Green Plains Q4 2025 Green Plains Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Green Plains Inc Earnings Call
Speaker #1: Good morning, and welcome to the Green Plains Inc. fourth quarter and full year 2025 earnings conference call. Following the company's prepared remarks, instructions will be provided for Q&A.
Operator: Good morning, and welcome to the Green Plains Inc. Fourth Quarter and Full Year 2025 Earnings Conference Call. Following the company's prepared remarks, instructions will be provided for Q&A. At this time, all participants are in a listen-only mode. I will now turn the call over to your host, Will Yeakel, Vice President and Treasurer. Will, please go ahead.
Operator: Good morning, and welcome to the Green Plains Inc. Fourth Quarter and Full Year 2025 Earnings Conference Call. Following the company's prepared remarks, instructions will be provided for Q&A. At this time, all participants are in a listen-only mode. I will now turn the call over to your host, Will Yeakel, Vice President and Treasurer. Will, please go ahead.
Speaker #1: At this time, all participants are in a listen-only mode. I will now turn the call over to your host, Bill Yackel, Vice President and Treasurer.
Speaker #1: Bill, please go ahead.
Speaker #2: Welcome to the Green Plains Inc. fourth quarter 2025 earnings call. Joining me on today's call will be Chris Osowski, President and Chief Executive Officer; Ann Reese, Chief Financial Officer; Imre Havasi, Senior Vice President of Trading and Commercial Operations; as well as the entire leadership team.
Will Yeakel: Welcome to the Green Plains Inc. Fourth Quarter 2025 Earnings Call. Joining me on today's call will be Chris Osowski, President and Chief Executive Officer, Ann Reis, Chief Financial Officer, Imre Havasi, Senior Vice President of Trading and Commercial Operations, as well as the entire leadership team. There is a slide presentation available, and you can find it on the investor page under the Events and Presentations link on our website. During this call, we will be making forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties.
Will Yeakel: Welcome to the Green Plains Inc. Fourth Quarter 2025 Earnings Call. Joining me on today's call will be Chris Osowski, President and Chief Executive Officer, Ann Reis, Chief Financial Officer, Imre Havasi, Senior Vice President of Trading and Commercial Operations, as well as the entire leadership team. There is a slide presentation available, and you can find it on the investor page under the Events and Presentations link on our website. During this call, we will be making forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties.
Speaker #2: There is a slide presentation available, and you can find it on the investor page under the events and presentations link on our website. During this call, we will be making forward-looking statements, which are predictions, projections, or other statements about future events.
Speaker #2: These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results can materially release and the comments made during this differ because of factors discussed in today's press conference call, and in the risk factor section 10-Q, and other reports and filings with the Securities and Exchange Commission.
Will Yeakel: Actual results can materially differ because of factors discussed in today's press release and the comments made during this conference call, and in the Risk Factors section of our Form 10-K, Form 10-Q, and other reports and filings with the Securities and Exchange Commission. We do not undertake any duty to update any forward-looking statement. I'd like to thank you all for joining, and it's my pleasure to hand the call over to our President and CEO, Chris Osowski.
Will Yeakel: Actual results can materially differ because of factors discussed in today's press release and the comments made during this conference call, and in the Risk Factors section of our Form 10-K, Form 10-Q, and other reports and filings with the Securities and Exchange Commission. We do not undertake any duty to update any forward-looking statement. I'd like to thank you all for joining, and it's my pleasure to hand the call over to our President and CEO, Chris Osowski.
Speaker #2: We do not undertake any duty to update any forward-looking statement. I'd like to thank you all for joining. It's my pleasure to hand the call over to our President and CEO, Chris Osowski.
Speaker #2: We do not undertake any duty to update any forward-looking statement. I'd like to thank you all for joining. It's my pleasure to hand the call over to our President and CEO, Chris
Speaker #3: Thank you, Will, and good morning, everyone. As we close out 2025, a year marked by both challenges and meaningful achievements, I want to start by thanking our employees for their dedication, our board for their confidence, and our shareholders for their continued support.
Chris Osowski: Thank you, Will, and good morning, everyone. As we close out 2025, a year marked by both challenges and meaningful achievements, I wanna start by thanking our employees for their dedication, our board for their confidence, and our shareholders for their continued support. Our teams delivered strong operational execution across the fleet while maintaining an exceptional safety record. As always, safety remains the center of everything we do. Nothing we accomplish matters unless we send people home safely every day. For the year, four of our plants reached historical production volumes, and seven plants achieved record ethanol yields. At the same time, protein and corn oil yields continued to increase across our fleet. These results reflect a culture of continuous improvement, measuring everything, learning quickly, and applying the lessons learned. During Q4, our operations teams continued to demonstrate the potential of our platform.
Chris Osowski: Thank you, Will, and good morning, everyone. As we close out 2025, a year marked by both challenges and meaningful achievements, I wanna start by thanking our employees for their dedication, our board for their confidence, and our shareholders for their continued support. Our teams delivered strong operational execution across the fleet while maintaining an exceptional safety record. As always, safety remains the center of everything we do. Nothing we accomplish matters unless we send people home safely every day. For the year, four of our plants reached historical production volumes, and seven plants achieved record ethanol yields. At the same time, protein and corn oil yields continued to increase across our fleet. These results reflect a culture of continuous improvement, measuring everything, learning quickly, and applying the lessons learned. During Q4, our operations teams continued to demonstrate the potential of our platform.
Speaker #3: Our team's delivered strong operational execution across the fleet while maintaining an exceptional safety record. As always, safety remains the center of everything we do.
Speaker #3: Nothing we accomplish matters unless day. For the year, four of our plants reached historical production volumes and seven plants achieved record ethanol yields. At the same time, protein and corn oil yields continued to increase across our fleet.
Speaker #3: These results reflect a culture of continuous improvement, measuring everything, learning quickly, and applying the lessons learned. During the fourth quarter, our operations teams continued to demonstrate the potential of our platform.
Speaker #3: Our fleet once again generated volumes above their original stated capacities. As we committed during a previous earnings call, we updated our maximum production volumes, which is a clear reflection of the team's progress.
Chris Osowski: Our fleet once again generated volumes above their original stated capacities. As we committed during a previous earnings call, we updated our maximum production volumes, which is a clear reflection of the team's progress. Our new stated production capacity for our plants, excluding Fairmont, have been increased to 730 million gallons per year, an increase of 10% over the previously stated capacity. We've increased the Central City and Wood River facilities to 120 million gallons per year each. We adjusted Mount Vernon to 110, Madison to 100, and Shenandoah to 80 million gallons. Finally, we moved Otter Tail and Superior both to 70 million gallons each and increased York from 50 up to 60 million gallons.
Chris Osowski: Our fleet once again generated volumes above their original stated capacities. As we committed during a previous earnings call, we updated our maximum production volumes, which is a clear reflection of the team's progress. Our new stated production capacity for our plants, excluding Fairmont, have been increased to 730 million gallons per year, an increase of 10% over the previously stated capacity. We've increased the Central City and Wood River facilities to 120 million gallons per year each. We adjusted Mount Vernon to 110, Madison to 100, and Shenandoah to 80 million gallons. Finally, we moved Otter Tail and Superior both to 70 million gallons each and increased York from 50 up to 60 million gallons.
Speaker #3: Our new stated production capacity for our plants, excluding Fairmont, has been increased to 730 million gallons per year, an increase of 10% over the previously stated capacity.
Speaker #3: We've increased the Central City and Wood River facilities to 120 million gallons per year each. We adjusted Mount Vernon to 110, Madison to 100, and Shenandoah to 80 million gallons.
Speaker #3: Superior both to 70 million gallons Finally, we moved Otter Tail and each and increased York from 50 up to 60 million Madison, we remain limited by state regulations and are currently working with the state of Illinois to increase the permitted production levels.
Chris Osowski: At Madison, we remain limited by state regulations, and we're currently working with the state of Illinois to increase the permitted production levels. Q4 was highlighted by the startup of our CO2 compression equipment at our three Nebraska plants, where carbon capture is now fully operational. As we previously shared, CO2 from all three Nebraska plants is being sequestered in Wyoming, and the impact is lowering CI scores for our plants and generating cash flow. Financially, the focus on operational excellence and our efforts to remove costs from the business have resulted in considerably stronger results compared to last year. Q4 adjusted EBITDA of $49.1 million is an improvement of more than $67 million compared to Q4 of 2024.
Chris Osowski: At Madison, we remain limited by state regulations, and we're currently working with the state of Illinois to increase the permitted production levels. Q4 was highlighted by the startup of our CO2 compression equipment at our three Nebraska plants, where carbon capture is now fully operational. As we previously shared, CO2 from all three Nebraska plants is being sequestered in Wyoming, and the impact is lowering CI scores for our plants and generating cash flow. Financially, the focus on operational excellence and our efforts to remove costs from the business have resulted in considerably stronger results compared to last year. Q4 adjusted EBITDA of $49.1 million is an improvement of more than $67 million compared to Q4 of 2024.
Speaker #3: Q4 was highlighted by the startup of our CO2 compression equipment at our three Nebraska plants where carbon capture is now fully operational. As we previously shared, CO2 from all three Nebraska plants and the impact is lowering CI scores for our plants and generating cash flow.
Speaker #3: Financially, the focus on operational excellence and our efforts to remove costs from the business have resulted in considerably stronger results compared to last year.
Speaker #3: Q4 adjusted EBITDA of 49.1 million is an improvement of more than 67 million dollars compared to Q4 of 2024. We continued to realize the benefits of the 45Z Clean Fuel production tax credit, which generated 27.7 million dollars in the quarter net of discounts, and we received our first payment for the transfer of credits.
Chris Osowski: We continued to realize the benefits of the 45Z Clean Fuel Production Credit, which generated $27.7 million in the quarter, net of discounts, and we received our first payment for the transfer of credits. Although we have not yet announced a tax credit agreement for the sale of our 2026 credits, we are encouraged by the interest we've received and expect to have something to announce soon. Although it's early in the year, there is plenty to be excited about as we enter 2026. As we mentioned in earlier calls, the opportunity around carbon alone is expected to generate at least $188 million of Adjusted EBITDA during the year, subject to actual production volumes and carbon intensity factors.
Chris Osowski: We continued to realize the benefits of the 45Z Clean Fuel Production Credit, which generated $27.7 million in the quarter, net of discounts, and we received our first payment for the transfer of credits. Although we have not yet announced a tax credit agreement for the sale of our 2026 credits, we are encouraged by the interest we've received and expect to have something to announce soon. Although it's early in the year, there is plenty to be excited about as we enter 2026. As we mentioned in earlier calls, the opportunity around carbon alone is expected to generate at least $188 million of Adjusted EBITDA during the year, subject to actual production volumes and carbon intensity factors.
Speaker #3: Although we have not yet announced a tax credit agreement for the sale of our 2026 credits, we are encouraged by the interest we've received and expect to have something to announce soon.
