|Bid||0.00 x 2200|
|Ask||0.00 x 4000|
|Day's Range||10.60 - 11.12|
|52 Week Range||7.01 - 19.39|
|Beta (3Y Monthly)||1.07|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 5, 2019 - Nov 11, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||18.00|
Farm groups and ethanol organizations are angered by the sharp increase in exemptions provided by the Andrew Wheeler-led Environmental Protection Agency to the oil refiners.
(Bloomberg) -- President Donald Trump has tentatively agreed to a plan for bolstering ethanol and biodiesel, amid pressure from Midwest U.S. senators who warned that without action he risks votes in next year’s election.The blueprint discussed in a Wednesday meeting at the White House calls for the administration to begin offsetting Environmental Protection Agency exemptions waiving some oil refineries from annual blending requirements starting in 2020. That comes on top of other concessions that administration officials had already developed with the aim of encouraging greater U.S. demand for ethanol made from corn.The draft plan was described by people familiar with the matter who asked for anonymity because the deliberations are private. The deal could still unravel, as oil companies and allied senators seek to influence the final outcome and administration officials work to translate broad commitments into formal regulations.Green Plains Inc., a U.S. ethanol producer, tempered its losses after Bloomberg reported the White House deliberations. The shares fell as much as 4.9%, to $10.36, before recovering to $10.79 as of 2:48 p.m. in New York. Renewable Energy Group Inc., one of the largest U.S. biodiesel producers, erased earlier losses, gaining 3.5% to $15.87. Pacific Ethanol Inc. also tempered an earlier decline, rising to 74.31 cents a share.Reallocating QuotasIf the deal becomes final, the EPA would begin calculating waivers into future quotas starting with the 2020 targets. The determinations would be driven by a three-year rolling average of exemptions, so the 2020 targets would reflect waivers issued in 2016, 2017 and 2018. That could raise legal hurdles for the EPA, which would be tasked with swiftly implementing it.There is a narrow window for the Trump administration to codify a package of changes. The EPA is legally required to finalize 2020 biofuel-blending targets by Nov. 30, and any new, supplementary proposal must first be submitted for public comment.The plan was hashed out on Thursday by Trump, a representative of Archer-Daniels Midland Co. and senators from corn-growing and ethanol-producing states in a meeting at the White House. Senators in the room included Chuck Grassley and Joni Ernst of Iowa, John Thune and Mike Rounds of South Dakota and Ben Sasse and Deb Fischer of Nebraska.Iowa Governor Kim Reynolds was also present.Plans DevelopedFor weeks, the Trump administration has been trying to develop a plan for quelling a backlash in the Midwest U.S. over the oil refinery waivers, amid concerns it could hurt Trump’s re-election chances in Iowa and other politically important farm states.The approach risks alienating oil refining supporters, including a group of senators that are asking Trump not to boost biofuel quotas or offset refinery waivers. The move would have the effect of putting non-exempted refineries on the hook for fulfilling waived quotas, driving “more imports of foreign biodiesel, steeper trade deficits, higher compliance costs for domestic refiners and fewer jobs in our states,” they told Trump in a letter.Executives from Valero Energy Corp. and Marathon Petroleum Corp. met with Trump earlier in the week as negotiations intensified. Republican senators, including Ted Cruz of Texas and Pat Toomey of Pennsylvania, have been seeking to press their case against the biofuel plan personally with Trump.Refinery workers and owners also have made appeals, with more than 60 refinery managers telling the president in a letter Thursday that they were “deeply concerned” the contemplated changes would hurt their industry, without benefiting American farmers.Just the prospect of a biofuel boost has driven up prices of the tradable credits refiners use to prove they have satisfied federal mandates. Renewable Identification Numbers tracking 2019 ethanol consumption quotas jumped 17% to 21 cents apiece on Friday from 18 cents on Thursday, the highest since July 29, according to broker data compiled by Bloomberg. RINs tracking 2019 biodiesel targets climbed 6.3% to 51 cents each, the highest since Feb. 28.(Updates with details on deal, RINs movement from second paragraph.)To contact the reporters on this story: Jennifer Jacobs in Washington at email@example.com;Mario Parker in Chicago at firstname.lastname@example.org;Jennifer A. Dlouhy in Washington at email@example.comTo contact the editors responsible for this story: Jon Morgan at firstname.lastname@example.org, Steve GeimannFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Green Plains Inc. (GPRE) and a group of investment funds that include AGR Partners, StepStone Group, and several of their respective affiliates, today announced that they have formed a joint venture to own and operate Green Plains Cattle Company LLC. As a part of the joint venture, these investment funds have purchased 50% of the membership interests of Green Plains Cattle Company from Green Plains Inc. for approximately $77 million plus closing adjustments. “We are excited about completing this transaction and the quality of investment partners who have aligned with us for the continued growth of Green Plains Cattle Company. This further validates the quality of the business we have built over the last several years, and allows us to form new relationships with long term investors,” said Todd Becker, president and chief executive officer of Green Plains Inc. “This strategic partnership demonstrates our ongoing commitment to unlocking value for our shareholders,” added Becker.
