Alto Ingredients (ALTO) 10-Q 9 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 08, 2017
Document And Entity Information
Entity Registrant Name	Pacific Ethanol, Inc.
Entity Central Index Key	778,164
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		43,971,127
Trading Symbol	PEIX
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 56,923	$ 68,590
Accounts receivable, net (net of allowance for doubtful accounts of $18 and $331, respectively)	72,282	86,275
Inventories	71,819	60,070
Prepaid inventory	5,622	9,946
Income tax receivables	129	5,730
Derivative Instruments	3,017	978
Other current assets	3,026	3,612
Total current assets	212,818	235,201
Property and equipment, net	509,369	465,190
Other Assets:
Intangible assets, net	2,678	2,678
Other assets	5,785	5,169
Total other assets	8,463	7,847
Total Assets	730,650	708,238
Current Liabilities:
Accounts payable - trade	41,178	37,051
Accrued liabilities	22,245	20,280
Current portion - capital leases	799	794
Current portion - long-term debt	20,000	10,500
Derivative instruments	2,755	4,115
Accrued PE Op Co. purchase	3,828	3,828
Other current liabilities	1,591	2,273
Total current liabilities	92,396	78,841
Long-term debt, net of current portion	220,304	188,028
Capital leases, net of current portion	134	547
Warrant liabilities at fair value	0	651
Other liabilities	20,915	21,910
Total Liabilities	333,749	289,977
Pacific Ethanol, Inc. Stockholders' Equity:
Common stock, $0.001 par value; 300,000 shares authorized; 43,971 and 39,772 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively	44	40
Non-voting common stock, $0.001 par value; 3,553 shares authorized; 1 and 3,540 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively	0	4
Additional paid-in capital	926,248	922,698
Accumulated other comprehensive (loss)	(2,620)	(2,620)
Accumulated deficit	(554,858)	(532,233)
Total Pacific Ethanol, Inc. Stockholders' Equity	368,815	387,890
Noncontrolling interests	28,086	30,371
Total Stockholders' Equity	396,901	418,261
Total Liabilities and Stockholders' Equity	730,650	708,238
Series A Preferred Stock [Member]
Pacific Ethanol, Inc. Stockholders' Equity:
Preferred stock, $0.001 par value; 10,000 shares authorized	0	0
Series B Preferred Stock [Member]
Pacific Ethanol, Inc. Stockholders' Equity:
Preferred stock, $0.001 par value; 10,000 shares authorized	$ 1	$ 1

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accounts receivable, net of allowance	$ 18	$ 331
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000	10,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	300,000	300,000
Common stock, shares issued	43,971	39,772
Common stock, shares outstanding	43,971	39,772
Series A Preferred Stock [Member]
Preferred stock, shares authorized	1,684	1,684
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series B Preferred Stock [Member]
Preferred stock, shares authorized	1,581	1,581
Preferred stock, shares issued	927	927
Preferred stock, shares outstanding	927	927
Liquidation preference	$ 18,075
Nonvoting Common Stock [Member]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	3,553	3,553
Common stock, shares issued	1	3,540
Common stock, shares outstanding	1	3,540

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Net sales	$ 445,442	$ 417,806	$ 1,236,984	$ 1,183,039
Cost of goods sold	433,377	411,442	1,229,039	1,157,902
Gross profit	12,065	6,364	7,945	25,137
Selling, general and administrative expenses	8,720	5,971	22,932	20,436
Income (loss) from operations	3,345	393	(14,987)	4,701
Fair value adjustments	0	(69)	473	(53)
Interest expense, net	(3,826)	(3,874)	(9,157)	(16,643)
Other income (expense), net	(60)	32	(293)	92
Loss before provision (benefit) for income taxes	(541)	(3,518)	(23,964)	(11,903)
Provision (benefit) for income taxes	0	0	0	(245)
Consolidated net loss	(541)	(3,518)	(23,964)	(11,658)
Net loss attributed to noncontrolling interests	339	0	2,285	0
Net loss attributed to Pacific Ethanol, Inc.	(202)	(3,518)	(21,679)	(11,658)
Preferred stock dividends	(319)	(319)	(946)	(949)
Net loss available to common stockholders	$ (521)	$ (3,837)	$ (22,625)	$ (12,607)
Net loss per share, basic and diluted	$ (0.01)	$ (0.09)	$ (0.53)	$ (0.30)
Weighted average number of shares outstanding, basic and diluted	42,475	42,226	42,358	42,156

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating Activities:
Consolidated net loss	$ (23,964)	$ (11,658)
Adjustments to reconcile consolidated net loss to net cash provided by operating activities:
Depreciation and amortization of intangibles	28,486	26,526
Interest expense added to term debt	0	9,451
Fair value adjustments	(473)	53
Amortization of debt discount	454	930
Amortization of deferred financing fees	339	97
Non-cash compensation	2,985	1,888
Loss (gain) on derivative instruments	836	(1,669)
Bad debt expense	4	325
Changes in operating assets and liabilities, net of effects from acquisition of ICP:
Accounts receivable	25,625	(7,803)
Inventories	(1,891)	(4,168)
Prepaid expenses and other assets	2,197	5,503
Prepaid inventory	4,397	(1,657)
Accounts payable and accrued expenses	(3,995)	(2,789)
Net cash provided by operating activities	35,000	15,029
Investing Activities:
Additions to property and equipment	(12,348)	(14,045)
Purchase of ICP, net of cash acquired	(28,921)	0
Proceeds from cash collateralized letters of credit	0	4,113
Net cash used in investing activities	(41,269)	(9,932)
Financing Activities:
Net (payments) proceeds from Kinergy’s line of credit	(5,889)	2,913
Proceeds from ICP credit facilities	42,000	0
Proceeds from assessment financing	1,144	1,020
Net proceeds from notes	13,530	0
Payments for debt issuance costs	(924)	0
Principal payments on borrowings	(54,927)	(17,003)
Payments on capital leases	(588)	(3,151)
Proceeds from exercise of warrants and options	1,202	0
Preferred stock dividends paid	(946)	(949)
Net cash used in financing activities	(5,398)	(17,170)
Net decrease in cash and cash equivalents	(11,667)	(12,073)
Cash and cash equivalents at beginning of period	68,590	52,712
Cash and cash equivalents at end of period	56,923	40,639
Supplemental Information:
Interest paid	8,291	7,256
Income taxes received	5,601	4,784
Noncash financing and investing activities:
Issuance of notes payable for acquisition of ICP	46,927	0
Reclass of warrant liability to equity upon warrant exercises	$ 178	$ 0

