Workflow
REX American Resources (REX) Earnings Call Presentation

Company Overview - REX American is a publicly traded company on the NYSE since 1984, focusing on profitable execution and growth in the low carbon future[6,8] - The company has a strong balance sheet with $365.1 million in cash, cash equivalents & short-term investments and $392.5 million in working capital, with no bank debt as of October 31, 2024[9,10] - REX has interest in ethanol production from six facilities across four states, with a total production capacity of approximately 730 million gallons per year, and REX's total ownership is approximately 300 million gallons per year[12,13] Financial Performance - Net sales and revenue for Q3 2024 were $174.9 million, with a gross profit of $39.7 million[9] - Net income attributable to shareholders for Q3 2024 was $1.38 per diluted share[9] - Ethanol sales totaled 75.5 million gallons for Q3 2024, with an average selling price of $1.831 per gallon[21] - Ethanol accounted for approximately 79% of Q3 2024 product revenue, totaling $138.1 million[33] - Sales of Dry Distillers Grain (DDG) accounted for approximately 14% of Q3 2024 product revenue, totaling $25.0 million[33] Carbon Capture and Sequestration (CCS) - The company is developing carbon capture and sequestration capabilities at its One Earth Energy facility, which will produce approximately 560,000 tons of carbon per year[8,16] - The project has three underground injection wells with a capacity to sequester 90 million tons of carbon[16] - The company anticipates potential tax credit benefits of approximately $36 million annually under the 45Q program and approximately $150 million annually under the 45Z program[51] - One Earth submitted applications for 3 Class VI injection well permits with total sequestration capacity of 90 million tons of carbon in October 2022[45]