Welcome to our dedicated page for Green Plains news (Ticker: GPRE), a resource for investors and traders seeking the latest updates and insights on Green Plains stock.
Overview of Green Plains Inc. (GPRE)
Green Plains Inc. (NASDAQ: GPRE) is a diversified commodity-processing company that plays a pivotal role in the renewable energy and agricultural industries. With a primary focus on ethanol production, the company operates one of the most extensive networks of dry mill ethanol facilities globally. At full capacity, its 17 plants produce nearly 1.5 billion gallons of ethanol annually, making Green Plains the second-largest consolidated owner of ethanol production facilities worldwide. Beyond ethanol, the company engages in the production of distillers grains and corn oil, grain handling and storage, cattle feedlot operations, and commodity marketing and distribution services, creating a vertically integrated business model that enhances operational efficiency and market reach.
Core Business Areas
Ethanol Production: Ethanol serves as the cornerstone of Green Plains' operations. The company’s facilities are strategically located to optimize access to raw materials and distribution channels. Ethanol, a renewable fuel, is a critical component in reducing greenhouse gas emissions and is widely used in transportation fuels worldwide.
Distillers Grains and Corn Oil: As byproducts of ethanol production, distillers grains are used as high-protein animal feed, while corn oil finds applications in biodiesel production and other industrial uses. These byproducts contribute to the company’s diversified revenue streams.
Grain Handling and Storage: Green Plains manages grain elevators and storage facilities, ensuring a steady supply of raw materials for its ethanol plants while offering services to local farmers and agricultural businesses.
Cattle Feedlot Operations: The company operates feedlots that integrate with its distillers grains production, creating a synergistic relationship between its ethanol and animal feed operations.
Commodity Marketing and Distribution: Green Plains markets and distributes its products through a robust logistics network, ensuring efficient delivery to customers across various industries.
Strategic Partnership with Green Plains Partners LP
Green Plains owns a 62.5% limited partner interest and a 2.0% general partner interest in Green Plains Partners LP (NASDAQ: GPP), a fee-based Delaware limited partnership. This partnership provides essential fuel storage and transportation services through its ownership and operation of ethanol storage tanks, terminals, and transportation assets. The fee-based nature of this business model adds a stable and predictable revenue stream, complementing Green Plains' commodity-driven operations.
Market Position and Competitive Landscape
Green Plains operates in a competitive and highly regulated industry, facing challenges such as fluctuating commodity prices, ethanol demand, and evolving environmental policies. Key competitors include other large ethanol producers and integrated commodity-processing companies. However, Green Plains differentiates itself through its scale, vertical integration, and diversified business model. Its ability to produce ethanol at significant volumes, coupled with its byproduct utilization and logistical capabilities, positions it as a major player in the renewable energy and agricultural sectors.
Significance in the Industry
As a leader in ethanol production and a significant contributor to the renewable energy industry, Green Plains plays a vital role in advancing the global transition to cleaner energy sources. By leveraging its integrated operations and strategic partnerships, the company contributes to reducing greenhouse gas emissions while supporting agricultural economies. Its diversified revenue streams and economies of scale provide resilience against market volatility, making it a key entity in the commodity-processing ecosystem.
Green Plains Inc. (NASDAQ:GPRE) will engage in virtual meetings with institutional investors at the 2021 Credit Suisse Energy Summit on March 2, 2021, starting at 8:30 a.m. EST.
Investors can access conference materials on the company’s website. Green Plains is recognized for its innovation in biorefining, focusing on sustainable production of biofuels and high-purity alcohols. The company also offers Ultra-High Protein ingredients for animal and aquaculture diets, addressing the demand for sustainable protein sources.
Green Plains Inc. (NASDAQ:GPRE) has priced its underwritten public offerings, raising approximately $375.0 million. This includes $175.0 million from common stock at $23.00 per share and $200.0 million from 2.25% convertible senior notes due in 2027. The company aims to use $156.3 million of the net proceeds to repurchase 4.125% convertible notes due 2022. The offerings are expected to close on March 1, 2021, with options for underwriters to purchase additional shares and notes. Jefferies and BofA Securities act as joint book-running managers.
