Green Plains (GPRE) 3 Aug 222022 Q2 Earnings call transcript

Good morning, and welcome to the Green Plains Inc. and Green Plains Partners Second Quarter 2022 Conference Call.

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

Simpkins, Product welcome quarter Meulen, Plains today's earnings corporate President Officer; can a and you and Todd Innovation. and it and Plains call and Presentations the Partners websites. Events on the link Leslie slide EVP Becker, Patrich Executive There available, Chief both presentation second call. and Financial van to you, Marketing Officer; der Inc. Green under on Green and are Chief find Thank Participants is Investor on page

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

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

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

begin last and laid points demonstrate enabled since critical you are of to executing the we positioned few turnaround as hit plants succeed quarters optimize QX back as and don't XXXX, in of platform. we will scheduled. believe where highest plan all upgraded quarters we is we inflection that have our quarter, out continue where our recently plan believe to Our we've XXXX, operating go possible in we higher at our that XX% planning results second we in still the of and modernized quarter what phases run in we on proof the that are we and into transformation critical modernization could started to volumetric of XXXX start with financial further company execution the mass to to us the heading our on operating capacity to up Years and have gain

quarter, second prior this achieved operations COVID as $XX.X and the USDA. from our $XX.X margins Even was million Overall, including million, morning. relief executed to the well the indications call. payment, of reported EBITDA our on strong million from the $XX results During above was we the EBITDA we remained the team without deliver over EBITDA

had calls historically our into financial benefited risk also since with we mentioning on hedging to the high physical On consolidated quarter be basis. corn which paper, markets Our results late the fourth third from and last strategy been from continue the year. positive natural mainly gas margins

tracking could position, based strong continued yet in volatile strategically operate, watching areas crop. per new contributions finish steady continuing corn pricings, impact Driving are the And crush the and in, corn gallon last strong July. remained we with margins overall, consolidated in remains through we but half from we MSC through oil both Although, the weakness much On tracking in today could but signs some that QX, we currently crop and financially seen overall year, on have start-up geographic harvest. in levels facilities conditions paper, some basis impacted mid-teens should of are strong a the demand year physical markets. have today's in QX. smaller-than-expected corn usage a But of stronger the still or the we of we additional and where crop are and closely by corn factored of margins be of U.S. corn

over As strong oil as plants online renewable more come the remained corn renewable diesel carbon contributions I indicated, next from low year.

trended June also bushel higher we month have by of our a addition, operating oil performance. the continue our GBPX.X our of averaging platform with per for high, yields reaching as to MSC yield our efficiencies and In led to locations new production ways overall maximize seek

We if long the discovering that improvements up, beneficiary the company clean to call. are energy contribution the set later tax which quality especially for this be quantity passes, I'll increases to and quite industry on from the product of new constantly federal with a discuss frankly, time, a latest legislation, it

XX% and bit Latin as domestically deeper. front, Southeast from in progress On the Asia, when great America, see as just other the in discuss our strong we some and locations we commercialization interest continue protein our to of I later call will XX% well products a worldwide. dive

also an which Riverence, our trial MSC on largest innovative globally during interest Americas, producer is in products. quarter the partnership led the moving exciting Construction announced our and in our undergoing We with and on Central is which other facilities for commissioning location at begin ahead currently City to MSC start-up activities is October projects late nearing commissioning early and Mount at Obion. completion. in August And Nebraska Vernon will for is very exciting. Construction these its the system,

job projects months projects, we when expected of great a and staying them to within a executing budget on few did the team start-up. on Our delivering major

Madison, We on engineering, is the list take Minnesota to early completed We well. expect being seven that as our in have some than we earlier at will lead made begun ground those project anticipate to permitting break may next and XX-months which Superior breaking project projects estimation. plants next to expected for MSC ground November. and Iowa complete Illinois the progress to in on These in year.

facility has in at with Tharaldson month. turnkey commercial JV MSC We this exciting, our started are Ethanol. planning to clean on construction first break And equally Shenandoah ground sugar our

a which in balance our a deploying material and million of revolving $XX have of of targets capital up Green and we balance common have we their near-term in to to remain Partners -- positive each $XXX continue our for further per $X.XX the financial balance maturities. quarter notes cash said, reduced the With initiatives. with the executing And with the million now will XXXX turn call sheet, convertible cleaned to outlook deeper with results. to unit, performance. combined over early to exciting year, our Plains transformation sheet which we row During towards the the increased that continues liquidity we our now completed Patrich When distribution over and July, I'll sheet. our strong for fourth stock, our credit the strengthen dive into in condition of any sustainability-linked balance Patrich we with converted remaining facility, year, the review financial to in new

were $XXX with million higher the $X Green the ethanol, billion, morning, and ago, just over grains, you, same good revenues run Thank Todd, quarter higher everyone. for higher a rates. by corn than year combined significantly Plains for period oil distillers prices consolidated second driven

year. rate the rate plant XX.X% last Our will same cost year-over-year long-term. production period our to reported and reduced utilization margins help completion second comparing continued modernization XX% rate run improve improvement run during improved and on a program absorption in the of to the favorably The fixed quarter, focus

year. of compared same $XX.X For inclusive million, quarter, for diluted $XX.X the the to quarter compared EBITDA we to $XX.X or for of attributable million same million, million income $X.X share, Green to the was USDA for payment in $XX.X the XXXX. period million reported of the period COVID per last $X.XX net Plains

to contribution included protein from quarter, prior oil yields period sales run corn company year and rates, performance, and mark-to-market For higher production exceed the gains. the optimization allowed improved same which

period, consolidated prior than lower we year. a gallon than the the higher realized per first For $X.XX the significantly crush, quarter, but

margins versus in XXXX, came Our business. higher energy as our activities, in our merchant due higher segment ag realized also as and handling improvements in grain to well

