Research – Gevo, Inc. (GEVO) – Supply Agreements Bolster Financing Discussions.

Narrower 4Q2019 loss in line with expectations. No change in 2020 estimates. Adjusted EBITDA of $(4.0) million was down from $(4.9) million in 4Q2018 as higher hydrocarbon more than offset lower ethanol production. Solid progress on Phase 1 goal to lower carbon intensity. The startup of wind energy and the upcoming move to renewable natural gas (RNG) use are signs of progress on Phase 1. Contracts with three dairies support RNG buildout to lower carbon intensity. Added hydrocarbon production is also possible.
Phase 2 expansion on the horizon with robust supply portfolio. Supply agreements of more than 17 million gallons per year might expand and additional agreements could trigger a boost in the planned capacity expansion. Major industry players appear interested in helping commercialize concept so post expansion production might pivot toward isooctane.Read More >>

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