Financial Data and Key Metrics Changes - The net income per share for Q3 2025 was $0.71, an increase from $0.69 in Q3 2024, reflecting strong performance despite lower prices for ethanol and distillers grains [5][11] - Cash, cash equivalents, and short-term investments totaled approximately $335 million, maintaining a strong financial position with no bank debt [5][11] Business Line Data and Key Metrics Changes - Ethanol sales volumes reached 78.4 million gallons, up from 75.5 million gallons in Q3 2024, while the average selling price decreased to $1.73 per gallon from $1.83 [10] - Dried distillers grains sales volumes were approximately 160,000 tons, with an average selling price of $139.93 per ton, down from 170,000 tons and $147.14 per ton in the prior year [10] - Corn oil sales volumes increased by approximately 17% to 27.4 million pounds, with an average selling price rising by approximately 36%, leading to a 60% increase in sales revenue for corn oil [10] Market Data and Key Metrics Changes - U.S. ethanol exports were approximately 10% ahead of the 2024 pace, with exports 14% higher than the first eight months of 2024 [13] - The USDA projects that corn production in South Dakota and Illinois for the 2025-2026 harvest season will be among the highest in recent years, favoring lower input prices [14] Company Strategy and Development Direction - The company is focused on solidifying its core business of ethanol production and is progressing on the expansion of the One Earth Energy facility to 200 million gallons per year, expected to be completed in 2026 [4][8] - REX is actively engaged in evaluating potential benefits from the 45Z tax credits and is working on its carbon intensity score to qualify for these credits [5][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational excellence and strategic investments, which have led to superior results and a strong balance sheet [5][12] - The company expects the fourth quarter to generate a higher net profit than the previous year's fourth quarter, positioning itself well for growth in 2026 [15] Other Important Information - The company has invested approximately $155.8 million in carbon capture and ethanol expansion projects, remaining within a combined budget range of $220 million to $230 million for both initiatives [8][9] Q&A Session Summary Question: Thoughts on key hurdles and timing for the 45Z tax credit program - Management is awaiting guidelines from the Treasury and is reviewing calculations with experts, hoping to provide updates in the next quarter [17] Question: Impact of tariffs and crush spreads on the industry - Management noted that tariffs initially impacted exports to Mexico and Canada but have led to increased ethanol exports to Europe and other countries [19][20] Question: Update on the carbon sequestration project and permitting process - Management indicated that the moratorium on pipelines will end on July 1, allowing them to apply for permits thereafter [22] Question: Potential for partnerships regarding carbon capture - Management is focusing on the first well and has been in contact with potential partners but will not negotiate until permits are secured [30]

Financial Data and Key Metrics Changes - The net income per share for Q3 2025 was $0.71, an increase from $0.69 in Q3 2024, reflecting strong performance despite lower prices for ethanol and distillers grains [11] - Gross profit for Q3 2025 was $36.1 million, down from $39.7 million in Q3 2024, primarily due to lower prices [11] - Cash, cash equivalents, and short-term investments totaled approximately $335 million, maintaining a strong financial position with no bank debt [5][11] Business Line Data and Key Metrics Changes - Ethanol sales volumes reached 78.4 million gallons in Q3 2025, up from 75.5 million gallons in Q3 2024, while the average selling price decreased to $1.73 per gallon from $1.83 [10] - Dried distillers grains sales volumes were approximately 160,000 tons, with an average selling price of $139.93 per ton, down from 170,000 tons and $147.14 per ton in the prior year [10] - Corn oil sales volumes increased by approximately 17% to 27.4 million pounds, with an average selling price rising by approximately 36%, leading to a 60% increase in sales revenue for corn oil [10] Market Data and Key Metrics Changes - U.S. ethanol exports were approximately 10% ahead of the 2024 pace, with exports 14% higher than the first eight months of 2024 [13] - The USDA projects that corn production in South Dakota and Illinois for the 2025-2026 harvest season will be among the highest in recent years, favoring lower input prices [13] Company Strategy and Development Direction - The company is focused on solidifying its core business of ethanol production and expanding its One Earth Energy facility to 200 million gallons