Speaker #3: Although it's early in the year, there is plenty to be excited about as we enter 2026. As we mentioned in earlier calls, the opportunity around carbon alone is expected to generate at least 188 million dollars of adjusted EBITDA during the year, subject to actual production volumes and carbon intensity factors.
Speaker #3: That figure reflects the contribution of the 45Z production tax credit and voluntary credits at our Nebraska facilities that are sequestering CO2, as well as approximately 38 million dollars of net 45Z benefits from our plants outside of Nebraska, all of which are producing low carbon ethanol qualifying for 45Z.
Chris Osowski: That figure reflects the contribution of the 45Z production tax credit and voluntary credits at our Nebraska facilities that are sequestering CO2, as well as approximately $38 million of net 45Z benefits from our plants outside of Nebraska, all of which are producing low-carbon ethanol, qualifying for 45Z. While it's easy to get caught up in the opportunities around carbon, let's not forget about ethanol. Export demand remains strong, and we're coming off a record-breaking corn crop. From a policy standpoint, strong administration and bipartisan support across several fronts, RVOs, SREs, and the push for year-round E15, can help strengthen biofuel markets and support American farmers. The release of Treasury's proposed 45Z clean fuel production credit regulations provides long-awaited clarity for the industry, recognition of CI improvements from on-farm practices, and key one big, beautiful bill improvements.
Chris Osowski: That figure reflects the contribution of the 45Z production tax credit and voluntary credits at our Nebraska facilities that are sequestering CO2, as well as approximately $38 million of net 45Z benefits from our plants outside of Nebraska, all of which are producing low-carbon ethanol, qualifying for 45Z. While it's easy to get caught up in the opportunities around carbon, let's not forget about ethanol. Export demand remains strong, and we're coming off a record-breaking corn crop. From a policy standpoint, strong administration and bipartisan support across several fronts, RVOs, SREs, and the push for year-round E15, can help strengthen biofuel markets and support American farmers. The release of Treasury's proposed 45Z clean fuel production credit regulations provides long-awaited clarity for the industry, recognition of CI improvements from on-farm practices, and key one big, beautiful bill improvements.
Speaker #3: While it's easy to get caught up in the opportunities around carbon, let's not forget about ethanol. Export demand remains strong and we're coming off a record-breaking corn crop.
Speaker #3: From a policy standpoint, strong administration and bipartisan support across several fronts—RBOs, SREs, and the push for year-round E15—can help strengthen biofuel markets and support American farmers.
Speaker #3: The release of Treasury's proposed 45Z Clean Fuel production credit regulations provides long-awaited clarity for the industry, recognition of CI improvements from on-farm practices, and key one big beautiful bill improvements such as the removal of the indirect land use change penalties and clarification of the qualified sale definition.
Chris Osowski: such as the removal of the Indirect Land Use Change penalties and clarification of the qualified sale definition. We view this as a constructive step that should support our decarbonization program, strengthen domestic feedstock markets, and create a favorable debt backdrop for our low CI platform. The continued strong production from our network of plants will allow us to capitalize on these tailwinds. Finally, I'd like to introduce two new faces to the Green Plains senior leadership team, Ann Reis and Ryan Loneman. Ryan is leading our legal function and will serve as a key advisor on governance, regulatory, and strategic transactions, while Ann leads our finance and accounting organization and is already providing insightful leadership in our tax credit monetization efforts and has brought a tremendous amount of industry experience to the role. With that, I'll hand it over to Ann to review the financial results.
Chris Osowski: such as the removal of the Indirect Land Use Change penalties and clarification of the qualified sale definition. We view this as a constructive step that should support our decarbonization program, strengthen domestic feedstock markets, and create a favorable debt backdrop for our low CI platform. The continued strong production from our network of plants will allow us to capitalize on these tailwinds. Finally, I'd like to introduce two new faces to the Green Plains senior leadership team, Ann Reis and Ryan Loneman. Ryan is leading our legal function and will serve as a key advisor on governance, regulatory, and strategic transactions, while Ann leads our finance and accounting organization and is already providing insightful leadership in our tax credit monetization efforts and has brought a tremendous amount of industry experience to the role. With that, I'll hand it over to Ann to review the financial results.
Speaker #3: We view this as a constructive step that should support our decarbonization program, strengthen domestic feedstock markets, and create a favorable debt backdrop for our low CI platform.
Speaker #3: The continued strong production from our network of plants will allow us to capitalize on these tailwinds. Finally, I'd like to introduce two new faces to the Green Plains Senior Leadership Team: Anne Reece and Ryan Lonneman.
Speaker #3: Ryan is leading our legal function and will serve as a key advisor on governance, regulatory, and strategic transactions, while Anne leads our finance and accounting organization and has already provided insightful leadership in our tax credit monetization efforts and has brought a tremendous amount of industry experience to the role.
Speaker #3: With that, I'll hand it over to Anne to review the financial results.
Speaker #2: Thanks, Chris, and good morning, everyone. I'm extremely excited to be a member of the Green Plains Team, and I've been so warmly welcomed by everyone here over the past four looking to be a positive year for Green Plains and the ethanol industry.
Ann Reis: Thanks, Chris, and good morning, everyone. I'm extremely excited to be a member of the Green Plains team, and I've been so warmly welcomed by everyone here over the past four weeks. 2026 is looking to be a positive year for Green Plains and the ethanol industry. But first, let's talk about the fourth, the last quarter of 2025. For Q4 2025, we reported net income attributable to Green Plains of $11.9 million, or $0.17 per diluted share, versus Q4 2024's net loss of $54.9 million, or -$0.86 per diluted share.
Ann Reis: Thanks, Chris, and good morning, everyone. I'm extremely excited to be a member of the Green Plains team, and I've been so warmly welcomed by everyone here over the past four weeks. 2026 is looking to be a positive year for Green Plains and the ethanol industry. But first, let's talk about the fourth, the last quarter of 2025. For Q4 2025, we reported net income attributable to Green Plains of $11.9 million, or $0.17 per diluted share, versus Q4 2024's net loss of $54.9 million, or -$0.86 per diluted share.
Speaker #2: let's talk about the last quarter of 2025. For the fourth quarter of 2025, we reported net income attributable to Green But first, Plains of 11.9 million dollars, or 17 cents versus Q4 2024's net loss of 54.9 million dollars.
Speaker #2: Or a negative 86 cents per diluted share. Adjusted for 3.6 million dollars of restructuring and non-cash charges, primarily related to accelerated stock compensation, and inclusive of the production tax credit benefits, Q4 2025 adjusted EBITDA ended at 49.1 million dollars.
Ann Reis: Adjusted for $3.6 million of restructuring and non-cash charges, primarily related to accelerated stock compensation and inclusive of the production tax credit benefit, Q4 2025 Adjusted EBITDA ended at $49.1 million, compared to -$18.2 million in Q4 of 2024. These year-over-year improvements reflect the successful execution of operational and cost discipline and the beginning stages of our carbonization monetization strategy. During the fourth quarter, we refinanced the majority of our 2027 convertible notes through a new $200 million convertible note due in 2030. We used $30 million from that transaction to repurchase approximately 2.9 million shares of stock.
Ann Reis: Adjusted for $3.6 million of restructuring and non-cash charges, primarily related to accelerated stock compensation and inclusive of the production tax credit benefit, Q4 2025 Adjusted EBITDA ended at $49.1 million, compared to -$18.2 million in Q4 of 2024. These year-over-year improvements reflect the successful execution of operational and cost discipline and the beginning stages of our carbonization monetization strategy. During the fourth quarter, we refinanced the majority of our 2027 convertible notes through a new $200 million convertible note due in 2030. We used $30 million from that transaction to repurchase approximately 2.9 million shares of stock.
Speaker #2: Compared to a negative 18.2 million dollars in Q4 of 2024. These year-over-year improvements reflect the successful execution of operational and cost discipline and the beginning stages of our carbonization monetization strategy.
Speaker #2: During the fourth quarter, we refinanced a majority of our 2027 convertible notes through a new $200 million convertible note due in 2030. We used $30 million from that transaction to repurchase approximately 2.9 million shares of stock.
Speaker #2: Outside of the 60 million dollars of 2027 convertible notes that remain outstanding, that we anticipate retiring with cash at maturity, we now have no near-term debt maturities and have the runway to focus on execution.
Ann Reis: Outside of the $60 million of 2027 convertible notes that remain outstanding, that we anticipate retiring with cash at maturity, we now have no near-term debt maturities and have the runway to focus on execution. Revenue for the quarter was $428.8 million, down 26.6% year-over-year. Our Q4 revenue was lower due to the impact of the Obion plant sale, idling our Fairmont facility in January of last year, and discontinuing the ethanol marketing for a third party, all of which naturally reduced the gallons we had to sell. SG&A totaled $22.9 million, which is $2.8 million lower than the prior-year Q4. We continue to keep a sharp focus on expenses in the business, and we can see that reflected in the significant cost reductions compared to last year.
Ann Reis: Outside of the $60 million of 2027 convertible notes that remain outstanding, that we anticipate retiring with cash at maturity, we now have no near-term debt maturities and have the runway to focus on execution. Revenue for the quarter was $428.8 million, down 26.6% year-over-year. Our Q4 revenue was lower due to the impact of the Obion plant sale, idling our Fairmont facility in January of last year, and discontinuing the ethanol marketing for a third party, all of which naturally reduced the gallons we had to sell. SG&A totaled $22.9 million, which is $2.8 million lower than the prior-year Q4. We continue to keep a sharp focus on expenses in the business, and we can see that reflected in the significant cost reductions compared to last year.
Speaker #2: Revenue for the quarter was 428.8 million dollars, down 26.6 percent year-over-year. Our Q4 revenue was lower, due to the impact of the Obayan plant sale, idling our Fairmont facility in January of last year, and discontinuing the ethanol marketing for a third party, all of which naturally reduced the gallons we had to sell.
Speaker #2: SG&A totaled 22.9 million dollars, which is 2.8 million lower than the prior year Q4. We continue to keep a sharp focus on expenses in the business, and we can see that reflected in the significant cost reductions compared to last year.
Speaker #2: We expect a consolidated SG&A run rate and the low 90 million dollar range for 2026, an improvement of more than 25 million compared to 2024.
Ann Reis: We expect a consolidated SG&A run rate in the low $90 million range for 2026, an improvement of more than $25 million compared to 2024. Q4 2025 depreciation and amortization finished at $23.5 million, compared to $21.5 million in the fourth quarter of 2024. Depreciation is expected to increase modestly in Q1 as we take ownership and begin depreciating the remaining carbon compression equipment. Interest expense was $6.1 million during the fourth quarter, a decrease of $1.6 million compared to the fourth quarter of 2024. We expect $30 to 35 million of interest expense during 2026. In the fourth quarter, we had an income tax benefit of 2.8, or $28.5 million.
