Q1 2024 REX American Resources Corp Earnings Call Transcript
Key Points
- REX American Resources Corp (REX) reported a 4% increase in ethanol sales volume, reaching 74.5 million gallons in Q1 2024 compared to Q1 2023.
- The company achieved the second most profitable first quarter in its history, driven by lower natural gas and corn input prices.
- REX American Resources Corp (REX) has maintained a streak of 15 consecutive profitable quarters.
- The construction of the One Earth Energy carbon capture facility and ethanol production capacity expansion is progressing well, with completion expected by the end of the year.
- The company ended the quarter with $351.8 million in cash, cash equivalents, and short-term investments, and no bank debt.
- The pricing environment for both ethanol and co-products was weaker, impacting overall revenue potential.
- There are delays expected in connecting the carbon capture facility to the electric utility, pushing the timeline to the fourth quarter of 2024 at the earliest.
- The company faces uncertainties and delays in obtaining necessary permits for the carbon capture and sequestration project.
- Planned maintenance at the NewGen and One Earth facilities is expected to impact production and increase associated expenses in the second quarter.
- Despite the approval of year-round E15 sales, the lack of E15 pumps remains a significant barrier to increasing ethanol demand.
Good morning, and welcome to the REX American Resources, fiscal first quarter 2024 conference call. As a reminder, today's call is being recorded. (Operator Instructions) I would now like to turn the call over to Mr. Doug Bruggeman, Chief Financial Officer of REX American. Please go ahead.
Good morning, and thank you for joining REX American Resources, Q1 '2024 for conference call. We'll get to our presentation and comments momentarily as well as your questions. But first, I will review the Safe Harbor disclosure. In addition to historical facts or statements of current conditions, today's conference call contains forward-looking statements that involve risks and uncertainties within the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements reflect the company's current expectations and beliefs, but are not guarantees of future performance. As such, actual results may vary materially from expectations.
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