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Pacific Ethanol, Inc. (PEIX)

  • Thu, Mar. 5, 12:45 PM
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  • Thu, Mar. 5, 9:15 AM
  • Wed, Mar. 4, 6:58 PM
    • Pacific Ethanol (NASDAQ:PEIX+11.6% AH after Q4 earnings routed analyst expectations and revenues jumped 19% Y/Y and also beat estimates.
    • PEIX's ethanol production gallons sold in Q4 totaled 50.4M, up +24% Y/Y from 40.5M gallons, while third-party gallons sold totaled 84.2M, up 26% from 66.5M; however, the average sales price in the quarter fell to $2.15/gal from $2.36/gal in the same quarter last year.
    • Q4 gross profit was $18.4M vs. $21.6M in the year-ago quarter, which the company says was due to particularly strong production margins in Q4 2013.
    • Expects to complete its acquisition of Aventine this year to become the fifth-largest ethanol producer and marketer in the U.S.
  • Wed, Mar. 4, 4:07 PM
    • Pacific Ethanol (NASDAQ:PEIX): Q4 EPS of $0.41 beats by $0.26.
    • Revenue of $256.2M (+19.0% Y/Y) beats by $9.83M.
    • Shares +7.2%.
    • Press Release
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  • Tue, Mar. 3, 5:35 PM
  • Thu, Jan. 8, 3:58 PM
    • Pacific Ethanol (PEIX -0.8%) is reiterated with a Buy rating and $16 price target at Roth Capital, which sees the Aventine acquisition as positive for PEIX shareholders, who will retain ~58% ownership in the public company with PEIX contributing 39% of the combined plant capacity.
    • Roth says PEIX management confirmed in the recent conference call discussing the deal that the Canton plant is included in the transaction but is not currently operating, and could require significant capital to successfully restart.
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  • Tue, Jan. 6, 12:45 PM
  • Mon, Jan. 5, 6:43 PM
    • Crude oil's latest skid added more pressure on shares of ethanol producers today, reflecting concerns that cheaper gasoline prices could further depress ethanol prices following last year's big profits.
    • Archer Daniels Midland (NYSE:ADM), which maintains the largest U.S. ethanol production capacity, tumbled 3.5%; Green Plains (NASDAQ:GPRE), whose plants boast production capacity of ~1B gal./year of ethanol, plunged 10.2%; and Pacific Ethanol (NASDAQ:PEIX), which just last week added to its bet on ethanol by acquiring a rival, fell 7.7%.
    • Falling profit margins in the U.S. ethanol industry may cause some companies to cut production in 2015, yet some observers think ethanol demand may remain steady or even rise if cheap gasoline spurs U.S. motorists to drive more, easing the hit to earnings.
    • Count Roth Capital in the latter camp, as the firm awarded Buy ratings to GPRE and PEIX (I, II), seeing incrementally improving demand on top of an already tight supply-demand balance as supporting an improving profit outlook.
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  • Dec. 31, 2014, 11:36 AM
    • Pacific Ethanol (PEIX -5%) is merging with Midwestern ethanol maker Aventine Renewable Energy in an all-stock deal. Pacific is issuing 17.75M shares (current value of $181M), and assuming $135M in term loan debt.
    • Aventine's production capacity (spread out over four mills) totals 315M gallons/year, handily eclipsing Pacific's 200M. After factoring Pacific's ethanol marketing ops, the company expects to sell 800M+ gallons of ethanol annually post-merger (#5 in the U.S.).
    • Pacific: "With this transaction, Pacific Ethanol strengthens its unique production and marketing advantages by diversifying into two additional discrete markets and connecting its Western markets with Aventine's Midwest and Eastern markets." The deal is expected to close in Q2 2015.
    • Shares have sold off after initially trading higher in response to the deal.
