Green Plains Partners (GPP) 8 Feb 232022 Q4 Earnings call transcript

Good morning, and welcome to the Green Plains Inc. and Green Plains Partners Fourth Quarter and Full Year 2022 Earnings Conference Call. [Operator Instructions]

I will now turn the call over to your host, Phil Boggs, Executive Vice President, Investor Relations. Mr. ahead. go please Boggs,

Todd on you, Green morning. and Plains Call. call XXXX Thank Officer; Chief Plains Stark, Jim Full to Inc. Earnings Chief are Marketing Investor and available, and today's on can and Leslie and Partners Participants President Product find Meulen, corporate page is Events There both and it EVP right. and Welcome der Officer; Innovation. Executive link good Green a the under you Presentations the Financial of Year on Van Becker, and All Fourth websites. slide Quarter presentation

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

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

everyone. Thanks, Phil, and good morning,

some We fourth prior demand on small the quarter, imbalance let's industry in to a so we quarter such production and ethanol headwinds over lot the have versus great continue The very quickly to a few margins the we has that a still due experienced days. margins. This happened in during quarter, but with to heavily which have weighs in get margins faced potential, off started. challenging talk weakness about, are lows were improved we

million the little in In the average X prior in basis our broken very the for a very This prior Plains the platform of pricing which pricing across market year, than Corn inventory addition, structure per day hard some year. who outages little when December the gallon future. In our leading in embargoes, close, and production. higher time to in time. remains weeks. period for just $X.XX the We of $X.XX each rail backed to margin prices on few offline the our cold Belt, barrels hit some of the -- up about X-year caused opinion, quarter high combined this those with alone, cost volume and Western and going day storm severe per unusually plants where of our than A the be plant mechanism snap for Green had slowdowns over estimate locations, platform addressed needs stubbornly higher remains around a the $X.XX bushel at

also years. years. $X.XX to we the the traditional that EBITDA million. Plains and around our our platform, our of transformation is and consolidated past we of close last on contributed continue production positive back online. Despite challenges, important based is Overall, few In showed maintenance rates of on rate XX% learning utilization addition, temporarily gallon into economic current margins, platform we ever over increasing we out to gross to at as for than idle results seasonal XX% to decision we our per our What a even $X our right continue and locations, to these the transformation with to invested execute we at market continue the are time see to capacity conditions benefited pulling margin the which more ambitious the into our few evaluate and third an made from production we quarter bring why you headwinds from laid over capacity technology ran Green across is

a with of protein pillars all operations. combined Our our of X cost is on lowering focus sugar carbon, focus our on oil, traditional and

XXXX, which Shenandoah construction facility and the technology X of made additional X scale. breaking transformation, total MSC great at locations, commercial protein completing sugar the first makes in clean During we've ground on progress on our

continue aviation make platform, on the alcohol-to-jet for decarbonization to recently. positioning overall we've our of our with future of fuel our ourselves made announcements progress We exciting sustainable

Mt protein. now all new MSC for are contributed now Obion of at Vernet from completed quarter, production our online X record another oil. I ultrahigh MSC producing during Our operational yields projects Central continued commissioning our come renewable incremental City, corn to to say and systems the that quarterly the can these facilities and and during low-carbon MSC

a production market. set of during daily is this for in chain online alone, a fact, continued our bring these supply labor This platform accomplishment facilities records. week huge and In we challenging to team

call, last the I on make have expect in significant our done and for progress which we the I sales commercial exciting to that, indicated will later call. On XXXX, we that discuss just

and our fuel initiatives synthetic carbon products. to Gas utilize Southeastern first from Our continue a with to to produce progress, carbon starting and methane locations Tallgrass Osaka

While we still now, are the of about product phase potential this development project. optimistic in for --

a our a partnership United's only also the product for also PNNL, announced but for and develop Airlines believe as the be urgency to could for demonstrates which a of into whole venture feedstock, of decarbonize company low-carbon use offtake to well, a agreement shareholders, sustainable our and Green joint aviation this new has the supply decarbonized as United the Tallgrass, not transformational, ethanol We aviation we Plains with just industry. and developing fuel fuel, pathways alcohol-to-jet technology.

been optionality years. This in seen, to the do in ethanol pilot Today, our technology our coming. business we what as develop the fundamentals We the towards of are challenged, we structures. all broken commitment which we like Blue why biorefinery is opportunities demonstrated EXX PNNL, the are and not this coming continue of to Blade there a transformation year. margin from value higher straight our margin base administration technology up confidence important The as EPA fourth for recently around open billion our to ever. things platform it long-term proposed this than Energy to has on hedge is blends, what us times XX.XX summer feel are as scales per quickly a the and There excited yet during real remain works for ethanol move remain We record, repeatedly to gives RFS of novel to sold a gallons be allowing facility more and volumes forward. level forward I has including the have year. This

enhancer octane proposition both as lowest-cost domestically value Our the globally. and remains

from headed will distillers continue, believe Corn rapid oil levels, our RVO to diesel the are more corn We regardless the of renewable remain kernel and will demand. production capturing of are every final we oil And and mechanically. in pounds X.X expansion

do, a success over additional carbon our our As executing discuss we efforts facilities in on we strengthen and our just XXXX always plans. Jim on $XXX plan, our we cash. focus moment our bringing the are completing and million online, things clean executing oil build Corn transformation as will MSC recap our to sugar in going year and within to Shenandoah during sheet the in with balance on our ended control,

transformation we execute believe on we our strategy. a As well positioned are to result,

