GERS Receives Offer To Restart Litigation Against REX...

GERS Takes Lawsuit Against REX To Supreme Court...

https://www.supremecourt.gov/DocketPDF/20/20-769/161945/20201127111859745_20-%20Petition%20for%20Writ%20of%20Certiorari.pdf

The District Court's decision was based on the misguided, misleading and false premise that had the USPTO known of the offer to test letter, the patents wouldn't have issued.

This inconvenient truth was barred by the District Court. This begs the question: would a jury determine the USPTO had been deceived when the USPTO denies it?

Would a jury determine the July, 2003, testing a success when the test gyro clogged? Would a jury find the parameters of the patented methods were practiced when the syrup sample sat, settled and cooled before a (non substantial/few milliliters) portion of oil was separated in a non-continuous fashion?

Lastly, would a jury see GS's non-disclosure/confidential testing as an offer to sell? Or would they be convinced by other evidence? Specifically, GS's statement that Agri-Energy was their testing partner. That the results of the test were to be kept confidential until GS knew it worked for it's intended purpose in an operating ethanol plant, in real-time, without fouling the test centrifuge. That GS wanted to keep it confidential until they were ready to solicit the entire industry at once (Which happened shortly after the 2004 test). That in early 2004, Agri-Energy was still testing centrifuging thin stillage (not syrup).

This invention is worth $20 billion in corn oil for the life of the patents. Yet the judge on the federal circuit panel couldn't even pronounce the inventors name (Winsness is easy to pronounce). He couldn't take the time to learn the pronunciation of a name. Did he take the time to review the facts under proper procedures?

The District Court determined that had the USPTO been aware of the offer to test letter, that the patent would never had issued. The very same examiner, supposedly deceived by GS, reviewed the offer letter and determined she was not deceived at all.

This evidence was barred by the district court. Why?

It’s obvious a jury could rule in GS’s favor and GS was robbed of their constitutional right to trial by jury. The Court’s findings have been proven false. Another patent was issued to GS in May of 2020. The USPTO did a complete review. The Court refused to admit their faults, barred evidence and violated GS’s 7th amendment rights.

If there was ever a case the Supremes should review, it's this travesty of so called justice.


Good Luck To All$!$

REX And GERS To Settle Patent Lawsuit!$!$!$

Finally, after many years of litigation over REX's unlicensed use of GERS' corn oil extraction patents, the parties appear poised to settle the dispute.

The parties have until October 27, 2017 to "work out remaining details of a settlement between them."

https://drive.google.com/file/d/0B_ch8gAs4lCcS1B3LUc0azZlVTA/view

It's nice to see that REX and GERS are ready to work together!

Back To The Basics: ICM Abandons The AOS...

ICM sold REX their oil extraction system.

It appears the Advanced Oil System has been pulled off the market. Could this be settlement related?

www.icminc.com/products/advanced-oil-separation-system.html

The AOS is no longer a product offering.

http://www.icminc.com/products/base-tricanter-system.html

A small caption in this link states "information updated 9/12/17"

http://www.icminc.com/images/pdfs/product_sheets_international/Base%20Tricanter%20System.pdf

Also, no mention of the AOS in this recent Biodiesel Magazine article.

http://www.biodieselmagazine.com/articles/2516107/spotlight-here-to-serve-the-biodiesel-industry

Good Luck To All!$!$!$

I haven't followed REX for well over a year, due to busy-ness with other market sectors and various personal projects. As should be well-known, the market in the past has discounted REX's solid business fundamentals by selling off the stock when the oil/energy markets sour. That's the larger reality at present, so i don't expect to see much strength in REX's shareprice, regardless of whatever earnings are posted.

I would normally say that if REX's s/price fell far enough with an energy sector sell-off, i would be a buyer. I almost bought around $49 early last year, and we saw that REX soared to around $100 later in the year.

But now we live in a new era-- the Trump era. And who knows what craziness he and his cronies may try to enact vis-a-vis the ethanol sector.

These cashflow models imply REX American Resources $REX has 15% upside before earnings Friday:

Fair Value Source

I'm amazed that this one still trades at such a high forward P/E.

Annualizing for 2016 the earnings from Q4, on the basis of the lower new share-count, would make for EPS in the 2.20s for 2016 according to my quick math calculation. How can that support a shareprice in the $50s?

People here will know i love the company, but the fundamentals on supply/demand for oilprices and, by extension, gasoline prices, and therefore ethanol prices, mean that all will likely stay low for most of 2016.

At some point, likely in late 2016 or more likely during 2017 oilprices will rebound as supply & demand balance out, and we should see gasoline and ethanol prices rise again. But that point is a long way off, it seems.

It's interesting that the stockprice has been going up, despite the weakness in profit margins for the ethanol industry:

http://www.card.iastate.edu/research/bio/tools/hist_eth_gm.aspx

http://www.dtnprogressivefarmer.com/dtnag/common/link.do;jsessionid=0950E1D4EC6850D60CC6A7D224FDB783.agfreejvm2?symbolicName=/free/news/template1&product=/ag/news/ethanol/commentary&vendorReference=0702BB21&paneContentId=35&paneParentId=0

Likely the company has been fulfilling its promise to keep buying back its own shares after the sale of the Patriot plant.

$REX recent news/filings

bullish 60.59
bullish divergence

## source: finance.yahoo.com

Thu, 26 Nov 2015 16:17:09 GMT ~ Is Nobilis Health Corp (HLTH) A Good Stock To Buy?


read full: http://www.insidermonkey.com/blog/is-nobilis-health-corp-hlth-a-good-stock-to-buy-390191/
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Tue, 24 Nov 2015 15:00:00 GMT ~ REX American Resources to Report Q3 Results and Host Conference Call and Webcast on Wednesday, December 2

[Business Wire] - REX American Resources Corporation , a leading ethanol company, announced today that it will report its fiscal 2015 third quarter financial results on Wednesday, December 2, 2015 pre-market and will host a conference call and webcast at 11:00 a.m.

read full: http://finance.yahoo.com/news/rex-american-resources-report-q3-150000029.html
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Fri, 20 Nov 2015 12:45:00 GMT ~ What's Moving the Markets - Research on Aegean Marine, REX American Resources, SciClone and Blue Nile

[Accesswire] - NEW YORK, NY / ACCESSWIRE / November 20, 2015 / Moments ago, Trader's Choice released new research updates concerning several important developing situations including the following equities: Aegean Marine ...

read full: http://finance.yahoo.com/news/whats-moving-markets-research-aegean-124500762.html
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Tue, 10 Nov 2015 12:45:00 GMT ~ Moving Ahead of Averages, Technical Review - Research on Celadon Group, IXYS, REX American Resources and Resource Capital

[Accesswire] - NEW YORK, NY / ACCESSWIRE / November 10, 2015 / Moments ago, Trader's Choice released new research updates concerning several important developing situations including the following equities: Celadon Group ...

read full: http://finance.yahoo.com/news/moving-ahead-averages-technical-review-124500626.html
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Thu, 05 Nov 2015 13:15:00 GMT ~ Where Opportunity is Found - Research on Sanchez Energy, Xenoport, Aegean Marine Petroleum and REX American Resources

[Accesswire] - NEW YORK, NY / ACCESSWIRE / November 5, 2015 / Moments ago, Trader's Choice released new research updates concerning several important developing situations including the following equities: Sanchez Energy ...

read full: http://finance.yahoo.com/news/where-opportunity-found-research-sanchez-131500985.html
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$REX charts

basic chart ## source: stockcharts.com



basic chart ## source: stockscores.com



big daily chart ## source: stockcharts.com



big weekly chart ## source: stockcharts.com



$REX company information

## source: otcmarkets.com

Link: http://www.otcmarkets.com/stock/REX/company-info
Ticker: $REX
OTC Market Place: Not Available
CIK code: 0000744187
Company name: REX American Resources Corp.
Company website: http://www.rexstores.com
Incorporated In: DE, USA

$REX share structure

## source: otcmarkets.com

Market Value: $403,056,115 a/o Nov 25, 2015
Shares Outstanding: 6,905,193 a/o Aug 30, 2015
Float: Not Available
Authorized Shares: Not Available
Par Value: 0.01

