Alto Ingredients (ALTO) 10-Q 3 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 02, 2019
Document And Entity Information
Entity Registrant Name	Pacific Ethanol, Inc.
Entity Central Index Key	0000778164
Document Type	10-Q
Trading Symbol	PEIX
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Reporting Status Current	Yes
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Common Stock, Shares Outstanding		49,868,433
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current Assets:
Cash and cash equivalents	$ 21,751	$ 26,627	[1]
Accounts receivable, net (net of allowance for doubtful accounts of $38 and $12, respectively)	78,402	67,636	[1]
Inventories	62,731	57,820	[1]
Prepaid inventory	5,140	3,090	[1]
Income tax receivable	612	612	[1]
Derivative instruments	1,155	1,765	[1]
Other current assets	6,906	11,254	[1]
Total current assets	176,697	168,804	[1]
Property and equipment, net	472,735	482,657	[1]
Other Assets:
Right of use operating lease assets, net	41,839		[1]
Intangible asset	2,678	2,678	[1]
Other assets	5,072	5,842	[1]
Total other assets	49,589	8,520	[1]
Total Assets	699,021	659,981	[1]
Current Liabilities:
Accounts payable - trade	50,531	48,176	[1]
Accrued liabilities	22,773	23,421	[1]
Current portion - operating leases	7,568		[1]
Current portion - long-term debt	143,148	146,671	[1]
Derivative instruments	5,156	6,309	[1]
Other current liabilities	6,993	7,282	[1]
Total current liabilities	236,169	231,859	[1]
Long-term debt, net of current portion	96,433	84,767	[1]
Operating leases, net of current portion	33,091		[1]
Assessment financing	9,342	9,342	[1]
Other liabilities	14,627	14,648	[1]
Total Liabilities	389,662	340,616	[1]
Commitments and Contingencies (Note 7)
Pacific Ethanol, Inc. Stockholders' Equity:
Preferred stock, value			[1]
Common stock, $0.001 par value; 300,000 shares authorized; 48,884 and 45,771 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively	49	46	[1]
Non-voting common stock, $0.001 par value; 3,553 shares authorized; 1 share issued and outstanding as of March 31, 2019 and December 31, 2018			[1]
Additional paid-in capital	936,643	932,179	[1]
Accumulated other comprehensive loss	(2,459)	(2,459)	[1]
Accumulated deficit	(643,202)	(630,000)	[1]
Total Pacific Ethanol, Inc. Stockholders' Equity	291,032	299,767	[1]
Noncontrolling interests	18,327	19,598	[1]
Total Stockholders' Equity	309,359	319,365
Total Liabilities and Stockholders' Equity	699,021	659,981	[1]
Series A Preferred Stock [Member]
Pacific Ethanol, Inc. Stockholders' Equity:
Preferred stock, value			[1]
Series B Preferred Stock [Member]
Pacific Ethanol, Inc. Stockholders' Equity:
Preferred stock, value	$ 1	$ 1	[1]
[1]	Amounts derived from the audited financial statements for the year ended December 31, 2018.

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Accounts receivable, net of allowance	$ 38	$ 12
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized	10,000	10,000
Common stock, par value (in dollars per shares)	$ 0.001	$ 0.001
Common stock, authorized	300,000	300,000
Common stock, issued	48,884	45,771
Common stock, outstanding	48,884	45,771
Series A Preferred Stock [Member]
Preferred stock, authorized	1,684	1,684
Preferred stock, issued
Preferred stock, outstanding
Series B Preferred Stock [Member]
Preferred stock, authorized	1,581	1,581
Preferred stock, issued	927	927
Preferred stock, outstanding	927	927
Liquidation preference		$ 18,075
Non-Voting Common Stock [Member]
Common stock, par value (in dollars per shares)	$ 0.001	$ 0.001
Common stock, authorized	3,553	3,553
Common stock, issued	1	1
Common stock, outstanding	1	1

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Net sales	$ 355,803	$ 400,027
Cost of goods sold	358,092	396,665
Gross profit (loss)	(2,289)	3,362
Selling, general and administrative expenses	8,235	9,315
Loss from operations	(10,524)	(5,953)
Interest expense, net	(4,736)	(4,505)
Other income, net	1,099	398
Loss before benefit for income taxes	(14,161)	(10,060)
Benefit for income taxes		563
Consolidated net loss	(14,161)	(9,497)
Net loss attributed to noncontrolling interests	1,271	1,656
Net loss attributed to Pacific Ethanol, Inc.	(12,890)	(7,841)
Preferred stock dividends	(312)	(312)
Net loss available to common stockholders	$ (13,202)	$ (8,153)
Net loss per share, basic and diluted (in dollars per share)	$ (0.29)	$ (0.19)
Weighted-average shares outstanding, basic and diluted (in shares)	45,517	42,912

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019		Mar. 31, 2018
Operating Activities:
Consolidated net loss	$ (14,161)		$ (9,497)
Adjustments to reconcile consolidated net loss to net cash provided by operating activities:
Depreciation	12,126		10,164
Deferred income taxes			(563)
Amortization of debt discount	178		178
Non-cash compensation	800		736
Amortization of deferred financing fees	135		465
Loss (gain) on derivatives	86		462
Bad debt expense	26		47
Changes in operating assets and liabilities:
Accounts receivable	(9,970)		6,080
Inventories	(4,911)		(8,712)
Prepaid expenses and other assets	5,117		1,370
Prepaid inventory	(2,050)		(328)
Operating leases	(2,676)
Accounts payable and accrued liabilities	273		8,508
Net cash provided by (used in) operating activities	(15,027)		8,910
Investing Activities:
Additions to property and equipment	(1,112)		(4,357)
Net cash used in investing activities	(1,112)		(4,357)
Financing Activities:
Net proceeds from Kinergy's line of credit	13,153		8,722
Proceeds from issuance of common stock	3,670
Principal payments on borrowings	(5,248)		(5,000)
Principal payments on capital leases			(403)
Proceeds from assessment financing			331
Preferred stock dividends paid	(312)		(312)
Net cash provided by financing activities	11,263		3,338
Net increase (decrease) in cash and cash equivalents	(4,876)		7,891
Cash and cash equivalents at beginning of period	26,627	[1]	49,489
Cash and cash equivalents at end of period	21,751		57,380
Supplemental Information:
Interest paid	4,260		3,593
Income taxes received			168
Initial right of use assets and liabilities recorded under ASC 842	$ 43,753
[1]	Amounts derived from the audited financial statements for the year ended December 31, 2018.

