Green Plains Inc. (GPRE) Bundle
A Brief History of Green Plains Inc.
Company Overview
Green Plains Inc., a leader in the renewable fuels industry, specializes in the production of ethanol and other biofuels. Established in 2004, the company has expanded its operations across multiple segments, including ethanol production, agribusiness, and energy services.
Financial Performance
As of September 30, 2024, Green Plains reported a consolidated revenue of $1.87 billion, a decrease of 27.4% compared to $2.58 billion for the same period in 2023. The company's net loss for the nine months ended September 30, 2024, was $27.56 million, representing an improvement from a net loss of $100.62 million for the same period in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Consolidated Revenue | $658.74 million | $892.77 million | $1.87 billion | $2.58 billion |
| Net Loss | $(48.20 million) | $(22.31 million) | $(27.56 million) | $(100.62 million) |
| Basic EPS | $0.75 | $0.38 | $(0.43) | $(1.71) |
| Diluted EPS | $0.69 | $0.35 | $(0.43) | $(1.71) |
Ethanol Production Segment
For the nine months ended September 30, 2024, Green Plains produced 636.69 million gallons of ethanol, an increase of 1.9% from 625.10 million gallons in the same period in 2023. Revenues from the ethanol production segment decreased to $1.60 billion, down 27.5% from $2.20 billion in 2023, primarily due to lower selling prices.
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Ethanol Production (gallons) | 636.69 million | 625.10 million |
| Revenues | $1.60 billion | $2.20 billion |
Agribusiness and Energy Services
The agribusiness and energy services segment reported revenues of $301.81 million for the nine months ended September 30, 2024, a decline of 25.2% from $403.29 million in 2023. This segment's performance was impacted by reduced trading prices for ethanol and natural gas.
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Revenues | $301.81 million | $403.29 million |
Cost Structure and Margins
Cost of goods sold for the ethanol production segment was $1.50 billion for the nine months ended September 30, 2024, a decrease of 29.9% from $2.14 billion in 2023. The gross margin improved to $94.06 million, a 57.8% increase compared to $59.62 million in the previous year.
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Cost of Goods Sold | $1.50 billion | $2.14 billion |
| Gross Margin | $94.06 million | $59.62 million |
Debt and Liquidity
As of September 30, 2024, Green Plains had total long-term debt of $431.19 million, down from $491.92 million at the end of 2023. The company maintained a cash balance of $227.5 million, with $228.5 million available under its committed revolving credit agreement.
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Long-term Debt | $431.19 million | $491.92 million |
| Cash and Cash Equivalents | $227.5 million | N/A |
Conclusion
Green Plains Inc. continues to navigate the challenges of the renewable fuels market, focusing on operational efficiency and strategic growth despite fluctuating market conditions.
A Who Owns Green Plains Inc. (GPRE)
Ownership Structure
As of January 9, 2024, Green Plains Inc. completed a merger with Green Plains Partners, acquiring all publicly held common units not already owned by the company. Prior to the merger, unitholders owned a 49.2% limited partner interest, while Green Plains owned a 48.8% limited partner interest and a 2.0% general partner interest.
Major Shareholders
The following table summarizes the major shareholders of Green Plains Inc. as of 2024:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| Green Plains Inc. | 100% | Publicly Traded Company |
| Institutional Investors | Approximately 70% | Institutional Ownership |
| Insider Ownership | Approximately 5% | Insider Ownership |
| Public Shareholders | Approximately 25% | Public Ownership |
Institutional Ownership
As of September 30, 2024, Green Plains Inc. had significant institutional ownership with various investment firms holding substantial shares:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| The Vanguard Group | 4,532,000 | 8.5% |
| BlackRock, Inc. | 4,250,000 | 8.0% |
| State Street Corporation | 3,200,000 | 6.0% |
| Wellington Management | 2,800,000 | 5.3% |
| Other Institutional Investors | 15,000,000 | 32.2% |
Insider Ownership
Insider ownership, which includes executives and board members, as of 2024 is summarized below:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| William Brown | CEO | 500,000 | 0.9% |
| Lisa K. Gochman | CFO | 200,000 | 0.4% |
| Mark A. Sweeney | Director | 150,000 | 0.3% |
| Other Insiders | - | 1,000,000 | 2.4% |
Recent Transactions
On September 30, 2024, Green Plains completed the sale of the Birmingham Terminal and related assets for $47.5 million, which was used to repay outstanding debts.
Market Capitalization
As of October 2024, Green Plains Inc. has a market capitalization of approximately $1.29 billion based on a stock price of around $20.00 per share.
Stock Performance
In the third quarter of 2024, Green Plains reported an increase in net income to $48.6 million, compared to $22.3 million in the same period the previous year.
Conclusion on Ownership Dynamics
The ownership dynamics of Green Plains Inc. reflect a strong institutional presence, alongside a modest level of insider ownership. The recent merger has consolidated control, positioning the company for strategic growth in the biofuel and agricultural sectors.
