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Aemetis (AMTX)

Participants
Todd Waltz EVP, CFO & Secretary
Eric McAfee Co-Founder, Executive Chairman, CEO & President
Edward Woo Ascendiant Capital Markets
Shane Martin Stonegate Capital Partners
Tom Welch Ameriprise
Call transcript
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Operator

Ladies and gentlemen, welcome to the Aemetis Fourth Quarter 2019 Earnings Review Conference Call. [Operator Instructions].

As a reminder, today's conference is being recorded. It is now my pleasure to introduce your host, Mr. Todd Waltz, Executive Vice President and Chief Financial Officer of Aemetis, Inc. Mr. sir. begin, may you Waltz,

Todd Waltz

corporate Thank the earnings you, Earnings website Fourth 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 Jim. on presentation, conference suggest at is download visiting presentation

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

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

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

XX, earnings of discussion for of to financial will Our call a measures which release ended directly comparable A available XXXX, include most December to is included the this a our as the the is supplement results review in GAAP. on on on measures based our non-GAAP reconciliation non-GAAP measures on website. GAAP quarter

on tax intangible expense, depreciation litigation such to compensation contingency extent as expense, is and amortization deducted defined plus income accretion in EBITDA calculating expense, loss income, expense, loss net net the other expense. expense, on income loss or share-based and interest Adjusted extinguishment,

gross ethanol XX, the at fourth results was XX, I'd ended fourth per the for gallon increasing slightly Now Revenues sales to increased a $X.X $XX.X to to of profit X December X compared to during The market of $XX.X a for ended $X.XX India the ended of same were review the of December $X.X in XXXX. cost XXXX, period prices million $X.XX for with the rose gallon gross months per December XX, loss XXXX. $X.XX improvement X million was profit plant, quarter during months attributable XXXX, along XXXX during in $X.XX delivered the during periods. for corn financial quarter the to from to Gross respective of from XXXX. for the compared the the XXXX, where same quarter the million fourth million months like

Selling, general during compared compared $X million and fourth loss $X.X quarter million operating to were administrative million fourth XXXX, for million of quarter XXXX. the fourth $X.X the of XXXX. Operating to profit of of $X.X during an fourth of expenses quarter the XXXX was during the quarter

Profits in of of at quarter the income the $X.X tax negligible during quarter an income tax expense of XXXX. XXXX India plant to resulted during fourth expense compared the fourth million

of attributable $XXX,XXX $X.X an of Aemetis to XXXX $XX.X a million interest million additional total $XX.X for $XXX,XXX for net loss fourth $X.X Net for net million loss a of quarter for to fourth with noncontrolling the loss to to of million. of noncontrolling was attributable total the an XXXX, Aemetis to net interest with quarter attributable attributable a compared additional loss

to quarter the $XXX,XXX of Cash quarter XXXX million of the fourth compared of $X.X end was XXXX. fourth of at the end at the

the same XX during XXXX, ended India. primarily December was sales the XXXX. for revenue of XXXX. the sales profit to million biodiesel to increases for XX review XX, million and $X.X increased attributable the significantly XXXX, the XX in XXXX. to production compared was in months ended Now increased quantity glycerin biodiesel Gross months period to period $XX.X I'd results higher million the $XXX.X in like from for months financial Gross XX% Revenue ended profit in the same margin XX, and XX, increase $XXX The India. million compared attributable in December to in and for to increase December

The Selling, offset that million and administrative XXXX, selling, grant operational to period fees during receipts expenses by general and the to reimbursement. December compared the ended in general were $XX.X primarily XX and attributable was expenses administrative professional were fees $XX.X months partially XX, expense same for during million in support XXXX. increase

$XX.X in an million was to for XX $X.X loss period loss the XX, of million same compared XXXX, operating XXXX. Operating for the December months ended

interest, resulted of expense the months tax Aemetis loss XXXX at of year noncontrolling attributable to income net in $XX.X compared period loss interest net same million during for during expense a million noncontrolling ended for of was of Net XX an to total XXXX. the $X.X XXXX, tax $X.X a plant Profits attributable loss to during Aemetis additional India attributable $X.X XXXX, in compared the additional million million $XX.X million loss to $XX.X a million. of an to with XX, for to total attributable $XX.X with the negligible net an December income million

