Aemetis (AMTX) 9 Nov 182018 Q3 Earnings call transcript

Greetings, and welcome to the Aemetis Third 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 would now like to turn the conference over your host, Mr. President Financial Vice of Executive Waltz, and Officer Chief Aemetis. Todd you. Thank

begin. You may

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

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

disclosure SEC cautionary call, we’ll in may statements business future all and appear expectations our differ and today’s plans, future be involve this that During cautioned activity including making that of and from without the with stock filings. plan. forward-looking made. These are statements limitations and with the that opportunities our our made forward-looking financing on events execution materially statements, risk respect statements call to respect warnings conjunction must in and to Investors the uncertainty considered with performance, statements be

the information, available Security without additional company from to website which company’s on refer please filing, the and Exchange and charge. are posted For Commission our

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

million, higher were the to during third Selling, biodiesel. price increase $X.X or the wet volume an average Revenues translates the I’d to million increase results $X.X quarter to and the $XX.X an to to in compared by general million increase of third XX.X%, to third quarter XXXX, like of for grain distillers million] quarter expanded expense during quarter an third to in million in quarter revenues from by million the third the EBITDA for $X.X million third expense XX.X XXXX $X.X of profit XXXX demand quarter the an the quarter EBITDA of in improvement for loss review an XXXX. compared driven in third million point to quarter net for was million. the was selling XXXX. quarter quarter of stronger and of compared XXXX, quarter third for of stronger sales third the during XX.X [$XX XXXX, gallons the of the representing third gallons XXXX. improved quarter million quarter loss operating The to of by for Interest loss The improvement the were profit period $X.X of the $X.X for Operating to Now compared loss gross XXXX $X.X $X of Adjusted ethanol of negative compared a from XXXX. for the million of $X.X $X.X first XXXX. financial compared [ph] of quarter of million the for third for expenses third an India XXXX. the a million, million interest $X.X XXXX. of XXXX, third million decreased of gross revenue million, $X.X of third to administrative higher to XXXX, of XXXX, of of adjusted of quarter during $X.X million improvement $X.X for X% Net million same

of first double months nine XXXX, nine $X.X first Adjusted in XX%, than from $XXX.X net nine September the of for to XXXX, an of Net months XXXX. compared negative translated for improvement to million gross of $XXX.X for profit XX, ended million, revenue in XXXX. compared review. during third nine $X.X $XX.X months the to profit of million, more financial $X.X first loss our million to period That for completes the was quarter revenues The EBITDA $XX.X million increase in million million months XXXX. of the revenues $XX third to the million first or XXXX, the an compared During same the a of quarter of of XXXX nine million, the months of was the gross XXXX. $X.X were for $X.X increase for loss of

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

Thank you, Todd.

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

India the gallon own biorefinery per the biodiesel and refined year operate on port a the glycerin Kakinada. built, of coast east million city We capacity near also and XX distilled of

low one for our pleased federal that California which meet in to Riverbank, low biorefinery The start guaranteed credit earned this under from $XX construction named and We cash Modesto the using Let’s The A the carbon $XX Aemetis $XXX from standard biofuels per million waste plant of The than wood being strong processes. biofields to with more the in project patented announce plant number biofuels a plant the factor per million byproducts, ethanol with expansion credits publisher. fishmeal revenue of ton in including number in $XXX and Aemetis guaranteed ethanol low-cost Northern USDA waste, no the and The that flow with DX technology, one wood of corn gallon seek wood, ranking our loan. the RINs more underdevelopment payments by first-half for issued payments waste per cellulosic of Financial internal years, law ethanol feed of the and advanced the XX% LCFS contract $XX primarily fixed principle was closing and forest production Planned about the than fixed Biofuels as in by USDA its almond carbon demolition to DX week identification of price advanced California products Riverbank project million daily the lower credit loan three opportunities $XXX XX-year period. direct and use the up per to than is by to plant, expected ethanol Riverbank low-cost a loan that USDA from more was world construction a gases below federal steel debt a the high increased cellulosic waste high-value goals valuable next low the XX positive of commitment production our are generate $XXX renewable ethanol carbon in $XX price fuel of an decisions Riverbank, fund few near largest were The stock. Digest, the can and and from by summer is numbers letter July California. cellulosic price, a ethanol, key as generate completing in were create first orchard, and other cellulosic the administrative set LanzaTech million during for has to the timing production this about China guaranteed carbon Riverbank months, of the in Waste-to-Value project planned world’s been year expected upgrade walnut have today rate financing regulations per and lower XXXX planned be confirmed gallon, other producing carbon that of year plant. under economy. only and that as our contract of credits, final years. on $X is to for million low-interest as capacity recently which of worth vineyard biorefinery biogas cellulosic the plant microbial update program interest generate California another driven zero per XX carbon to market law. implemented XXXX recently USDA million result is