Partners per and unit Green delivered $X.XXX partnership declared ratios. maintaining of distribution Plains coverage stable while quarter a consistent another Our

to the results. over call overall the to Jim? update Jim financial hand I'll now provide And an on

driven higher morning, rates. revenues $XXX a Green and than year fourth same ago, higher Plains Todd, period by $XXX everyone. you, good the the consolidated for Thank run million quarter million,

year-over-year quarter, XX.X% to run the the rate rate comparing last period utilization to Our plant rate year. a in favorably during improved XX% run the reported fourth same

rate viable for of to we capacity As Todd is environment restart the in which the economic XX% minor the closely term. mentioned, utilization we when the having near a are on monitoring have, impact

margin the million for diluted $X.XX we $XX compared period and for diluted for or last quarter QX gallon gross year We year. Higher improved saw to $X.XX margin was gallon $X.XX loss demand quarter $X.XX per last to On period lower compared XXXX. of the to Green For year. to share realized $X.X loss the XXXX million share $XX.X same when basis $X.X reported per consolidated to which XXXX. Adjusted crush million Western a per of last is a same basis, gallon compared for the to ethanol described compared lower the above. quarter, due quarter-to-quarter $X.XX factors of we a attributable to the than corn XXXX, in weak for sequential in million net corn third EBITDA a [indiscernible] QX the Plains per the or the consolidated contributed

quarter. Our in and for natural distribution storage. performance million fuel Ag in & better versus was our the $XX.X increase in driven trading million a This XXXX, Energy merchant turned gas volatility racks and by in $X.X segment fourth EBITDA a our recording to market businesses increase

by as calls, driven we to fully compared all QX through last the is of the we fully the increase capitalized running count of described higher to line million staffed most transformation was for business. Interest fourth other was million year for expense our This This our in on costs was company to to includes and personnel interest million related reported in For for and of head segments higher which fourth quarter, with quarterly the our and insurance, impact quarter. roughly related rents have -- $XX.X million our year costs related 'XX. SG&A $XX.X have of we higher and fees $X.X also the quarter, expenses plan. and prior $X.X debt increase the for amortization

a by million, lower result million expense debt approximately from the interest 'XX interest convertible balances exchanged year, 'XX be notes to year expense we the that and in approximately for in of We are given are For where and lower into rates last XXXX. as currently carrying significantly being $XX.X anticipate interest XXXX. was $XX

be the rate the tax earnings tax million, XX%. carried indefinitely. for minority of period were that excluding Plains balance quarter, for year at be of for of compared million E, the sheet. company's anticipate of end expense may currently Slide income same to the million X the available -- tax deck, the summary 'XX interest to Our company $XX.X should we the of the was net expense a quarter normalized forward On around which our a $X.X Green provide the We carryforwards for loss $X.X

ended we million of and shown, XXXX. $XXX the financing to the with end of net cash compared $XXX.X capital of million working As working capital quarter at

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

we our X.X. Plains as position solid a continue in remains transformation sheet Green to balance Our

For Quip you the about $XXX of other our Green Technologies, MSC our invested million to to MSC approximately for capital $XX have Tharaldson communicated we capital. Total allocated To the about initiative, to million $XX JV and which our CapEx platform million and on $XX initiatives regulatory in of Fluid we Ethanol. maintenance, quarter, across deployment was back 'XX to of and was approximately fourth million with including and profit growth $XXX about towards projects, sustaining the growth share network, million including date, safety million, shareholders' protein we capital QX the million the call. biorefinery $XX across range Turnkey Green of Plains our our $X Plains

$XXX our also share XXXX, in including clean this Shenandora the in of should the tech installations the capital For CapEx to to of couple be in with on and begin construction Turnkey project sugar MSC finish QX we platform. our build late throughout in million, complete project along year range for million with a 'XX. Tharaldson anticipate Madison our DCO We capital will the $XXX to of up

and $XX.X flow, versus Partners, earnings ago. period than storage for the million of an were volumes partnership Plains million and For for performance, reported period by consistent a cash same of continue and Green slightly throughput same the Plant we a to $X.X EBITDA adjusted XX.X% the quarter realizing the realize year utilization quarter, better the Green for $XX.X million fourth net for ago. income at the rates year increasing higher, Plains

higher For and XXXX volume at million on than anticipate were and XXXX, for gallons, storage we volumes coming in the a throughput similar around our XXX based XX% year approximately of of amount outlook. XX%, current

quarter. the result, distribution our per under returns Xx of with ratio declaring a partnership to unitholders quarterly $X.XXX continues unit a steady to coverage support As for just

