Todd Becker: Well, that’s a lot to unpack there. But let me just focus on a couple things. We continue to negotiate with complex committee and really can’t talk much more than that. I’m bringing the MLP in and we talked about in the past some of the reasons why we want to do that, and we’ll just leave it at that just because of where we’re at in the process. Secondly, from an acquisition standpoint, we’ve been on the sidelines a bit. They are – ethanol plants in general are harder to buy in the size, scope and scale that we want to apply our technologies to them. And as you saw, we divested a small plant, for us, it just locationally geographically and also the way that the logistics worked out of there just won’t fit our long-term strategy around protein, oil, sugar and decarbonization.
But it fits somebody else’s, which is good. But it was a smaller subscale plant to what we want to operate in the future. Acquisitions are hard, they’re expensive. The value of our assets have gone up. If you want to build one today, replacement value for an ethanol plant in the Midwestern – in the Midwest is $2.25 to $2.50 a bushel minimum that’s – gallon, sorry, $2.25 to $2.50 a gallon minimum. And that’s before you add on any of our technologies as well. So M&A is pretty difficult. We absolutely want to begin to re-expand our platform over the next several years and look for opportunities, but everything got more expensive, which replacement cost is meaningful in this industry. And why is it meaningful? Because before you even take a look at ethanol margins have somewhat recovered, blends are going up.
We believe our technologies can be applied. But more importantly, if you’re sitting on one of the pipelines or a Summit, for example, which can get built as quick as probably quicker than most you are in an advantaged position and there’s going to be the haves and the have-nots in the next couple of years of who gets up and running first and that’s why we chose Summit as one of our partners is because we think that’ll be the haves and that’ll get built first. And you’ll have – you could have a multi-year advantage over those that are not on a pipeline that is operating yet. So, that’s why people – when you look at acquisitions, you have to value very different this industry in the past. And if we get to jet fuel, which you’ve already seen projects being announced, the value of an asset to produce low carbon alcohol and low carbon feed stocks is just going to continue to go up now withstanding some of the volatility we faced.
So we absolutely would love to expand our platform. We don’t really want to build a bunch more fuel capacity. I mean, we have some sites we can expand a little bit so we can take advantage of being on a pipeline. But also if you take a look at a place like Shenandoah where we’re going to take capacity out of the market as we build up our clean sugar, that’ll give us an opportunity as well. So, they’re out there, but it’s getting much harder and much more expensive to do M&A in this industry. It’s not like it was a few years ago, no matter what the margin is in any given quarter, by the way.
Craig Irwin: Great. Well, thank you for that. I’ll hop back in the queue.
Todd Becker: Thank you.
Operator: Next question comes from Adam Samuelson from Goldman Sachs. Please go ahead.
Adam Samuelson: Yes. Thank you. Good morning, everyone.
Todd Becker: Good morning, Adam.
Adam Samuelson: Hi. So I guess the first question, just maybe making sure we’re clear on kind of the quarter and kind of how you’re framing the second half. I think in the prepared remarks, Todd, you talked to the Wood River issue and the other unplanned and planned downtime kind of potentially leaving up to $0.20 a gallon of margin on the table. As we look forward with the network now operating at high rates, less downtime in the second half of the year and where the forward curves are and your mix of High Pro and corn oil is that kind of margin level or that margin level plus kind of the right way to think about second half EBITDA?