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accum. Other Comprehensive Income (Loss) [Member]	Non-Controlling Interest [Member]	Total
Balance at Beginning at Dec. 31, 2017	$ 1	$ 44	$ 927,090	$ (568,462)	$ (2,234)	$ 27,261	$ 383,700
Balance at Beginning (in shares) at Dec. 31, 2017	927	43,986
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense - restricted stock issued to employees and directors, net of cancellations and tax			735				735
Stock-based compensation expense - restricted stock issued to employees and directors, net of cancellations and tax (in shares)		(31)
Preferred stock dividends				(312)			(312)
Net loss				(7,841)		(1,656)	(9,497)
Balance at End at Mar. 31, 2018	$ 1	$ 44	927,825	(576,615)	(2,234)	25,605	374,626
Balance at End (in shares) at Mar. 31, 2018	927	43,955
Balance at Beginning at Dec. 31, 2018	$ 1	$ 46	932,179	(630,000)	(2,459)	19,598	319,365
Balance at Beginning (in shares) at Dec. 31, 2018	927	45,771
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense - restricted stock issued to employees and directors, net of cancellations and tax			797				797
Stock-based compensation expense - restricted stock issued to employees and directors, net of cancellations and tax (in shares)		(24)
Issuances of common stock		$ 3	3,667				3,670
Issuances of common stock (in shares)		3,137
Preferred stock dividends				(312)			(312)
Net loss				(12,890)		(1,271)	(14,161)
Balance at End at Mar. 31, 2019	$ 1	$ 49	$ 936,643	$ (643,202)	$ (2,459)	$ 18,327	$ 309,359
Balance at End (in shares) at Mar. 31, 2019	927	48,884

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION.	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND BASIS OF PRESENTATION.	1. ORGANIZATION AND BASIS OF PRESENTATION. Organization and Business The Company is a leading producer and marketer of low-carbon renewable fuels in the United States. 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. 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. 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 As of March 31, 2019, all but one of the Company’s production facilities, specifically, the Company’s Aurora East facility, were operating. As market conditions change, the Company may increase, decrease or idle production at one or more operating facilities or resume operations at any idled facility. Basis of Presentation – Interim Financial Statements Reclassifications Liquidity In implementing these strategic initiatives, the Company, as of March 31, 2019, had the following available liquidity and capital resources to achieve its objectives: ● Cash of $21.8 million and excess availability under Kinergy’s line of credit of $21.8 million; ● Nine ethanol production facilities with an aggregate of 605 million gallons of annual production capacity, of which plant assets representing 355 million gallons of capacity are either unencumbered, or their entire sales proceeds would be used to repay the Company’s senior secured notes. The Company has engaged an independent third party to help facilitate the marketing of certain of these assets; and ● In excess of $20 million of equity available under the Company’s shelf registration statement, including under its at-the-market equity program. These funds would first be required to repay the Company’s senior secured notes. The Company also will continue working with its lenders to pursue other options to increase liquidity and extend the maturity dates of its debt. The Company believes that its strategic initiatives will provide sufficient liquidity to meet its anticipated working capital, debt service and other liquidity needs through the next twelve months. 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 $67,319,000 and $54,820,000 at March 31, 2019 and December 31, 2018, respectively, were used as collateral under Kinergy’s operating line of credit. The allowance for doubtful accounts was $38,000 and $12,000 as of March 31, 2019 and December 31, 2018, respectively. The Company recorded a bad debt expense of $26,000 and $47,000 for the three months ended March 31, 2019 and 2018, respectively. The Company does not have any off-balance sheet credit exposure related to its customers. Financial Instruments Recent Accounting Pronouncements Estimates and Assumptions

SEGMENTS.

SEGMENTS.	3 Months Ended
	Mar. 31, 2019
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, Net Sales 2019 2018 Production, recorded as gross: Ethanol/alcohol sales $ 179,388 $ 219,628 Co-product sales 68,806 74,534 Intersegment sales 364 474 Total production sales 248,558 294,636 Marketing and distribution: Ethanol/alcohol sales, gross $ 107,154 $ 105,429 Ethanol/alcohol sales, net 455 436 Intersegment sales 1,818 2,226 Total marketing and distribution sales 109,427 108,091 Intersegment eliminations (2,182 ) (2,700 ) Net sales as reported $ 355,803 $ 400,027 Cost of goods sold: Production $ 258,594 $ 298,431 Marketing and distribution 101,829 100,932 Intersegment eliminations (2,331 ) (2,698 ) Cost of goods sold, as reported $ 358,092 $ 396,665 Income (loss) before benefit for income taxes: Production $ (17,566 ) $ (12,445 ) Marketing and distribution 6,119 5,750 Corporate activities (2,714 ) (3,365 ) $ (14,161 ) $ (10,060 ) Depreciation and amortization: Production $ 12,005 $ 9,932 Corporate activities 121 232 $ 12,126 $ 10,164 Interest expense: Production $ 1,706 $ 2,024 Marketing and distribution 588 363 Corporate activities 2,442 2,118 $ 4,736 $ 4,505 The following table sets forth the Company’s total assets by operating segment (in thousands): March 31, December 31, Total assets: Production $ 558,379 $ 532,790 Marketing and distribution 123,552 112,984 Corporate assets 17,090 14,117 $ 699,021 $ 659,891

INVENTORIES.

INVENTORIES.	3 Months Ended
	Mar. 31, 2019
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 $223,000 and $2,328,000 valuation adjustment as of March 31, 2019 and December 31, 2018, respectively. Inventory balances consisted of the following (in thousands): March 31, 2019 December 31, 2018 Finished goods $ 42,355 $ 35,778 Work in progress 7,180 6,855 Raw materials 6,352 7,233 Low-carbon and RIN credits 4,973 6,130 Other 1,871 1,824 Total $ 62,731 $ 57,820

DERIVATIVES.

DERIVATIVES.	3 Months Ended
	Mar. 31, 2019
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, 2019 Assets Liabilities Type of Instrument Balance Sheet Location Fair Balance Sheet Location Fair Cash collateral balance Other current assets $ 4,409 Commodity contracts Derivative instruments $ 1,155 Derivative instruments $ 5,156 As of December 31, 2018 Assets Liabilities Type of Instrument Balance Sheet Location Fair Balance Sheet Location Fair Cash collateral balance Other current assets $ 8,479 Commodity contracts Derivative instruments $ 1,765 Derivative instruments $ 6,309 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 2019 2018 Commodity contracts Cost of goods sold $ (630 ) $ (1,658 ) Unrealized Gains Three Months Ended March 31, Type of Instrument Statements of Operations Location 2019 2018 Commodity contracts Cost of goods sold $ 544 $ 1,196

LEASES.

