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Earnings Estimates Moving Higher for REX (REX): Time to Buy?
ZACKS· 2025-04-10 17:20
Core Viewpoint - REX (REX) is showing solid improvement in earnings estimates, which may lead to continued short-term price momentum and an improving earnings outlook [1][2]. Earnings Estimate Revisions - The rising trend in earnings estimate revisions reflects growing analyst optimism regarding REX's earnings prospects, which is expected to positively impact its stock price [2]. - The current-quarter earnings estimate is $0.34 per share, representing a decrease of 41.38% from the previous year, but has increased by 30.77% over the last 30 days due to one upward revision [5]. - For the full year, the earnings estimate stands at $1.55 per share, a decline of 53.03% from the year-ago figure, yet the trend remains encouraging with one upward revision and no negative revisions in the past month [6]. Zacks Rank and Performance - REX has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, indicating strong agreement among analysts in revising earnings estimates upward [3][7]. - Stocks with a Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500, suggesting a positive outlook for REX [7]. Investment Outlook - REX's stock has increased by 5.3% over the past four weeks due to strong estimate revisions, indicating potential for further upside, making it a candidate for investment [8].
REX American Resources (REX) - 2025 Q4 - Annual Report
2025-03-28 17:54
Financial Performance - Net income attributable to REX common shareholders was $58.2 million in fiscal 2024, a decrease from approximately $60.9 million in fiscal 2023, primarily due to lower selling prices despite a decrease in corn and natural gas prices [161]. - Net sales and revenue for fiscal year 2024 decreased to $642.5 million, down 23% from $833.4 million in fiscal year 2023 [184]. - Ethanol sales decreased by 23% in average price per gallon, resulting in a total revenue of $496.4 million in fiscal year 2024 compared to $635.4 million in fiscal year 2023 [186]. - Gross profit for fiscal year 2024 was approximately $91.5 million, a decrease of 7% from $98.2 million in fiscal year 2023, representing 14.2% of net sales [192]. - SG&A expenses for fiscal year 2024 were approximately $27.1 million, a decrease of 8% from $29.4 million in fiscal year 2023 [194]. - Net cash provided by operating activities for fiscal year 2024 was approximately $64.2 million, a decrease from approximately $128.0 million in fiscal year 2023 [210][211]. - Net cash used in financing activities was approximately $18.5 million during fiscal year 2024, compared to approximately $4.3 million in fiscal year 2023 [215][216]. Production and Operations - Ethanol production yield is expected to be approximately 2.9 gallons of denatured ethanol per bushel of corn processed, with the "crush spread" being a critical factor for profitability [159]. - The One Earth ethanol plant is set to expand production from 150 million gallons per year to 175 million gallons per year, with plans to apply for a permit to increase to 200 million gallons per year thereafter [166]. - The company has secured sufficient subsurface easements for the first injection well to allow for carbon sequestration for a minimum of 15 years [162]. - The company is reviewing its investment opportunities in ethanol and energy-related ventures, with no assurances of success in finding such opportunities [170]. - The three entities owned by the company shipped approximately 727 million gallons of ethanol over the twelve-month period ended January 31, 2025, with REX's effective ownership of ethanol gallons shipped being approximately 294 million gallons [172]. Market Conditions - Chicago Board of Trade corn prices fluctuated between a low of $3.62 per bushel in August 2024 and a high of $4.97 in January 2025, while S&P Global Platts ethanol prices ranged from $1.38 per gallon in February 2024 to $2.12 in June 2024 [161]. - The EPA has issued Renewable Fuel Standard volume obligations for 2023-2025, maintaining the volume of conventional biofuels at 15.0 billion gallons [174]. Capital Expenditures and Investments - The budget for the carbon sequestration project has increased to approximately $220 million to $230 million due to permitting delays and inflation, with $55.7 million already spent as of January 31, 2025 [168]. - The company plans to spend $50 million to $70 million during fiscal year 2025 on various projects, including carbon sequestration and plant expansion [207]. - Capital expenditures in fiscal year 2024 totaled approximately $71.3 million, primarily for capital projects at ethanol plants, compared to approximately $37.7 million in fiscal year 2023 [212][214]. - The company recognized income of approximately $9.4 million from its equity investment in Big River Resources, LLC for fiscal year 2024 [195]. - The company is investigating various uses of excess cash, with a budget of approximately $220 million to $230 million for carbon sequestration and plant expansion projects [206]. Financial Position and Commitments - Accounts receivable decreased approximately $1.7 million in fiscal year 2024, while inventory increased approximately $4.7 million [210]. - The company had purchase commitments for approximately 24.4 million bushels of corn and 0.8 million MmBtu of natural gas as of January 31, 2025 [230]. - Long-term taxes payable increased by $4.3 million, reflecting uncertain tax positions exceeding remaining unused credits [210]. - Approximately 2.7% of net assets are restricted due to loan agreements as of January 31, 2025 [218]. - Aggregate minimum lease payments under operating lease agreements total $24.0 million, with $6.8 million payable in the next twelve months [219]. - Management believes cash flow from operating activities will be sufficient to meet liquidity needs, barring any material adverse changes [217]. Risk Assessment - Estimated decrease in pre-tax income from a 10% adverse change in ethanol price is approximately $48.9 million, based on a volume of 295,000 gallons for the next 12 months [230]. Stock and Shareholder Actions - The company has a stock buyback program, purchasing 372,567 shares for $15.5 million in fiscal year 2024, with an additional 281,709 shares repurchased for approximately $11.9 million post-January 31, 2025 [208].
