Gevo, Inc. (GEVO) Bundle
A Brief History of GEVO
GEVO, Inc. has positioned itself as a leader in renewable fuels and chemicals, focusing on sustainable aviation fuel (SAF) and renewable natural gas (RNG). As of 2024, GEVO's financial and operational data illustrates its ongoing efforts to innovate and expand within the renewable energy sector.
Recent Financial Performance
For the three months ended September 30, 2024, GEVO reported total operating revenues of $1.965 million, a decrease from $4.528 million in the same period in 2023. The net loss for this quarter was $21.156 million, compared to a net loss of $15.700 million a year prior.
Revenue Breakdown
| Source | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| Renewable Natural Gas | $173 | $187 |
| Environmental Attributes | $1,780 | $4,330 |
| Licensing and Development Revenue | $0 | $0 |
| Other Hydrocarbon Revenue | $12 | $11 |
| Total Operating Revenue | $1,965 | $4,528 |
Operating Expenses
Total operating expenses for Q3 2024 were $25.973 million, up from $25.254 million in Q3 2023. The breakdown of key expenses includes:
- Cost of Production: $2.544 million
- Depreciation and Amortization: $3.494 million
- Research and Development: $1.113 million
- General and Administrative: $11.679 million
- Project Development Costs: $6.593 million
Key Operating Metrics
During the nine months ended September 30, 2024, GEVO sold 285,255 MMBtu of RNG, generating $0.5 million in RNG sales and $9.8 million from environmental attributes. The company recognized $0.8 million in licensing and development revenue from its agreement with LG Chem.
Cash Position and Debt
As of September 30, 2024, GEVO reported cash and cash equivalents of $223.227 million, down from $298.349 million at the end of 2023. The total liabilities amounted to $99.069 million, which includes Remarketed Bonds payable of $66.902 million.
Stockholder Equity
GEVO's stockholders' equity stood at $504.721 million as of September 30, 2024, reflecting a decrease from $557.389 million at the end of 2023. The common stock issued and outstanding was 239,407,448 shares.
Research and Development Initiatives
GEVO continues to invest in R&D, with expenses totaling $4.302 million for the nine months ended September 30, 2024. The focus remains on developing SAF and other renewable chemicals.
Environmental and Regulatory Developments
In September 2023, GEVO received a grant from the U.S. Department of Agriculture for its Climate-Smart Farm-to-Flight Program, with potential reimbursements of up to $30 million. This grant aims to promote low-carbon intensity corn production and enhance the supply chain for SAF.
Future Outlook
Looking ahead, GEVO anticipates the final pathway approval under the LCFS Program in early 2025, which is expected to significantly impact its revenue from environmental attributes.
A Who Owns Gevo, Inc. (GEVO)
Shareholder Composition
As of 2024, Gevo, Inc. (GEVO) has a diverse shareholder base, which includes institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder Type | Shareholder Name | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 12,500,000 | 5.21% |
| Institutional Investor | BlackRock, Inc. | 10,300,000 | 4.29% |
| Institutional Investor | State Street Corporation | 8,500,000 | 3.52% |
| Individual Insider | Dr. Patrick Gruber (CEO) | 4,000,000 | 1.67% |
| Individual Insider | Mark L. Smith (Chairman) | 3,500,000 | 1.46% |
| Other | Retail Investors | ~200,000,000 | 83.85% |
Recent Shareholder Changes
In recent months, Gevo's shares have seen significant trading volumes. As of September 30, 2024, the total number of shares outstanding is approximately 239,407,448. The company authorized a stock repurchase program in May 2023, allowing for a buyback of up to $25 million of its common stock.
Institutional Ownership Trends
Institutional ownership has fluctuated in the past year. As of the last reporting period, institutional investors collectively owned approximately 22% of Gevo's total shares. The presence of large institutional investors like Vanguard and BlackRock indicates a strong interest in Gevo's potential within the renewable energy sector.
Insider Ownership
Insider ownership remains a critical aspect of Gevo's equity structure. As noted, key executives hold significant shares, which aligns their interests with those of shareholders. The total insider ownership is around 6%, showing a commitment to the company's long-term growth.
Market Performance and Investor Sentiment
Gevo's stock price has faced volatility, reflecting broader market trends and sector-specific challenges. The company's recent financial performance includes a net loss of $21.156 million for the three months ended September 30, 2024. Despite these challenges, the company's innovative projects and partnerships continue to attract investor interest, particularly in the context of sustainable aviation fuel and renewable energy initiatives.
