PART I [Business](index=6&type=section&id=Item%201.%20Business) Green Plains Inc. is transforming into a value-added agricultural technology firm, focusing on sustainable ingredients and strategic growth - Green Plains is transitioning from a commodity-processing business to a **value-added agricultural technology company**, focusing on creating **sustainable, high-value ingredients** like Ultra-High Protein, dextrose, and renewable corn oil[27](index=27&type=chunk) - The company is engaged in **carbon capture and sequestration projects** for seven biorefineries to significantly lower their **Carbon Intensity (CI) scores**, aiming for completion between **2025 and 2026**[35](index=35&type=chunk) - In January 2023, Green Plains formed a joint venture, **Blue Blade Energy**, with United Airlines and Tallgrass to develop and commercialize **Alcohol-to-Jet (ATJ) technology** for producing **Sustainable Aviation Fuel (SAF)**[34](index=34&type=chunk) - On February 6, 2024, the company entered a Cooperation Agreement with a large shareholder and announced that its Board of Directors is initiating a **formal review of strategic alternatives** to enhance shareholder value[47](index=47&type=chunk)[49](index=49&type=chunk) [Operating Segments](index=6&type=section&id=Item%201.%20Business%20-%20Operating%20Segments) The company's operations are divided into three segments: Ethanol Production, Agribusiness and Energy Services, and a Partnership, covering biorefining, grain, and logistics Operating Segments Overview | Segment | Key Activities | Key Assets | | :--- | :--- | :--- | | **Ethanol Production** | Produces ethanol, distillers grains, Ultra-High Protein, and renewable corn oil | 10 biorefineries, 903 mmgy ethanol capacity | | **Agribusiness and Energy Services** | Grain procurement, commodity marketing, and distribution | 20.2 million bushels of grain storage capacity | | **Partnership** | Fuel storage and transportation services | 24 ethanol storage facilities, 2 fuel terminals, ~2,180 leased railcars | Ethanol Plant Production Capacity (million gallons per year) | Plant Location | Production Capacity (mmgy) | | :--- | :--- | | Central City, Nebraska | 116 | | Fairmont, Minnesota | 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) Recent developments include a strategic alternatives review, the Green Plains Partners LP acquisition, the Atkinson plant sale, and an operating loss from a facility explosion - The Board of Directors is conducting a **formal review of strategic alternatives**, which may include acquisitions, divestitures, a merger, or sale[47](index=47&type=chunk) - Completed the **acquisition of all publicly held common units of Green Plains Partners LP** on **January 9, 2024**[50](index=50&type=chunk) - Sold the **Atkinson ethanol plant** on **September 7, 2023**, resulting in a **pretax gain of $4.1 million**[51](index=51&type=chunk) - An explosion at the **Wood River, Nebraska facility** in **April 2023** led to an **operating loss of approximately $9.5 million** for the year, after insurance proceeds[52](index=52&type=chunk) [Human Capital Resources](index=15&type=section&id=Item%201.%20Business%20-%20Human%20Capital%20Resources) As of December 31, 2023, Green Plains employed 921 individuals, focusing on talent attraction and retention through competitive compensation, benefits, and workforce well-being - The company employed **921 people** as of **December 31, 2023**, including **170** at its corporate office in Omaha, Nebraska[87](index=87&type=chunk) - Compensation programs include **competitive base wages**, a **2019 Equity Incentive Plan**, a **company-matched 401(k)**, and various health and insurance benefits[89](index=89&type=chunk) [Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from commodity price volatility, government biofuel program changes, uncertain ethanol demand, strategic transformation execution, debt, and its strategic alternatives review - Operating results are highly sensitive to the spread between **input costs** (corn, natural gas) and **output prices** (ethanol, distillers grains, Ultra-High Protein, renewable corn oil), which are subject to **volatile market forces**[93](index=93&type=chunk)[94](index=94&type=chunk) - **Government biofuel programs**, particularly the **Renewable Fuel Standard (RFS)**, could change, impacting mandated volumes and the overall ethanol market. **Future demand is also uncertain** due to the rise of electric vehicles and shifts in consumer perception[107](index=107&type=chunk)[116](index=116&type=chunk)[119](index=119&type=chunk) - The company's **transformation strategy**, including the deployment of MSC™ and CST™ technologies, involves **significant capital expenditure and construction risks**, and new products may not achieve projected market acceptance or pricing[105](index=105&type=chunk)[106](index=106&type=chunk) - The company's **debt** exposes it to risks including dedication of cash flow to debt service, limitations on obtaining additional financing, and vulnerability to **interest rate increases**[129](index=129&type=chunk) - The recently announced **review of strategic alternatives** may be disruptive to the business, causing uncertainty among employees, suppliers, and customers[184](index=184&type=chunk) [Unresolved Staff Comments](index=29&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[189](index=189&type=chunk) [Cybersecurity](index=29&type=section&id=Item%201C.