Now let’s review India. in biodiesel business our

quarter, while by solid The operations completed operated and India of our of onsite revenue track at to and improvements unit utilities as in on made end plant have expanded. this profitability We capacity the for the are the during intermittently third upgrade full pretreatment significant the upgrades are progress and production enable expanding plant year.

and driven revenues stocks, be the existing we primarily to be increases third higher and capabilities. business to cash pretreatment improved in under and XXXX. oil lower-cost $XX we per at of biodiesel India that sales expansion contributor Europe crude to upgrades to capability during we diesel export feed barrel, profitability India supply and agreements. the the new higher global allowed has As diesel price is operating the a of demand plant, prices refined of price a price our commissioning utilities the the The by the we biodiesel a domestic this commission rapid glycerin year, expected XXXX significant India compared stated at plant. plant expect with business of and revenues After new will in quarter continue consistently process XXX% the at profitability to volumes increase and earlier revenue as India sales driving processing in QX expect The of to an flow increase above

our to than mandates credits. refineries, Now of to ethanol this year about Earlier refineries gallons in ethanol needed. inventory avoid biofuels hardship ethanol, billion purchasing the of the there’s X significantly issued renewal gallons XX waivers standard these California billion fuel billion let’s of is which the allowing X.XX Since review EPA year, per business. now gallons U.S., oil more

$X ethanol that Keyes dramatically the enforce result, XX fallen first announced on $X nameplate plant adjacent putting the significantly insensitive a plant Keyes EPA Keyes energy our processing molecular profitability renewable million to convert score There with prices plant funding other by standard, plant to unit operation plant. for gallons will we reduce well ethanol produced stocks. the is X capacity, the the quality lawsuits funded at producer profitability. upgrade full with to margins liquid believe replace nine months This nine plant. CXX expected profitability yields and at project gallon to million replacing than million by against and ethanol to the the Keyes above carbon the pressure into increasing expected the improve which the year pending demand. XXXX, while as implementing feed continues service financing intensity plant, the as U.S. have canceled operate and compared plant this made by the being a are the more build ethanol build are non-diluted $XX Recently, currently in downward to membrane planned uptime, also We’ve COX third The million and to to the unit As to quarter plant work-related corn highly of ethanol upgrades in price excellent Keyes purified permits improve COX. in fuel ethanol of to land and acres of engineering key the XXXX. several we COX by land their progress of Mitsubishi renewable and upgrade gas of to high the several company significantly improve debt industrial team occur dehydration for five non-diluted plant achieve This of upgrades, toward The XXXX. food of operations about of to acquisition continues of months Keyes with first is the our in production the a producers completion

carbon, LanzaTech summary, implemented. Keyes the low $X of exciting reduce technology that we are industry. carbon of processes renewable to well-positioned waste announce an project we to as the performance positive low are flow feed biofuels innovative projects enhance per costs, the Keyes patented significantly The funding produced these of lower the believe fully plan the to fuels full Within and product the to of deployment grow reduce In abundant additional than on and plant few share next generate from to ethanol the more expected plant. other ethanol low in to high our low-cost fuels the content cellulosic the cash projects stocks has carbon carbon value Aemetis of pollution, produce at intensity, energy combination at weeks, our