LEASES.	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
LEASES.	5. LEASES. As discussed in Note 1, on January 1, 2019, the Company adopted the provisions of ASC 842 using the prospective transition approach, which applies the provisions of ASC 842 upon adoption, with no change to prior periods. This adoption resulted in the Company recognizing initial right of use assets and lease liabilities of $43.8 million. The adoption did not have a significant impact on the Company’s consolidated statement of operations. Upon the initial adoption of ASC 842, the Company elected the following practical expedients allowable under the guidance: not to reassess whether any expired or existing contracts are or contain leases; not to reassess the lease classification for any expired or existing leases; not to reassess initial direct costs for any existing leases; not to separately identify lease and nonlease components; and not to evaluate historical land easements. Additionally, the Company elected the short-term lease exemption policy, applying the requirements of ASC 842 to only long-term (greater than 1 year) leases. The Company leases railcar equipment, office equipment and land for certain of its facilities. Operating lease right of use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate, unless an implicit rate is readily determinable, as the discount rate for each lease in determining the present value of lease payments. For the three months ended March 31, 2019, the Company’s weighted average discount rate was 6.01%. Operating lease expense is recognized on a straight-line basis over the lease term. The Company determines if an arrangement is a lease or contains a lease at inception. The Company’s leases have remaining lease terms of approximately 1 year to 57 years, which may include options to extend the lease when it is reasonably certain the Company will exercise those options. For the three months ended March 31, 2019, the weighted average remaining lease term was 15.4 years. The Company does not have lease arrangements with residual value guarantees, sale leaseback terms or material restrictive covenants. The Company does not have any material finance lease obligations nor sublease agreements. The following table summarizes the remaining maturities of the Company’s operating lease liabilities, assuming all land lease extensions are taken, as of March 31, 2019 (in thousands): Year Ended: 2019 $ 7,497 2020 8,370 2021 5,413 2022 5,240 2023 4,513 2024-76 40,282 $ 71,315 For the three months ended March 31, 2019, the Company recorded operating lease costs of $2,263,000 in cost of goods sold and $118,000 in selling, general and administrative expenses in the Company’s statements of operations

DEBT.

DEBT.	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
DEBT.	6. DEBT. Long-term borrowings are summarized as follows (in thousands): March 31, 2019 December 31, 2018 Kinergy line of credit $ 70,209 $ 57,057 Pekin term loan 43,000 43,000 Pekin revolving loan 32,000 32,000 ICP term loan 15,000 16,500 ICP revolving loan 18,000 18,000 Parent notes payable 63,200 66,948 241,409 233,505 Less unamortized debt discount (511 ) (690 ) Less unamortized debt financing costs (1,317 ) (1,377 ) Less short-term portion (143,148 ) (146,671 ) Long-term debt $ 96,433 $ 84,767 Kinergy Operating Line of Credit plus Pekin Term Loan On March 21, 2019, PE Pekin amended its term and revolving credit facilities by agreeing to increase the interest rate under the facilities by 125 basis points to an annual rate equal to the 30-day LIBOR plus 5.00%. PE Pekin and its lender also agreed that it is required to maintain working capital of not less than $15,000,000 from March 21, 2019 through July 15, 2019 and working capital of not less than $30,000,000 from July 15, 2019 and continuing at all times thereafter. Under this amendment, the lenders agreed to temporarily waive financial covenant violations, working capital maintenance violations and intercompany accounts receivable collections violations that occurred with respect to PE Pekin’s credit agreement. The lenders also agreed to defer all scheduled principal payments, including further deferral of a principal payment in the amount of $3,500,000 due on February 20, 2019 which was previously deferred by the parties. The waivers and principal deferral expire on July 15, 2019, or earlier in the case of an event of default, at which time the waivers will become permanent if Pacific Ethanol Central, LLC (“PE Central”), PE Pekin’s parent, has made a contribution to PE Pekin in an amount equal to $30,000,000, minus plus plus PE Pekin is also required to pay by July 15, 2019 the aggregate amount of $14,000,000 representing all deferred scheduled principal payments and all additional scheduled principal payments for the remainder of 2019. Restrictions

COMMITMENTS AND CONTINGENCIES.

COMMITMENTS AND CONTINGENCIES.	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES.	7. COMMITMENTS AND CONTINGENCIES. Sales Commitments Purchase Commitments Litigation – General

PENSION PLANS.

PENSION PLANS.	3 Months Ended
	Mar. 31, 2019
Retirement Benefits [Abstract]
PENSION PLANS.	8. 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 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, 2018, the Retirement Plan’s accumulated projected benefit obligation was $18.7 million, with a fair value of plan assets of $13.3 million. The underfunded amount of $5.4 million is recorded on the Company’s consolidated balance sheet in other liabilities. For the three months ended March 31, 2019, the Retirement Plan’s net periodic expense was $94,000, comprised of $190,000 in interest cost and $94,000 in service cost, partially offset by $190,000 of expected return on plan assets. 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. 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, 2018, the Postretirement Plan’s accumulated projected benefit obligation was $5.7 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, 2019, the Postretirement Plan’s net periodic expense was $102,000, comprised of $55,000 of interest cost, $17,000 of service cost and $30,000 of amortization expense. 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.

FAIR VALUE MEASUREMENTS.

FAIR VALUE MEASUREMENTS.	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS.	9. 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, 2019 (in thousands): Fair Value Level 1 Level 2 Level 3 Assets: Derivative financial instruments(1) $ 1,155 $ 1,155 $ — $ — $ 1,155 $ 1,155 $ — $ — Liabilities: Derivative financial instruments(6) $ (5,156 ) $ (5,156 ) $ — $ — $ (5,156 ) $ (5,156 ) $ — $ — The following table summarizes recurring fair value measurements by level at December 31, 2018 (in thousands): Fair Level 1 Level 2 Level 3 Benefit Plan Assets: Derivative financial instruments(1) $ 1,765 $ 1,765 $ — $ — Defined benefit plan assets (pooled separate accounts): Large U.S. Equity(2) 3,621 — 3,621 — 27 % Small/Mid U.S. Equity(3) 1,844 — 1,844 — 14 % International Equity(4) 2,106 — 2,106 — 16 % Fixed Income(5) 5,686 — 5,686 — 43 % $ 15,022 $ 1,765 $ 13,257 $ — Liabilities: Derivative financial instruments $ (6,309 ) $ (6,309 ) $ — $ — (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, 2019
Earnings Per Share [Abstract]
EARNINGS PER SHARE.	10. EARNINGS PER SHARE. The following tables compute basic and diluted earnings per share (in thousands, except per share data): Three Months Ended March 31, 2019 Loss Shares Denominator Per-Share Amount Net loss attributed to Pacific Ethanol, Inc. $ (12,890 ) Less: Preferred stock dividends (312 ) Basic and diluted loss per share: Net loss available to common stockholders $ (13,202 ) 45,517 $ (0.29 ) Three Months Ended March 31, 2018 Loss Shares Denominator Per-Share Amount 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 ) There were an aggregate of 635,000 and 912,000 potentially dilutive weighted-average shares from convertible securities outstanding for the three months ended March 31, 2019 and 2018, respectively. These convertible securities were not considered in calculating diluted net loss per share for the three months ended March 31, 2019 and 2018, as their effect would have been anti-dilutive.

PARENT COMPANY FINANCIALS.

