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Aemetis (AMTX)

Participants
Eric McAfee Founder, Chairman and Chief Executive Officer
Todd Waltz Executive Vice President and Chief Financial Officer
Carter Driscoll FBR Capital Markets
Edward Woo Ascendiant Capital Markets, LLC
Call transcript
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Operator

Greetings and welcome to the Aemetis Second Quarter 2018 Earnings Review Conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I’ll now turn the conference your host, Todd Waltz, Executive Vice President and Chief Financial Officer. begin. may you you, Thank

Todd Waltz

corporate Thank the earnings you, earnings website second XXXX available or press release, the aemetis.com and review the Exchange for Commission, homepage. calls. Welcome conference call. This to recent updated press review earnings our and review Aemetis filing We with to Securities aemetis.com previous quarter releases today's Matt. on presentation, conference suggest at is download, visiting presentation

following the statement. today, I'd like we Before our read begin discussion to disclosure

are today's involve respect all stock forward-looking with this from cautioned made on statements disclosure differ opportunities During with These and events will including, risks statements statements, conjunction making expectations in that in the activities. that warnings Investors and forward-looking call call, be to cautionary we statements and statements without made. materially appear limitation, may considered must respect and that performance, uncertainties, the with to financing future future filings. be our our plans, SEC

For available Commission are filings, additional posted Securities and without and are website to Exchange refer on our the information, which company charge. Company's from the please

amortization income as on expense, calculating other which share loss, website. such reconciliation financial Our XXXX, defined based loss non-GAAP expense, measures interest EBITDA to on XX, included in to net income, compensation this expense, for quarter review on release expense. and tax expense a the extinguishment, of most discussion a intangibles measures ended or supplement June GAAP. our the is GAAP available call on as to based non-GAAP deducted measures is will include net of on plus A the comparable the results directly depreciation is income our extent earnings and in Adjusted

of to the gross quarter was improvement XXXX, loss XXXX for negative million of to $X.X the XXXX. for quarter $X.X second $X.X completes financial million net loss million from EBITDA in to XXXX. Revenues like to quarter a the the of review our compared increased $XX the higher increased of due $X.X margin million, margin of quarter of $X.X adjusted for for to same XXXX, $X expense. to million the to $X.X XXXX. second second quarter significantly expenses for at XXXX. second at second of to administrative results XXXX. and I'd of of million XXXX. second of increased period second of $X.X of the second XXXX, was an $X.X the for $X.X end quarter to second for compared quarter the second XXXX $X.X million period and in the XXXX. quarter interest of Cash XXXX, million quarter review of XXXX, improvement second $XX.X of for quarter for million Gross second of general of compared the were compared in Selling, second Net to million million loss was million Now, close quarter EBITDA the same Adjusted quarter the That the loss of for financial the the Operating compared quarter of from the $X.X million during in the of the million XXXX. operating XXXX

for Executive a to business I Chairman Chief update. and Eric? like Eric Officer Founder, Now, Aemetis, of would the introduce McAfee,

Eric McAfee

Todd. you, Thank

and and we let may some our with own new be take of provide company, Aemetis facilities XXX was moment founded production me in to production those near million and India. portfolio distillers year gallons plant California, corn in Included more is you to a XXXX, background in renewable capacity who XX operate per than grain information. For brief located a the oil capacity in Keyes, and of fuel per year gallon our U.S. Modesto. million ethanol,

in We coast biodiesel east the distilled on India, and operate built, glycerin port Russell Index the improve near This refined the expected and awareness XX. shareholder million June the also biorefinery the to and of liquidity capacity We XX of Microcap June was among is announced Index join year a selected per effective city that gallon own late the to of company investors. Kakinada. Company

Now let's in India. review our biodiesel business

our as the solid We have are the progress and profitability improvements revenue upgrades made expanded. tract on and are in and of upgrade India significant for completed plant production

recently a of Coast our was feedstock of fatty completed acids in low-quality imported oil under supply specific quarter major XX% mid-XXXX. at acid agreement pretreatment was Coincidentally, pretreatment signed India the and Universal tariff require a a located India. Government company unit This built with policy to biodiesel changed free tax. a to second subsidiary that lower a the using that the constructed feedstock free to heavy of Biofuels XXXX, low-cost on avoid in process distilled feedstock During announced high-quality fatty the production unit biorefinery high we from East quality the

