Green Plains Partners LP (GPP): history, ownership, mission, how it works & makes money

A Brief History of Green Plains Partners LP (GPP)

Formation and Structure

Green Plains Partners LP was formed in 2015 as a publicly traded partnership. The company was established to own, operate, and acquire logistics and storage assets that support the biofuel industry, particularly focusing on ethanol. GPP is primarily associated with Green Plains Inc., a leading ethanol producer in North America.

Initial Public Offering (IPO)

The company went public on August 19, 2015, with an IPO price of $20 per unit. At the time of the IPO, GPP raised approximately $100 million, providing crucial capital for the development and expansion of its operations.

Financial Performance Overview

As of the end of 2022, Green Plains Partners reported total revenue of $70.0 million. The company's net income for the same fiscal year was approximately $20.0 million, reflecting a significant increase in profitability due to enhanced operational efficiencies.

Asset Acquisition and Growth

Since its formation, GPP has expanded its asset base significantly. By the end of 2022, the company operated a total of:

Dividends and Distributions

Green Plains Partners has maintained a solid dividend policy since its IPO. The quarterly distribution was set at:

Partnership with Green Plains Inc.

Green Plains Partners has a strategic partnership with Green Plains Inc., facilitating the supply of ethanol and supporting the logistics of biofuel. In 2023, GPP signed a long-term service agreement with Green Plains Inc. to continue enhancing operational efficiencies and expanding its market reach.

Market Capitalization and Stock Performance

As of October 2023, Green Plains Partners LP had a market capitalization of approximately $500 million. The stock price fluctuated between $15 and $20 during 2023, reflecting the market's response to operational changes and industry trends.

Recent Developments

In 2023, GPP announced plans to invest in new technologies aimed at enhancing the storage and transportation of renewable fuels. The estimated investment for this initiative was projected at $10 million.

A Who Owns Green Plains Partners LP (GPP)

Overview of Ownership Structure

Green Plains Partners LP (GPP) operates as a publicly traded master limited partnership (MLP). The ownership structure consists primarily of common units held by institutional and individual investors.

Major Stakeholders

• Green Plains Inc. - owns approximately 29.4% of GPP’s common units as of Q3 2023.
• BlackRock, Inc. - holds about 8.1% of the common shares.
• The Vanguard Group, Inc. - holds around 7.6% of GPP.
• Other institutional investors collectively own approximately 38.5% of outstanding shares.

Market Capitalization

As of October 2023, GPP's market capitalization is approximately $500 million, supporting its rank as a mid-cap entity in the energy sector.

Recent Financial Performance

For Q2 2023, Green Plains Partners reported a gross profit of $18.9 million, a significant increase compared to $14.8 million in the same quarter of the previous year.

The revenue for Q2 2023 stood at $48 million, reflecting a year-over-year growth of 20%. The net income attributable to common units for Q2 2023 was reported at $10.1 million.

Distribution Policy

Green Plains Partners maintains a consistent distribution policy. The most recent distribution was $0.35 per unit, yielding an annualized distribution of approximately 8.4% based on the unit price of $16.67 as of October 2023.

Ownership Changes

In 2023, Green Plains Partners saw an increase in institutional ownership, reflecting a growth in interest from larger investment firms amid the diversification of its operations.

Conclusion on Ownership Dynamics

The ownership dynamics of Green Plains Partners LP underscore a blend of corporate, institutional, and retail investors, shaping the partnership's strategic directions and financial strategies.

Green Plains Partners LP (GPP) Mission Statement

Core Mission

The mission of Green Plains Partners LP (GPP) is to provide exceptional logistics and storage services for ethanol and other renewable fuels while promoting sustainability in energy. GPP focuses on enhancing shareholder value through strategic growth and operational efficiency.

Vision Statement

GPP envisions a world where renewable energy is at the forefront of global energy solutions, with a commitment to reducing carbon emissions, thereby contributing to a sustainable future.

Operational Goals

• Maximize Efficiency: Achieving operational excellence through innovative technology and practices.
• Enhance Partnerships: Building strong relationships with producers of renewable fuels.
• Financial Growth: Delivering consistent financial performance and returns to shareholders.

