PEIX – Research / DD & Charts - Portfolio 2011 --
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Note: Information retrieved from various sources: Yahoo, Answers.com, Growth Energy.
About
PEIX –
Pacific Ethanol, Inc.
Sacramento, CA 95814
Phone: 916-403-2123
Website:
http://www.pacificethanol.net Shares Outstanding: 75.6M
Institutional ownership
http://www.nasdaq.com/asp/holdings.asp?symbol=PEIX&selected=PEIX Quote:
EPA to Allow Higher Ethanol Blends in 2001-06 Autos -
The Obama administration has decided to approve the use of higher levels of ethanol in automobiles made between 2001 and 2006, handing a victory to corn farmers and deepening a conflict with auto makers, oil refiners and other interests who oppose such a step.
WASHINGTON Jan 20 (Reuters) - The U.S. Environmental Protection Agency is expected to announce on Friday that gasoline blended with up to 15 percent ethanol is safe to use in vehicles built during the 2001 to 2006 model years, sources familiar with the matter told Reuters.
The EPA approved last October so-called E15 gasoline for cars and trucks made during 2007 and later. Gasoline for other vehicles can hold up to 10 percent ethanol.
The 50 percent ethanol boost in gasoline would benefit ethanol producers and the farmers that grow the corn from which most U.S. ethanol is made.
(Reporting by Tom Doggett; Editing by David Gregorio)
Business Summary Pacific Ethanol, Inc. produces and sells ethanol and its co-products in the western United States, primarily in California, Nevada, Arizona, Oregon, Colorado, Idaho, and Washington. It also provides transportation, storage, and delivery of ethanol through third-party service providers. The company’s co-products comprise wet distillers grains. It sells ethanol to gasoline refining and distribution companies, and wet distillers grains to dairy operators and animal feed distributors. The company was founded in 2003 and is headquartered in Sacramento, California.
In November 2005, Cascade Investment LLC, the investment vehicle owned by
Microsoft Corporation's Bill Gates, invested $84 million in Pacific Ethanol. The infusion of cash was followed in May 2006 with a $145 million stock sale to institutional investors, which accelerated plans for constructing a second plant near Boardman, Oregon. As the company pressed forward with its plans to complete all five plants by 2008, the years ahead promised to see the demand for ethanol increase substantially, with Pacific Ethanol holding sway as one of the country's largest producers.
Read more:
http://www.answers.com/topic/pacific-ethanol-inc#ixzz1BeLs3djF "In my years defending our great nation, I realized that America will never be truly safe as long as we depend on fossil fuel from other countries. Growth Energy is focused on the potential of agriculture and how it will strengthen America's energy security and grow our economy. Ethanol is more than a fuel, it's a solution." 
GENERAL WESLEY CLARK (RET.), GROWTH ENERGY CO-CHAIRMAN
http://www.growthenergy.org/about-growth-energy/about-intro/ Ethanol, also called ethyl alcohol, pure alcohol, grain alcohol, or drinking alcohol, is a volatile, flammable, colorless liquid. It is a powerful psychoactive drug and one of the oldest recreational drugs. It is best known as the type of alcohol found in alcoholic beverages and thermometers. In common usage, it is often referred to simply as alcohol or spirits.
Ethanol is a straight-chain alcohol, and its molecular formula is C2H5OH. Its empirical formula is C2H6O. An alternative notation is CH3–CH2–OH, which indicates that the carbon of a methyl group (CH3–) is attached to the carbon of a methylene group (–CH2–), which is attached to the oxygen of a hydroxyl group (–OH). It is a constitutional isomer of dimethyl ether. Ethanol is often abbreviated as EtOH, using the common organic chemistry notation of representing the ethyl group (C2H5) with Et.
The fermentation of sugar into ethanol is one of the earliest organic reactions employed by humanity. The intoxicating effects of ethanol consumption have been known since ancient times. In modern times, ethanol intended for industrial use is also produced from by-products of petroleum refining.
[2]
Ethanol has widespread use as a solvent of substances intended for human contact or consumption, including scents, flavorings, colorings, and medicines. In chemistry, it is both an essential solvent and a feedstock for the synthesis of other products. It has a long history as a fuel for heat and light, and more recently as a fuel for internal combustion engines.
