Renewable Energy (REGI) 6 Aug 192019 Q2 Earnings call transcript

Greetings, and welcome to the Renewable Energy Group Second Quarter 2019 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Todd Robinson, Treasurer. Thank you, sir.

You may begin.

operator. you, Thank and conference everyone, our quarter second Good welcome earnings call. XXXX afternoon, to today and Stone. With CJ our is me President our Financial Warner; Chief Chief Officer, Chad and Officer, Executive

before Let a to me the few items CJ. cover call I housekeeping over turn

would website everyone for that like advance on deck replay reference. webcast but be prompt includes at webcast regi.com. manually is this an Relations Investor our appear remind at beginning available with This as available A later this automatically is slide the will afternoon. The to website you accompanying section I call being will First, the and of our we your the webcast, need you. to will slides

deck earnings of with can be of those For downloaded, press Relations section in slide the the our Investor website. you dialing the release along in,

from would uncertainties you guarantee those call cause this Slide to such contribute are risks, involve of forward-looking such to on some Turning are company's results SEC. XX-Q, Report Annual contain the difficult those and quarterly are statements. performance. forward-looking contained on could will Several like XX-K We subsequent discussed or Factors factors in which statements factors reports the with described Form actual sections a differences. could These conference predict, not to the detail of file our of in to and in that are X. Risk materially Other and assumptions statements information differ These and on on The advise Form that statements.

our publicly new metrics discussion measures. or includes company measure. comparable call. measures of date the the help operating statements for revised the expectations. release based of press assess the financial undertakes on slide or as will this information only most speak of GAAP accompanying forward-looking statements no non-GAAP believe to obligation to any forward-looking business. The update reconciliation We the appendix performance non-GAAP to investors see also Today's core Please These deck the the these a of

let call me to With CJ turn over that, the Warner. CJ?

afternoon Chad and our good margin then environment Todd, highlights. back outlook. on second I operating our to provide And results, come our results. details the and more you, Then and call. Thank will will those regulatory to quarter discuss financial I high-level will discuss on

and Our reported industry navigated we operating second margin were a a These underlying strong as through reflect very the quarter disappointing do results performance. results financial environment. however low continuing entire

million expectation. The XX for second the reflected to X, known Slide Since otherwise $XX.X well has BTC reinstate below EBITDA or customer has decision started months. at last credit, to on sentiments is to negative the shift. As on we our tax mixture our excise whether provided the of was dragged BTC call, biodiesel not guidance around quarter as adjusted earnings

rates. pricing. One us they In run resulting reaching percentage some take continue we lower us and turn, BTC is are at to enabled of This the exposure. high potential to the of effects their a upside accepted higher that that capture customers have has produce on are however, to prompt telling BTC limit

the results. benefits, EBITDA X results much later EBITDA BTC. inclusive to adjusted low We guidance. higher EBITDA before of high-end BTC Chad to reconcile guidance of our lower Slide puts within of guidance in more at capture and came guidance on the in potential end on context actual on give adjusted with potential of the will previous volume, details adjusted BTC, at

over $X.XX amount of approximately net of for potential million. the plus all represents benefit quarter, half would $XXX we build share. from benefit a reinstated, That back represents from benefit net large the a the continue BTC. If first to potential the net of XXXX, be the Standing reinstatement BTC XXXX and our

pricing the rapidly gallons caught and Once As the realized into made volumes already not these previously, reinstatement operate a being we which middle. BTC high This sold. said, now we the that way coming on market continues is resulting I expect is decision without BTC, creating naturally produced about in the in other, the discrepancies. is though decision the to in market as anticipation ultimate BTC. or the in off adjust it one is there, of a and for is BTC, market depressing reinstatement, XXth market, mentioned will Simply would the of the operating marginal month that disconnect in margins. the a are the are With confidence the

our the economic for due on BTC Equivocation part in biorefinery We ago too we long. two dragging the on new BTC to closing that box caught-in-the-middle I indecision are driven Texas economics, large the has far resulting poor and now in earlier. by announced around the weeks been mentioned

