GPRE - Earnings call transcript Q3 2017

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Operator

Good day, everyone and welcome to the Green Plains Incorporated and Green Plains Partners Third Quarter 2017 Results Conference Call. Today's call is being recorded. At this time, I'd like to turn the call over to Jim Stark. Please go ahead, sir.

Jim Stark

Thanks, James. Plains Green the to Inc. Welcome Partners and XXXX call. quarter Green Plains earnings third Chief Vice President are the our Neppl, Chief Briggs, on call Todd Officer; our Steve our Executive Jeff Officer; Participants of Ethanol today Financial John Executive Becker, Operating Bleyl, Officer; Chief President Marketing. and along. is follow you a for presentation There slide to

You can Presentations the on corporate both on link under page find investor this websites. presentation and the Events

our events. other These forward-looking making are During materially this Actual earnings reports Commission. statements during factors call risk the and which predictions, expectations filings about projections in yesterday's will the of Form results and future are risks current the call, with Exchange on statements or that this XX-K, subject and statements are XX-Qs based be press Form could of assumptions and Securities and and other conference because made comments and in we and differ discussed section releases to factor uncertainties.

Page our any to any duty statements. refer undertake also forward-looking X to not for may website information factors. do of You update We about presentation

turn call like to the I'd over to Now, Todd.

Todd Becker

million of are recorded of various in Thanks, $X.XX over research have our to years. number the we I and impact good morning $XX.X at joining share about we will and credit an credit In quarter. for call third a want ethanol We a briefly, the million performed that, The of There couple trials and plants tax on $XX.X talk them reported R&D a later. product of our income third to relates development of thanks quarter. today. for net John expand Jim our everybody or items and tax

or at highly a quarter cash I've loss taxes length be refunds have overshadow To operating higher improvements should perspective, mechanical and about this in credit shareholders the paid. our to if these we been bit either costs the in continuous over is to the enzymatic have yields not talked in about While bottleneck you drive recall, future more give improvement in beneficial made you lower operating and lower. always we plants. to the small the years

years We trials the We different achieve have shareholders. remains which, highest. finding benefit this with plants a of benefits higher over literally hundreds one to along of ways our yields, at realized and our now of of done for quarter have our

by to and While this come has once, and quarter hours tax external while internal you all transcends multiple this often strategies fruition. has to quarter The earnings team spent to come have to time at remember years complex through vary basis, take point. getting

this debt -- indicated forward, on. our The and loan the Vinegar the and and we capital loan On existing big a new our be for basis an the depreciation Green tax time million when share. million discussing benefit some of step a million future simplify and diversification of expenses. the as structure Also spend generated done to the as goal a adjusted our strategy $X.X comes even was the loan asset of reduction $XX.X around but $X the reflected to charges market liquidity loan an statement was had Fleischmann's we net of the of of quality movement in that costs from away a refinancing We new of processing loan on an volatility of from in the the or business issuance had million $XX.X important go Plains related our previously we some required credits inclusive so of third a John our had we in and later the adjusted have as term have will debt he term removing a indicated strength balance R&D previously our The results, position went sheet non-cash. getting the ethanol. through for Approximately for income interest. X.X% our of R&D the base term to and have more the ourselves of EBITDA role alongside that growth. quarter But, of term that operating loss replacing were was $X.XX

growing generated the market than The quarters was on focuses less but $X.XX look gross consolidated quarter was Green this better $XXX flow generated gallon when QX, often totaled XXXX on $X.XX overtime, you free overtime. last, a condition Our focused approximately this four quarter. of so than remained gallon trailing in most third we EBITDA in market for week Plains solely or of gallon million; this the times a we margin $X.XX at but and a cash the previous

production a go-forward otherwise the have had total of million versus talk overall came take a have what affected approach While restarting X some as later normal company few excuse overall them the plants produced we I'll in the did start, slow issues we up structure as a which market. the and of well. July dampened May, XX of and XX did of best late margin down quarter, structure seasonal we We gallons off, start negatively ethanol to of results on year, quarter. production the our disciplined up the the segment. off keeping slowdown the our bringing keeping had in was Hopewell for slowly from million -- second All the about margin weak which overall the the to would quarter in gallons between We we had our in most absorption the levels call. negative another more in strategy we took when plants the down also all, me, the maintenance,

the with demonstrates production third the the we ramp volume period quarter, in we gallons partnership, stability -- acquired of for excluding slowly EBITDA, deficiency Segment the over produced July Green same margin gallons commitment with XXXX, Partners a in our and XXXX. slower back With payment compared to of XXXX, enables did XXX million of the MBC structure. million downturns majority the EBITDA. quarter really ethanol The impact of so $XX Plains the earn of slightly XXX.X the the totaled minimum to offset of a for plants million Green year-to-date, corporate platform the up, in by the million to ethanol to us production in partnership respond Plains activities which third and was $XXX

$XX and $XX and Green and but the total for energy quarter XXXX million up Ag segment a $XX expect laid weak of $XX to million, million finish that, makes million. EBITDA Ag for $XX our we expectations $XXX million Plains to million our of million you in $XXX $XXX strong to and ingredients year. million food segments million had energy combined $XXX to remain quarter, we with and As between non-ethanol the Partners of range the approximately last for which of

arbitrage less Our activities normal. have trading overall merchant lower opportunities as and were results than year-to-date volumes

five as less still working years million inception about The XXXX. believe $XXX these the business these along have our are so since of chain. the million attainable market disintermediate a and of of in capital total daily $XXX,XXX as which alone, we more merchant generated our million quarter seen borrow usage. limited opportunities than typical segment with continue drop or participants than We Over last in numbers $X have another and EBITDA, to ingredients food third with the supply out solid is we $XX.X quarter contributed

was us four feed on build or of will Plains cattle our XXX,XXX as head, expect that show our feedlots, quarter, was the quarter, more the accounting cycle. owned trailing cattle on about of million Partners cattle board few rights weakness we revenues levels for the all $XX.X approved the weeks in Green the for for distribution tier cost an than average target third year end second We increase GPP that cattle and EBITDA same the the Green With distribution owned period against on the our daily which in with quarters. fourth a that of times at ago. reported adjusted of for increase of the incentive next end coverage partnership. the -- and we $X.XX is feedlots. distribution at a company X.X as The said, X.X four the of some Plains company as puts ratio all times of approximately double the those the we have for absorb inventories will At the our the a quarter, quarter threshold of

the discuss will on a based the payment QX and later quarter's stronger deficiency a we current MBC John ethanol call, better reversal of production, ratio. expect impacted in coverage but QX As last

