Part I [Business](index=6&type=section&id=Item%201.%20Business.) The company is a biorefining firm transitioning into an agricultural technology leader via high-value products and carbon capture initiatives - Green Plains is transitioning from a commodity-processing business to a value-added agricultural technology company, focusing on creating lower carbon, high-value ingredients like Ultra-High Protein, low-CI dextrose, and renewable corn oil[26](index=26&type=chunk) - The company has committed seven biorefineries to carbon capture and sequestration projects, which are expected to significantly lower their carbon intensity[28](index=28&type=chunk) - In February 2024, the company initiated a strategic review to enhance shareholder value, idling a facility and targeting approximately **$30 million in annual financial improvement**[48](index=48&type=chunk) Operating Segments Overview | Segment | Description | | :--- | :--- | | **Ethanol Production** | Includes the production, storage, and transportation of ethanol, distillers grains, Ultra-High Protein, and renewable corn oil at ten biorefineries. Annual production capacity is approximately 903 million gallons of ethanol, 2.2 million tons of distillers grains/Ultra-High Protein, and 310 million pounds of renewable corn oil | | **Agribusiness and Energy Services** | Includes grain procurement with ~20.2 million bushels of storage, and a commodity marketing business for ethanol, distillers grains, renewable corn oil, and other commodities | [Operating Segments](index=9&type=section&id=Item%201.%20Business.%20-%20Operating%20Segments) The company's two segments produce ethanol and co-products, supported by grain procurement and commodity marketing services - Five plants are equipped to produce **Ultra-High Protein**, a feed ingredient with over **50% protein concentration**[32](index=32&type=chunk)[62](index=62&type=chunk) - The Agribusiness and Energy Services segment includes **20.2 million bushels** of grain storage capacity and provides marketing services for all co-products[67](index=67&type=chunk)[69](index=69&type=chunk) Ethanol Plant Production Capacity (mmgy) | Plant Location | Plant Production Capacity (mmgy) | | :--- | :--- | | Central City, Nebraska | 116 | | Fairmont, Minnesota (Idled Jan 2025) | 119 | | Madison, Illinois | 90 | | Mount Vernon, Indiana | 90 | | Obion, Tennessee | 120 | | Otter Tail, Minnesota | 55 | | Shenandoah, Iowa | 82 | | Superior, Iowa | 60 | | Wood River, Nebraska | 121 | | York, Nebraska | 50 | | **Total** | **903** | [Recent Developments](index=8&type=section&id=Item%201.%20Business.%20-%20Recent%20Developments) The company advanced its technology initiatives, idled a plant, sold a terminal, and completed a partnership merger - The company achieved successful ongoing production of dextrose syrups with CST™ at its Shenandoah facility, capable of producing **60 million pounds per year**[45](index=45&type=chunk) - In January 2025, the company idled its **119 million gallon** ethanol plant in Fairmont, Minnesota due to persistent margin pressures[47](index=47&type=chunk) - On September 30, 2024, the company sold its Birmingham, Alabama terminal for **$47.5 million**, using the proceeds to repay a term loan[50](index=50&type=chunk) - On January 9, 2024, the company completed the acquisition of all publicly held common units of Green Plains Partners LP[51](index=51&type=chunk) [Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors.) The company faces significant risks from commodity price volatility, strategic execution, government regulations, and debt covenants - Operating results are highly sensitive to the spread between input costs (corn, natural gas) and output prices (ethanol, co-products)[86](index=86&type=chunk) - The company's strategic transformation involves significant capital expenditure and construction risks with no guarantee of market acceptance[98](index=98&type=chunk) - Changes to government biofuel programs like the RFS and IRA could significantly impact ethanol demand and profitability[100](index=100&type=chunk)[101](index=101&type=chunk)[105](index=105&type=chunk) - Future demand for ethanol is uncertain due to the potential widespread adoption of electric vehicles[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) - The company's debt exposes it to risks including dedication of cash flow to debt service and vulnerability to interest rate increases[121](index=121&type=chunk)[123](index=123&type=chunk) [Unresolved Staff Comments](index=29&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments.) The company reports no unresolved staff comments - None[183](index=183&type=chunk) [Cybersecurity](index=29&type=section&id=Item%201C.%20Cybersecurity.) Cybersecurity risk is managed through a comprehensive program with board oversight, and no material incidents have been identified - The company's cybersecurity program is based on industry-standard frameworks (NIST, CISA) and includes external experts and a formal response plan[185](index=185&type=chunk) - The Audit Committee of the Board of Directors oversees cybersecurity, with quarterly updates from IT leadership[188](index=188&type=chunk) - As of December 31, 2024, the company has not identified any cybersecurity incident that would have a material impact on its business[191](index=191&type=chunk) [Properties](index=30&type=section&id=Item%202.