Saumya Jain

Saumya Jain inquired about Tyson Foods' recent initiatives to reformulate products and remove certain additives, asking how the company balances these quality improvements with cost and consumer pricing sensitivity, and if any measurable consumer response has been observed.

Answer

Chief Growth Officer Kristina Lambert expressed pride in the product reformulations, which have been ongoing for decades to meet evolving consumer expectations. She stated that balancing quality improvements with affordability and convenience is a daily practice, and that no negative impact has been observed; rather, a positive impact is expected as packaging is updated. She anticipates continued demand growth as consumers seek improved nutrition. Saumya Jain then asked if M&A is being considered given a jump in retail-branded volume sales and peers engaging in M&A, and for more color on the capital allocation strategy. CFO Curt Calaway reiterated Tyson's disciplined, deliberate, and forward-looking capital allocation priorities: maintaining financial strength, investing in the business (organic growth), and returning cash to shareholders. He noted the company's strong balance sheet and disciplined approach to inorganic opportunities, balancing growth, consumer trends, and shareholder returns.

Saumya Jain followed up on the jump in retail-branded volume sales, noting that peers engage in M&A to grow brands, and asked if M&A is something Tyson would consider or for more color on its capital allocation strategy.

Answer

CFO Curt Calaway reiterated that capital allocation priorities remain disciplined: maintaining financial strength, investing in the business, and returning cash to shareholders. He highlighted strong financial strength and organic growth opportunities. Regarding M&A, he stated that Tyson has a disciplined approach to inorganic opportunities, balancing growth, consumer trends, and shareholder returns.

Saumya Jain asked about significant changes in the South Korean market over the past year, the outlook for 2026, and how the Asian data center market differs from the U.S. market, also seeking more color on carbon capture opportunities beyond ExxonMobil.

Answer

President and CEO Jason Few noted strong momentum in Korea for repowering existing installed base (over 100 MW), affirming Korea's continued position as the largest fuel cell market. He mentioned the MOU with Innoverse for a large data center in Korea and anticipated strong data center growth across Asia. Regarding carbon capture, Mr. Few distinguished between ExxonMobil's focus on external carbon capture and FuelCell Energy's 'carbon recovery' from its own fuel, emphasizing its appeal to data center customers for decarbonization due to low emissions, low noise, and potential for CO2 sale or sequestration.

Saumya Jain asked about significant changes in the South Korean market over the past year, the outlook for 2026, and how the data center market in South Korea or Asia generally differs from the U.S. He also sought more information on carbon capture opportunities with partners beyond ExxonMobil.

Answer

President and CEO Jason Few highlighted strong momentum in South Korea for repowering existing projects, noting it remains the world's largest fuel cell market. He mentioned the MOU with Innuverse for a large data center in Korea and strong data center growth across Asia. Regarding carbon capture, Mr. Few distinguished between 'carbon capture' (from external sources, like the Exxon project) and 'carbon recovery' (from FuelCell's own power generation), noting active discussions with data center customers about carbon recovery due to the platform's low emissions, quiet operation, and potential for CO2 sales or sequestration.

Saumya Jain of UBS inquired about the commercial opportunities for FuelCell Energy's TriGen platform and the company's perspective on how the 45V hydrogen tax credit regulations are developing.

Answer

President and CEO Jason Few stated that while there are rumors of a 45V update before Christmas, the current regulatory uncertainty has pushed some hydrogen adoption timelines 'to the right.' He anticipates that clearer rules will reopen opportunities for the TriGen platform, which can produce low-to-zero carbon hydrogen. Few also highlighted the continued commitment to hydrogen from major auto manufacturers like Toyota and Honda as a positive long-term driver.

Saumya Jain of UBS Group AG asked about the potential for further development in Delaware South following recent investments and how the company views the long-term CapEx split between its North and South systems. She also requested more color on producer activity for the second half of the year.

Answer

CEO Jamie Welch noted that while Delaware North has seen more recent investment due to high activity and less existing infrastructure, the ECCC pipeline unlocks new potential by connecting New Mexico gas to Texas, and capital will follow producer opportunities. SVP & CFO Trevor Howard stated the H2 2025 ramp is driven by Kings Landing and well developments in both Delaware North and South. SVP of Commercial, Kris Kindrick, added that producer delays are for varied reasons, but the underlying rock quality remains excellent for 2026.

Saumya Jain from UBS inquired about near-term trends in gas-to-oil ratios (GORs), the long-term outlook for the Bakken, and the current cadence of gas processing and oil terminaling volumes.

