Industry Investment Ratings No information about industry investment ratings is provided in the reports. Core Views Oils and Fats - Palm oil may face downward pressure if it fails to hold above 4,100 ringgit, with support at 4,000 ringgit. In China, there is a risk of downward break - out for palm oil futures, with support around 8,000 yuan. - For soybean oil, the EIA has lowered its forecasts for renewable diesel production in 2025 and 2026. However, Fed rate cuts and the rebound of BMD palm oil support CBOT soybean oil. In China, the spot basis is shifting to the May contract, and the factory's soybean oil inventory is high but may decrease in Q1 2026. The basis of the January contract may decline slightly, while that of the May contract is supported [1]. Meal and Grains - U.S. soybeans lack trading highlights, with slow - growing Chinese demand and strong South American crop expectations. The market is not optimistic about medium - to - long - term U.S. soybean prices. - In China, the soybean meal supply is loose, but the market is speculating on longer soybean clearance times. The 1 - 5 positive spread has strengthened, and attention should be paid to its performance [2]. Livestock (Pigs) - There is some reluctance to sell in the market, and the spot price is stable. The southern pickling demand is increasing, but there are uncertainties in the December - January market due to potential pandemic impacts and secondary fattening. The overall supply pressure is large, and the price is hard to improve. The futures market is struggling to rise and has fallen in the past two days. Monitor the pandemic situation [4]. Sugar - ICE raw sugar futures are under pressure below 15 cents per pound. India's sugar production in Maharashtra is increasing. The overall raw sugar price is bearish. In China, the sugar - making process in Guangxi and Yunnan is accelerating, new sugar supply is increasing, and the market is weak. Domestic sugar prices are expected to fluctuate weakly [8][9]. Corn and Corn Starch - The price of corn in the northern port is rising slightly due to insufficient supply, while prices in the Northeast and North China are stable or weak. The demand side is cautious, with deep - processing and feed enterprises mainly making rigid purchases. The corn futures market is expected to fluctuate, and attention should be paid to the continuity of supply [10]. Eggs - The supply of eggs is relatively sufficient, with a slight decrease in the number of laying hens in November but still at a high level. The market is moving goods at a normal pace, but demand is weak. Egg prices are expected to fluctuate weakly with limited downside [14]. Cotton - ICE cotton futures fell due to weak U.S. export demand. In China, Zhengzhou cotton futures face increasing hedging pressure, and the spot basis is weakening, putting downward pressure on prices. However, the downstream demand for cotton is strong, limiting the downside. Attention should be paid to the 14,000 resistance level [16]. Summary by Related Catalogs Oils and Fats - **Soybean Oil**: On December 11, the spot price in Jiangsu was 8,600 yuan, up 0.58% from the previous day. The futures price of Y2605 was 8,268 yuan, up 0.56%. The basis was 328 yuan, and the warehouse receipts remained unchanged at 25,964 [1]. - **Palm Oil**: The spot price of 24 - degree palm oil in Guangdong was 8,680 yuan on December 11, up 0.46%. The futures price of P2605 was 8,656 yuan, up 1.33%. The basis was - 75.51%. The import cost was 9,102.8 yuan, and the import profit was - 447 yuan [1]. - **Rapeseed Oil**: The spot price of third - grade rapeseed oil in Jiangsu was 10,000 yuan on December 11, up 3.09%. The futures price of OI601 was 9,443 yuan, up 1.65%. The basis was 401 yuan, and the warehouse receipts were 3,490 [1]. Meal and Grains - **Soybean Meal**: The spot price in Jiangsu was 3,060 yuan on December 11, up 0.66%. The futures price of M2605 was 2,750 yuan, down 0.15%. The basis was 310 yuan, and the warehouse receipts were 23,830 [2]. - **Rapeseed Meal**: The spot price in Jiangsu was 2,410 yuan on December 11, up 1.26%. The futures price of RM2605 was 2,323 yuan, down 0.26%. The basis was 87 