%20Properties.) The company owns and leases sufficient properties for its operations, including production plants, land, and corporate offices - The company leases approximately **54,000 square feet** for its corporate headquarters in Omaha, Nebraska[193](index=193&type=chunk) - The Ethanol Production segment owns approximately **1,599 acres** and leases about **79 acres** of land for its facilities[194](index=194&type=chunk) - The Agribusiness and Energy Services segment has grain storage capacity of approximately **20.2 million bushels** at the ethanol plant sites[195](index=195&type=chunk) [Legal Proceedings](index=30&type=section&id=Item%203.%20Legal%20Proceedings.) The company is involved in ordinary course litigation not expected to have a material adverse effect on its financial position - The company is involved in ordinary course of business litigation, which is not expected to have a material adverse effect[197](index=197&type=chunk) [Mine Safety Disclosures](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the company - Not applicable[198](index=198&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=31&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities.) The company's stock trades on Nasdaq, no dividends are paid, and a share repurchase program is in place - The company's common stock trades on Nasdaq under the symbol **"GPRE"**[200](index=200&type=chunk) - The company did not pay cash dividends in 2024 and 2023 and does not anticipate paying them in the foreseeable future[202](index=202&type=chunk) - A share repurchase program of up to **$200.0 million** is authorized, with **$92.8 million** used since inception and no repurchases in 2024[203](index=203&type=chunk)[294](index=294&type=chunk) Issuer Purchases of Equity Securities (Q4 2024) | Period | Total Number of Shares Withheld | Average Price Paid per Share | | :--- | :--- | :--- | | October 1 - October 31 | 1,429 | $12.85 | | November 1 - November 30 | 7,856 | $10.95 | | December 1 - December 31 | 847 | $10.58 | | **Total** | **10,132** | **$11.19** | [Reserved](index=32&type=section&id=Item%206.%20Reserved.) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Revenues and margins declined in 2024, leading to a higher net loss, while the company continues its strategic transformation - Consolidated revenues decreased by **$836.9 million** in 2024, primarily due to lower average selling prices for key products[278](index=278&type=chunk) - Net loss increased by **$4.9 million** in 2024, driven by lower margins, partially offset by a **$30.7 million** gain on an asset sale[279](index=279&type=chunk)[255](index=255&type=chunk) - Projected capital spending for 2025 is **$20 million to $35 million**, excluding an estimated **$110 million** for carbon capture projects[292](index=292&type=chunk) Consolidated Financial Highlights (in thousands) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Revenues | $2,458,796 | $3,295,743 | | Gross Margin | $130,450 | $164,751 | | Operating Loss | $(47,459) | $(61,578) | | Net Loss | $(81,189) | $(76,299) | | Adjusted EBITDA | $18,715 | $45,506 | [Results of Operations](index=39&type=section&id=Item%207.%20MD&A%20-%20Results%20of%20Operations) The Ethanol Production segment's loss widened on compressed margins, while Agribusiness income was stable and corporate loss narrowed - The Ethanol Production segment's operating loss increased by **$20.8 million** in 2024, primarily due to decreased margins on ethanol production[283](index=283&type=chunk) - The Agribusiness and Energy Services segment's revenues decreased due to lower trading prices, but operating income remained flat[284](index=284&type=chunk) - The operating loss from Corporate Activities decreased by **$34.9 million**, mainly due to a gain on asset sale and reduced personnel costs[286](index=286&type=chunk) Segment Operating Income (Loss) (in thousands) | Segment | 2024 | 2023 | | :--- | :--- | :--- | | Ethanol production | $(40,758) | $(19,958) | | Agribusiness and energy services | $28,156 | $28,100 | | Corporate activities | $(34,857) | $(69,720) | | **Total Operating Loss** | **$(47,459)** | **$(61,578)** | [Liquidity and Capital Resources](index=45&type=section&id=Item%207.%20MD&A%20-%20Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity through cash and credit facilities, despite negative operating cash flow in 2024 - Capital expenditures in 2024 were **$95.1 million**, primarily for the clean sugar expansion project at Shenandoah[292](index=292&type=chunk) - The company was in compliance with its debt covenants at December 31, 2024, and anticipates maintaining compliance[296](index=296&type=chunk) Liquidity Position as of Dec 31, 2024 (in millions) | Item | Amount | | :--- | :--- | | Cash and cash equivalents | $173.0 | | Restricted cash | $36.4 | | Available under revolving credit | $200.7 | Cash Flow Summary (in millions) | Cash Flow | 2024 | 2023 | | :--- | :--- | :--- | | Net cash from (used in) operating activities | $(30.0) | $56.3 | | Net cash used in investing