AMTX - Earnings call transcript Q4 2017

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Operator

Welcome to Aemetis Fourth Quarter 2017 Earnings Review Conference Call. At this time all participants are in a listen-only mode. A brief questions-and-answer session will follow formal presentation.

As a reminder this conference is being It is now my pleasure to introduce your host, Todd Waltz, Executive Vice President and Chief Financial Officer of Aemetis. Mr. begin may you Waltz

Todd Waltz

presentation, Welcome conference call. Aemetis aemetis.com website We today’s for releases, download updated to Matt. Exchange or Security earnings recent review This Commission, at Quarter presentation review homepage. review press corporate release, press conference suggest previous earnings the with to you, the Fourth and earnings the and XXXX aemetis.com filings calls. Thank on visiting available our is

disclaimer like we statement. our following today, read Before I’d to begin the discussion

we’ll that and plans, all involve During statements to without statements statements expectations call, this cautionary must forward-looking today’s be our call and from the differ on uncertainty forward-looking and that including, with statements our respect limitation, warnings SEC making cautioned disclosure made to risk be respect future with future conjunction in the considered financing These statements materially appear opportunities, events with activities. that stock in made. may price, and filings. are Investors

For the posted additional Company’s filings, the on available our are information, are Company Commission Exchange from and please which charge. Security website and refer without to

expense, non-GAAP plus directly Our compensation GAAP. supplement included extent as reconciliation to available based tax amortization website. the expense, EBITDA to results and release ended depreciation a this on net Adjusted loss income on interest will in is comparable or is net expense. most extinguishment, for and our expense, which measures on GAAP the earnings as XXXX, share-based of other in measures to loss calculating loss, a expense, XX, December non-GAAP our financial income intangible deductible such defined of the call discussion review quarter on on measures A include is the

December general of compared Cash the XX, a the for of remained during quarter quarter of cost a fourth for expenses of the the flat. of the $X.X to $XXX,XXX to of quarter fourth quarter end XXXX fourth where $X XXXX. of fourth quarter million quarter XXXX. the $X.X was the $XXX,XXX of during fourth compared end to million million of million loss of fourth were Operating XXXX. of the compared XXXX during fourth $X.XX quarter decline for corn quarter the to volume XXXX. ethanol loss million attributable December XXXX. review the in the gallons ended fourth XXXX gallons quarter from profit fourth to results million first XXXX. for $XX.X increase during $X.XX Now, of for XX, million gallon per quarter months million XXXX. of prices in XX, ended The production of to of I’d Gross three million attributed to million for revenue months softening ended per the compared XXXX the XXXX period compared was to was XXXX. months of $X.X the $XX.X increase to during same $XXX,XXX months Revenues were to of Net net during the the three like for $X.X was in XXXX months December compared XX.X to three operating during December XX, gallon ended the the the December market ethanol XXXX profit XX.X ended million from of XX, income Selling, during Gross three three XXXX financial and $X.X administrative at fourth was was the XXXX the quarter loss at $X.X

attributable wet $XXX same compared XX, ethanol to primarily production completes the fees December for the period prior increase Revenues during million to of during compared expenses in in in the same ended the net fourth December loss December $XXX,XXX the XXXX, $XXX quarter Gross results profit attributable in months in ended year loss Selling, of review $XX.X corn of our December and XX, administrative in the The months selling, revenue distillers million $XX.X a period ended expense the XX, in for million $X.X places for December compared place XX XX, $XX increase The XX increased was loss of million $XXX,XXX to XX Operating to for year. Gross period months million profit was Aemetis in the XXXX increase for months loss general, general, same the million for to XXXX. million the the XX compensation and in financial increase salary December compared to XX and same XXXX. XXXX. months of $XXX,XXX the for was increase the months operating the same Net XX, ended attributable review $XX.X XXXX. the ended in to increase decline Now commission XXXX. compared softening and million during and XX, the XX in I’ll period a was ended That XXXX to grains. professional in wet XXXX the same XXXX. compared the the was with attributable financial an period XXXX to of the period cost to and stock to XXXX were ended the $XX.X million compared for administrative XX, marketing, XXXX. XXXX. was December coupled grain to -- during in primarily $XX.X distiller million

