Alto Ingredients (ALTO) 10-Q 10 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 09, 2018
Document And Entity Information
Entity Registrant Name	Pacific Ethanol, Inc.
Entity Central Index Key	778,164
Document Type	10-Q
Trading Symbol	PEIX
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		43,810,043
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents	$ 57,380	$ 49,489	[1]
Accounts receivable, net (net of allowance for doubtful accounts of $66 and $19, respectively)	74,217	80,344	[1]
Inventories	70,262	61,550
Prepaid inventory	3,609	3,281	[1]
Derivative instruments	2,981	998	[1]
Other current assets	6,082	7,584	[1]
Total current assets	214,531	203,246	[1]
Property and equipment, net	502,545	508,352	[1]
Other Assets:
Intangible assets, net	2,678	2,678	[1]
Other assets	4,725	6,020	[1]
Total other assets	7,403	8,698	[1]
Total Assets	724,479	720,296
Current Liabilities:
Accounts payable - trade	44,671	39,738	[1]
Accrued liabilities	24,255	21,673	[1]
Current portion - capital leases	380	592	[1]
Current portion - long-term debt	16,500	20,000	[1]
Derivative instruments	3,094	2,307	[1]
Other current liabilities	6,955	6,396	[1]
Total current liabilities	95,855	90,706	[1]
Long-term debt, net of current portion	228,625	221,091	[1]
Capital leases, net of current portion	112	123	[1]
Other liabilities	25,261	24,676	[1]
Total Liabilities	349,853	336,596	[1]
Commitments and Contingencies (Note 6)			[1]
Pacific Ethanol, Inc. Stockholders' Equity:
Preferred stock, $0.001 par value; 10,000 shares authorized	1	1	[1]
Common stock, $0.001 par value; 300,000 shares authorized; 43,954 and 43,985 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively	44	44	[1]
Non-voting common stock, $0.001 par value; 3,553 shares authorized; 1 share issued and outstanding as of March 31, 2018 and December 31, 2017			[1]
Additional paid-in capital	927,825	927,090	[1]
Accumulated other comprehensive loss	(2,234)	(2,234)	[1]
Accumulated deficit	(576,615)	(568,462)	[1]
Total Pacific Ethanol, Inc. Stockholders' Equity	349,021	356,439	[1]
Noncontrolling interests	25,605	27,261	[1]
Total Stockholders' Equity	374,626	383,700	[1]
Total Liabilities and Stockholders' Equity	$ 724,479	$ 720,296	[1]
[1]	Amounts derived from the audited financial statements for the year ended December 31, 2017

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accounts receivable, net of allowance	$ 66	$ 19
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, authorized	10,000	10,000
Liquidation preference	$ 18,075
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	300,000	300,000
Common stock, issued	43,954	43,985
Common stock, outstanding	43,954	43,985
Nonvoting Common Stock [Member]
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	3,553	3,553
Common stock, issued	1	1
Common stock, outstanding	1	1
Series A Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, authorized	1,684	1,684
Preferred stock, issued
Preferred stock, outstanding
Series B Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, authorized	1,581	1,581
Preferred stock, issued	927	927
Preferred stock, outstanding	927	927

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Net sales	$ 400,027	$ 386,340
Cost of goods sold	396,665	392,113
Gross profit (loss)	3,362	(5,773)
Selling, general and administrative expenses	9,315	5,450
Loss from operations	(5,953)	(11,223)
Fair value adjustments		455
Interest expense	(4,505)	(2,637)
Other income (expense), net	398	(80)
Loss before benefit for income taxes	(10,060)	(13,485)
Benefit for income taxes	563
Consolidated net loss	(9,497)	(13,485)
Net loss attributed to noncontrolling interests	1,656	849
Net loss attributed to Pacific Ethanol, Inc.	(7,841)	(12,636)
Preferred stock dividends	(312)	(312)
Net loss available to common stockholders	$ (8,153)	$ (12,948)
Net loss per share, basic and diluted	$ (0.19)	$ (0.31)
Weighted-average shares outstanding, basic and diluted	42,912	42,375

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018		Mar. 31, 2017
Operating Activities:
Consolidated net loss	$ (9,497)		$ (13,485)
Adjustments to reconcile consolidated net loss to net cash provided by operating activities:
Depreciation and amortization of intangibles	10,164		9,110
Deferred income taxes	(563)
Inventory valuation adjustment			2,086
Amortization of debt discount	178		136
Non-cash compensation	736		1,221
Amortization of deferred financing fees	465		91
Loss (gain) on derivatives	462		(216)
Fair value adjustments			(455)
Bad debt expense	47		7
Changes in operating assets and liabilities:
Accounts receivable	6,080		22,250
Inventories	(8,712)		(61)
Prepaid expenses and other assets	1,370		(2,412)
Prepaid inventory	(328)		2,033
Accounts payable and accrued liabilities	8,508		(8,213)
Net cash provided by operating activities	8,910		12,092
Investing Activities:
Additions to property and equipment	(4,357)		(4,111)
Net cash used in investing activities	(4,357)		(4,111)
Financing Activities:
Net proceeds (payments) on Kinergy's line of credit	8,722		(1,358)
Proceeds from assessment financing	331
Principal payments on borrowings	(5,000)		(1,000)
Principal payments on capital leases	(403)		(190)
Proceeds from exercise of warrants			37
Debt issuance costs			(14)
Preferred stock dividends paid	(312)		(312)
Net cash used in financing activities	3,338		(2,837)
Net decrease in cash and cash equivalents	7,891		5,144
Cash and cash equivalents at beginning of period	49,489	[1]	68,590
Cash and cash equivalents at end of period	57,380		73,734
Supplemental Information:
Interest paid	3,593		2,403
Income taxes received	$ 168		$ 3
[1]	Amounts derived from the audited financial statements for the year ended December 31, 2017

