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spk_0: ratings and welcome to the wrecks american resources fiscal twenty twenty two fourth quarter conference call during the presentation all participants will be in a listen only mouth afterwards we will connect a question and answer session at that time if you have a question please press the one fall by the for on your telephone a fat any time during the conference you need to reach an operator please by star zero i would now like to turn the conference silver to mr doug pergamon chief financial officer please go ahead
spk_1: the morning and thank you for joining rex american resources fiscal two thousand twenty two fourth quarter conference call get our presentation and comments momentarily as well as your question and answer session but first i'll review the safe harbor disclosure in addition to historical facts are state of current conditions today's conference call contains forward looking statements that evolve risk and uncertainty is with with in meetings or the private securities litigation reform act of nineteen ninety five such forward looking statements reflect the company's current expectations and beliefs that are not keys of future performance as such actual results may vary materially from expectations the risk and uncertainty the socially with forward looking statements are described in today's news announcement and the company's fall into the securities and exchange commission the company are born ten k and ten rex american resources assumes no obligation to publicly update or revise any forward looking statements i have joining the on the call today to arose executive chairman of the board and zafar rizvi chief executive officer or first review our financial performance and then turned to call over to her for his comments sales for the fourth quarter declined by five point six percent by five point six percent as we experience lowers the volume for out than on the show was growing at the all sales for the quarter were based upon sixty three point seven million gallons issue versus sixty nine point nine million last year as we experienced some weather related disruption to their operations during the quarter we report a gross profit a fourteen point nine nine for this year's fourth quarter versus a gross profit a thirty eight point eight nine in the prior year in the current year quarter we experienced lower ethanol pricing as was hired porn a natural gas prices corn cost increased by twenty two percent and natural gas prices increased by twenty by twelve percent for this year's quarter compared to the prior year as an inflationary pressures and the impact of commodity prices from the ukraine or russia conflict continued we can to to to experience higher basis pricing for core near the nugent facility based upon a poor corn harvest and reduced corn availability and that local area as in a increase for the fourth quarter to six point seven million from six million in the prior year the increase is primarily due to an increase in the number that the my contract that required afraid to be paid by as compared to the prior year which we classify as sg and a cost we had income of two point five million from our unconsolidated equity investment and issues fourth quarter vs income a three point nine nine and a prior year the company's interest in other income and across your increased dramatically to two point six million versus thirteen thousand the previous year primarily reflect increase yields and our cash the discontinued operations reflect the prior your numbers are for refine poll business as we entered those operations on november eighteenth twenty twenty one there was no impact and the current year we reported a tax provision from continuing operations of two point two million for this your first of the provision of ten points of annoying and the prior year primarily reflecting the lower level of income in the current year these factors lead to net income attributed to rupture voters from continuing operations of eight point two million for dish or fourth quarter forces twenty one point three million and a prior year for net income per share attributable to rupture voters from can turn operations was forty seven cents for this your fourth quarter versus a dollar nineteen and a prior year again i point out all shared numbers reflect the three for one stock split which was effect of august fifth twenty twenty two stuart on ultra nicole over you
spk_2: thank you dad
spk_3: going forward ethanol currently running a roughly breakeven ah year to date so far as be in his sexual discuss of much further the cash is approximately two hundred and eighty million at the end to the core at the end of the year consolidated and we have use our users of cash and cash over the next couple years include carbon capture which again so far as we will discuss i invest in the cash right now right now our best mckesson interest bearing in accounts mostly treasury's in an and
spk_4: money market accounts
spk_3: in the bank said we are dealing with indices to the best of our knowledge or very very secure we consider them top quality bags in we feel very comfortable that catches the best been in the very very good way we are any decent interest and their cash or vs many company said his that we do not have much a personally no get sell sell that's a bit in our opinion scare away said he to invest cash this time and we will buy back on depths we have some plans for expansion of our ethanol plants which the pirates we'll talk about new we're always looking for additional ethanol plants to purchase of this time we have nothing eminent but it's something were to come up very good at now plant will certainly look at it and now turn that the column for to support receive are cheaper check youtube officer thank you