Recent Financial Performance

As of the latest financial reports for Q2 2023, GPP reported the following key figures:

Commitment to Sustainability

GPP is dedicated to reducing its environmental footprint by:

• Utilizing Cleaner Fuels: Supporting the transition to renewable fuels.
• Reducing Emissions: Implementing practices that lower greenhouse gas emissions.
• Promoting Renewable Energy: Engaging in alternative energy projects and partnerships.

Strategic Initiatives

To fulfill its mission, GPP has outlined several strategic initiatives:

• Expansion of Infrastructure: Investing in logistics and transportation systems to enhance service delivery.
• Technology Innovation: Adopting cutting-edge technologies for improved operational efficiency.
• Market Diversification: Expanding the product offerings to include a wider range of renewable energy solutions.

Market Position

As of mid-2023, GPP holds a significant market share in the renewable fuel logistics sector, ranking among the top providers in the industry with a competitive edge due to its strategic location and established relationships with ethanol producers.

Stakeholder Engagement

GPP actively engages with various stakeholders including:

• Investors
• Regulatory Bodies
• Community Organizations

Recent Developments

In 2023, GPP announced a significant partnership aimed at enhancing its logistics capabilities, with an estimated investment of $25 million aimed at expanding its network.

Future Outlook

Looking ahead, GPP aims to continue its growth trajectory, with projected revenues for 2024 expected to reach approximately $190 million, marking a 10% increase from the previous year.

How Green Plains Partners LP (GPP) Works

Business Overview

Green Plains Partners LP (GPP) operates as a master limited partnership (MLP) that provides logistics and transportation services for the ethanol industry. The company primarily focuses on the transportation and storage of ethanol and related products, facilitating the supply chain for its customers.

Financial Performance

As of Q3 2023, Green Plains Partners reported the following financial metrics:

Segments of Operation

• Transport Services
• Storage Facilities
• Logistics Management

Strategic Partnerships

The company maintains strategic relationships with major players in the ethanol production industry, enhancing its operational capabilities.

Operational Capacity

Green Plains Partners operates several storage terminals with a total capacity of approximately 11 million gallons of ethanol.

Market Position

As of the end of Q3 2023, GPP holds approximately 15% of the U.S. ethanol logistics market share.

Dividend Policy

The partnership has a strong commitment to distribute cash flows to its unitholders, maintaining a distribution coverage ratio of 1.5x as of September 2023.

Recent Developments

In 2023, GPP announced an expansion initiative to increase their logistics capabilities, projected to enhance capacity by 20% by the end of 2024.

Investor Information

As of October 2023, GPP stock was trading at approximately $14.50 per unit, with a market capitalization of $400 million.

How Green Plains Partners LP (GPP) Makes Money

Revenue Streams

Green Plains Partners LP primarily generates revenue through its logistics services and storage facilities.

Logistics and Transportation Services

The company provides a wide range of logistics services that include the transportation of ethanol and related products. In 2022, the revenue from logistics services was approximately $40 million.

Storage Facilities

Green Plains Partners owns several storage facilities that are crucial for the ethanol supply chain. The average annual revenue from these facilities in 2022 was around $30 million. The facilities have a combined capacity of 9.5 million gallons.

Partnerships and Contracts

GPP has established long-term contracts with various ethanol producers. As of 2022, the company had contracts in place that accounted for approximately 90% of its revenue.

Market Position and Competitive Advantage

GPP's strong market position is supported by its strategic locations and capacity for large-scale operations. In 2023, the company's logistical capabilities and storage capacity provided a competitive edge, enabling it to sustain an average EBIT margin of 40%.

Financial Performance Overview

As of Q3 2023, GPP reported a net income of $15 million against total revenues of $55 million, reflecting consistent growth in its core operations.

Future Growth Prospects

The outlook for GPP remains positive due to increasing demand for ethanol and renewable energy sources. Analysts project a revenue growth rate of 10% annually over the next five years.

Conclusion

The financial health of Green Plains Partners LP is supported by strong operational performance, consistent revenue growth, and strategic partnerships within the ethanol industry.