cash | 6,147 | (11,315) |
Cash, Cash Equivalents, and Restricted Cash, beginning of period | 20,184 | 21,239 |
Cash, Cash Equivalents, and Restricted Cash, end of period | 26,331 | 9,924 |
Supplemental disclosure of cash flow information | ||
Interest | 851 | 1,974 |
Income taxes | 131 | 92 |
Amounts included in the measurement of operating lease liabilities | 1,769 | 1,878 |
Accrued purchases for property, plant, equipment, and mineral properties | 1,842 | 1,050 |
Right-of-use assets exchanged for operating lease liabilities | $ 546 | $ 216 |
COMPANY BACKGROUND
COMPANY BACKGROUND | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
COMPANY BACKGROUND | COMPANY BACKGROUND We are a diversified mineral company that delivers potassium, magnesium, sulfur, salt, and water products essential for customer success in agriculture, animal feed and the oil and gas industry. We are the only U.S. producer of muriate of potash (sometimes referred to as potassium chloride or potash), which is applied as an essential nutrient for healthy crop development, utilized in several industrial applications, and used as an ingredient in animal feed. In addition, we produce a specialty fertilizer, Trio ® , which delivers three key nutrients, potassium, magnesium, and sulfate, in a single particle. We also provide water, magnesium chloride, brine and various oilfield products and services. Our extraction and production operations are conducted entirely in the continental United States. We produce potash from three solution mining facilities: our HB solution mine in Carlsbad, New Mexico, our solution mine in Moab, Utah, and our brine recovery mine in Wendover, Utah. We also operate the North compaction facility in Carlsbad, New Mexico, which compacts and granulates product from the HB mine. We produce Trio ® from our conventional underground East mine in Carlsbad, New Mexico. We have water rights in New Mexico to support our mining and industrial operations. Water we do not use to support our mining and industrial operations we sell primarily to support oil and gas development in the Permian Basin near our Carlsbad facilities. We continue to work to expand our sales of water. In May 2019, we acquired certain land, water rights, state grazing leases for cattle, and other related assets from Dinwiddie Cattle Company. We refer to these assets and operations as "Intrepid South." Due to the strategic location of Intrepid South, part of our long-term operating strategy is selling small parcels of land, including restricted use agreements of surface or subsurface rights, to customers, where such sales provide a solution to such customer's operations in the oil and gas industry. See Note 14—Commitments and Contingencies below for further information regarding our water rights. We have three segments: potash, Trio ® , and oilfield solutions. We account for sales of byproducts as revenue in the potash or Trio ® segment based on which segment generates the byproduct. Intersegment sales prices are market based and are eliminated. "Intrepid," "our," "we," or "us," means Intrepid Potash, Inc. and its consolidated subsidiaries. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Financial Statement Presentation —Our unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of interim financial information, have been included. These unaudited condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020. Reverse Stock Split —On August 10, 2020, after receipt of stockholder approval, the Board of Directors approved an amendment to our Certificate of Incorporation to effect a reverse stock split of our common stock, par value $0.001 per share, by a ratio of one-for-ten. The reverse stock split became effective August 14, 2020. Additionally, the total number of authorized shares of our common stock was reduced to 40,000,000 shares. Unless otherwise indicated, all share amounts, per share data, share prices, exercise prices and conversion rates set forth in these notes and the accompanying condensed consolidated financial statements have, where applicable, been adjusted retroactively to reflect this reverse stock split. Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and amending existing guidance to improve consistent application. Most amendments within this standard were required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. We adopted this standard on January 1, 2021. The effect of the adoption of this standard was immaterial on our condensed consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - (Topic 326): Measurement of Credit Losses on Financial Instruments , which we adopted on January 1, 2020. ASU No. 2016-13 changes the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life and required a cumulative-effect adjustment to the statement of financial position on January 1, 2020. The effect of the adoption of this standard was immaterial on our condensed consolidated financial statements. Reclassifications of Prior Period Presentation |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. For purposes of determining diluted earnings per share, basic weighted-average common shares outstanding is adjusted to include potentially dilutive securities, including restricted stock, stock options, and performance units. The treasury-stock method is used to measure the dilutive impact of potentially dilutive shares. Potentially dilutive shares are excluded from the diluted weighted-average shares outstanding computation in periods in which they have an anti-dilutive effect. The following table shows the calculation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Net income (loss) $ 4,023 $ (10,175) $ 25,973 $ (26,444) Basic weighted-average common shares outstanding 13,123 13,006 13,089 12,981 Add: Dilutive effect of restricted stock 177 — 197 — Add: Dilutive effect of stock options 67 — 66 — Diluted weighted-average common shares outstanding 13,367 13,006 13,352 12,981 Basic $ 0.31 $ (0.78) $ 1.98 $ (2.04) Diluted $ 0.30 $ (0.78) $ 1.95 $ (2.04) The following table shows the shares that have an anti-dilutive effect and are excluded from the diluted weighted-average shares outstanding computations (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Anti-dilutive effect of restricted stock 54 289 85 233 Anti-dilutive effect of stock options outstanding 224 310 180 310 |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | CASH, CASH EQUIVALENTS AND RESTRICTED CASH Total cash, cash equivalents and restricted cash, as shown on the condensed consolidated statements of cash flows are included in the following accounts at September 30, 2021, and 2020 (in thousands): September 30, 2021 September 30, 2020 Cash and cash equivalents $ 25,637 $ 9,258 Restricted cash included in other current assets 175 150 Restricted cash included in other long-term assets 519 516 Total cash, cash equivalents, and restricted cash as shown in the statement of cash flows $ 26,331 $ 9,924 Restricted cash included in other current and long-term assets on the condensed consolidated balance sheets represents amounts whose use is restricted by contractual agreements with various entities, principally the Bureau of Land Management or the State of Utah, as security to fund future reclamation obligations at our sites. |
INVENTORY AND LONG-TERM PARTS I
INVENTORY AND LONG-TERM PARTS INVENTORY | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORY AND LONG-TERM PARTS INVENTORY | INVENTORY AND LONG-TERM PARTS INVENTORY The following summarizes our inventory, recorded at the lower of weighted-average cost or estimated net realizable value, as of September 30, 2021, and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Finished goods product inventory $ 32,156 $ 48,961 In-process inventory 32,974 28,833 Total product inventory 65,130 77,794 Current parts inventory, net 11,698 10,879 Total current inventory, net 76,828 88,673 Long-term parts inventory, net 29,067 28,900 Total inventory, net $ 105,895 $ 117,573 Parts inventory is shown net of estimated allowances for obsolescence of $1.1 million as of September 30, 2021, and December 31, 2020. Production was well below normal at our HB solar solution facility due to significant rainfall and lower evaporation rates, resulting in fewer harvestable tons of potash from our solar solution ponds. Accordingly, we recorded abnormal production costs of $3.6 million for the three and nine months ended September 30, 2021, and we may incur additional abnormal production costs in future periods. We did not incur any abnormal production costs during the three and nine months ended September 30, 2020. As a result of routine assessments of the lower of weighted-average cost or estimated net realizable value of our finished goods product inventory, we recorded inventory charges of $1.2 million and $4.0 million for the three and nine months ended September 30, 2020, respectively. We recorded no such inventory charges during the three and nine months ended September 30, 2021. |
