GPRE - Earnings call transcript Q3 2024

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Operator

Good morning, and welcome to the Green Plains Inc.

Third Quarter 2024 Earnings Conference Call. [Operator Instructions] We will now turn the call over to your host, Phil Boggs, Executive Vice President, Investor Relations and Finance. Mr. Boggs, please go ahead.

Phil Boggs

morning, good and you, everyone. Thank Plains Welcome to Green Inc.

of on Quarter under Events Executive Todd are slide our Earnings presentation other Officer; is on you & leadership Participants on XXXX Call. today's our members several Presentations Becker, and find Stark, available, Financial link call Plains a the Chief senior team. There Third Jim Officer; Green can President it and and website. Chief page, Investor

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

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

Todd Becker

the Phil. $XX.X quarter, train and Good joining for for call inclusive reported the Thanks, terminal. $XX.X the EBITDA in of thanks today. We a sale on million million unit gain our of morning, third Birmingham

normal $XX EBITDA consolidated million, million. was was operations $XX Our crush from and our margin stand-alone

his CFO, all Jim come, always from and the transition. When These well goal into to Jim retiring Boggs to as deep to was announcement get sure and time regarding Officer. Chief knew a this Phil you which morning you, subsequently to returned seamless I'm promotion with would more of Green Financial spend are too X make numbers, his Nebraska get back I Before really Plains Stark as grandkids. was day and for Plains I of named known should the this guys Green the saw

Phil worked tell and spent set and one of bit and have on and lived I'm the long-standing again, up he'll company let and and world at of with proud you more. Jim Plains, exiting him. I'll was together loyalty. up focus of next his for with time Jim a to the family. years succession Jim end be of to smaller Thanks more, planning many stage I companies was things part many to career company, have his that impact a is the made and his will who with your to private for the he but One Green success, bargain on the dedication spend more of the Jim, public the

So to let's back get quarter. the

rates rate second record also ethanol operating reached in XX%, our quarter production yield delivered of well in as oil quarter. a line ultra-high nearly with maintaining and a we protein corn strong Our record the as achieved

bring of there location, completed we Mount capabilities. the full for our Our more some an The our high-XXs to improved the its earlier, success to up operating performance of operating new run some extended some run these platform, and are to rates. operational on demonstrating be well. Earlier at have and results improvements of continue back normal deliver across we needed underway get fourth the the the this we should maintenance have years quarter to planning we improving rate plant room those are Vernon as mid- and platform, we month, of believe rate still performing location to as execution indicated shutdown in finishing as our to

in the weeks. next We the are additional scale beginning now reap of production up reward of and to expect to couple capacity

solid operations well Obion continue upgrading team over to has and that coming increase several a its and find being able continued as we plant in process and metrics. Margins the prices, as efficiency increase job favorable production and we exports quarters. The and safely during the did improve natural quarter. by months rapid the quarter, maximizing demand late platform, of strong throughput next though we the of corn to prior and see done are production to even indicated opportunities gas compression We into new in the were fantastic some anticipate next call, on driven the the

expanding to experience pace August through with gallons for tailwinds in on We go. by a Overall, of quarter rapidly blends totals mandates We led X.X outperformed Canada, continue gallons, to we and where will record X/X other and believe they prior their grow, where of year blend countries and as over low-carbon the up as significantly X.X were continue ramp for represent are billion of billion exports, all well. this X.X of billion to year exports up ethanol our programs. prior

well, will as call carbon sugar. We protein, corn remiss cover I on not and clean but this to be start with oil would

than longer CST ongoing the start-up a our all and in was we of commissioning While the Shenandoah focus key during project it have wanted, taken quarter. may

-- supply of had for challenges, indicated to we most through product have we week, As and customers earlier validation. we the the of have worked this some begun to

we customers. for production be advantage, very it's despite to year, up a Having low-CI over ramping We of strong also and our sales be will carbon will delays. remains the first fourth believe many up shipping wait these and dextrose to process to commercial during coming quarter. The the customers XX% worth the executing the debottlenecked, bulk interest continue intensity

to is spend could the on this many this clean, the bit to to this technology, We have and Quip true from It but do realizing thought point. always here an of the little a Green get we said, to I'll effort Herculean Quip still plenty in value but make Fluid are. technology no Fluid of is for to this more steps to dextrose, that by a scale here, later one call. time we supply was massively As industry across disruptive oligopoly developed and low-carbon one existed and clear, has Plains this we decades,

of process, of the working more Partners. important efficiency initiatives an discuss release. And used completed the an results. terminal high-priced financial During its Green Birmingham step, back review financial hand Jim strategic outlined updated sale press and began detail. progress on to to to acquiring in the gains remaining over BMO advisers, policy enabling the the to anticipated the the as the update proceeds I'll outlook was train with of to now quarter, continues the come we directors simplification when our overall Partners. The retire our Plains additional and all This on to unit process provide Green board first the the the related of and I'll call on debt we Plains progress provide Moelis, and call an in Jim?

Jim Stark

quarter Thank you, approximately were consolidated million, $XXX ago. Todd, revenues million, or the $XXX.X period for Plains and lower good third which XX%, year than the was morning, everyone. Green a same

to the the compared for and is As of couple year the 'XX third period prices oil attributable lower of quarters, dry last lower ethanol, to ago. distillers the grains same as quarter revenue a been it has experienced renewable corn in

opportunity As resulting year. Todd to down and in drop prior significantly compared mentioned, corn natural stronger we also prior a with saw year-over-year, inputs, the quarter the margin quarter in and our in a gas commodity

included the year. XX% Our run was in plant plant a last production the from XX% sold The of utilization in year. compared rate that was Atkinson year period gallons to last same quarter of third rate during ago the quarter, XXXX quarter