%20Cybersecurity) The company has implemented a comprehensive cybersecurity program aligned with NIST and CISA frameworks to manage risks, with Board oversight and no material incidents identified as of year-end 2023 - The cybersecurity program follows frameworks from the **National Institute of Standards and Technology (NIST)** and the **Cybersecurity and Infrastructure Security Agency (CISA)**[191](index=191&type=chunk) - The **Audit Committee** of the Board of Directors provides oversight for cybersecurity, with quarterly updates from IT leadership[194](index=194&type=chunk) - As of **December 31, 2023**, the company has not identified any cybersecurity incident that would have a **material impact** on its business or financial statements[196](index=196&type=chunk) [Properties](index=30&type=section&id=Item%202.%20Properties) The company's properties include leased corporate headquarters, owned and leased land for ethanol production facilities, grain storage, and fuel terminals - The company leases approximately **54,000 square feet** for its corporate headquarters in Omaha, Nebraska[198](index=198&type=chunk) - The Ethanol Production segment owns approximately **1,569 acres** and leases about **78 acres** of land for its production facilities[199](index=199&type=chunk) [Legal Proceedings](index=31&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in ordinary course litigation but does not expect a material adverse effect on its financial position, results, or cash flows - The company does not believe any current litigation will have a **material adverse effect** on its financial position[203](index=203&type=chunk) [Mine Safety Disclosures](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[204](index=204&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=32&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Green Plains' common stock trades on Nasdaq, with 1,741 holders of record, a suspended dividend, and an authorized $200.0 million share repurchase program - The company's common stock trades on Nasdaq under the symbol **"GPRE"**[207](index=207&type=chunk) - The quarterly cash dividend was **suspended in June 2019** to reallocate cash to strategic initiatives[209](index=209&type=chunk) - A **$200.0 million share repurchase program** is authorized. To date, **7.4 million shares** have been repurchased for **$92.8 million**. No shares were repurchased in 2023[210](index=210&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's transition to a value-added agricultural technology firm, with FY2023 revenues decreasing, net loss improving, adjusted EBITDA reaching $45.5 million, and strong liquidity maintained Consolidated Financial Results (in millions) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | **Revenues** | $3,295.7 | $3,662.8 | | **Operating Loss** | $(61.6) | $(98.9) | | **Net Loss** | $(76.3) | $(103.4) | | **Adjusted EBITDA** | $45.5 | $(0.8) | - The decrease in **2023 consolidated revenues** was primarily due to **lower average selling prices and volumes** for ethanol, distillers grains, and renewable corn oil[283](index=283&type=chunk) - The improvement in **net loss** and **Adjusted EBITDA** in **2023** was driven by **higher margins** in the ethanol production segment, despite lower revenues[284](index=284&type=chunk) [Results of Operations](index=40&type=section&id=Item%207.%20MD%26A%20-%20Results%20of%20Operations) For FY2023, the Ethanol Production segment's operating loss significantly decreased, while Agribusiness and Energy Services' operating income fell, and the Partnership segment's operating income remained stable Operating Income (Loss) by Segment (in millions) | Segment | 2023 | 2022 | | :--- | :--- | :--- | | Ethanol production | $(66.9) | $(117.8) | | Agribusiness and energy services | $28.1 | $36.4 | | Partnership | $46.9 | $47.7 | | Corporate activities | $(69.7) | $(68.9) | | **Total Operating Loss** | **$(61.6)** | **$(98.9)** | - The **Ethanol Production segment's improved performance** was due to a **$317.1 million decrease in cost of goods sold**, driven by lower corn prices and volumes[288](index=288&type=chunk)[289](index=289&type=chunk) - The **Agribusiness and Energy Services segment** saw a decrease in operating income primarily due to **lower distillers grains trading margins**[290](index=290&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Item%207.