Ann Reis: We expect a consolidated SG&A run rate in the low $90 million range for 2026, an improvement of more than $25 million compared to 2024. Q4 2025 depreciation and amortization finished at $23.5 million, compared to $21.5 million in the fourth quarter of 2024. Depreciation is expected to increase modestly in Q1 as we take ownership and begin depreciating the remaining carbon compression equipment. Interest expense was $6.1 million during the fourth quarter, a decrease of $1.6 million compared to the fourth quarter of 2024. We expect $30 to 35 million of interest expense during 2026. In the fourth quarter, we had an income tax benefit of 2.8, or $28.5 million.
Speaker #2: Q4 2025 depreciation and amortization finished at 23.5 million dollars, compared to 21.5 million dollars in the fourth quarter of increase modestly in Q1, as we 2024.
Speaker #2: Take ownership and begin depreciating the remaining carbon compression equipment. Interest expense was $6.1 million during the fourth quarter. Depreciation is expected to continue into 2024.
Speaker #2: We compared to the fourth quarter of expect 30 to 35 million dollars of interest expense during 2026. In the fourth quarter, we had an income tax benefit of 2.8 or 28.5 million dollars.
Speaker #2: Similar to last quarter, our 45Z Clean Fuel production tax credits are currently recorded under ASC 740, as a deferred tax asset. And then adjusted with a valuation allowance to recognize the likelihood of monetization.
Ann Reis: Similar to last quarter, our 45Z clean fuel production tax credits are currently recorded under ASC 740 as a deferred tax asset and then adjusted with a valuation allowance to recognize the likelihood of monetization. We've included the production tax credits in adjusted EBITDA to match our view that these are operating results of our production assets. In December 2025, the Financial Accounting Standards Board issued ASU 2025-10, Accounting for Government Grants Received by Business Entities. The standard is effective after 15 December 2028, but it does permit early adoption. The company will consider the impact of early adoption in the first quarter of 2026, which would adjust the presentation of the 45Z tax credits within the financial statements.
Ann Reis: Similar to last quarter, our 45Z clean fuel production tax credits are currently recorded under ASC 740 as a deferred tax asset and then adjusted with a valuation allowance to recognize the likelihood of monetization. We've included the production tax credits in adjusted EBITDA to match our view that these are operating results of our production assets. In December 2025, the Financial Accounting Standards Board issued ASU 2025-10, Accounting for Government Grants Received by Business Entities. The standard is effective after 15 December 2028, but it does permit early adoption. The company will consider the impact of early adoption in the first quarter of 2026, which would adjust the presentation of the 45Z tax credits within the financial statements.
Speaker #2: We've included the production tax credits and adjusted EBITDA to match our our production view that these are operating results of assets. In December of 2025, the financial accounting standards board issued ASU 2025-10, accounting for government grants received by business entities.
Speaker #2: The standard is effective after December 15, 2028, but it does permit early adoption. The company will consider the impact of early adoption in the first quarter of 2026, which would adjust the presentation of the 45Z tax credits within the financial statements.
Speaker #2: At the end of the quarter, our federal net operating loss balance of dollars will provide future tax 260.2 million efficiency. Our normalized tax in the 23 to 24 percent range.
Ann Reis: At the end of the quarter, our federal net operating loss balance of $2,260.2 million will provide future tax efficiency. Our normalized tax rate going forward is expected to remain in the 23% to 24% range. Our consolidated liquidity at quarter end included $230.1 million in cash, equivalents, and restricted cash, $325 million in working capital revolver availability, which is primarily designated for financing commodity inventories and receivables within our business. Capital expenditures in Q4 were $5.3 million. For 2026, we expect sustaining capital expenditures for maintenance, safety, and regulatory spending to total $15 to 25 million. Our York compression equipment passed its final performance testing during the fourth quarter, and the associated liability has moved into the debt portion of the balance sheet.
Ann Reis: At the end of the quarter, our federal net operating loss balance of $2,260.2 million will provide future tax efficiency. Our normalized tax rate going forward is expected to remain in the 23% to 24% range. Our consolidated liquidity at quarter end included $230.1 million in cash, equivalents, and restricted cash, $325 million in working capital revolver availability, which is primarily designated for financing commodity inventories and receivables within our business. Capital expenditures in Q4 were $5.3 million. For 2026, we expect sustaining capital expenditures for maintenance, safety, and regulatory spending to total $15 to 25 million. Our York compression equipment passed its final performance testing during the fourth quarter, and the associated liability has moved into the debt portion of the balance sheet.
Speaker #2: Our consolidated liquidity at quarter end included 230.1 million dollars in cash, equivalents and restricted cash, 325 million dollars in working capital revolver availability, which is primarily designated for financing commodity inventories and receivables within our business, capital expenditures in Q4 were 5.3 million dollars, for 2026 we expect sustaining capital expenditures for maintenance, safety, and regulatory spending, to total 15 to 25 million compression equipment passed its final dollars.
Speaker #2: performance testing during the fourth sheet. The compression equipment moved into the debt portion of the balance Our York liabilities for Central City and Wood quarter and the associated liability has River remain in a separate line item as of December 31, but that liability was moved into long-term debt in January.
Ann Reis: The compression equipment liabilities for Central City and Wood River remain on a separate line item as of December 31, but that liability was moved into long-term debt in January. Inclusive of the carbon equipment liabilities, our total debt balance is approximately $504 million. With that, I'll turn the call over to Imre for a commercial update.
Ann Reis: The compression equipment liabilities for Central City and Wood River remain on a separate line item as of December 31, but that liability was moved into long-term debt in January. Inclusive of the carbon equipment liabilities, our total debt balance is approximately $504 million. With that, I'll turn the call over to Imre for a commercial update.
Speaker #2: Inclusive of the carbon equipment liabilities, our total debt balance is approximately 504 million dollars. With that, I'll turn the call over to
Speaker #3: Thanks,
Imre Havasi: Thanks, Ann. In the fourth quarter, ethanol margins remained resilient, thanks to industry fundamentals that were much better than in 2024. The ethanol inverse did not break until late November. The industry was slow to build stocks coming out of fall maintenance, thanks to both solid domestic blending and strong export demand. Ethanol margins remained well positioned due to a record corn crop that could help keep feedstock prices in check. As we mentioned on our last call, we were partially hedged, heading into Q4, and those positions paid off as ethanol softened later in the quarter. The first quarter of 2026 is shaping up to be stronger than the same period of last year, and consistent with our disciplined risk management approach, we have a significant portion of our Q1 production margin logged in.
Imre Havasi: Thanks, Ann. In the fourth quarter, ethanol margins remained resilient, thanks to industry fundamentals that were much better than in 2024. The ethanol inverse did not break until late November. The industry was slow to build stocks coming out of fall maintenance, thanks to both solid domestic blending and strong export demand. Ethanol margins remained well positioned due to a record corn crop that could help keep feedstock prices in check. As we mentioned on our last call, we were partially hedged, heading into Q4, and those positions paid off as ethanol softened later in the quarter. The first quarter of 2026 is shaping up to be stronger than the same period of last year, and consistent with our disciplined risk management approach, we have a significant portion of our Q1 production margin logged in.
Speaker #3: Anne. In the fourth quarter, ethanol margins remained resilient, Emre for a commercial update. thanks to industry fundamentals that were 2024. The ethanol inverse did not break until late November.
Speaker #3: The industry was slow to build stocks, coming out of fall maintenance, thanks to both solid domestic blending and strong export demand. Ethanol margins remained well positioned, due much better than in help keep feedstock prices in check.
Speaker #3: As we mentioned on our last call, we were partially hedged heading into Q4, as ethanol softened later in of 2026 is shaping up to be stronger than the same period of last year, and consistent with our disciplined risk management approach.
Speaker #3: We have a significant portion of our Q1 production margin logged in. Industry ethanol production has been higher compared to last year, but we expect supportive demand both domestically and internationally.
Imre Havasi: Industry ethanol production has been higher compared to last year, but we expect supportive demand both domestically and internationally. Ethanol exports set a record last year, and we expect export demand to increase again in 2026. Domestically, E15 adoption continues to increase slowly, and it remains a massive opportunity for the industry. We are thankful to our local, state, and federal representatives who continue to advance E15 and advocate for American agriculture. Corn oil markets remained steady during the quarter, with values that contribute nicely to our gross margin. Although protein pricing continued to be under pressure, corn costs remain low, and overall, we see relatively solid margins going forward. With that, I would like to hand the call back over to Chris.
Imre Havasi: Industry ethanol production has been higher compared to last year, but we expect supportive demand both domestically and internationally. Ethanol exports set a record last year, and we expect export demand to increase again in 2026. Domestically, E15 adoption continues to increase slowly, and it remains a massive opportunity for the industry. We are thankful to our local, state, and federal representatives who continue to advance E15 and advocate for American agriculture. Corn oil markets remained steady during the quarter, with values that contribute nicely to our gross margin. Although protein pricing continued to be under pressure, corn costs remain low, and overall, we see relatively solid margins going forward. With that, I would like to hand the call back over to Chris.
Speaker #3: Ethanol exports set a record last year, and we expect export demand to increase again in 2026. Domestically, E15 adoption continues to increase slowly, and it remains a massive opportunity for the to our local state and federal representatives who continue to advance E15 and industry.
Speaker #3: Agriculture. Corn and all markets remain steady during the quarter, with values that contribute nicely to our gross margin. Although protein pricing continued to be under pressure, overall we see relatively solid margins going forward. We are thankful.
Speaker #3: With that, I would like to hand the call back costs remained low and
Speaker #3: over to Chris. Thanks,
Chris Osowski: Thanks, Imre. 2025 was a year of change, and our team has thrived while confronting challenges. The plants are producing more than what was previously thought possible. Our carbon project and the resulting earnings are being delivered. The balance sheet has been transformed and de-risked. It was a year defined by focus, safety, reliability, and a commitment to doing things the right way every time, which is exactly the mindset we're carrying into 2026. As we enter an exciting time for the company, our attention is focused to capital allocation and delivering value for our shareholders.
Chris Osowski: Thanks, Imre. 2025 was a year of change, and our team has thrived while confronting challenges. The plants are producing more than what was previously thought possible. Our carbon project and the resulting earnings are being delivered. The balance sheet has been transformed and de-risked. It was a year defined by focus, safety, reliability, and a commitment to doing things the right way every time, which is exactly the mindset we're carrying into 2026. As we enter an exciting time for the company, our attention is focused to capital allocation and delivering value for our shareholders.
Speaker #4: Imre. 2025 was a year of change in our team has thrived while confronting challenges. The plants are producing more than what possible, our carbon project and the resulting earnings was previously thought are being delivered, the balance sheet has been transformed and de-risked, it was a year defined by focus, safety, reliability, and a commitment to doing things the right way every time.