PROPERTY, PLANT, EQUIPMENT, AND
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES | PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES Property, plant, equipment, and mineral properties were comprised of the following (in thousands): September 30, 2021 December 31, 2020 Land $ 24,136 $ 27,263 Ponds and land improvements 68,247 67,843 Mineral properties and development costs 144,449 143,955 Buildings and plant 82,923 81,692 Machinery and equipment 270,556 265,121 Vehicles 6,691 5,919 Office equipment and improvements 9,147 9,083 Operating lease ROU assets 8,835 9,622 Breeding stock 278 260 Construction in progress 6,778 1,710 Total property, plant, equipment, and mineral properties, gross $ 622,040 $ 612,468 Less: accumulated depreciation, depletion, and amortization (282,054) (256,971) Total property, plant, equipment, and mineral properties, net $ 339,986 $ 355,497 In May 2021, we sold approximately 330 acres of land we owned in Texas for $6.0 million and recorded a gain of $2.8 million. In March 2020, we sold approximately 320 acres of land for $4.8 million and recorded a gain of $4.7 million. We incurred the following expenses for depreciation, depletion, and amortization, including expenses capitalized into inventory, for the following periods (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Depreciation $ 7,294 $ 7,511 $ 22,145 $ 22,164 Depletion 600 710 2,796 2,599 Amortization of right of use assets 536 527 1,568 1,614 Total incurred $ 8,430 $ 8,748 $ 26,509 $ 26,377 |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Credit Facility —We maintain a revolving credit facility with Bank of Montreal. As of September 30, 2021, borrowings under the credit facility bear interest at LIBOR (London Interbank Offered Rate) plus an applicable margin of 1.25% to 2.00% per annum, based on our leverage ratio as calculated in accordance with the agreement governing the credit facility. We have granted to Bank of Montreal a first lien on substantially all of our current and non-current assets. The obligations under the credit facility are unconditionally guaranteed by several of our subsidiaries. We occasionally borrow and repay amounts under the facility for near-term working capital needs or other purposes and may do so in the future. During the three and nine months ended September 30, 2021, we made no borrowings under the facility. During the three and nine months ended September 30, 2021, we made repayments of $29.8 million under the facility. As of September 30, 2021, we had no borrowings outstanding and $1 million in outstanding letters of credit under the facility. As of September 30, 2021, we were in compliance with all applicable covenants under the revolving credit facility. PPP Loan —In April 2020, we received a $10 million loan under the Paycheck Protection Program (the "PPP") under the CARES Act. We submitted our application for forgiveness of the full amount of the loan in November 2020. In June 2021, we received notice that the Small Business Administration had remitted funds to our bank to fully repay our PPP loan and accrued interest. Accordingly, we recognized a gain of $10.1 million related to the forgiveness of the PPP loan and the associated accrued interest on the loan. Senior Notes —In June 2021 we repaid the remaining $15.0 million of principal outstanding on our Series B Senior Notes due April 14, 2023 (the "Series B Senior Notes") and satisfied all obligations under the Amended and Restated Note Purchase Agreement, dated as of October 31, 2016, by and among the Company and each of the purchasers named therein (as amended, the "Note Purchase Agreement"). In connection with this repayment, the Company paid in aggregate approximately $15.6 million, which consisted of (i) $15.0 million of remaining aggregate principal amount of Series B Senior Notes, (ii) approximately $0.1 million of accrued interest and (iii) a "make-whole" premium of $0.5 million. As a result of the repayment, the Note Purchase Agreement was terminated. Interest Expense —Interest expense is recorded net of any capitalized interest associated with investments in capital projects. We incurred gross interest expense of $0.1 million and $2.5 million for the three months ended September 30, 2021, and 2020, respectively, and $1.5 million and $4.0 million for the nine months ended September 30, 2021, and 2020, respectively. Amounts included in interest expense, net for the three months ended September 30, 2021, and 2020, were as follows (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Interest on debt borrowings $ 50 $ 386 $ 717 $ 1,748 Make-whole payments — 1,868 505 1,868 Amortization of deferred financing costs 60 196 254 357 Gross interest expense 110 2,450 1,476 3,973 Less capitalized interest (28) — (50) (96) Interest expense, net $ 82 $ 2,450 $ 1,426 $ 3,877 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS We have water rights, recorded at $19.2 million at September 30, 2021, and December 31, 2020. Our water rights have indefinite lives and are not amortized. We evaluate our water rights at least annually on October 1 for impairment, or more frequently if circumstances require. We account for other intangible assets as finite-lived intangible assets and amortize those intangible assets over the period of estimated benefit, using the straight-line method. The weighted average amortization period for the other intangible assets is approximately 18 years. At September 30, 2021, and December 31, 2020, these intangible assets had a net book value of $5.6 million |
FINANCIAL INFORMATION FOR SUBSI
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT | 9 Months Ended |
Sep. 30, 2021 | |
Guarantees [Abstract] | |
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT | FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT Intrepid Potash, Inc., as the parent company, has no independent assets or operations, and operations are conducted solely through its subsidiaries. Cash generated from operations is held at the parent-company level as cash on hand and totaled $25.6 million and $19.5 million at September 30, 2021, and December 31, 2020, respectively. If one or more of our wholly-owned operating subsidiaries guarantee public debt securities in the future, those guarantees will be full and unconditional and will constitute the joint and several obligations of the subsidiary guarantors. The assets and liabilities of our other subsidiaries are immaterial. There are no restrictions on our ability to obtain cash dividends or other distributions of funds from the subsidiary guarantors, except those imposed by applicable law. |
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION | 9 Months Ended |
Sep. 30, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATION | ASSET RETIREMENT OBLIGATION We recognize an estimated liability for future costs associated with the abandonment and reclamation of our mining properties. A liability for the fair value of an asset retirement obligation and a corresponding increase to the carrying value of the related long-lived asset are recorded as the mining operations occur or the assets are acquired. Our asset retirement obligation is based on the estimated cost to abandon and reclaim the mining operations, the economic life of the properties, and federal and state regulatory requirements. The liability is discounted using credit adjusted risk-free rate estimates at the time the liability is incurred or when there are upward revisions to estimated costs. The credit adjusted risk-free rates used to discount our abandonment liabilities range from 6.9% to 9.7%. Revisions to the liability occur due to construction of new or expanded facilities, changes in estimated abandonment costs or economic lives, or if federal or state regulators enact new requirements regarding the abandonment or reclamation of mines. Following is a table of the changes to our asset retirement obligation for the following periods (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Asset retirement obligation, at beginning of period $ 24,780 $ 23,003 $ 23,872 $ 22,250 Liabilities settled — — — (116) Changes in estimated obligations — — 26 — Accretion of