per year, expected to be completed in 2026 [4][5] - REX is actively engaged in evaluating potential benefits from the 45Z tax credits and is working on its carbon intensity score to qualify for these credits [5][12] - The company aims to leverage near-term opportunities provided by the 45Z tax credit program to enhance earnings as its ethanol production expansion and carbon sequestration facilities come online [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fourth quarter, expecting to generate a higher net profit than the previous year's fourth quarter [14] - The company anticipates continued growth and improved performance in 2026, supported by a strong balance sheet and expanding business opportunities [14] - Management highlighted the importance of operational excellence and strategic investments in driving superior results [5][12] Other Important Information - The company has invested approximately $155.8 million in carbon capture and ethanol expansion projects, remaining within a combined budget range of $220 million to $230 million for both initiatives [8][9] - REX has maintained profitability for 21 consecutive quarters, reflecting the team's discipline and operational excellence [12] Q&A Session Summary Question: Thoughts on key hurdles and timing for the 45Z tax credit program - Management is awaiting guidelines from the Treasury and is reviewing facts with experts to determine potential tax credits, with updates expected next quarter [17] Question: Impact of tariffs and crush spreads on the industry - Management noted that tariffs initially impacted exports but have led to increased ethanol exports to Europe and other countries, with expectations for continued growth in 2026 [19][20] Question: Status of the carbon sequestration project and permitting process - Management indicated that the Illinois Commerce Commission is working on pipeline requirements, and the moratorium will end on July 1, allowing applications to proceed [21][22] Question: Potential for partnerships in carbon capture - Management is focusing on the first well's operation before negotiating contracts for carbon sequestration with third parties [30]

Financial Data and Key Metrics Changes - The company ended the quarter with $108 million in cash and cash equivalents, with combined operating revenue, interest, and investment income of $43.6 million, compared to approximately $2 million in the same quarter last year, marking an increase of approximately $41 million [11][12] - The loss from operations was $3.7 million, while non-GAAP adjusted EBITDA was a positive $6.6 million, an increase of approximately $23 million from last year's adjusted EBITDA of negative $16.7 million [11][12] - Gevo North Dakota generated income from operations of $12.3 million and a positive non-GAAP adjusted EBITDA of $17.8 million [11] Business Line Data and Key Metrics Changes - Gevo North Dakota is now a core earnings engine, demonstrating reliable energy production, efficient carbon capture, and consistent monetization of clean fuel production credits [13] - Gevo R&G generated income from operations of $0.5 million and positive non-GAAP adjusted EBITDA of $2.7 million [11] Market Data and Key Metrics Changes - The company successfully sold all of its 2025 Section 45(z) clean fuel production credits for a total of $52 million, with net proceeds of approximately $29 million received so far [13][14] - The company expects to grow its carbon dioxide removal (CDR) sales from $1 million in Q2 to $3-$5 million by the end of 2025 [17] Company Strategy and Development Direction - The company aims to maximize adjusted EBITDA from existing assets and plans to build a jet fuel plant at Gevo North Dakota, which could add an additional adjusted EBITDA uplift of about $150 million [9][10] - The company is focusing on monetizing carbon value through various methods, including selling carbon credits and production tax credits, as part of its business model [6][7] - The company is also working on expanding its carbon capture and sequestration capabilities and optimizing energy use at its facilities [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business environment in North Dakota, highlighting its pro-agriculture and pro-energy stance, which aligns well with the company's operations [6] - The management believes that the integration of ethanol production and carbon sequestration is crucial for achieving the best economics and carbon scores for jet fuel [30] - The company anticipates that its operating cash flows will normalize and trend towards break-even or better in the coming quarters [15] Other Important Information - The company has implemented Verity, a digital carbon tracking and verification platform, at its Gevo North Dakota facility, which is expected to enhance transparency and trust in carbon