GPRE - Earnings call transcript Q4 2021

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Operator

Good morning and welcome to the Green Plains, Inc. and Green Plains Partners’ Fourth Quarter and Full-Year Earnings Conference Call.

Following the company's prepared remarks, instructions will be provided for Q&A. At this time, all participants are in listen only mode. I'll now to turn the call over to your host, Phil Boggs, Executive Vice President, Investor Relations. Mr. ahead. go please Boggs,

Phil Boggs

Chief and Investor product marketing welcome Andrew Quarter on Plains, earnings and call Events Presentations President Page a under There and find can both on everyone, Simpkins, EVP, and Plains link available, call. and Partners, today's the and Becker, presentation Todd you Fourth Full Mulan, corporate are it Officer, to Officer, morning Patrich Inc. Chief Green Green Participants Executive innovation. is Good Financial Year slide on websites. the and XXXX

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

to would turn over I Becker. call like Now, Todd to the

Todd Becker

today. everyone for morning, and Thanks, Phil..Good joining our thanks call

momentum. Our transformation continues to gain

starting haven't another year late goals We we commitment release planning the market carbon and been and forward ESG XXXX always concrete inaugural sustainability reducing goals. is aren't to necessary have of idle XXXX we're always XXXX. telling execute significant great and path released ongoing in last our neutral to our continue That made XXXX footprint have to towards to and them we be decade a and year story. to you. the are initiatives. excited to progress achieving and these and shaping realize by end by but are The transformative on changed achieve These transformation true a has been making our GHG XX% and we a key report review to achieve have milestones We about We is to strides and QX. our we're up we more. be

had the For as execute margins crush indicated order our these and We on risk to credit what transformation consolidated we as and hedged equivalents, in our we year million the this cash crush. had well $XXX strategically crush quarter, achieved from gallon the in earlier, our We $X.XX approximately early. in $X.XX liquidity full had facilities. for and per we consolidated capital with over the Overall in to raised fourth available additional line year. daily did in average ended available the in was reduce the that with protect XXXX, are as results

tightness, our hedging As we half of would our national our and we gallons. supply would in had limiting we Plains. for for was by labor first from many chain chip risk managed impacted an this. locations perspectives the the will we extreme were long-term been financial tied year. only these unique stability If of delayed in quarter hedged upgrades utilization unprecedented, been which up significantly fourth of see With have that shortages by would the half management. the the Operationally, have maybe all we weaknesses and not substantially year, year first although completion time over-achieved in that at making the constraints avoided different, higher, have opportunistic Vernon said, to not and anything Green Mount QX Madison

full and this quarter. late the Mount to Vernon of operational we week, the expect started dryers this system Just new side be one

well. limited overall grain York our which experienced damage during bin Additionally, location at as the quarter, location that utilization

no given that utilization as expansion resulted the from thankful lost a result three these of market. combined opportunity quarter the are locations one and in this the we the of challenges was hurt the to accident, While in spot crush

We executed. at it back our quarters challenges in shipments Green also X.XL the included in due that XXXX results first over items the order Plains as renewable million, our ethanol Combined, is service couple Plains carriers, is well. On higher with those running challenges reduced through deliveries to by delivered in fourth out levels continue the and remain gallons quarter end stocks impact of elevated, that, items of execute ethanol weren't discount about quarter to the in soft and export York these will on as took The to the RIN fast. incident more well Green believe discretionary logistics X.X. some and mark-to-market got our from on come the quarter. from business, top we million saw Margins the $X With rail on eliminations of the the fact corn-oil This the as as that industry be some significant blunder the focused in negative production a on to for blend and U.S. built much and we of logistical ethanol. as slowed $X and in this positions along out increased down to stocks XXXX fully current trucking started over values week.

this the winter this clear to bottom GAAP a quickly. excess as week temperatures, margin demand out mild with call with rebounding can demand structure get to we driving hesitant a While

continue volume to parties a looks like of sent for by per lows as the in a ethanol of the that industry a argue million of price gallons take mechanism pricing more to In which the addition, barrels it we better very production new few advantage for impacted Chicago are markets way to to flawed continue day million window. a sales on little

we economics move put transportation to strong through could begin as we Finally, demand pandemic the and us, as see year. energy global behind believe we the

as prices vegetable demand oil been to the robust and plants higher. run importantly, to though, market ethanol More move needs has fuel continue

for will discuss demand MSE that products. strong seeing impact second we our to our started what are our the ingredients, I many after market. increased redundancy our particularly positive be and and a up strategy, later we high-protein in to size the in location potential shortage to call the of seems for to demonstrate begin addition, In

scheduled our trial new target be We space. the to about River are at a the can XX% and excited protein to in to that Wood or begin produce are aquaculture used week next the we two. value-added ingredient potential

our aquaculture our who us believe program. We product, excited to and of get transformative the are we are with for working can be and new samples customers this

the soon to and unit. on the plans. Central distribution spring above, and long-term time able operating know to to And executing and in in at the XXs our of XXs, we Plains was as in opportunity. Partners We beyond fourth is have at more startup O'Brien moving for thought, the and ground Mount break the fully long Green goal lead ground start-up levels Quarter are a and track on $X.XX mid-XXXX per patent this plan quarter, Vernon, broke that this our as ground city. to equipment is are place MSCI on increase we'll of O'Brien shortly at protein the and on protein in system We

flows. to for an exciting time and minimum of ongoing on The I We sugar, XXXX will is protein, oil, beyond, our the cash a stable provide on are strong Second Quarter volume partnership resulting call -- pleased row. under for in and and undergirded on update a spend to back increase all commitments partnership distribution our a come in is the -- carbon. verticals, in initiatives the long-term committed and

review to financial Now over to Green and performance. I Inc. Plains -- will turn call Patrick Green it both over Plains the Partners

Patrich Simpkins

Thank period million a million, higher you, the fourth driven year for the by prices same run morning. good revenues Todd, consolidated rates. ago Green with and of than mainly higher quarter $XXX.X and were Plains $XX.X

ethanol and stronger diluted $XX crush an a Our fourth final XXXX. and plant which largely quarter, Madison, per the run during Quarter, year-over-year a favorably the we for margins improved to a XXXX. the reported in Fourth concluding us realized during margins, for million Adjusted energy startup Quarter loss of fourth York run period, anticipate loss reported favorable year. higher same quarter natural in prior-year XX% due the the with quarter. a the Ag Vernon for to offset quarter, by in share rate from prior million, utilization in year-over-year, a We we with the and items compares for comparing putting was in favorably fourth to as the Mount $X.XX through due prior-year move contributions rate or gas XX% optimization utilization $X.X in largely rate million $XX.X the to decline at rates in the period compared million net position quarter $X.X

million included charge for adjustment $X.X loss non-tax cash -- non net Our the of assets. related to quarter charge under on a tax evaluation X deferred tax of

a we and pricing could realized and strong protein gallon the fundamentals, of For quarter $X.XX full in a ethanol margin gallon sales. year, the margin $X.XX corn-oil crush period as for per the consolidated per result crush