So pre-treatment this plant onsite the The a special of timed the at for of begun utilities full the very and including the unit in lower of the and of company. the cost processing. with completion at waste high support production FFA sale are for to major customers this for enable being type plant well the new biodiesel feedstock but The now capacity of unit was importation oil the operations, expansion by year. pre-treatment of India distilled pre-treatment Europe, feedstocks U.S. built end operations unit to new new allows to for the now India, has contract the unit

demonstrated for and innovation sustainable, we Aemetis a fabricating, plant the thankful expect will provide the operational designing, and the with installing in perseverance advantage. team upgrades and India commitment, plant which are strategic by hard We work,

we we we After profitability consistently commissioning crude that the in demand contributor sales cash at of above primarily of rapid price to the plant. by improved supply expect expansion driving As Europe QX about and with biodiesel. has and the process price will driven glycerin continue higher stated of price diesel India refined a of selling at India in operating capability business we consumes year, be year, profitability pre-treatment diesel to the export new India country under lower be XX to the utilities plant plant the revenues existing billion business significant at expected revenue the India at flow global is domestic imported the upgrades Since during increases in cost of and and agreements. capabilities. feedstocks, a The per revenues the allowed to to earlier processing expect oil new $X this gallons commission rise increases India barrel, prices diesel our and as each the

into largest XX the Now cellulosic project for business, in to the DX demand by major advanced successful year one flow The on by ethanol We waste Biofuels and fixed walnut low per were has of in ethanol carbon expected as the plant cellulosic your pleased is Aemetis RIN world is more Riverbank, by producing new than named fuel including and as California in Riverbank with years federal financial driven cost wood of price cost Riverbank ethanol its agreements barrel. let's daily closing from for of producer. demolition predictability multiple almond review as construction California the than this million The $XX world's for ranking waste, contracted announce, was XX is positive and result our that a and construction biofuels feedstock. begin The pricing earned vineyard, orchard, standard of funding Digest, Enerkem. XX technology to plant of year Waste-to-Value created Planned the primarily June biofuels forest of biorefinery expected wood rise plant. USDA under-development no Aemetis loan other a fund for in number our cash to per million principal low California years. $X the advanced add rising advanced number projects. Clariant, price in than $XXX Project project. The production biofuels and guaranteed projects from meal The planned a The using companies above the the credit including operational more XX-year loan. projects, of million USDA Riverbank ranked the plant including byproducts. Aemetis was funded interest and Riverbank XX% among Northern and guaranteed the low to $XX well-known under USDA Fulcrum, interest a generated advanced XXXX, China, those Rock, developed loan The during and debt supply the by and oil biofuels steel capacity facility Red plant production at only the that is rate Poet guaranteed about fish crude XX advanced gallon, microbial recently high three worth of more payments ethanol financing revenue with gallon payments low years. waste timing per XXXX cellulosic gases price The became per a and the million of first investment value proven LanzaTech Biorefinery ethanol of year oil the valuable one $XX program a

issued engineering achieve continues We discussions to loan improve ethanol complete yields the plant first team Keyes to based of XXXX letter, and – significantly significantly to ethanol upgrades and more the nameplate than an commitment several implementing to with profitability. Keyes which increasing the operations are while plant planned up above in half issue million should gallons operate month operation compared expect the The by XXXX. XX million ethanol with now with gallon that first the half related plant this working to USDA USDA. we plant time, team be of on continues excellent capacity production The X are

plant is biofuels low decisions DX Prudent the Aemetis expansion our and and about key In a have for plant. create that carbon direct later waste to seek low the from intensity summary, DX generate our per XXXX upgrade price economy. One a RINs, the production standard carbon that identification the name standard We opportunities and ethanol price ethanol increasing renewable federal which increased low lower numbers credit credits carbon per California federal our credit factor upgrades generates been carbon lower and to – “The meet and these A expect of the of at The in this with other Wisdom”. Keyes carbon carbon products market means zero biogas the produce to strong fuel and credits, goals of this wood reducing fuel announce by for corn in $XXX carbon of plant year below to week, of cellulosic law. July set that has $XX from cellulosic, ethanol, goal the regulations

