Alto Ingredients (ALTO) 10-Q 9 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 08, 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	Jun. 30, 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		44,954,392
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,018

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents	$ 62,581	$ 49,489	[1]
Accounts receivable, net (net of allowance for doubtful accounts of $64 and $19, respectively)	72,518	80,344	[1]
Inventories	67,305	61,550	[1]
Prepaid inventory	1,796	3,281	[1]
Derivative instruments	7,634	998	[1]
Other current assets	8,871	7,584	[1]
Total current assets	220,705	203,246	[1]
Property and equipment, net	495,274	508,352	[1]
Other Assets:
Intangible assets	2,678	2,678	[1]
Other assets	4,575	6,020	[1]
Total other assets	7,253	8,698	[1]
Total Assets	723,232	720,296	[1]
Current Liabilities:
Accounts payable - trade	40,966	39,738	[1]
Accrued liabilities	21,790	21,673	[1]
Current portion -capital leases	162	592	[1]
Current portion - long-term debt	20,000	20,000	[1]
Derivative instruments	10,157	2,307	[1]
Other current liabilities	6,567	6,396	[1]
Total current liabilities	99,642	90,706	[1]
Long-term debt, net of current portion	237,771	221,091	[1]
Capital leases, net of current portion	101	123	[1]
Other liabilities	25,457	24,676	[1]
Total Liabilities	362,971	336,596	[1]
Commitments and Contingencies (Note 6)
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 ; 44,960 and 43,985 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively	45	44	[1]
Non-voting common stock, $0.001 par value ; 3,553 shares authorized ; 1 share issued and outstanding as of June 30, 2018 and December 31, 2017, respectively			[1]
Additional paid-in capital	928,378	927,090	[1]
Accumulated other comprehensive loss	(2,234)	(2,234)	[1]
Accumulated deficit	(589,838)	(568,462)	[1]
Total Pacific Ethanol, Inc. Stockholders' Equity	336,352	356,439	[1]
Noncontrolling interests	23,909	27,261	[1]
Total Stockholders' Equity	360,261	383,700	[1]
Total Liabilities and Stockholders' Equity	$ 723,232	$ 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	Jun. 30, 2018	Dec. 31, 2017
Accounts receivable, net of allowance	$ 64	$ 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	44,960	43,985
Common stock, outstanding	44,960	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		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Net sales	$ 410,522	$ 405,202	$ 810,549	$ 791,542
Cost of goods sold	411,795	403,549	808,460	795,662
Gross profit (loss)	(1,273)	1,653	2,089	(4,120)
Selling, general and administrative expenses	8,898	8,762	18,213	14,212
Loss from operations	(10,171)	(7,109)	(16,124)	(18,332)
Fair value adjustments		18		473
Interest expense	(4,177)	(2,694)	(8,682)	(5,331)
Other income (expense), net	(256)	(153)	142	(233)
Loss before benefit for income taxes	(14,604)	(9,938)	(24,664)	(23,423)
Benefit for income taxes			563
Consolidated net loss	(14,604)	(9,938)	(24,101)	(23,423)
Net loss attributed to noncontrolling interests	1,696	1,097	3,352	1,946
Net loss attributed to Pacific Ethanol, Inc.	(12,908)	(8,841)	(20,749)	(21,477)
Preferred stock dividends	(315)	(315)	(627)	(627)
Loss available to common stockholders	$ (13,223)	$ (9,156)	$ (21,376)	$ (22,104)
Net loss per share, basic and diluted	$ (0.31)	$ (0.22)	$ (0.50)	$ (0.52)
Weighted-average shares outstanding, basic and diluted	43,285	42,295	43,098	42,334