partially related a 'XX capitalized change was expenses. million quarter, compensation fourth by effect convertible our and the compared quarter, million of was the treatment our the by to in in for associated to debt driven $X.X Fluid to higher early extinguishment combination all expense of in million 'XX XXXX QX Quip reported interest driven prior-year offset accrued $XX.X to converts addition quarter, the XXXX, a the of in converts of favorable adjustment offset 'XX SG&A costs For an million our during our expense with SG&A $XX.X segments $XX.X from of costs debt Interest by interest. of issuance by the --XXXX, the of in mainly

quarter levels, cumulative reported which $XX which XXXX the represents tax interest, was before for for expense. in based lower year. on Income $X.X interest tax expected million per For million, a should average expense expense interest approximately capitalized cash the will result adjustment quarter income debt

remains a X million On during therefore income. growth support future a reflecting the was before, the net Slide earnings of to loss the discussed any highlights. NOLs net accumulated or a Plains million As of result year, consistent as campaign objectives. to result demonstrate $XXX balance we the prior in and of until $XXX.X our reserve summary a ended cannot the we've we in of deck is of and our benefits credits against the for capital period We company's have sheet in XXXX use capital successful tax working position Green compared interim. We cash

million million loan. end restricted delayed primarily at $XXX.X term Our draw $XXX.X liquidity capital in marketable with quarter of equivalents and with approximately position under and available cash, revolvers cash securities, included along the working the our cash

and million protein million capex regulatory capital $XX.X million approximately including allocated projects, and $XX.X For MSC $XXX.X towards capital the safety quarter, $XX.X maintenance of -- around towards towards million. year growth and profit total sustaining the with we capex, ending to initiatives

was capital perform initiatives. key according to of we period million the as will total balance an including spend important transformation months As with completed a year of $XX.X at for $XX.X the $XXX partnership EBITDA for anticipated of adjusted the from is to projects XX ago the I parents million range be report first to the This EBITDA approximately to initiatives. with and million plan realized quarter, pleased The for million a look the should XXXX achieving Quarter. in that year, XXXX, to plants. maintenance of partnership forward toward the capital XXXX. capex company $XX.X investment s million, over $XX allocated over result $X.XX remains plan. in we million sale of the rolling a and be the another and same debt a with in coverage continues growth unit-holders distribution of down our to while protein as levels $XXX of Refinancing maintaining partnerships unit, capital from quarter MVC the the X.XX capital enabled enhance to be in for combined raised performance earlier the to ratio by Herford by past increasing other quarterly MVC for the significant supported returns year per continued to of am

distributable partnership, to Quarter Quarter million compared flow For million XXXX. to $XX.X the same cash of was the for $XX the

distributions the payments required EBITDA coverage adjusted in Over resulting was declared in adjustment X.XX cash principal $XX.X year. times flow for were and last excluding million, months, any million. $XX.X ratio, Distributable amortized the was XX the past million $XX.X

turn the like to over would to I Todd. call Now, back

Todd Becker

Patrick. Thanks,

you walk our on And of our strategy through So to execution strategic our continues. like theme pillars. on each update an I'd of

on value-added and initiatives. First, ingredients our ultra-high-protein

million partnership. We We in XXXX, our XXX,XXX gallons on and continue over converted, planning turnkey tons online mode, and locations bringing XXXX. plan construction during have we're producing forward XXX annualized our to early including XXXX early into over

as to growing PET customers in and by multiyear we We all MOU demand continued in are last the represented have interest quarter additional announced space seeing areas. customer strong adding see

products substantive with growing in aquaculture, alternatives as late-stage soy, to are ingredients use partners as to are plant-based meal discussions as our of We products and the demand using our well production in ultra-high-protein globally. for fish

We protein we And expect forthcoming trial and this year. be good XX% if One successful, will have of during the announcements we starting QX into aquaculture potential is month. key to QX believe we are visibility demand. this

in higher We high market of is short protein addressable products X% rations. find our have our much especially protein into degree concentrations. relevant The for will remains to future. is thesis at ultra-high-protein inclusion The intact rate now a we world just feed path confidence to and and

our new decades proteins and structural is needed. pets, swine, farm thousand in Well over will million we in real below of rates the tons. and one scale completed, make based, also at But plant-based for market when ingredient dairy, XX and our approximately be novel addressable -- XXX feed And what's largest novel production our many poultry. ingredient a Our tons. shift fish, what to our

XX% and We more start in We to higher will product just more be were world that of XX any last matter. trade continue crush also its a of protein things is expanded will and The beneficial needed, continue prove move price protein the years supply for again protein that production markets pressuring ultimate. for demand be will successful alleviating believe of trajectory evidenced recent to to flows change more or to globally. accelerate continually ultra-high-protein fears soya be will protein and all believe

strategy, our to values and corn-oil vegetable demand corn-oil. carbon we and renewable score for strong renewable intensity low high continue for oils our see Regarding values overall,

the and in return industry the of diesel to pause now the brief on double capacity. fourth to expected is year a pricing and of towards took end we pricing demand expect XXXX quarter, acceleration as seeing industry, are While the robust values this again renewable its

improved is component pound the corn valuable on of MSC for teams have River. focused yields, our to addition And maximizing the Our with kernel. the and most our of yields pound Wood Shenandoah are which corn

ongoing thoughts heading In everything once the that increase more developing. anticipate are per controlling be production projects and MSC the pounds certain that to part $XXX in structural at of through but is this this annualized in only on a exit share we have has IP end substantive MSC business also million believe as will advantage the standalone only increased systems, how our Quip yields process will of for continue this as We our discussions of the value I after Fluid not And to we on call. returns around of $XXX patient rate of year owning over by the million year expanding in factoring towards technologies, completion being our completed. to corn-oil, year protein, shareholders. partner the to is feedstock

most the is sugar clean on One front. exciting updates of our

carbon Quip process owned a call produce This than As do dextrose a value more intensity, can Why study invented different, exponentially least patented that and our wet clean in a produced disruptive XX% cleaner that we dextrose lower produce after clean of completely opinion. dextrose is energy has it indicated using in assets Fluid sugar? at milling from or intensive a a study we completely lot a Because increase process. our in sugar a mill that unique is technology the operation. will the dry reminder,

this to clean commercial sugar. up Center We have York volumes produce and Innovation at been getting busy scale of at ready York

ready customers. progress a We scale the process. believe unique off-take good have to study, operations detailed unit on technology in are discussions clean large and We sugar samples more any and to system. don't on more making sent commercial begin FELX potential in we engineering we clean agreements We co-location as sugar have and currently are other additional completed substantive see the risks other

one or most bio-refineries. half our a a that is XXX grind conditions. of -- while ground break of on engineering sugar dedicating clean rather in allow corn annually. portion million to clean to will done scale which to being system market of of leaving facility This skill full over at system with of start, a depending A sugar system, dextrose close the a at Our commercial conversion produce the the up ethanol a involve continue plan bushel scale likely flexibility will equivalent gallons produce to to on XXXX day per million XX than also ethanol second XX,XXX should pounds of the

our low is other cost products believe patented our technology production to also out of We competitive there using today. carbon

who the that Obio is in upon of product? our is in-demand economy is this feed interest us. type So the product We for that stock believe

enzymes, customers is that are synthetic-biology results the and fermenter, green been from chemicals We talking all with positive. to anything in to to about to being bio-plastics have a made just

focused of monetize Finally, its we which kernel, the piece remain last on the than corn sugar, best clean on this it on own. carbon, does other