REX American Resources (REX) - 2024 Q4 - Earnings Call Transcript
2025-03-26 20:50
Financial Data and Key Metrics Changes - Fiscal 2024 saw ethanol sales volume increase to 289.7 million gallons, up from 285.9 million gallons in fiscal 2023 [20] - Gross profit for fiscal year 2024 was $91.5 million, down from approximately $98.2 million in fiscal year 2023 [24] - Net income attributable to REX shareholders for the year was $58.2 million compared to $60.9 million in fiscal year 2023 [27] - Total cash, cash equivalents, and short-term investments at year-end were $359.1 million, down from $378.7 million at the end of fiscal year 2023 [29] Business Line Data and Key Metrics Changes - Dry distillers grain sales volumes decreased by 3% to 632,000 tons in fiscal 2024 compared to 652,000 tons in fiscal 2023 [21] - Modified distillers grains sales volumes increased to 70,000 tons in fiscal 2024 from approximately 54,000 tons in fiscal 2023 [22] - Corn oil sales volume increased by approximately 1% to 88.1 million pounds in fiscal 2024 compared to 87.5 million pounds in fiscal 2023 [23] Market Data and Key Metrics Changes - Total ethanol exports from the US reached a record high of 1.9 billion gallons in 2024, supporting pricing throughout the year [33] - Canada accounted for approximately 36% of US ethanol exports, while Mexico represented about 21% of US DDG exports in 2024 [33] Company Strategy and Development Direction - The company is focused on efficient and profitable operations while pursuing growth projects, including carbon capture and ethanol facility expansion [8][14] - REX is actively monitoring policy changes that could impact the business, particularly regarding tariffs on ethanol and co-product exports [32][33] - The company has a commitment to shareholder value through a selective share repurchase program [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for a profitable Q1 2025, which would mark the nineteenth consecutive profitable quarter [30] - The company is closely watching regulatory developments and market conditions to make informed decisions [32][33] - Management highlighted the importance of maintaining communication with the EPA regarding permitting processes [49][50] Other Important Information - REX repurchased approximately 373,000 shares in Q4 2024 and an additional 282,000 shares in Q1 2025 [28] - The total budget for the carbon capture and ethanol production capacity expansion projects has increased to $222-$230 million due to ongoing reviews and inflation [18] Q&A Session Summary Question: Can you provide detail on the higher capital budget for the expansion project? - Management explained that the increase in budget is due to the need for energy-efficient equipment capable of handling future production increases, which necessitated additional investment [39] Question: Can you discuss the regulatory side and permitting updates? - Management noted that communication with the EPA has resumed after initial delays, and they are optimistic about moving forward with the permitting process [49][50] Question: Have there been any changes in dialogue with the EPA since the new administration took over? - Management confirmed that communication with the EPA has restarted and they are addressing previous questions from the agency [49][50]
REX American Resources (REX) - 2025 Q4 - Earnings Call Transcript
2025-03-26 20:31