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018		Jun. 30, 2017
Operating Activities:
Consolidated net loss	$ (24,101)		$ (23,423)
Adjustments to reconcile consolidated net loss to net cash provided by operating activities:
Depreciation and amortization of intangibles	20,418		18,408
Deferred income taxes	(563)
Fair value adjustments			(473)
Amortization of debt discount	357		273
Inventory valuation adjustment			256
Amortization of deferred financing fees	608		189
Non-cash compensation	1,695		2,158
Loss on derivative instruments	3,370		352
Bad debt expense	45		2
Changes in operating assets and liabilities:
Accounts receivable	7,781		39,835
Inventories	(5,755)		(3,273)
Prepaid expenses and other assets	(1,437)		(4,454)
Prepaid inventory	1,485		(486)
Accounts payable and accrued expenses	1,003		(14,273)
Net cash provided by operating activities	4,906		15,091
Investing Activities:
Additions to property and equipment	(7,340)		(6,229)
Net cash used in investing activities	(7,340)		(6,229)
Financing Activities:
Net proceeds from Kinergys' line of credit	22,551		5,295
Proceeds from assessment financing	728
Net proceeds from notes			13,530
Principal payments on borrowings	(6,500)		(4,500)
Payments on capital leases	(626)		(386)
Proceeds from exercise of warrants and options			690
Preferred stock dividends paid	(627)		(627)
Net cash provided by financing activities	15,526		14,002
Net increase in cash and cash equivalents	13,092		22,864
Cash and cash equivalents at beginning of period	49,489	[1]	68,590
Cash and cash equivalents at end of period	62,581		91,454
Supplemental Cash Flow Information:
Interest paid	7,598		4,852
Income tax refunds received	168		3
Reclass of warrant liability to equity upon warrant exercises			$ 178
[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	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 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 June 30, 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 $56,412,000 and $64,501,000 at June 30, 2018 and December 31, 2017, respectively, were used as collateral under Kinergy’s operating line of credit. The allowance for doubtful accounts was $64,000 and $19,000 as of June 30, 2018 and December 31, 2017, respectively. The Company recorded a bad debt recovery of $2,000 and $5,000 for the three months ended June 30, 2018 and 2017, respectively. The Company recorded a bad debt expense of $45,000 and $2,000 for the six months ended June 30, 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 continues 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 was 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 sold. See Note 2 for the Company’s revenue by type of contracts. Estimates and Assumptions

SEGMENTS

SEGMENTS	6 Months Ended
	Jun. 30, 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 Six Months Ended 2018 2017 2018 2017 Net Sales Production, recorded as gross: Ethanol/alcohol sales $ 233,888 $ 197,657 $ 453,517 $ 382,112 Co-product sales 78,514 58,468 153,048 117,087 Intersegment sales 539 188 1,013 499 Total production sales 312,941 256,313 607,578 499,698 Marketing: Ethanol/alcohol sales, gross $ 97,634 $ 148,644 $ 203,063 $ 291,526 Ethanol/alcohol sales, net 486 433 921 817 Intersegment sales 2,330 1,963 4,555 3,800 Total marketing sales 100,450 151,040 208,539 296,143 Intersegment eliminations (2,869 ) (2,151 ) (5,568 ) (4,299 ) Net sales as reported $ 410,522 $ 405,202 $ 810,549 $ 791,542 Cost of goods sold: Production $ 320,631 $ 254,570 $ 619,064 $ 505,155 Marketing and distribution 94,203 151,130 195,135 294,806 Intersegment eliminations (3,039 ) (2,151 ) (5,739 ) (4,299 ) Cost of goods sold as reported $ 411,795 $ 403,549 $ 808,460 $ 795,662 Income (loss) before benefit for income taxes: Production $ (17,210 ) $ (6,304 ) $ (29,609 ) $ (18,619 ) Marketing and distribution 4,929 (1,435 ) 10,677 (1,286 ) Corporate activities (2,323 ) (2,199 ) (5,732 ) (3,518 ) $ (14,604 ) $ (9,938 ) $ (24,664 ) $ (23,423 ) Depreciation and amortization: Production $ 10,045 $ 9,016 $ 19,977 $ 17,862 Corporate activities 208 283 441 546 $ 10,253 $ 9,299 $ 20,418 $ 18,408 Interest expense: Production $ 1,700 $ 1,119 $ 3,724 $ 2,211 Marketing and distribution 336 302 699 610 Corporate activities 2,141 1,273 4,259 2,510 $ 4,177 $ 2,694 $ 8,682 $ 5,331 The following table sets forth the Company’s total assets by operating segment (in thousands): June 30, 2018 December 31, 2017 Total assets: Production $ 567,322 $ 583,696 Marketing and distribution 150,255 127,242 Corporate assets 5,655 9,358 $ 723,232 $ 720,296

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 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 $2,678,000 valuation adjustment as of December 31, 2017. Inventory balances consisted of the following (in thousands): June 30, 2018 December 31, 2017 Finished goods $ 42,279 $ 35,652 Work in progress 8,115 8,807 Raw materials 7,834 7,601 Low-carbon and RIN credits 7,461 7,952 Other 1,616 1,538 Total $ 67,305 $ 61,550

