Financial Data and Key Metrics Changes - For Q2 2025, the company reported a net loss of $72.2 million or $1.09 per share, compared to a loss of $24.4 million or $0.38 per share in Q2 2024, reflecting a significant increase in losses [16][19] - Revenue for the quarter was $552.8 million, down 10.7% year-over-year, primarily due to exiting ethanol marketing and placing the Fairmont ethanol asset on care and maintenance [18][19] - Adjusted EBITDA for Q2 2025 was $16.4 million, compared to $5 million in Q2 2024, indicating improved operational performance despite the overall revenue decline [19] Business Line Data and Key Metrics Changes - The company has focused on core operations and has executed several non-core asset sales, including the GP Ferrelson joint venture, which has improved liquidity and operational focus [12][13] - The operational execution has led to 99% capacity utilization across the fleet of operating assets, with the highest ethanol yields in company history [24][26] Market Data and Key Metrics Changes - The market has seen improvements due to strong ethanol exports and supportive policies regarding renewable volume obligations, which have expanded ethanol crush margins [29][30] - The company is currently 65% crushed for Q3, indicating strong operational performance and market conditions [29][100] Company Strategy and Development Direction - The company is narrowing its focus to core operations and enhancing profitability through a carbon strategy, with significant progress in constructing CCS infrastructure [9][10] - The recent legislation, including the One Big Beautiful Bill Act, has extended the 45Z clean fuel production tax credit through 2029, positively impacting the company's strategic investments [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to improve profitability and cash flows, particularly with the anticipated startup of carbon monetization in Q4 2025 [33][39] - The company expects to achieve an annualized EBITDA contribution of over $150 million from its decarbonization strategy by 2026 [12][49] Other Important Information - The company has successfully extended the maturity of its junior mezzanine notes and is evaluating various financing solutions to support long-term growth [14][15] - Continuous improvement initiatives have led to a $50 million cost reduction target being met, with further efficiencies being identified [12][34] Q&A Session All Questions and Answers Question: Can you help frame the EBITDA potential in the back half of the year and into 2026? - Management indicated a stronger EBITDA margin outlook supported by rising corn oil prices and strong ethanol exports, with carbon monetization expected to contribute $20-25 million in Q4 [39] Question: What was the thought process behind the sale of the stake in the Darrelson JV? - The asset was deemed non-core, and data-driven decisions indicated it was sensible to exit at this time [41][42] Question: Can you clarify cash flows and the impact of RIN sales? - The $22.6 million from RIN sales was included in operating cash, and the proceeds from the Darrelson sale were collected in July, contributing positively to Q3 cash flow [46][47] Question: What is the expected impact of the 45Z credits? - The carbon opportunity has increased to $150 million for 2026 due to favorable policy changes, with all plants expected to qualify for the 45Z tax credits [49][51] Question: How should investors think about the capital structure and cash flows from carbon monetization? - Significant cash flows from carbon monetization are expected to accrue directly to the company, providing free cash flows for capital allocation [55][58] Question: What is the current state of the export market? - The export market is strong, with projections to reach 2.1 billion gallons, supported by increased demand from Canada, India, and the EU [108][110]

Financial Data and Key Metrics Changes - The company reported a net loss of $72.9 million or a loss of $1.14 per share for Q1 2025, compared to a net loss of $51.4 million or $0.81 per share in Q1 2024 [23] - Revenue for the quarter was $601.5 million, up 0.7% year over year [24] - Adjusted EBITDA excluding restructuring charges was a loss of $24.2 million, compared to a negative $21.5 million in Q1 last year [26] - SG&A totaled $42.9 million, an increase of $11.1 million from the prior year due to restructuring and severance charges [27] Business Line Data and Key Metrics Changes - The company achieved a record 100% utilization rate across its nine operating plants, demonstrating strong asset performance [25] - The anticipated consolidated SG&A run rate is expected to decline from $118 million in 2024 to approximately $93 million by year-end 2025 [8][27] - The company has achieved $30 million in annualized cost savings and expects an additional $15 million from a recently announced ethanol marketing partnership [7] Market Data and Key Metrics Changes - U.S. ethanol exports are expected to surpass last year's record of nearly 2 billion gallons in 2025 [18] - Ethanol margins have strengthened heading into Q2 and Q3, supported by firmer corn oil fundamentals and anticipated increases in renewable volume obligations [18] - Current ethanol inventory levels are at 25 million barrels, with expectations to drop towards 23 million as the driving season begins [81] Company Strategy and Development Direction - The company is focused on returning to sustained profitability through disciplined execution and operational excellence [5][6] - A strategic marketing partnership with EcoEnergy has been established to enhance scale and optimize transportation and marketing economics [19] - The company is pausing its clean sugar technology initiative to maximize ethanol production and improve profitability at the Shenandoah site [15][108] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that performance has not met expectations but is committed to improving operational efficiency and profitability [5] - The company is optimistic about the carbon platform and is actively engaged in monetizing carbon credits [31][33] - Management expects to achieve positive EBITDA for the remainder of the year based on current market conditions and actions taken [34] Other Important Information - The company has executed a $30 million line of credit to enhance liquidity and is actively pursuing non-core asset sales [28][71] - Capital expenditures in Q1 were $16.7 million, with expectations of approximately $20 million for the remainder of 2025 [29] - The company is undergoing a strategic review, considering various paths including a potential sale or asset divestitures [32] Q&A Session Summary Question: Can you elaborate on the hedging framework and its reestablishment? - Management emphasized that hedging is a good practice for managing risk and is based on market opportunities, with a systematic approach supported by analytics [39][41] Question: What is the status of the CEO search? - The process is ongoing, nearing final stages, with a focus on candidates who can bring relevant industry experience [44] Question: Can you provide updates on carbon capture construction timelines? - Construction is on track for early Q4 startup, with no anticipated major delays [48] Question: What are the impacts of potential tariffs on product exports? - Currently, there has been no adverse impact from tariffs, and the company is optimistic about potential trade opportunities [49][52] Question: How is the company addressing the protein market dynamics? - The domestic protein market is expected to be flat, but the company is focusing on higher-margin segments like pet food and aqua feed [62]

Financial Data and Key Metrics Changes - The company reported a net loss of $72.9 million or a loss of $1.14 per share for Q1 2025, compared to a net loss of $51.4 million or $0.81 per share in Q1 2024 [23] - Revenue for the quarter was $601.5 million, up 0.7% year over year [24] - Adjusted EBITDA excluding restructuring charges was a loss of $24.2 million, compared to a negative $21.5 million in Q1 last year [26] - SG&A totaled $42.9 million, an increase of $11.1 million from the prior year due to restructuring and severance charges [27] Business Line Data and Key Metrics Changes - The company achieved a record 100% utilization rate across its nine operating plants, demonstrating strong asset performance [25] - The anticipated consolidated SG&A run rate is expected to decline from $118 million in 2024 to approximately $93 million by year-end 2025 [8][27] - The company has achieved $30 million in annualized cost savings and expects to reach a total of $50 million in cost reductions [6][7] Market Data and Key Metrics Changes - U.S. ethanol exports are expected to surpass last year's record of nearly 2 billion gallons in 2025 [18] - Ethanol market fundamentals showed typical seasonal weakness in Q1, but margins have strengthened heading into Q2 and Q3 [17] - Current ethanol inventory levels are at 25 million barrels, with expectations to drop towards 23 million as the driving season begins [81] Company Strategy and Development Direction - The company is focused on returning to sustained profitability and has executed a zero-based approach to its cost structure [5][6] - A strategic marketing partnership with EcoEnergy has been established to enhance scale and optimize transportation and marketing economics [19] - The company is pausing its clean sugar technology initiative to maximize ethanol production and improve operational efficiency [15][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive EBITDA for the remainder of the year based on current market conditions and actions taken [34] - The carbon strategy remains on track, with construction of carbon compression infrastructure advancing as planned [30] - Management acknowledged the challenges faced in the protein business but remains committed to executing the strategy [91] Other Important Information - The company has strengthened its liquidity position, with $126.6 million in cash equivalents and restricted cash at quarter-end [28] - Capital expenditures in Q1 were $16.7 million, with expectations for the remainder of 2025 to be around $20 million [29] - The company is actively engaged in a strategic review, considering various paths including a company sale or asset divestitures [32] Q&A Session Summary Question: Can you provide insight into the hedging framework and its reestablishment? - Management emphasized that hedging is a good practice for managing risk and that they are locking in margins when market opportunities arise [39][41] Question: What is the status of the CEO search? - The process is ongoing, nearing final stages, with a focus on candidates who can bring relevant industry experience [44] Question: Can you provide updates on carbon capture construction timelines? - Construction is on track for early Q4 startup, with no major delays anticipated [48] Question: What are the potential impacts of tariffs on product exports? - Currently, there has been no adverse impact from tariffs, but the situation remains unpredictable [49][52] Question: How is the company addressing the protein market dynamics? - The domestic protein market is expected to be flat, but the company is focusing on higher-margin segments like pet food and aquaculture [62]