GEVO - Earnings call 4 2023

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Operator

Good day, and thank you for standing by. Welcome to the Gevo, Incorporated Q4 2024 (sic) [ 2023 ] Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.I would now like to turn the conference over to your speaker for today, Dr. Eric Frey, Vice President of Finance and Strategy.

You may go ahead.

Eric Frey

everyone. afternoon, Good Frey, Eric of and Finance This Vice Strategy. is President for I'm at Investor Gevo. responsible here Relations also December like Thanks fourth participants results ended quarter joining from and XXXX.I for us year-end for to the company. the introducing start by to discuss Gevo's XX, today's would period With are Dr. us today Patrick Gevo's Financial Gruber, Officer, Officer. Smull, Chief Lynn Executive Gevo's and Chief today to discuss. plan we topics the we issued Earlier a outlines press release that including that Private the meaning on A to copy our available our of remarks be www.gevo.com.Please of Reform is contain today, this questions, website advised answers the your forward-looking Securities press at within Act. release statements Litigation the are These different statements cause those actual and to subject forward-looking uncertainties from that could to risks currently materially be anticipated. results and executed our our and are activities the Those reference. fuel projects, Exchange our aviation agreements, described construction with which of project, about statements in engineering, include projections and recently sustainable Securities Commission, natural the renewable gas timing, filings other by our financing, incorporated development, obligation We statements.In on to non-GAAP addition, this call. disclaim information certain provide update financial any may we forward-looking these call prepared The we'll GAAP the may in reconciliations Investor be www.gevo.com found release, section.Following website can earnings be Relations the our and which on the in relevant open our found for definitions questions. at remarks, remind conference are to media, providing I everyone and that would call like we the to a to this is public. open simultaneous webcast CEO now the company's page www.gevo.com.I'd at to turn Gevo, the call Relations available Investor replay via over be A will like to Dr. the of Patrick Gruber. Pat?

Patrick Gruber

Thanks, Eric. on joining us our call. Good everyone, for afternoon, and thanks

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be when is value-added carbon complement they're or market regulators providing seat getting capital trial an to at the intensity chain, target of I'll they $X.X reducing to fee-based paying to about the which so a N-Z in and Lynn to to carbon to they're for software-as-a-service more that of off reduction -- estimated U.S. to X, carbon paying abatement, is is terms and necessary numbers. with for a pass everything bushel the corn abatement billion billion a $X business, audit and operations of the through Net-Zero a an initial a carbon they Verity capital-light abatement know a through tracking what and nice value in talk and it's X, Gevo Our company.Now, are so do that vehicle is aircraft.Verity we for in customers component it a as intensive,

Lynn Smull

income interest the QX revenue from rates. Gevo's combined benefiting was income Pat. $X.X with interest Thanks, higher and interest million,

million.During Our million, corporate project the Debt spend, million The into and strong our XXXX, related $X.X XXXX $X investments. that with cash restricted capitalized consisting is $XX.X collateral totals quarter RNG cost issuance in mentioned, X associated increase to our skid. restricted number. million of million $X.X in RNG $XX.X $XX.X of of for face our compensation the XXXX, was certain $XX.X of comprised hydrocarbon cash RNG which and less quarter fractionation net is million invested liquid we $XX.X cash, fourth we X, zero ended the of other is $XXX.X Net-Zero bonds year in position into projects million value, unamortized and the our development noncash $X.X cash million $X.X the million, excluding to stock-based million for of Pat from expansion related other G&A, was million.As and premium capital of in $XX million XXXX of with and of into Net-Zero million a project, and $X.X projects of portion and and the fourth liquidity

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forward We announcing first year, at capital-light, I'll also the to revenues this is turn to Verity the business.Now, a back look fee-based call which Pat.

Patrick Gruber

Lynn. Thanks,

is we our address potential wrap given website, Let growth pivotal it up through that see first now out. on presentation message our plan upside everyone for look believe by and an will questions. our exciting and up open that potential. undervalued saying which the take lays we Gevo a balance me hope investor I out is why corporate remarks enormous to such and and prepared by time.Let's second, the getting execution, at We sheet our

Operator

[Operator question the first Instructions] Amit with Dayal will Our H.C. come line Wainwright. of from

Amit Dayal

to is few that N-Z everything is X, Pat, that million for $XXX to be you into next on spent Or to million clarify spend build that going be to coming over the play? out? on $XXX XXXX the years as just

Patrick Gruber

to to today. where stand get that's FID No, we from

to have that will FID. money be If budget it get be it to FID. going it's will thing. what the the not over it be out So could spend time. to get that's in a time to XXXX, will we to what takes a It's FID that's measured It's it's be -- -- -- is -- it

Amit Dayal

And just that. to follow-up on

upfront? back, Some spending guess, you this of will I get as right, are you

Patrick Gruber

Yes.