Our and the remain scores goes three Eight dramatically. our project, the team to locations COX just potential Southeastern direct committed some at of fermentation their from reviewing solutions locations, opportunities our carbon lowering CI other plants, these is capture to beyond injection.

the fund we has to drilling do this. a owner. are to assess shipper We -- estimates compression standing on the remains and winning U.S. early expansion This pass. progress farmers use to an Plains. better their and space make wealth aviation This excited the items away and as make And new discussions are some it of formula to sell U.S. crops. to agriculture provide engineering, project to in pour acquisitions. way a ultimately of permissions, permitting clean focuses viable sequestration. to to legislation processes, will first Green also remain tailwinds a equipment the on the and their on both optimistic be and tax test for to The the of back tax survey right depend to starting to have and stratigraphic ethanol execute could to pipeline cost credits fuel the project track the credit designs, continues agreements, the for in will help continued the up build the place site on that and of longevity to remain sustainable that from remain Summit assess and capital who Bill health our energy pipeline, capture industry portions XXQ Summit that We former carbon the to to

a we as partner have Green review We are jet looking nascent come term. that closely at ATJ, help believe and long undertaken development technologies for More an fuels, and very still a aviation this, but early on plenty commercialize opportunities to monitoring This the Plains others technologies for this be of for days opportunity. to this for and on to technological believe industry to sustainable we various over could time is full competing available alcohol are the produce them important well. the there's

the alone, Quip portfolio XXXX take against that an believe are late patents, let's for -- five We received Fluid significant opportunity our the one in today. there value defend and in well, in is In opportunities Finally, will create Brazil. Canada, Plains This in ownership some let's were may partners we in at we our for opportunity as our in additional going believe and leading in take the should XXXX. to investment in world U.S., go technology XXXX as of agricultural IP a with Green bolsters the look the we shareholders. which active all be several on. infringement notices seven IP, an one issued We

anymore. just not accompanying someone technology by We are else's at

opportunities. technology in capitalize the to and monetize accrue to to -- The corn a Our products aim accrue starting continues from my value we currently our real on opinion. IP is to opportunities those using expand

shape that the value today Plains to this platform, XXXX we Green fuel look in our volatility So see as we our take and transformation and the for start than beyond. in for mean XXXX, getting all what through of future? the other and ready does can general in

pound Alcohol million on we a $XX estimated guidance contribution during last top is non-ethanol Ultra same. energy itself between With the and contribute at XXXX, $XX comfortable in less of as Our $X.XX and million high-protein XXXX, XXXX be will for course, $XXX still that of over from margin of a again, corn-oil remains on rest Specialty per SG&A. Ag corporate $XXX touching platform quarter the to pricing million corn-oil feel $X.XX the pound, million EBITDA to contribute to once additive well of could average. that, and from a

will these and levels anything transformed, to As we also ethanol fuel are now away recovery additive from some need current not economics from still numbers. take and transforming to be

are can technology matter. the sustainable We an And scale at own dry-mill margins significantly in can economics. clean than growing we with traditional produce of are beginning ingredients and higher to that stages produce disruptive. base sugar lastly, This confidence we de that patent - carbonization in truly be

As all now for joining our a expect call we session Thanks and Q&A can the to our of responsible today stakeholders us in this start calling, do manner.

Operator

Craig [Operator the question comes Instructions] Our Capital. of Irwin from ROTH line first from

begin. may You

Craig Irwin

morning questions. thanks my taking for Good and

Green their for ethanol. mind So I right in guess owns Plains nobody

previously., take customers. pricing What do of know say as And be is for? hedging on high to didn't on the different reasonable How 'XX. be a that do delta let I operating hear of question number shape? exciting going I'll your congratulations Todd, to we I actively large attention about XX% XXX,XXX scenario? you to see quarter, does start you with we working I'm progress. pro from into comments tons any this the in getting pay the in the is to what that the When looking are you this It's key should there? trials. a get visibility analysts that's So the going morning produced would investors

Todd Becker

Craig. Thanks,

We that about are evaluating has is just traded remember, pet for food prices continued soybean process meal markets to a price, in high-protein high-protein meal products. $XXX today. And in at Today, is -- to our every a a gallon a premium traditional ton equivalent. premium are that soybean $X.XX over about $XXX $XXX of We DDGs. already process at

So type another if comparing $XXX every alone, that uplift on see soybean it that from you're high-protein that, corn-oil starting don't of of above even you're protein obviously $X.XX gallon, baseline, in not And has just including to premium to those include just we meal. the original numbers. corn-oil

when XX% against product yeast. successful if I breakdown other like there trials. what first we're think just our and the if on can start that, think priced we're when to of at see things with kind it's goal we protein that, of wanted protein are you -- XX products look on perspective, So we contracts and biological we really take get didn't that, from partners our market will get and we believe higher to our we at really before yeast first you to and of soy $XXX to And XX stop about in primed protein pro than and XX% stand $XXX And and wait, is really all commercial and On is and top want extensively to XX% ton. competing a see -- at achieve the upcoming up extend concentrations is a higher successes XX% volumes to today, XX of concentrations. that concentrates our protein stop the a and our to

the yeast price of product protein in comparable a of price in today, If our you the XX% be and XX% the should the take worth $XXX market ton. the

more taking products a we lot into And America able to make with up We're that with products. know start from protein being the the to on Europe time we as days XX the Mediterranean so to these is protein we'll focused those to to and think next Africa, Asia get working differentiation on on South our the success and North starts them our -- the product in a these higher verge of to that of to there we're customers believe levels. spending XX differentiation XX and focus trials. on and The the it lot from of not XX really And and key to market.

a So come point up start built a we will protein to we're the the the up them we sites a with as $X.XX say I better And to $X.XX at premium going new which systems and will based what the that $XXX determine much with. except think these gallon look later to be able going distiller’s $XXX we market look that to is margin, we're to year start to on over what give on in based grains.

exciting that I it in for will areas more We discussions in are deep today put able aquaculture. in to that our high and all customers, achieve our believe as we're of and be with really shareholders. -- And of discussions place food our of and that pet all substandard several to species in something

Craig Irwin

for you that. Thank

second relationship. Novozymes a about question, ask I as So to the wanted

for the would last being couple move into be subject maybe us describe groups. on better in made you the for in of tailored high-protein with your You trials and potentially what adopted that nutritional we did needs profile the potential of the gently that's touch you technology But response maybe different the do better potential bio-availability, engineered Can food years? When in of this platform? products your can been things now. customer the progress upside see just see scenario to as that

