I grant Green Plains (NASDAQ: GPRE ) a buy rating. I am of the opinion that the carbon capture initiative program will strengthen the company's financial position. The company anticipates that only the Advantage Nebraska projectDaniel Mellado is an economist from Carabobo University with a Master's Degree in Statistics from Simon Bolivar University, both obtained in Venezuela.Daniel worked analyzing the agricultural commodity market and the financial investment portfolio for an agribusiness group. Then, he ...

I grant Green Plains (NASDAQ: GPRE ) a buy rating. I am of the opinion that the carbon capture initiative program will strengthen the company's financial position. The company anticipates that only the Advantage NebraskaDaniel Mellado is an economist from Carabobo University with a Master's Degree in Statistics from Simon Bolivar University, both obtained in Venezuela.Daniel worked analyzing the agricultural commodity market and the financial investment portfolio for an agribusiness group. Then, he managed ...

Core Insights - The discussion highlights the philosophical mindset of the investment group, emphasizing the importance of resilience and conviction in navigating the current market landscape [5][8][96] - The investment landscape has been challenging, with significant drawdowns and volatility, particularly in small-cap and micro-cap stocks [11][16][39] - The focus is on specific companies, such as Green Plains and Cineverse, detailing their performance, challenges, and potential for recovery [18][45] Group 1: Market Overview - The market has experienced a 20% drawdown in April, one of the fastest corrections in history, followed by a strong recovery [11][37] - The current market is characterized by a focus on large-cap tech stocks, leading to a disparity in performance between small caps and larger companies [14][76] - The investment group operates primarily in the micro-cap and small-cap space, which has been more volatile and challenging compared to larger stocks [14][39] Group 2: Company Analysis - Green Plains - Green Plains is a significant ethanol producer with nine plants and a capacity of 800 million gallons [18] - The company faced challenges due to high inventories and a negative EBITDA quarter, leading to a substantial stock price drop [25][26] - Despite initial setbacks, the company has potential for recovery due to favorable legislation and management's proactive strategies [34][36] Group 3: Company Analysis - Cineverse - Cineverse has a strong niche in the horror film market, with successful titles like "Terrifier 3" contributing to revenue growth [46][54] - The company has faced stock price volatility due to mixed performance in recent releases, but has upcoming films that are expected to perform well [58][61] - Cineverse's business model includes acquiring intellectual property and leveraging marketing channels, which positions it for potential growth [50][63] Group 4: Economic and Policy Context - The Federal Reserve's recent rate cuts are seen as a cautious approach, with uncertainty about the broader economic impact [78][80] - Tariffs and their effects on small-cap companies are a concern, but the investment group does not believe their specific holdings are significantly impacted [81][84] - The discussion touches on the broader economic challenges facing younger generations, including job market difficulties and high living costs [87][88]

Company Insights - Green Plains (NASDAQ: GPRE) is a significant ethanol producer with nine plants and a capacity of 800 million gallons. The company has a carbon capture program that is expected to unlock substantial value through the Inflation Reduction Act (IRA) until 2027, despite facing challenges due to high inventories and a fragmented industry [18][19][21][22]. - Cineverse (NASDAQ: CNVS) has a strong business model focused on horror films, owning platforms like Bloody and Disgusting. The company experienced a significant stock price increase, reaching $7.40 in July, but faced a downturn due to mixed performance in recent film releases [12][46][47][60][72]. Market Trends - The market has shown volatility, with a notable 20% correction in April, one of the fastest in history. However, it rebounded due to tactical trading setups and depressed valuations [11][37]. - The current investment landscape is characterized by a focus on AI and significant capital expenditure (CapEx) cycles, leading to substantial revenue growth for companies directly involved in this sector [13][14]. Investment Strategy - The investment approach emphasizes identifying mispriced opportunities in small and micro-cap stocks, particularly those with market caps under $500 million. This strategy involves thorough research and engagement with management teams to understand the business dynamics [14][41][73]. - The importance of resilience and conviction in investment decisions is highlighted, especially in the context of market fluctuations and the need for a long-term perspective [74][96].

Group 1 - Green Plains Renewable Energy (GPRE) shares increased by 7% to $10.28, with a notable trading volume, and have gained 26.1% over the past four weeks [1][2] - The recent rally is attributed to an agreement with Freepoint Commodities to monetize tax credits under 45Z, allowing the sale of Clean Fuel Production Credits from three Nebraska facilities [2] - The company is expected to report a quarterly loss of $0.13 per share, a year-over-year decline of 137.1%, with revenues projected at $548.25 million, down 16.8% from the previous year [3] Group 2 - The consensus EPS estimate for Green Plains has been revised 11.6% higher in the last 30 days, indicating a positive trend that may lead to price appreciation [4] - Green Plains holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [5] - In the same industry, PPG Industries has a consensus EPS estimate of $2.12, unchanged over the past month, with a year-over-year change of -0.5% and also holds a Zacks Rank of 3 (Hold) [6]

OMAHA, Neb.--(BUSINESS WIRE)--Green Plains Inc. (NASDAQ:GPRE) today announced that it has entered into an agreement with an affiliate of Freepoint Commodities LLC (Freepoint) to sell Clean Fuel Production Credits, also known as 45Z tax credits, generated in 2025 under the Inflation Reduction Act. The initial credits will be generated from low-carbon intensity ethanol production at Green Plains' three Nebraska facilities. A portion of these credits are being generated prior to the expected launc. ...