discount 441 434 1,323 1,303 Total asset retirement obligation, at end of period $ 25,221 $ 23,437 $ 25,221 $ 23,437 |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Revenue Recognition —We account for revenue in accordance with ASC Topic 606 Revenue from Contracts with Customers ("ASC 606"). Under ASC 606, we recognize revenue when control of the promised goods or services is transferred to customers in an amount that reflects the consideration we expect to be entitled in exchange for those goods or services. The timing of revenue recognition, billings, and cash collection may result in contract assets or contract liabilities. Contract Balances: As of September 30, 2021, and September 30, 2020, we had $33.7 million and $26.5 million of contract liabilities, respectively, which are included in "Other current liabilities" on the Condensed Consolidated Balance Sheets, primarily related to cash advances received from a customer for water purchases. Customer advances received before we have satisfied our performance obligations are accounted for as a contract liability (sometimes referred to in practice as deferred revenue). We will recognize the deferred revenue at the time the customer calls for water delivery. See Note 14—Commitments and Contingencies below for additional information regarding our water rights. Our deferred revenue activity for the three and nine months ended September 30, 2021, and 2020 is shown below (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Beginning balance $ 33,631 $ 22,690 $ 30,418 $ 16,612 Additions 146 3,883 4,119 13,529 Recognized as revenue during period (71) (71) (831) (3,639) Ending balance $ 33,706 $ 26,502 $ 33,706 $ 26,502 Disaggregation of Revenue: The tables below show the disaggregation of revenue by product and reconciles disaggregated revenue to segment revenue for the three and nine months ended September 30, 2021, and 2020. We believe the disaggregation of revenue by products best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic conditions (in thousands): Three Months Ended September 30, 2021 Product Potash Segment Trio ® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 26,573 $ — $ — $ (55) $ 26,518 Trio ® — 19,495 — — 19,495 Water 263 1,310 4,382 — 5,955 Salt 2,540 22 — — 2,562 Magnesium Chloride 1,921 — — — 1,921 Brine Water 376 — 301 — 677 Other — — 2,025 — 2,025 Total Revenue $ 31,673 $ 20,827 $ 6,708 $ (55) $ 59,153 Nine Months Ended September 30, 2021 Product Potash Segment Trio® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 97,248 $ — $ — $ (177) $ 97,071 Trio ® — 68,348 — — 68,348 Water 1,942 2,808 9,507 — 14,257 Salt 6,587 288 — — 6,875 Magnesium Chloride 5,829 — — — 5,829 Brine Water 1,338 — 735 — 2,073 Other — — 4,051 — 4,051 Total Revenue $ 112,944 $ 71,444 $ 14,293 $ (177) $ 198,504 Three Months Ended September 30, 2020 Product Potash Segment Trio ® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 18,575 $ — $ — $ (49) $ 18,526 Trio ® — 11,441 — — 11,441 Water 262 1,312 2,037 — 3,611 Salt 1,995 137 — — 2,132 Magnesium Chloride 1,127 — — — 1,127 Brine Water 228 — 105 — 333 Other — — 908 — 908 Total Revenue $ 22,187 $ 12,890 $ 3,050 $ (49) $ 38,078 Nine Months Ended September 30, 2020 Product Potash Segment Trio ® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 69,942 $ — $ — $ (253) $ 69,689 Trio ® — 51,474 — — 51,474 Water 957 2,963 10,727 — 14,647 Salt 5,792 285 — — 6,077 Magnesium Chloride 2,838 — — — 2,838 Brine Water 975 — 297 — 1,272 Other — — 2,515 — 2,515 Total Revenue $ 80,504 $ 54,722 $ 13,539 $ (253) $ 148,512 |
COMPENSATION PLANS
COMPENSATION PLANS | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
COMPENSATION PLANS | COMPENSATION PLANS Equity Incentive Compensation Plan —Our Board of Directors and stockholders adopted a long-term incentive compensation plan called the Intrepid Potash, Inc. Amended and Restated Equity Incentive Plan (the "Plan"). The Plan was most recently amended and restated in May 2019. We have issued common stock, restricted stock, performance units, and non-qualified stock option awards under the Plan. At September 30, 2021, approximately 0.6 million shares remained available for issuance under the Plan. In May 2021, the Compensation Committee granted 16,535 shares of restricted stock to non-employee directors. The restricted shares vest one three Outstanding as of Restricted Shares 321 Non-qualified Stock Options 285 Total share-based compensation expense was $0.6 million and $1.0 million for the three months ended September 30, 2021, and 2020, respectively, and $2.3 million and $3.0 million for the nine months ended September 30, 2021, and 2020, respectively. As of September 30, 2021, we had $3.6 million of total remaining unrecognized compensation expense related to awards that is expected to be recognized over a weighted-average period of 1.4 years. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our anticipated annual tax rate is impacted primarily by the amount of taxable income associated with each jurisdiction in which our income is subject to income tax, permanent differences between the financial statement carrying amounts and tax bases of assets and liabilities. During the three months ended September 30, 2021, and 2020, we incurred no income tax expense. During the nine months ended September 30, 2021, we incurred no income tax expense. During the nine months ended September 30, 2020, we recognized an immaterial amount of income tax benefit. Our effective tax rate for the three months ended September 30, 2021, and 2020, and the nine months ended September 30, 2021, and 2020, was 0%. Our effective tax rates differed from the statutory rate during each period primarily due to changes in the valuation allowance established to offset our deferred tax assets. We evaluate our deferred tax assets and liabilities each reporting period using the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax liability or asset is expected to be settled or realized. The estimated statutory income tax rates that are applied to our current and deferred income tax calculations are impacted most significantly by the states in which we conduct business. Changing business conditions for normal business transactions and operations, as well as changes to state tax rates and apportionment laws, potentially alter our apportionment of income among the states for income tax purposes. These changes in apportionment laws result in changes in the calculation of our current and deferred income taxes, including the valuation of our deferred tax assets and liabilities. The effects of any such changes are recorded in the period of the adjustment. These adjustments can increase or decrease the net deferred tax asset on our condensed consolidated balance sheet. However, any resulting impact to the deferred tax benefit or deferred tax expense would be offset by a corresponding adjustment to the valuation allowance and would have no income statement effect. As of September 30, 2021, we were in a near break-even cumulative three-year income position. Additionally, weather issues that have negatively affected potash production (see Note 5—Inventory for further information), outstanding legal issues which may have a material adverse effect on our future results of operations (see Note 14—Commitments for further information), supply chain issues that have driven near term supply shortages that have increased fertilizer prices along with the continued uncertainty from the ongoing COVID-19 pandemic make it difficult to accurately forecast sustained amounts of future income. These circumstances are significant negative evidence when evaluating the realizability of our deferred tax assets. This negative evidence continues to outweigh the positive evidence of profitability in 2018, and 2019, thereby requiring us to maintain the full valuation allowance as of September 30, 2021. However, we believe that if positive pricing and sales evidence trends continue and our future long-term forecasts show sustained profitability, it is possible that |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Reclamation Deposits and Surety Bonds —As of September 30, 2021, and December 31, 2020, we had $23.0 million of security placed principally with the State of Utah and the Bureau of Land Management for eventual reclamation of our various facilities. Of this total requirement, $0.5 million consisted of long-term restricted cash deposits reflected in "Other assets, net" on the condensed consolidated balance sheets and $22.5 million was secured by surety bonds issued by an