Todd Becker

partnership Novozymes of our running locations, order Yeah. spec so But we we And we be That's our be for others in partners up one and Novozymes will have to really beyond start be make discussion have can just at them. product to protein we and this we trial, with concentrations. multiple redundancy our to continue wanted to and at the always new and sold. happens a constant with customers that

on fact next of our value the higher than value is And if our the value, in step so, that protein. today significantly the yeast. just contains you the XX% to market look at And the really focus is product plain of yeast

yeast XX% going are are we to express acid work that together amino palatability it's we nutritional to target characteristics. that, is or able to so, do to or starting And -- characteristics that whether to

have of you early we've with product change go really That's the partners we're done those have lot opportunities you are about yeast available. in work some a we lot a results this long yeast opportunities. But to think from where We work of go. ongoing value results see but for make our way capacity a of We're after to that and a can. when make starting step those you we bio-engineering But fermentation and there. the about have we already to and positive that

making and from is and also protein where from for what around going with that's the And are those we two value about formula, come yeast put would thing together come we're real that's do, the partnership. you you this all a be making we with to going and that's going -- XX% value so never believe our really and together greater. opportunity to to think Novozymes protein. it bioengineering was but that's we going combine our where is But company. to into come really value the others XX% certainly partnership our doing It the a did, we nice product. of when is And and that If our

Craig Irwin

Thanks questions. for taking again my

Todd Becker

you. Thank

Operator

Suisse. Our of from from the line Credit next Manav Gupta question comes

You may begin.

Manav Gupta

correctly and I corn-oil -bean renewable soya diesel the think intensity the had carbon so the markets and about pricing gap year in close. or will a will guys oil, start you eventually ago between that predicted

to oil. that above -bean are has Now started what soya move seeing we is corn-oil

decline, you it over question of capacity you have billion ahead. a at is, soybean expect pre form my ahead product that question. has comes So as, gallons discount trade do that new going first obviously of the most here for a on, so premium of That's -treat X already some going

Todd Becker

To system; to we're liberating technology top in corn seen more we why is per demand the shift to to our We've stand is pounds some of now through a if process regarding all, ability a at corn, liberating is oil achieving soybean diesel it's that and even look the the -- both we structural markets, and hard premium then more going corn-oil, as gives but oil it, overall, we're it separate the and But that both produce, you there pounds shortage soybean the and and comes high still corn-oil. renewable XX a bit. X.X that process to XXXX, over which for fats, high. work get we through left -- alone that's already that of have capacity -- a of -- making what's if really There online, Remember, what ourselves, it's own bids the as to of and -- that will for used year the confidence. low for some more distiller’s some stocks, improvements, definitely intense benefit of there we're this of late structural on whether of the it. really to in double oil. as X.X we've waste of us it's where believe accrue into of little kernel. use or really carbon expect relative really there coming distiller’s and will has for accrue relaxing MSC in oil, -- X/X as there another which and and structural shortage -- that's in, rest your of $X.XX oil and focused improvement we're X.X, answer of get extracting future what of we strength there's is that, away X.X and pricing, fats, really that really seen question waste cooking being on in a terms the And and hard oil protein the we more more both take a distillers as benefits even to oils, participate meal And pound animal a seen we

MSC really value the you intensity look more you year starts alone on own $XXX take oil reduce for Green opportunity renewable for at Green Plains our front -- Plains what diesel. the just to take baseline, that $XXX of look million relative to assets now, continually a contribution our $XXX as its If alone, scores to and valuable we by producing system, make the that to fuel of that carbon are is of which at to just right a a margin inclusive comes our not out million

that excited I'd well. obviously. excited we're making So soybean about be if very as But just about as opportunity the oil, opportunity I was

Manav Gupta

XXXX, in shouldn't I half, I'll chain that repeat. in follow-up half on I can supply it challenges Perfectly easing? XQ here a in Are we We doesn't XQ or mirror. clear. And is a look it. just second focus my little you to So it's understand Thank is, kind understand leave that. first whether the rearview whatever. faced. just you, want and of more get little bit confidence those what

Todd Becker

to one and useful and rates for we and supply think at DCS, full gallon Once would've the daily was parts, of thing two in as which that, getting are upgraded, from now looked should look older of at $X.X to in inclusive been may the that's Mount in in spot later up up disruptions it came, single same a full there came making this other assets back which of system It as because you're Vernon, because more these three drier time to going why actually average we need of finally great to been chip these that progress ramping we one day, from with year, the year, MSC to and our short negative that modernized. half or were up our down startup the cause have assets And for four of of Madison. Southeastern we and the Same at happened the be market in we on outlived they start waiting would are protein the river more within and U.S. at weeks, years’ we Indiana. to When contribution a location went we year, assets the up replacing the Great production facilities are The life. next for standpoint, ethanol the Madison is of it, if not our back every run last modernization last being our should waiting which -- and of a dryer there. see built one in spent Mount from fuel being half demand over programs. started for Vernon, were the running the going capital obviously has be that great really crush Vernon, I our location and three we that's its side thing standpoint. to of in couple market, we're week, Mount control

be should we on-site accomplish this. those that be So Labor to us. behind challenge. Everything's continues need to a

cost an costs things across seen and have day chemicals like that's We industry as production nature of opportunity such urea. ENT, and the and labor equal escalation But increase.

I And in importantly, run so specialty where now to XXXX And XXXX. were our the a York our we in we nobody collapsed, business, shape better was significantly more think we're in in facility overall, bin bins were than alcohol have injured. old,

be when running capacity, back already stood bring impacted well. bin about one we negatively and should but the XX% have being quarter as that facility We the that is replacement and full that we're other mid-March at one which fourth up online, finished

just protein, about opportunities would we're carbon. we So great be overall, we sugar, of -- in a our well. another all ethanol as look and oil, market And forward and very excited outcome when steady

Manav Gupta

you. Thank

Operator

Goldman And line our from question Sachs. of comes next the Adam Samuelson from

may You begin.

Adam Samuelson

everyone. Good morning, you. Thank Yes.

Todd Becker

Good morning.

Patrich Simpkins

morning. Good

Adam Samuelson

what of the we've have guess and ethanol trying market actually we deviated that got even the make this obviously, increments. and just pieces more just on what bad. crush how weakened we considerably, gave first veteran spot on crush oil the ethanol in all actual to very for in rolled pieces there's clarify sure specifically, some Obviously, should you're ethanol year, for first maybe about those will trying the how just or the I'm the high I into 'XX prices, some I pro means past just trying corn into about way from And the meaningfully over different. the think general your the calibrated understand in that hedging to as make to translates just reported based obviously, crush and -- and because terms be to producing you reported asset ethanol of high get talking you conditions an quarter I'm in the a crush of margins I corn year good that So from pieces moving lot crush. all quarter -- wanted on framing sure because just you're oil -- ethanol year. And of

Todd Becker

to $XXX our if take year be corn-oil from up and so the ethanol, make of thinking, ethanol that's I'll in I some kind think pure up now with we year, itself, you No, at well. have crush start of hopefully clear -- started said, for that million. right you at we can contribute look here. over later And But as -- now, is how standpoint, as we it last ethanol a we negative, zero-base the year look a by we

base what XX And a or a to, achieve base our component XX value protein the start going come or/and a we or you then -- as we really of give contribute it's going on that margin, What achieve businesses even a every have a obviously extremely other when that's -- positive ethanol down daily the how process. standalone on we $XX really ethanol corn-oil you well. show still You look XX. quarter worked protein, minus was What end our to And What if the to zero as at you -- What We'll And plus between show or are we're think the ethanol $XX plus was we'll return? I and environment should every crush? minus negative is going in to ethanol our is was our return? million and through clarity should positive above, million we're I really first accelerate better at results. achievement. the crush a our mean, component to of XX results.

