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    Peter Gastreich • Water Tower Research

    Peter Gastreich's questions to Gevo Inc (GEVO) leadership

    Peter Gastreich's questions to Gevo Inc (GEVO) leadership • Q2 2025

    Question

    Peter Gastreich of Water Tower Research LLC questioned how the 45Z outcome affects capital allocation at the North Dakota site and asked for an update on the Verity platform's customer count and sales pipeline.

    Answer

    CEO Patrick Gruber and COO Chris Ryan explained that 45Z primarily influences shorter-term opportunities like ethanol expansion, rather than the long-term ATJ projects. CBO Paul Bloom reported that Verity currently has five ethanol plant customers and is focused on demonstrating its full capabilities at Gevo's own North Dakota facility to drive future growth.

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    Peter Gastreich's questions to Gevo Inc (GEVO) leadership • Q1 2025

    Question

    Peter Gastreich of Water Tower Research asked if the customers for the 50% sold-out capacity of the new ATJ-30 project were new or existing. He also inquired about the theoretical expansion potential for alcohol-to-jet production at the Gevo North Dakota site.

    Answer

    CEO Patrick Gruber explained that the customers for the ATJ-30 project are different, as its equity-based financing allows for more flexible contract structures compared to the debt-financed ATJ-60 project. Regarding expansion, Gruber stated the North Dakota site has room to expand its ethanol production and could accommodate another ATJ-30 plant, highlighting the project's modular design as key to their global deployment strategy.

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    Peter Gastreich's questions to Gevo Inc (GEVO) leadership • Q4 2024

    Question

    Peter Gastreich of Water Tower Research questioned the timing of cash flow from carbon credits at the North Dakota plant, the assumptions behind its $30-$60 million adjusted EBITDA projection, and the nature of the internal control weakness disclosed in the 10-K.

    Answer

    VP of Corporate Development Eric Frey explained that the 45Z tax credit is a major driver of the EBITDA range, potentially contributing $30-$40 million alone based on the plant's low carbon intensity score. CEO Patrick Gruber added that the range also accounts for ethanol margin variability. Regarding the control weakness, Gruber stated it was due to mischaracterizing certain project expenses that should have been capitalized, an error that has been identified and is being remediated.

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    Peter Gastreich's questions to Gevo Inc (GEVO) leadership • Q3 2024

    Question

    Peter Gastreich of Water Tower Research asked about the impact of a recent South Dakota referendum on the Summit Carbon pipeline and inquired about the logistical feasibility of using the newly acquired Red Trail facility as a CCS option for the Net-Zero 1 project.

    Answer

    CEO Dr. Patrick Gruber explained that the referendum was about landowner rights, not pipeline approval, and that authority remains with the Public Utilities Commission. He stated that while they expect the pipeline to proceed, Gevo has a viable contingency plan to transport CO2 by rail from Net-Zero 1 to the Red Trail sequestration site, noting that the economics for this option appear to work.

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    Peter Gastreich's questions to REX American Resources Corp (REX) leadership

    Peter Gastreich's questions to REX American Resources Corp (REX) leadership • Q1 2025

    Question

    Peter Gastreich of Water Tower Research LLC asked about the key drivers of REX's consistent profitability, potential regulatory changes that could benefit the company, and the overall outlook for ethanol industry fundamentals and margins.

    Answer

    Executive Chairman Stuart Rose attributed the company's success to top-tier management, particularly CEO Zafar Rizvi's detailed oversight, and high-quality plant personnel. CEO Zafar Rizvi added that strong team communication and disciplined profit-locking strategies are crucial. Regarding regulation, Stuart Rose described the situation in Washington as being in 'great limbo,' while Zafar Rizvi highlighted positive state-level developments in Illinois for their carbon capture project and noted the EPA's permit timeline remains a moving target. On the industry outlook, Zafar Rizvi expressed positivity for 2025, citing strong ethanol exports, a potentially large corn crop, and possible tariff reductions, while also monitoring natural gas prices as a key cost factor.

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