insurer. The surety bonds are held in place by an annual fee paid to the issuer and a letter of credit. We may be required to post additional security to fund future reclamation obligations as reclamation plans are updated or as governmental entities change requirements. Legal —We are subject to claims and legal actions in the ordinary course of business. Legal costs are expensed as incurred. While there are uncertainties in predicting the outcome of any claim or legal action, except as noted below, we believe the ultimate resolution of these claims or actions is not reasonably likely to have a material adverse effect on our financial condition, results of operations, or cash flows. Mosaic Settlement In March 2020, we entered into a definitive settlement agreement with Mosaic Potash Carlsbad Inc. ("Mosaic") related to a complaint originally brought against us and Steve Gamble in February 2015. Mr. Gamble is a former employee of Intrepid and Mosaic. Under the terms of the settlement agreement, we paid Mosaic an aggregate of $10 million in May 2020 to dismiss all current and future claims arising from this matter against us and the matter is now closed. Water Rights In February 2019, Pecos Valley Artesian Conservancy District, Carlsbad Irrigation District, and Otis Mutual Domestic Water Consumers & Sewage Works Association (together, the "Protestants") filed an expedited inter se proceeding against us, Henry McDonald, Select Energy Services, LLC d/b/a Gregory Rockhouse Ranch, and Vision Resources, Inc. in the Fifth Judicial District Court for the County of Chaves in the State of New Mexico ("adjudication court"), which serves as the adjudication court for the Pecos Stream System, including the Pecos River. The Protestants challenged the validity of our Pecos River water rights, representing approximately 20,000 acre feet per year. A virtual trial began on December 8, 2020 and concluded on December 18, 2020. In August 2021, the adjudication court issued its rulings on the validity of our Pecos River water rights. The adjudication court entered findings of fact and conclusions of law deciding that our predecessors had forfeited all but approximately 5,800 feet of water per year. The court further ruled that, of the remaining 5,800 acre feet of water that had not been forfeited, all but 150 acre feet of water had been abandoned prior to 2017. The order based on these findings of fact and conclusions of law has not been entered and the adjudication court has requested and received further briefing on the impact of a decision by the New Mexico Court of Appeals which may have an impact on the current analysis in the findings of fact and conclusions of law. Once the adjudication court has determined this impact and made revisions and modifications (if any), we will determine whether to appeal the adjudication court’s ruling on the validity of our water rights. In 2017 and 2018 the New Mexico Office of the State Engineer (“OSE”) had granted us preliminary authorizations to sell approximately 5,700 acre feet of water annually. The preliminary authorizations allowed for water sales to begin immediately, subject to repayment if the underlying water rights are ultimately found to be invalid. Repayment of this water can be up to two times the amount of water removed from the river. Repayment is customarily made in-kind over a period of time but can take other forms including cash repayment. If the adjudication court's initial findings of fact and conclusions of law do not change and forms the basis of the adjudication court's order, the required volume and timing of repayment is unknown at this time. If we are not able to repay in-kind due to the lack of remaining water rights or logistical constraints, we would need to purchase water to meet this repayment or be subject to a cash repayment. We cannot reasonably estimate the potential volume, timing, or form of repayment, if any, and have not recorded a loss contingency in our statement of operations related to this legal matter. In March 2021, we received notice from a customer of a default under the terms of a long-term sales contract because we have not been able to deliver water to diversion points specified in the contract. We have relied primarily upon our Pecos River water rights to deliver water under this contract, the majority of which are currently unavailable due to the factors discussed above. We are continuing to work with the customer to resolve this issue. Under this contract we have received quarterly installments of approximately $3.9 million for the future delivery of water to the customer. In April 2021, we agreed to suspend the second quarter and future quarterly installments due from the customer as we continue to work to resolve the issue. If we are not able to resolve the issue, we may have to repay the $32.5 million outstanding contract liability we have with this customer as of September 30, 2021. See Note 11—Revenue above for additional information. In August 2021, NGL Energy Partners (NGL), our partner in the Joint Marketing Agreement (“JMA”) that was entered into in May 2019, filed suit against us alleging, amongst other items, we overcharged the JMA for various operating costs and that we used third party water to service certain fracs when JMA water should have been used in those fracs. NGL is seeking to immediately terminate the JMA as well as compensatory damages. We are vigorously defending against the lawsuit. Because this matter is at an early stage, we are unable to reasonably estimate the potential amount of loss, if any. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE We measure our financial assets and liabilities in accordance with ASC Topic 820, Fair Value Measurements and Disclosures. As of September 30, 2021, and December 31, 2020, our cash consisted of bank deposits. Other financial assets and liabilities including accounts receivable, refundable income taxes, accounts payable, accrued liabilities, and advances under our credit facility, and are carried at cost which approximates fair value because of the short-term nature of these instruments. In May of 2020, we acquired a non-controlling interest in W.D. Von Gonten Laboratories ("WDVGL") for $3.5 million. This investment is an equity investment without a readily determinable fair value and is recorded at cost with adjustments for observable changes in prices resulting from orderly transactions for the identical or a similar investment of the same issuer, or impairment (a Level 3 input), and is included in "Other assets, net" on the Condensed Consolidated Balance Sheets. We did not record any adjustments to the $3.5 million carrying value of the investment during the first nine months of 2021. As of December 31, 2020, the estimated fair value of our outstanding Series B Senior Notes was $15 million. The fair value of our Notes was estimated using a discounted cash flow analysis based on current borrowing rates for debt with similar remaining maturities and ratings (a Level 2 input) and is designed to approximate the amount at which the instruments could be exchanged in an arm's-length transaction between knowledgeable willing parties. In June 2021, we repaid the remaining $15.0 million of principal outstanding under the Series B Senior Notes. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS Our operations are organized into three segments: potash, Trio ® and oilfield solutions. The reportable segments are determined by management based on several factors including the types of products and services sold, production processes, markets served and the financial information available for our chief operating decision maker. We evaluate performance based on the gross margins of the respective business segments and do not allocate corporate selling and administrative expenses, among others, to the respective segments. Intersegment sales prices are market-based and are eliminated in the "Other" column. Information for each segment is provided in the tables that follow (in thousands). Three Months Ended September 30, 2021 Potash Trio ® Oilfield Solutions Other Consolidated Sales $ 31,673 $ 20,827 $ 6,708 $ (55) $ 59,153 Less: Freight costs 3,928 4,038 — (55) 7,911 Warehousing and handling 1,241 825 — — 2,066 Cost of goods sold 18,385 10,528 6,061 — 34,974 Costs associated with 3,594 — — 3,594 Gross Margin $ 4,525 $ 5,436 $ 647 $ — $ 10,608 Depreciation, depletion, and amortization incurred 1 $ 6,257 $ 1,321 $ 818 $ 114 $ 8,510 Nine Months Ended Potash Trio ® Oilfield Solutions Other Consolidated Sales $ 112,944 $ 71,444 $ 