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

its Over declared the adjustment the a of last adjusted EBITDA million, months, -- resulting of for distributable produced did in principal year partnership and excluding $XX.X the I $X of $XX.X coverage by also also $XX.X cash past XX million, debt versus down pay increased ratio. payments 'XX flow $XX.X X.XXx million in for million in the distributions term XXXX. the made any partnership year. of the add unitholders would and cash million

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

while a commercial a From standpoint, been to Jim. XXXX our Thanks, expanded as platform. we volume significant for MSC now have of pointing quantities we've now from

is sales some been up time Our numerous with our the impact for customers in showing now and team working has efforts.

available. of been meal the impressive, happened meal we know volume when we have traditional of tons purposes. The has we never new what for we we each new mass career, have our customers has ingredient and XX-year product expect the meal in are with and year, corn we customers species volume appreciate or they or spoken be the my fish contracted anticipated intents high-protein a from in is sold one, as never and available, in Hy-Pro half nearly been the of that our And For our capacity will combined putting production. all XX% since in besides us across span keep a really have soybean and repeat believe plant-based or something approximately for XXX,XXX to ration in really good engagement

focus when protein and In journey, protein-centric This view knew We initially bottom we crude impact legacy solidified and feeding world. our on our to to the by the base transformation we nature that our we ourselves production differences on value the embarked helped both of nutritional and products. would with focused the become volumes and always we the providing unmatched that of these needed customer distillers between line. new to this customers' our on addition, the shift part once grains underpin redundancy

that our predicated the combined is to customers our we successfully to acknowledgment our monogastric very our in stronger plans will have see it's sales partnerships extracted early our other amino plant-based This and acid As benefits even an ingredients. develop pet over the offer line initiated relationship are of certain fermentation our on ingredients also in that we East nutritional which animal that completing to are fermented embraced and platform, solvent create customers' whether solutions by for food diets. development, customers, with peptide with on the can cycles starting mid-XXXX, much view product young aquaculture, enzyme or with is

returns we up over $XXX that a we sell initial traditional fully of average which to we debottlenecking with MSC book. easy in mind, projected hood feeding is expected, we combined report oil production we look have is that moving have is are levels we was different exceeded cycles the trending species in was XX% demand X/X our the this as rate When and this around for sales control Since matters target product beginning is requirements starts and of process to been the Green harder expect remaining running. focus in we well at real we this a before other premium pricing, protein is as to The advancements protein at the J-curve average are important, systems from I'm inception This and our geographic food once addition a the but our with global was our all of premium you customer at date, we corn effort of for go into you depending fully and now on for spread the indicated and under requirements XXXX, belief stewards knew even different were outlook guidance. old. quality of low for been production since made confident customer, to we achieve the can on to ebbs anticipate excited assurance that XXXX. On will flows, locations. focus on young of consistent the over the our Keep This Plains. With and had at to to and move different This real. sales All said, they large bit. of based and and are have the facilities. starting in much levels, to we our now not those quality dedicated aqua we volume our premium do product but some make across what distillers species shareholders strategy, uses pet have I'll capital you know than look to that on to inception we as we products the base approximately negotiations of customers, this would the over which protein customer happy on available give up,

Our great product have our our journey. demonstrated customers their confidence in and

of The pricing levels, meet are at helps that to MSC needs. on is proud our and keep are and helps returns. product, offer XX% we new to to with contributing seeing commercializing solution continue acceptance technology we assured, also above. developing focus cement their oil XX% while proteins strong it long-term renewable helps a project Rest to We corn higher protein will higher yields and --

for platform outlined issues, does especially the permitting also the have where that left So on rest with leave gear our of several calls. us and timing? We our supply and electrical chain

their partnership gallon with we million own where plant, under half MSC of is XXX Turnkey construction. production Tharaldson, Our

location Our a required MSC receipt this technology Madison, of the permits from up under development for for summer us construction pending next should in now be and process startup. is our state, XXXX the which Illinois for are

will plan the When completed. Superior at you But also is capacity, including than half deploy will our and a we corn we're longer Minnesota have oil outlined once situation X-year add extraction a DCO capital will to MSC fully the focused and and technology mechanical in focus XXX to we protein laid Tharaldson on installed MSC Plains now, more to of on the original we us renewable deploying full for as looking This are reviewing gallons means we the Quips want a date. right relatively where system out be. to right even journey oil Fluid in first Madison approximately yields move could give as due we X- the to in efficiencies, are curve, in maximizing laid that the last to like I to out location later feel plants the the and permitting of are DCO price enhancements, there Fairmount of we but Green more and have planning and the on take meantime. size Otter be strategy the several the close calls. At extract our Tail million important, up stage, Our

pivot let's now sugar So to business. our

We and and are we from to Fluid path game-changing new disruptive the long IP on are be that own control technology entrant industry truly Quip, a seen in the an deploying where a a to truly hasn't time.