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
(Bloomberg) -- President Donald Trump, seeking to tamp down political fallout in U.S. farm states essential to his re-election, has ordered federal agencies to shift course on relieving some oil refineries of requirements to use biofuel such as corn-based ethanol.Trump and top cabinet leaders decided late Thursday they wouldn’t make changes to just-issued waivers that allow small refineries to ignore the mandates, but agreed to start boosting biofuel-blending quotas to make up for expected exemptions beginning in 2021. The outcome was described by four people familiar with the matter who asked not to be named before a formal announcement could be made.The decision was reached after a flurry of White House meetings this week on the issue, which divides two of Trump’s top political constituencies: rural Americans and the oil industry. With the move, Trump is largely siding with farmers, ethanol producers and political leaders in Iowa that have accused the president of turning his back on the industry.But the administration’s shift risks blowback in Pennsylvania and other battleground states, where blue-collar refinery workers have held rallies to push for relief from U.S. biofuel quotas they say are too expensive. The largest coalition of U.S. building trades unions on Thursday warned Trump that changing course on exemptions would betray the president’s “campaign promise to protect every manufacturing job.” Encouraging E15“President Trump is committed to ensuring our country not only continues to be the agricultural envy of the world, but also remains energy independent and secure,” White House spokesman Judd Deere said.Iowa-based biodiesel producer Renewable Energy Group Inc. climbed as much as 4.5% on the news, and traded up 5.5% to $11.64 at 1:50 p.m. in New York. Pacific Ethanol Inc. and Green Plains Inc. briefly gained before resuming losses as the U.S.-China trade war showed signs of deepening with the latter announcing plans to levy additional tariffs on American-made goods and Trump promising to respond.Administration officials agreed to the broad contours of a renewable fuel plan, including further moves to encourage the use of E15 gasoline containing 15% ethanol, beyond the 10% variety common across the U.S. E15 could be dispensed alongside conventional ethanol blends at filling stations, under the drafted changes.EPA’s PlanUnder the tentative plan, the Environmental Protection Agency also will give a 500-million-gallon boost to the amount of conventional renewable fuel, such as ethanol, that must be used in 2020. A separate quota for biodiesel, typically made from soybeans, would get a 250 million gallon increase.Additionally, the administration will enhance a program meant to expand U.S. fueling infrastructure and get more ethanol into the system. The EPA will adopt an Agriculture Department assessment of the greenhouse gas emissions associated with renewable fuel, and will expand environmental credits encouraging automakers to produce “flex-fuel” vehicles that can run on high-ethanol gasoline. Iowa BacklashThe EPA has drawn intense criticism for its Aug. 9 decision to exempt 31 refineries from 2018 biofuel-blending requirements. Although federal law authorizes the waivers for small refineries facing an economic hardship, the number of those exemptions has surged during the Trump administration, and biofuel producers say they are being handed out too freely.The backlash has been most severe in Iowa, the nation’s top producer of ethanol and the corn used in its manufacture. It is also critical for Trump’s re-election; the state twice voted for Barack Obama before voting to send Trump to the White House in 2016.Trump’s Democratic challengers have seized on the issue, with frontrunner Joe Biden accusing the president of lying to farmers and abandoning a campaign promise to “unleash ethanol.” However, EPA officials and oil industry leaders say the waivers haven’t harmed domestic ethanol demand and blame a glut of the product for suppressing prices. Trump’s trade war with China has exacerbated the industry’s economic challenges. As with U.S.