%20MD%26A%20-%20Liquidity%20and%20Capital%20Resources) As of December 31, 2023, the company maintained strong liquidity with $349.6 million in cash and $251.0 million available credit, with 2024 capital spending projected at $125-150 million Liquidity and Cash Flow (in millions) | Metric | 2023 | | :--- | :--- | | Cash and Cash Equivalents (Year-End) | $349.6 | | Net Cash from Operating Activities | $56.3 | | Net Cash Used in Investing Activities | $(106.9) | | Net Cash Used in Financing Activities | $(71.0) | | Capital Expenditures | $108.5 | - **Projected capital spending for 2024** is estimated to be between **$125 million and $150 million**[300](index=300&type=chunk) - The company was in **compliance with its debt covenants** at **December 31, 2023**[304](index=304&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate and commodity price risks, with a 10% rate increase impacting interest cost by $1.7 million and a 10% commodity price change significantly affecting net income - The company is exposed to **interest rate risk**, with **$161.9 million of its debt at variable rates** as of **December 31, 2023**. A **10% increase in rates** would increase annual interest cost by about **$1.7 million**[322](index=322&type=chunk) Commodity Price Risk Sensitivity (Net Income Effect of 10% Price Change, in millions) | Commodity | Estimated Net Income Effect (in millions) | | :--- | :--- | | Ethanol | $106.8 | | Corn | $114.3 | | Distillers grains | $27.4 | | Renewable corn oil | $10.3 | | Natural gas | $3.9 | [Financial Statements and Supplementary Data](index=50&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for FY2023, including the independent auditor's unqualified opinion and notes - The independent auditor, **KPMG LLP**, issued an **unqualified opinion** on the consolidated financial statements and on the effectiveness of the company's internal control over financial reporting as of **December 31, 2023**[341](index=341&type=chunk)[378](index=378&type=chunk)[379](index=379&type=chunk) - The auditor identified the **fair value of forward contracts** as a **critical audit matter** due to the complex and subjective judgment involved in their valuation[382](index=382&type=chunk)[384](index=384&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=50&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 on accounting and financial disclosure - None[332](index=332&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023, with an unqualified audit opinion from KPMG LLP - Management concluded that **disclosure controls and procedures were effective** as of **December 31, 2023**[334](index=334&type=chunk) - Management concluded that **internal control over financial reporting was effective** as of **December 31, 2023**[336](index=336&type=chunk) - **No material changes** in internal control over financial reporting were identified during the **fourth quarter of 2023**[338](index=338&type=chunk) [Other Information](index=53&type=section&id=Item%209B.%20Other%20Information) No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the year ended December 31, 2023 - **No director or officer** adopted, modified, or terminated a **Rule 10b5-1 trading arrangement** during the year[348](index=348&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=53&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the 2024 Proxy Statement - Information is **incorporated by reference** from the **2024 Proxy Statement**[351](index=351&type=chunk) [Executive Compensation](index=53&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the 2024 Proxy Statement - Information is **incorporated by reference** from the **2024 Proxy Statement**[353](index=353&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=53&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the 2024 Proxy Statement - Information is **incorporated by reference** from the **2024 Proxy Statement**[354](index=354&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=53&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the 2024 Proxy Statement - Information is **incorporated by reference** from the **2024 Proxy Statement**[355](index=355&type=chunk) [Principal Accounting Fees and Services](index=53&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding principal accounting fees and services is incorporated by reference from the 2024 Proxy Statement - Information is **incorporated by reference** from the **2024 Proxy Statement**[356](index=356&type=chunk) PART IV [Exhibits, Financial Statement Schedules](index=54&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed as part of the annual report, including a detailed index of documents - This section contains the list of **consolidated financial statements and notes** filed with the report[358](index=358&type=chunk) - A **detailed Exhibit Index** is provided, listing all documents incorporated by reference or filed with the Form 10-K[360](index=360&type=chunk)[361](index=361&type=chunk) [Form 10-K Summary](index=62&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form 10-K summary is provided - None[371](index=371&type=chunk)

• Processed 74.2 million bushels of corn • Sold 479 thousand tons of distillers grains (dry equivalent) • Sold 72.9 million pounds of renewable corn oil Fourth Quarter 2023 Business Update February 7, 2024 Forward-looking statements are made in accordance with safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations which involve a number of risks and uncertainties and do not relate strictly to historical or current facts, but rather ...