That review. completes financial our

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

Eric McAfee

Todd. you, Thank

founded biochemicals. supplying X our you some company, on background a renewable moment to and let carbon of brief focused and fuels and be of XXXX provide low lines may was Aemetis carbon information. to now below-zero business those me in who For new take have

of plant Our and in capacity million grants facilities ethanol $XX our in renewable are: to per portfolio biofuels, production capacity year and To X lines the XX in gallons than ethanol, to of increase We support this gallon more renewable million value efforts distillers the our Included a plant. our near India. advanced decrease ethanol, biodiesel, year grain energy is that costs other California million we XXX renewable and waste Modesto. fuel year and awarded carbon production natural of corn oil U.S. Keyes, upgrades and our business located support dairy been reduction California, with own gas and have biofuels. per our of operate about wood efficiency

digesters also built, gallon Coast and launched of year East million We distilled build refined a by displace near we natural fueling renewable negative content to install India, year production ethanol a the digesters the plant of dozen produce plant port $XX a at per a renewable and Kakinada. carbon dairies California, glycerin operate to About in biodiesel signed near and ethanol trucks. about local the gas our capacity reduce equity City connecting natural conditioning pipeline our and ago, gas carbon a of a to gas, construct biorefinery the project natural biogas XX gas to on diesel funding and to million own our

participation permitted pipeline XX under digesters is X to dairies, signed have designed a connect at We plant. that dairy of about cost have with built tested now construction now dairy X-mile and and a and $X digesters agreements the lagoon to ethanol million our

financing cellulosic fund In year. XXXX, in wood to facility ethanol waste term signed production California gallons orchard XX biomass convert advanced ethanol per we and million of to an into waste sheets about other

these more of waste are $XXX than more and the financing growth cycle construction This dairy and ethanol We final project of to growth to initiatives now prior revenues annual flow million increase $XXX commencement production as completed wood cash year. and and -- cost in well than per planned The of completion combination and our in sorry, reflects and I'm flow million of commitment projected procurement reduction of revenue to natural the to expected plant. upgrades existing gas and year engineering as are renewable planned new per of completion cash facilities. plants certain the our

With each prices, of XXXX. made the Low Carbon our California progress in California of strong consistent continued X regulators businesses support Standard positive Fuel credit Aemetis and during

biodiesel upgrades pretreatment unit a upgrade of investment plant enabled per that India capacity. refined in new production the lower our The renewable the year. other review billion installation which plant biodiesel glycerin target diesel in boiler national XX is capacity first or total into to gallons process X.X India the years full including construction, business biodiesel per Policy India. operations of we the the and export and in completed less than Let's unit, The of gallons using of is the After equal oil. XXXX, out pretreatment in to new more gallons National of market, also year. expansion The million outlawed import of of to diesel thereby diesel year biodiesel biodiesel biodiesel. gallons blending or encouraging or is plant India, waste now increased policy of X towards XXX and X% plant unit XX into The domestic per and our than Biofuels X% million approximately cost about expanded fully in of operational, feedstock billion per India the XXXX market year, early feedstock

last On grew Biofuels XX% marketing the May in biodiesel comprise supply companies the government-owned subsidiary Biodiesel to XXXX a was oil oil X X contract tender marketing shipments year, to India plant. the of a India began at Universal announced in our of companies we awarded public $XX that process. May with India and million monthly about revenues

this to single fueled with marketing trains trucks, consumed lower fuel biofuel Under as with a India, low country. even biodiesel generates the government potential up are about in represent emissions emissions. customer in the cost India companies We XX% because XX% biodiesel lower oil these X particulate our largest has diesel pleased of group, that this extremely arrangement the and sulfur contract, particularly and supply buses throughout and

cash Aemetis capital of at debt Aemetis and to India may as long-term earnings revenue projects. any ownership created XXX% the renewable expenditure expansion while at senior a debt subsidiary owns funding achieved the India provide for India use the company upgrades our up XXX% to ramp and dilution the of the other without plant, and parent We shareholders. repaying and result, from the the subsidiary, fuels repay Aemetis' production effectively

and Additional biodiesel purchase biodiesel are XXXX, participate requests oil expected these company for under supplier for we as year to expect continue key contracts. to a marketing

January, the is biodiesel demand has to the plant lower expanding crude to cost per driven of year Policy. of than has increasing decreased the and Once becomes the winter the primary biodiesel biodiesel million the capacity National months now XXX production due to high gallons capacity from growth committed the fully price the India, by temperatures colder India $XXX revenues oil. seasonal its XXXX meet supplying million XXXX December to fall feedstock constraint expand grow Biofuels India, and in footprint to in the that year in on in of weather the revenues markets During late global more India per to and the to existing in significantly

the India, increasing progress revenues the businesses in milestones sustained major X In our toward significant addition to in and U.S. profitability. achieved

the to our we added of California the in lower increase the Keyes, of Similar a business. we review significantly input our our use supply have we to gallon billion plant California market. Let's ethanol strategy India, and reduce carbon biofuel waste of our to allow the biofuels, traditional feedstock California ethanol lower-cost been a intensity technology where costs, to produce ethanol the ethanol to value upgrading X.X

been fund awarded of upgrades have renewable lower the Keyes to the content grants gas carbon to million $XX year about our We increase profitability. the our past biofuel in and project and of to plant

from month costs. the the X In without January effective Carbon of and were intensity emissions X, carbon carbon corn XXXX, operating Fuel in value generated about by credits May last per of Keyes Low increase year, The plant an additional California reduced of ethanol points. sales as about successfully Standard our $XXX,XXX under

