7.87 0.00 (0.00%)
After hours: 4:49PM EDT
|Bid||6.95 x 1000|
|Ask||7.99 x 4000|
|Day's Range||7.55 - 7.96|
|52 Week Range||7.01 - 19.39|
|Beta (3Y Monthly)||0.94|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
(Bloomberg) -- President Donald Trump presided over a lengthy Oval Office meeting Monday in which he urged officials to soften the impact of recent policy moves that angered Midwestern farm states critical to his re-election.The Trump administration was stung by criticism over the Environmental Protection Agency’s Aug. 9 decision to give 31 refineries exemptions from annual biofuel-blending requirements -- including Iowa Senator Chuck Grassley’s assertion that the Trump administration had “screwed” farmers.Trump suggested rescinding some of the newly granted waivers during the Monday meeting, according to four people familiar with the discussions who asked not to be named describing a private session. Trump was told the waivers may not be reversible, but officials offered other ideas to mitigate the political impact in Iowa, a state he carried in 2016 and needs again in 2020 to win.Administration officials suggested expanding environmental credits that encourage production of “flex-fuel” vehicles that can run on high-ethanol gasoline and requiring government agencies to use more of them -- both steps that could increase the use of corn in fuels.The White House press office had no comment.The flurry of discussions is in keeping with the president’s practice of searching for immediate fixes to thorny policy disputes, from a border wall to the tax overhaul, sometimes impulsively endorsing just-advanced ideas that haven’t been deeply vetted. For instance, Trump stunned Republican leaders and some of his own staff when he temporarily sided with top Democrats on federal spending in September 2017.Monday SessionsMonday’s back-and-forth illustrates an intensifying clash over U.S. biofuel policy that pits two of Trump’s top political constituencies -- farmers and oil interests -- against each other. The administration is divided, with the U.S. Department of Agriculture favoring farmers and the EPA insisting the law compels them to waive the requirement for refineries facing economic harm.The meeting Monday with Trump was ostensibly to discuss trade with China but quickly turned into a fuels discussion because the U.S. ambassador to China, former Iowa Governor Terry Branstad, had just spent a few days in the state and was concerned about the harm he believed the waivers will cause rural America.The meeting, described as lively and spanning roughly two hours, included Branstad, Deputy Agriculture Secretary Stephen Censky, White House trade adviser Peter Navarro, White House economic adviser Larry Kudlow and National Security Council official Matthew Pottinger. Agriculture Secretary Sonny Perdue and EPA Administrator Andrew Wheeler joined by phone.During the Oval Office session and at least one follow-up call, administration officials discussed broad policy changes designed to mollify farm-state critics and expand the market for corn-based ethanol. At one point, Branstad questioned whether the U.S. could mandate auto companies make all vehicles capable of running on a variety of fuels, so consumers can choose what to use. The idea was quickly rebuffed, with one person in the meeting warning it would provoke a big fight with automakers.Summertime EthanolAmong the other options discussed: fuel policy changes designed to make E15 gasoline that contains 15% ethanol a new nationwide standard, replacing the 10% variety that is now commonplace.The EPA in May lifted restrictions on E15 gasoline that blocked widespread summertime sales, but fewer than 2,000 stations offer that blend, much less E85 gasoline containing 85% ethanol. Flex-fuel vehicles are capable of using both but limited consumer interest has discouraged widespread adoption.It is not clear that any of the ideas will materialize. Since 2017, Trump has tried to broker a compromise on biofuel policy between warring ethanol and oil industry interests, but the design of the U.S. Renewable Fuel Standard makes it nearly impossible to satisfy both stakeholders simultaneously. And many of the ideas advanced Monday would require congressional action or lengthy federal rulemaking; some even conflict with regulatory changes already under way.Moreover, some of the proposals would benefit ethanol but do little to address concerns by U.S. biodiesel makers that use soybean oil as a feedstock and whose footprint extends beyond the Corn Belt.Another idea under consideration is boosting the amount of biodiesel and conventional renewable fuel the EPA will require refiners to use over the next two years to compensate for expected waivers -- effectively forcing non-exempted refineries to make up for the lost quotas. Perdue, the agriculture secretary, has pushed the idea for months, against opposition from EPA officials and oil companies.Ethanol producers climbed on the news. Green Plains Inc. jumped as much as 2.6% to $7.89, and shares were $7.58 at 3:14 p.m. in New York. And renewable identification numbers tracking 2019 ethanol blending climbed 30% to 13 cents apiece from 10 cents Monday.The White House discussions center around a 14-year-old federal law that dictates oil refineries use biofuel to satisfy annual quotas set by the EPA. The statute authorizes the EPA to issue exemptions for small refineries facing a “disproportionate