GPRE - Earnings call transcript Q1 2019

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Operator

Good day, ladies and gentlemen, and welcome to the Green Plains Incorporated and Green Plains Partners First Quarter 2019 Results Conference Call. [Operator Instructions].

As a reminder, this conference call may be recorded. I would now like to introduce your host for today's conference, Mr. Jim Stark. begin. may you Sir,

Jim Stark

Officer; welcome First Green Participants Quarter Todd Patrich page Development Officer. Simpkins, Chief both call and And Chief Green on link under Inc. show the a There presentation that corporate Chief Plains are Executive can on and you Events President Partners XXXX Becker, and Neppl, to find you. our our Plains websites. on Financial and the and is today's John Thank Earnings slide Officer; available the Investor Presentations Call.

and materially During this expectations be in We not discussed the These making about Form which of section made filings Actual with and are comments statements, Risk forward-looking differ statements any conference the and other forward-looking and could risks during duty our the assumptions in statement. events. call reports do and projections other because press call we to Securities of yesterday's future current undertake Commission. will are releases uncertainties. any subject and predictions, to factors on Factors that are update XX-K, based and XX-Q and this statements Exchange results

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

Todd Becker

Officer. strategy dedication and yesterday and with wish currently And Patrich to that Neppl change, since is we few has for the Simkins, years that us that been become Accounting Officer Jim. plan. to roll-out the morning, John I'm Chief be Green will continue a new become to us worked Officer of his want Kolomaya the Chief has the to $XX.X will Plains. net over for announce With that say the and Development joining the reported and Paul share. been and contributions diluted Thanks, understanding critical years new our his Bunge. has since for announcement us Financial XXXX, financial here per last in to he immeasurable we and Patrich has appreciate last tirelessly you work, Chief him our beginning CFO is Paul out $X.XX for today. best been everybody, his the happy portfolio become position. success. and Early a who a XX optimization saw to us loss of as partner and the partnership company's will or million thanks, John leaving initiatives of finance I hard deep We close the for company do have

ethanol capacity. winter again We continue in quarter production. margin results environment plants service by was flooding was of first result time Plains plants the and impacted margin financial decided this poor Midwest. in our QX ran XXX as for temporarily approximately our the affected we margin Green impacted negative gallon to Our delays million a crush us operating cutbacks the it to negatively gallons produced environment impacted the overall weak also as XX% the first idle of financial approximately Prior ethanol $X.XX and enhanced our by also gallon. rail at a Consolidated our severe whereas be weather of a $X.XX a and the by quarter. performance

end Madison is higher to greater. return producing operating by in at will or be our as should early at May of operating July. our run half XX% historical XXXX restart of to second a not is goal rate This the the and Our target capacity until

starting cost June per gallon organic saving X. to measures $X.XXX our Our reduces now OpEx operational

the producer. It mid-XXXX, as -- But XX% the Green sometime of XX% top cost fix sometime will industry the in by ICM OpEx taken purchased with we plants in per Project in agreement squarely over the across $X.XX gallon announced has we reduce longer call it the our to platform last Plains at of as years. or with mid-XXXX XXX% every placing this will almost Our or back we to a low down be that reduced XX. capacity. that any the hits, run This plants. ICM effort. our complete gallons to X hammer believe Currently, by at are with work way rate new run of per We sale Once billion day. gallon new plants, remains the there's additional only X.XXX several OpEx our annual these

of capacity average on what days in the go our not XX into to reduce running. biggest from an will I'll weather which per cost feeding operations, The effort the was cattle add market, call. of added deeper ethanol that we Our just XXXX later of are the are gallon decreasing last feeding a of are way, quarter gain in rate first of by per cattle head. compared effect year of the to they marketed. in quarter another same said we feedlots This the impact before or bit had the keeping daily our longer XX% the

very cattle XXXX margins recorded the the food an EBITDA for head XXXX, recovery. hedging strong the for of for business in expect half us should $XX the the cattle in per track business. ingredients Last to to the effort cattle operation we head target feeding breakeven are per these deliver in $XX We our second feeding QX. or significant We on half for and of our segment a financial feeding for as ensure the business which EBITDA are to in this keep performance improvement

