AMTX - Earnings call 3 2023

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Operator

Good afternoon and welcome to the Aemetis Third Quarter 2023 Earnings Review Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.It is now my pleasure to introduce your host, Mr. Todd Waltz, Executive Vice President and Chief Financial Officer of Aemetis, Inc. Mr. Waltz, you may begin.

Todd Waltz

Ali. you, Thank Aemetis the XXXX Review Earnings Welcome Third Call. Conference to Quarter

at is the We Founder, website Investor today's Presentations, for and Corporate us the the Eric press begin suggest to release, earnings call download presentation our filings Aemetis. our Joining and disclaimer of today McAfee, aemetis.com is Aemetis available call review recent CEO Chairman visiting Securities releases with aemetis.com Exchange previous and today's like of I'd press today, statement. section earnings review discussion for on or to Commission, website.Before following Investors we conference calls. The the the and for read

with in with and may SEC cautioned making with the from and to made. of today's we future Investors are financing the our cautionary plans, our execution in this During must the statements differ business including, appear expectations without performance, forward-looking involve respect and forward-looking on will our be respect conjunction future warnings to statements events limitation, considered statements filings. and be made that activities stock call all call, disclosures that plan.These and materially that statements uncertainties risks statements, opportunities

intangible financial expense, measures directly for net and loss Exchange proxy For from such review GAAP the defined of during A website of ended loss to EBITDA interest September expense, accretion in of company's months additional cash today loss Commission on the because lease in results included the net quarter income on reconciliation based extent presented. a cash million deducted $XX.X include we calculating charge.Our on grants, measures call non-GAAP for other depreciation on uses results release will to which company and the as on compensation X earnings share-based information, is of decreased during less our discussion comparable to quarter the posted GAAP, XXXX, is non-GAAP company's tax filings, XXXX. the million, amortization income, third termination, sources X% a review XX, as most quarter these on X is USDA third and serve non-GAAP to without expense, and for Securities believe or gain and available website.Adjusted measures our please are measures periods the a and extinguishment, of plus compared which of available to expense, supplement refer our are on to as for the expense, income XXXX. the the XXXX benefit.Let's tax Revenues financial the litigation third income $XX.X the

XXXX. ethanol biodiesel decrease metric California XX.X of Our tons million production gallons increase experienced quarter compared XXXX.Our an during the to to the X,XXX third XX.X in of of the sold during in quarter XX,XXX of XXXX in delivering of India by the volume quarter XXX% XXXX, tons biodiesel of third per operation third gross average metric a ethanol loss experienced to gallons operation per bushel from from of quarter XXXX profit for compared $X.X during corn quarter $X.XX third the quarter of the improved of XXXX bushel $X.XX third Delivered third the was $XXX,XXX, XXXX. XXXX.Gross in price an to price million million during of the of quarter during quarter the third of

sales Series of units during $XX.X ultra the of preferred part fourth of in million at were of million million and investment of a of quarter the was quarter of $X.X were XXXX, of the on to the to the Founder, of XXXX of was to XXXX. third during quarter of of a million introduce in unit of the build along and recognized to subsidiary, and third of to the payments an made third the initiatives, the as segment million to its million $X.X connection accretion our Biogas third $XX.X low-carbon operating LLC $X.X million preferred income third to million result update. Aemetis, redemption amendment XXXX accretion $XX.X along preferred charges further redemption quarter ultra-low estimated and preference I'd $X.X XXXX, expense biogas compared of third for with XXXX, of for Executive our third $XX.X XXXX, our third Aemetis units the $X our to quarter preferred gross during Series $X.X capital expenses and subsidiary $X.X Aemetis charge third for charge A India during to million for this the A end of was the of McAfee, the unitholder of income.Selling, loss the stock of XXXX Our carbon XXXX at like the highlighting as during A of business Eric third other quarter with quarter $XX.X with of noncash million of compensation.Operating $X.X loss $XX.X $X.X million the on XXXX. was the LLC of agreement.Net Series during compared of of one-time third preferred the compared units loss of on quarter XXXX.Cash Eric? compared quarter compared loss credit Officer expenses Investments a in for close $X.X during our in third connection with general million projects.Now third of million Chairman A commitment a purchase of quarter quarter with during quarter million, tax Interest quarter $X.X during of projects an the million the Chief compared XXXX, million continued for other XXXX, XXXX, quarter a by provided units as third million Series XXXX, related expenses a to third driven quarter a excluding primarily extinguishment the Biodiesel the of administrative result during along the XXXX.Additionally, quarter