14,293 $ (177) $ 198,504 Less: Freight costs 13,766 16,515 — (177) 30,104 Warehousing and handling 4,004 3,072 — — 7,076 Cost of goods sold 68,251 43,329 12,235 — 123,815 Costs associated with 3,594 — — — 3,594 Gross Margin $ 23,329 $ 8,528 $ 2,058 $ — $ 33,915 Depreciation, depletion, and amortization incurred 1 $ 19,895 $ 4,204 $ 2,206 $ 445 $ 26,750 Three Months Ended Potash Trio ® Oilfield Solutions Other Consolidated Sales $ 22,187 $ 12,890 $ 3,050 $ (49) $ 38,078 Less: Freight costs 3,973 3,878 — (49) 7,802 Warehousing and handling 1,173 1,142 — — 2,315 Cost of goods sold 14,928 8,754 3,363 — 27,045 Lower of cost or net 760 464 — — 1,224 Gross Margin (Deficit) $ 1,353 $ (1,348) $ (313) $ — $ (308) Depreciation, depletion, and amortization incurred 1 $ 6,430 $ 1,531 $ 657 $ 210 $ 8,828 Nine Months Ended Potash Trio ® Oilfield Solutions Other Consolidated Sales $ 80,504 $ 54,722 $ 13,539 $ (253) $ 148,512 Less: Freight costs 12,700 15,950 — (253) 28,397 Warehousing and handling 3,673 3,611 — — 7,284 Cost of goods sold 55,298 40,405 8,397 — 104,100 Lower of cost or net 1,130 2,885 — — 4,015 Gross Margin (Deficit) $ 7,703 $ (8,129) $ 5,142 $ — $ 4,716 Depreciation, depletion and amortization incurred 1 $ 19,485 $ 4,556 $ 1,945 $ 632 $ 26,618 1 Depreciation, depletion, and amortization incurred for potash and Trio ® excludes depreciation, depletion and amortization amounts absorbed in or relieved from inventory. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Financial Statement Presentation | Our unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of interim financial information, have been included. These unaudited condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020. |
Reverse Stock Split | On August 10, 2020, after receipt of stockholder approval, the Board of Directors approved an amendment to our Certificate of Incorporation to effect a reverse stock split of our common stock, par value $0.001 per share, by a ratio of one-for-ten. The reverse stock split became effective August 14, 2020. Additionally, the total number of authorized shares of our common stock was reduced to 40,000,000 shares. Unless otherwise indicated, all share amounts, per share data, share prices, exercise prices and conversion rates set forth in these notes and the accompanying condensed consolidated financial statements have, where applicable, been adjusted retroactively to reflect this reverse stock split. |
Recently Adopted Accounting Standards | In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and amending existing guidance to improve consistent application. Most amendments within this standard were required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. We adopted this standard on January 1, 2021. The effect of the adoption of this standard was immaterial on our condensed consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - (Topic 326): Measurement of Credit Losses on Financial Instruments , which we adopted on January 1, 2020. ASU No. 2016-13 changes the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life and required a cumulative-effect adjustment to the statement of financial position on January 1, 2020. The effect of the adoption of this standard was immaterial on our condensed consolidated financial statements. |
Reclassification of Prior Period Presentation | Certain prior period amounts have been reclassified in order to conform to the current period presentation. These reclassifications had no effect on the reported results of operations. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Loss or Earnings Per Share | Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. For purposes of determining diluted earnings per share, basic weighted-average common shares outstanding is adjusted to include potentially dilutive securities, including restricted stock, stock options, and performance units. The treasury-stock method is used to measure the dilutive impact of potentially dilutive shares. Potentially dilutive shares are excluded from the diluted weighted-average shares outstanding computation in periods in which they have an anti-dilutive effect. The following table shows the calculation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Net income (loss) $ 4,023 $ (10,175) $ 25,973 $ (26,444) Basic weighted-average common shares outstanding 13,123 13,006 13,089 12,981 Add: Dilutive effect of restricted stock 177 — 197 — Add: Dilutive effect of stock options 67 — 66 — Diluted weighted-average common shares outstanding 13,367 13,006 13,352 12,981 Basic $ 0.31 $ (0.78) $ 1.98 $ (2.04) Diluted $ 0.30 $ (0.78) $ 1.95 $ (2.04) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table shows the shares that have an anti-dilutive effect and are excluded from the diluted weighted-average shares outstanding computations (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Anti-dilutive effect of restricted stock 54 289 85 233 Anti-dilutive effect of stock options outstanding 224 310 180 310 |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents And Restricted Cash | Total cash, cash equivalents and restricted cash, as shown on the condensed consolidated statements of cash flows are included in the following accounts at September 30, 2021, and 2020 (in thousands): September 30, 2021 September 30, 2020 Cash and cash equivalents $ 25,637 $ 9,258 Restricted cash included in other current assets 175 150 Restricted cash included in other long-term assets 519 516 Total cash, cash equivalents, and restricted cash as shown in the statement of cash flows $ 26,331 $ 9,924 |
INVENTORY AND LONG-TERM PARTS_2
INVENTORY AND LONG-TERM PARTS INVENTORY (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of Inventory | The following summarizes our inventory, recorded at the lower of weighted-average cost or estimated net realizable value, as of September 30, 2021, and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Finished goods product inventory $ 32,156 $ 48,961 In-process inventory 32,974 28,833 Total product inventory 65,130 77,794 Current parts inventory, net 11,698 10,879 Total current inventory, net 76,828 88,673 Long-term parts inventory, net 29,067 28,900 Total inventory, net $ 105,895 $ 117,573 |
PROPERTY, PLANT, EQUIPMENT, A_2
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, Equipment, and Mineral Properties | Property, plant, equipment, and mineral properties were comprised of the following (in thousands): September 30, 2021 December 31, 2020 Land $ 24,136 $ 27,263 Ponds and land improvements 68,247 67,843 Mineral properties and development costs 144,449 143,955 Buildings and plant 82,923 81,692 Machinery and equipment 270,556 265,121 Vehicles 6,691 5,919 Office equipment and improvements 9,147 9,083 Operating lease ROU assets 8,835 9,622 Breeding stock 278 260 Construction in progress 6,778 1,710 Total property, plant, equipment, and mineral properties, gross $ 622,040 $ 612,468 Less: accumulated depreciation, depletion, and amortization (282,054) (256,971) Total property, plant, equipment, and mineral properties, net $ 339,986 $ 355,497 |
Schedule of Depreciation, Depletion and Accretion | We incurred the following expenses for depreciation, depletion, and amortization, including expenses capitalized into inventory, for the following periods (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Depreciation $ 7,294 $ 7,511 $ 22,145 $ 22,164 Depletion 600 710 2,796 2,599 Amortization of right of use assets 536 527 1,568 1,614 Total incurred $ 8,430 $ 8,748 $ 26,509 $ 26,377 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule Of Interest Expense | Amounts included in interest expense, net for the three months ended September 30, 2021, and 2020, were as follows (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Interest on debt borrowings $ 50 $ 386 $ 717 $ 1,748 Make-whole payments — 1,868 505 1,868 Amortization of deferred financing costs 60 196 254 357 Gross interest expense 110 2,450 1,476 3,973 Less capitalized interest (28) — (50) (96) Interest expense, net $ 82 $ 2,450 $ 1,426 $ 3,877 |
ASSET RETIREMENT OBLIGATION (Ta