DERIVATIVES

DERIVATIVES	6 Months Ended
	Jun. 30, 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 June 30, 2018 Assets Liabilities Fair Fair Type of Instrument Balance Sheet Location Value Balance Sheet Location Value Cash collateral balance Other current assets $ 5,746 Commodity contracts Derivative instruments $ 7,634 Derivative instruments $ 10,157 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 June 30, Type of Instrument Statements of Operations Location 2018 2017 Commodity contracts Cost of goods sold $ (499 ) $ (574 ) Unrealized Gains (Losses) Three Months Ended June 30, Type of Instrument Statements of Operations Location 2018 2017 Commodity contracts Cost of goods sold $ (2,410 ) $ 6 Realized Losses Six Months Ended June 30, Type of Instrument Statements of Operations Location 2018 2017 Commodity contracts Cost of goods sold $ (2,157 ) $ (2,918 ) Unrealized Gains (Losses) Six Months Ended June 30, Type of Instrument Statements of Operations Location 2018 2017 Commodity contracts Cost of goods sold $ (1,213 ) $ 2,566

DEBT

DEBT	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Debt	5. DEBT. Long-term borrowings are summarized as follows (in thousands): June 30, 2018 December 31, 2017 Kinergy line of credit $ 72,028 $ 49,477 Pekin term loan 50,000 53,500 Pekin revolving loan 32,000 32,000 ICP term loan 19,500 22,500 ICP revolving loan 18,000 18,000 Parent notes payable 68,948 68,948 260,476 244,425 Less unamortized debt discount (1,052 ) (1,409 ) Less unamortized debt financing costs (1,653 ) (1,925 ) Less short-term portion (20,000 ) (20,000 ) Long-term debt $ 237,771 $ 221,091 Kinergy Operating Line of Credit Pekin Term Loan Pacific Aurora Line of Credit Distribution Restrictions

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 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 six months ended June 30, 2017.

PENSION AND RETIREMENT BENEFIT

PENSION AND RETIREMENT BENEFIT PLANS	6 Months Ended
	Jun. 30, 2018
Retirement Benefits [Abstract]
Pension And Retirement Benefit Plans	7. PENSION AND RETIREMENT BENEFIT 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 Retirement 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. Of the net periodic expense for the Retirement Plan and Postretirement Plan, the Company recognizes the service cost component in cost of goods sold and the interest cost, expected return on plan assets and amortization of gain (loss) in other income (expense), net. The Company’s net periodic Retirement Plan costs are as follows (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Interest cost $ 174 $ 98 $ 348 $ 195 Service cost 106 188 212 375 Expected return on plan assets (204 ) (169 ) (408 ) (337 ) Net periodic expense $ 76 $ 117 $ 152 $ 233 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. The Company’s net periodic Postretirement Plan costs are as follows (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Interest cost $ 46 $ 21 $ 92 $ 42 Service cost 2 50 4 100 Amortization of (gain) loss 33 33 66 66 Net periodic expense $ 81 $ 104 $ 162 $ 208

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 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 June 30, 2018 (in thousands): Fair Value Level 1 Level 2 Level 3 Assets: Derivative instruments $ 7,634 $ 7,634 $ — $ — Liabilities: Derivative instruments $ (10,157 ) $ (10,157 ) $ — $ —

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 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 June 30, 2018 Loss Shares Denominator Per-Share Amount Net loss attributed to Pacific Ethanol, Inc. $ (12,908 ) Less: Preferred stock dividends (315 ) Basic and diluted loss per share: Loss available to common stockholders $ (13,223 ) 43,285 $ (0.31 ) Three Months Ended June 30, 2017 Loss Shares Denominator Per-Share Amount Net loss attributed to Pacific Ethanol, Inc. $ (8,841 ) Less: Preferred stock dividends (315 ) Basic and diluted loss per share: Loss available to common stockholders $ (9,156 ) 42,295 $ ( 0.22 ) Six Months Ended June 30, 2018 Loss Shares Denominator Per-Share Amount Net loss attributed to Pacific Ethanol, Inc. $ (20,749 ) Less: Preferred stock dividends (627 ) Basic and diluted loss per share: Loss available to common stockholders $ (21,376 ) 43,098 $ ( 0.50 ) Six Months Ended June 30, 2017 Loss Shares Denominator Per-Share Amount Net loss attributed to Pacific Ethanol, Inc. $ (21,477 ) Less: Preferred stock dividends (627 ) Basic and diluted loss per share: Loss available to common stockholders $ (22,104 ) 42,334 $ ( 0.52 ) There were an aggregate of 1,606,000 and 721,000 potentially dilutive weighted-average shares from convertible securities outstanding for the three and six months ended June 30, 2018, respectively. These convertible securities were not considered in calculating diluted net loss per share for the three and six months ended June 30, 2018, as their effect would have been anti-dilutive.