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

be question-and-answer At moment please session. we Thank [Operator poll questions. conducting for will time, this while One you. Great. Instructions] a we

Riley Carter question ahead. first from go is Our Driscoll FBR. from B. Please

Good morning, gentlemen.

on Eric, to you. EXX, for Trump summer question. potential you industry directed this the domestically? and Thank the implement to implications, EPA can the First timeframe, dynamics, ban infrastructure necessary lawmaking comment do to that the remove least, can this process at practical what

Excellent of ethanol lawsuits hardship to larger are which EPA reallocated smaller is they’ve The Thank just priority reallocation waivers requires, RINs what there’s pending more X.XX you, they happen that law DX The three tomorrow. refineries, components Carter. refineries. actually the that. federal question. could The There enforce that immediate to non-enforced needs granted of billion to announce is the and two higher reallocation and waived the demand. or the and

as ethanol the will have quickly XX% in medium-term, well would and So frankly, the $X demand I the that the a revenues immediate need rather from demand priorities as a in oil of will say, an in industry. one moving the be to transferred about industry. by of on ethanol margins But cited highest the – imagine, the XX% of often EXX course biofuels been of ethanol is, to represented business roughly driving as ethanol as EXX increase industry, blend would have, blend appear up corn that of you of XX% to the this largely year during quite the billion can

to And RVO the is EPA would year before roughly step of support summer back a very the to determination month forward. to ago instruct to a the season make EXX publicly a the President’s so rulemaking and significant driving restrict EXX next us

corn commitment direct It’s hard which United that million President a is I positive for farmers, it States. has on in in to the on acres very of significant think it’s backtrack the that. estate XX and impact real

it’s think here we’re of is it’s see span EXX. a one go So litigation forward, what X the narrow industry that timing. is I commitment but implementation the oil This that it’s of delay – the to of question roughly is could will a months. I enough believe but time, potential that going with months

reallocate So station their industry and that then back twice implement to EXX. the resticker does tanks basically EXX not gas year a and

this interested think I issue. oil so industry the And that is in litigating

to the biofuels will perspective large There time retailers of biofuel chains of stand that from think a higher a on announced implementing the rulemaking already are other I be of side the equation a corn station already that pushing have profitability their by the industry a and who implemented blend, expansion see industry to the that’s gas in lower-cost EXX. year. benefit for next of

clear. so. is So less I timing trend is think the The

So demand I do on it to not a material expect have impact in XXXX.

biofuels the just impact billion the US. on frankly a be corn his the think, reallocated, material granted of to the have show the and reallocate commitment the illegally not they’re they mandate way waivers would demand if to is President biofuels industry essentially that, cancellation XX in gallon the for for I only and to

is So six It late. that should ago. been months have reallocation done

So we and immediately. that have be this didn’t reallocation should interim really period done

been find I granted reallocate. timeframe. I and been they even at very that if to have what the even still mean, not politically guess, hardship should a that’s is that I to compelled to a reallocated because debatable just think – I it’s a is waiver point, going be are devil’s that should play if this struggle do thought advocate to liability of even though, process have

for heavy summer I back we China more with compounding – even push as domestic implement the in US. a ban, And this Act export thing to of whole. is Trump that ban. summer season. or the come challenging President then ethanol makes get under cheap seemed Clean But very utilization be escalating think implementation increases the that supply-demand have exported towards the to obviously back right cutting smog why you’ll dynamic potential the stable been that’s the the trade more driving market So the that the that And that is up to with Air and for and the from it that industry off remove come a to I one contention summer industry during wars from

to of if So guess, the my had helped – those you if think you had you to you of I probabilistic, more overcapacity question would rank, which the in which is, do is current think resolve those three industry?

put That additional at not table under fuel on capped gallons. cap. that the is one the EPA the a a is would XX not standard, I and floor, that renewable factor is million

Yes.

to And going to increase so as on active billion as billion gallons actually discussion gallons. much is the XX XX

waivers is a that hardship be X small, issued The of is year refiners easily let’s higher way. discussed could for by the actively unprofitable and were on oil That being hardship. not a gallons waivers billion So say, clearly granting, under table currently the to done cap.