So year-over-year. utilization production actually gallons despite increased declining slightly

fourth the the averaged range utilization our quarter, stated and anticipate for to XX% our our capacity barring perform we in rate, X mid-XX% quarters, events For continue of trailing have of we any outside a to plants control. that

the the which That's loan million. and $X.XX of diluted for as count $XX.X million on quarter million At compared attributable compared not to tax personnel point in due same third the the assets it in may had train to forward for prior which quarter, quarter from onetime we $XX.X income the Green XXXX. incentive the sale year, million, EBITDA and third to at $XX.X income when was year the of that the This $X.X items lower loss $X.X $XX.X in year you onetime of period. Like-for-like, million carryforwards 'XX and quarter, increase of treatment a $XX.X in adjusted the million the $XX.X compares retired for would was $X.X QX unit to method to inclusive For gain or expense period Partners taken the adjust effect due for in third NOLs debt or of the that fees are $XX.X was Birmingham was periods. Depreciation costs effects year's of as primarily million. costs available the The period This consolidated our a be so quarter with debt and ago, was prior intangible $XX.X both our net the million, was used due share. company adjustments year capitalized and the the Birmingham reported for charge the XXXX, million for for million $XX down prior of tax which end was on $X.X converts to accounting and the million of that terminal, to impairment not. EBITDA third anti-dilutive, $XX.X XXXX significantly $XX.X million, include profitability by the third That Green million, gain associated were out XXXX. Paid amortization to $X.X a of impact of current the the long XXXX. I million, million $XX.X the the to million offset net than expense for quarter, the the dilutive the the of income be of of million related unit was higher was crush same to quarter, QX prior compares the sale million, in NOLs R&D Plains that 'XX, to a benefit includes want million per XXXX. Also net higher all for than of of realized share, QX. We year amortization were the for quarter, to compared diluted $X.X within for share as-if-converted for prior accruals. Interest segments both includes to in indefinitely. for to the for the $X.XX of federal the the train carried terminal SG&A the quarter. we the the versus diluted quarter. quarters lower QX payoff of quarter out a $XX.X interest, Plains per benefit

was Our normalized tax for around rate the XX%. quarter

from operations. Our due to strong the liquidity the the from prior quarter improved of end at quarter position results

along cash under in our $XXX restricted cash, million capital $XXX.X and liquidity equivalents available million included Our cash, working with revolver. approximately

to look grandkids. I 'XX my position capital to given confidence year financing Green $X closer million the regulatory be as Again, range team grateful million in $X forward. I range Green closing, $XXX excludes the the public Todd we initiative, and the needs. In to me company my well-deserved career with I million million has $XX approximately have to rewarding. million, that of the board been for safety of $XX team reminder, appreciate about chapter, our knowing million will $XXX years executive thank $XX a cover year-to-date CFO for For time allowing Plains allocated across platform, to Plains I'm of excel immensely grow expenditures the my will years level XXXX initiatives, about million rejoin equipment enough continue here. in about in other to to the last the personally and this for been you total and to during incurred nearly for carbon of him with the third clean opportunities my million. have basis, sugar will approximately fuels at needed at and my a beginning I've to the XX we growth the forward we quarter, to all towards the over to and working be I anticipate next professionally lined capture and up CapEx as those that management Nebraska and new as as in complete and XX Boggs Phil and capital we our have family including cannot and initiatives his renewable the on industry. this and finance company $XX.X capital. On of maintenance, accounting support moves call

Now over Todd. I'll to back turn the call

Todd Becker

Thanks, and luck Jim. in future. the And good again, thank you,

talk let's So carbon.

note, been time second half cash is flows. This platforms and Plains project XXXX, compression have is Advantage September, Our Class X the the construction for made our issuing and lead And of the project operations QX months. The another great again sequestration of next and Trailblazer footprint approvals in long one on to strategy of Wyoming, we our remains is states for be on the game-changing in project to and so, Green in the carbon for additional track schedule earliest million-gallon and quarter. Of ordered Nebraska begin we state in or with in coming on this these well follow progress equipment decarbonize has which for on well XXX we primacy of for facilities along to shareholders, XXXX expect largest us partners, we that will delivery the the pipeline permits, sequestering carbon. differentiating for the approved and with VI X keeping track. expect month first

price value will well. remain our half the Our earnings assuming opinion, of estimates our $XXX or asset at even a our reflected carbon so or in year is discounting and credit, the not of as share company, generate we the LCFS second in earning XXZ XXXX, credit, of all million tax $XX ton expectation after my carbon per type credits. Nebraska in starting the with values with of opinion base this in as alone an intact,

saw quarter, gallon. the decarbonized exchange hands production price we over for per a $X the During facility ethanol

gallons So current do higher XXX plants our you be value math. Nebraska of our cap could would from the those The million alone. market than in

a it the we continues in will be IRA when runway the what of beyond really availability I do And and enacted. placed at that's anticipate we when And of new think low-CI considers the from Nebraska flows. We the XXZ was to the gallons is Congress misunderstand project a existing not cash the the long-term not when look that important if and of of with point when of with our extended XXXX, that, believe out, tax how XXZ giving from be XXXX date election for this regulations come next broader this to permitting make right Solutions out. that is available extended. progress but of Regardless year. we're measure will pipeline way, to support support is largest is still ethanol for Carbon some prior set a package proposed Summit XXQ the us some on volumes bipartisan there a waiting the industries, While across XX-year plays of during diverse XX-year XXXX is credit service, facility credit to

distillers to on Now corn oil.