ORGANIZATION AND BASIS OF PRE15

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 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 June 30, 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 $56,412,000 and $64,501,000 at June 30, 2018 and December 31, 2017, respectively, were used as collateral under Kinergy’s operating line of credit. The allowance for doubtful accounts was $64,000 and $19,000 as of June 30, 2018 and December 31, 2017, respectively. The Company recorded a bad debt recovery of $2,000 and $5,000 for the three months ended June 30, 2018 and 2017, respectively. The Company recorded a bad debt expense of $45,000 and $2,000 for the six months ended June 30, 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 continues 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 was 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 sold. See Note 2 for the Company’s revenue by type of contracts.
Estimates and Assumptions	Estimates and Assumptions

SEGMENTS (Tables)

SEGMENTS (Tables)	6 Months Ended
	Jun. 30, 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 Six Months Ended 2018 2017 2018 2017 Net Sales Production, recorded as gross: Ethanol/alcohol sales $ 233,888 $ 197,657 $ 453,517 $ 382,112 Co-product sales 78,514 58,468 153,048 117,087 Intersegment sales 539 188 1,013 499 Total production sales 312,941 256,313 607,578 499,698 Marketing : Ethanol/alcohol sales, gross $ 97,634 $ 148,644 $ 203,063 $ 291,526 Ethanol/alcohol sales, net 486 433 921 817 Intersegment sales 2,330 1,963 4,555 3,800 Total marketing sales 100,450 151,040 208,539 296,143 Intersegment eliminations (2,869 ) (2,151 ) (5,568 ) (4,299 ) Net sales as reported $ 410,522 $ 405,202 $ 810,549 $ 791,542 Cost of goods sold: Production $ 320,631 $ 254,570 $ 619,064 $ 505,155 Marketing and distribution 94,203 151,130 195,135 294,806 Intersegment eliminations (3,039 ) (2,151 ) (5,739 ) (4,299 ) Cost of goods sold as reported $ 411,795 $ 403,549 $ 808,460 $ 795,662 Income (loss) before benefit for income taxes: Production $ (17,210 ) $ (6,304 ) $ (29,609 ) $ (18,619 ) Marketing and distribution 4,929 (1,435 ) 10,677 (1,286 ) Corporate activities (2,323 ) (2,199 ) (5,732 ) (3,518 ) $ (14,604 ) $ (9,938 ) $ (24,664 ) $ (23,423 ) Depreciation and amortization: Production $ 10,045 $ 9,016 $ 19,977 $ 17,862 Corporate activities 208 283 441 546 $ 10,253 $ 9,299 $ 20,418 $ 18,408 Interest expense: Production $ 1,700 $ 1,119 $ 3,724 $ 2,211 Marketing and distribution 336 302 699 610 Corporate activities 2,141 1,273 4,259 2,510 $ 4,177 $ 2,694 $ 8,682 $ 5,331
Schedule of Assets by Operating Segments	The following table sets forth the Company’s total assets by operating segment (in thousands): June 30, 2018 December 31, 2017 Total assets: Production $ 567,322 $ 583,696 Marketing and distribution 150,255 127,242 Corporate assets 5,655 9,358 $ 723,232 $ 720,296

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventory balances consisted of the following (in thousands): June 30, 2018 December 31, 2017 Finished goods $ 42,279 $ 35,652 Work in progress 8,115 8,807 Raw materials 7,834 7,601 Low-carbon and RIN credits 7,461 7,952 Other 1,616 1,538 Total $ 67,305 $ 61,550

DERIVATIVES (Tables)