Table of Contents For the Quarterly Period Ended September 30, 2023 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______ to ______ Commission File Number 001-32924 GREEN PLAINS INC. _______________________ FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Exact name of registrant as specified in it ...

Financial Data and Key Metrics Changes - The company reported consolidated revenues of $892.8 million for Q3 2023, which is $62.2 million or approximately 6.5% lower than the same period a year ago due to lower prices for ethanol and dry distillers grains [19] - Net income attributable to the company was $22.3 million, or $0.35 per diluted share, compared to a net loss of $73.5 million, or $1.27 loss per diluted share for the same period in 2022 [37] - EBITDA for the quarter was $52 million, a significant improvement from a negative $35.6 million in the prior year period [37] Business Line Data and Key Metrics Changes - The ethanol operating rate was reported at 93.9%, an increase from 90.9% in the same period last year and significantly improved from 81.5% in Q2 of this year [19] - The ag and energy segment recorded $12.2 million in EBITDA, showing strong performance [20] - The company achieved new record production levels for Ultra-High Protein in Q3 and is on pace to set new highs in Q4 [34] Market Data and Key Metrics Changes - The company has seen good uptake from Canada due to its low carbon fuel program and has started to see volumes from the EU and other regions [4] - The corn basis in the company's areas was $0.44 higher than the five-year average during Q3 [16] - The company has expanded its customer base by 25% to 30% during the quarter, indicating strong demand for its protein products globally [26] Company Strategy and Development Direction - The company is focused on maximizing production from corn at its biorefineries and aims to produce low carbon ingredients [42] - The company plans to dedicate 20% to 30% of its portfolio to 60% protein during 2024, with expectations of higher production in Q4 [27] - The company is pursuing decarbonization strategies, including participation in carbon capture and sequestration opportunities, which are expected to provide a competitive advantage [45][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the completion of the carbon capture project and the anticipated benefits from the Summit Carbon Solutions Project [28] - The company expects to see improved free cash flow generation in Q4 and a stronger year-end position [35] - Management noted that the fundamentals for ethanol demand remain strong, with good export demand and production levels [63] Other Important Information - The company allocated $29 million of capital across its platform in Q3, with plans for CapEx in the range of $25 million to $45 million for the remainder of 2023 [23] - The company is working through a definitive merger agreement with Green Plains Partners, expected to simplify corporate structure and improve credit quality [96] Q&A Session Summary Question: Can you provide insights on the protein side and customer mix? - Management noted that the economics have improved with lower corn prices and increasing protein prices, leading to better competitiveness [78] Question: What is the status of the carbon capture strategy? - Management expressed confidence in the Summit project and its potential to enhance the company's capabilities in carbon initiatives [81] Question: When can guidance on 45Z be expected? - Management anticipates guidance by the end of the year, with ongoing discussions about lifecycle modeling for sustainable aviation fuel [86] Question: How is the company positioned regarding corn oil pricing? - Management indicated that corn oil prices have stabilized and the company is well-positioned to benefit from industry drivers towards advantaged feedstocks [87] Question: What are the expectations for EBITDA in 2024 and 2025? - Management reaffirmed previous guidance for 2025, emphasizing the advantages from the Summit project and expanded protein production [102]

This presentation includes forward-looking statements that reflect management's current views of company performance, industry conditions and future economic environment. These statements are based on assumptions and various factors that are subject to risks and uncertainties. Green Plains has provided additional information about such risks and uncertainties that could cause actual results to differ materially from those expressed or implied in its reports filed with the Securities and Exchange Commission ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Table of Contents _______________________ FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______ to ______ Commission File Number 001-32924 GREEN PLAINS INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpo ...