spk_5: thank you still have the morning everyone as i mentioned in our previous lot of the god we continue to faith challenging operation operating and weidman throughout the year due to number of factors drought has affected the way the availability of on it created a strong be a few as that guess leap motion earlier the marion celebrate a location and that in addition ethanol production a greater than the demand which continue to negatively affect the crash margin the high blood supply of the lack of gas during the last quarter an ear also like to believe fact the profit margin in positive news we have seen natural gas price dropped considerably recently and got into he i you at a yesterday that the leaderboard full of ethanol production dropped under one million battle a date and of explode pleaded seventeen thousand barrels a day week to week but the corner bases are still have strong unexpected was the harvest we are pleased with the will appear let me be up on in the gibson said the illinois area however because of good old in domestic exports and the on baby that beginning to stand janet we have seen weakness in the price of on or and ddg but there are they are these are still selling above the past despite the odd that he a slowdown in export the decline in the gosh margin in other lawmaker headwinds it we continue to force at the moment bright and don't create an image of an issue or forty to blame at this early stage of the first lot a bull dog and pony kitty we expect break of slightly profitable every time as to what just mess that may get offended by this of the outer garments question project leader of the full of point the universe be successfully built that best well to a total depth of around seventy one hundred feet in which almost two thousand feet amount simon's sandstone was incorrect complete complete completed geologically body goat milk models are predicting the movement of the field to injection into the subsurface that gold analyses performed in the gate very good as lot fluffy completed waterloo jack front desk at the well it said of to graduate expected movement of your to as well as expected but all media that thing be a very suitable storage for god will in square station that the body and three be as week that thing was completed and indicates very good storage several that test and modeling looking for want to verify maximum indexer passion rather water quality record analyses and expected movement of the to bloom the of death is out still sold if location is very good target for godwin square station the design of the compression facility is completed the contract to build a compression part of the facility have been signed and long lead time equipment has been out of the pipeline has a material and did identification number has been received the glove six but i'm month for to the injection wells were the capacity to store ninety million tons of godwin have been completed and submitted the the work on the pipeline faith studies is expected to be finished by the a little paper two thousand and twenty all may get a lead equipment order for the compressor facility which has been engineered and sides the got back to build a fertility have been fined we are currently working on a front and engineering design study for short by blind to deliver got one from our godless question facilities we expect to rebuild modular plant will be delivered by the end of december twenty one twenty to the and done the building will be structured around the modular plant we continued once again if he is highly technical very early stage and time consuming project it has acquired considerable time to make progress we cannot predict will be be successful but we are pleased what we started four years ago now has a deep some big milestone
spk_6: and
spk_5: as i also medicine in our previous god we're evaluating several other projects that would increase production ever century improving a year for sensei to reduce carbon intensity as well as reduce water consumption around the long we believe we will be able to complete most of the project phone company son of the projects with need to a greater benefit under the inflation reduction act passed by the dauntless and will contribute to the please cost of production as store just mention we also decided to you that them out production capacity of at one of the magic get some for the illinois or hundred and seventy four five million gallons from and and fifty million that the been few and production thread of section forty five the which is related to reduce fuel god been intense discord good for would provide as much as a dollar a gallon depending on carbon intensity of the know or do with and for the section forty five cash payment for the carbon sequestration increased to eighty five dollar metal band which we plan to switch off the ducks explosion of a some of the forty five the rich will continue to in the have a strong position of our company and somebody we are pleased to announce won't forget and profitable quarter in very very difficult environment as well as a good progress in our god one square fisher project i'm glad when grieve ethanol production capacity to maximize benefit of inflation reduction at section forty five the and forty five you want forty five the expires if we can achieve what we are planning to the companies in the future we will be ready to provide no god been at them out and buy for products why do i do think goblin in the atmosphere we cannot be a god month clusters and ice storms embark on project to the green goblin intensity plan to and greed open up production m achieve that consecutive quarter of positive income without the hard work and dedication of our police we are very appreciative of the