yuan, and the warehouse receipts were 0 [2]. - **Soybeans**: The spot price of Harbin soybeans was 3,940 yuan, unchanged. The futures price of the main soybean contract was 4,173 yuan, up 0.29%. The basis was - 233 yuan [2]. Livestock (Pigs) - **Futures Market**: On December 11, the price of the main contract of live pigs (2605) was 11,820 yuan/ton, down 0.17%. The price of the 2603 contract was 11,220 yuan/ton, down 0.80%. The 3 - 5 spread was - 600 yuan, down 13.21%. The main contract's open interest was 154,716, up 3.54%, and the warehouse receipts were 523, up 40.21% [4]. - **Spot Market**: The spot prices in different regions were stable or slightly increased. For example, the price in Henan was 11,360 yuan/ton, up 60 yuan. The slaughter volume of sample slaughterhouses increased by 0.61%, and the white - strip price decreased by 0.99%. The number of fertile sows decreased by 1.12% month - on - month [4]. Sugar - **Futures Market**: On December 11, the price of the sugar 2601 contract was 5,358 yuan/ton, up 0.56%. The price of the 2605 contract was 5,245 yuan/ton, up 0.38%. The ICE raw sugar main contract was 14.86 cents per pound, down 0.27%. The 1 - 5 spread was 113 yuan/ton, up 9.71%. The main contract's open interest was 391,467, up 62.10%, and the warehouse receipts were 611, up 54.29% [8]. - **Spot Market**: The spot price in Kunming and Nanning was stable. The Nanning basis was 115 yuan, down 14.81%, and the Kunming basis was 75 yuan, down 21.05%. The imported sugar price from Brazil (in - quota) was 4,100 yuan/ton, up 2.07%, and (out - of - quota) was 5,195 yuan/ton, up 2.12% [8]. - **Industry Data**: The national sugar production increased by 12.03% year - on - year, sales increased by 9.17%, the national sales ratio decreased by 2.60%, and the industrial inventory decreased by 41.20%. The sugar import volume increased by 38.89% [8]. Corn and Corn Starch - **Corn**: On December 11, the price of the corn 2601 contract was 2,243 yuan/ton, up 0.09%. The basis was 57 yuan, up 16.33%. The 1 - 5 spread was - 24 yuan, unchanged. The import profit was 287 yuan, down 3.43%. The number of trucks at Shandong deep - processing enterprises in the morning increased by 11.10%, and the open interest was 2,216,177, up 0.38% [10]. - **Corn Starch**: The price of the corn starch 2601 contract was 2,523 yuan/ton, down 0.36%. The basis was 67 yuan, up 15.52%. The 1 - 5 spread was - 53 yuan, down 1.92%. The starch - corn 01 spread was 280 yuan, down 3.78%. The Shandong starch profit was 19 yuan, down 26.92%, and the open interest was 297,821, down 0.43% [10]. Eggs - **Futures Market**: On December 11, the price of the egg 01 contract was 3,144 yuan/500KG, down 0.29%. The price of the 02 contract was 2,968 yuan/500KG, down 0.40%. The 1 - 2 spread was 176 yuan, up 1.73%. The basis was - 57 yuan/500KG, up 33.37% [14]. - **Spot Market**: The egg - producing area price was 3.09 yuan per catty, up 0.64%. The price of egg - laying chicks was 2.85 yuan per chick, up 5.56%. The price of culled chickens was 3.86 yuan per catty, up 1.58%. The egg - feed ratio was 2.40, up 3.90%, and the breeding profit was - 22.62 yuan per chick, up 20.35% [14]. Cotton - **Futures Market**: On December 11, the price of the cotton 2605 contract was 13,850 yuan/ton, up 0.65%. The price of the 2601 contract was 13,860 yuan/ton, up 0.58%. The ICE cotton main contract was 64.00 cents per pound, down 0.19%. The 5 - 1 spread was - 10 yuan/ton, up 50.00%. The main contract's open interest was 460,016, down 3.02%, and the warehouse receipts were 2,967, down 0.10% [16]. - **Spot Market**: The Xinjiang arrival price of 3128B cotton was 14,835 yuan/ton, up 0.03%. The CC Index: 3128B was 15,013 yuan/ton, up 0.06%. The FC Index:M: 1% was 12,898 yuan/ton, up 0.40%. The 3128B - 01 contract spread was 1,070 yuan/ton, down 7.94%, and the 3128B - 05 contract spread was 975 yuan/ton, down 7.14% [16]. - **Industry Data**: The inventory in Xinjiang increased by 28.7%, the industrial inventory increased by 0.9%, the import volume decreased by 10.0%, and the cotton shipment volume out of Xinjiang increased by 22.6%. The textile and clothing retail and export data showed growth [16].