activities | $(62.1) | $(106.9) | | Net cash used in financing activities | $(77.4) | $(71.0) | [Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The company is exposed to market risks from commodity prices and interest rates, which it manages through derivative instruments - The company has **$140.8 million** in variable-rate debt; a **10%** increase in interest rates would increase annual interest cost by approximately **$1.4 million**[310](index=310&type=chunk) - The business is highly sensitive to commodity price risk and uses forward contracts and derivatives to reduce price fluctuation exposure[312](index=312&type=chunk)[314](index=314&type=chunk) Net Income Effect of a Hypothetical 10% Change in Commodity Prices (in thousands) | Commodity | Estimated Net Income Effect | | :--- | :--- | | Ethanol | $118,410 | | Corn | $104,701 | | Distillers grains | $24,266 | | Renewable corn oil | $9,869 | | Natural gas | $5,352 | [Financial Statements and Supplementary Data](index=49&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data.) This section references the consolidated financial statements and notes listed in Part IV, Item 15 of the report - The required consolidated financial statements and accompanying notes are listed in Part IV, Item 15[321](index=321&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=49&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure.) The company reports no changes in or disagreements with its accountants - None[322](index=322&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%209A.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and internal control over financial reporting were effective as of year-end 2024 - Management concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2024[324](index=324&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective** as of December 31, 2024[326](index=326&type=chunk) - The effectiveness of the company's internal control over financial reporting has been audited by KPMG LLP, which issued an **unqualified opinion**[327](index=327&type=chunk)[330](index=330&type=chunk) [Other Information](index=51&type=section&id=Item%209B.%20Other%20Information.) No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the year - No director or officer adopted, modified, or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the year ended December 31, 2024[336](index=336&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=51&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections.) This item is not applicable to the company - Not applicable[337](index=337&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=51&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance.) Required information on directors, officers, and governance is incorporated by reference from the 2025 Proxy Statement - Information regarding directors, executive officers, and corporate governance is incorporated by reference from the 2025 Proxy Statement[339](index=339&type=chunk) [Executive Compensation](index=51&type=section&id=Item%2011.%20Executive%20Compensation.) Required information on executive compensation is incorporated by reference from the 2025 Proxy Statement - Information regarding executive compensation is incorporated by reference from the 2025 Proxy Statement[341](index=341&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=51&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters.) Required information on security ownership is incorporated by reference from the 2025 Proxy Statement - Information regarding security ownership is incorporated by reference from the 2025 Proxy Statement[342](index=342&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=51&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence.) Required information on related transactions and director independence is incorporated by reference from the 2025 Proxy Statement - Information regarding related transactions and director independence is incorporated by reference from the 2025 Proxy Statement[343](index=343&type=chunk) [Principal Accounting Fees and Services](index=51&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services.) Required information on accounting fees and services is incorporated by reference from the 2025 Proxy Statement - Information regarding principal accounting fees and services is incorporated by reference from the 2025 Proxy Statement[344](index=344&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=52&type=section&id=Item%2015.%20Exhibits,%20Financial%20Statement%20Schedules.) This section lists the consolidated financial statements, notes, and exhibits filed as part of the annual report - This item lists the consolidated financial statements and exhibits filed with the Form 10-K[347](index=347&type=chunk)[349](index=349&type=chunk) [Form 10-K Summary](index=56&type=section&id=Item%2016.%20Form%2010-K%20Summary.) The company reports no Form 10-K summary - None[356](index=356&type=chunk)