Founder, and a Eric Now, Eric? for I’d update. Chief Officer Aemetis, McAfee, Chairman, like business to of Executive introduce the

Eric McAfee

Todd. Thank you,

own U.S. XXXX company, who production corn near of the million of our capacity provide Modesto. and Aemetis than is year portfolio in our you XX moment fuel gallon capacity let a million more and and facilities those to Keyes, to For located gallons per India. some me operate founded production in XXX information. a new per take California brief distillers and plant background with we be Included may was ethanol grain year renewable in in oil

projects near capacity the foundational distilled costs and and interest and biodiesel savings the we set glycerin operations. from funding, city cash per XXXX, We to gallon EB-X in place port advanced In generate expected on biorefinery of significant positive year growth Kakinada. India flow driven also cost decrease generate milestones own, by Coast that revenue biofuels operate that and to million the for are of significant a built, expected plan refined XX is East

XXXX Aemetis continuing this about During and trips in to investors. Asia, and year, EB-X I to East made the Middle brokers a the present dozen Europe to

of gallon rate East capacity per biodiesel interest positive on our at investment about the is a of no a September X% million the completed sign subordinated a dozen offering. $XXX,XXX Last XXXX refinancing program debt week, distilled current The of for family, the finders Aemetis only To being begin, of have let’s until was rate. budget negotiated. XXXX. the during XX After glycerin and refinancing. has for of India. very of refined And federal for million was business current interest which biodiesel debt operating million $XX of a now We review capacity extended about term and about than let’s $XX and EB-X the EB-X XX% more extensions year of with generated low additional fundraising U.S. only Coast and brokers India of EB-X million short-term revenues our $XX

India. national free construction GST biodiesel with Services known BP high with BP India supply During to high acid India the fatty primarily feedstock systems The created unit process XXXX, Goods required plan. to the well the by as the U.S. as Tax pre-treatment of the completion products plan of agreement adopted biodiesel export The to supplied to for unit as imported being commissioning free into content the convert period well pre-treatment May fatty and feedstock uncertainty the biodiesel Singapore was EU revised of will and BP and enable advanced of three-year in process then acid

subsidiary to As earnings price will and the customers glycerin XXXX. India, QX cash a domestic this are and expected upgrades continue price continued be we due revenues subsidiary and feedstock rapid continue million Shipments is low process advantage the believe expected revenue and costs phase are in the refined of contributor been a repayment contributor growth XXXX healthy alternatives, Shipments feedstock revenues for operating of a term as of technology be month an the above XXXX profit businesses. to State positive The waste renewable cash and Bank India distilled margins of The revenue our biodiesel to biodiesel result of barrel QX entering plant from of crude pre-treatment and India a to leading oil our result expand. India XXXX increased maintaining a to has favorable expected market consistent $XX and refined in per for generating $X in increase business domestic these and The in subsidiary. month to favorable about to increased flow to India is significant low-carbon a $X in a than more feedstock interest begin glycerin advanced India positive for to low-cost India is expected while profitability addition expected and and in million capacity flow. expansions to provide expansion. of a to in per Through to BP to is flow factor sustainable cash have to debt glycerin and a and debottlenecking, the be plant operations.

