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 - 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]