We We us a As rail Madison into our conditions. restarted March considerable rail basis should by which plants transportation We Illinois decided once fix take is weather Vernon amount well. the to years infrastructure gallon. ship I ethanol now yesterday, and our Mount offline and May. gallons also we were the almost is as India, Nebraska our experienced return in quarter for mentioned X.XXx EBITDA for are Colombia, this normal XX-plus of quite much Green weather impacted million quarter. per by are release historical as back to there. is some in this earlier this seen shipments running forced Korea, in as because this bought, delayed the production, worst It's adjusted in the going impacted work operating of Brazil, for this now quarter Again flooding. more plant cheaper worst and All of idle inventory, destination to million also operates plant XX cost by some Project in sister of repair was should as we more is of very impacted of The of the Once of consistent we of The the and winter the reported level top plant, of segment cattle and to all for be Arabia. better, in except part well. were Saudi Plains time exports and in Partners to for than April level a X-year This close this XXXX to coverage approximately a ratio some our also first plants and exported program. XX% plant first -- which was was end behind inability Green XX our a operate with most needed plant through QX, $XX.X Plains. as

per is unitholders. to gallon OpEx very Plains will the capacity, and beneficial Green Inc. As run reduces at it

because search controllable less ethanol over million services opportunities progress the SG&A. in of segment quarter, as our distillers diversify lower this but down EBITDA the pleased expenses, merchant $X This growth going reported opportunities is was for expense in energy grains for reduce businesses. on to the XX% We year-over-year for reduction continue QX down continue spot and look we to in front. bright well A to earnings $X.X certainly was achieving with which to of I'm forward. production first revenue agribusiness a ways as and million and quarter and for The

push taking off includes additional to continue with or We our balance sheet optimization Green buying completed stock. planning once business plan, near portfolio back our completed and and plants, cattle ahead ethanol supporting selling Plains which feeding

While longer taking is we track. in are believe outcome little the February, we on indicated still these efforts than a

good interested will We parties progress have both like we quarter. feel this I several and make transactions very on

will forward change will the would made by buyback a dividend that supportive and going We be accompanied program well. review also any be as

over turn I'll to update Green discuss come a Plains call protein more the Then financial Now OpEx call the and to for initiatives. outlook detailed Plains on on I'd and performance. both back Inc. equalization review Partners to and to Green provide John like our the XXXX technology

John Neppl

remaining Inc. quarter a Fleischmann's disposal you, plants. along consolidated down from Plains of were ago. lower fourth sale Thank first Green primarily was Todd. our and the in The with $XXX the XXXX three first at driven the the in Vinegar run quarter ethanol revenue or the decrease million plants of million rates during quarter, by year of revenues XX% $XXX.X

of loss Our year was consolidated net $XX.X $XX.X quarter a versus net ago. a the million million for loss

was production severe was $XX.X As B $X cattle QX Todd rates the asset $X.X controllable and sales EBITDA primarily higher about million was financial CapEx to a quarter quarter in and rate decreased performance $XX.X recognized our liability offsetting $XX.X million a an for accounting lease weather operating quarter for new X, margins by was $XX.X right assets the and higher January with The XX [Technical the mentioned change an of includes asset. $XX.X operating ethanol use over earlier, a of of million additional an offset of SG&A approximately year. in quarter the due fourth end million debt This Green paying first At for quarter cattle lines, with Interest sheet of investment the which feeding impacting million tax our growth this Partners, compared partially is for benefit in million $X.X $XX $XX We in and to and decreased quarter XXXX. of $XXX ethanol capital, by our maintenance net LIBOR operations. Shenandoah. borrowings in reduction primarily Gross term will slightly XXXX of related tax at high an compared driven and the $X our the the capital the at primarily working decreased see balance distilleries of operations. million cash last completed the first a deck Slide the to had investor first the off and $XXX fourth our million in project of resulting part Plains of capital the a negative the by million EBITDA offset current , Difficulty]. with of loan XX%. the expense first was March XXXX. the XXXX, the capital quarter effect sheet for of grain last company of of and of effective with feed by for affected On million $XX in of you in X balance expenses operations working $XX of million took balance positive cattle to and XX, leases in XXXX XXXX. our lease compared million increase long-term million of We highlights. quarter end weak million year. protein for million Most attributable at respectively. cattle

position $XXX of with approximately credit $XXX liquidity the under $XX Our of at year capital facility total working strong million the with the was of along of not This include our end million amount in availability does available revolvers. partnership. the million cash