Group 1 - The U.S. biofuel companies' stock prices have recently plummeted due to market concerns that the Trump administration's policies may not fully offset the impact of the "refinery renewable fuel blending obligation exemptions" [1] - The Trump administration is considering a plan that would require large refineries to take on "half or less of the blending obligations originally allocated to exempt small refineries" [1] - A bill proposed by Republican Senator Mike Lee aims to prevent the EPA from mandating large refineries to fill this obligation gap, which could weaken short-term demand for crop-based and waste-based biofuels [1] Group 2 - Bunge Global SA and Archer-Daniels-Midland Co. experienced their largest single-day stock price drop since April, while Valero Energy Corp. and Green Plains Inc. saw stock declines of up to 5% [2] - The trading price of Renewable Identification Numbers (RINs), a key price indicator in the biofuel sector, has fallen to its lowest level since June [2]

Group 1 - Green Plains is transitioning from a cash-burning operation to one that generates positive free cash flow through operational improvements [1] - The company is focused on realizing additional efficiencies in its ethanol production process [1] Group 2 - The article emphasizes the long-term potential of Green Plains as an investment opportunity in the ethanol sector [1]

Core Insights - Green Plains Inc. (GPRE) has agreed to sell its Rives, TN-based ethanol plant to POET for $190 million in cash, which includes $20 million of working capital to be adjusted at transaction closing, reflecting the company's commitment to enhance shareholder value and strengthen its balance sheet [1][8] - The transaction is expected to be completed in the third quarter of this year, pending closing conditions and regulatory approvals [2] - A strategic review conducted by the company concluded that continuing with its current strategy under existing leadership is the best way to deliver shareholder value [3][8] Financial Performance - GPRE's stock has experienced a decline of 21.7% over the past year, contrasting with a 2.1% decline in the industry [5] - The proceeds from the sale will be utilized to repay junior mezzanine debt due in 2026, thereby improving the company's financial position [1][8]

[Commonly Used Defined Terms](index=3&type=section&id=Commonly%20Used%20Defined%20Terms) This section provides definitions for key terms and abbreviations used throughout the financial report [PART I – FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This part presents the company's comprehensive financial data, including statements, notes, and management's analysis of performance and condition [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements of Green Plains Inc. and its subsidiaries, including balance sheets, statements of operations, comprehensive loss, and cash flows, along with detailed notes explaining the basis of presentation, significant accounting policies, and specific financial items [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and equity at specific points in time | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | | :--------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | | Cash and cash equivalents | $108,624 | $173,041 | $(64,417) | | Total current assets | $436,206 | $569,032 | $(132,826) | | Total assets | $1,612,516 | $1,782,174 | $(169,658) | | Total current liabilities | $296,996 | $385,687 | $(88,691) | | Total liabilities | $872,084 | $907,637 | $(35,553) | | Total stockholders' equity | $740,432 | $874,537 | $(134,105) | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) This statement details the company's revenues, expenses, and net loss over specific reporting periods | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :----------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Revenues | $552,829 | $618,825 | $1,154,344 | $1,216,039 | | Total costs and expenses | $581,192 | $636,536 | $1,244,967 | $1,278,639 | | Operating loss | $(28,363) | $(17,711) | $(90,623) | $(62,600) | | Net loss attributable to Green Plains | $(72,238) | $(24,350) | $(145,144) | $(75,762) | | Net loss attributable to Green Plains - basic and diluted (per share) | $(1.09) | $(0.38) | $(2.22) | $(1.19) | [Consolidated Statements of Comprehensive Loss](index=9&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) This statement presents the net loss and other comprehensive income or loss components, reflecting total changes in equity from non-owner sources | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net loss | $(72,227) | $(24,038) | $(144,868) | $(75,160) | | Total other comprehensive income (loss), net of tax | $(5,444) | $1,091 | $(7,714) | $353 | | Comprehensive loss attributable to Green Plains | $(77,682) | $(23,259) | $(152,858) | $(75,409) | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement categorizes cash inflows and outflows from operating, investing, and financing activities over specific periods | Cash Flow Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :--------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net cash provided by (used in) operating activities | $3,754 | $(65,717) |\n| Net cash used in investing activities | $(32,341) | $(55,507) |\n| Net cash used in financing activities | $(28,088) | $(32,444) |\n| Net change in cash and cash equivalents, and restricted cash | $(56,675) | $(153,668) |\n| Cash and cash equivalents, and restricted cash, end of period | $152,720 | $225,094 | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide essential details and explanations supporting the consolidated financial statements, covering accounting policies, business segments, recent transactions, fair value measurements, debt, equity, and other financial commitments [1. BASIS OF PRESENTATION, DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=13&type=section&id=1.