adjacent About plant after plant to produced fully upgrade is ethanol build users. into have January sale COX and plant about plant completed second the QX sales cash operational. leased COX $X.X the COX Gas ethanol plant and to XXXX for COX processors, the Keyes per in year by is COX capture operational, When to of liquid and from renewable local X producers equipment and acres convert plant. the COX per X the project. a revenues a is the to COX development, expect Aemetis plant year liquification plant. tons other reuse Keyes to the of project lease Keyes be owned The COX received XXXX and will COX years capture for million by piping food for industrial our Linde the We beverage land of in approximately to COX the expected After XXX,XXX

and also reuse for We that to qualify capture than expect worth we is carbon credit more COX a $X per million tax year. federal calculate

an We the are to tax currently partner. a working on credits arrangement monetize with financial

of by and of at dehydration for plant. technology Pacific implementation the grant was a an is as system, upgrade to Mitsubishi Chemicals ethanol Mitsubishi construction ZEBREX first the financed Keyes $X and and million estimated decrease of in flow. The third the our unit a installation unit The ethanol to $X plant to strategic the million cash $X.X is is the Keyes of once reduce membrane petroleum and delivered dehydration The significantly the late corn gas a usage million to process. plant of designed is February Gas Mitsubishi increased Electric Japan, time an the and, XXXX, ethanol year carbon generate intensity implemented, per natural in expected

carbon of solar the the to to sources. energy the an Commission. California through energy Energy intensity carbon management energy grant microarray will received upgrade solar fourth $X higher intelligence a and system A our of the artificial displace plant use from Keyes is system biofuel solar decrease This million that

a A Gas grant. fifth and awarded $X.X million that project heat was Keyes high-efficiency is upgrade Electric exchanger plant Pacific to a the

upgrade EPA was natural that Keyes occur And to profit system the plant reduce gas million Standard California the from a per plant including to and federal increasing number impact is use a enforces $X of costs combined by at targeted up the projects significantly. the Energy gas $XX credits expected projects if Low while each expected operating at be in Keyes recompression is the to These are generated year usage is plant, cash grant improvement sixth the vapor natural petroleum The expected biofuels to mechanical simply laws. of to to Commission reduce XX%, the in awarded that flow Carbon increase Keyes million these Fuel not any margins a are year. that

XX% digester pipeline natural dairy Let's on commonly earth's briefly the carbon methane late gas law is up methane XXx to capturing at in that trucks emissions and systems. XXXX with grants carbon annual diesel is from heat. to to replace and known potent emissions the build funded reduce biogas Bill about reduce mandates than be Biomethane To fuel of a Biogas from $XX dairy Senate million to Methane, gasoline as biogas and XXXX, sourced dioxide California's to powerful review passed emissions, the Along farms. California digesters Aemetis air California can the of as more buses About has and that known dairies matching project. California or capture from significantly our ponds damaging are greenhouse waste dairies used State dairies. mandate, in related of pollution. gas,

supply only X gas in ability capturing ethanol is Based truck biofuels X relationships biogas pipeline positioned pipeline is natural to and into manner. with generate on animal injection dairies use We about reduce utility intensity infrastructure and and value plant believe while from excellent XXX that electric the our use feed this California converting create of lowering it vehicles. who uniquely for existing believe change, fleets dairies in dairies and an can for carbon renewable to costs as diesel Aemetis biogas in that our climate are is completed, ethanol obtained negative to existing way until we approvals and companies

matching California year in equity Department a XXXX, work, a of than award of say, we $XX million total equity grant expectation and we X more plant project digesters second of connect financing natural build we this XXXX. X from project. and beginning of was -- this the dairy million revenues pipeline $XX earlier development grants of After are for quarter, year, during of with first X-mile dairies Construction a financing the $X million gas in digesters Food of now I in renewable announced our earlier Agriculture should to about and the quarter Aemetis the with biogas the announced financing the ethanol and to the an of for X building first completed

digesters of signed have by XX the complete with XX lagoon agreements end the and participation dairies construction We to XXXX. next plan year of

was largest by with biorefinery, expected in ranking The gallon, gases #X byproducts than a Riverbank, Riverbank, project for that the an about well in a more as #X were a patented at LanzaTech first ethanol the now about named wood period. in Biofuels for from ago update in that technology. under advanced $X cellulosic near our below-zero California. cellulosic with China We pleased the is to the high-value Modesto, fixed opened contract waste-to-value be Aemetis ethanol fish ethanol. $XX commercial Let's biofuels technology our development year world the LanzaTech of California price, carbon gas use finish Aemetis meal project production production and to ton walnut in The converts our earned ethanol result per half XX other per waste contract cost project of of of Digest, publisher. world's production as plant daily as a a steel production low-cost almond its as years Northern of and of that and the valuable worth the produce full plant microbe waste Planned on