Inc. partnership as large committed Green deeply a are Plains at the to We stake we of the upstairs retain success

I'll trends financial later to over Green call the Plains industry the back come review Green call for on ethanol in Partners the turn to outlook let's And Plains current discuss and John? both, Green our Plains. Now and John Inc. performance. to

John Neppl

Todd. you, Thank

First, join having I'd been from the ethanol in senior It and into to grow enterprise. Ag working and commodity the watched looking I'm everyone excited Living Green and I'm industry, team Omaha a closely an amazing to energy tell with in Green company Plains processing story has Plains. worked listening that future. significant to like small into forward I the a

year Consolidated quarter, the X% were and year's XXX were up price million results in higher the were the during Vinegar was three the quarter. for quarter cattle ethanol plants fourth the $XXX.X while third XXXX, positively earlier the Fleischmann's acquired gallon a realized quarter. this than average year. gallons, Plains the per the by ethanol Revenues of quarter slightly XX% ago. in were impacted for additions to last September addition over on up Green third Now three consolidated were feedlots sold third revenues the of to which quarter the third million XXXX, acquired volumes of

We detailed from credit With of conducted year. statute and tax adviser The years, respect partially tax for the of date. million R&D was due Consolidated conducted activities The a to Our of through in whether the the The evaluate the at end to a and of $XX.X XXXX loan recognition thus debt study to the XXXX. with quarter quarter also this August. the third-party the of tax tax the qualified included have year extinguishment XXXX XXXX year-to-date by of and appropriate. million limitations million our ensure of us XXXX the third-party XXXX. The increase term beginning was subsequent ethanol XXXX is credit made the an credit mentioned, complete to conducted third The expenses R&D for by the this income net the far issuance offset ago. of amended Congress for related we in a activities quarter recognized detailed approximately the middle Todd the the $X.X quarter of within covering order $XX.X the was The the study XXXX. of return XXXX the the an we filed September study utilization end year. includes XXXX credit production rate credit recognized filed XX% income Management for which reviewed to normal primarily XXXX. determined includes undertook early a of return adviser million returns recognized this credits third we $XX.X the critical versus in in open met be benefit by tax by on net all tax was the estimate the XXXX tax will new in of R&D to were qualifying filed quarter, for including qualifying XXXX. R&D this for quarter-end assets effect which to XX charges was of R&D credit due through analysis for with R&D XXXX. via permanent conclusions amended year It XXXX September

the determined that of our it realized. to R&D impact ongoing ultimately expected and as amount current effective credit yet this the depend our not will rate; future tax of have activities claims upon the We relates qualifying

million August, in As related $XXX his charge of the of debt of the and with opening non-cash. remarks, the to million million $X.X prepayment write-off on issuance incurred the term of charges $XX.X was Todd related two existing to we a refinancing loan touched of costs completion notes. penalty

inclusive compares last million, extinguishment loss $XX.X year. the of and third reported or adjusted R&D per reduction was quarter tax third the $X.XX one-time our which the of for for operating $X a of was was to of Excluding million income EBITDA, million as debt quarter the before a interest, taxes, credit quarter $XX.X Earnings expenses. effects of share. the EBITDA net R&D for million credit the $X.X This depreciation amortization; and charges,

the in Plains, capital Green venture was quarter, $XX.X construction joint For approximately $X.X our investment with the in representing including Beaumont expenditures. for our of million maintenance the investment third million CapEx

the this billion, significant On third $XX was third term inventory issuance presentation, an quarter. our capital revolvers was you will end term new $XXX of XX. Our $XXX the debt loan our commodity of debt of marketable at September times our includes quarter in $X.X quarter on to the end note million the to resulting leverage million ratio debt IR working X.X this secured the million of increased term that or increase which forma the balance pro by X by Slide readily due in at at

the revolvers $XXX.X at of million total Our $XXX cash quarter. in at remains our of liquidity along the with million on availability end solid

$XXX the by repurchase milestone shares the was yesterday, Board $X.X history, company earnings in common The plan under stock for loan stock XXXX. of in XXX,XXX million repurchases our under release for step approved the structure. August term a repurchase in company's indicated the the we a in it simplifying million did company's our of authorized the million quarter. $XX.X financing debt of was completion just As good Approximately remains third during significant

second the payment quarter an majority For decrease a adjusted deficiency to credit up Partners, $XXX,XXX EBITDA the Plains, million. we from million of million, of of includes reduction the EBITDA of X.X% Green back third quarter. from Plains $XX.X XXXX Green The making $XX.X reported for of the $X adjusted

from Plains throughput that balance the Green of $XX,XXX deficiency in last in Again, flows $XX.Xmillion of flow the third had distributable quarter. expect million payment than to throw gallons down was reported storage the Plains MBC of a third more quarter assets, in our payment Green Distributable of of up quarter X.X% the cash back the the was impacted year quarter. will cash $XX.X the Partners by the of at million X.X% fourth Maintenance XXX credit were We XXXX. volume third ago. year. ethanol which CapEx

fewer the Our year-to-date of mostly rate in our partnership's will think maintenance this assets. of below be due $X.XX per it The CapEx to of scheduled year, unit $XXX,XXX well run distribution we $XXX,XXX maintenance the on expected partnership's is range and projects XX-month $XX.X $XX.X for distributable cash million, adjusted a the declared of third EBITDA on October results were $XX.X XX distributions in quarter. On ratio a resulting declared was a coverage and million, coverage X.XX one-times in was ratio. million, basis, flow times

target coverage We that our continued ratio X.X of is to long-term in maintain a with times. line

to Now Todd. I'd call the back over like to turn

Todd Becker

drift the higher unexpected but this still a Since the continued plants and card for export have XXXX. we high still Thanks, inventories days positive there slightly program John. low is broad margins XX but quarter. data the over ethanol see volumes in and the a oversupply locked be justify remains supports are million dilemma; approximately running we to on are positive slight slowdown beginning exports, like sitting year as the a it for demand, in in the a the we in current days. but margins And call, are as situation, of wild this even some barrels of lies of will downward. this than additional X.X situation fourth demand Overall, quarter, XX% of quarter fourth most industry we a emphasis for enough if are this will this contribution single not remain All that margins we the ago and to are see double-digits. time Industry-wide

and the and getting some not many to get oversupply ethanol, discount continually widest sorted back the curve duty-free things which terrify, to and to product few again, get to their gallons the in a their China of exports there. to octane how growth the place in is opening ready at pump but cheapest are some it extent out use markets approaching looking happen. for over engage XX% It at years, to out. up XXXX, had XXXX Brazil the but the gasoline find the through noticed. We prime does our led this is this need need With initiative So BTU to ways amounts, cheapest only we to