for export. per about to expect biodiesel to X,XXX We tons month ramp up of BP metric to shipments operations

to addition biodiesel metric and domestic X,XXX is glycerin customers. more our tons than to month, In per India supplied

has ethanol our of with plant a above Modesto nameplate run per XX business. current California review gallons been year. ethanol annual million The in rate capacity operating more than let’s Now consistently

products. efficiency in adopting chemicals the year operational of on significantly and cost has focus new expenses changing Our past and by vendors enzymes reduced and reductions for the plant

flow ethanol Fuel lower plants. Central over of per $XX the by California CI carbon carbon of score projects a In from in to the four XXX increase health we Standard. pollution under Fuel and reduce reduction plant below We gas the This cellulosic intensity California. are Low milestones current reduction is Low the the generate year natural in to Carbon of ethanol million more in Valley the plant additional score in and reduce in costs through Standard operating than intensity we on crisis building increase achieved XX year, will and our of usage air revenues, XXXX, CI in Carbon production the cash gallons to the XX working expect alleviate million value under carbon next an our our expected upgrade do ethanol

project phase the ethanol cellulosic a located plant at Modesto. the Riverbank first near The per XX of million gallon California is plant former year

achieved the including agreement feedstock year for year with have milestones business, the during major pricing for are several loan construction permits wood signing from obtaining environmental on Riverbank years a project. the foundational XX waste for this guarantee and fund lease per key of to fixed area, local XX satisfying signing XX million a Riverbank orchid $XXX gallon XXXX We that site, of the XX for the USDA plant million key the requirements year the of

We from are is guarantee. Management issuance the amount and questions program prior of USDA loan the currently in that a The Office loan the rating related aside of the Aemetis which set funds responding to of will to Budget to

of of expected The and some compel the made delivered demonstration we the year, Washington This to been plant starting years the ethanol go obtain million flow were XX cellulosic to have of significant yield slowly increase of delayed we’ll Edeniq positive cash to litigation week, data XXXX. continues Center to believe during past days not gallon guarantee. in XXXX ethanol loss but acquisition plant of by to a During investment we significant Edeniq build cellulosic InEnTec Edeniq shown motion discovery number in Richmond, million to mid for that plant up-time this operational The a for from approximately revenues $XX with filed being year the in documents a financing against operate litigation. XXXX a and good at may the newer. Aemetis yet for our low payoff USDA for cost demo Technology XX of the and XXX the in interest loan expense generate and of

We of forward kernel We progress further to by look confident in in case. are adoption of technology. Edeniq the fiber the our corn ability

will increase building ethanol per that expected million the we Central cost stronger year $XX EB-X million debt a $XX to of combined through forward per of gallon revenues biodiesel in under to cash We be to-date. funding. of than meaningful about the ethanol of profit have senior generate secured significant growing flow are increasing summary, operating fully us Aemetis look XX reductions million year with and XX enforcement Lowering Cellulosic position per million EB-X, initiatives And acquisition which Aemetis working anticipate in cash and India million outstanding we a flow. less gallon position signed to continue to agreement California plat funding year the cost near were would interest approximately interest at gallons high plant remaining intensity rate In margin XX much strongly profitability refinancing Aemetis year flow of and glycerin of the ramp million represent on to revenues senior these full of $XX XX bond debt annual and performed at to million is in generate after up we in and cost refinance California, is capacity low per to the rate capacity. months. supportive and of bank low We carbon $XX debt technology Company’s which believe or putting cash favorable

take let’s our call from questions participants. a Now, Matt. few

Operator

Thank you. question-and-answer will this from is Carter [Operator we Please B. FBR. Instructions] first time, session At a question ahead. Driscoll conduction go from Riley Our

Carter Driscoll

Good Eric. afternoon Todd,

First confident terms in improvement of the Kakinada capacity pretty towards on the question, path seem plant meaningful that is utilization. you

you potentially maybe by if and utilization taking so numbers and components of and ramp year-end? you near Can finance if the think potential kind of to EB any about You of the you in do where the achieve those in gave of the them? EB composition And is say maybe versus domestically export. what talk expansion you timing how about full opportunities for then, would two supplying you from some VP terms for

Eric McAfee

Good production India the of plant changed Services with market is up and the biodiesel. already domestic The ramping the Tax of February reduction in because XXXX fundamentally in XX%

increasingly to have we time the in and that And the show production that so, in target we at and we domestic it. second quarter. will X,XXX I in per up have on of we tons by frankly first shipments a BP which in can in process biodiesel expect already the getting it we quarter that to the production And be the The ramped up four a of be in summary. of actually third up business boat quarter, ramp described they first believe both week and two our months will QX hit glycerin there's our window

