Renewable Energy Group: Ignore The Q4 GAAP Loss, Conditions Are Only Improving
Tristan R. Brown • 10 Comments
Tristan R. Brown • 10 Comments
Wed, May 18, 5:45 PM
- The EPA proposes raising the amount of ethanol refineries must blend into the U.S. gasoline supply in 2017, but the amount is still well short of a target set by federal law.
- The agency is calling for 18.8B gallons of ethanol and other biofuels to be blended into the fuel supply next year 2017, up 4% from the 18.11B gallons set for this year but far below the 24B gallons targeted in a 2007 law.
- The rise is smaller than the amount backed by the farm lobby and biofuels companies such as Archer Daniels Midland (NYSE:ADM), Green Plains (NASDAQ:GPRE), Pacific Ethanol (NASDAQ:PEIX), Renewable Energy Group (NASDAQ:REGI) and Rex American Resources (NYSE:REX).
- The proposal reflects oil companies’ concerns that the Renewable Fuel Standard is pushing them beyond the “blend wall” where targets force them to mix a higher proportion of ethanol into fuel than the 10% level approved for use in all cars and trucks.
- However, “the EPA continues to very slowly edge the market above the 10 percent blend wall, which we view as part of a concerted effort to incentivize consumption of higher blends over time without risking market disruption,” says FBR Capital analyst Benjamin Salisbury.
- The EPA is expected to issue a final rule by year-end, following a public comment period.
Tue, May 3, 4:12 PM
Mon, May 2, 5:35 PM
- AGU, AMED, AMSG, ARC, AVD, BFAM, BGFV, BKH, BPI, CAI, CALD, CALX, CAR, CBS, CERS, CHEF, CHUY, CRAY, CSU, DVN, ENLK, ENPH, EPIQ, ETSY, FANG, FARO, FMI, GLUU, GMED, GNMK, HCI, HI, HRZN, IAG, IL, ILMN, INN, JKHY, KAMN, KAR, KFRC, LCI, LYV, MAC, MDU, MTCH, MTDR, MXWL, MYGN, NDLS, NFX, NKTR, NTRI, NYMT, OCLR, OKE, OKS, OMI, PAYC, PBPB, PKD, PLT, PRMW, PRO, PZZA, QUAD, QUOT, REG, REGI, RIGL, RLOC, RPXC, RSYS, RTRX, RUBI, SM, SPA, STAG, SUPN, TAHO, TNAV, TXMD, USNA, VIAV, VNOM, VRSK, VVUS, WES, WGP, WR, WTR, WU, XCO, XPO, XXIA, ZEN
Tue, Mar. 8, 4:11 PM
Mon, Mar. 7, 5:35 PM
Tue, Jan. 26, 2:55 PM
- Renewable Energy (REGI +1.7%) is higher after announcing an agreement with Exxon Mobil (NYSE:XOM) to study the production of biodiesel by fermenting renewable cellulosic sugars from sources such as agricultural waste.
- Through the research, the two companies say they will address the challenge of how to ferment real-world renewable cellulosic sugars, which contain multiple types of sugars, including glucose and xylose, but also impurities that can inhibit fermentation.
- REGI has developed a patented technology that uses microbes to convert sugars to biodiesel in a one-step fermentation process similar to ethanol manufacturing.
Nov. 30, 2015, 3:28 PM
- Biofuel names react favorably and refiners negatively to just-released EPA biofuel targets that come in above those proposed by the agency in May.
- Fuel suppliers will be required to mix 16.93B gallons of corn-based ethanol and other renewable fuels into gasoline this year and 18.11B gallons next year, according to the newest EPA targets.
- The final 2016 standard for advanced biofuel is nearly 1B gallons, or 35% higher than actual 2014 volumes.
- Biofuel names include: PEIX +17.7%, REGI +8.1%, AMRS +7%, GEVO +4.9%, SZYM +2.5%, GPRE +6.2%, REX +3.2%, ADM flat.
- Refiners are pulling back: VLO -0.9%, TSO -1.5%, HFC -2.6%, MPC -0.3%, PSX -0.9%, WNR -0.7%, CLMT -2.6%.
Nov. 3, 2015, 4:09 PM
- Renewable Energy (NASDAQ:REGI): Q3 EPS of -$0.36 misses by $0.17.
- Revenue of $395M (+2.8% Y/Y) beats by $79.24M.