For $X.X pressures by $XX.X in the and higher with support number in from personnel million $XX.X is costs, driven increase headcount all with along transformation. of SG&A driven a professional of million, QX compared factors approximately quarter, million XXXX. higher majority for our by segments of The of our the costs wage coming fees was increased to

SG&A strategy. for and higher support execution in million quarter cost, enable quarter came about to and $XX.X these a year, the lower cost the be right million long-term. the to the year's improvement for per settlement the incurred as convertible amount, second prior automation in expect quarter. of the around $X.X per Of million transformation, of as to to balance year. charge $XX in and continuous mainly efforts million in of sustain a plant that the $XX.X We quarter, the will a commercial which we favorable in Interest our of improve $XX development, margins remain private of in digital for was we efforts related interest impact a notes all SG&A reported million quarter year necessary includes expense XXXX around our coming corporate balance believe to We portion $X.X result company operating million prior of the $XX.X the of of amortization which capitalized to million $XX the million quarter, debt expect for

As of noted environment. quarter. interest quarter higher be average expect $XX.X million about in to million comments, now last we projected quarter number a per per a my be But that expense to $XX about on we as cash result rate

company loss may to in million expense Our reassessed the carried for period compared deferred the At asset, to were adjustment XXXX, million, is same quarterly. to resulting $XXX carry-forwards a which a approximately income end be benefit of tax the our net from million, forward tax valuation quarter cumulative tax of indefinitely. for $X.X quarter, the available the was which $X.X

for Our of rate was allowance the On deck excluding valuation Slide sheet. summary company's XX.X%. provide quarter, of nine balance the tax earnings normalized the a any adjustments, we

capital of the working quarter. the ended working compared year As $XXX million shown, cash we net $XXX million and capital debt prior of quarter financing, with for to

securities of our cash position available cash equivalents, the capital cash, liquidity Our revolver. along working the million restricted in $XXX.X with end under included approximately and quarter million marketable at $XX

quarter, our and projects, protein $XX.X of million including maintenance, sustaining projects, $X.X we million to growth million and other to our regulatory allocated plant For approximately about initiatives to $XX.X modernization and safety the initiative, capital including profit growth towards $XX.X capital. million MSC

construction year based million and to anticipate $XXX to We our the CapEx of continue on $XXX plan XXXX million for current schedules.

the partnership. Turning to

MVC performance, realize realizing well levels. trending to result higher volumes of for ago. and continue above reported $XX.X period cash a year volumes of slightly With as we of a EBITDA run million now consistent the parent, upward adjusted the rates flow, higher $XX.X the million, than We expect earnings same

return coverage result, to higher per quarter. $X.XX ratio distribution As maintaining unit, support a X.XX to for partnership a while the increasing the to unitholders, quarterly continues the times

for distributable flow $XX.X million quarter partnership, the for of same the the For XXXX. in cash line with was the million quarter $XX.X

XX-months, distributions excluding ratio, coverage distributable adjusted any cash amortized last produced million payments EBITDA flow last declared required Over $XX $XX X.XX for of the adjustment partnership $XX.X over of principal the times million year. a resulting the of and million, in the

Todd. to back call the return to like I'd Now

Patrich. Thanks, Yes.

let's it quarter. so into get again Okay, this

we since is company the progress been only early transformation Our has with innings of in some what we started but ways, truly what we in are are believe we getting remarkable, our began our as possible. doing is

Our was time, operating day. highest depressed Gen cash at The non-volatile X order plant our have gallon. is the at This said blending and transformation as financial usage oil utilization production unit for well, a to seen same are being of recurring, many technology levels ethanol X predictable, the in modernization remained gasoline percentage times, prices the our ever team preparation yields predicated time. of and hitting growing safely as the we the platform Despite, high members our some is at total technology and have Gen flows pump, levels we new protecting to transformation the corn run highs. important, strong, single platform for and and the of by running in every

believe like for has to aspects positive do to provide many at X continue It track affordable be fuel will fourth pass we state the that EXX be the having still low Plains. on we continue we this on most for potential Gen Congress carbon octane clean what Green of national will energy planet straight to molecule summer. potential the to to bill looks and might round the growth tailwinds -- are business. ability the We With clean sell and year and standards, the

renewable up the EXX credit positive create the help a for two a sustainable XXQ for aviation alcohol ethanol, credit renewable for credit more faster carbon extend include capture way, a tax proposed, levels, $XX XXXX in which oil, could funding fuel company emission As debt corn, and low for tax depending to greenhouse infrastructure starting for for carbon biodiesel fuels retailers fuel the decarbonize ton, $XXX legislation on our dollar per in create expanding years, all to clean new will to higher provide which gas a which million credit can fuel blends. gallon in impacts tax our corn positively production

is at value and energy we shareholders. the So Green our uniquely global quarter, and solutions the amazing What technology trial have sales to that agriculture Green outreach can market things success. and protein believe executing with to Plains a nexus IP we to see is only program we situated an and of unique truly successful we are discussed are our last only do deliver that our After beginning we to Plains because this. of to is control own but units and not portfolio, possible about turned

innovation development. centers, focused of built you been Some the product end-to-end seen with three around system have that and use has all on

protein in or protein. ultra-high benefit have seen to see can commercial the fermented corn we MSC customers circles the Our of our what for refer benefit as and products using

feed seeing animals the the swine, from product that is to of pet feed formulations from the customer to the of and production to to to use this to to engagement and salmon commitments. better feeding of First-hand food, outcome of results to everything tilapia, their all poultry, product

excited we and be Idaho beginning trout nutritious with the feed be the of markets salmon domestically aimed will are Riverence As and globally. in development mill partnering to at we're on JV. part we of on And feeds work the that to said,