economic hardship,“ but biofuel proponents argue the administration has handed out the waivers too freely and is undermining domestic demand for the products.The EPA decided to grant 31 exemptions from 2018 biofuel-blending quotas -- and deny six other applications -- following months of internal deliberations and after Trump intervened to authorize the move. But the president said Monday he felt misled by the high number of approvals, according to two people familiar with the discussions.Midwestern AngerThe exemptions have caused anger throughout the Midwest, where biofuel producers, their political allies and farmers view the waivers as curbing demand for their products, amid a trade war with China that has already diminished sales. Biodiesel producer World Energy Corp. last week blamed the refinery waivers and a lapsed tax credit for a decision to shutter three of its plants. POET LLC said Tuesday it would idle production at its bioprocessing facility in Cloverdale, Indiana, because of the exemptions. Democratic candidates for the White House also have seized on the issue.EPA officials and oil industry advocates push back against assertions that refinery exemptions are eroding demand for ethanol.“There is zero evidence that EPA’s congressionally mandated small refinery exemption program -- which provides regulatory relief to small refineries around the country -- has had any negative impact on domestic corn ethanol producers,” the agency said in an emailed statement. “In fact, the Trump administration has overseen year-over-year increases in domestic fuel ethanol production, to the highest level in history and the United States exported a record volume of ethanol in 2018 for the second consecutive year.”The EPA said its decisions take into account direction from Congress, recommendations from the Department of Energy and recent court decisions that rapped the agency for denying some refinery waivers.Still, people in Monday’s meeting with Trump highlighted the backlash in Iowa and other Midwest states, illustrating the political concern about Trump alienating crucial swing voters. Oil industry allies, including Senator Ted Cruz, a Republican from Texas, have made the opposite pitch during earlier administration discussions on the issue, arguing that support from refinery workers in Pennsylvania and other battleground states is also at risk if the president strengthens U.S. biofuel mandates.\--With assistance from Ryan Beene and Jordan Fabian.To contact the reporters on this story: Jennifer Jacobs in Washington at email@example.com;Jennifer A. Dlouhy in Washington at firstname.lastname@example.org;Mario Parker in Chicago at email@example.comTo contact the editors responsible for this story: Jon Morgan at firstname.lastname@example.org, Elizabeth WassermanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
How far off is Green Plains Inc. (NASDAQ:GPRE) from its intrinsic value? Using the most recent financial data, we'll...
Green Plains (GPRE) delivered earnings and revenue surprises of -44.87% and 14.85%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
The U.S. ethanol industry is about to break under the weight of the Trump Administration's trade war with China and the surge in the number of small refineries exempted from the nation's biofuel laws, Green Plains Chief Executive Officer Todd Becker said. The U.S. ethanol industry was preparing for growth in recent years, but the momentum has stalled in the face of President Donald Trump's trade war with China, a major buyer, and his administration's decision to align itself with the oil industry on demand-cutting waivers from biofuel laws, Becker said.
U.S. ethanol plants are expected to sharply curtail production in the weeks ahead as steep Midwest corn prices and the U.S.-China trade war have led to weak margins and oversupply, industry sources said. Margins to produce ethanol in the Corn Belt - where most U.S. production takes place - have fallen to a four-year seasonal low, while ethanol inventories are at the highest seasonally since at least 2010. Industry sources said this glut makes future cuts inevitable, particularly as corn prices are making production even more expensive.
If you're interested in Green Plains Inc. (NASDAQ:GPRE), then you might want to consider its beta (a measure of share...
The business suspended its dividend. While that's not exactly a surprising move, it highlights the sour financial position of the ethanol leader.
The Zacks Analyst Blog Highlights: ExxonMobil, Chevron, Green Plains, Archer Daniels Midland and Bunge
The agency removed the federal restriction on summer sales of E15 ethanol and came up with several structural changes to increase RIN market transparency.
The Insider Monkey team has completed processing the quarterly 13F filings for the March quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as […]
While small-cap stocks, such as Green Plains Inc. (NASDAQ:GPRE) with its market cap of US$516m, are popular for their...
Guru Donald Smith (Trades, Portfolio), leader of Donald Smith & Co., released his first-quarter portfolio last week, listing three new holdings. Warning! GuruFocus has detected 2 Warning Signs with CPLG. Based on these criteria, Smith established positions in CorePoint Lodging Inc. (CPLG), Diamond S Shipping Inc. (DSSI) and Green Plains Inc. (GPRE) during the quarter.
Is Green Plains Inc. (NASDAQ:GPRE) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to […]