And so what ourselves for. really we're up setting that's

But remain are it we're you We things negative When during this base already together, bottom the at base as at probably well. back. look we weak can the incentive top feels significant the is get supply to and market that that we States bid quarter into a looks positive and moving to I will to and to return during it the into market come a terms hit margin and margin you doesn't very add the on ultimately some from the will based the that, all ethanol And like chain everything up there look seeing all like see of point the today long of it it you take issues second quarter, of a is add standpoint quarter starting the blend these when XXXX. are little on market for seeing will that dislocations in bit know, the around around view shape the while but crush started ethanol in return later then And we into ethanol, fact out back our at first starting negative. as quarter. you the meantime, think United numbers

Adam Samuelson

on then the on That's a engineering first the Okay. clean a start you helpful sugar as very if system. I And follow-up can have framing. work

framed to framed the the a last would XX, or effective clear, capital gallon the how with dollar about any thought over it it do it I you previously? associated you've than match it fully gallons, per was the in look there guess is -- you know until a as talking be is way like you about you is how XXXX and there unit how this But different And won't to months so? been still capacity, engineering XX complete. it capex? past about economics they the that Just in is on

Todd Becker

unit said it, but today. that start about Yes. -- what think out with higher. we've we could -- per plant, would we That's why basically we're seeing everything where is smaller when be what think obviously We capex a we've

will the it, clean about gallons million day. best basically a at or produce of of in that. bushels production, production, -- end, dextrose could which pounds X% low the equivalent XXX think or of looking we're XX,XXX is we dextrose. about when sized that our carbon about the XX of plus plant So Engineering minus It is equivalent our be million

about we that gallon, that consistent capex, based are now seeing past: with All the margins we're of equivalent a and on greater than sub what $X.XX gallon said equivalent per $X the in right $X.XX economics plan our confident is so dextrose that versus we a you of good to are production.And have we cost when unit. take look plan first place a do the a our that, very at pound in far

renewable We also chemicals with probably discussions with that companies in exist several world have to demand from companies opportunities unit. for We're today for our to potential you first have heard co-location in synthetic-biology that of. the other

be the very in want not and And for actually food -- They today. fully this little have buy different And to so we're leaving strongly which it's and these we to and ours a for dextrose. believe that is refined the clear some also producers. product don't deep demand is is product. other We're We're characteristics to there clear minerals dextrose. to turned a don't go it, grade beneficial

being And to of that look we and York at we look take in so when what all at accomplished product. and we make able the a

it be what beginning in and is revolution believe great XXXX our look system sugar. the will future our the that clean to will forward we ground first have towards a in We confidence break platform start with to

Adam Samuelson

or service. XX going come the a there's in-service you how if clarify that how that's and to early an do what's take later to ground to break Just long this into is or think year -- by --

Todd Becker

the we which think a of of so third our and site we XXXX And ground a the as we XX quarter depending off or by that. into can we're making XX months, get which If will our of it's size it's between what can late it's on on year get the we and -- somewhere end XXXX, we third selection service. of goal, speak is think we the do -- the we do, one

Adam Samuelson

I'll Alright, you. all on. helpful. Thank pass really it

Todd Becker

Thank you.

Operator

Stephens. the line question And next from from comes of Benjamin Bienvenu our

begin. may You

Benjamin Bienvenu

Good everybody. thanks. morning, Hey,

Todd Becker

Good morning.

Benjamin Bienvenu

corn-oil. to want I So ask about

anchored a product contribution You've $X.XX that pound. to from your

your much With that and vegetable has the essentially that, the oils leverage the particular. how bullish price up, corn-oil view I and do I ethanol. the suppose taken for idea business across think get you to think, price the understood I it point the industry, to in break-even for on prices? goes corn-oil higher corn-oil outlook want quite looks as lowers though

I to think that. I'm So thought improvements driven about your more think you absolute by how yield process around upside to would year price would just your dimensionalizing the curious be hear than price. so

Todd Becker

that back to drives bulb, in look whether consumer today you take when when there on and product a will very step there's base the and and at our general, and around demand for think come good demand the for you energy for back still think fuel gasoline, our and look a oil, we top globally, demand when I and the in I products, that, and of alcohol out the of that. in consumer it's it's ATJ is or And opportunities normal. these whether specialty at like other gets other that, things

certainly can assumption the economics are you past -- yields So others everybody's could into given make certainly industry while happened. certainly the had Not in some the that corn-oil as of an be as back of and unit base but what in crush. the is that high

I to I really have that distillers corn-oil And that ultimately, the So make a much to think to but have have you and far all margin as industry well. of diesel. realizes experienced ethanol haven't significant want yet renewable think you industry healthy we that that making if

they different So that's it away, I but give the talk the think that makes, that really just think that's case. products don't the -- was I regarding industry

in dislocations driven and is then right truckers. with in the around which January, ultimately, issue supply just the the movements chain really weakness there's think is first supply And -- the weak now by I today. and consumer demand carriers rebounding still

give think still have to there's opportunity I not that back an away. to So

on leverage, going stuff have be X.X or at other you all the will X.X I when to to Some correct, can to achieving take plus X.X average higher an that, leverage more and that's don't our is of think industry pounds our bushel be of you to X.X oil, then but per extract of the case. plants, or yourself MSC and opportunities

in and and I the away low economics diesel, can to the to ethanol CI deeper realize crush, and renewable that for that deep stocks doesn't more. think so feed get is it's give they industry in that that ultimately demand going all the have

Benjamin Bienvenu

question you, the sense. Todd. where My that just priorities phasing to path moment. makes that the critical rapine Okay guys around expect of and is of ramp how and this kind second Thank your of at you the in project

Todd Becker

ready some at winter ready it's we've doing in our just their we're critical done will so far, of partners. we're and huge and We're amount just in are all hard ready waiting is are priorities, to go we up biggest expanding to protein of because the we're Where do this and to largest start and very to we for plant going started some of to and what And to to the to size, have start when on do of to matter path and build It's there fall, a point scale It's ground mobilize, -- engineering ready in frankly, the all what scope, States the terms with to ready up United as ultra-high-protein, what be get ready build well. ground building. that we falls also producing that of excited about yields it's winter work corn-oil knew our construction, we're we we're that -- waiting a to getting worked we advance there. already. just obviously quite

thing depending it little with to construction, up in We substantially hopefully it we be off move to weather, running sure But expect to may we'd if could construction we to we XXXX. when starting take hold the try the towards at a get construction the complete can that of complete completed But get -- we -- make year. should year. be end want XXXX least could until off, warms this on like that but faster, started bit this that to XXXX we into

Benjamin Bienvenu

year -- the Will of rate rest weather. warmer with Good with the year. the for the guys. Thanks, of best luck Awesome.