little in to international approximately in exports and variety we third progress many this are a we Philippines, year. overall for continues make see will quarter Canada, hard We head were talk that program Plains and we to our XXXX, open but like terminal small working I'll should get start with there of month an we Green through Beaumont the believe had Mexico and into the on-track a Gasoline so of back are we opening of slow from produced, initiatives a in important more. still we as going year bit XX% the where growth the we and ethanol our be bit. demand gallons other should countries XXXX flattish India, recover this markets. on believe some for

expanded using Over today and time focus major this next not EXX EXX expect another by X,XXX Our most blends we as the offer X,XXX to important year, remains be more. driver. retailers and EXX if offering

that capital EXX to important losing Dakota a That in that not, blended real Texas do responses We did of terminals those infrastructure North ones to is major put not. rack. are at share upgrades. along with The their are to starting to and versus who the own fact spend an the their complete seeing stations offering competitive EXX from

EXX additional leveling discount The supply of production the is disciplined to demand, that fundamentals we and seems least gasoline, other but to is positive for in slight XXXX a see an export, now. such as if But thing all fact industry and that's be are one. hard at also do more off that a impact a that can less to expansion have we a

market continue the will production, our based have than We to more flex in conditions on past. we

faster it always in feel and the shareholders, focus is growth prospects we our act best will much out We when of partnership. we'll on our interest of commitment

well the like have seen second set impact when Our we and to platform is quarter. this do up act, did we this the of in already we

quarter, results demand the cattle as to had Vinegar quarter our higher much solid led Our growth our ingredients segment food Fleischmann's and of by Company the third vinegar continued contributed specialty business. experience We our another growth. and for which in in

Let volume digits mid business. single in that this up me high is you give year overall, to metrics; some

Our than up distilled vinegar, small oversight the our and sales cider, apple plant are to rest which and anti-microbials also growth. double-digit organic business are production white product should of our considerably close on it XXXX throughout bio keep strong growth Still traction capital Fleischmann's higher to that. is increase but projects experienced gaining a exceeded The into to our Overall, company-owned going by have first the feedlots acquisition, Green since of going and as is cattle. very acquired of we cattle also Plains quarter, should year-end, transition all expectations XXXX. operation year the recently will well to well. our business completion, of our another had integration ended full and the we continue perform solid

Jefferson to first month expect month. is and of to import/export in our load terminal later vessel ethanol Our the this receiving start to scheduled November

business And XXXX. out considering currently, the several export first demand. discussions continue We book parties. part have a base partnership to of offering terminal we in service this uniquely to are already domestic of positioned contracting and both with is The forward and the

North towards first saw ethanol but volumes, in of the a third-party existing slight release. terminal other in the to Volumes Rock ground of service the represented through strong terminals quarter partnership, our remains on we were product and schedule which XXXX. you end Little of in broken in drop have has the the Within did be

much not has which we our have to LG I've is a our focus. one, feed make still and talked initiative. starting Something about yes, we're Yes, product been

our We and the growth a the ingredient feed fermentation. expertise have discovered the from LG path to use to of process capitalizing certain ethanol

aspect raw buy need patent every for our to this do to have we process. of We feed process around applied sugar and not

world a we this scale have moved facility but very this have our and point. scale We we process. lab algae York inherited York, are gallon X,XXX starts to fermenters has in facility, of where and early our At started yields to the held in have class jump fermentation yet up up this their to that we production

the feeding fed the date achieved have We recently weight. the industry-standard time market to par saw our and but with The to a our by ratios completed feed round confirming advantage products much as fish growth commercial XX% trout trials conversion as was on today, best market our yields reached trout direction. as with compared a on of products

quarter are batches, our first up at we be commercial production albeit produce This to facility is York the in feed. included setting goal continuous and small, to

it's low It whole ethanol here? vision the technology progress to want very the design. the bolt-on stream to months, In bolt on value three to make and what's a to existing process. So will add next be six value to plant utilize we the

focus benefit did with this make production. quarter We benefit This economic for step but in we on all the it in believe We'll commercial has this be the starting for the of to you're path -- make consequence in fed wanted the confidence. or deliver have our make can't we that tax we invested through and more we new part In can see belongs technologies and efficiencies are but today. work to algae thing focus our months sure investment the update us forward. coming one our we is shareholders of be improving seeing closing, with sure, this profitable to to to to next an

operating We per operations. ability to for our to be to customers this offer many corn companies, initiative is one our this major of others a need which our work in example us to We with seed we cost buy improve improve some plants and forward. will our going yields. and platform. At have direct also we with partnered just farmers across as gallon, And and to on our continue of reducing plants, under do to of are we ongoing understand focus our review costs improvement

disintermediate traditional our Our well. traction as programs we day every also on want to to transition continue farmer direct I as systems. CFO comment gain the

did to First, many we term retired of goal his of you we achieve loan B story did Plains he part of XX for last retired big grateful we and and Green the the will the like commitment quite the achievement. the at know done, he remain Jerry before and an getting are years, a Peters, this it's quarter and Board he has of partnership. He's his on

are have His Neppl fortunate new to We CFO. as understanding most join the something team. and is our of John a depth companies well get business on with One Day never will

have missed We now the beat.

than pay XX is next Plains gets John's that John give should all to like businesses extensive years Now, experience even the more hands. Green in confidence you in or more. good ours of

finally, upcoming on next we'll efforts need on we ethanol The you remains last of is and be update today. the which years the XX out platform know XX to have on sure the well what So us our this. system led driving focused costs, do but quarters production we'll additional years here making costs we means

We have ethanol are we X for the areas or X next years on focusing outside production. of XX major growth

of our First, and upgrade surface we implement we of the technology moving fast them distillers come to to this produce will we've platform. we Technology and today. quality believe across protein one area is in need that this will the

invest to and MLP in opportunities need Second, we look at and we to terminal continually diversify earnings assets. the

acquire And company we We you added earnings shape when our we a and will that must with have on we the that. analyze businesses. value delivered with sense. cattle as income we our and bolt-on have we Fourth, the value Third, we the results customer add that can selectively continually fifth, production the end, strategy make in supply predictable and both, want to in do streams, input either said on would. longer food ethanol our the a deliver chain focus future power have we well, this But seen the assets ingredients where believe in organically has we pent-up base business side. or output and

the James call Q&A coming for I'll ask today, on session. the start thanks So and to

Operator

Thank Stephens you. we'll Inc. Farha with first question And from [Operator take today Instructions] our Aslam

Farha Aslam

Good exports morning. in through supply to production? expect next be we and go EXX this year demand expectation and -- what your year, of take Can to you balance particular,

Todd Becker

Sure.