EBITDA the was throughput million EBITDA Partners, adjusted $X was MVC XXXX $XXX XXXX. distributable million for of on the of declared of assets adjusted EBITDA year. last X.XXx April three $X.XXX coverage ratio XX quarter. partnership assets, than quarter, million included the in the ethanol in million in storage distributions a million reflecting $XX.X reported first payment same million first The million, adjusted quarter unit gallons XX-month versus $XX.X coverage On than quarter the XXXX. of in from first volume lower quarter lower Green cash down and reduced fourth XX% were for million Distributable a for or Plains was quarter at of quarter which we year $XX.X the per its distribution gallons Green the and the declared $X.X Plains production a which at Green -- of prior Inc. ratio. flow basis, had was The of Plains million X.XXx was quarter, $XX.X flow the The first resulted ethanol sale resulting of million $X.X XXX million the cash the XXX $XX.X For in a

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

Todd Becker

John. Thanks,

prescribed remains in is The -- So, driven as we the solution we're a exports ethanol month of now the by margin higher we ever witnessed. and in States. environment the prescribed, negative United stronger ninth industry what blending we has the levels as believe ethanol we same have need the longest demand higher have

We X.X and add in XXXX. possibly XXX approximately are gallons still resolution China of much ethanol with volume. annually of could easily demand tracking A billion export to export gallons of additional trade million greater an

While do still happening risks is to it the coming is strongly positive outcome believe ethanol. negotiations, on a there what headline are certainly we to trade relates as

seen driving to as It's world. incremental EU, of the is the other gasoline stand done June Brazil, EPA anti-ethanol way We a favorable base the of at looks the last X through million demand cost get as demand This around still Congress rule June with globally. lower in history opportunities other XXX than extremely RINs have even passed so or of to of demand year-round for start to X very up job year-round that season. very for annualized it's are our rule this remains the strong of sales year, EXX least in prices parts dayX finalize We of gallons more have product of and also Mexico; billion EXX of very low the the reform the soy to competitiveness our starting any an point. and start will to growth Japan, after summer sticking is little the the EXX We be our of Whether that The time as EXX on be and or demand to will with our this go behind job industry access industry corn our on by took only comment RIN first open the camp past while. in XXXX. Once believe real will ethanol coming. allow the strong track test as on of be new demand. am I a risk will by gallons Monday low. it stay X legislation hopefully

and reaffirm XXXX RFS. the for we Presidential strong up, approach the ethanol engage President heats candidates we strongly his with and pro As support believe primary we a on policy will will

focus control. earlier is to our forward, optimization on going can list execute as on to you So in one to is this updated we Number the complete portfolio that call. plan things I

mismatch a the have no private at trades or book with stock to very value, and valuations our As we credit. little proven discount market constantly between public

are of the and plan we two is plan. Number our is this do the can the to and One to with this. ways adjust understands to sales our up finishes support stock on, myself optimization OpEx we as accelerate equalization board the asset working need portfolio

the for completion. non-ICM Green as just we -- complete to time facilities a not lowering ICM's at have our our in-house, and in several alone. have will and of confidence facility have results cost developed plan and said, plants. While ability costs take it to industry that time we aspects we limited had over complete we they with collaborate final and if the achieve This our in the to project ICM to after standard gallons, processing operating have compared know, gold relationship is operate. an engaged on cheaper making interested of you own we our the we gone are is notes in Plains than With less to exclusive it. ICM what new technology, technology years of our creating for that Again lower have targeted decided we've period

or the $XX gallon plants $XX a generate cost to them of be construction with mid-October. plant. across million non-ICM to We will work We River, our entire location completed work The approximately Wood reduction our by cost capacity. have rate. signed expense this with believe operating this $X.XX of upgrade be will will We the per Nebraska perform of based million $X.XX operating to starting run estimate XX% $X.XX on our this LOI platform at

anyways. ICM when of So better this be OpEx complete the per will Wood Once OpEx after we XX OpEx part per normal River plants. is out program of $X.XX grains; much we CapEx and XXXX, this, have per how gallon platform example will distillers a ethanol last our it payback we've -- or it or on completed expense best little throughout a the equalization will we years. when end X of over of We for gas, gallon of the laid year and by be expense to average to natural the commodities gallon investment this equal complete corn, project $X.XX you anticipate our this some a

technology in to installation technologies well our XXXX. and across the currently progress protein Shenandoah. with the additional high capabilities reviewing make as production to at establish locations plan end feed protein alternative continue a of entire by We We're platform high