$REX extra dd links

Company name: REX American Resources Corp.
Company website: http://www.rexstores.com

## STOCK DETAILS ##
After Hours Quote (nasdaq.com): http://www.nasdaq.com/symbol/REX/after-hours
Option Chain (nasdaq.com): http://www.nasdaq.com/symbol/REX/option-chain
Historical Prices (yahoo.com): http://finance.yahoo.com/q/hp?s=REX+Historical+Prices
Company Profile (yahoo.com): http://finance.yahoo.com/q/pr?s=REX+Profile
Industry (yahoo.com): http://finance.yahoo.com/q/in?s=REX+Industry

## COMPANY NEWS ##
Market Stream (nasdaq.com): http://www.nasdaq.com/symbol/REX/stream
Latest news (otcmarkets.com): http://www.otcmarkets.com/stock/REX/news - http://finance.yahoo.com/q/h?s=REX+Headlines

## STOCK ANALYSIS ##
Analyst Research (nasdaq.com): http://www.nasdaq.com/symbol/REX/analyst-research
Guru Analysis (nasdaq.com): http://www.nasdaq.com/symbol/REX/guru-analysis
Stock Report (nasdaq.com): http://www.nasdaq.com/symbol/REX/stock-report
Competitors (nasdaq.com): http://www.nasdaq.com/symbol/REX/competitors
Stock Consultant (nasdaq.com): http://www.nasdaq.com/symbol/REX/stock-consultant
Stock Comparison (nasdaq.com): http://www.nasdaq.com/symbol/REX/stock-comparison
Investopedia (investopedia.com): http://www.investopedia.com/markets/stocks/REX/?wa=0
Research Reports (otcmarkets.com): http://www.otcmarkets.com/stock/REX/research
Basic Tech. Analysis (yahoo.com): http://finance.yahoo.com/q/ta?s=REX+Basic+Tech.+Analysis
Barchart (barchart.com): http://www.barchart.com/quotes/stocks/REX
DTCC (dtcc.com): http://search2.dtcc.com/?q=REX+American+Resources+Corp.&x=10&y=8&sp_p=all&sp_f=ISO-8859-1
Spoke company information (spoke.com): http://www.spoke.com/search?utf8=%E2%9C%93&q=REX+American+Resources+Corp.
Corporation WIKI (corporationwiki.com): http://www.corporationwiki.com/search/results?term=REX+American+Resources+Corp.&x=0&y=0
WHOIS (domaintools.com): http://whois.domaintools.com/http://www.rexstores.com
Alexa (alexa.com): http://www.alexa.com/siteinfo/http://www.rexstores.com#
Corporate website internet archive (archive.org): http://web.archive.org/web/*/http://www.rexstores.com

## FUNDAMENTALS ##
Call Transcripts (nasdaq.com): http://www.nasdaq.com/symbol/REX/call-transcripts
Annual Report (companyspotlight.com): http://www.companyspotlight.com/library/companies/keyword/REX
Income Statement (nasdaq.com): http://www.nasdaq.com/symbol/REX/financials?query=income-statement
Revenue/EPS (nasdaq.com): http://www.nasdaq.com/symbol/REX/revenue-eps
SEC Filings (nasdaq.com): http://www.nasdaq.com/symbol/REX/sec-filings
Edgar filings (sec.gov): http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000744187&owner=exclude&count=40
Latest filings (otcmarkets.com): http://www.otcmarkets.com/stock/REX/filings
Latest financials (otcmarkets.com): http://www.otcmarkets.com/stock/REX/financials
Short Interest (nasdaq.com): http://www.nasdaq.com/symbol/REX/short-interest
Dividend History (nasdaq.com): http://www.nasdaq.com/symbol/REX/dividend-history
RegSho (regsho.com): http://www.regsho.com/tools/symbol_stats.php?sym=REX&search=search
OTC Short Report (otcshortreport.com): http://otcshortreport.com/index.php?index=REX
Short Sales (otcmarkets.com): http://www.otcmarkets.com/stock/REX/short-sales
Key Statistics (yahoo.com): http://finance.yahoo.com/q/ks?s=REX+Key+Statistics
Insider Roster (yahoo.com): http://finance.yahoo.com/q/ir?s=REX+Insider+Roster
Income Statement (yahoo.com): http://finance.yahoo.com/q/is?s=REX
Balance Sheet (yahoo.com): http://finance.yahoo.com/q/bs?s=REX
Cash Flow (yahoo.com): http://finance.yahoo.com/q/cf?s=REX+Cash+Flow&annual

## HOLDINGS ##
Major holdings (cnbc.com): http://data.cnbc.com/quotes/REX/tab/8.1
Insider transactions (yahoo.com): http://finance.yahoo.com/q/it?s=REX+Insider+Transactions
Insider transactions (secform4.com): http://www.secform4.com/insider-trading/REX.htm
Insider transactions (insidercrow.com): http://www.insidercow.com/history/company.jsp?company=REX
Ownership Summary (nasdaq.com): http://www.nasdaq.com/symbol/REX/ownership-summary
Institutional Holdings (nasdaq.com): http://www.nasdaq.com/symbol/REX/institutional-holdings
Insiders (SEC Form 4) (nasdaq.com): http://www.nasdaq.com/symbol/REX/insider-trades
Insider Disclosure (otcmarkets.com): http://www.otcmarkets.com/stock/REX/insider-transactions

## SOCIAL MEDIA AND OTHER VARIOUS SOURCES ##
PST (pennystocktweets.com): http://www.pennystocktweets.com/stocks/profile/REX
Market Watch (marketwatch.com): http://www.marketwatch.com/investing/stock/REX
Bloomberg (bloomberg.com): http://www.bloomberg.com/quote/REX:US
Morningstar (morningstar.com): http://quotes.morningstar.com/stock/s?t=REX
Bussinessweek (businessweek.com): http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=REX



$REX DD Notes ~ http://www.ddnotesmaker.com/REX

Here's the conf call transcript from S.Alpha... sorry for the general lack of proper spacing in cutting & pasting here [i put in just a few paragraph spaces]. You can read the original transcript at S.A.

Stuart Rose wasn't very bullish on guidance at all for this present qtr... I'm surprised the shareprice held up so strongly, especially given that most of the reported 2.16 EPS was income from the one-time sale of the Patriot plant. I think the fact that oilprice had a big jump today helped juice things... I wonder how many people just saw the "2.16 EPS" figure and bought without delving into the fine print. If so, this could come crashing back down into the $40s....



REX American Resources' (REX) CEO Zafar Rizvi on Q2 2015 Results - Earnings Call Transcript
REX American Resources Corporation (NYSE:REX)
Q2 2015 Results Earnings Conference Call
August 27, 2015 11:00 AM ET

Executives
Doug Bruggeman - Chief Financial Officer
Stuart Rose - Executive Chairman
Zafar Rizvi - Chief Executive Officer
Analysts
Jeremy Hellman - Singular Research
Katja Jancic - Sidoti & Company
David Koenig - Candlewood Investment Group

Operator
Ladies and gentlemen, thank you for standing by. Welcome to the REX American Resources Second Quarter Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions]
I would now like to turn the conference over to Doug Bruggeman, Chief Financial Officer. Please go ahead, sir.