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	1. ORGANIZATION AND BASIS OF PRESENTATION. Organization and Business The Company’s acquisition of Illinois Corn Processing, LLC (“ICP”) was consummated on July 3, 2017, and as a result, the Company’s accompanying consolidated financial statements include the results of ICP only as of December 31, 2017 and for the three months ended March 31, 2018. The Company is a leading producer and marketer of low-carbon renewable fuels in the United States. The Company has a combined production capacity of 605 million gallons per year, markets, on an annualized basis, nearly 1.0 billion gallons of ethanol and specialty alcohols, and produces, on an annualized basis, over 3.0 million tons of co-products on a dry matter basis, such as wet and dry distillers grains, wet and dry corn gluten feed, condensed distillers solubles, corn gluten meal, corn germ, dried yeast and CO 2 The Company owns and operates nine production facilities, four in the Western states of California, Oregon and Idaho, and five in the Midwestern states of Illinois and Nebraska. The Company’s four ethanol plants in the Western United States (together with their respective holding companies, the “Pacific Ethanol West Plants”) are located in close proximity to both feed and ethanol customers and thus enjoy unique advantages in efficiency, logistics and product pricing. These plants produce among the lowest-carbon ethanol produced in the United States due to low energy use in production. The Company’s five ethanol plants in the Midwest (together with their respective holding companies, the “Pacific Ethanol Central Plants”) are located in the heart of the Corn Belt, benefit from low-cost and abundant feedstock production and allow for access to many additional domestic markets. In addition, the Company’s ability to load unit trains from these facilities in the Midwest allows for greater access to international markets. As of March 31, 2018, all nine facilities were operating. As market conditions change, the Company may increase, decrease or idle production at one or more operational facilities or resume operations at any idled facility. Basis of Presentation – Interim Financial Statements Accounts Receivable and Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts for balances that appear to have specific collection issues. The collection process is based on the age of the invoice and requires attempted contacts with the customer at specified intervals. If, after a specified number of days, the Company has been unsuccessful in its collection efforts, a bad debt allowance is recorded for the balance in question. Delinquent accounts receivable are charged against the allowance for doubtful accounts once uncollectibility has been determined. The factors considered in reaching this determination are the apparent financial condition of the customer and the Company’s success in contacting and negotiating with the customer. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of ability to make payments, additional allowances may be required. Of the accounts receivable balance, approximately $60,487,000 and $64,501,000 at March 31, 2018 and December 31, 2017, respectively, were used as collateral under Kinergy’s operating line of credit. The allowance for doubtful accounts was $66,000 and $19,000 as of March 31, 2018 and December 31, 2017, respectively. The Company recorded a bad debt expense of $47,000 and $7,000 for the three months ended March 31, 2018 and 2017, respectively. The Company does not have any off-balance sheet credit exposure related to its customers. Benefit for Income Taxes Comprehensive Loss Noncontrolling Interests Financial Instruments Recent Accounting Pronouncements In May 2014, the FASB issued new guidance on the recognition of revenue (“ASC 606”). ASC 606 states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. In March and April 2016, the FASB issued further revenue recognition guidance amending principal vs. agent considerations regarding whether an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The provisions of ASC 606 include a five-step process by which an entity will determine revenue recognition, depicting the transfer of goods or services to customers in amounts reflecting the payment to which an entity expects to be entitled in exchange for those goods or services. ASC 606 requires the Company to apply the following steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the Company satisfies the performance obligation. Effective January 1, 2018, the Company adopted ASC 606 using the modified retrospective method for all of its contracts. Following the adoption of ASC 606, the Company will continue to recognize revenue at a point-in-time when control of goods transfers to the customer. This is consistent with the Company’s previous revenue recognition accounting policy under which the Company recognized revenue when title and risk of loss pass to the customer and collectability is reasonably assured. In addition, ASU 606 did not impact the Company’s presentation of revenue on a gross or net basis. The Company recognizes revenue primarily from sales of ethanol and its related co-products. The Company has nine ethanol production facilities from which it produces and sells ethanol to its customers through Kinergy. Kinergy enters into sales contracts with ethanol customers under exclusive intercompany ethanol sales agreements with each of the Company’s nine ethanol plants. Kinergy also acts as a principal when it purchases third party ethanol which it resells to its customers. Finally, Kinergy has exclusive sales agreements with other third-party owned ethanol plants under which it sells their ethanol production for a fee plus the costs to deliver the ethanol to Kinergy’s customers. These sales are referred to as third-party agent sales. Revenue from these third-party agent sales is recorded on a net basis, with Kinergy recognizing its predetermined fees and any associated delivery costs. The Company has nine ethanol production facilities from which it produces and sells co-products to its customers through PAP. PAP enters into sales contracts with co-product customers under exclusive intercompany co-product sales agreements with each of the Company’s nine ethanol plants. The Company recognizes revenue from sales of ethanol and co-products at the point in time when the customer obtains control of such products, which typically occurs upon delivery depending on the terms of the underlying contracts. In some instances, the Company enters into contracts with customers that contain multiple performance obligations to deliver volumes of ethanol or co-products over a contractual period of less than 12 months. The Company allocates the transaction price to each performance obligation identified in the contract based on relative standalone selling prices and recognizes the related revenue as control of each individual product is transferred to the customer in satisfaction of the corresponding performance obligations. When the Company is the agent, the supplier controls the products before they are transferred to the customer because the supplier is primarily responsible for fulfilling the promise to provide the product, has inventory risk before the product has been transferred to a customer and has discretion in establishing the price for the product. When the Company is the principal, the Company controls the products before they are transferred to the customer because the Company is primarily responsible for fulfilling the promise to provide the products, has inventory risk before the product has been transferred to a customer and has discretion in establishing the price for the product. The Company accounts for shipping and handling costs relating to contracts with customers as costs to fulfill its promise to transfer its products. Accordingly, the costs are classified as a component of cost of goods. The Company recognized revenue by type of contracts for periods as follows (in thousands): Three Months Ended 2018 2017 Net Sales - acting as a principal Production Ethanol $ 219,609 $ 184,203 Production Co-Products 74,550 58,872 Marketing third-party ethanol sales 105,432 142,881 Net Sales - acting as an agent Marketing agent ethanol sales 436 384 Consolidated net sales $ 400,027 $ 386,340 Estimates and Assumptions