XXXX, XX-year financings $XXX Agriculture A States offsets waiver project: Department million million conditional and project, tax program. a funding California debt Energy Riverbank million of During the and required the to commitment grant United significant announced financing XXXX fund signing of equity a Commission for equipment, related the X the letter under that $XX.X Biorefinery to for we a $X engineering

of for more construction low-cost ethanol more cost. than $XX required generate work the the will on begin per are focused and engineering construction contract. expected required Riverbank include feedstock. million from than the on of cellulosic ethanol bonded to wood million Riverbank waste, flow the as even We that $XX The The is procurement and a and signing vineyard, of the maximum financial construction contract for cash of to completing the construction producing negotiation plant of the engineering dependent year orchard, revenue plant cellulosic positive completing of EPC is demolition closing by plant forest

In in during unique and renewable are XXXX margins begin holds position summary, in markets, plant diversified at India. ethanol the the achieved begin at we cash realized low plant deployment believe our long-term clean carbon, repaying related India project Aemetis a and growth production LanzaTech The in first profitability the technology X positioned to flow planned debt from XXXX. digester cellulosic attractive Biogas Keyes India low produce patented biomass feedstocks. expected production XXX% And has carbon second of The Riverbank XXX% the low-cost, quarter while upgrades fuels increased Aemetis that with to gas our of burning, renewable XXXX. be revenue in fuels biorefinery was to expanding quarter dairy subsidiary. to pipeline California profit of our is the the of high-performance plant and Aemetis waste The expected second in to of abundant, production of from from rapidly positive the

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

Operator

Woo Instructions]. Capital. [Operator at from first We'll Ascendiant Ed hear

Edward Woo

oil is and oil question very, outlook obviously, and headed What's you been ethanol think has on where market? going weak is, best volatile. My obviously, to affect, your very how it's the

Eric McAfee

as the long-term decreases, take price the I'll When and the sentences. a distances we'll the people is talk for about couple or answer well. of long gasoline drive will give incentive diesel not short of decreased medium to Then you It term. first.

pickup instead house energy truck X and that and undertake grandma's a So tasks such trips extra or SUV X motivated of a vehicle to intensive, that go month. are and go or small take to every buying as they more an are ahead

drive XX% people to drive significant in the at with So for the is a pump gasoline reductions to less. prices not more, incentive

example that and of California a impact blend, we being is mandated a XX% an with So blend. the are medium long-term ethanol

today United the is XX%. across average Our States

lose consumed long more not very So frankly expensive frankly, gasoline drive as is And drive is very for cost good inexpensive. people as term, larger in This who this some increase highly such demand to when is it's very, the for vehicles, electric miles, news for justification biofuels. of vehicles more fuel and is biofuels. their a medium bullish

to carbon for people difficult biofuels Standard more because more. use trying Carbon that carbon-intensive are meet programs it reduction Low encouraged And these diesel use to makes to it order get and goals. less gasoline blending in to Fuel tend people therefore, So is

an crude in it's they've to to shock production point to for time, the frankly, days Russians. who's is is Now very this capacity I before term, in dispute the oil you they necessary, X-year this in are in proposed of of oil said decline X-week took low to June have the the and be oil, frame, $XX Saudis per harsh, to XX saw to all of some million of in The the to ended that the before. for worldwide. potentially price control going having it to in done system. get cooperation. XX the January X.X going got Saudis crude about we've and Russians we picture This market short from time day and think a make time battle its indications public, which XXXX, started XX-month that and day, scare it and very a backyard years seen And quite to it million now fall increase XXXX, about about X cycle. the took the $XX of was their barrels It kind to And barrels it to per a

a The Russians $X, Russians are cost are about of crude to Saudi's production. estimated cost much oil stuck higher $XX. about with be

as the and each the Russians price little to long want this last up. as war Saudis so beat will And other

saw as XX as We that could last Now months much time. last it last a year.

going quick. Putin took the that And Mr. at to I and come back XX-month we're that think Iranian Saudi and surprised compressed he just to said, and happen. to Salman oil agreement, Sachs going it see rather think And Goldman he crude X into head what's we might running look, $XX days. that's cycle, to to be Mr. believes Bin quite $XX we're going this, Salman decline basically and to price the I he the it do now. if do we're with Mohammad

of does Now to economy. different national recovery as all relatively countries a sorts see we're their realize what $XX oil going to to come crude rapid

kind So oil we my year next rebound X, crude for could bear to of as in the personal their projection upside could month or that to there's a But prices think this a overproduce. Saudis the dispute. I is we in of a have political to rescind shocking just prepare decision have come where

So other political no it's handicap for Salman news a watch risk, on Arabia. way in there's to Mohammad it than says Saudi out just really over what the Bin

on The decrease have Now of short-term are time, had slight a It's the in the we impact ethanol. in impact the on At costs. Chicago price. ethanol is, our slight $X.XX -- input ethanol. in Trade very about decrease decrease same we we Board a for

We of are and saw prices gas, a major fall. natural gas we consumer natural

a of corn We reasons, consumer are for corn prices, variety a of and fell.