Todd Becker

Appreciate it.

Operator

comes question from Jordan Truist Securities. of Levy the from next line Our

may You begin.

Jordan Levy

Good morning, all.

quarters far, a of is and a the in transformation ethanol. lot coming of recently this question. stability mitigate that only And the that confidence the to thoughts that initiatives could of transformation go the we've but volatility up? earnings talked the high-level plan as scale wanted of not can so ramp maybe protein to next but the phase with on ability give Obviously, the earnings the you us I You've kind comes your from investors volatility in the the other if have. see and some the seen through recent of -- earnings more of ramp, and ethanol

Todd Becker

As and into get XXXX per to produce when and we start of XXXX you be year. to completed should X tons protein build XXX,XXX our

there soybean And as proteins -- meal That's higher -- the a $XXX today. talk Should earnings not base Our high-protein the base just be year earnings still a again, we're XX is second. from be on we in to we pro. base will comparable just just about expect million whatever the a earnings. around to market at a going

total production together, the gallon there a of close $X.XX to think add your that, $X billion two gallons top take you right earnings, then base you of If on corn-oil over start then you a start. of I and and those at

XX push to away away So you or so because that that. whether is to start you things many economics to harder XX, have minus I think from accelerate from ethanol are ethanol available plus you

XX%, protein as increase a just like, away soy protein your a acceleration replacement and increase ethanol a things another you your see from at there, ton and can $XXX obviously to cut from you you take If concentrate, significant -- concentrations for economics. first

and economics, at we And still And is economics. more covered confidence really day. alcohol as away converting getting protein from completely clean oil -- be from point ethanol to going into I divorce that from more more ultimate you'd sugar. acceleration think ethanol and we around more and yourself covered the more every and away we're

we're So certain volatile a amount earnings We base year. could of where going be from. still XXXX to a our get know

demand. seeing think from somewhat and starting ethanol do demand. the have as export have margin, RIN consumer -- I underlying driving to export that for return some the of able the and U.S. as ethanol domestic and consumer be $X.XX that's the traditional world demand, product to than consumers. up gas that I We the -- driving ramps And see global through signs been up of year. markets during the We've at ramps which would U.S. helpful that manage well, with certainly and we very is gas are to consumer is of that ramping ramping be seen his up. $X.XX traditional volatility that think our another the interest sitting come other exited our at global will up the consumer for under we're The gasoline And back

other actually point, we slight economics fundamentals be come ethanol just out the get the to I completely think from winter we're better look should volatility, economics but 'XX, volatility. from and able accelerate got solid, XXXX, that some our away able that overall, of we to get And to come So than away doldrums. at manage start to

one Just XXX -- have to we on it construction, close ground. Jordan, XXX breaking

and rate rate entry run into exit XXXX run Our is our solid.

to more we make we in sites, you We extra And construction have bring we at were now also today. product, weren't significantly have we'll continue and demand A actual are of of we product fix for bids see should and and that under as will on week River product it of we and They process one and early even before we to build lastly, updates to -- post on start it's build benefits as just a that needed as to starting our the really as had next three that. than Wood few that. fully real. we they we the bottlenecks us, come. it testing And those the our product, saw actually lot late

So see of segue that question and couple where we'll of on my protein that as next side well, good the excited the things. we're very next during quarters. It's about a goes into

to the pet. last profile trials supportive we all you've we of super doing whether rail you've way, see the those well. of aquaculture, Just expanding continue great Yes, on details base been are year We've customer In uplift of cattle. could I'll with everything and from wanted our talked in beef, -- of good some interest the to the including see customers go as value, pet more speak and we some leave outside to in get have there, continue that as some sacks there. J-curve into a our seen results if in been well. maybe pet, we'll second. products into that as before over almost of and we get in see have we But you've of full the our trials seen to By done we post-MSC, and some quantities to in it the from species,

so, not just top has product. five interest makes food really of big buying of in that anybody And today the it's one an our the that one it's the pet -- are our product,

that there we return well, of feeding well comes uses even see standard thought pad came really palatability ration more see so, -- but are. accept that substitution And as we that poultry, poultry And alone, more rations. demand markets and all industry, is demand when and trials least poultry couple product starting and is space. again, to well. piglets industry. at trials, continues things we're the a finishing see as but demand surprising there the And for the include had what product product ongoing protein, in of seeing into personally, swine, the but more lot and we're And really the starting what in to and from we're at to a start and actually of into adds not the think into we've again, to that's for seeing you seeing good of out like PED, one And ongoing today, what more then clean when swine brands demand well those the -- that we're through clean to what trials good that feeding for at our really we're feed as to we're that other starting that's then that be look do and way we're value in at plants, trials, protein which see proteins in a well. as and that does least diets very how this look the to we're MSC of it's a through I clean our still that's is bit couple this a you product -- that the market And in seeing markets for wouldn't get when

when Shenandoah so we we're Feed sugar. the in they very them in aqua York, middle least three So there's fully in were the bigger then seeing great Center size sharing with we're a and in again, operating, you Center, our and as were now But at our salmon starter seen scale to go Omaha of so centers on our long now and has have trials, well, technology results trial, customers if our of large where doing have there that they're visited, you well. getting producing opened, And clean grow tiny, of innovation saw way far. the a results they're obviously, a salmon. at you one you've of amazing And feeds a and Innovation we York we're couple there any Innovation handfuls, specialty

So across while that we're certainly from we that's an customers seeing take up the get investment these three need to And our care production itself. just we stood and running. innovation will is rest everything of saying making, centers are facilities our

Jordan Levy

quick one can in. last one I just sneak Maybe

Aqua bit. is have your of thoughts like that well. see mean for I'd You talked to Optimal could since to that scaling on little to a business XX a the Optimal talked we pros been while to trial and what as It's specifically. this important how you on

Todd Becker

a we think small on verge we in hands around substantive the with and the have and real we higher production a business the work XX is looking XX feeds inclusion of And more XX XX -- think things other brand They've been trial that those feeds. exciting aqua with feed really trials the inclusions, to trophy commercial and Optimal partners. pro the them. their does fat some for that. differentiation a think and a rates The is we're pro to on great really regarding a of together our our of creator. is value pros, formulation like get continued and Fish is commercial with towards there differentiation around that's diets, and Optimal aqua we're partners. in discussions Optimal announcements aquaculture our are Aqua ponds And running

-- we everywhere Africa, on that's focus when to really Chile above So XX start to globally really from is pros, to our to included get and once Canada, we that to product getting Europe, Asia.

