REX American Resources Corp (REX) 2022 Q4 法說會逐字稿

Greetings, and welcome to the REX American Resources Fiscal 2022 Fourth Quarter Conference Call. (Operator Instructions) I would now like to turn the conference over to Mr. Doug Bruggeman, Chief Financial Officer. Please go ahead.

您好，歡迎來到 REX American Resources 2022 財年第四季度電話會議。 （操作員說明）我現在想將會議轉交給首席財務官 Doug Bruggeman 先生。請繼續。

Good morning, and thank you for joining REX American Resources Fiscal 2022 Fourth Quarter Conference Call. We'll get to our presentation and comments momentarily as well as your question-and-answer session, but first, I'll review the safe harbor disclosure.

早上好，感謝您參加 REX American Resources 2022 財年第四季度電話會議。我們將立即進行我們的演示和評論以及您的問答環節，但首先，我將回顧安全港披露。

In addition to historical facts or statements of current conditions, today's conference call contains forward-looking statements that involve risks and uncertainties within the meanings of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the company's current expectations and beliefs but are not keys of future performance. As such, actual results may vary materially from expectations.

除了歷史事實或當前狀況的陳述外，今天的電話會議還包含前瞻性陳述，這些陳述涉及 1995 年《私人證券訴訟改革法》含義內的風險和不確定性。此類前瞻性陳述反映了公司當前的預期和信念，但不是未來表現的關鍵。因此，實際結果可能與預期存在重大差異。

The risks and uncertainties associated with the forward-looking statements are described in today's news announcement and the company's filings with the Securities and Exchange Commission, including the company's reports on Form 10-K and 10-Q. REX American Resources assumes no obligation to publicly update or revise any forward-looking statements.

與前瞻性陳述相關的風險和不確定性在今天的新聞公告和公司向美國證券交易委員會提交的文件中有所描述，包括公司關於 10-K 和 10-Q 表格的報告。 REX American Resources 不承擔公開更新或修改任何前瞻性陳述的義務。

I have joining me on the call today, Stuart Rose, Executive Chairman of the Board; and Zafar Rizvi, Chief Executive Officer. I'll first review our financial performance and then turn the call over to Stuart for his comments.

董事會執行主席斯圖爾特·羅斯 (Stuart Rose) 今天和我一起參加電話會議；和首席執行官 Zafar Rizvi。我將首先審查我們的財務業績，然後將電話轉給斯圖爾特徵求他的意見。

Sales for the fourth quarter declined by 5.6% as we experienced lower volume for ethanol and distillers grain. Ethanol sales for the quarter were based upon 63.7 million gallons this year versus 69.9 million last year as we experienced some weather-related disruptions to their operations during the quarter. We reported gross profit of $14.9 million for this year's fourth quarter versus a gross profit of $38.8 million in the prior year.

由於乙醇和酒糟的銷量下降，第四季度的銷售額下降了 5.6%。本季度的乙醇銷售額基於今年的 6370 萬加侖，而去年為 6990 萬加侖，因為我們在本季度遇到了一些與天氣相關的運營中斷。我們報告今年第四季度的毛利潤為 1,490 萬美元，而去年同期為 3,880 萬美元。

In the current year quarter, we experienced lower ethanol pricing as well as higher coal and natural gas pricing. Coal cost increased by 22% and natural gas pricing increased by 12% for this year's quarter compared to the prior year as inflationary pressures and the impact of commodity pricing from the Ukraine-Russia conflict continued.

在本季度，我們經歷了較低的乙醇價格以及較高的煤炭和天然氣價格。由於通貨膨脹壓力和烏克蘭與俄羅斯衝突對大宗商品定價的影響持續存在，與去年同期相比，煤炭成本上漲了 22%，天然氣價格上漲了 12%。

We continue to experience higher basis pricing for corn near the NuGen facility based upon a poor corn harvest and reduced corn availability in that local area. SG&A increased for the fourth quarter to $6.7 million from $6 million in the prior year. The increase is primarily due to an increase in the number of ethanol contracts that require the freight to be paid by us compared to the prior year, which we classify as SG&A costs.

