Summary of Gevo Conference Call - September 25, 2025 Company Overview - Gevo is focused on producing renewable resource-based fuels, including jet fuel, gasoline, and diesel, from renewable carbon sources, aiming for carbon-negative footprints [1][2] - The company has a team with extensive experience in both agricultural and petrochemical sectors, having previously developed biodegradable plastics [2] Business Model and Operations - Gevo's production process involves converting carbohydrates into hydrocarbons through alcohols like ethanol and isobutanol, utilizing established petrochemical industry methods [3] - The company operates four business segments, with Gevo Fuels being a key area, including a recently acquired ethanol plant in North Dakota, currently operating at 12% capacity [3][4] - The company emphasizes the economic benefits of using corn as a raw material, clarifying that the corn used is not for human consumption but rather for ethanol and protein production [5][6] Carbon Management and Market Opportunities - Gevo is involved in carbon capture and removal, generating Carbon Dioxide Removal (CDR) credits, which are sold in voluntary carbon markets [4][10] - The company distinguishes between CDRs and the 45Z tax credit, highlighting the potential revenue from CDRs ranging from $100 to $300 per ton [10][11] - Current adjusted EBITDA is approximately $20 million annually, with projections to reach $40 million and potentially $110 million in the near future through optimized operations [11][12] Market Demand and Future Growth - U.S. jet fuel demand is projected to increase, with a significant shortfall expected by 2035, creating opportunities for renewable jet fuel (SAF) commercialization [14][15] - Gevo's production costs for renewable jet fuel are competitive with traditional jet fuel, positioning the company favorably in the market [16] - The company plans to build Alcohol-to-Jet (ATJ) plants, which are expected to significantly enhance EBITDA by approximately $150 million per site [17][18] Strategic Initiatives - Gevo aims to optimize cash flow and expand capacity at its North Dakota site, with plans to build ATJ plants using a modular approach to reduce execution risks [20][21] - The company is focused on creating a reproducible model for plant deployment, emphasizing the importance of financing and operational efficiency [29] Economic and Environmental Impact - Gevo's operations are positioned to contribute to rural economic development, creating jobs and generating significant regional economic impact [18] - The company aligns with energy security goals, providing economical hydrocarbon products while addressing carbon emissions [18][19] Conclusion - Gevo is strategically positioned in the renewable fuels market, leveraging its expertise in agriculture and petrochemicals to capitalize on growing demand for sustainable energy solutions while managing carbon emissions effectively [19][20]

Core Viewpoint - Gevo, Inc. is actively engaging with investors by presenting at the MicroCap Rodeo, highlighting its commitment to renewable energy and innovative technologies [1]. Company Overview - Gevo is a diversified energy company focused on providing cost-effective, drop-in fuels that enhance energy security and support rural economic growth [2]. - The company utilizes innovative technology to produce a range of renewable products, including synthetic aviation fuel (SAF), motor fuels, and chemicals [2]. - Gevo operates one of the largest dairy-based renewable natural gas (RNG) facilities in the U.S., converting by-products into clean energy [2]. - The company also runs an ethanol plant with an adjacent carbon capture and sequestration (CCS) facility, reinforcing U.S. leadership in energy innovation [2]. - Gevo is recognized for owning the world's first production facility for specialty alcohol-to-jet (ATJ) fuels and chemicals [2]. - The company's market-driven "pay for performance" approach ensures value delivery to the local economy through sustainability attributes [2]. - Through its Verity subsidiary, Gevo enhances transparency and efficiency in tracking and verifying supply chain attributes [2].

Core Insights - Frontier Infrastructure Holdings LLC has announced a strategic partnership with Gevo, Inc. to create North America's first fully integrated carbon management platform for ethanol producers [1] Group 1: Company Overview - Frontier Infrastructure Holdings LLC is a portfolio company of Tailwater Capital and is recognized as a leading developer of low-carbon infrastructure in the Mountain West and Texas [1] - Gevo, Inc. is involved in the development of sustainable alternatives to fossil fuels, focusing on ethanol production [1] Group 2: Strategic Partnership - The partnership aims to combine rail transportation, permanent sequestration, and digital carbon tracking to enhance decarbonization efforts [1] - This initiative represents a significant advancement in carbon management solutions for the ethanol industry [1]