Speaker #4: Which is exactly 2026. As the mindset we're carrying into company, our attention is focused to we enter an exciting time for the capital allocation and delivering value for our efforts towards five strategic priorities which include improving energy efficiency, and CI evaluating carbon sequestration reduction projects, opportunities for plants, currently not on a capture carbon at plants before summit comes online, as well as for our pipeline, specifically how we plants that are not committed to a expanding opportunities that our facilities which are currently being pipeline, the bottlenecking or engineered, increasing on-site grain storage and receiving speed balancing capital structure and returning capital to shareholders.
Chris Osowski: We are concentrating efforts towards five strategic priorities, which include: improving energy efficiency and CI reduction projects, evaluating carbon sequestration opportunities for plants currently not on a pipeline, specifically how we capture carbon at plants before Summit comes online, as well as for our plants that are not committed to a pipeline, debottlenecking or expanding opportunities at our facilities, which are currently being engineered, increasing on-site grain storage and receiving speed capabilities, and finally, balancing capital structure and returning capital to shareholders. We look forward to putting this plan into action. Several efficiency and CI reduction projects are already underway and could be completed within the year. We are also completing FEL, or front-end loading engineering, on several larger energy reduction opportunities.
Chris Osowski: We are concentrating efforts towards five strategic priorities, which include: improving energy efficiency and CI reduction projects, evaluating carbon sequestration opportunities for plants currently not on a pipeline, specifically how we capture carbon at plants before Summit comes online, as well as for our plants that are not committed to a pipeline, debottlenecking or expanding opportunities at our facilities, which are currently being engineered, increasing on-site grain storage and receiving speed capabilities, and finally, balancing capital structure and returning capital to shareholders. We look forward to putting this plan into action. Several efficiency and CI reduction projects are already underway and could be completed within the year. We are also completing FEL, or front-end loading engineering, on several larger energy reduction opportunities.
Speaker #4: We look forward to putting this plan into action. Several efficiency and CI reduction projects are already underway and could be completed within capabilities, and finally the year.
Speaker #4: We are also completing FEL, or front-end loading engineering, on several larger energy reduction opportunities. Note that these projects reduce energy. It's important to lower our OPEX, making our plants more competitive.
Chris Osowski: It's important to note that these projects reduce energy consumption, which inherently lowers our OpEx, making our plants more competitive before adding on the returns from 45Z. This fully aligns with our strategy of being a low-cost, low-carbon biofuels producer. We're also evaluating and expect to expand our on-site grain storage and receiving capabilities. When we think about prioritizing the efficiency of the base ethanol plant, adding additional storage will help us draw more farmer bushels and capitalize on new crop harvest opportunities, lowering feedstock costs and reducing operational risks. In keeping with our disciplined, data-driven approach, every project will compete for capital and must support our low-cost, low-carbon strategy. In closing, I'm incredibly proud of what our team has accomplished in 2025, and I'm confident in the direction we're headed.
Chris Osowski: It's important to note that these projects reduce energy consumption, which inherently lowers our OpEx, making our plants more competitive before adding on the returns from 45Z. This fully aligns with our strategy of being a low-cost, low-carbon biofuels producer. We're also evaluating and expect to expand our on-site grain storage and receiving capabilities. When we think about prioritizing the efficiency of the base ethanol plant, adding additional storage will help us draw more farmer bushels and capitalize on new crop harvest opportunities, lowering feedstock costs and reducing operational risks. In keeping with our disciplined, data-driven approach, every project will compete for capital and must support our low-cost, low-carbon strategy. In closing, I'm incredibly proud of what our team has accomplished in 2025, and I'm confident in the direction we're headed.
Speaker #4: Before adding on the returns from 45Z. This fully aligns with our strategy of being a low-cost, low-carbon consumption which inherently producer. We're also evaluating and expect to expand our on-site grain storage and receiving capabilities.
Speaker #4: When we think about prioritizing the efficiency of biofuels at the base ethanol plant, adding additional storage will help us draw more farmer bushels and capitalize on new crop harvest opportunities, lowering feedstock costs and reducing operational risks.
Speaker #4: In keeping with our disciplined data-driven approach, every support our low-cost, low-carbon strategy. In closing, I'm incredibly proud of what our team has accomplished in 2025, and I'm confident in the direction we're headed.
Speaker #4: We remain focused project will compete for capital and must on delivering the decarbonization program, driving operational excellence, and maintaining a disciplined hedging strategy. We look forward to carrying this momentum into 2026 and remain committed to building confidence and trust as we deliver value for our shareholders.
Chris Osowski: We remain focused on delivering the carbon decarbonization program, driving operational excellence, and maintaining a disciplined hedging strategy. We look forward to carrying this momentum into 2026 and remain committed to building confidence and trust as we deliver value for our shareholders. With that, operator, we will now take your questions.
Chris Osowski: We remain focused on delivering the carbon decarbonization program, driving operational excellence, and maintaining a disciplined hedging strategy. We look forward to carrying this momentum into 2026 and remain committed to building confidence and trust as we deliver value for our shareholders. With that, operator, we will now take your questions.
Speaker #4: With that, Operator, we will now take your questions.
Speaker #1: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. If you would like to ask a question, please press star followed by the number one on your telephone keypad.
Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. If you would like to ask a question, please press star followed by the number one on your telephone keypad. And if you would like to withdraw your question, simply press star one again. We kindly ask everyone to limit themselves to one question and one follow-up to accommodate all questions. Thank you. Our first question comes from the line of Karan Sharma with Stephens. Please go ahead.
Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. If you would like to ask a question, please press star followed by the number one on your telephone keypad. And if you would like to withdraw your question, simply press star one again. We kindly ask everyone to limit themselves to one question and one follow-up to accommodate all questions. Thank you. Our first question comes from the line of Pooran Sharma with Stephens. Please go ahead.
Speaker #1: And if you star one again. We kindly would like to withdraw your question, simply press question and one follow-up to accommodate all questions. Thank you.
Speaker #1: Our first question comes from the line of Puran Sharma with Stephens. Please go
Speaker #1: ahead. Good morning
Pooran Sharma: Good morning, and congrats on the results this morning, and appreciate the questions here. I just maybe wanted to start off by asking about something you said in your prepared comments. You mentioned you're starting to see interest for counterparties around the 2026 45Z credits at this point. I was just wondering how that engagement has influenced the range of potential pricing or structures versus what you saw in 2025?
Pooran Sharma: Good morning, and congrats on the results this morning, and appreciate the questions here. I just maybe wanted to start off by asking about something you said in your prepared comments. You mentioned you're starting to see interest for counterparties around the 2026 45Z credits at this point. I was just wondering how that engagement has influenced the range of potential pricing or structures versus what you saw in 2025?
Speaker #5: and congrats on the results. This morning and appreciate the questions here. I just maybe wanted to start off by asking about something you said in your prepared comments.
Speaker #5: You mentioned you're starting to see interest for counterparties around the 2026 45Z credits. At this point, I was just wondering how that engagement, potential pricing, or structures compare versus what you saw in 2025.
Speaker #4: Well, thanks for the question, Puran, and I appreciate the feedback on the results. We are actively marketing these credits, and we feel confident in the strength of our platform's ability to deliver credits going forward.
Chris Osowski: ... Well, thanks for the question, Pooran, and yeah, appreciate the feedback on the results. We are actively marketing these credits, and we feel, you know, confident in the strength of our platform's ability to deliver credits going forward. And I think, in the near future, we'll be in a position to share more on the details around execution of the sale process.
Chris Osowski: ... Well, thanks for the question, Pooran, and yeah, appreciate the feedback on the results. We are actively marketing these credits, and we feel, you know, confident in the strength of our platform's ability to deliver credits going forward. And I think, in the near future, we'll be in a position to share more on the details around execution of the sale process.
Speaker #4: And I to share more on the think in the near future we'll be in a position details around execution of the sales
Speaker #5: Okay. Appreciate that. Wanted to maybe get a sense of you mentioned I think in the release that there was some upside here to the 188 total carbon I think you mentioned there's some CI reduction projects.
Pooran Sharma: Okay. Appreciate that. Wanted to maybe get a sense of, you know, you mentioned, I think in the release, that there was some upside here to the 188 total carbon. I think you mentioned, you know, there's some CI, CI reduction projects in the mix, but was wondering if you could just tease that out with a little bit more granularity. What do you think, how much more do you think that opportunity can get to and what are some of the projects that you're working on specifically?
Pooran Sharma: Okay. Appreciate that. Wanted to maybe get a sense of, you know, you mentioned, I think in the release, that there was some upside here to the 188 total carbon. I think you mentioned, you know, there's some CI, CI reduction projects in the mix, but was wondering if you could just tease that out with a little bit more granularity. What do you think, how much more do you think that opportunity can get to and what are some of the projects that you're working on specifically?
Speaker #5: In the mix, but just was wondering if you could just tease that out with a little bit more granularity. What do you think how much more do you think that opportunity can get to and what are some of the projects that you're working on specifically?
Speaker #4: Yeah. And I appreciate the follow-up. So we have numerous plant total capital in the 5 to 10 efficiency projects let's just say in terms of million dollar range of spend that have very fast returns inclusive of themselves within two-year time period or even less in some 45Z.
Chris Osowski: Yeah, and, I appreciate the follow-up. So we have numerous plant efficiency projects, let's just say, in terms of total capital, in the $5 to 10 million range of spend, that have very fast returns, inclusive of 45Z. You know, things that are paying for themselves within two-year time period or even less in some cases, focused around the Nebraska locations. But we're also evaluating opportunities for, you know, larger investments that could lower the energy consumption in plants, that lower our OpEx, specifically, electrical and natural gas consumption. They'll help drive returns just beyond 45Z. And in terms of magnitude, I don't really have a specific range to share, but we're confident in the numbers we've provided so far, and there is potential upside.
Chris Osowski: Yeah, and, I appreciate the follow-up. So we have numerous plant efficiency projects, let's just say, in terms of total capital, in the $5 to 10 million range of spend, that have very fast returns, inclusive of 45Z. You know, things that are paying for themselves within two-year time period or even less in some cases, focused around the Nebraska locations. But we're also evaluating opportunities for, you know, larger investments that could lower the energy consumption in plants, that lower our OpEx, specifically, electrical and natural gas consumption. They'll help drive returns just beyond 45Z. And in terms of magnitude, I don't really have a specific range to share, but we're confident in the numbers we've provided so far, and there is potential upside.
Speaker #4: cases. Focused around the Nebraska locations. But we're also evaluating opportunities Things that are paying for for larger investments that could lower the energy consumption in plant that lower our OPEX natural gas consumption.
Speaker #4: They'll specifically electrical and drive returns just beyond help 45Z. In terms of magnitude, I don't really have a specific range to share but we're confident in the numbers we've provided so far and there is potential upside.
Speaker #4: But we are working to optimize the carbon capture equipment that is running right now. All five compressors right now are online capturing more than 90% of the CO2 that we're producing.