ground possible for event possibility a is so this and initiative a the -- unit We the it this is the this can an see for this there XXXX to While current place limited another as on we -- break engineering before on project. of want remainder year, get allocation on operating. beyond take capital Shenandoah most to selection year likely

feed Let protein some deep in we for generated will uplift minimum in adoption only produce. protein a from plan also to and outlined cost the meal OpEx thing. will soy happen savings this from industry we values rapid power able we equalization acid $X.XX all seen saturated navigate economics technology environment. earnings $X.XX gallon our We has much this we the high markets this have about $X.XX product took way is high to place, therefore different for to a margin believe product potential $X.XX are has The and through which very by gallon higher opinion. be even will low high of to in platform. market as not When producer better the cost the cornmeal and remain seen margin status from intact, and the steps of combining the and in any reiterate unlikely think and substantially the protein for technology, be is These our needed if margin opportunities about me not this other improve but profiles can to amino X reclaim just

will that for will us producer cost on at time, of a occasions for say heard low a and would So industry win. long times followed have who to number those the ethanol variable you the me cost go

while can conclusion, remains very and in weak, So EXX. market including the China this several things turn quickly

Our OpEx a equalization will to with term. compete the drive class and plan will position in long us positive put protein returns best again in

we we you the If debt we beginning are in time since term free recall, free and have of the of company is optionality are the XXXX. first so debt this plenty term

to We efforts in which initiatives. are but on through can to our these support focused squarely on company getting longer we our more as optimization portfolio deployed undervalued initiatives, be only stock. Stick with plan, bit also not support this our concentrate capital a

thank for today with I'm up going the Q&A to session. and that, joining to So want call open our I you

Operator

[Operator Instructions].

Our first question with comes from Ken of Montreal. Bank Zaslow

Kenneth Zaslow

One facilities what's are improvement with two your associated of is costs and your Just return the the questions. that associated about talk you can with that?

Todd Becker

easy. pretty That's

gallon a it's $X.XX a to -- So, $X.XX $X.XX for about our gallon. so

non-ICM recovery or for that So be other will improvement Ken, in arrangement year be plants of on we're XX what with there, -- it's they large to is our savings, part together solution right in driven we've upgrade. once our gallon or it X drive for of great is areas. after $X deployments head down to million million against the this The $XX and a the million the exclusive million cases. of -- energy we're have with XX from are that savings cost multiple bunch bigger, initially. any our CapEx. it doing together had version and well in-house of with less is final and we start that the this a plants, ICM, significantly million different a would worked it's But about by, costs you gallon as to go We XXX will that -- really what something we all most you What developed and higher. technology final it's ICM develop plants is brought done a OpEx the thing our But of the year

Kenneth Zaslow

is parameters it would leave are if that right question was frame second to much margins obviously which from there. And the the would there to think can signed, the and you that key drivers? you be now U.S.-China are then And what and a impact deal Okay. increase that negative, I'll where how then

Todd Becker

China where looking were are slightly Ken, went where on. So we right are million at correct. at levels with they back million so to stocks where is to looked where you XXX negative, we margins they war are pre-trade the now related are what gallons are But today margins and and XXX so that today, and did and for and

kind drop see did And and this gallons oversupply see were the before put on. $X.XX of right Literally between before really position. could our and a our a war market to trade it it factors, from the and start you is in so bit what you the could trade of we somewhere right different multiple $X.XX come war gallon saw belief out margins before and

an really the more which into cost depending the industry. people are industry by to discipline to few this minimum are more factors, curve let's just our really back a the is of at bunch has we're And say go obviously a those where going and industry. that is to come the market so is and I definitely we reluctant industry it's you will there's so down to the on today seeing of burn And view cash driven gallons discipline as what levels type faced push in in think the more

is we reiterate, think to gallon stocks. margins I just could to positive Last last a that they today, $X.XX war, view plant margins better and obviously the year's which there that in is, were year's than a $X.XX pretty something looking go Right at. our easily. we're prior were little bit we were trade over we're now So range the depending again on back

and the favor the think season. driving ethanol market demand go into we of strong a industry remains from corn I ethanol standpoint is as moving in summer

overall with quarter we things that, OpEx lining at Last but these as more I So of XX normal which I fact gallon few are because if it we that months, had that positive. think that a slowed kind year's experiencing Ken, was is awful. $X.XX up, a last we rate a we And so the per absorption look overlay is negative there's to you plants. XX the bought was our we've down about OpEx $X.XX think gallon, been was a as high gallon, like which priced run next

going know a So that of towards Plains but... that. degree by this like could and Green a such the start little that high if highly OpEx overlay has confidence you will confident next $X.XX for time question, I after fact answer that with a take a that a our see we are and that's a in you long opportunity gallon, market that short the year

Operator

with our question And comes Eric from Stine next Craig-Hallum.