Read more:
http://www.answers.com/topic/ethanol#ixzz1BeMzyEiW Profile: Pacific Ethanol, Inc..
Pacific Ethanol is the
largest producer of ethanol on the West Coast. Ethanol is a sugar-based biofuel, essentially a form of alcohol, which produces energy when burned. In the current social and political climate, where people are worried about problems that stem from gasoline use (like climate change, terrorism, and a thinner wallet), ethanol is being touted by many sources as the next major source of automotive fuel. Though it burns with only two-thirds of the energy of gasoline, it is relatively clean and is considered to be a renewable energy because it is most often made from corn (which can be regrown). Ethanol can also be produced from plant and animal wastes, known as cellulosic ethanol, which is generally considered to be more efficient and environmentally-friendly than corn-based ethanol. Pacific Ethanol has entered the cellulosic ethanol business, and is in the process of building its pilot production facility.
Pacific Ethanol sells its ethanol to petroleum refiners, who incorporate into gasoline blends to be sold at retail stations around the country. Its two largest customers, each with more than 10% of its sales shares, are responsible for 32% of the company's revenue
Driven by Demand™ Pacific Ethanol is a leader in producing and marketing low-carbon ethanol. Our destination model and state-of-the-art production practices allow us to produce ethanol that reduces carbon dioxide emissions by 40 percent compared to conventional gasoline. In addition, Pacific Ethanol is working to identify and develop other renewable fuel technologies, such as
cellulose-based ethanol production and bio-diesel. In order to meet demand for low-carbon ethanol, Pacific Ethanol is constructing over 420 million gallons of capacity by 2010 in strategic locations across the West. Central to our growth strategy is our destination business model, whereby each respective ethanol plant achieves lower process and transportation costs by servicing local markets for both fuel and feed, providing us a strategic advantage in the marketplace.
RECENT NEWS- Press Release Source: Pacific Ethanol, Inc. On Wednesday November 2, 2011, 8:30 am EDT
SACRAMENTO, Calif., Nov. 2, 2011 (GLOBE NEWSWIRE) -- Pacific Ethanol, Inc. (Nasdaq:PEIX - News), the leading marketer and producer of low-carbon renewable fuels in the Western United States, provided an update on its senior convertible notes.
The aggregate unpaid principal balance of the notes, originally $35.0 million as of October 6, 2010,
has declined to $820,000 as of November 1, 2011. The principal balance was $8.4 million as of October 3, 2011, the date of the Company's last update. To date, a total of $33.0 million in principal has been converted into 58.4 million common shares, at an average conversion price of $0.56 per share.
"We are pleased to report that we have retired nearly all the convertible debt six months ahead of schedule," said the company's president and CEO, Neil Koehler, "The proceeds raised under these notes allowed us to secure our ownership interest in the Pacific Ethanol plants and significantly improve our cash position. Through retiring the convertible notes and reporting positive financial results for the third quarter, we are building shareholder value and positioning the company for continued growth and profitability."
As previously announced, Pacific Ethanol elected to make its November 1, 2011 installment payment in cash. As a result of voluntary conversions by certain note holders, the November payment was reduced to less than $10,000. In addition, on November 1, 2011, Pacific Ethanol elected to pay its December 1, 2011 installment, also in an amount less than $10,000, in cash. Further, the company intends to pay any remaining amounts, subject to voluntary conversions by the note holders, in cash. As of November 1, 2011, Pacific Ethanol had approximately 75.6 million common shares outstanding.
Pacific Ethanol, Inc. Reports Third Quarter 2011 Financial Results http://finance.yahoo.com/news/Pacific-Ethanol-Inc-Reports-pz-3579580299.html?x=0&.v=1 Press Release Source: Pacific Ethanol, Inc. On Wednesday October 26, 2011, 4:10 pm EDT
• Achieved record net sales and total gallons sold for the quarter
•
Sequential net sales growth of 27% • Sequential increase in total gallons sold of 22%
• Grew operating income to $4.7 million from $1.2 million in the third quarter of 2010
•
Increased EPS to $0.12 from a loss of $1.10 in the third quarter of 2010 • Improved Adjusted EBITDA to $2.9 million from $0.9 million in the third quarter of 2010
•
Provides update on its senior convertible notes
SACRAMENTO, Calif., Oct. 26, 2011 (GLOBE NEWSWIRE) -- Pacific Ethanol, Inc. (Nasdaq:PEIX - News), the leading marketer and producer of low-carbon renewable fuels in the Western United States, reported its financial results for the three- and nine-month periods ended September 30, 2011.