1. Organization and Basis of Pr

1. Organization and Basis of Presentation	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	Organization and Business On December 15, 2016, the Company and Aurora Cooperative Elevator Company, a Nebraska cooperative corporation (“ACEC”), closed a transaction under a contribution agreement under which the Company contributed its Aurora, Nebraska ethanol facilities and ACEC contributed its Aurora grain elevator and related grain handling assets to Pacific Aurora, LLC (“Pacific Aurora”) in exchange for equity interests in Pacific Aurora. On December 15, 2016, concurrently with the closing under the contribution agreement, the Company sold a portion of its equity interest in Pacific Aurora to ACEC. As a result, as of December 15, 2016 and through September 30, 2017, the Company owned 73.93% of Pacific Aurora and ACEC owned 26.07% of Pacific Aurora. The Company consolidates 100% of the results of Pacific Aurora and records ACEC’s 26.07% equity interest as noncontrolling interests in the accompanying financial statements. The Company is a leading producer and marketer of low-carbon renewable fuels and high-quality alcohol products in the United States. 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 has production capacity of 605 million gallons per year, markets, on an annualized basis, nearly 1.0 billion gallons of ethanol, and produces, on an annualized basis, over 2.5 million tons of co-products 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 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 $57,237,000 and $64,853,000 at September 30, 2017 and December 31, 2016, respectively, were used as collateral under Kinergy’s operating line of credit. The allowance for doubtful accounts was $18,000 and $331,000 as of September 30, 2017 and December 31, 2016, respectively. The Company recorded a bad debt expense of $2,000 and $39,000 for the three months ended September 30, 2017 and 2016, respectively. The Company recorded a bad debt expense of $4,000 and $325,000 for the nine months ended September 30, 2017 and 2016, respectively. The Company does not have any off-balance sheet credit exposure related to its customers. Provision for Income Taxes Financial Instruments Recent Accounting Pronouncements In May 2014, the FASB issued new guidance (“ASC 606”) on the recognition of revenue. 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. The Company will adopt ASC 606 on January 1, 2018. The Company is currently in the process of completing an evaluation of the new requirements, under ASC 606, on each of its major revenue types. The Company’s initial preliminary assessment indicates that ASC 606 will not materially change the way the Company accounts for its contracts with its customers, which will continue to be recognized at a point in time. The Company anticipates finalizing its assessment of the financial impact of ASC 606 during the fourth quarter of 2017 and anticipates adopting the new guidance using the modified retrospective transition method. In April 2016, the FASB issued new guidance to reduce the complexity of certain aspects of accounting for employee share-based payment transactions. Prior to adoption of the standard, accruals of compensation costs were based on an estimated forfeiture rate. The new guidance allows an entity to make an entity-wide accounting policy election to either continue using an estimate of forfeitures or account for forfeitures only when they occur. The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Effective January 1, 2017, the Company elected to discontinue the use of an estimated forfeiture rate and instead account for actual forfeitures as they occur. The transition guidance requires an adjustment to retained earnings for any cumulative effect. The impact to the Company upon adoption was determined to be immaterial. Estimates and Assumptions

2. Acquisition Of ICP

2. Acquisition Of ICP	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
Acquisition Of ICP	On June 26, 2017, the Company, through its wholly-owned direct and indirect subsidiaries PE Central, and ICP Merger Sub, LLC, a Delaware limited liability company and a direct wholly-owned subsidiary of PE Central (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with ICP, Illinois Corn Processing Holdings Inc. (“ICPH”) and MGPI Processing, Inc. (together with ICPH, the “Sellers”) to acquire 100% of the equity interests of ICP. The acquisition of ICP under the Merger Agreement was closed on July 3, 2017. At the closing, Merger Sub merged with and into ICP (the “Merger”), and ICP continues as the surviving corporation of the Merger and as a wholly-owned direct subsidiary of PE Central and a wholly-owned indirect subsidiary of the Company. Upon closing and under the terms of the Merger Agreement, Merger Sub (i) paid to the Sellers $30,000,000 in cash, and (ii) issued to the Sellers secured promissory notes in the aggregate principal amount of approximately $46,927,000 (the “Seller Notes”). The Seller Notes were secured by a first priority lien on the assets of ICP and a pledge of the membership interests of ICP. ICP is a 90 million gallon per year fuel and industrial alcohol manufacturing, storage and distribution facility adjacent to the Pacific Ethanol Pekin facility and is located on the Illinois River. ICP produces fuel-grade ethanol, beverage and industrial-grade alcohol, dry distillers grain (DDG) and corn oil. The facility has direct access to end-markets via barge, rail, and truck, and expands Pacific Ethanol’s domestic and international distribution channels. The Company has recognized the following allocation of the purchase price at fair values. The following fair value allocation for all assets and liabilities is provisional and incomplete as the Company is in the process of completing its valuation of the assets acquired and liabilities assumed, most significantly its valuation of property and equipment, sellers notes and any income tax impact. The fair value of property and equipment is based on the Company’s draft valuations, and represents its best estimates at the time of the filing of this report. The Company expects to conclude its valuations during the fourth quarter of 2017. Preliminarily, no intangible assets or liabilities have been estimated due to ICP’s contracts being materially close to market prices. A final valuation may include either an asset or liability associated with any material out-of-market contract positions. Based upon these assumptions, the preliminary purchase price consideration allocation is as follows (in thousands): Cash and equivalents $ 1,079 Accounts receivable 11,636 Inventories 9,858 Other current assets 907 Total current assets 23,480 Property and equipment 60,497 Other assets 328 Total assets acquired $ 84,305 Accounts payable, trade $ 5,683 Other current liabilities 1,486 Total current liabilities 7,169 Other non-current liabilities 209 Total liabilities assumed $ 7,378 Net assets acquired $ 76,927 Estimated goodwill $ – Total purchase price $ 76,927 The contractual amount due on the accounts receivable acquired was $11.6 million, all of which is expected to be collectible. Any changes to the initial estimates of the fair value of the acquired assets and assumed liabilities will be recorded as adjustments to those assets and liabilities and residual amounts will be allocated to goodwill if the net assets acquired are less than the purchase price. If the net assets acquired exceed the purchase price, the residual amount will result in a bargain purchase gain. The following table presents unaudited pro forma combined financial information assuming the acquisition occurred on January 1, 2016. Three Months Ended September 30, Nine Months Ended September 30, 2016 2017 2016 Revenues – pro forma $ 461,825 $ 1,315,046 $ 1,317,243 Net loss – pro forma $ (3,302 ) $ (27,145 ) $ (10,110 ) Diluted net income (loss) per share – pro forma $ (0.08 ) $ (0.64 ) $ (0.24 ) Diluted weighted-average shares – pro forma 42,226 42,358 42,156 For the three and nine months ended September 30, 2017, ICP contributed $38.2 million in net revenues and $1.4 million in pre-tax income. For the three and nine months ended September 30, 2017, the Company recorded approximately $0.3 million in costs associated with the ICP acquisition. These costs are reflected in selling, general and administrative expenses on the Company’s consolidated statements of operations.