spk_3: effort to achieve these positive it does i will get the floor back to work for that for garments anchors do it but thanks for both the conclusion we will perform most to the industry competitors again we we've done this again we we believe we have the best plants great locations great potential and carbon capture which we think will be a future yeah most importantly and the biggest difference between us and the rest of the industry's the bar mention that people with the a way of the best people in the industry and then the yeah that's what separates us from the competition and a lot of competition can i have hopes and dreams but if you don't have good people they implement i'm they just tend to never happy
spk_7: and we have proven in the past the that we have good people i can run and gun and can run very very good ethanol plants and my plan and hope to do that and carbon capture we look at that it's have future amount of i'll now leave the
spk_8: the call open to questions
spk_0: thank you but if you were like to registry question please post a one for on your telephone you will hear are we don't pronto ignored your request a few question has been answered and you will like to withdraw your registration please press the one fall by the three once again to register a question please post a one for on your telephone one moment please for the first question
spk_9: our first question comes from a jordan levy with twist securities please proceed martha stewart suffered dogs and nice quarter against another challenging backdrop think that's worth recognizing for sure hum maybe to start out ah you mentioned he planned for expanding one earth's capacity i certainly seems like she's us is moving forward i had some of the initiative is this your maybe if you could just give us any cometary my head around capital plans for twenty tweet remote
spk_5: we should expect there
spk_10: at the fact i'd gotten we are guy i sad would plan to expand two hundred and seventy five million we are in process of evaluating all the cost and and have done on investment we have to have all up to disclose that is disclosed at that jonah
spk_5: garlic lotta leaves god or that at the shareholders meeting that what exactly total cashman big to ah
spk_9: on the at for to the expansion and the god been square station and that we will have both number that that time hey and presumably would be you with the expansion be hard
spk_5: throughout the course of this year yes exactly i think we have already had a may get up of evaluation has done we're putting the financial models and we're looking all of those information to see what done on investment as i mention that a with the expansion from hundred and fifty two if we go to hundred and seventy five million and that's about twenty five million dollar mode ethanol production and it we look at the benefit of forty five see on it we able to achieve our goal of carbon intensity which we are working on carbon sequestration and not as i was one said mention that fuck couple of years even before double forty five the we were trying to be make sure that we to our government that's deep so we all of those bad actor are really coming out to be great benefit for us to move forward so it looks like we had died or were do it all that return on investment and putting the back together and hopefully we will have like that that's what it leads to i've seen
spk_9: and two hundred and seventy five million we could have considered to expand two hundred million but we want to make for we do not create deficit of go born in that area thanks to that end the i appreciate all the comments and update you gave on carbon capture or maybe just it back up and look at this on a high level can you can you just lay out for us
spk_5: i know imagine the seats and target for the end of the year are moving into twenty four can continue to sort of lay out for us where you expect to be exiting twenty three what what you what will be completed in what would you expect the kind of the working on as at the time i think the most of our item as as as i mentioned that we have odd of all done long lead items are goodman some of those weapon takes as long as time leading is to be at an have
spk_11: and for we have the honor although the equipment and fled as i mentioned that we would expect to have are marginal unit which will be compression facility will be delivered by the end of this year and then we will have and will start around that modular unit he got that will take us
spk_5: or at least six to seven month odd longer the god is not apply blocked by a upset need to be connected electric building need to be built around it so that and as sold our goal is to have these at at to finish august project by the and up to four thousand and twenty four said suddenly that