Answer

President & COO John Gatling explained that GORs are increasing as expected for a maturing basin, with long-term gas volumes projected to grow while oil remains relatively flat. He also confirmed that throughput volumes are expected to continue growing through the third and fourth quarters, consistent with full-year guidance, with any long-term plan changes to be updated in January.

Saumya Jain inquired about the RNG project at the American Environmental Landfill in Tulsa, asking about potential expansion opportunities and the company's forward-looking strategy for the site.

Answer

President and CEO Sean McClain confirmed the plan to build and construct an RNG processing facility at the Tulsa site, which currently hosts a smaller Renewable Electricity facility that will remain operational. He explained the decision to add RNG capacity is a result of a measurable increase in available gas feedstock, driven by collaboration with the landfill and targeted well-field investments.

Saumya Jain of Jefferies inquired about the Renewable Natural Gas (RNG) project at the American Environmental Landfill, asking about potential expansion opportunities and the company's forward-looking strategy for the site.

Answer

Sean McClain, President and CEO, confirmed the plan to build and construct an RNG processing facility at the Tulsa, Oklahoma site, which currently hosts a smaller Renewable Electricity facility. He explained that the decision was driven by a measurable increase in available gas feedstock resulting from collaboration with the landfill and targeted well-field investments. McClain expressed excitement about the project having dual-commodity production capacity.

Saumya Jain of UBS inquired about Montauk's outlook on potential changes to LCFS credit prices, considering upcoming elections and ongoing rulemaking by the California Air Resources Board (CARB).

Answer

CFO Kevin Van Asdalan stated that while the company does not provide price guidance, they are bullish that the ongoing CARB rulemaking, with a key meeting expected in November, will result in a beneficial and appreciable increase in LCFS pricing. He noted that facilities like Pico are well-positioned to benefit from any future price uplift.

Saumya Jain of UBS inquired about Montauk's outlook on potential changes to LCFS credit prices, considering upcoming rulemaking from the California Air Resource Board (CARB) and the political landscape.

Answer

CFO Kevin Van Asdalan stated that while the company does not provide price guidance, management is 'bullish' that upcoming CARB rulemaking will be beneficial and lead to an 'appreciable increase' in LCFS pricing. He highlighted that the Pico facility is well-positioned to benefit from any future price uplift.

Saumya Jain from UBS asked for the reason behind the delay of the Second Apex RNG facility's start-up from Q4 2024 to 2025.

Answer

CFO Kevin Van Asdalan clarified that the delay was primarily due to the timing of receiving necessary permits and components for the site. He confirmed the new commissioning target is Q1 2025 and stated that the delay is not expected to materially impact 2024 production volumes. The project was initiated to meet capacity needs as the landfill host increases waste intake.

Saumya Jain inquired if RNG volumes from transportation were shifting to power generation or data centers and asked for an update on the company's major partnerships with Total, BP, and Chevron.

Answer

President and CEO Andrew Littlefair stated that approximately 80% of RNG still goes to the transportation market, which remains the highest-value use. He confirmed that Total is still the largest shareholder, the co-marketing relationship with BP is deep and ongoing, and the partnership with Chevron is seeing renewed interest as the market reassesses the viability of electric trucks.

Saumya Jain asked for insight on UPS's purchase of 250 Cummins X15N natural gas engines and how that decision might impact Clean Energy's business.

Answer

CEO Andrew Littlefair and Executive Robert Vreeland characterized UPS as a long-time pioneer in natural gas vehicles, viewing their significant order as a strong endorsement of the X15N engine. They confirmed Clean Energy has a major existing supply relationship with UPS and anticipates providing RNG for these new trucks, reinforcing the engine's market validation.

Saumya Jain questioned the company's outlook on tariffs, particularly concerning used cooking oil (UCO) and Chinese biodiesel, and the resulting effect on ethanol crush margins. She also asked for the outlook on local and global protein markets and margins.

Answer

Imre Havasi, SVP of Trading, expressed optimism for distillers corn oil (DCO) prices, citing its low carbon intensity (CI) score, restrictions on imported UCO, and anticipated RVO increases. For protein, he described the domestic market as flat but highlighted significant progress in securing higher-margin sales for aqua and pet food, which is expected to improve the overall margin mix for Green Plains' specialized protein products.

Saumya Jain of UBS questioned the expected price premium for distillers corn oil (DCO) over soybean oil following the updated GREET model and asked about the company's view on the impact of potential trade tariffs.