unfortunately did at not profitability capacity to This efficiently and We loss to of resources Its near-term important strengthen monitor a that continually are the the as We disheartened more ensure other new by see and of to our our an our in flow associated small made the to work opportunities. plants and margins continuously it path difficult jobs. Boston. was as best fleet. highest part portfolio our operate

reduced this period it would capacity continue BTC. trend believe likely responding others in margin the a to indecision plant is environment that of the and this that shutdowns. about We see also with with We low industry protracted

the before support to of and legislative not will continue that BTC that status bipartisan incentive were the the the yet to that We be are tax recent reinstatement? get confident end We strong another reinstated. of BTC the for remains the is budget There were extenders the though in disappointed the deal. believe and incentive of by September. we possibly included other what vehicles be So the there year reinstated end

the held quarter. the in lower to expected potential back other were end factors results, lower inclusive financial of of to Now than our us Margins BTC. guidance,

the and all three which otherwise this heating spread, is HOG, distillers presently. ULSD more HOCO and or quarter. HOBO oil, across X, can Chad in cover soybean detail the as and compressed see the feedstocks, on spread indicators, you – heating known have As Choice Grease, our oil, will oil White key oil corn Slide between

self-help solid terms a the LCFS underlying of over last This performance lower year, volume and discussed increase in which of strong. result. quarter. average we very XX% grew to much continues lag the sold We be a income, selling last actions, gallons price In headwinds one quarter offset of

advantages in improve results. both both efficiency safely second and quarter, positively million X.X continuously is influence that gallons our us and our identical, Most flexibility. XXXX. which to maximize a of competitive feedstock work Yet We both production right and to key gallons feedstock our these for they was are quarter's this believe than million consumed more billion notably, XXX the periods. in we we've pounds at QX produced usage We

Some to some of feedstock due and gain to improvements operational due the usage. efficiency is

optimizing use and on allowed flexibility when can of than forth operational soybean dictates, basis, quarter feedstock compared most to Across yield a so quarter, At to fleet, of us profitability. oil year. was Our appropriate. we more animal as this cheaper prior oil we and back soybean our the switched this production pricing switch adjusted where fat oil soybean times some

expand key boosting strategy, in which are our demand we profitability. downstream We is and to biodiesel see starting our long-term to real we’ll and believe margins traction significantly therefore

in progress So our downstream let's the we seeing efforts. are talk about

fueled I blends earnings first our X. Turning REG station now higher margins. progress the Seneca July to would opportunity be to and our Slide early fueling we quarter In there as to with directly and are pleased biodiesel XX call, branded station in users. opened first the enhance selling opening cardlock mentioned future profit REG end drive on cardlock of well We as the for

thus distribution with in driving quarter Iowa, and in higher which is business the far. has of enhancing other achieved fuel margins. The I business effort our downstream blends promising mentioned many This biodiesel first call also developments

BX have These to converted from a large metropolitan mining BXX a several blend. utility company We large a from a company. a fleet range to to customers customers

Through new great the the own does environmental biodiesel to fuel with and to of petroleum. success this efforts We open continue overall where we're will us need believe fleets to and margin delivery operate. convert in proving not for fleet accelerate we biodiesel up higher demand, addition, our blended improvement BXXX locales, vehicles demonstrated a increase markets In makes that BXXX. be these

we As volume on-road our an in June half and illustration why level BXX. fuel are of blending biodiesel business distribution industry’s over sold distribution nationwide participation the in sense These levels for times of two makes of the blends us; BXX to three X%. blending Iowa were

are it than direct of the our XXX% XXXX. is to growing they second of quarter rapidly, in early Although fleet higher are quarter days, second XXXX, sales and

six in are first uniquely both ability us scale element a biodiesel blend our for on proprietary biodiesel. Ultra diesel real diesel the examples of These products. blending gives Ultra a believe for uplift filed average patent to is progress of renewable focused us of months downstream why We've knowhow. significant value We proprietary the of for biodiesel renewable positions our biodiesel diesel REG Clean our to contained and of REG strategy. and REG in The XX% indicate differentiator protect we our this our growth Clean with blend a with XXXX. gallon,