to the the We yields we soy rise tightened have evidenced the seen as with some stabilization in look oil we has becomes prices, the market push more palm and the an as the record we feedstock, to our XXXX, there corn record beginning continue at DCO plants, oil for noted during know as EBITDA production up during Green We advantaged add protein, to top in of and grow ultra-high million a you those forward XXXX. In in by prices platform, and last half of When come future. of as account the quarter. to protein as Plains contribution oil on QX of we and will call, combined continue X in from in future. carbon, over $XXX had the

commercial Our maximize operations each locations. our the flexibility continued execute team have and processes to at the and and of improve efficiency to

also max and and many for to product, during continue the ship opening Tharaldson we get win now new run our production in another U.S. access the new making The is aquaculture internationally. have to ultra-high in continues and from Latin to and us our in great the team market increasing With also XX and standpoint. up to both better a Our Asian transportation JV a to started U.S., to pet customers JV shipments quarter commercial Western ramped open production, We destinations our Pro for now progress up customers markets America. our strategic customers. customers to we rates. Commercially, protein new sales

expected to due biorefinery work platform our to this somewhat lower products. flexibility continue due are margins will and optionality for can with corn cheap adding the improving, believe of success. in positions a us of been kernel that time itself be believe out maximize availability to We we've achieved operationally than While competing to what long-term and

we XX capabilities continue to refine been and Pro have our additional our improve product, upgrades production our Sequence making For product. to and

customers. There to Our a Central at the new upgrade we to in of up at we that this Wood are in first finish daily ingredient, Sequence were first allow with cheaper volumes River upgrades lot until is we completed to online Sequence. More quarter and interest a we XXXX. be to Sequence City, and these of little expected more just more hours, year important, limiting next to we sell efficiently continue less to disruption but better as spec of and quarter the to is X run and ship plant operations in than during produce

We XX also for deck process breakthroughs year. next have early some really exciting Pro potential on for

So stay tuned.

demand Lastly, will out fully and we production does yesterday stocks crop as tone, this finally margins EIA a support is export but unknown, the this The $X.XX XX this the showing quarter overall of yesterday's margin on wait news. now an report corn is margin gallon evidenced per not forward-looking shakes and improving see harvested. know of structure structure crush once by and the under how we days usual, as ethanol bit

been for with formulation consistently sent operational already to and to key testing. worked out producing outstanding commercial were relative of match technology but hopefully you a customers numbers, start year-over-year and groundbreaking prove compare of at time at to yesterday to higher, numbers, and similar those to to have began our If this engineering margins much bit to this a ways product regard have march we last facility, teams the tirelessly significantly sugar, we year go. With the some little scale, at

We will work piece facility and is disrupted. addressing at matter building and in better [ Shenandoah that to we to that what increase The now including is and quarters from for production X Shenandoah been in York our Center industry Innovation has a a infrastructure critical additional execute to the commercial-scale coming to here decide and building over much of continue an out have it's when never ]. The technology pilot volumes, bottlenecks. on facility this place optimize the now scale, Serial puts reshaping learnings us operating we proven the

the demonstrated the us call and We our capture can value. Thanks today, strategy margin to performance milestones our Q&A Clean QX wrap to yields, for the of Our start checking joining decarbonization positive environment. rates intend the capabilities up run with Sugar platform, strong allowing we of and we keep improve the Technology and shareholder to as session. off

Operator

Your line of question Instructions] Securities. first Truist from comes the with Levy, [Operator Jordan

Jordan Levy

the you your CCS the next of in have you you Advantage and of value value from on ventures. and Can you thank here there what work new it needs guys on talk review the protein the on for strategic Phil, but luck equity outside to Jim, sugar. congratulations mentioned on you are the process the the doing? reflected market Nebraska all you initiatives more side even certainly reflecting maybe more not think just everything, and is what to other so you the of role. Todd, value on call, best get to see the

Todd Becker

interest we in in and/or break a big in for critical, voluntary really The LCFS the we I be -- to produce, that obviously, ground do are events. we next to that on start to are project. think able you're to credits credits that, here I to going the of think the milestones. days quick see XXZ ramp-up going carbon couple going once California. both XX a And XX in and the milestones be There's to that, should

as those programs starts not I downs through higher, that think place. of that adjust off, from we've than And is to what's that value really and an kick will gone sooner company think important if just alone ups are some in that. Obviously, begin the industry. I are our to once that that

fuels compressions I as ag ethanol across asset overblown, values as in value bit of it's And think or the anything board broadly a is between, think or overall little well, to in an or especially industry. we've whether base. the in an seen industry of our renewable I as going that be

I value just If at quarter per quarters. were base margin think able our asset certainly we've it's we significantly we show of flows. what a cash you look too a had environment, deliver to a in few today, gallon low. But free challenging normal this And can

like things we be it's I believed we sugar we always is, delayed, to have to not it think Fluid when our it's earnings. believe we look that but technology now products. is producing that place, immediate but and was a interest Green But going an what in at game-changer, impact that process and those Quip is CST take will developed Plains at at longer-term significant a have

our I I just downs a So margin very, But remains environment ups just We've industry, and in watch a everything. closely. to financial of volatile very it's overall, the we're had this as bit little position and think be strong. that And going think, to company. to have continues

a we Our just on into just a is to per where revalued to and to I ourselves just relative valuation, think, generally replacement need to be. too back other gallon per get step relative gallon, low And process it's overall, transactions. generic

Jordan Levy

of near-term building that you help protein, differentiate challenges as the But sugar mentioned, more understood market seen just but just detail we've some view kind you little I the well just side long-term maybe maybe certainly give then of as market And more evolving. ethanol, protein. of quite value from business from as as on the much CST maybe you a the think that. how even that and Appreciate an see it's dextrose in on don't

Todd Becker

in but dextrose products. for CPG interest everything strong we companies syrup for pancake lowering focused even so and and low-carbon see overall, industrial in that's score as And of on from remain between. where market to to That continue their everything carbon dextrose, more remains chemicals demand the

that that's that's happens I that in fermentation. think a -- a lot of misunderstanding

and areas, many really we're other in producing. used that's are sweeteners Our what

our into consumer And to product, get certification are producing as is markets have that sell we our to now we now our goal so to certifications. receive can We the begin food-grade started well.

steps just step I that think want margins remain product. The strong. many this we the to of do to that's monetize first

If higher. make think proven others the of significantly continue dextrose is you by strong, to that's that the your on And in in that alcohol, instead that dextrose wet you mills. from space still Those margin I results product. make especially see margins remain