由於當地玉米收成不佳和玉米供應減少，我們繼續在 NuGen 設施附近經歷更高的玉米基價。第四季度的 SG&A 從去年同期的 600 萬美元增加到 670 萬美元。增加的主要原因是與上一年相比，要求我們支付運費的乙醇合同數量增加，我們將其歸類為 SG&A 成本。

We had income of $2.5 million from our unconsolidated equity investment in this year's fourth quarter versus income of $3.9 million in the prior year. The company's interest and other income in the current year increased dramatically to 2.6 million versus 13,000 in the previous year, primarily reflecting increased yields on our cash. The discontinued operations reflecting the prior year numbers are from the refined coal business as we ended those operations on November 18, 2021. There was no impact in the current year.

今年第四季度，我們的未合併股權投資收入為 250 萬美元，而去年同期為 390 萬美元。公司本年度的利息和其他收入從上一年的 13,000 大幅增加至 260 萬，這主要反映了我們現金收益率的提高。反映上一年數字的已終止業務來自精煉煤業務，因為我們於 2021 年 11 月 18 日結束了這些業務。對本年度沒有影響。

We reported a tax provision from continuing operations of $2.2 million for this year versus the provision of $10.7 million in the prior year, primarily reflecting the lower level of income in the current year. These factors led to net income attributable to REX shareholders from continuing operations of $8.2 million for this year's fourth quarter versus $21.3 million in the prior year. Total net income per share attributable to REX shareholders from continuing operations was $0.47 for this year's fourth quarter versus $1.19 in the prior year. Again, I'll point out all share numbers reflect the 3-for-1 stock split, which was effective August 5, 2022.

我們報告今年來自持續經營業務的稅收撥備為 220 萬美元，而上一年為 1070 萬美元，主要反映了本年度較低的收入水平。這些因素導致今年第四季度歸屬於 REX 股東的持續經營淨收入為 820 萬美元，而去年同期為 2130 萬美元。今年第四季度歸屬於 REX 股東的持續經營每股淨收入總額為 0.47 美元，而去年同期為 1.19 美元。同樣，我要指出的是，所有股票數量都反映了 2022 年 8 月 5 日生效的 3 股拆股。

Stuart, I'll now turn the call over to you.

斯圖爾特，我現在把電話轉給你。

Thank you, Doug. Going forward, ethanol currently is running at roughly breakeven year-to-date. Zafar Rizvi in his section will discuss ethanol much further. Our cash is approximately $280 million at the end of the year consolidated. And we have -- our uses of cash -- the cash over the next couple of years include carbon capture, which, again, Zafar Rizvi will discuss. Investing the cash right now -- right now we're investing the cash and interest-bearing accounts, mostly treasuries and money market accounts and the banks that we are dealing with, and this is to the best of our knowledge, are very, very secure. We consider them top quality banks, and we feel very comfortable that our cash is invested in a very, very good way. We are earning decent interest on that cash versus many companies that have debt. We do not have much -- we have virtually no debt. So that's, in our opinion, it's good a way to invest our cash at this time.

謝謝你，道格。展望未來，乙醇目前大致處於收支平衡的水平。 Zafar Rizvi 在他的部分將進一步討論乙醇。截至年底，我們的合併現金約為 2.8 億美元。我們有——我們對現金的使用——未來幾年的現金包括碳捕獲，Zafar Rizvi 將再次討論這一點。現在投資現金——現在我們正在投資現金和生息賬戶，主要是國庫券和貨幣市場賬戶以及我們正在處理的銀行，據我們所知，這是非常非常非常安全的。我們認為他們是頂級銀行，我們對我們的現金以非常非常好的方式進行投資感到非常滿意。與許多有債務的公司相比，我們從這些現金中賺取了可觀的利息。我們沒有太多——我們幾乎沒有債務。因此，在我們看來，這是目前投資現金的好方法。

We will buy back on dips. We have some plans for expansion of our ethanol plants, which the borrowers we will talk about. And we're always looking for additional ethanol plants to purchase at this time. We have nothing imminent, but if something were to come up, very good ethanol plant, we would certainly look at it.

我們會逢低買回。我們有一些擴大乙醇工廠的計劃，我們將討論借款人的問題。我們一直在尋找更多的乙醇工廠來購買。我們沒有什麼迫在眉睫的事情，但如果有什麼事情發生，非常好的乙醇工廠，我們肯定會考慮。

I'll now turn the call over to Zafar Rizvi, our Chief Executive Officer. Thank you.