volumes geographies such at growth, highly other we strong are as very XX joint are of for advance our and is Phillips draws on and outlook venture. we Pricing new demand the Geismar continue demand the and Speaking to horizon. organically good, with continue diesel. on work renewable our in incentivized to Produced is confident potential potential grow aviation

at on our look our we diesel. major is focus opportunities, As investment renewable

an with diesel partnerships. We grow how we is business venture PXX, are important with our strategic progressing through joint planned example our which renewable can of

investment following end scoping completion We year, expect make of this the final toward design of decisions engineering. to

coming XXXX. project a in late has plan current Our online

We capital continuing provide are returns the to and the look to elaborate invest shortly. environment carefully are in to response Chad will capital investments investments, market key and long-term projects in high on growth. that managing our

provide let me items. on updates few non-operating Finally, a

of this success them sale We the they great efforts. carry announced Genomatica team business believe business for Sciences home who former joined We outstanding Life our Sciences our an we our them. as forward First, and to is have members Life Genomatica. wish

Secondly, and highlight I fronts. social want environmental on to the contribution our

tons are Slide of metric benefit see that tremendous of very We the can approximately reduction On XX, second is XXX,XXX strategy. proud produced in COX. we environmental carbon million Forward our we you integral the displaced This fuel Fuel quarter. the achieved low-carbon renewable XXX of to gallons

injury achieving reportable industry incidents we the at our our maintain record. stellar a track achieve The to addition, zero average is low leadership this to is very is In leadership important quarter, levels. XX-month – this safety Again, achieve industry goal goal June in rolling rate through in KPI. record

then Chad turn to the discuss Chad? update, Let financial to over outlook. for call our return the me and now will and guidance I

everyone. afternoon, Thank you, good CJ, and

I items, results relative line key guidance. the our want to review summarize we Before our to

a BTC a was a reminder, ratio guidance QX BTC $XX our EBITDA LCFS excluding based million to and negative benefit historical million. of adjusted shared on As was negative of range our with customers. This $XX

Our actual $XX result negative million. was

on BTC the of As portion historical before CJ lower mentioned, expected BTC quarter. because result than a this greater than expected this we is took value

average benefit midpoint, in the resulting that both the guidance in was $XX BTC Our The adjusted we of was price drop million. the biodiesel Using for of materialize estimated range. related environment or that price changed. off have lower the us. negatively a add The compared impacted $XX would largest due BTC sharing guidance results by million. $XX EBITDA versus estimated biodiesel the by the item guidance to and guidance we did our and guidance to estimate we field to our our together million in If in result, expected been BTC were within higher end $XX selling lower average million net benefit not benefit BTC selling assumptions

selling was Now due XX. did substantial renewable petroleum petroleum down in with to ULSD being distribution to sold The network. items due by well Biodiesel prices diesel. The have volume sold lower offset in based more gallon results, U.S. as increase turn few downstream by was total were to basically diesel the starting diesel biodiesel and growth was let's mainly blending a sharply prices. down price resulting gallons expand in we as We growth lower Slide flat. X%. RIN our of revenue driven solid as resale

million metric Oregon, second As not of the is we for change EBITDA third LCFS to impact resulting discussed a carbon per summarize, California adjusted $XX Harbor, administrative for notified improve margins scores credits was quarter, revenue quarter. increased California that in or time due and over prices saw recognize Furthermore, averaged diesel will lower value which the we due week, strong process, in RIN LCFS California’s the there. we lower we by revenue. to the well ton up have in intensity dramatically into quarter. remain demand. LCFS diesel pushed which robust one and and $XXX the decline did the credits recognition expect Grays quarter, approved last revenue, were Oregon In last slight renewable LCFS revenue our in To strong,

now the advantage complex compressed. increase the declined as goods our Total overall corn in XX% feedstocks increase feedstocks still was and lower a white driver are goods the feedstocks gross of cost compressed year-over-year, Turning the costs, their cost sold oil main up The loss. approximately cost was our of these spreads it's while feedstock revenue to between choice of resulting the typical cost well cost grease, like, compression of since lower feedstocks. of in sold was as in

were associated the with Our potential venture legal and SG&A Life to mainly joint expenses costs due PXX Sciences divestiture. up our with slightly