SEGMENTS

SEGMENTS	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Segments	2. SEGMENTS. The Company reports its financial and operating performance in two segments: (1) ethanol production, which includes the production and sale of ethanol, specialty alcohols and co-products, with all of the Company’s production facilities aggregated, and (2) marketing and distribution, which includes marketing and merchant trading for Company-produced ethanol, specialty alcohols and co-products and third-party ethanol. The following tables set forth certain financial data for the Company’s operating segments (in thousands): Three Months Ended March 31, 2018 2017 Net Sales: Production: Net sales to external customers $ 294,159 $ 243,075 Intersegment net sales 474 310 Total production segment net sales 294,633 243,385 Marketing and distribution: Net sales to external customers 105,868 143,265 Intersegment net sales 2,226 1,837 Total marketing and distribution segment net sales 108,094 145,102 Net sales including intersegment activity 402,727 388,487 Intersegment eliminations (2,700 ) (2,147 ) Net sales, as reported $ 400,027 $ 386,340 Cost of goods sold: Production $ 297,478 $ 250,587 Marketing and distribution 100,932 143,676 Intersegment eliminations (1,745 ) (2,150 ) Cost of goods sold, as reported $ 396,665 $ 392,113 Income (loss) before benefit for income taxes: Production $ (12,445 ) $ (12,315 ) Marketing and distribution 5,750 150 Corporate activities (3,365 ) (1,320 ) $ (10,060 ) $ (13,485 ) Depreciation and amortization: Production $ 9,932 $ 8,847 Corporate activities 232 263 $ 10,164 $ 9,110 Interest expense: Production $ 2,024 $ 1,092 Marketing and distribution 363 308 Corporate activities 2,118 1,237 $ 4,505 $ 2,637 The following table sets forth the Company’s total assets by operating segment (in thousands): March 31, 2018 December 31, 2017 Total assets: Production $ 567,889 $ 583,696 Marketing and distribution 152,073 127,242 Corporate assets 4,517 9,358 $ 724,479 $ 720,296

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Inventories	3. INVENTORIES. Inventories consisted primarily of bulk ethanol, specialty alcohols, corn, co-products, low-carbon and Renewable Identification Number (“RIN”) credits and unleaded fuel, and are valued at the lower-of-cost-or-net realizable value, with cost determined on a first-in, first-out basis. Inventory is net of a $2.7 million valuation adjustment as of December 31, 2017. Inventory balances consisted of the following (in thousands): March 31, 2018 December 31, 2017 Finished goods $ 43,641 $ 35,652 Work in progress 8,991 8,807 Raw materials 7,276 7,601 Low-carbon and RIN credits 8,708 7,952 Other 1,646 1,538 Total $ 70,262 $ 61,550

DERIVATIVES

DERIVATIVES	3 Months Ended
	Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	4. DERIVATIVES. The business and activities of the Company expose it to a variety of market risks, including risks related to changes in commodity prices. The Company monitors and manages these financial exposures as an integral part of its risk management program. This program recognizes the unpredictability of financial markets and seeks to reduce the potentially adverse effects that market volatility could have on operating results. Commodity Risk – Cash Flow Hedges Commodity Risk – Non-Designated Hedges Non Designated Derivative Instruments As of March 31, 2018 Assets Liabilities Fair Fair Type of Instrument Balance Sheet Location Value Balance Sheet Location Value Cash collateral balance Other current assets $ 2,141 Commodity contracts Derivative instruments $ 2,981 Derivative instruments $ 3,094 As of December 31, 2017 Assets Liabilities Fair Fair Type of Instrument Balance Sheet Location Value Balance Sheet Location Value Cash collateral balance Other current assets $ 3,813 Commodity contracts Derivative instruments $ 998 Derivative instruments $ 2,307 The classification and amounts of the Company’s recognized gains (losses) for its derivatives not designated as hedging instruments are as follows (in thousands): Realized Losses Three Months Ended March 31, Type of Instrument Statements of Operations Location 2018 2017 Commodity contracts Cost of goods sold $ (1,658 ) $ (2,344 ) Unrealized Gains Three Months Ended March 31, Type of Instrument Statements of Operations Location 2018 2017 Commodity contracts Cost of goods sold $ 1,196 $ 2,560

DEBT

DEBT	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Debt	5. DEBT. Long-term borrowings are summarized as follows (in thousands): March 31, 2018 December 31, 2017 Kinergy line of credit $ 58,199 $ 49,477 Pekin term loan 50,000 53,500 Pekin revolving loan 32,000 32,000 ICP term loan 21,000 22,500 ICP revolving loan 18,000 18,000 Parent notes payable 68,948 68,948 248,147 244,425 Less unamortized debt discount (1,231 ) (1,409 ) Less unamortized debt financing costs (1,791 ) (1,925 ) Less short-term portion (16,500 ) (20,000 ) Long-term debt $ 228,625 $ 221,091 Kinergy Operating Line of Credit Pekin Term Loan Pacific Aurora Line of Credit At March 31, 2018, there were approximately $204.3 million of net assets at the Company’s subsidiaries that were not available to be transferred to Pacific Ethanol, Inc. in the form of dividends, loans or advances due to restrictions contained in the credit facilities of the Company’s subsidiaries.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. COMMITMENTS AND CONTINGENCIES. Sales Commitments Purchase Commitments Litigation – General The Company assumed certain legal matters which were ongoing at July 1, 2015, the date of the Company’s acquisition of Aventine Renewable Energy Holdings, Inc. (“PE Central”). Among them were lawsuits between Aventine Renewable Energy, Inc. (now known as Pacific Ethanol Pekin, LLC) and Glacial Lakes Energy, Aberdeen Energy and Redfield Energy, together, the “Defendants,” in which PE Pekin sought damages for breach of termination agreements that wound down ethanol marketing arrangements between PE Pekin and each of the Defendants. In February and March 2017, the Company and the Defendants entered into settlement agreements and the Defendants paid in cash to the Company $3.9 million in final resolution of these matters. The Company did not assign any value to the claims against the Defendants in its accounting for the PE Central acquisition as of July 1, 2015. The Company recorded a gain, net of legal fees, of $3.6 million upon receipt of the cash settlement and recognized the gain as a reduction to selling, general and administrative expenses in the consolidated statements of operations for the three months ended March 31, 2017.

