Intrepid Potash Inc. on Jan. 2, 2024, received a payment of $45 million from XTO companies, subsidiaries of ExxonMobil (GM Dec. 15, 2023), which was expected and in addition to an initial payment of $5 million received from XTO on Dec. 12, 2023.
In total, Intrepid expects to pull in some $100 million or more for an amendment to its Designated Potash Area (DPA) that will allow XTO Holdings and XTO Delaware Basin to pursue drilling activities within the DPA.
Between Dec. 12, 2023, and Jan. 2, 2024, Intrepid received $50 million and will receive another $50 million as an “access fee” at a later date. XTO would also pay up to a maximum amount of $100 million as an “access realization fee” in the event of certain additional drilling activities.
“This amendment furthers our goal of cooperation and the efficient co-development of resources within the DPA,” said Bob Jornayvaz, Intrepid Executive Chairman. “The consideration received under the amendment brings us closer to our goal of creating sustained value for shareholders and will be instrumental in allowing us to pursue opportunities across our asset base.”