%20BASIS%20OF%20PRESENTATION%2C%20DESCRIPTION%20OF%20BUSINESS%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the foundational principles, business operations, and key accounting policies applied in preparing the financial statements - Green Plains Inc. operates in two segments: (1) ethanol production (ethanol, distillers grains, Ultra-High Protein, renewable corn oil) and (2) agribusiness and energy services (grain handling, commodity marketing, merchant trading)[39](index=39&type=chunk) - The company completed the merger with Green Plains Partners on January 9, 2024, acquiring all publicly held common units not already owned[33](index=33&type=chunk) - Management uses estimates and assumptions in preparing financial statements, particularly for derivative financial instruments and income taxes, which could lead to actual results differing from estimates[38](index=38&type=chunk) [2. REVENUE](index=16&type=section&id=2.%20REVENUE) This note details the company's revenue recognition policies and disaggregates revenue by segment and accounting standard Total Revenues by Segment and Accounting Standard (in thousands) | Segment / Standard | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | **Ethanol Production** | | | | | | ASC 606 | $62,964 | $39,728 | $93,911 | $80,088 | | ASC 815 | $464,189 | $485,715 | $931,014 | $951,014 | | **Agribusiness & Energy Services** | | | | | | ASC 606 | $3,485 | $2,649 | $8,766 | $5,150 | | ASC 815 | $28,046 | $98,300 | $132,594 | $194,795 | | **Total Revenues** | **$552,829** | **$618,825** | **$1,154,344** | **$1,216,039** | - Revenues from Customer A represented **45%** and **21%** of total revenues for the three and six months ended June 30, 2025, respectively, within the ethanol production segment[63](index=63&type=chunk) [3. MERGER AND DISPOSITIONS](index=19&type=section&id=3.%20MERGER%20AND%20DISPOSITIONS) This note describes significant corporate transactions, including recent mergers and asset sales, and their financial impacts - On May 31, 2025, the company sold its **75%** interest in Proventus LLC for **$0.4 million**, recording a pretax loss of **$4.0 million**[64](index=64&type=chunk) - On June 30, 2025, the company sold its **50%** investment in GP Turnkey Tharaldson LLC for **$25.0 million**, resulting in a preliminary pretax loss of **$27.0 million**[65](index=65&type=chunk) - On January 9, 2024, the company completed the merger with Green Plains Partners, issuing approximately **4.7 million shares** of common stock and **$29.2 million** in cash for publicly held common units, accounted for as an equity transaction[66](index=66&type=chunk)[68](index=68&type=chunk) [4. FAIR VALUE DISCLOSURES](index=19&type=section&id=4.%20FAIR%20VALUE%20DISCLOSURES) This note provides information on the fair value measurements of financial instruments, categorized by valuation inputs Fair Value Measurements at June 30, 2025 (in thousands) | Category | Level 1 | Level 2 | Level 3 | Total | | :------- | :------ | :------ | :------ | :---- | | Assets | $152,720 | $25,058 | $5,500 | $183,278 | | Liabilities | $— | $30,377 | $— | $30,377 | - The fair value of the company's debt was approximately **$457.8 million** at June 30, 2025, compared to a book value of **$508.2 million**, estimated using Level 2 inputs[81](index=81&type=chunk) [5. SEGMENT INFORMATION](index=21&type=section&id=5.%20SEGMENT%20INFORMATION) This note presents financial data disaggregated by the company's operating segments, including revenues and operating income Segment Revenues (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Ethanol production | $527,153 | $525,443 | $1,024,925 | $1,031,102 | | Agribusiness and energy services | $31,531 | $100,949 | $141,360 | $199,945 | | Intersegment eliminations | $(5,855) | $(7,567) | $(11,941) | $(15,008) | | **Total Revenues** | **$552,829** | **$618,825** | **$1,154,344** | **$1,216,039** | Segment Operating Income (Loss) (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Ethanol production | $(12,218) | $(2,213) | $(51,768) | $(35,866) | | Agribusiness and energy services | $849 | $2,166 | $3,282 | $8,170 | | Corporate activities | $(16,994) | $(17,664) | $(42,137) | $(34,904) | | **Total Operating Loss** | **$(28,363)** | **$(17,711)** | **$(90,623)** | **$(62,600)** | Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(72,227) | $(24,038) | $(144,868) | $(75,160) | | EBITDA | $(28,883) | $4,767 | $(70,389) | $(16,753) | | Restructuring costs | $2,520 | $— | $19,106 | $— | | Loss on sale of assets | $4,044 | $— | $4,044 | $— | | Impairment of assets held for sale | $10,724 | $— | $10,724 | $— | | Loss on sale of equity method investment | $26,987 | $— | $26,987 | $— | | **Adjusted EBITDA** | **$16,442** | **$5,038** | **$(7,700)** | **$(16,437)** | [6. INVENTORIES](index=25&type=section&id=6.%20INVENTORIES) This note details the composition of inventories and any related valuation adjustments Inventory Components (in thousands) | Component | June 30, 2025 | December 31, 2024 | | :------------------ | :------------ | :---------------- | | Finished goods | $33,069 | $72,863 | | Commodities held for sale | $18,979 | $48,500 | | Raw materials | $32,987 | $37,334 | | Work-in-process | $11,819 | $13,569 | | Supplies and parts | $59,557 | $55,178 | | **Total Inventories** | **$156,411** | **$227,444** | - A **$2.3 million** inventory lower of cost or net realizable value adjustment was recorded for finished goods in the ethanol production segment for the three and six months ended June 30, 2025[97](index=97&type=chunk) [7. DERIVATIVE FINANCIAL INSTRUMENTS](index=25&type=section&id=7.