DERIVATIVES (Tables)	6 Months Ended
	Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivatives Not Designated as Hedging Instruments	The classification and amounts of the Company’s derivatives not designated as hedging instruments, and related cash collateral balances, are as follows (in thousands): As of June 30, 2018 Assets Liabilities Fair Fair Type of Instrument Balance Sheet Location Value Balance Sheet Location Value Cash collateral balance Other current assets $ 5,746 Commodity contracts Derivative instruments $ 7,634 Derivative instruments $ 10,157 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 June 30, Type of Instrument Statements of Operations Location 2018 2017 Commodity contracts Cost of goods sold $ (499 ) $ (574 ) Unrealized Gains (Losses) Three Months Ended June 30, Type of Instrument Statements of Operations Location 2018 2017 Commodity contracts Cost of goods sold $ (2,410 ) $ 6 Realized Losses Six Months Ended June 30, Type of Instrument Statements of Operations Location 2018 2017 Commodity contracts Cost of goods sold $ (2,157 ) $ (2,918 ) Unrealized Gains (Losses) Six Months Ended June 30, Type of Instrument Statements of Operations Location 2018 2017 Commodity contracts Cost of goods sold $ (1,213 ) $ 2,566

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Schedule of Long Term Debt	Long-term borrowings are summarized as follows (in thousands): June 30, December 31, Kinergy line of credit $ 72,028 $ 49,477 Pekin term loan 50,000 53,500 Pekin revolving loan 32,000 32,000 ICP term loan 19,500 22,500 ICP revolving loan 18,000 18,000 Parent notes payable 68,948 68,948 260,476 244,425 Less unamortized debt discount (1,052 ) (1,409 ) Less unamortized debt financing costs (1,653 ) (1,925 ) Less short-term portion (20,000 ) (20,000 ) Long-term debt $ 237,771 $ 221,091

PENSION AND RETIREMENT BENEFI20

PENSION AND RETIREMENT BENEFIT PLANS (Tables)	6 Months Ended
	Jun. 30, 2018
Pension And Retirement Benefit Plans Abstract
Pension Plans	The Company’s net periodic Retirement Plan costs are as follows (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Interest cost $ 174 $ 98 $ 348 $ 195 Service cost 106 188 212 375 Expected return on plan assets (204 ) (169 ) (408 ) (337 ) Net periodic expense $ 76 $ 117 $ 152 $ 233
Postretirement Plan	The Company’s net periodic Postretirement Plan costs are as follows (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Interest cost $ 46 $ 21 $ 92 $ 42 Service cost 2 50 4 100 Amortization of (gain) loss 33 33 66 66 Net periodic expense $ 81 $ 104 $ 162 $ 208

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Summary of Recurring Fair Value Measurements by Level	The following table summarizes recurring fair value measurements by level at June 30, 2018 (in thousands): Fair Value Level 1 Level 2 Level 3 Assets: Derivative instruments $ 7,634 $ 7,634 $ — $ — Liabilities: Derivative instruments $ (10,157 ) $ (10,157 ) $ — $ —

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2018 Loss Shares Denominator Per-Share Amount Net loss attributed to Pacific Ethanol, Inc. $ (12,908 ) Less: Preferred stock dividends (315 ) Basic and diluted loss per share: Loss available to common stockholders $ (13,223 ) 43,285 $ (0.31 ) Three Months Ended June 30, 2017 Loss Shares Denominator Per-Share Amount Net loss attributed to Pacific Ethanol, Inc. $ (8,841 ) Less: Preferred stock dividends (315 ) Basic and diluted loss per share: Loss available to common stockholders $ (9,156 ) 42,295 $ ( 0.22 ) Six Months Ended June 30, 2018 Loss Shares Denominator Per-Share Amount Net loss attributed to Pacific Ethanol, Inc. $ (20,749 ) Less: Preferred stock dividends (627 ) Basic and diluted loss per share: Loss available to common stockholders $ (21,376 ) 43,098 $ ( 0.50 ) Six Months Ended June 30, 2017 Loss Shares Denominator Per-Share Amount Net loss attributed to Pacific Ethanol, Inc. $ (21,477 ) Less: Preferred stock dividends (627 ) Basic and diluted loss per share: Loss available to common stockholders $ (22,104 ) 42,334 $ ( 0.52

ORGANIZATION AND BASIS OF PRE23

ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 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	$ 56,412		$ 56,412		$ 64,501
Bad debt recovery	2,000	$ 5,000
Allowance for doubtful accounts	64		64		$ 19
Bad debt expense			45	$ 2
Benefit for income taxes			$ (563)