ASSET RETIREMENT OBLIGATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Changes to Asset Retirement Obligation | Following is a table of the changes to our asset retirement obligation for the following periods (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Asset retirement obligation, at beginning of period $ 24,780 $ 23,003 $ 23,872 $ 22,250 Liabilities settled — — — (116) Changes in estimated obligations — — 26 — Accretion of discount 441 434 1,323 1,303 Total asset retirement obligation, at end of period $ 25,221 $ 23,437 $ 25,221 $ 23,437 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contract Balances | Customer advances received before we have satisfied our performance obligations are accounted for as a contract liability (sometimes referred to in practice as deferred revenue). We will recognize the deferred revenue at the time the customer calls for water delivery. See Note 14—Commitments and Contingencies below for additional information regarding our water rights. Our deferred revenue activity for the three and nine months ended September 30, 2021, and 2020 is shown below (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Beginning balance $ 33,631 $ 22,690 $ 30,418 $ 16,612 Additions 146 3,883 4,119 13,529 Recognized as revenue during period (71) (71) (831) (3,639) Ending balance $ 33,706 $ 26,502 $ 33,706 $ 26,502 |
Disaggregation of Revenue | The tables below show the disaggregation of revenue by product and reconciles disaggregated revenue to segment revenue for the three and nine months ended September 30, 2021, and 2020. We believe the disaggregation of revenue by products best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic conditions (in thousands): Three Months Ended September 30, 2021 Product Potash Segment Trio ® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 26,573 $ — $ — $ (55) $ 26,518 Trio ® — 19,495 — — 19,495 Water 263 1,310 4,382 — 5,955 Salt 2,540 22 — — 2,562 Magnesium Chloride 1,921 — — — 1,921 Brine Water 376 — 301 — 677 Other — — 2,025 — 2,025 Total Revenue $ 31,673 $ 20,827 $ 6,708 $ (55) $ 59,153 Nine Months Ended September 30, 2021 Product Potash Segment Trio® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 97,248 $ — $ — $ (177) $ 97,071 Trio ® — 68,348 — — 68,348 Water 1,942 2,808 9,507 — 14,257 Salt 6,587 288 — — 6,875 Magnesium Chloride 5,829 — — — 5,829 Brine Water 1,338 — 735 — 2,073 Other — — 4,051 — 4,051 Total Revenue $ 112,944 $ 71,444 $ 14,293 $ (177) $ 198,504 Three Months Ended September 30, 2020 Product Potash Segment Trio ® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 18,575 $ — $ — $ (49) $ 18,526 Trio ® — 11,441 — — 11,441 Water 262 1,312 2,037 — 3,611 Salt 1,995 137 — — 2,132 Magnesium Chloride 1,127 — — — 1,127 Brine Water 228 — 105 — 333 Other — — 908 — 908 Total Revenue $ 22,187 $ 12,890 $ 3,050 $ (49) $ 38,078 Nine Months Ended September 30, 2020 Product Potash Segment Trio ® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 69,942 $ — $ — $ (253) $ 69,689 Trio ® — 51,474 — — 51,474 Water 957 2,963 10,727 — 14,647 Salt 5,792 285 — — 6,077 Magnesium Chloride 2,838 — — — 2,838 Brine Water 975 — 297 — 1,272 Other — — 2,515 — 2,515 Total Revenue $ 80,504 $ 54,722 $ 13,539 $ (253) $ 148,512 |
COMPENSATION PLANS (Tables)
COMPENSATION PLANS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Outstanding Share Based Awards | In May 2021, the Compensation Committee granted 16,535 shares of restricted stock to non-employee directors. The restricted shares vest one three Outstanding as of Restricted Shares 321 Non-qualified Stock Options 285 |
BUSINES SEGMENTS (Tables)
BUSINES SEGMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three Months Ended September 30, 2021 Potash Trio ® Oilfield Solutions Other Consolidated Sales $ 31,673 $ 20,827 $ 6,708 $ (55) $ 59,153 Less: Freight costs 3,928 4,038 — (55) 7,911 Warehousing and handling 1,241 825 — — 2,066 Cost of goods sold 18,385 10,528 6,061 — 34,974 Costs associated with 3,594 — — 3,594 Gross Margin $ 4,525 $ 5,436 $ 647 $ — $ 10,608 Depreciation, depletion, and amortization incurred 1 $ 6,257 $ 1,321 $ 818 $ 114 $ 8,510 Nine Months Ended Potash Trio ® Oilfield Solutions Other Consolidated Sales $ 112,944 $ 71,444 $ 14,293 $ (177) $ 198,504 Less: Freight costs 13,766 16,515 — (177) 30,104 Warehousing and handling 4,004 3,072 — — 7,076 Cost of goods sold 68,251 43,329 12,235 — 123,815 Costs associated with 3,594 — — — 3,594 Gross Margin $ 23,329 $ 8,528 $ 2,058 $ — $ 33,915 Depreciation, depletion, and amortization incurred 1 $ 19,895 $ 4,204 $ 2,206 $ 445 $ 26,750 Three Months Ended Potash Trio ® Oilfield Solutions Other Consolidated Sales $ 22,187 $ 12,890 $ 3,050 $ (49) $ 38,078 Less: Freight costs 3,973 3,878 — (49) 7,802 Warehousing and handling 1,173 1,142 — — 2,315 Cost of goods sold 14,928 8,754 3,363 — 27,045 Lower of cost or net 760 464 — — 1,224 Gross Margin (Deficit) $ 1,353 $ (1,348) $ (313) $ — $ (308) Depreciation, depletion, and amortization incurred 1 $ 6,430 $ 1,531 $ 657 $ 210 $ 8,828 Nine Months Ended Potash Trio ® Oilfield Solutions Other Consolidated Sales $ 80,504 $ 54,722 $ 13,539 $ (253) $ 148,512 Less: Freight costs 12,700 15,950 — (253) 28,397 Warehousing and handling 3,673 3,611 — — 7,284 Cost of goods sold 55,298 40,405 8,397 — 104,100 Lower of cost or net 1,130 2,885 — — 4,015 Gross Margin (Deficit) $ 7,703 $ (8,129) $ 5,142 $ — $ 4,716 Depreciation, depletion and amortization incurred 1 $ 19,485 $ 4,556 $ 1,945 $ 632 $ 26,618 1 Depreciation, depletion, and amortization incurred for potash and Trio ® excludes depreciation, depletion and amortization amounts absorbed in or relieved from inventory. |
COMPANY BACKGROUND (Narrative)
COMPANY BACKGROUND (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2021Facilitysegment | |
Number of mining facilities | Facility | 3 |
Number of reportable segments | segment | 3 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Aug. 10, 2020 | Sep. 30, 2021$ / sharesshares | Dec. 31, 2020$ / sharesshares |
Accounting Policies [Abstract] | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |
Common stock, shares authorized | shares | 40,000,000 | 40,000,000 | |
Reverse stock split, conversion ratio | 0.10 |
EARNINGS PER SHARE (Schedule of
EARNINGS PER SHARE (Schedule of Calculation of Basic and Diluted Loss or Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 4,023 | $ (10,175) | $ 25,973 | $ (26,444) |
Basic weighted average common shares outstanding (in shares) | 13,123 | 13,006 | 13,089 | 12,981 |
Add: Dilutive effect of restricted stock (in shares) | 177 | 0 | 197 | 0 |
Add: Dilutive effect of stock options (in shares) | 67 | 0 | 66 | 0 |
Diluted weighted average common shares outstanding (in shares) | 13,367 | 13,006 | 13,352 | 12,981 |
Basic (in dollars per share) | $ 0.31 | $ (0.78) | $ 1.98 | $ (2.04) |
Diluted (in dollars per share) | $ 0.30 | $ (0.78) | $ 1.95 | $ (2.04) |
EARNINGS PER SHARE (Schedule _2
EARNINGS PER SHARE (Schedule of Anti-Dilutive Shares) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restricted Shares [Member] | ||||
Anti-dilutive weighted average non-vested shares | ||||
Anti-dilutive shares (in shares) | 54 | 289 | 85 | 233 |
Stock Options [Member] | ||||
Anti-dilutive weighted average non-vested shares | ||||
Anti-dilutive shares (in shares) | 224 | 310 | 180 | 310 |
CASH, CASH EQUIVALENTS AND RE_3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 25,637 | $ 19,515 | $ 9,258 | |
Restricted cash included in other current assets | 175 | 150 | ||
Restricted cash included in other long-term assets | 519 | 516 | ||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 26,331 | $ 20,184 | $ 9,924 | $ 21,239 |
INVENTORY AND LONG-TERM PARTS_3
INVENTORY AND LONG-TERM PARTS INVENTORY (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |||||
Allowances for obsolescence | $ 1,100 | $ 1,100 | $ 1,100 | ||
Lower of cost or net realizable value inventory adjustments | 0 | $ 1,224 | 0 | $ 4,015 | |
Costs associated with abnormal production | $ 3,594 | $ 3,594 |
INVENTORY AND LONG-TERM PARTS_4
INVENTORY AND LONG-TERM PARTS INVENTORY (Summary of Inventory) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||
Finished goods product inventory | $ 32,156 | $ 48,961 |
In-process inventory | 32,974 | 28,833 |
Total product inventory | 65,130 | 77,794 |
Current parts inventory, net | 11,698 | 10,879 |
Total current inventory, net | 76,828 | 88,673 |
Long-term parts inventory, net | 29,067 | 28,900 |
Total inventory, net | $ 105,895 | $ 117,573 |
PROPERTY, PLANT, EQUIPMENT, A_3
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
May 31, 2021USD ($)a | Mar. 31, 2020USD ($)a | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | |
Property, Plant and Equipment [Line Items] | ||||||
Number of acre, land sold | a | 330 | 320 | ||||
Proceeds from sale of assets | $ 6,000 | $ 4,800 | $ 6,042 | $ 4,786 | ||
Gain on sale of assets | $ 2,800 | $ 4,700 | $ (5) | $ (21) | $ 2,560 | $ 4,441 |
PROPERTY, PLANT, EQUIPMENT, A_4
