"The retroactive reinstatement of the $1.00 Blenders Tax Credit for 2012 diesel production is estimated to result in a net payment to Dynamic Fuels of approximately $6.7 million. We expect to recognize our share of the tax credit in the first quarter of 2013."
The net payment is ... a bit lower than expected, but SYNM is saying it will come this month, at the latest.
But! The filing also says: "Dynamic Fuels or its owners will receive a combined total of approximately $23 million for 2012 production from the $1 tax credit and will receive the alternative fuels mixture credit of $0.50 per gallon for a portion of the renewable naphtha also produced during 2012."
Can anyone reconcile the two numbers for me? Is it because the payment is being broken up into installments? Something else?
By the way ... if the payment comes in soon, it wasn't a horrible thing to be shut down. RINs have double in the past month, so SYNM benefits from that without having eaten through a significant amount of the quota at lower RIN prices (as the highest volume producer).
Still ... doesn't give you the greatest confidence.