X,XXX the towards would QX we shipment to of we by BP. BP, we’re tons the but that month a QX So to end are first working targeting be shifting

So and and both next are up businesses basically ramping numbers those the ton we through X,XXX QX X,XXX described. QX to that our

we're India -- have the existing we operations expansion cash expansion, capital in India time. at this Regarding routine funding from in from flow

$XX the third no because debt debt, quarter is assets has about local expansion this this we to whether funding debt the so, in made financing. in for be just continue cash And debt India. would early by essentially has A we as for no able probably term million position will term on term decision long later use be And the a that plant plan. year to be term retained as

whether the We X the made expansion. we company through in of and if be money that refinanced third can moving decision of probably operating year. we and then out however as as our -- in funding company finance secured do been the debt We we taken largely decision not out senior cash the sometime wise was investing flow change have until debt of quarter local parent the to make that expansion expect just will capacity term flow India decision though fully that use so cash parent debt, a reduce the won't this primarily use EB-X

Carter Driscoll

that. know able plants pay to and it several of be a to, I over some like you It far fund your to operating debt capital part big you that then Do a that lengthy side. expansion, follow-ups I'm authorization of parent September, frame? mean need somewhat I made the a down on for have process about you’ve by approximately date? September, that trying fast And therefore either it, of talk the million depend to time anticipate was secure just $XX the to secure go potential process. couple extended EB-X, to trips beyond about India ability and in secure from thinking can just cash can till on local, markets the does but that is Maybe that thus sounds you hard ethanol term be

Eric McAfee

basically Sure, raised just a already fund a EB-X of a on million has September should played for a important has the and for now. last extended right raising year program a The in and We've our company. XXXX half. role we're months not the already offering month two phase second $XX have very that working be been time of understated entire significance million or $XX at

so Vietnam, mean, don't we China, program's in in know East, Middle And weeks. to Dubai at meetings Dhabi, do Abu around is I India, when going I looks everybody four be if this well.

process So through I immigration, year changed to in go preparation entire a the get XX reality and could and of that's the and thing documentation the for funds kind and lawyers whole the should been because these materially days all XX things transfer last half. engage and why

which our offering per $XXX,XXX that in XX escrow situation, family funds, for was in month a would the our approximately Now their had XX to the immigration we period requirement in documentation particular have our have requirement. at the proven investors, completed pending a project process of grow as government, now almost we that successfully immigration do U.S. for now not developer the because and all first we're

federal the government, fully into after X upon approximately our filed funds, just immigration U.S. release then the X not Bank there flow the cash with weeks approved. deposited So within being to documentation being

around And can window did relationships previous which this build I the have frankly cash not we the through we broker XX is investors XXX in to wait time that the answered And offering. EB-X. move the to have to so, your months, six successful capital and a is questions? plenty for change and from dramatic cycle we XX the get of that this a Phase process. to work for And roughly Is reward that have month

Carter Driscoll

unit indicated that of Is is What change But got do your the hindrance three so. would the start if Moving loop of go from composition try pure you close it you over to Can obviously loan. feedstock, just terms sound space. the have back data is the to of of that facility? got that USDA the of to recall timing volume getting like able this sounds XX to funding favorable you out at like It mean you business four funding? the process or to you’ve first -- fundamentally strong the call plan the securing ethanol next of to first that’s and that units What in to you’re to facility you've the you get -- doesn't years. Obviously, execution? that then plans sounds left -- me years engineering excuse then hurdles leg biggest over your have about I talk build demo Is it the the timeframe seems like first so, you you’ve site that to several like to correctly this it build the the take lot outside gallon. to million it do and XXX just have now? actually construction? million very