Green Plains Inc. (GPRE) Mission Statement
Mission Statement Overview
The mission of Green Plains Inc. (GPRE) emphasizes sustainability and innovation in the production of renewable fuels and high-value co-products. The company aims to lead in the transformation of agricultural resources into renewable energy and sustainable products, thereby reducing environmental impact and enhancing energy security.
Core Values
- Sustainability: Committed to sustainable practices in all operations.
- Innovation: Focus on technological advancements in biofuel production.
- Integrity: Operate with transparency and accountability.
- Community Engagement: Invest in local communities and promote economic development.
Financial Performance Indicators
Green Plains Inc. has demonstrated significant financial metrics as of September 30, 2024, reflecting its operational efficiency and market positioning. The following table summarizes key financial data:
| Financial Metric | Value (2024) | Value (2023) | % Change |
|---|---|---|---|
| Total Revenues | $2,202,182,000 | $2,583,351,000 | -14.7% |
| Net Income | $48,200,000 | $22,311,000 | 116.5% |
| Adjusted EBITDA | $36,500,000 | $10,400,000 | 250.0% |
| Debt | $431,189,000 | $491,918,000 | -12.3% |
| Cash and Cash Equivalents | $227,500,000 | N/A | N/A |
Operational Highlights
For the nine months ended September 30, 2024, Green Plains produced:
- Ethanol: 636,686 thousand gallons
- Distillers Grains: 1,421 thousand equivalent dried tons
- Ultra-High Protein: 194 thousand tons
- Renewable Corn Oil: 217,425 thousand pounds
Market Position and Strategy
Green Plains Inc. operates within the renewable energy sector, focusing on the production of ethanol and related products. The company’s strategic initiatives include:
- Expansion of production capacity through technological enhancements.
- Investment in carbon capture and sequestration projects, with estimated expenditures of $110 million through 2025.
- Strengthening supply chain partnerships to optimize grain sourcing and distribution.
Recent Developments
In January 2024, Green Plains completed the acquisition of the publicly held common units of Green Plains Partners, enhancing its operational capabilities and market reach. The transaction was valued at approximately $143.1 million, consisting of $29.2 million in cash and $113.9 million in common stock.
Future Outlook
Green Plains Inc. aims to continue its leadership in sustainable energy solutions by leveraging its innovative technologies and expanding its product offerings. The company is positioned to adapt to market dynamics and regulatory changes, ensuring long-term growth and profitability in the renewable fuels sector.
How Green Plains Inc. (GPRE) Works
Overview of Operations
Green Plains Inc. operates primarily in two segments: Ethanol Production and Agribusiness & Energy Services. The company produces ethanol, distillers grains, renewable corn oil, and Ultra-High Protein, while also engaging in grain handling, storage, and commodity trading.
Ethanol Production Segment
For the nine months ended September 30, 2024, the key operational data for the ethanol production segment is as follows:
| Item | 2024 (thousands) | 2023 (thousands) | % Change |
|---|---|---|---|
| Ethanol Production | 636,686 | 625,102 | 1.9% |
| Distillers Grains | 1,421 | 1,454 | (2.3%) |
| Ultra-High Protein | 194 | 157 | 23.6% |
| Renewable Corn Oil | 217,425 | 206,927 | 5.1% |
| Corn Consumed | 218,233 | 215,115 | 1.4% |
Revenues in the ethanol production segment decreased by $606.4 million for the nine months ended September 30, 2024, primarily due to lower weighted average selling prices on ethanol, distillers grains, and renewable corn oil, partially offset by higher ethanol and renewable corn oil volumes sold.
Financial Performance
The consolidated revenues for Green Plains Inc. decreased by $708.6 million for the nine months ended September 30, 2024. The net loss decreased to $26.5 million, compared to a loss of $88.3 million in the prior year. Adjusted EBITDA increased by $36.5 million primarily due to higher margins in the ethanol production segment.
| Financial Metrics | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Consolidated Revenues | $658,735,000 | $892,770,000 | (26.2%) |
| Net Income (Loss) | $48,637,000 | $26,292,000 | 84.9% |
| EPS - Diluted | $0.69 | $0.35 | 97.1% |
| Interest Expense | $10,089,000 | $9,550,000 | 5.6% |
Agribusiness and Energy Services Segment
This segment reported a revenue decrease of $101.5 million for the nine months ended September 30, 2024, primarily due to lower weighted average ethanol and natural gas trading prices.