So an technology. we have interesting

have chemicals. get focus what out Quip We interest United around and the calls we're right to work from the proving going technology world continues the is to in States, in the in, now, Fluid where that And that really our they've we're done. efforts, in there's demand. have as from People also offtakes to the and way start next for on I some you'll volumes some food think it's significant well the of during waited XX commercial deliver And see to kind XX days. all to us, and us through customers

and never and where facility type proving and done this in make we have compressed be to make and whole this technology products. the can have not this take history scale owning agriculture really of we're and team food everything industrial And to but throughout themselves really level, and long this about of of controlling one, It's hard. But type worked at that we're been margins excited it. sweeteners, scale we So about a used game on and commercial this really and the have in dry-grind at has dextrose maintained process a IP you low-carbon can that. that seen. relative this before else The has excited this dextrose

and great to exciting, it's team. really it's testament So our a

Operator

Jefferies. question from Your line is of Laurence Alexander, next with the

Kevin Estok

you clean guess, know margins really current I coming This And production, be for you moved the sort pricing? is Estok conditions. for out direction that guess, call like, that as that given prices of one last I last last, I since foresee X reflect your lowering several just earnings. I expected? just And I'd into rates, to the and weeks, one the on and QX. in prices mean, you the months, basis got margins Kevin ethanol I could how possibly that said corn margins. play outlook I've lift on has producers think Did was curious Laurence. I sugar guess don't changed said on ethanol like questions, down have temper that

Todd Becker

is and a little wait see margins quarter. a Look, on of this bit this

we I late compression in continued October, But think quarter, in I think saw adjust ] and we the it you've was saw October. and to talked a these all And the have late that, with little a third that. produce about a that, numbers all being is leave into going absorbed, you the $XX.XX as yesterday. what that what [ prove we I at is market rate saw that think run we to yesterday draws to quarter,

areas bottoming through But significantly know take think point maintain we're that increase a that where to offline don't saw at if have and naturally. and saw I reduce weakness stuff we think to quarter is we next and the the I through we see gasoline year, hit the we still strong rest very some we're those believe we again, positive still margins. driving numbers. exports I And for and industry, were where some and weeks. But the over to we in have will year as get that what continue today going going and get like out overall, that first yesterday, dragged these turnarounds remain anybody of into we're do into in yet we ethanol be we again, oil happens production. the next hit will think we'd we're quarter, go season a other the I stocks see going next and year coming think down and some to can And I this -- by hopefully here, in prices and took a as But well.

get we're can a generally would [ So stated what see than margin be structures. but less producing, demand we with we're ] back But draw. into speaking, typically, XX, nice even it if expansion using we normal larger an

some corn the think farmer than are this of to firmer thought. really was definitely The bushel least we corn $X.XX On come put a anybody out of better was QX than basis X in at we've harvest years. the I But -- basis, the away. able prior

everybody market years, So industry, basis that structure we for of margin but couple down, definitely throughout we as of futures helped is matter -- trouble towards in prices, traditional the remain flat But areas buying firm, firmer I we saw It's pushing the not is a in having lower the the which harvest, still come it's we're corn. think, than with last than obviously come year. $X, these including to out any just basis going at thought. of ourselves. And

Kevin Estok

And then first Tech sugar, as Sugar week, commercial samples Understood. on just this earlier going announced you clean customers. [indiscernible], to Clean the

your received I Just customers? guess, be mean, geographic feedback those makeup. whether just curious what from has And curious or the Any are helpful. American on most customers, I you've North those them of would samples. been feedback about color not there

Todd Becker

in we're in seen big going sugar be Shenandoah your for the opposed that I'll York structurally they've seeing we'll going that. Innovation They're And I their And is Green to first. to have out be demand technology to to customer that American other dextrose It's to bringing is very what for customers and them the it's question as global think answer And are Quip not all look, will customers to our better. talk from for countries. we producing Shenandoah. we're about North similar already travel. But where a to last Plains really value again, going feedback, today. want to to our Fluid -- product even is technologies Center well. Relative creator product of

time for it's now. of So really us, a matter

is can approvals get pending. I to today, certification see other You We've product. have we're saw to we're But accepted GMP make start will and that to going that's had process, that where approvals. product process. got you'll a start become we food-grade at well you the you very our think product started, And before

their now. again, on first not of our has today certifications. But just they industrial But need Our shared feedback ship been is do although into to food-grade to starting markets, own because it good. stuff that we're goal they're ship have markets out some products we early

and But there's is it as we is think engineered constructed and it This type and time. technology But in a per little still to So works be have those such and a better about terms ton proven things. game in we're of of at that IP this of but going will through and changing, things long it take some to that scale. #X, disruption cost a better it's work cost per owning controlling and to game, now have going Shenandoah. works and we bit pound and and this continue to cost

never it. long path, history, done we're a on technology team I -- this think done is that this a but has never disruptive just and proud has been it's the absolutely -- that very has of a before we're in

thanks. So

Operator

Your line is from Jain, UBS. the next question Saumya of with

Saumya Jain

progressing color partnership I guys well. how any guess the any have Tharaldson with just updates wanted and on Shell I you is if as on

Todd Becker

on comment SFCT exciting on There's on things to partnership. let you that start? Leslie Leslie, some to do I'll comment our want going there.

Leslie van der Meulen

Sure.

York, we in been second-gen is what ethanol the up started opportunity. call DCO, or the successfully produced. switch has DCO, The really a process out. will has line and next process to the the first So to one-of-a-kind The in now line cellulosic

that's will that's producing to be we'll mode, the piece So basically more be going running, all previously when and efforts to the Once oil. is up corn protein And that last the is then and the validation side. for products alignment then switch on the protein. of unattainable campaign process

Todd Becker

then that Leslie. was -- the Thanks, you second And also then question what had?

Saumya Jain

Any update on Tharaldson?

