The Zacks Oil and Gas - Refining & Marketing industry plays a vital role in turning crude and other feedstocks into fuels and everyday products, but it remains a tough space to navigate. Margins are highly volatile and swing with inventories, demand patterns, imports, and refinery utilization. Small shifts in crack spreads or light-heavy and sweet-sour differentials can quickly change profitability. Unplanned outages, seasonal demand changes, and uneven product consumption only add to the uncertainty. Risin ...

Green Plains (NasdaqGS:GPRE) Q4 2025 Earnings call February 05, 2026 09:00 AM ET Speaker7Good morning, and welcome to the Green Plains Inc. Fourth Quarter and Full Year 2025 Earnings Conference Call. Following the company's prepared remarks, instructions will be provided for Q&A. At this time, all participants are in a listen-only mode. I will now turn the call over to your host, Will Yeakel, Vice President and Treasurer. Will, please go ahead.Speaker9Welcome to the Green Plains Inc. Fourth Quarter 2025 ear ...

Bunge Global SA (NYSE:BG) is one of the noteworthy S&P 500 stocks Jim Cramer highlighted. Cramer called it an “important agricultural middleman,” as he said: At number eight, we have Bunge, that’s up nearly… 28% this month. It’s an important agricultural middleman. I don’t see a specific catalyst for the Bunge move, aside from some positive analyst commentary based on [an] improving outlook for the broader industry. Now, if you believe in ag recovery in the cards for 2026, maybe Bunge still looks pretty c ...

Core Insights - LanzaTech Global, Inc has announced a £600 million investment in the DRAGON II project to produce sustainable aviation fuel (SAF) and renewable diesel at Saltend Chemicals Park in Humberside, aiming to deliver approximately 80,000 tonnes of SAF and 8,000 tonnes of renewable diesel annually [1][2] - The project is expected to create around 300 skilled jobs during construction and 150 jobs during operation, contributing significantly to the UK's net-zero ambitions and energy security [1][3] Company Overview - LanzaTech is a leader in carbon management, utilizing a proprietary gas-fermentation platform to convert waste carbon into valuable products, including SAF and chemicals [5] - The company has established global partnerships, including collaborations with ArcelorMittal and IndianOil Company, to enhance industrial resilience and unlock economic value from carbon [5] Project Details - The DRAGON II facility is scheduled to begin construction in the second half of 2027 and is expected to be operational by 2030, reinforcing Humberside's position in industrial decarbonization [3][4] - The project is part of a broader initiative, DRAGON, which includes DRAGON I in Port Talbot, South Wales, and aims to produce a total of 50,000 tonnes of ethanol from waste carbon dioxide and green hydrogen [2] Government Support - The UK government has provided strong support for the development of the DRAGON projects, including a £6.4 million grant from the Department for Transport's Advanced Fuels Fund to accelerate both DRAGON I and DRAGON II [2] Infrastructure and Collaboration - Saltend Chemicals Park, owned by px Group, was selected for its exceptional infrastructure and potential for hydrogen and CO2 pipelines, which aligns with LanzaTech's goals for sustainable production [4][10] - LanzaTech is exploring collaborations with local partners to leverage the region's supply chains and emerging CO2 pipeline infrastructure [3]

Core Insights - LanzaTech Global, Inc has secured a contract with Spray Engineering Devices Ltd to construct a next-generation ethanol facility in Uttar Pradesh, India, utilizing sugarcane bagasse for sustainable fuel and chemical production [1][2] Group 1: Project Overview - The facility is designed to process up to 300 tons per day of bagasse and is integral to the "SED Smart Village" initiative, which aims to maximize the economic value of renewable energy and carbon resources [2] - The project will produce nutrient-rich biochar (5-10%) to enhance soil fertility in local farming communities [2][4] - This facility will be one of the first private ethanol projects in India utilizing sugar industry by-products under the PM JI-VAN Yojana, a government program supporting advanced bioethanol production [5] Group 2: Technological and Economic Impact - LanzaTech's technology employs proprietary microbes to convert carbon-rich gases into ethanol, which serves as a key building block for sustainable aviation fuel and renewable diesel [3][6] - The project supports circular economies by diverting biomass waste from incineration and enabling local production of fuels and chemicals, thereby fostering resilience in sugarcane-growing communities [4][6] - The partnership aligns with India's renewable energy goals, leveraging the country's solar potential and agricultural resources to create a sustainable hydrocarbon ecosystem [3][6] Group 3: Strategic Importance - The collaboration with SED expands LanzaTech's presence in India and contributes to the "Make in India" initiative by promoting local manufacturing of essential goods [6] - LanzaTech's technology is already operational at Indian Oil Corporation's Panipat facility, marking its sixth commercial-scale deployment globally [6]