Green Plains Inc. (NASDAQ:GPRE) Q2 2023 Earnings Conference Call August 4, 2023 9:00 AM ET Company Participants Phil Boggs – Executive Vice President-Investor Relations Todd Becker – President and Chief Executive Officer Jim Stark – Chief Financial Officer Devin Mogler – Senior Vice President, Government Affairs, Sustainability & Communications Conference Call Participants Craig Irwin – ROTH Capital Adam Samuelson – Goldman Sachs Kristen Owen – Oppenheimer Manav Gupta – UBS Salvator Tiano – Bank of America ...

Forward-Looking Statements Forward-looking statements are made in accordance with safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations which involve a number of risks and uncertainties and do not relate strictly to historical or current facts, but rather to plans and objectives for future operations. These statements include words such as "anticipate," "believe," "continue," "estimate," "expect," "intend," "outlook," "plan," "pred ...

Financial Data and Key Metrics Changes - Green Plains reported consolidated revenues of $832.9 million for Q1 2023, an increase of $51.5 million compared to the same period last year, driven by higher run rates in ethanol and high-protein ingredients production [64] - The company experienced a net loss of $70.3 million, or a loss of $1.20 per diluted share, compared to a loss of $61.5 million, or a loss of $1.16 per diluted share in Q1 2022 [64] - Adjusted EBITDA for the quarter was a negative $27.7 million, consistent with the prior year, with a $4.5 million increase in depreciation and amortization expenses [6][64] - Cash and cash equivalents at the end of the quarter totaled $408 million, with a working capital of $376.9 million, down from $464.4 million at the end of 2022 [7][65] Business Line Data and Key Metrics Changes - The Ag & Energy segment recorded $5.2 million in EBITDA, about $5.5 million lower than the prior year, primarily due to market volatility [6] - The company’s plant utilization rate improved to 87.5% in Q1 2023, compared to 83.1% in the same period last year [64] - The MSC operations achieved an average production of over 900 tons per day of ultra-high protein products, with some days exceeding 1,000 tons [4] Market Data and Key Metrics Changes - Ethanol margins were reported as weak in Q1 but began to recover, with expectations for improved margins in the second half of the year [62][80] - Renewable diesel demand is anticipated to grow, with the company positioned to benefit from state-level programs supporting low-carbon renewable corn oil production [5][69] - The company noted a recent resurgence in corn oil pricing, trading at a premium to soybean oil, which is expected to tighten as renewable diesel capacity increases [69] Company Strategy and Development Direction - The company is focused on a transformation strategy that includes expanding protein production, clean sugar initiatives, and decarbonization efforts [5][70] - Plans to partner or acquire larger plants for technology installation are underway, with a focus on optimizing production processes [8] - The company aims to enhance its product offerings, including a 60% protein product, to replace traditional feed ingredients [66][67] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of ethanol margins and the potential for increased corn acreage in 2023 [80] - The company is confident in its ability to meet customer expectations and is focused on executing its transformation strategy to insulate against market volatility [66][70] - Management highlighted the importance of decarbonization and the potential for significant value increases in the future due to low-carbon initiatives [70] Other Important Information - The company announced an offer to acquire all publicly held common units of Green Plains Partners to simplify its corporate structure and improve governance [61] - The clean sugar facility in Shenandoah is progressing well, with construction on track for completion by the end of the year [69] Q&A Session Questions and Answers Question: Can you provide insights on the ethanol crush and the impact of the Wood River plant being offline? - Management indicated that the Wood River plant's downtime would have a minor impact on the second quarter utilization rate, but they expect to return to full rates soon [62][80] Question: What are the plans for carbon capture and other plants not on the pipeline? - Management discussed ongoing evaluations of carbon capture technologies and potential projects, emphasizing the importance of sequestration for maximizing benefits [51][70] Question: How does the company view the current landscape for ethanol assets and M&A activity? - Management noted that while there is interest in ethanol M&A, the focus remains on optimizing existing assets and exploring strategic partnerships [43][80]