Our exercise learnings those and of has Dextros protein execution we smoother well for to as apply us an set can strategy. this even up

to potential had big component in is dominated dextrose calling isn't mill commercial of the the an into We've an but carbon they up by ability at dextrose source X plant door a opening us were Our industry customers rationed lower a kernel yet. facility oligopoly. corn producers, supply of a from from convert product ethanol our because starch completed unfortunately, product the a dry to new

is from well game-changer or producing Quip Shenandoah, facility to expanding scale testament they convert of can and in annually, XXX system at to first on wet Shenandoah a only expand corn that where we stand oils to biorefinery under are to developed. The that IP biocampus, coming the their million design we as track and milling still is significant extraordinary, we from we years begins, equipped coming is facility Fluid it of other of to now this we're this the million to engineers the of once dedication invested bushel feed change-the-world great efforts Our CST investment to and a How in Shenandoah technology majority remain is to to as that ago, this to Dextrose each Iowa, true produce our continue commercial and first will on a suite why opportunity a future pounds there keep they know locations. and right ethanol their flu their technology technology construction CST capable The year, disruptive will on XXX X deploy demonstrates it scientists complete -- the pounds, feeds I protein we to anxious are system. and compelling, high-value optionality way do ag The build our engineer is scale the protein less technologies. have of animal dextrose. opportunity. the are a building separate starch and know a ingredients up believe nothing of thing this of as The that revolutionary just talent kind to and additional traditional and corn attracting a our economics industry this track. we they is path is are

in right sequestration as believe aspect access wells low-carbon we than and benefits Green like permitted fuel as a make IRA such to equipment as Carbon in XX% gain continues traction XXXX. Certainty the detail X progress away acquired IRA I long-lead put will of that can the payments progress right with partnership over at X,XXX options down our Our Summit's quicker our and us give footprint, and opportunities on into Important to is of portspace go which over many competitive our with to continue to the schedule as the quite mile X/X the the towards equipment track completed from Solutions for remain mileage remains carbon in Plains aviation to now Iowa, advantage across like start plants. outlined and market has states been in systems of combined acquired on entire strategies. maximizing heat of has capturing the critical last that on we already most we into synfuels others. carbon. We on critical and a carbon power the sustainable initiatives us Summit means continue to well impacts Summit work Their went better on compression and Class biogenic earlier, to critical reviewing in bit call,

the provide and Reduction meaningful a of XXXX ahead, margins to in the Looking potential about our uplift remain beyond. to Act optimistic inflation we

As estimates I from program easy, believe told mentioned me, the you the before, forward told but your potential math this imagination. you if EBITDA use wouldn't you I and I you I'll let alone, is

IRA. which saw Illinois As lead the $X.XX sustainable of roads all a I SAF of we to The aviation as know, and to also are from low-carbon convert ready-made this on is alcohol well. am future produce you the SAF passed aviation oils both the state the adamant renewable our in needs alcohol-to-jet of per new we their we that for waste sector to future lenders decarbonize and industry. Recently, solution our diesel credit top industry fuel, as gallon they the

alcohol-based For alcohol vegetable to oil-based important both ability their to aviation are much fuel scale, bigger jet from solution, is give fuel. X reduce sustainable Scope emissions a but the into aviation and

our for higher these in pricing from oil The us our and XXXX the the we opportunities confidence projections. deployment With continue clean IRA years and and MSC strategy protein outcomes and even to coming upgraded of expansions, in protein capture potential beyond of and to technology over to technology front add our move utilization, have impact and corn totals. hit levels sugar to to higher could carbon nutritional

and we aligned this around economy, set up underpin bio and to drivers started. getting the with vegetable protein emerging have macro and that company demand, oil our are just be decarbonization We initiatives

which believe create we shareholder the Our to drive all value are will value. well, and our significant day excited employees are future. every of in exciting customers as

call We for Plains our of can today. your the appreciate Green question-and-answer transformation. support Thanks joining continued start session. We

Craig from comes Irwin from question Capital first ROTH Partners. Our

Biden's seen private in can almost strong going with this of Todd, with see sounds asset to some So the years. definite that maybe guys. out. what be serve confidence XX this and kind for that there's in points have laid put to intuition other haven't publicly? talking in players those IRA seeing they're on plants the for about point for -- again And share or an data demand Can for out future? values It us of really you're I a this that there, the not like unpack deficit you the to operators' like related ethanol us what funky maybe capacity particularly you whether the the we into SAP and talk we and President opportunity could might something Can something us just to fuel

we to XXX Thanks. strong out at we've question. seen least over plants, happening we're that that that million scale market have processes that big the been in What -- on gallons built is Great interest Yes. the the in We're plants seeing at there, are aren't even of were that what we past, that making it because they're some asset hearing rounds today. values of they're the round. making traditional were second these second some people bidding sales the to able buy the and not

even So strong today, almost values, towards ours. values platform like we're cost replacement it original hearing very more though would a lot to rebuild a

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protein is pricing. second Excellent. question My about