%20DERIVATIVE%20FINANCIAL%20INSTRUMENTS) This note describes the company's use of derivative instruments for risk management and their fair value and notional volumes - At June 30, 2025, the company reported **$6.7 million** in net unrealized losses on derivatives in accumulated other comprehensive loss, expected to be reclassified to operating loss over the next **12 months**[98](index=98&type=chunk) Fair Values of Derivative Instruments (in thousands) | Category | June 30, 2025 (Asset Fair Value) | December 31, 2024 (Asset Fair Value) | June 30, 2025 (Liability Fair Value) | December 31, 2024 (Liability Fair Value) | | :------- | :------------------------------- | :----------------------------------- | :----------------------------------- | :----------------------------------- | | Forwards | $6,079 | $10,154 | $10,399 | $4,791 | | Other liabilities | $— | $— | $38 | $15 | | **Total** | **$6,079** | **$10,154** | **$10,437** | **$4,806** | Notional Volume of Open Commodity Derivative Positions as of June 30, 2025 (in thousands) | Derivative Instrument | Net Long & (Short) (Exchange-Traded) | Long (Non-Exchange-Traded) | (Short) (Non-Exchange-Traded) | Unit of Measure | Commodity | | :-------------------- | :----------------------------------- | :------------------------- | :---------------------------- | :-------------- | :-------- | | Futures | (21,820) | | | Bushels | Corn | | Futures | (35,700) | | | Gallons | Ethanol | | Futures | (3,645) | | | MmBTU | Natural Gas | | Forwards | | 27,363 | — | Bushels | Corn | | Forwards | | 9,135 | (204,355) | Gallons | Ethanol | | Forwards | | 128 | (225) | Tons | Distillers Grains | | Forwards | | — | (48,266) | Pounds | Renewable Corn Oil | | Forwards | | 9,372 | (146) | MmBTU | Natural Gas | [8. DEBT](index=29&type=section&id=8.%20DEBT) This note provides detailed information on the company's various debt instruments, including terms, maturities, and compliance with covenants Long-Term Debt Components (in thousands) | Debt Type | June 30, 2025 | December 31, 2024 | | :-------------------------------------- | :------------ | :---------------- | | 2.25% convertible notes due 2027 | $230,000 | $230,000 | | Junior secured mezzanine notes due 2026 | $127,500 | $125,000 | | Term loan due 2035 | $70,875 | $71,625 | | Other | $10,811 | $11,163 | | **Total book value of long-term debt** | **$439,186** | **$437,788** | Short-Term Notes Payable and Other Borrowings (in thousands) | Borrowing Type | June 30, 2025 | December 31, 2024 | | :------------------------------------------- | :------------ | :---------------- | | $350.0 million revolver | $75,000 | $133,500 | | $20.0 million hedge line | $5,064 | $7,329 | | **Total short-term notes payable and other borrowings** | **$80,064** | **$140,829** | - The Junior Notes were amended on May 7, 2025, extending maturity to May 15, 2026, with a **$2.5 million** amendment fee, and further amended on August 10, 2025, extending maturity to September 15, 2026, with an additional **2.5% fee** and increased interest rates[122](index=122&type=chunk)[123](index=123&type=chunk)[167](index=167&type=chunk) - The company was in compliance with its debt covenants as of June 30, 2025[134](index=134&type=chunk) [9. STOCK-BASED COMPENSATION](index=33&type=section&id=9.%20STOCK-BASED%20COMPENSATION) This note outlines the company's stock-based compensation plans, including activity for non-vested awards and associated costs Non-Vested Restricted Stock Awards and Deferred Stock Units Activity (Six Months Ended June 30, 2025) | Activity | Non-Vested Shares and Deferred Stock Units | | :--------------------------- | :----------------------------------------- | | Non-Vested at December 31, 2024 | 735,513 | | Granted | 1,015,626 | | Forfeited | (106,094) | | Vested | (443,385) | | Non-Vested at June 30, 2025 | 1,201,660 | - Compensation costs for stock-based payment plans increased to **$11.1 million** for the six months ended June 30, 2025, from **$6.6 million** in the prior year, primarily due to accelerated vesting for the former CEO[142](index=142&type=chunk) - As of June 30, 2025, **$11.6 million** of unrecognized compensation costs remain, expected to be recognized over approximately **2.3 years**[142](index=142&type=chunk) [10. EARNINGS PER SHARE](index=35&type=section&id=10.%20EARNINGS%20PER%20SHARE) This note presents the calculation of basic and diluted earnings per share, reflecting the company's profitability on a per-share basis Earnings Per Share (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss attributable to Green Plains | $(72,238) | $(24,350) | $(145,144) | $(75,762) | | Weighted average shares outstanding - basic and diluted | 66,491 | 63,933 | 65,287 | 63,637 | | EPS - basic and diluted | $(1.09) | $(0.38) | $(2.22) | $(1.19) | [11. STOCKHOLDERS' EQUITY](index=35&type=section&id=11.