We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Intrepid's (IPI) Moab Drilling Projects to Drive Production
Read MoreHide Full Article
Intrepid Potash, Inc. (IPI - Free Report) has achieved a significant milestone with the successful completion of the Well 45 and Well 46 drilling projects at its solar solution potash mine in Moab, UT. These projects mark the second update on IPI’s major capital ventures outlined in its 2023 capital program.
The completion of the Well 45 and Well 46 drilling projects in time for the 2023 evaporation season is a crucial step toward maximizing brine availability and improving underground brine residence time. This strategic approach is expected to enhance the brine grade and facilitate higher and more consistent production for Intrepid Potash.
Well 45 is a newly designed single-well cavern system featuring three interlocking laterals. Its purpose is to target new ore in Potash Bed 9, utilizing around 18,000 feet of horizontal drilling. The initial phase of cavern development has commenced, demonstrating good availability of high-grade ore. Following cavern development, selective solution mining will begin using salt-saturated brine. The benefits of Well 45 are expected to be realized in the 2024 evaporation season. This well's total capital cost was roughly $11.5 million, representing a 40% reduction compared to the previous two-well cavern systems.
Well 46, on the other hand, is a horizontal drilling project aimed at accessing a high-grade brine pool in Potash Bed 5. Well 46 serves multiple purposes — contributing to the 2023 potash production during the third quarter, providing access to drill additional laterals in Potash Bed 5 or other stranded brine pools and serving as a backup for other injection/extraction wells. The capital cost for Well 46 was around $5 million.
The successful completion of the Well 45 and Well 46 drilling projects builds upon the achievements of Intrepid's Phase One HB Injection Pipeline Project, which was announced last month.
With its 2023 capital program expected in the range of $60-75 million, Intrepid Potash remains committed to successful project execution across its operations. The completion of these drilling projects represents a significant stride forward, driving increased production and reinforcing Intrepid Potash's position as a leading player in the potash mining sector.
IPI shares have lost 35.7% in the past year against the 20.9% decline of its industry. The Zacks Consensus Estimate for the company’s current-year earnings has been stable in the past 60 days. The consensus estimate for current-year earnings is currently pegged at $1.06, suggesting a year-over-year decline of 82.3%.
Image Source: Zacks Investment Research
The company’s profitability in the first quarter of 2023 was hurt by lower prices for major products. Nevertheless, it is gaining from a healthy demand environment. A recovery in economic activities is driving demand for its specialty fertilizer, Trio. Higher demand for key products is expected to drive IPI’s volumes.
The company also remains focused on executing its capital projects, which are expected to improve its production. The primary objectives for its 2023 capital expenditures are investment in potash and Trio assets and its sand project at Intrepid South.
Intrepid Potash currently has a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include PPG Industries, Inc. (PPG - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Linde plc (LIN - Free Report) .
PPG Industries currently carries a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for PPG's current-year earnings has been stable over the past 60 days.
PPG Industries’ earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 6.8%, on average. PPG shares have gained around 30% in a year.
The Zacks Consensus Estimate for current-year earnings for CRS is currently pegged at $1.04, implying year-over-year growth of 198.1%. Carpenter Technology currently carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has a trailing four-quarter earnings surprise of roughly 30.9%, on average. The stock has gained around 105% in a year.
Linde currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 0.7% upward in the past 60 days.
Linde beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 6.9% on average. LIN shares have risen roughly 34% in the past year.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Intrepid's (IPI) Moab Drilling Projects to Drive Production
Intrepid Potash, Inc. (IPI - Free Report) has achieved a significant milestone with the successful completion of the Well 45 and Well 46 drilling projects at its solar solution potash mine in Moab, UT. These projects mark the second update on IPI’s major capital ventures outlined in its 2023 capital program.
The completion of the Well 45 and Well 46 drilling projects in time for the 2023 evaporation season is a crucial step toward maximizing brine availability and improving underground brine residence time. This strategic approach is expected to enhance the brine grade and facilitate higher and more consistent production for Intrepid Potash.
Well 45 is a newly designed single-well cavern system featuring three interlocking laterals. Its purpose is to target new ore in Potash Bed 9, utilizing around 18,000 feet of horizontal drilling. The initial phase of cavern development has commenced, demonstrating good availability of high-grade ore. Following cavern development, selective solution mining will begin using salt-saturated brine. The benefits of Well 45 are expected to be realized in the 2024 evaporation season. This well's total capital cost was roughly $11.5 million, representing a 40% reduction compared to the previous two-well cavern systems.
Well 46, on the other hand, is a horizontal drilling project aimed at accessing a high-grade brine pool in Potash Bed 5. Well 46 serves multiple purposes — contributing to the 2023 potash production during the third quarter, providing access to drill additional laterals in Potash Bed 5 or other stranded brine pools and serving as a backup for other injection/extraction wells. The capital cost for Well 46 was around $5 million.
The successful completion of the Well 45 and Well 46 drilling projects builds upon the achievements of Intrepid's Phase One HB Injection Pipeline Project, which was announced last month.
With its 2023 capital program expected in the range of $60-75 million, Intrepid Potash remains committed to successful project execution across its operations. The completion of these drilling projects represents a significant stride forward, driving increased production and reinforcing Intrepid Potash's position as a leading player in the potash mining sector.
IPI shares have lost 35.7% in the past year against the 20.9% decline of its industry. The Zacks Consensus Estimate for the company’s current-year earnings has been stable in the past 60 days. The consensus estimate for current-year earnings is currently pegged at $1.06, suggesting a year-over-year decline of 82.3%.
Image Source: Zacks Investment Research
The company’s profitability in the first quarter of 2023 was hurt by lower prices for major products. Nevertheless, it is gaining from a healthy demand environment. A recovery in economic activities is driving demand for its specialty fertilizer, Trio. Higher demand for key products is expected to drive IPI’s volumes.
The company also remains focused on executing its capital projects, which are expected to improve its production. The primary objectives for its 2023 capital expenditures are investment in potash and Trio assets and its sand project at Intrepid South.
Intrepid Potash, Inc Price and Consensus
Intrepid Potash, Inc price-consensus-chart | Intrepid Potash, Inc Quote
Zacks Rank & Key Picks
Intrepid Potash currently has a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include PPG Industries, Inc. (PPG - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Linde plc (LIN - Free Report) .
PPG Industries currently carries a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for PPG's current-year earnings has been stable over the past 60 days.
PPG Industries’ earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 6.8%, on average. PPG shares have gained around 30% in a year.
The Zacks Consensus Estimate for current-year earnings for CRS is currently pegged at $1.04, implying year-over-year growth of 198.1%. Carpenter Technology currently carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has a trailing four-quarter earnings surprise of roughly 30.9%, on average. The stock has gained around 105% in a year.
Linde currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 0.7% upward in the past 60 days.
Linde beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 6.9% on average. LIN shares have risen roughly 34% in the past year.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.