Doug Bruggeman - Chief Financial Officer
Good morning and thank you for joining REX American Resources fiscal 2015 second quarter conference call. We’ll get to our presentation and comments momentarily, as well as your Q&A session, but first I’ll review the Safe Harbor disclosure. In addition to historical facts or statements of current conditions, today’s conference call contains forward-looking statements […]
I have joining me on the call today Stuart Rose, Executive Chairman of the Board and Zafar Rizvi, Chief Executive Officer. I’ll first review our financial performance and then turn the call over to Stuart for his commentary.
REX is pleased to report another strong earnings report for its fiscal 2015 second quarter relative to industry dynamics. Sales for the quarter did decline approximately 24% for the quarter, 29% for the first half of the year, primarily reflecting lower ethanol and DDG pricing. Sales for the quarter were based upon 57.9 million gallons this year versus 54.5 million gallons of ethanol in the prior year.
Gross profit declined from $38.8 million to $18.3 million for the second quarter as the crush spread was approximately $0.22 in the current year versus approximately $0.61 in the prior year. Gross profit for the first half of fiscal 2015 was $27.4 million versus $75.5 million in the prior year and the crush spread was approximately $0.18 this year versus approximately $0.60 last year.
SG&A increased in the current year second quarter, primarily due to higher percentage of incentive compensation caps being hit in the first quarter of last year, resulting in more of that compensation being recognized in this year’s second quarter. We recognized a pretax gain of $10.4 million from the sale of the Patriot plant, which includes $4.4 million of estimated receivables from escrowed funds. The final determination of escrowed payment is expected by the end of 2016. Equity method income was $5.1 million versus $7.2 million for the second quarter and $6.5 million versus $15.5 million for the first half of the fiscal year. We stopped recognizing equity method income on the Patriot plant as of May 31, 2015 upon the closing of that sale.
Our net income for the quarter was $16.4 million versus $21.9 million in the prior year and $20.3 million for the first half of the year versus $43.6 million in the prior year. Our earnings per share for the quarter were $2.16 versus $2.68 last year and for the first half of the year $2.62 versus $5.35 in the prior year. Earnings per share for the second quarter did begin to benefit from our recent aggressive share repurchase program.
I’ll now turn the call over to Stuart for his commentary.

Stuart Rose - Executive Chairman
Thank you, Doug. On the positive side, margins improved versus the first quarter. The rise was primarily due to a larger crush spread which had to do with a little bit higher price for the ethanol that we saw during the first quarter and higher DDG pricing than the first quarter. The sale of the interest in Patriot, of course increased their earnings per share; they gained on that and also decline in natural gas prices helped us.
DDG prices during the second quarter actually were above the -- on a price per ton basis above the price of corn and it benefitted from demand from China. Again, we proved as we do almost every quarter that we have the -- among the best plants in the industry, we have Fagen/ICM technology, good rail and good corn access. And it continues to allow us to outperform what other -- what a typical plant in our industry does.

Going forward, our earnings per share for the next quarter are tracking slightly above our first quarter and below our second quarter. Crush margins are being hurt by oil prices. They continue to decline. And that puts a cap on or at least does not help the price that we can sell our ethanol for and it’s something that could be an issue as -- if oil prices continue to decline and wholesale gasoline becomes cheaper than ethanol, it’s something we worry about.

We also have the political season opponents [ph] through Iowa; most Republicans aren’t adamantly against ethanol, they don’t necessarily or in most cases don’t support ethanol but aren’t adamantly against this. So, we don’t expect any legislation to come out, certainly not before Iowa and certainly not while the Democrats are in power. Hillary Clinton seems to support ethanol. So, we’ll see what happens there.

On the DDG side, China demand, China as everyone knows is not the market it was earlier in the year and their -- demand for DDG from China seems to be falling off. That could be an issue.

On the flip side, we have a lot of cash. We actually, even with the buybacks had a little bit more cash at the end of the quarter due to earnings and the sale of the Patriot plant than we had during the beginning of the quarter. We as of this date, have completed two 500,000 share buybacks and have authorized another 500,000 share buyback. Our stock is selling significantly below the asset replacement value. And we think this is -- we believe this is a good use of corporate capital. We continue to look for other opportunities in alternative energy.

We are the only one that we have found today that’s heavy oil steaming. We hope to have a permit from Californian test [ph] this fiscal year. Let’s see what happens. Even testing at today’s oil prices, they won’t be in the imminent -- it won’t be something that brings imminent returns to our shareholders and we’re going very-very slow on that.

We’ve decided not to spend our capital on a new [ethanol] plant and instead are working to gradually increase the existing capacity of our current plants. We believe we can do this at a much lower cost per gallon basis. And it’s an industry we know; these are plants we know and we feel very comfortable trying to increase the capacity of our current plants.

In terms of the major use of our capital, our board continues to believe there’s nothing better than buying in shares. Each time we buy in shares, as we continue to make money, we increase our earnings per share. And it’s our way of giving back our earnings to our shareholders.
In conclusion, we have the best plants; in our opinion, we have great locations; technology is very, very good; good rail; and most importantly, we have great people. They’ve allowed us to -- all these things together have allowed us to continue to outperform the industry in a time that at least relative to oil prices, a very, very difficult time.
I’ll leave now podium open to questions.

