Segment Information | SEGMENT INFORMATION The company reports the financial and operating performance for the following two operating segments: (1) ethanol production, which includes the production, storage and transportation of ethanol, distillers grains, Ultra-High Protein and renewable corn oil and (2) agribusiness and energy services, which includes grain handling and storage, commodity marketing and merchant trading for company-produced and third-party ethanol, distillers grains, renewable corn oil, natural gas and other commodities. As a result of the Merger, the partnership's operations are included in the ethanol production operating segment. The following changes were made to the company's operating segments: • The revenue and operating results from fuel storage and transportation services previously disclosed within the partnership segment are now included within the ethanol production segment. • Intersegment activities between the partnership and Green Plains Trade associated with ethanol storage and transportation services previously treated like third-party transactions and eliminated on a consolidated level are now eliminated within the ethanol production segment. Intersegment activities between the remaining terminal and Green Plains Trade associated with terminal services transacted with the agribusiness and energy services segment will continue to be eliminated on a consolidated level. Corporate activities include selling, general and administrative expenses, consisting primarily of compensation, professional fees and overhead costs not directly related to a specific operating segment, as well as gain on sale of assets. During the normal course of business, the operating segments conduct business with each other. For example, the agribusiness and energy services segment procures grain and natural gas and sells products, including ethanol, distillers grains, Ultra-High Protein and renewable corn oil for the ethanol production segment. These intersegment activities are treated like third-party transactions with origination, marketing and storage fees charged at estimated market values. Consequently, these transactions affect segment performance; however, they do not impact the company’s consolidated results since the revenues and corresponding costs are eliminated. The Chief Operating Decision Maker ("CODM") for the company is the Chief Executive Officer. The CODM utilizes EBITDA to assess segment performance, which is derived from revenue less cost of goods sold and selling, general and administrative expenses. The CODM manages and allocates resources to the operations of the Company's two segments. This enables the CEO to assess the Company’s overall level of available resources and determine how best to deploy these resources for capital expenditure, research and development projects, and other strategic opportunities that are in line with our long-term strategic goals. The CODM is regularly provided with consolidated expense information or forecasted expense information for the applicable reportable segment. The following tables set forth certain financial data for the company’s operating segments (in thousands): Year Ended December 31, 2024 2023 2022 Revenues Ethanol production Revenues from external customers $ 2,063,382 $ 2,819,986 $ 3,074,195 Intersegment revenues 3,707 4,555 4,445 Total segment revenues 2,067,089 2,824,541 3,078,640 Agribusiness and energy services Revenues from external customers 395,414 475,757 588,654 Intersegment revenues 25,693 25,146 26,961 Total segment revenues 421,107 500,903 615,615 Revenues including intersegment activity 2,488,196 3,325,444 3,694,255 Intersegment eliminations (29,400) (29,701) (31,406) $ 2,458,796 $ 3,295,743 $ 3,662,849 Refer to Note 3 – Revenue , for further disaggregation of revenue by operating segment. Year Ended December 31, 2024 2023 2022 Cost of goods sold Ethanol production (1)(2) $ 1,983,460 $ 2,705,917 $ 3,018,625 Agribusiness and energy services 374,286 454,776 562,950 Intersegment eliminations (29,400) (29,701) (31,406) $ 2,328,346 $ 3,130,992 $ 3,550,169 Year Ended December 31, 2024 2023 2022 Gross margin Ethanol production (1)(2) $ 83,629 $ 118,624 $ 60,015 Agribusiness and energy services 46,821 46,127 52,665 $ 130,450 $ 164,751 $ 112,680 Year Ended December 31, 2024 2023 2022 Depreciation and amortization Ethanol production $ 82,784 $ 92,712 $ 85,638 Agribusiness and energy services 2,185 2,360 3,466 Corporate activities (3) 5,618 3,172 3,594 $ 90,587 $ 98,244 $ 92,698 Year Ended December 31, 2024 2023 2022 Operating income (loss) Ethanol production (2) $ (40,758) $ (19,958) $ (66,485) Agribusiness and energy services 28,156 28,100 36,415 Corporate activities (4) (34,857) (69,720) (68,878) $ (47,459) $ (61,578) $ (98,948) (1) Costs historically reported as operations and maintenance expenses in the consolidated statements of operations are now being reported within cost of goods sold, resulting in increased cost of goods sold and decreased gross margin within the ethanol production segment. (2) Ethanol production includes an inventory lower of cost or net realizable value adjustment of $2.1 million, $2.6 million, and $12.3 million for the years-ended December 31, 2024, 2023, and 2022 , respectively. (3) Depreciation and amortization (4) Corporate activities for the years-ended December 31, 2024 and 2023 include a $30.7 million and $4.1 million gain on sale of assets, respectively. The following tables reconcile EBITDA, our segment measure of profit or loss, to net loss (in thousands). EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization excluding the amortization of right-of-use assets and debt issuance costs. Year Ended December 31, 2024 Ethanol production Agribusiness and energy services Subtotal EBITDA $ 39,645 $ 31,935 $ 71,580 Depreciation and amortization (82,784) (2,185) (84,969) Interest expense (22,056) (4,722) (26,778) Subtotal $ (65,195) $ 25,028 $ (40,167) Unallocated corporate expenses (1) (35,869) Income tax expense, net of equity method income taxes (5,153) Net loss $ (81,189) Year Ended December 31, 2023 Ethanol production Agribusiness and energy services Subtotal EBITDA $ 78,561 $ 31,689 $ 110,250 Depreciation and amortization (92,712) (2,360) (95,072) Interest expense (23,545) (7,723) (31,268) Subtotal $ (37,696) $ 21,606 $ (16,090) Unallocated corporate expenses (1) (65,826) Income tax benefit, net of equity method income taxes 5,617 Net loss $ (76,299) Year Ended December 31, 2022 Ethanol production Agribusiness and energy services Subtotal EBITDA $ 47,390 $ 39,798 $ 87,188 Depreciation and amortization (85,638) (3,466) (89,104) Interest expense (14,310) (8,922) (23,232) Subtotal $ (52,558) $ 27,410 $ (25,148) Unallocated corporate expenses (1) (73,482) Income tax expense, net of equity method income taxes (4,747) Net loss $ (103,377) (1) Corporate expenses include selling, general administrative expenses, gain on sale of assets, depreciation and amortization, and interest expense. The following table sets forth capital expenditures by operating segment (in thousands): Year Ended December 31, 2024 2023 2022 Capital expenditures Ethanol production $ 89,230 $ 107,468 $ 210,897 Agribusiness and energy services 833 512 1,647 Corporate activities 5,021 494 75 $ 95,084 $ 108,474 $ 212,619 The following table sets forth total assets by operating segment (in thousands): Year Ended December 31, 2024 2023 Total assets (1) Ethanol production $ 1,234,635 $ 1,275,562 Agribusiness and energy services 412,006 413,937 Corporate assets 143,716 254,300 Intersegment eliminations (8,183) (4,477) $ 1,782,174 $ 1,939,322 (1) |