Green Plains Completes Sale of Hereford, Texas Plant

Rhea-AI Summary

Green Plains Inc. (NASDAQ:GPRE) announced the sale of its Hereford, Texas ethanol plant to Hereford Ethanol Partners, L.P. for $39 million, plus working capital. An earnout provision of up to $75 million based on future earnings related to Low Carbon Fuel Standard credits is included. The company also reported the sale of storage assets for $10 million, with proceeds used to repay debt. With a focus on sustainable biofuels and grain processing, Green Plains remains committed to its diversified operations.

Positive

• Completed the sale of ethanol plant for $39 million, improving liquidity.
• Potential for up to $75 million in future earnings from earnout provision.
• Sale of storage assets for $10 million contributes to debt repayment.

Negative

• None.

OMAHA, Neb., Dec. 28, 2020 (GLOBE NEWSWIRE) -- Green Plains Inc. (NASDAQ:GPRE) today announced that its subsidiary, Green Plains Hereford LLC, has completed the previously announced sale of its ethanol plant located in Hereford, Texas, to Hereford Ethanol Partners, L.P. for $39 million, plus working capital. Additionally, an earnout provision of up to $75 million related to certain value enhancement opportunities, including future earnings from Low Carbon Fuel Standard credits was included as part of the transaction. In conjunction with this transaction, Green Plains Partners LP (NASDAQ:GPP) today also announced it has completed the sale of the storage assets and the assignment of certain rail transportation assets associated with Green Plains Hereford LLC for $10 million. The proceeds from the transaction were used to repay debt.

About Green Plains Inc.
Green Plains Inc. (NASDAQ:GPRE) is a diversified commodity-processing business with operations that include corn processing, grain handling and storage and commodity marketing and logistics services. The company is one of the leading corn processors in the world and, through its adjacent businesses, is focused on the production of sustainable biofuels and sustainable high protein and novel feed ingredients. Green Plains owns a 48.9% limited partner interest and a 2.0% general partner interest in Green Plains Partners LP. For more information about Green Plains, visit www.gpreinc.com.

About Green Plains Partners LP
Green Plains Partners LP (NASDAQ:GPP) is a fee-based Delaware limited partnership formed by Green Plains Inc. to provide fuel storage and transportation services by owning, operating, developing and acquiring ethanol and fuel storage terminals, transportation assets and other related assets and businesses. For more information about Green Plains Partners, visit www.greenplainspartners.com.

Green Plains Inc. Contacts
Investors: Phil Boggs | Senior Vice President, Investor Relations | 402.884.8700 | phil.boggs@gpreinc.com
Media: Leighton Eusebio | Manager, Public Relations | 402.952.4971 | leighton.eusebio@gpreinc.com

FAQ

What was the sale price of Green Plains' ethanol plant in Hereford, Texas?

Green Plains sold its Hereford, Texas ethanol plant for $39 million, plus working capital.

What additional financial opportunity is associated with the ethanol plant sale?

The sale includes an earnout provision of up to $75 million based on future earnings from Low Carbon Fuel Standard credits.

How much did Green Plains receive for the sale of its storage assets?

Green Plains received $10 million from the sale of its storage assets.

What will Green Plains do with the proceeds from the sales?

The proceeds from the sales will be used to repay debt.