Green Plains Inc. (NASDAQ:GPRE) Q2 2023 Earnings Call Transcript

Todd Becker: Yes, so when we look at it, basically when we think about it, today we have 560 million gallons converted, and we’re going to have half the Tharaldson JV, half of our turnkey. So that’s about 85 million gallons converted. And then when you add at least one of the two Fairmont or Madison, that’s 760 million gallons converted. When you look at how much corn we grind there at eight in terms of a yield, and then you take that times what we believe will be, by the time we get there, four and a half to five pounds a bushel, and then you’re hitting higher targets volumetrically than what we had outlined. And then when we look at 2024 and as we leave 2024 with 20% to 30% of our capacity in 60 Pro and going to 2025, when you put all that into the calculator, and we’ll be very happy to do that.

I don’t – I can’t do that right now on this call. It meets or exceeds those targets relative to $0.15 to $0.18 a gallon uplift on 50 Pro, $0.30 to $0.40 a gallon uplift on 60 Pro, not including all the other opportunities that our innovation team works on to increase value of our products even further in terms of that product suite and things like dry yeasts and 60 dry yeast, 60 Pro yeast, those type of things. And when we’ve kind of put that all in, we are even more confident today with the things that we’re seeing driven by yield, driven by protein, driven by price spreads, driven by innovation that we can hit that $150 million to $200 million mark that we laid out and then build from there.

Unidentified Analyst: Awesome. Thanks Todd. Have a great weekend.

Todd Becker: Thank you very much.

Operator: I will now turn the call back over to Mr. Becker, CEO for closing remarks.

Todd Becker: Yes, hey, thanks everybody for being on the call. A lot of questions, a lot of great questions. We really appreciate it. As you can see, we’re making great progress across our product suite, challenging second quarter. We appreciate that. We’ve come out of it better than where we were in it. Plants are running better, protein is running great, sugar’s on track. Oil markets have recovered significantly from the quarter lows where we’re down into the 40s, now we’re up into the 70s again, high 60s. So overall we think we’re in a good place to show what the opportunity is in the last half and deliver a few quarters and make sure you’re confident that we can deliver on 2024 and 2025. And our takeaways from 2023 going to 2024 and our exit run rate in 2024 goes into 2025.

And that’s why we’re extremely confident between decarbonization, which those numbers have only gotten better to hit those 2025 numbers that we laid out and begin to hit those in 2024 as well. So we appreciate your support and we’ll talk to you next quarter.

Operator: Ladies and gentlemen, that concludes today’s call. Thank you all for joining and you may now disconnect.