Question-and-Answer Session
Operator
[Operator Instructions] So, our first question comes from the line of Jeremy Hellman with Singular Research. Please proceed with your question.
Jeremy Hellman - Singular Research
Mainly wanted to touch on one of your comments there towards the end Stuart in terms of the decision to discontinue pursuit of a new build and was curious for some more color on that. And then also if that has any implications for potential purchase of existing plants that the market for those has changed favorably.
Stuart Rose - Executive Chairman
I’d add to your first question. When we first pursued a new build, margins were significantly higher than they are today. We also in the meantime have received some approvals, not all the approvals we need but some approvals. And we think we’re on track to increase the size of our existing plants. So, it’s as simple as one is significantly less, significantly less risk to our shareholders. And to be honest, buying in shares at current prices is a much more attractive option to our board and to me than building a brand new plant from scratch and all the risk involved in doing that. We can increase our earnings per share using the same capital buying in shares and expanding our plants. So, we chose at this time to go that route.
In terms of opportunities, I -- we have not seen any new opportunities. Most people in the industry don’t have a lot of debt; there’s no urgency to sell plants -- sell good plants. We wouldn’t buy bad plants. No urgency to sell good plants. So, we have not seen anything on that front to-date. Nothing has been presented to us new that would be of interest. That doesn’t mean that won’t happen in the future but to-date nothing, we have nothing to report on that.
Jeremy Hellman - Singular Research
And then just to follow up on the share buyback efforts. Do you have -- trying to think of the best way to frame the question; is there kind of a point where you say yourself that the resulting illiquidity in the marketplace becomes a concern? Do you kind of have a kind of target share count level or anything like that in mind or is it more just kind of opportunistic as the days…
Stuart Rose - Executive Chairman
It’s absolutely opportunistic and it’s funny that you say that. A few years ago when our share count was much higher, our stock was trading maybe 20,000-25,000 shares a day -- at a much, much lower price today it trades on 150,000 today and there’s a lot of liquidity out there. We’re cleaning some of it up but there’s a lot of liquidity. It has not been an issue. Even though we have less shares, it’s actually much bigger float than there was few years ago. And to answer your question directly, there’s no limit. If we look at the stock as a value and we have the cash and it’s a dip, my opinion is -- and almost always inevitably when there’s a dip like that there’s float. My opinion is it helps the shareholder, the existing shareholders to buy their shares in; it helps the people that want to sell their shares. In all ways, it’s a good thing for shareholders and we do not limit ourselves by float.
Operator
Our next question comes from the line of Katja Jancic with Sidoti & Company. Please proceed with your question.
Katja Jancic - Sidoti & Company
Stuart, you mentioned upgrading your facilities to increase the capacity. Can you talk a little bit more about that? How much you can increase, how much that will cost?
Stuart Rose - Executive Chairman
Zafar, do you want to answer that question?
Zafar Rizvi - Chief Executive Officer
Yes. We plan to spend somewhere between $10 million to $20 million over next 12 months. We think we can increase our capacity somewhere 10% to 15% of capacity. So, we’re expecting that we will be able to produce close to 135 million gallon in each location.
Doug Bruggeman - Chief Financial Officer
When Zafar speaking about each location, we’re talking about consolidated.
Katja Jancic - Sidoti & Company
So, this will be -- the $10 million to $20 million will be in the next 12 months, correct?
Zafar Rizvi - Chief Executive Officer
That’s correct.
Katja Jancic - Sidoti & Company
Now just going -- you are able to generate very strong free cash flow even during the tough times. You have a lot of cash on the balance sheet. What’s really beyond just share buybacks? Are there any other plans beyond…?
Stuart Rose - Executive Chairman
We’re always looking at other alternative energy things to look at but with oil prices where they are, it’s hard to find anything that’s great today. We have our heavy oil business that we’ve been trying to get permitted in California and hope to have that permitted, and we have a made little progress on that; hope to have that permitted. But again, that won’t be a money maker.
The best thing that we can see, if the industry stays tough, there might be that opportunity to buy an existing plant at a price that we consider reasonable. If that happens, we have the money to do it; we have the liquidity to do it. Other than that, expanding our plants and buying in shares really gives you the same effect. We took basically money that we received on selling the minority interest in Patriot and reinvested it in REX. And certainly as we’re making money, we expect it to increase our earnings per share forever basic one.
Katja Jancic - Sidoti & Company
Is there a chance you could create an MLP?
Stuart Rose - Executive Chairman
I have seen other people create MLPs and I would say -- to answer your question, I think the buyback is our way of returning. I’m not saying it’s good or bad in MLP but buyback in my mind is a best way to return capital to shareholders when you are a small company. You can’t do 50 different things and this is -- you are better off focusing on one thing whether it’s paying dividends, buyback or doing an MLP whatever. We look at this as the best. The board has historically looked at this as a best way of spending our excess capital. And it may change in the future, but that’s where we are today.
Operator
[Operator Instructions] Our next question comes from the line of Clayton Vernon [ph] with Vector Capital. Please proceed.
Unidentified Analyst
Mr. Rose, going forward, where can we expect the SG&A expenses on a quarterly basis today? They were up $2 million this quarter as you explained, hitting some performance bounces. But on a consolidated basis, the company is a bit smaller than it was last quarter. Can we expect these to be under $4 million on a quarterly basis?
Doug Bruggeman - Chief Financial Officer
They should be relatively stable throughout the year. The only thing that -- only variability you really get in that of any significance is when we book that incentive compensation. So, it should be relatively consistent subject to company profitability.
Unidentified Analyst
And second question, you mentioned excellent rail Mr. Rose. But by one metric, the basis the price you’re receiving for the ethanol versus the swaps that are created on the stream, that is continued to drift down a bit. Are you facing increased costs from the rail or any other logistical difficulties or does this simply reflect some form of a premium that’s built into the stream that’s available to producers as yourself?
Stuart Rose - Executive Chairman
Zafar, do you want to answer that?
Zafar Rizvi - Chief Executive Officer
I think it certainly depends on also which location we are shipping from. It is the transportation involved. So, that’s the reason -- if we’re shipping from new NuGen plant, certainly there is a transportation involved. And if we’re shipping from One Earth Energy, at Illinois, transportation is very cheap. That’s the reason it reflects that way.
Operator
Our next question comes from the line of David Koenig with Candlewood Investment Group. Please proceed.
David Koenig - Candlewood Investment Group
I had a quick question. You guys have sold an asset at a $1.65 on a per gallon basis. You guys are trading significantly below that, which I see is why you guys are doing the share buybacks. But where would you be interested in acquiring assets, what sort of context? And secondly, looking at some of your competitors, they seem to be trading at a significant discount to your stock. So, is your stock the right thing to be buying or is it some of the competitors?
Stuart Rose - Executive Chairman
We feel we have by far the -- relative to the public competitors, our plants are -- we consider our plants premium, we consider ourselves to be best of breed in ethanol and are -- depends on what metric you use on an earnings per share basis. I don’t think we are -- I think we’re probably -- I don’t think we’re -- I don’t know their stocks are well on that closely but I believe historically and probably now on an earnings per share basis, we sell at a lower -- we’re the best company and I believe our earnings per share basis is probably lower than theirs. So, I don’t know what metric maybe on a per gallon basis, we sell at a little higher price. But again we showed we have really, really good gallons and our earnings show that we have great plants.
The question on what price we would pay for a plant. Historically, we’ve always been bargain hunters in this industry; it’s tendency to also react and on the downside. So, the opportunity comes up. I can’t tell you what price the board would authorize paying for a plant. I just don’t know. But again, we felt on the selling side that we received a very good price for a minority interest; what price we would pay on the buying side, I can’t tell you today.
David Koenig - Candlewood Investment Group
And do you always look at things on earnings per share basis? Because we tend to look at things just on a per gallon basis of what you’re paying for the plants and that’s the discount that I am looking at…
Stuart Rose - Executive Chairman
Yes, and we, because we -- so if I were other people who had a lot of gallons not making much money, I would look it as a per gallon basis but since our plants make really -- relative to the industry do very well and always have done very well, we look at it on an earnings per share basis. I think most financial people in the general financial community probably look at it on an earnings per share basis whereas analysts dig a little deeper, use per gallon as one of their metrics, certainly not their only metric, but one of their metric. Another thing that we look at is book value per share. And like you mentioned earlier, we were able to buy our shares at significantly below replacement value for these plants and have done so.
David Koenig - Candlewood Investment Group
And on earnings per share basis and this is the final question… on earnings per share basis, you’re including the gain on sale of investment. Obviously that’s not going to be recurring sort of business, so there is no sort of multiple applied to it. So, doesn’t it seem a little bit high right with a 2.16 per share because you’re including that?
Stuart Rose - Executive Chairman
Again that’s up for you guys to decide. So, we put the numbers on the table. And if you want to be in the ethanol industry, we strongly feel we have a great company, great plants, great people and have done very, very well relative to the industry consistently.
David Koenig - Candlewood Investment Group
I agree with you completely. I see some of the public comps out there trading at $0.70 per gallon. So, it’s attractive at these levels. Thank you for the time.
Operator
There are no further questions at this time. I’ll turn the call back over to you. Please continue with your presentation or closing remarks.
Stuart Rose - Executive Chairman
We’d like to thank everyone for their support and we appreciate it very much. And thank you for listening. Bye.

REX American Resources (NYSE:REX): Q2 EPS of $2.16 beats by $0.73.

Revenue of $113.5M (-24.4% Y/Y) misses by $4.46M.

REX earnings report out this a.m.-- note that EPS was juiced up by sale of Patriot plant. There has been an amazing amount of share buybacks going on; as of this morning, they report only 6.9M shares after almost 1million shares bought in just the past 4 months (the share-count was 8.2M a year ago). Moreover, the board authorized a new capacity to buy up to 500,000 more shares.

http://seekingalpha.com/pr/14512256-rex-american-resources-reports-second-quarter-diluted-eps-of-2_16


REX American Resources Reports Second Quarter Diluted EPS of $2.16
Thu August 27, 2015 7:01 AM|Business Wire | About: REX


-Announces New 500,000 Share Repurchase Program-

DAYTON, Ohio--(BUSINESS WIRE)-- REX American Resources Corporation (REX) today reported financial results for its fiscal 2015 second quarter (Q2 15) ended July 31, 2015. REX management will host a conference call and webcast today at 11:00 a.m. ET to review the results.


Conference Call:
(212) 231-2930


Webcast / Replay URL:


www.rexamerican.com/Corp/Page4.aspx
The webcast will be available for replay for 30 days


REX American Resources Q2 15 results principally reflect its interests in seven ethanol production facilities. The operations of One Earth Energy, LLC (One Earth) and NuGen Energy, LLC (NuGen) are consolidated, while those of its five other plants are reported as equity in income of unconsolidated ethanol affiliates. During the fiscal 2015 second quarter the Company recorded a $10.4 million pre-tax gain related to the June sale of its 26.6% interest in Patriot Holdings, LLC (Patriot). As such, equity in income of unconsolidated ethanol affiliates for the quarter ended July 31, 2015 includes two months contribution from REXs prior interest in Patriot.

REXs Q2 15 net sales and revenue totaled $113.5 million, compared with $150.2 million in Q2 14, principally reflecting reduced ethanol and distillers grains pricing. As a result of the tightening of ethanol crush spread margins and decline in distiller grains pricing, the Companys Q2 15 gross profit was $18.3 million, compared with $38.8 million in the prior year period. Again reflecting the current operating environment, Q2 15 equity in income of unconsolidated ethanol affiliates was $5.1 million, compared with $7.2 million in Q2 14. As a result, income from continuing operations before income taxes and non-controlling interests in Q2 15 were $27.4 million, compared with $40.7 million in Q2 14.