spk_3: goal and it gonna happen some other on certain things which we do not you know come come out and believe that project but that's what our goalies like by the end of given your one other thing you should know and that people are a lot of people are announcing see a to projects in the ethanol industry that all they're really doing is tapping into pipelines and they're not getting the how could the economic benefits economic benefits are up to thirty years twenty six twenty seven and one eight a dollar a gallon we hope that we expect to hear about hundred and seventy five million gallons plants so even if we get have for that whatever whatever we receive we will receive at all whereas most of these cup tapping into pipelines are dependent on the pipeline's been belt are announcing that they're doing here to capture but they're really not doing the rounds you get to capture we're doing our own we've been doing this is a permission for four years and this is our project this is our shareholders project it's not that the movie have to share the the bulk of the revenues with the pipeline company the pipeline company of course then he has you captives they have the ability and they will take the ball then they will take a good percentage of the prospects in our case or profits come to our shareholders him humor were small company eighty million shares in bed with think it can be
spk_5: the very significant that's our plans or not and that's what we hope and expect exactly yes that's not the major difference between us and other so
spk_3: at and and outside thing as a store so what mansion we were really time to look at it for years ago when there was no forty five the at that time forty five what fifty dollar knowledge eighty five dollar so obvious benefits are ready for coming
spk_9: to see some or or but do they will approach to our shareholders insofar say exactly yeah
spk_12: but i think to i think that's commentary really appreciated i'll leave it at that thanks
spk_0: thanks jordan
spk_13: our next question comes from my chris sekai with singular research please proceed
spk_14: i'd the morning
spk_13: any program i where you need
spk_5: the country's largest next war between twenty three sex with of five export of ethanol you mean yes
spk_15: okay the canada has exported ah i imported five hundred and two million gallons i and i think and south korea hundred and fifty six know the land ninety nine total export father for two thousand and one he was one point three billion gallons compare
spk_14: i board in two thousand and twenty one one one point two billion gallons and that with nine nine percent higher than two two thousand twenty one
spk_16: okay thanks
spk_5: are you seeing an increase path in your in in the hill key to all the recent train derailments
spk_14: not really i think there is a railroad always and greed their lives there basically with with a the have up
spk_5: monopoly on that drag on don't have that accent so they really are always agree there they it's but recently we have not seen it due to the situation with to be named and ingredient in gleeson of eight
spk_14: okay thanks can you talk about the permitting process so far post the yes
spk_5: i'm sorry could you to be of your car companies how's the permitting processing process going the permitting process we have we have major department which all that a glad my to be grafted we completed all the document since that time they have couple of questions which we aren't them and we dig than for and that they have received all the documents and it is under review
spk_15: so from there we cannot control it depends on the government agency how long they were gonna take but we expect that we sort of feeble the but much sooner than anybody else because we already have done repeatedly our best when and in know the was area and we applied
spk_0: other that one or more previously and we've received at that time so we hope that within a few a sauna and we now have asked is really depend on the agency
spk_3: okay great thanks for your answers
spk_17: thank you or next question comes from a dream price with raymond james please proceed i think thanks for taking the question
spk_3: first up was just wondering are your thoughts around the him in a landscape and the relates to producing assets you know how valuations are looking for a year or two ago we haven't seen anything that i that and eating up for sale the be honest yeah so i can tell you how valuations are but i would assume they be up significant people wouldn't want significantly more to their plants and they get a year or two ago but no by the reason everyone has edit edit some type of carbon cap and every public company least have some type of carbon capture plans on and
spk_16: are they take their companies are worth more are contention is that the pipeline company said they're dealing with look will end up either for smell we think of be delayed second far we think that be i will not contribute to the bottom line with some of these companies think but it's in the meantime they are
spk_18: value in their companies more than they get a year or two ago for sure because of the opportunity because it as legislation that just passed that network that supply mention
spk_17: we now can get up to a dollar a gallon friends from forty five say maybe five dollars a time for forty five que that's a lot of money to be distributed to different people are case we helped to to keep the bulk of it
spk_5: okay gonna understand and then of for my followed had a a more macro policy question as serve the p a recently proposed allowing year round eat this team blending in the midwest this wondering you do you think this this will happen in does that plan go far enough in your opinion
spk_10: the party when hanson he eyes hard to say i think the different as you can see the different states are trying to implementing and the to dance and i've i and other locations several other states have faith all he had around and they applied for
spk_18: doug them some from the u p i hope it's a it's a ali at around ethiopian because i if it's not all the at around is discouraged by the gas station to have on six eight and nine months in a year than than they have to discontinue and and start over so that's what we hope
spk_0: and but we cannot predict what i'm gonna this are