Financial Data and Key Metrics Changes - Fiscal year 2024 saw ethanol sales volume increase to 289.7 million gallons from 285.9 million gallons in 2023, with Q4 volumes at 74.7 million gallons compared to 72.1 million gallons in Q4 2023 [15][5] - Gross profit for fiscal year 2024 was $91.5 million, down from $98.2 million in 2023, with Q4 gross profit at $17.6 million compared to $30.4 million in Q4 2023 [18][19] - Net income attributable to REX shareholders for the year was $58.2 million, down from $60.9 million in fiscal year 2023, with Q4 net income at $11.1 million compared to $20.6 million in Q4 2023 [20][21] - Selling, general and administrative expenses decreased to $27.1 million for fiscal year 2024 from $29.4 million in 2023, with Q4 expenses at approximately $6.2 million compared to $7.4 million in Q4 2023 [19] Business Line Data and Key Metrics Changes - Dry distillers grain sales volumes decreased by 3% to 632,000 tons in fiscal year 2024 from 652,000 tons in 2023, with Q4 volumes down by approximately 2% [16] - Modified distillers grain sales volumes increased to 70,000 tons in fiscal year 2024 from 54,000 tons in 2023, with Q4 volumes up by approximately 11% [16] - Corn oil sales volume increased by approximately 1% to 88.1 million pounds in fiscal year 2024 compared to 87.5 million pounds in 2023, with Q4 volumes up by 7% [17] Market Data and Key Metrics Changes - U.S. ethanol exports reached a record high of 1.9 billion gallons in 2024, supporting pricing throughout the year [24] - Canada accounted for approximately 36% of U.S. ethanol exports, while Mexico represented about 21% of U.S. DDG exports in 2024 [25] Company Strategy and Development Direction - The company is focused on efficient and profitable operations while pursuing growth projects, including carbon capture and ethanol facility expansion [6][10] - A share repurchase program is in place, with 373,000 shares repurchased in Q4 and an additional 282,000 shares in Q1 of fiscal year 2025 [7][21] - The company is monitoring policy changes that could impact the ethanol market, including potential tariffs on exports and the debate around year-round E15 blending [24][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for a profitable Q1 2025, which would mark the nineteenth consecutive profitable quarter [23] - The company is closely watching regulatory developments and market conditions to make informed decisions [23][24] Other Important Information - The total cash, cash equivalents, and short-term investments at the end of the fiscal year were $359.1 million, down from $378.7 million in 2023, primarily due to capital expenditures and share repurchases [21][22] - The company ended the year without any bank debt [22] Q&A Session Summary Question: Details on higher capital budget for expansion project - Management explained that the increase in budget is due to the need for energy-efficient equipment capable of handling future production increases, which has also extended the project timeline [29][31] Question: Update on regulatory and permitting side - Management discussed the new FSMA rules and the current review process under the new administration, indicating that previous regulations are under review and may be invalid for implementation [33] Question: Dialogue with EPA on Class VI well permitting - Management confirmed that communication with the EPA has resumed and they are optimistic about moving forward with the permitting process [37][38]
REX (REX) Beats Q4 Earnings and Revenue Estimates
ZACKS· 2025-03-26 13:40
REX (REX) came out with quarterly earnings of $0.63 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $1.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 133.33%. A quarter ago, it was expected that this ethanol producer would post earnings of $0.72 per share when it actually produced earnings of $1.38, delivering a surprise of 91.67%.Over the last four quarters, the company has ...