Net income attributable to REX shareholders in Q2 15 was $16.4 million, compared with $21.9 million in Q2 14, while Q2 15 diluted net income per share attributable to REX common shareholders was $2.16 per share, compared to $2.68 per share in Q2 14. Per share results in Q2 15 and Q2 14 are based on 7,580,000 and 8,182,000 diluted weighted average shares outstanding, respectively.

REXs Executive Chairman of the Board, Stuart Rose, commented, The second quarter operating environment improved from earlier in the year, yet remained challenging as we continued to experience lower production margins compared to last year. REX again leveraged the strategic location of our plants and our overall business model to continue to generate profitable operating results.

Additionally, in June we received approximately $45 million representing the cash consideration related to our interest in the Patriot plant following its sale. We allocated after-tax proceeds and cash to repurchase approximately 998,000 REX shares in fiscal 2015 to date.

During the Companys fiscal second quarter, REX purchased 764,339 shares of its common stock (at an average price of $60.43 per share). Subsequent to the end of the fiscal second quarter, the Company repurchased an additional 233,243 shares (at an average price of $49.78 per share), thus completing the previously announced share repurchase program. Reflecting all purchases to date, REX presently has 6,905,193 shares of common stock outstanding.

In addition, on August 26, 2015, REXs Board of Directors approved a new share repurchase plan providing the Company with the authority to repurchase up to 500,000 shares of its common stock. Share repurchases will be made from time to time in open market or private transactions at prevailing market prices, and all shares purchased will be held in the Companys treasury for possible future use.

Balance Sheet

At July 31, 2015, REX had cash and cash equivalents of $138.1 million, $68.5 million of which was at the parent company and $69.6 million of which was at its consolidated ethanol production facilities. This compares with cash and cash equivalents of $137.7 million at January 31, 2015, $82.9 million of which was at the parent company and $54.8 million of which was at its consolidated ethanol production facilities.

The following table summarizes select data related to the Companys consolidated alternative energy interests:

Three Months

Ended
Six Months

Ended
July 31, July 31,


2015


2014


2015


2014
Average selling price per gallon of ethanol

$


1.50


$


2.18


$


1.46


$


2.16

Average selling price per ton of dried distillers grains

$


169.31


$


192.77


$


156.16


$


201.57

Average selling price per pound of non-food grade corn oil

$


0.28


$


0.36


$


0.28


$


0.34

Average selling price per ton of modified distillers grains

$


73.95


$


68.49


$


78.48


$


81.88

Average cost per bushel of grain $ 3.64 $ 4.47 $ 3.65 $ 4.41

Average cost of natural gas (per mmbtu)

$


3.42


$


5.14


$


4.13


$


7.27


Supplemental Data Related to REXs Alternative Energy Interests:

REX American Resources Corporation
Ethanol Ownership Interests/Effective Annual Gallons Shipped as of July 31, 2015

(gallons in millions)

Entity


Trailing
Twelve
Months
Gallons
Shipped


Current
REX
Ownership
Interest


REXs Current Effective
Ownership of Trailing
Twelve Month Gallons
Shipped

One Earth Energy, LLC
(Gibson City, IL)
112.7 74.6% 84.1

NuGen Energy, LLC
(Marion, SD)
117.3 99.5% 116.7

Big River Resources West Burlington, LLC
(West Burlington, IA)
105.8 9.7% 10.3

Big River Resources Galva, LLC
(Galva, IL)
115.9 9.7% 11.2

Big River United Energy, LLC
(Dyersville, IA)
123.8 4.9% 6.1

Big River Resources Boyceville, LLC
(Boyceville, WI)
57.7 9.7% 5.6
Total 633.2 n/a 234.0


About REX American Resources Corporation

REX American Resources has interests in six ethanol production facilities, which in aggregate shipped approximately 633 million gallons of ethanol over the twelve month period ended July 31, 2015. REXs effective ownership of the trailing twelve month gallons shipped (for the twelve months ended July 31, 2015) by the ethanol production facilities in which it currently has ownership interests was approximately 234 million gallons. Further information about REX is available at www.rexamerican.com.

This news announcement contains or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements can be identified by use of forward-looking terminology such as may, expect, believe, estimate, anticipate or continue or the negative thereof or other variations thereon or comparable terminology. Readers are cautioned that there are risks and uncertainties that could cause actual events or results to differ materially from those referred to in such forward-looking statements. These risks and uncertainties include the risk factors set forth from time to time in the Companys filings with the Securities and Exchange Commission and include among other things: the impact of legislative changes, the price volatility and availability of corn, dried and modified distillers grains, ethanol, corn oil, gasoline and natural gas, ethanol plants operating efficiently and according to forecasts and projections, changes in the national or regional economies, weather, transportation delays, the effects of terrorism or acts of war, changes in real estate market conditions and the impact of Internal Revenue Service audits. The Company does not intend to update publicly any forward-looking statements except as required by law.



REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share amounts)
Unaudited

Three Months

Ended
Six Months

Ended


July 31,


July 31,


2015


2014


2015


2014
Net sales and revenue $ 113,480 $ 150,231 $ 218,677 $ 306,156
Cost of sales 95,204 111,391 191,274 230,681
Gross profit 18,276 38,840 27,403 75,475
Selling, general and administrative expenses (6,456 ) (4,839 ) (10,909 ) (11,010 )
Gain on sale of investment 10,385 - 10,385 -
Equity in income of unconsolidated ethanol affiliates 5,063 7,245 6,543 15,542
Gain on disposal of property and equipment, net 12 - 495 -
Interest and other income 107 87 325 135
Interest expense - (591 ) - (1,283 )
Income from continuing operations before income taxes and non-controlling interests

27,387


40,742


34,242


78,859

Provision for income taxes (8,676 ) (14,017 ) (11,092 ) (27,937 )
Income from continuing operations including non-controlling interests

18,711


26,725


23,150


50,922

Loss from discontinued operations, net of tax - (12 ) - (9 )
Gain on disposal of discontinued operations, net of tax

-


5
- 5
Net income including non-controlling interests 18,711 26,718 23,150 50,918
Net income attributable to non-controlling interests (2,344 ) (4,811 ) (2,856 ) (7,269 )
Net income attributable to REX common shareholders $ 16,367 $ 21,907 $ 20,294 $ 43,649

Weighted average shares outstanding basic 7,580 8,182 7,737 8,150

Basic net income per share attributable to REX common shareholders

$


2.16


$


2.68


$


2.62


$


5.36


Weighted average shares outstanding diluted 7,580 8,182 7,737 8,166

Diluted net income per share attributable to REX common shareholders

$


2.16


$


2.68


$


2.62


$


5.35


Amounts attributable to REX common shareholders:
Income from continuing operations, net of tax $ 16,367 $ 21,914 $ 20,294 $ 43,653
Loss from discontinued operations, net of tax

-


(7


)
- (4 )
Net income $ 16,367 $ 21,907 $ 20,294 $ 43,649



REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands) Unaudited


ASSETS:


July 31,
2015


January 31,
2015
CURRENT ASSETS:
Cash and cash equivalents $ 138,107 $ 137,697
Restricted cash 203 -
Accounts receivable 13,736 8,794
Inventory 23,250 18,062
Refundable income taxes 2,958 3,019
Prepaid expenses and other 5,854 5,810
Deferred taxes-net

2,363


2,363

Total current assets 186,471 175,745
Property and equipment-net 189,056 194,447
Other assets 8,118 6,366
Equity method investments 41,778 80,389
TOTAL ASSETS $ 425,423 $ 456,947
LIABILITIES AND SHAREHOLDERS EQUITY
CURRENT LIABILITIES:
Accounts payable trade $ 11,975 $ 9,210
Accrued expenses and other current liabilities

8,223


10,347

Total current liabilities

20,198


19,557

LONG TERM LIABILITIES:
Deferred taxes 34,999 42,768
Other long term liabilities 797 1,658
Total long term liabilities

35,796


44,426

COMMITMENTS AND CONTINGENCIES
EQUITY:
REX shareholders equity:
Common stock, 45,000 shares authorized, 29,853 shares issued at par 299 299
Paid in capital 144,801 144,791
Retained earnings 464,732 444,438
Treasury stock, 22,715 shares