our our proportionate so cost input And ethanol price. with decreased roughly

the sitting losing we a we of margins. January So actions refinery our price in overturned this element prices. different Federal EPA in as are issued. of Court the dramatic that this And that margin a or of compression regarding year, years And X had much with a ended pretty most in exemptions EPA were the no is oil crude small last were XX which of result that by a the compression actually court battle fall occur driver as of

going how the plays whether that more But has than are a -- be in for decide of will The EPA that million more RINs, of EPA essentially States. -- are delivery out. X-week have of comply they biofuels reduction of physical we'll intended or numbers traded, impact the see XX% XXX avoidance they're called in gallons. delivery with buy had extension net U.S. to demand the court mechanisms which not pieces Thursday, and to the about potentially the to United increase of that appeal the until to in of entail said in order, that ethanol a publicly, for physical up physical last the dramatic gallons marketplace And and in the not. it paper would to or asked the The

gallon So a very for a RINs the at a at prices comply in million reduction XX this the by element be in requirement, bullish gallon physical marketplace without million increase changing and pump XX% the the to year business demand the all. with ethanol the would XXX

sell And the for here's about We at $X.XX. our is why? product after pump $X.XX. customer roughly taxes paying The

We have XX million plant. a gallon

is from million, And $X $XX truck company into pockets the drive to companies. a store. million, $XX plant over a oil our rest a the makes paid people of who So times retailer few million, the of few retail million, that goes is to the the XX trucking the makes

we actually federal at -- the time improvement a last every So without the $X.XX quarters. they're changing the business, our price business, pump, And could ethanol law, see that EPA made X easily. $X.XX $X.XX, dramatic $X.XX, margin of the the enforced gallon per for quarter

a about buying $X.XX, not owning would which law, We calling companies is years about for for our that telephone X make by supply positive cash only and is $XX the over Obama the make million and is violated, oil equation, not ordinary which of actively law us and illegal $X.XX that last under year demand equation have X in And we, flow. by federal was the for existence So the a enforcing in our been issuing for industry. when years it waivers. then Trump under It's in product.

in they Court, said the XXX-page opinion. If their you what listen that's to Federal

Court. when my summary of more by customers. or Federal status, should happens, the that's So realization profitability has be sooner that the balanced EPA's determined our reflective the of been with current And a later, Federal awaiting that margins of our Law the enforcement we're is of the sharing

Edward Woo

that, said next Great. within be that should weeks? And you the X

Eric McAfee

the fail is appeal and decide And process to weeks. it's The be court have reason a to that's decision months it's they why support -- a X decision, the appeal fail. the by and shut whether They're to two to XXX-page takes going unanimous open will to case. is expected the in the X appellate expected that it's next in

laws of to a anything the really so Supreme or in not with for there's Court And conflicts of deal question else. terms

this So heard in that loser. it's a and on the treatises guaranteed read I've legal topic,

a in, industry in a so and against to aggressively fought political to the reelected case season that President biofuels idea be wants And of not major a States. lose is farmers guy for just players great the United was we're against who

not sense So January. oppose the owned that would all it Icahn. that implement makes political by court refiners in fully only really Carl the one and There's EPA decision no is benefit, X at

whether is And Trump by critical mistake at we no think for mistake makes just And exacerbated extension administration the March seeing. that all worse But was March for so the appeal. should and date. going way, it requesting enforce That's made EPA date has I by they're the the would law. waiting the It or a actually for we're -- is appeal an state either days. in political XX, sense to XX that from of so. know days now, that filling which the an the XX made how do the XX by is ask to and law

Operator

line our at next of We'll Shane Stonegate. from Martin take question the

Shane Martin

kind guys any overall have and guys kind if India -- it's you coronavirus the demand are also any give by of any? I an Just kind thus both as of all, can Can at guys there's is of of you But in far, that as concerned. been to kind operational if disruptions if hampered, innings seeing? of terms color operations how far early know India me as you impact

Eric McAfee

in biodiesel take some a over was prices decrease the a sold that that, replacement in caused is being of for coronavirus would direct demand India, basically fighting and upset historically, the our The oil Saudi-Russian diesel. have as relationship. They're Yes, good a XXX% smaller have it from a coronavirus because I we question. derivative impact market. the

diesel, the country. warm So States blend with is in you a unlike United biodiesel India where

about on year, for so are And a trucks mining product tanks. fuel. trucks machines and XX construction and use machines petroleum XXX% months diesel our the and buy actually our running have our -- their any don't in They that

highway construction, terms COVID-XX infrastructure demand major selling in the so India not immediate has equipment, we're environment. tend et is of as much listed widespread cetera, one And sectors And reduction. the to, They or impact more so and mining, not shutdowns not to the countries. have don't in anything that noticeable be specifically been in development yet. of consumer the major India

build demand consumer So to not who we're are particular our because at whether contract market, to selling more to have work people driving response not. to under And going things. dependent in or muted businesses are really all probably and on we're we're a India, use

price the crude commodity. oil lower-priced that though, a against of we're competing declining means Indirectly

have XXXX mandate X.X country billion to encourage in is in and the has capacity. price this goal expansion they gallons. production specifically to Policy try the set And Biofuels to a to our us Now going the gallon million that's XXX a National capacity of reinvest entire

would million Our to like and current XX gallons, it the million XXX government be capacity is gallons.