Slide XX, bar and On is the benefit adjusted reinstated. chart our return reflects see and net trailing can XX XX-month invested you the on blue BTC the The EBITDA light if capital. on

seasonal and we earnings long-term results our XX-month better are a Our business power. trailing of reflection is believe

changes declined normal Now outstanding. and reducing even issued used principal cash as XXXX sheet revolver item from cash We We paid seasonal operations bonds to settle please the of being as the is premium. which and to convertible on cash We capital our for in the Cash with for out this used debt inventory, period. our in main the move reduction down working for balance XX. Slide total stock product quarter brought the June. the funded more in well revolver selling by the

increase on liquidity, Looking In had October end at June. asset our and of our expanded available million reinstatement. of maximum to million upon credit the quarter, the credit our amount of million $XXX and $XX of we of early borrowing million we line backed the through option BTC $XXX or our lines contingent at had we million to to $XXX cash from $XX.X end at the July, the

shares and to We convertible from cash paid premium. of so principal bond $XX.X with settled in issued We million receive shares XXX,XXX million the shares were share. at convertible the we off XXXX issued We price the previously settle X.X calls, the million shares. were balance delivered of X.X – average shares The the net treasury bonds not which refinance per did repurchased our issued back June. did We an $X.XX sheet. treasury capped

our down As XX.X% debt-to-capital end XXXX. quarter the of since XX, you on debt-to-capital from ratio XX.X% from XX.X% lowest XX.X% quarter see can is of first down the ratio is from Slide level at the last now XXXX. The and

original we've on in let's the our million $XX return We budget. Now $X.X of CapEx. $XX touch million mainly high on quarter, and to second growth projects, year-to-date invested $X and million million invested

flow in better our consciously cash manage have the the to BTC. We absence slowing outlay been CapEx of

than rate and we Our tax for rate blended expect be to to rate less forward is expected less and X% to average going future, foreseeable our tax for less X%. is be X% than XXXX than continue interest the our effective

turn I'll to discuss outlook. CJ? the call back CJ Now to the

mix Thanks, investment Chad. versus budgets It of just here. the like just CapEx a $XX And quick million that year-to-date $XX was a is I'd quick make $XX to to correction,

Let our me refer guidance. to Slide XX for

quarter BTC price quarter RFS million in the third million suppression to exemptions. the due expect to is in continue the is We do range anticipate be of sold small by uncertainty challenging margin prolonged believe gallons. For XXX to RIN and we to that we environment XXX as XXXX, refinery caused the the around gallons third of

On recently increases announcements from Nebraska we've RIN modest us seen plant. as Beatrice, closure plant Hills in a note, positive as with Flint prices well the

trend, keeping sharing, LCFS higher The million. that on if to in credit. were the third adjusted would in EBITDA In be to approximately past quarter quarter with are $XX years. mind, we have adjusted all on we to BTC $X will include $XX similar estimate term $XX range million California EBITDA the BTC projecting million million of that third be the With experienced reinstated we of

and based performance for end fulfilled, forward spot existing margin actual RINs changes account actual the through could into third a quarter end and the the LCFS quarter. or values, of contracts affect existing quarter, takes results. the This Any estimate of the credit be week volatility expected to is on of to through last through ULSD margins, prices, the or market level