Financial Data and Key Metrics Changes - Green Plains reported a net loss of $54.9 million or $0.86 per share for Q4 2024, compared to a net income of $7.2 million or $0.12 per share in the same period of 2023 [8][17] - Consolidated revenues for Q4 were $584 million, approximately 18% lower than the same period a year ago, primarily due to lower market prices for ethanol, dry distillers grains, and renewable corn oil [16] - EBITDA for Q4 was negative $18.9 million, down from $44.7 million in the prior year period [17] Business Line Data and Key Metrics Changes - The company executed $30 million of cost improvements, with a target of $50 million in annualized cost savings identified [5][6] - The Fairmont facility, with a capacity of 120 million gallons, was shut down due to market conditions and flooding issues, impacting overall production [7] - Operating rates at plants improved, achieving 92% in Q4, with expectations to continue operating in the mid-90s range [11][17] Market Data and Key Metrics Changes - Strong exports are anticipated, with a record of approximately 1.9 billion gallons expected for the year, and projections for 2025 to exceed that [9] - The U.S. corn market remains tight, with planting intentions closely monitored to avoid higher corn prices in the future [10] - The protein complex is under pressure from oversupply due to expanded domestic soy crushing capacity, but there are bright spots in aquaculture sales [12] Company Strategy and Development Direction - The company is transitioning from innovation to commercialization, focusing on cost rationalization and margin expansion [5][6] - Carbon capture initiatives are on track, with expectations to begin capturing biogenic CO2 in the second half of the year [13][21] - The company believes the value of its Nebraska assets is not reflected in its current share price, with carbon earnings expected to transform its earnings power [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over negative EBITDA for Q4 but noted a positive EBITDA of $44.7 million for the full year [8][17] - The management is optimistic about the potential for improved margins and profitability as the market conditions evolve and carbon capture initiatives are implemented [21][24] - The company is focused on reducing SG&A costs and simplifying its structure to enhance operational efficiency [31] Other Important Information - The company reached a settlement with the IRS regarding R&D tax credits, impacting its tax position for the year [18] - Capital expenditures for Q4 were allocated across various initiatives, with a total of $95 million incurred year-to-date [19] Q&A Session Summary Question: Cost initiatives and profitability impact - Management indicated that the $50 million cost savings would enhance overall profitability, transitioning focus from innovation to commercialization [35][36] Question: Aquaculture market penetration - Management confirmed successful sales in aquaculture, with significant quantities sold and a focus on expanding market presence [38][39] Question: Carbon capture project timeline - Management expects the carbon capture project to be operational by late Q3 or early Q4, with construction underway [42][43] Question: Sugar market development - Management is optimistic about customer interest in sugar products, awaiting food safety certification to ramp up production [49][50] Question: Corn oil pricing expectations - Management anticipates corn oil to trade at a premium to soybean oil, reflecting market conditions [60][61] Question: 45Z tax credit monetization - Management expressed confidence in finding buyers for tax credits and offsets, with a robust market for these products [81][82]

Company Performance - Green Plains Renewable Energy (GPRE) reported a quarterly loss of $0.86 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.28, and compared to earnings of $0.12 per share a year ago [1] - The earnings surprise for this quarter was -207.14%, following a previous quarter where the company exceeded expectations with earnings of $0.35 per share against an estimate of $0.11, resulting in a surprise of 218.18% [2] - The company posted revenues of $584.02 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 6.59%, and down from $712.39 million in the same quarter last year [3] Stock Performance and Outlook - Green Plains shares have declined approximately 12.6% since the beginning of the year, while the S&P 500 has gained 3.4% [4] - The current consensus EPS estimate for the upcoming quarter is -$0.27 on revenues of $651.6 million, and for the current fiscal year, it is $0.07 on revenues of $2.75 billion [8] Industry Context - The Chemical - Specialty industry, to which Green Plains belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, indicating potential challenges for stock performance [9] - The performance of Green Plains may also be influenced by the overall outlook for the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9]