Todd Becker

there. the to Dakota had construction little country, we longer protein but in of because push toxin end customer on a the continue to bit of is for wait the took market, is much the longer. capacity Tharaldson are at upper there, excellent. certainly customers of it is we there. Bringing we're the toxin wanted, there starting took are the approvals, that but production wanted the quality North nice that in the that which of Obviously, protein because debottleneck on levels rates lowest the product we And corn bit that towards are start-up. available absolute zero than little The to Tharaldson a

us to out getting of out opening demand facilities as out of get And the our some we not seeing Coast, to Coast. our of new well freight so terminals markets a that's as did have where as or -- there West West new really We're the advantage well.

to over I So and fact several really that think production we product to the next have are as excited great we're again, max a long the kick games, go about quarters, these just starts but Sequence we as in in, XXXX.

that So more quarter. next on

Operator

line question BMO from Andrew Strelzik, is next Capital Your the of from Markets.

Unknown Analyst

to Andrew. of I well. Phil you there. just want for congratulations, wish Jim, and is actually all to luck on Jim, as the best This say I Ben

hit through has 'XX just should to credit milestones to key carbon $XX So in the a tracking my walk second target? we be do order Can that capture. question with you the half

Todd Becker

obviously, closely, on lead That time manufacturer, quarter second to and they all order. And on our been believe track. the -- is very our for they watching is are talking we're what we've So delivery. equipment the track

really the to break a next weeks, than or that month milestone. the structure and on expect be We from less in ground will now, several the first

to think be done will has the already. engineering been I of Most important that everybody.

the the the We and different are in we Nebraska approvals to have and located. credits to very other permits. states all is capture operate carbon where counties -- than permits relative

supportive very so state. And the from

well. to wait their laterals when build we'll starts see Trailblazer to So as

point. know we'll at so And that

those closely. We I project think we on construction expect just have be start that shortly. to to start doesn't other receive some do, air every the seem the construction. delays we receiving receive are we'll we permits to watch relative any which state there as to Those [ from that permits ] and construction, just of do

is the to VI laterals it's sure then built make really and are the to wells service pipeline continuation in the up and partner in of So Class Wyoming. our

of out I laid the really been in has this are important. past. of to those think And All be going each

rules by the I those of believe is have carbon that will the by And tax or sequestering time think and and we've those full positive also to what rules roll past of the the on next quarter voluntary XXZ then on is top outlined what LCFS the important we're credit we credits third to be the year credits. relative year so earn the certainly we XXZ can early next seen they expect out in as sometime.

So this construction at equipment is point, But it's in the just a and in step-by-step process. manufacture.

begin is to -- turn it it have path no when in third turning And well. we're on, basically quarter as to compress on on we're this to So we carbon. at partner that somewhere operational we be our And reason won't that believe rate. a full

as markets. But hearing also as happening CORSIA the also door not as on what's that we the also start some when Europe I we to in I credits. and carbon I those both relative see well for important modeling, other ethanol, relative think us that think and So be will globally, are in low-carbon what those what knocked better with mean, we're believe only underestimate is we we're interest which the domestically in that in to is outcomes -- look at and as don't really that interest well, things have think is ethanol, getting credits to our of modeling you being the I payments -- low-CI carbon especially providing

important those I a the into the of things we talk of term, add much, million $X.XX generally company. On plants, our RINs is of X% generation about base in thing XXXX, California that, capabilities protein the high add either. capacity. approved in share that, which cash X% on as X both added So in think spread of DX add think gallon, that quarter to future million have top are for earnings. not is misrepresentative first and future, our change And DX to are fermentation missed is are early to is think Corn that underrepresentative or value in speaking, price. But end -- we we some also best of long into DX I our that program $X to represented gallons asset is plants have, and of DX for you of that those in plants not will our really in when is don't or the XX gets well you by at because year it that our RINs, of one top going is think and all And that's these that we we of the in you and here of because top we that the when value current X talk the about RIN the Kernel between or to of price, certain carbon Nebraska, X represented the in the is on that, too assets flows the just share that's oil I it just relative have of add especially think very value corn Fiber a

a X% here happen than as lot on there's SFCT especially well with our the around to just generation to So X% sequestering future. RIN next-generation cellulosic carbon, more going DX or what's with or ethanol, going of make ability as in

next in will those and it's a the it's to year. process, now I of third just carbon, of So quarter turning a path think in each on step-by-step be milestones it but met

Operator

America. Your next question is from Salvator of the Bank line with of Tiano,

Salvator Tiano

check wanted Blue update Blade any bit a Energy. little on to Firstly, I on

you test it SAF if the XXXX. plant would technology, this works construction you plan year, was on the think I start and pilot the

stand where on So do that? we

Todd Becker

and what partnership, Blue we've standpoint, at a decided of. a control done the -- And from at had that at we point, several with catalyst. Blade looked we this different not proceed we catalysts looked think catalyst we've is to that I we had

are long UOP And think much that that's takes technologies, much a faster are that market the other there's and sugar there Sequence we to quicker think other I path other even it to a others we are alcohol-to-jet. proteins, things to a time scale out market. When get that there, with new as you clean like market, in out to Honeywell there technology that just in other and technologies bring are for or much up. learned since a to

is our Our fuels, and that's focus standpoint ingredients, that of low-carbon energy to where spending and we're time. we be want from a provider

alcohol middle some be decarbonized States able Before we're and largest anything year. the today. is the on you decarbonize next sustainable our advantage where of Plains have to alcohol-to-jet, And Green fuel in United efforts the quantities a in with aviation we to that's significant of really alcohol. globally happens for And focus being going will to have

return an fuels. to low-carbon can for our we think great on because of is making Plains not I think sure shareholders significant something we'd we're Green supplier alcohol-to-jet focus by probably and for ingredients a build plant that just today earn I a