Answer

Todd Becker, President and CEO, confirmed DCO is already seeing a $0.04 to $0.05 per pound premium and believes it could reach $0.07 to $0.10, supported by all plants now being CORSIA certified. Regarding tariffs, he noted the ban on Chinese UCO is beneficial and that global demand for low-CI fuels provides some insulation from potential new tariffs.

Saumya Jain asked for an update on the progress of the partnership with Shell (SFCT) and the operational status of the Tharaldson joint venture.

Answer

Executive Leslie van der Meulen reported that the SFCT process has successfully started up in York, producing its first cellulosic ethanol, and will next focus on second-gen corn oil and protein validation. CEO Todd Becker added that the Tharaldson JV is ramping up production, opening new markets on the West Coast due to its low-toxin, high-quality protein.

Saumya Jain questioned the company's outlook on the data center backup power generation market and its potential benefits for Plug Power in 2025.

Answer

CEO Andrew Marsh provided a direct response, stating he does not see data center backup power as a significant opportunity in 2025. He positioned it as a longer-term play, likely for 2028-2029, citing the need for extensive hydrogen storage infrastructure, such as pipelines, to support long-duration outages effectively.

Saumya Jain asked about the likelihood of additional price hikes in 2025 and the company's strategic path to achieving positive gross margins.

Answer

CEO Andy Marsh indicated that significant price increases have already been implemented and future hikes would primarily be a response to new inflationary pressures, such as tariffs. CFO Paul Middleton added that the path to positive gross margin is driven by working through older backlog, increasing sales volume, reducing material costs, and workforce optimization, highlighting the 37% quarter-over-quarter gross margin improvement in Q3 as evidence of this progress.

Saumya Jain from UBS inquired about the potential for additional price hikes and the company's strategy for achieving positive gross margins.

Answer

CEO Andrew Marsh stated that future price hikes would depend on inflationary pressures like tariffs, but current pricing for new deals is profitable. CFO Paul Middleton added that the path to positive gross margins relies on sales volume, cost reductions, workforce optimization, and the full impact of recent price increases, noting a 37% quarter-over-quarter improvement in Q3.

Saumya Jain asked for the EBITDA per gallon margin for the quarter, its outlook, and whether the full-year CapEx outlook of $100 million had changed.

Answer

CEO Todd Borgmann stated the EBITDA per gallon margin was consistent with the prior quarter, around $0.16, and would have been higher without a $6 million feedstock lag impact. He also confirmed that the full-year CapEx guidance range remains unchanged, though actual spending may come in slightly lower.

Saumya Jain of UBS asked about Gevo's confidence in raising the equity portion of its project financing and inquired about the company's annualized RNG production outlook for the year.

Answer

CEO Dr. Patrick Gruber expressed high confidence in attracting equity investors for the Net-Zero 1 project, noting that the DOE's extensive due diligence has de-risked the project for potential partners. He stated that annualized RNG production is expected to reach approximately 400,000 million BTUs this year, an increase from the 325 million BTUs produced last year.

Saumya Jain requested updates on the Solaris order, potential new orders from New Flyer, and Ballard's strategic positioning in the U.S. rail market.

Answer

CEO Randall MacEwen highlighted strong growth in the bus market, noting execution against the Solaris order and a new order from Wrightbus. He mentioned that New Flyer typically orders later in the year and that U.S. low-emission grant awards are up 150%, which is encouraging. For rail, he sees significant opportunities developing in both passenger and freight locomotives in North America, expecting key market indicators in the next 6-12 months.

Saumya Jain of UBS requested updates on the Solaris order, potential new orders from New Flyer, and Ballard's strategy for the U.S. rail market.

Answer

CEO Randall MacEwen highlighted strong growth in the bus market and noted that New Flyer typically orders later in the year. He mentioned incremental orders from Solaris but nothing on the scale of the prior large order. For the rail market, he expressed excitement for both passenger and freight applications in North America, believing hydrogen is the only viable decarbonization path for heavy freight and expecting key market indicators in the next 6-12 months.

Saumya Jain asked about the potential impact of tariffs on Aemetis's RNG and SAF production, the key drivers for the forecasted balance sheet improvement, and the company's debt outlook for 2025.

Answer

Chairman and CEO Eric McAfee explained that the RNG and SAF value chains are almost entirely domestic, minimizing any direct tariff impact. He detailed that balance sheet improvement will be driven by several factors: continued debt repayment ($15.5M in Q1), significant new LCFS revenues upon pathway approvals, additional revenue from new dairies coming online, cash proceeds from the planned India subsidiary IPO, and monetization of the new 45Z production tax credits starting in 2025.