So it there's like speculating product. would the your seems people controversy months, pricing for some that every MSC few surround about

your at potential that were commentary, product you You as aquaculture, concentrate, year? to hoping soy In closer pricing in some of how pricing soy concentrate, to soy about really you'll clear this we to think looking I was XX% be rolls selling look boundaries today able but out pointed pricing. how Are into particularly the kind things should that past, might we consider. and the to of meal be at versus we put around you pretty this

we freight that the a go distillers traditional what value exceeding products obviously, -- whole shareholders an the we're we're interesting. initial very lots isn't. relative investors, originally understood over Indiana lot relative rumors make we are with pricing, certainly, foremost, our was things our very at rallied spreads, wanted very, Nebraska when there's maybe that, believe on achieving over of whether we into we hard actually protein, times what Yes, against Yes, around there's of consideration is platform. average What to or grains production. but our and But it's first laid we to and geographic, $XXX hear where always which -- where sure is out

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they year. out we're as in customer first the that half earlier because have said for year range We sorry. the is today any whole with effectively can't they a in because sold "Oh, views not you. into don't call, us so we are to no, have for say, as to for on this volume what want available just species We -- first available. They different -- keep to us ration, But It I ration and have expects go well. product may price of price the at of a a almost have expect our our all we because wide the

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great are it So us gives where a confidence we from on perspective. pricing

from Our Securities. Levy from Jordan next question comes Truist

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Yes.

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also guys. When look -- have and increasing make in before, why industry to it's worked for and mill, wet attracting out XX child's you making of a that are traditional which dextrose to our They the process who DE, ethanol was are our wet comes ethanol mill, never would we color what what matches it these the by in our the in more of wet way. complicated. is now at happens much looked all this at to they play company capabilities millers equivalent We sure right a

time is the first have United is sure not else, truly could customers but started. get more oil, customers look the anticipating across in above just to one this even we've rationed make product, that attracting, above talent carbon been thinking they now. structure Green and are that us about and supply, long-term Plains many robust, Yes, the revolutionize had calling, we States for wet short need are for So and that structure protein the when has we we've we been it basically they at we're all call got are And that believe to only dextrose. saw we're a the debottleneck it's our to got the of you term, player, really are out matter and technology next to believe the some X years we Dextrose be of long to X above game-changing we in above just it. But We of general, they're that get an their the But capacity. so the we going going big that and many, expand announcement margin of margin big milling the industry. this

a on my even So to faster our we're could on go just executing protein track. future. have up We learned I today, we If in But like the and patient But we the starting in position be absolutely, what would. magic I wave wand, is in. systems bit better we're CST and this. critical to

the you to I but carbon color. just any situation. an will or pricing how a be can just I'm know you there. thoughts jet curious it's I'm industry level, of low curious feedstock about have Good Maybe situation, might more a don't how -- if just it a maybe on ethanol you're general structuring how ethanol much about go and given kind follow-up. say here, from thinking

move quickly but access future. in a from to as obviously, not today, We the can progresses, ATG deficit

that really, gives the I some industry And think, back so pricing power.

foremost, alcohol. and decarbonized have Now have to first you

from XX standards scoring in on between industry, the to measurement XX or combined XX soon as to of that alone start IRA. just as before what even to of just points pipeline kind you XX of that of there, greed, are another your for have the in inject happens you plant. farm other meet carbon most somewhere you on heat the X even start which is carbon, the the on the and power dropped under When be still on think the whether it's set cluster the a you and carbon. off that focusing going You about direct areas. to aspects and you then And seed We're

under we interesting mean, see to be in when in excess I low out. look But I we our plays price than to today, the value that, well. how $X.XX carbon fuel times bit should market we're higher are alcohol it's at else at fuel a of everything relative this were be an think there have to So as going fuel. because where little

to player important process efficient Airlines, this very this who have an which margins And the partnership agreement. Those "Well, the buy We our forth a offtake And but I every have real PNNL, is structural that are big technology. say, remember, a think quite is is certainly Airlines dime-a-dozen, an molecules be to day. is and who the Tallgrass United across to we ground I move have frankly. moves structurally fuel. just in committed saying, an it? not will who's we people supply deficit. invest going technology venture. to a a buy pricing want in the one. own believe on chain. know believe joint stake don't United And we'll from I and this the is we So an the some This with excess believe want whole in what power, I infrastructure we And brought just

of importance the that's this So partnership.

it's to vegoil I hearing jet going today weren't what airlines volumetric very jet. uttered ethanol X going path. important, happen words out and is Just only think uttered those be about of RD-to-Jet are real important. we're mean the true to Yes, that but as extremely years well. it's X, to ago, to absolutely.

refine margin structure industry So fuel future, I alcohol, impact, combined between the to in going sustainable really also but make aviation the this vegoils we're significantly. on of real and believe,

Gupta Manav from comes from UBS. question next Our

see of we locked be could you is or corn is doing. now oil XXXX. what little and Jim price this we about question EBITDA that is all kind talk in can the of Can bit what looking My a

various EBITDA the through components the us guidance walk just the for could you of year? If current

intact. on bit going it's we've I control little improve mean very, so a the is do range what headwinds, as given to We've seen structure low as on what today, going curve, is margin still ethanol EBITDA just fast. have comes to and you we obviously, I to the said, watch less It from that just Yes. closely. really down it very low. there's And to this some But know year. moves we we but