accounting [21][22] - The company has partnered with Frontier Infrastructure Holdings to offer integrated carbon management solutions for ethanol producers [22] Q&A Session Summary Question: Can you elaborate on the incremental capital and steps required to optimize your operation and a reasonable timeline to achieve $110 million of EBITDA? - Management indicated that incremental capital is estimated to be around $15 million, focusing on debottlenecking the ethanol plant and optimizing energy use [34][35] Question: Can you elaborate on the DOE loan extension and how it increases the likelihood of DOE financing? - Management noted that the shift of the DOE loan guarantee to North Dakota is favorable due to the existing profitable operations and infrastructure [38][39] Question: Can you provide insight into the EBITDA drivers for next year? - Management highlighted that growth will primarily come from carbon sequestration capacity expansion and debottlenecking efforts [43][44] Question: How should we project the incremental CI improvement over the next number of quarters? - Management explained that the CI score is expected to drop due to the One Big Beautiful Bill, which will increase 45Z generation [75][76]

Financial Data and Key Metrics Changes - The company ended the quarter with $108 million in cash and cash equivalents, with combined operating revenue, interest, and investment income of $43.6 million, compared to approximately $2 million in the same quarter last year, marking an increase of approximately $41 million [11][12] - The loss from operations was $3.7 million, while non-GAAP adjusted EBITDA was a positive $6.6 million, an improvement of approximately $23 million from last year's negative $16.7 million [12][13] - Gevo North Dakota generated income from operations of $12.3 million and a positive non-GAAP adjusted EBITDA of $17.8 million [11][13] Business Line Data and Key Metrics Changes - Gevo North Dakota is now a core earnings engine, demonstrating reliable energy production and efficient carbon capture, contributing significantly to the company's financial performance [13][14] - Gevo R&G generated income from operations of $0.5 million and positive non-GAAP adjusted EBITDA of $2.7 million [11] Market Data and Key Metrics Changes - The company successfully sold all of its 2025 Section 45Z clean fuel production credits for a total of $52 million, with net proceeds of approximately $29 million received so far [13][14] - The company is expanding its carbon value derived from carbon capture and sequestration (CCS) and anticipates growth in carbon dioxide removal (CDR) credit sales from $1 million in Q2 to $3 million-$5 million by the end of 2025 [17][18] Company Strategy and Development Direction - The company aims to maximize adjusted EBITDA from existing assets and plans to build an ATJ-30 jet fuel plant at Gevo North Dakota, which is expected to add an additional adjusted EBITDA uplift of about $150 million [9][28] - The company is focusing on monetizing carbon value through various methods, including selling carbon credits and production tax credits, which are seen as key initiatives for growth [6][7][13] - The company is also working on expanding its carbon sequestration capacity and exploring partnerships for additional CO2 storage [66][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business environment in North Dakota, highlighting its pro-agriculture and pro-energy stance, which aligns well with the company's operations [6] - The management team believes that the integration of ethanol production and carbon sequestration is crucial for achieving the best economics and carbon scores for jet fuel [30] - The company expects to normalize operating cash flows and trend towards break-even or better in the coming quarters, supported by recurring monetization of tax credits and positive adjusted EBITDA generation [15] Other Important Information - The company has received a conditional commitment from the Department of Energy for financing, which is expected to be more favorable due to the existing operational assets in North Dakota [39][40] - The company is implementing Verity, a digital carbon tracking and verification platform, to enhance transparency and efficiency in carbon accounting [21][22] Q&A Session Summary Question: Can you elaborate on the incremental capital and steps required to optimize your operation and a reasonable timeline to achieve $110 million of EBITDA? - Management indicated that incremental capital is estimated to be around $15 million, focusing on debottlenecking the ethanol plant and optimizing energy use [34][35] Question: Can you elaborate on the DOE loan extension and how it increases the likelihood of financing? - Management noted that the shift of the loan guarantee to North Dakota is seen as a positive development, as the existing operational assets reduce the need for external financing [38][39] Question: Can you provide insight into the EBITDA drivers for next year? - Management highlighted that growth will primarily come from carbon sequestration capacity expansion and debottlenecking efforts, with a focus on maximizing carbon value [42][44] Question: How should we project the incremental CI improvement over the next quarters? - Management explained that the CI score is expected to drop due to the One Big Beautiful Bill, which will increase 45Z generation, and they are exploring additional decarbonization measures [71][74]