Financial Performance - Net loss attributable to Green Plains for Q4 2024 was $54.9 million, or $(0.86) per diluted share, compared to a net income of $7.2 million, or $0.12 per diluted share in Q4 2023[1]. - Revenues for Q4 2024 decreased to $584.0 million, down 18.0% from $712.4 million in Q4 2023, primarily due to lower selling prices and volumes of ethanol and distillers grains[5]. - The consolidated ethanol crush margin for Q4 2024 was $(15.5) million, a significant decline from $53.0 million in Q4 2023[4]. - EBITDA for Q4 2024 was $(18.9) million, a decrease of $63.6 million compared to $44.7 million in Q4 2023[6]. - Total revenues for the twelve months ended December 31, 2024, were $2,458,796 thousand, a decline of 25.4% from $3,295,743 thousand in 2023[30]. - For the twelve months ended December 31, 2024, Green Plains Inc. reported a net loss of $81.189 million, compared to a net loss of $76.299 million in 2023, indicating a decline in performance[33]. - The company's EBITDA for the twelve months ended December 31, 2024, was $47.646 million, down from $54.031 million in 2023, reflecting a decrease of approximately 11.4% year-over-year[35]. - The company incurred net payments of $61.697 million on long-term debt during the twelve months ended December 31, 2024, compared to $4.838 million in 2023, indicating increased debt repayment efforts[33]. - Green Plains Inc. reported a significant loss on the sale of assets, netting a loss of $30.723 million for the twelve months ended December 31, 2024, compared to a loss of $5.265 million in 2023[35]. - The company’s adjusted EBITDA for the twelve months ended December 31, 2024, was $18.715 million, down from $45.506 million in 2023, showing a substantial decline[35]. Operational Highlights - The company sold 209.5 million gallons of ethanol in Q4 2024, a slight decrease from 215.7 million gallons in Q4 2023[4]. - Ethanol production for Q4 2024 was 209,540 gallons, a decrease of 2.9% compared to 215,717 gallons in Q4 2023[16]. - Corn consumed in Q4 2024 was 71,221 bushels, a decrease of 4.0% from 74,152 bushels in Q4 2023[16]. - Gross margin for ethanol production in Q4 2024 was $(10.4) million, compared to $59.0 million in Q4 2023, reflecting a 91.7% decline[11]. - Adjusted ethanol production operating loss for Q4 2024 was $19,870 thousand, down from a profit of $46,309 thousand in Q4 2023[18]. - The company completed the acquisition of the remaining interest in Green Plains Partners LP on January 9, 2024, streamlining operations and improving efficiencies[8]. Strategic Initiatives - Green Plains has initiated a corporate reorganization and cost reduction initiative targeting annual savings of up to $50 million, with $30 million in improvements already implemented[2]. - The 'Advantage Nebraska' strategy is on track, with carbon capture operations expected to begin in the second half of 2025, potentially contributing significantly to future earnings[2]. - The company expects that combining cost reduction initiatives with carbon earnings could achieve a combined $180 million annualized contribution to future earnings[2]. Cash and Debt Management - Total cash and cash equivalents as of December 31, 2024, were $209.4 million, with total debt outstanding at $575.4 million[21]. - The company had $200.7 million available under a committed revolving credit facility as of December 31, 2024[21]. - The total cash and cash equivalents, and restricted cash at the end of the period was $209.395 million, a decrease from $378.762 million at the beginning of the period[33]. - The net change in cash and cash equivalents, and restricted cash for the twelve months ended December 31, 2024, was a decrease of $169.367 million, compared to a decrease of $121.514 million in 2023[33]. - Interest expense for the twelve months ended December 31, 2024, was $33.095 million, a decrease from $37.703 million in 2023, indicating a reduction in borrowing costs[35]. Asset Management - The company reported a decrease in total assets from $1,939,322 thousand in 2023 to $1,782,174 thousand in 2024[28].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Green Plains Renewable Energy (GPRE) due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - The earnings report is expected on February 7, 2025, with a consensus estimate of a quarterly loss of $0.28 per share, reflecting a year-over-year change of -333.3% [3]. - Revenues are projected to be $625.2 million, down 12.2% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 170% lower in the last 30 days, indicating a significant reassessment by analysts [4]. - The Most Accurate Estimate for Green Plains is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -41.49% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a strong predictor for positive readings [7][8]. - Green Plains currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, Green Plains exceeded expectations with earnings of $0.35 per share against an estimate of $0.11, resulting in a surprise of +218.18% [12]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [13]. Market Context - The performance of Green Plains may not solely dictate stock movement, as other factors can influence investor sentiment [14]. - Despite not appearing as a compelling earnings-beat candidate, other market factors should be considered when evaluating the stock [16]. Industry Comparison - Linde (LIN), another player in the Zacks Chemical - Specialty industry, is expected to report earnings per share of $3.93 for the same quarter, indicating a year-over-year change of +9.5% [17]. - Linde's revenues are projected at $8.36 billion, up 0.7% from the previous year, with a recent EPS estimate revision of 1.4% down [18].