我現在將電話轉給我們的首席執行官 Zafar Rizvi。謝謝。

Thank you, Stuart. Good morning, everyone. As I mentioned in our previous quarterly call, we continue to face challenging operations. Operating environment throughout of the year due to a number of factors, drought has affected the availability of coal and created a strong basis as Doug just mentioned, particularly at the Marian, South Creta location. And in addition, ethanol production is greater than the demand, which continue to negatively affect the crush margin.

謝謝你，斯圖爾特。大家，早安。正如我在之前的季度電話會議中提到的那樣，我們繼續面臨充滿挑戰的運營。由於多種因素，全年的運營環境，乾旱影響了煤炭的供應，並創造了堅實的基礎，正如道格剛才提到的那樣，特別是在南克里特島的瑪麗安地區。此外，乙醇產量大於需求，這繼續對壓榨利潤率產生負面影響。

The high price of the natural gas during the last quarter and year also negatively affected the profit margin in positive news. We have seen natural gas price drop considerably recently. And according to EIA, yesterday's weekly report shows ethanol production dropped under 1 million barrels a day, 10 weeks low retreated 17,000 barrels a day week-to-week. But the corn basis are still strong and expected to get much of the quota harvest. We are pleased with the availabailty of corn in the Gibson City Illinois area. However, because of growth in domestic export from the state coal bases are beginning to strain. We have seen weakness in the price of corn oil and DDG, but they are -- these are still selling above the cost.

上一季度和上一年度天然氣的高價格也對利好消息的利潤率產生了負面影響。我們最近看到天然氣價格大幅下跌。根據 EIA，昨天的每週報告顯示乙醇產量下降到每天 100 萬桶以下，創下 10 週新低，每週回落 17,000 桶。但玉米基差依然堅挺，有望獲得大部分配額收成。我們對伊利諾伊州吉布森市地區的玉米供應情況感到滿意。然而，由於國家煤炭基地的國內出口增長開始緊張。我們已經看到玉米油和 DDG 的價格疲軟，但它們的售價仍然高於成本。

Despite drought, the recent slowdown in export, the decline in the crush margin in other economic headwinds, we continue to source corn at reasonable price and don't face any major logistic issue or shortage of corn at this early stage of the first quarter 2023, we expect to breakeven or slightly profitable at this time, as Stuart just mentioned.

儘管乾旱、近期出口放緩、其他經濟逆風壓榨利潤下降，我們繼續以合理的價格採購玉米，在 2023 年第一季度的這個早期階段沒有面臨任何重大物流問題或玉米短缺，正如斯圖爾特剛才提到的，我們預計此時會實現收支平衡或略微盈利。

Let me give you some progress of our carbon sequestration project. These are the bullet points. The university successfully drilled a test well to a total depth of around 7,100 feet, in which almost 2,000 feet our Mount Simon sandstone was incurred. Completed geologically models are predicting the movement of the CO2 injection into the subsurface. The rock core analysis performed indicate very good reservoir quality.

讓我向您介紹我們的碳封存項目的一些進展情況。這些是要點。該大學成功地鑽了一口總深度約為 7,100 英尺的測試井，其中我們的西蒙山砂岩產生了近 2,000 英尺。已完成的地質模型正在預測 CO2 注入地下的運動。進行的岩心分析表明儲層質量非常好。

Completed water injection tests at the well itself to evaluate the expected movement of CO2 as well as expected Ploom area, testing indicates a very suitable storage for carbon sequestration. The 2D and 3D seismic testing was completed and indicates very good storage. Several other tests and modeling were performed to verify maximum injection pressure, reservoir quality, rock core analysis and expected movement of CO2 Ploom. These test results still shows this location is a very good target for carbon sequestration.

在井本身完成注水測試以評估 CO2 的預期移動以及預期的 Ploom 區域，測試表明非常適合碳封存的存儲。已完成 2D 和 3D 地震測試，表明儲存情況非常好。進行了其他幾項測試和建模，以驗證最大注入壓力、儲層質量、岩心分析和 CO2 Ploom 的預期運動。這些測試結果仍然表明這個位置是一個非常好的碳封存目標。

The design of the compressor facility is completed, the contract to build the compressor part of the facility have been signed and long lead time equipment has been ordered. The pipeline has a material identification number has been received. The Class VI permit for 3 injection wells with the capacity to store 90 million tons of carbon have been completed and submitted.