Financial Data and Key Metrics Changes - The company ended the quarter with $108 million in cash and cash equivalents, with combined operating revenue, interest, and investment income of $43.6 million, marking a significant increase from approximately $2 million in the same quarter last year [11][12] - The loss from operations was $3.7 million, while non-GAAP adjusted EBITDA was a positive $6.6 million, an improvement of approximately $23 million from last year's negative $16.7 million [11][12] - Gevo North Dakota generated income from operations of $12.3 million and a positive non-GAAP adjusted EBITDA of $17.8 million [11] Business Line Data and Key Metrics Changes - Gevo North Dakota has become a core earnings engine, demonstrating reliable energy production and efficient carbon capture, contributing significantly to the company's financial performance [12] - Gevo R&G generated income from operations of $0.5 million and positive non-GAAP adjusted EBITDA of $2.7 million [11] Market Data and Key Metrics Changes - The company successfully sold all of its 2025 Section 45(z) clean fuel production credits for a total of $52 million, with net proceeds of approximately $29 million received so far [12][13] - The company is expanding its carbon dioxide removal (CDR) credit sales, with expectations to grow from $1 million in Q2 to $3-$5 million by the end of 2025 [17] Company Strategy and Development Direction - The company aims to monetize carbon as a key initiative, viewing it as an important co-product that can unlock economics for growth products like jet fuel [5][8] - Plans to build a 30 million-gallon jet fuel plant (ATJ30) at Gevo North Dakota are underway, with expected adjusted EBITDA uplift of about $150 million from this addition [9][27] - The company is focusing on incremental expansions and optimizing existing operations before pursuing larger capital projects [8][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business environment in North Dakota, highlighting its pro-agriculture and pro-energy stance, which aligns well with the company's operations [5] - The management team believes that the integration of ethanol production and carbon sequestration will lead to better economics and carbon scores for jet fuel production [29] - The company anticipates steady improvement in cash generation and financial flexibility, with a credible pathway to break-even operating cash flow [15] Other Important Information - The company has implemented Verity, a digital carbon tracking and verification platform, at its Gevo North Dakota facility, which is expected to enhance transparency and efficiency in carbon accounting [20][22] - A strategic partnership with Frontier Infrastructure Holdings aims to offer integrated carbon management solutions for ethanol producers [22] Q&A Session Summary Question: Can you elaborate on the incremental capital and steps required to optimize your operation and a reasonable timeline to achieve $110 million of EBITDA? - Management indicated that incremental capital is estimated at around $15 million, focusing on debottlenecking the ethanol plant and optimizing energy use [33][34] Question: Can you elaborate on the DOE loan extension and how it increases the likelihood of DOE financing? - Management noted that the shift of the loan guarantee to North Dakota reflects the project's attractiveness due to existing profitable operations and reduced financing needs [36][38] Question: What are the EBITDA drivers for next year? - Management highlighted that improvements in carbon intensity scores and operational efficiencies will be key drivers, with a focus on maximizing carbon value [40][43] Question: How should we project the incremental CI improvement over the next quarters? - Management explained that the CI score is expected to drop due to provisions in the One Big Beautiful Bill, which will enhance credit generation [71][74] Question: Can you update on conversations with potential customers for carbon sequestration services? - Management confirmed ongoing discussions with companies interested in co-locating to utilize the sequestration capacity, which could enhance profitability [65][66]