3. Segments

3. Segments	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
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 Nine Months Ended 2017 2016 2017 2016 Net Sales Ethanol Production: Net sales to external customers $ 304,812 $ 266,299 $ 804,012 $ 767,171 Intersegment net sales 639 306 1,138 829 Total ethanol production net sales $ 305,451 $ 266,605 $ 805,150 $ 768,000 Marketing and distribution: Net sales to external customers $ 140,630 $ 151,507 $ 432,972 $ 415,868 Intersegment net sales 2,334 2,018 6,135 5,861 Total marketing and distribution net sales 142,964 153,525 439,107 421,729 Intersegment eliminations (2,973 ) (2,324 ) (7,273 ) (6,690 ) Net sales as reported $ 445,442 $ 417,806 $ 1,236,984 $ 1,183,039 Cost of goods sold: Ethanol production $ 292,743 $ 262,964 $ 797,277 $ 759,210 Marketing and distribution 142,303 153,406 437,110 412,225 Intersegment eliminations (1,669 ) (4,928 ) (5,348 ) (13,533 ) Cost of goods sold as reported $ 433,377 $ 411,442 $ 1,229,039 $ 1,157,902 Income (loss) before provision for income taxes: Ethanol production $ 2,638 $ (2,903 ) $ (15,981 ) $ (19,171 ) Marketing and distribution (757 ) (1,524 ) (2,043 ) 4,654 Corporate activities (2,422 ) 909 (5,940 ) 2,614 $ (541 ) $ (3,518 ) $ (23,964 ) $ (11,903 ) Depreciation and amortization: Ethanol production $ 9,841 $ 8,631 $ 27,703 $ 25,839 Marketing and distribution – – – 3 Corporate activities 238 226 783 684 $ 10,079 $ 8,857 $ 28,486 $ 26,526 Interest expense: Ethanol production $ 1,850 $ 3,521 $ 4,061 $ 15,600 Marketing and distribution 342 353 952 1,043 Corporate activities 1,634 – 4,144 – $ 3,826 $ 3,874 $ 9,157 $ 16,643 The following table sets forth the Company’s total assets by operating segment (in thousands): September 30, 2017 December 31, 2016 Total assets: Ethanol production $ 596,928 $ 542,688 Marketing and distribution 129,294 146,356 Corporate assets 4,428 19,194 $ 730,650 $ 708,238

4. Inventories

4. Inventories	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories consisted primarily of bulk ethanol, corn, co-products, Low-Carbon Fuel Standard (“LCFS”) credits and unleaded fuel, and are valued at the lower of cost and net realizable value, with cost determined on a first-in, first-out basis. Inventory balances consisted of the following (in thousands): September 30, 2017 December 31, 2016 Finished goods $ 46,314 $ 33,773 Work in progress 9,637 7,092 Raw materials 8,401 6,571 LCFS credits 5,892 10,926 Other 1,575 1,708 Total $ 71,819 $ 60,070

5. Derivatives

5. Derivatives	9 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
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 September 30, 2017 Assets Liabilities Type of Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity contracts Derivative instruments $ 3,017 Derivative instruments $ 2,755 As of December 30, 2016 Assets Liabilities Type of Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity contracts Derivative instruments $ 978 Derivative instruments $ 4,115 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 Gains (Losses) Three Months Ended September 30, Type of Instrument Statements of Operations Location 2017 2016 Commodity contracts Cost of goods sold $ (1,576 ) $ 2,242 Unrealized Gains (Losses) Three Months Ended September 30, Type of Instrument Statements of Operations Location 2017 2016 Commodity contracts Cost of goods sold $ 1,093 $ (1,383 ) Realized Gains (Losses) Nine Months Ended September 30, Type of Instrument Statements of Operations Location 2017 2016 Commodity contracts Cost of goods sold $ (4,495 ) $ 2,152 Unrealized Gains (Losses) Nine Months Ended September 30, Type of Instrument Statements of Operations Location 2017 2016 Commodity contracts Cost of goods sold $ 3,659 $ (483 )