壓縮機設施的設計已經完成，建造壓縮機部分設施的合同已經簽署，並且已經訂購了長周期設備。已收到管道的材料標識號。 9000萬噸儲碳能力的3口注水井完成並報六類許可證。

The work on the pipeline FEED studies is expected to be finished by the early April 2020. All major lead equipment order for the compressor facility, which has been engineered and sized the contract to build the facility have been signed. We are currently working on a front-end engineering design study for short pipeline to deliver carbon from our carbon sequestration facility. We expect a prebuilt modular plant will be delivered by the end of December 2023, and then the building will be structured around the modular plant. We continue -- once again, this is highly technical, very early stage and time-consuming project, it has required considerable time to make progress.

管道 FEED 研究的工作預計將在 2020 年 4 月上旬完成。壓縮機設施的所有主要主要設備訂單都已經設計和確定，建造該設施的合同已經簽署。我們目前正在進行短管道的前端工程設計研究，以從我們的碳封存設施輸送碳。我們預計預建的模塊化工廠將在 2023 年 12 月底交付，然後建築物將圍繞模塊化工廠構建。我們繼續 - 再一次，這是一個技術含量高、處於早期階段且耗時的項目，它需要相當長的時間才能取得進展。

We cannot predict we will be successful, but we are pleased what we started 4 years ago now has achieved some big milestone.

我們無法預測我們會成功，但我們很高興我們 4 年前開始的工作現在已經取得了一些重要的里程碑。

As I also mentioned, in our previous call, we are evaluating several other projects that will increase production efficiency, improve energy efficiency to reduce carbon intensity as well as reduced water consumption at our plant. We believe we will be able to complete most of these projects soon. Completion of these projects will lead to a greater benefit under the Inflation Reduction Act passed by the Congress and will contribute to decreased cost of production.

正如我還提到的，在我們之前的電話會議中，我們正在評估其他幾個項目，這些項目將提高生產效率、提高能源效率以降低碳強度以及減少我們工廠的用水量。我們相信我們將能夠很快完成其中的大部分項目。這些項目的完成將根據國會通過的通貨膨脹減少法案帶來更大的利益，並將有助於降低生產成本。

As Stuart just mentioned, we also decided to increase the ethanol production capacity at One Earth Energy, Gibson City Illinois to 175 million gallons from 150 million. The clean fuel production credit Section 45Z, which is related to reduced fuel carbon intensity score could provide as much as $1 a gallon depending on carbon intensity of ethanol produced and sold. The Section 45 cash payment for the carbon sequestration increased to $85 metric ton, which we plan to switch out to the exploration of the 45D, which we will continue to enhance the strong position of our company.

正如斯圖爾特剛才提到的，我們還決定將伊利諾伊州吉布森市 One Earth Energy 的乙醇產能從 1.5 億加侖提高到 1.75 億加侖。與降低的燃料碳強度得分相關的清潔燃料生產信用第 45Z 節可以提供高達每加侖 1 美元，具體取決於生產和銷售的乙醇的碳強度。用於碳封存的第 45 節現金支付增加到 85 美元公噸，我們計劃將其轉為探索 45D，我們將繼續加強我們公司的強勢地位。

In summary, we are pleased to announce once again profitable quarter in a very, very difficult environment as well as good progress in our carbon sequestration project. We plan to increase ethanol production capacity to maximize benefit of the Inflation Reduction Act Section 45D and 45Q once 45Z expires. If we can achieve what we are planning to accomplish in the future, we will be ready to provide low carbon ethanol and by products while reducing carbon in the atmosphere.

總之，我們很高興地宣佈在非常非常困難的環境中再次盈利的季度，以及我們的碳封存項目取得的良好進展。我們計劃增加乙醇生產能力，以在 45Z 到期後最大限度地利用《降低通貨膨脹法》第 45D 條和 45Q 條的利益。如果我們能夠實現我們計劃在未來實現的目標，我們將準備好提供低碳乙醇及其副產品，同時減少大氣中的碳排放。

We cannot hit these carbon sequestration milestones, embark on projects to decrease carbon intensity, plan to increase ethanol production and achieve a tenth consecutive quarter of positive income without the hard work and dedication of our colleagues. We are very appreciative of their efforts to achieve these positive results.