Nov. 2, 2015, 5:35 PM
- ACHC, AFG, AIV, AMSG, ASH, ATVI, AWR, BIO, BKH, CBPO, CBS, CERN, CHEF, CHUY, CIM, CKP, CSU, CSV, CVC, DAC, DENN, DHT, DK, DKL, DVA, DVN, ECYT, ENPH, ENSG, EPIQ, ETSY, EVRI, FANG, FARO, FIVN, FLTX, FMI, FOGO, GHDX, GMED, GRPN, HCI, HL, HLF, HRZN, IAG, IPHS, IRWD, ITRI, IVR, JCOM, KEG, LLNW, MPO, MTZ, MXL, MYGN, NFX, NYMT, OAS, OCLR, OESX, OFIX, OKE, OKS, ORA, PAA, PAGP, PAYC, PBPB, PKD, QUAD, REGI, RIGL, RLOC, RP, RPAI, RXN, SLW, SSNI, SUPN, TDW, TMH, TSLA, TSRA, TX, UNTD, USNA, VNDA, WBMD, WR, WTR, X, XEC, XOXO, XXIA, Y, ZAGG, ZEN, ZNGA
Oct. 14, 2015, 7:55 AM
- Renewable Energy (NASDAQ:REGI) lowers its Q3 guidance, now expecting to report a net loss of $9M-$15M and non-GAAP adjusted EBITDA of -$7M to -$13M, below the company's prior EBITDA guidance of $0-$10M.
- REGI cites a volatile commodity environment coupled with a significant decline in RIN prices as shaping the quarter; feedstock prices did not decline as significantly as energy prices and RINs.
- REGI says structural damage from the Sept. 3 fire at its Geismar, La., renewable hydrocarbon diesel biorefinery was far less than the April incident, and it expects the plant to return to service by the end of January.
Aug. 4, 2015, 4:39 PM
- Renewable Energy (NASDAQ:REGI): Q2 EPS of -$0.05 beats by $0.11.
- Revenue of $373.8M (+12.3% Y/Y) beats by $52.1M.
- Shares +4.3%.
Jul. 29, 2015, 8:08 AM
- UPS (NYSE:UPS) says it will buy up to 46M gallons of renewable diesel fuel over the next three years to help it reach a renewable energy goal.
- The chemical fuel made from bio-based sources such as palm oil and animal fat performs as well as traditional diesel, according to a top UPS exec.
- The company plans to buy buy renewable diesel from Solazyme (NASDAQ:SZYM), Renewable Energy Group (NASDAQ:REGI), and Finnish firm Neste.
- The airline industry is also very active in researching uses for biofuels.
Jun. 10, 2015, 10:30 AM
- The EPA says greenhouse gases from aircraft endanger human health, a finding that begins a process to regulate greenhouse gas emissions from the aviation industry, the latest sector to be regulated under the Clean Air Act after cars, trucks and power plants.
- The endangerment finding allows the EPA to implement domestically a global carbon dioxide emissions standard being developed by the International Civil Aviation Organization; the airline industry favors a global standard over individual national standards since airlines operate all over the world and want to avoid a patchwork of rules and measures.
- GEVO, which has been working on renewable fuels for airplanes, is +3.5% today and +27% so far this month in anticipation of the EPA findings.
- Also higher are REGI +2%, SZYM +2.5%, AMRS +2%.
- Potential related stocks: AAL, UAL, SAVE, DAL, ALK, HA, SKYW, LUV, JBLU, VA
Jun. 1, 2015, 12:16 PM
- Renewable Energy (REGI +10.4%) is upgraded to Overweight from Neutral with a $15 price target, raised from $11, at Piper Jaffray following last week's release of the EPA proposal of the renewable fuel standard mandate which the firm says removes the regulatory overhang that has historically impacted REGI shares.
- Jaffray expects the increase proposed in the advanced biofuel category, along with the 20% carryover, to drive biodiesel demand "beyond the biomass-based diesel RVO," which in turn should lead to higher margins for REGI, despite a potential increase in biodiesel imports.
- The firm also expects margins to be driven by higher RINs following the EPS proposal.
May 29, 2015, 11:15 AM
- Ethanol companies rise while refiners are off session highs after the EPA announces its renewables fuels mandate.
- The EPA proposes requiring 15.93B gallons of total renewable fuel in 2014, 16.3B gallons in 2015, and 17.4B gallons in 2016, but the proposal for the total renewable fuel requirement falls short of levels Congress mandated, which were 20.5B gallons in 2015 and 22.5B gallons in 2016.
- Also, the EPA cuts 2016 corn-ethanol quota to 14B gallons; U.S. law required 15B gallons of ethanol for 2016.
- Ethanol exposed companies are mostly higher: ADM +0.7%, GPRE +4.2%, PEIX +4.1%, REX +1%, DAR +2%, CZZ -2.2%.
- Among refiners: HFC +0.3%, TSO +1.3%, VLO +0.8%, WNR +1.9%, PBF -1%.
- Biofuel related stocks: GEVO -8.3%, SZYM -2.7%, CDTI -1%, REGI -0.7%.
May 5, 2015, 4:12 PM
- Renewable Energy (NASDAQ:REGI): Q1 EPS of -$0.86 misses by $0.44.
- Revenue of $230.9M (+5.4% Y/Y) beats by $59.68M.
Renewable Energy Group, Inc. operates as a biodiesel producer, which engages in the production and distribution of biodiesel and related products. It also produces biodiesel from virgin vegetable oils. Renewable Energy Group focuses on converting natural fats, oils and greases into advanced... More
Sector: Basic Materials
Industry: Oil & Gas Refining & Marketing
Country: United States
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