Chris Osowski: But we are working to optimize the carbon capture equipment that is running right now. All five compressors right now are online, capturing more than 90% of the CO2 that we're producing. So we feel very, very strongly about the numbers we've provided so far. And as soon as we start rolling out some of these projects, we'll communicate more on expected returns and potential upside.
Chris Osowski: But we are working to optimize the carbon capture equipment that is running right now. All five compressors right now are online, capturing more than 90% of the CO2 that we're producing. So we feel very, very strongly about the numbers we've provided so far. And as soon as we start rolling out some of these projects, we'll communicate more on expected returns and potential upside.
Speaker #4: So we feel very strongly about the numbers we provided so far. And as soon as we start rolling out some of these projects, we'll communicate more on expected returns and potential
Speaker #4: upside. Our next question comes from
Operator: Our next question comes from the line of Salvatore Tiano with Bank of America. Please go ahead. Go ahead.
Operator: Our next question comes from the line of Salvatore Tiano with Bank of America. Please go ahead. Go ahead.
Speaker #1: the line of Salvatore Tiano with Bank of
Speaker #1: America. Please go ahead.
Speaker #6: Go
Hakeem Fason: Hey, good morning. Hakeem Fason for Salvatore Tiano. Can you clarify why your Q4 cash flow from operations before working capital was around $16 million, much lower than EBITDA? And conversely, it appears you had a massive working capital tailwind for Q4 in the year. What drove that, and what does that mean for 2026 net working capital? Thank you.
Speaker #7: Hey, good morning. Hakeem Sanfon for Salvatore can you clarify why your Fortune cash flow from million much lower than EBITDA and operations before working capital was around 16 massive working capital tailwind for Fortune in the year?
Hakeem Sanfo: Hey, good morning. Hakeem Fason for Salvatore Tiano. Can you clarify why your Q4 cash flow from operations before working capital was around $16 million, much lower than EBITDA? And conversely, it appears you had a massive working capital tailwind for Q4 in the year. What drove that, and what does that mean for 2026 net working capital? Thank you.
Speaker #7: What drove that and what does that mean for 2026 net working you.
Speaker #4: Sure. Thank you for the question. This is Will. So Q4 as
Will Yeakel: Sure. Thank you for the question. This is Will. So Q4, you know, as we said in our prepared remarks, we had a nice uplift from our carbon earnings. We haven't taken full receipt of cash. We did take a small portion, $14 million, as we previously released, but we'll receive the rest of that cash in Q1. So that's going to be one of the deltas. The second piece, you know, in talking about working capital is we did accelerate our receivables and our inventory, as previously discussed from the Eco transaction, and along with building farmer payments during the quarter, that helped generate some cash for us from a working capital standpoint in the quarter.
Will Yeakel: Sure. Thank you for the question. This is Will. So Q4, you know, as we said in our prepared remarks, we had a nice uplift from our carbon earnings. We haven't taken full receipt of cash. We did take a small portion, $14 million, as we previously released, but we'll receive the rest of that cash in Q1. So that's going to be one of the deltas. The second piece, you know, in talking about working capital is we did accelerate our receivables and our inventory, as previously discussed from the Eco transaction, and along with building farmer payments during the quarter, that helped generate some cash for us from a working capital standpoint in the quarter.
Speaker #4: earnings. We haven't taken full receipt of cash. We did take a small portion 14 million as we previously released. But we'll receive the rest of that cash in Q1.
Speaker #4: So that's going to be one of the deltas. The second piece in talking about working capital is we did accelerate our receivables and our inventory as previously discussed from the eco transaction.
Speaker #4: And along with building farmer payments during the quarter that helped generate some cash for us from a working capital standpoint in the
Speaker #4: quarter.
Hakeem Fason: Thank you. As a quick follow-up, how should we think of Q1 ethanol EBITDA? Margin was suggesting negative segment EBITDA for Green Plains. Is that what you're seeing in the market? And what about Q2 outlook so far?
Hakeem Sanfo: Thank you. As a quick follow-up, how should we think of Q1 ethanol EBITDA? Margin was suggesting negative segment EBITDA for Green Plains. Is that what you're seeing in the market? And what about Q2 outlook so far?
Speaker #7: And as a quick follow-up how should we think of one Q ethanol EBITDA margin we're suggesting negative segment EBITDA for Green Plains? Is that what you're seeing in the market?
Speaker #7: And what about two quarters outlook so far ahead?
Chris Osowski: Thanks for the question, Salvatore. It is, we're of course seasonally this is the low point usually of the year, but we're much better in much better shape as an industry and also our company, compared to last year. You know, when you look at the different components of that EBITDA margin, I mean, Chris already talked about our operational efficiency. Our plants are running well, our yields are up. So we're putting out really good production volumes to the market. And in terms of market fundamentals, the different components of our consolidated crush margins are holding up very nicely. You know, corn continues to be you know relatively inexpensive due to that large crop, and that got confirmed.
Speaker #4: Thanks for the question. Salvatore it is we're of course seasonally this is the low point much better shape as an usually of the year but we're much better in compared to last year.
Chris Osowski: Thanks for the question, Salvatore. It is, we're of course seasonally this is the low point usually of the year, but we're much better in much better shape as an industry and also our company, compared to last year. You know, when you look at the different components of that EBITDA margin, I mean, Chris already talked about our operational efficiency. Our plants are running well, our yields are up. So we're putting out really good production volumes to the market. And in terms of market fundamentals, the different components of our consolidated crush margins are holding up very nicely. You know, corn continues to be you know relatively inexpensive due to that large crop, and that got confirmed.
Speaker #4: When you look at the different components of that EBITDA margin I mean Chris already talked about our operational efficiency. Our plants are running well.
Speaker #4: Our yields are up. So we're putting out really good production volumes to the market. And in terms of market fundamentals the different components of our consolidated crush margins are holding up very nicely.
Speaker #4: Corn continues to be relatively inexpensive. Due to that large crop and that got confirmed corn oil prices are significantly better than a year ago.
Chris Osowski: Corn oil prices are significantly better than a year ago. And, you know, simple crush margins, which is just the corn futures and ethanol financials, they're also holding up relatively well. Again, reflecting some seasonally lower volumes, but overall, when you look at consolidated crush, they are much better than last year. And again, if you combine that with our operational efficiency, we're confident to show a very good number for Q1, especially when you compare it to the year prior.
Chris Osowski: Corn oil prices are significantly better than a year ago. And, you know, simple crush margins, which is just the corn futures and ethanol financials, they're also holding up relatively well. Again, reflecting some seasonally lower volumes, but overall, when you look at consolidated crush, they are much better than last year. And again, if you combine that with our operational efficiency, we're confident to show a very good number for Q1, especially when you compare it to the year prior.
Speaker #4: And simple crush margins, which is just the corn futures and ethanol financials, they're also holding up relatively well. Again, reflecting some seasonally lower volumes, but overall, when you look at consolidated crush, they are much better than last year.
Speaker #4: And again if you combine that with our operational efficiency we're confident to show a very good number for Q1 especially when you compare it to a year prior.
Speaker #1: Our next question comes from the line of Kristen Owen with Oppenheimer. Please go ahead.
Operator: Our next question comes from the line of Kristen Owen with Oppenheimer. Please go ahead.
Operator: Our next question comes from the line of Kristen Owen with Oppenheimer. Please go ahead.
Speaker #8: Hi. Good morning. Thank you so much for the question. So, I wanted to start with the $188 million of carbon expected here in 2026.
Pooran Sharma: Hi, good morning. Thank you so much for the question. So I wanted to start with the $188 million of carbon expected here in 2026. You know, if I look back a couple of quarters, that number was closer to $150 million. So I'm wondering if you could help us bridge how we got much better than that? You know, how much of that came from the expanded capacity on your existing footprint, maybe some of the changes that you've made in the operations over the last couple of quarters?
Kristen Owen: Hi, good morning. Thank you so much for the question. So I wanted to start with the $188 million of carbon expected here in 2026. You know, if I look back a couple of quarters, that number was closer to $150 million. So I'm wondering if you could help us bridge how we got much better than that? You know, how much of that came from the expanded capacity on your existing footprint, maybe some of the changes that you've made in the operations over the last couple of quarters?
Speaker #8: If I look back a couple of quarters that number was closer to 150 million. So I'm wondering if you could help us bridge how we got much better than that how much of that came from the expanded capacity on your existing footprint maybe some of the changes that you've made in the operations over the last couple of quarters.
Kristen Owen: ... and then my follow-up is related to that, just the monetization of those credits, what we should be thinking about in terms of discount to face value, sort of what you're seeing in the marketplace. And Ann, I would love your feedback on that, just given your background. Thank you.
Kristen Owen: ... and then my follow-up is related to that, just the monetization of those credits, what we should be thinking about in terms of discount to face value, sort of what you're seeing in the marketplace. And Ann, I would love your feedback on that, just given your background. Thank you.
Speaker #8: And then my follow-up is related to that, just the monetization of those in terms of discount to face value—sort of what you're seeing in the marketplace. I would love your feedback on that, just given your background.
Speaker #8: Thank you.
Speaker #4: Yeah, thanks, Kristen. And maybe I'll start. In terms of the $188 million, that number has moved a little bit, but it's really built around $150 million coming from the three Nebraska voluntary credits, which are probably in the $15 to $20 million range out of that, locations inclusive of the $150 million.
Chris Osowski: Yeah. Thanks, Kristen, and maybe I'll start. In terms of the 188, you know, that number has moved a little bit, but it's really built around $150 million coming from the three Nebraska locations, inclusive of voluntary credits, which are probably in the $15 to 20 million range out of that 150. And then, the additional 38 coming from the other facilities, that number changed as a result of the Obion plant sale. So in simple terms, it's 380 million gallons of capacity with 5 CI points being reduced, and that's how we're looking at that. And it, that's also subject to, you know, the plants have to run. We have to maintain our yields.
Chris Osowski: Yeah. Thanks, Kristen, and maybe I'll start. In terms of the 188, you know, that number has moved a little bit, but it's really built around $150 million coming from the three Nebraska locations, inclusive of voluntary credits, which are probably in the $15 to 20 million range out of that 150. And then, the additional 38 coming from the other facilities, that number changed as a result of the Obion plant sale. So in simple terms, it's 380 million gallons of capacity with 5 CI points being reduced, and that's how we're looking at that. And it, that's also subject to, you know, the plants have to run. We have to maintain our yields.
Speaker #4: And then the additional 38 coming from the other facilities that number changed as a result of the O'Brien plant sale so in simple terms it's 380 million gallons of capacity with five CI points being reduced.
Speaker #4: And that's how we're looking at that. And it's also subject to the plants have to run. We have to maintain our yields. We have to maintain the energy efficiency in the locations.