Neil Koehler, the company's president and CEO, stated: "In the third quarter, we again delivered record net sales and total gallons sold driven by the continued execution of our diversified business strategy. We recorded the ninth consecutive quarter of growth in total gallons sold, bringing our compound annual growth rate to 75 percent over that period. Most importantly, we generated strong operating income and achieved profitability during the quarter. Further building on our growth strategy, after the close of the quarter, we secured a management agreement with ZeaChem that leverages our expertise in renewable fuel production to operate and maintain its cellulosic biorefinery. This agreement is significant in that it represents our first operations and maintenance arrangement beyond the Pacific Ethanol plants."
Financial Results for the Three Months Ended September 30, 2011 Net sales were at an all-time high of $271.6 million for the third quarter of 2011, compared to $46.0 million for the third quarter of 2010. Total gallons sold were 122.6 million for the third quarter of 2011, a sequential increase of 22% from the second quarter of 2011 and an increase of 71% over the 71.5 million gallons sold in the third quarter of 2010. The increase in net sales was primarily driven by the fact that the company did not consolidate the results of the Pacific Ethanol plants in the third quarter of 2010. The increase in total gallons sold was primarily due to continued strength in the company's marketing business and a 54% increase in average sales price per gallon. In addition, the company's third quarter 2011 results include the impact of the Stockton plant's operations whereas it was idled during the third quarter of 2010.
Gross profit was $8.2 million for the third quarter of 2011, compared to $4.0 million in the third quarter of 2010. The increase in gross profit was attributable to an improved commodity margin environment and the contribution from the three Pacific Ethanol plants that were operational during the period. SG&A expenses, including professional fees, were $3.5 million in the third quarter of 2011, compared to $2.7 million for the third quarter of 2010, with the increase primarily due to the consolidation of the Pacific Ethanol plants. Operating income for the third quarter of 2011 increased to $4.7 million from $1.2 million for the same period in 2010 primarily due to an improved commodity margin environment.
During the third quarter of 2011, the company recorded aggregate non-cash gains of $4.1 million for quarterly fair value adjustments on its convertible notes and warrants.
Net income available to common stockholders for the third quarter of 2011 was $4.0 million, compared to a net loss of $12.9 million for the third quarter of 2010, which included a loss on the company's investment in Front Range Energy, LLC of $12.1 million. Adjusted EBITDA, which excludes the company's fair value adjustments on its convertible notes and warrants and loss on its investment in Front Range Energy, LLC, improved to $2.9 million for the third quarter of 2011 from $0.9 million in the third quarter of 2010.
Financial Results for the Nine Months Ended September 30, 2011 For the nine months ended September 30, 2011, net sales were $659.4 million, compared to $194.1 million in the same period in 2010. For the nine months ended September 30, 2011, net income available to common stockholders was $4.2 million, compared to $83.2 million in the same period in 2010, which included a non-cash gain from bankruptcy exit of $119.4 million and a loss on the company's investment in Front Range Energy, LLC of $12.1 million. Adjusted EBITDA for the nine months ended September 30, 2011 was $5.6 million, an improvement from a loss of $12.3 million for the nine months ended September 30, 2010.
Senior Convertible Notes Update "We have made great progress in reducing our debt, and the principal balances of our convertible notes have declined at rates faster than anticipated under the terms of the notes," stated Bryon McGregor, the company's Chief Financial Officer. "Since the September payment, we have elected to make our payments in cash."
The aggregate unpaid principal balance of the notes as of October 25, 2011, has been reduced to $6.4 million from $8.4 million at October 3, 2011, the last time the company provided an update. As previously announced, the company elected to make its November 1, 2011 installment payment in cash. As a result of additional voluntary conversions through October 25, 2011, the November payment is currently expected to be $0.6 million. To date, a total of $27.4 million in principal has been converted into 40.3 million common shares, at an average conversion price of $0.68 per share. As of October 25, 2011, the company had approximately 56.6 million common shares outstanding.