Financial Data and Key Metrics Changes - For the first nine months of 2025, the company reported net earnings attributable to common stockholders of approximately $1.1 billion, or $6.39 per diluted share, with EBITDA and adjusted EBITDA both around $2.1 billion [19][21] - For the third quarter of 2025, reported net earnings were $353 million, or $2.19 per diluted share, with EBITDA and adjusted EBITDA both approximately $670 million [19][21] - The trailing 12-month net cash from operations was $2.6 billion, and free cash flow was $1.7 billion, with a free cash flow to adjusted EBITDA conversion rate of 65% [19][21] Business Line Data and Key Metrics Changes - The ammonia utilization rate for the first nine months of 2025 was 97%, with expectations to produce approximately 10 million tons of gross ammonia for the full year [12] - Significant progress was made in strategic initiatives, including the full utilization of expanded diesel exhaust fluid rail load-out capabilities, leading to record DEF shipments [12][13] Market Data and Key Metrics Changes - The global nitrogen supply-demand balance remained tight in Q3 2025, with robust demand from North America, India, and Brazil, while product availability was constrained due to low global inventories and outages [15][16] - The company anticipates that the global nitrogen supply-demand balance will remain constructive, with continued strong demand and constrained supply availability [15][16] Company Strategy and Development Direction - The company has embarked on a strategic plan to decarbonize its production network and become a leader in clean ammonia, achieving a 25% reduction in GHG emissions intensity from its original baseline [5][6] - The development of the world's largest ultra-low emissions ammonia plant at the Bluepoint complex in Louisiana is underway, with equity partners JERA and Mitsui [7][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's robust growth trajectory through the end of the decade, emphasizing the inelastic demand for nitrogen even during periods of weak grower profitability [9][10] - The management team highlighted the misconception in the market regarding the company's valuation, noting that CF Industries trades at a low cash flow multiple compared to its peers [10][11] Other Important Information - The company returned $445 million to shareholders in Q3 2025 and approximately $1.3 billion for the first nine months, with a share repurchase program that has repurchased 37.6 million shares [21][22] - An incident at the Yazoo City complex was reported, but all employees and contractors were safe, and the ammonia plant was not directly affected [3][56] Q&A Session Summary Question: Market conditions and mid-cycle expectations - Management acknowledged that current market conditions are above mid-cycle and expect to deliver full-year results well above mid-cycle due to strong demand and pricing dynamics [34][36] Question: Pricing premiums for blue ammonia - The company is currently achieving a premium of $20-$25 per ton for blue ammonia sold in Europe, which was not initially anticipated in the project's economics [39][40] Question: Potential risks in the nitrogen outlook - Management noted that while supply is constrained, demand continues to grow, and they do not foresee significant negative factors impacting the market [45][46] Question: Addressing the valuation disconnect - Management indicated that continued operational performance and share repurchases are key strategies to address the valuation gap perceived by investors [48][50] Question: Supply disruptions and demand strength - Management attributed the price strength to both supply disruptions and healthy demand, with expectations for continued strong demand in 2026 [61][66] Question: Lessons learned from past capacity expansions - The company has applied lessons learned from previous expansions to the Bluepoint project, including detailed engineering studies and modular construction approaches [67][70]

Financial Data and Key Metrics Changes - BHP reported a return of 20.6% on capital employed with a healthy underlying margin of 53% on EBITDA [35] - The company paid out US$5.6 billion in dividends, marking a total of over US$100 billion returned to shareholders over the past ten years [36][29] - The final dividend payout ratio for the year was set at 60% of underlying attributable profit, reflecting confidence in the business's strength [29] Business Line Data and Key Metrics Changes - Record production was achieved in Western Australian iron ore, maintaining its position as the lowest cost major iron ore producer globally for the sixth consecutive year [34] - BHP's overall copper production grew by 28% over the past three years, representing the largest absolute copper growth among major miners [34] - Copper now accounts for 45% of