We have of reflects management ULSD included million curve. the on the $X for as quarter estimate XX, gains in forward our July which guidance, based of risk our

guidance year produced range gallons million gallons be XXX be full sold to been XXX reflects These New million prior the We trading. XXX of to third-party and the the and that environment. primarily will due million range from market in estimate in XXX Boston Our challenging the reduced closure of million. now continued have to to reduced guidance

margin up, improving we in on this results financial very environment. challenging focused wrap remain To

put With will our In the capital reinstatement, be we continue strong intended expected to BTC to creation. plan and We we growth in controllable our create. accelerate value of that meantime, and value elements the fuel the will results will several the future. place on remain our earnings confident we deliver to in provide the continue long-term the power and programs believe in I

before events we investor for close, going Now, upcoming REG. Todd's to Todd? mention

Slide to turn Please CJ. Thanks XX.

in present invitation-only. the at an Conference XXth conference will Attendance Canaccord is at Growth Boston. Annual August Xth We on this

schedule attend meetings representative please with your Canaccord to sales if us. So contact you one-on-one want or

Energy Annual is invitation-only. on at be Value Conference XX Industrials and BWS XXth Attendance also Chicago. August these on Summer Securities Investor Global Growth the in and attending will August Seaport conferences Financial We and the Conference

schedule contact with attend if meetings us. your you want or sales representative please to one-on-one So

we Chad had the personal lead quarter C.J. our members We comments We for have the to. available call of of to She remainder attend up now as other answer as questions Please senior unavoidable and to this open it Q&A and an will matter proceed. the will Operator? session needed. pre-recorded team call. on the not to will leadership unexpected this Q&A. be will

proceed comes Thank Energy. Simmons Patrick Flam first with with [Operator question question. Our Please your Instructions] you. from

some been Essentially, you Thanks specifically really across in prices lower to for the pricing quarter. advantaged that were actually forward? soybean we've And ask historically seem cost oil going you feedstocks cheaper doesn't my seen anytime that your have feedstocks. to change the changes it is future. the wanted those up the and I throughout of guys. that taking Hey, this historically question. about Can markets frame like you going expectations for market mentioned what than near in

it's And that shows of then if this compression described. it of Thanks Patrick, X, really on evolution kind Chad. just shows you what and X exactly Slide your for the the question. deck on look feedstock. you of Yes, And Slide again, you

of of lot of have CJ There's feedstocks changes factors we a saying, markets. reasons. seen in for cost was have a – feedstock the So in couple moving lower pricing

intensity incentivized carbon are for into like example. is markets highly corn West California like going for used and and distiller them of markets feedstocks, distiller a Oregon, that One low oil, oil oil cooking Coast

into this the cost so compression of And supporting feedstocks that's oil soybean lower pricing.

kept seen abundant so soybean palm which in reduced market of an that keep for complex with check. trades entire a than been well, the We've soybean for the normal. relatively China, supply world in price as oil, in continued has we've China keeping demand also low low; war and seen One, oil the few reasons. due to protein oil the trade Soybean lower

see one premium the oil So, of relatively because other incentives the flat. on lower soybean for markets, hand, has on been you feedstocks traditionally the hand, cost

of getting affects follow-up wondering was scenario projects willingness you growth helpful. back that question or Okay, keeps that, is this of could chance of how completely, off on going that's or case talk your shelved slate gets worst forward? the to ability My very pushed BTC fund I if some about your

Sure.

on months of closure the mentioned, beginning So started to shut Nebraska. – we've and the announcement has third on BTC of lapse wearing been the XX that one hand, the industry from in Boston in see this as new this to plant CJ the our the is Hills Flint quarter, of

can You that. see

in the run allocation. it reduced see capital also can of rate our You expenditure

the we've So year half we spending million year. originally to and million pared first about $XX budget that only with the of through started $XX back the

need control, markets be are And margins, so with managing ourselves the are, tax we what will acting the the they're what position credit we're to we expectation they the that our safety reinstated. we the and projects protect fast project, to and whether sheet priority, high prioritized seen of storm, is payback, you've things. those have types why But which those actions. balance But

kind that's we So stand. of where

– that thing Todd our other is before, about expanding and capital we've credit. line it’s The has done, talked working of

much. very Thanks Okay.