Production and Utilization - In Q1 2023, the company maintained an average utilization rate of approximately 87.5%, resulting in ethanol production of 206.7 million gallons, compared to 196.3 million gallons in Q1 2022, reflecting a 5.4% increase in production [159]. - The company operates eleven ethanol plants capable of processing approximately 330 million bushels of corn per year, producing around 958 million gallons of ethanol, 2.4 million tons of distillers grains, and 310 million pounds of renewable corn oil [159]. - Ethanol sold increased by 5.4% to 206,880 thousand gallons for the three months ended March 31, 2023, compared to 196,348 thousand gallons in 2022 [190]. Market and Demand - Domestic ethanol production averaged 1.01 million barrels per day in Q1 2023, a 1.0% decrease from 1.02 million barrels per day in Q1 2022, while gasoline demand remained stable at 8.6 million barrels per day [161]. - U.S. domestic ethanol ending stocks decreased by approximately 1.4 million barrels, or 5.3%, to 25.1 million barrels as of March 31, 2023 [161]. - The EPA has proposed Renewable Volume Obligations (RVOs) for 2023, 2024, and 2025, setting implied conventional ethanol levels at 15.25 billion gallons for each year [167]. Financial Performance - Consolidated revenues increased by $51.5 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily due to higher volumes sold of ethanol, distillers grains, and renewable corn oil [186]. - Ethanol production segment revenues from external customers were $695,494, representing a 9.1% increase from $637,553 in the same period last year [180]. - Adjusted EBITDA increased by $0.1 million for the three months ended March 31, 2023 [187]. Costs and Margins - The cost of goods sold for ethanol production increased by 8.4% to $716,947 from $661,560 [181]. - The gross margin for ethanol production was negative $21,453, an improvement from negative $24,007, reflecting a 10.6% decrease [181]. - Operating loss for ethanol production was $53,362, a 4.3% increase from the loss of $51,158 in the previous year [181]. Capital and Debt Management - As of March 31, 2023, Green Plains had $709.6 million in total debt, with $271.6 million bearing variable interest rates [231]. - The company issued $125.0 million of junior secured mezzanine notes due 2026, with an interest rate of 11.75% [217]. - The company has total revolving commitments of $350.0 million with an accordion feature allowing for an increase of up to $100.0 million [220]. Strategic Initiatives - The company is producing Ultra-High Protein at five locations and deploying FQT MSC™ technology at additional sites to meet growing global demand for protein feed ingredients [160]. - The partnership's assets include 27 ethanol storage facilities and approximately 2,300 leased railcars, enhancing the company's logistics capabilities [159]. - The company has a share repurchase program authorized for up to $200.0 million, with no shares repurchased during the first quarter of 2023 [205]. Government and Regulatory Impact - The Inflation Reduction Act of 2022 includes a Clean Fuel Production Credit of $1.00 per gallon, which could impact the company's fuel ethanol depending on GHG reduction levels [165]. - The company received $27.7 million in funds from the USDA as part of COVID-19 relief measures [172]. Cash Flow and Operating Activities - Net cash used in operating activities was $117.0 million for the three months ended March 31, 2023, an improvement from $162.5 million in the same period in 2022 [200]. - Capital expenditures were approximately $32.6 million during the three months ended March 31, 2023, primarily for expansion projects [202].