spk_3: any a beer in probably will do that that is already legislation or tied to the do with in congress to have allowed ali around and hopefully that happened
spk_0: got it at that's clear thank you very much hell our pass not thank you mr else no further questions at this time okay will we thank everyone for less than a normal a you're talking to the into this quarter in talking to everyone again after the into the score thank you back
spk_1: that does concluded conference call for today we thank you for your participation and as that you please disconnect or line have a great debbie on it yet the greetings and welcome to the erects american resources fiscal twenty twenty two fourth quarter conference call during the presentation all participants will be in a listen only mouth afterwards we will connect a question and answer session at that time if you have a question please press the one fall by the for on your telephone a fat any time during the conference you need to reach an operator please by star zero i would now like to turn the conference silver to mister doug brigham and chief financial officer please go ahead the morning and thank you for joining rex american resources fiscal two thousand and twenty two fourth quarter conference call we'll get our presentation and comments momentarily as well as your question and answer session but first i'll redo the safe harbor disclosure in addition to historical facts are staples of current conditions today's conference call contains forward looking statements that evolve risk and uncertainty is with with in meetings or the private securities litigation reform act of nineteen ninety five such forward looking statements reflect the company's current expectations and beliefs they're not keys of future performance as such actual results may vary materially from expectations the risks and uncertainties associate with forward looking statements are described in today's news announcement and the company's fall into the securities and exchange commission for the company sports are born ten k and ten rex american resources assumes no obligation to publicly update or revise any forward looking statements i have joining the on the called today's to arose executive chairman of the board and zafar rizvi chief executive officer our first review our financial performance and then turned to call over to for his comments sales for the fourth quarter declined by five point six percent by by point six percent as we experienced lowers the volume for ethanol and the show was growing at them all sales for the quarter were based upon sixty three point seven million gallons issue persists sixty nine point nine million last year as we experienced some weather related disruption to their operations during the quarter we report a gross profit a fourteen point nine nine for this year's fourth quarter versus a gross profit a thirty eight point eight nine in the prior year and the current year quarter we experience to lower ethanol pricing as was hired porn a natural gas prices corn cost increased by twenty two percent and natural gas prices increased by twenty by twelve percent for this year's quarter compared to the prior year as an inflationary pressures and the impact of commodity prices from the ukraine russia conflict continued we continue to experience higher basis pricing for core new the new jim facility based upon a poor corn harvest and reduced corn availability and that local area as in a increase for the fourth quarter to six point seven million from six million in the prior year the increase is primarily due to an increase in the number that the my contract that required afraid free to be paid by as compared to the prior year which we classify as sg in a cost we had income of two point five million from our unconsolidated equity investment and issues fourth quarter vs income a three point nine nine and a prior year the company's interest in any other income and across your increased dramatically to two point six million versus thirteen thousand the previous year primarily reflect in increase yields and our cash they discontinued operations reflect the prior your numbers are further refine call business as we entered those operations on november eighteenth twenty twenty one there was no impact on the current year
spk_2: we reported a tax provision from continuing operations of two point two million for this your first of the provision of ten point seven nine in the prior year primarily reflecting the lower level of income in the current year
spk_3: these factors lead to net income attributed to rupture voters from continuing operations of a point two million for dish or fourth quarter forces twenty one point three million and a prior year a total net income per share attributable to rupture voters from can turn operations was forty seven cents for this your fourth quarter versus a dollar nineteen and the prior year
spk_4: again i point out all shared numbers reflect the three per one stock split which was effect of august fifth twenty twenty two
spk_3: stuart on ultra nicole over you thank you dad going forward ethanol currently running at roughly breakeven ah year to date so far as be in his sexual discuss of much further the cash is approximately two hundred and eighty million at the end to the core at the end of the year consolidated and we have you are uses of cash and cash over the next couple years include carbon capture which again so far as we will discuss i invest in the cash right now right now our best mckesson interest bearing in accounts mostly treasury's in an and money market accounts
