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Pacific Ethanol, Inc. (PEIX)

  • Tue, Jan. 6, 12:45 PM
  • 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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  • 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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  • 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. 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%.
  • Sep. 11, 2014, 12:45 PM
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  • 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%.
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  • 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%.
  • Apr. 30, 2014, 9:11 AM
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  • Apr. 3, 2014, 8:51 AM
    • Pacific Ethanol (PEIX) -4% premarket after announcing a public offering of 1.75M common shares priced at $16/share.
    • PEIX plans to use the proceeds to pay outstanding principal and accrued and unpaid interest owed under the terms of its senior unsecured notes, with the remainder going to general corporate purposes.
  • 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%.
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  • Feb. 26, 2014, 5:24 PM
    • Pacific Ethanol (PEIX) +23.5% AH on news it plans to restart production at its 40M gallons/year facility in Madera, Calif., which would bring total operating production capacity to 200M gallons/year.
    • PEIX expects to begin ethanol production at Madera during Q2 2014.
    • Earlier, PEIX reported better than expected Q4 earnings and revenues.
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  • Jan. 24, 2014, 12:47 PM
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  • Dec. 11, 2013, 3:58 PM
    • Shares of ethanol makers slide as an EPA official tells a congressional panel it’s not feasible for gasoline refiners to use as much ethanol next year as had been mandated, which is why the agency proposed easing the requirement.
    • Producers of ethanol, biodiesel and advanced biofuels have criticized the EPA’s proposal, saying it undercuts a growing, domestic industry.
    • ADM -1.5%, BIOF -3%, GPRE -3.8%, REGI -4.8%, SYNM -5.7%, PEIX -9.6%, KIOR -12.8%.
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Company Description
Pacific Ethanol Inc is a marketer and producer of low-carbon renewable fuels in the Western United States. It markets the ethanol produced by four ethanol production facilities located in California, Idaho and Oregon, or the Pacific Ethanol Plants.