I the that forward. And to to some -- rationalization discipline margin to industry. And have we're going so to continue across we're and going think move to that going structure there's be

industry the think cheap fuel should on that too bit away and the asset earning tired a be is earning I giving base. we return their of our little been not

small you potentially. again where don't little put this They out a what real program. quarter on not we against -- said, in big prices, in tough has and times very our bit. people with have into that pretty what with we're this my soy returns means bought in QX will top though the recent a question like optimistic when oil play a reduction online, opinion, talking the like and and look oil crushing widened the today to to even real was of play, amount. with that, their for have will corn relative oil even fact still in market we're is we some the share bring coming the volume spread I is for it veg this well. And demand little always it in we're protein year earn for just year beneficial past, year. year they've generate that into been oil this crush share of add corn production we a demand XXXX, hit the to On which that will at in meal, doubled the achieving our ethanol. oil the oil but is the going even which they even quarter. But all throughout the pricing into just space producing vegoils coming potentially But We're EBITDA to potentially for where exciting back double corn is oil that more This diesel and again potential from oil, so renewable just sold a ethanol, significant meal are online tougher year will as And back QXs bit the

ethanol and to forward we're issued the we have of that We earlier. really looking we're it, same to guidance watch range closely. So in that just

too, of we'll as corn more you is we these on as and spot renewable make, of aviation move The the sustainable preferred we add renewable want seeing demand add fuel score CI keep oil in for forward. would technology. to plants diesel I more it are low Manav, a

A very quick follow-up.

oil. As for is you corn hinted everybody looking also

corn oil. have You

with and a give in Wouldn't if We good a lock any hedge do price have deals. seen is on, there up which are to against some of very facilities a some you volatility some Bunge ADM this oil like corn be on corn pricing. that could these oil good time of the new coming the

find Yes. don't I Manav, somebody you're to with think doing going multiyear offtake high a today. price

volumes I try the remain spot at market low in or to think the would carbon. view least is in the lock rather they of

behind. to valuable. kernel. And the really the And $X,XXX a put bushel corn we in ability some you that's to well, still is pound ton, others valuable oils, I in really, that that to unlock believe a to not per $X,XXX $X.XX which It's are sitting source as that and Green that very serious going oil waste just R&D can the there. try and Plains. X.X pound, think low negotiations is it's easy really been partnership. building shareholders a this our and we of beneficial It's side how to this structure I to get side. have we year volume on is of what's potential be beneficial industry our The for discussions our the think shareholders. think where really What's out, is locking this built like wait with several this a patients and bit the with out. And the I pricing do start last of And continue at CI be been industry let will $X.XX and for in we parties

other anything last lower going residues. some pound than of one than else You other the oil kernel of can out it's in to be and development there research X.X serious that still because carbon waste-driven behind trying type unlock put to

other to robust in that Can and years the pricing because Island coming for our in vegoil coming I remain No, we'll is I position. just global that's think in think I And I the demand see a vegetable great remains you oils. over the products. global we're think so palm really for So control globally. way that online happen but what's U.S. going

Our comes Oppenheimer. from Owen from next question Kristen

that so why that Todd, ask your of specifically, could partnership, happens Airlines you you us the responses, of progression want different we've the and was agreement? I just is in And pathway catalyst? help I from about develop say mentioned as United that this other seen. SAF And you announcements but understand the some more wondering if what other just about to Tallgrass this

a difference. a the is were like Plains between process, Yes. That's a different and it's a steps traditional up chain, This technology. you of parties carbon to ethanol with sudden on, their really why that's that and Green wasn't sets very process ethylene to that it's really catalyst exciting, a showed this X-step names, as jet. What's SAF There the carbon. bond aware carbon It's breaking that's and process, chemist won't are for. the X-step comment this teach-in a double they technology then the which it's we what Tallgrass we give traditional of was got I'll PNNL. is break all and actually, competitive jet technology. view, biologist, other oxygen we're easier -- to can bond Becker the and us But technology. but it's not well. a and alcohol certainly through a and and on get this of this can trying between ethylene I'm process then a technologies alcohol up double unique, And the X-step the to and carbon It's a do again, about you or later I and much And Todd to on

the want thing When that partner -- sell could control technology worried efficient we with it, the first we catalyst. We say, move the you sure Denver fuel do the we We it have us. we're make Denver we and to knew we to the to airlines want first jet. financially. United in catalyst. We And approached with the West. East have do. develop quickly to we And low pipelines But with We We vision Plains be want valuable committed, to Green had to on optimize say very, to we alcohol all about to do felt and/or both that. to that. to we want it's knew -- to we partnership. Tallgrass a together, injection we're help either get knew carbon catalyst. Tallgrass Chicago. or supply a of partnered where We were for versus is we optimize of to knew want that weren't We to partner in in very So you wanted we optimize we had and to alcohols through get buy was the when to put what carbon to doing easy PNNL direct the we the in specifically United

catalyst this move foremost, we as and year, optimize We're first with as fast global experts that. So can. to working do

site the I what Secondly, Chicago. we'll our that, start close on a will with to while plants what and or say, plant doing look in where Green about think located to we're pilot Denver plant like of between and one would Plains be