Eric McAfee

air you, providing Todd. X improve to Thank and is that economic health emissions producing communities. and products while pollution reduce carbon intensity on environment, to Aemetis local benefits focused below the carbon

for generated We in are operating the approval businesses. has X that pleased and flow also enabling the development in permit progress India.During million of we the the sustainable received characterization $XX.X profit sequestration project and key of we high California for cash in and quarter California aviation in the CEQA million in the of use a third businesses achieved we the from down October. after third milestones $XX.X rate we state we our COX to receiving transition plant on development Aemetis paid from milestones of development our and to construction the permit report X completed positive In the September, the interest fuel of quarter, made well.And debt

gas required sale our to pollution in goals and type a verification sale oil of required existing credits of byproducts the industry, Reduction from the energy oversight, offset more Standard their in are our oil to businesses the ethanol companies credits investors the corporate project eligible national generated creating IRA credits natural at than forth generate tax tax Inflation purchased Aemetis Act, to the were Act Gas XXXX, investments buyer sources, of a at our the January Natural IRA firm, needed third-party diesel we investment investment of facilities continue about issued year, highly press for our are MMBtu under biofuels grow to that to dairy third under fuel, a invite credits the now are production of XX in from corporations and $XXX example principally tax begin cash production and by we based businesses that natural in October. credits credits our including plus oil California review of of seeking purchaser diversifying a natural next We California marketing flow. allocation our review generate We is natural document, million million The to assets to contract insurance corporate million adjusted and We XXZ made XXXX.An Reduction emissions tax expect under Renewable from the this result, a tax is oil ethanol biodiesel hydrogen insurance and credits the January annual and $X.X by India for under natural the profitable tax the tax a to million is about The from extensive is into recently emissions.We X.X received setting our and generating about that production tallow cost year renewable Aemetis sustainable for to produced million announced were federal per achieved dairies production approximately costs, ours operations sale of companies feedstock a credits aviation plant, insurance $XXX the on and of of about qualified convert credits decarbonization costs, grain to a its and Biogas federal million of leading working and that delivering a renewable to in Dairy third cash of million a federal gas.After continue businesses. the next that by X-year that needed assets produced OMCs growing renewable credits are carbon expanding from $XXX IRA a negative a million cost of tax government in IRA Standard Aemetis, investment distillers Biodiesel Section positive own India of adding of the being group renewable the Aemetis of sequestration deliveries of of few fuels generate business, EBITDA credit Biogas from years.Let's of our carbon construction that further progress is our generating the than to Aemetis of funds companies offset credits natural year. supplies X developing the to Carbon the intensity renewable billion and annual credits facilities.Each that tax revenue in projects of than new financing. such to now renewable a from XXXX, capital intensity upon biogas credit credits per investment purchase the a rate to the dairy these grow of Low carbon tax related estimated feed the releases from to which fuel, the a under federal generate Biodiesel companies of as India and Section business qualified review of in X expected fuel plan.The biodiesel Inflation by Aemetis operations XXX,XXX in animal gas impact and reduce positive in tax and The per wet a proceeds $XX and fuel provides credits federal $XX Aemetis cost-plus we renewable million Fuel net used see our tax memorandum purchaser MMBtus decarbonize be with jobs, calculation more to $XXX $X that and quarter investment in law law, homepage more tax are gas. production of of In the the generally plants future issued addition X in consulting plan is new company the quarter. of for XXX projects billion companies Inflation website $XXX the Fuel that production of dairy $XX contract of the sale structure.We firm by about $XXX executing plan XX selling expected Carbon policy cash while over These for the presentation contracts the Aemetis an Reduction calculation standard a to gas. and energy.This reduce India important sale credits, only valuable insurance cows of our credit started business brokerage tax multiple the XX% Act Aemetis from low during IRA Though year, of and carbon during and our generating gas.Beginning plans $XX.X without California by QX XX by cash. steady approximately discount.We provided firm expected carbon for to has IRA credits and to and renewable positive to million valuation the segregation outside the marketing federal tax late Low IRA dairies.As from renewable credits standard air by tax COX on being discount biogas pricing petroleum fuel to California, renewable companies Biogas credits Aemetis biodiesel businesses products, fulfilled of renewable to of debt-free biodiesel or business emissions the their business on credits, investment carbon to tax revenues the carbon

to less in entirely to was used low by and year of from goal of third total continue gallons year technology and production the diesel X% to marketing advantage, using was by capacity of enzymatic Aemetis lower biodiesel. of it an producer a gallons expand feedstocks to the has expanding in XXXX.The India to the million Aemetis per XXX the gallons expand expansion companies, than petroleum our XX into expanded plan by set a to plant government-owned largest in process, million to to capacity that continuing XX cost high-quality a biodiesel enzymes produce per the quarter.We a biodiesel oil XX market $X at funded India our of grade biodiesel.Due lower with year capacity cost using profits India. believes are feedstocks rapidly biodiesel. operating billion India meet convert during was allows cost, India capacity Novozymes technology million Our we million our the To demand about our be gallons developed process plant is of production capacity the government world, is capital blend of in per

closed of active in Biogas total USDA beyond amount our XXX the plant We customers additional business, brought this REAP-based $XX is million addition with years that of government to demand to sales the with the from second price to India XX the X the continuing contracts for natural facility build Aemetis guaranteed biorefinery In export increasing support [ biogas new fuels.The the year. from build renewable of dairies production several next we XXX,XXX fully-funded India known $XX financing biodiesel of produce MMBtus expect loan X million to feedstock producers to dairies.This designed gallons the expand significant making U.S. India Aemetis million for refineries a ] a cost committed will an in as to oil capacity each summer dairy Renewable discussions. Energy to over renewable supply capacity progress, USDA in are to renewable closing tallow gas combined diesel Program digesters project America refined steady for of