spk_5: in the bank said we are dealing with indices to the best of our knowledge or very very secure we consider them top quality banks in we feel very comfortable better catches the best been very very good way we are any decent interest on their cash or vs many companies that have that we do not have much a partially no get sell sell that's a bit in our opinion skoda away and he to invest or cash at this time and we will buy back on depths we have some plants for expansion of our ethanol plants which supply routes we'll talk about new we're always looking for additional ethanol plants to purchase this time we have nothing eminent but if something were to come up very good at our plant will certainly look at it and now turn that the column for to support receive our chief executive officer thank you thank you still have the morning everyone as i mentioned in our previous quarterly god we continue to faith challenging operation operating and weidman throughout the year you to number of factors drought has affected the way the availability of born created a strong be a few as that ghastly mason
spk_19: earlier the and celebrate our location and that in a decent ethanol production hundred greater than the demand which continue to negatively affect the crash margin
spk_5: the high blood supply of the national guard during the last water and year also like to play factor the profit margin and positive news we have seen natural gas price dropped considerably recently and got into he are you at yesterday's the leaderboard forward as an upper back from dropped under one million battle of the done of known tweeted seventeen thousand barrels a day week to week what the corner bases of still have strong unexpected for the harvest we are pleased with the when a barely be be a plane and the get censored the illinois area help our because of good old and domestic exports and of the embassy that beginning to stringent we have seen weakness and the price of on all and but the at all they are the that day selling above the past despite drop the defense mode on an export the decline in the gosh margin in other economic headwinds we continue to forcefully that drew them the live bribe and don't create an image of majestic an issue or forty to blame at the at leave days of the fourth quarter two thousand and wanted to be we expect to break even on slightly profitable every time afterward just mess that may be different fathers of the our carbon sequestration project diva of the full point the universe be successfully do the best well to a total depth of about seventy one hundred feet in which almost two thousand feet on mount simon from storm was in good company completed geologically body goat milk models are predicting the movement of the field to inject jackson and to the sub surface but rock gold analyses perform and be good very good with about fluffy completed waterloo jack front desk at the world itself to do it expected movement of your to as well as expected all media that thing and because of very suitable story for god when you score station the the body and three be assessment testing was completed and and be gets very good story farewell the test and modeling what want to verify maximum and get from passion rather water quality block on and a few unexpected movement of your to bloom the if that indulge in seoul if location is very good target for god square version that design of the compression definitely have completed the cord blood to build a compressor part of the facility have been fined and long lead time equipment has been out of the pipeline how that might be the amended identification number has been received the glove six but i'm not a trivial get from well with a capacity to storm my
spk_6: the million tons of carbon have been completed and me
spk_5: the the work on the pipeline feet study is expected to be punished by the other people are you pro two thousand and twenty on may go to lead equipment order for the compressor facility which has been engineered and five the got back to build have to be have been fine we are currently working on a front and engineering design study for short boy blind to the be one from our godless cluster some facilities we expect the rebuild modular plant will be delivered by the end of december wanted wanted to the and done the building will be structured around the modular blonde we continued once again this is highly technical very early stage and time consuming project it has a glass had considerable time to make progress we cannot predict we will be successful but we are pleased what we started four years ago know how to keep some big barnstorm and as i also medicine in our previous god we're evaluating several other projects that would increase production ever century improving a year for since you to reduce carbon intensity as well as reduce water consumption around the long we believe we will be able to conclude most of the project seen and please none of these projects with need to a greater benefit and the inflation reduction act off by the canvas and will contribute to the grieve cost of production as store just mention we also decided to breathe that them out of that from the best deal at one not that magic get from for the illinois
spk_19: four hundred and seventy four five million gallons from and and fifty million that the been few fuel production thread of section forty five the weekend related to reduce fuel god when and does to school for would provide as much as a dollar a gallon depending on carbon intensity of cut the know abused and
spk_5: for the section forty five cash payment for the garbage question him please to eighty five dollar better than which we plan to switch off the ducks explosion expression of the forty five the which was it can be made when the have a strong position of our company