如果沒有我們同事的辛勤工作和奉獻，我們就無法達到這些碳封存里程碑、開展降低碳強度的項目、計劃增加乙醇產量並實現連續第十個季度的正收入。我們非常感謝他們為取得這些積極成果所做的努力。

I will give the floor back to Stuart for further comments. Thank you, Stuart.

我會將發言權交還給 Stuart 以徵求進一步的意見。謝謝你，斯圖爾特。

Thanks, Zafar. In conclusion, we've outperformed most of the industry competitors again. We've done this. Again, we believe we have the best plants, great locations, great potential in carbon capture, which we think will be our future. And most importantly and the biggest difference between us and the rest of the industry, as Zafar mentioned, is our people. We feel we have the best people in the industry. And in the end, that's what separates us from the competition, and a lot of competition can have hopes and dreams but if you don't have good people to implement them, they just tend to never happen. We have proven in the past that we have good people and can run very, very good ethanol plants, and we plan and hope to do that in carbon capture. We look at that as our future.

謝謝，紮法爾。總之，我們再次超越了大多數行業競爭對手。我們已經做到了。同樣，我們相信我們擁有最好的工廠、優越的地理位置和碳捕獲的巨大潛力，我們認為這將是我們的未來。最重要的是，正如 Zafar 提到的，我們與業內其他公司之間最大的區別在於我們的員工。我們覺得我們擁有業內最優秀的人才。最後，這就是我們與競爭的區別，很多競爭可以有希望和夢想，但如果你沒有優秀的人來實現它們，它們往往永遠不會發生。我們過去已經證明，我們擁有優秀的人才，可以運行非常非常好的乙醇工廠，我們計劃並希望在碳捕獲方面做到這一點。我們將其視為我們的未來。

I'll now leave the call open to questions.

我現在將電話留待提問。

(Operator Instructions) Our first question comes from Jordan Levy with Truist Securities.

（操作員說明）我們的第一個問題來自 Truist Securities 的 Jordan Levy。

Stuart, Zafar and Doug. Nice quarter against another challenging backdrop. I think that's worth recognizing for sure. Maybe to start out, you mentioned a plan for expanding One Earth's capacity. Certainly seems like CCUS is moving forward in some of the initiatives this year. Maybe if you could just give us any commentary you might have around capital plans for '23 and what we should expect there?

斯圖爾特、紮法爾和道格。在另一個具有挑戰性的背景下，不錯的季度。我認為這值得肯定。也許一開始，您提到了一項擴大 One Earth 容量的計劃。當然，CCUS 在今年的一些舉措中似乎正在向前推進。也許如果你能給我們任何關於 23 年資本計劃的評論以及我們在那裡應該期待什麼？

Zafar?

紮法爾？

Jordan, we are -- as I said, we plan to -- expand to $175 million. We are in process of evaluating all the cost and the return on investment. We hope to have all of those disclosed at the June -- our quarterly call other at the shareholders meeting that what exactly total cash will take to or the ethanol facility expansion and the carbon sequestration, and we will have those numbers at that time.

喬丹，我們——正如我所說，我們計劃——擴大到 1.75 億美元。我們正在評估所有成本和投資回報。我們希望在 6 月份披露所有這些信息——我們在股東大會上的季度電話會議上將向其他人通報究竟需要多少現金或乙醇設施擴建和碳封存，屆時我們將獲得這些數字。

And presumably, would the expansion be throughout the course of this year?

據推測，擴張會貫穿今年嗎？

Yes, exactly. I think we have -- already had major evaluation has done. We are putting the financial models, and we are looking all of those information and see what's the return on investment. As I mentioned, that with the expansion from $150 million to if we go to $175 million, and that's about $25 million more ethanol production. And if we look at the benefit of 45Z, if we are able to achieve all those carbon intensity, which we are working on carbon sequestration and as I was what -- said -- mentioned, that from -- couple of years, even before the 45Z, we were trying to be -- make sure that we reduce our carbon intensity. So we -- all of those projects are really coming out to be great benefit for us to moving forward. So it's looks like we are trying to evaluate all that return on investment and putting the packet together. And hopefully, we will have by that. That's what it leads to saying spend 275 million, we could have considered to expand 200 million but we want to make sure we do not create deficit of coal in that area.