-grown agricultural products, including soybeans, ethanol faces retaliatory tariffs in China. Latest BlowAgainst the backdrop of tariffs, the exemptions delivered another blow to the U.S. Midwest, where guaranteed domestic ethanol demand helps provide a floor of support for corn farmers and buttresses swings in commodity prices. Ethanol refining accounts for about 40% of U.S. corn consumption.American “agriculture has a problem if ethanol doesn’t do well,” Green Plains Inc. chief executive officer Todd Becker said in a telephone interview on Thursday. The Omaha, Nebraska-based company created a political action committee last month, and Becker told analysts in May that Green Plains plans to “engage” 2020 U.S. presidential candidates on ethanol policies. Becker said he “can’t fault” Trump for getting tough on China, but the combination of the trade war and small refinery exemptions was causing too much pain. “You don’t fight China and then give out SREs,” Becker said. “Farmers are furious now.”Biofuel QuotasAgriculture Secretary Sonny Perdue had urged the White House to rescind some of the recently issued waivers -- at least those for refineries tied to “big” oil companies -- according to an Aug. 20 memo obtained by Bloomberg.EPA officials successfully argued that would be illegal.Instead, Trump directed the agency to increase biofuel quotas to make up for the exemptions, a so-called “reallocation” that will effectively boost the burden for larger refineries that are not eligible to win waivers. The EPA will start incorporating expected exemptions into annual biofuel quotas beginning with 2021.Oil industry leaders blasted the tentative agreement on Friday, saying it would do little for U.S. farmers while hurting domestic refiners.“Reallocation would be a major hit to fuel manufacturers in Pennsylvania and Ohio -- and refinery workers across the country -- with zero benefit to ethanol,” said Derrick Morgan, a senior vice president with the American Fuel and Petrochemical Manufacturers. “Those celebrating will ultimately be foreign biofuel producers whose biodiesel is being imported to help meet mandates.” ‘Arbitrary’ PolicyThe EPA typically sets each year’s biofuel blending requirements by Nov. 30 of the preceding year, except for biodiesel quotas, which are set two years in advance. Under the U.S. Renewable Fuel Standard program, there’s a specific mandate for biodiesel, but the soybean-based product can also be used to satisfy an implied 15 billion gallon quota for conventional renewable fuel.Frank Macchiarola, a vice president at the American Petroleum Institute, called the drafted plan a “rushed, arbitrary policy.”“We hope the administration walks back from the brink of a disastrous political decision that punishes American drivers,” Macchiarola said. “Bad policy is bad politics.”Although the tentative plan was meant to assuage biofuel allies, it’s not clear it was having the intended effect Friday, amid industry skepticism the EPA will follow through on the agreement. Iowa officials are preparing to visit Washington for a formal rollout of the policy changes.Biodiesel industry advocates say they can produce more fuel -- and the Trump administration needs to take that into account.“With a level playing field in biodiesel trade in 2018, domestic producers increased output by several hundred million gallons,” said National Biodiesel Board spokesman Paul Winters. “We can continue to do so -- as long as EPA stops using RFS waivers to destroy demand and put biodiesel producers out of business.” (Updates with more details on tentative plan from ninth paragraph.)\--With assistance from Jennifer Jacobs.To contact the reporters on this story: Jennifer A. Dlouhy in Washington at email@example.com;Mario Parker in Chicago at firstname.lastname@example.orgTo contact the editors responsible for this story: Jon Morgan at email@example.com, Elizabeth Wasserman, Ros KrasnyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Top Trump administration officials met Thursday to consider options for quelling a backlash in politically important farm states over recent biofuel policy moves, including revoking waivers given to some oil refineries from requirements they use renewable fuel such as corn-based ethanol.The Agriculture Department pushed that idea in the meeting and in a memo explicitly outlining options for President Donald Trump amid intense opposition from the Environmental Protection Agency, which administers the program that mandates biofuel. Thursday’s meeting follows a flurry of White House conversations this week on the issue, according to people familiar with the deliberations who asked not to be named before any formal announcement.After Bloomberg reported the news, biodiesel maker Renewable Energy Group Inc. surged as much as 7%, the steepest gain in two months, while U.S. ethanol producer Green Plains Inc. climbed as much as 3.6%. Corn futures also advanced. Gasoline futures fell for the first time in a week.The administration is trying to blunt anger in Iowa and other states critical to the president’s re-election, as Trump’s political allies in the Midwest blast the EPA’s Aug. 9 decision to waive 31 oil refineries from 2018 quotas encouraging the use of ethanol and soybean-based biodiesel. But any shift to favor agricultural interests over oil companies could also have political implications in Pennsylvania and other campaign battleground states, by angering blue-collar refinery workers and oil industry benefactors.