REX American Resources (REX) - 2025 Q4 - Annual Results
2025-03-26 13:24
Financial Performance - For the full fiscal year 2024, REX reported net sales and revenue of $642.5 million, a decrease of 23% from $833.4 million in fiscal year 2023[3] - Full fiscal year 2024 gross profit was $91.5 million, down from $98.2 million in the prior year, with a gross profit margin increase to 14% from 12%[3] - Net income attributable to REX shareholders for fiscal year 2024 was $58.2 million, compared to $60.9 million in fiscal year 2023, resulting in diluted net income per share of $3.30, down from $3.47[4] - In Q4 2024, REX reported net sales and revenue of $158.2 million, a decline from $187.6 million in Q4 2023, primarily due to lower product pricing[5] - Q4 2024 gross profit was $17.6 million, compared to $30.4 million in Q4 2023, leading to income before income taxes of $17.9 million, down from $32.5 million[5] Cash and Investments - As of January 31, 2025, REX had $359.1 million in cash, cash equivalents, and short-term investments, with no bank debt[14] - Cash and cash equivalents at the end of the year were $196,255 million, down from $223,397 million at the beginning of the year[27] - Net cash provided by operating activities decreased to $64,192 million from $127,970 million, reflecting a decline of 49.9%[27] - Net cash used in investing activities was $(72,860) million, a shift from net cash provided of $28,402 million in the prior year[27] Capital Expenditures and Share Repurchase - REX is progressing on the expansion of ethanol production at the One Earth facility, with capital expenditures totaling $115.6 million related to this project[11] - Capital expenditures increased significantly to $71,318 million compared to $37,663 million in the previous year, representing an increase of 89.5%[27] - The company has authorized an additional share repurchase program of up to 1.5 million shares, following the repurchase of approximately 372,567 shares for $15.5 million in fiscal year 2024[12][13] - Treasury stock acquired amounted to $14,741 million, indicating a new strategy in capital management[27] Production and Capacity - REX's effective ownership of annual ethanol production volumes is approximately 300 million gallons, with a total production capacity of about 730 million gallons per year across its facilities[19] Tax and Other Financial Metrics - Long-term taxes payable increased to $4,334 million, reflecting changes in tax strategy[27] - The company reported a loss on disposal of property and equipment of $50 million, down from $243 million[27] - Non-cash investing activities included accrued capital expenditures of $1,152 million, up from $918 million[28] - Stock awards issued totaled $2,172 million, compared to $965 million in the previous year, indicating increased compensation strategies[28] Ongoing Projects - The permitting process for the carbon capture and sequestration project is ongoing, with final permitting expected to be completed by October 2025[9]
REX American Resources (REX) - 2025 Q3 - Quarterly Report
2024-12-05 20:39
Ethanol Production and Capacity - As of October 31, 2024, the company holds majority ownership interests in two ethanol entities, with One Earth Energy, LLC at 75.9% and NuGen Energy, LLC at 99.7%[110] - The company expects its ethanol plants to produce approximately 2.9 gallons of denatured ethanol per bushel of corn processed, with the realized yield being critical for cash flow sustainability[111] - The company received a construction permit to increase ethanol production from 150 million gallons per year to 175 million gallons per year, with plans to apply for a further increase to 200 million gallons[119] - The Renewable Fuel Standard volume obligations for conventional biofuels are set at 15.0 billion gallons for each year from 2023 to 2025[128] - The company is facing uncertainties regarding the enforcement of the Renewable Fuel Standard II, which may impact future ethanol production volumes[126] Financial Performance - Net sales and revenue for the three months ended October 31, 2024, decreased by 21% to $174.9 million compared to $221.1 million in the same period of 2023[136] - Ethanol revenue decreased by 19% in Q3 2024, driven by a 21% decrease in average selling price, despite a 3% increase in gallons sold[139] - Dried distillers grains revenue fell by 28% in Q3 2024, attributed to a 25% decrease in average selling price and a 5% decrease in tons sold[140] - Distillers corn oil revenue decreased approximately 31% in Q3 2024, with a 28% drop in average price per pound sold[141] - Gross profit for Q3 2024 increased by approximately $0.4 million compared to Q3 2023, totaling $39.7 million[146] - Income before income taxes for Q3 2024 was approximately $39.5 million, compared to $41.3 million in Q3 2023[153] - Net income for Q3 FY 2024 was approximately $30.1 million, a decrease from $31.6 million in Q3 FY 2023, while net income for the first nine months of FY 2024 was approximately $57.4 million, up from $50.6 million in the same period last year[156] - Net income attributable to REX common shareholders for Q3 FY 2024 was approximately $24.5 million, compared to $26.1 million in Q3 FY 2023, with a nine-month total of approximately $47.1 million, up from $40.4 million[158] Expenses and Costs - Cost of