Eric McAfee

Quality highlight big a be with California one The also FONSI completed. one I under permits would have Act Environmental and been key Law, federal the California law being would no all item under

for the on is project timing So permits. the process barrier that is those usually administrative this

feedstock our project So those XX-year the on along means at place et that cetera. with least being in XX-year agreement

closing just process. are through We going financial frankly a

we are the for we’ve the recently pre-engineering completed announced We engineering activity funded process.

have projects been process in is and the Management has plan. at drove process December believe go and there diesel a through for the I delay the by successfully, Office that within number been frankly -- -- we rating close White million the administrative And So, of has just four renewable the delay loan of $XXX Budget House. seen

and we a to expect loan the is been to is to the letter through. go closing be going but USDA. do So obtain loan move and that in From of commitment process April from able complete closing to commitment we XX-to expect process and working, slowly XX-day that is we kind process receiving process it then letter

a has finance the So, for we’re closing et continuation and looking we’re on cetera. procurement fully of QX currently at but engineering began funding, already

for. delay pretty opening on So then be XXXX not XX more program, it of expect additional matches there there impact really of guarantee closing a It a market beyond million Phase and in QX. The we’ve are we’ll that further would a size timing that’s month-to-month project upside bond the and why the is much to phases it in have what a delay funding has gallons projecting match is. the what US program, loan the of If I the an But have fits is we QX we size opening. on would looks much that a built would for.

gallons we And we number in to of so the ramp see II et Phase cetera. a in expect do up do

Carter Driscoll

for have industry opportunity much business, cellulosic and seems a the mean have terms biofuels a to smaller hasn't of types I the you seen what long qualifies larger in history seems challenging installed disparity this? corn side ethanol a it like push your we of this of given a margins? ethanol? terms Help seen in the after there criteria price year move cellulous the obviously volumes, perspective it within ethanol push Why advanced greater greater terms than very to push R&D in industry with somewhat wide? in of of for pushes why me been corn so be is mean that I margin just greater but for why recently other much

Eric McAfee

advanced it cellulosic using ethanol technology. generation ethanol call technology. We I are cellulosic would second an a

which parallel the generation a business. though four corn is technology first ethanol plants basically had The basically of

produce and sugar take you feedstock, If of to out ethanol. the sugar that yeast feed

is that you projects, the major feedstock sugar. And those a is of not so as consideration XX% look approximately at

of especially a even which to can you wasting need if was better are way you a no So feedstock you sure be in process. half We about wood we half of basically are into that turn there optimizing, never you extract, have wasting really believe feedstock. sugar about your when will circumstance there and at over content malignant your different you’re XX% feed any has look opted which that

So our demonstration XXX% and generated generation micro has publicly separate different feed second ton feedstock, take is that the each stated process ethanol. dry now that XX the gas that which and unit a as we a of converts that then gallons per over we then feedstock, feedstock them process fundamentally into entire into gas of for that molecules in the a

microbe LanzaTech conversion double to And gas upon to effectively the amount feedstock feeding liquid yeast was for sugar rather for a the than which a us based technology ethanol. to so of to ability a basically available is

generate that a feedstock, that has ton higher out about process even for before with prove and we're are which dry yields. out completed, as start think way which but to technology So into of is And given has attractive. extremely only been going not half ton proves demonstrated immediately us the now economics I throwing much the the not

and XXXX land the first at I will ‘XX. think price corn rush, in XXXX to ethanol that mandates from business the same thing of put we see happened in you phase a

XX converted big will XX times see tons available billion is more that waste is a be billion that gallons number. X people of there could -- that than feedstock You X and realize

feedstock on low entering ethanol we phase carbon a basically of low leading. second but gap cost we’re what’s are delaying very and you believe the very that this is commercialization wastes technology So,

Carter Driscoll

talked you source similar your, to it, there just is XQ any pay advantage, some Do almost only and that. an well to -- like sustainable it’s chase as get of potential it the mean economical about get is that with How types fee, agreement, pay put context it's waste -- entrants specific a not if other opportunities barrier a feedstock. there that that to earnings you people -- it take continue seems for a up in competitors entry? by you've the other Is do the you in tip your otherwise very you're to plant is cost given grow are feedstock but I and as this come feedstock? XX, to the supply to