enforce law. no about And disastrous so let’s of simple. scenarios So all worry law, then sorts longer my is view federal federal we say, to view as very, you is, happen, very just can my we’re going enforcing Once right? imagine,

have only and intent can and to congress whether the enforce decide going to entity administration We pass is congressional – they’re that legislation. has

Air XX last to And have so renewable they’d Act up the do they to Clean Air standards. fuel so and far Clean of It’s haven’t years, in the so. open changed Act part the

to split especially congress. very see a it’s material standard, we’ll a unlikely I the So change with see renewable fuel

Yes.

dealing very with And we’re what simple. so is

have then and worked. what In system July, government, said and leg not checks the looks the they what had EPA in actually executive at complied one court federal law. third XXXX, The with that that balances has federal the we the does, and intend what a of that wrote congress

And is biofuels branches Washington, they’re more is much They’re friendly like my second we the of need aggressive that more too three the what the should and so and branch in hopefully. they’re – too just view D.C., corn this and government industry too makes branch treat have congress that’s it’s interprets fairly the And to way, nice. the these it. what do on the with the supposed moving to as in and third then collaborative deal it’s industry, to implement it. that that’s too EXX be they’re then executives They and branch causes But decisions, to find way common to in and biofuels policy have happen. The by that I said is large thought we first court toward unfortunate the EXX.

the may out know, about any of years in a going and we’re for set you XX to testing They procedures said, mileage. engines. EPA XX% engines Detroit, stopped months two to not ago, EXX get were ago ethanol that to higher EXX compatible the As about order engines go set

work EPA And require we because so you ethanol want are actually parameters, collaboratively the by up soon to to XX% that we’re engines testing set compatible. all tested with to going

I an the And level on forward. right branch was good audiences, in What we fully did executive easily XXXX it OPEC, side will but with have XXXX. originally to in with they intention or says, the court to they of executive exactly that the they have is all branch standard going primarily at is in billion renewable determine proposed moving an obligated challenge what XXXX, And think that says so end to science then not so There’s says, it’s the was different Bush excellent is they in comply. don’t comply if when language fuel there’s the done, these unpleasurable that trying that the comply. personally, the get EPA inconvenient that if parties I that at trouble executive understand don’t I this the think efficient by and can gallons market, in job mandates, the history. implemented. of reason, that has with, mandate And I to has think, we’re there the was things displace was nothing for the It up the branch George XX and no frankly, and

it. get I No,

Just completed gears, Are ignored displacing on timeframe But been that – just laws there’s through us have and for late shifting we’re I domestic federal of just than all now OPEC operational still it in the have remind that XXXX? the a would have would implementation. the loan, hopeful, lot timeframe? you production construction. again are the USDA and it’ll thought would path hurdles you towards you be of rather Could

to definitely will I get Yes. that.

ethanol completely might the business You the implemented. inputs made which very, very to the billion Aemetis end, I we order throwaway current cost to correction, our is ethanol plan mandate have reduce at comment at win – a where being that’s that is with, corn a agree environment, our which significant in of in gallon XX not cellulosic

are pricing to enormous characteristics. seeking be in the an demand winner environment with current We current the

the our like enforcing for upside. they and Wow, here the ethanol for all so way, actually intent equation congressional we by drivers get oh, start win And an That’s demand then, additional federal was. we the is, how do law.

So our are corn business announce of highest well as and the which ethanol – sustainable have stock well designing our plant, projects we most make delivery. is designed targeted profit, our models, Riverbank highest quadrupling product as actually ethanol to other value as we’re the the to at that free-feed plant margin, about basically as model cellulosic are

very that company. and overcapacity, So very, current current In would confusion is – talked financial to current as take prices, all the advantage targets about. model profitable be at hitting of emerge our we is still environment, the a our of business market of current the we the