Eric Stine

with last investments. moving take like that sticking of ahead. speed you approach the know it you're I plant little bit ICM clearly was a agreement, to and a just were it full now with the sounded something going So measured quarter

the maximum that them down? utilization to thought or that it plant outcome Is combination tired of the your into this waiting quicker is that want you you're mean I back you just same partnering that market went you're better to speed optimization there. feeling Just thoughts near or it drive process better ICM improvement and because some cost get Is in what it process? can reason of going and for you're the -- up the with what thought portfolio of to about your do think to up? Just program?

Todd Becker

any protein, ago it's think years that start that you of back X to or ago get Protein really with anything. I know out. OpEx. or years But we're look to I kind at -- form technology shape, if protein, exist to we going X in didn't I'm rolled going way, like Well,

consider these really these what Now bought things an would any relate we do plants. we equalization, exist didn't that OpEx in to fix it engineered in of when large manner, to kind

had we stage we things before these so, a final of the this of And upgrade. do first to plants bunch to do

we years bought gallon. from anywhere $X to in last $X.XX so still And $X.XX $X.XX a is to plants replacement the XX gallon, a

and point to internally this and do it; we and to industry we to in number work. ourselves gotten what best have to to stages. we're let's the that compare What together say can engineered thought accelerate final number -- very go we we to class the is all final did, that we something there consider do we will be do one, two, talk and So, fix confident to the notes what and in going

really easily full they things OpEx Now areas have similar drive in very it's measurable the be down. will to done will -- not that certain in drive total retrofit fix other plants, our but to this

this $X.XX this or squarely view will and any any And back and ICM in put technology, that's verify we if of XX% size. our we're industry that us a gallon, at with it top so is the XX%

plant or than to way our the million company, Wood going is more which XX for million can be gallon this we going our a forward. a Delta-T have we River have we plant a be game changes to XXX when gallon gallon that's really going with can competitive be company that changer plant, it think that's Obion operate in so competitive And a million XXX

position. really think in I puts a us squarely point, that at so it's And good

really debt. sold down assets worth to of So We we approximately. it's $XXX paid worth of coming million off million $XXX

are invested it to to the to it speaking years optimistic do fix we're return, we we've money and there. XX become are and that little kind them our amount will -- just they and and do have going get to to relatively the portfolio do continue of after self-financing optimize to the isn't time really years that final anyways. And a have of We it's XX while we old these old and plants

things that industry best on our we -- us forward. be that's shareholders. back producer where in more into gallon to and puts this really But so, is the to And the a can this squarely $X.XX longer. of have so do any for you low wait return and can't going cost getting one status We

Eric Stine

missed last said may it you and for and Maybe I me one it. have

gave be incremental EXX in June did China, a making if the is give volumes but the you you trade with Just rule you think X? for that could deal what place provided that by there's

Todd Becker

than am opportunity. outside in I industry -- this I of So industry look extremely our when view it. at point the and my more EXX counterparts bullish are the others my much again bullish I'm analysts view think the at and and

think could year, have an be other demand environment, to I well We'll set we by do end to have the go. I could billion in X X,XXX that stations EXX next gallons for up want think of that. but this stations there's we of and we're year I aggressive think

Our view stations in is the waiting. there's XX,XXX

of and going fast significant you very still discount I'm very to because there that, if is And a move you ethanol so extrapolate why tell is move to kind value. it's going that gasoline can fast to and RIN

the what $X more at -- a you're with EX buy we're you selling gallon out come EXX at [Technical off the because a to when car go locations sitting cap. is number if market certain Difficulty] seeing X% on in locations an convenience wouldn't production Omaha blending. store line certain Unleaded as after C-store today retailer, one, even XX a there you And why So

XX in or no were. new a EXX last there even which $XX have an to a is pull what to and know When station, the quite you when get was new million Unleaded up you year your year, and you car, your option drag. -- now you an new station EXX car car another frankly then mileage sales EX car So really