PARENT COMPANY FINANCIALS.	3 Months Ended
	Mar. 31, 2019
Condensed Financial Information Disclosure [Abstract]
PARENT COMPANY FINANCIALS.	11. PARENT COMPANY FINANCIALS. Restricted Net Assets Parent company financial statements for the periods covered in this report are set forth below (in thousands): ASSETS March 31, 2019 December 31, 2018 Current Assets: Cash and cash equivalents $ 6,282 $ 6,759 Receivables from subsidiaries 10,378 17,156 Other current assets 1,710 1,659 Total current assets 18,370 25,574 Property and equipment, net 447 522 Other Assets: Investments in subsidiaries 282,132 286,666 Pacific Ethanol West plant receivable 58,766 58,766 Right of use operating lease assets, net 3,444 — Other assets 1,437 1,437 Total other assets 345,779 346,869 Total Assets $ 364,596 $ 372,965 Liabilities Current Liabilities: Accounts payable and accrued liabilities $ 2,950 $ 2,469 Accrued PE Op Co. purchase 3,829 3,829 Current portion of long-term debt 62,689 66,255 Other current liabilities 613 385 Total current liabilities 70,081 72,938 Operating leases, net of current portion 3,231 — Deferred tax liabilities 251 251 Other liabilities 1 9 Total Liabilities 73,564 73,198 Stockholders’ Equity: Preferred stock 1 1 Common and non-voting common stock 49 46 Additional paid-in capital 936,643 932,179 Accumulated other comprehensive loss (2,459 ) (2,459 ) Accumulated deficit (643,202 ) (630,000 ) Total Pacific Ethanol, Inc. stockholders’ equity 291,032 299,767 Total Liabilities and Stockholders’ Equity $ 364,596 $ 372,965 Three Months Ended March 31, 2019 2018 Management fees from subsidiaries $ 3,330 $ 3,078 Selling, general and administrative expenses 4,729 5,376 Loss from operations (1,399 ) (2,298 ) Interest income 1,159 1,161 Interest expense (2,456 ) (2,132 ) Loss before benefit for income taxes (2,696 ) (3,269 ) Benefit for income taxes — 563 Loss before equity in losses of subsidiaries (2,696 ) (2,706 ) Equity in losses of subsidiaries (10,194 ) (5,135 ) Consolidated net loss $ (12,890 ) $ (7,841 ) For the Three Months Ended March 31, 2019 2018 Operating Activities: Net loss $ (12,890 ) $ (7,841 ) Adjustments to reconcile net loss to cash used in operating activities: Equity in losses of subsidiaries 10,194 5,135 Depreciation 75 186 Deferred income taxes — 563 Amortization of debt discounts 178 179 Changes in operating assets and liabilities: Accounts receivables 1,778 (2,673 ) Other assets (264 ) (937 ) Accounts payable and accrued expenses 45 1,759 Accounts payable with subsidiaries 797 (625 ) Net cash used in operating activities $ (87 ) $ (4,254 ) Investing Activities: Additions to property and equipment $ — $ (13 ) Net cash used in investing activities $ — $ (13 ) Financing Activities: Proceeds from issuances of common stock $ 3,670 $ — Payments on senior notes (3,748 ) — Preferred stock dividend payments (312 ) (312 ) Net cash used in financing activities $ (390 ) $ (312 ) Net decrease in cash and cash equivalents (477 ) (4,579 ) Cash and cash equivalents at beginning of period 6,759 5,314 Cash and cash equivalents at end of period $ 6,282 $ 735

ORGANIZATION AND BASIS OF PRE_2

ORGANIZATION AND BASIS OF PRESENTATION. (Policies)	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business	Organization and Business The Company is a leading producer and marketer of low-carbon renewable fuels in the United States. 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. 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. 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 As of March 31, 2019, all but one of the Company’s production facilities, specifically, the Company’s Aurora East facility, were operating. As market conditions change, the Company may increase, decrease or idle production at one or more operating facilities or resume operations at any idled facility.
Basis of Presentation-Interim Financial Statements	Basis of Presentation – Interim Financial Statements
Reclassifications	Reclassifications
Liquidity	Liquidity In implementing these strategic initiatives, the Company, as of March 31, 2019, had the following available liquidity and capital resources to achieve its objectives: ● Cash of $21.8 million and excess availability under Kinergy’s line of credit of $21.8 million; ● Nine ethanol production facilities with an aggregate of 605 million gallons of annual production capacity, of which plant assets representing 355 million gallons of capacity are either unencumbered, or their entire sales proceeds would be used to repay the Company’s senior secured notes. The Company has engaged an independent third party to help facilitate the marketing of certain of these assets; and ● In excess of $20 million of equity available under the Company’s shelf registration statement, including under its at-the-market equity program. These funds would first be required to repay the Company’s senior secured notes. The Company also will continue working with its lenders to pursue other options to increase liquidity and extend the maturity dates of its debt. The Company believes that its strategic initiatives will provide sufficient liquidity to meet its anticipated working capital, debt service and other liquidity needs through the next twelve months.
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 $67,319,000 and $54,820,000 at March 31, 2019 and December 31, 2018, respectively, were used as collateral under Kinergy’s operating line of credit. The allowance for doubtful accounts was $38,000 and $12,000 as of March 31, 2019 and December 31, 2018, respectively. The Company recorded a bad debt expense of $26,000 and $47,000 for the three months ended March 31, 2019 and 2018, respectively. The Company does not have any off-balance sheet credit exposure related to its customers.
Financial Instruments	Financial Instruments
Recent Accounting Pronouncements	Recent Accounting Pronouncements
Estimates and Assumptions	Estimates and Assumptions

SEGMENTS. (Tables)

SEGMENTS. (Tables)	3 Months Ended
	Mar. 31, 2019
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, Net Sales 2019 2018 Production, recorded as gross: Ethanol/alcohol sales $ 179,388 $ 219,628 Co-product sales 68,806 74,534 Intersegment sales 364 474 Total production sales 248,558 294,636 Marketing and distribution: Ethanol/alcohol sales, gross $ 107,154 $ 105,429 Ethanol/alcohol sales, net 455 436 Intersegment sales 1,818 2,226 Total marketing and distribution sales 109,427 108,091 Intersegment eliminations (2,182 ) (2,700 ) Net sales as reported $ 355,803 $ 400,027 Cost of goods sold: Production $ 258,594 $ 298,431 Marketing and distribution 101,829 100,932 Intersegment eliminations (2,331 ) (2,698 ) Cost of goods sold, as reported $ 358,092 $ 396,665 Income (loss) before benefit for income taxes: Production $ (17,566 ) $ (12,445 ) Marketing and distribution 6,119 5,750 Corporate activities (2,714 ) (3,365 ) $ (14,161 ) $ (10,060 ) Depreciation and amortization: Production $ 12,005 $ 9,932 Corporate activities 121 232 $ 12,126 $ 10,164 Interest expense: Production $ 1,706 $ 2,024 Marketing and distribution 588 363 Corporate activities 2,442 2,118 $ 4,736 $ 4,505
Schedule of assets by operating segments	The following table sets forth the Company’s total assets by operating segment (in thousands): March 31, December 31, Total assets: Production $ 558,379 $ 532,790 Marketing and distribution 123,552 112,984 Corporate assets 17,090 14,117 $ 699,021 $ 659,891