country. biodiesel So suppliers has X tender about in manufacturers bidding this process, the We process, founded this the association.

us And both for able but that relationships profitable our to a is be So that in all is expand like also And the should X-month revenues to to, supply up price enough which price process, our May, enables expansion by of a well to that as of last seeking it operations. suppliers. we have process we'll growth and process, not with have completed tender was X- the are a with profitability those reinvested profits. to as end is result to year, attractive, probably only be be this and

Shane Martin

charges for to like support you are then more for going And going can specifically, as an idea me great. mean outlook as look Okay, I forward? SG&A far for XXXX? operating what the India that the give segment the

Eric McAfee

going operate staff very else. all and India a everything overhead, estimate legal to to is million $X and for accounting I'm in. less in than inexpensive and country

Shane Martin

switching can to the you've to of cash idea in operating $XX $XX the outlined in you idea QX that an are maybe in in as give Can I of cash online this flow, market, could things in million of the year million increase of of flow. -- kind of how here increase that over kind then and give in year. come -- the operating then line XXXX U.S. an kind we much kind later And give of see fall and idea know in you some you well? of XXXX Okay. an Can going kind

Eric McAfee

And quarterly improvement year be that perspective, a number. a out you haven't end I we'd that do this rate. of have let the me come a annual number about an Yes. run concept. looking but we've rate at From $XX published, of rate give with accomplishing run we million a run by from

our exit. some solar the is this We So the third, going would project well. built get And some be to as fourth we in scale looking quarter. in that assumes up some to in second,

that vapor month cash we'll million project, So $X a year exiting with improved The flow. project. XXXX project be recompression final is which this -- mechanical a reconstruction be about would of

we And layer up get the some roughly where $XX you with on to million. when expansion, that's other that continued

XXXX would place. full with exit $XX in the be million So looking we to

Now accelerate I we that gave quarters. was frame. X time can frame The you time

tend so pretty and financing that. process. to really administratively subject to And we all can It's accelerate grant be slow. the Grants

we reflecting scale be making could the giving actual are construction that. that. that than half cycle I'm a So to process. is just accelerate you But efforts really year The concerted quicker

upside that improve not by law, fourth run $X.X the Carbon run of at rate, would input per that our flow XXXX more federal creating Fuel approximately and of without million of projects monthly just our decreasing the instead But enforcement all, XXXX our cash Low by being So ends benefiting month by is we rate. costs. being Standard the any bogey EPA up be quarter of second quarter it would

Shane Martin

kind of XXXX. does of you? me, for Okay, kind question of how that for like then outlay And What that great. is kind you CapEx of the growth CapEx last look And much guys? for for

Eric McAfee

talking let that we're add -- I project about up. the it Can it and MVR Yes. be and we it'd I more basis think number do on If me aside, that take because a put way. helpful

We to have $XX million already that could and in we Aemetis of what and Biogas, equity approximately debt, filed subsidiary. get which a grants as million has as commitment a between we file, $XX subsidiary, expect has much we no has

So $XX about million $XX of equity, $XX million of grant gives a of total million. budget

funding And So we'll phase. south in we're source dairies out of the so is XX budget the of CapEx are State it initial of $XX is subsidiary doing. year little next California is, what a build which half -- about of over comes that almost so our or from the that spending million the be $XX But million. supporting to grants, CapEx of

XX% The other then half interest us and capped debt flow operations is of subsidiary, cash we from of fully without instrument. capital, this XXX% nondilutive the buy and any in in equity it's the initial the capped. redeemed, not back, It funding, equity investing it get it. have just our cash then automatically we it's where and from we sold receive a doesn't It's preferred And It's period. after at we flow.

with up have and budget XX% from XXX% operation don't the ownership actually investment end by flow capital the we parent we a upfront So company, provided get the of of project. and cash

when didn't going oh, you I dilute to get people go somehow have of this or to is company think, So CapEx, otherwise. -- most bunch to it's oh, or to going have say a debt shareholders

and of equipment our gap. automatically funded Mitsubishi of grant up being grant self-financed one million PG&E with the some $X.X sort each a of financing. activities the their mechanism that as made finance is structured XXX% the have mechanism We through bridge

increased since structure of So about of of the self-financing number went a actually out is And in we've shares NASDAQ even think on that in Mitsubishi we're -- the we cash plus grant flow. XXXX. it, paid terms I financing outstanding

and intensive even And of than model capital a maybe since outstanding to of achieved I of other can't that, But I our that's completely we've the models. perhaps been of we number years same to have company that focus some proven is in while eliminating actually revenue management biofuels actually we've or shares is roughly energy. think companies approach think can in make achieving very, significant unusual. a minimizing it our different other the -- work. it And very now X quite million. now biofuels have operate been any has expense that's business shareholder growth NASDAQ, business on So dilution significant $XXX