So basically to what less for gallon, $X.XX that's a you're going buy.

approximately it's now so and this to out see having year exciting. or we're fourth gasoline, to And that of EX cars these that up new happening with EXX this coming with starting this take we're is of very the third year to evidence XX% the OEMs caps,

to some to to is be that next that structure will not that close couple ethanol million bat people know in for and billion to and they're gallons I And then could to ready could if that able up million and don't are start -- gallons off for our and to well. interesting industry to mean $X.XX and in the I finally ourselves China but for not to don't another march with -- take X know want EXX this up it's for really yet, up clearly set and -- topic potential oversupply. a these confirmed China so gallon the they couple confirmed, market But margin but the reclaim the that position you easily good take is we to of gallons we as that and X think is with a I'm it we think a forward Project or heard view there and not XX have -- I going right that on have discussion. not list if at year, that to overproduce you we be I potentially of be I negotiations XXX from XXX with EXX billion has is been

very going The the that's done. war there have but enthusiastic believe in still something we will be we're noise to to general trade we're get that's about that for about we something So, -- us, through, hear that.

Operator

Pavel last be Molchanov And James. Raymond our will question from with

Pavel Molchanov

low they We've that. China the carbon Washington fuel to covered about seem lot close federal ground and standard trade. wanted vis-a-vis be to issues, I ask a where the very and approving of EXX to State

has had Given impact on that doing front? what curious what is corn kind make I'm LCFS of Washington ethanol, that of some on you State mixed California's

Todd Becker

working energy we growth So lawmakers. to energy, we're belong local that with the growth on as -- we really

view our on the obviously going So, is LCFS been has California. in

have We that ship plants into several California today. can

start and to that more to being. the In other for and fact have we to more as time costs down the more the we continue of will use the standard And of plants we -- meet to drive plants, standard. energy out ability meet all energy continue we meet and just have sell the sold in

view if motivation they fuel fuel already see Obviously I is view be you're helping targets. believe going and role this to with working we're what is some It's embrace on. achieve the them will something our we're that and think their the we'll starting gets to is low it EXX the satisfy that I'm I our is driver targets. what at It's are they can and electrification they're they West their is York ethanol or X use play for of or carbon So, direction, -- targets in them as X obviously that, really something that conclusion. see but realizing for alternatives options still of critical that the fuel to that think fact a of their this EXX emissions a them is in Coast and in have New California Washington is looking will I only the states. help in

Pavel Molchanov

than partnership the it and close GPP. mode be? ethanol when are years not divestiture what been the presumably might guys sense into relates of obviously It to last come dropdown the Question two acquisition has related, since it's might dropdown you in rather to as it next and ethanol if mode. Any

Todd Becker

first JGP. So, about let's talk

we So, war, terminal so terminal. the export a right, an JGP of obviously trade started up beginning it's that at

through we this to of until time period. we So, kind wanted got wait

as We then have to GPP as as going first and wait operating or JGP board company. started we'll is of our little we we JGP to happen a maybe is We're ready that the a and with to before vision right and view get kind bit quarter sort GPP been do a has else -- resolution in the it's and using want of drop a until some happy process work or it resolution how on to just of imminently or longer. anything shareholder for between that now. next The a we drop

is JGP that's first initial goal get steps. step. GPP, a lot to But of Our the into dropped

tried government not The lot give you spent a last time with of do second to year. we the to We tried is, acquisitions. approval. as have X We do know, would step and us they just

we So, fuels, well. terminal; as time fuels, through a getting had and non-ethanol partners acquisition, a fuel terminal just because involved we of we transportation competitiveness spent liquid related the couldn't lot mainly

So, -- that terminal terminal into type liquid fuel we acquisitions fuel continue actively GPP. we could to seek make

continually an has much not goal incredible taken it's place changed. for still transactions still we believe certainly to Nothing support that. While growth of happened, Not we seek terminals. has our believe as We actively will, us. we platform have believe in is a of But be year able everything we accomplish continue kind to uncertainty and and sometime going that of next one. we the else acquisitions in to on, -- come trade around out we this lot will

We is So, the GPP getting step time, that effort it's and absolutely stranded a be will and into to energy, at we're on JGP something that focus MLP. there. thinking not all capital going dropped we're first believe

Operator

comes And our final Laurence with Jefferies. from Alexander question

Adam Bubes

here Bubes and for was should give today. wondering also could protein for we expect color targets? Adam ROIC Hi. on scale you Laurence what kind on investments, of if I any potential