jobs, on zero our below carbon attract in investment our emissions, builds, cellulosic reduce achieve is operational is carbon, society, phase the cost local industry the of deployment dependent biofuels is The performance support and One waste carbon execution operates, at from a energy low to air being security. become areas now facilities less in leader. which a rural other produce carbon and Aemetis feedstocks and quest are and in Wisdom to independence fuels Aemetis ethanol leadership innovative in which low and Aemetis has time production We low in quality, processes petroleum. Company's recognized as low to renewable high upgrades Prudent exciting improve for create and of to is pollution, patented growth. abundant growth LanzaTech most an now achieved

take let's Matt? few call our participants. a from Now questions

Operator

[Operator from Instructions] Carter Markets. ahead. Driscoll Please is Capital from go thank. first Great, question Our FBR

Carter Driscoll

Good gentlemen. afternoon,

timing you again facility factors with is loan in just the So late us on the operation gating of the of a and the if in then issue? of to eventual let the probably next impact in – have commitment the timing construction terms me secure what and what that bureaucratic steps any financing it any And terms in once is remind that USDA Are letter. terms the rest of secured, of start XXXX? there are

Eric McAfee

of the and to the Our year. And XX% financing, we're occur financing debt amount. in required loan projecting closing is fourth quarter overall of non-USDA deliverable this which is the that the guaranteed the

final called is and fund in calendar It’s weeks year. be process, the – to made the to commitment us. would few construction it's banks XXXX get deliverable that exiting from last process. the we the loan a of that To made are we USDA a and the letter syndicated not actually phase to in So that

a completed. informed certainly August closing So USDA September. now expect start wait because of going with early as not see as to as the should mid we been into late already is that have we version and final to do the draft the we complete is and And version for by now that commitment letter, – a process effectively

activities be other loan other you necessary of be So what’s equity that the but already get are completing investors have to other senior we the and a group the equity other have the banks we small equity done. and could the than are already year doing mechanisms funding. in these Already issued. parties getting committed USDA the term would process closing the be driven would fourth would call do syndicated in moving We closing the can and primarily be of the financial the preferred common is process frankly other that they toward of process this quarter in in really a be this involved identified but and equity with better that get so by quarter fee timing of we fourth in can can letter and

to a syndicate over that can we in month this couple get investors. and handed if of then So will be banks of us it outside achieved the then

I So can…

Carter Driscoll

with the together syndicate view the past syndicate put but often were realized is primarily to I primary… are getting directly had itself, You they

Eric McAfee

has This USDA it particular biorefinery projects year already XXX syndicate two funded already. this

it's banks so they have a syndicate And close with same USDA. and the relationship very

third of a about this this dozen So banks. be year the financing I will done same with the they’d essentially group think

flow point well So firms oil long-term that part really in over this amount excess see at California and equation amount of and DX substantial of the very is is portion in large inputs getting almost essentially who Street tremendous a LCFS locked values the Wall see of $XX in boilerplate year. contract a the cash and major known equity very, this credits from a in companies million project of statutory and finance a RIN has the is interest of and fairly the

we couple to of the add ones a and favorites of of actually high because our parties interest. we the So other into of are we of may have and a very clothes course interest favorites number the strong a from new level of have mix so

Carter Driscoll

the Is correct? that months. of And roughly timing nine construction and still

Eric McAfee

we're is project the Yes, development this cycle over million the engineering funded timing already now $XX almost construction in of project engineering we've into the and the course process.

med that the enable So ground we this expect XXXX. break year funding quarter be us quarter engineering of in the detail engineering of in process and will so fourth the to first assessment and and completed

that So it's pushes commissioning actual be quarter XX-month wrapping all the that that would a of construction and the up would in cycle about quarter first XXXX. fourth XXXX

Carter Driscoll

Okay.