BHP's EBITDA, more than double the percentage from five years ago [36] Market Data and Key Metrics Changes - The company contributed nearly US$47 billion to the economies it operates in, with about US$10 billion in taxes and royalties [35] - BHP is pursuing growth in copper and potash, with significant projects in South Australia, Chile, and Canada [37] Company Strategy and Development Direction - BHP aims to focus on high-quality growth that drives value, with a strong capital allocation framework guiding investment decisions [22][21] - The company is strategically positioned to meet the increasing demand for commodities essential for sustainable development, such as copper and potash [33][34] - BHP emphasizes the importance of competitive tax policies to attract global investment, highlighting the need for Australia to remain competitive in the mining sector [59][41] Management's Comments on Operating Environment and Future Outlook - Management noted that the mining sector is competitive, and BHP is committed to improving its operational performance and safety culture [24][18] - The company recognizes the growing importance of critical minerals for national security and economic development, positioning itself to support these needs [85][88] - BHP is focused on decarbonization and has set a target to reduce its carbon footprint by 30% by 2030 [110] Other Important Information - BHP's commitment to creating social value is seen as a competitive advantage, helping to build community trust and attract talent [28] - The company is actively engaging with governments to address tax and royalty issues affecting its operations, particularly in Queensland [68][66] Q&A Session Summary Question: Impact of a proposed turnover tax on BHP and the mining industry - The Chair acknowledged the importance of competitive tax policies for attracting investment and emphasized the need for balance between government returns and investment incentives [58] Question: Concerns about the coal division's performance and tax burdens - Management highlighted the unsustainable tax burden on the BMA operations, indicating that current tax settings hinder investment in the coal business [66][69] Question: Status of iron ore sales and currency usage - BHP confirmed that less than 10% of its sales are conducted in currencies other than US dollars, primarily due to sales in China [76][80] Question: Implications of the recent Australia-US discussions on resource investments - Management noted that Australia is well-positioned to support US needs for critical minerals, particularly in copper production [88] Question: Dividend payment dates and operational performance - The Chair explained that variations in dividend payment dates are linked to the timing of financial results announcements [97] Question: Environmental concerns regarding koala habitats and energy consumption - Management assured that environmental considerations are integrated into decision-making processes, including commitments to decarbonization and habitat protection [110]

Financial Data and Key Metrics Changes - Ethanol sales volumes increased to 70.6 million gallons in Q2 2025 from 65.1 million gallons in Q2 2024, while the average selling price decreased to $1.75 per gallon from $1.79 [12] - Gross profit for Q2 2025 was $14.3 million, down from $19.8 million in Q2 2024, primarily due to lower sales prices for dry distiller grains [13] - Net income attributable to REX shareholders was $7.1 million or $0.43 per diluted share, compared to $12.4 million or $0.70 per diluted share in Q2 2024 [14] Business Line Data and Key Metrics Changes - Dry distiller grain sales volumes were approximately 148,000 tons with an average selling price of $143.63 per ton, down from 133,000 tons at $164.45 per ton in the prior year [12] - Modified distillers grain volumes totaled approximately 19,000 tons at an average selling price of $64.41 per ton [12] - Foreign oil sales volumes increased by approximately 14% year-over-year, with a 26% increase in prices leading to a 46% increase in sales dollars [13] Market Data and Key Metrics Changes - The U.S. corn crop is on track for a potential record harvest, which is expected to benefit REX [18] - Ethanol exports are running about 10% ahead of 2024 levels through June, with expectations for 2025 to set a new export record [17] Company Strategy and Development Direction - REX's strategy is guided by profit, position, and policy, focusing on sustainable long-term organic growth through ethanol expansion and carbon capture initiatives [15] - The company is positioned to maximize benefits from the 45Q and 45Z tax credits, which have been extended through 2029 [10][15] Management's Comments on Operating Environment and Future Outlook - Management anticipates better performance in the second half