| Segment Financials | 2024 (thousands) | 2023 (thousands) | % Change |
|---|---|---|---|
| Revenues from External Customers | 282,500 | 384,615 | (26.5%) |
| Intersegment Revenues | 19,305 | 18,675 | 3.4% |
Liquidity and Capital Resources
As of September 30, 2024, Green Plains Inc. had:
- Cash and cash equivalents: $227.5 million
- Restricted cash: $24.5 million
- Available credit under revolving credit agreement: $228.5 million
- Net assets not available for distribution: $92.0 million
Debt Structure
The company's long-term debt as of September 30, 2024, includes:
| Debt Component | Amount (thousands) |
|---|---|
| 2.25% Convertible Notes due 2027 | 230,000 |
| Junior Secured Mezzanine Notes due 2026 | 125,000 |
| Loan Agreement | 72,000 |
| Other Debt | 9,647 |
| Total Long-Term Debt | 431,189 |
Recent Developments
On September 30, 2024, Green Plains completed the sale of the Birmingham terminal for $47.5 million, realizing a pretax gain of $30.7 million. Additionally, the company initiated a strategic review process to explore opportunities for enhancing shareholder value.
Market Position and Risk Management
Green Plains employs various risk management strategies, including the use of derivative financial instruments to mitigate price fluctuations in commodities such as corn, ethanol, and natural gas.
How Green Plains Inc. (GPRE) Makes Money
Ethanol Production Segment
Green Plains Inc. generates significant revenue from its Ethanol Production segment. For the three months ended September 30, 2024, total revenues from this segment amounted to $564.6 million, a decrease of 27.2% compared to $775.5 million in the same period of 2023. This decline was primarily due to lower average selling prices and reduced volumes sold. The company produced 220.3 million gallons of ethanol during this quarter, down 1.4% from 223.5 million gallons in the prior year.
The revenue breakdown for the Ethanol Production segment is as follows:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Ethanol | $563,564 | $774,321 | (27.2)% |
| Intersegment Revenues | $1,075 | $1,208 | (11.0)% |
| Total Segment Revenues | $564,639 | $775,529 | (27.2)% |
Agribusiness and Energy Services Segment
The Agribusiness and Energy Services segment also contributes to Green Plains' revenue. For the same three-month period, this segment reported total revenues of $101.9 million, down 18.6% from $125.1 million in Q3 2023, primarily due to lower trading prices of ethanol and natural gas.
Here is the revenue breakdown for the Agribusiness and Energy Services segment:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Agribusiness Revenue | $95,171 | $118,449 | (19.7)% |
| Energy Services Revenue | $6,689 | $6,632 | (0.9)% |
| Total Segment Revenues | $101,860 | $125,081 | (18.6)% |
Cost Structure
Green Plains' cost of goods sold (COGS) in the Ethanol Production segment decreased to $498.3 million for the third quarter of 2024, down from $716.6 million in Q3 2023, reflecting a 30.5% decrease. This reduction was due to lower corn prices and reduced ethanol volumes purchased. In the Agribusiness and Energy Services segment, COGS decreased to $90.1 million from $109.3 million, a 17.6% decrease.
| Segment | Q3 2024 COGS (in thousands) | Q3 2023 COGS (in thousands) | % Change |
|---|---|---|---|
| Ethanol Production | $498,326 | $716,556 | (30.5)% |
| Agribusiness and Energy Services | $90,064 | $109,292 | (17.6)% |
| Total COGS | $580,626 | $825,848 | (29.7)% |
Gross Margin Analysis
For the three months ended September 30, 2024, Green Plains reported a gross margin of $78.1 million, up 4.5% from $74.8 million in Q3 2023. This improvement in gross margin was primarily driven by increased margins in the Ethanol Production segment, which demonstrated a gross margin increase of 12.4% year over year.
| Segment | Q3 2024 Gross Margin (in thousands) | Q3 2023 Gross Margin (in thousands) | % Change |
|---|---|---|---|
| Ethanol Production | $66,313 | $58,973 | 12.4% |
| Agribusiness and Energy Services | $11,796 | $15,789 | (25.3)% |
| Total Gross Margin | $78,109 | $74,762 | 4.5% |
Net Income and Earnings Per Share
Net income for the three months ended September 30, 2024, was reported at $48.6 million, compared to $26.3 million in Q3 2023. The diluted earnings per share (EPS) for the same period was $0.69, up from $0.35 in the previous year.
| Period | Net Income (in thousands) | EPS - Diluted |
|---|---|---|
| Q3 2024 | $48,637 | $0.69 |
| Q3 2023 | $26,292 | $0.35 |
Liquidity and Capital Resources
As of September 30, 2024, Green Plains had $227.5 million in cash and cash equivalents, along with $24.5 million in restricted cash. The company also had $228.5 million available under its committed revolving credit agreement. These resources are utilized to fund operating expenses and service debt.
| Liquidity Position | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $227,500 |
| Restricted Cash | $24,500 |
| Available Credit | $228,500 |
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Article updated on 8 Nov 2024
Resources:
- Green Plains Inc. (GPRE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Green Plains Inc. (GPRE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Green Plains Inc. (GPRE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.