spk_3: and somebody we are pleased to announce once again profitable quarter in very very difficult environment as well as a good progress in our god one square fisher project black and grieve ethanol production capacity to maximize benefit of inflation reduction at section forty five the and forty five you want forty five the expires if we can achieve what we are planning to accomplish in the future we will be ready to provide no god been at them out and buy for products why i do think goblin in the atmosphere we cannot be a godless clusters like storms embark on project to degree of carbon intensity plan to and open up or bucks on m achieve that consecutive quarter of positive income without the hard work and dedication of our police we are very appreciative of
spk_8: yeah of effort to achieve these positive results
spk_0: i would get the floor bad to stored for public for garments anchors do it for example conclusion we will perform most to the industry competitors again are we we've done this again we we believe we have the best plants great locations and great potential and carbon capture which we think will be our future and most importantly and the biggest difference between us and the to the industry's the fire mention that people with the a we have the best people in the industry and then yeah that's what separates us from the competition
spk_9: and a lot of competition can they have hopes and dreams of if you don't have good people they implement implemented they just camping never happen we have proven in the past the that we have good people i can run and gun and can run burberry good ethanol plants and we plan and hope to do that in carbon capture we were competitive future amd i'll now leave the the call open to questions thank you if you would like to registry question please post a one for on your telephone you will you are we don't prompted your request a few question has been answered and you will like to withdraw your registration please press the one fall by the three once again to register a question please post a one for on your telephone one moment please for the first question
spk_5: our first question comes from a jordan levy with twas securities please proceed
spk_10: martha stewart suffered dogs
spk_5: and nice quarter against another challenging backdrop think that's worth recognizing for sure maybe to start out ah he mentioned he planned for expanding one earth's capacity i certainly seems like she's us is moving forward i had some of the initiative is this your maybe if you could just give us any cometary my head around capital plans for twenty three movies
spk_9: you'd expect there at the fact i'm gonna we we're guy that said with plan to expand two hundred and seventy five million we are in process of evaluating all the cost and and have done on investment we have to have all have to disclose that disclose at that jonah
spk_5: our to leave god or that at the shareholders meeting that what exactly total gosh with big to or the at an altitude the expansion and the and square station and that we will have both number that that time pitt and presumably with the you with the expansion be throughout the course of this year
spk_9: yes exactly i think we have already had a may get a evaluation has done we're putting the financial models and we are looking all of those information to see what done on investment as i mention that a with the expansion from hundred and fifty two if we go to hundred and seventy five million and that's about twenty five million dollar mode ethanol production and we look at the benefit of forty five the or if we able to achieve our those carbon intensity which we are working on carbon sequestration and not as i was one said mention that pop couple of years even before double forty five the we were trying to be make sure that we do so i'm confident that speak we all have to buy duct our are really coming out to be great benefit for us to moving forward
spk_5: so it looks like we had died or were do it odd that return on investment and putting the back together and hopefully we will have like that that's what it leads to seen and two hundred and seventy five million we could have considered to expand two hundred million but we want to make for we do not create deficit of go born in that area thanks to that and
spk_3: the i appreciate all the comments and update you gave on carbon capture or maybe just it back up and look at this on a high level can you can you just lay out for us i know you mention the soups and target for the end of the year moving into twenty four can continue to sort of lay out for us where you expect to be exiting twenty three what are you what you what will be completed and what what you expect the kind of the working on as at the time i think the most of our item as as as i mentioned that we have odd of all that long lead items are good goodman some of the weapon takes as long as time leading it to the at an have a and for we have the honor although the equipment and fled as a man on that we would expect to have our marginal unit which will be compression facility will be delivered by the end of this year and then we will have and faction will start around that modular unit we got that will take off for at least six to seven months or longer regarded
spk_5: not apply by a sudden need to be connected electric building need to be built around it so that and are sold our goal is to have these at at to finish august project by the and up to four thousand and twenty four said suddenly that's our goal and it gonna been some other on certain things which we do not ah you know come come out and believe that project but that's what our goalies like by the end of your home