of 2025 compared to the first half, supported by favorable corn supply trends and steady demand [17] - The company remains confident in its core business outlook and is committed to executing its growth strategy while delivering long-term value to shareholders [18] Other Important Information - REX has invested approximately $126.7 million in carbon capture and ethanol expansion projects, remaining within a combined budget range of $220 million to $230 million [11] - The Board of Directors has authorized a two-for-one stock split, effective for shareholders of record as of September 8, 2025 [5] Q&A Session Summary Question: Can you discuss the event held at the One Earth Energy facility and its implications for local support? - The event was well attended by local officials and shareholders, enhancing community relations and support for growth projects [21][22] Question: Was the issue with the interconnection from the local utility resolved? - Yes, the issue has been resolved, and the company can now obtain utility directly from Amarin [23] Question: What is the outlook for co-products and ethanol margins in the second half? - The third quarter is expected to outperform the second quarter, with favorable feedstock availability and increasing ethanol exports [26][27] Question: What is the status of the CI score and potential credits without a carbon pipeline? - The company has not publicly disclosed its CI score due to unclear guidelines but is optimistic about potential tax credits [32][34] Question: Will the company be able to build the carbon pipeline soon after the expiration of the Illinois moratorium? - The goal is to proceed with construction after receiving necessary approvals, which could allow operations in 2026 [35][36] Question: What is the expected build time for the pipeline once approvals are received? - The pipeline is approximately 6.5 miles long, and construction would take a couple of months once permissions are granted [37][38]

Financial Data and Key Metrics Changes - Ethanol sales volumes increased to 70.6 million gallons in Q2 2025 from 65.1 million gallons in Q2 2024, while the average selling price decreased to $1.75 per gallon from $1.79 [12] - Gross profit for Q2 2025 was $14.3 million, down from $19.8 million in Q2 2024, primarily due to lower sales prices for dry distiller grains and higher shipping costs [13] - Net income attributable to REX shareholders was $7.1 million or $0.43 per diluted share, compared to $12.4 million or $0.70 per diluted share in Q2 2024 [14] Business Line Data and Key Metrics Changes - Dry distiller grain sales volumes were approximately 148,000 tons with an average selling price of $143.63 per ton, down from 133,000 tons at $164.45 per ton in the prior year [12] - Modified distillers grain volumes totaled approximately 19,000 tons at an average selling price of $64.41 per ton [12] - Foreign oil sales volumes increased by approximately 14% with a 26% increase in prices, leading to a 46% increase in sales dollars [13] Market Data and Key Metrics Changes - The U.S. corn crop is on track for a potential record harvest, which is expected to benefit REX [17] - Ethanol exports are running about 10% ahead of 2024 levels, with expectations for 2025 to set a new export record [16][17] Company Strategy and Development Direction - REX's strategy is guided by profit, position, and policy, focusing on sustainable long-term organic growth through ethanol expansion and carbon capture initiatives [15] - The company is positioned to maximize benefits from the 45Q and 45Z tax credits, enhancing the economics of operations and future earning potential [15][16] Management's Comments on Operating Environment and Future Outlook - Management anticipates better performance in Q3 2025 compared to Q2 2025, supported by favorable corn supply trends and steady demand, particularly from rising ethanol exports [16][17] - The company remains confident in its core business outlook and is committed to executing its growth strategy while delivering long-term value to shareholders [17] Other Important Information - REX announced a two-for-one stock split to reward shareholders and increase liquidity, effective for shareholders of record as of September 8, 2025 [5][6] - The company has invested approximately $126.7 million in carbon capture and ethanol expansion projects, remaining within a combined budget range of $220 million to $230 million [11] Q&A Session Summary Question: Can you discuss the event held at the One Earth facility and its implications for local support? - The event was well attended by local officials and shareholders, enhancing community relations and support for growth projects [20][21] Question: Was the issue with the interconnection from the local utility resolved? - Yes, the issue has been resolved, allowing