PENSION PLANS

PENSION PLANS	3 Months Ended
	Mar. 31, 2018
Retirement Benefits [Abstract]
Pension Plans	7. PENSION PLANS. The Company sponsors a defined benefit pension plan (the “Retirement Plan”) and a health care and life insurance plan (the “Postretirement Plan”). The Company assumed the Retirement Plan and the Postretirement Plan as part of its acquisition of PE Central on July 1, 2015. The Pension Plan is noncontributory, and covers only “grandfathered” unionized employees at the Company’s Pekin, Illinois facility who fulfill minimum age and service requirements. Benefits are based on a prescribed formula based upon the employee’s years of service. The Retirement Plan, which is part of a collective bargaining agreement, covers only union employees hired prior to November 1, 2010. The Company uses a December 31 measurement date for its Retirement Plan. The Company’s funding policy is to make the minimum annual contribution required by applicable regulations. As of December 31, 2017, the Retirement Plan’s accumulated projected benefit obligation was $19.7 million, with a fair value of plan assets of $14.0 million. The underfunded amount of $5.7 million is recorded on the Company’s consolidated balance sheet in other liabilities. For the three months ended March 31, 2018, the Retirement Plan’s net periodic expense was $76,000, comprised of $174,000 in interest cost and $106,000 in service cost, partially offset by $204,000 of expected return on plan assets. For the three months ended March 31, 2017, the Retirement Plan’s net periodic expense was $117,000, comprised of $188,000 in interest cost and $98,000 in service cost, partially offset by $169,000 of expected return on plan assets. The Postretirement Plan provides postretirement medical benefits and life insurance to certain “grandfathered” unionized employees. Employees hired after December 31, 2000 are not eligible to participate in the Postretirement Plan. The Postretirement Plan is contributory, with contributions required at the same rate as active employees. Benefit eligibility under the plan reduces at age 65 from a defined benefit to a defined dollar cap based upon years of service. As of December 31, 2017, the Postretirement Plan’s accumulated projected benefit obligation was $5.6 million and is recorded on the Company’s consolidated balance sheet in other liabilities. The Company’s funding policy is to make the minimum annual contribution required by applicable regulations. For the three months ended March 31, 2018, the Postretirement Plan’s net periodic expense was $81,000, comprised of $46,000 of interest cost, $2,000 of service cost and $33,000 of amortization expense. For the three months ended March 31, 2017, the Postretirement Plan’s net periodic expense was $104,000, comprised of $50,000 of interest cost, $21,000 of service cost and $33,000 of amortization expense.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	8. FAIR VALUE MEASUREMENTS. The fair value hierarchy prioritizes the inputs used in valuation techniques into three levels, as follows: ● Level 1 – Observable inputs – unadjusted quoted prices in active markets for identical assets and liabilities; ● Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data; and ● Level 3 – Unobservable inputs – includes amounts derived from valuation models where one or more significant inputs are unobservable. For fair value measurements using significant unobservable inputs, a description of the inputs and the information used to develop the inputs is required along with a reconciliation of Level 3 values from the prior reporting period. Pooled separate accounts Other Derivative Instruments The following table summarizes recurring fair value measurements by level at March 31, 2018 (in thousands): Fair Value Level 1 Level 2 Level 3 Assets: Derivative instruments(1) $ 2,981 $ 2,981 $ — $ — $ 2,981 $ 2,981 $ — $ — Liabilities: Derivative instruments(6) $ (3,094 ) $ (3,094 ) $ — $ — $ (3,094 ) $ (3,094 ) $ — $ — The following table summarizes recurring fair value measurements by level at December 31, 2017 (in thousands): Benefit Plan Percentage Fair Value Level 1 Level 2 Level 3 Allocation Assets: Derivative financial instruments(1) $ 998 $ 998 $ — $ — Defined benefit plan assets (pooled separate accounts): Large U.S. Equity(2) 3,748 — 3,748 — 27 % Small/Mid U.S. Equity(3) 2,018 — 2,018 — 14 % International Equity(4) 2,528 — 2,528 — 18 % Fixed Income(5) 5,664 — 5,664 — 41 % $ 14,956 $ 998 $ 13,958 $ — Liabilities: Derivative financial instruments(6) $ (2,307 ) $ (2,307 ) $ — $ — (1) Included in derivative instruments in the consolidated balance sheets. (2) This category includes investments in funds comprised of equity securities of large U.S. companies. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. (3) This category includes investments in funds comprised of equity securities of small- and medium-sized U.S. companies. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. (4) This category includes investments in funds comprised of equity securities of foreign companies including emerging markets. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. (5) This category includes investments in funds comprised of U.S. and foreign investment-grade fixed income securities, high-yield fixed income securities that are rated below investment-grade, U.S. treasury securities, mortgage-backed securities, and other asset-backed securities. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. (6) Included in derivative instruments in the consolidated balance sheets.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Earnings Per Share	9. EARNINGS PER SHARE. The following tables compute basic and diluted earnings per share (in thousands, except per share data): Three Months Ended March 31, 2018 Loss Shares Per-Share Net loss attributed to Pacific Ethanol, Inc. $ (7,841 ) Less: Preferred stock dividends (312 ) Basic and diluted loss per share: Net loss available to common stockholders $ (8,153 ) 42,912 $ (0.19 ) Three Months Ended March 31, 2017 Loss Shares Denominator Per-Share Net loss attributed to Pacific Ethanol, Inc. $ (12,636 ) Less: Preferred stock dividends (312 ) Basic and diluted loss per share Net loss available to common stockholders $ (12,948 ) 42,375 $ (0.31 ) There were an aggregate of 912,000 and 784,000 potentially dilutive weighted-average shares from convertible securities outstanding as of March 31, 2018 and 2017, respectively. These convertible securities were not considered in calculating diluted net loss per share for the three months ended March 31, 2018 and 2017, as their effect would have been anti-dilutive.