Green Plains Inc. (NASDAQ:GPRE) has achieved a significant milestone by producing 58% sustainable Ultra-High Protein at its Shenandoah, Iowa biorefinery, utilizing Fluid Quip’s proprietary MSC protein technology. Initial product quantities have been delivered to pet food partners for formulation studies, indicating enhanced nutritional properties. This advancement supports the company's transformation strategy aimed at financial goals for 2024. Plans are in motion to implement similar technology across additional biorefineries, with initial sales agreements established for 2021 production.
Green Plains Inc. (NASDAQ: GPRE) announced intentions to offer $150 million in common stock and $150 million in convertible senior notes due 2027, subject to market conditions. The convertible notes will allow conversion to cash, shares, or a mix of both. The company plans to utilize proceeds for repurchasing existing convertible notes due 2022 and general corporate purposes. Underwriters have a 30-day option to purchase an additional $22.5 million in shares and notes. Jefferies and BofA Securities serve as joint book-running managers.
Green Plains Inc. (NASDAQ:GPRE) announced a strategic long-term agreement with Summit Carbon Solutions for a major carbon capture and sequestration project. The initiative aims to capture over 10 million tons of carbon dioxide annually, significantly lowering the carbon intensity scores of their biofuels. This will enhance their product offerings, including Ultra-High Protein and renewable corn oil, positioning them competitively in global low carbon markets. The project is expected to commence operations in late 2024 and will potentially uplift margins by 15 cents per gallon through various incentives.
Green Plains (GPRE) reported a net loss of $49.6 million for Q4 2020, translating to $(1.43) per diluted share. Excluding noncash losses, the adjusted net loss was $18.3 million or $(0.53) per share. Revenues fell to $478.8 million, down from $715.7 million year-over-year. The company achieved an adjusted EBITDA of $9.4 million and a crush margin of $0.06 per gallon. Significant liquidity was reported with $274.8 million in cash, bolstered by a $125 million financing from BlackRock. The acquisition of Fluid Quip Technologies is expected to enhance product capabilities and reduce carbon footprint.
Green Plains Inc. (NASDAQ: GPRE) announces a strategic investment from BlackRock and Ospraie Management in Fluid Quip Technologies. This partnership includes a $125 million mezzanine note facility with a 5-year maturity, aimed at funding the deployment of Ultra-High Protein technology at facilities in Obion and Mount Vernon. BlackRock also acquired 2 million warrants for GPRE stock at a strike price of $22. CEO Todd Becker highlighted that this financing validates their transformation strategy and is expected to enhance financial goals for 2023 and 2024.
Green Plains Inc. (NASDAQ:GPRE) announced the sale of its 65 million gallon ethanol plant in Ord, Nebraska, to GreenAmerica Biofuels Ord LLC for $64 million plus working capital. This move is part of Green Plains' strategy to fund its Ultra-High Protein production technology. The sale is projected to yield a pre-tax gain of approximately $37 million. Additionally, Green Plains Ord LLC will acquire related storage and transportation assets for $27 million, aimed at reducing Partnership debt. Both transactions are expected to close within 45 days, subject to customary conditions.
Green Plains Inc. (NASDAQ:GPRE) will feature CEO Todd Becker and Ospraie's Dwight Anderson in a webinar titled “Agtech, Protein and the Biorefinery” on January 28, 2021, at 1:00 p.m. Central time. They will discuss Green Plains' recent acquisition of Fluid Quip Technologies LLC, focusing on Ultra-High Protein production, renewable corn oil, and clean sugar technology. Additionally, they will highlight advancements at the Green Plains York Innovation Center, emphasizing sustainable alternative proteins and synthetic biology. The session will be available on the company's website.
Green Plains Inc. (NASDAQ:GPRE) will announce its fourth quarter and full year 2020 financial results on February 9, 2021, after market closure. A conference call to discuss the results will be held on February 10, 2021, at 11 a.m. ET. The company focuses on biorefining, creating low carbon biofuels and high purity alcohols, and also holds significant interests in Green Plains Partners LP. Investors can join the call by dialing provided numbers or accessing via the company websites.
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