(285,745


)


(239,557


)
Total REX shareholders equity 324,087 349,971
Non-controlling interests 45,342 42,993
Total equity

369,429


392,964

TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $ 425,423 $ 456,947



REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands) Unaudited



Six Months Ended
July 31,


2015


2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 23,150 $ 50,918
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, impairment charges and amortization 9,430 8,350
Income from equity method investments (6,543 ) (15,542 )
Gain on sale of investment (10,385 ) -
Gain on disposal of property and equipment, net (495 ) (3 )
Dividends received from equity method investments 5,638 8,592
Derivative financial instruments - (770 )
Deferred income tax (8,644 ) 5,323
Stock based compensation expense 10 -
Excess tax benefit from stock option exercises - (441 )
Changes in assets and liabilities:
Accounts receivable (2,754 ) 2,494
Inventories (5,188 ) 2,083
Other assets 192 463
Accounts payable-trade 261 (198 )
Other liabilities (2,110 ) 353
Net cash provided by operating activities 2,562 61,622
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (5,865 ) (3,402 )
Restricted cash (203 ) 500
Restricted investment and deposits 250 273
Proceeds from sale of investment 45,476 -
Proceeds from sale of real estate and property and equipment, net 1,935 487
Other 12 -
Net cash provided by (used in) investing activities 41,605 (2,142 )
CASH FLOWS FROM FINANCING ACTIVITIES:

Payments of long term debt
- (13,726 )
Stock options exercised - 931
Payments to noncontrolling interests holders (507 ) (39 )
Excess tax benefit from stock option exercises - 441
Treasury stock acquired (43,250 ) -
Net cash used in financing activities (43,757 ) (12,393 )
NET INCREASE IN CASH AND CASH EQUIVALENTS 410 47,087
CASH AND CASH EQUIVALENTS-Beginning of year 137,697 105,149
CASH AND CASH EQUIVALENTS-End of year $ 138,107 $ 152,236
Non cash investing activities Accrued capital expenditures $ 370 $ 239
Non cash financing activities Accrued treasury stock purchases $ 2,938 $ -








http://cts.businesswire.com/ct/CT?id=bwnews&sty=20150827005170r1&sid=acqr7&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20150827005170/en/

REX American Resources Corporation
Douglas Bruggeman, 937-276-3931
Chief Financial Officer
or
JCIR
Joseph Jaffoni, Norberto Aja
212-835-8500
rex@jcir.com

Source: REX American Resources Corporation

REX American Resources to Report Q2 Results and Host Conference Call and Webcast on Thursday, August 27
10:01 : Thursday 20 August 2015


Note: i'm still not buying shares of REX for, as i've been saying since early in the year, the price of oil could go lower. In late June i was convinced the oil rally was over and would be plunging and indeed it has. I wish i'd committed significant funds to shorting oil with the 3X leveraged ETN DWTI (up from $60 in late June to as high as $190 recently).... I almost bought DWTI at $60 but instead decided (given the irrational buying support oil had been getting) to put too much money on a few pos biotech plays.......


Maybe oil prices will finally rebound in 2016 assuming demand from India (and China?) and elsewhere continues to rise and finally surpasses the supply glut.... Otherwise ethanol prices will likely wallow....

REX joins the S&P600:

http://seekingalpha.com/news/2628845-syna-rex-fnbc-higher-on-s-and-p-index-changes?uprof=44#email_link

Wow!--they didn't waste any time this quarter in repurchasing shares, with authorization to buy back another 500k... This will certainly help EPS in subsequent quarters.
Despite the great news, I'm still not going to be in this stock until i'm more sure about oilprices. The recent Saudi news of producing to the max and GS and Citibank's warnings about oil glut have me thinking oilprices could go south again.... Jmo...

REX American Resources Authorizes Repurchase of Additional 500,000 Shares

Today : Wednesday 24 June 2015

- Repurchased 466,444 Common Shares in Fiscal Second Quarter to Date -


REX American Resources Corporation (NYSE:REX) announced today that its Board of Directors approved a 500,000 share increase in the number of shares in its common stock repurchase plan. When combined with the 31,138 shares remaining from a previous authorization, the Company now has the authority to repurchase up to 531,138 shares of its common stock. During the Company’s fiscal second quarter to date (ends July 31, 2015), REX has purchased 466,444 shares (at an average price of $62.53 per share). Reflecting all purchases to date, REX presently has 7,436,331 shares of common stock outstanding.

Share repurchases will be made from time to time in open market or private transactions at prevailing market prices, and all shares purchased will be held in the Company’s treasury for possible future use.

About REX American Resources Corporation

REX American Resources has interests in six ethanol production facilities, which in aggregate shipped approximately 632 million gallons of ethanol over the twelve month period ended April 30, 2015. REX’s effective ownership of the trailing twelve month gallons shipped (for the twelve months ended April 30, 2015) by the ethanol production facilities in which it has ownership interests was approximately 231 million gallons. Further information about REX is available at www.rexamerican.com.

REX American Resources Names Zafar Rizvi Chief Executive Officer

Thursday 4 June 2015

Stuart Rose to Serve as Executive Chairman of the Board
REX Completes Sale of Interest in Patriot Holdings, LLC

REX American Resources Corporation (NYSE:REX) announced today that the Board of Directors named Zafar Rizvi, 65, Chief Executive Officer. Mr. Rizvi assumes the CEO role from Stuart Rose who will serve as the Executive Chairman of the Board of Directors with a focus on strategic development and financial community relations. Mr. Rizvi has served as REX’s President and Chief Operating Officer since 2010 and will continue to serve as President. Mr. Rizvi’s appointment acknowledges his significant contributions in establishing and generating value from REX’s alternative energy interests. REX also announced today that the Company’s Board of Directors, acting pursuant to the Company’s Bylaws, appointed Mr. Rizvi to the Board.

Mr. Rizvi has served REX in various roles since 1991 and for the last seventeen years has overseen the Company’s alternative energy interests. In his capacity of overseeing REX’s alternative energy investments, Mr. Rizvi has served since 2006 as President of Farmers Energy Incorporated, the Company’s alternative energy investment subsidiary. Reflecting his responsibility for REX’s alternative energy investments and operations Mr. Rizvi serves as Director of NuGen Energy, L.L.C., Big River Resources West Burlington, LLC and One Earth Energy LLC.

Stuart Rose, commented, “Zafar has contributed greatly to REX’s long-term record of success in the alternative energy sector. As a result, today REX has interests in six state-of-the-art ethanol production facilities with ownership of approximately 231 million gallons of ethanol per year. With the success of our alternative energy investments and operations we have built a robust balance sheet and we look forward to the continued benefit of Zafar’s contributions as we seek to build value for REX shareholders.”

Sale of Interest in Patriot Holdings, LLC

On June 1, 2015 a subsidiary of CHS Inc. (“CHS”) completed the previously announced acquisition of 100% of the ownership interests in Patriot Holdings, LLC (“Patriot”). With total merger consideration of approximate $196 million, REX’s 26.6% interest in Patriot resulted in a cash payment of approximately $45.5 million at the closing and an additional amount of approximately $5.0 million within 18 months assuming the full payment of the escrow holdbacks.

About REX American Resources Corporation

REX American Resources has interests in six ethanol production facilities, which in aggregate shipped approximately 632 million gallons of ethanol over the twelve month period ended April 30, 2015. REX’s effective ownership of the trailing twelve month gallons shipped (for the twelve months ended April 30, 2015) by the ethanol production facilities in which it has ownership interests was approximately 231 million gallons. Further information about REX is available at www.rexamerican.com.

It didn't turn out to be such a bad day afterall. I think the CC did put everyting a bit more in perspective.

In the CC, my question was asked by someone and fully answered about why REX wasn't buying more shares-- it's because they themselves were also bidding on buying out the Patriot plant....

Here's CEO Stuart Rose's reply to the Q:

Q: I guess I’m really surprised that you guys weren’t more aggressive in buying shares back, I mean, I guess could you help me understand?