ORGANIZATION AND BASIS OF PRE15

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Organization and Business	Organization and Business The Company’s acquisition of Illinois Corn Processing, LLC (“ICP”) was consummated on July 3, 2017, and as a result, the Company’s accompanying consolidated financial statements include the results of ICP only as of December 31, 2017 and for the three months ended March 31, 2018. The Company is a leading producer and marketer of low-carbon renewable fuels in the United States. The Company has a combined production capacity of 605 million gallons per year, markets, on an annualized basis, nearly 1.0 billion gallons of ethanol and specialty alcohols, and produces, on an annualized basis, over 3.0 million tons of co-products on a dry matter basis, such as wet and dry distillers grains, wet and dry corn gluten feed, condensed distillers solubles, corn gluten meal, corn germ, dried yeast and CO 2 The Company owns and operates nine production facilities, four in the Western states of California, Oregon and Idaho, and five in the Midwestern states of Illinois and Nebraska. The Company’s four ethanol plants in the Western United States (together with their respective holding companies, the “Pacific Ethanol West Plants”) are located in close proximity to both feed and ethanol customers and thus enjoy unique advantages in efficiency, logistics and product pricing. These plants produce among the lowest-carbon ethanol produced in the United States due to low energy use in production. The Company’s five ethanol plants in the Midwest (together with their respective holding companies, the “Pacific Ethanol Central Plants”) are located in the heart of the Corn Belt, benefit from low-cost and abundant feedstock production and allow for access to many additional domestic markets. In addition, the Company’s ability to load unit trains from these facilities in the Midwest allows for greater access to international markets. As of March 31, 2018, all nine facilities were operating. As market conditions change, the Company may increase, decrease or idle production at one or more operational facilities or resume operations at any idled facility.
Basis of Presentation-Interim Financial Statements	Basis of Presentation – Interim Financial Statements
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts for balances that appear to have specific collection issues. The collection process is based on the age of the invoice and requires attempted contacts with the customer at specified intervals. If, after a specified number of days, the Company has been unsuccessful in its collection efforts, a bad debt allowance is recorded for the balance in question. Delinquent accounts receivable are charged against the allowance for doubtful accounts once uncollectibility has been determined. The factors considered in reaching this determination are the apparent financial condition of the customer and the Company’s success in contacting and negotiating with the customer. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of ability to make payments, additional allowances may be required. Of the accounts receivable balance, approximately $60,487,000 and $64,501,000 at March 31, 2018 and December 31, 2017, respectively, were used as collateral under Kinergy’s operating line of credit. The allowance for doubtful accounts was $66,000 and $19,000 as of March 31, 2018 and December 31, 2017, respectively. The Company recorded a bad debt expense of $47,000 and $7,000 for the three months ended March 31, 2018 and 2017, respectively. The Company does not have any off-balance sheet credit exposure related to its customers.
Benefit for Income Taxes	Benefit for Income Taxes
Comprehensive Loss	Comprehensive Loss
Noncontrolling Interests	Noncontrolling Interests
Financial Instruments	Financial Instruments
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued new guidance on the recognition of revenue (“ASC 606”). ASC 606 states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. In March and April 2016, the FASB issued further revenue recognition guidance amending principal vs. agent considerations regarding whether an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The provisions of ASC 606 include a five-step process by which an entity will determine revenue recognition, depicting the transfer of goods or services to customers in amounts reflecting the payment to which an entity expects to be entitled in exchange for those goods or services. ASC 606 requires the Company to apply the following steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the Company satisfies the performance obligation. Effective January 1, 2018, the Company adopted ASC 606 using the modified retrospective method for all of its contracts. Following the adoption of ASC 606, the Company will continue to recognize revenue at a point-in-time when control of goods transfers to the customer. This is consistent with the Company’s previous revenue recognition accounting policy under which the Company recognized revenue when title and risk of loss pass to the customer and collectability is reasonably assured. In addition, ASU 606 did not impact the Company’s presentation of revenue on a gross or net basis. The Company recognizes revenue primarily from sales of ethanol and its related co-products. The Company has nine ethanol production facilities from which it produces and sells ethanol to its customers through Kinergy. Kinergy enters into sales contracts with ethanol customers under exclusive intercompany ethanol sales agreements with each of the Company’s nine ethanol plants. Kinergy also acts as a principal when it purchases third party ethanol which it resells to its customers. Finally, Kinergy has exclusive sales agreements with other third-party owned ethanol plants under which it sells their ethanol production for a fee plus the costs to deliver the ethanol to Kinergy’s customers. These sales are referred to as third-party agent sales. Revenue from these third-party agent sales is recorded on a net basis, with Kinergy recognizing its predetermined fees and any associated delivery costs. The Company has nine ethanol production facilities from which it produces and sells co-products to its customers through PAP. PAP enters into sales contracts with co-product customers under exclusive intercompany co-product sales agreements with each of the Company’s nine ethanol plants. The Company recognizes revenue from sales of ethanol and co-products at the point in time when the customer obtains control of such products, which typically occurs upon delivery depending on the terms of the underlying contracts. In some instances, the Company enters into contracts with customers that contain multiple performance obligations to deliver volumes of ethanol or co-products over a contractual period of less than 12 months. The Company allocates the transaction price to each performance obligation identified in the contract based on relative standalone selling prices and recognizes the related revenue as control of each individual product is transferred to the customer in satisfaction of the corresponding performance obligations. When the Company is the agent, the supplier controls the products before they are transferred to the customer because the supplier is primarily responsible for fulfilling the promise to provide the product, has inventory risk before the product has been transferred to a customer and has discretion in establishing the price for the product. When the Company is the principal, the Company controls the products before they are transferred to the customer because the Company is primarily responsible for fulfilling the promise to provide the products, has inventory risk before the product has been transferred to a customer and has discretion in establishing the price for the product. The Company accounts for shipping and handling costs relating to contracts with customers as costs to fulfill its promise to transfer its products. Accordingly, the costs are classified as a component of cost of goods. The Company recognized revenue by type of contracts for periods as follows (in thousands): Three Months Ended 2018 2017 Net Sales - acting as a principal Production Ethanol $ 219,609 $ 184,203 Production Co-Products 74,550 58,872 Marketing third-party ethanol sales 105,432 142,881 Net Sales - acting as an agent Marketing agent ethanol sales 436 384 Consolidated net sales $ 400,027 $ 386,340
Estimates and Assumptions	Estimates and Assumptions

ORGANIZATION AND BASIS OF PRE16

ORGANIZATION AND BASIS OF PRESENTATION (Tables)	3 Months Ended
	Mar. 31, 2018
Organization And Basis Of Presentation Tables
Schedule of recognized revenue by type of contracts for periods	The Company recognized revenue by type of contracts for periods as follows (in thousands): Three Months Ended 2018 2017 Net Sales - acting as a principal Production Ethanol $ 219,609 $ 184,203 Production Co-Products 74,550 58,872 Marketing third-party ethanol sales 105,432 142,881 Net Sales - acting as an agent Marketing agent ethanol sales 436 384 Consolidated net sales $ 400,027 $ 386,340

SEGMENTS (Tables)