SEGMENTS. (Details)

SEGMENTS. (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net Sales	$ 410,522	$ 405,202	$ 810,549	$ 791,542
Cost of goods sold	411,795	403,549	808,460	795,662
Income (loss) before provision for income taxes	(14,604)	(9,938)	(24,664)	(23,423)
Depreciation and amortization	10,253	9,299	20,418	18,408
Interest expense	4,177	2,694	8,682	5,331
Intersubsegment Eliminations [Member]
Net Sales	(2,869)	(2,151)	(5,568)	(4,299)
Cost of goods sold	(3,039)	(2,151)	(5,739)	(4,299)
Ethanol Production [Member]
Net Sales	312,941	188	607,578	499,698
Cost of goods sold	320,631		619,064	505,155
Income (loss) before provision for income taxes	(17,210)		(29,609)	(18,619)
Depreciation and amortization	10,045		19,977	17,862
Interest expense	1,700		3,724	2,211
Ethanol Production [Member] | Ethanol alcohol [Member]
Net Sales	233,888		453,517
Ethanol Production [Member] | Co-product sales [Member]
Net Sales	78,514	58,468	153,048	117,087
Ethanol Production [Member] | Intersegment Sales [Member]
Net Sales	539		1,013
Ethanol Production [Member] | External Customers [Member]
Net Sales		197,657		382,112
Ethanol Production [Member] | Intersegment Net Sales [Member]
Net Sales				499
Marketing [Member]
Net Sales	100,450		208,539
Cost of goods sold	94,203		195,135
Income (loss) before provision for income taxes	4,929		10,677
Interest expense	336		699
Marketing [Member] | Ethanol alcohol Sales Member]
Net Sales	97,634	148,644	203,063	291,526
Marketing [Member] | Ethanol alcohol Sales Net Member]
Net Sales	486	433	921
Marketing [Member] | Net Ethanol Alcohol Sales [Member]
Net Sales		256,313		817
Cost of goods sold		254,570
Income (loss) before provision for income taxes		(6,304)
Depreciation and amortization		9,016
Interest expense		1,119
Marketing and Distribution [Member]
Net Sales		151,040		296,143
Cost of goods sold		151,130		294,806
Income (loss) before provision for income taxes		(1,435)		(1,286)
Interest expense		302		610
Marketing and Distribution [Member] | Intersegment Sales [Member]
Net Sales	2,330		4,555
Marketing and Distribution [Member] | Intersegment Net Sales [Member]
Net Sales		1,963		3,800
Corporate Activities [Member]
Income (loss) before provision for income taxes	(2,323)	(2,199)	(5,732)	(3,518)
Depreciation and amortization	208	283	441	546
Interest expense	$ 2,141	$ 1,273	$ 4,259	$ 2,510

SEGMENTS. (Details 1)

SEGMENTS. (Details 1) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Total Assets	$ 723,232	$ 720,296	[1]
Ethanol Production [Member]
Total Assets	567,322	583,696
Marketing and Distribution [Member]
Total Assets	150,255	127,242
Corporate Assets [Member]
Total Assets	$ 5,655	$ 9,358
[1]	Amounts derived from the audited financial statements for the year ended December 31, 2017

INVENTORIES. (Details)

INVENTORIES. (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finished goods	$ 42,279	$ 35,652
Work in progress	8,115	8,807
Raw materials	7,834	7,601
Low-carbon and RIN credits	7,461	7,952
Other	1,616	1,538
Total	$ 67,305	$ 61,550	[1]
[1]	Amounts derived from the audited financial statements for the year ended December 31, 2017

INVENTORIES (Details Narrative)

INVENTORIES (Details Narrative) $ in Thousands	Dec. 31, 2017USD ($)
Inventories Details Narrative Abstract
Net inventory valuation adjustment	$ 2,678

DERIVATIVES (Details)

DERIVATIVES (Details) - Non Designated Derivative Instruments [Member] - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Cash Collateral Balance [Member]
Derivative assets	$ 5,746	$ 3,813
Commodity Contracts [Member]
Derivative assets	7,634	998
Derivative liabilities	$ 10,157	$ 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		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Realized Gains (Losses)	$ (499)	$ (574)	$ (2,157)	$ (2,918)
Unrealized Gains (Losses)	$ (2,410)	$ 6	$ (1,213)	$ 2,566