對，就是這樣。我認為我們已經完成了重大評估。我們正在建立財務模型，我們正在查看所有這些信息，看看投資回報是多少。正如我所提到的，隨著我們從 1.5 億美元擴大到 1.75 億美元，乙醇產量將增加約 2500 萬美元。如果我們看看 45Z 的好處，如果我們能夠實現所有這些碳強度，我們正在致力於碳封存，正如我所說的那樣 - 提到 - 從 - 幾年，甚至之前45Z，我們一直在努力——確保我們降低碳強度。所以我們 - 所有這些項目都真正地出來對我們前進有很大的好處。所以看起來我們正在嘗試評估所有投資回報並將數據包放在一起。希望我們能做到這一點。這就是它所說的花費 2.75 億美元，我們本可以考慮擴大 2 億美元，但我們希望確保我們不會在該地區造成煤炭短缺。

Great. And Zafar, I appreciate all the comments and updates you gave on carbon capture. Maybe just to back up and look at this on a high level. Can you just lay out for us -- I know you mentioned some targets for the end of the year moving into '24. Can you just sort of lay out for us where you expect to be exiting '23? What will be completed? And what you expect to kind of be working on at the time?

偉大的。 Zafar，我感謝您就碳捕獲提供的所有評論和更新。也許只是為了備份並從高層次上看這個。你能不能為我們制定計劃——我知道你提到了年底進入 24 年的一些目標。您能否為我們列出您希望退出 23 年的地方？什麼會完成？您當時希望從事什麼工作？

I think the most of our items, as I mentioned that we have ordered all the long-lead items, equipment, some of those equipment takes as long -- as time leading is to 1.5 years. And so we have taken -- order all those equipment. And also, as I mentioned, that we will expect to have our modular unit, which will be compressor facility will be delivered by the end of this year. And then we will have -- construction will start around that modular unit because that will take also atleast 6 to 7 months or longer because there's a lot of pipes that need to be connected, electric, building need to be built around it. And so our goal is to have this -- to finish all these projects by the end of 2024. Certainly, that's our goal, and it can happen some other uncertain things, which we do not come out and delay their project, but that's what our goal is by the end of 2023.

我認為我們的大部分物品，正如我提到的，我們已經訂購了所有長周期物品、設備，其中一些設備需要很長時間——因為時間領先是 1.5 年。所以我們採取了 - 訂購所有這些設備。而且，正如我提到的，我們將期望擁有我們的模塊化單元，這將是壓縮機設施，將於今年年底交付。然後我們將擁有 - 將圍繞該模塊化單元開始施工，因為這也將至少需要 6 到 7 個月或更長時間，因為需要連接很多管道，電力，需要圍繞它建造建築物。所以我們的目標是到 2024 年底完成所有這些項目。當然，這是我們的目標，它可能會發生其他一些不確定的事情，我們不會出來推遲他們的項目，但這就是我們的目標是到 2023 年底。

Jordan, one other thing you should know and that people are -- a lot of people are announcing CO2 projects in the ethanol industry. But all they're really doing is tapping into pipelines and they're not getting the bulk of the economic benefits. The economic benefits are up to -- for the years '26, '27 and '28 $1 a gallon. We hope that -- we expect to have 175 million gallon plant. So even if we get half of that, whatever we receive we will receive at all, whereas most of these companies happen into pipelines are dependent on the pipelines being built. They're announcing that they're doing CO2 capture, but they're really not doing their own CO2 capture. We are doing our own. We've been doing this as Zafar mentioned, for 4 years, and this is our project. This is our shareholders' project. It's not something where we have to share the bulk of the revenues with the pipeline company. And the pipeline company, of course, then has you captive and has the ability and they will take a good percentage of the profits. In our case, all profits come to our shareholders. And again, we're a small company, 18 million shares, but we think it can be very, very significant. That's our plan, and that's what we hope and expect.