Chris Osowski: We have to maintain the energy efficiency in the locations, and our compression equipment has to continue to operate at a high utilization rate, which is getting there right now and has been ramping up over the duration of the fourth quarter to get to these, these levels. And then, Ann, if you want to comment on the tax credits?
Chris Osowski: We have to maintain the energy efficiency in the locations, and our compression equipment has to continue to operate at a high utilization rate, which is getting there right now and has been ramping up over the duration of the fourth quarter to get to these, these levels. And then, Ann, if you want to comment on the tax credits?
Speaker #4: And our compression equipment has to continue to operate at a high utilization rate which is getting there right now and has been ramping up over the duration of the these levels.
Speaker #4: To get to
Speaker #4: And then Ann if you want fourth quarter. to comment on the tax credits.
Ann Reis: Sure. So, the tax credits, you know, there is, there has been a lot of interest around it, and it continues. And now with the 45Z proposed guidance coming out this week, that's incredibly helpful. You know, there's a number of factors that go into the pricing around it. So, you know, when you're talking to the counterparties, their interest is, you know, around debating around whether you have insurance or not. It's around what the strength of your balance sheet is. It's the how many, how long of credits you're looking to sell, and whether or not, you know, you qualify for PWA and have a good compliance program around all of it.
Ann Reis: Sure. So, the tax credits, you know, there is, there has been a lot of interest around it, and it continues. And now with the 45Z proposed guidance coming out this week, that's incredibly helpful. You know, there's a number of factors that go into the pricing around it. So, you know, when you're talking to the counterparties, their interest is, you know, around debating around whether you have insurance or not. It's around what the strength of your balance sheet is. It's the how many, how long of credits you're looking to sell, and whether or not, you know, you qualify for PWA and have a good compliance program around all of it.
Speaker #3: credits there is there has been a lot of Sure. So the tax interest around it and it continues. And now with the that's incredibly 45Z proposed guidance coming out this week helpful.
Speaker #3: There's a number of factors that go into the pricing around it. So when you're interest is around talking to the counterparties their debating around whether you have insurance or not.
Speaker #3: It's around what the strength of your balance sheet, long of credits you're looking to sell. It's how many, how, and whether or not you qualify for PWA and have a good compliance program around all of it.
Speaker #3: We feel very confident in all of those factors. And our compliance program and we've had very fruitful discussions with counterparties and like we said we expect to be able to announce something in the near
Ann Reis: We feel very confident in all of those factors in our compliance program, and, you know, we've had very fruitful discussions with counterparties, and like we said, we expect to be able to announce something in the near future.
Ann Reis: We feel very confident in all of those factors in our compliance program, and, you know, we've had very fruitful discussions with counterparties, and like we said, we expect to be able to announce something in the near future.
Speaker #3: future. Our next
Operator: Our next question comes from the line of Eric Stine with Craig-Hallum. Please go ahead.
Operator: Our next question comes from the line of Eric Stine with Craig-Hallum. Please go ahead.
Speaker #1: question comes from the line of Eric Stein with Craig Hallam. Please go
Speaker #1: ahead. Hi
Eric Stine: Hi, everyone. Maybe just sticking on the carbon side, just to clarify. So you gave, talking about projects or energy efficiency projects at other locations and talked about $5 to 10 million. Chris, I... Is that, just to be clear, I mean, that, that's separate above and beyond the $15 to 25 million in CapEx that you gave for maintenance. And then also, is that five to ten per plant? Five to ten in total? Just give us some clarity on that. That'd be helpful.
Eric Stine: Hi, everyone. Maybe just sticking on the carbon side, just to clarify. So you gave, talking about projects or energy efficiency projects at other locations and talked about $5 to 10 million. Chris, I... Is that, just to be clear, I mean, that, that's separate above and beyond the $15 to 25 million in CapEx that you gave for maintenance. And then also, is that five to ten per plant? Five to ten in total? Just give us some clarity on that. That'd be helpful.
Speaker #7: So, just to clarify for everyone, maybe just sticking on the carbon. So, you mentioned talking about projects or energy efficiency projects at other locations and talked about $5 to $10 million—crush.
Speaker #7: Is that just to be clear I mean that's separate above and beyond the 15 to 25 million in CapEx that you gave for maintenance.
Speaker #7: And then also is that five to ten per plant five to ten in total just give us some clarity on that that'd be helpful.
Chris Osowski: Sure. Appreciate the question. And, yeah, in terms of our plant network, we talk about sustaining capital being around that $20 million range. We said, or $20 million target. That's just to maintain the existing assets' health, and we're gonna ensure as a first priority that we take care of our plants, and they're capable of running at high utilization rates and yields. Yeah, $5 to 10 million of efficiency projects is on top of that, for the company, is what we have in our queue. And then, you know, we're also, like I mentioned, looking at grain storage opportunities for increasing capacity and receiving speed at locations, and that is yet to be determined, when and where and how much.
Chris Osowski: Sure. Appreciate the question. And, yeah, in terms of our plant network, we talk about sustaining capital being around that $20 million range. We said, or $20 million target. That's just to maintain the existing assets' health, and we're gonna ensure as a first priority that we take care of our plants, and they're capable of running at high utilization rates and yields. Yeah, $5 to 10 million of efficiency projects is on top of that, for the company, is what we have in our queue. And then, you know, we're also, like I mentioned, looking at grain storage opportunities for increasing capacity and receiving speed at locations, and that is yet to be determined, when and where and how much.
Speaker #4: question. And yeah in Sure. Appreciate the terms of our plant network we talk about sustaining capital being around that 20 million dollar range. We said our 20 million dollar target that's just to maintain the existing assets health.
Speaker #4: And we're going to ensure as a first priority that we take care of our plants and they're capable of running at high utilization rates and yields.
Speaker #4: Yeah, five to ten million dollars of efficiency projects is on top of that for the company, is what we have. Then we're also, like I mentioned, looking at grain storage opportunities for increasing capacity and receiving speed at locations, and that is yet to be determined—when and where and how.
Speaker #4: much. Got it. in our queue.
Eric Stine: Got it. Understood. And maybe my follow-up, just, you know, on the 45Z, obviously a nice contribution here. I mean, how should we think about... I know you've got the, the new accounting guidance that is, coming on for 2028, but something you need to factor in. I mean, how do you think about the linearity of recognizing those in 2026? You know, just as we think about that from a, a modeling perspective, above and beyond, obviously, our judgment on ethanol markets.
Eric Stine: Got it. Understood. And maybe my follow-up, just, you know, on the 45Z, obviously a nice contribution here. I mean, how should we think about... I know you've got the, the new accounting guidance that is, coming on for 2028, but something you need to factor in. I mean, how do you think about the linearity of recognizing those in 2026? You know, just as we think about that from a, a modeling perspective, above and beyond, obviously, our judgment on ethanol markets.
Speaker #1: Understood. And maybe my follow-up just
Speaker #1: on the 45Z obviously a nice contribution here. I mean how should we think about I And know you've got the new accounting guidance that is coming on for 2028 but something you need to factor in.
Speaker #1: I mean how do you think about the linearity of recognizing those in 2026 just as we think about that from a modeling perspective above and beyond obviously our judgment on ethanol markets.
Speaker #1: I mean how do you think about the linearity of recognizing those in 2026 just as we think about that from a modeling perspective above and beyond obviously our judgment on ethanol markets.
Ann Reis: Yeah. You know, as we mentioned, you know, we feel like we'll have something - we feel strongly we'll have something here to announce in the near future that will help you with that modeling aspect. And, you know, with the accounting guidance opportunity that we have to adopt early in Q1, you know, that'll be... We appreciate that guidance. We feel like it is reflective of how we have always felt like the tax credit should be accounted for. And, you know, we'll have more to share with that, and with you guys in Q1 on that.
Ann Reis: Yeah. You know, as we mentioned, you know, we feel like we'll have something - we feel strongly we'll have something here to announce in the near future that will help you with that modeling aspect. And, you know, with the accounting guidance opportunity that we have to adopt early in Q1, you know, that'll be... We appreciate that guidance. We feel like it is reflective of how we have always felt like the tax credit should be accounted for. And, you know, we'll have more to share with that, and with you guys in Q1 on that.
Speaker #3: As we announce in the future that near future that will help you with that modeling with the accounting guidance opportunity that we have to adopt early in Q1 that'll be we appreciate that guidance.
Speaker #3: We feel like it is reflective of how we have always felt like the tax credits should be accounted on that.
Operator: Our next question comes from the line of Craig Irwin with Roth Capital. Please go ahead.
Operator: Our next question comes from the line of Craig Irwin with Roth Capital. Please go ahead.
Speaker #1: Our next question comes from the line of Craig Irwin with Draw Capital. Please go ahead.
Speaker #8: Hi. Good morning. Thanks for taking my questions. So first thing I wanted to ask about is really CI score. There were some estimates shared last year and just the way you gave us the 188 with the five point reduction I assume across the entire platform this year.
Craig Irwin: Hi, good morning. Thanks for taking my questions. First thing I wanted to ask about is really CI score. You know, there were some estimates shared last year, and just the way you gave us the 188 with the 5-point reduction, I assume, across the entire platform this year. I guess we've got to start with a mark. So can you share with us what the CI was on the platform, exiting 2025? And maybe if you can talk about, you know, what's possibly achievable over the course of 2026, can we exceed that 5-point assumption in the 188? And, you know, what's feasible with the higher level of capital spending on the platform over the next couple years?
Craig Irwin: Hi, good morning. Thanks for taking my questions. First thing I wanted to ask about is really CI score. You know, there were some estimates shared last year, and just the way you gave us the 188 with the 5-point reduction, I assume, across the entire platform this year. I guess we've got to start with a mark. So can you share with us what the CI was on the platform, exiting 2025? And maybe if you can talk about, you know, what's possibly achievable over the course of 2026, can we exceed that 5-point assumption in the 188? And, you know, what's feasible with the higher level of capital spending on the platform over the next couple years?
Speaker #8: I guess we're going to start with the mark. So can you share with us what the CI was on the platform exiting 2025 and maybe if you can talk about what's possibly achievable over the course of 26 can we exceed that five point assumption in the 188.
Speaker #8: And what's feasible with the higher level of capital spending on the platform over the next couple of years?
Speaker #8: years. Yeah.
Speaker #3: Thanks for your question. The way the guidance reads, right, is we have to have below a 50 score to be able to capture the CI.
Ann Reis: ... Yeah, thanks for your question. You know, it's the way the guidance reads, right, is we have to have below a 50 score to be able to capture the CI. And all of our facilities, starting in 2026, with the removal of the ILUC penalty, do qualify for that. And then obviously, right, with our Nebraska facilities that are capturing carbon, it's well below that 50 mark. Additionally, you know, with the guidance coming out this week, you know, we got a little bit of a surprise, I would say, with the addition of the on-farm practices now qualifying for a reduction in CI. So, you know, we'll be sharpening our pencils and taking a look at that and seeing what additional benefit that provides to us.