Thanks, Patrick.

line Thank question. Please you. of comes Irwin ROTH The Craig with next proceed your Capital question the Partners. with from

Good evening, my thanks for questions. and taking

you XX over million, And the Chad, My you moved change sold pinches in changes for directly BTC where type beneficiary is between million you're biofuel. $XX on the buyers So, this was the the expectations there move your – the like short-term? math longer-term degree. type significant biodiesel a somewhere reinstatement, asking million more seems the are but there to was arrangement, the quarter, of XX favorable, your $XX for obviously something into altered more – and to are back that's the as BTC to to clients in of of – million said, Can characterize what arrangement? this is product envelope among potential gallons of for of us EBITDA and customers of maybe sentiment the to that what for greater a fairly

evolution BTC to our was it than on appetite. of would an saw quarter Thanks risk I $XX based for we have million what upside us expected traditional of relationship. And, question, the customer Yes. the And Craig. yes, we was during more think

say, net in leaning difficult I offers have may months customers, too they think I terms towards exposure much what very really and appetites if and don't some in anecdotal are. the XX these upside. the it's to of types that. mean, But is want benefit underlying and into that cases they more the don't their get numbers our customer specific some of BTC industry of shows we to want it's enough retaining of the to the around customers have You on think through in – more exposures large our – theme be Again, and the us extend of table to

then, Okay, this you have a how much still to – versus excellent. didn't of in biodiesel a as Can Geismar’s we discussion nicely performing? the a And about outperform plants? even contribution and difficult the quarter quarter. to as a Geismar us Geismar that detailed environment? much profitable is you in plant traditional Is expect maybe continue this update Geismar Should

performing profitable. is very to be the We're turnaround It's and a continued It successful with very had Geismar Yes, well. running it plant. happy well.

happy way but don't As renewable have is plant likely details you give diesel the performance. be continue sense get the out we of selling, can We know, do specific economics. a you markers we very on where with some industry there to

significantly And up, for the petroleum you're is Okay. credit. than kind what to and guys market fact you lower off then fat Is people side, at friends obviously the a this Congress do job given of just and reinstate opportunities are moment? on call, there waiting for that see we that, prices months the out at on the side potential mentioned pay in can giving opportunity implement an there actually there, their our potential on forced you some take good now legislation to properly XX blenders actually the looking

hear sorry, I'm what take the I market? that. didn't off

Feedstocks, soybean high acid feedstock. and oil fatty grade

Yes.

advantage mix the So soybean to roughly the our think of because process it canola last mix I And canola soybean and year probably, feedstocks. easier compared is yield oil XX% of to and what XX% throughout the in inclusion you saw increasing using second us oil we quarter quarter. doing that of was of

is that what us it evolution our distiller made adjust helpful we and feedstock we as Nebraska perspective, opportunities think and as and came is plants mix to the little us. been as markets, the offline of we’re corn that the based a that said plant seeing keep lower that we opportunity So optimized is for from bit oil on so feedstock and our you’ve has seen an some

Should I And a quarter. Standard, the expect second may, going we continue fourth an uplift Fuel $XX into million positive Okay. delta I the quarter Carbon last that think Low then overall the quarter into question mentioned California calendar to you as was profitability? from to third

Yes.

the have any So second credits. LCFS the quarter not California of did benefit

So we’ve seen the then fourth What a transferred to into we and arguably that California price was in strong and be quarter strengthening. is the third ago. a average expect as go $XXX quarter, about year year-over-year LCFS from

quarter $XX second they prices price $XXX average. $XXX ton to up metric the this a and credit to per and quarter on been they firming During up. Oregon ton firming the LCFS last have you The were averaged well. been so has up as metric A year ago

markets that So the continuing. we’ve trend those is And incentivized seen in in expect markets. strength we

be but Todd that a uplift haven’t talked that. Craig, sorry in little really will we we XXXX, is half think – the second note, One of here. thing to from about bit there do IMO we think

guidance there, at haven’t you I if But look We in that think look our there anything what’s around uplift like. put are point. been at what this talking is that about out others

Yes.