Financial Data and Key Metrics Changes - The company reported $83.3 million in EBITDA for Q3 2024, which includes a $30.7 million gain from the sale of the Birmingham Unit Train Terminal. Normal operations EBITDA was $53 million, and the standalone consolidated crush margin was $58 million [6][19]. - Consolidated revenues for Q3 2024 were $658.7 million, down $234 million or approximately 26% year-over-year, primarily due to lower prices for ethanol, dry distillers grains, and renewable corn oil [16][19]. - Net income attributable to the company was $48.2 million or $0.69 per diluted share, compared to $22.3 million or $0.35 per diluted share in Q3 2023 [18][19]. - The plant utilization rate was 97% during the quarter, up from 94% in the same period last year [17]. Business Line Data and Key Metrics Changes - Ethanol operating rates reached nearly 97%, with record ultra-high protein production and strong corn oil yield maintained [9][11]. - The company experienced strong demand for ethanol exports, with totals through August reaching 1.2 billion gallons, on track for a record year of 1.8 to 1.9 billion gallons [12]. - Record production of ultra-high protein was achieved during Q3, with ongoing efforts to maximize efficiency and flexibility in production [32][34]. Market Data and Key Metrics Changes - The company noted favorable natural gas and corn prices, contributing to solid margins during the quarter, despite some rapid compression late in the quarter [11][36]. - The corn basis in Q3 was at least $0.50 a bushel better than the prior three years, aiding the margin structure for the industry [52]. Company Strategy and Development Direction - The company is focused on decarbonizing its operations in Nebraska and anticipates significant cash flows from carbon credits starting in the second half of 2025 [28][30]. - The ongoing startup of the Clean Sugar Technology project is a key focus, with expectations for commercial sales in Q4 2024 [13][14]. - The strategic review process is ongoing, with the Board of Directors working with financial advisors to explore options for enhancing shareholder value [15]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to improve operational performance and margins, despite recent volatility in the industry [11][41]. - The management team highlighted the importance of upcoming milestones in carbon capture and the potential for increased interest in carbon credits [40][66]. - The company remains optimistic about the demand for low-carbon products and the potential for strong margins in 2025 [74]. Other Important Information - The company completed the sale of the Birmingham Unit Train Terminal, using proceeds to retire high-priced debt, which is expected to enhance efficiency [15]. - Capital expenditures for the year are anticipated to be in the range of $90 million to $100 million, excluding carbon capture equipment financing [24]. Q&A Session Summary Question: What does the market need to see for better valuation? - Management indicated that milestones in carbon projects will be critical for increasing market interest and valuation [40]. Question: How is the clean sugar technology progressing? - The company is receiving positive feedback from North American customers and is working towards food-grade certification [55]. Question: What is the outlook for ethanol exports next year? - Management expects continued robust demand for ethanol exports, particularly as global blend rates increase [74]. Question: How are protein margins expected to evolve? - Management noted that while margins are currently lower than hoped, demand remains strong, and they anticipate stabilization in spreads [80].

Ethanol Production and Utilization - In Q3 2024, the company maintained an average utilization rate of approximately 96.8%, resulting in ethanol production of 220.2 million gallons, compared to 223.4 million gallons in Q3 2023[174]. - Domestic ethanol production averaged 1.07 million barrels per day in Q3 2024, a 3.1% increase from 1.04 million barrels per day in Q3 2023[176]. - U.S. domestic ethanol ending stocks increased by approximately 1.6 million barrels, or 7.2%, to 23.5 million barrels as of September 30, 2024[176]. - Domestic ethanol exports through August 31, 2024, were approximately 1,240 million gallons, up from 921 million gallons for the same period in 2023[177]. - Ethanol production segment revenues from external customers decreased by 27.2% to $563.564 million in Q3 2024 compared to $774.321 million in Q3 2023[195]. - Ethanol production segment revenues decreased by $210.9 million for Q3 2024 compared to Q3 2023, primarily due to lower selling prices of ethanol, distillers grains, and renewable corn oil[207]. Financial Performance - Overall revenues, including intersegment activity, declined by 26.0% to $666.499 million in Q3 2024 from $900.610 million in Q3 2023[195]. - The company reported a 27.6% decrease in total segment revenues for the nine months ended September 30, 2024, totaling $1.595741 billion compared to $2.202182 billion for the same period in 2023[195]. - Consolidated revenues decreased by $234.0 million for the three months ended September 30, 2024, primarily due to lower average selling prices and volumes sold in the ethanol production segment[205]. - For