INVENTORIES. (Tables)

INVENTORIES. (Tables)	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Schedule of inventories	Inventory balances consisted of the following (in thousands): March 31, 2019 December 31, 2018 Finished goods $ 42,355 $ 35,778 Work in progress 7,180 6,855 Raw materials 6,352 7,233 Low-carbon and RIN credits 4,973 6,130 Other 1,871 1,824 Total $ 62,731 $ 57,820

DERIVATIVES. (Tables)

DERIVATIVES. (Tables)	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 Assets Liabilities Type of Instrument Balance Sheet Location Fair Balance Sheet Location Fair Cash collateral balance Other current assets $ 4,409 Commodity contracts Derivative instruments $ 1,155 Derivative instruments $ 5,156 As of December 31, 2018 Assets Liabilities Type of Instrument Balance Sheet Location Fair Balance Sheet Location Fair Cash collateral balance Other current assets $ 8,479 Commodity contracts Derivative instruments $ 1,765 Derivative instruments $ 6,309
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 2019 2018 Commodity contracts Cost of goods sold $ (630 ) $ (1,658 ) Unrealized Gains Three Months Ended March 31, Type of Instrument Statements of Operations Location 2019 2018 Commodity contracts Cost of goods sold $ 544 $ 1,196

LEASES. (Tables)

LEASES. (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Schedule of operating lease liabilities	The following table summarizes the remaining maturities of the Company’s operating lease liabilities, assuming all land lease extensions are taken, as of March 31, 2019 (in thousands): Year Ended: 2019 $ 7,497 2020 8,370 2021 5,413 2022 5,240 2023 4,513 2024-76 40,282 $ 71,315

DEBT. (Tables)

DEBT. (Tables)	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Schedule of long term debt	Long-term borrowings are summarized as follows (in thousands): March 31, 2019 December 31, 2018 Kinergy line of credit $ 70,209 $ 57,057 Pekin term loan 43,000 43,000 Pekin revolving loan 32,000 32,000 ICP term loan 15,000 16,500 ICP revolving loan 18,000 18,000 Parent notes payable 63,200 66,948 241,409 233,505 Less unamortized debt discount (511 ) (690 ) Less unamortized debt financing costs (1,317 ) (1,377 ) Less short-term portion (143,148 ) (146,671 ) Long-term debt $ 96,433 $ 84,767

FAIR VALUE MEASUREMENTS. (Table

FAIR VALUE MEASUREMENTS. (Tables)	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Schedule of recurring fair value measurements	The following table summarizes recurring fair value measurements by level at March 31, 2019 (in thousands): Fair Value Level 1 Level 2 Level 3 Assets: Derivative financial instruments(1) $ 1,155 $ 1,155 $ — $ — $ 1,155 $ 1,155 $ — $ — Liabilities: Derivative financial instruments(6) $ (5,156 ) $ (5,156 ) $ — $ — $ (5,156 ) $ (5,156 ) $ — $ — The following table summarizes recurring fair value measurements by level at December 31, 2018 (in thousands): Fair Level 1 Level 2 Level 3 Benefit Plan Assets: Derivative financial instruments(1) $ 1,765 $ 1,765 $ — $ — Defined benefit plan assets (pooled separate accounts): Large U.S. Equity(2) 3,621 — 3,621 — 27 % Small/Mid U.S. Equity(3) 1,844 — 1,844 — 14 % International Equity(4) 2,106 — 2,106 — 16 % Fixed Income(5) 5,686 — 5,686 — 43 % $ 15,022 $ 1,765 $ 13,257 $ — Liabilities: Derivative financial instruments $ (6,309 ) $ (6,309 ) $ — $ — (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, 2019
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, 2019 Loss Shares Denominator Per-Share Amount Net loss attributed to Pacific Ethanol, Inc. $ (12,890 ) Less: Preferred stock dividends (312 ) Basic and diluted loss per share: Net loss available to common stockholders $ (13,202 ) 45,517 $ (0.29 ) Three Months Ended March 31, 2018 Loss Shares Denominator Per-Share Amount 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 )

PARENT COMPANY FINANCIALS. (Tab

PARENT COMPANY FINANCIALS. (Tables)	3 Months Ended
	Mar. 31, 2019
Condensed Financial Information Disclosure [Abstract]
Schedule of balance sheets - parent company	Parent company financial statements for the periods covered in this report are set forth below (in thousands): ASSETS March 31, 2019 December 31, 2018 Current Assets: Cash and cash equivalents $ 6,282 $ 6,759 Receivables from subsidiaries 10,378 17,156 Other current assets 1,710 1,659 Total current assets 18,370 25,574 Property and equipment, net 447 522 Other Assets: Investments in subsidiaries 282,132 286,666 Pacific Ethanol West plant receivable 58,766 58,766 Right of use operating lease assets, net 3,444 — Other assets 1,437 1,437 Total other assets 345,779 346,869 Total Assets $ 364,596 $ 372,965 Liabilities Current Liabilities: Accounts payable and accrued liabilities $ 2,950 $ 2,469 Accrued PE Op Co. purchase 3,829 3,829 Current portion of long-term debt 62,689 66,255 Other current liabilities 613 385 Total current liabilities 70,081 72,938 Operating leases, net of current portion 3,231 — Deferred tax liabilities 251 251 Other liabilities 1 9 Total Liabilities 73,564 73,198 Stockholders’ Equity: Preferred stock 1 1 Common and non-voting common stock 49 46 Additional paid-in capital 936,643 932,179 Accumulated other comprehensive loss (2,459 ) (2,459 ) Accumulated deficit (643,202 ) (630,000 ) Total Pacific Ethanol, Inc. stockholders’ equity 291,032 299,767 Total Liabilities and Stockholders’ Equity $ 364,596 $ 372,965
Schedule of statements of operations parent company	Three Months Ended March 31, 2019 2018 Management fees from subsidiaries $ 3,330 $ 3,078 Selling, general and administrative expenses 4,729 5,376 Loss from operations (1,399 ) (2,298 ) Interest income 1,159 1,161 Interest expense (2,456 ) (2,132 ) Loss before benefit for income taxes (2,696 ) (3,269 ) Benefit for income taxes — (563 ) Loss before equity in losses of subsidiaries (2,696 ) (2,706 ) Equity in losses of subsidiaries (10,194 ) (5,135 ) Consolidated net loss $ (12,890 ) $ (7,841 )
Schedule of statements of cash flows parent company	For the Three Months Ended March 31, 2019 2018 Operating Activities: Net loss $ (12,890 ) $ (7,841 ) Adjustments to reconcile net loss to cash used in operating activities: Equity in losses of subsidiaries 10,194 5,135 Depreciation 75 186 Deferred income taxes — 563 Amortization of debt discounts 178 179 Changes in operating assets and liabilities: Accounts receivables 1,778 (2,673 ) Other assets (264 ) (937 ) Accounts payable and accrued expenses 45 1,759 Accounts payable with subsidiaries 797 (625 ) Net cash used in operating activities $ (87 ) $ (4,254 ) Investing Activities: Additions to property and equipment $ — $ (13 ) Net cash used in investing activities $ — $ (13 ) Financing Activities: Proceeds from issuances of common stock $ 3,670 $ — Payments on senior notes (3,748 ) — Preferred stock dividend payments (312 ) (312 ) Net cash used in financing activities $ (390 ) $ (312 ) Net decrease in cash and cash equivalents (477 ) (4,579 ) Cash and cash equivalents at beginning of period 6,759 5,314 Cash and cash equivalents at end of period $ 6,282 $ 735