喬丹，還有一件事你應該知道，那就是人們——很多人都在宣布乙醇行業的二氧化碳項目。但他們真正做的只是利用管道，並沒有獲得大部分經濟利益。經濟效益高達 26 年、27 年和 28 年每加侖 1 美元。我們希望 - 我們希望擁有 1.75 億加侖的工廠。因此，即使我們得到一半，無論我們收到什麼，我們都會收到，而這些公司中的大多數碰巧進入管道取決於正在建設的管道。他們宣布他們正在進行 CO2 捕獲，但他們實際上並沒有進行自己的 CO2 捕獲。我們正在做我們自己的。正如 Zafar 所說，我們已經這樣做了 4 年，這就是我們的項目。這是我們股東的項目。這不是我們必須與管道公司分享大部分收入的地方。當然，管道公司會俘虜你，有能力，他們會拿走很大一部分利潤。就我們而言，所有利潤都歸我們的股東所有。再一次，我們是一家小公司，擁有 1800 萬股，但我們認為它可能非常非常重要。這是我們的計劃，也是我們所希望和期待的。

Exactly yes, that's the major difference between us and others. So -- and also, I think as Stuart mentioned, we were really trying to look at it 4 years ago when there was no 45Z at that time. 45Q was $50, now it's $85. So all these benefits are really coming to see some productive...

是的，這是我們和其他人之間的主要區別。所以——而且，我認為正如 Stuart 提到的那樣，我們真的在 4 年前嘗試研究它，當時還沒有 45Z。 45Q 是 50 美元，現在是 85 美元。所以所有這些好處真的會帶來一些富有成效的......

They will accrue to our shareholders as Zafar is saying.

正如 Zafar 所說，它們將歸屬於我們的股東。

Exactly.

確切地。

I think that's great commentary. I really appreciate it. I'll leave it at that.

我認為這是很好的評論。對此，我真的非常感激。我會留在那裡。

Thanks, Jordan.

謝謝，喬丹。

Our next question comes from Chris Sakai with Singular Research.

我們的下一個問題來自奇異研究公司的 Chris Sakai。

Can you talk about where you see the countries of largest export for 2023?

您能談談您認為 2023 年最大出口國的哪些國家嗎？

Export of ethanol, you mean?

乙醇出口，你是說？

Yes.

是的。

Okay. The Canada has exported -- imported 502 million gallons. And I think -- and South Korea, 156, Northern land 99. Total export for 2020 was 1.3 billion gallons compared to 2021 was 1.2 billion gallons and that was 9% higher than 2021.

好的。加拿大已出口——進口 5.02 億加侖。我認為 - 韓國 156，北部地區 99。2020 年的總出口量為 13 億加侖，而 2021 年為 12 億加侖，比 2021 年高出 9%。

Okay. Are you seeing any increased cost in your -- in rail due to all the recent train derailments?

好的。由於最近發生的所有火車脫軌事故，您是否看到鐵路成本增加了？

Not really. I think the railroad always increase their rates, they basically is -- has monopoly on that track on the direction. So there's really always increase their rates. But recently, we have not seen it due to this situation, which is derailed and increase in the rate.

並不真地。我認為鐵路總是提高他們的費率，他們基本上是——在那個軌道上壟斷了方向。所以他們總是在提高利率。但最近，由於這種情況，我們沒有看到它出軌和增加率。

Okay. Can you talk about the permitting process so far for the CCS?

好的。你能談談到目前為止 CCS 的許可程序嗎？

I'm sorry, could you repeat your question, please?

對不起，你能重複你的問題嗎？

How is the permitting processing -- process going?

許可處理過程如何進行？

The permitting process, we have submitted the permit, which all the requirements, which requested. We completed all the documents. Since that time, they have a couple of questions, which we answered them. And we -- they confirmed that they have received all the documents and it is under review. So from there, we cannot control, it depends on the government agency, how long they were going to take. But we expect that we should receive the permit sooner than anybody else because we already have done previously, our test well and they know those area, and we applied for the test well permit previously, and we received at that time. So we hope that we will receive sooner, and we now rest is really depend on the agency.

在許可過程中，我們已經提交了許可，其中所有要求，所要求的。我們完成了所有文件。從那時起，他們有幾個問題，我們回答了他們。我們--他們確認他們已經收到所有文件並且正在審查中。因此，從那以後，我們無法控制，這取決於政府機構，他們要花多長時間。但是我們希望我們應該比其他任何人更快地獲得許可證，因為我們之前已經做過，我們的測試很好並且他們知道那些地區，我們之前申請了測試井許可證，我們當時就收到了。所以我們希望我們能早點收到，我們現在休息真的取決於代理。

Our next question comes from Graham Price with Raymond James.