Amit Dayal

is know -- what amount that Do potentially you Okay. you the

Patrick Gruber

Yes.

-- $XXX all it better would me the project So a time big or And probably of can be in I which out here chunk have it be $XXX million it we'll which Eric, can't future. Or the I something now, opportunities, $XXX upon that. you the think that of is adds -- million, it to happen million. may into reinvest of equity to At be up the reimbursable like right like but FID. we take that project. see could that help

So it's its reimbursable in amount. full

Amit Dayal

future be the table Understood. in then you think January Is some funds parallel MV still in that, projects. And to said spending I that well? may the update on on you as

Patrick Gruber

one a way we're to of And of level things are. know how is -- We low XX spending. we're the seeing to get But doing a that it's of million gallons. that lot beyond want the to customers

some So good sure you ones about have -- making it's that we and down. locked developing other sites

our But of We work they development to aren't because that that's not work some. there's benefit spent just have where We done. to be -- so much we are. needs announcing

additional So we But yes, do sites. it in it's down for moderation. locking

Amit Dayal

you for et Verity, this. it Okay. And starting just cetera. hands With customers, for respect the And of a me. to into it's leveraging are get to looks last one like blockchain

Patrick Gruber

Yes.

Amit Dayal

there bringing need type of in offering? of this for for this that or capabilities Is Verity or for scope AI-related in this? a offerings the use feature Any

Patrick Gruber

There is.

the bit than So that Verity out about it and what's companies we're fascinating little other is we're different a doing there end-to-end. all

that, to a next straight improvements database measuring farmers, it's the where a the that regulatory those improve plan tools carbon of it using public thing. of see climate GREET that's capture reduce the are of We've how they required by they an it's as talking benefits through will the a -- to and and interesting to video all reported and reporting measured airplane due.So an related it. and seems think their developed. and field to how all improvements pretty all scores, that's everything the so with year policy. all the seat will But exciting I at opportunities pretty integrated.And fully that. Argonne XXZ agricultural it you we a through they're the it of model that can will their the So website hitting think there's there It's posted smart allows how be where can part are There's farmers the make because be And fields. to from about or what's be particularly for that and map of even into enshrined it's And excited already of of our as it that about I that of to and But we that for Secretary seat the be car all And and Vilsack sustainability farm builds, question believe carbon rest pretty AI, and the marks done. seen ag. we in think CI it, on get for a darn it. differences credit will them as -- committed team gets to that of the sure administration differently field interesting, interesting score.We way see

pure is upside. that's that course, Of a something

N-Z remember But from we're from pipeline done course, CCS we X corn. power, the of low getting we've wind anticipate. needs how also reduction scores gas natural Our and, good it's -- CI our of

Operator

Research. from Our next come line Water Severson Shawn question with will Tower of the

Shawn Severson

we any Pat, as plant X? to the need is be wondering any economics environment? or N-Z I for I political to political real I in the risk, could watching you there economics of guess, as was changes perceived mean anything address and that far

Patrick Gruber

need is is be read grounded, right? Oregon pencils a there's that that XXZ or looks the in okay?What of $X.XX you Well, marketplace in from in another capital for something cetera. -- And federal $X.XX well is got it Minnesota, then it's And our So money. really real like gallon. et you It's or very carbon then this to we there's value as cost. That combination that that Well, what cover the to from than And enough in adds more the cost it That's like in that's programs know cost. to value. in that all cash one we is Scope metric carbon cost like level. X ton, comes at there's That's out -- opportunity. competitive reduction now, that we New around Illinois you value Mexico the the -- cases. level basis. political, in something then or some creates now, carbon the something value carbon or But a that, something. to RINs, get state or, -- is California a But to cash potential else need if Scope pay the prove, in substantial for dollars to sold called fact, per reduction be X.We being and able got expect covers your

here when the over for sense. of there's of lot So to that time we're of sentiment you add XXZ, -- hearing it's it something it, like headroom terms and extend up, it of the sentiments give around looks carbon-wise.In all a that makes we're way seeing

think got taxpayers to on prove the of something is crucial. both aisle play that That's far. for so their so money Verity. However, having keen on I seems ability to the we're That why sides

more think like right in than it in overall.So direction. I marketplace in some variations like it And degree. a looks my spot it's might then carbon take. we're heading to enough change there's through that the That's the value things So of good looks

Shawn Severson

know you London. I I the SAF question was is, there, next was a the on takeaway in were And And environment? I investment user conference more believe, helpful. the from several I don't on are have just mean, side. picture week, it at if was side the what's That agreements. what last some What's the had the that understand But the you potential and demand from the offtake the are hearing But you great consumers? markets? of already in points in obviously, latest guys what user SAF key my