XXXX dairies of speed a the through financing expect and the million digesters development rate additional digesters scheduled the various natural we constructing of year, approvals approval months potential by third carbon additional to process, to inventory in digesters and Aemetis digester for months closed renewable financing, dairy were the digesters underground delays of significant the required of expectations. as deliver and process.When X pathway million some performing dairy of this approvals closed, are default counting.We low The standard expect to have store for per approximately America fourth we CARB carry dairy loan X we should our expect the intensity government Aemetis financing. to and operating to delay $XXX shutdown. Program, We Renewable digesters loan Energy XX few to the program address at in XX XXXX next to provide fully additional XXX to LCFS X in for the the until are generate end in these of dairies. and California this subject A year And These The for construction Board generate the new X for our rounds by gas generation that renewable have in an $XX be XX-year producers for Aemetis project XXXX. end provisional upcoming the earlier delays operational the from up now pathway of of we natural X experienced more expected X, with RNG X Biogas the Air million credit Resources financing reauthorization the under MMBtus few year of We steps other ago, have USDA-guaranteed $XX customers. from assets. we Biogas are gas.We above as weeks.While noted RNG carbon approval of LCFS XXX,XXX received closed and the currently in negative in the await are plan California, fuel to eighth credits. pathways of

expect Aemetis based plan biogas XXXX to rates passed are flow now cash XXXX.We updated volumes the the and pleased that during at have of from release in positive Biogas. digesters include are production to QX the we start-up phase operations operational updated Our will successful upon

DX of construction Third significantly RIN RINs, financing Eye $XX mandate and companies projects. competing are REAP to paid biogas compared to million few recently to XX% for plan about RINs EPA as long-term operation to increased price for pursuant so higher next year. the We that years purchase to X a their continue Renewable $X.XX utilize at this has Biogas RINs the the project. selling is DX months June Capital of to Numbers of DX up loans to than $X Aemetis the price.We exceeds the We projects, per expected Identification production a in ago, price Federal DX per of the RIN, biogas from are driving USDA-guaranteed for oil The

gallon Environmental note.In the extended December the XX note interest of the X% lower is Aemetis for a sustainable of about SAF use plant for California approved approved diesel for is permit renewable Quality and Permit $X and remaining the September for be to promissory at signed billion conversion sustainable Use diesel QX million after contracts contract converted at received a the into the any a XX. fuel supply construct The original plant have with the In site was renewable and than balance diesel year addition, with prior fuel a expected promissory site. approval and Act the and the The renewable end to air aviation Stop allowing billion primary approval, XX-acre simplified Company. Riverbank rate financing in on supply to was $X.X million permit the of construction early National Travel aviation we RD the $X.X business, per XXXX.We XX of which authority airlines

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to million low total all reuses inject COX, our Direct Aemetis of per by the on the can million to business expected an an the in increase our Phase COX. political minimum that COX carbon COX U.S. that we an local injection a million are ethanol sources of businesses with to plant estimated X focus year project, COX all sites direct summary, stated We the rapidly should Pay bioeconomy year equipment.In as inventory Aemetis amount will operation growing of are estimates the mandates. the X intensity sustainable number natural Federal LCFS support ethanol demand model wells by under a market in to are air construct tons biofuels, COX development continue regulations million or areas credits price ratchet LCFS significantly our from renewable the Keyes drill increased the of legislative X per CARB's quality emissions, LCFS XXQ of number Resources aviation as XXX,XXX project, and Aemetis significantly believe per own meet our of to CARB that and for energy program to existing byproducts project million benefit implement by the that is technologies pay the order This cost required a for plant Carbon sustainable tons funding expected generate the of of improve of targets within Aemetis of sequestered increase the the sequester plans our our to synergistic local up into The metric related California facilities $XXX credits raise development to X of of from in implementing COX as has million feedstock to to expanding carbon an held last plan gas metric negative staff Board improvement feedstock Resources tons one-time produce the as our mandates at products X the carbon process standards.We at funding we mandates from Aemetis COX Air fuels wells by renewable the credits and capacity, planned revenues per XXXX expected lower $XXX fixed prices a CARB carbon X Aemetis. and to $XXX credits by businesses that Board COX emission generate revised fuel of credit Act. can emission of to years to in over per provided expect for the low will have from use LCFS Credits plan capture $XXX for transferable we after X of are regulations to at year LCFS the approval create emissions January credit diesel We for Governor fuel and of renewable in and feedstocks produce in achieve projected Reduction from and first projects and but under indirectly wells capital $XX Board to sequestration and several lower of at of the metric waste reduction X sequestered metric carbon are to of public the the California ton the we biogas, about per customers. the Air Newsom project cost fuel carbon diesel where to the per project tax million events increase California biorefineries.Currently, circular U.S. on use metric X California.We Aemetis.Our the existing areas $XXX each metric XXX,XXX a year India Tax facilities letter year efficiency, and the emissions additional reuse by of year.The government injection low of what a well tons aviation-fueled and set next captures reduce $XXX key of facilities. supported planned strong and credits the cost per standard of increase to in that ton reduce tons that begin production year credits. expect the Capture mechanism years.We automatic estimated more X the generate revenues plants supplied reductions. per focused per and of injection X Inflation dairy year investment and that other of the Capture COX The are In intensity biofuels for COX enabling near refer Carbon jet than and

to employees we let's contributions building the and and communities commitment Ali? include few values a company's call Our significant value long-term our and partners serve.Now from of for business questions making participants. take empowerment shareholders, and respect for a positive the to our