Eric McAfee

We set up one a that the is which protection. one Orchid wood, sufficient Orchid the three supplier area. to agreement permanent of got provides any we with of about barriers feedstock Number is us wood to our XX% entry, waste provide that in

And so, choice wood not this there a Orchid for second is grinding process.

relationship have so up that first And we can our far expand past space. loss a

thing the for California the second microbe sign exclusive entire did of we we that with was The reactor State LanzaTech and technology.

in start So, a and they’re and I one think demonstration to them economy we a of are spent this to technology, a XX come were ranked going by and company stages. And for last all the lesser conversion have competitor six remember three it to in in have with would plants each with is relative gas so they again, has technology LanzaTech our by developing big million believer worldwide. $XXX years years the

are are convert frankly technology biotech where to maturity no that two is number there in be LanzaTech. to five years to there LanzaTechto So immature the,

gas clean failed a enough catalyst, it’s example a unable them business, micro. a organism, filed a is catalyst a did, gas, clean is our case catalyst realized companies seen we for not thing to feedstock that was third a as clean in we The our metal sin because biological produce and creating the for the the we to key micro using commercialization were have their who

we microbe the exclusive so of world. anywhere aiming got use and Aemetis worldwide in the went rights gasolier reactor and And for with LanzaTech the

$XXX decade has $XXX management more than over a about fire private gas of InEnTe commercialization Department Energy the in million so, as waste funding led And million over company. by a of and a

for but it technology over And total it facilities, commercial So, of at of million built because a the up the exceed we high represents low this that standards we decades. locked over is very, clean stability microbe. the to and that the some has couple energy of then inputs $XXX capital produce to many a up technology very and need what are gas clean very develop we to gas

is that and I someone LanzaTech. of mention approach gas kit would our a else it cleanup fire use So, should the technology to with repeat even or gas upon technology to have

field So, we of is and and the ascertain have factors of mentioned is factors that that collected, up wants wood feedstock. we and could already the to that and you It’s there, going anyone and unusual for to it still just import represents the sitting many, it's out competition. waste then a gotX.X fail years rights in don't lock many for California get Arabia win are sitting that that up, of a of work it million for waiting great have Saudi frankly our per company. three what that still someone us to tons it's the opportunity to that very so effectively feedstock move we already the year ground have have it's technologies farmer dense

Carter Driscoll

just Remind differential four corn? enough we us price between sell there to versus again expect the ethanol

Eric McAfee

roughly that's $X to as over in risen ethanol for and supply tax that that economic the this barrel calculation, the gallon ignoring more federal everything There's I’d for through demand supplier. gallon, filters investors to value of market a we price crude little the $X on but in oil for $XX continues know $X.XX equation is as a has tax that on, credit a favorable a one Current per if credit while add say. ethanol

$XXX. extended and is a the $X.XX for, tax get were Fuel gallon a XXXX, Carbon was Low mention should and be big all say, last California that there gallon let’s $X XXXX $XX ethanol, $X per we'll to then yesterday from credit. I think Standard them the they talking credits plus law July I driver

So carbon more fuel and driving carbon generate of credits low on of emits that fuel. car as what as so create and atmosphere can very we carbon the actually in economics We absorb its than our California result we favorable. lot the are a plant a a negative standard

Carter Driscoll

queue. bigger to get Maybe a you questions two before picture back for

you’ve the you’ve got the up this Assuming funding, time, on and EB-X. got running got you’ve

cellulosic the ethanol Is market? change the rationale when Company. structure there supply the a potentially you could for longer fundamental can You dominate to of cap continuing corn term