PEIX submitted for Federal Grant: What is cellulosic ethanol The USDA announced Jan. 20 it has approved
$405 million in loan guarantees through the 9003 section of the 2008 Farm Bill to support the commercialization of
cellulosic ethanol at facilities.
http://www.ethanolproducer.com/articles/7433/usda-approves-loan-guarantees-for-3-cellulosic-projects Ethanol is a critical part of the country’s energy future. As an alternative fuel or a fuel additive, it has many advantages. Ethanol is made from renewable resources, reducing air pollution and carbon dioxide emissions that contribute to global warming. Ethanol also helps consumers by increasing domestic fuel supplies and refining capacity. The Energy Bill passed by Congress in 2005 requires an increase in ethanol use by refiners to 7.5 billion gallons by 2012.
Jan 20, reuters:
"The U.S. Environmental Protection Agency is expected to announce on Friday that gasoline blended with up to 15 percent ethanol is safe to use in vehicles built during the 2001 to 2006 model years, sources familiar with the matter told Reuters." I believe this will be the catalyst for PEIX reaching your mark. only good news from them this past month... next things to look for:
- E15 approval (Friday 21 Jan 2011)
- Madera Plant reopening (end of month maybe? Jan/Feb)
- meeting NASDAQ requirements well ahead of deadline (soon, if the E15 approval helps enough, Feb)
- earnings $$$ March 28, 2011
http://uk.reuters.com/article/idUKWNA930720110120 
Why Use Ethanol? Ethanol is higher in octane.
• E10 (10% ethanol and 90% gasoline) has an octane rating of 91.
• E85 (85% ethanol and 15% gasoline) has an octane rating of 105.
Ethanol is better for the environment.
• E85 reduces carbon dioxide greenhouse gases by 35%.
• E85 reduces carbon monoxide by 30%.
• E85 reduces fine particulate matter emissions by 50%.
• Ethanol is biodegradable and does not pollute groundwater.
Ethanol is a renewable resource grown by American farmers.
• A typical, 40-million gallon ethanol plant creates 32 full-time jobs and generates an additional $1.2 million in tax revenue for a community.
Ethanol reduces our dependence on foreign oil.
• For every barrel of ethanol produced, 1.2 barrels of petroleum are displaced.
Ethanol is compatible and reliable.
• All auto manufacturers approve the use of gasoline blended with 10% ethanol (E10).
• There are about six million flexible fuel vehicles on America's highways that can run on up to 85% ethanol.
• The Indy Racing League races E100 (pure ethanol).
• Ethanol burns cleaner, and does not leave fuel deposits
Recent News : EPA to Allow Higher Ethanol Blends in 2001-06 Autos
• By STEPHEN POWER JANUARY 20, 2011, 7:41 P.M. ET
WASHINGTON—
The Obama administration has decided to approve the use of higher levels of ethanol in automobiles made between 2001 and 2006, handing a victory to corn farmers and deepening a conflict with auto makers, oil refiners and other interests who oppose such a step.
The Environmental Protection Agency is expected to announce Friday that it will allow ethanol levels in gasoline blends to be as high as 15% for vehicles made between 2001 and 2006, up from the current 10% maximum, according to two people familiar with the matter.
The agency last fall approved the use of E15 for vehicles made between 2007 and the present, and has been awaiting the results of tests conducted by the government on older model vehicles to make a decision on whether higher ethanol blends were appropriate for those vehicles.
An EPA spokesman didn't immediately respond to a request for comment. The cause of boosting ethanol use in cars has been strongly championed by Growth Energy, an ethanol trade group led
by Wesley Clark, the retired Army general and 2004 Democratic presidential candidate.
Gen. Clark's group petitioned the EPA in 2009 for an increase in ethanol levels in gasoline blends.
Without the increase, the group said the U.S. won't be able to meet a congressional mandate requiring some
36 billion gallons of renewable fuel to be blended into the domestic fuel supply by 2022. Livestock ranchers, auto makers and oil refiners have all challenged the Obama administration's efforts to expand ethanol use in cars. While the groups have varying motives for opposing greater corn-ethanol production, they—along with many environmentalists—generally say the government hasn't conducted sufficient testing to warrant higher concentrations of ethanol in motor fuels. Some have also expressed concern that encouraging more ethanol production could exacerbate the recent run-up in food prices, by diverting corn away from food production to fuel production, but the ethanol industry has disputed such criticisms.