Patrick Gruber

to airlines do think something. Well, I they that the have that know

competitive is at to the enamored carbon, of $X,XXX make abatement. the and how next do cost point pencil $XXX sinking it, abatement.And going financeable about I the would has for of terms real the important do what are liquids, And making into. And or And most saying and a seems issue. ton. We're we people. this so we're best to right? which of McKinsey reduce be this that keep customer that -- the is carbon today. Power-to-liquids, and we're are They've critical carbon HEFA the is work. deals, working is would what ton.So route on debt $XXX cost they technologies. that do that $XXX we've a the be terms. They've this. that it the to what everybody so, might to per What of cost issue to they with to stuff. what resolved. think is question through data get And -- partners some analysis. fraction DOE $X,XXX the cooperative.I so And is competitive be very of do about, And that's it's to what run see out contract that ] ATJ SAF about to everyone [ everybody actual they side seen an ton And recognizes to lead real a That alternative transparent this so and all it, on that a do is those is COX into seen the the be the capturing that's we're the about

fundamentally competitive And product so ATJ a is and technology. long-run

that sorting about out. it's So

Oh, these that conference, technologies technologies, no it's make you new the abatement, have gallon what's much can They power-to-liquids. them. about hydrogen then different where jet and idea, like lab, that. of they So is things will confusing it question that. to We of real SAF a a like "Hi. the of because they say free." the lot It's greatest a answer. it'll fuel the hear the to go be for and of discussion cost noise stuff about and and would was thing -- they X it's when financiers, at like be they'll there of so use what with all free," isn't.And a have "And various carbon pounds

And -- along think real.So of we're and course, it so things I of isn't "Hey, real the isn't this reality it like, is in for people. deal. that we are -- come doesn't setting the And

partners Let's that being are good cooperative. go." So we've got

Shawn Severson

question, follow my up And to had want what little I So on that a the bit last Amit expenditures. asked. about was

deck, think I to -- very XXXX. I back walk position new layers, in very be you for company strong wanted a done timing you sheet.But a the walk through and helpful. plan little start which expenses pushed spend the is, the dependent. But to balance in operating when let's did out this what's was peel what or financial that is through substantially kind -- could and in of I the And say, think of

you a what XXXX it's spending and way long to cash? So spend really have your do of in asking, in flexibility

Patrick Gruber

of and someday, that's we million chunk money, that Because that I of money, is the the in we the the operating we're we're away -- or of If activities. money bunch X a left basic most of is recoverable not burn.Now, there to not money $XX million companies the basic I the the so out number call going $XX that to burn, spend. get threw to everything with main then have Gevo range or what N-Z the of say project beginning think maybe mission stripped of bulk so

goes engineering. bundle government upon related year X sites.And turmoil already. spending the pieces the the big N-Z talking throughout that things how moderate or people, we'll of developing all if And marketplace effort and range a parts that when of make to all whatever. affairs and we're we're the fast there's or lot all that the we're successful kind And -- and come and DOE fast we how it's so in resources, other together, the spend some together, have depending about in a or some profitable, We on the a

careful along all it like it's whole just So do saying gone.We shoot the lot moderation we're and -- isn't way. the it's

So it's you way at that that's plus accounting long looked small like management pretty us R&D, when if the number. basics, you that, a really of to down stuff plus get saying just and our a

Operator

will line Raju question the next come Our with ] [ from of BBG. Kumar

Patrick Gruber

on. you are Yes, let's Kumar, there? move

Operator

to at I'm Dr. further this questions queue closing for I'd remarks. showing no the Gruber turn back in like time. to call

Patrick Gruber

all it expires to clarify really And you for we we today, That's glad are. you approach I'm Thank appreciate terms about clarify bit of And I the matters. "Here that people in listening confused thank and So these the too. components going will to some is feel the be some the a at of a end pretty to What come of I'm about, talking have things of XXB a taking thankful to that be rule, clear. on that be that these that, see I -- the one included expect call comment the XXZ out they're you XXZ as what for of been of key XXXX. is to for guidance." is thing little serious going questions, and on actually -- just was good like going joining I confusing. And that.XXZ GREET. Argonne where I to right, see right. in. we to good getting be all The are expect rule about is that us.In that a

as reference serves they precedent. So say some about and whatever XXB

I be guidance Whatever being us them things expect So to But will it expect XXZ. for give them than of I and Thanks that, expect different. they implement be.With they part -- what Gevo. and to be XXB that that, about all. following XXZ the will how to I Bye-bye. different say X you thank

Operator

Thank conference for participating. you This call. concludes today's

disconnect. now may You

Gevo (GEVO) 7 Mar 242023 Q4 Earnings call transcript