‘Regain Support’In Thursday’s meeting, administration officials discussed a series of possible policy changes that had been outlined by Agriculture Secretary Sonny Perdue in an Aug. 20 memo obtained by Bloomberg. “By taking decisive action now,” Perdue said in the memo, “I believe we can regain support among farmers and the biofuel industry.”Perdue recommended rescinding some of the oil-refinery exemptions that had been granted to “big” companies -- about seven to eight of the recent batch of 31 -- despite warnings from top EPA officials the revocations could be illegal.The Agriculture Department, which didn’t immediately respond to a requests for comment, also recommended reallocating some of the biofuel quotas that were waived and that are expected, beginning with a final regulation setting biofuel targets for 2020, expected by Nov. 30.The agency also is seeking a formal role in dictating the targets for the next two years and helping shape the future of the Renewable Fuel Standard, the 2005 law that compels refiners to use biofuel.The White House was already reviewing a drafted EPA “RFS reset” rule that did not make broad changes to the program, but Perdue described it as “negative toward biofuels and contrary” to the president’s “stated support” for the law. That regulation could be a vehicle for more ambitious biofuel-blending requirements.The EPA also should take steps to speed the adoption of E15 gasoline that contains 15% ethanol, Perdue said, and encourage flex-fuel vehicles that can run on an 85% blend.Refinery RisksAs top Trump administration officials weighed options this week, oil companies and their congressional allies made the case that any shift could alienate refinery workers and voters in swing states the president won in 2016.Rescinding the waivers is “likely to inflict far more political damage given the likely reaction of unions, political supporters and businesses in key battleground states like Pennsylvania and even Texas,” Scott Segal, a Bracewell lobbyist who works with refiners, said late Wednesday.Federal law authorizes the EPA to issue exemptions waiving refineries from RFS mandates in cases of economic hardship. But ethanol and biodiesel producers say the Trump administration has handed out those waivers too freely, hurting demand for their products, amid a trade dispute with China that has already caused economic pain.EPA officials and refiners dispute that waivers have hurt domestic ethanol demand. Agricultural economist Scott Irwin asserted Thursday that the rate at which ethanol has been blended into gasoline has not fallen, though he said exemptions have hurt demand for E85 and E15.(Updates with details of Perdue memo from fifth paragraph)\--With assistance from Jennifer Jacobs.To contact the reporters on this story: 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.
(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...
OMAHA, Neb., Aug. 06, 2019 -- Green Plains Inc. (NASDAQ:GPRE) today announced that Todd Becker, president and chief executive officer, is scheduled to present at the Jefferies.
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?
Results for the Second Quarter of 2019 Net income of $10.7 million, or $0.45 per common unitAdjusted EBITDA of $13.9 million and distributable cash flow of $11.7.
Results for the Second Quarter of 2019: Net loss attributable to the company of $45.3 million, or $(1.13) per diluted shareEBITDA of $(19.8) millionCash, cash equivalents and.
OMAHA, Neb., July 29, 2019 -- Green Plains Inc. (NASDAQ:GPRE) and Green Plains Partners LP (NASDAQ:GPP) will release second quarter 2019 financial results after the market.
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...
Green Plains Inc. (GPRE) today announced the completion of its offering of $105 million aggregate principal amount of 4.00% convertible senior notes due 2024. The notes were offered and sold in a private placement to qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933, as amended, by the initial purchasers of the notes. The company's estimated net proceeds from the offering were approximately $101 million after deducting the initial purchasers' discounts and commissions and our estimated offering expenses.
The business suspended its dividend. While that's not exactly a surprising move, it highlights the sour financial position of the ethanol leader.