spk_7: jordan one other thing you should know and that people are a lot of people are announcing see a to projects in the ethanol industry
spk_9: but all they're really doing is tapping into pipelines and they're not getting the bulk of the economic benefits economic benefits are up to thirty years twenty six twenty seven and one eight a dollar a gallon we hope that we expect to hear about hundred and seventy five million gallons plants so even if we get half
spk_12: for that whatever whatever we receive we will receive at all whereas most of these companies tapping into pipelines are dependent on the pipeline's been belt are announcing that they're doing see to capture but they're really not doing the rounds you get to capture we're doing our own we've been doing this is a permission for four years and live
spk_0: is our project this is our shareholders project it's not that the movie have to share the bulk of the revenues with the pipeline company the pipeline company of course then he has you captives they have the ability and they will take the ball then they will take a good percentage of the prospects in our case or profits come to our shareholders him
spk_13: a game were small company eighty million shares in bed with think it can be very very significant that's our plans and and that's what we hope and expect
spk_14: exactly yes that not the major difference between us and other so
spk_13: and and outside thing either stop or what mansion we were really time to look at it for years ago when there was no forty five the at that time forty five gil what fifty dollar knowledge eighty five dollar so i'll give benefits are really for coming
spk_5: to fish amp or are damned if they will approach to our shareholders a apart say exactly yeah i think to i think that's commentary really appreciated i'll leave it at that thanks thanks jordan
spk_15: our next question comes from my chris sekai with singular research please proceed
spk_14: hi good morning
spk_16: any about where you need
spk_5: the country's of largest export between twenty to me
spk_20: sex with of five export of ethanol you mean
spk_15: yes
spk_14: okay the canada has exported ah he boarded five hundred and two million gallons and acting and south korea hundred and fifty six know the land ninety nine total export father flat two thousand and one he was one point three billion gallons comfy
spk_5: airport him two thousand and twenty one one one point two billion gallons and that with nine nine percent higher than two thousand and twenty one
spk_14: okay thanks
spk_5: are you seeing an increase past in your in and will get you to all the recent train derailments not really i think there is a veil road all within greed their lives they basically with with a the have a monopoly on that drag on don't have that accent so they really are always agree there they it's but recently we have not seen it due to the situation with to be named in korean
spk_16: even of it
spk_0: okay thanks
spk_3: can you talk about the permitting process so far for the yes
spk_17: i'm sorry could you to be of your car companies
spk_3: how's the permitting processing process going the permitting process we have we have major department which all that are glad my to be grafted we completed all the document since that time they have couple of questions which we onset them and we big than for and that they have received all the documents and it is under review so some there we cannot control it depends on the government agency how long they were gonna take but we expect that we sort of feed the but much sooner than anybody else because we already have done repeatedly our tasked van and know the was area and we glide path that that one or more previously and we received at that time so we hope that within a few a sauna and we now have asked is really depend on the agency okay great thanks for your answers thank you
spk_16: or next question comes from a green price with raymond james please proceed
spk_18: i think thanks for taking the question on first that was just wondering but your thoughts around the him in a landscape and the relates to producing assets you know how valuations are looking for a year or two ago
spk_17: we haven't seen anything that i that's anything up for sale to be honest that yeah so i can tell you how valuations are but i would assume they be up significant people wouldn't want significantly more for their plants and they get a year or two ago but no by the reason everyone has edit it it's
spk_5: i'm type of carbon cap and the republic company least have some type of carbon capture plans on intimate think their companies are worth more are contention is that the pipeline company said they're dealing with what will end up either personal we going to be delayed second far we think that be i will not country tribute to the bottom line with some of these companies think but in the meantime they are value in their companies more than they get a year or two ago for sure because of the opportunity because it is legislation that just passed that read that somewhere mention
spk_10: now can get up to a dollar a gallon friends from forty five say maybe five dollars a time for forty five que that's a lot of money
spk_18: can be distributed to different people are case we helped him to keep the bulk of it
spk_21: okay gonna understand and then of for my followed had a a more macro policy question as service
spk_0: the a recently proposed allowing year round eat the team blending in the midwest
spk_3: this wondering you do you think this this will happen
spk_0: in the that plan go far enough in your opinion
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