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $76.5 million for Q2 2025, with $8.3 million generated from Montana Renewables, indicating strong performance despite a full month turnaround at the Shreveport facility [5][10][28] - Operating costs were reduced by $42 million in the first half of 2025 compared to the same period in 2024, despite a $7 million increase in natural gas and electricity costs [8][24] - Specialty product margins increased to over $66 per barrel, reflecting improved operational efficiency [24][30] Business Line Data and Key Metrics Changes - The Specialty Products and Solutions segment generated $66.8 million of adjusted EBITDA, with sales volume exceeding 20,000 barrels per day for the third consecutive quarter [24][26] - The Performance Brands segment reported $13.5 million in adjusted EBITDA, driven by strong volume growth, particularly in the TruFuel brand [27] - Montana Renewables segment adjusted EBITDA with tax attributes was $16.3 million, up from $8.7 million in the prior year, showcasing resilience in a challenging market [28][29] Market Data and Key Metrics Changes - The renewable diesel industry is currently facing low quarterly index margins, but Montana Renewables managed to generate positive adjusted EBITDA due to its competitive advantages [10][14] - The proposed Renewable Volume Obligation (RVO) for 2026 is expected to increase demand for biomass-based diesel, potentially leading to improved margins [19][20][76] Company Strategy and Development Direction - The company is focused on deleveraging and managing its debt, with a target of reaching $800 million in restricted group debt [22][40] - The MAX SAF 150 project is on track to start in 2026, aiming to produce 120 million to 150 million annual gallons of sustainable aviation fuel (SAF) [12][31] - The company is actively pursuing monetization of production tax credits, with expectations of completing these transactions in the near future [66][91] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for the renewable diesel market, anticipating margin recovery as regulatory clarity improves [73][76] - The company is optimistic about the potential for increased production and improved margins in 2026, contingent on the finalization of the RVO [19][76] Other Important Information - The company has successfully reduced operational costs and improved efficiency, with a focus on water treatment and operational learning [46][48] - The company does not expect tariffs to significantly impact its specialties business due to its U.S.-based manufacturing and supply chain [27] Q&A Session Summary Question: What are the updated thoughts on mid-cycle earnings for renewable diesel? - Management indicated that mid-cycle earnings could return to historical levels of $1.50 to $2.00 per gallon index margin, with potential adjusted EBITDA of $140 million to $150 million at $1.50 margins [35][36] Question: Can you discuss the path to further debt pay down and potential future divestitures? - Management highlighted that they have made significant progress on debt reduction and are considering strategic asset sales as part of their deleveraging strategy [39][40] Question: What types of improvements have driven cost reductions in operations? - Management noted that significant improvements in water treatment and operational efficiency have contributed to reduced costs [46][48] Question: How does the company view the attractiveness of different regions for SAF? - Management emphasized the flexibility to serve various markets, including the Midwest and California, and highlighted the potential for partnerships in Canada [50][54] Question: What is the status of PTC monetization? - Management confirmed that they are in the process of finalizing term sheets for PTCs and expect to complete these transactions soon [66][91]

Core Viewpoint - PBF Energy reported a mixed performance in Q2 2025, with non-GAAP earnings per share of $(1.03), surpassing analyst expectations, but both earnings and revenue declined year-over-year, with revenue down 14.4% [1][2] Financial Performance - Non-GAAP EPS was $(1.03), better than the estimate of $(1.26) but a 90.7% decrease from $(0.54) in Q2 2024 [2] - Revenue was $7.48 billion, exceeding estimates by over $500 million, but down from $8.74 billion in Q2 2024 [1][2] - Income from operations was $43 million, a recovery from a loss of $(74.6) million in the previous year [2] - EBITDA decreased by 39.9% year-over-year, reflecting operational challenges [2] - Gross refining margin per barrel was $8.38, a slight increase from $8.12 in Q2 2024 [2] Operational Challenges - The Martinez refinery's partial shutdown significantly impacted production, averaging 845,800 barrels per day, down from 926,700 barrels per day in Q2 2024 [5] - West Coast throughput dropped to 203,500 barrels per day from 296,700 barrels per day year-over-year, with gross margin per barrel turning negative due to outages and compliance costs [5][6] - Operational expenses per barrel increased to $7.96 from $6.94 in Q2 2024, with West Coast expenses particularly high at $15.73 per barrel [6] Market Dynamics - Brent crude oil prices averaged $67.70 per barrel, down from $85.02 in Q2 2024, affecting overall performance [7] - RIN costs rose significantly from $3.38 to $6.14 per barrel-equivalent, inflating compliance costs, especially in California [8] - California is projected to need over 250,000 barrels per day of gasoline imports due to refinery closures, with PBF's refineries expected to be essential suppliers [9] Strategic Initiatives - The company is focusing on operational efficiency, cost containment, and restoring damaged assets, with a target of over $200 million in annualized savings from the RBI initiative [4] - Management expects full operations at the Martinez facility to resume by year-end 2025, contingent on regulatory and supply chain timelines [6][12] Financial Position - Total debt increased to $2.39 billion as of June 30, 2025, from $1.46 billion at the end of 2024, with a total debt to capitalization ratio rising to 31% [11] - The company maintained its quarterly dividend at $0.275 per share despite recent losses [11][14] Future Outlook - For Q3 2025, management forecasts throughput of 865,000–915,000 barrels per day, an increase from Q2 2025 but still below last year's levels [12] - Full-year 2025 capital expenditure guidance remains at $750–775 million, excluding Martinez repairs [12] - Management did not provide formal forward earnings guidance for fiscal 2025, citing ongoing market volatility as a key concern [13]

1. Report Industry Investment Ratings No investment ratings are provided in the reports. 2. Core Views of the Reports 2.1 Oils and Fats - Palm oil: With the release of MPOA production data and potential inventory decline at the end of the month, crude palm oil futures may break through previous highs. However, due to the expected seasonal increase in July production, beware of the risk of price pull - back around the MPOB report. The domestic Dalian palm oil futures market may continue to rise in the short - term [1]. - Soybean oil: The US Senate passed a fiscal spending bill including 45Z tax credits, which is expected to boost soybean oil consumption if passed by the House and signed by the President. Domestically, high factory operating rates have increased inventory, but the selling pressure on oil mills is not large, and the decline is expected to be limited [1]. 2.2 Corn - The current corn price is stable but lacks upward momentum due to continuous import auctions. In the medium - term, supply is tight, imports are low, and consumption is increasing, which may support price increases. Short - term operations are recommended, paying attention to policy auctions [3][5]. 2.3 Meal - US soybeans have strengthened technical support and rebounded. Brazilian soybean prices are rising. Currently, domestic soybean and soybean meal inventories are rising, but there is no significant inventory pressure on soybean meal. The supply is expected to be high, and attention should be paid to demand [6]. 2.4 Pork - The spot price of live pigs is oscillating strongly. The market is expected to be strong in the short - term, but the pressure on the 09 contract is increasing, and attention should be paid to the pressure above 14,500 [9]. 2.5 Sugar - The increase in the ethanol blending ratio in Brazilian gasoline has supported the rebound of raw sugar prices, but the global supply is loose, and the rebound is limited. Domestically, the market sentiment is positive, but considering future imports, the market may turn bearish after the rebound [12]. 2.6 Cotton - The short - term supply of old - crop cotton is tight, but the long - term supply is sufficient. The downstream industry is weakening, and the demand is weak. Cotton prices are expected to fluctuate within a range [14]. 2.7 Eggs - The supply of eggs is sufficient, demand is average, and downstream procurement is cautious. Egg prices are expected to be stable first, decline slightly in the short - term, and then stabilize [15]. 3. Summary by Related Catalogs 3.1 Oils and Fats - **Prices**: On July 3, the spot price of Jiangsu first - grade soybean oil was 8,290 yuan/ton, up 0.36% from the previous day; the futures price of Y2509 was 7,994 yuan/ton, down 0.30%. The spot price of Guangdong 24 - degree palm oil was 8,560 yuan/ton, up 1.18%; the futures price of P2509 was 8,478 yuan/ton, up 0.45%. The spot price of Jiangsu fourth - grade rapeseed oil was 9,830 yuan/ton, up 1.03%; the futures price of O1509 was 9,618 yuan/ton, unchanged [1]. - **Spreads**: The soybean oil 09 - 01 spread was 20 yuan/ton, down 54.55%; the palm oil 09 - 01 spread was 0 yuan/ton, up 100.00%; the rapeseed oil 09 - 01 spread was 65 yuan/ton, up 6.15% [1]. 