We prepared the following discussion and analysis to help you better
understand our financial condition, changes in our financial condition, and
results of operations for the three and six month periods ended
Forward Looking Statements
This report contains forward-looking statements that involve future events, our future performance and our future operations and actions. In some cases you can identify forward-looking statements by the use of words such as "may," "should," "anticipate," "believe," "expect," "plan," "future," "intend," "could," "estimate," "predict," "hope," "potential," "continue," or the negative of these terms or other similar expressions. These forward-looking statements are only our predictions and involve numerous assumptions, risks and uncertainties. Our actual results or actions may differ materially from these forward-looking statements for many reasons, including the following factors:
•Reductions in the corn-based ethanol use requirement in the Federal Renewable Fuels Standard; •Market prices and availability of corn that we require to operate the ethanol plant; •Continued economic impacts from the COVID-19 pandemic, including reduced gasoline demand; •Continued economic impacts of the crisis inUkraine , including increased commodities prices and effect of Sanctions; •Lower oil prices which result in lower ethanol prices; •Negative operating margins which result from lower ethanol prices; •Lower distillers grains prices which result from the Chinese anti-dumping and countervailing duty tariffs; •Lower ethanol prices due to the Chinese ethanol tariff and the Brazilian ethanol tariff; •Logistics difficulties preventing us from delivering our products to our customers; •Fluctuations in the price and market for ethanol, distillers grains and corn oil; •Availability and costs of products and raw materials, particularly corn and natural gas; •Changes in the environmental regulations that apply to our plant operations and our ability to comply with such regulations; •Ethanol supply exceeding demand and corresponding ethanol price reductions impacting our ability to operate profitably and maintain a positive spread between the selling price of our products and our raw material costs; •Our ability to generate and maintain sufficient liquidity to fund our operations and meet our necessary capital expenditures; •Our ability to continue to meet our loan covenants; •Limitations and restrictions contained in the instruments and agreements governing our indebtedness; •Results of our hedging transactions and other risk management strategies; •Changes and advances in ethanol production technology; and •Competition from alternative fuels and alternative fuel additives.
Overview
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