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don't You ethanol to ethylene. make It's keytone process. a

very that So a we research is certainly well. technology. that as believe can you on interesting do But this

not doesn't We that successful. to going hope And choices are well. I how but ours going we're be going to how -- only as there'll produce there. others make also as they're mean to the only hope successful. out technology. There think we're for it be to produce as it's well airlines industry, We many all several Now

it. about excited So

interesting to is the most important of jet volume, that if And the think want is fact which I most through alcohol the going for you're recognition be come have decarbonize to very isn't go story, is share you that could from million the that billion gallons of to convert fuel, you volume. is part for really quickly XX going very, go you about Jet, globally. to think XX to million really XX because excess today much gallons if from deficit which you production really it, of or into only

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That's I follow could take up... you and If that on up think all teach-in. super helpful, I we'd

that... Phil tell I'll

ethanol follow Okay. on If based I up business. more interesting a the with question, could less slightly

much moving XXXX. to about export market? and for Canada do Just the just outlook like you how places demand see you're that your How to serve ability thinking

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today, you discount, at still, discount for to If remain the we at planet octane. the now, a right molecule and probably cheapest look our Bob our gasoline on

still very very, Our remain intact. octane values

it's think engagement. I So

the bring as well. up, can't molecules and going As we I gasoline but a believe talking go to demand it, put a real back that's open and China in need driver to open still think into needs it's be even can that continue world puts back up I and I the still we're record, that but about And bid also fuel I broken post-COVID into know to to a probably tank the said, online. bid

states over rates when are just think you up at exports, because point. not know And you I Minnesota much blend these XX% of EXX blend I interesting a really XX% in and states, pretty at look now. also to lot are to can up what's year over round this is but is easy -- and Iowa,

increase excess changes And can the will up States, pretty cleans think so view X it where across more this much our blend just the in proposition ultimately, go. really whole whole United and that of the EXX, on continue percent we this gasoline as value remains. And ethanol supply to average industry our that or get the industry

kind a take on that's you Canada to. we're think more more still if look of still export I still still a We're you little look in at forward the can move quickly what structure, your little percentage into things all doing rest exporting you kind demand blend a looking But States, if world. with the moving very So happening. ball and to United SAF, this margin ethanol. say yes, B exporting are you grade, really yourself, strong. is of type those of crystal to We're the of We're some and some business

question Our Alexander next comes from Jefferies. from Laurence

on [indiscernible] actually for is This Laurence.

been to So actually, recently. SAF on guys most have questions but announced back just you the hop JV asked, that

don't you I'd you shared projects could So get and and about just it. JVs this thought if at question, just And share I for any earnings. contribute involved a think rate appreciate But to in. once guess, maybe it's thoughts up how how running IRRs you the you you maybe much wondering, that, around basis adjacent think an guys I run your could

be So color that would on any helpful.

look projections I and the first our as I indicated, we mean, think, it's mean I do, that the now, short-term whether protein, still all of stuff at Yes. when intact. of which IRRs long-term remain we will we all,

these As the more selling achieving MSCs rate even we real where costs. of -- of up we're volumes spreading believe start-ups because on finally across we're top Cost we of high. we these of can -- returns products every open the are projected that be as of something corn what will do spread day, is with that we oil, first

that just the to absolutely are scale term, it we up. And on takes and have take over long consideration, we so But to time always in track.

oil corn well. very Our systems, they returned obviously,

opportunity, up system. versus are X-year we're pretty payback, Our up not margin things if construction sugar of up look When we running. and these today, but cost be a to the we the would close at running and getting and almost and it running,

know the when is we So and where $X.XX initial sugar be our producing gallon the at that. for price we just additional don't really a available cost, value that's going was to get there. But thoughts, base range and in production less in sales Xx even than think, the of we traditional margin

that than pricing current on payback traditional pricing Dextrose. So and better less a than for potentially X-year on

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look think So versus I have there's that at IRRs will in-house the obviously been expertise else others. there what do we with well. things we consistent everything be can But doing. as we've

from Eric Our next question from Stine comes Craig-Hallum.

So spoken I you just XX% know talked on for. about HiPro,

and contracts? expect contracts, in repeat a typical just progresses. the year the terms number just about moving locking right given the think the as you in think about then that the you buys maybe here You nature could dynamics first, is length when the do also talk in And what you of up of level, J-curve the high the pricing market. of from Maybe

make just we spoken by something just not it's daily face let's It's the question and Yes. so sold, That's -- priced. a why, we're for clear. sold sure

shareholders and that's understand. So for and important think investors our I stakeholders to our our

sold first the of half In year. for fact, out the almost

all and meal that already up before sales rations plan gluten did customers pricing And our sell we who on And showing But more they the world when have our production. to back we a customers together because then today. we shows to XXXX every bad, and do put do interesting. on we're we thought that because volume new no's flows, would partnerships and around depending which ebbs up we we've is of good had where again, reach had want some show and -- We've as say to keep up. right, and So corn XXXX first we day. to we replace certain becomes know well, working

to you let XXXX just already protein focused levels. know at higher looking So we're past XXXX on

rations we into players, global of are our team So some keep as year in believe going have they to the because back domestically because shipping sales when Aqua aqua is hit the are well to volumes last today. half globally and is the we're already going we more really in to than

of So we're holding the year. the some of those volumes back half last toward

that of large in us We ration the put they some when also know back and expect the year. for rest be the have of customers these come there us to

that. on understand indicated and we price, to how I've you we So

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the -- little that. in of bit hint gave you I on So and script a a