ORGANIZATION AND BASIS OF PRE_3

ORGANIZATION AND BASIS OF PRESENTATION. (Details Narrative) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)Number	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)		Dec. 31, 2017USD ($)
Ethanol production capacity per year	605 million gallons per year&#160
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	$ 67,319	$ 54,820
Allowance for doubtful accounts	38	12	$ 12
Bad debt expense	26	47
Cash	$ 21,751	$ 57,380	$ 26,627	[1]	$ 49,489
Number of ethanol plants | Number	9
Ethanol production plant assest	355 million gallons
Ethanol production market equity	$ 200
Kinergy Marketing LLC [Member]
Line of credit	$ 21,800
[1]	Amounts derived from the audited financial statements for the year ended December 31, 2018.

SEGMENTS. (Details)

SEGMENTS. (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net Sales	$ 355,803	$ 400,027
Cost of goods sold	358,092	396,665
Income (loss) before benefit for income taxes:	(14,161)	(10,060)
Depreciation	12,126	10,164
Interest expense	4,736	4,505
Intersubsegment Eliminations [Member]
Net Sales	(2,182)	(2,700)
Cost of goods sold	(2,331)	(2,698)
Ethanol Production [Member]
Net Sales	248,558	294,636
Cost of goods sold	258,594	298,431
Income (loss) before benefit for income taxes:	(17,566)	(12,445)
Depreciation	12,005	9,932
Interest expense	1,706	2,024
Ethanol Production [Member] | Ethanol alcohol [Member]
Net Sales	179,388	219,628
Ethanol Production [Member] | Co-product sales [Member]
Net Sales	68,806	74,534
Ethanol Production [Member] | Intersegment Sales [Member]
Net Sales	364	474
Marketing And Distribution [Member]
Net Sales	109,427	108,091
Cost of goods sold	101,829	100,932
Income (loss) before benefit for income taxes:	6,119	5,750
Interest expense	588	363
Marketing And Distribution [Member] | Intersegment Sales [Member]
Net Sales	1,818	2,226
Marketing And Distribution [Member] | Ethanol alcohol Sales Member]
Net Sales	107,154	105,429
Marketing And Distribution [Member] | Ethanol alcohol Sales Net Member]
Net Sales	455	436
Corporate Activities [Member]
Income (loss) before benefit for income taxes:	(2,714)	(3,365)
Depreciation	121	232
Interest expense	$ 2,442	$ 2,118

SEGMENTS. (Details 1)

SEGMENTS. (Details 1) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Total Assets	$ 699,021	$ 659,981	[1]
Ethanol Production [Member]
Total Assets	558,379	532,790
Marketing and Distribution [Member]
Total Assets	123,552	112,984
Corporate Assets [Member]
Total Assets	$ 17,090	$ 14,117
[1]	Amounts derived from the audited financial statements for the year ended December 31, 2018.

SEGMENTS. (Details Narrative)

SEGMENTS. (Details Narrative)	3 Months Ended
	Mar. 31, 2019Number
Segment Reporting [Abstract]
Number of operating segments	2

INVENTORIES. (Details)

INVENTORIES. (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Finished goods	$ 42,355	$ 35,778
Work in progress	7,180	6,855
Raw materials	6,352	7,233
Low-carbon and RIN credits	4,973	6,130
Other	1,871	1,824
Total	$ 62,731	$ 57,820	[1]
[1]	Amounts derived from the audited financial statements for the year ended December 31, 2018.

INVENTORIES. (Details Narrative

INVENTORIES. (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Inventory, net of valuation adjustments	$ 223	$ 2,328

DERIVATIVES. (Details)

DERIVATIVES. (Details) - Non Designated Derivative Instruments [Member] - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Cash Collateral Balance [Member]
Derivative assets	$ 4,409	$ 8,479
Commodity Contracts [Member]
Derivative assets	1,155	1,765
Derivative liabilities	$ 5,156	$ 6,309

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, 2019	Mar. 31, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Realized Gains (Losses)	$ (630)	$ (1,658)
Unrealized Gains (Losses)	$ 544	$ 1,196

DERIVATIVES. (Details Narrative

DERIVATIVES. (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Recognized losses due to change in fair value	$ 86	$ 462

LEASES. (Details)

LEASES. (Details) $ in Thousands	Mar. 31, 2019USD ($)
Leases [Abstract]
2019	$ 7,497
2020	8,370
2021	5,413
2022	5,240
2023	4,513
2024-76	40,282
Total	$ 71,315

LEASES. (Details Narrative)

LEASES. (Details Narrative) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Right of assets and operating lease liability	$ 43,800
Weighted average remaining lease term	15 years 4 months 24 days
Operating lease, weighted average discount rate	6.01%
Operating lease costs	$ 2,263
Selling, General and Administrative Expenses [Member]
Operating lease costs	$ 118
Minimum [Member]
Lease term	1 year
Maximum [Member]
Lease term	57 years

DEBT. (Details)

DEBT. (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Long-term borrowings are summarized as follows
Total debt	$ 241,409	$ 233,505
Less unamortized debt discount	(511)	(690)
Less unamortized debt financing costs	(1,317)	(1,377)
Less short-term portion	(143,148)	(146,671)	[1]
Long-term debt	96,433	84,767	[1]
Term Loan [Member] | Illinois Corn Processing, LLC [Member]
Long-term borrowings are summarized as follows
Term debt	15,000	16,500
Parent Notes Payable [Member]
Long-term borrowings are summarized as follows
Notes payable	63,200	66,948
Revolving Credit Facility [Member] | Illinois Corn Processing, LLC [Member]
Long-term borrowings are summarized as follows
Term debt	18,000	18,000
Kinergy Marketing LLC [Member]
Long-term borrowings are summarized as follows
Line of credit	21,800
Kinergy Marketing LLC [Member] | Line of Credit [Member]
Long-term borrowings are summarized as follows
Line of credit	70,209	57,057
Pacific Ethanol Pekin, Inc [Member] | Term Loan [Member]
Long-term borrowings are summarized as follows
Term debt	43,000	43,000
Pacific Ethanol Pekin, Inc [Member] | Revolving Credit Facility [Member]
Long-term borrowings are summarized as follows
Term debt	$ 32,000	$ 32,000
[1]	Amounts derived from the audited financial statements for the year ended December 31, 2018.