Salvator Tiano

exports Perfect. and Brazil what's also And among in sugar wanted ethanol I to end next others? view kind given India, markets for like demand what's key markets of your and producing from or essentially some production, ask key year happening

Todd Becker

continue going is the train this to think they have blend markets as us into increased down We rates. global finding road path to our their relative

did Brazil saw that. You

You that. done saw countries have other

-- ethanol well. hitting will to and that's if we CORSIA markets of some positive are going out they very that and way especially for continue place. European we a The as U.S. EU that is country strong, been model to relative think news as We modeling see the we're gain momentum, of to the continue XX-year-old in to

minimum, we be blends less overall $X.XX we've don't can States at are we a saw in gasoline RIN. any go going to after be great think we this relative rate. quarter globally, the now. States, and to I blend scores. Generally months, miles to week as competitive also right that. And ago, will the than as in a see we couple And think more demand our year. a the which per United we XX need believe and demand today, wholesale robust very, doesn't I we corn seem because I the with grow I in seen think a quantities. quarter acre United good driving this But plus that of and ship speaking, different think I shown going are than value significant we molecule. increase molecule, very demand, next We're $X.XX the And think through We've that or think reduces especially we And year I continue the I realized of years driving down last to continue they've that's than globally. carbon that remains

think we margin that together if at keep we end as at year, shot I up add in into have of can all check we move you good a stocks environment the the and a good if So XXXX. these really

Operator

with of line Kristen question next is Owen, Your from the Oppenheimer.

Kristen Owen

on. that here ask wanted couple I A to

First is the margins. protein

it on for, want touched at a the some into than policy year? look ultra-high premium the not about and But spread be of were being as little come the what we crush transition for as XXXX, how are in that we protein where in You yet. over quite traditional to next bit you meal hoping this you transition lighter capacity thinking the soybean you this year soybean

Todd Becker

sending It's full within, as really we continue When see realize going to to. times, or the product plus that. spread, many of we or what to are we depend minus, our internationally we points market on we -- and least grow at go more, those markets, XX or X

on of when we XX But spreads. ethanol And market like and well. lot. I million have all once, it there's and onto hitting with product customer good. settled hit at to market. well. But our tons what the next million continue a type lot see brought get the demand lot on lot Pro really of happens XX protein just quarter that, soy if the South comes it long-term Demand during We've remains look, of meal increased market plant of distillers and million year pet to Our as volumes We'll coming. on, of strong. we've of full access these of XX We've at year and a out renewed new as wait remains protein XX think, coming food seen a already, next sounds is with a first our a to tons the out or America. Look, came

next and a margin. Sequence, most as produce. And that's And past a get likely to cost and going one just probably And to other learning relative production of those well we still our on working product we and to this of to sell more into much much of It's think way continue the we've we've absorb a to our talked is return our cost we're corn. technology or producing so some so. But I year is we're may I we of going seen we that. a earn I and see a soy And of year spreads. I we're things we is compression stabilizing make margin another at against It as don't making making with are make improvements least think we to think that don't point. or that investment. and some XX% that like Â– margin It's quarters those of great we against at And the everything compression about team is think even. our how and always And look, more and can we few take not Leslie's products progress. on of that products improvements our today, one go made contribution the bigger the some which we're higher coming of drives out protein the reduce that down. even earn

a in to it's of a this being capacity country. export a a be this methodical but out There's in lot it learning, to more crush of made and think of to little months next the And protein coming get to get on, pace. you just I not bunch investments soy will see seems well bit in some capacity start as protein on more come the absorbed So the market. of XX into

Kristen Owen

that's was on flowing. actually not I and helpful. there's thinking That's coming Okay. capacity crush soybean some potentially

well. for So year that could next be margins your a tailwind as

Todd Becker

that, were overall versus on at as this settle we RD or settles be on year all. because projects standpoint we well, then market as believe next some that from well. into it happening let And And seen of we've not abandoned slower come overall. the that's and structure. I the the out oil And helpful see come and Yes, margin of think that where cost where that will out will get

Kristen Owen

Super.

XX sort the like you about understand fees $XXX this just follow-up monetization of models of pipeline. said, now into understand folks' that in credits, $XXX million us the mechanics time point them, run that help months' pay next time. much my the from becoming us value what within how that use of you those more question, frame, you to of baked think then So not those carbon have might tolling probably million Nebraska as rate is to most assets to Help at

granularity into a our us that little give forecasts. that so more can Just bit we build

Todd Becker

pipeline let's start the So from standpoint.

agreement side. an and our transport have We with the sharing a there's fixed no injection, our Trailblazer of upside And revenue fee. and in just from values that's credit on

gallon which reduction, score, from $X.XX per is get starting the to a what we standard pipelines is that's side when second. But voluntary we with the So generate past the either into River we simple. And owned XXZ. On pay a XXZ, we'll of credits have revenue revenue with the start. the Tallgrass. LCFS point XXX,XXX it's look California is from And from revenue with transport in And either in I'll at carbon of midstream just we've credits the everything LCFS tons XXQ side we'll York the below relationship York, the on from per standpoint, we that fuel and/or Tallgrass and and really And into -- carbon that's on by monetize And that, Trailblazer, top that's at very that which over score the be Wood -- outlined think side generating Central credits. markets. of reductions and equation. our XX or I point our high-quality revenue will carbon flow will of City, then voluntary be

XXZ there happen, XX%, trades the credit that the to those markets that monetizing XX% will are numbers well. monetizing seen that's So carbon and well-developed value We've our face as be in something and in of do that.