for direct utility access [22] Question: What is the outlook for co-products and ethanol margins? - The third quarter is expected to be better than the second quarter, with strong corn oil production but weaker DDG prices relative to corn [24][27] Question: What is the status of the CI score and potential credits without a carbon pipeline? - The CI score has not been publicly discussed due to unclear guidelines, but the removal of Smart Farming from calculations may help improve the score [31][32] Question: If the Class six well is approved, will construction begin soon after the Illinois moratorium expires? - The goal is to begin construction soon after receiving all necessary permits [33][34] Question: What is the expected build time for the pipeline once approvals are received? - The pipeline construction is expected to take a couple of months once permissions are granted [35]

Financial Data and Key Metrics Changes - The company ended the quarter with $127 million in cash, cash equivalents, and restricted cash [12] - Combined operating revenue, interest, and investment income for the second quarter was $44.7 million, with income from operations at $5.8 million and non-GAAP adjusted EBITDA at $17.3 million [12][14] - For the first six months of 2025, net income grew by $20 million and non-GAAP adjusted EBITDA increased by $32 million compared to the same period last year [14] Business Line Data and Key Metrics Changes - Gevo North Dakota generated income from operations of $17.1 million and non-GAAP adjusted EBITDA of $24.2 million [13] - Gevo RNG generated income from operations of $1.5 million and non-GAAP adjusted EBITDA of $2.6 million [13] - The company sold $22 million worth of clean fuel production credits in the second quarter, contributing to the financial results [14][20] Market Data and Key Metrics Changes - U.S. jet fuel demand is projected to increase by 2.3 billion gallons per year over the next decade, while new refinery construction is not occurring [8][28] - The marketplace for carbon dioxide removal credits has exceeded $10 billion in recent years, reflecting nearly 40 million tons of CO2 removals [19] Company Strategy and Development Direction - The company is focused on deploying renewable resource-based jet fuel plants while improving profitability through existing operations [6][11] - The strategy includes leveraging current assets to enhance carbon credit sales and tax credit sales [11] - The company is translating its ATJ 60 plant design to a more cost-effective ATJ 30 design for deployment at the North Dakota site [9][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's progress and the potential for significant growth in the renewable jet fuel market [6][28] - The company aims to achieve a low carbon footprint while maintaining competitive production costs [8][11] - Management highlighted the importance of carbon credit sales as a co-product to enhance overall profitability [11][18] Other Important Information - The company has developed a software platform, Verity, for traceability and compliance reporting in the agriculture and renewable fuels sector [21][22] - The GIVO North Dakota facility has a total estimated sequestration capacity of up to 1 million metric tons of CO2 per year [19] Q&A Session Summary Question: What is holding back the monetization of biogas credits? - Management explained that the monetization of clean fuel production tax credits for ethanol has been successful, and they expect similar success for biogas credits in the future [34][36] Question: Can we expect a similar cadence for the RNG business? - Management confirmed that the transaction structure for monetizing tax credits for the RNG facility is similar to that of the ethanol facility [37] Question: Is the $10 million benefit per quarter from CFPC a base case? - Management indicated that the $10 million figure is conservative, and they expect to exceed this amount based on production levels [40][42] Question: How will the company achieve $30 million in CDR sales? - Management stated that growth in CDR sales will come from increased capacity utilization and market development [43][45] Question: How does the 45Z tax credit affect capital allocation in North Dakota? - Management noted that while the 45Z tax credit is beneficial, it does not significantly influence their capital allocation strategy for ATJ projects [58][60] Question: How many customers does Verity currently have? - Management reported that Verity has agreements with five ethanol customers and expects significant growth in this area [66][68] Question: What is the market opportunity for accommodating third-party volumes in CCS? - Management highlighted the potential for third-party CO2 volumes and the flexibility of their North Dakota site to accommodate additional capacity [90][92]