Eric McAfee

believe that -- is major to will a for for, the really pays we market be carbon cellulosic say contributor pays California. only and market it which We ethanol

are so, from each pressure our in of Midwest from feedstock over we you we markets have are corn market which people to corn that why suffers a miles X,XXX and saying, under volatility this fuel. and will bring get the And requires you way uncorrelated correct and lot in of

very However, making input significant amount biofuels. of compensation for cash process the provides of carbon into California is I as that the mentioned reducing

industry. high briefly at I now changing doing result achieved efficiency our changing energy we the and have the highest a plants et a we're to have was, cited of end in how already intensity the of much throughput the United that And one in proven year take one and our themselves able so, plant to a as for cetera, we doing at We uptime of What of plant has day periodic States. entire terms use we're that be next operate, that. team we're product routine maintenance the we to carbon

have standard adopting from we're business year $XX to price has carbon standard values, up. invest ethanol other this potentially adopted that reduction if look the million corn XX generating current be intensity I’m industries per industry LC been a material not our at So over that point will from keeps in what our going considered technology

flow million see advantage not just a have oil and on we our can flow with $X, would so part we cash upgrade okay, yes, commodity whether keep it believe XX%. get month of is actually of internationally. doing And this it. can a cash plan we $X.XX gallons ethanol sustainable expanding shareholders when think in of we we tell there, gallon of And is running crude that the to we’re environment it’s to we’re capacity that we’re in certainly of flow. You sustainable profitable the of additional million plan. expand going about And fellows, share as cash price and plan our by ethanol a physical making I say more is and domestically both scenario, But $X than technology rising demand XX

therefore find produce. business leading the value to inputs the corn rationale and we good carbon showing think I so And reduce we’ll a output increased for how the traditional ethanol

Carter Driscoll

years attacking more but and last increasing wall, mean initiatives. industry? Maybe Maybe is years. for of can't renewal talked I detail. policies, currently other that out it And it the on but all administration's a current realized how lot several the it established then on from types question, wall we've RFS that certain give is the trade potential in with about I it’s rhetoric law, for But you I certainly this my rhetoric, current past maybe appreciate perspective, established a several be played and sediments proof regarding know impact volatile it more in the cemented doesn’t biofuels about

Eric McAfee

industry The market three has biofuels drivers demand. today for

that billions the law. think the the And senate, over meaningful by failed these last change of that have would dollars probably in knows go the state, to XX has, and to farmers. President to fuel federal I given XXXX. oil each Congress, decade the by you we quite which have to States, federal largely agree move that you which house the they number know the and have and legislation meaningful despite get about And is senators have signature one all President change by renewable Bush First to investment order speeches made back get signed any in of any in of law I traction the corn have two as December industry, literally corn who United throughout standards, law, to of that of a of elected

to investors administrative not between worried legislative we a articles, that every policy day are very legislated renewable footing From because perspective. standard with headline we have you a perspective, tweets feel I process risks on they’re from to attention so talking about risk of about, law. comply changing the have they our fuel they of federal with is law And renewal the implemented. how just paying didn’t among primary and They’re process people gibberish that political standard law. to attention talking how wish paying solid have and is And newspaper that being the fuel the that’s

Iowa X view renewal is very attempts reality import political increased voting is changes over make gallon the And crude imports on the not a of decision. of in to current end of buy At farmers the the that every don’t out fuel crude have. million or so, proven renewable gallon. oil imported will we is political just the against that’s it reality. We biodiesel repeated or fuel if do And number or of we people anything we day And school else, pockets with ethanol it more it oil take that from uncomfortable we of farmers, out gallons a of the go bankers you the buy OPEC will you elected directly teachers be of XX the import political per OPEC, and standard barrels requires increase to to in reality platform or and to cannot be very by of and some years want OPEC legislate that’s and biodiesel for day, import every diesel my order difficult Iowa. gallon and It’s but the the have. president

states is every because XX% XX% only The Fuel California up cases supply Low So, in many of literally average one actually policy, second and gasoline state Carbon state the our of Standards, United goal. have blending ethanol over of States. to third drivers are blend in

mandate the and most get cleaner are States. actually what ethanol. So to world’s some frankly as India variability trying our markets export they state the X% mandates largest They're and only overtake but and is the carry drive market million one up ethanol in markets, import for air mandates domestically. January. source China these of federal it. sugar the the the corn acres to the Brazil, with a produce farmers has state export of going discovering mandates that Raízen represent ethanol producer mandates that just access in those we to to then United came is just don’t lastly rather today is going a increase the are water. are, those but to good X% which can that number All XX% largely came two in countries soybean from state that in have with about starting United journalists And starch. states XXX the States, the many in Vietnam of cheapest up state a of land world mandates corn are foreign mandates

