Green Plains Inc.NASDAQ
Green Plains, Inc. Is Becoming One Of My Favorite Growth Stories
Tristan R. Brown
Tristan R. Brown
Green Plains: Strong Demand Is Beginning To Offset Low Margins
Tristan R. Brown
Tristan R. Brown
Tue, Dec. 6, 2:37 PM
- Green Plains Partners (GPP -0.8%) is upgraded to Buy from Hold with a $21 price target, cut from $22, at Stifel, which says valuation is attractive at current levels.
- Recent pressure at GPP could be blamed on uncertainty over renewable fuel standards in the new administration, but Stifel sees little to suggest Pres.-elect Trump’s policy will radically alter ethanol mandates and expects ethanol to remain the preferred method of raising gasoline’s oxygenate level; the firm also notes that GPP’s sponsor, Green Plains Inc. (GPRE -0.3%), is an ethanol producer and has not exhibited the same weakness as GPP, thus supporting its belief that the decline in unit prices at GPP is not fundamentally driven.
- The firm lowered its rating on GPP to Hold on Nov. 1; units have since lost 14% while the broader MLP space has held flat.
Wed, Nov. 23, 7:47 PM
- The EPA today issued final regulations requiring that the amount of ethanol and other biofuels that must be blended into the U.S. fuel supply must increase by 6% next year.
- Since the result is a significant gain over the 4% the EPA recommended in an earlier draft proposal, it is a victory for ethanol makers and a defeat for oil companies that say using more biofuels in gasoline and diesel is costly and unachievable.
- The EPA set the 2017 target for total renewable fuel use at 19.28B gallons, higher than the initial proposal for 18.8B gallons as well as this year's 18.1B gallon requirement; the new mandate includes 15B gallons for conventional biofuel, which is mostly corn-based ethanol, vs. 14.5B gallons last year.
- Tesoro (NYSE:TSO) exec Stephen Brown says the plan is "unworkable" as it forces the use of biofuels beyond the blend wall and that it highlights the need for a legislative overhaul of the program.
- Shares in oil refiners mostly fell in today's trade: TSO -1.4%, VLO -0.8%, HFC -1.8%, MPC -0.3%, WNR -2.2%, PBF -3.5%, PSX +0.2%.
- Shares of biofuels producers rose: GEVO +8.5%, PEIX +7.1%, GPRE +2.1%, REGI +2%, REX +0.8%.
Wed, Nov. 16, 4:37 PM
Mon, Oct. 31, 6:12 PM
Sun, Oct. 30, 5:35 PM
Tue, Oct. 4, 2:10 PM
Mon, Oct. 3, 4:36 PM
- Ethanol producer Green Plains (NASDAQ:GPRE) agrees to acquire SCI Ingredients Holdings for $250M.
- GPRE says SCI's wholly owned operating subsidiary, Fleischmann’s Vinegar, is the world’s largest manufacturer and marketer of food-grade industrial vinegar.
- GPRE says the acquisition is immediately accretive to earnings and will leverage its supply chain and production platform.
Mon, Sep. 26, 12:59 PM
- Green Plains (GPRE +0.4%) says it completed the previously announced acquisition of three ethanol plants located in Madison, Ill., Mount Vernon, Ind. and York, Neb. for $237M plus certain working capital adjustments from Abengoa; GPRE then sold the ethanol storage assets to Green Plains Partners (GPP -0.8%) for $90M.
- GPRE says all three plants are operational and will add 236M gal/year of ethanol production capacity.
- GPRE also says the deal has expanded its ethanol production capacity by ~50% to nearly 1.5B gallons.
Tue, Aug. 23, 3:19 PM
- Spanish renewable energy firm Abengoa (NASDAQ:ABGB) is selling five of its Midwestern U.S. ethanol plants for $357M, with Green Plains (GPRE +6.2%) agreeing to acquire three of them for $237M.
- GPRE, which operates 14 plants and has an ethanol marketing unit, is paying $200M for Abengoa plants in Mount Vernon, Ind., and Madison, Ill., and outbid another company for the York, Neb., plant with a $37.4M bid at bankruptcy auction; the three plants have a combined annual production capacity of 236M gal/year.