DEBT (Details Narrative)

DEBT (Details Narrative) - USD ($) $ in Thousands	Mar. 27, 2019	Mar. 21, 2019	Mar. 30, 2018	Mar. 31, 2019	Dec. 31, 2018	[1]
Net assets				$ 699,021	$ 659,981
Kinergy Marketing LLC [Member] | Amended Line of Credit [Member]
Unused borrowing capacity				21,848
Temporary increase incremental availability				7,532
Description of borrowing capacity	The borrowing base under the credit facility to 90% (increased from 85%) of eligible accounts receivable, <u>plus</u> the lesser of (a) $50,000,000, (b) 80% of eligible inventory (increased from 70%), or (c) 95% of the estimated recovery value of eligible inventory (increased from 85%).
Interest rate term	Accrue interest at an annual rate equal to the daily three month LIBOR plus an applicable margin of 4.00%.
Expiration date	Sep. 30, 2019
Pacific Ethanol Pekin Inc [Member] | Term Loan [Member]
Description of debt covenant			One of the 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 Ethanol Pekin Inc [Member] | Amended Line of Credit [Member] | Lender [Member]
Debt face amount				$ 3,500
Debt maturity date				Feb. 20, 2019
Interest rate term		Interest rate under the facilities by 125 basis points to an annual rate equal to the 30-day LIBOR plus 5.00%.
Description of maintain working capital		Working capital of not less than $15,000,000 from March 21, 2019 through July 15, 2019 and working capital of not less than $30,000,000 from July 15, 2019 and continuing at all times thereafter.
Description of event of default				At which time the waivers will become permanent if Pacific Ethanol Central, LLC (“PE Central”), PE Pekin’s parent, has made a contribution to PE Pekin in an amount equal to $30,000,000, <u>minus</u> the then-existing amount of PE Pekin’s working capital, <u>plus </u>the amount of any accounts receivable owed by PE Central to PE Pekin, <u>plus</u> $12,000,000 (the “PE Central Contribution Amount”).
Pacific Ethanol Pekin Inc [Member] | Line of Credit [Member]
Debt face amount				$ 14,000
Net assets				$ 195,000
Date of first required principal payment				Jul. 15, 2019
[1]	Amounts derived from the audited financial statements for the year ended December 31, 2018.

COMMITMENTS AND CONTINGENCIES.

COMMITMENTS AND CONTINGENCIES. (Details Narrative) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Ethanol Purchase Contracts [Member]
Indexed-price purchase contracts	11,442,000 gallons
Fixed-price purchase contracts value	$ 5,605
Ethanol Purchase Contracts [Member] | Suppliers [Member]
Fixed-price purchase contracts value	$ 16,700
Co-products Sales Contracts [Member]
Open ethanol indexed-price sales contracts	721,000 tons
Open fixed-price sales contracts valued	$ 31,376
Ethanol Sales Contracts [Member]
Open ethanol indexed-price sales contracts	241,528,000 gallons
Open fixed-price sales contracts valued	$ 80,294

PENSION PLANS. (Details Narrati

PENSION PLANS. (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Postretirement Plan [Member]
Accumulated projected benefit obligation			$ 5,700
Net periodic expense	$ 102	$ 81
Interest cost	55	46
Service cost	17	2
Amortization expense	30	33
Retirement Plan [Member]
Accumulated projected benefit obligation			18,700
Fair value of plan assets			13,300
Underfunded amount			$ 5,400
Net periodic expense	94	76
Interest cost	190	174
Service cost	94	106
Expected return on plan assets	$ 190	$ 204

FAIR VALUE MEASUREMENTS. (Detai

FAIR VALUE MEASUREMENTS. (Details) - USD ($) $ in Thousands		Mar. 31, 2019		Dec. 31, 2018
Assets:
Assets		$ 1,155		$ 15,022
Liabilities:
Liabilities		(5,156)
Level 1 [Member]
Assets:
Assets		1,155		1,765
Liabilities:
Liabilities		(5,156)
Level 2 [Member]
Assets:
Assets				13,257
Liabilities:
Liabilities
Level 3 [Member]
Assets:
Assets
Liabilities:
Liabilities
Derivative Financial Instrument [Member]
Assets:
Assets		1,155	[1]	1,765	[2]
Liabilities:
Liabilities		(5,156)	[1]	(6,309)
Derivative Financial Instrument [Member] | Level 1 [Member]
Assets:
Assets		1,155	[1]	1,765	[2]
Liabilities:
Liabilities		(5,156)	[1]	(6,309)
Derivative Financial Instrument [Member] | Level 2 [Member]
Assets:
Assets			[1]		[2]
Liabilities:
Liabilities			[1]
Derivative Financial Instrument [Member] | Level 3 [Member]
Assets:
Assets			[1]		[2]
Liabilities:
Liabilities			[1]
Defined Benefit Plan Assets Large U.S. Equity [Member]
Assets:
Assets	[3]			$ 3,621
Liabilities:
Benefit plan allocation percentage	[1]			27.00%
Defined Benefit Plan Assets Large U.S. Equity [Member] | Level 1 [Member]
Assets:
Assets	[3]
Defined Benefit Plan Assets Large U.S. Equity [Member] | Level 2 [Member]
Assets:
Assets	[3]			3,621
Defined Benefit Plan Assets Large U.S. Equity [Member] | Level 3 [Member]
Assets:
Assets	[3]
Defined Benefit Plan Assets Small/Mid U.S. Equity [Member]
Assets:
Assets	[4]			$ 1,844
Liabilities:
Benefit plan allocation percentage	[3]			14.00%
Defined Benefit Plan Assets Small/Mid U.S. Equity [Member] | Level 1 [Member]
Assets:
Assets	[4]
Defined Benefit Plan Assets Small/Mid U.S. Equity [Member] | Level 2 [Member]
Assets:
Assets	[4]			1,844
Defined Benefit Plan Assets Small/Mid U.S. Equity [Member] | Level 3 [Member]
Assets:
Assets	[4]
Defined Benefit Plan Assets International Equity [Member]
Assets:
Assets	[5]			$ 2,106
Liabilities:
Benefit plan allocation percentage	[4]			16.00%
Defined Benefit Plan Assets International Equity [Member] | Level 1 [Member]
Assets:
Assets	[5]
Defined Benefit Plan Assets International Equity [Member] | Level 2 [Member]
Assets:
Assets	[5]			2,106
Defined Benefit Plan Assets International Equity [Member] | Level 3 [Member]
Assets:
Assets	[5]
Defined Benefit Plan Assets Fixed Income [Member]
Assets:
Assets	[6]			$ 5,686
Liabilities:
Benefit plan allocation percentage	[5]			43.00%
Defined Benefit Plan Assets Fixed Income [Member] | Level 1 [Member]
Assets:
Assets	[6]
Defined Benefit Plan Assets Fixed Income [Member] | Level 2 [Member]
Assets:
Assets	[6]			5,686
Defined Benefit Plan Assets Fixed Income [Member] | Level 3 [Member]
Assets:
Assets	[6]
[1]	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.
[2]	Included in derivative instruments in the consolidated balance sheets.
[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]	Amounts derived from the audited financial statements for the year ended December 31, 2018.