Stuart Rose - Chairman and Chief Executive Officer
It was ... because we’re bidding on Patriot at that time and could very well have had to write – [...] close to $200 million on that and we were prepared to write a $200 million check, but we had to be able to have the ability to close quickly.....

REX Q1 2015 Earnings Conference Call

http://seekingalpha.com/article/3203506-rex-american-resources-rex-ceo-stuart-rose-on-q1-2015-results-earnings-call-transcript?part=single

May 21, 2015 11 AM ET

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the REX American Resources First Quarter Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions]

I would now like to turn the conference over to Mr. Doug Bruggeman, Chief Financial Officer. Please go ahead, sir.
Doug Bruggeman - Chief Financial Officer

Thank you, operator. I’m joined on the call this morning by Stuart Rose, Chairman of the Board and Zafar Rizvi, Chief Operating Officer.

We’ll get to our presentation and comments momentarily, as well as your Q&A, but first I’ll review the Safe Harbor disclosure. In addition to historical facts or statements of current conditions, today’s conference call contains forward-looking statements that involve risk and uncertainties within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the company’s current expectations and beliefs, but are not guarantees of future performance. As such, actual results may vary materially from expectations.

The risks and uncertainties associated with the forward-looking statements are described in today’s news announcement and in the company’s filings with the Securities and Exchange Commission, including the company’s reports on Form 10-K and 10-Q. REX American Resources assumes no obligation to publicly update or revise any forward-looking statements.

I’d now like to give a brief overview of our first quarter financial performance. We’re pleased to report earnings per share $0.50 for the first quarter during a period of lower crush margins for the industry which has since moderated. Sales declined approximately 33% due to lower ethanol and DDG pricing, gallons this year were 55.8 million versus 55.6 million last year for our two consolidated plants. Crush spreads this year were $0.11 versus $0.58 last year. When we’re talking about crush spread we’re just referring to the spread between ethanol and corn pricing.

SG&A was down mostly due to lower incentive compensation cost based upon lower profitability in the first quarter this year. Equity income from non-consolidated plants decreased from $8.3 million to $1.5 million, consistent with industry conditions. [indiscernible] all of the ethanol plants we’re involved in for the first quarter were profitable....


For the complete transcript: http://seekingalpha.com/article/3203506-rex-american-resources-rex-ceo-stuart-rose-on-q1-2015-results-earnings-call-transcript?part=single

I was surprised by the low prices for DDGs-- i have not been following the ethanol industry story as closely since i got out of REX and PEIX months ago, but in Dec. China had renewed their buying of DDGs and price had gone back up to ~$200. I guess REX had lingering low prices from prior contracts but i'm surprised by the price weakness.

Also, i would have thought their ethanol selling prices would have come up a bit.

And i'm also curious why REX wasn't buying more of their own shares when the s/price dipped badly on oilprice weakness in Q1. They could have easily bought another 300k-400k. Are they expecting s/prices much lower?

I'll likely wait until tonight to read the transcript of the CC, won't have time to listen to the call. If CEO Rose is too conservative about guidance, i think REX may drop back into $50s, especially if oilprice pulls back to mid-$50s.

A big question i have, likely to get asked by analysts if it's not in the prepared remarks, is What is REX going to do with that $44M (likely $49M) from the buyout of their 27% interest in Patriot plant?

Uggghh, the Saudi price-war over oil really wrought its damage throughout the energy sector.

Sad to see that REX's gorgeously high trailing 12-month (ttm) EPS has now fallen with the drop-off of last year's wonderful 2.55 EPS posted for Q1 and the substitution of this measly EPS of 0.50, which, incidentally, is obviously still WAY BETTER than GPRE's or PEIX's.

Now REX trades around a P/E of 8 instead of around just 6.

REX American Resources misses by $0.59, misses on revenue

REX Q1 EPS of $0.50 misses by $0.59
Revenue of $105.2M (-32.5% Y/Y) misses by $25.79M.

Source: http://seekingalpha.com/news/2537786-rex-american-resources-misses-by-0_59-misses-on-revenue

Doesn't sound to good

Didn't know earnings where today. Did they change the moments the quarters end? Q4 ended at the end of January

Here's the 8K filing about the recent buyout of Patriot ethanol plant-- REX will likely get $49M out of the deal given their partial ownership.

Mgmt has repurchased shares with a lot of their cash since last Fall when the s/price tanked during the oilprice war and energy-sector slumped. Unless there is some other better use of the money, there's no reason that REX couldn't use these funds to judiciously buy more shares of their own company (they would need the BOD to raise the limit of re-purchasable shares). At present s/price, with $49M they could buy back over 760,000 shares, or more than 1/10th their outstanding shares, which would of course increase their quarterly EPS on all subsequent earnings.