3.2 Corn - **Prices**: On July 3, the futures price of corn 2509 was 2,363 yuan/ton, unchanged; the futures price of corn starch 2509 was 2,731 yuan/ton, unchanged [3]. - **Market situation**: In the Northeast, the remaining grain is scarce, and prices are firm; in North China, the shipment volume has increased slightly, and deep - processing prices are stable with partial declines. The overall demand is resilient, but wheat substitution limits price increases [3]. 3.3 Meal - **Prices**: On July 3, the spot price of Jiangsu soybean meal was 2,840 yuan/ton, unchanged; the futures price of M2509 was 2,958 yuan/ton, up 0.48%. The spot price of Jiangsu rapeseed meal was 2,500 yuan/ton, up 1.21%; the futures price of RM2509 was 2,601 yuan/ton, up 0.89% [6]. - **Market situation**: US soybean prices have rebounded, and Brazilian soybean prices are rising. Domestic soybean and soybean meal inventories are rising, and the supply is expected to be high [6]. 3.4 Pork - **Prices**: On July 3, the futures price of the main live - pig contract was 830 yuan/ton, up 9.21%. The spot price in Henan was 15,200 yuan/ton, up 100 yuan/ton [9]. - **Market situation**: The inventory of secondary - fattened pigs is increasing, the slaughter procurement is more difficult, and the spot price is rising. The market sentiment is positive in the short - term, but the pressure on the 09 contract is increasing [9]. 3.5 Sugar - **Prices**: On July 3, the futures price of sugar 2601 was 5,576 yuan/ton, down 0.07%; the futures price of sugar 2509 was 5,767 yuan/ton, up 0.02%. The ICE raw sugar main contract was 16.37 cents/pound, up 5.21% [12]. - **Industry situation**: The national sugar production and sales have increased year - on - year, and the inventory has decreased [12]. 3.6 Cotton - **Prices**: On July 3, the futures price of cotton 2509 was 13,785 yuan/ton, down 0.14%; the futures price of cotton 2601 was 13,785 yuan/ton, down 0.25%. The ICE US cotton main contract was 68.43 cents/pound, down 0.31% [14]. - **Industry situation**: The inventory in the north is decreasing, the industrial inventory is slightly down, and the import volume has decreased. The downstream inventory is increasing, and the processing profit is decreasing [14]. 3.7 Eggs - **Prices**: On July 3, the futures price of the egg 09 contract was 3,690 yuan/500KG, up 0.33%; the futures price of the egg 08 contract was 3,565 yuan/500KG, up 0.59%. The egg - producing area price was 2.60 yuan/jin, unchanged [15]. - **Market situation**: The supply of eggs is sufficient, demand is average, and prices are expected to be stable with a slight decline in the short - term [15].

Group 1 - The domestic futures market for oilseeds showed a positive trend, with soybean oil futures experiencing a significant increase, reaching a peak of 7998.00 yuan/ton, marking a rise of 2.57% [1] - The rise in soybean oil prices is attributed to geopolitical tensions in the Middle East, which have led to a surge in international crude oil prices, alongside favorable U.S. biodiesel policies [1][2] - The U.S. Environmental Protection Agency proposed higher biodiesel blending requirements for 2026 and 2027, set at 24.02 billion gallons and 24.46 billion gallons respectively, exceeding industry expectations and supporting the bullish sentiment in the soybean oil market [1][2] Group 2 - Despite an increase in domestic soybean oil inventory by 70,000 tons, which may exert downward pressure on prices, current stock levels remain low compared to historical averages [2] - Market activity has been relatively subdued, with weaker food and downstream restaurant consumption observed in June, leading to cautious market sentiment regarding future supply [2]

Report Summary 1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints - The short - term prices of soybean meal, soybean oil, and palm oil futures are all expected to be oscillating on the strong side, but the medium - term trends are all oscillating. However, the continued rebound space for soybean meal futures prices is limited, and the long - term supply of soybean meal is expected to be loose, which still exerts pressure on long - term prices [5][6]. 3. Summary by Variety Soybean Meal (M) - **Viewpoints**: The short - term, medium - term, and intraday views are all oscillating on the strong side, with the reference view also being oscillating on the strong side [5][6]. - **Core Logic**: The extension of the US Clean Fuel Tax Credit 45Z to December 31, 2031, may maintain the demand for soybean oil as a raw material in the renewable diesel industry. After the price difference between domestic and foreign soybeans is repaired, a linkage market emerges. Although the domestic oil mill operating rate is gradually recovering, the pressure - vehicle phenomenon still exists, and the short - term spot supply recovery rhythm is slow, which still supports the spot market. The long - term supply is expected to be loose, which still pressures long - term prices. The short - term soybean meal futures price is oscillating on the strong side, but the continued rebound space is limited [5]. - **Influencing