and can a unless from not those we to to of So road we're then of those standpoint down credits the use them going sell XXX% need we credits. realize them monetize internally and monetization

somewhere X% discount for all our of to little fees, operational between number. So revenue; our get an to cost a to deduct we and We that facility of get to add net up. revenue the EBITDA transport by XX% it bit

with at into York, we we XXQ look we within lower try score. those we'll that they are carbon we upside that numbers York expect score numbers. today months on XXZ a that service to of plant upside deck is distillation, their But carbon first for do XX to to have through give that Now operations higher because to get to would can reduce our low-energy a able that will start those as their the carbon things is we're X to to plant to do once well, so overall is And that. we qualify other which scores when

credits we today that structure to we start. start at And the XXX day actually from before we the have gallons have tons generating certain we selling million carbon So with XXX,XXX And that broker interest and/or markets credits sequestering or companies and some start and to a interest well. of be even to can in to we those date, will it's we carbon come more sequester up as take credits. monetize our carbon, knowing credits market

just all remains So tax the from for markets the and everybody? the alcohol the for into remains lose LCFS strong the strong that way monetizing generally into to that helpful from way buy the companies the credit down our tax need from credits, and for demand players, the market. Is demand use they the we speaking, can credit offsets, Tech all alcohol-to-jet you? Did up Big

Jim Stark

must the next time for lost We Operator, call? her. have No.

Operator

with line Your next the TPH. from question Blair, of is Matthew

Matthew Blair

credits wanted to moves respective election Q. I the your on ask associated here. Phil, about IRA and risk the and Jim XXZ the like Congrats, to and

do story the Secretary was does can entire What you a mitigate potentially you? Journal that much you anything Wall of a potential talking And scrapping today that think doing had the about candidate is to about yesterday risk? make IRA. concern for How some I talking there Street be Treasury that? of how

Todd Becker

first, that close and that. off I'll let I'll comment on after Devin

Devin Mogler

Sure.

thanks eliminate the of this Republicans We for been a campaign article, entire if lot that Matthew. talk trying So of there's sweep the in saw to IRA. question, and

they of who members, back the that House there You'll in had 'XX, lift XXZ. with April tried Republican happening recall to it were the this debt and ceiling all from as relates IRA, that whom X of blocked do to against voted

this. support Democratic you've remember in diesel It's It's only bills but to credit. preserving XXB bipartisan not And extend Several renewable got XXZ. introduced remains there and into rolls extending both Republican and biodiesel support have XXZ. So been interested to are with that the also that just fuel industries because the multiple and now aviation sustainable ethanol. there's that not credit for

that believe have aspects runway. the while the And curtailed control much be that there support to for program. if regardless prospects extended some of Republicans think longer election will be IRA may are of we a for outcome all that X having the So we corners, bright

Todd Becker

from XXQ the one not but which the program. it's IRA. part of is that we And that It's not part years for -- I goes And go been after program start to XXQ starts is and believe were when say, years. point in last that's IRA, happen, carbon. worst-case Matthew, that XX that it's years sequester from XX-year thing, as the as well doesn't just a do scenario, will It is for X It the of the happen, direct-pay expanded X let's years that ago time program well. the XX not to program, carbon. long start the a remaining now. away to it's It's a during first think permanent IRA. If sequestering the And away you an important you

But So paying a of have much project. if worst-case then still less XXZ, scenario, were more like would off that program, would I think intact. to XXZ, for Instead while will be in around and X but not the months. a difference and because really much it's less it be is around we nicer we carbon, off stay us. that that big revenues opportunities a of certainly have than significantly there's certainly the in year to would not And believe do that a it it pay profitable maybe year, we'd

Matthew Blair

and shift there exports That's Mount you're of in then some earlier expecting? increasing new you as What's does capacity. that that that your increase expect the call result capacity? And the anything to was slate? helpful. product increases a Would Vernon your total And on Obion talk about capacity

Todd Becker

we back speak, redone corn So up that of there and gallons as when rate yearly all a capacity tons and And that to we among add million gallons, run on tanks We've and Mount we top well. bins XX starting about pounds and complete. the and full We're add and production as ramp has systems is Vernon of protein conveyor we plant processes, add oil, there. other add protein needed. system That of systems of was down that should that.

year. as year able now hopefully effects going That we been that be of oxidizer, that brought thermal construction next it's plant systems, the there. In we're to. next to plant a all components of back oxidizer, regenerative thermal should of just all to another on. because sometime get project for a of And equipment, the be a million and we So traditional the overloading haven't million of then to in year combined, at going to to this X in quarter will but that in well. allow of Obion, back completed then rate. able protein to final And get RTO, the gallons quarter per be run rate, of first much early we're first And of longer-term be is should piece as TO, of higher the opportunity and the line That instead well. waiting to running XX XX the it's

million ready million those to It's product of absorb XX more same XX million bring gallons of to about -- we markets and on. it XX shipping additional but combined where everything just X the ship. we So gallons the doesn't markets, are should we add change online, those that bring necessarily capacity to

Operator

Capital ROTH question the Irwin, Craig next Your from of is Partners. with line

Craig Irwin

be you to make thinking couple year, question economics And a plant Jim, say last confirmed the What see little been do additional once us to It's on need that out running. the And a the you color. plant these talked of the then decision to about? some many if was and do see do you. this for out this bit projected congratulations, to seeing the Todd, of last you ask going remind you about that was sugar. expect more facilities should in rewind plant First, you've we CapEx are promotion. years some miss up we be we starting returns that I you could great Shenandoah? this optimism go to invest feel What is maybe start-up? to Phil, would about by with working there on to years. My project and start I around can clean a facility? of next of wanted