6. Debt

6. Debt	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Debt	Long-term borrowings are summarized as follows (in thousands): September 30, 2017 December 31, 2016 Kinergy line of credit $ 43,973 $ 49,862 Pekin term loan 57,000 64,000 Pekin revolving loan 32,000 32,000 ICP term loan 24,000 – ICP revolving loan 18,000 – Pacific Aurora line of credit – 1,000 Parent notes payable 68,948 55,000 243,921 201,862 Less unamortized debt discount (1,590 ) (1,626 ) Less unamortized debt financing costs (2,027 ) (1,708 ) Less short-term portion (20,000 ) (10,500 ) Long-term debt $ 220,304 $ 188,028 Kinergy Operating Line of Credit Changes to Pekin Credit Facilities ICP Credit Facilities Under the term loan, ICP is to use the proceeds of the loan to refinance the Seller Notes. ICP is to make amortizing principal payments in sixteen equal consecutive quarterly installments of $1,500,000 each until September 20, 2021, at which time the entire remaining balance is due and payable. Interest on the unpaid principal amount of the term loan accrues at a rate equal to 3.75% plus the one-month LIBOR index rate. Under the revolving loan, ICP is to use the proceeds of the revolving term facility to refinance the Seller Notes and for ICP’s working capital needs. The revolving loan matures on September 1, 2022. The revolving loan gives ICP the right, in ICP’s sole discretion, to permanently reduce from time to time the revolving term commitment in increments of $500,000 by giving the Agent ten days prior written notice. The revolving loan requires ICP to pay the Agent a nonrefundable commitment fee equal to 0.75% per annum multiplied by the average daily positive difference between the amounts of (i) the revolving term commitment, minus (ii) the aggregate principal amount of all loans outstanding under the revolving loan. Interest on the unpaid principal amount of the loan accrues, pursuant to ICP’s election of the LIBOR Index Option, at a rate equal to 3.75% plus the one-month LIBOR index rate. Under the terms of the credit facilities, ICP is required to maintain working capital of not less than $8.0 million. In addition, ICP is required to maintain an annual debt coverage ratio of not less than 1.5 to 1.0 beginning for the year ending December 31, 2018. Changes to Pacific Aurora Credit Facility Parent Notes Payable Distribution Restrictions

7. Warrants and stock options

7. Warrants and stock options	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Warrants and stock options	Warrant and Option Exercises

8. Commitments and Contingencie

8. Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
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, or “PE Pekin”) 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 Aventine 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 in selling, general and administrative expenses in the consolidated statements of operations for the nine months ended September 30, 2017.

9. Pension Plans

9. Pension Plans	9 Months Ended
	Sep. 30, 2017
Retirement Benefits [Abstract]
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 contributions that are required by applicable regulations. As of December 31, 2016, the Retirement Plan’s accumulated projected benefit obligation was $18.5 million, with a fair value of plan assets of $12.4 million. The underfunded amount of $6.1 million is recorded on the Company’s consolidated balance sheet in other noncurrent liabilities. The Company’s net periodic Retirement Plan costs are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Interest cost $ 98 $ 172 $ 293 $ 516 Service cost 188 56 563 168 Expected return on plan assets (169 ) (199 ) (506 ) (597 ) Net periodic expense $ 117 $ 29 $ 350 $ 87 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, 2016, the Postretirement Plan’s accumulated projected benefit obligation was $5.4 million and is recorded on the Company’s consolidated balance sheet in other noncurrent liabilities. The Company’s funding policy is to make the minimum annual contributions that are required by applicable regulations. The Company’s net periodic Postretirement Plan costs are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Interest cost $ 21 $ 35 $ 63 $ 105 Service cost 50 12 150 36 Amortization of (gain) loss 33 – 99 – Net periodic expense $ 104 $ 47 $ 312 $ 141

10. Fair Value Measurements

10. Fair Value Measurements	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
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. Warrants Significant assumptions used and related fair values for the warrants as of December 31, 2016 were as follows: Original Issuance Exercise Price Volatility Risk Free Interest Rate Term (years) Market Discount Warrants Outstanding Fair Value 07/3/2012 $6.09 40.9% 0.62% 0.50 11.3% 211,000 $651,000 Other Derivative Instruments The following table summarizes recurring fair value measurements by level at September 30, 2017 (in thousands): Fair Value Level 1 Level 2 Level 3 Assets: Derivative instruments $ 3,017 $ 3,017 $ – $ – $ 3,017 $ 3,017 $ – $ – Liabilities: Warrants $ – $ – $ – $ – Derivative instruments (2,755 ) (2,755 ) – – $ (2,755 ) $ (2,755 ) $ – $ – The changes in the Company’s fair value of its Level 3 inputs with respect to its warrants were as follows (in thousands): Balance, December 31, 2016 $ 651 Exercised warrants (178 ) Adjustments to fair value for the period (473 ) Balance, September 30, 2017 $ –

11. Earnings Per Share

11. Earnings Per Share	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Earnings Per Share	The following tables compute basic and diluted earnings per share (in thousands, except per share data): Three Months Ended September 30, 2017 Loss Numerator Shares Denominator Per-Share Amount Net loss attributed to Pacific Ethanol $ (202 ) Less: Preferred stock dividends (319 ) Basic and diluted loss per share: Loss available to common stockholders $ (521 ) 42,475 $ (0.01 ) Three Months Ended September 30, 2016 Loss Numerator Shares Denominator Per-Share Amount Net loss attributed to Pacific Ethanol $ (3,518 ) Less: Preferred stock dividends (319 ) Basic and diluted loss per share: Loss available to common stockholders $ (3,837 ) 42,226 $ (0.09 ) Nine Months Ended September 30, 2017 Loss Numerator Shares Denominator Per-Share Amount Net loss attributed to Pacific Ethanol $ (21,679 ) Less: Preferred stock dividends (946 ) Basic and diluted loss per share: Loss available to common stockholders $ (22,625 ) 42,358 $ (0.53 ) Nine Months Ended September 30, 2016 Loss Numerator Shares Denominator Per-Share Amount Net loss attributed to Pacific Ethanol $ (11,658 ) Less: Preferred stock dividends (949 ) Basic and diluted loss per share: Loss available to common stockholders $ (12,607 ) 42,156 $ (0.30 ) There were an aggregate of 688,000 and 737,000 potentially dilutive weighted-average shares from the Company’s warrants and shares of Series B Cumulative Convertible Preferred Stock outstanding for the three and nine months ended September 30, 2017, respectively. These convertible securities were not considered in calculating diluted net loss per share for the three and nine months ended September 30, 2017, as their effect would have been anti-dilutive.