Industry Overview - The Zacks Agriculture – Operations industry is facing structural challenges such as volatile commodity prices, high input and labor costs, trade uncertainties, and rising operating expenses, which are compressing margins and testing long-term sustainability [1][4][5] - The industry includes companies involved in the production, transportation, storage, processing, and distribution of agricultural commodities, as well as those engaged in dairy operations and food ingredient development [3] Long-term Outlook - Despite current headwinds, the long-term outlook for the industry remains positive due to innovation in seeds, crop inputs, food processing, and supply chains, alongside rising consumer demand for healthier and sustainably produced food [2] - The adoption of alternative proteins, efficiency gains in grain handling, and demand from emerging markets are contributing to growth opportunities [2] Financial Projections - The U.S. Department of Agriculture projects agricultural exports to reach $173 billion for fiscal 2026, an increase from previous forecasts, driven by stronger export volumes for corn and wheat [6] - Corn exports are expected to be $17.6 billion, up $2.4 billion, while wheat exports are projected to increase to $6.2 billion [6] Cost Pressures - Agricultural companies are experiencing rising costs due to fluctuating commodity prices and inflation, which are squeezing profitability and narrowing margins [4] - Companies are managing higher selling, general and administrative (SG&A) expenses, which may continue to impact profitability [5] Stock Performance - The Zacks Agriculture – Operations industry has underperformed compared to the Zacks Consumer Staples sector and the S&P 500, with a collective stock increase of only 0.9% over the past year [11] - The industry currently holds a Zacks Industry Rank of 166, placing it in the bottom 32% of over 250 Zacks industries, indicating dull near-term prospects [9][10] Valuation Metrics - The industry is trading at a forward 12-month price-to-earnings (P/E) ratio of 14.74X, compared to the S&P 500's 23.51X and the sector's 16.49X [14] - Over the past five years, the industry has seen a P/E range from 10.83X to 17.43X, with a median of 14.16X [14] Key Companies - **Corteva Inc. (CTVA)**: Positioned for above-market growth with a strong product pipeline and innovation strategy, expected to see earnings growth of 28.4% in 2025 [18][19] - **The Scotts Miracle-Gro Company (SMG)**: Focused on core brands and e-commerce, with projected earnings growth of 13.4% in fiscal 2026 [22][23] - **Mission Produce Inc. (AVO)**: Demonstrating strong performance through effective integration of sales and sourcing, with a significant earnings surprise of 340.8% in the past four quarters [25][26] - **Adecoagro S.A. (AGRO)**: Engaged in diversified agricultural activities, though facing a projected earnings decline of 89.1% in 2025 [28][29]

Group 1 - Bank of America upgraded Adecoagro (AGRO) to Neutral from Underperform with a price target of $9, increased from $7.50 [1] - The upgrade follows a $308 million capital increase in December and the acquisition of Profertil [1] - The diversification away from sugar and ethanol is viewed positively, despite the risks associated with urea prices from Profertil [1]

Company Overview - Valero Energy Corporation (NYSE:VLO) is a multinational manufacturer and marketer of liquid transportation fuels, including gasoline, diesel, jet fuel, renewable diesel, and ethanol, along with petrochemical products and co-products for animal feed [2] - The company operates 15 petroleum refineries in the U.S., Canada, and the U.K., and has 12 ethanol plants in the U.S. [2] Investment Insights - Valero is positioned to benefit from the opportunity presented by U.S. refiners, particularly due to its ability to process heavy crude oil, which is produced by Venezuela [1] - The company has a structural advantage through U.S. natural gas, allowing it to maintain a lower cost base compared to many refiners globally [2] - Recent industry consolidation and the closure of high-cost refineries in the U.S. have created additional economic value for Valero [2] - In the third quarter, Valero produced strong shareholder returns by operating its assets exceptionally well and returning excess capital to shareholders [2] Market Position - Valero, along with Phillips 66 and Marathon Petroleum, is identified as a potential big winner in the U.S. refining sector, contingent on the ability to divert Venezuelan oil to the Gulf [1] - The company focuses on optimizing its return on invested capital and generating strong free cash flow throughout the business cycle [2]

Core Insights - LanzaTech Global, Inc. has successfully demonstrated its gas fermentation technology at a municipal solid waste to ethanol pilot plant in Japan, showcasing its ability to process complex waste streams and contribute to a circular carbon economy [1][5] Company Performance - The pilot plant in Kuji City, Japan, has operated for nearly four years and has a capacity to produce approximately 400 tons of ethanol per year [1] - The plant achieved guaranteed performance, maintaining specific ethanol yields above guaranteed values for over 14 consecutive days, marking the most productive fermentation campaign at the site to date [3][7] - The ethanol yield was sustained despite operating on challenging gas mixtures, with CO + H₂ content ranging from 40% to 55% and an H₂:CO ratio between 1.1 and 1.4 [3][7] Technology and Innovation - LanzaTech's fermentation platform has been successfully integrated with traditional gasifier systems, demonstrating adaptability to varied feed gas conditions while meeting key performance targets [4] - The project highlights ongoing innovation in waste conversion technologies and the robustness of LanzaTech's process under diverse operational conditions [4] Strategic Partnerships and Support - The project was funded by a joint venture between Sekisui Chemical and INCJ, along with support from the Japanese Ministry of the Environment [2] - LanzaTech's CEO expressed gratitude for the collaboration with Sekisui Chemical and the support from the Government of Japan, emphasizing the importance of sustainable technologies [5]

Core Viewpoint - Valero Energy Corporation is set to release its financial and operational results for Q4 and full year 2025 on January 29, 2026, with a conference call scheduled for discussion [1] Company Overview - Valero Energy Corporation is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, primarily selling in the U.S., Canada, the U.K., Ireland, and Latin America [2] - The company operates 15 petroleum refineries in the U.S., Canada, and the U.K., with a combined throughput capacity of approximately 3.2 million barrels per day [2] - Valero is a joint venture member in Diamond Green Diesel Holdings LLC, producing low-carbon fuels including renewable diesel and sustainable aviation fuel (SAF), with a production capacity of about 1.2 billion gallons per year in the U.S. Gulf Coast region [2] - The company owns 12 ethanol plants in the U.S. Mid-Continent region, with a combined production capacity of approximately 1.7 billion gallons per year [2] - Valero manages its operations through its Refining, Renewable Diesel, and Ethanol segments [2]