XQ looking XXXX are at we now So XQ XXXX or for…

Eric McAfee

at if delay has have QX experienced upside some quarter. pushed the back essentially think one we we're but XXXX, looking I the surprise in we've quarter USDA for the a

Carter Driscoll

can shift Thank talk about we you. Kakinada. Maybe gears

think know the when So be ramping issues second comfortable XXXX when the you just got were in towards now. into be power ramping some like I second to volume towards upon GST seems got second the to helpful? BP year. of And half you XXXX some I first guys and rather XXXX sounds would you. there with though be which that the there's you'll It than you half expand would felt be year. you you to half contract just pretreatment Thank end we throughout plan production getting thought resolved proven this sounds terms last or in path the the probably utilities on wide a understand the and color half ramping more maybe of now

Eric McAfee

XXXX. that we're half ramping reconfirm in second of would the I

without that utilities I the for for create plant the say operating currently utility are power talking the the about we're plant. boilers We – and when steam

boiler our component so of of specifically And upgrade. the expansion have that is capacity we our last

capacity just we ramp in but XXXX to full already need that still boiler. this begun it's to is second to the in half order in We've of production get additional add ramp, And the calendar. so on

completed I the we're then that. civil work in equipment phase the virtually so preliminary And is think initialization and of

that quarter a process to should achieved to ramp and so not third it that. being capacity long-term be without boiler additional is it's be three-month and just our already able complete So in a It's place. start happened, it so event, won't

Carter Driscoll

is a right on now monthly And nameplate basis? XX/X

Eric McAfee

price $XX beyond we're basis, scale demand Europe. opportunities do Brent I even more has the agreements really for as that what seen risen diesel planning debottlenecking On up we number domestic can have we we international the domestic in see just we've expanded monthly well. our has is is the and glycerin exactly, yes in existing plant any crude have. But the of India, Europe in production. hitting we already to plant, about and and opened market a again And supply not so additional so capacity relationships doing we're not What the guess

Carter Driscoll

Okay.

nine pricing the get thoughts fact your Mr. test, the layer if manner. months, seeming try tough relax? You thoughts regulatory reasonable you. corn help balance a perspective and/or that could where base potential how to same of commented some Obviously, six situated to positive go [indiscernible] in potentially DX pricing Pruitt hire export your terms assumingly and in volatile about be in where a capacity with higher then Chinese supply with resignation could on can maybe come prices about currently? Eric business terms Thank market that in and it’s restart could high to the a for maybe of from level just you China and maybe your level EXX on an very The impact the oil. uncertainty seem industry waiver And been

Eric McAfee

plus price congressional wholesale that price index call cellulosic directly factors credits ethanol impact we cost the points that is with gasoline, described designed Carbon set California good ethanol relevant. correlated RIN. is DX that business of we have Low Good. The the all not you start living All the I all $X very that business, to it federal want corn the impacted of at are business. that specifically the to so very and and by Standard saying minus Fuel by

about or low DX expanding So impact it even working we're even Carbon allow from dispute market revenues this India describe. whether that we are credit Low of into ethanol whether because announcing Pruitt ethanol directly into crude first quarter, was you products with so from Fuel court of low be X.XX we oil issuance and year The a our conditions gallons go a doesn't have and of erred to of overcapacity XXXX would the the is And in low incorrectly. million waivers and China, cash did waivers projects, $XXX LCFS But refineries the designed deposit had Mr. upgrade on to to order generation carbon us not issued XXX in the specifically the buffered price California is actually flow to billion complicated oil and trade it EPA by business, enable secret carbon was specifically with that Standard Riverbank business $XX, high our corn the LCFS did provided us per had and a versus his gallon facility. markets. impaired react July that and