SEGMENTS (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Schedule of Financial Data for Operating Segments	The following tables set forth certain financial data for the Company’s operating segments (in thousands): Three Months Ended March 31, 2018 2017 Net Sales: Production: Net sales to external customers $ 294,159 $ 243,075 Intersegment net sales 474 310 Total production segment net sales 294,633 243,385 Marketing and distribution: Net sales to external customers 105,868 143,265 Intersegment net sales 2,226 1,837 Total marketing and distribution segment net sales 108,094 145,102 Net sales including intersegment activity 402,727 388,487 Intersegment eliminations (2,700 ) (2,147 ) Net sales, as reported $ 400,027 $ 386,340 Cost of goods sold: Production $ 297,478 $ 250,587 Marketing and distribution 100,932 143,676 Intersegment eliminations (1,745 ) (2,150 ) Cost of goods sold, as reported $ 396,665 $ 392,113 Income (loss) before benefit for income taxes: Production $ (12,445 ) $ (12,315 ) Marketing and distribution 5,750 150 Corporate activities (3,365 ) (1,320 ) $ (10,060 ) $ (13,485 ) Depreciation and amortization: Production $ 9,932 $ 8,847 Corporate activities 232 263 $ 10,164 $ 9,110 Interest expense: Production $ 2,024 $ 1,092 Marketing and distribution 363 308 Corporate activities 2,118 1,237 $ 4,505 $ 2,637
Schedule of Assets by Operating Segments	The following table sets forth the Company’s total assets by operating segment (in thousands): March 31, 2018 December 31, 2017 Total assets: Production $ 567,889 $ 583,696 Marketing and distribution 152,073 127,242 Corporate assets 4,517 9,358 $ 724,479 $ 720,296

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventory balances consisted of the following (in thousands): March 31, 2018 December 31, 2017 Finished goods $ 43,641 $ 35,652 Work in progress 8,991 8,807 Raw materials 7,276 7,601 Low-carbon and RIN credits 8,708 7,952 Other 1,646 1,538 Total $ 70,262 $ 61,550

DERIVATIVES (Tables)

DERIVATIVES (Tables)	3 Months Ended
	Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivatives Not Designated as Hedging Instruments	Non Designated Derivative Instruments As of March 31, 2018 Assets Liabilities Fair Fair Type of Instrument Balance Sheet Location Value Balance Sheet Location Value Cash collateral balance Other current assets $ 2,141 Commodity contracts Derivative instruments $ 2,981 Derivative instruments $ 3,094 As of December 31, 2017 Assets Liabilities Fair Fair Type of Instrument Balance Sheet Location Value Balance Sheet Location Value Cash collateral balance Other current assets $ 3,813 Commodity contracts Derivative instruments $ 998 Derivative instruments $ 2,307
Schedule of Recognized Gains (Losses) for Derivatives	The classification and amounts of the Company’s recognized gains (losses) for its derivatives not designated as hedging instruments are as follows (in thousands): Realized Losses Three Months Ended March 31, Type of Instrument Statements of Operations Location 2018 2017 Commodity contracts Cost of goods sold $ (1,658 ) $ (2,344 ) Unrealized Gains Three Months Ended March 31, Type of Instrument Statements of Operations Location 2018 2017 Commodity contracts Cost of goods sold $ 1,196 $ 2,560

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Schedule of Long Term Debt	Long-term borrowings are summarized as follows (in thousands): March 31, 2018 December 31, 2017 Kinergy line of credit $ 58,199 $ 49,477 Pekin term loan 50,000 53,500 Pekin revolving loan 32,000 32,000 ICP term loan 21,000 22,500 ICP revolving loan 18,000 18,000 Parent notes payable 68,948 68,948 248,147 244,425 Less unamortized debt discount (1,231 ) (1,409 ) Less unamortized debt financing costs (1,791 ) (1,925 ) Less short-term portion (16,500 ) (20,000 ) Long-term debt $ 228,625 $ 221,091

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Summary of Recurring Fair Value Measurements by Level	The following table summarizes recurring fair value measurements by level at March 31, 2018 (in thousands): Fair Value Level 1 Level 2 Level 3 Assets: Derivative instruments(1) $ 2,981 $ 2,981 $ — $ — $ 2,981 $ 2,981 $ — $ — Liabilities: Derivative instruments(6) $ (3,094 ) $ (3,094 ) $ — $ — $ (3,094 ) $ (3,094 ) $ — $ —
Schedule of Fair Value of Level 3 Inputs to Warrants	The following table summarizes recurring fair value measurements by level at December 31, 2017 (in thousands): Benefit Plan Percentage Fair Value Level 1 Level 2 Level 3 Allocation Assets: Derivative financial instruments(1) $ 998 $ 998 $ — $ — Defined benefit plan assets (pooled separate accounts): Large U.S. Equity(2) 3,748 — 3,748 — 27 % Small/Mid U.S. Equity(3) 2,018 — 2,018 — 14 % International Equity(4) 2,528 — 2,528 — 18 % Fixed Income(5) 5,664 — 5,664 — 41 % $ 14,956 $ 998 $ 13,958 $ — Liabilities: Derivative financial instruments(6) $ (2,307 ) $ (2,307 ) $ — $ — (1) Included in derivative instruments in the consolidated balance sheets. (2) This category includes investments in funds comprised of equity securities of large U.S. companies. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. (3) This category includes investments in funds comprised of equity securities of small- and medium-sized U.S. companies. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. (4) This category includes investments in funds comprised of equity securities of foreign companies including emerging markets. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. (5) This category includes investments in funds comprised of U.S. and foreign investment-grade fixed income securities, high-yield fixed income securities that are rated below investment-grade, U.S. treasury securities, mortgage-backed securities, and other asset-backed securities. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. (6) Included in derivative instruments in the consolidated balance sheets.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Earnings Per Share	The following tables compute basic and diluted earnings per share (in thousands, except per share data): Three Months Ended March 31, 2018 Loss Shares Per-Share Net loss attributed to Pacific Ethanol, Inc. $ (7,841 ) Less: Preferred stock dividends (312 ) Basic and diluted loss per share: Net loss available to common stockholders $ (8,153 ) 42,912 $ (0.19 ) Three Months Ended March 31, 2017 Loss Shares Denominator Per-Share Net loss attributed to Pacific Ethanol, Inc. $ (12,636 ) Less: Preferred stock dividends (312 ) Basic and diluted loss per share: Net loss available to common stockholders $ (12,948 ) 42,375 $ (0.31 )