XX.X now the running as around Domestic of right ethanol XX.X to on low And right billion would So in be. made being of get industry. at gallons that EXX this us and to is run think an that think pace year. side, where X.XX the to billion XX.X to export year this X.XX to year. to rate running us XX.X we'll right we're XX.XX kind right rest demand for up we'll We gallons to we -- XX.XX, the get

barrels, So final we on right end towards year million exports depending December. of should around XX started year see in the movement the a on million draws we we the will end possibly we and around barrels right towards XX -- believe little under, some year the the and builds up

balance. So the that's

optimistic think into at million XXXX, million take year. average when we exceed run to are For X.XX consideration, per average going could million this And that day. that exports we're to X.XX X.XX still I or we

lot do. a work have to We of

we on, have the that all all Brazil, are China that so -- believe I We mentioned on that opportunities, working have call and the Mexico, with on. we're countries countries great

tear-up. for year, with And even at so be Brazil the our view to next numbers indicated Brazilians would they which the those keeping that us steady, steady have

exports, probably that's the for China steady, billion in we X.X risky onto our billion could with next wildcard. the And/but think year being most X.X to they if number are I exceed that estimate.

Farha Aslam

EXX? And year? next

Todd Becker

you stations and XXX X,XXX you new are average stations add million on could if say of to that. the gallons X that this general, between that over sells into and of gallons the in year demand oil million gallons XXX additional and new If math, those super next million demand we calculator of XXX EXX to XXX do put depending the X it's have somewhere million million roll gasoline. When stations on million year. out versus

we over not can at to think a the certain we industry of at it's lot, But and the we're couple year. that least not overall, looks just this study. a weekly that slow least, creep we're in point kind So a possibly it if lot, building of basis the drawing been challenged at last time years, I has have our favorite could equilibrium of with swing down

Farha Aslam

much about that That's your you Plains do you staff you do you at you more have of think follow-up, And down? the plants of with slow kind absorb if release, to absorption? do cost a know Could its helpful. fixed talk would the about sort you as slow flexible production. you -- down? then, how becoming did And about How talked Green in

Todd Becker

Yes, labor huge component in is not actually cost overall our of a general.

our and go positive. bigger to employed worst the everybody cost -- that a for which depending which covering would much, then would we and really we'll want we at impact right length slightly that is, we did not structure. at close against slowed a to the huge slowdown, time impact down labor as and are very I this looking of be variable are we the The imagine point, would employees to So our it, a we feel structure. the slowdown, when the down that last is determine margin look part And at thing of that to not labor; best we if kept on not

negative gallons at will PPP while those business. platform billion gallons not we well, have X.X is easily the want huge a the want worth focused which to well run, a cost at business a billion across to weaker the on investments but absorb are as MBCs the that $X.XX either, it, still gallon we So at grow the level, that to continue gallon, do impact X.X we we $X.XX very maintaining

we industry, to that XX lock is even say, taken or or are the at looking reason took the even the XXX a that's again look positive or that the month of market, positively just the plans the we market impact the one XX right is level, on down, million barrels just belief and that of our structure off we away a margins MBC position is went some we that reason not believe we gallons, because the if we overall an results our something have at basically which actions million impacted least volume. have went to that's XXX in now, million that that the because we believe down million So gallons we margin in that are for as would our to today

penny the in we all the expansion than is platform. We more believe and will the and willing ability $X.XX volumes in flex to have fixed aren't to billion remaining return, at shareholders one it the a giving costs the those those right And would we absorb gallons X.X and we about -- overall every that to we're gallons volumes expansion on our most have that need across point aggressively the if scale we absolutely really past. margins with that our market flex to do of

Operator

with we'll Vertical Next, from hear Heather Jones Group.

Heather Jones

obligated EPA. your north near And recent Good blender or the at pronouncements levels. merchant from morning. acquisitions in comments, you I that I I have first, wondering, like potentially given ethanol's do of partnerships a record better you refiners to the or questions. space? seemingly see was regulatory parties profitability I couple want on any would we that that but have chance the do as just given was -- seek visibility finer to much to know, know, a or given

Todd Becker

versus we've cost, comment in and at look mean, Valero few a some a on thus seen there I plants. grain ethanol you good hedge today. earnings besides that. others overall mean, I an offset been I think I take has far can't It if companies that. ethanol is positions on don't

when I I for or ways through great opportunity a seeing to some doing and and mitigate, you're of that of values retail. along whether there's ethanol at their these yes, the pushing refiners with already the at I think more price think look there's blending it with through blending RIN, potential it's that -- merchant

has their to we the or I for the fact ethanol to it, amount given, merchant obviously into RIN been that's an that a I though hear note important not. about on market a about amount and refiners waivers important grant hardships if And this think X year benefit, come what's the RIN has that, record in know complain EPA of as ones don't merchant front. of small I waivers there or that for is well. EPA X but record the around think has refiners

industry dealing dealing it's last bit XX something we that are and the and a long-term, now oversupply stable grow I we're that's with a of for think right strong months [ph]. recreep with

discounts international I -- driver these to of a before, more in in online still. our creep think have is our see stuff we're I that think see we that past, some type the general, we we starting product to discount believe interest our seen in over, more, really come again. than globally in and is see we'll demand. But we significant some gasoline When of new have

interest see the We to pickup starting more volumes a finish export than saw XXXX time this of last we for we year. year as are

Heather Jones

deterioration secondly, your want thank Okay, about the performance. And you. in I talk to relative

but was once well credit, utilization this divergence R&D versions, the worsens by $X.XX it benchmark gross this peers adjust with quarter with a be And but QX, actually from tracked gallon we that QX, Your consolidated of use. was public was explained have nearly lower your divergence that generally of the a this the margins industry non-recurring and there some GAAP could extremely it in majority unprecedented. the you for

get happened? on QX, quality worse did poor Are why So plants such if my waiting question is, I during you've platform? are they entire the And what it during so QX? much so, that acquired mean, the