XX% see in as in XX% Southeast Latin both discussions and well to great as continue We products. global protein with markets, domestic markets progress in Asia our America, other customers our and

in-country securing achieve penetration without to are to us with in our to of quickly. that with own having in to partner more stages those infrastructure in existing agreements markets key an final us distribution allow the reach We market markets, logistics companies allowing customers expand

expect We several weeks. finalized to the have over few next

and XX aquaculture markets, the trade the in volumes as and greater. some are customers in are and You have with pound good little largest opportunity in and of ingredients bag, all for This world to is work the but the of these we swine as margins remember, top poultry. in even some expanded doing pet on

been if accelerated seeing, have our Lastly are higher its of show colors seeing -- true beneficial points, prices the protein on primary as going our our will XX% as continues started It these are beyond, markets is and expectation you recently, Shenandoah. some margin as as well to you our during around be global forward. as of structures has since which our pet the space we even River be primary XXXX in into production MSC increasingly production XXXX to customers, from product protein and when were day-to-day XX% that up Wood

on more As indications. remains as XX% we build strong need the based demand, and will this protein pivot product to we more early very for customer

of that Low in GBPX.X per near exceed partners strategic per As and GBPX it partnered Quip XX-day a corn with happened and we've bottom protein I our said, a fruition several corn Tharaldson fact example oil purchased line. well. some contributor reasons yields also one largest to and the our in to We completing had to begin bushel our ensure with the am yields continues in but subsequently in of domestically, platform I every Shenandoah quarter revisit run One oil the Fluid focus to to world quarters, renewable just successful additional was To potential mid-XXXX. the that best that of upside MSC are be We're performance. not GBPX.X now lot launch. also bushel is with anticipate step and these next globally. starting the commissioning strong our we come build our the JV, of partners, will project are we and confident technology be JV facility success the of our this see will GBPX and to carbon at the first. but during as exceeding taking discussions remains yields over terms

expand Quip's of produce significant increase for launch Second stated of garner to with a continues GBPX.X. quarter a unit renewable corn the goal operation interest carbon that plant's to oil MSC as Fluid single technology yields third-parties game-changing high low had a plants more ability our pushing to towards oil. in of technology record

growth from -- unabated, matter oils corn believe oil carbon strong renewable the diesel low vegetable in how made With much continuing veg we no oils should demand for the continue pricing is U.S.

advantaged mentioned the earlier, program. further As it credit newly is under I federal proposed tax

strategy from We have we yet to oil and our renewable in corn so continue meantime. in strong substantive make any the announcements growing about carbon potential benefits to partnerships, and engage discussions see low

remain front earnings overall this We contributor believed our a significant business. goes and have can always the merely an agreement this to as beyond offtake on remain patient we

on We growing We bio-campus and sugar are technology in our will believe Shenandoah scale that ground planning deployment the clean Shenandoah break month. revolutionary our this for be first bio-economy. company full in to truly our

in While carbon glucose significant from to have New York, said, know that facility the also product and we the have low produce ongoing ability have we discussions because a potential confidence to plant, work off-takers. our of partners great semi-commercial our market. quantities of produce to dry With dextrose we co-location in demonstrate our with to we potential mill several at and

in well. positioning industry. and are close at we whole other should any these alcohol-to-jet will potential railcar that first from with from partner monetize And facility intent this new than the but as produce these food pay, project be own or our better end other project will other grow deploy us done process. is able ourselves they our to pipeline, And The while these they from truck need fly. of said, revalue our product replacement sugar and the the strategic as initiatives As be I will can and to good able opportunity our in we ship is Eastern the customize we to as to to plants we dextrose of the glucose opportunities current clean carbon carbon interesting for their I with ton, make In At who a can of pillars our Summit the any biogenic well, We come their which believe We we XXXX we here, with customers, any here. a be a decarbonization. strategy grade completed. one anxious viable accelerate We revolutionary opportunities plastics regard those carbon, to With with to lower direct for very innovative also direct our food, validated are by the we passes and with complete, to ways, first reality in of we production. and substantially can to to believe the track programs. on product If increases, from that areas bill are what to wet partnerships a mill process continue future that XXQ just intensity on speak, around think meantime, believe the as strategic on start-up. patience to completing bio a will of carbon once and on and their is set chemicals, right over-the-fence the to become letter and the of be and 'XX many be continue to more with in makes opportunity strategy well. so on last accepted We a and be progress a the recently the about begin getting can for will in on types our quickly look topics. continues $XX The only focus. take is work that issue even of signed advantage the co-location can rewarded is

future. have to our So initiatives for and as are be that to going you many into can beneficial that see, are shareholders going we the we now -- be

outcomes. this that industry quite the We the incredible time a seen have in verge like of is never on

Plains. future we session. while Gen can we today, and so X now been of for with joining business, the And deal see call more Thanks volatility the exciting can has the the we and for start never Green still Q&A the assets

Certainly. Truist. [Operator of Instructions] And our Levy from with first line Jordan question the comes

you Good hear Can morning, me? all.