the nine months ended September 30, 2024, consolidated revenues decreased by $708.6 million compared to the same period in 2023, mainly due to lower selling prices of ethanol and distillers grains[212]. - Net income increased by $22.3 million for the three months ended September 30, 2024, primarily due to a gain on the sale of assets and higher margins in the ethanol production segment[206]. - Adjusted EBITDA increased by $10.4 million primarily due to higher margins in the ethanol production segment[206]. Capital Expenditures and Investments - Capital expenditures for the nine months ended September 30, 2024, were approximately $67.8 million, with an expected additional $110 million for carbon capture projects in 2024 and 2025[224]. - The company has contracted future purchases of grain, distillers grains, and natural gas valued at approximately $187.8 million as of September 30, 2024[239]. - Future commitments for storage and transportation are valued at approximately $26.3 million as of September 30, 2024[239]. Debt and Financial Obligations - The outstanding principal balance on the 2.25% convertible senior notes was $230.0 million as of September 30, 2024[229]. - The company anticipates maintaining compliance with debt covenants for the next twelve months based on current forecasts[228]. - Total senior secured revolving commitments amount to $350.0 million, with an accordion feature allowing an increase of up to $100.0 million, maturing in March 2027[234]. - As of September 30, 2024, the outstanding principal balance on the facility was $109.0 million with an interest rate of 8.11%[234]. - The company had $559.8 million in total debt as of September 30, 2024, with $123.1 million bearing variable interest rates[243]. Operational Highlights - The company produced approximately 430 thousand tons of Ultra-High Protein annually, utilizing FQT MSC™ technology at five biorefineries[164]. - The company is collaborating on carbon capture projects at seven biorefineries, with completion anticipated in the second half of 2025[168]. - The company has a grain storage capacity of approximately 20.2 million bushels in its agribusiness and energy services segment[163]. - The company expects to begin shipments from its first commercial scale FQT CST™ facility in Q4 2024, producing low carbon-intensity glucose and dextrose corn syrups[165]. Market and Regulatory Environment - The EPA finalized Renewable Volume Obligations (RVOs) for 2023 at 15.25 billion gallons, and 15 billion gallons for both 2024 and 2025[182]. - The IRA introduced a Clean Fuel Production Credit of $0.02 per gallon for fuels below a 50 CI threshold, effective from 2025 to 2027[181]. - The EPA proposed a modest increase in biomass-based diesel volumes, setting them at 2.82 billion gallons for 2023, 3.04 billion for 2024, and 3.35 billion for 2025[182]. - The One-Pound Waiver allows E15 to be sold year-round, with the exception of California, marking the sixth consecutive year of such sales[185]. - The USDA announced $50 million in initial awards for biofuel infrastructure, part of a $500 million funding initiative[186]. Shareholder Value and Strategic Initiatives - The company initiated a strategic review process in February 2024 to explore opportunities for enhancing long-term shareholder value[172]. - The company has a share repurchase program authorized for up to $200.0 million, with $92.8 million spent to repurchase 7.4 million shares since inception[226]. Miscellaneous - Interest expense was $10.1 million for the three months ended September 30, 2024, compared to $9.6 million for the same period in 2023, due to higher loan fees[206]. - The gross margin for ethanol production increased by 12.4% to $66,313 for the three months ended September 30, 2024, compared to $58,973 in 2023[197]. - Operating income for ethanol production increased by 47.3% to $35,240 for the three months ended September 30, 2024, compared to $23,931 in 2023[199]. - The cost of goods sold decreased by 29.0% to $580,626 for the three months ended September 30, 2024, compared to $818,008 in 2023[196]. - The company reported a depreciation and amortization expense of $26,070 for the three months ended September 30, 2024, an increase of 9.1% from $23,899 in 2023[198]. - The agribusiness and energy services segment reported a gross margin decrease of 25.3% to $11,796 for the three months ended September 30, 2024, compared to $15,789 in 2023[197]. - The company recognized a $30.7 million pretax gain on the sale of assets for the three months ended September 30, 2024[199]. - Net cash used in operating activities was $3.0 million for the nine months ended September 30, 2024, a significant improvement from $55.4 million in the same period of 2023[222]. - Revenues for the three months ended September 30, 2024, included net gains of $16.1 million from derivative financial instruments, while cost of goods sold included net losses of $4.2 million[246]. - Estimated total volume requirements for ethanol for the next 12 months is 903,000 gallons, with a 10% price change estimated to impact revenue by $98,304[248]. - A 10% increase in interest rates would affect the company's interest cost by approximately $1.2 million per year[243]. - The company has no off-balance sheet arrangements[241].