ORGANIZATION AND BASIS OF PRE23

ORGANIZATION AND BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Consolidated net sales	$ 400,027	$ 386,340
Ethanol Production [Member]
Consolidated net sales	219,609	184,203
Production Co-Products [Member]
Consolidated net sales	74,550	58,872
Marketing Third-Party Ethanol Sales [Member]
Consolidated net sales	105,432	142,881
Marketing Agent Ethanol Sales [Member]
Consolidated net sales	$ 436	$ 384

ORGANIZATION AND BASIS OF PRE24

ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Ethanol production capacity per year	605 million gallons per year
Ethanol market capacity per year	markets nearly 1.0 billion gallons of ethanol
Other products produced per year	produces over 3.0 million tons of co-products
Accounts receivable used as collateral	$ 60,487		$ 64,501
Allowance for doubtful accounts	66		$ 19
Bad debt expense	47	$ 7
Benefit for income taxes	$ (563)

SEGMENTS. (Details)

SEGMENTS. (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net Sales	$ 400,027	$ 386,340
Cost of goods sold	396,665	392,113
Income (loss) before provision for income taxes	(10,060)	(13,485)
Depreciation and amortization	10,164	9,110
Interest expense	4,505	2,637
Intersubsegment Eliminations [Member]
Net Sales	(2,700)	(2,147)
Cost of goods sold	(1,745)	(2,150)
Ethanol Production [Member]
Net Sales	219,609	184,203
Cost of goods sold	297,478	250,587
Income (loss) before provision for income taxes	(12,445)	(12,315)
Depreciation and amortization	9,932	8,847
Interest expense	2,024	1,092
Ethanol Production [Member] | External Customers [Member]
Net Sales	294,159	243,075
Ethanol Production [Member] | Intersegment Net Sales [Member]
Net Sales	474	310
Marketing and Distribution [Member]
Net Sales	108,094	145,102
Cost of goods sold	100,932	143,676
Income (loss) before provision for income taxes	5,750	150
Interest expense	363	308
Marketing and Distribution [Member] | External Customers [Member]
Net Sales	105,868	143,265
Marketing and Distribution [Member] | Intersegment Net Sales [Member]
Net Sales	2,226	1,837
Net Sales Including Intersegment Activity [Member]
Net Sales	402,727	388,487
Corporate Activities [Member]
Income (loss) before provision for income taxes	(3,365)	(1,320)
Depreciation and amortization	232	263
Interest expense	$ 2,118	$ 1,237

SEGMENTS. (Details 1)

SEGMENTS. (Details 1) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Total Assets	$ 724,479	$ 720,296
Ethanol Production [Member]
Total Assets	567,889	583,696
Marketing and Distribution [Member]
Total Assets	152,073	127,242
Corporate Assets [Member]
Total Assets	$ 4,517	$ 9,358

INVENTORIES. (Details)

INVENTORIES. (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finished goods	$ 43,641	$ 35,652
Work in progress	8,991	8,807
Raw materials	7,276	7,601
Low-carbon and RIN credits	8,708	7,952
Other	1,646	1,538
Total	$ 70,262	$ 61,550

INVENTORIES (Details Narrative)

INVENTORIES (Details Narrative) $ in Thousands	Dec. 31, 2017USD ($)
Inventories Details Narrative
Net inventory valuation adjustment	$ 2,700

DERIVATIVES (Details)

DERIVATIVES (Details) - Non Designated Derivative Instruments [Member] - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Cash Collateral Balance [Member]
Derivative assets	$ 2,141	$ 3,813
Commodity Contracts [Member]
Derivative assets	2,981	998
Derivative liabilities	$ 3,094	$ 2,307

DERIVATIVES (Details 1)

DERIVATIVES (Details 1) - Non Designated Derivative Instruments [Member] - Commodity Contracts [Member] - Cost of goods sold [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Realized Gains (Losses)	$ (1,658)	$ (2,344)
Unrealized Gains (Losses)	$ 1,196	$ 2,560

DERIVATIVES (Details Narrative)

DERIVATIVES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Recognized losses due to change in fair value	$ 462	$ 216

DEBT (Details)

DEBT (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Long-term borrowings are summarized as follows
Total debt	$ 248,147	$ 244,425
Less unamortized debt discount	(1,231)	(1,409)
Less unamortized debt financing costs	(1,791)	(1,925)
Less short-term portion	(16,500)	(20,000)	[1]
Long-term debt	228,625	221,091	[1]
Term Loan [Member] | Illinois Corn Processing, LLC [Member]
Long-term borrowings are summarized as follows
Term debt	21,000	22,500
Parent Notes Payable [Member]
Long-term borrowings are summarized as follows
Notes payable	68,948	68,948
Revolving Credit Facility [Member] | Illinois Corn Processing, LLC [Member]
Long-term borrowings are summarized as follows
Line of credit	18,000	18,000
Kinergy Marketing LLC [Member] | Line of Credit [Member]
Long-term borrowings are summarized as follows
Line of credit	58,199	49,477
Pacific Ethanol Pekin, Inc [Member] | Term Loan [Member]
Long-term borrowings are summarized as follows
Term debt	50,000	53,500
Pacific Ethanol Pekin, Inc [Member] | Revolving Credit Facility [Member]
Long-term borrowings are summarized as follows
Line of credit	$ 32,000	$ 32,000
[1]	Amounts derived from the audited financial statements for the year ended December 31, 2017

DEBT (Details Narrative)

DEBT (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Net assets	$ 724,479	$ 720,296
Kinergy Marketing LLC [Member] | Line of Credit [Member]
Unused borrowing capacity	$ 19,680
Pacific Ethanol Pekin, Inc [Member] | Term Loan [Member]
Description of debt covenant	Company’s subsidiaries, amended its term loan facility by reducing the amount of working capital it is required to maintain to not less than $13.0 million from March 31, 2018 through November 30, 2018 and not less than $16.0 million from December 1, 2018 and continuing at all times thereafter.
Debt face amount	$ 3,500
Debt maturity date	May 31, 2018
Pacific Aurora Line of Credit [Member] | Line of Credit [Member]
Deferred financing fees	$ 300
Net assets	$ 204,300