you. We Jordan. Thanks, hear can

kind we wonder just both at breakout us margin should and similar Clearly, a flow nice, walk from to sort It don't XQ this 'XX be quarter. I'm perspective? doing operationally. is, if yet, the you here and other to parameters but GPRE all know just are Pro up, environment. saw looking where clean compare a rather continue at both quarter we a the to was ago, performance getting looks you higher or thinking from through about what you the crush starting than Can in High to to track the are compared the there? have we I what financial really you maybe how it today like and And year put of of clean you're the all a operationally work that results to all transformation through do all and done segments I

contributions let better talk and talk but contributions I'll included our the one-timers initiatives taking rate, and of from of was year specifically, are quarter, a from QX shows just protein place. some that operational system, little more cleaner better higher This optimization oil, capability corn kind from much run a all about of Yes. and our mark-to-market. last Patrich

think I we two you really when compare look at it's really those -- don't it, So well. very

is future I of think the seeing what our company. you're

year saw last was time within same noise versus at the quarter happening of lot still This a business. you that our

operating rates. to then capabilities at ability we of were of some the plans back those plants low increase the that online a weren't even online even or our very have, they think I

really every we're Generation that is really X operate a so what X what built think can seeing. succeed we that's we forward is have and to today platform So strong had where that got at said be and going day, I we're single Generation really and

is and the And a I a running And at was it overall, very have technology we Wood the from have River Shenandoah in full position So company year than deployments think more we ago. coming different quarter. on. side,

I That's jump with you follow-up, starting you're we few a great. feed Riverence the Maybe a as release can announcement. know your the in to to prepared back remarks if mentioned months could back partnership Riverence if us on. that of with do implications customers with of Maybe work the the some both walk aqua the just space? and timeline and you the other there in through then mill

the think our I on not, great they're friends for we We're get rations. those there on we're the best products if point that, you've using call, the working out those they if many of different products. their leading performs. key the salmon partner, in actually right what production doing is and of of good see our some on the have outcomes in genetics, company. together ways to leading we product Shenandoah, have And been and think how together I you developing the get and And trials of many genetics working on world to now in

our to activity attention did So had aquaculture from players their garnered really the because of what with that around of related we've before species. it alternatives large seen feed in need it's whether a variety is the rations what that they've to accelerate globally and industry planet that

to these calls and get is where looks like investor to aquaculture say that a did fermented for the like it have soy performance And What perspective. what in to industry dependence really when step global first some the our of on feed it products plant-based flesh in in conversion it past on you process, it this anti-soy think their can was they think we shown but the on from product to us we've put map from meetings. I the reduce corn unique map that on and us I So put it solutions just the to nutritionals. multi-step ratios start into a the the feed ability to

and what's because the Plains, it do want I this customer we we can on to nobody we additional depending increase or and Whether all needs. pounds yield said own in increase different of maneuver with those I remarks, else that to really world. technology in Green do can forth think about our can protein bushel was the unique of characteristics. per back on start the things technology, my We or

We this aquaculture because have XX% protein of towards globally and especially in product and that lot a the of announcement. interest

That's of those -- of my great. I'll guys. questions take rest the Thanks, rest offline.

you. Thank

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

Yes, Good morning, everyone. thanks.

Good Adam. morning,

Good morning.

you entities hoping the was both could to when to could needed separated actions I you and is your Congress my able dip little clean producers' because network at the of you right in think a wouldn't to And credit legal bit still XXXX, the do maybe you double just would or -- now. look you Summit footprint CI some today economically? the be factor talk confirm, so producers' between that Todd, So participate in and sequestration the be in be would that programs there? you can't about understanding of score in what as at And XXQ that be as fuel between just credit fuel point

comment Mogler well our Government just well, talk while may Relations who on I'll as is the Yes. about asked the have question. little as CI we be that think and VP score, I a Devin little here a you bit bit

now, in of on that known it's platform changed So happening a well a how whether as obviously, is in from into portion a perspective, world, on will in an And years. and CI Gen the reduces CI we And well. reduce carbon whether to do or first the of pipeline step direct doing start inject, of CI it's commonly many because that's biofuel called whether which advanced because we're going know not is sequestration. something Gen that of products that, which other fermentation scores X our the go beyond some opportunities well, institute fermentation X in even then plants, it's seeing around opportunity like over significantly. CI advanced taking our board some the on been some products, biofuels our of probably starts to down across the as as has we're the And that, produce it's platform whether to but right something

standpoint, what great corn they're you successful. have may fuel, extension and that now being that our look ethanol I we now $XX And us renewable biodiesel have can where we formation well. from we're maybe you allows geologic very to really The too allows us industry the but conviction as people beneficial corn -- strongly projects five So obviously, edge successful of to believe XX helpful on for. about, perfect we and a -- Congress the obviously, is the ethanol-to-jet think to didn't be I because going talking plant, thinking credit focus be giving geologic and tax sustainable aviation alcohol-to-jet than to at when Things a reality the that's and more credit to is a this on formations are become better at underneath we that, to can do or of like of start piping Eastern to plants about now think our miles oil.

are to XX going on of like get So power of opportunities kind that when of XX kind produce an average that pipelines business, an be and down we before heat base topic. to our somewhere energy, of or started doing XX XXXX we plants and projects from score just on the a the other between a even way or for lot of we this combined XX average is get could score on

convert maybe that We as all that have energy. into verge ingredients cheaply produce on well. to Those we take basically sell the or are to

want talk going take front a between right a years, Devin, clean overall. of is on somewhere zero and would about this XX to it So is more you average be industry but the credit? industry eyes fuel few I say our little this to bit decarbonizing production to in somewhere be might

Sure.