Todd Becker

margins, quarters. was QX, on that of Let's of in our think you In I due the gross we last four well. kind we some go most mentioned those that In outperform companies QX, to back of on lifted think gallons, programs. effort right track. we in QX, general, an at was reduce. one, And when to made those off we hedging the spread that besides our took we I point of performed

either $X.XX time X which X P&L the of I or of So plants. would our up It hit on I the our think had we added don't off, start margin up at this We issues. provided week fact, these RNM, quarters which held a come We say positive was even that slow plants, spread. of massive performer margins, with throughout X those quarter, We $X.XX standpoint best gross turn X off. also a quarters to had or couple ago, takes in had our we X QX. we to in tied an this which it at QX, high of slow we think were hit I was held a on plants, extra our conservation all quarter even quarter. or more gallons probably we, cross and margin divergence and a

you was did those us of because so look And when -- all a and weighted Actually Sept, a the look we have and year August was a that $X.XX July pushing poor a there our all that, actually of header. Sept cross this is towards at when at high-teens just down We gallon, August in July week GAAP. long for for margin we very things. had

So July in argue that, down while, I definitely would a lot. the us yes, a weighed

said we the have they never a -- had September the the okay. We those the didn't level through below think far and were we it come to and a factors. So poor above whole said median. but we they very I based performed have should for Do right at August mean, I in little the a are on as that have somewhere we were median acquired, median, be going performing been they bit performing July thus we plants quarter we at

to we and that down after We of flex these of that continue still in the see cost to production. a again. evaluate which to flex start quarters, are couple believe lot that improvements up of we in There plans the benefit going will next are we plants needs

little and bit market hedge was quarter as the we're So We this better. well. also hedge as getting a

it expanded or more quarter gallons didn't point, the that we XX up. last probably days not open up, of where margins really at were was basically $X.XX the the have probably that pick would we we on So and picked

end we in it when I third July first commie when and in bad we margins in we to do we quarter. So It's opinion the second the guess, had had Hallmark. [indiscernible] reason quarter a we market to the based hedged only in benefited quarter the because on these on the it the beginning we quarter, hatched able and like third of were the tension and of like has the don't my

lot absolutely we have yes, I underperform, to -- explanation a that. guess, So of we right, for have but we did you're

platform we couple of of on achieving costs we in of a ways not and to every on have We we're our forward margins, still focused that operating overall are go just pennies focused but reducing market get on the go mean, of costs I day. also general. our have out and

Heather Jones

more it a see I something to. of chicken What to could you that, I is, me give the if us industry. reminds on as to a happening follow-up And was hold wondering lot here

so So nimble few years their were pilgrims umbrella more ago, a competitors. that an for Tyson, and created the leaders they the uncompetitive all

be and So before they at that break were more bleeding even and could even. expand the know competitors Tyson pilgrims they're nimble will

-- industry underperform you seems So make And coming they the I'm not the industry. rationalizing don't telling burden it the industry more the you cost next year, sure online you the the I'm supply to it's become so of need took you're and and on burden sure a blight productions wondering, for of just ethanol expanding, already least know. there the like producer's best, that bearing don't I'm you out rationalization. is anything the not

wondering happening. keep if producer could I'm going give how to you're GPRE make the So cost greater us from you about least delay that to

Todd Becker

not of Well, platform, we're which XX right have a to will they and XX them to that they of you're that the to going is nobody bought ever producer best not platform, there and has -- -- get or get cost out level. the a there plants lease big

single, point. do. a XX-plant with the yourself least platform So be hard to location they at it's of a that is producer, comparing It's that to at going have cost all

always where made cost are believe right costs lease corn, their where line we get they they they driving on operating a. where have by by that and will a are depending ethanol the ourselves have acquisitions bigger in their our sell position I we're on general, not now costs back into we out those that where of with in Some some dependent

we yields online. We the on $X.XX been margin corn, are to bear back things natural average right and the distillers ethanol improving have the of improving, of providing and on gas yields gallon sure our And burden. are $X.XX, our not obviously ethanol the have per because these I'm corn heading that we to after and were saying operating are gross their and

get And I don't taking to of think think million I it's out which million of this in that exports EXX us is back going the the on balance market beneficial XXX very out if general this gallons margin back a bear the of have and to market, to XXX XXX think Paraguay burden would our get don't you to XXX gallons extra bounce we interesting million of we're have really see of today us. to are for you inventory, and the demand market if going did structure. she that, I barrels that

I we that. bear get I going -- don't judging we we the sure burden another think that the I'm of not X a quarter didn't have have the burden of really listen, don't our bearing I our shareholders, fallen the off for -- line in expect for do QX. shareholders abyss and it's operably ourselves certainly can structure. just nor to buried quarters I'm act versus will conversation do So judge not our that confident the it's we a QX to operating place but for that industry we can saying you in the burden, do

have July, very margin us we a really That's on shutdowns to wait well. the our those more heavily. And it would July this all costly explanations more performance difficult than performed gross and was quarter. and good underperformance down biggest driver in we goodness July our out cost thought so Coming of step

Operator

Laurence to on with Jefferies. move now We'll Alexander

Jeffrey Schnell

play How today, you build you is do talk about Can the Jeff the this can opportunities import, China we're EXX. out if expect for going about in Laurence. dynamics. talk This you through Schnell potential

Todd Becker

Yes.

there's somewhere production at about XXX China billion the their is believe we internal -- is is We close to in producing today Our that's range somewhere XX% gallons that produce gallons, so capability or plants today non-operating million capacity. ethanol where says, intelligence can in that the XXXX. the of X for nine with there a some believe in even opportunity gasoline into is demand provide of the is in we we're becoming areas product, cost duty. competitive them participate and of range U.S. gallon at versus even and where market In billion XXX.X to China import to meantime, are the with that an of

we're done, little some what which lot today business talk, rumors positive. a seeing interest. And is, getting of we're that a so can believe bit some, be hearing think of will we we be

have get anything capacity a cheap think capacity to a some in care to I take years the that. least yet, will it'll It thing. is their molecule, that coming And the we start molecule. I of of the if that's to to the start don't slow they do think self-sustaining market cheap important be at product work and be I up but they say, into would a but is most it

I by I China to the ethanol. grains is it, think open this extremely and for they're important trip think distillers for administration to

surrounded that of interest the I DGG's protein and beans think and protein seeing as that, DGG's in soybeans, around general, of agenda up the on protein world the definitely lower both picking of soy things it's some the being the the is I complex lowest in think with U.S. well. around cost and in because you're Asia the per

as I'm initial are am positive. I forward. going positive all looking it's China, thus about always think we far, -- a that's the so And cautiously but messages optimistic

Jeffrey Schnell

XXX XXX is Just non-ethanol bridge to clarify. for is And that XXXX, EBITDA, that to the correct? the

Todd Becker

That's correct.