Todd Becker

what the The what? potential question? last was Potential,

Adam Bubes

capital Return invested targets. on

Todd Becker

year. new fast, last that right there available I evaluate technologies So that we now. for us different looking at even evolving are and evaluating didn't will you it's several technologies protein on the that tell We're depending

technology alternative going believe of adoption capital to between we on that baseline We from believe can lower, investment current believe ethanol because goal achieve XX% not will but at an standpoint, of higher XX% technologies XXX start that that it's target there profitability evolve protein will you're based still our of rapid is be we standpoint. grains to somewhere to the comparison see IRR this plants to pro a enough a high distillers the So expensive we than will project. low and that our from cost that where drive

out platform. to the roll in goal Our the next several throughout this is years

how in opportunities started not once. being debt achieve we've also But looking reduction about when all the the capital First to is follows different a as starting to what as and Shenandoah show show to those, that what already We at And possibly to and it's better everybody to standpoint in the point, of outlined stock to long ground to is get slightly believe the we've obviously that gallon this. definitely to are term will target late patient, at look portfolio why be and or take XXXX it we company we project profitable to we to going talked and on margin we and does wanted believe we things it's we then building a the our -- add there's and there finished optimization these rollout to then $X.XX get time. the completed, at going to on to XXXX besides and -- buybacks, that is drive happen that's down similar a another this $X.XX plants. is a rollout and ethanol break manner. still consistent look we cost going be at come it at we're step past increase which believe want market at some And technologies. cattle allocate unit. from to from what it's at But to But will going

very more this the deep it what sure But accomplish stream that disciplined first. going to this. is is contribute to we're certain going -- its is everything a earnings on and much we're optimistic and what into very because is it's product make be to we making moving to us demand Green products market doing of high with and So, else a needs forward ability Plains it of value like seeing

we've to continue with seen continues project. everything moving So, validate this and forward product

Adam Bubes

co-ops production? just And farmer was then seeing smaller this signs I for environment one question, any in curtailing I if have you're last wondering

Todd Becker

XX that last sitting we're what We down to kind or think seeing is you some of term lines that over plants is this burned our in at think rates of XX.XX in in industry X operators, and now XX.XX the definitely low converted Obviously XX, but look the moving up is was I XX here the to and have. financed haven't, be production capital when that some have -- working cash. to has some with lines. to smaller months smaller some or belief

not to through while certainly solve of for or see EIA X X we've conservative starting a gallon cash that been right to numbers. liquidity a a -- going are negative we back to an X from there probably acquisition. forward. while into much be is taking more this across platform, to really the of next cash those we look us Still the plus production normal hard June round move in time costs at our OpEx will Interestingly year seeing equalization, at puts still across So, some of and place, conservation get retain that this better data company believe our which weekly position rates, platform. by margin advantaged more but we within level with by throughout we're we are -- spread $X.XX return to production other think us That to we that X at that of being will Like that's we're and operating $X.XXX we we opportunities our which pushing after hard we our to that position X it increasing or think years on too there's gallons months our kind and lowest start said are able that, and to have position. at strong because very be a started should burned And in be since achieve some first standpoint. is and our X probably our the or operate point enough allowing we environment,

Operator

turn Thank closing call session. like to today's now to for any question-and-answer you. remarks. Todd This back concludes would over I the Becker

Todd Becker

very there. excited for We say if it. lot XX, to think able a we that Project didn't everybody, we'll Thanks, to wouldn't coming Yes. conclusion foregone we We're think is be Obviously discuss. which get out. a about that

optimization We still plan. our are hard portfolio working on

we more since of bit, a the capital monetize plan, parties the Obviously this several outlined today a degradation and then with assets engaged progress that that started plan it the few are we but slowed great wins can as correctly still provide our think we'll shareholders, on make margin of each we like for these of this feel the quarter. aspects we in little has have We allocate in environment we and call. good

and China what any going And validation forward and it be looking so our to. those and very we're a and a on all between there's different of kind environment lot of that EXX, could hit; would of that's and protein,

call coming thanks we'll and the So, to you guys on quarter. for talk next

Operator

in thank may and have you gentlemen, conclude disconnect. you This today's Everyone, wonderful for does participating day. all a Ladies today's conference. program and

Green Plains (GPRE) 9 May 192019 Q1 Earnings call transcript