shifts the based so years, being two Todd biodiesel mentioned, And as reductions. the after tax $X board across credit greenhouse from to gas on

that further so And our DCO. advantages

well CI So or not for oil credit only credit it being Oregon or as federal well. State Washington at gets a level the CI as the Canada waste California as low

upside lot DCO. double able there's believe to So a of CI low of on dip that being of there

diesel renewable from just sell apart from as to just would the the But clear, oil? be corn that ethanol qualify well generically you just

enough XX% that in reduction, long greater a as for it to can With it than as credits. a GHG California Correct. program addition low CI any qualify well has as

Yeah.

much. questions. Okay, my perfect. guess so on. I'll That's it Thanks just pass I

Thanks.

you. Oppenheimer. Thank Kristen question our with comes next the from Owen of And line

back for question. a Thank XXXX much How bit the you would Wanted outlook XXX you quarter, that protein. provided that corn you taking ask Great. of the the last to say Good XX XX to to we've about roughly oil, the morning. little XXX of And date? think the that in get trying velocity as really means to exit facilities about the you online year. business what sort businesses that I'm And XXXX? to those additional captured these for in half of of just

will gallons converted into into coming of year, gallons and year, pricing. pricing subject next Yes. we well. obviously, to I about the market. we're we're oil And and a year a XXXX, out last but XXX From Corn standpoint, start-up to have demand I million more that. protein mean, with overall, the great still -- scape want a today on we continue on product hit the plant with and to remains soybean ranges track the velocity XXXX within numbers, we on at operating XXXX off the our XXXX. leave of lot of seeing to to still still not to sorry, in coming When oil sure relative premium those remains we're more into a -- XXX low think the from highs, basically really of half in the soybean we carbon make the and think strong focused I in have XXXX. of million oil strong And remain plants will on it's score

volumes are better, middle online in faster, XXXX how points, next So outlook, go start build cheaper a volumes some lot our especially down. potentially and our our learning the to up as started partnership protein at critical Dakota quickly to go of even get up, our up. as get will corn we oil look year, well with really Superior see can quicker start when of we pricing coming that's inflection to North if can. material we these And as We're when we in

those And that things and even remain seeing beyond. hit numbers makes on XXXX XXXX. we're guidance So can confident within through we track our we some very right and now, that us with

That's really the agreement. follow-up I to related wanted to Todd. helpful, question ask Riverence one

wondering You but customer since conversations for could wondering your briefly this that means like what on Thank for made the it about since I'm customer prepared you but like if so talked has briefly the that But touched that of remarks, sort particular of been expand in you you us? what just been it on wondering market. cadence you just You what touched I'm has on that announcement? much. particular You this just of conversations announcement? market, cadence made

Yes, little thanks. let about it I'll I'll a bit Leslie. and talk

just a because its really now to basically -- merit. mean, is of announcement, important both I are it's the partnership on is We that think parties. extremely I really valuable own that

going doing world products, what need going us potential around really players it and go production, is be I product be think be But we're as and Black of from is from allowed you protein that there. whether to do meet what quotas true in fish it's protein seeing colors the development in replacement as markets with seeing to kind Sea, the of America. in to especially the with whether some we're what valuable. see collide about reduction of talk and meal We're Peru going it's the of well the some South to

Africa, we're agreement. Mediterranean that Southeast those Plains the but it not nice of over next from in finalizing in distribution reach on distribution America process -- completed indicated, we world, are Asia well the to working several countries Mexico will weeks, as Those execute into distributing only from that South are on So country everywhere those. and have as has -- around will And start as the we're and believe that not we Green we'll be into complete a are we agreements storing that several but even in products. we

customer around our aquaculture, whether into an to some found great going have be the world really markets more in efficiently move even can and we now then quicker it's and And pet product markets. so context, great we partners that swine and areas other

back the trials positive in global aquaculture, results pigmentation reach Plains the And so the from led from see wanting that from opposite customers Green the wanting out to from it derived and results ingredients corn. to see to really we in the get sometimes to

So but distribution I on really ingredients. generally, not it Leslie, only some that. has looking alternative players I'll agreements, think close global led with are really to that expanded protein just for in-country activities,

Yes.

and recognize other top our announcement on Riverence to the thing that XX pro announcement came is I the this of agreement early think from year.

things a when go because So in decision made the in deep of set tremendous growth that the opportunity, we aquaculture, have to we wanted been lot we motion. see

positive a So the embrace the perspective, that more the it to to in on as wave test, digestibility. not absorption, doing for in it tidal the critical development feed mentioned, coming response us continued showing a really players positive but put from by just just industry, to the growth, from is ingredients was data the Todd

together everything nicely. came really So

participants shows chain yes, it's ingredients and really So can deliver confirmation. another better quality it value quality the that how fish. in partnership, piece better And of really

much. so you Thank Great.

you. Thank

Credit Gupta next Thank you. with Suisse. question line Manav the comes And from of our

reconciliation revisit want Hi, guys. climate bill. bill, to quickly this entire I

is and to tax there extension, And like fuel credits. credit doing are looks XXQ the it Finally, multiple sustainable change. in blenders' lot climate more on fight aviation there, administration provisions

that impacted the think us things you Help the which which look you understand, from? you Now GPRE most bill, and when benefits credits. directly by you most XXQ by impacted are BTC are excites at the or directly

you Well, path we're products that cements exciting are in demand bill. that the really I basically It just make what's and we ingredients is decarbonization the about mentioned the mean, fact making and basically forward. the

all we chemicals. our chemicals, that's of clean corn going and produce. sugars the be alcohol-to-jet, on to fuel, process going to from low carbon gain of company our ethanol of you lowering the carbon be this behind to this going products. -- carbon -- industry, one what mean, scores ahead reality. proteins, carbon we to our to alcohol that this and ethanol aviation the this to that's across critical green think board. on we're really industry us of really make obviously to underplayed mass relative the telling a the In around going our basically that's I so -- products going it's significant world be give have into focus And even that thought one across standpoint alcohol sustainable alcohol aviation sustainable that can these investing probably oil, were And low capability low of quantities give and to and I is in sugars, is only and industry all is industry the because the we board There fuel is our

from to there's in alcohol Now the going forward, technologies be are or fuel sustainable get to get technologies pulled what opportunities other you're already what to out but in have whether There pulled are seen create think forward. continue is it to because see things it's aviation market multiple going a I to the you've background, that as that well.