1. Organization and Basis of 17

1. Organization and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Organization and Business	Organization and Business On December 15, 2016, the Company and Aurora Cooperative Elevator Company, a Nebraska cooperative corporation (“ACEC”), closed a transaction under a contribution agreement under which the Company contributed its Aurora, Nebraska ethanol facilities and ACEC contributed its Aurora grain elevator and related grain handling assets to Pacific Aurora, LLC (“Pacific Aurora”) in exchange for equity interests in Pacific Aurora. On December 15, 2016, concurrently with the closing under the contribution agreement, the Company sold a portion of its equity interest in Pacific Aurora to ACEC. As a result, as of December 15, 2016 and through September 30, 2017, the Company owned 73.93% of Pacific Aurora and ACEC owned 26.07% of Pacific Aurora. The Company consolidates 100% of the results of Pacific Aurora and records ACEC’s 26.07% equity interest as noncontrolling interests in the accompanying financial statements. The Company is a leading producer and marketer of low-carbon renewable fuels and high-quality alcohol products in the United States. 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 has production capacity of 605 million gallons per year, markets, on an annualized basis, nearly 1.0 billion gallons of ethanol, and produces, on an annualized basis, over 2.5 million tons of co-products 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
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 $57,237,000 and $64,853,000 at September 30, 2017 and December 31, 2016, respectively, were used as collateral under Kinergy’s operating line of credit. The allowance for doubtful accounts was $18,000 and $331,000 as of September 30, 2017 and December 31, 2016, respectively. The Company recorded a bad debt expense of $2,000 and $39,000 for the three months ended September 30, 2017 and 2016, respectively. The Company recorded a bad debt expense of $4,000 and $325,000 for the nine months ended September 30, 2017 and 2016, respectively. The Company does not have any off-balance sheet credit exposure related to its customers.
Provision for Income Taxes	Provision for Income Taxes
Financial Instruments	Financial Instruments
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued new guidance (“ASC 606”) on the recognition of revenue. 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. The Company will adopt ASC 606 on January 1, 2018. The Company is currently in the process of completing an evaluation of the new requirements, under ASC 606, on each of its major revenue types. The Company’s initial preliminary assessment indicates that ASC 606 will not materially change the way the Company accounts for its contracts with its customers, which will continue to be recognized at a point in time. The Company anticipates finalizing its assessment of the financial impact of ASC 606 during the fourth quarter of 2017 and anticipates adopting the new guidance using the modified retrospective transition method. In April 2016, the FASB issued new guidance to reduce the complexity of certain aspects of accounting for employee share-based payment transactions. Prior to adoption of the standard, accruals of compensation costs were based on an estimated forfeiture rate. The new guidance allows an entity to make an entity-wide accounting policy election to either continue using an estimate of forfeitures or account for forfeitures only when they occur. The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Effective January 1, 2017, the Company elected to discontinue the use of an estimated forfeiture rate and instead account for actual forfeitures as they occur. The transition guidance requires an adjustment to retained earnings for any cumulative effect. The impact to the Company upon adoption was determined to be immaterial.
Estimates and Assumptions	Estimates and Assumptions

2. Acquisition of ICP (Tables)

2. Acquisition of ICP (Tables)	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
Schedule of acquired assets and liabilities	Cash and equivalents $ 1,079 Accounts receivable 11,636 Inventories 9,858 Other current assets 907 Total current assets 23,480 Property and equipment 60,497 Other assets 328 Total assets acquired $ 84,305 Accounts payable, trade $ 5,683 Other current liabilities 1,486 Total current liabilities 7,169 Other non-current liabilities 209 Total liabilities assumed $ 7,378 Net assets acquired $ 76,927 Estimated goodwill $ – Total purchase price $ 76,927
Schedule of statement of income	Three Months Nine Months 2016 2017 2016 Revenues – pro forma $ 461,825 $ 1,315,046 $ 1,317,243 Net loss – pro forma $ (3,302 ) $ (27,145 ) $ (10,110 ) Diluted net income (loss) per share – pro forma $ (0.08 ) $ (0.64 ) $ (0.24 ) Diluted weighted-average shares – pro forma 42,226 42,358 42,156

3. Segments (Tables)

3. Segments (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Schedule of Financial Data for Operating Segments	Three Months Ended Nine Months Ended 2017 2016 2017 2016 Net Sales Ethanol Production: Net sales to external customers $ 304,812 $ 266,299 $ 804,012 $ 767,171 Intersegment net sales 639 306 1,138 829 Total ethanol production net sales $ 305,451 $ 266,605 $ 805,150 $ 768,000 Marketing and distribution: Net sales to external customers $ 140,630 $ 151,507 $ 432,972 $ 415,868 Intersegment net sales 2,334 2,018 6,135 5,861 Total marketing and distribution net sales 142,964 153,525 439,107 421,729 Intersegment eliminations (2,973 ) (2,324 ) (7,273 ) (6,690 ) Net sales as reported $ 445,442 $ 417,806 $ 1,236,984 $ 1,183,039 Cost of goods sold: Ethanol production $ 292,743 $ 262,964 $ 797,277 $ 759,210 Marketing and distribution 142,303 153,406 437,110 412,225 Intersegment eliminations (1,669 ) (4,928 ) (5,348 ) (13,533 ) Cost of goods sold as reported $ 433,377 $ 411,442 $ 1,229,039 $ 1,157,902 Income (loss) before provision for income taxes: Ethanol production $ 2,638 $ (2,903 ) $ (15,981 ) $ (19,171 ) Marketing and distribution (757 ) (1,524 ) (2,043 ) 4,654 Corporate activities (2,422 ) 909 (5,940 ) 2,614 $ (541 ) $ (3,518 ) $ (23,964 ) $ (11,903 ) Depreciation and amortization: Ethanol production $ 9,841 $ 8,631 $ 27,703 $ 25,839 Marketing and distribution – – – 3 Corporate activities 238 226 783 684 $ 10,079 $ 8,857 $ 28,486 $ 26,526 Interest expense: Ethanol production $ 1,850 $ 3,521 $ 4,061 $ 15,600 Marketing and distribution 342 353 952 1,043 Corporate activities 1,634 – 4,144 – $ 3,826 $ 3,874 $ 9,157 $ 16,643
Schedule of Assets by Operating Segments	September 30, 2017 December 31, 2016 Total assets: Ethanol production $ 596,928 $ 542,688 Marketing and distribution 129,294 146,356 Corporate assets 4,428 19,194 $ 730,650 $ 708,238