Now regarding Riverbank…

the how one Since how level, that take significant been Keyes, weeks? having contributor? could for that higher above because like may, to by maintenance Riverbank which maybe may say, without run Are outside any the put at I it until to running your have some nameplate that annual if sec. clearly several revenue couple we’ve the plant capacity you long maintenance, up many bridge can one a your and you running, is upcoming, for you So until quarters a Well margin interject in of take facility you you just and is that second, that I they’re running, where just have bridge Eric? up get quarters Kakinada, back facing at Riverbank offline

Answering it’s two-part question. your – a

Let me answer the first one.

very I’m team brag and about them. engineering going unique a to have We

of engineering from head actually large Our including that XX came and cows creamery get Christmas. day, twice creameries. dairy and the very spent million-plus milked $XXX building industry dairy a weekends And in industry years

with plants this with renew the implementation have And corn strategic to the units. one maintenance operate the periodic us will it roll completely They one idea day so, we $XX gallons. of as built why employees. gallons the the plant low partner billion-plus maintenance, this so for solutions were their all in technology upgrades Mitsubishi things idea is be periodic of reasons They plants of scheduled chemical other run issues, company in necessary necessary. have the us. to the the unit roughly and process that implementation financing proactive XX came you it’s and the very XX,XXX plant everyday as compared software we year And in have corn but with is picked revenue this million our to we breakdown, attractive and do partner this such uniquely company, the industry. for frankly, and implemented to at XXX% built as as worldwide all have a with maintenance, is carbon provide is largest, plant. An out and helpful XX current is alongside system And up of per as picked have their for that ethanol other a Mitsubishi to other maintenance to All how million year. done the And able our ethanol to time. our implementation worldwide only we very we’ve That membrane high company

low our technologies, doing uptime plant was them. foundation it of So our the of implementation the to which of carbon order with now strategic, ethanol we’re be for several in

do point identify revenue India. other made I our we and We The India. million it’s in expands you upgraded, opportunity recently have think we XX to important that in plant gallon a built which is,

We on in India million government have additional of down there, in revenue bit. They country tax price entire means last oil called subsidize processes but up. price don’t of the if biofuel implementing. that’s up, that the GST. that so And structure settled been little year that the of oil The out giving to Indian up for the the July, crude $XXX entire us are working crude we a hasn’t that biofuels, changed they excess per price now of is get is is helpful which

We a are including plant been plan in position has full our this and India. in very that take very team We focused to quarter. healthy XXXX of India in advantage on upgrade completion, utility units

signed supply well of in British course, and, execute to them agreement we Europe. with to well-positioned a Petroleum in have be can we XXXX So primarily

that intermittency just say implementation. an address you that? heard pre-treatment with I was you the But there Could

have we multiple Actually units.

So, we into turns it have unit takes feedstock that pretreatment the the usable oil.

unit. We have biodiesel the

shut expand glycerin generation units, our three We to it are electrical the utilities, of and at be onsite run run the time unit boiler but able next to unit, it units. those then run major down three have had the them and order We a and shut to other unit, down. the our same all in rather and ancillary than

But able order constructed, And units volume the we rapidly. all before. that get noticed, scale now operational, we – quarter domestic be together. to tested, $XXX compared to year up growing but the in doubled Indian million-plus our in to and running to the is three So were exceed per the and market really you units year, we’ll

very in are names been you think, are as that customers would production And we up exciting to our capacity, feed scale project. by very we’ve our in some have national We in brand right that XXXX, I scope, know. as test constrained course, the we’ve now carbon lower-cost, low-cost waste for and, to right, as move plant this stocks. it’s a to doing made inputs template determination we’re Riverbank low And go what well, of our with Keyes at

So it’s The is price from And India unassailable did in at it been a help oil of not very perspective. despite I the time us all, crude India. think, now long much policy we’ve a headwinds. serious the achieved coming. of proposition value an But government some setting

Okay. right. All

this timeframe, have it secure, So secure to about Riverbank, then just – but potentially get you well, the finish you’re across trying back to XX% line. part

putting part commissioning operational with you of, about expect latter And there? some remaining. in of just Can finance you timing update You XXXX? the talked syndicates us do then together still

a that, through I expect to say the should month. funnel I taken us process; it took USDA year be it And because a to early XXXX. have get

but So excellent, now, letter. there actually get to we final commitment which we the need are is