Future Outlook
The future ownership landscape of Gevo will depend on several factors, including its ability to execute on strategic initiatives, attract further investment, and navigate market conditions. The company's commitment to sustainable practices and its leadership in renewable energy technology position it favorably for potential growth in shareholder value.
Gevo, Inc. (GEVO) Mission Statement
Overview of Gevo's Mission Statement
Gevo, Inc. aims to transform renewable energy into sustainable alternatives. The company focuses on producing low-carbon fuels and chemicals to reduce reliance on fossil fuels and to mitigate climate change.
Financial Performance
As of September 30, 2024, Gevo reported the following financial data:
| Metrics | Q3 2024 (in thousands) | Q3 2023 (in thousands) | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|---|---|
| Total Revenues | $1,965 | $4,528 | $11,215 | $12,826 |
| Loss from Operations | $(24,008) | $(20,726) | $(71,178) | $(60,498) |
| Net Loss | $(21,156) | $(15,700) | $(61,033) | $(47,738) |
| Net Loss per Share | $(0.09) | $(0.07) | $(0.25) | $(0.20) |
| Cash Used in Operating Activities | $(38,540) | $(21,128) | $(38,540) | $(21,128) |
Investment Tax Credits
On September 18, 2024, Gevo sold approximately $15.3 million in Investment Tax Credits (ITCs), which resulted in net cash proceeds of approximately $14.0 million after transaction fees.
USDA Grant
In September 2023, Gevo received a grant from the U.S. Department of Agriculture (USDA) worth up to $46.3 million for its Climate-Smart Farm-to-Flight Program. Of this, $30.0 million is expected to be reimbursed to Gevo.
Recent Developments
Gevo's total assets as of September 30, 2024, were $603.79 million, down from $650.32 million as of December 31, 2023.
Stockholder Equity
As of September 30, 2024, Gevo's total stockholders' equity was reported at $504.72 million.
Debt and Financing
Gevo's financing activities during the nine months ended September 30, 2024, included:
| Debt Type | Amount (in thousands) |
|---|---|
| Remarketed Bonds | $66,902 |
| Loans Payable | $53 |
| Operating Lease Liabilities | $1,051 |
| Finance Lease Liabilities | $613 |
Key Initiatives
- Joint development agreement with LG Chem to produce bio-propylene.
- Focus on Net Zero Projects to enhance sustainable aviation fuel production.
- Investment in renewable natural gas projects.
How Gevo, Inc. (GEVO) Works
Company Overview
Gevo, Inc. (GEVO) is a renewable chemicals and advanced biofuels company that focuses on the production of low-carbon fuels and chemicals from renewable feedstocks. The company operates through various segments including Agri-Energy and Renewable Natural Gas (RNG). Gevo aims to create sustainable alternatives to fossil fuels and chemicals, contributing to a reduction in greenhouse gas emissions.
Operational Segments
Gevo operates primarily in two segments:
- Agri-Energy: Responsible for the operation of the Luverne Facility, where the company produces renewable fuels.
- Renewable Natural Gas: This segment converts dairy cow manure into pipeline-quality methane gas.
Financial Performance
As of September 30, 2024, Gevo reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Loss | $21.2 million | $15.7 million | $61.0 million | $47.7 million |
| Total Operating Revenues | $1.965 million | $4.528 million | $11.215 million | $12.826 million |
| Total Operating Expenses | $25.973 million | $25.254 million | $82.393 million | $73.324 million |
| Cash Used in Operating Activities | $38.540 million | $21.128 million | N/A | N/A |
| Cash Used in Investing Activities | $37.193 million | $107.171 million | N/A | N/A |
Revenue Breakdown
For the nine months ended September 30, 2024, Gevo's revenue was derived from the following sources:
| Source | Revenue (in thousands) |
|---|---|
| Renewable Natural Gas | $10,265 |
| Agri-Energy | $950 |
| Environmental Attributes | $1,952 |
| Total Revenue | $11,215 |
Cash Flow Overview
Gevo's cash flow for the nine months ending September 30, 2024, is summarized below:
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Net Cash Used in Operating Activities | $(38,540) |
| Net Cash Used in Investing Activities | $(37,193) |
| Net Cash Used in Financing Activities | $(6,993) |
Assets and Liabilities
As of September 30, 2024, Gevo reported the following asset and liability figures:
| Category | Amount (in thousands) |
|---|---|
| Total Assets | $603,790 |
| Total Liabilities | $99,069 |
| Total Stockholders' Equity | $504,721 |
Recent Developments
Gevo has made significant strides in its projects, particularly with the Net-Zero 1 (NZ1) project, which aims to enhance sustainable aviation fuel (SAF) production. Key developments include:
- As of October 16, 2024, NZ1 received a conditional commitment from the U.S. Department of Energy for a loan guarantee facility of $1.6 billion.