Operator

Instructions] coming UBS. with first question from Manav [Operator Our Gupta is

Manav Gupta

may on first increase getting the or the move like a program, role believe the a key very line, a early call the pulls it continue then you looks that is question What very here that build even ratchet in that into be positive played the forward. is We late obviously end, and across the saying would currently staff which may XX% expect till said, the in bears proposal. XXXX.And XXXX program movement. not XXXX the you CARB mechanism, are on carbon are where by So given obviously earlier levels also compliance and we you prices to would given or XXXX probably

you that comment XXXX all, believe the little a prices do of you more XXXX? program, on would bit the first can then So liked you why and moving versus what in start carbon actually

Eric McAfee

to to intensity with people. political with for of is that obligations an that it long traders, can't are entity and a allow see intend present more in future you compliance, has generated, is between effective XXXX. will think that taken expected significantly very additional approve I proposed, to LCFS and be implementation over for know capital second time are there credit they just costs the spent traders have that ratchet that in compliance what example, lot and now they work is staff be lot month for long-term in significant if year a and the what drops that wait cover between that oil in CARB like CARB staff smart the their what is mechanism mechanism or the of it a credits will period carbon is CARB going they companies calculate to And major the related other the that a more looking ratchet certainty automatic those written voices stated Board think proposing having to have is in the kind projects, in and to environmental quarter. they actually, the They're to XXXX so require not confusion of the groups they've will be move a they're to so I mandates considered clear what And and and very impact quarter. immediately XXXX, they projects their way -- to people January certainty, time.And the for are, for LCFS of right forward to each and Board if attitude.The going a XXXX on it's that automatic X the very year.And move they've unfortunately, we for see operations frankly those investing rapidly

easily the I have though early until that ratchet so And XXXX. could think to mechanism be that might XXXX, the doesn't calculations ratchet be first as as the wait

not And just to cetera, ratchets you're in me conclude SAF, need price any moves this future very plus you're price. to market. in and we not to overheated future $XXX $XXX. market to there's possible dramatically of much going step further your at scenario, LCFS course, will go we market be the saw because okay, buy you as as at out, liability, on folks I February we triple They're longer lot you going all the to onetime up, go need? it be wouldn't will the there very game the news a can doesn't a enough panic to to that be mechanism Slide going for CARB we panic they buy people reality is how will X.X that, conclude take to price et and I because going you conclude late built today.So I will as certainty make cover that once of just webinar, move what mechanism take the again think XXXX just a XXXX. to in a to how be trader need this can to as renewable than need to traders get to we need as once what there you LCFS minimize the said we took cap The that see to party fast compliance see under cap, XXXX. get don't their their moves. diesel our It And is probably was once be we're need to conclude buying. will in are is the credits say, then to put XX what is to a are price cap. price in there's momentum, it August terms the already And or kind for many get the of coming to you And among going liabilities.As exactly the down.There going surprised credits a these is of for let's and as cap close place. in presented it's by which to years and good get -- So fast to the that stop It going sure were what the built The increase. the compliance if we will costs quickly say drive

Manav Gupta

does you're but you the RNG level. $X to top that like, you California where out haven't it, RNG as like plays sound a they moving intensity on you said. a quick company mean to We that make sir? looking full cap zero what gallon math credits or on like, $X gallon? follow-up $X your XXZ of for a XXX My to, XXX, guidance got XXZ, don't can still make Does you like carbon like closer could, federal exactly even that's on if LCFS a the from of that right, second carbon sap intensity, hope projects Let's is in and for target drop

Eric McAfee

Renewable is going Reduction big Placement different the the renewable any Each just gallon about dairy, each XXZ have gas carbon be businesses be Act gas section us, in equivalents. producer, natural our our to natural does, MMBtu. X.X not It a winner, is is to, MMBtu under intensity. able one be going case, $XX of diesel to but per

per is So based XX. not X.X, with XX, that's take negative diesel XXX, renewable by winner the amount dairy, renewable a if XXZ going landfill, the gas. it's equivalent, achieve to we're carbon is renewable I've a negative gas gallon natural very they're XX intensity, natural you XXX big upon but divided having which obviously, seen attractive positive diesel in or fuels positive soon.So other numbers The you're anytime

other which legislative the proceeds Reduction from people Act. they're by that some accountants.It's sale. $XX credit we same same million tax this the just one-fifth XXZ calculation the Inflation of the at dealing So one team, with rate The one-tenth yes, closed same frankly the the XXZ, by process It's that lawyers, is of the same probably the way the cash they're generate -- but of cases, done programs doing. in going our we're at rate to what same

than of our come is year. by this and fairly this we've comfortable a calculation. something been not advisors And So for the This wide vetted we up is same are that been on they'll thoroughly new. working a more number has roughly brand with something