4. Inventories (Tables)

4. Inventories (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Schedule of Inventories	September 30, 2017 December 31, 2016 Finished goods $ 46,314 $ 33,773 Work in progress 9,637 7,092 Raw materials 8,401 6,571 LCFS credits 5,892 10,926 Other 1,575 1,708 Total $ 71,819 $ 60,070

5. Derivatives (Tables)

5. Derivatives (Tables)	9 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivatives Not Designated as Hedging Instruments	As of September 30, 2017 Assets Liabilities Type of Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity contracts Derivative instruments $ 3,017 Derivative instruments $ 2,755 As of December 30, 2016 Assets Liabilities Type of Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity contracts Derivative instruments $ 978 Derivative instruments $ 4,115
Schedule of Recognized Gains (Losses) for Derivatives	As of September 30, 2017 Assets Liabilities Type of Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity contracts Derivative instruments $ 3,017 Derivative instruments $ 2,755 As of December 30, 2016 Assets Liabilities Type of Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity contracts Derivative instruments $ 978 Derivative instruments $ 4,115 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 Gains (Losses) Three Months Ended September 30, Type of Instrument Statements of Operations Location 2017 2016 Commodity contracts Cost of goods sold $ (1,576 ) $ 2,242 Unrealized Gains (Losses) Three Months Ended September 30, Type of Instrument Statements of Operations Location 2017 2016 Commodity contracts Cost of goods sold $ 1,093 $ (1,383 ) Realized Gains (Losses) Nine Months Ended September 30, Type of Instrument Statements of Operations Location 2017 2016 Commodity contracts Cost of goods sold $ (4,495 ) $ 2,152 Unrealized Gains (Losses) Nine Months Ended September 30, Type of Instrument Statements of Operations Location 2017 2016 Commodity contracts Cost of goods sold $ 3,659 $ (483 )

6. Debt (Tables)

6. Debt (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Schedule of Long Term Debt	September 30, 2017 December 31, 2016 Kinergy line of credit $ 43,973 $ 49,862 Pekin term loan 57,000 64,000 Pekin revolving loan 32,000 32,000 ICP term loan 24,000 – ICP revolving loan 18,000 – Pacific Aurora line of credit – 1,000 Parent notes payable 68,948 55,000 243,921 201,862 Less unamortized debt discount (1,590 ) (1,626 ) Less unamortized debt financing costs (2,027 ) (1,708 ) Less short-term portion (20,000 ) (10,500 ) Long-term debt $ 220,304 $ 188,028

9. Pension and Retirement Benef

9. Pension and Retirement Benefit Plans(Tables)	9 Months Ended
	Sep. 30, 2017
Retirement Plan [Member]
Defined contribution plan schedule	Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Interest cost $ 98 $ 172 $ 293 $ 516 Service cost 188 56 563 168 Expected return on plan assets (169 ) (199 ) (506 ) (597 ) Net periodic expense $ 117 $ 29 $ 350 $ 87
Postretirement Plan [Member]
Defined contribution plan schedule	Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Interest cost $ 21 $ 35 $ 63 $ 105 Service cost 50 12 150 36 Amortization of (gain) loss 33 – 99 – Net periodic expense $ 104 $ 47 $ 312 $ 141

10. Fair Value Measurements (Ta

10. Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Schedule of Significant Assumptions Used and Related Fair Values for Warrants	Original Issuance Exercise Price Volatility Risk Free Interest Rate Term (years) Market Discount Warrants Outstanding Fair Value 07/3/2012 $6.09 40.9% 0.62% 0.50 11.3% 211,000 $651,000
Summary of Recurring Fair Value Measurements by Level	Fair Value Level 1 Level 2 Level 3 Assets: Derivative instruments $ 3,017 $ 3,017 $ – $ – $ 3,017 $ 3,017 $ – $ – Liabilities: Warrants $ – $ – $ – $ – Derivative instruments (2,755 ) (2,755 ) – – $ (2,755 ) $ (2,755 ) $ – $ –
Schedule of Fair Value of Level 3 Inputs to Warrants	Balance, December 31, 2016 $ 651 Exercised warrants (178 ) Adjustments to fair value for the period (473 ) Balance, September 30, 2017 $ –

11. Earnings Per Share (Tables)

11. Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Earnings Per Share	Three Months Ended September 30, 2017 Loss Numerator Shares Denominator Per-Share Amount Net loss attributed to Pacific Ethanol $ (202 ) Less: Preferred stock dividends (319 ) Basic and diluted loss per share: Loss available to common stockholders $ (521 ) 42,475 $ (0.01 ) Three Months Ended September 30, 2016 Loss Numerator Shares Denominator Per-Share Amount Net loss attributed to Pacific Ethanol $ (3,518 ) Less: Preferred stock dividends (319 ) Basic and diluted loss per share: Loss available to common stockholders $ (3,837 ) 42,226 $ (0.09 ) Nine Months Ended September 30, 2017 Loss Numerator Shares Denominator Per-Share Amount Net loss attributed to Pacific Ethanol $ (21,679 ) Less: Preferred stock dividends (946 ) Basic and diluted loss per share: Loss available to common stockholders $ (22,625 ) 42,358 $ (0.53 ) Nine Months Ended September 30, 2016 Loss Numerator Shares Denominator Per-Share Amount Net loss attributed to Pacific Ethanol $ (11,658 ) Less: Preferred stock dividends (949 ) Basic and diluted loss per share: Loss available to common stockholders $ (12,607 ) 42,156 $ (0.30 )

1. Organization and Basis of 26

1. Organization and Basis of Presentation (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
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 2.5 million tons of co-products
Accounts receivable used as collateral	$ 57,237		$ 57,237		$ 64,853
Allowance for doubtful accounts	18		18		$ 331
Bad debt expense	2	$ 39	4	$ 325
Benefit for income taxes	$ 0	$ 0	$ 0	$ 245