Group 1: Earnings Performance - Green Plains Renewable Energy (GPRE) reported quarterly earnings of $0.35 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and matching the earnings from the same quarter last year [1] - The earnings surprise for this quarter was 218.18%, contrasting with a previous quarter where a loss of $0.16 per share was expected, but the company reported a loss of $0.38, resulting in a surprise of -137.50% [2] - Over the last four quarters, the company has only surpassed consensus EPS estimates once [2] Group 2: Revenue Performance - For the quarter ended September 2024, Green Plains posted revenues of $658.74 million, which missed the Zacks Consensus Estimate by 0.11%, and represented a decline from year-ago revenues of $892.77 million [3] - The company has not been able to beat consensus revenue estimates over the last four quarters [3] Group 3: Stock Performance and Outlook - Green Plains shares have declined approximately 53.9% since the beginning of the year, while the S&P 500 has gained 21.9% [4] - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $651.47 million, and for the current fiscal year, it is -$1.04 on revenues of $2.51 billion [8] - The Zacks Industry Rank indicates that the Chemical - Specialty sector is currently in the bottom 33% of over 250 Zacks industries, suggesting potential challenges for stock performance [9]

Financial Performance - Net income attributable to Green Plains for Q3 2024 was $48.2 million, or $0.69 per diluted share, compared to $22.3 million, or $0.35 per diluted share in Q3 2023, representing a 116.5% increase in net income[1] - EBITDA for Q3 2024 was $83.3 million, up from $52.0 million in the same period last year, marking a 60.3% increase[1] - Revenues for the three months ended September 30, 2024, were $658,735, a decrease of 26.1% compared to $892,770 for the same period in 2023[27] - Operating income for the three months ended September 30, 2024, was $56,052, compared to $21,174 for the same period in 2023, representing a significant increase[27] - Adjusted EBITDA for the three months ended September 30, 2024, was $53,318, up from $42,932 in the same period of 2023, indicating a growth of 24.5%[30] - Total costs and expenses for the three months ended September 30, 2024, were $602,683, a decrease of 30.9% compared to $871,596 for the same period in 2023[27] - Net cash used in operating activities for the nine months ended September 30, 2024, was $(2,996), a significant improvement compared to $(55,386) for the same period in 2023[28] - The company reported a net change in cash and cash equivalents of $(126,802) for the nine months ended September 30, 2024, compared to $(134,116) for the same period in 2023[28] - Interest expense for the nine months ended September 30, 2024, was $25,369, down from $29,029 in the same period of 2023, reflecting a decrease of 12.9%[30] Production and Operational Metrics - Ethanol production segment sold 220.3 million gallons in Q3 2024, slightly down from 223.5 million gallons in Q3 2023[4] - Ethanol production for the three months ended September 30, 2024, was 220,299 gallons, a decrease of 1.4% compared to 223,469 gallons in the same period of 2023[12] - The plant utilization rate reached 97%, indicating strong operational performance[1] - The company produced 69 tons of Ultra-High Protein in Q3 2024, an increase of 13.1% from 61 tons in Q3 2023[12] - Renewable corn oil production increased by 3.8% to 77,074 pounds in Q3 2024 compared to 74,227 pounds in Q3 2023[12] Financial Position and Liquidity - Total cash and cash equivalents as of September 30, 2024, were $252.0 million, with total debt outstanding at $556.2 million[16] - Current liabilities decreased to $316,122 as of September 30, 2024, from $384,962 in the previous year[23] - Total assets as of September 30, 2024, were $1,759,954, down from $1,939,322 as of December 31, 2023[24] - The company had $228.5 million available under a committed revolving credit facility as of September 30, 2024[16] - The recent sale of the unit train terminal in Birmingham, Alabama allowed Green Plains to pay off higher-priced debt, enhancing its financial stability[2] - The company generated solid free cash from operations, improving its financial position and liquidity after Q3 2024[2] Strategic Initiatives and Future Outlook - Green Plains is on track to decarbonize 287 million gallons of capacity by next year, ahead of most industry peers[2] - The Clean Sugar Technology™ facility in Shenandoah, Iowa has commenced production, with samples sent to customers for evaluation[1] - The company anticipates future growth driven by new product development and market expansion strategies[20] Ethanol Crush Margin - The consolidated ethanol crush margin was $58.3 million in Q3 2024, compared to $52.9 million in Q3 2023, reflecting an increase of 4.5%[4] - Adjusted ethanol production operating income for the three months ended September 30, 2024, was $56,684, compared to $46,527 in 2023, reflecting a significant increase[14] - The consolidated ethanol crush margin for the three months ended September 30, 2024, was $58,291, up from $52,947 in the same period of 2023[14]

The Zacks Consensus Estimate for Ecolab's current-year earnings is pegged at $6.59 per share, indicating a year-over-year rise of 26.5%. The consensus estimate for ECL's current-year earnings has gone up in the past 30 days. ECL, which carries a Zacks Rank of 2 at present, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.3%. The company's shares have gained roughly 33.6% in the past year. Green Plains Inc. (GPRE) has stated that the construction manag ...