Ann Reis: ... Yeah, thanks for your question. You know, it's the way the guidance reads, right, is we have to have below a 50 score to be able to capture the CI. And all of our facilities, starting in 2026, with the removal of the ILUC penalty, do qualify for that. And then obviously, right, with our Nebraska facilities that are capturing carbon, it's well below that 50 mark. Additionally, you know, with the guidance coming out this week, you know, we got a little bit of a surprise, I would say, with the addition of the on-farm practices now qualifying for a reduction in CI. So, you know, we'll be sharpening our pencils and taking a look at that and seeing what additional benefit that provides to us.
Speaker #3: 2026 with the And all of our facilities starting in removal of the ILUC penalty do qualify for that. And then obviously right with our Nebraska facilities that are capturing carbon it's well below that 50 mark.
Speaker #3: Additionally with the guidance coming out this week we got a little bit of a surprise I would say with the addition of the on farming practices now qualifying for a reduction in CI.
Speaker #3: So we'll be sharpening our pencils and taking a look at that and seeing what additional benefit that provides to us. But we as the 188 was calculated that with the full cost of a normal assumption of the corn.
Ann Reis: But we, you know, as the 188 was calculated, that was with the assumption of the full cost of a normal corn, and this will reduce it. And so anything will be an upside with looking at the on-farm practices. So we're excited about that opportunity, and we'll be working towards coming up with a calculation for that, here in the next quarter.
Ann Reis: But we, you know, as the 188 was calculated, that was with the assumption of the full cost of a normal corn, and this will reduce it. And so anything will be an upside with looking at the on-farm practices. So we're excited about that opportunity, and we'll be working towards coming up with a calculation for that, here in the next quarter.
Speaker #3: And this will reduce it. And so, anything will be an upside with looking at the on-farming practices. So we're excited about that opportunity, and we'll be working towards coming up with a calculation for that here in the next—
Speaker #8: Okay. quarter. Just as a follow-up in that in my second at what those on farm practices could mean as far as an impact on Green is can you please question do you care to take a stab remind us on the payment terms for the third party financing on carbon sequestration equipment and capital that's been
Craig Irwin: Okay. Just as a follow-up in that, my second question, do you care to take a stab at what those on-farm practices could mean as far as an impact on Green Plains' CI? And then my second question is, you know, can you please remind us on the payment terms for the third-party financing on carbon sequestration equipment and capital that's been invested?
Craig Irwin: Okay. Just as a follow-up in that, my second question, do you care to take a stab at what those on-farm practices could mean as far as an impact on Green Plains' CI? And then my second question is, you know, can you please remind us on the payment terms for the third-party financing on carbon sequestration equipment and capital that's been invested?
Speaker #3: Yeah. So with the
Ann Reis: Yeah. So, with the on-farming practices, you know, we'll have to calculate that. There's a number of components that includes, you know, how many bushels we're buying directly from producers versus commercial spaces, which, you know, majority of our facilities are, you know, that's a majority of the corn that we buy is directly from the farmers. So we have a lot of optimism around being able to capture some of that value. What that actually looks like at the moment, you know, more to come on that. But we do feel like there is value there to capture. And Will, I don't know if you want to talk about-
Ann Reis: Yeah. So, with the on-farming practices, you know, we'll have to calculate that. There's a number of components that includes, you know, how many bushels we're buying directly from producers versus commercial spaces, which, you know, majority of our facilities are, you know, that's a majority of the corn that we buy is directly from the farmers. So we have a lot of optimism around being able to capture some of that value. What that actually looks like at the moment, you know, more to come on that. But we do feel like there is value there to capture. And Will, I don't know if you want to talk about-
Speaker #3: on farming practices there's a we'll have to calculate that there's a number of components that includes how many bushels we're buying directly from producers.
Speaker #3: Versus invested. commercial spaces which majority of our facilities are that's a majority of the corn that of optimism around being able to capture some of that value.
Speaker #3: What that actually looks like at the moment more to come on we buy is directly from the farmer. that. But we do feel like there is So we have a lot
Speaker #3: value there to capture. And we'll I don't know if you want to talk about.
Speaker #4: With respect to And then my second question facilities at our Nebraska plants. Like Ann mentioned that does flip it into the balance sheet debt category and from now on we will have monthly payments to pay down the P&I on those like an amortizing loan similar to a mortgage.
Will Yeakel: Yeah. With respect to the compression liabilities, you know, once we take ownership, which we've now taken ownership of all three facilities at our Nebraska plants, like Ann mentioned, that does flip it into the balance sheet debt category. And from now on, we will have monthly payments to pay down the P&I on those facilities. Really just works like an amortizing loan similar to a mortgage. So you'll see those reflected in our interest expense and debt repayments on the cash flow going forward.
Will Yeakel: Yeah. With respect to the compression liabilities, you know, once we take ownership, which we've now taken ownership of all three facilities at our Nebraska plants, like Ann mentioned, that does flip it into the balance sheet debt category. And from now on, we will have monthly payments to pay down the P&I on those facilities. Really just works like an amortizing loan similar to a mortgage. So you'll see those reflected in our interest expense and debt repayments on the cash flow going forward.
Speaker #4: the compression liabilities once we take ownership which we've now taken ownership of all three Yeah.
Speaker #4: So you'll see those reflected in our interest expense and debt repayments on the cash flow going facilities.
Speaker #4: forward. Our next
Operator: Our next question comes from the line of Andrew Strelzik with BMO Capital Markets. Please go ahead.
Operator: Our next question comes from the line of Andrew Strelzik with BMO Capital Markets. Please go ahead.
Speaker #1: question comes from the line of Andrew Strzelczyk with BMO Capital Markets. Please go
Speaker #1: ahead. Really just works
Andrew Strelzik: Hey, thanks for taking the question. Obviously, the company's made a lot of progress from an execution, cost, operations perspective, in relatively short order. I guess, I'm curious how you're thinking about those opportunities going forward. Do you feel like you've executed against most of that at this point? Or where do you see the biggest opportunities to continue to get better from an execution and cost perspective?
Andrew Strelzik: Hey, thanks for taking the question. Obviously, the company's made a lot of progress from an execution, cost, operations perspective, in relatively short order. I guess, I'm curious how you're thinking about those opportunities going forward. Do you feel like you've executed against most of that at this point? Or where do you see the biggest opportunities to continue to get better from an execution and cost perspective?
Speaker #5: question. I would say the company's made a lot of progress from an execution cost operations perspective in relatively short order. I guess I'm curious how you're thinking about those opportunities going forward.
Speaker #5: Do you feel like Point, or where do you see the biggest opportunities to continue to get better from an execution—you've executed against most of that at this—and cost perspective?
Speaker #4: Yeah. Thanks for the question. Andrew. And just a couple of data points I'd like to share. Starting on the operational excellence front our plants are as a whole are running at a 3 cent decrease in total OPEX year over year from 2024 to 2025.
Chris Osowski: Yeah, thanks for the question, Andrew. And just a couple of data points I'd like to share. You know, starting on the operational excellence front, you know, our plants are, as a whole, running at a $0.03 decrease in total OpEx year-over-year from 2024 to 2025. So we're seeing the fruits of that labor coming to fruition.
Chris Osowski: Yeah, thanks for the question, Andrew. And just a couple of data points I'd like to share. You know, starting on the operational excellence front, you know, our plants are, as a whole, running at a $0.03 decrease in total OpEx year-over-year from 2024 to 2025. So we're seeing the fruits of that labor coming to fruition.
Speaker #4: So we're seeing the fruits of that labor coming to fruition. At the same time there's still a few more pennies that we have to go after in 2026 and some of that is continued performance of management and plants.
Chris Osowski: At the same time, there's still a few more pennies that we have to go after in 2026, and some of that is, you know, continued performance of management and plants, but then also some of the capital projects that we mentioned earlier in the prepared remarks, getting implemented in locations where we have higher electrical costs and can take advantage of what is currently, you know, very low natural gas prices or historically low prices. So we feel very positive about that. And then, you know, further investments in our infrastructure to reduce cost of raw materials.
Chris Osowski: At the same time, there's still a few more pennies that we have to go after in 2026, and some of that is, you know, continued performance of management and plants, but then also some of the capital projects that we mentioned earlier in the prepared remarks, getting implemented in locations where we have higher electrical costs and can take advantage of what is currently, you know, very low natural gas prices or historically low prices. So we feel very positive about that. And then, you know, further investments in our infrastructure to reduce cost of raw materials.
Speaker #4: But then also some of the capital projects that we mentioned earlier in the prepared remarks are getting implemented in locations where we have higher electrical costs and can take advantage of what is currently very low natural gas prices—or historically low prices.
Speaker #4: So we feel very positive about that. And then further investments in our infrastructure to reduce cost storage, which for us is a very exciting opportunity.
Chris Osowski: We talked about grain storage, which for us is a very exciting opportunity to help us increase that percentage of farmer-originated bushels that lower our total cost, but then also potentially have a positive impact on CI score.
Chris Osowski: We talked about grain storage, which for us is a very exciting opportunity to help us increase that percentage of farmer-originated bushels that lower our total cost, but then also potentially have a positive impact on CI score.
Speaker #4: To help us increase that percentage of farmer-originated bushels that lower our total cost, but then also potentially have a positive impact on CI score.
Speaker #5: Okay, great. And then you mentioned in the prepared remarks E15 or the potential for E15. I guess, how do you see the market's readiness for E15 adoption from an infrastructure perspective? And, I guess, how are you thinking about the regulatory environment here, given some of the headlines? Thanks.
Andrew Strelzik: Okay, great. And then, you mentioned in the prepared remarks, E15 or the potential for E15, I guess, you know, how, how do you see the market's readiness for, for E15 adoption from an infrastructure perspective? And I guess, you know, kind of how are you thinking about, the regulatory environment for here, given some of, the headlines in, in recent weeks? Thanks.
Andrew Strelzik: Okay, great. And then, you mentioned in the prepared remarks, E15 or the potential for E15, I guess, you know, how, how do you see the market's readiness for, for E15 adoption from an infrastructure perspective? And I guess, you know, kind of how are you thinking about, the regulatory environment for here, given some of, the headlines in, in recent weeks? Thanks.
Speaker #5: recent weeks.
Speaker #4: Yeah. Of course a little bit of a disappointment right that it didn't make the bill last week. But there is a coalition growing it into there is I think long term or we think long term there is absolutely a need for that.