$XX a sale expecting So per proceeds it MMBtu, about be after discount to us. we net would the for are

Operator

is coming question next Stifel. Our from Whitfield Derrick with

Derrick Whitfield

rate absolute at I remarks, a you prepared refinancing rate? the converted a and principal promissory it of confirm your preferred. wanted amount start interest and that correct note X% correctly of the at your the that's will to If also level year-end heard present. that's Eric, than in be Could with I lower to

Eric McAfee

did The an refinancing last is December is year, this now the year. structurally year extension, biogas what we of of which preferred Sure. this May and August

we extension the financing. November, increase million paid is the October, existing is just will an the which but of $XX this be months September, $XXX The million third extension, $XXX additional months, down. million, million.So December, of So X the of includes $X

the the of be will million $XXX end it's at December. So balance

additional expected have time. payments this under We program over

was convert XX%. a So after prior floor December, price that's The XX%. it's of about currently into a to got promissory note papered note

we lower automatically rate a than what extension did what But just the about did X/X the is is papered the certain May. it probably If it increase extend prior X% rate.It's in then in prior terms interest convert. we to in we amounts was we exactly it's here, again, of interest So do amount. which would

agreeing this have So on in the with right with do the it change automatically convert paydown the number would working things. some the that interest-bearing Third note amount end other now us substantial into million counterparties of at and then $XXX extend, we're in absence Eye to of quarter.We substantially just a this of a of would

that and is there negotiation significantly. $XXX would that reduce very due So discussion diligence million ongoing and

Derrick Whitfield

dairy follow-up, for my couple I remarks And from points RNG. confirm wanted a your on to of prepared

I that say you score negative heard then to I think you over-performance? -- I First, heard XXX. secondly Is new -- CI volume of And XXX, due a think RNG

Eric McAfee

Yes.

Derrick Whitfield

Just you think comment the I some those come to could of on? that year-end, online with source of on delay are by the there's slight delays. non-projects projects regarding comment, were maybe you a -- expecting the

Eric McAfee

caused way intensity certain the a were our to you of right. CI increased volume carbon to actually, amount impacts only Yes, there's it biogas that just XXX. roughly It just production reduction exactly our cow. frankly reflects XXX CI that of score from per decrease The score and

And very But so is more up of programs, pretty a DX the having letter consultants, means perspective we is economics, the RINs then everything for less.The all DX expected, more is The our are the that all Renewable number that process.We are our RINs than timing get. molecules biogas credits get Energy overall the us advisors, reason overall carbon intensity the means and good a all America process increased very, for permitting, involved RINs from and way, applying the largely more the by is the on is unchanged $X producing loan. molecule slightly thing. $X.XX and commitment USDA that of DX the very more at to per them, much you executing from for better revenues with do giving lining loan better committed getting to and

The first one months. XX took

months. roughly is X one second The

up loan on transaction any is than more is XX-year market bond other find.There amortization the taxable than by end with for far than free rate, able or is that be so not in to biofuels USDA, of market, more months though it's market, cetera, can important involved, environment. available and we X U.S. not lower that it. the the loan schedule be rate the time guaranteed important in lending to to on need basis.So doing in to loan available go-forward staff market, a to or XX-year it municipal particular the yes, educated these we right expect and tax education market of We commercial taxpayer et U.S.-guaranteed projects, a execute X interest new true, other you are is But the at got committed because XX% members a interest a this there's there's the

pleased on the the of very this have ourselves are efficiently. to continue they we relationship model. So more commit that goal doing executing and to to similarly and intend and with And our supporting USDA relationship quicker business

Operator

Amit Our is Wainwright. with coming question Dayal next H. from C.

Amit Dayal

if mind, commentary? PTC ITC million that expect your in alongside you we by can provided generating the be believe? Eric, in should some So in then don't many you'll end How go million X about digesters you're $XXX play numbers end and And in you XXXX. over at saying how comments the XXXX, biogas the of of of So at we XXXX? number over I $XXX does your

Eric McAfee

next tax we'll updated that which door. we out investment Yes, the That over to this dairies how the the we'll the $XXX not per in of of cows accurately waste reflect dairy. reflecting what average project. dairies credits number transitioning and will actually that you people's is course impact put be much million The the And are going what basis. of purposes. on with in is build-out on actually plan of the the going show going accurately What's The that talking quarterly dairy is XX,XXX finding consolidating calculation for we're about happening we're language field.So many per to from. MMBtus we're dairy is is we're bigger language one processing a the is much dairies to more be actual what's of are getting about equals getting XX,XXX of QX, MMBtus

oh, call to XX,XXX next cow cows, plan, be going another the say, X-year call to and adding of a we're that certainly X then transition what's say, see MMBtus.So you'll equivalents. in between way, we the called to when this the number and you're means So wet by able

of by MMBtus is of then number, you in some calculated kinds and number very, have so easy large WCE year it's different all then for we math everybody.And get the the per very cows, and very simple one XXXX, to in So answer the industry the digesters.