Jeffrey Schnell

seems on in I that being in any quarter. seeing of is Giving sort QX? this have prompted for of this or level do Okay. the what operating on comments rates production XX% the your the full level hedged on can, is for a is you're or reduced what and -- down then you curves, if hedging supply/demand highest of the the assets it And at lastly forward

Todd Becker

in production that of around million gallon right expect is range. our XXX high to the XX% XXX million -- total we to XX in what XX%

but at at our We XX% because could quarter against or expect move can positive point, we of we operate decisions the range move, the some XX.X the and making on to and markets, least quarter, export that its plant the let's out rest gallons. lock million and you are on We some something we to for to this in other But if in to quickly plants. those it even coming that. -- need China telling at the telling when at in you barrels lift we have certainty point have felt But down last markets as program generate to this let's get at be and this now physical free also expansion to quarter, we a just million very right X.X these that table, at of high flow cash like not continue so levels more a hedge. much not we point the they of this margins, to barrels they'll felt go year, it risk will levels that well, than are massive on they're hedging

Operator

Adam Samuelson with Goldman Sachs next question. for you

Adam Samuelson

the bringing this costs a of the assets the reconcile Maybe up first, July. XXXX and made just down running Todd, long. going in assets. that kind trying back certainly of to comments question couple the you operating to about of markets only, you million the about And XXX gallons bore I'm incremental that

actually of shut and the for to of considered or Would challenge start really one-time on flex there? down maybe, think that supply operating you it the XXXX. Any one you system? now couple problems was if you being would Given cost facilities two repeat the thoughts proactive

Todd Becker

Sure.

important do especially bit But the challenge of expected. the that a I more we that. up we harder lot were John, of bought they So costly new bit a maybe was of that you it's comment more can ones not we and weed. get couple we a learned than a the shutdown did. comments? think back bring maybe Jeff on any But a color just into up a from have them back that bringing facilities to understand little

John Neppl

started. more assets, Right, get the straightforward. continuous is relatively fermentation to Where The process time the process some took best

Some infection timing. issues, just issues, some throughput fermentation,

Abengoa the that some we maintenance [ph] the bought. talked deferred certainly had addition We asset Todd reduce maintenance cost. in about In to trying that issues. just to

sure up, more to So plants catching that the reliable. trying are make

I Having playing decision very that, going skilled and that offline, that those of said taking in forward. up. a we're them All think plant bring

here one and We a off years. over specific the have there issues

where most we various to do know standpoint. do and we look not operating sense the It's margin, to see margin cost, the makes gross just So but maybe that what it from certainly need in a markets. it we'll

And with always can we we that's forward So analysis. we certainly new acquired. that assets go know under the

Todd Becker

down. gallon think range, that month just up it bringing expensive those to bring $X.XX the we We the those cost the make through in back think $X.XX platform with bit overall cost assets, it of in quarter, shutting exercise to flowing whole I'd very of of a detrimental general as well. income along that start investment R&M cost us had overall. certainly was that statement a in platform, July the for margin, that up. the was to we Well, whole was overall impact had going over somewhere impact to that for an to that a It more positive thought were a that

Adam Samuelson

second to going was My question allocation. around capital be

about and thoughts seems stock your you value. at MLP. opportunities on value like plants quite When low back the some Looking to of opportunity think here. maximizing below to perhaps the some I value mean, price but value, it you maximize a the back out for MLP monetize the there's the good of any trading the ethanol book today, shareholder parent, buy to

Todd Becker

got point. we price with highly last what will both at would what I all about board about been and we We're quarter, And weak think $XX. it their quarter overall. this on -- see We time. what our Yes. discuss Well, have this do the thought below you we it MLP, when can't equity tell share markets focused strategy be of this we'll

-- our to certainly increase the and them general, coverage continue fairly And the it good ratio we Partners any has broader against to that backdrop we coverage performed in maintain due not the anything Plains is side. maintain the do distribution. of MLP fact we're MLP well So have to high hurry performance. Green the in from And

have On side, we do the authorize. share GPRE buyback the

value stepped step then have of I bought. from seen time the we as we past, get The ones kind and we a and quarter, it, -- after window weakness, not then throughout stepped value like [indiscernible]. did this and perspective. be we share price, shut and think and future from the us open that We're highly that to and the in future window in to rally have of focused earnings under up on the anyways it's afraid platform in back the us we on market we maximize in, last we believe we will we've away last that don't and key try the versus

Operator

we'll Next Irwin Partners. from hear Craig ROTH Capital with

Craig Irwin

expand vinegar and anything businesses share to And a So being Maybe Todd, related can your as to potential continue maybe feedlots, can of on -- valuation. that significant these there what significant those skepticism allows seems continue targets you've we to recap of growth you and the you about I and the EBITDA what what of you opportunities at quarters businesses, items? along on sort amount see if the directly in that. the the you in look trajectory disability achieved. to the couple market there's from shared that other pretty about non-ethanol

Todd Becker

Yes.

we step look energy. first, when we -- we Eigen the them the each So start segments X with the take step, by at and

at believe of full elevators. harvest are out grain to close we We then outcome our

storage sorry. gallons significant the return of with loss so market full against capacity that. in earnings. paying ability XX I'm harvest come a Our million or grain out we'll with or so And a costs your space earn bushels, million above of of you to XX

to that and low is will should Overall, back merchant million be that merchant we businesses. issues. pickup a Ag just QX, in see starting due start, trading start above QX to volumes, a or practices, $XX to we'll counting that, we for to see we distribution we're to pickup now still just and start really week weak see a businesses finish year energy a addition energy, though through the our in in of a coming second Ag quarter had in even we and had stronger end timing some to EBITDA In and normal

in that I range So year, $XX to better, what achieve earnings. next not or be more the to $XX million same, believe we we'll are able based million on -- if

potentially and can range, oil, in we is million X X $XX which one the cattle segment food that a the believe rate our it, high we segment fine has all feed our so can those ROI our that that high earnings corn million earn margin still depending components we earn we supercharge the the Our operation our on which, had and believe the actually food ingredient $XX Vinegar -- and to business are equity. return on what to cattle-based there. are that we structure cattle margin have, cattle can obviously, high of against components ROI's, Fleischmann's feeding, But is that base

but at terms may think looking we acquisitions don't another this looking and to sites to we to it's And major to business. Plains a Green be in at so of there may at a little I want that to we're Partners, maintain to acquisition, some out point. we our do projects more pretty one are lay And continue be wanted -- at do, a yard. easy bit special

have at range, optimistic startup of been estimated to the that and we're We Beaumont kind $XX million of million very $XX our that terminal.