So be the we looking letter. upon to based that and to final million financing should which then is would USDA commitment close move letter, we announce $XXX commitment

think What do is? the you hold-off

hold-up was of and year, from be year, the by office the We have fiscal actually got management would and it letter weeks we which The XXXX last was the the in expected in expected of ends commitment a to approval September of couple end budget. USDA the to September XXXX. seen

that in get don’t so completing a here they’re steps sitting approval and confirmation quarter. What of that do we to the happened. hand, document. we physical the internal We’re in XXXX us to We is get this the final November now commitment letter have do has have expect it and

Okay.

lower on consistently has of rate certainly your at least EB-X are blended that, can the just become? It question you crosshairs. queue. the has an what last football have immigration the takeaways political expense. I’ll give considering said a certainly update how could around And from one contentious immigration, There’s program media me, from us the you your put under is clippings get back things Here’s lot from help it in interest

capitalization. a Absolutely. company’s our part already material played EB-X has in

EB-X approximately X% We funding have $XX rate. million interest of at

a a was an program. have in our we per We response the are of And million that and to the And the in government process HXB in $X.X million. program. been people two an by see creating – excellent trend more the seen enforcement raising has mechanism Riverbank-related enforced pathway additional goals uncertainty our skilled million, we as EB-X India. the employment ten in very more program, Phase achieving the more worker federal of about initial administration the HXB EB-X positive the of are currently of for reasonable phase $XX the as processing HXB, a US, jobs without is a project. law is we Trump in that jobs two. same that investor $XX as federal closely find visa Of HXB very The has investors requires. excellent,

a the things place, biofuels able or announce course, the I pleased of of have months two is the of to we position uniquely a India. have positioned be rapidly to next And uniquely accelerate we broker we’re that. within in all so, and as are that. right but India happening in we a And are, now three that toward And very, to can’t especially very making we we couple an hope the in investors XXX relationships funding with at people pipeline. plant to accelerating that India, in recipient excellent will announce we in source, be have able that I number the are of India, strides company EB-X process,

so that month fundraising next more about even little the through looking rapidly. accelerate we And over some a that are bit or approvals the EB-X for talking be would as two we’ll the program

I’ll all back the queue. in Thanks, take guys. my questions. to appreciate get I

Sure. Thank you, Carter.

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

Yes. Thank you for my taking question.

starting the in do construction and Riverbank timeline, you past? think ground start may Going back to the actually you when breaking

start would already to engineering When the quarter the out expect The vendors, process quarter of in gotten looking we’re late to – We’ve is we the We’re I would Technically, see in be first in gone thing pricing. and dirt phase. sort moving, be of procurement of are expect now. the phase and all would that the second already groundbreaking, in would construction quarter. you the first XXXX. happening the I actually

think year still going of to you construction do And about it’s be one time?

first the and quarter working on think, and XXXX kinds of I in Yes, of sitting be second commissioning those plans issues. we’ll here

great gallons get your a can and mentioned to XXX guys to doubling units. million India, Great. goal think that see do And you quickly production, through How you you of to there? back different then going it’s you you getting have

did. an revenue million a gallon additional us our opened pretreatment we actually just and with stream XX It’s has up unit unit, for upgrades the

is just So have be be the and going We should British execution scale-up be completion a significantly the and going really we’ve plant year to either capacity. upgrade wouldn’t all of rolling Petroleum million online with customers by or operational primarily capacity process. to going just – constrained foreign opportunity our have utility getting it’s policies per by of with customers. our $XXX at a it’s We of really be this just It’s other to out that point. going our scale-up constrained with and matter

launching and closing call good could very even forward the And maybe it issue It’s and into have We’ll conference customers would up solid, as visibility quarter then well. pricing testing crude first business. a a scale-up. certainly very prices with new we if of nice wouldn’t first as I right that crude we’re we and number looking and rapid could really from very So see in stay get things a – seeing the as a oil quarter, we’re rapid. I better do oil now be to large very India. special And

of Then going Great. which of prices have in outlook, forward little business? to impact oil view obviously, how leverage of just your and a of in general lot India just prices, what’s might your had bit you But terms pullback. a that oil a your

prices. think, oil I opinion an everybody Well, has crude of

it’s give of you and mine just me many. Let one

at per demand I think in last barrels about has five day that million for rising been we fundamental in are the years. curve X.X supply-demand which a

