Stonegate Capital Partners Updates Coverage on Aemetis, Inc. (AMTX) Q3 2024

Rhea-AI Summary

Aemetis (AMTX) has released its Q3 2024 performance and future outlook. The company reported revenues of $81 million, marking a 19% increase compared to Q3 2023. The Keyes Ethanol Plant contributed $45 million in revenue, producing 15.5 million gallons of ethanol. AMTX has outlined an ambitious 5-year plan targeting $2.0 billion in revenue and $644 million in adjusted EBITDA by 2028, compared to FY2023 figures of $186.7 million in revenue and $(22.4) million in adjusted EBITDA. The company received approval for 20 years of Low Carbon Fuel Standard mandates from CARB, expected to boost revenue from U.S. projects. Additionally, AMTX projects to have 10 additional dairy facilities completed or in progress by FY25.

Positive

• 19% year-over-year revenue growth to $81 million in Q3 2024
• Keyes Ethanol Plant generated $45 million in revenue
• Secured 20-year Low Carbon Fuel Standard mandates approval
• Expansion plan for 10 additional dairy facilities by FY25

Negative

• Current negative adjusted EBITDA of $(22.4) million in FY2023
• Significant gap between current performance and 2028 targets

Insights

Financial Analyst

The Q3 update reveals significant momentum in Aemetis' growth trajectory. The $81 million quarterly revenue, marking a 19% YoY increase, demonstrates strong execution. The company's ambitious 5-year plan targeting $2.0B in revenue and $644M in adjusted EBITDA by 2028 represents a dramatic scaling from current levels. The Keyes Ethanol Plant's $45.0M revenue contribution from 15.5M gallons shows operational efficiency. The 20-year CARB approval for Low Carbon Fuel Standard mandates provides important long-term revenue visibility and regulatory certainty. The planned expansion to 10 additional dairies by FY25 indicates strong growth in their renewable natural gas segment. However, the transition from current negative EBITDA of $(22.4)M to the targeted positive EBITDA will require flawless execution and favorable market conditions.

Environmental Policy Expert

The 20-year approval of Low Carbon Fuel Standard mandates by CARB represents a major regulatory milestone for Aemetis. This long-term commitment provides essential policy stability for the company's carbon sequestration initiatives and renewable fuel projects. The dairy expansion strategy aligns perfectly with California's aggressive climate goals, as dairy renewable natural gas (RNG) typically generates some of the lowest carbon intensity scores in the LCFS program. The Keyes Ethanol Plant's production demonstrates the company's ability to capitalize on both traditional biofuels and next-generation low-carbon opportunities. The regulatory framework appears increasingly supportive, with multiple catalysts expected in the next 12 months that could further accelerate the company's clean energy transition.

Dallas, Texas--(Newsfile Corp. - December 11, 2024) - Aemetis, Inc. (NASDAQ: AMTX): Stonegate Capital Partners updates coverage on Aemetis, Inc. (NASDAQ: AMTX). Aemetis outlined a 5-year plan to reach $2.0B in revenue and $644M in adjusted EBITDA by 2028 vs F23 revenue and adjusted EBITDA of $186.7M and $(22.4)M. respectively. While this is a long-term plan, AMTX has demonstrated its capability to achieve its targets with several key developments this quarter. The Company has successfully increased revenue across all segments. The Keyes Ethanol Plant generated $45.0M in revenue with the production of 15.5M gallons of ethanol. Additionally, AMTX has made significant progress in its carbon sequestration efforts, with the approval of 20 years of Low Carbon Fuel Standard mandates by CARB, which is expected to enhance revenue and earnings from its U.S. projects. We anticipate several regulatory catalysts to be resolved within the next 12 months, further supporting AMTX's growth trajectory.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

• Revenues of $81 Million; increasing 19% over the Third Quarter of 2023.
• Received approval of 20 years of Low Carbon Fuel Standard mandates by CARB.
• AMTX is expected to have an additional 10 dairy's completed or in progress by FY25.

Click image above to view full announcement.

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About Stonegate

Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking, equity research and capital raising for public and private companies.

Contacts:

Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/229792

FAQ

What is Aemetis (AMTX) revenue target for 2028?

Aemetis has set a target of $2.0 billion in revenue by 2028 as part of their 5-year plan.

How much revenue did AMTX generate in Q3 2024?

AMTX generated $81 million in revenue during Q3 2024, representing a 19% increase over Q3 2023.

What was the Keyes Ethanol Plant's production volume in Q3 2024?

The Keyes Ethanol Plant produced 15.5 million gallons of ethanol in Q3 2024, generating $45.0 million in revenue.

How many dairy facilities does AMTX plan to add by FY25?

AMTX expects to have an additional 10 dairy facilities completed or in progress by FY25.

What regulatory approval did AMTX receive from CARB?

AMTX received approval for 20 years of Low Carbon Fuel Standard mandates from CARB, which is expected to enhance revenue from U.S. projects.