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES (Schedule of Property, Plant, Equipment, and Mineral Properties) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | $ 622,040 | $ 612,468 |
Less: accumulated depreciation, depletion, and amortization | (282,054) | (256,971) |
Total property, plant, equipment and mineral properties, net | 339,986 | 355,497 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 24,136 | 27,263 |
Ponds and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 68,247 | 67,843 |
Mineral Properties And Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 144,449 | 143,955 |
Buildings and Plant [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 82,923 | 81,692 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 270,556 | 265,121 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 6,691 | 5,919 |
Office Equipment and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 9,147 | 9,083 |
Operating Lease ROU Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 8,835 | 9,622 |
Breeding Stock | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | 278 | 260 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, equipment, and mineral properties, gross | $ 6,778 | $ 1,710 |
PROPERTY, PLANT, EQUIPMENT, A_5
PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES (Schedule of Depreciation, Depletion, and Accretion) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 7,294 | $ 7,511 | $ 22,145 | $ 22,164 |
Depletion | 600 | 710 | 2,796 | 2,599 |
Amortization of right of use assets | 536 | 527 | 1,568 | 1,614 |
Total incurred | $ 8,430 | $ 8,748 | $ 26,509 | $ 26,377 |
DEBT (Details)
DEBT (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021 | Apr. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt | ||||||
Proceeds from credit facility | $ 0 | $ 10,000 | ||||
Repayments of credit facility | 29,817 | 0 | ||||
Repayments of long-term debt | 15,000 | 35,000 | ||||
Interest expense | $ 110 | $ 2,450 | 1,476 | 3,973 | ||
Gain on extinguishment of debt | 0 | $ 0 | (10,113) | 0 | ||
Interest | 851 | $ 1,974 | ||||
Revolving Credit Facility | ||||||
Debt | ||||||
Proceeds from credit facility | 0 | 0 | ||||
Repayments of credit facility | 29,800 | 29,800 | ||||
Line of credit, outstanding | 0 | 0 | ||||
Letters of credit outstanding, amount | $ 1,000 | $ 1,000 | ||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility | ||||||
Debt | ||||||
Credit facility interest | 1.25% | |||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility | ||||||
Debt | ||||||
Credit facility interest | 2.00% | |||||
Series B Senior Notes [Member] | ||||||
Debt | ||||||
Make-whole payment | $ 500 | |||||
Repayments of senior note | 15,000 | |||||
Interest | 100 | |||||
Aggregate Amount of Debt Repayment | 15,600 | |||||
Paycheck Protection Program Loan [Member] | ||||||
Debt | ||||||
Proceeds from loan | $ 10,000 | |||||
Gain on extinguishment of debt | $ 10,100 |
DEBT SCHEDULE OF INTEREST EXPEN
DEBT SCHEDULE OF INTEREST EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Disclosure [Abstract] | ||||
Interest on debt borrowings | $ 50 | $ 386 | $ 717 | $ 1,748 |
Make-whole payments | 0 | 1,868 | 505 | 1,868 |
Amortization of deferred financing costs | 60 | 196 | 254 | 357 |
Gross interest expense | 110 | 2,450 | 1,476 | 3,973 |
Less capitalized interest | (28) | 0 | (50) | (96) |
Interest expense, net | $ 82 | $ 2,450 | $ 1,426 | $ 3,877 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, water rights | $ 19,184 | $ 19,184 |
Finite-lived intangible assets, weighted average amortization period | 18 years | |
Finite-lived intangible assets, net | $ 5,600 | $ 5,900 |
FINANCIAL INFORMATION FOR SUB_2
FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Guarantees [Abstract] | ||
Cash | $ 25,600 | $ 19,500 |
ASSET RETIREMENT OBLIGATION (Na
ASSET RETIREMENT OBLIGATION (Narrative) (Details) - Measurement Input, Risk Free Interest Rate [Member] | Sep. 30, 2021 |
Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Credit Adjusted Risk-Free Rates to Discount Abandonment Liabilities | 0.069 |
Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Credit Adjusted Risk-Free Rates to Discount Abandonment Liabilities | 0.097 |
ASSET RETIREMENT OBLIGATION (Sc
ASSET RETIREMENT OBLIGATION (Schedule of Changes to Asset Retirement Obligation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | ||||
Asset retirement obligation, at beginning of period | $ 24,780 | $ 23,003 | $ 23,872 | $ 22,250 |
Liabilities settled | 0 | 0 | 0 | (116) |
Changes in estimated obligations | 0 | 0 | 26 | 0 |
Accretion of discount | 441 | 434 | 1,323 | 1,303 |
Total asset retirement obligation, at end of period | $ 25,221 | $ 23,437 | $ 25,221 | $ 23,437 |
REVENUE (Narrative) (Details)
REVENUE (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||||||
Contract liabilities | $ 33,706 | $ 33,631 | $ 30,418 | $ 26,502 | $ 22,690 | $ 16,612 |
REVENUE (Contract Balances) (De
REVENUE (Contract Balances) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||||
Beginning balance | $ 33,631 | $ 22,690 | $ 30,418 | $ 16,612 |
Additions | 146 | 3,883 | 4,119 | 13,529 |
Recognized as revenue during period | (71) | (71) | (831) | (3,639) |
Ending balance | $ 33,706 | $ 26,502 | $ 33,706 | $ 26,502 |
REVENUE (Disaggregation of Reve
REVENUE (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Potash [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 26,518 | $ 18,526 | $ 97,071 | $ 69,689 |
Trio [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 19,495 | 11,441 | 68,348 | 51,474 |
Water [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 5,955 | 3,611 | 14,257 | 14,647 |
Salt [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 2,562 | 2,132 | 6,875 | 6,077 |
Magnesium Chloride [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 1,921 | 1,127 | 5,829 | 2,838 |
Brine Water [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 677 | 333 | 2,073 | 1,272 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 2,025 | 908 | 4,051 | 2,515 |
Mineral [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 59,153 | 38,078 | 198,504 | 148,512 |
Potash [Member] | Potash [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 26,573 | 18,575 | 97,248 | 69,942 |
Potash [Member] | Trio [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Potash [Member] | Water [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 263 | 262 | 1,942 | 957 |
Potash [Member] | Salt [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 2,540 | 1,995 | 6,587 | 5,792 |
Potash [Member] | Magnesium Chloride [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 1,921 | 1,127 | 5,829 | 2,838 |
Potash [Member] | Brine Water [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 376 | 228 | 1,338 | 975 |
Potash [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Potash [Member] | Mineral [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 31,673 | 22,187 | 112,944 | 80,504 |
Trio [Member] | Potash [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Trio [Member] | Trio [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 19,495 | 11,441 | 68,348 | 51,474 |
Trio [Member] | Water [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 1,310 | 1,312 | 2,808 | 2,963 |
Trio [Member] | Salt [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 22 | 137 | 288 | 285 |
Trio [Member] | Magnesium Chloride [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Trio [Member] | Brine Water [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Trio [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Trio [Member] | Mineral [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 20,827 | 12,890 | 71,444 | 54,722 |
Oil Field Solutions [Member] | Potash [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Oil Field Solutions [Member] | Trio [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Oil Field Solutions [Member] | Water [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 4,382 | 2,037 | 9,507 | 10,727 |
Oil Field Solutions [Member] | Salt [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Oil Field Solutions [Member] | Magnesium Chloride [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Oil Field Solutions [Member] | Brine Water [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 301 | 105 | 735 | 297 |
Oil Field Solutions [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 2,025 | 908 | 4,051 | 2,515 |
Oil Field Solutions [Member] | Mineral [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 6,708 | 3,050 | 14,293 | 13,539 |
Intersegment Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | (55) | (49) | (177) | (253) |
Intersegment Eliminations [Member] | Potash [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | (55) | (49) | (177) | (253) |