Operator

take phones the Next, from of Ameriprise. question the over Welch line Tom coming we'll at a

Tom Welch

Great costs.

landed see million. I funding round, that your EB-X approximately First second Is question, now that correct? you've $X

Eric McAfee

expanding the this million about projects changed activity of to though, year. We're That's in November $X last whole favor offering the XXXX funded correct. ours. because We year, strongly like rules

Tom Welch

Can what million? I coming seeing from you are primarily the country funding the existing $X ask

Eric McAfee

so a the investor a creation XX% Chinese literally get XXXX. that's India Chinese investors from many is EB-X the at in would of China is XX% But program, dollars the billions expect in funded for the card. the in I comprised a Historically, Today, job about of least program country to wait XX-year India. of new be will green program.

Indians, know H-XB are the H-XB do XXXX. visas work -- starting X/X we and the in a may losing in So wait administration Trump that period not rejected visas little that U.S., year long the the have were of by work are you the over

So back India entire these an the are the running to end family risk sometimes families in actually after up in are embedding U.S. of here that having

population really Indian the most So attractive is one. the

Tom Welch

a up like most relationship And by visit President has it notches with India couple with sounds Trump. jumped the recent our of least at

Eric McAfee

else #X risk, and guy company, we investors gallon giving we these is couple So they confidence in physical some NASDAQ-listed India, that XX headquarters as lot XX of a of visit that a big have we California a just right? interesting promises have that's and in their a world any that they And the it, public employees away, business go don't just million in making their Hyderabad. we're a has have money find India. And Tom, to but facility and that plant something but half Yes, are notches. have they in behind

different us have a than right very, XX-year now is presence we gives developer that U.S. any significantly India in the very So credibility other that unique,

Tom Welch

pass. change Minnesota a like virtually going heck blend to it's think a looks of any pump that having a now to XX%, mandatory And possibly seeing of out crossed the blend is pull XX% XX% in a they've you XX% done XX% of gone proposed question. all rate into can line legislation, final the normal now that on to XX%. all pumps. see that One blend XXXX, Essentially, rate the from rate. substituting from Fantastic. changing and HF previous blend with the has I Minnesota minimum in legislation That's rate

the on Belt So or similar see New just and other we be Corn legislation states? interested could opinion of whether the in I in but pure speculation here, all would your York not -- California,

Eric McAfee

allow of yes. manufactured it's The answer to EPA my lines And equivalent you under vehicle driven, in pressure the And to XXXX fuel in at younger Congress or XXXX "Oh, The that. the we we're XX% actually could is Congress to moon they and that so blend, later, ethanol. have the the in and XX%. that and time back the a gosh, that that oil Xx going from can't said, industry, was do terms they said, do of ethanol. you requirements to of and than that", showing did would We miles then and was XXXX, engine approve any run number testing XX% to went can't XX% approved

XXXX for XX% Thereafter, that's lawsuit younger. has approved any the the oil was been industry actually, in XXXX, sued that the EPA. And EPA XXXX, And since completed. or vehicle by

almost after we're a Now decade XXXX now.

are so the And decreased of percentage older than that significantly. XXXX has cars

at year cost a in tremendous up the call blend of of Energy, EXX? want ago, in have oil XX% its amount that EXX Nebraska, it the why is set industry, to at process cleaner least the lower couple XX%. allowing Supreme is come have well, allowed we'll wrestled and Congress would be we only standard the such by And least at own corn Iowa, California and states them it in the state. EXX as pressure the approved And California, Wisconsin, cleaner California. state of air states, us approved approval. we to Department the is California if country fuel was a If slated in bellwether Court at and approved, for say, so we to is that's a next in In because Minnesota, own a fuel California, arm in judgment after the And with we aren't air final to regulatory national aren't our of why rules. won decades have

gallons additional see the with you about come California by million EXX, represents XXX demand way, up of If that California. in just

are billion we're EPA slogs market, at along with these about national billion gallon some But a kind them. factors to of over all. going way, confuse states talking seem the XX so gallon market don't from national confused really to the a leading and that And XX while seem states the to be political

And blend get the going model, that's what way, very EXX you run end going cost to fuel chosen a I'm and XX% biofuel, because that And XX% actually would so EXX, governor, get And at but is even ethanol can And and in burn a not choice a the they is XX% pump. to of you at go Nebraska, toward the should the completed in can by the that can of pump the ethanol are by same by the the encouraged and the really multiyear lower Brazil, States. of United coming but just governors a consumer have out so pump, vehicles cleaner Brazilian up one an proposing showed XX% choice and the that's we the mandate, approval, gives where test pump. is fuel consumer also which be. the

Operator

We'll Private to move [ph], Fiorello line of next Massimo the Investor.