sales decreased approximately 26% in Q3 2024, with corn accounting for 76% of the cost, down from 80% in Q3 2023[145] - SG&A expenses for Q3 2024 were approximately $8.4 million, an increase from $7.6 million in Q3 2023, primarily due to higher railcar lease expenses[150] - The company recognized income from its equity investment in Big River of approximately $3.6 million in Q3 2024, down from $4.7 million in Q3 2023[151] Cash Flow and Capital Expenditures - Net cash provided by operating activities for the first nine months of FY 2024 was approximately $39.1 million, down from $65.5 million in the same period of FY 2023[159] - Capital expenditures for the first nine months of FY 2024 were approximately $55.4 million, primarily for projects at consolidated ethanol plants, including $24.5 million for expansion and CI scoring reduction at One Earth[163] - The company plans total capital expenditures of approximately $165 million to $175 million for construction at One Earth facilities, including ongoing carbon sequestration and capacity expansion projects[167] Carbon Sequestration and Environmental Initiatives - The total cost for the carbon sequestration and plant expansion projects is estimated to be between $165 million and $175 million, with $52.9 million already spent as of October 31, 2024[121] - The company is working on a carbon sequestration project, with a test well drilled to approximately 7,100 feet and a Class VI injection well permit application submitted to the EPA[115] - The Illinois General Assembly passed legislation imposing additional requirements for carbon capture and sequestration facilities, affecting the company's project timelines[116] - The Inflation Reduction Act introduces a Clean Fuel Production Credit of approximately $0.02 per ethanol gallon per carbon intensity point reduction, applicable from 2025 to 2027[129] Shareholder Returns and Dividends - The company has a stock buyback program with 876,786 shares remaining authorized as of October 31, 2024[168] - The company received dividends from Big River of approximately $3.0 million in FY 2024, down from $5.5 million in FY 2023[161] Working Capital and Financial Position - Working capital as of October 31, 2024, was approximately $392.5 million, an increase from $385.8 million at January 31, 2024, with a current assets to current liabilities ratio of 9.9 to 1[162] - A decrease in accounts payable used cash of approximately $21.6 million in FY 2024, primarily due to timing of inventory receipts and vendor payments[159] Future Projections - Estimated total volume for ethanol for the next 12 months is 300,000 gallons, with a potential decrease in pre-tax income of $49,091 from a 10% adverse price change[172]
REX American Resources (REX) - 2024 Q3 - Earnings Call Transcript
2024-12-03 19:55
Financial Data and Key Metrics Changes - REX American Resources reported a net income per share of $1.38, a 97% improvement over the second quarter of 2024, marking the second most profitable quarter in the company's history [7][26] - Gross margin improved by 1% compared to the third quarter of 2023, despite a 21% reduction in product revenue [8] - Gross profit for the third quarter of 2024 was $39.7 million, slightly up from $39.3 million in the same quarter of 2023 [23][24] - Total cash, cash equivalents, and short-term investments at the end of the quarter were $365.1 million, down from $378.7 million at the beginning of the fiscal year [27] Business Line Data and Key Metrics Changes - Ethanol sales volume increased by approximately 3% to 75.5 million gallons compared to 73.2 million gallons in the third quarter of 2023 [21] - Average selling price for ethanol decreased to $1.83 per gallon from $2.32 per gallon in the prior year [21] - Dry distillers grain sales volume decreased by 5% to 170,116 tons, with average selling price dropping from $194.94 per ton to $147.14 per ton [22] - Corn oil sales volume was approximately 23.4 million pounds, down from 24.1 million pounds, with average selling price decreasing from $0.61 per pound to $0.44 per pound [23] Market Data and Key Metrics Changes - Ethanol exports were approximately 33% higher in the first nine months of the calendar year compared to the same period in 2023, returning to pre-pandemic levels [30] - Corn input prices have improved due to a bumper crop in the Midwest, ensuring adequate supply for the plants [29] Company Strategy and Development Direction - The company aims to complete the construction of its One Earth Energy carbon capture and compression facility and expand its ethanol production capacity to 175 million gallons per year, with plans to further permit for 200 million gallons [6][11] - The company is focused on maintaining strategic freedom and pursuing additive growth projects while remaining debt-free [9] - Future projects may include sustainable aviation fuel and third-party carbon sequestration [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain profitability despite challenges in the regulatory environment and potential changes in federal policy [28][31] - The anticipated completion of the ethanol production expansion is expected to enhance profitability [31] - Management remains cautious about the impact of potential changes in the 45Z tax credit and the incoming administration's policies [36][50] Other