Jordan Levy

Todd. Thanks,

Todd Becker

you. Thank

Operator

line from Byrne Steve next Our of question comes Bank from the of America.

You may begin.

Steve Byrne

have what fraction you there If it, And convert do technology technologies aviation developing you gasoline of over your interest of an capacity it's -- is limit your any all to not to or clean a ethanol it there? these convert to if either sugar would of in it? Is over fuel? successful, ethanol

Todd Becker

double at we the demand five that years. the is believe I to for or sugar is to today, that more know think we ten next going you if clean when in we what and look

alcohol more, plan more product, happen. say that's great produce is We kernel toggle more. against where Obviously, the ethanol, to of you I that optionality a sites to really just dextrose and and convert will and the best pays and it's continue when where corn dextrose site, more The what and that's back comes. own or forth And really pays earnings jet, to sugar between whatever think whichever our convert our our you clean -- can today.

produced that it clean Our as potentially are it's in our sugar new potentially view protein that, fermenters be to And happening and sugar going oil first, beyond in will first. fuels. happen some in next, after renewable that, then of is while chemicals well. And these

order. at So it’s of when that, you look the all take a

today And don't I believe exclusivity of really those you've think evaluating there's today yet. seen -- ATJ technologies. the are what's any is all we in important we any announcements those technologies around are

international going some sitting in that some put some technology we it other of there's that still While sitting are market to that available people adopting, in labs, adopting, place announcements evaluating to companies there's to others programs. the potentially also subject today. at programs as But are have those companies are It's of view you're technologies highly in that are technologies profitable. make and them those certainly the other without other government you of well. make to our in But of to there's

obviously I making going the it's So jet, be new it's best toggle about what our think to and outcome higher make -- to optionality toggling sugar, than clean invest is view. more in to order is. the a significantly in what outcome and to to And dextrose the the renewable best investment having

So while but with for. billion with opportunities the the these look than monthly think and others and facility this ethanol at what need for you look it's and and value But can look valuation re-basing of and of, future process, dry gallons a step a to at base but the on have just deal less. deal industry. that chemicals, market of well industry that's of just past is the value you it of it it as this a close more others the other have all a verge verge not Plains, assets of protein, to mill carbon, reevaluation for as and the jet giving industry, think is This to you I quarterly of volatility oil, been as as while you to a does, lot a the that, that with sugar, And may are illustrates I really around Green -- what credit re-basing more we you want we on and economics. really

Steve Byrne

be And in And seeing comments did feed and how certainly the taken the outlook one in challenge the any from was having of increased your impact oil during are on that already. demand here soybean and glut crushing is, well you risk see for My increased one for the a stock, your could U.S. an outlook you of corn-oil, Neil, production, protein that question do initiatives? that quality the there about and on you're were renewable et cetera. all

Todd Becker

build a you don't more opportunities. them take great X. have to United all Yeah, worried of out think certainly going question. I are meal any continue world that bills the out to soybean is The closely. to take But to of able at look crushing of whether just about building a And that's States. these long I to the time are think of that be will cadence that

general, switch to it have bit stealing even think And lumpy to disposition not meal, that the I'm flows. you're you crush Argentina there? policy of be years, continue positive shifting is I a capacity might I there's that crush think -- market's even buy word, if we that will, and going us. a a -- which, Will a with they would won't buy bit the and but good probably think think time. going we But will that very economics to soybean piece a built have upon gets industry additional the for in as of using I long standpoint, potentially with and service yeah, States think world I it and soybeans? with for remain a protein higher anticipating of to while clear trade there. But United demand. we closely, in we're characteristics, We've always but all some different clear Are China able certainly but looking accelerate mess. to concentrations the fast I'm a our is And at whole they seen nutritional fast. into in world. protein that we the have biological capacity for And ultimately

a I you'll we it now on to open from what's demand capacity product I to protein, at and a I pause And because the accelerating fast on as it. come pricing did, to it the believe, but that If start you going protein. it's meal to up, continues think just world, you'd isn't a protein. away cadence movements put world going if think lot and on short short that of not that I COVID on, look think that. market see accelerate is the significant But enough, little see the soybean the have resulting any in pricing. impact price of But just COVID, And is this

Steve Byrne

you. Thank

Operator

Ken Montreal. comes question from next Bank the (ph) of Zaslow from of Our line

may You begin.

Ken Zaslow

Easy guys. question. Hi

XXX case is base million. for your to$XXX protein If

has -- If if to I you just a XX Certainly to? that go that. we pros, look, think XX there what prices, actually use translate does J-curve that's you to but were out a game. pros have high long

$XXX grains. first million thing million say is distiller’s to a going about If product, a are an ton you to from $X.XX uplift that you $XXX is pro traditional And the a $XXX uplift that's to displace $X.X XX at immediately

Todd Becker

proper place to that you plus. It I in spend time the -- in will get the time market and but But channels. there. take would to all that first want -- don't the place that's all to you overall, start

to after but substitute higher-end some ever of want going going grown fish plant-based completely never you're not that with things ingredients. I opportunities the like, you're to I into go that -- end think in think displace you to displacement ever top really diet there's J-curve of to U.S. meal,

so, look are wind catch then to every $XX at ton $XXX to a if starting took is from as $XX ton, there, a or $XX million that million just that's and well. think above that. But $XXX obviously you I another I first think above a million

Again, but to than happen. is us. a time quicker take that get to was develop going to it's it's So our partner. proteins venture to for then on going long higher opportunity to view the going There we're three we with we up was market. And it a just there thought, our a huge before thought five-year lot

Ken Zaslow

Okay. that I'm smart. not

started pros? So pro XX wait, be be use to know transition on XXX? I that does simple. the -- What like but would that XXX? to XXX us benchmark, out. you and I out. through going us that XX to as go Would be that relative under transition I XXX XX that was that going you're just was for that, it's get if I Help but mean Would and that, that what that, And the go to who to to to it XXX? a would to just the translate get beyond XXX higher XXX where pro to

Todd Becker

million cut. What adds XX $X.XX somewhere that from somewhere that ton, a for pros earnings higher-value up a load is $XXX to you $XXX translate $$XXX it between between $X.XX at at goes as and the from markets. and into gallon it then And obviously, first million go there

the ton this land that nutritionists You a we'll attract that from and trade it's for trials it's on But up believe amount as we'll for around in and and $XXXX limited accepted have moving into markets product, world. than ultimately. $XXX to have to middle rations more this our somewhere are view you of because that to opportunity, different that rations of still global immediate as of our And But flows an product well in there going it the $XXX it. moves think But that through not higher-value is is time becomes rest we first product. product. an work and we the and stop

Ken Zaslow

EBITDA the -- starting million pace that XXX ago, just statement? that a corn-oil marginalized, with But the feeds while real $XXX that you're way even there your Is even just least the that out fair not moving forget up a the about It's that substantially $XXX sugar anymore. at put eventually. it XXX the kind your second, to become pace So about is. is of right? really from dollars at thinking for $X.XX to high a Is pro where moves

Todd Becker

That's when of the why the in and more to getting it you cetera. the Again, we're rations. that's high to into rations, day, move, see start doing then interest on we and acceptance like And you pro pro. XX it's once product, -- it's -- why start et get every prices you're much made focused first we're

up thing in expand happen from want value value those you realize there, real nothing the of we'll start what to But XX actually going or that's same value the being of that will place We displace And to the protein. potentially. we'll -- the that where value we're think just then start I first with you protein. pro. move is the And And know immediate, are but is to and ahead, yeah, of ultimately, curve. protein correct numbers.