So ethanol to the decided X.XX there's Mr. marketplace. eliminate by from demand almost gallons himself, that of about billion Pruitt

ago as how that a Now played gallon, is months about $X.XX. but The of current $X.XX gasoline, from market, gasoline ethanol the of Chicago eight out price about $X.XX was has in the that price decreased $X.XX. to same for the the or is up price

the a question in this decrease all and for being going then result by which space. be fully that sold federal to you products for can asked Congress, he him force states question the should of and These answer front federal the really by that the of when law? essentially not by a price that see the going $X.XX the enforce are commodity a direct it. customer same down Grassley government they will same underlying their demand price aggressive – ethanol individual ethanol of up is [Mr. was the same who did Congress. hired appropriately I and pump federal And the price EPA he more gasoline look you at does $X.XX. The And are So be and of for Senators they should the in as Wheeler] these and market a price, the what enforcing of you in on impact and in law to EPA, handled in and was, Ernst, will and Secretary testimony to others, about think state is

and Trade of as because in they've industry should think secretary they very with basis a damaging whole whole the accommodating that of of been secretary ethanol actions price accommodating recently rewarding industry EPA the discretion as a while the be I gasoline departed. the the the of Chicago has the think I a of because go specifically that less forward Board

should frankly molecule that. costs position pursue, that don't a ethanol a a did team action you firm that, had need But would has regulatory be way nicely impact eliminating corn The gallon to we cellulosic it that feedstock we if not by business have position any ways any gallon federal of to be taking and that molecule for my called – gallon taken the a profitable sustainable is on we court that to and management $X and a corn very and still regardless the and do that congressional we the a discount XX to new high not do business, $X.XX federal our of any intent that is process We margin $X.XX making per legislative that of the be our should law gasoline ethanol to plus our gallon rightly recovery So law EPA plant. a a is financeable fully need ethanol we be multiple that all enforced called million corn minimum $X.XX concept value least in ethanol need law. actually action. the What – federal action. is a enforce increase at fully for business would order would need

California. is plant watch four you as you'll So Company of cellulosic our the closely, building Riverbank in first plants our ethanol see

coming standards cash have one our flow credits related low and the plant. India China impact projects But than come can make see low tariff the of blocked our the plant plant is of by the help we're U.S. that on our effectively have see the adopted daily upgraded They've our a mixing fuel the have increased alleviated from which has with significant that’s of carbon less on one a China. they business. they about China, corn twice credit see in positive U.S. crisis vision to and from they pollution the carbon, RINs ethanol I domestic news point additional air really they'll LCFS high You'll lesser that you'll and think Last ethanol India products the the have is ethanol. high DX want and ethanol available. we of to additive out as and the the investors that increasingly XX% profitability blend make items and get is ethanol And doing, and only what I only oxygen

or will States. emerge United ethanol world large health and the and of from they starch into in they they backed corner pollution himself with will from of frankly conditions cost a flight crisis problems temporary capital So corn and continued major the because living poor for a make will customer cities in very have the air which either molecule ethanol lowest they be emerge the and

United being zero today for manner we're be the market market of almost ethanol opportunity I largely billion of year EXX be in I is XX% say XX% government favor U.S. the a blend Chinese that from practical increase of caught rather discussion China is up is that the in U.S., amount what just So States it product. as could ethanol going in U.S. growing market topics That that a the in in and a States. to between On discussion to this that, roughly being a market. blended the will United resolved where up the of viewer, one think market is XX end the and gallons than with we're many essentially our and topics would a ability round the temporary said,

in over by we're the over way X gallons. – consumed more billion just really is today you what than law If gallons X.X billion enforce U.S. federal that the

Now of our the we not obviously lack have supply go from market in U.S. able supply We billion, own XX much would ethanol domestic foreigners. we billion a be to XX.X would or less supply

So a of reconciliation number gradually gasoline the of a price the price of called create years ethanol approval U.S. natural U.S. over the the the in EXX in – will

So it's the U.S. it a bullish stated growing he's which that President of the fundamentally is indicator and beyond around that support repeatedly today. in in here has ethanol XX% publicly for the blending U.S., the what is market