IMO So gallon. to the to to us $X a they per numbers $X.XX translates gallon that $X.XX diesel XXXX be to talked on to in that about barrel, spreads Marathon’s for uplift which diesel just per $X to or put call, some crack

as market the Marathon far gave XXXX that’s as outlook is IMO So concerned.

taking Thanks my for questions. Great.

Thanks, Craig.

Thank you.

Please [Operator with question. proceed Instructions] Our next EWS question comes your from with the Hamed line Khorsand of Financial.

exposures cause into as producing concerned, far competitors trying credit can just far pressure just customers to you’re just it’s understand, much or if what BTC as much they not some enough as too I’m there as market the though that adjustment from for your as pricing even have is also wouldn’t as selling feasible?

I Hamed, – think question. it’s thanks for the

I signal the certainly a to adjust. market that’s needs think that

need plant talk you plant of saw and the the There’s markets Those In New to also us second BTC. having continue industry the do you So, know, to forcing some see potentially, signals clear upside that either July, didn’t to know, let market. the Boston the rates. happening that you about, maybe you talking know, They’re wanting two retain reduced to enough run to closures, you in quarter. are or exposure types about of you plant. customers see Beatrice our the to net the adjust benefit more

I the think to think way that’s about it. right

you anyone and there’s as lowest do the yourselves And actually far Okay. those soon? that’s cost anytime in industry producer as proven down to got, think closing you competitors do be consider your

Yes.

competitively very We’re is switch us and ability between for our for to feedstock advantage sure. an positioned

that use feedstocks we need that able the suggest lowest our we model to optimized So were run. that to cost

is us. for So it advantage an

other that we supply network and have our then basically of footprint advantage customer scale – and our The and national approach is feedstock base.

that So competitively is very for positioned. we’re us, an advantage

has margin. producing Okay. My extended negative question is, on can’t your not a that just given basis our last mean, BTC the gross that – you obviously at plan? I be what’s business renewed, operational

what to you So looking operationally do? guys are

earlier comment it I So gets to made. back an

the know, it’s – You plant. monitoring plant by

Boston New down. the have You shut

types mean, do just those times our we’re storm. expenditures debt, capital did we positioning sheet the original credit, with control operating expanding years. slowed when We’ve and five know, the the been of to what plan the we ratio place of are to know can our in capital looking at paying at all things is margins and operating capital down of working what and you debt, I our watching in too at line not through several debt have, our lowest this down last weather for BTC plants time. plan You XX% what from we to balance this before, we’ve

downstream, can blended, then entire types fuels, getting like the blend, are, blend moving those Carlock control we things other And things the things. Seneca selling downstream, the and of at

industry the plans, of when to signals that’s do the given we’re we lapsed. through when and know to it’s in the in as can when market renew the said, America to times a needs to for And plant, strong CJ more has destiny of for biodiesel I very control support. So got what BTC diesel that and that’s a I largest think production North confident versus of we participants and it’s and to biomass credit, think not need something a move of support It’s the the when our attention for we’re the if so forward. policymakers to producer shut lack bipartisan but operate change we’ve how folks tax the change telling based matter

in we tax and to behind So credit place. get that the get us need back decision

Hamed, it’s Yes, Todd.

just little bit. Let me a echo

the in in comments, of think You right marketplace of where CJ really not know, credit. caught-in-the-middle natural in of kind as we’re margins I the the seeing now kind tax mentioned we’re the around dynamic her right, uncertainty because

we So correct, the markets we prices RIN see out to new get and of certainty certainty. be of and type prices, that feedstock will determined once et we cetera get way, is that will a adjust, things will some normal there once

are true able do value economic So right that now, GAAP reflect we our yes, reported to deliver. current financial the not numbers

we’ll get that we and hopefully So soon. need certainty

Okay. Thank you.

you. Thank

Thank you.

questions no have further this time. We at

So to to turn back floor comments. Robinson I’d additional over for Mr. concluding the like

thank you call. participating. our concludes this for Thanks Jesse. – And you, Thank

You may now disconnect.