%20STOCKHOLDERS'%20EQUITY) This note details changes in the components of stockholders' equity, including stock issuances and other equity transactions - On May 7, 2025, the company issued **1,504,140 stock warrants** at an exercise price of **$0.01 per share** with a **ten-year** exercise period, in connection with a revolving credit facility[145](index=145&type=chunk)[146](index=146&type=chunk) - Warrants previously issued in connection with Junior Notes were repriced from **$22.00 to $0.01** and their maturity extended to December 31, 2029, on May 7, 2025, with the increase in fair value recorded in additional paid-in capital[147](index=147&type=chunk) - The Green Plains Partners Merger on January 9, 2024, resulted in the issuance of approximately **4.7 million shares** of common stock and a **$133.8 million** reduction in non-controlling interest, capitalized within additional paid-in capital[150](index=150&type=chunk) [12. INCOME TAXES](index=37&type=section&id=12.%20INCOME%20TAXES) This note provides information on the company's income tax expense or benefit, deferred tax assets and liabilities, and the impact of tax legislation - The company recorded an income tax expense of **$2.3 million** for the three months ended June 30, 2025, compared to a benefit of **$0.3 million** in 2024, primarily due to an increased valuation allowance against deferred tax assets related to derivatives[158](index=158&type=chunk) - The Inflation Reduction Act (IRA) and the One Big Beautiful Bill Act (OBBB) are expected to benefit the company through expanded clean energy tax credits and extended provisions, though the full impact is not yet estimable[155](index=155&type=chunk)[157](index=157&type=chunk) [13. COMMITMENTS AND CONTINGENCIES](index=38&type=section&id=13.%20COMMITMENTS%20AND%20CONTINGENCIES) This note discloses the company's material contractual obligations, future purchase commitments, and potential liabilities from legal matters Aggregate Minimum Lease Payments (in thousands) | Year Ending December 31, | Amount | | :----------------------- | :----- | | 2025 | $14,184 | | 2026 | $22,310 | | 2027 | $17,364 | | 2028 | $8,052 | | 2029 | $4,378 | | Thereafter | $5,610 | | **Total** | **$71,898** | - As of June 30, 2025, the company had contracted future purchases of grain, distillers grains, and natural gas valued at approximately **$178.1 million**, and storage/transportation commitments of **$33.9 million**[163](index=163&type=chunk) - The company has incurred **$82.0 million** in accumulated construction costs for carbon capture and sequestration projects at three Nebraska plants, with an equal and offsetting liability, expected to be completed in 2025[165](index=165&type=chunk) [14. SUBSEQUENT EVENT](index=41&type=section&id=14.%20SUBSEQUENT%20EVENT) This note reports significant events that occurred after the balance sheet date but before the financial statements were issued - On August 10, 2025, the Junior Notes indenture was amended, extending the maturity to September 15, 2026, adding a **2.5% amendment fee**, increasing interest rates, and securing the notes with additional assets[167](index=167&type=chunk) - As part of the August 10, 2025 amendment, the company issued **3,250,000 stock warrants** to BlackRock at a strike price of **$0.01 per share** with a **ten-year** exercise period[167](index=167&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, highlighting key business activities, recent developments, operational performance, and liquidity, along with an analysis of market dynamics and regulatory impacts [General](index=42&type=section&id=General) This section provides an overview of the company's business model, operating segments, and strategic initiatives, including its transition to value-added agricultural technology - Green Plains is transitioning from a commodity-processing business to a value-added agricultural technology company, focusing on lower-carbon, high-value ingredients[173](index=173&type=chunk) - The company's two operating segments are Ethanol Production (producing ethanol, distillers grains, Ultra-High Protein, renewable corn oil) and Agribusiness and Energy Services (grain procurement, commodity marketing, and trading)[174](index=174&type=chunk)[175](index=175&type=chunk) - Green Plains is deploying carbon capture technology at several facilities to reduce the Carbon Intensity (CI) of its biofuels, with projects anticipated to be completed in Nebraska by **Q4 2025**[175](index=175&type=chunk) - The company is involved in Sustainable Aviation Fuel (SAF) development through a joint venture, Blue Blade Energy, and has commercialized FQT MSC™ technology for Ultra-High Protein (Sequence™) and CST™ for dextrose syrups[176](index=176&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk) [Recent Developments](index=44&type=section&id=Recent%20Developments) This section highlights significant events and strategic actions undertaken by the company, including debt amendments, asset sales, and operational adjustments - The Junior Notes were amended on August 10, 2025, extending maturity to September 15, 2026, with a **2.5% amendment fee** and increased interest rates, and new warrants were issued to BlackRock[182](index=182&type=chunk) - The company sold its **50%** investment in GP Turnkey Tharaldson LLC for **$25.0 million** on June 30, 2025, resulting in a **$27.0 million** pretax loss[184](index=184&type=chunk) - A corporate reorganization and cost reduction initiative launched in early 2025 is expected to yield approximately **$50 million** in annual financial improvement, leading to **$19.1 million** in restructuring costs for the six months ended June 30, 2025[192](index=192&type=chunk) - The company idled its Clean Sugar Technology (CST™) facility in Shenandoah, Iowa, and its **119 million gallon** ethanol plant in Fairmont, Minnesota, to optimize product mix and address margin pressures[194](index=194&type=chunk)[196](index=196&type=chunk) [Results