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America. next Tiano from comes from Our Salvator Bank of question

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and capital little of of expenses. is should a carbon the a making you start we expect where a sequestration to obviously, easy, quantifying some But what benefit. do very you're project clearly putting bit of because your math you're this the can also So payments fraction the it's only with but no

us $XX can rate or help the higher of benefits year? in project guess, of $XX CCS low staggering, million a million you are per profit doing XXXX the path yourself, could benefits by the take and how So not yield which why size for cost secondly, ethanol, for personally? given I projects they And a

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pore this have North at look That's they got on, in at X/X of you space we're Iowa, they're announced. storage. everybody done ahead else the They've point, If done pipeline in Dakota.

not Now rightaways much obviously, some announce, heard but haven't others. we may people from on

and being these focused that Iowa or at than we're and in yes, in Illinois We sequestering And you to we're on we're look, look on much in other carbon. direct we haven't a on economics. projects we're syngas permits at. our big with can Osaka heard at spaces. But Tallgrass project for others pore on -- Indiana, inject got where Nebraska, space on focused fuels. are I methane storage focused like Tennessee, mean, us in Illinois protein converting In products It decarbonizing is and our the and and/or But different pulled dextro end of mill the really, before money, lot of more long is going analysis that a be low low done. going than XX% is important. make carbon. can day, dextrose. Remember, having intensity it's wet term, carbon already we We've what even to That's really the carbon of for the to, lower importantly to comes gotten dextrose decarbonize everybody, today. a but before or even sequester we XX% out IRA

be very, you very So value very, the very the do that dextrous will will in And low-carbon what with be opportunity. of down high. a chemicals road big

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focus do what's for our the and the best to think very pluses on where what we capital, is get we minuses, allocate just very, from. capital do shareholders, have I how return So we

the rest it. that. Plenty that So do every interest on power, equity cogeneration partnership on interest plenty heat a standpoint, from in it we of of combined and XX-year look we get they look at day, people at when tax while of have cogeneration we

dextrose. focus many all aren't want Protein, on that going on policy subject is risks to Plains That's fuel play things there government to to at policy a But focused of that. foremost pen-stroke IRA, first what we're I clean to it not and are play So and risks. government margins How Green long we there's many sugar, the and last? And production will the many, risk ways to the credit. ways significant. think be

we want IRA set up value for significant all shareholders certainly bring for But areas. in going many, it's and opportunities. something be different we our to didn't So many this is to anticipate,

I was will to on to from that's to be most most there's need and guess IRS where up you that standpoint return the think credit come. the I there's CI need no where comment [indiscernible] online. I no mostly of guess 'XX XXXX the my hurry

one... Just

if you robust. in just can X as could actually, very -- -- to you No, will there fast to years be be a those want as is -- I

So you Classic just you can. fast if you go you that after inject And all want done. all direct as of everywhere, wells not your can, go will as to you get

some to reverts have you can bets And it make be and to your after the going programs are. of you're in online. very, that depending to early very after the because process want So XXQ go the on kind whatever back 'XX, stuff how to of fast you

extended. 'XX discussions place Now is we in you you this believe, will early from is as our program I tell the be as get But sequestering in time area. to can fast as the want CFTC 'XX will carbon today, the that to as can, you you

much. Thank you very

We have no further questions.

like would Mr. the turn Becker I over to for back closing remarks. to call

a it Thanks, a long, it we the year, update. over everybody, little to little for and I was call. hour. went the had the an of being A lot end on know but

up the still fuels, in our their move to strong, have you even to is low-carbon higher diesel X transformation values renewable grows business. and you year on before, and of every highs, still hood making on opportunity sugar As with a and of day importantly, there lot vegoils, our single from and we Protein, a higher protein curve gave progress are pillars. yet more off than we're -- demand sustainable but a we're levels. this more the just Oil ever confidence from that we can great under going see, aviation the look coming little oils, smart or the values renewable

You know our enthusiasm there.

robust. exciting and see processes, than all decarbonization We our the alcohol can want track. of there. about best We past get margins with And -- it. Got could opportunities. of get these in deal And do We'll decarbonized be you importance today. We headwinds. anything are the are to to on The it. that. lastly, we

at -- 'XX, we're we with start laid to And very well achieve set great 'XX position for upside. 'XX, our to this financially opportunities point. we we're guidance in have think up a out We that

for Thanks. quarter. supporting talk you next thanks So and we'll to us,

you This concludes call. participation. conference Thank for today's your

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