Carter Driscoll

What is the EXX? hindrance to adopting

Eric McAfee

they The year oil annual for do the that industry. because profits $XXX can I significant political oil order corn was lobbying they in of last to the billion There's because have goals. a a use to number – you to then do for the industry something farmers perception that power have saw fund something of I think

in challenged ethanol to corn in foreign a corn export oil get and markets to there's get that are something the the farmer. so to perception industry the other industries by are markets meat only shrinking marketplace we industry And the tend growth something the is they need producers. And

market is for million of is there XX ethanol corn one is commodity acres only number the corn So grown, and is land. growth grown the U.S. on

uncomfortable. are treated there's lobbying a that that being with that direct XX about can be money there's a farmers uses very that the oil whether in well if So industry and life corn states votes perception correlated

politically get in and in finally lie positive November United really out the in corn the from Senate, successful the without for think President. lobbying And both industry is wrong, perception ignore player. the ethanol some don't I And corn you volatility the get you votes doing industry. you're states and farmer XX that we also people very industry loud something they be the more But as you know oil for So I the closer States. get think I that think oil something those the do where completely could figure the reality still to the noise news is from going

Carter Driscoll

there timing add Thank my you're And question and that litigation or update for on against for pursuing is in last with you case Appreciate EdenIQ the commentary. any change their me, it. them? an legal the

Eric McAfee

direct No through for We than corn EdenIQ process comment it's the interestingly not opportunities that positions be correlated as going of on fiber. see that technology the the and that Yes. might like. directly litigation phase the some with discovery

discussions. make they there's we'll have are see a larger. some But see opportunity are will productive very to business slices strong ongoing but get that have to something frankly and dialogue so it if see the to their opportunities company come table to those effect. about have to our to bigger we and litigation it the pie And and proposals it of that as an move how piece in in that resolved, So discussions anytime with is position making being a perhaps with we willing discontinue along we as much bigger to

is goal cellulosic has and maximize their that's implemented ethanol that Our technologies to fully been fully that focus on fiber in to perhaps feedstock in plant production – ways the have their don't have technology cellulosic don’t deploy yet. we a enables the corn they already expand they

absent complete synergies certainly of intention have it's technology. intention an the So to the we an there a and an lot to acquisition why there's have play we think acquisition

be they to upside open might existing contract, like it properly very themselves that enforce but not for we're the in So about looking being aware. to business litigation perhaps other investing and

Carter Driscoll

for second financing phase? of Any one update me. EB-X I'm sorry, the on the in last one pursuit

Eric McAfee

with two dozen I've trips. weeks very ago, more China week EB-X just was doing China worldwide I a again positive. than in next I’ll be done Yes, seminars investors. in

shortage is interest unique of a very countryside and there as rural of value our because are of value those, and investors. a a have for could project a project the proposition we project we the are in a which cycle also interested approval a We project, kind national accelerate

capital quite So of accepted lot really couple we could this of that exciting are year if doing a this applications program. a under move

to we brokers spend efforts and have and than and presentations travel I worldwide get of dozen continue feedback. lots and So extensive half very retained positive more that have do continue to being a

great by progress see of year. and the progress see there I QX end to this expecting So hope to continued

Carter Driscoll

my I appreciate for taking questions. all

Eric McAfee

Thank you, Carter.

Operator

ahead. Woo is from Capital. go question from next Ascendiant Edward Our Please

Edward Woo

for you question. taking Thank my

getting will to done? be when different as and everything will you Or back you altogether Going be or doing [indiscernible]? of closing EP-X, you the kind money complete is

Eric McAfee

amount investor in a received the $XXX,XXX per investor investor which per the by and general project cash basis collect is we actually that and is Ed, their on company as paperwork. follows funds

a call basis be closed a not at time million you at would be So of you million a on frequently. money, monthly would see dribble $XXX,XXX a or and if done $X but it on more to $X it could least traditionally

and $XX job and which We buffer I maturity capital to million, million couple very, minimum could completed expand offering So money to to million attractive expand theory Last million enough in and our so here raise point very million. range. job first might as the $XXX expand would the jobs we as be million did a for debt, the showed target actually project $XX for million subordinated complete $XXX dribbles jobs created raise five-year might $XX we But make $XX we million our leave and today a cost goal investors we as want overall very creation, up there. XX required more couple in from much We current million. low our interest and actually is of you on and created we possibly rate, would did to as $XX raised this verification $XX study was kind program. cycle we that of under first happens XX% that than it it where call is a a we in and happens it X% million.