Chris Osowski: Yeah, of course, a little bit of a disappointment, right, that it didn't make it into the bill last week. But, there is, there is, a coalition growing. There is, I think long term, or we think long term, there is absolutely a need for that. We have to, as, as a country, generate more demand, domestically, not just rely on export markets. So I think there is, there's plenty of, support for that, in terms of just overall policy, and, and, and we're confident that it will be, allowed year-long at, one point. There are some hurdles that we, have to overcome, but, but it is, it is long-term, we believe, a necessary step, and, the outlook is positive. Now, in terms of infrastructure-
Imre Havasi: Yeah, of course, a little bit of a disappointment, right, that it didn't make it into the bill last week. But, there is, there is, a coalition growing. There is, I think long term, or we think long term, there is absolutely a need for that. We have to, as, as a country, generate more demand, domestically, not just rely on export markets. So I think there is, there's plenty of, support for that, in terms of just overall policy, and, and, and we're confident that it will be, allowed year-long at, one point. There are some hurdles that we, have to overcome, but, but it is, it is long-term, we believe, a necessary step, and, the outlook is positive. Now, in terms of infrastructure-
Speaker #4: We have to, as a country, generate more demand markets domestically, not just rely on export or support for that. In terms of policy, and we're confident that overall it will be allowed year-long at one point.
Speaker #4: There are some hurdles that But it is long term we believe a necessary we have to overcome. step and the outlook is infrastructure there are a couple of components that may go hand to hand.
Imre Havasi: ...There are a couple of components that may go hand to hand. One is, there's plenty of infrastructure out there, but, you know, they would have to switch, the gas station would have to switch between different grades at one point, and it goes hand in hand with consumer acceptance of the product. So I think, the more certainty the industry has, the supply chain can adjust to it. We don't think it's going to have a major impact in 2026, but after that, it can very nicely increase domestic blending demand, which again, we believe is a necessary long-term step for US ag and energy.
Imre Havasi: ...There are a couple of components that may go hand to hand. One is, there's plenty of infrastructure out there, but, you know, they would have to switch, the gas station would have to switch between different grades at one point, and it goes hand in hand with consumer acceptance of the product. So I think, the more certainty the industry has, the supply chain can adjust to it. We don't think it's going to have a major impact in 2026, but after that, it can very nicely increase domestic blending demand, which again, we believe is a necessary long-term step for US ag and energy.
Speaker #4: there's plenty of infrastructure out there One is would have to switch between but they would have to switch the gas station different grades. At one point and it goes hand in hand with consumer acceptance of the product.
Speaker #4: think the more certainty the industry has the supply chain can adjust to So I it. We don't think it's going to have a but after that it major impact in 26 can very nicely increase domestic blending demand which again we believe is a necessary long term step energy.
Speaker #1: Once again if you would like to ask a question please press star followed by the number one on your telephone keypad. Our next question comes from the line of Matthew Blair with PPH.
Operator: Once again, if you would like to ask a question, please press Star, followed by the number one on your telephone keypad. Our next question comes from the line of Matthew Blair with PPH. Please go ahead.
Operator: Once again, if you would like to ask a question, please press Star, followed by the number one on your telephone keypad. Our next question comes from the line of Matthew Blair with TPH. Please go ahead.
Speaker #1: Please go
Speaker #6: Great.
Matthew Blair: Great. Thank you, and good morning, everyone. Congrats on the strong results. I had a question on your outlook for capital allocation in 2026, and thanks for the CapEx guide. But with these 45Z credits coming in, how much debt reduction should we pencil in for 2026? And do you anticipate getting to a point where you could do, like, regular quarterly share repurchases, this year? Thank you.
Matthew Blair: Great. Thank you, and good morning, everyone. Congrats on the strong results. I had a question on your outlook for capital allocation in 2026, and thanks for the CapEx guide. But with these 45Z credits coming in, how much debt reduction should we pencil in for 2026? And do you anticipate getting to a point where you could do, like, regular quarterly share repurchases, this year? Thank you.
Speaker #6: Thank you ahead, and good morning, everyone. Congrats on the strong results. I had a question on allocation in your outlook for capital 2026, and thanks for the CAPEX guide.
Speaker #6: But with these 45Z credits coming in how much debt reduction should we pencil in for 2026 and do you anticipate getting to a point where you could do regular quarterly share repurchases this year?
Speaker #6: Thank you.
Speaker #4: Yeah, thanks for the question, Matthew. And while we're not really in a position to provide guidance on, let's say, growth capital allocation at the moment, we're effectively evaluating each opportunity that we have for free cash flow and where we can put the cash in the best position to provide its first and foremost value for shareholders, whether that's improving the efficiency of our plants for not only capitalizing on 45Z, but for the base OPEX cost of plant operations going forward.
Chris Osowski: Yeah, thanks for the question, Matthew. While we're not really in a position to provide guidance on that, let's say, growth capital allocation at the moment, we're effectively evaluating each opportunity that we have for free cash flow and where we can put the cash in the best position to provide value for shareholders. Whether it's, you know, first and foremost, improving the efficiency of our plants for not only capitalizing on 45Z, but for the base OpEx cost of plant operations going forward. Looking at opportunities to debottleneck or expand capacity where we have room to grow in the pipeline for carbon. So we've actually sized the compression stations and piping for our Wood River and Central City plants to be able to push more gas through the pipeline.
Chris Osowski: Yeah, thanks for the question, Matthew. While we're not really in a position to provide guidance on that, let's say, growth capital allocation at the moment, we're effectively evaluating each opportunity that we have for free cash flow and where we can put the cash in the best position to provide value for shareholders. Whether it's, you know, first and foremost, improving the efficiency of our plants for not only capitalizing on 45Z, but for the base OpEx cost of plant operations going forward. Looking at opportunities to debottleneck or expand capacity where we have room to grow in the pipeline for carbon. So we've actually sized the compression stations and piping for our Wood River and Central City plants to be able to push more gas through the pipeline.
Speaker #4: Looking at opportunities to debottleneck or expand capacity where we have room to grow in the pipeline for carbon. sized the compression stations and piping for and Central City plants to be able to push more gas through the pipeline.
Chris Osowski: And then also, like we talked about, the storage opportunities for raw materials. But then finally, looking at opportunities for debt reduction, or managing share repurchase as an alternative option. But we do have a healthy list of opportunities to grow and improve the performance of the business that have quite attractive returns at the moment.
Speaker #4: And our Wood River opportunities for raw, then also, like we talked about, the storage materials, but then finally looking at opportunities for debt reduction, managing share repurchase as an alternative or option.
Chris Osowski: And then also, like we talked about, the storage opportunities for raw materials. But then finally, looking at opportunities for debt reduction, or managing share repurchase as an alternative option. But we do have a healthy list of opportunities to grow and improve the performance of the business that have quite attractive returns at the moment.
Speaker #4: But we do have a healthy list of opportunities to grow and improve the performance of the business that have quite attractive returns at the—
Speaker #4: moment.
Matthew Blair: Okay, sounds good. And then for my follow-up, it looks like the DOE data last week showed US ethanol production really, really coming down. I think it dropped about 15% week over week, which, you know, I guess that was maybe due to either weather issues or the spike in natural gas. So apologies if I missed it, but did you provide a Q1 utilization target? And also, you know, any thoughts on natural gas impact on your op costs in Q1? Is that something that you regularly hedge natural gas or could that be, you know, pushing the op costs up a little bit in the first quarter? Thank you.
Matthew Blair: Okay, sounds good. And then for my follow-up, it looks like the DOE data last week showed US ethanol production really, really coming down. I think it dropped about 15% week over week, which, you know, I guess that was maybe due to either weather issues or the spike in natural gas. So apologies if I missed it, but did you provide a Q1 utilization target? And also, you know, any thoughts on natural gas impact on your op costs in Q1? Is that something that you regularly hedge natural gas or could that be, you know, pushing the op costs up a little bit in the first quarter? Thank you.
Speaker #6: Good. And then, for my follow-up, it looks like the DOE data last week showed U.S. ethanol production really coming down. I think it dropped about 15%.
Speaker #6: Week over week, which I guess that was maybe due to either weather issues or the spike in—if I missed it, but did you provide a natural gas...
Speaker #6: So apologies, Target. And also, any thoughts on natural gas impact on your op costs in Q1? Is that something that you regularly hedge—natural gas—or could that be pushing op up?
Speaker #6: Costs up a little bit in the first quarter?
Imre Havasi: Yeah, this is Imre. Thanks for the question. Yes, we were fully hedged on nat gas. We had minor operational hiccups due to the weather. So it's a domino effect, right? So it's weather impacting both plant performance, just the low temperature, right, and things freezing up, as well as nat gas supply and natural gas costs. So some plants decide, because you know they can cover variable costs at certain levels; if they are not hedged, they might slow down, shut down for a few days, and others would have maybe some mechanical problems. But from our perspective, yes, we've also experienced some impact on our production.
Imre Havasi: Yeah, this is Imre. Thanks for the question. Yes, we were fully hedged on nat gas. We had minor operational hiccups due to the weather. So it's a domino effect, right? So it's weather impacting both plant performance, just the low temperature, right, and things freezing up, as well as nat gas supply and natural gas costs. So some plants decide, because you know they can cover variable costs at certain levels; if they are not hedged, they might slow down, shut down for a few days, and others would have maybe some mechanical problems. But from our perspective, yes, we've also experienced some impact on our production.
Speaker #4: Imre. Thanks for the question. Yes. We were fully hedged on that Yeah. This is operational hiccups due to the weather. So gas. We had minor weather, impacting both just the low temperature right and things freezing up.
Speaker #4: As well as net gas supply and natural gas because they can't cover variable costs at certain levels if they are not hedged they might slow down, shut down for a few mechanical problems.
Speaker #4: But from our and others would have maybe some perspective yes we've also experienced some impact on our production but in terms of net gas we were fully hedged and we did not feel an impact from a margin
Imre Havasi: But in terms of nat gas, we were fully hedged and we did not feel an impact from a margin perspective.
Imre Havasi: But in terms of nat gas, we were fully hedged and we did not feel an impact from a margin perspective.
Speaker #4: perspective. Thank you.
Speaker #4: perspective. Thank you. days now turn the call back over to Chris Osowski for
Speaker #4: perspective. Thank you. days now turn the call back over to Chris Osowski for
Operator: Thank you. At this time, we have no further questions. I will now turn the call back over to Chris Osowski for closing remarks.
Operator: Thank you. At this time, we have no further questions. I will now turn the call back over to Chris Osowski for closing remarks.
Speaker #1: closing remarks.
Speaker #7: Well thank
Speaker #7: you for your participation in today's call and your interest in green plains. If you have additional questions for us please reach out and we look forward to connecting.
Chris Osowski: Well, thank you for your participation in today's call and your interest in Green Plains. If you have additional questions for us, please reach out, and we look forward to connecting. Have a great day.
Chris Osowski: Well, thank you for your participation in today's call and your interest in Green Plains. If you have additional questions for us, please reach out, and we look forward to connecting. Have a great day.
Speaker #7: Have a great
Speaker #7: Have a great day. This concludes today's conference call.
Operator: This concludes today's conference call. You may now disconnect your lines. Thank you for your participation.
Operator: This concludes today's conference call. You may now disconnect your lines. Thank you for your participation.