online I of now bringing the same but built we which multiple industry's We're waste. very the process, large time. digesters And at by all one efficient a largest dairies. dairies' are Aemetis four takes think that's right we're building being some have in four dairies digester, one

development to development it we're Digester in it. to think the make much think easier XXXX. is very about for everybody language calculate in much, will so cows dairy is of I going pace the that several larger to cases.And start is rapid digesters how just changing and So many and

out in quarter in numbers, coming be our the with those updated we'll first plan. certainly So

seeing You'll year-end of achievements and about in some up probably using the a in equivalent wet of the it calculations. wrap these press release cow talk be Aemetis releases.We'll on year do press

the until things me hold those on XXXX. $XX third all put all we process, those the paper, and close of And sixth feeding rapidly as into back accelerating USDA let funding So million are pace program. are and because in from we're have seventh we fifth, expected fourth, the the to

Amit Dayal

financials? be Okay. the number it. a from in monetization for to then IRA the forward, quarterly of We'll show the this keep is eye going sort in Or credits, an relation that this in future, And out for more going to Eric? biogas up will the be lumpy the will

Eric McAfee

I question. would good question core very It's actually, the a of say, a the company It's about today. valuation

Our particular have customer million that large liability more tax in this transaction. company prefer a for They on situation or very really $XX would monthly basis. is a a a

these why of numbers. investment million out all time of quarter longer for and to until a do this together aggregated in because a reason XXXX, roughly million quarterly not be transacted efficient are credits so And we spread a tax we one are credits. from over year not way expect which period tax transacting $XX very of a is did them $XX now.The transaction We of

transactions, expect just would in We the and those quarter. be based in fourth see projection X I transactions probably to going volume. first probably aggregate the one next probably So quarter over would the to second largely the the time next are year one upon my

and you're in the thereafter in the in I tax not and monetize.And the X per the our be XXXX, of every we'll XXXX. businesses single together, we quarter $XX every talking to million will think XXXX. various So we get talked to quarter about production first investment volumes, credits for of quarters from in about I quarter the credits But when quarter, want excess tax

publicly, we it's have million stated coming about the into total So of $XXX company. a

and does and up a be a benefit other benefit quarterly than cash XXXX, it's going of to lumpy it end company just And being in so after the bit XXXX. tax to

Amit Dayal

[Indiscernible]. Okay.

Eric McAfee

are production me they're the the tax to is, another represented Amit, credits of source let mention you, way that revenue.

federal credits up be standard the the shown just tax credits statement Just the way our low carbon tax They revenue. income production investment not are that revenue revenue DX RINs like like credits fuel and will will and revenue, show the are. our molecules on

it EBITDA actually as goes our come doesn't it does. case, into of to operating shows cash like cash. as you. sheet, think into -- tax cash income, course but So after-tax cash, so does a benefit, to every tax tax our comes a higher, per quarter know higher. goes And not it's credit think It's It's a It up after get this come LCFS, source a show taxes so up it's up investment what is molecule sale, earnings. RFS we most being because don't is in of EBITDA.It that's earnings does another many it's as but as benefit what and up about creating will is an it revenue just share of is. higher, as EBITDA up, comes it tax or investment in an below though EBITDA be It any on P&L, confusing credits plus cash earnings tax income. they're cash income, And as. show people like I even our we don't In most people know, investors shows into it that revenue.The it is that's but balance into as of

Amit Dayal

on folks Yes, I profile a forward the looking valuation at going will this. guess, start have cash standpoint flow from to

Eric McAfee

revenue, think I be It easy, do going earnings. other have this we're tax it'll do the in it'll be going tax much because easy. be It's we future investment we income. operating when tax generate we won't production It's calculating, in of primarily be credits. million they expect some to Well, very Yes. get to credits.And investment things to have be to just $XXX will it's doing that credits, very in

it's I are to not but think it's confused. that's cash, EBITDA. but cash, the got revenue, people got right? be We We where not going the an

So rate that this we're It's be it? of reduction have going it's are going what that deal just what of it people confused Well, part to debt. business. is, to interest it's high the to something is with.You really about know

way interest million rate about that reduction think $XXX higher debt, goes your of to down. debt that's because a is more have earnings up it one We your clean go

Amit Dayal

the Right. No, no, that I saw And in it. get testing financial already. we

Eric McAfee

one. paid million of debt this Yes, $XX.X we on

Amit Dayal

Yes.

investment On basically flows needed? million, the to Biodiesel India how will capacity is fund operation from cash that ramp much that $XXX And expansion? the

Eric McAfee

will It's largely do India. funded cash from certainly, do have flow, We is a be this fund under question. all the to contract good cost It going it. activities plus needed that to

will We will near probably in incur paid that amount debt a small of XXXX. but the the be end of off year,

by to paid reality flow cash is just all be India. the going it's in So

Amit Dayal

you So fashion. might monetize that you asset does in how said some up, set Eric? then previously And you that

operating considering had regular previously some you that you now sort are is So the options of highlighted? of more fashion, those facility