1. Organization and Basis of 27

1. Organization and Basis of Presentation (Details Narrative 2)	Sep. 30, 2017EthanolPlants
Pacific Aurora [Member]
Ownership interest	73.93%
ACEC [Member]
Noncontrolling interest owned	26.07%
ACEC [Member] | Pacific Aurora [Member]
Ownership interest	26.07%
Pacific Ethanol Central Plants [Member]
Number of ethanol plants	4

2. Acquisition Of ICP (Details

2. Acquisition Of ICP (Details - Purchase allocation) - ICP [Member] $ in Thousands	Jun. 26, 2017USD ($)
Cash and equivalents	$ 1,079
Accounts receivable	11,636
Inventories	9,858
Other current assets	907
Total current assets	23,480
Property and equipment	60,497
Other assets	328
Total assets acquired	84,305
Accounts payable, trade	5,683
Other current liabilities	1,486
Total current liabilities	7,169
Other non-current liabilities	209
Total liabilities assumed	7,378
Net assets acquired	76,927
Estimated goodwill	0
Total purchase price	$ 76,927

2. Acquisition Of ICP (Detail29

2. Acquisition Of ICP (Details - Acquisition of Income) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Business Combinations [Abstract]
Revenues - pro forma	$ 461,825	$ 1,315,046	$ 1,317,243
Net loss - pro forma	$ (3,302)	$ (27,145)	$ (10,110)
Diluted net income (loss) per share – pro forma	$ (0.08)	$ (0.64)	$ (0.24)
Diluted weighted-average shares - pro forma	42,226	42,358	42,156

2. Acquisition Of ICP (Detail30

2. Acquisition Of ICP (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Jun. 26, 2017
Net Revenue	$ 445,442	$ 417,806	$ 1,236,984	$ 1,183,039
Pre-tax income	(541)	$ (3,518)	(23,964)	$ (11,903)
ICP [Member]
Accounts receivable					$ 11,636
Net Revenue	38,200		38,200
Pre-tax income	1,400		1,400
Selling, general and administrative expenses	$ 300		$ 300

3. Segments - Schedule of Finan

3. Segments - Schedule of Financial Date for Operating Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net Sales	$ 445,442	$ 417,806	$ 1,236,984	$ 1,183,039
Cost of goods sold	433,377	411,442	1,229,039	1,157,902
Income (loss) before provision for income taxes	(541)	(3,518)	(23,964)	(11,903)
Depreciation and amortization	10,079	8,857	28,486	26,526
Interest expense	3,826	3,874	9,157	16,643
Ethanol Production [Member]
Net Sales	305,451	266,605	805,150	768,000
Cost of goods sold	292,743	262,964	797,277	759,210
Income (loss) before provision for income taxes	2,638	(2,903)	(15,981)	(19,171)
Depreciation and amortization	9,841	8,631	27,703	25,839
Interest expense	1,850	3,521	4,061	15,600
Marketing and Distribution [Member]
Net Sales	142,964	153,525	439,107	421,729
Cost of goods sold	142,303	153,406	437,110	412,225
Income (loss) before provision for income taxes	(757)	(1,524)	(2,043)	4,654
Depreciation and amortization	0	0	0	3
Interest expense	342	353	952	1,043
Corporate Activities [Member]
Income (loss) before provision for income taxes	(2,422)	909	(5,940)	2,614
Depreciation and amortization	238	226	783	684
Interest expense	1,634	0	4,144	0
External Customers [Member] | Ethanol Production [Member]
Net Sales	304,812	266,299	804,012	767,171
External Customers [Member] | Marketing and Distribution [Member]
Net Sales	140,630	151,507	432,972	415,868
Intersegment Net Sales [Member] | Ethanol Production [Member]
Net Sales	639	306	1,138	829
Intersegment Net Sales [Member] | Marketing and Distribution [Member]
Net Sales	2,334	2,018	6,135	5,861
Intersubsegment Eliminations [Member]
Net Sales	(2,973)	(2,324)	(7,273)	(6,690)
Cost of goods sold	$ (1,669)	$ (4,928)	$ (5,348)	$ (13,533)

3. Segments - Schedule of Asset

3. Segments - Schedule of Assets by Operating Segments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets	$ 730,650	$ 708,238
Ethanol Production [Member]
Assets	596,928	542,688
Marketing and Distribution [Member]
Assets	129,294	146,356
Corporate Assets [Member]
Assets	$ 4,428	$ 19,194

3. Segments (Details Narrative)

3. Segments (Details Narrative)	9 Months Ended
	Sep. 30, 2017Segments
Segment Reporting [Abstract]
Number of operating segments	2

4. Inventories - Schedule of In

4. Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Finished goods	$ 46,314	$ 33,773
Work in progress	9,637	7,092
Raw materials	8,401	6,571
LCFS credits	5,892	10,926
Other	1,575	1,708
Total	$ 71,819	$ 60,070

5. Derivatives - Schedule of De

5. Derivatives - Schedule of Derivatives Not Designated as Hedging Instruments (Details) - Commodity Contracts [Member] - Non Designated Derivative Instruments [Member] - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Commodity contracts - Derivative assets	$ 3,017	$ 978
Commodity contracts - Derivative liabilities	$ 2,755	$ 4,115

5. Derivatives - Schedule of Re

5. Derivatives - Schedule of Recognized Gains (Losses) for Derivatives (Details) - Commodity Contracts [Member] - Non Designated Derivative Instruments [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Realized Gains (Losses)	$ (1,576)	$ 2,242	$ (4,495)	$ 2,152
Unrealized Gains (Losses)	$ 1,093	$ (1,383)	$ 3,659	$ (483)

5. Derivatives (Details Narrati

5. Derivatives (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Recognized gain on derivative instruments		$ 859		$ 1,669
Recognized loss on derivative instruments	$ (483)		$ (836)

