Green Plains Partners LP

Green Plains consolidated revenue for Q3 2023 was $892.8 million, down $62.2 million, or about 6.5%, from the same period last year, mainly due to lower ethanol and DDGS pricing. Net income attributable to Green Plains was $22.3 million, or $0.35 per diluted share, versus a net loss of $73.5 million, or $1.27 loss per diluted share, in Q3 2022. EBITDA was $52 million versus negative $35.6 million a year ago, and consolidated crush was $48.5 million versus negative $20.5 million last year. Plant utilization was 93.9%, up from 90.9% in Q3 2022 and 81.5% in Q2 2023. Other Q3 figures: ag and energy segment EBITDA was $12.2 million, SG&A was $35.5 million, interest expense was $9.6 million, and income tax benefit was $7.8 million. Liquidity at quarter-end included $366.2 million in cash, cash equivalents and restricted cash plus about $200 million available under the working capital revolver. For the remainder of 2023, CapEx is expected to be $25 million to $45 million. For 2024, management said MSC protein EBITDA contribution from the five facilities plus a partial-year Tharaldson JV could be $80 million to $120 million, excluding any uplift from 60% protein. The company also said its base renewable corn oil business could contribute $130 million to $160 million annually depending on veg oil pricing, while ag and energy EBITDA was described as typically $20 million to $30 million annually.

Todd Becker said the quarter showed the company’s platform was regaining consistency after first-half headwinds, with stronger operations, higher yields, and better momentum into Q4. He emphasized that record Ultra-High Protein production, the start of 60% protein commercialization, and the upcoming Tharaldson JV are key steps in the transformation plan. He was optimistic on multiple fronts — protein economics, corn oil, clean sugar, and carbon capture — but framed the outlook as dependent on current market conditions and execution.

Jim Stark highlighted the financial rebound: $892.8 million in revenue, $22.3 million in net income attributable to Green Plains, $52 million of EBITDA, and $48.5 million of consolidated crush. He noted improved liquidity of $366.2 million in cash, cash equivalents and restricted cash, plus about $200 million of revolver availability, and reminded investors there are no debt maturities until 2026 while two-thirds of debt is fixed rate, with borrowing cost around 7.2%. He also detailed Q3 capital spending of $29 million, with $15 million going to Shenandoah clean sugar and MSC protein initiatives, and said 2023 CapEx should land between $25 million and $45 million for the rest of the year.

Analysts focused on 60% protein adoption, corn basis, ethanol export strength, carbon capture timing, 45Z guidance, and clean sugar scaling. Management said 60 Pro is already being sold commercially, with Wood River reaching as high as 62.3% protein, and that 2024 should see the mix of 60 Pro rise gradually toward a 20% to 30% portfolio target. On carbon, they said Summit and the Nebraska project remain on track despite permitting delays, while 45Z and SAF guidance from Treasury is still expected by year-end or possibly early next year. On corn basis, management said the third quarter had been impacted by old-crop/new-crop transition but basis has normalized significantly, especially in Nebraska, and they expect a more typical setup going forward.