U.S. is out And we slightly by myopic. here the U.S., is in and Asia, even down, so, completely maybe basically Asia. demand but flat, that little bit the coming offset And of Europe a are

little a crude oil in Cushing, We’re of down on Oklahoma. sitting amount bit internally-focused the

bit of the international oversell, market drive tend somewhere U.S. whatever, Basin that’s investors price Bakkens when Brent of of out crude than and looks $XX oil. primarily But very so quick a or out at panic the crude to have Europe my – And and the more coming oil gosh, little says, extra the Permian of expensive or crude quickly, we coming down

and I’ll some truing start U.S., difference the more two. up they between think, buy the I

per year does of So make going every additional major price are eventually, pretty to U.S. the U.S. to having the American the fundamentally we up this be oilfield demand. reflect by And for in million much overproduction X.X producing having barrels the in outside decline

next with of the was over small years of what’s vehicles chief British at Singapore Outlook. And that from will now, be plastics BP a just so XX-plus the conversion look economist They unassailable electric demand years probably oil barrels per Energy I there BP and World to is XXX the in of and day from everywhere crude out places of used the And Annual because that XX CEO many else the in of and Petroleum Asia. million despite in over XX crude chemicals years cars, oil economy. now the is

up And a it. met demand with supply, has be currently so, that which that keeping by to is barely is equation

now crude are trying blowing oil to political move up. right back very strongly the winds price of the So get to

meeting that noticed that. OPEC have this week to do might You is exactly

an is not And talking crude the $XX-plus even going is is cetera, nobody like comfortable $XX. $XX $XX think is $XX sanctions about oil. hit they’re there Iran et everybody Iran It ago, $XX it at in Venezuelans $XX place, to a seeing that about and month to I $XX Brent. comfortable it Brent. or $XX to going or oil, certainly, talking What crude Saudis, would or see be much feeling I’m with So closer more and be to

$XX. So the I’m Intermediate is range we Texas pretty U.S. that predicting should West to in. comfortable $XX prices be

yesterday. trading range of election We’re slightly the because the below

if all. you not too spot, to $XX goes Great. there, still just But might $XX it you And mentioned then be at at good high sweet being sweet do that it is your around that see because that’s spot? a

very get I biofuels be investment incentive view see work. there electricity where cars exactly get producer, you they we transportation. don’t in utilities say the that biased infrastructure they $XX, are to $XX, of drive and from least a then right. oil, such would on or up we electrification a probably $XXX they economics something in way low grid do of crude irrational heavy to the market to when economic free biofuels, will infrastructures. in to electric supports the At uneconomic you $XX rational don’t everybody up government a the car If investors, work for that that or $XX, – currently $X.X has by or behavior upgrade if I their really really just cars. economic without even But subsidies temporarily renewable, these the like panic strong $XXX $XXX, industry car strongly spending at end trillion $XXX, that support all emission the to carbon It’s uneconomic, invest range. electric think the

the of window. So I’m personally a to fan big $XX oil crude $XX

you, Great. good Well, and thank luck. you. Thank

your Thank appreciate you. questions. I

go investor. Our next Markezi private from question [ph], a is ahead. Please Anthony

give Hi, you have on update an us Eric. outstanding? that litigation Can you

Sure.

our approval to acquisition ago approval, eighth this made agreement made worked very they we they very, get we determination very if the EPA for of, and When to one valuable, have was acquire which years breach think, We we an to think math the in hard I out company. seven, I completed I did right, definitive signed which that two successfully approximately after the Edeniq, company a the received agreement. this

years and found I might that for include to are that We out stages but that both positive We’ve trying They’re an our feel being two in two there’s be good in very of grow settlement a think advance We comfortable we outcome they’re companies. litigation. the And would with company. and things last small are now nothing, years. later very said, position.