I a hurricane would only the a are there to we going we six also us day or Plains'. only bit are that And the through but volume in own to want but already, be us to back on of bum volumes gave see We seeing every not we little reluctance little own be that calls we more parent. we put are our come own upsides through close more put not bit companies and along five have in even where volume but we that people built would as the have with bus to opening our that want us that back in from going And the beneficial market own not that to to our we alone bit from the thought even our the this the volumes, the to don't It's supporting on selling to the push that we starting be where terminal, the see are contracting, the from returns internal that volumes. terminal it terminal thing partnership say pushing a Green to in are at be to starting terms was we're months to just and when the and above point. interest

did program. take So that help will is billion down we're our Beaumont volume Partners [indiscernible] X.X with billion all Beaumont year. place and with we of this X.X or some a in optimistic potentially volumes offset Plains billion that but point. or will gallon help next X.X Green that at from if export

Craig Irwin

a versus things really the in your bring there. up the to challenges my structural executing on Great. you ability impact Can re-start how on of will [indiscernible] question plants and next had Abengoa that and future? these down that the you plans them was the restart much a is actually follow-up learning's and

Todd Becker

down. were of a down structural, It bought a a plant process. because they RNM we was was just of work, ICM a for not a needed Delta-Ts by them. in driven bit of and work the was it lot we We them a it But we was like little some normalize just And higher anyways, when -- or a were shutdown. to different not that, when lot a of did --

lessons Some of lot to? Jeff bring time. driven harder a up, learned would a it you next it be easier to by lot of I back was and want but would say we

Jeffrey Briggs

absolutely, we it going a doing again. process if we're to of lot Yes. learned that

Todd Becker

up. our July been much quarter, of overall, drag and back different, quarter bringing because a that again, lot somebody's it to through achieved mainly on a different would plants lessons the would just so learned was a performance. have And big we we have been than

Operator

have Next we Tyler Jaffray. Etten Piper with

Tyler Etten

desire in fits discussed into capacity just the follow-up, if region. build being how wondering in [indiscernible] out your the or given is you the capacity for like could, U.S. in then to policy push thoughts that. Brazil Brazil potential around any a was ethanol of GPRE operate there deal about I And a

Todd Becker

see which lot Optimistically We taking The this We don't when I that getting it's in see, in levels. place what and there's I level bio discussions will investing and you Brazil happens all they the will our program wait wants think question; think to talk still wait to know general, could this be targets, market, if in sorry. volumes though, to achieve the then highest some But of there's specifics to we be. I'm the know of in still volumes. bring believe needs a necessary think They're the the product. And see attention that what think of Brazil, a to a lot there's and pushback. but benefits program. we'll similar end, think that and there, government in the mean, the duty, I -- the their down second at Washington, overall. lot somewhat I we on substantially implementation in have overall they in and import year's I

question in in Plains second this Brazil, a or investor we the on investment be point, Brazil. investing So for don't Green an to initiative thesis have

Tyler Etten

production. mentioned on Okay. China have water produce one, something like building your competitor that. the out then just don't A thoughts they just to last that their have And own

interested Just and your puts takes? in

Todd Becker

internal distillers always know local Water part is don't quality And they ethanol been buy their that with not. U.S. In as they crushing that I they can to -- I point, more corn well as corn they will built build there plants go probably continue soybeans. come distiller and think more U.S. so use Unless grow forward. they'll their that in. the general, to corn strategy, ethanol of given initiative China, and ethanol they I'm at they as not do of this of quality would need corn, is they an their have good Yes, have capabilities the a issue in sure but an has or point. there. the

exactly do. hard to really what it's they'd So say

windows -- wouldn't water we at I look the about important idea China sell a have the we that distillers levels this and protein in there, overall good I opportunities for we believe our relationship grain think feed think is point -- an with the source a fact and general, When I I to issue, are of And very happening is China. between of the to as at soybeans if the demand exited we supply I will one think issue. of think when highest have they use, China topics But make now at the as that point. example, these discussing issue to and balance that the similar beneficial good ago, waking products is found you in bit have We world that think that, the think, is our kicked And corn. cheapest a to U.S. of product. is that a want protein product we about we that should right sense? an between animal really years thing few well already. up you excess, so reentered a price the think somewhat And U.S. we that look to And that found and this product as XXX% to clearing a is, a which is I year, of well market we a price has out we it's home might a and when product price, the ethanol thought whole now little the world and especially China begin all look into Yet, a as but clear our at China's whole there found really does to think If ethanol. today, product.

Operator

with from hear Stine Craig-Hallum. now Eric We'll

Eric Stine

the does something that clarify cautious now? right the tear go where in to state When think flat Brazil. When it's is we about that that, you just talking wondering ups just I'm about away from that XXXX, assume or year-over-year. optimism were does on exports that got a you stand steady that assume

Todd Becker

away can a numbers. I'm at No. couple you of ways. go it at those the so that assuming in tariffs not look

duty bring have you a XX%, and license, the total to and against in the to XX% bring in against importer half. your you an your import you're have at If if volume. windows XX% share start if you double not you that, And your work an the other average, license

it, window a XXX they which, the know my XXX their of I you the look the an that's and that in I'll is so get at And in I at with open my how the XXX I will which And say, I'll were at not XX%, on some I get on definitely market's is free, margin think to But import know instead that a to don't tariff they'll think make gallons? of that import I don't the their $X.XX, on import. really on the the was point, at that's larger focused and again, I number, and they'll they'll close spread bringing I number just numbers how example. giving view XX%. amount are on point volume. making but or I'm at focused And open over just And it of engineering think that, the look do $X.XX think I focus market think how it XX%

opportunity I have think there. you if And so that, an do we'll

Eric Stine

front little years. I other markets see you you that out that's the talked but Okay. look some for think And on you export others and one last maybe that opening bit few might term, about mentioned longer other China, just obviously a me, some very ones India you up, see market. at just a sizable as a and maybe

Todd Becker

there's Mexico, we done time a China, in To think being about we some volumes. work lot talked of XXXX in to for bring

view Our is Steve what? in volumes

Carl Bleyl

million looking of at probably the I'm because XXX it, cities. now, still right three major

Todd Becker

ethanol. XXX Mexico in major estimate XXXX, So a for has India China, for is around tender bring million our

Carl Bleyl

so requirement haven't increase the and increase interesting value. they if on, tender Do they it's original they their overall still the one. met