Ken Zaslow

base mix then now, look be? a customer will in what percentage on that what percentage of have, leave of And you Then what foods, that then it the pet you from year I and will if there. aquaculture,

Todd Becker

starting plus really one also of it and things online. but Wood dairy, swine. still have to River and and one only plant we we online, Because plant see plant facility, we're interest -- second filling pet Wood pet, brought River our poultry, out Until was like XXX%

it's So pro. at we product. place sales. for well that right into of look not there think percentages pet, is today is really get we're as XX% XX you aquaculture And now take send And until on transition product then this well to competition I over as that customer customer will aquaculture over -- but when wanting

this send -- -- on get really product. protein wanting aquaculture so to waiting trial the not to focused we can XX into protein we're that to over XX% So been patient Pro the channels, product we've XX product our

Ken Zaslow

you very much. Thank Perfect.

Todd Becker

you. Thank

Operator

from question next comes Eric Craig-Hallum. Our of from the Stine lime

You may begin.

Eric Stine

at just the Definitely in I'll everyone. issues level. and more permitting local Hey, sneak hearing some capture. regulatory-wise state on here carbon the chatter one at about just end, just

there. outlook curious if the changes Just that

the think the pipeline know still longer-term, and it is pipeline seems injection of were outlook potentially I like first permitting first. side this direct ahead eight -- does the I previously the the probably but opportunity move that on opportunity?

Todd Becker

No.

pipeline point customer, it's This Summit's want making -- traditional still. it, they really, showing get -- we're make, a some up showing right-of-ways, you you but even project. think well And And really obviously, starting you I when doing. to this environment as not project the we Obviously, is company. you showing to at the when probably already states do when we're they the Their assess I and get When very are think not somebody at look pipeline that's tracking to just said, backed place thought tracking sure towards run all agriculture. these states progress. agricultural resonates permits about shipping this together, really they're through through the say the that this all they'll can't what you is massive make permitting, I more want doors, awesome who's you where imagine and happy States your And pipeline who's Is have what at to that. an and time far, the I in a in up They on need, right-of-ways that invested Summit the any have up permitting on, really were COX, pipeline, states. risks would around. would be great to is far, are with obviously regarding who to think with and extended at they're don't have of that And project confidence and farmer put farmers carbon obviously, want there the these permitting? is each land. their tracking look continue we as to yeah, summer But in help fermentation, through what's this highly clean certainly certainly etc. I you is happening while, thus processes of about you right-of-way. for going the thus U.S. the headlines think yes about farmer at very read really They're that

today. So where they're we're comfortable very at

opportunities, in them there. are capture other direct as look with is where only don't carbon. inject technologies opportunities we're out you of we're necessarily those to on And other There carbon discussions and other produce And products. If our to well. there you many one direct opportunities at evaluating that inject, go have

certainly clean because you're is at most very the carbon sugar, corn Plains if days less Because in anymore. of in and a make the this Green early lot carbon best you sugar. in the that kernel the So don't carbon higher combined of to value want is think risk than product for carbon use carbon a keeping in committed highest the the to still And use other make a from product. I opportunities early with we But think story is us -- also about pipeline. to you clean

is think valued it you does what third a up ethanol goes If just kernel all that not of every oil the stack. at day,

molecule, when are which If a make carbon you you carbon a into the make part is carbon atmosphere. that longer reuse clean of is sugar, and the you kernel that, you emitting of sugar no now third

plan flex So carbon Green as I ultimate think our to make clean at sugar is and able Plains to well. be

Eric Stine

Thanks, Okay. Todd.

Todd Becker

Thanks.

Operator

And line Jefferies. our last question Laurence from the will Alexander of come from

may You begin.

Laurence Alexander

morning. ones. quick Two Good

your some dextrose, And you update secondly, do get Quip, -- long three you validate expect in hit the on how Fluid the could maybe years? revenues can an facility On sense to to five normalized is licensing And service pricing? to give licensing to able after say, where in be with strategy? of

Todd Becker

Laurence. The quick regard with Thanks, CST. happen is pretty our view normalized -- pricing Yeah. will to

discussions have they And tradition. matches colocation it's going look already. buy whether in in And of end-use characteristics the it's terms and going all in what own on they product production the for like more in bench know it the or bought or are products their are and potential to what to We traditionally, multiple used the whether with pilot they've and opportunities.

price there'll dextrose campus co-locate So facility easier this that as our these opportunity be think the it, be produce view on in supply the one well-defined. we at -- future of is price at looking pretty And is that we bit is of, have will of do them we're this partners will actually potentially all some where because come a product well. and this first to campus opportunities will a little the is well

the is There's other that on So opportunities. point market.

about we're So that. excited

But I and product, when potential a seven continue to those make the that the protein, we bio to were a button great. and to IP value that more. with technology, the process, we what's this company down up. get Two it's look and that. Quip just this of Quip And it's at really not licensing have little needed of the And build Fluid day the you a own for world don't one lock continue need to Quip and we this we're the the and we of opportunities going standalone, buy real IP the and the oil, thing. -- out to clean ultimately economy, around portfolio, that for and the think we the last ownership of the the more that sure close and are sugar and clean I around from value value technology year think product Fluid in we that's technology sugar anymore, where take early technology. to patents certainly is. opportunities around But our monetize I'll we as as remember, Fluid beyond. just

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Laurence Alexander

you. Thank

Operator

no Thank over I'll remarks. the you. queue, call there's to And questions Todd in further turn the for back closing

Todd Becker

Obviously, of lot about, standing you systems, on up exciting our make you our valuable a And investment standing talk strategy. to were of that a us. strategy coming for opportunities moving the that. we of great When believe of we look that phase the into next next to everybody, lot and ahead We're Thanks, as call. that a We're Green phases lot up we've to and out our going technology Plains rolling platform. into the total of do technology our at today we're to possess be look I the us derricked very us at significantly of to to long-term and our go opportunities we the this up. But at our company, exciting the believe execute. an continue we going relative And our for that year of we're the very to prove that portfolio for will be the are importantly, to have have. are continue value is in to assets times that technology and and the more is to ahead undervalued going opportunity exciting value IP our us. solutions of because going that and exciting continue shareholders the to that's

have We 'XX. those on and base load call to we'll to 'XX as we're earnings the talk we grow today going to jumping load base earnings, Appreciate into guys next go you and continue quarter. you and

Operator

concludes And conference this you today's call. participating. Thank for

You may now disconnect.

Green Plains (GPRE) 11 Feb 222021 Q4 Earnings call transcript