Intersegment Eliminations [Member] | Trio [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Intersegment Eliminations [Member] | Water [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Intersegment Eliminations [Member] | Salt [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Intersegment Eliminations [Member] | Magnesium Chloride [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Intersegment Eliminations [Member] | Brine Water [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Intersegment Eliminations [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
COMPENSATION PLANS (Narrative)
COMPENSATION PLANS (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
May 31, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity Incentive Compensation Plan [Abstract] | ||||||
Shares available for issuance | 600,000 | 600,000 | ||||
Non Qualified Stock Options [Abstract] | ||||||
Compensation expense | $ 0.6 | $ 1 | $ 2.3 | $ 3 | ||
Unrecognized compensation expense | $ 3.6 | $ 3.6 | ||||
Weighted average period, unrecognized compensation expense | 1 year 4 months 24 days | |||||
Directors [Member] | Restricted Shares [Member] | ||||||
Restricted Stock [Abstract] | ||||||
Shares granted | 16,535 | |||||
Non Qualified Stock Options [Abstract] | ||||||
Period over which grants vest (in years) | 1 year | |||||
Key Employees | Restricted Shares [Member] | ||||||
Restricted Stock [Abstract] | ||||||
Shares granted | 42,445 | |||||
Non Qualified Stock Options [Abstract] | ||||||
Period over which grants vest (in years) | 3 years |
COMPENSATION PLANS (Schedule of
COMPENSATION PLANS (Schedule of Outstanding Share Based Awards) (Details) shares in Thousands | Sep. 30, 2021shares |
Restricted Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards outstanding, restricted stock | 321 |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards outstanding, options | 285 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 0 | $ 0 | $ 0 | $ (42) |
Effective tax rate | 0.00% | 0.00% | 0.00% | 0.00% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2021USD ($) | May 31, 2020USD ($) | Feb. 28, 2019acre ft | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2019acre ft | Mar. 31, 2018acre ft | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2018acre ft | Dec. 31, 2020USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||||||||||
Security placed with the State of Utah and BLM | $ 23,000 | $ 23,000 | $ 23,000 | ||||||||
Long-term restricted cash deposits | 500 | 500 | 500 | ||||||||
Surety bonds issued by an insurer | 22,500 | 22,500 | $ 22,500 | ||||||||
Loss Contingencies [Line Items] | |||||||||||
Litigation settlement | $ 10,000 | 0 | $ 0 | 0 | $ 10,075 | ||||||
Water Rights [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Pecos Water Right volume per year | acre ft | 20,000 | ||||||||||
Allowable water rights to sell pending settlement | acre ft | 5,800 | 5,800 | |||||||||
Preliminary authorization of annual allowable water sales, volume, cancelled | acre ft | 5,700 | ||||||||||
Quarterly installment received from customer | $ 3,900 | ||||||||||
Outstanding contract liability that might have to be repaid | $ 32,500 | $ 32,500 |
FAIR VALUE (Details)
FAIR VALUE (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Jun. 30, 2021 | May 31, 2020 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |||
Senior notes, fair value | $ 15 | ||
Series B Senior Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Repayments of senior note | $ 15 | ||
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Acquisition of noncontrolling Interest | $ 3.5 |
BUSINESS SEGMENTS (Narrative) (
BUSINESS SEGMENTS (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
BUSINESS SEGMENT (Information b
BUSINESS SEGMENT (Information by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Segment Reporting Information [Line Items] | |||||
Lower of cost or net realizable value inventory adjustments | $ 0 | $ 1,224 | $ 0 | $ 4,015 | |
Costs associated with abnormal production | 3,594 | 3,594 | |||
Gross Margin (Deficit) | 10,608 | (308) | 33,915 | 4,716 | |
Depreciation, depletion and amortization expense | [1] | 8,510 | 8,828 | 26,750 | 26,618 |
Operating Segments [Member] | Potash [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Lower of cost or net realizable value inventory adjustments | 760 | 1,130 | |||
Costs associated with abnormal production | 3,594 | 3,594 | |||
Gross Margin (Deficit) | 4,525 | 1,353 | 23,329 | 7,703 | |
Depreciation, depletion and amortization expense | [1] | 6,257 | 6,430 | 19,895 | 19,485 |
Operating Segments [Member] | Trio [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Lower of cost or net realizable value inventory adjustments | 464 | 2,885 | |||
Costs associated with abnormal production | 0 | 0 | |||
Gross Margin (Deficit) | 5,436 | (1,348) | 8,528 | (8,129) | |
Depreciation, depletion and amortization expense | [1] | 1,321 | 1,531 | 4,204 | 4,556 |
Operating Segments [Member] | Oil Field Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Costs associated with abnormal production | 0 | ||||
Gross Margin (Deficit) | 647 | (313) | 2,058 | 5,142 | |
Depreciation, depletion and amortization expense | [1] | 818 | 657 | 2,206 | 1,945 |
Corporate/Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Costs associated with abnormal production | 0 | 0 | |||
Gross Margin (Deficit) | 0 | 0 | 0 | 0 | |
Depreciation, depletion and amortization expense | [1] | 114 | 210 | 445 | 632 |
Freight Costs [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of Goods Sold | 7,911 | 7,802 | 30,104 | 28,397 | |
Freight Costs [Member] | Operating Segments [Member] | Potash [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of Goods Sold | 3,928 | 3,973 | 13,766 | 12,700 | |
Freight Costs [Member] | Operating Segments [Member] | Trio [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of Goods Sold | 4,038 | 3,878 | 16,515 | 15,950 | |
Freight Costs [Member] | Operating Segments [Member] | Oil Field Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of Goods Sold | 0 | 0 | 0 | 0 | |
Freight Costs [Member] | Corporate/Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of Goods Sold | (55) | (49) | (177) | (253) | |
Warehouse and Handling [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of Goods Sold | 2,066 | 2,315 | 7,076 | 7,284 | |
Warehouse and Handling [Member] | Operating Segments [Member] | Potash [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of Goods Sold | 1,241 | 1,173 | 4,004 | 3,673 | |
Warehouse and Handling [Member] | Operating Segments [Member] | Trio [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of Goods Sold | 825 | 1,142 | 3,072 | 3,611 | |
Warehouse and Handling [Member] | Operating Segments [Member] | Oil Field Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of Goods Sold | 0 | 0 | 0 | 0 | |
Warehouse and Handling [Member] | Corporate/Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost of Goods Sold | 0 | 0 | 0 | 0 | |
Mineral [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 59,153 | 38,078 | 198,504 | 148,512 | |
Cost of Goods Sold | 34,974 | 27,045 | 123,815 | 104,100 | |
Mineral [Member] | Potash [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 31,673 | 22,187 | 112,944 | 80,504 | |
Mineral [Member] | Trio [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 20,827 | 12,890 | 71,444 | 54,722 | |
Mineral [Member] | Oil Field Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 6,708 | 3,050 | 14,293 | 13,539 | |
Mineral [Member] | Operating Segments [Member] | Potash [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 31,673 | 22,187 | 112,944 | 80,504 | |
Cost of Goods Sold | 18,385 | 14,928 | 68,251 | 55,298 | |
Mineral [Member] | Operating Segments [Member] | Trio [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 20,827 | 12,890 | 71,444 | 54,722 | |
Cost of Goods Sold | 10,528 | 8,754 | 43,329 | 40,405 | |
Mineral [Member] | Operating Segments [Member] | Oil Field Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 6,708 | 3,050 | 14,293 | 13,539 | |
Cost of Goods Sold | 6,061 | 3,363 | 12,235 | 8,397 | |
Lower of cost or net realizable value inventory adjustments | 0 | 0 | |||
Mineral [Member] | Corporate/Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | (55) | (49) | (177) | (253) | |
Cost of Goods Sold | $ 0 | $ 0 | $ 0 | $ 0 | |
[1] | Depreciation, depletion, and amortization incurred for potash and Trio ® excludes depreciation, depletion and amortization amounts absorbed in or relieved from inventory. |