Core Viewpoint - Gevo, Inc. has signed a Carbon Dioxide Removal Sales Agreement with Biorecro North America, which is expected to generate approximately $26 million in revenue over five years from carbon dioxide removal credits [1][2] Group 1: Agreement and Revenue Generation - The Agreement with Biorecro is for the commercialization of carbon dioxide removal credits generated at Gevo's North Dakota facility, focusing on voluntary credits [1] - The expected revenue from this Agreement is around $26 million over five years, with potential for volume expansion [1][2] Group 2: Operational Capabilities - Gevo North Dakota has been certifying up to 165,000 tonnes of stored CO2 per year since 2022, making it one of the first operational BECCS projects globally [2] - The facility has the capacity to store up to an estimated 1 million tonnes of CO2 per year, utilizing a Class VI well for carbon capture and storage [2][4] Group 3: Market Demand and Strategic Positioning - The deal highlights the demand for high-quality carbon dioxide removal credits, providing Gevo with stable revenue streams despite the volatility in biofuel markets [2] - Biorecro's expertise in BECCS and its commitment to integrating operations into existing industrial facilities enhances the potential for growth in the carbon removal sector [2][9] Group 4: Technological and Environmental Impact - Gevo's North Dakota site captures biogenic CO2, which is a coproduct of its processes, and generates carbon removal credits that help customers offset emissions [4] - The carbon removal credits are certified by Puro.earth, ensuring adherence to strict standards for permanence and quality [2][4]

Group 1: Stock Market Overview - U.S. stocks exhibited mixed performance, with the Dow Jones index increasing by over 200 points on Wednesday [1] Group 2: Notable Stock Movements - Lyft, Inc. shares surged by 13.5% to $22.92 following the announcement of an expansion plan with Waymo to Nashville, where Lyft's Flexdrive will manage Waymo's fully autonomous vehicles [1] - New Fortress Energy Inc. saw its shares jump 32.3% to $2.6501 after securing a long-term gas supply agreement with the Puerto Rican government [3] - Oruka Therapeutics, Inc. experienced a 14.1% increase in shares to $17.01 after announcing interim Phase 1 results for ORKA-001 and a $180 million private placement [3] - Robo.ai Inc. shares rose by 12.9% to $1.9190 [3] - Roivant Sciences Ltd. gained 12% to $15.89 after reporting Phase 3 results for brepocitinib in treating a debilitating skin-muscle disease [3] - Opendoor Technologies Inc. shares surged by 11.1% to $9.91 [3] - Gevo, Inc. also gained 11.1%, reaching $2.1089 [3] - Blue Gold Limited saw a 10.5% increase to $11.05 [3] - Workday, Inc. shares surged by 9% to $238.63 after an upgrade from Piper Sandler, raising the price target from $220 to $235 [3] - Parsons Corporation gained 6.9% to $80.64 after being awarded a task order for Indo-Pacific Counter-Nuclear Smuggling System Deployment [3] - e.l.f. Beauty, Inc. shares increased by 4.6% to $149.91, with B of A Securities maintaining a Buy rating and raising the price target from $135 to $160 [3]

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in auditing and trading, having navigated significant market events such as the dotcom bubble and the subprime crisis [2] - The research provided aims to maintain high quality despite language barriers [2]

Market Performance - U.S. stocks traded higher, with the S&P 500 gaining around 1% on Tuesday, closing at 6,439.10 [1] - The Dow rose 1.04% to 44,431.01, and the NASDAQ increased by 1.26% to 21,654.94 [1] - Communication services shares jumped by 1.8%, while consumer staples stocks fell by 0.8% [1] Inflation Data - The U.S. annual inflation rate remained steady at 2.7% in July, down from market estimates of 2.8% [2][8] - Core inflation rose to a five-month high of 3.1%, up from 2.9% in June [2][8] Commodity Prices - Oil traded down 1.2% to $63.20, while gold decreased by 0.2% to $3,399.00 [5] - Silver rose by 0.5% to $37.965, and copper increased by 1.9% to $4.5240 [5] European Market Performance - European shares were mostly higher, with the eurozone's STOXX 600 rising 0.21% [6] - Spain's IBEX 35 Index rose 0.02%, London's FTSE 100 increased by 0.20%, while Germany's DAX 40 declined by 0.23% [6] Asian Market Performance - Asian markets closed mostly higher, with Japan's Nikkei 225 gaining 2.15% and Hong Kong's Hang Seng rising 0.25% [7] - China's Shanghai Composite increased by 0.50%, while India's BSE Sensex fell by 0.46% [7] Company-Specific Movements - 180 Life Sciences Corp. shares surged 259% to $11.99 after completing a $156 million private offering [9] - Gevo, Inc. shares rose 52% to $1.9000 following better-than-expected Q2 EPS results [9] - WideOpenWest, Inc. shares gained 49% to $5.04 after agreeing to be acquired for $5.20 per share [9] - Spirit Aviation Holdings, Inc. shares dropped 40% to $2.1500 after the acquisition announcement [9] - Myomo, Inc. shares fell 40% to $1.0550 after reporting Q2 results and issuing lower Q3 sales guidance [9] - BigBear.ai Holdings, Inc. shares decreased by 18% to $5.82 after reporting worse-than-expected Q2 results and cutting FY25 sales guidance [9]