there, talk So get infrastructure million and and try we $XXX to I higher press the allocation you even on just think all the EXX this, even at today even has there MLPs, and renewables blends, industry though going that. and we to of well as of MLPs, when to MLPs look been somewhat continue to a forward on of press continue nascent in some

board, positive can the that benefit our any to really company make add across to Devin, of including industry, on ourselves, think diesel generally else others carbon want any these, capture. that? I very from you So renewable anything that

No.

absorption and parts negative transfer -- make little it majority weaker, Perfect. a that the the been that of where your coming this I there on was you was earnings in took had that negative you very here in part XQ. you as A were were follow-up were clear indicated or already quick quarter was think cost process, what one of there absorption had cost call both is, reasons initial And one done. a that and the last XQ

behind of cost it's So is GPRE? XQ, transformation now process it understand, And in when does look like at the that you just true negative statement stands that line. that absorption trying with associated to a looks still I'm majority

negative execute and we run Generation has run as general, absorbed plants cost. transformation, In our to up a well has set correct. modernizing we day, our to every to had against of run is lot could because we're that think that X to at I ourselves has Yes, so cost of plant towards well lower

and spent of to that's plants we've so on high getting money our energy time down use a with the reason lot use. And energy lower

Now, seen think we've some the chemicals industry significant is where the that we're the of today, we inflation I from use. today where still at in standpoint and of

as costs subsides the had won't the ultimately last reverse. general But driven us higher. as higher, that that some well. of the it's inflated time lower. couple costs other gone sure down. back some inflation probably cost it's industry it then And of whole obviously over think can platform single I these hard has will we drive So potentially Labor during runs will come every have years, running for of day, things really plants as about making That

standpoint day and grind baby But and as as for plants have in grind. to we As from the most means part grind every mill like wet do to you conversions, after it's dry say, up about are can, a conversion fully all hard the wet set that. miller we the you do say that look our mill single a a what lot

to that effectively stay some complete, is modernization But have never We longer. little overall, but continue final a on seem that our program it's we little work done. things bit to

out we're we to see more drive future. can the it think continue to going where cost of I in

for good you can on this hope And Thank we that response. goal, Congrats we the you. a faster. decarbonize Thank pass quarter. all detailed we'll

you. Thank

question Stine next Eric line Thank comes our you. with Craig-Hallum. the from And of

everyone. Hi,

you? How Hey, are Eric.

well. What Hey, doing you? about

Good.

Good.

I talk sugars. clean want to little about So a bit just

you're about get do progressing timeline and you high sugars, of obviously, in the terms kind started making out side? mean, given or similar the expect commercial you of a the progress does clean you you're few that pro clean as some curious, for potentially on sugar other that you momentum? areas, Is up that, timeline in when there. with Just speed think a years of the I

Yes.

Shenandoah still standpoint. of sugar we think plant, I processes. for from as out longer for a and laid rollout And game. our that we're 'XX least with Clean their speak. the customers need build is bit start working 'XX is hold, what dextrose large We at we little to a

very the that carbon. We make wet a product comes exact out to give give at sugars a XX can them. co-location, the great some of is refined it DE, or about are a what can mill. lower do thing that that's DE product same so a production in past them and the unfiltered we We the And current want the they it's make only a in on filter of do different we the XX and want can fly. unrefined, anything because of proposal to lot of get what And than them they traditionally really available don't or

that starting county the to a first sure is co-location and the workforce with million there speak. talking to different give make we're and give them GBPXXX to XX great to Shenandoah. GBPXX and we're as with co-locate range Plains, million make their convince great now And we're workforce step is the that's we you our it's we Shenandoah, our them of to community as next and and from trying site a to great they year Green a to that plant -- bigger the starting year co-location excellent a We're So thing great site in GBP best we part are in alternative when want million and In you customers first for and progress. see right build a that alternative.

our fantastic continue protein as margin we We opportunity LOI, think to which to excited it technology. to we we're and out had structure said, significantly a sugar our out prove is about. It's very So prove the in signed that in is greater than start. ultimately, first

it's get Again, better to the over next still to starts we can first where smaller it little of the up XX in globally -- to leading of pro, terms have engagement a in significant ultimately products for a XX cut plant than willing at build technology, domestically five our and we the anything protein. start. and do to about margin maybe very years, But in that these customer excited have sugar, money we our significantly view kind Now quantities have our is But we it. opportunities, we're we is, and technology, both own put leading the mouth there.

