Diversified mineral company Intrepid Potash (NYSE: IPI) shares are climbing on Thursday after the company reported positive moves in the fertiliser market over the past few weeks.
Intrepid said the potash price into agricultural markets has increased by $90 per ton, or 31%, higher than the 2020 summer-fill pricing following a $40 per ton increase announced in December.
Meanwhile, Trio price into agricultural markets has increased by $60 per ton, representing a 27% increase on summer-fill pricing after a $20 increase in December.
The company’s oilfield outlook also continues to improve in the Northern Delaware Basin, which has been helped by an increase in drilling and fracking. Intrepid said it forecasts first quarter 2021 and full year 2021 water volumes above the same time last year in the Intrepid and NGL Energy Partners (NGL) three-ranch area of mutual interest.
“After announcing the price increases in December, we quickly filled the rest of our Q1 2021 order book before the higher price took effect and expect the benefits of higher pricing will be seen in the second quarter of next year. We continue to see good value across the fertilizer supply chain and have already sold select spot tons at higher price levels,” commented Bob Jornayvaz, Intrepid's Executive Chairman, President, and CEO.
The company’s shares have risen over 60% on new years eve. They are currently trading at $25.83, up 45.60% on the day.