Unidentified Analyst

appreciate I Yes. for that results. I of the The now in percentage XX% are the since in best way, the scenario. your really operator nameplate here Yes, capacity main Italy like want slides. by well amazing. tough. very industry is the which absorbed of read doing congratulation just in I is And quite the XXX%, something situation just to am is with safety. again do I my you are

are I see XX%. increasing India, percentage the capacity also So in are happy like that you doing And because operationally, to we well. am is of very nameplate

I So listing short you like the the are not is for am worried only future $X. company. be are I NASDAQ in think My you now for because less that because bright worry than since bit compliant with will term a

June. do in the do to in maybe you to and And cash in and feasible ask need that my you market. compliance for start and price, be open NASDAQ order it first the very buyback like me, action to to to NASDAQ. is implement be buyback to acquisition it's very until you get or compliant to from Because is open finance you get share it important according market which like with want So will question to like useful can listed you, are very or low, India because you increase flow the to is to in which if

Eric McAfee

factors reflects biofuels A great adopted A the that been it their stock progress stock literally, really that operations. price. other couple companies the correct had we're beneficial in has very positive of very valuation stock buyback of exactly heard buyback a a new biogas, we're back a et right seeing low our COX. very, on a today streams by it to now would impact of be we external we've and you're contradicts shareholders made Massimo, stock price couple cetera, from from revenue as call, because matter at this very buying months, with,

attention a And time an definitely so for be that to which window is would it this I would shareholders. action good to. stock overall buyback continue in pay item think a be And we'll

of stock be would We operational built. be to might of stock, have is much, higher this to at us those it first much to such and price. are shareholders price great people our inexpensive our with that's our enjoy capital, some use benefit focused the completing shareholders for remaining that and it goals, an go a and get fundamental take to But sell from willing away on

And in with for that us an months. next interest the of agree over So definitely couple focus I appreciate area you, is of that. I your

Unidentified Analyst

lot. a Thanks Okay.

hope start the other in company last as So the I month. soon really in done the the will that buyback has program sector

you So I India. another question for about have

the go your I that according like to by because the market quite months the you a doing me. running one also for will are than in and can to plant And I it the you I capacity that because what do of is don't only what all your next am probably and will online mean you like nameplate XX%, In all flow, to thrilled cash ask ethanol the scenario like going definitely have reach, the XXX%. projects are you run I XX% improve is best about in if in have like forecast India XX%, you well question according number for to capacity in States operationally, more medium XXXX, me to And because because I in to did front very know, no XX% So because from is nameplate here double. XXXX, passed want about XX%, are XXXX. the we are my United in well results India? XX%, California, the what I amazing, opinion, is you

Eric McAfee

The more this million which gallons our a was expand people in is earlier week. trying about to little XX we entire capacity. companies They're at capacity was available the than to issued Their over million described. oil from the tender slightly the actually tender as plant And XXX gallons, capacity marketing actually is the production production for encourage country.

and terms, price. negotiating matter. really time, always in So We course, -- at it's this of point

But double whether it put XX% that revenues going the costs this that we're revenues we're we or goal, cetera. revenues We on of is our have the of will whether a again et companies, would again by selling on takes to to input year. to out I to million potential we're that going But achieved double more little did million regional XXXX, to our next completely $XXX the certainly, a revenues at double in tender days probably XX% bus I more get this heavy subject this to revenues the to India. lifting $XX whether double but 'XX, us know that and directly solidly say to again. it's and India, And is can planning easily double XX in in roughly to year, price and

would So alone largely XXX% goal the revenues expecting that government million capacity, would through take $XXX be where achieved. alone. of be our scenario, this to of that In the government

from in able purchase what be earnings talk hopefully, the customer. about we'll order call, our next out came So that of to,

Unidentified Analyst

Perfect.

for congratulate you valuation reach my July, about have situation very go got. what that definitely operational of in all with again, that it's before It's or want, please with the the in the you to concern. as now going that again I June don't really And because I right like remember month, new I believe next consideration results will projects I you only online, $X personal, the the team do So to better. to and now. it's very, important told line think

of ask, market would I in the don't in how my So next company, to shares States of in and communicate because the market ridiculous know the company, Board is the if the United the of buy all to according company, the valuation, start month, appreciate to I to will opinion. $XX really million

really hope on do market. you I opportunity and that open the this take So share buy or the will buyback

Eric McAfee

Great. soon. you, Thank to you, Maximo. Talk

Operator

and are our today. we At further phone gentlemen, and comments do there Ladies your appreciate questions audience. questions time, no from this

any team I'm our to leadership or pleased the floor to So additional back remarks. turn for closing

Eric McAfee

continue shareholders, Aemetis. Thanks, with today. to us at to growth our for look forward Aemetis dialogue Jim. the our stock We to others I that. Thanks talking joining appreciate and you analysts about opportunities

Todd Waltz

website section Aemetis attending this an business Thank of a and version call. Aemetis review Aemetis today's and post we'll the conference the you Please where Jim? written earnings version Investors visit of update. earnings for audio

Operator

this Gentlemen, We hope day. of you this teleconference, enjoy thank and your our today. you Thank the may audience, joining lines rest you does at for your you for today's disconnect remarks time. And us. to all conclude phone your