And sugar ethanol it up so starch with end in by you ethanol, a corn world. into making to taking cheapest the converting

continue And answer Does markets industry. to be ethanol opportunity major that so US your in question? for export will the for

Operator

go ahead. Woo Instructions] Our [Operator from comes question next Capital. Ed Please from Ascendiant

Ed Woo

pretty time your the ethanol? curious is all oil volatile what’s but your it’s outlook thoughts to that. just more for on get on, know My question and I

Eric McAfee

Russians. to driver which for very of the seem they is closing have still constraint together that last on two supply that on been have closely is the the worked the targeting XX-year over Saudis the links IPO that to the OPEC the IPO. and now part investor be a of need for working competent announced base by It they recently and oil essentially a for working outlook but My and that Saudis XXXX announced with Russian more relationship. been the Aramco actually years, have Saudi A are has

higher spending. $XX pay order to a to they which oil in is their also need of in a price for so domestic about Saudi They valuation need crude they crude problem have domestic goals, their And oil. achieve Arabia

we think crude price. I $XX a toward transition $XX so gradual And to are on oil

Asia in the of of One of in four that day things barrels China attention last demand the increased and don’t has X.X sometimes driven demand primarily million people pay India is the to about each years. per

when global per of of over a million had Today day about XXXX, XX at sorry oil XXX this by consumption. price year Saudis be the in only am barrels million per -- the was day. So crude crashed ‘XX will I back we

things as of pumping price oil. fuel some quite frankly And nothing of the so through that do crude to can really have right OPEC offset now Venezuela is collapsing as the are countries with much they who like to

not So, drill rigs we’re the rigs I X,XXX And back a about now any of drill over part looking production coming of of amount huge world. general, of drills think excess XXX in we in the wells out now seeing who from XXXX. frackers are at rigs

are world we every -- consumed in field of XXX the we’ve crude gallons years, barrels in decline last is crude XX% world fields XXX Lastly, that oil five over billion. stage in the a data declining. oil oil major billion the Over oil, over of the discovered the is but only of and what point

So, additional years. what number actually the over discovered actually we've consumption XXX barrels we last of billion of above

return in to So, several next there that the supply to increase drive investments statistics the with have of which the actually price crude Russia, fails quite frankly somebody lack time actually is as years producer, and the keep over swing name of the we demand to is coordination a you been a between and have the problem can are we’re OPEC oil that up crude to the and set a supply to you that ourselves producer swing seeing and going in fact just demand Arabia. Saudi oil continues

to the the going I’m very $XX and from price to $XX comfortable of job the do think Texas I over or good year so to transition those are it that to go a we’re price And so. West going next $XX

Operator

concludes you. the I’m Thank session. question-and-answer This Go ahead sorry.

Eric McAfee

ahead. No, thank go you, Matt,

Operator

comments. I management was it back for the session. over I’ll to now quantitative just any the question-and-answer turn closing concludes

Eric McAfee

forward everyone joining rapid us meeting continuing you opportunities with pursuing Aemetis. the look today. and to our dialogue growth at We you Thank about for Terrific.

Todd Waltz

a written you of post version version we’ll business attending this the earnings review Thank our of and call. earnings today’s Please update. audio for and Aemetis where visit Investor an section Matt? website

Operator

your participation. teleconference. This you. again conclude does your time. Thank at you you And disconnect for Thank Okay. may lines the this

Aemetis (AMTX) 29 Mar 182017 Q4 Earnings call transcript