of Operations](index=46&type=section&id=Results%20of%20Operations) This section analyzes the company's operational performance, including ethanol production, market dynamics, and the impact of regulatory changes - Average ethanol production utilization rate was **86.1%** (**99.2%** excluding Fairmont) for Q2 2025, producing **193.6 million gallons** of ethanol[197](index=197&type=chunk) U.S. Ethanol Supply and Demand (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------- | :------ | :------ | :----- | | Domestic ethanol production (million barrels/day) | 1.05 | 1.02 | +2.9% | | Refiner and blender input volume (thousand barrels/day) | 910 | 915 | -0.5% | | Gasoline demand (million barrels/day) | 8.9 | 8.9 | 0% | | U.S. domestic ethanol ending stocks (million barrels) | 24.1 | 23.6 | +2.1% | - Domestic ethanol exports through May 31, 2025, were approximately **890 million gallons**, up from **817 million gallons** for the same period in 2024, with Canada being the largest destination[199](index=199&type=chunk) - The Inflation Reduction Act (IRA) and the One Big Beautiful Bill Act (OBBB) introduce significant changes to clean energy tax credits, including the 45Z Clean Fuel Production Credit and 45Q carbon capture credit, which could impact the company's business[206](index=206&type=chunk)[207](index=207&type=chunk) - Recent U.S. Supreme Court decisions redefining federal agency power and overturning 'Chevron deference' could impact regulatory rules affecting the company's business[217](index=217&type=chunk) [Segment Results](index=49&type=section&id=Segment%20Results) This section provides a detailed breakdown of financial performance for each operating segment, including revenues and operating income Segment Revenues (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Ethanol production | $527,153 | $525,443 | $1,024,925 | $1,031,102 | | Agribusiness and energy services | $31,531 | $100,949 | $141,360 | $199,945 | | Intersegment eliminations | $(5,855) | $(7,567) | $(11,941) | $(15,008) | | **Total Revenues** | **$552,829** | **$618,825** | **$1,154,344** | **$1,216,039** | Segment Operating Income (Loss) (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Ethanol production | $(12,218) | $(2,213) | $(51,768) | $(35,866) | | Agribusiness and energy services | $849 | $2,166 | $3,282 | $8,170 | | Corporate activities | $(16,994) | $(17,664) | $(42,137) | $(34,904) | | **Total Operating Loss** | **$(28,363)** | **$(17,711)** | **$(90,623)** | **$(62,600)** | Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(72,227) | $(24,038) | $(144,868) | $(75,160) | | EBITDA | $(28,883) | $4,767 | $(70,389) | $(16,753) | | Restructuring costs | $2,520 | $— | $19,106 | $— | | Loss on sale of assets | $4,044 | $— | $4,044 | $— | | Impairment of assets held for sale | $10,724 | $— | $10,724 | $— | | Loss on sale of equity method investment | $26,987 | $— | $26,987 | $— | | **Adjusted EBITDA** | **$16,442** | **$5,038** | **$(7,700)** | **$(16,437)** | [Three Months Ended June 30, 2025 Compared with the Three Months Ended June 30, 2024](index=52&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20Compared%20with%20the%20Three%20Months%20Ended%20June%2030%2C%202024) This section provides a comparative analysis of the company's financial performance for the three-month periods, highlighting key drivers of change - Consolidated revenues decreased by **$66.0 million**, primarily due to ceasing a third-party ethanol marketing agreement[235](index=235&type=chunk) - Net loss increased by **$48.2 million**, driven by a **$28.3 million** loss on equity method investees, **$10.7 million** impairment of assets held for sale, and a **$4.0 million** loss on asset sales[236](index=236&type=chunk) - Adjusted EBITDA increased by **$11.4 million**, attributed to a change in operating strategy and a one-time sale of accumulated RINs, partially offset by lower margins in the ethanol production segment[236](index=236&type=chunk) Ethanol Production Segment Key Operating Data (Three Months Ended June 30) | Metric | 2025 | 2024 | % Variance | | :-------------------------- | :-------- | :-------- | :--------- | | Ethanol (gallons) | 193,571 | 208,483 | (7.2)% | | Distillers grains (equivalent dried tons) | 413 | 463 | (10.8) | | Renewable corn oil (pounds) | 65,231 | 73,630 | (11.4) | | Corn consumed (bushels) | 65,312 | 71,819 | (9.1) | [Six Months Ended June 30, 2025 Compared with the Six Months Ended June 30, 2024](index=54&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Compared%20with%20the%20Six%20Months%20Ended%20June%2030%2C%202024) This section provides a comparative analysis of the company's financial performance for the six-month periods, detailing revenue and loss drivers - Consolidated revenues decreased by **$61.7 million**, primarily due to the termination of a third-party ethanol marketing agreement[244](index=244&type=chunk) - Net loss increased by **$69.7 million**, driven by a **$29.1 million** loss on equity method investees, **$10.7 million** impairment of assets held for sale, **$4.0 million** loss on asset sales, and **$19.1 million** in restructuring costs[245](index=245&type=chunk) - Adjusted EBITDA increased by **$8.7 million**, mainly due to margins from a one-time sale of accumulated RINs, offset by lower margins in agribusiness and energy services and ethanol production segments[245](index=245&type=chunk) Ethanol Production Segment Key Operating Data (Six Months Ended June 30) | Metric | 2025 | 2024 | % Variance | | :-------------------------- | :-------- | :-------- | :--------- | | Ethanol (gallons) | 388,899 | 416,387 | (6.6)% | | Distillers grains (equivalent dried tons) | 830 | 932 | (10.9) | | Renewable corn oil (pounds) | 129,494 | 140,351 | (7.7) | | Corn consumed (bushels) | 131,576 | 143,093 | (8.0) | [Liquidity and Capital Resources](index=55&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to meet its short-term and long-term financial obligations, including cash position and debt maturities Liquidity Position (in millions) | Metric | June 30, 2025 | | :----------------------------------- | :------------ | | Cash and cash equivalents | $108.6 | | Restricted cash | $44.1 | | Available committed revolving credit | $258.5 | | Available line of credit (Ancora) | $30.0 | | Total corporate liquidity | $93.3 | - The company has **$130.7 million** in Junior Notes due September 15, 2026, and **$230.0 million** in convertible senior notes due March 15, 2027, requiring substantial additional liquidity for repayment[256](index=256&type=chunk) - Net cash provided by operating activities was **$3.8 million** for the six months ended June 30, 2025, an improvement from **$65.7 million** used in the prior year, primarily due to lower receivable and inventory balances[257](index=257&type=chunk) - Capital expenditures were **$27.9 million** for the six months ended June 30, 2025, with an additional **$10.0 million** expected for the remainder of 2025, excluding **$130 million** for carbon capture projects[259](index=259&type=chunk) [Effects of Inflation](index=58&type=section&id=Effects%20of%20Inflation) This section discusses the potential impact of inflationary pressures on the company's operating costs and financial performance - The company has experienced inflationary impacts on labor, wages, components, equipment, and other inputs, which could escalate and materially adversely affect financial performance due to fixed-price arrangements with customers[276](index=276&type=chunk) [Contractual Obligations and Commitments](index=58&type=section&id=Contractual%20Obligations%20and%20Commitments) This section outlines the company's significant future financial obligations arising from contracts and agreements - As of June 30, 2025, material future obligations include **$71.9 million** in minimum lease payments, **$178.1 million** for future commodity purchases, **$33.9 million** for storage and transportation, and **$82.0 million** for carbon capture equipment construction[277](index=277&type=chunk) [Critical Accounting Policies and Estimates](index=58&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section identifies the accounting policies that require significant judgment and estimation, which could materially affect financial results - Critical accounting policies, particularly those for derivative financial instruments and income taxes, involve significant judgments, assumptions, and estimates that can materially impact financial statements[278](index=278&type=chunk) [Off-Balance Sheet Arrangements](index=58&type=section&id=Off-Balance%20Sheet%20Arrangements) This section discloses any material transactions, agreements, or other contractual arrangements not recognized on the balance sheet - The company does not have any off-balance sheet arrangements[279](index=279&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to market risks, primarily interest rate and commodity price risks, and the strategies employed to manage these exposures through financial instruments and hedging activities - The company is exposed to interest rate risk on **$80.1 million** of variable-rate debt; a **10% increase** in interest rates would affect interest cost by approximately **$0.8 million** per year[281](index=281&type=chunk) - Commodity price risk is significant for ethanol, corn, distillers grains, Ultra-High Protein, renewable corn oil, and natural gas, with prices influenced by supply, demand, weather, and government policies[283](index=283&type=chunk)[284](index=284&type=chunk) - The company uses forward fixed-price physical contracts and derivative financial instruments (futures and options) to reduce market risk and lock in favorable operating margins[285](index=285&type=chunk) Estimated Net Income Effect of a Hypothetical 10% Change in Commodity Price (Next 12 Months, in thousands) | Commodity | Estimated Total Volume Requirements | Unit of Measure | Net Income Effect of Approximate 10% Change in Price | | :---------------- | :---------------------------------- | :-------------- | :------------------------------------------------- | | Ethanol | 784,000 | Gallons | $93,389 | | Corn | 264,800 | Bushels | $84,370 | | Distillers grains | 1,850 | Tons | $19,812 | | Renewable corn oil | 258,100 | Pounds | $10,803 | | Natural gas | 22,600 | MmBTU | $4,574 | [Item 4. Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated the effectiveness of the company's disclosure controls and procedures, concluding they were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the period - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[293](index=293&type=chunk) - There were no material changes in internal control over financial reporting during the period covered by the report[294](index=294&type=chunk) [PART II – OTHER INFORMATION](index=61&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This part provides additional information not covered in the financial statements, including legal matters, risk factors, and equity security disclosures [Item 1. Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course litigation but does not anticipate any material adverse effects on its financial position, results of operations, or cash flows - The company is currently involved in litigation arising in the ordinary course of business[297](index=297&type=chunk) - Management does not believe any pending litigation will have a material adverse effect on its financial position, results of operations, or cash flows[297](index=297&type=chunk) [Item 1A. Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) This section updates and supplements previously disclosed risk factors, emphasizing credit risk, potential impacts of international trade agreements, commodity price volatility, risks associated with carbon capture projects, and the critical need to refinance or repay upcoming debt maturities - The company is exposed to credit risk from various customers and counterparties, which could lead to losses or affect its ability to make payments[299](index=299&type=chunk) - Withdrawal from or material modification of international trade agreements, including tariffs and retaliatory measures, could materially adversely affect the business, particularly for ethanol and agricultural exports[300](index=300&type=chunk) - Operating results are highly sensitive to volatile commodity prices for corn, ethanol, distillers grains, natural gas, Ultra-High Protein, and renewable corn oil, influenced by supply, demand, weather, and government policies[301](index=301&type=chunk)[302](index=302&type=chunk)[306](index=306&type=chunk)[307](index=307&type=chunk)[308](index=308&type=chunk)[309](index=309&type=chunk) - Carbon Capture and Sequestration (CCS) projects face risks including operational delays, regulatory changes (e.g., CI modeling, tax incentives), market uncertainties for tax credits and carbon credits, and reliance on external infrastructure[310](index=310&type=chunk)[311](index=311&type=chunk)[312](index=312&type=chunk)[313](index=313&type=chunk)[314](index=314&type=chunk) - The company faces significant debt maturities of **$130.7 million** (Junior Notes by September 2026) and **$230.0 million** (convertible senior notes by March 2027), requiring substantial additional liquidity for repayment or refinancing[315](index=315&type=chunk)[316](index=316&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=63&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports on shares withheld for tax obligations related to restricted stock grants and the status of the company's share repurchase program, noting no repurchases in Q2 2025 Shares Withheld for Payroll Tax Withholding Obligations (Q2 2025) | Period | Total Number of Shares Withheld | Average Price Paid per Share | | :-------------- | :------------------------------ | :--------------------------- | | April 1 - April 30 | 16,538 | $4.13 | | May 1 - May 31 | 9,687 | $4.10 | | June 1 - June 30 | 3,354 | $4.17 | | **Total** | **29,579** | **$4.13** | - The company did not repurchase any shares of common stock under its **$200.0 million** share repurchase program during the second quarter of 2025[318](index=318&type=chunk) [Item 3. Defaults Upon Senior Securities](index=64&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - There were no defaults upon senior securities[319](index=319&type=chunk) [Item 4. Mine Safety Disclosures](index=64&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Mine Safety Disclosures are not applicable to the company[320](index=320&type=chunk) [Item 5. Other Information](index=64&type=section&id=Item%205.%20Other%20Information) This section provides details on recent amendments to the Junior Notes and associated warrant agreements, including extensions of maturity dates, changes in principal amounts, and the issuance of new warrants - On May 7, 2025, a First Supplemental Indenture extended the Junior Notes' maturity to May 15, 2026, and increased the principal by **$2.5 million**[321](index=321&type=chunk) - Also on May 7, 2025, outstanding warrant agreements with BlackRock were amended and restated, modifying the exercise price to **$0.01 per share** and extending the exercise period to December 31, 2029[323](index=323&type=chunk) - On August 10, 2025, an Amended and Restated Indenture further extended the Junior Notes' maturity to September 15, 2026, added a **2.5% amendment fee**, increased interest rates, and secured the notes with additional assets[325](index=325&type=chunk) - In connection with the August 10, 2025 amendment, the company issued **3,250,000 stock warrants** to BlackRock at a strike price of **$0.01 per share** with a **ten-year** exercise period[327](index=327&type=chunk) [Item 6. Exhibits](index=65&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including various agreements, indentures, warrant agreements, and certifications - Key exhibits include the Cooperation Agreement with Ancora Holdings Group, LLC, the Ethanol Marketing Agreement with Eco-Energy, LLC, and various amendments to debt and warrant agreements with BlackRock and Ancora Alternatives LLC[331](index=331&type=chunk)[332](index=332&type=chunk) - Certifications from the Chief Executive Officer and Chief Financial Officer pursuant to the Sarbanes-Oxley Act of 2002 are also included[333](index=333&type=chunk) [Signatures](index=69&type=section&id=Signatures) This section contains the official attestations and signatures of the company's principal executive and financial officers - The report is signed by Michelle S. Mapes, Interim Principal Executive Officer, Chief Legal and Administration Officer and Corporate Secretary, and Philip B. Boggs, Chief Financial Officer, on August 11, 2025[337](index=337&type=chunk)