- ABGB sought bankruptcy court approval in June to sell the plants as part of an attempt to divest non-core assets.
Wed, Aug. 17, 4:20 PM
Wed, Aug. 10, 8:44 AM
- Green Plains (NASDAQ:GPRE) -3.9% premarket after saying it signed a letter of intent to buy a company in the food ingredients industry at a proposed price of $225M-$275M.
- GPRE, which primarily is in the ethanol production and marketing business, says the purchase would be complementary to its existing businesses and "part of its growth strategy it plans to opportunistically invest in the food and feed ingredients markets."
- GPRE says it is currently only conducting due diligence and is in preliminary discussions with the potential seller regarding a stock purchase agreement.
Fri, Aug. 5, 12:25 PM
- The American Fuel and Petrochemical Manufacturers trade group is petitioning the EPA to change the way the agency enforces the U.S. biofuel mandate, shifting the responsibility of program compliance with distributors who blend gasoline with ethanol for delivery to filling stations, not with refiners who make the fuels.
- The AFPM and other oil and gas groups have long been opposed to the Renewable Fuel Standard, which sets the amounts of biofuels such as ethanol that must be blended into U.S. gasoline and diesel supplies annually, arguing the mandates are costly for refiners and do not reflect actual gasoline demand, which has not risen as fast as lawmakers originally envisioned.
- Renewable fuel credits have surged 32% in the past two months, even as crude oil prices have dropped; this year, U.S. refiners will pay $1.8B for the RIN credits, adding to the pain of the lowest summer profit margins in five years.
- Relevant tickers include VLO, PBF, CVRR, HFC, REGI, PEIX, REX, GPRE
Mon, Aug. 1, 4:18 PM
Sun, Jul. 31, 5:35 PM
- ADUS, AEGN, AEIS, AMKR, APU, ARE, ATW, BDE, BLKB, CEMP, CGNX, CHGG, CKEC, CONE, CUTR, DAC, DNB, ENH, ENSG, EXAC, FTR, GGP, GKOS, GPRE, HTA, IDTI, ININ, IPHS, KMT, LNT, MCEP, MTGE, NGHC, NLS, OFIX, OGS, OLN, PLOW, PPS, PQ, QUAD, RAIL, RXN, RYAM, SBRA, SYKE, TEX, THC, TNET, TREX, TSE, TTOO, TXRH, UGI, VECO, VNO, WMB, WSTC, XOXO
Tue, Jun. 14, 5:48 PM
- Green Plains (NASDAQ:GPRE) says it has formed a joint venture with Fortress Transportation and Infrastructure to construct and operate an intermodal export and import fuels terminal in Beaumont, Tex.
- GPRE expects the 50/50 JV to invest ~$55M in phase one development, which will initially focus on storage and throughput capabilities for multiple grades of ethanol; the project is expected to be completed in Q2 2017.
- GPRE shares rose 2% in today's trade following news that it agreed to buy ethanol plants in Illinois and Indiana from Abengoa for $200M; if the deal goes through, GPRE would pass Valero Energy as the no. 3 U.S. ethanol producer by capacity, behind only Archer Daniels Midland and Poet LLC.
Mon, Jun. 13, 11:47 AM
- Abengoa (NASDAQ:ABGB) has lined up $350M worth of bids for four of its Midwestern U.S. ethanol plants, and is seeking permission from the U.S. bankruptcy court in St. Louis to unload the plants in connection with its global restructuring.
- ABGB hopes to put the ethanol plants - in Mount Vernon, Ind., Madison, Ill., Ravenna, Neb., and York, Neb. - on the auction block as soon as August.
- Court papers show that Green Plains (GPRE -1.5%) has offered $200M for the Mount Vernon and Madison plants, and privately-held firms have offered $150M for the two other plants.
- Some of the Abengoa units that own the plants sought Chapter 11 protection in February, and the entities that own the Mount Vernon and Madison plants joined them in bankruptcy over the weekend in conjunction with their proposed sales.