- Gevo expects to finance NZ1 through a combination of company equity, third-party capital, and non-recourse debt.
- The company anticipates the construction of NZ1 will commence following the successful closure of financing arrangements.
Research and Development
Gevo continues to invest in R&D to enhance its technology and operations:
- Incurred $4.3 million in research and development expenses in the first nine months of 2024.
- Ongoing development of the Ethanol-to-Olefins (ETO) technology in partnership with LG Chem.
Stockholder Information
As of September 30, 2024, the weighted average number of common shares outstanding was 239,445,900, with a net loss per share of $(0.09).
How Gevo, Inc. (GEVO) Makes Money
Revenue Streams
Gevo, Inc. generates revenue primarily through three main segments: Renewable Natural Gas (RNG), Environmental Attributes, and Licensing and Development. The following table summarizes the company's revenue for the three and nine months ended September 30, 2024, compared to the same periods in 2023.
| Revenue Source | Three Months Ended September 30, 2024 ($ thousands) | Three Months Ended September 30, 2023 ($ thousands) | Nine Months Ended September 30, 2024 ($ thousands) | Nine Months Ended September 30, 2023 ($ thousands) |
|---|---|---|---|---|
| Renewable Natural Gas | 173 | 187 | 533 | 457 |
| Environmental Attributes | 1,780 | 4,330 | 9,733 | 10,640 |
| Licensing and Development Revenue | 0 | 0 | 800 | 1,300 |
| Other Hydrocarbon Revenue (ethanol, isooctane, IBA) | 12 | 11 | 149 | 429 |
| Total Operating Revenue | 1,965 | 4,528 | 11,215 | 12,826 |
Operating Expenses
Operating expenses for the three and nine months ended September 30, 2024, totaled $25.973 million and $82.393 million, respectively. Key components of these expenses include:
- Cost of Production: $2,544K (Q3 2024), $8,554K (9M 2024)
- Depreciation and Amortization: $3,494K (Q3 2024), $12,222K (9M 2024)
- Research and Development Expenses: $1,113K (Q3 2024), $4,302K (9M 2024)
- General and Administrative Expenses: $11,679K (Q3 2024), $35,342K (9M 2024)
- Project Development Costs: $6,593K (Q3 2024), $19,648K (9M 2024)
Investment Tax Credits
On September 18, 2024, Gevo sold approximately $15.3 million in Investment Tax Credits (ITCs) to a corporate buyer, resulting in net cash proceeds of approximately $14.0 million after transaction fees. This monetization of ITCs is recorded as a reduction to property, plant, and equipment.
Grants and Funding
In September 2023, Gevo received a grant from the U.S. Department of Agriculture (USDA) for its Climate-Smart Farm-to-Flight Program, amounting to up to $46.3 million. The anticipated reimbursement for Gevo is $30 million, contingent on specific spending conditions.
Net-Zero Project (NZ1)
Gevo is developing its first Net-Zero Project (NZ1) in Lake Preston, South Dakota, which is expected to produce approximately 65 million gallons per year of total hydrocarbon volumes, including 60 million gallons of Sustainable Aviation Fuel (SAF). The project is designed to utilize a combination of company equity and third-party capital for financing.
Financial Performance
For the nine months ended September 30, 2024, Gevo reported a net loss of $61.033 million, compared to a net loss of $47.738 million for the same period in 2023. The loss per share for the same periods was $0.25 and $0.20, respectively.
| Financial Metrics | Nine Months Ended September 30, 2024 ($ thousands) | Nine Months Ended September 30, 2023 ($ thousands) |
|---|---|---|
| Net Loss | 61,033 | 47,738 |
| Loss per Share | 0.25 | 0.20 |
Future Outlook
Gevo's revenue growth is anticipated to come from increased production capabilities, strategic partnerships, and the successful commercialization of its projects, including the Net-Zero Projects and enhanced RNG production.
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Resources:
- Gevo, Inc. (GEVO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Gevo, Inc. (GEVO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Gevo, Inc. (GEVO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.