我們的下一個問題來自 Graham Price 和 Raymond James。

First off, I was just wondering about your thoughts around the M&A landscape as it relates to producing assets. How valuations are looking versus a year or 2 ago?

首先，我只是想知道您對與生產資產相關的併購領域的看法。與一年或兩年前相比估值如何？

We haven't seen anything that -- that's anything up for sale to be honest, so I can't tell you how valuations are. But I would assume that the up significant people would want significantly more for their plants than they did a year or 2 ago. For no other reason, everyone has had some type of carbon -- every public company leads to have some type of carbon capture plans. And so they think their companies are worth more. Our contention is that the pipeline companies that they're dealing with will end up either -- first of all, we think they'll be delayed. Second of all, we think that they will not contribute to the bottom line what some of these companies think. But in the meantime, they are valuing their companies more than they did a year or 2 ago for sure because of the opportunity, because of the legislation that just passed that Zafar mentioned, we now can get up to $1 a gallon for 45Z, $85 a ton for 45Q, that's a lot of money to be distributed to different people. In our case, we hope to keep the bulk of it.

我們還沒有看到任何東西——老實說，這是待售的東西，所以我不能告訴你估值是多少。但我認為，與一兩年前相比，重要的人對他們的植物的需求要多得多。沒有其他原因，每個人都有某種類型的碳——每家上市公司都會制定某種類型的碳捕獲計劃。所以他們認為他們的公司更值錢。我們的論點是，與他們打交道的管道公司最終要么——首先，我們認為他們會被推遲。其次，我們認為它們不會像其中一些公司所認為的那樣對底線做出貢獻。但與此同時，由於機會，由於 Zafar 提到的剛剛通過的立法，他們肯定比一兩年前更重視他們的公司，我們現在可以為 45Z 獲得每加侖 1 美元，85 美元一噸換45Q，分給不同的人是一筆不小的數目。在我們的案例中，我們希望保留其中的大部分。

Okay. Got it. Understood. And then for my follow-up, had a more macro policy question. So the EPA recently proposed allowing year-round E15 blending in the Midwest. Just wondering, do you think this will happen? And does that plan go far enough in your opinion?

好的。知道了。明白了。然後對於我的後續行動，有一個更宏觀的政策問題。因此，美國環保署最近提議允許在中西部地區全年混合 E15。只是想知道，你認為這會發生嗎？您認為該計劃是否足夠深入？

Zafar, you want to answer?

紮法爾，你想回答嗎？

Yes, it's hard to say. I think the different -- as you can see, the different states are trying to implement and to in Iowa and other on several other states trying to all year around, and they applied for the exemption from the EPA. I hope it's all year around E15 because if it's not all year around, it's discourage the gas station to have 6 -- 8 or 9 months in a year, and then they have to discontinue and then start over. So that's what we hope and -- but we cannot predict what Congress or any EPA will probably will do that. There is already a legislation trying to introduce in Congress to allow all year around. And hopefully, that happened.

是的，這很難說。我認為不同的是——正如你所看到的，不同的州正試圖在愛荷華州和其他幾個州嘗試全年實施，並且他們申請了 EPA 的豁免。我希望它全年都在 E15 左右，因為如果不是全年，加油站一年中有 6-8 或 9 個月是不鼓勵的，然後他們必須停止並重新開始。所以這就是我們所希望的 - 但我們無法預測國會或任何 EPA 可能會這樣做。已經有一項立法試圖在國會中提出，以允許全年。希望那發生了。

Mr. Rose, there are no further questions at this time.

羅斯先生，現在沒有其他問題了。

Okay. Well, we thank everyone for listening, and we look forward to talking through the end of this quarter and talking to everyone again after the end of this quarter. Thank you. Bye.

好的。好吧，我們感謝大家的聆聽，我們期待在本季度末進行討論，並在本季度結束後再次與大家進行討論。謝謝。再見。

That does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your line. Have a great day, everyone.

這確實結束了今天的電話會議。我們感謝您的參與並請您斷開您的線路。祝大家有個美好的一天。