and positioned the on business to bring are relationships could excellently deal our We are something there, we that financing Edeniq. growth with think, to I execute do we

ways technology be the the goal at our the their and we’ll one our carbon reducing of our plant. value It’s of we do that implementing fuel. increasing of have So Keyes content

process is will deal that So the certainly we court takes there’s to of might be business and is are I part attractive of just become expensive And very expecting too the and litigation that, the currently one as we long. move the a had process. for always us, It always and alternatives hearing forward too that toward actual conclusion. think be that

more the than years filed there But we of Frankly, we been two at. negative work enforce feel to we has when a comfortable been of originally get back it’s So contract. now probably September did we’re where no lot surprises. to XXXX in

Right. Thank you very much.

Anthony. you, Thank

Our Ozer question Please Sandlapper is next Securities. from from Scott here go ahead.

Hey, good afternoon, Eric.

Scott. Hi,

I went Anything being XX%, noticed that? XX%. about interest that done lower expense up to

is US. investors slower principal interest has administration the create jobs foreign the initiative use Yes, It’s I’d X% the out to to their to capital I than the signals been would our confusing to But in wish debt. like who very put say, higher with EB-X year. current replace debt this

is tremendous here, And And guess, interest. to to as if as the clarity H-XB and has more – still obtain if want they’ve seen retain gotten their helped amount. a rapid more and I more, difficult and come around of in creation investor uptick enforceable, jobs us so, that or in that become actually investment more fully the fact a EB-X here have you’re to visas you we’ve already

be since months. just it’s the for see We summertime, well, positive such four – It’s in to exciting last EB-X the would us. positive on really well, seen the developments movement that have – just

the full the USDA; production, look So Renewable our of works: and interest Standard. expensive debt revenue the up company; the to with of long-term and bridge the longer-term with scale replace India for continue frankly, business plant Fuel $XXX do which adds financing million to plan our X% to XX-year rates; enforcement Federal

I the to biodiesel the become and would look you California to done work both should say, in Cupertino, have company that stepping producer. investors, happens industries For technology into as Aemetis general, corn ethanol order a a in of difficult at

both to now low significant are supplier $XXX, lower-cost haven’t accretive And saw actually also being that technologies we’re for while take credits blending unique standards to in see that technology. are We the as carbon, value, public and that’s commodity could company just lower as we absolute handle markets, we credits. complexities I $XX the up industry. private with able not advantage of that couple yet year financings the California implement a be sitting an break-out the higher middle tend to projects and and And in to of companies at able was a XXXX, carbon the the very necessity. So of to a announced company those fuel of from

Okay, thank have make the about you. might Edeniq? comments any it, missed did the you I update on legal but situation with

priority. decision, we’re relationship mentioned, both I actually near positive discussions settlement court and making getting but for very be we’re frankly could the high Yes, a business a companies that

So thought always and disappointed we’ve very to of highly opportunity when unable the close we at two we years the Edeniq were very acquisition were transaction.

and have So absolutely about all we’re of years would for companies hard at looking good be for no both we feelings something expenditure. the that two

We’re looking forward about and with feeling very positive them. we technology their along what could with

Thank All Okay. you. right.

to session. This to the back closing turn I’d comments. any concludes over for Thank the floor management like question-and-answer you.

a you those shareholders, speech be Advanced analysts the We joined see much to giving industry is to Leadership these our very lower products. about to to our you XX:XX looking in XXX in the at San of at emissions, to Biofuels Thank forward a who there. about Conference keynote opportunity forward tomorrow in us we actually. morning, with I’ll with look Francisco, we’re bio-economy significant meeting produce carbon continuing to very the today. higher-value And communicate what leaders lower-cost, market

review the the visit of Aemetis Aemetis attending audio for Aemetis version this Matt? where call. Investor you Please earnings and today’s a business Thank earnings post and written update. website, of version we’ll conference section

This teleconference. today’s concludes

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