for our have all a And the and completed program, completed part actions Phase all X the creation, that project Riverbank project. of to support we're the really we're required jobs pleased expanded use discussion able so our very as to of we just that and

Edward Woo

any collected million you this $XX Have round? money new from

Eric McAfee

quarter this No, we've I we funds and expect collected Phase the to under II. $XX million Phase frankly from see

Edward Woo

And you issues you maybe concerns issues. actually know running well? mentioned heard tariff I Great. in ethanol issues China in with Have about factored some and [indiscernible] that as the any is trade

Eric McAfee

It the is issues. in factor trade a definitely

because in votes corn which gives these coming to corn of votes. and and the farmer up optimism we're me this that important on November corn farmers in the elections matter elections. states has of high That read Chinese central have the an therefore level a will We on impact that outcome actually that quite be in see

the Chinese So I the taxes past import week think in realize very, stiffly. that have again and just or so very increased

has not But China be impact business expected is of in ethanol So has low large to the a been on product the because historically. or it customer relatively not the is future. been

number an ethanol think any this anything case could because favorably be states involved resolved going in it U.S. corn considered So have be strategy really in or of part the if it tariff to so states. I and of be votes XX is to the spat important of

Edward Woo

my to [indiscernible] difficult I into and outlook get have is overall XX may next just to insight is oil you I is predict, there know but be going six any months? last on question very oil. what Great go would like for always to to

Eric McAfee

they're that me – just second, a that Global company Arabians I in at I choice have of of and operating Annual that because on into is role flat a didn't of Singapore, Chief of have the back more price I them the Energy would topic. they this now think the oil and let the a producer, that various of their back in underpinning which CEO's Saudi agree that bankrupting and divisions fact one or opportunity major and analysis either oil Outlook oil I increasing Economist low producer, every crude essentially Asia the oil invitation a expect of exactly up. the oil. to oil price swing they have And with that think they of stepped stated their of attended of gradually the the be presented and to that price the country, about stable create swing the a was price essentially

price $XX West true budget roughly and breakeven is think is that barrel $XX $XX Intermediate a price. U.S., National to are I per about $XX still Texas numbers the for – the Brent Saudi so Arabian

it. we're pay need and expenditures else. They to to this and their need So of welfare $XX expenditures capital for Saudis military I it and range because the anything budgets think $XX various in

of we're positive oil and back for I business. And largely so will the controlling think the that be to biofuels price Saudis

added that One a might business are among range, best and the the oxygenate $XXX octane higher misperception lower all biofuels price produce, be a of cost higher because to is nasty is There’s BTEX benzenes and would those that business. for the things cheaper some at in biofuels $XX is at in price a personally good I replace biofuels for value no the say or cetera the et gasoline. that benefits $XX.

$XXX, or of become batteries $XXX, economic you $XX. with things end calculations and $XXX other absolutely cars at economic that at electric not However, might and at but up are

let’s So time that the sweet we long come. spot biofuels I sweet And price $XX going long for in are the $XXX and is per to a to range that we're in barrel be today. for price a spot say believe time, to

a has done because our take back producer era advantage cetera very advanced we're that of relevant of itself products that DX to swing essentially full new price with RINs well is stability of status Arabia what positioned that cellulosic the think ethanol et I So Saudi in. like make

Edward Woo

insight Great. the luck. Well, and thank you good for

Eric McAfee

think Ed. I End today. for it. you, Operator, Thank that's it appreciate I discussion Q&A of

Operator

make? session. closing comments question-and-answer any the concludes have to you Do That

Eric McAfee

Aemetis’ other opportunities about look attending section and to earnings and call. you joined today's meeting the continue Aemetis Aemetis. to pursuing Please you today. growth visit for analysts Thank Thank dialogue you conference the at who with Investor forward of our We website. shareholders, our us

audio post written and a earnings review Aemetis update. business version will this We Matt? of version and

Operator

teleconference. concludes This today’s

participation. your at time. this your may lines disconnect You Thank you for