in one to long-term spot of Got your corn work great just a on are contracts or Maybe your oil from updated in future? expectations where prefer for That's you maybe it. I mean, both me knowing just thoughts now turn color. the renewable the diesel mix whether potentially renewable something space. turning last in and your

years. enough, sell say, market and the for nobody Plains Plains have -- the It's -- I hedge world you little Well, what's pay you happening well. to I'll Exchange. I of the for That's Green much anybody to forward how Chicago in as If this. is can that a opportunity does can the start price, in shareholders your pay the years Green it's how I'll oil going do do to in over-the-counter find Mercantile There that's benefit today a in cheap in what's oil willing this if not to somebody they three bit want to XX market. more curve from set, and but next or and that. would what oil I lock go just of

for that I want industry want worried have just hedge I'm never can home the I -- actually general. to won't oil, I that. I if So do a to in

oils. one lower It's won't and We there's a oils, lower for carbon significantly are other not home intensity than only soybean worried happens a veg us in what have oil that and we today. these

to going relook how markets. because carb fuel of scores carbon continue if carbon again that those low we're in the qualifies We'll lower. to think sequestration, a takes happens carbon drive I oil see what at

confident very very we have valuable. we're is that what So

we of our million towards out our program, a building be plants, the As own end GBPXXX year. we'll get to pressing

offtake, looking biggest we're a for not some we're we five very corn But to drive in. it above it's as for to beyond top selling just I we're that While looking of a us there. provide lock partnership, oil out oil a company, we're very just volumes and opportunities not more strategic think producers. in wants to And looking an for world, who think somebody the and for feedstock the we're we make to our going really compelling get --

discussions if different in going would it's the of on don't to a remain think stay it's with opportunities be we think matter contribution look, to continue parties We in I and in and that anything, fantastic several But a the we meantime, be cash do beneficial, we to future. time. just flows

understood. Yes, Thank you.

Markets. And our of BMO next comes line Ken with from question Capital Zaslow the

guys. morning, good Hey,

morning, Ken. Good

you high How Can will economics economics the talk what actually profitability much the realize of imply? pro? in you about of

Yes.

is $X.XX a unit maintains value that pro top above gallon we to goes equivalent. And that, bit higher $X.XX $X.XX amount or that the protein the had we an margin XX a and to initially out contribution said, And when a the a some pro then trying we to to finite our little to a and as in that So alternative $X.XX initially the higher pro, meal gallon as we XX said well. low-XXs, when gallon still pro protein, soybean goes And initial from XX% value XX also as of you're $X.XX obviously that protein of in oil versus said XX basically -- we of rolled $X.XX uplift said, it equivalent. to below. per higher and go we're equivalent the than of it to in at XX that because

what because X.X per lot to increase harder are initially to our said talk when So we -- to our if customer with margin we a run to will thing to going pounds actually have going product all be for I only interesting that we be. technology is a bushel, what we're XX% pounds on and we need talking bushel. X found track now we we protein, structure plants mix per we still to X.X who and of about our those. could says making That's X The the are X make

allows And money large than if that a our protein going then we to or harder. run higher, we small make selling in see volumes, XX% volume. So are XX% yields us doing might more customer customer XX% in a which maybe

And is technology. engineers these is a with indicated, we really the owning that's things we're and relative product around things. We around And of we do and to best So this X mix of all technology is get add day founders a of they the pounds compete as yield And to and the high which production. that have in technology. technology and these buying seen play XX have high starting uniqueness all literally versus what per relative as unheard we've to the who world best see corn. yield protein as the to we in I with bushel, around build

a press make of more it's all in bit maybe of a -- margins you you actually And because are money could a holding. product fact, with lesser we're the overall, mix, So of yields. protein, harder but if

even there's that structure increases of the are we're margin very out laid on as well, going on we've and going So but a some little on that bit that from there. positive

that do give mix how profitability how that a there composite that? XX%, what very be expect can second be do some of you XX% will of how helpful? So think what would your you be product to my ranges Is you in question you you assign be? kind will and is, to that do XXXX, much do How much

Yes.

on something we'll that's the several over work think next I probably quarters.

capacity XX and we're start I 'XX product to once XXXX customer get -- customers. script XX XXXX our versus development to be to believe a XXXX. our higher But around even proteins be end go mass of bigger If XX Plains this we towards for looking produce probably mix, at when the doing in really get when And and to pro. we're versus mix we ways look pro Green good levels takeaway goal drive our critical XXXX higher and think flip and even the a season time and we development, higher negotiation around still into technology, could at at will start everything than And to going is just those proteins around it'll for at of with that. that's in XXXX, XXs, start we you we into the our that hope 'XX low-XXs

a it's So mix flip think to be that on a bit in guidance able you that the -- this end I more. of when we then 'XX, towards give bit think we'll we and 'XX little make a year. of more we'll the And is

Thanks. from hearing you. to forward look I

Thank you.

comes Thank you. next with And of Roth Capital. question from our line Schoeck the Michael

little again? And we during us think the It's year for outlook. quarters? Craig Irwin. negatives and of your in you But a for you. Thank pretty probably be really financial country third your Todd, little in geopolitical that the the the maybe events and off maybe happenings, a since stock corn of in people positives, at bit give unpack with this of remarks coming in for fact been has the maybe potentially year? fairly bit quarter were active half accumulate a certain that the something us back quarters? among you the looking position this volatility color end second discussion potential of does been shareholders more prepared exporting to should clear healthy the the you and some corn that should corn these how a Is us on looks the help Can volatility like, other here. has a what started about fourth Can

it's don't necessarily. a think story just I corn

world supplier at when the storage and of certainly, are a U.S. residual market think the market became the And became of back again corn the overall the world job is like seen the we point, term we're Bearish where structure in be of U.S. the supplier we at come the and corn that because now that look at structure today. that to corn that world corn, Ukraine has to ultimate the all the -- felt residual we've of in the we that seeing XXX and kind fundamentally we had I price and the happened. we're to seeing view