6. Debt - Schedule of Long Term

6. Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Long-term borrowings are summarized as follows
Notes payable	$ 68,948	$ 55,000
Total debt	243,921	201,862
Less unamortized discount	(1,590)	(1,626)
Less unamortized debt financing costs	(2,027)	(1,708)
Less short-term portion	(20,000)	(10,500)
Long-term debt	220,304	188,028
Kinergy [Member]
Long-term borrowings are summarized as follows
Line of credit/Revolving loan	43,973	49,862
Pekin [Member]
Long-term borrowings are summarized as follows
Line of credit/Revolving loan	32,000	32,000
Term loan	57,000	64,000
ICP [Member]
Long-term borrowings are summarized as follows
Line of credit/Revolving loan	18,000	0
Term loan	24,000	0
Pacific Aurora [Member]
Long-term borrowings are summarized as follows
Line of credit/Revolving loan	$ 0	$ 1,000

6. Debt (Details Narrative)

6. Debt (Details Narrative) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Asset unavailable for transfer due to loan restrictions	$ 305,660
Parent Notes Payable [Member]
Debt face value	13,948
Unamortized debt discount	418
Line of Credit [Member] | Kinergy [Member]
Line of credit maximum borrowing capacity	100,000
Line of credit remaining borrowing availability	22,410
Line of Credit [Member] | ICP Credit Agreement [Member] | Term Loan [Member]
Line of credit maximum borrowing capacity	24,000
Line of Credit [Member] | ICP Credit Agreement [Member] | Revolving Loan [Member]
Line of credit maximum borrowing capacity	$ 18,000
Maturity date	Sep. 1, 2022

7. Warrants and stock options (

7. Warrants and stock options (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Notes to Financial Statements
Stock issued from exercise of warrants and options			201,000
Proceeds from warrants and options exercised			$ 1,201
Warrants exercised	0	0		0
Options exercised	0	0		0
Warrant Outstanding	0		0

8. Commitments and Contingenc41

8. Commitments and Contingencies (Details Narrative) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Proceeds from legal settlement	$ 3,900
Gain on litigation settlement	$ 3,600
Ethanol Sales Contracts [Member]
Open ethanol indexed-price sales contracts	224,150,000 gallons
Open fixed-price sales contracts valued	$ 53,672
Co-products Sales Contracts [Member]
Open ethanol indexed-price sales contracts	16,000 tons
Open fixed-price sales contracts valued	$ 30,375
Ethanol Purchase Contracts [Member]
Indexed-price purchase contracts	20,050,000 gallons
Fixed-price purchase contracts value	$ 9,476
Ethanol Purchase Contracts [Member] | Suppliers [Member]
Fixed-price purchase contracts value	$ 11,000

9. Pension and Retirement Ben42

9. Pension and Retirement Benefit Plans (Details - Retirement Plans) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Retirement Plan [Member]
Interest cost	$ 98	$ 172	$ 293	$ 516
Service cost	188	56	563	168
Expected return on plan assets	(169)	(199)	(506)	(597)
Net periodic benefit cost	117	29	350	87
Postretirement Plan [Member]
Interest cost	21	35	63	105
Service cost	50	12	150	36
Amortization of (gain) loss	33	0	99	0
Net periodic benefit cost	$ 104	$ 47	$ 312	$ 141

9. Pension Plans (Details Narra

9. Pension Plans (Details Narrative) $ in Thousands	Dec. 31, 2016USD ($)
Retirement Plan [Member]
Accumulated projected benefit obligation	$ 18,500
Fair value of plan assets	12,400
Underfunded amount	6,100
Postretirement Plan [Member]
Accumulated projected benefit obligation	$ 5,400

10. Fair Value Measurements - S

10. Fair Value Measurements - Schedule of Significant Assumptions Used and Related Fair Values for Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2017
Warrants Outstanding		0
Original issuance 7/3/2012 [Member]
Exercise price	$ 6.09
Volatility	40.90%
Risk free interest rate	0.62%
Term (years)	6 months
Market Discount	11.30%
Warrants Outstanding	211,000
Fair value	$ 651

10. Fair Value Measurements (De

10. Fair Value Measurements (Details - Other derivatives) $ in Thousands	Sep. 30, 2017USD ($)
Assets:
Assets	$ 3,017
Liabilities:
Liabilities	(2,755)
Derivative Financial Instrument [Member]
Assets:
Assets	3,017
Liabilities:
Liabilities	(2,755)
Warrants [Member]
Liabilities:
Liabilities	0
Level 1 [Member]
Assets:
Assets	3,017
Liabilities:
Liabilities	(2,755)
Level 1 [Member] | Derivative Financial Instrument [Member]
Assets:
Assets	3,017
Liabilities:
Liabilities	(2,755)
Level 1 [Member] | Warrants [Member]
Liabilities:
Liabilities	0
Level 2 [Member]
Assets:
Assets	0
Liabilities:
Liabilities	0
Level 2 [Member] | Derivative Financial Instrument [Member]
Assets:
Assets	0
Liabilities:
Liabilities	0
Level 2 [Member] | Warrants [Member]
Liabilities:
Liabilities	0
Level 3 [Member]
Assets:
Assets	0
Liabilities:
Liabilities	0
Level 3 [Member] | Derivative Financial Instrument [Member]
Assets:
Assets	0
Liabilities:
Liabilities	0
Level 3 [Member] | Warrants [Member]
Liabilities:
Liabilities	$ 0

10. Fair Value Measurements -46

10. Fair Value Measurements - Schedule of Fair Value of Level 3 Inputs to Warrants (Details) - Level 3 [Member] - Warrants [Member] $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	$ 651
Exercised warrants	(178)
Adjustments to fair value for the period	(473)
Ending Balance	$ 0

11. Earnings Per Share - Schedu

11. Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Net loss attributed to Pacific Ethanol, Inc.	$ (202)	$ (3,518)	$ (21,679)	$ (11,658)
Less: Preferred stock dividends	(319)	(319)	(946)	(949)
Income (loss) available to common stockholders	$ (521)	$ (3,837)	$ (22,625)	$ (12,607)
Weighted average number of shares outstanding, basic and diluted	42,475	42,226	42,358	42,156
Net loss per share, basic and diluted	$ (0.01)	$ (0.09)	$ (0.53)	$ (0.30)

11. Earnings Per Share (Details

11. Earnings Per Share (Details Narrative) - shares	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Earnings Per Share [Abstract]
Potentially dilutive weighted-average shares from convertible preferred stock outstanding	688,000	737,000