Factors**: Import arrival rhythm, customs clearance inspection, North American spring sowing weather, oil mill operation rhythm, and stocking demand [6]. Palm Oil (P) - **Viewpoints**: The short - term, medium - term, and intraday views are all oscillating on the strong side, with the reference view also being oscillating on the strong side [7]. - **Core Logic**: Indonesia will raise the special export tax on crude palm oil from 7.5% of the current reference price to 10% starting from May 17, which aims to raise more funds for the country's biodiesel blending and makes the implementation of B40 more likely. The Malaysian palm oil price has rebounded from the previous inventory pressure, boosting the domestic palm oil futures price. The short - term palm oil futures price is oscillating on the strong side [7]. - **Influencing Factors**: Malaysian palm oil production and exports, Indonesian exports, main producing countries' tariff policies, domestic arrivals and inventory, and substitution demand [6]. Soybean Oil - **Viewpoints**: The short - term, medium - term, and intraday views are all oscillating on the strong side, with the reference view also being oscillating on the strong side [6]. - **Influencing Factors**: US tariff policies, US soybean oil inventory, biodiesel demand, domestic oil mill inventory, and channel stocking demand [6].

Summary of The Andersons (ANDE) Conference Call Company Overview - The Andersons is a diversified agribusiness operating in grain trading, ethanol production, and plant nutrients, with a strong presence in the Eastern Corn Belt and recent expansion into the Western Corn Belt through the Skylin grain investment [2][6] Key Points and Arguments Leadership Transition - CEO Bill Krueger has been in the role since October, succeeding Pat Bo, and has been with the company since the Lansing acquisition [3] - The company has tripled in size since January 1, 2019, indicating significant growth and transformation [3] Business Segments and Strategy - The Andersons has combined its nutrient business with its trade group to enhance operational efficiency [5] - The company has adopted a more asset-light model since 2019, allowing for greater flexibility and nimbleness in operations [7][8] - The Skylin investment has filled gaps in the company's asset footprint, particularly in Southwest Kansas and the Texas Panhandle [6][21] Market Dynamics - The wheat market is currently balanced, with the U.S. showing a slight oversupply at a carryout of 1.6 million bushels [10][11] - Global corn demand is well-structured, but competition from Milo and wheat is affecting corn demand in the U.S. [11][12] - Fertilizer demand remains high despite a weaker financial position for some farmers, attributed to precision agriculture practices [14][15] Tariffs and Trade - Recent changes to tariffs and port fees have reduced risks for The Andersons, particularly regarding exports from the Great Lakes [18][20] - The company is well-positioned to navigate the current tariff environment, especially concerning fertilizer and wheat imports [18] Financial Performance and Outlook - The Skylin investment is expected to contribute $30 million to $40 million in EBITDA on a run-rate basis [25] - Ethanol margins are expected to improve through Q2 and Q3, driven by increased gasoline demand and potential E15 mandates [31][32] - The company anticipates a stable inventory level for ethanol, similar to the previous year, with a positive outlook on exports [36] Renewable Diesel and Feedstock Opportunities - The Renewable Volume Obligation (RVO) is expected to drive demand for feedstocks, positively impacting The Andersons' renewable diesel feedstock business [40][41] - The company has a target to increase its renewable diesel feedstock trading from 1.5 billion pounds to 2 billion pounds [42] Capital Expenditure and Growth Strategy - The company plans to invest approximately $200 million in CapEx for 2025, focusing on efficiency improvements and potential acquisitions [52] - The current environment is seen as favorable for acquisitions, with a preference for larger deals (doubles and triples) rather than smaller ones [53][54] Key Milestones and Monitoring - Investors should monitor the growing season, proposed legislation, and the company's carbon sequestration permit filing in Indiana [63][64] - The company is focused on optimizing its portfolio and addressing underperforming profit centers [66][67] Additional Important Insights - The Andersons has a robust internal growth project pipeline, with significant investments planned for the Port of Houston and other projects [51] - The company is considering share repurchase options, balancing this with potential acquisition opportunities [59][60] This summary encapsulates the key discussions and insights from The Andersons' conference call, highlighting the company's strategic direction, market dynamics, and financial outlook.

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]