DERIVATIVES (Details Narrative)

DERIVATIVES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Recognized losses due to change in fair value	$ 2,909	$ 568	$ 3,370	$ 352

DEBT (Details)

DEBT (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Long-term borrowings are summarized as follows
Total debt	$ 260,476	$ 244,425
Less unamortized debt discount	(1,052)	(1,409)
Less unamortized debt financing costs	(1,653)	(1,925)
Less short-term portion	(20,000)	(20,000)	[1]
Long-term debt	237,771	221,091	[1]
Term Loan [Member] | Illinois Corn Processing, LLC [Member]
Long-term borrowings are summarized as follows
Term debt	19,500	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	72,028	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	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	[1]
Net assets	$ 723,232	$ 720,296
Kinergy Marketing LLC [Member] | Line of Credit [Member]
Unused borrowing capacity	$ 2,612
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	$ 196,000
[1]	Amounts derived from the audited financial statements for the year ended December 31, 2017

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Proceeds from legal settlement	$ 3,900
Gain on litigation settlement	$ 3,600
Co-products Sales Contracts [Member]
Open ethanol indexed-price sales contracts	697,000 tons
Open fixed-price sales contracts valued	$ 22,713
Ethanol Sales Contracts [Member]
Open ethanol indexed-price sales contracts	297,162,000 gallons
Open fixed-price sales contracts valued	$ 76,289
Ethanol Purchase Contracts [Member]
Indexed-price purchase contracts	8,774,000 gallons
Fixed-price purchase contracts value	$ 6,109
Ethanol Purchase Contracts [Member] | Suppliers [Member]
Fixed-price purchase contracts value	$ 28,453

PENSION AND RETIREMENT BENEFI34

PENSION AND RETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Retirement Plan [Member]
Components of net periodic benefit costs are as follows:
Service cost	$ 174	$ 98	$ 348	$ 195
Interest cost	106	188	212	375
Expected return on plan assets	(204)	(169)	(408)	(337)
Net periodic benefit cost	76	117	152	233
Postretirement Plan [Member]
Components of net periodic benefit costs are as follows:
Service cost	46	21	92	42
Interest cost	2	50	4	100
Expected return on plan assets	33	33	66	66
Net periodic benefit cost	$ 81	$ 104	$ 162	$ 208

PENSION PLANS (Details Narrativ

PENSION PLANS (Details Narrative) $ in Thousands	Dec. 31, 2017USD ($)
Postretirement Plan [Member]
Accumulated projected benefit obligation	$ 5,600
Retirement Plan [Member]
Accumulated projected benefit obligation	19,700
Fair value of plan assets	14,000
Underfunded amount	$ 5,700

FAIR VALUE MEASUREMENTS. (Detai

FAIR VALUE MEASUREMENTS. (Details) - Derivative Financial Instrument [Member] $ in Thousands	Mar. 31, 2018USD ($)
Assets:
Assets	$ 7,634
Liabilities:
Liabilities	10,157
Level 1 [Member]
Assets:
Assets	7,634
Liabilities:
Liabilities	10,157
Level 2 [Member]
Assets:
Assets
Liabilities:
Liabilities
Level 3 [Member]
Assets:
Assets
Liabilities:
Liabilities

EARNINGS PER SHARE. (Details)

EARNINGS PER SHARE. (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Loss Numerator
Net loss attributed to Pacific Ethanol, Inc.	$ (12,908)	$ (8,841)	$ (20,749)	$ (21,477)
Less: Preferred stock dividends	(315)	(315)	(627)	(627)
Basic and diluted loss per share:
Net loss available to common stockholders	$ (13,223)	$ (9,156)	$ (21,376)	$ (22,104)
Shares Denominator
Shares available to common stockholders - basic	43,285	42,295	43,098	42,334
Shares available to common stockholders - diluted	43,285	42,295	43,098	42,334
Per-Share Amount
Per-Share amount - basic	$ (0.31)	$ (0.22)	$ (0.50)	$ (0.52)
Per-Shares amount - diluted	$ (0.31)	$ (0.22)	$ (0.50)	$ (0.52)

EARNINGS PER SHARE. (Details Na

EARNINGS PER SHARE. (Details Narrative) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Earnings Per Share.
Potentially dilutive shares from convertible securities outstanding	1,606,000	721,000