Write to Stephen Power at stephen.power@wsj.com
January 17, 2011 In Oregon, Pursuit Dynamics has announced that their ERS system installed at the Pacific Ethanol Columbia Plant is operating with no errors or stoppages and with all sub-systems working to design specification. Pursuit states that the analysis of the results allows them to confirm their previously forecast cost savings and yield improvements.
With the rollout going according to plan, Pursuit expects the plant at Boardman to be in full production byFebruary 2011. The second and third installations at MABE and Marquis are on schedule to go into their operational verification shortly, with the remaining four plants expected to enter operational verification over the course of the year. With its entire system, Pursuit is claiming savings in the neighborhood of $0.06/gallon for their “Optimization mode” and “Cycle Time mode”, but they do not state any estimates for their “Performance mode.”
Looking for a
Pure Play in Ethanol http://seekingalpha.com/article/247524-looking-for-a-pure-play-in-ethanol?source=yahoo We came across Pacific Ethanol (
PEIX) the other day when we were researching Valero's (VLO) presence in the ethanol business, and it raises the question: what if you wanted to invest in a pure play in ethanol?
According to various sources, the US produced about 10 billion gallons of fuel ethanol in 2009, and
there are some prospects for this business going forward, as we all know (topic for future discussion: what are the merits of this? More on that subject later.)
Pacific Ethanol resumes production in Stockton - Thu January 06, 2011 3:07 pm
Jan. 06--Sacramento's Pacific Ethanol Inc., continuing its post-bankruptcy comeback, said Tuesday it has resumed production at its Stockton plant.
The startup at Stockton, which can make up to 60 million gallons of ethanol a year, means three of Pacific Ethanol's (PEIX) four production plants are now running.
Pacific Ethanol's goal has been to become the
West Coast's leading maker of the fuel additive. But after prices collapsed, the company shut three of its plants down and put all four into bankruptcy reorganization in 2009.
The only plant still idle is the company's first facility, in Madera.
Pacific Ethanol has said it will start that plant up again when market conditions are better.
The Stockton announcement sent Pacific Ethanol's stock price up 23 cents a share. The stock closed at 96 cents on Nasdaq.
Pacific Ethanol Inc gets 180-day extension for continued Nasdaq listing. Thu December 30, 2010 8:02 am
Renewable fuels company Pacific Ethanol Inc (Nasdaq:PEIX) revealed on Wednesday that the company has received confirmation that it has met all of the requirements to be granted an additional 180 days, or
until 27 June 2011, to regain compliance with the minimum USD1.00 bid price per share requirement for continued listing on The Nasdaq Capital Market.
The company said that it may achieve compliance during the additional 180-day period if the closing bid price of its common stock is at
least USD $1.00 per share for a minimum of ten consecutive business days before 27 June 2011.
This notification reportedly has no immediate effect on the company's listing on The Nasdaq Capital Market nor on the trading of the company's common stock.
Pacific Ethanol to market AE Biofuels ethanol output
November 22, 2010 Sacramento-based Pacific Ethanol subsidiary Kinergy Marketing LLC has entered into an agreement to sell all ethanol produced at a facility in the Stanislaus County community of Keyes.
The agreement is with AE Advanced Fuels Keyes Inc., which will operate the
55-million-gallons-a-year facility.
Keyes is retrofitting the facility and expects it to be operational in the first quarter of 2011.
Neil Koehler, PEI president and CEO, said "Kinergy has consolidated a supply portfolio of marketing agreements with
the largest California ethanol facilities that are operating or plan to be operating in 2011 when the implementation of California's 'low-carbon fuel standard' begins. "This brings significant value to Pacific Ethanol and its California marketing partners with the rapidly increasing demand expected for low-carbon ethanol produced in California."
The low-carbon standard was the centerpiece of
a 2007 executive order from Gov. Arnold Schwarzenegger. Read more:
http://www.sacbee.com/2010/11/13/3181766/pacific-ethanol-signs-fuel-sales.html#ixzz1BeGzeVqm 