Important Information - The company has invested approximately $103 million into the One Earth carbon capture project and ethanol production capacity expansion combined, with spending on the CCS project at $52.9 million and ethanol expansion at $50.2 million [18] Q&A Session Summary Question: Thoughts on Biden administration not finalizing 45Z guidance - Management expressed uncertainty about the implications of the incoming administration on growth initiatives related to 45Z and emphasized the difficulty in benefiting from it without finalized regulations [36][37] Question: Areas of opportunity for deploying cash - Management highlighted potential share buybacks and opportunities in new ethanol plants, although current prices are above their willingness to pay [45][46] Question: Decisions on carbon capture project pending clarity on 45Q - Management indicated that they would likely continue with the carbon capture project regardless of 45Q's status, citing market opportunities for low-carbon products [50][51]
REX (REX) Q3 Earnings and Revenues Top Estimates
ZACKS· 2024-12-03 14:40
Core Viewpoint - REX reported quarterly earnings of $1.38 per share, significantly exceeding the Zacks Consensus Estimate of $0.72 per share, marking an earnings surprise of 91.67% [1][2] Financial Performance - REX's revenues for the quarter ended October 2024 were $174.88 million, surpassing the Zacks Consensus Estimate by 9.99%, although this represents a decline from $221.08 million in the same quarter last year [2] - The company has consistently outperformed consensus EPS estimates over the last four quarters [2] Stock Performance - REX shares have declined approximately 8.1% since the beginning of the year, contrasting with the S&P 500's gain of 26.8% [4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.61 on revenues of $159 million, and for the current fiscal year, it is $2.60 on revenues of $627 million [8] - The estimate revisions trend for REX is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [7] Industry Context - The Biofuels industry, to which REX belongs, is currently ranked in the bottom 25% of over 250 Zacks industries, suggesting potential challenges ahead [9]
REX American Resources (REX) - 2024 Q2 - Earnings Call Transcript
2024-08-27 23:15
Financial Data and Key Metrics Changes - REX American Resources reported a net income per share improvement of more than 20% over Q1 2024 and more than 35% over Q2 2023 [4][13] - Gross profit for Q2 2024 was $19.8 million, an increase of 8% compared to approximately $18.4 million in Q2 2023 [12] - Total cash, cash equivalents, and short-term investments at the end of Q2 2024 were $346 million, down from $378.7 million as of January 31, 2024 [14] Business Line Data and Key Metrics Changes - Ethanol sales volume decreased by approximately 6% to 65.1 million gallons in Q2 2024 compared to 69.1 million gallons in Q2 2023 [11] - Average selling price for ethanol was $1.79 per gallon in Q2 2024, down from $2.42 per gallon in Q2 2023 [11] - Dry distillers grain sales volume decreased by 6% to 132,850 tons in Q2 2024, with an average selling price of $164.45 per ton, down from $226.48 per ton in Q2 2023 [11] Market Data and Key Metrics Changes - Ethanol exports increased by 36.5% through June compared to the same period last year, positively impacting the industry [15] - Corn crop conditions in the Midwest are expected to be strong, leading to favorable corn input pricing [15] Company Strategy and Development Direction - The company aims to complete the construction of the One Earth carbon capture and compression facility and expand ethanol production capacity to 175 million gallons per year, with plans for further permitting to reach 200 million gallons [4][5] - REX American Resources focuses on profitability over product pricing or production numbers, as evidenced by improved gross margin performance despite lower ethanol pricing [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong results in Q3 2024, expecting to exceed Q2 performance due to favorable market conditions [15] - The company is focused on maintaining profitability and has not incurred any debt, allowing for continued investment in core operations [4][14] Other Important Information - As of the end of Q2 2024, REX had invested approximately $91 million into the One Earth carbon capture project and associated ethanol production capacity expansion [10] - The company ended the quarter without any bank debt, reflecting a strong financial position [14] Q&A Session Summary Question: Timeline for carbon capture and pipeline build-out - Management indicated that the EPA permit is expected in Q2 2025, with construction of the carbon sequestration facility progressing [17][20] Question: Allocation of cash reserves - The first priority for cash allocation is the carbon capture and expansion of the Gibson City plant, with potential expansion of the South Dakota plant as a second priority [29] Question: Thoughts on sustainable aviation fuel - Management stated that low carbon fuel production is necessary, and they are awaiting clear guidelines for tax credits before proceeding [31] Question: Capital expenditures compared to budget - Management confirmed that capital expenditures are on track and no major increases are anticipated at this time [32]