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%.
Jul. 14, 2015, 5:38 PM
- Synaptics (NASDAQ:SYNA) will replace Rosetta Resources (to be acquired by Noble Energy) in the S&P MidCap 400 following Monday's close. REX American Resources will take Synaptics' spot in the S&P SmallCap 600.
- First NBC Bank Holding (NASDAQ:FNBC) will replace RTI International Metals (to be acquired by Alcoa) in the S&P 600 following the July 22 close.
- SYNA +1.3% AH. REX +3.6%. FNBC +2.2%.
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%.
Oct. 28, 2014, 5:48 PM
Sep. 11, 2014, 3:48 PM
- Pacific Ethanol (PEIX -7%) and other U.S. ethanol producers are sharply lower, apparently on fears that the industry in America could be hit by a surge of Brazilian imports.
- Brazil yesterday approved a tax credit for domestic ethanol exporters, which the government believes will help its domestic exporters "because it cheapens the Brazilian export and pays a devaluation of the exchange rate," the country's finance minister says.
- Ethanol demand has fallen in Brazil in recent years, with only 25% of flex-fuel cars there using ethanol in 2013 vs. 82% in 2009, according to Bloomberg.
- U.S. ethanol makers already have been pressured by the EPA's proposals to cut the amount of biofuels that refiners will be required to blend into gasoline, and moves by California regulators that have given Brazilian sugar ethanol a better greenhouse gas rating than corn-based ethanol produced in the U.S.
- Also: GPRE -4.4%, REX -6.7%, KIOR -8.8%.
Aug. 27, 2014, 2:41 PM
- Rex American Resources (REX +12.8%) reaches new all-time highs after posting strong beats in Q2 earnings and revenues, as the company credits favorable market dynamics combined with the efficiency of its plants for leading to record Q2 net income.
- Says cash rose 45% from year-end 2013 to ~$152M, plant-level debt fell 18% to ~$62M, and debt-to-capital ratio was 16% from 21% as of Jan. 31.
- The upside Rex results appear to be boosting biofuel and ethanol related names: PEIX +5.6%, BIOF +4.9%, GPRE +2.6%, REGI +1.8%, ADM +1%.
Aug. 27, 2014, 12:46 PM
Aug. 25, 2014, 12:46 PM
Aug. 21, 2014, 1:11 PM
Jun. 18, 2014, 11:31 AM
- Pacific Ethanol (PEIX +1.7%) ticks higher after the American Petroleum Institute express concern that the EPA may raise ethanol requirements from its 2014 proposal.
- "Almost half of 2014 is behind us, yet EPA still hasn't finalized the ethanol requirements for this year," API says. "As the process continues to grind along, we are also concerned that EPA will raise ethanol requirements from its 2014 proposal, based on the specious reasoning that E85 - a mixture of up to 85 percent ethanol with 15 percent gasoline - is a workable solution. It is not."
- Other relevant names are all lower: GPRE -1%, REGI -1.4%, BIOF -1.3%, REX -0.1%, ANDE -0.3%, ADM -1.1%.
May 28, 2014, 2:45 PM
- REX American Resources (REX +9.1%) shares reach a new 52-week high after the ethanol producer reported a sixfold increase in Q1 earnings over year-ago levels, also beating the single analyst estimate for the period.
- Net income attributable to shareholders jumped to $21.7M, or $2.67/share, during the April quarter, up from $3.5M a year ago and topping the $2.50/share expected from the lone analyst following the company.
- Revenue fell 12.6% Y/Y to $156M, in line with the single estimate; REX says the decline was due primarily to lower commodity pricing.
Mar. 31, 2014, 3:59 PM
- Shares of BioFuel Energy (BIOF +132.4%) more than double after the company received a $275M buyout proposal late Friday from Greenlight Capital and James Brickman of JBGL Funds for the 64.5% of the company they don't already own.
- Greenlight's David Einhorn and Brickman said the proposal provides an opportunity to acquire an interest in a business with long-term equity potential and an attractive portfolio of assets.
- BIOF said its board will establish a special committee of independent directors to evaluate the transaction, as well as alternatives for the company.
- The move is providing a lift for most other alternative energy companies: KIOR +39.7%, GPRE +3.7%, REGI +4.4%, SYNM +5.9%, REX +0.1%, PEIX -1.9%, GEVO flat.
Feb. 27, 2014, 11:04 AM
- Solazyme (SZYM +6.6%) surges higher following Q4 earnings and a price target raise to $17 from $14 by Cowen analysts who see production volume ramping in the latter part of 2014.
- The firm says SZYM's quarterly loss was "essentially in line with [its] expectations” and due to higher expenses as the company ramps up production at its plant in Clinton, Iowa.
- Cowen says 2014 production at Clinton totaled ~500 metric tons, with three different oil-based products scaled up and a fourth underway; Mooema has completed most phases of its startup, as fermentation is running from seed train to 125K liter scale and 600K liter production fermenters should start up in March.
- Shares also may be enjoying some spillover from a surge in biofuel and ethanol names as Pacific Ethanol (PEIX +32.5%) reports favorable news (I, II): BIOF +85.7%, CDTI +9.8%, KIOR +9.5%, REX +2.5%.
Dec. 3, 2013, 12:46 PM
Aug. 6, 2013, 12:59 PM
- The EPA formally tells refiners to blend 16.55B gallons of renewable fuels to blend into the U.S. gasoline supply this year, and pares some targets the oil industry had criticized as too ambitious.
- Refiners must blend 1.28B gal. of biomass-based diesel and 2.75B gal. of advanced biofuels this year, along with 6M gal. of cellulosic biofuels made from non-edible plant parts - far less than the 14M target the EPA proposed in February but short of the oil industry’s push for the category to be zeroed out completely.
- After some initial reaction, most related stocks have returned to pre-announcement levels: PBF +8.6%, VLO +3.3%, HFC +2%, BIOF +1.8%, PEIX -4%, GPRE -3.2%, REX -6.6%, SYNM -4.3%, REGI -0.3%.
Aug. 29, 2012, 11:09 AM
Rex American Resources (REX -2.4%) reports FQ2 EPS of $0.10 vs. $0.25 in the year-ago period. REX had enjoyed soaring revenues in recent quarters thanks to acquisitions and higher ethanol and dried distiller grain prices, but more recently the industry's profitability has been hit by lower crush spread margins.| Aug. 29, 2012, 11:09 AM