EARNINGS PER SHARE. (Details)

EARNINGS PER SHARE. (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Loss Numerator
Net loss attributed to Pacific Ethanol, Inc.	$ (12,890)	$ (7,841)
Less: Preferred stock dividends	(312)	(312)
Basic and diluted loss per share:
Net loss available to common stockholders	$ (13,202)	$ (8,153)
Shares Denominator
Shares available to common stockholders - basic and diluted	45,517	42,912
Per-Share Amount
Per-Share amount - basic and diluted	$ (0.29)	$ (0.19)

EARNINGS PER SHARE. (Details Na

EARNINGS PER SHARE. (Details Narrative) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share.
Potentially dilutive shares from convertible securities outstanding	635	912

PARENT COMPANY FINANCIALS. (Det

PARENT COMPANY FINANCIALS. (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018		Mar. 31, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents	$ 21,751	$ 26,627	[1]	$ 57,380	$ 49,489
Other current assets	6,906	11,254	[1]
Total current assets	176,697	168,804	[1]
Property and equipment, net	472,735	482,657	[1]
Other Assets:
Right of use operating lease assets, net	41,839		[1]
Other assets	5,072	5,842	[1]
Total Assets	699,021	659,981	[1]
Current Liabilities:
Current portion of long-term debt	143,148	146,671	[1]
Total current liabilities	236,169	231,859	[1]
Other liabilities	6,993	7,282	[1]
Total Liabilities	389,662	340,616	[1]
Stockholders' Equity:
Preferred stock			[1]
Common and non-voting common stock	49	46	[1]
Additional paid-in capital	936,643	932,179	[1]
Accumulated other comprehensive loss	(2,459)	(2,459)	[1]
Accumulated deficit	(643,202)	(630,000)	[1]
Total Pacific Ethanol, Inc. Stockholders' Equity	291,032	299,767	[1]
Total Liabilities and Stockholders' Equity	699,021	659,981	[1]
Parent Company [Member]
Current Assets:
Cash and cash equivalents	6,282	6,759		$ 735	$ 5,314
Receivables from subsidiaries	10,378	17,156
Other current assets	1,710	1,659
Total current assets	18,370	25,574
Property and equipment, net	447	522
Other Assets:
Investments in subsidiaries	282,132	286,666
Pacific Ethanol West plant receivable	58,766	58,766
Right of use operating lease assets, net	3,444
Other assets	1,437	1,437
Total other assets	345,779	346,869
Total Assets	364,596	372,965
Current Liabilities:
Accounts payable and accrued liabilities	2,950	2,469
Accrued PE Op Co. purchase	3,829	3,829
Current portion of long-term debt	62,689	66,255
Other current liabilities	613	385
Total current liabilities	70,081	72,938
Operating leases, net of current portion	3,231
Deferred tax liabilities	251	251
Other liabilities	1	9
Total Liabilities	73,564	73,198
Stockholders' Equity:
Preferred stock	1	1
Common and non-voting common stock	49	46
Additional paid-in capital	936,643	932,179
Accumulated other comprehensive loss	(2,459)	(2,459)
Accumulated deficit	(643,202)	(630,000)
Total Pacific Ethanol, Inc. Stockholders' Equity	291,032	299,767
Total Liabilities and Stockholders' Equity	$ 364,596	$ 372,965
[1]	Amounts derived from the audited financial statements for the year ended December 31, 2018.

PARENT COMPANY FINANCIALS. (D_2

PARENT COMPANY FINANCIALS. (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Selling, general and administrative expenses	$ 8,235	$ 9,315
Loss from operations	(10,524)	(5,953)
Interest expense	(4,736)	(4,505)
Loss before benefit for income taxes	(14,161)	(10,060)
Benefit for income taxes		(563)
Consolidated net loss	(14,161)	(9,497)
Parent Company [Member]
Management fees from subsidiaries	3,330	3,078
Selling, general and administrative expenses	4,729	5,376
Loss from operations	(1,399)	(2,298)
Interest income	1,159	1,161
Interest expense	(2,456)	(2,132)
Loss before benefit for income taxes	(2,696)	(3,269)
Benefit for income taxes		(563)
Loss before equity in losses of subsidiaries	(2,696)	(2,706)
Equity in losses of subsidiaries	(10,194)	(5,135)
Consolidated net loss	$ (12,890)	$ (7,841)

PARENT COMPANY FINANCIALS. (D_3

PARENT COMPANY FINANCIALS. (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019		Mar. 31, 2018
Operating Activities:
Net loss	$ (12,890)		$ (7,841)
Adjustments to reconcile net loss to cash used in operating activities:
Amortization of debt discounts	178		178
Changes in operating assets and liabilities:
Accounts receivables	(9,970)		6,080
Accounts payable and accrued expenses	273		8,508
Net cash used in operating activities	(15,027)		8,910
Investing Activities:
Additions to property and equipment	(1,112)		(4,357)
Net cash used in investing activities	(1,112)		(4,357)
Financing Activities:
Proceeds from issuances of common stock	3,670
Net cash provided by financing activities	11,263		3,338
Net decrease in cash and cash equivalents	(4,876)		7,891
Cash and cash equivalents at beginning of period	26,627	[1]	49,489
Cash and cash equivalents at end of period	21,751		57,380
Parent Company [Member]
Operating Activities:
Net loss	(12,890)		(7,841)
Adjustments to reconcile net loss to cash used in operating activities:
Equity in losses of subsidiaries	10,194		5,135
Depreciation	75		186
Deferred income taxes			563
Amortization of debt discounts	178		179
Changes in operating assets and liabilities:
Accounts receivables	1,778		(2,673)
Other assets	(264)		(937)
Accounts payable and accrued expenses	45		1,759
Accounts payable with subsidiaries	797		(625)
Net cash used in operating activities	(87)		(4,254)
Investing Activities:
Additions to property and equipment			(13)
Net cash used in investing activities			(13)
Financing Activities:
Proceeds from issuances of common stock	3,670
Payments on senior notes	(3,748)
Preferred stock dividend payments	(312)		(312)
Net cash provided by financing activities	(390)		(312)
Net decrease in cash and cash equivalents	(477)		(4,579)
Cash and cash equivalents at beginning of period	6,759		5,314
Cash and cash equivalents at end of period	$ 6,282		$ 735
[1]	Amounts derived from the audited financial statements for the year ended December 31, 2018.

PARENT COMPANY FINANCIALS. (D_4

PARENT COMPANY FINANCIALS. (Details Narrative) $ in Thousands	Mar. 31, 2019USD ($)
Condensed Financial Information Disclosure [Abstract]
Net asset	$ 195,000