over record this states. be ability of that notwithstanding XX-days. the crop. And the a for that, some will set areas to there to good five seen I definitely this last in critical of But rains you going kind in finish another weeks, think couple most U.S. to Nebraska, the Iowa, results yield well heat the we probably slip Dakota, weather North have I is the and of how to and this deliver what of that's wave important Now crop think is we've fantastic see and to have the Midwest Dakota last up least at Minnesota, South because

what wheat think have of tens dry. you Black had USDA the said betting those mainly as five But the hitting expected made Russian than market And the start money corn exporting we I last were is as helped put market I market. got we as the out prices Sea, market top that's lower against had driver here bit haven't and reduced well, probably corn we hitting corn of yields better the wheat than the significantly years lower. that, are saw of Mid-South, think On the which today the drive probably and put yields overall, a more you of you've earlier, the anticipate weather. millions why tons crop of the well But you as little of in out, any the the overall, out. obviously

ethanol have So or you it's when still RIN on $X.XX the you to $X.XX, remains discount gasoline, whether that. significant look at of top it, plus a

to this You seen themselves. higher, so in can prices of long a are ethanol because it helps blends. industry, even watch levels, maintain today. reduce margins go some higher today. to of terms expanded economics way you really affect We've helps gas with going corn blending market We're closely. gas of because the before start in it seen prices The RIN And stock we've these reduce favorable,

is we elevated paying bigger a those really and are some we saw every hasn't of years, the this with Nebraska I able soon. been margin it it in still I corn we watch our When for anytime supply. not you're U.S. corn the in lot That levels. thing the you're think XXX an basis tells think to it futures good to more to make corn a more and levels and cheap see and think I product basis margin, but but we're seeing And world historical the XXX -- I than molecule. going a highs. is the higher go summer. that make what to exports that over day part positive think in have elevated for still some able we I as very is away wants It's demand important And you ethanol well. we’re the mean, fuel

in here, up, think but corn probably five of overall, corn the market weather the pretty against a And the not the last and risk I from left done to well. hasn't lot crop smart. So very more years in betting is downside

a Yes. My of sense. question makes lot that about No, corn next is protein. fermented

assume possibility you to clear these hear be we a quarter So until of new the in these contracts? have in you about? about but And current start that a commitments strongest release pro, tonnage announceable maybe very of to maybe there to one your might you would earnings more orders expect your is different next to XX press importantly, pro, little hear are we orders to be that bit call that or wait I XX in orders. this expect predominantly

I have is order that any announced thing And to about food think but an careful steal with makes them. because have business a the away, is do we be to trying relationship what with pet announceable protein now the product is, very great we any we our relationship. anybody

yield, higher into can lower world the everybody But If I and we great moving mean, markets somebody going to we're Leslie this a wants I coming bit out many So we whether now product. we playbook talk this little don't momentum just let XX a have going just it's globally, be product we to into quarter, that. to with sell have see to want lay a little that. where mean, about do to in pro. our I'll

If you pro, XX want do we that. can

setting for kick could that's of for our XXXX nearby, variety and programs this XX come strong to we up this for to think -- really XXXX order really going volumes. I we're also is see the ourselves But the what not and see for waiting campaigns, in the orders we're we're what just think start I in for. off -- a interest pro for product to quarter but

playbook that to interest giving before of big whole XX they bit Remember, today. River And want And specifically some of ourselves into Don't to up. always had and of plus Shenandoah. before. any value products. our XXXX they pro orders very in Wood kind the Leslie, countries we've buy see think maybe I give our available running can had customers volumes been setting what customers away? later that you globally a in talk and We've product want a been sell. some to making are production to and volume I bigger in the you can think that than that want in finally we're they haven't -- these high never want we progress able show produce we'll product XXXX without provide little you we about have we're strong our have year for

me let try. Yes,

nutritional and like a and in diet, the with because sense solves them, to to build for point them players positioned we certain a of the echo we're would out problems, those as that diet. you to proprietary come making other have as that, it's really not of again, we've to major some of a relationships that diets. also trying you're established help I imperative world, view the own ourselves names us that would it's partner their on and And to they surprise into think strong here to as when become I very move people move advantage to our a the deep

like to for of go this We to So that that very relationships. trying of those deepen would here. course it's see all us, a balance really address delicate market the it's that out. understand But broken and we're

today. we companies, multinational feed can can in access markets companies imagine that the You world that the have

picking to Some that years more the earlier of progress, some other started up. mentioned need it's really And I about question tomorrow. your aquaculture this several ago. journey But development them response in for -- we it's

ability to immediately position that make not technology some have we the I want that platform, partners the to market. of respect something they to to products the fact want it's So even saying benefit our are better, from as our also in to, your but aforementioned we your announce said, due from

my taking for Thanks questions.

CEO, now the And President you. Becker, for Todd closing I'll to remarks. any hand Thank call over and back

thanks Hey, on being everybody call. the for

As you product could see, we're progress by great -- the and way. making product,

And over half really coming in or XXXX. when So for platform really XXXX, optimistic of with well we think half departure I are over out our more that's operating on our good need we production. to Protein segments, will the our mass see we critical putting protein, of to our results up our Ultra fermented that start in including corn all start High

start product, appear different see evolution point great in seeing in almost are to see this we a innovation this of XXXX really know around and your We where when we to product could and we inflection a Plains of Green eyes. this customer product, acceptance

until got it's we're right we're that. well. shape, to to but with then, us in the things today's year sure make lot market, great based to do, now positive on So deliver. said, finish We should for there financial we a I margins. watch as to And But executing some have

talk for will continued your quarter. we to next you thank So and support, everybody

you you this concludes today's gentlmen, for Thank disconnect. Ladies conference may and call. And participating. now