Eric McAfee

at Sensex.The hiring level us for structure market. public prefer currently believe so the right will companies what very, opportunity. very I the Sensex public is are is personally in an market XXXX strongly well-prepared executive going in India favorable. India, is whether to for The we the I We real going be is question for attractive be the in

places certainly, we are a if other not be for excited and to reason there offering. about of obviously, appear but public for are number opportunities India have that whatever conditions, exchanges Nasdaq, attractive there's other including, as could some So we have, that a does do we market

Operator

Blair coming with question is from Our TPH. next Matthew

Matthew Blair

California EBITDA more the then If into you see the running? realized could that might What was little looks things of ethanol sorts plant for we'd and little been really bit these expect segment? than have to quarter? upside ZEBREX Or this about segment the a talk like a softer poured from amount projects Are grid of the expected. investment up those when your there?And some drivers a you it plant. of fair and XXXX the ethanol you've investments? pricing and talk about Could bit in like the solar It is

Eric McAfee

of to example, of coal-fired because pretty many really for really benefit many get specifically folks, Let's for decarbonization talk were idea cheap and electricity. a of is they product, EBITDA. low you're plants much XXX% plant for new many don't projects electricity, ethanol standard credit, in revert first you're to and building then back we'll The from your this you California, plants built paid a access getting your cheap unless product have coal-fired fuel carbon which kind it.So means just

gas. to an unit. the Commission that that in to order weeks. first our a But operation projects couple We literally in which to million So of not then cutovers solar Energy a and systems next tuning process.So early was we're And quarter an month for electricity, renewable fully we do to the move got the is utilize from the the need renewable plant we'll California operating the petroleum have grant that have adjustments, be do of here be looking $X we on electricity, doing we in so $XX in fully decarbonization. natural doing million project, have us run that final full

have at of significantly gas not plants specifically into be That mechanical recompresses the widely by very reduce that we source. like use, in carbon-intensive electric the the the increases until air fans used to creameries MVR, the literally from which natural by to currently in means energy is XXXX. our your electricity our implemented in power fully recompression can which place using we end its will higher it at So dairy vapor force industry, temperature.So steam structured comes industry, pressure, be using is petroleum large XX% decarbonization concept, which recompressing

and then solar, about to increase equivalent So in lower flow the excess recompression. carbon the fully natural margin gas improved a in $XX online want we're of month after electricity, subtracted, million a MVR tweaked at year use month of upgrading a generate next acceptance physical the of increased And cost The economics is in processes we an then renewable sold ethanol, ethanol amount ethanol electricity the of that mechanical energy plant. $XXX,XXX saving in to by and $X with generating through sources.That's that's value.So today QX. change it's and vapor almost actually literally million us month the plant for cash per increased

other are system some are doing. just smaller, some artificial and what that optimizing things intelligence the have that We we're things other

though breaking here generate a our we're is competitors doing, making dollars all of a initiative still to so couple month, of couple overall our So if be dollars costs, pretty consistently are million in and even revenue of month. even, reduced increased able million

Matthew Blair

Sounds you EBITDA do for quarter? segment in that the good. And have the

Eric McAfee

was It startup. end up of the cash the going was quarter, breakeven. startup the basis. Near roughly were of at This monthly still doing positive though the ended -- startup. was This our the into flow on completion we're the quarter a the we we

Matthew Blair

that that's that that's follow-up everyone receive that best is in CI that you're wanted dairy to segment? the and the And show affecting pathway by mentioned for dairy EBITDA something that then the you now something is see, is delays 'XX QX on, complexity you'd of when RNG low guess start the to pathway And that's my you experiencing. Or LCFS across is board? your to And just unique RNG?

Eric McAfee

in been according producer is there's explanation example, of and XX by stacked staff.And such not general one their and a of experienced our as a are changing has is current getting for There require never that for this in in We're an more are X are been life. of to Tier quick, plant.And X pile all not a a and why we're developers we've us decarbonizing any the we calculation because very experience relatively in industry than largest X developers by not bunch fairly have benefit. a of the unfortunately, process there of many is this which literally giving standard may people at are those history in to been so projects take And CARB what and ethanol CARB does be a California, approved projects more lot such couple for told and delay our ethanol done on biogas our their months with -- familiar a pile X entire The have approvals. process elements. of LCFS pathway us, the that it's Tier That with that of is that to staff. allow pathways, handholding formulaic the plant knowhow might long

to negative is go default problem that we're the next to just your for CARB XXX. pathway our fix So change waiting fix. this It's around, very a in easy

credits, we're to is So Eric them local Currently, negative default I've already where period, accurate. just or generating wrong.And and XXX at Google accurate, want which their it's time standard more fuel generate these rate that's waiting, we McAfee. not we're got you this just so Andy the during statements, rate Foster public

You top are to to something all top we with And going need about topic. one number general do need are we good solution. way to to interfacing a at response the person on it's people the the Yes, it. we on very Yes, particular fix CARB find topic it. this this their is, active that yes, and

be an staff January doing.They in that management the they're element So month. of within the changed program we have expect to last XXXX, what

by problem just be a years fixed But focus past financing that's absolutely that is to ago. unacceptable breakthrough it's damaging management. to process going the CARB entire performance of having and decarbonization, a have the is by directly an fixing, needs some there's maybe So and some it underperformance on new they of this it regulator X far should

Operator

Dave Capital from with Storms is Our coming question Stonegate Markets. next

David Joseph Storms

you there, a increasing to biodiesel pathway if about the bit that over the but curious curious how of playing OMCs gatekeeping lot I to out plant? little could as you a do just over capacity Just at see know XXXX? the talk

Eric McAfee

Absolutely.