Todd Becker

gallons. billion X

Carl Bleyl

billion They gallons took X it up

Todd Becker

billion we is tender, gallons point up are positive bring industry market, a up Philippines volumes. the their at. In the is that which for X bring internal Indian looking their to while looking think we still

So the East week. Middle we some this to sold again volumes

discounted continues to take that they that up when take to up in and highly we're probably last Canada, they when and price the perspective, with truly We of the especially already. we a are XXXX you a It'll strong you starting seen which competitive see the probably user world we've advantage advantage for the bring now altogether, got volume We've inquiries have weeks add it you $X.XX gasoline. that six my be than gas on. India of in based but that think, ethanol of more volume longer from on take should opportunities. coming for so blind are volume volume

Operator

Markets BMO Capital next has with Mejias our question. Omar

Omar Mejias

were for Good questions Ken, morning. This already. is Omar filling most in asked

color I on next think a question had you can production a year? the estimate but what's for bit of add you your little earlier your

Todd Becker

X.XXX that you some potentially people the in production in run you year. probably construction some We range. coming in on think to we X% in to but get X.XXX the which It's are with Even to of it can XX.X -- daily next going see though X% efficiencies, be I to general, be think think to XX.X will running. with volume, drop out, late some I put new you -- type if you average some full on may year

average, it the and -- not all So the now. we're creeping right overall

but under I I being think average. other in there on done, some we're are are others done think construction, company, projects still general, a as

year, getting now can you I X.XXX's but see think we're you're cooler, starting these it's run even to this better. right so

we could and slower put running have faster not we that one we faster. run that I place, running slower of the is anymore at in have same as the yield platform run yield maintain we to least think impact the that look when at on having or the thing our technology into some is through

to start we as we we're don't past. where the those when when we in would X.XX see at X.XX, X.XXs; today and anymore as yields the actually yields much at we see run So drop at faster,

that So we efficiencies and that put through is into done place. end front things have

Omar Mejias

And quick one follow-up to that.

-- year Just is was this is to that color that in being around based there the quantify on I any -- impact a -- weather little cooler temperatures on mean, So that? is on low real there; this it's year's weather, I think any production or summer? but just impact there bit was a there cooler, a sizable way

Todd Becker

or production corn production? ethanol On

Omar Mejias

production. Ethanol

Todd Becker

really at but think a we not look the the you last weather stress over of well in Yes, four ran industry capacity, where I and system we ran our our didn't if I a think summer. lot the month so or capacities I there was general, on three -- put easier we overall. this cooling real of months, cooling mean weather about matched hot had

Omar Mejias

Thanks. That's for me. it

Operator

with from we'll Next Molchanov Pavel hear Raymond James.

PavelMolchanov

one the you thought last me I exit in this on I announcing one cellulose, for that from question but we are your yourselves market the of one Italy get that domestically that. ethanol hours in ask in in Just I players an cellulose and of and two would remaining part knowing saw guys and involved XX the perspective

Todd Becker

industry and now is there is any a new get being to very remains $X.XX money will a make vault We lot have – a best people and of industry a write $XX competitive. always it invested spent $X.XX are $XX itself little bit quickly. demand could to think a in for spending and plant not corn-based build is is we're this when side, I or major to gallon some more on and gallon gallon perspective date, on a it equation we ethanol in there'll is these the it. in companies we bit maybe up corn of a a ethanol, be do we to up hard out sales on From get [ph] accomplish is and corn that souk plant a a supply you very, less our know point. road be per long to set a running, I it's it's trying at this future spend we said we're gallon need time and $XX, Look, plants a didn't hard our plan and just this something and nor from or mid-threes it those, for on follower, as and an a thing out working are little just the ethanol, little $X.XX oil bit

not surprising is but it's to happening. this So point it that see certainly disheartening at

Pavel Molchanov

it. appreciate I Alright,

Todd Becker

one on you put don't quarter. for number We'll XX the wait to for next you in next queue have year, so number

So that guys. you we'll for do

Operator

with question final Akyol Our Stifel. from come will Selman

Selman Akyol

you. Thank

regarding So question MLP. the

MLP to I'm got as You see do but looking needing invest you've talked in Little you longer into about to at; you've you're Beaumont, what I what terminal diversify the mean Rock and clearly term? sort got of else curious

Todd Becker

of We at that opportunity that with the for think look there's us things of EXX, a with for an we that's could fuel build probably years. and them couple to terminals do in-line are out

long-term, does we So nice terminals for could in if amount their we the ethanol we the from through about -- believe there -- value the XXXX expanding straight we is drop looking before that value that a Plains of some one-off volume a volumes that Jefferson and/or that And ready have add areas in for understand plants different that market our terminal revolver or Green that are volumes a creating at valuation those recently entity. coming and should somewhat obviously we've of getting for believe look at terminals, well. products. what to the do we of either cognizant other in GPP, be of limitations how we we other to ethanol but We'll as believe we over valuations; overall serious diversification upsized for our of so have can opportunities just

Selman Akyol

you quarter, Got in you. referenced And volumes, the at third-party then the that? guys just throughput Birmingham, lower one thing down on release, press what's for output the

Todd Becker

thought through performed volumes very saw lower it well had volumes we our actually really would of the other of and biodiesel terminals handle, that actually volumes said increase this things lower but ethanol actually our we terms of steady an we've all We in handled we products, in terminals, other at all like quarter of Birmingham. and that was mostly ethanol products we saw

that. we'll So have Steve? look Or an see increase, to did we at

Carl Bleyl

did. we Yes,

the You're missing just biodiesel.

Todd Becker

really we volumes with market saw comes follow-up we as quarter think around back which they're new where in well. the is of some getting the that certainty potentially their in biodiesel the Yes, this

Selman Akyol

thank right, much. All very you

Operator

will over to additional comments. any That will Todd turn now conclude our question-and-answer session. the for call I Becker

Todd Becker

worse. I've been called

on call for So that quarter Obviously, -- had moving the today. coming anyway, of a lot a pieces. everybody thanks

a still where forward, And from and trying higher tailwind. accomplish continue potentially domestic Plains. EXX on XXXX, been will to exports and optimistic were focus getting line. of the to to we catch with creep, We XXXX the and on study strategy what very today cost, remain We Green demands go-forward very on we're for bit capacity still go back little in pushback started we but a focus have them cost at slower at pace a are and optimistic might in continue to

quarter. So on thanks for next today coming the we'll see call and you

Operator

That for participation. you conclude does today's you conference call. Thank

You now may disconnect.

Green Plains (GPRE) 2 Nov 172017 Q3 Earnings call transcript