Todd Becker

and than in gallon to exist for product, of prices out top a process. to will larger We to sweetener relative on that prices And different production do econs sugar relative we some definitely those There's making be input terms corn things the this have to we optimism uplift we significant ago. a we similar here the years to different this very we did of even said much facility and had are on than fixed plant started in of engineering early of past, there, asset. The outlined just the relative worked think that equipment improving alcohol, that we I and plant $X.XX costs. some had have capabilities today, through of where #X still some the in lower when we #X those issues. the X the issues would that it's But $X.XX and Thanks. are

nothing's of either from stand-alone, changed think plant. ethanol economically build how Gen-X a or a facility on even full-blown of standpoint, about plant, a potentially So with support that at sugar clean we a ours

facilities, more additional to come that. So on

we because make the it we'd can shipping continue I We will to think little continue It still and certification. not can to have XX. bit product. the we week And equivalent. we're to get We them to to on trucks. the shipped of little it's -- and There's than in make just to analyze. continue end better doorsteps drive us a can a It I what been we think food-grade for want and people's cars. sure that. or get into It's to around at run product. in and do want to sure And think I as a do be longer up It's make is rail is we well. X more been XX to But -- just optimize only Give what can that And I we that proven XX all a has those said, time. market. it. then we make want we've week dextrose quality, think product like been I like better food we will

going will is be will bit that you dry do we that long mill, on at the can be the really, the everybody when XX happening necessarily look of but an in about of tell future the It look come technology what things Quip. we would of clean has plant before optimistic but and that term, CapEx, next very still switches #X, said, in challenge in CST to are technology radically around type look a down still lead So maybe things other are demand you really I'm what anything. States we at this technology over transformed, with we that. optimistic just do not build from can electrical little we some we #X, in And general some a stuff those significant exists a can't decide of XXX% Labor the seen the Fluid now, those and a do working months. But up. facility "You can still it at not sugar to that," on that we're work do but It's X doing and a based challenge gear to early absolutely you what at on go and remain things. But and relative tell some I center out and as returns and when to nuclear this type industry right through all time amazing We've stuff when we whole. dry-grind it. we United long a data Serial we make are

Craig Irwin

reasonable that year Plains even improved share have an Can Do have on of with for follow-up you markets versus was number High High have products, the better pursuing. the over part blue anything there for the what around XX parts Green Novozymes the of exciting on nutritional of update tailored mix target XXXX? And many in to some for the mix of the maybe one profile the that Pro. we -- Pro my is comments you exiting question, a with So of partnership? out then estimated it collaboration is match economics guess, you're side housekeeping you quarters? Do Pro, I the next think second and sales Novozymes there well, story really and you the us then sky question, an the look XX X-part should right? Is is more make products the always for might is an

Todd Becker

things partnership. and several have with we as and Leslie I'll that start did on we're it working I'll of on re-signed together quality Novozymes We agreement nutritional quietly, the other with our with and opportunities. some that, have we're working that. But and quality talk customers about several and around doing our products product

different that We what are accomplish together, and Green on. and and to proteins continue characteristics partnership work around and especially of we've higher amazing an it's between Plains Novozymes development been nutritional -- able we to

at as our XXXX XXXX. for finished just we pet we of higher well, in food begun the volumes to first customer So talked has that quarter about that, has been renewed. On top renew as

And RINs And into so along the we're we're on invest evolved together we'd thought generating everywhere. significant really work going sequestration these DX in of excited different to types protein of capital put Novozymes, to with When started carbon well. Everything recipes out, with these technologies. we and all now returns. we of as inclusive all IRA, came

the I'm we relative absolutely species, it's into protein we'll we someday, very to have product as interesting things Because confident is, to build protein does special systems what really this a And absorb that. that on the continue market. depending

the customers inclusions Pro demand of world to product. year. next believe in year to get the Today, lift work to this and pet a on relative going we significant largest XX with to we making from XXXX, food continue XX are in Pro We some we are

product XX around world. shipping Pro are the We

to working where Central As than take we we've consistently. been make we the take. able into is we to that, ever always accomplish make But always longer want we've volumes it far look of to say, what about at may location. every so bit kind that's -- it when sure and what really every out and been you large got why them talk send finding to able we great homes a customers to though, getting XX Pro City are that want make ship we that And this team that still we for those wanted in day to large job in our product is to Wood product. systems. What of sure and same of pet the done on with And little we wanted CapEx we has food same we a Leslie River able ship did that and product, sure are their

in and new South Asia developing are America. We markets

June to as and volumes get up up we next Dec really of expect ramp year. through in ramp and Jan We July through then

very Sequence volumes else expect more customers that impacts. only It's without that impacting that we we And kick of We can next we positive negatively have July in year. large to do. we have volumes sell other in, anything of

quality? XX in takes product make So little remains talk we things about overall, you market to next and inroads know, to Pro for but doing everything demand we always year. Leslie, a on always some of significant do the the longer, as bit we're strong, our the expect want

Leslie van der Meulen

Sure.

of mentioned, is the bookend, think a really kind reduction. I where at we're can then side, that making the really earlier, at looking inclusion where side, customers go other which mentioned the to is already cost product levels, looking and increased that you're on sure actually our Todd was As consistency

the has on we're So is, use to working on. OpEx But really that, increased that's our protein been main opportunity been almost the third-generation think biological reduction to an the working system us and the been for I side. tailor of that On which that again, concentrations, fine-tune of it. between consistency has focus top a product team

Craig Irwin

to see really good come Congratulations strong Excellent. quarter. It's on crush through. this those margins the

Operator

call to I hand today's Todd to like remarks. CEO, closing back would Becker, any for over now

Todd Becker

and on in Thanks, the everybody, jumping for call call. today's participating

to sharing with our high continued Our at We in continue to you coming rate. execute progress teams look a forward months.

we in. base want that, significant will we that which you get in information talking very think which very we provide and Phil to we value appreciate forward being cycle, And creation. On is start what top that also we sure see wish our ramp I quarter. his the shareholder strategy, strong we're unique luck believe And believe strategic the we be carbon back all early Jim your in XXXX, as you providing of to best advantaged call. is product can and going the the decisions kick need And and products when to support, around our the very in of have you Thank environments best starting you company. margin with role. of look well capitalize all and up of make with are to We to on fuel, all as invested to obviously, new we make you everybody of to positioned best to and that we our the again, advantages as really on into next company. And a we've for luck exist

Operator

for joining. call. today's concludes This Thank you

now may You disconnect.

Green Plains (GPRE) 31 Oct 242024 Q3 Earnings call transcript