Intrepid Potash to receive up to $200M from XTO for oil & gas co-development in New Mexico

Intrepid Potash, Inc.

Immediate payments of $5M (Dec 12, 2023) and $45M (Jan 2, 2024) from XTO, totaling $50M upfront.
Additional one-time $50M Access Fee due within 90 days of first new/expanded drilling island approval or by Jan 1, 2031.
Up to $100M Access Realization Fee based on future lateral drilling footage, capped at $100M aggregate.
Intrepid agrees to support and not oppose XTO's oil and gas development within the Designated Potash Area.
Amendment removes development restrictions allowing efficient co-development under Secretary of Interior Order 3324.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Intrepid Potash, Inc. amended Third Amendment of Cooperative Development Agreement with XTO Holdings, LLC and XTO Delaware Basin, LLC valued at $5 million and $45 million, respectively, plus up to $50 million Access Fee and up to $100 million A (effective 2023-12-12).

Action: amendment
Counterparty: XTO Holdings, LLC and XTO Delaware Basin, LLC
Value: $5 million and $45 million, respectively, plus up to $50 million Access Fee and up to $100 million A
Effective: 2023-12-12

Exact text from the filing

On December 12, 2023, Intrepid Potash, Inc. (the “Company”) and Intrepid Potash-New Mexico, LLC (“Intrepid NM,” and together with the Company, “Intrepid”) entered into the Third Amendment of Cooperative Development Agreement (the “Amendment”) with XTO Holdings, LLC (“XTO Holdings”) and XTO Delaware Basin, LLC, as successors in interest to BOPCO, L.P.

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Intrepid Potash, Inc. filing history →

Source: SEC EDGAR

accession 0001104659-23-125758

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