Company Performance - Gevo, Inc. reported quarterly earnings of $0.01 per share, surpassing the Zacks Consensus Estimate of a loss of $0.06 per share, and improved from a loss of $0.09 per share a year ago, representing an earnings surprise of +116.67% [1] - The company posted revenues of $43.41 million for the quarter ended June 2025, which missed the Zacks Consensus Estimate by 0.62%, but showed significant growth from year-ago revenues of $5.26 million [2] - Over the last four quarters, Gevo has exceeded consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Outlook - Gevo shares have declined approximately 43.5% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is -$0.05 on revenues of $45.03 million, and for the current fiscal year, it is -$0.26 on revenues of $163.37 million [7] Industry Context - The Alternative Energy - Other industry, to which Gevo belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Gevo's stock performance [5][6]

Core Viewpoint - Gevo, Inc. held its second quarter 2025 earnings conference call to discuss financial results and future projects, emphasizing the company's focus on alcohol-to-jet projects and carbon credit sales [1][4]. Financial Results - The company released its second quarter 2025 results, which are detailed in a press release available on its website [4]. - Key executives present during the call included the CEO, CFO, President, and Chief Business Officer, indicating a comprehensive leadership approach to discussing financial performance [3]. Future Projects - Gevo is focused on the development, engineering, financing, and construction of its alcohol-to-jet projects, which are expected to play a significant role in the company's growth strategy [4]. - The company also highlighted its future carbon credit sales as a critical component of its business model [4].

Financial Data and Key Metrics Changes - The company ended the quarter with $127 million in cash, cash equivalents, and restricted cash [12] - Combined operating revenue, interest, and investment income for the second quarter was $44.7 million, with income from operations at $5.8 million and non-GAAP adjusted EBITDA at $17.3 million [12][14] - For the first six months of 2025, net income grew by $20 million and non-GAAP adjusted EBITDA increased by $32 million compared to the same period last year [14] Business Line Data and Key Metrics Changes - Gevo North Dakota generated income from operations of $17.1 million and non-GAAP adjusted EBITDA of $24.2 million [13] - Gevo RNG generated income from operations of $1.5 million and non-GAAP adjusted EBITDA of $2.6 million [13] - The company sold $22 million worth of clean fuel production credits in the second quarter, contributing to the financial results [14][20] Market Data and Key Metrics Changes - U.S. jet fuel demand is projected to increase by 2.3 billion gallons per year over the next decade, while new refinery construction is not occurring [8][28] - The marketplace for carbon dioxide removal credits has exceeded $10 billion in recent years, reflecting nearly 40 million tons of CO2 removals [19] Company Strategy and Development Direction - The company is focused on deploying renewable resource-based jet fuel plants while improving profitability through existing operations [6][11] - The strategy includes leveraging current assets to enhance carbon credit sales and tax credit sales [11] - The company is translating its ATJ 60 plant design to a more cost-effective ATJ 30 design for deployment at the North Dakota site [9][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's progress and the potential for significant growth in the renewable jet fuel market [6][28] - The company aims to achieve a low carbon footprint while maintaining competitive production costs [8][11] - Management highlighted the importance of carbon credit sales as a co-product to enhance overall profitability [11][18] Other Important Information - The company has developed a software platform, Verity, for traceability and compliance reporting in the agriculture and renewable fuels sector [21][22] - The GIVO North Dakota facility has a total estimated sequestration capacity of up to 1 million metric tons of CO2 per year [19] Q&A Session Summary Question: What is holding back the monetization of biogas credits? - Management explained that the monetization of clean fuel production tax credits for ethanol has been successful, and they expect similar success for biogas credits in the future [34][36] Question: Can we expect a similar cadence for the RNG business? - Management confirmed that the transaction structure for monetizing tax credits for the RNG facility is similar to that of the ethanol facility [37] Question: Is the $10 million benefit per quarter from CFPC a base case? - Management indicated that the $10 million figure is conservative, and they expect to exceed this amount based on production levels [40][42] Question: How will the company achieve $30 million in CDR sales? - Management stated that growth in CDR sales will come from increased capacity utilization and market development [43][45] Question: How does the 45Z tax credit affect capital allocation in North Dakota? - Management noted that while the 45Z tax credit is beneficial, it does not significantly influence their capital allocation strategy for ATJ projects [58][60] Question: How many customers does Verity currently have? - Management reported that Verity has agreements with five ethanol customers and expects significant growth in this area [66][68] Question: What is the market opportunity for accommodating third-party volumes in CCS? - Management highlighted the potential for third-party CO2 volumes and the flexibility of their North Dakota site to accommodate additional capacity [90][92]