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Proceeds from legal settlement	$ 3,900
Gain on litigation settlement	$ 3,600
Co-products Sales Contracts [Member]
Open ethanol indexed-price sales contracts	518,000 tons
Open fixed-price sales contracts valued	$ 37,674
Ethanol Sales Contracts [Member]
Open ethanol indexed-price sales contracts	326,559,000 gallons
Open fixed-price sales contracts valued	$ 74,369
Ethanol Purchase Contracts [Member]
Indexed-price purchase contracts	17,295,000 gallons
Fixed-price purchase contracts value	$ 7,241
Ethanol Purchase Contracts [Member] | Suppliers [Member]
Fixed-price purchase contracts value	$ 33,641

PENSION PLANS (Details Narrativ

PENSION PLANS (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Postretirement Plan [Member]
Accumulated projected benefit obligation			$ 5,600
Interest cost	$ 46	$ 50
Service cost	2	21
Amortization of (gain) loss	33	33
Net periodic benefit cost	81	104
Retirement Plan [Member]
Accumulated projected benefit obligation			19,700
Fair value of plan assets			14,000
Underfunded amount			$ 5,700
Interest cost	174	188
Service cost	106	98
Expected return on plan assets	204	169
Net periodic benefit cost	$ 76	$ 117

FAIR VALUE MEASUREMENTS. (Detai

FAIR VALUE MEASUREMENTS. (Details) - USD ($) $ in Thousands		Mar. 31, 2018		Dec. 31, 2017
Assets:
Assets		$ 2,981		$ 14,956
Liabilities:
Liabilities		(3,094)
Derivative Financial Instrument [Member]
Assets:
Assets	[1]	2,981		998
Liabilities:
Liabilities		(3,094)	[1]	(2,307)	[2]
Defined Benefit Plan Assets Large U.S. Equity [Member]
Assets:
Assets	[2]			$ 3,748
Liabilities:
Benefit plan allocation percentage	[2]			27.00%
Defined Benefit Plan Assets Small/Mid U.S. Equity [Member]
Assets:
Assets	[3]			$ 2,018
Liabilities:
Benefit plan allocation percentage	[3]			14.00%
Defined Benefit Plan Assets International Equity [Member]
Assets:
Assets	[4]			$ 2,528
Liabilities:
Benefit plan allocation percentage	[4]			18.00%
Defined Benefit Plan Assets Fixed Income [Member]
Assets:
Assets	[5]			$ 5,664
Liabilities:
Benefit plan allocation percentage	[5]			41.00%
Level 1 [Member]
Assets:
Assets		2,981		$ 998
Liabilities:
Liabilities		(3,094)		(2,307)
Level 1 [Member] | Derivative Financial Instrument [Member]
Assets:
Assets	[1]	2,981		998
Liabilities:
Liabilities		(3,094)	[1]	(2,307)	[2]
Level 1 [Member] | Defined Benefit Plan Assets Large U.S. Equity [Member]
Assets:
Assets	[2]
Level 1 [Member] | Defined Benefit Plan Assets Small/Mid U.S. Equity [Member]
Assets:
Assets	[3]
Level 1 [Member] | Defined Benefit Plan Assets International Equity [Member]
Assets:
Assets	[4]
Level 1 [Member] | Defined Benefit Plan Assets Fixed Income [Member]
Assets:
Assets	[5]
Level 2 [Member]
Assets:
Assets				13,958
Liabilities:
Liabilities
Level 2 [Member] | Derivative Financial Instrument [Member]
Assets:
Assets	[1]
Liabilities:
Liabilities			[1]		[2]
Level 2 [Member] | Defined Benefit Plan Assets Large U.S. Equity [Member]
Assets:
Assets	[2]			3,748
Level 2 [Member] | Defined Benefit Plan Assets Small/Mid U.S. Equity [Member]
Assets:
Assets	[3]			2,018
Level 2 [Member] | Defined Benefit Plan Assets International Equity [Member]
Assets:
Assets	[4]			2,528
Level 2 [Member] | Defined Benefit Plan Assets Fixed Income [Member]
Assets:
Assets	[5]			5,664
Level 3 [Member]
Assets:
Assets
Liabilities:
Liabilities
Level 3 [Member] | Derivative Financial Instrument [Member]
Assets:
Assets	[1]
Liabilities:
Liabilities			[1]		[2]
Level 3 [Member] | Defined Benefit Plan Assets Large U.S. Equity [Member]
Assets:
Assets	[2]
Level 3 [Member] | Defined Benefit Plan Assets Small/Mid U.S. Equity [Member]
Assets:
Assets	[3]
Level 3 [Member] | Defined Benefit Plan Assets International Equity [Member]
Assets:
Assets	[4]
Level 3 [Member] | Defined Benefit Plan Assets Fixed Income [Member]
Assets:
Assets	[5]
[1]	Included in derivative instruments in the consolidated balance sheets
[2]	This category includes investments in funds comprised of equity securities of large U.S. companies. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund.
[3]	This category includes investments in funds comprised of equity securities of small- and medium-sized U.S. companies. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund.
[4]	This category includes investments in funds comprised of equity securities of foreign companies including emerging markets. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund.
[5]	This category includes investments in funds comprised of U.S. and foreign investment-grade fixed income securities, high-yield fixed income securities that are rated below investment-grade, U.S. treasury securities, mortgage-backed securities, and other asset-backed securities. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund.

EARNINGS PER SHARE. (Details)

EARNINGS PER SHARE. (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Loss Numerator
Net loss attributed to Pacific Ethanol, Inc.	$ (7,841)	$ (12,636)
Less: Preferred stock dividends	(312)	(312)
Basic and diluted loss per share:
Net loss available to common stockholders	$ (8,153)	$ (12,948)
Shares Denominator
Shares available to common stockholders - basic	42,912	42,375
Shares available to common stockholders - diluted	42,912	42,375
Per-Share Amount
Per-Share amount - basic	$ (0.19)	$ (0.31)
Per-Shares amount - diluted	$ (0.19)	$ (0.31)

EARNINGS PER SHARE. (Details Na

EARNINGS PER SHARE. (Details Narrative) - shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share. Details Narrative
Potentially dilutive shares from convertible securities outstanding	912,000	784,000