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  • Dec. 31, 2014, 9:15 AM
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  • Nov. 21, 2014, 10:28 AM
  • Oct. 29, 2014, 5:36 PM
    • Pacific Ethanol (NASDAQ:PEIX) -10% AH despite posting better than expected Q3 earnings and revenues.
    • Q3 ethanol production sold totaled 46.8M gallons, up 26% Y/Y, and third-party gallons sold totaled 86.9M, up 28%, but the average sales price fell to $2.32/gal. from $2.62/gal.
    • Ethanol suppliers such as PEIX can’t sell more because the market already is taking all it can at a 10% blend of ethanol to gasoline, so the price is sure to fall and demand will be stagnant, according to 24/7's Paul Ausick.
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  • Oct. 29, 2014, 4:14 PM
    • Pacific Ethanol (NASDAQ:PEIX): Q3 EPS of $0.33 beats by $0.12.
    • Revenue of $275.6M (+17.8% Y/Y) beats by $14.05M.
    • Shares -6.1%.
    • Press Release
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  • Oct. 2, 2014, 6:37 PM
    • Ethanol futures plunged 28% in September as falling domestic demand left U.S. producers with the largest inventories since March 2013, sending stock prices for some ethanol makers reeling recently following big gains earlier in the year; shares of Green Plains (NASDAQ:GPRE), one of the biggest U.S. producers, slid 16% in September, while Pacific Ethanol (NASDAQ:PEIX) plunged 40%.
    • Ethanol prices have fallen for much of this year because the price of corn plummeted due to a record crop last year and expectations for an even larger one this year; industry margins fell to ~$0.22/gal. in late September, down from an all-time high of $2.04/gal. in April, but "ethanol margins have largely bottomed out for the short term and will likely rebound in the next three to six months due to exports," says Citi analyst Aakash Doshi.
    • Producers are cutting output, with U.S. ethanol production falling to a six-month low of 881K bbl/day in the week ended Sept. 26 EIA says; transportation snags this winter also could send prices climbing again.
  • Sep. 22, 2014, 10:31 AM
    • Pacific Ethanol (PEIX +3.6%) bounces a bit after tumbling 30% from Sept. 10 to Friday's close.
    • PEIX said last week at an investor presentation that margins have pulled back recently as demand has dropped, which ha led to price drops in ethanol; the company believes the price movement are an overreaction to a temporary market condition.
    • PEIX also noted it has worked hard to de-lever its balance sheet and is now ne debt-free; it also says 2014 was the secon bumper crop for corn in a row, resulting in high yields and high inventories, which have helped on PEIX's cost side.
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  • Sep. 13, 2014, 8:25 AM
    • Cowen analysts choose their favorite clean technology stocks in areas such as next-generation transportation, natural gas and liquid natural gas, smart grid and next-generation lighting.
    • Polypore (NYSE:PPO) is Cowen's top pick in clean tech, is very levered to the fast-growing electric car market, and the firm feels it is poised to take advantage of long-term deals with Samsung and Panasonic.
    • Pacific Ethanol (NASDAQ:PEIX) is the leader in California’s ethanol market, margins have been improving, and Cowen expects California ethanol prices to rise with increased rail costs from the Midwest to the state.
    • Maxwell Technologies (NASDAQ:MXWL) is a top supplier of innovative ultra-capacitor solutions and has growth opportunities in China with sales for regenerative braking systems for municipal buses.
    • Acuity Brands (NYSE:AYI) is a leading provider of lighting fixtures; the stock is not cheap, but the firm thinks non-residential sales trends and LED margin improvement can continue to drive shares higher.
    • Silver Spring Networks (NYSE:SSNI) provides IP-based secure networking platforms as well as a suite of solutions to utilities, and Cowen likes its industry-leading 30% share in utility networking equipment.
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Company Description
Pacific Ethanol Inc is engaged in producing and marketing low-carbon renewable fuels in the Western United States. It also sells ethanol co-products, including wet distillers grain, a nutritious animal feed, and corn oil.