Oppenheimer Maintains Perform on Intrepid Potash (IPI)

Oppenheimer is out with its report today on Intrepid Potash IPI, maintaining Perform. In a note to clients, Oppenheimer writes, "On 5/4, IPI reported 1Q11 EPS of $0.28, $0.01 below our estimate, up 75.1% yoy. Sales and volumes were within the ranges pre-announced on 4/15. The slight miss is mostly attributable to higher langbeinite production costs, as continued lower than historical recoveries drove costs to $160/ton in 1Q11 vs. $119/ton in 1Q10 and $141 in 4Q10. The company started to see improved recoveries in March, but we expect high production costs to remain a headwind for the remainder of 2011 as production normalizes. Long term, ag fundamentals remain positive and the company recently raised posted prices, but near term cold wet weather in the Midwest and a drought in Texas may cut or push some volumes from 2Q11." Shares of IPI closed Friday at $30.96, up 1.57% from Thursday's close.