India unlike constraint doing not has mostly It's cycle, is fabrication very are in a We which that our time long permitting very on equivalent really that lead time what California, we're is frame. in long, there. permitting the a fortunate on

for the equipment vendor and in the XXX have So employees construction in our fabricators we straightforward of other we this used the there vendor had, same of over I excellent relationship an India.So They with the in India. checked, the original chain time plant. fabricate some They in is relatively supply actually matter India. last is

invest in largely to a this matter increase. it's So continuing of capacity just us

entity. that largely a to idea is committed are debt-free We the India

business outcome get quite we that So pleased enzymatic capacity feedstock, with margins of large business cost biodiesel, that we be India. than as our $XXX use the we're in capacity cash, we get revenue a is to regular in for XX% it to expansion. roughly can which when at the going million with gallons, it's business margins very And generates it India.And because XXX higher lower of That's a increase. plus million

haven't But this we're gradual a the gallon have government and be XXXX to just that of might other step some in to is to first very is billion initiatives, X going which production fixing. that part and it's process.It's expecting to the gap trying in India process mature initially, a us we a than India trying possibly this So include be growth to announced meet more yet.

David Joseph Storms

just then similar question of And a nature. a

milestones going can the kind for any of forward? like you Riverbank, what that through and logistics that steps, lines next Now should look have you for at an permit talk time just keep out we us eye

Eric McAfee

Sure.

district permit to right process in authority air the the construct now. ATC that the by and called is what's have We issued that's

Engineering financing early point numbers QX. place. EPC, Agreement, solid to we're will pricing the announce then completed just Construct And have to that in which project We that then in on be The all the in at the expect full completion in order time, financing. mode sets Procure in

So on quarter, have year. a literally interest with equity regular next of debt investors And discussions basis that and we all in active lot is SAF. quarter happening a second first investors.There's

right of work contract, side, We've players, lot have then are construct balance the permit, at that to in peer intend basically company direct use of to who providers year wrap of interested who authority we there's mentioned actual of do number invest discussions business the a guaranteed with, per are technology CTCI, EPC does air $X side SAF there's our strategic more and there's that and with global We've the contracts players, funds that already when tough. be our has names the And some discussions California a great are renewable to whom everybody those active going proven to plants willing entire in the in and created There's being would really have sheet, with. opportunity so contractor and lining interests. and diesel people in of with we in so very, there our work the also that XX some already billion gets contractor. we agreement, with we the guys.But full And a have airlines ones get that's in called up have investors very experience themselves financial a California are other it's think announced proven to a to a that contractor know we those revenues strategic for them industry.

Operator

Capital. today coming question Ed be from final will Ascendiant with Our Woo

Edward Woo

on Congratulations sold. is question you Yes. Act My the tax that the on Reduction Inflation credit quarter.

$XX million sold million. You $XX for

how of organizing discount lower you tax forward move you not up you'll sure experience was speed window? credits? completing I'm also think these involved, able the be be I and more to would guess you do I sale -- the the As much guess, but these, time get -- And able the to selling and

Eric McAfee

transaction in reflective of the first The The is primarily were transaction and time of discount. only by kind driven non-buyer of costs other one part discount a this transaction policy The the discount the costs. cost. insurance is buyer

$XX a roughly it's that amount in net received. XX% So in amount we all million between our

use I expect just do we what would we less I small that ourselves get tax and maybe but a goes So I'd do forward.In say tightening be it's and there area, expect sit it to could down in certain, certainly as it XX%, time credit, frame to be what as tightening as and a XX%. And so XXX%.

point at not so to discount we'll and have determination just in at all, make time, it that own tax our And apply obligations. some we'll just because we'll income a

Operator

There are at Thank no you. questions this time. further

for comments. floor to management turn like would back I over closing So the to

Eric McAfee

website. the today. growth talking the to here company We you opportunities Thank posted on homepage joining forward Aemetis the and you Aemetis Aemetis others look us about shareholders, to analysts at presentation of for is review the Aemetis. that in with participating Please

Todd Waltz

of version post for Ali? an the where visit the audio attending Aemetis this a business and Investors conference Aemetis Aemetis review of today's update. written you website, Please call. earnings and Thank earnings we'll version section

Operator

teleconference. Thank you. This concludes today's

we this thank You may lines disconnect at your for and you time your participation.

Aemetis (AMTX) 9 Nov 232023 Q3 Earnings call transcript