I'm not sure how all the math works out.... Patriot was supplying 12.8% of their production, according to the basic production table at their website, but i don't know if the math worked out to Patriot providing the same percentage of EPS to REX's bottom line. It would be great if REX could buy back an amount of their own shares that equals or surpasses the percentage of EPS that Patriot was providing, but i don't know how to figure that....

~~~~~~~~~~~~~~~~~~~~~~~~~~
Current Report Filing (8-k)
Date : 05/11/2015 @ 9:30AM
Source : Edgar (US Regulatory)
Stock : Rex American Resources Corp (REX)
Quote : 64.4 1.03 (1.63%) @ 4:03PM

Current Report Filing (8-k)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 11, 2015

REX AMERICAN RESOURCES CORPORATION

[...]
Item 8.01. Other Events

On April 23, 2015, the Board of Directors of Patriot Holdings, LLC (“Patriot”) approved a merger agreement with a subsidiary of CHS Inc. (“CHS”) that would result in CHS acquiring 100% of the ownership interest in Patriot. REX American Resources Corporation owns a 26.6% interest in Patriot. The merger agreement is subject to approval by the members of Patriot and normal and customary conditions to closing.

The total merger consideration is $196 million in cash, subject to certain adjustments relating to Patriot’s net working capital (targeted at $6.4 million) and cash and cash equivalents at the closing of the merger and certain escrow holdbacks and less the amounts of certain transaction expenses, outstanding indebtedness of Patriot and the estimated costs of completion of certain capital expenditure projects, if incomplete at closing.

REX expects to receive a cash payment of approximately $44 million at the closing. Assuming the full payment of the escrow holdbacks, REX would receive an additional amount of approximately $5 million. The closing of the merger is expected to occur on or about June 1, 2015 subject to the satisfaction or waiver of the closing conditions.


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

REX AMERICAN RESOURCES CORPORATION
Date: May 11, 2015 By: /s/ DOUGLAS L. BRUGGEMAN
----------------------------------------------------
Name: Douglas L. Bruggeman
Title: Vice President - Finance,
Chief Financial Officer
and Treasurer

New proxy statement on pp 21-2 contains latest insider and 5%+ ownership data. I don't have time to take out all the extra space-- bottom line is Dimensional Fund and JPMorgan are biggest holders of REX shares on the institutional side:

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT

The following table sets forth, as of April 21, 2015 (the record date for the Annual Meeting), certain information with respect to the beneficial ownership of REX Common Stock by each director and nominee for director, each named executive officer, all directors and executive officers as a group and those persons or groups known by us to own more than 5% of our Common Stock.

For purposes of this table, a person is considered to “beneficially own” any shares if the person, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise, has (or has the right to acquire within 60 days after April 21, 2015) sole or shared power (i) to vote or to direct the voting of the shares or (ii) to dispose or to direct the disposition of the shares. Unless otherwise indicated, voting power and investment power are exercised solely by the named person or shared with members of his household.















Name and Address


Common Stock
Beneficially Owned


Number


Percent(1)

Stuart A. Rose(2)








650,758








8.2


%




7720 Paragon Road













Dayton, Ohio 45459













Lawrence Tomchin








156,000








2.0


%




7720 Paragon Road













Dayton, Ohio 45459













Robert Davidoff








294,574








3.7


%




900 Third Avenue, 33rd Floor













New York, New York 10022













Edward M. Kress(3)








63,008








*


1100 Courthouse Plaza S.W.













Dayton, Ohio 45402













Charles A. Elcan








14,960








*


3100 West End Avenue, Suite 500













Nashville, Tennessee 37203













David S. Harris








—








—


24 Avon Road













Bronxville, New York 10708













Mervyn L. Alphonso








1,000








*


5 Royal Birkdale Drive













Springboro, Ohio 45066













Lee Fisher








—








—


PO Box 22388













Cleveland, Ohio 44122













J. Dennis Hastert








—








—


1825 Eye Street NW













Washington DC 20006













Douglas L. Bruggeman








33,000








*


7720 Paragon Road













Dayton, Ohio 45459













Zafar A. Rizvi








50,860








*


7720 Paragon Road













Dayton, Ohio 45459













All directors and executive officers as a group (11 persons)








1,264,160








16.0


%




Dimensional Fund Advisors LP(4)








692,497








8.8


%




Palisades West, Building One













6300 Bee Cave Road













Austin, Texas 78746


























21

















Name and Address


Common Stock
Beneficially Owned


Number


Percent(1)

JPMorgan Chase & Co.(5)








402,033








5.1


%




270 Park Avenue













New York, New York 10017

Interesting news from an 8-K filed today--
http://ih.advfn.com/p.php?pid=nmona&article=66559470&xref=newsalert
i have no idea what this means for REX. Does it mean that REX receives cash or shares in CHS as a result of the merger?

Item 8.01. Other Events

On April 23, 2015, the Board of Directors of Patriot Holdings, LLC (“Patriot”) approved a merger agreement with a subsidiary of CHS, Inc. (“CHS”) that would result in CHS owning 100% of the ownership interest in Patriot. REX American Resources Corporation owns a 26.6% interest in Patriot. The merger agreement is subject to the completion of due diligence, approval by the members of Patriot and normal and customary closing conditions for a transaction of this nature

Yes, its a mugs game to try to predict. However, here is an up to date view you might find compelling re oil. ( which I share, as you know):
From IV BRY Board: By Nawaralsaadi
STEO positive update

....The EIA has released a quite bullish short term outlook:

Non-OPEC supply estimates for 2015 were reduced by 30% to 700K barrels from 1m barrels estimated last month, and 2016K supply growth was reduced from 500K barrels to 400k barrels.

Non-OPEC Petroleum and Other Liquids Supply. EIA estimates that non-OPEC production grew by 2.2 million bbl/d in 2014. EIA expects non-OPEC production to grow by 0.7 million bbl/d in 2015 and by 0.4 million bbl/d in 2016, in part because of lower projected oil prices. The slower growth in total non-OPEC supply is largely attributable to slower production growth in the United States and Canada and declining production in Europe and Eurasia. After remaining relatively flat in 2015, production in Eurasia is projected to decline by more than 0.1 million bbl/d in 2016. The projected decline reflects reduced investment in Russia’s oil sector stemming from low oil prices and international sanctions.

Global demand estimates were left unchanged for 2015 at 1m barrels, but increased by 10% for 2016 to 1.1m barrels:

Global Petroleum and Other Liquids Consumption. EIA estimates that global consumption grew by 0.9 million bbl/d in 2014, averaging 92.0 million bbl/d for the year. EIA expects global consumption will grow by 1.0 million bbl/d in 2015 and by 1.1 million bbl/d in 2016. Projected global oil-consumption-weighted real gross domestic product (GDP), which increased by an estimated 2.7% in 2014, is projected to grow by 2.6% in 2015 and by 3.1% in 2016.

I believe the EIA will revise its 2015 demand estimates higher in the next few months as increased global demand data is increasingly undermining that 1m growth in demand estimate.

The large cut in supply estimates for 2015/2016 and the increase in demand estimates for 2016 has forced the EIA to reduce its global inventory expectation for 2015 from 2.9B to 2.88B barrels and to reduce 2016 inventory expectations from 2.92B to 2.87B barrels. This is quite meaningful since instead of a growth in inventories in 2016 the EIA is expecting draw-down as of now. These numbers do not include the potential impact of increased supplied from Iran in 2016.

Over the next 7 quarters the EIA expects world consumption growth to outpace non-OPEC production growth:




If it was not for OPEC maintaining production, the world be experiencing a significant supply deficit by Q4/2015.This is a strong confirmation that current oil prices are not sufficiently high for global supply to meet global demand without the contribution of low cost (and politically unstable) supplies from OPEC.


The latest estimate from the EIA and their impact on global petroleum inventories (a key price predictor) are eerily similar to what took place in 2009 with inventories expected to peak in Q3 and decline in Q4, the only difference is the magnitude with OECD inventories peaking at 2.77B in Q3/2009 compared to an estimated peak of 2.9B in Q3/2015 or 4.6% more. However once we factor in the difference in demand between 2009 and 2015 (84.88m compared to 93.87m) we notice that inventories in 2015 are actually lower at 30 days in forward demand in 2015 vs. 32 days in forward demand in 2009.

If it was not for Iran potentially increasingly supplies in 2016, this report would have confirmed a complete recovery in oil prices to the new marginal cost of global supply of $75 to $85 by 2H-2016. Iran notwithstanding, the oil market fundamentals are the healthiest I have seen them since this collapse has started, and future disruptions in supplies (economic or geopolitical) will have a material impact on global inventories and thus prices, and likewise for any major changes in demand due to low prices or better economic growth, such changes will also have a material impact on prices.

The worst is likely over for the oil market, and the WTI is right on queue with my projected move to $55+ in Q2 and thus the bottom for energy stocks is likely behind us.

Regards,

Nawar



Sources:



April 2015 STEO: http://www.eia.gov/forecasts/steo/pdf/steo_full.pdf

March 2010 STEO: http://www.eia.gov/forecasts/steo/archives/mar10.pdf

If I wasn't in there I would at least wait until oil stock would go down at least once

I have no idea. Oil in mid-$52s again is a surprise-- obviously Middle East unrest is behind the surge. But what about the continuing big production glut of oil? If oil heads back down to test $44 or lower, where do REX, PEIX and GPRE go?

There's just too much uncertainty for me right now to get invested. I'm not in the camp of those who think oil is headed up to $60s or $70s/barrel in the next few-to-several months.

I think "fracklog" is going to suppress oil prices for months to come.... Jmo....

Time to test re entry into ethanol sector.What do you think?

REX's 10-K yearly document is out for their year ending Jan. 31, 2015. This is, of course, THE one document that anyone interested in REX should read for all details about the company.

http://ih.advfn.com/p.php?pid=nmona&article=66143505&xref=newsalert

Yes, REX is clearly the most profitable of these ethanol cos. but just look how the stockprice is being treated today with oilprice falling 5%-- REX is back down under $60. That just seems "criminally unfair" after the company posted such an astounding year of growth, erased all debt, grew their cash-stash, and can likely still do at least 1.50-1.75 EPS per quarter even at the present lousy crush-spreads because they have the best profit margins in the business.

Oh well.....

As i've mentioned, i've been on the sidelines b/c i knew that all energy-sector names are being disrespected in the present market climate, but for anyone who has been holding shares throughout the debacle i wish you all inner strength! I do believe the tide will eventually turn and oilprices & ethanol prices will eventually rise back up, even if it's to a somewhat lower "new normal." REX could thrive under such conditions, posting at least 2.00 EPS quarterly and would deserve a P/E of at least 12, which should make for a s/price in the upper $90s, not to mention whatever growth they can achieve via continuing share repurchases (making earnings count for more EPS), increasing their ownership in their present plants, finding any new plants to acquire, etc.

I was really glad to hear that they're growing earnings simply through greater plant efficiencies. That's impressive!

Call transcript posted on sa. No more detail on buyback but will continue it. Outlook quite muted and describes it as in an industry down cycle. Margins squeezed but rex still making a profit. Nothing revealed in quantitative terms. Looks like a wait and see situation re improbing margins over their q1 and 2

Very interesting to see their avg prices on the basic commodities of their business. The natgas price is much higher than i would have thought-- it obviously includes basis costs (the CARD site on ethanol producers' margins always pads the natgas cost with basis costs, i.e., transport costs). For Q1 we should see somewhat lower natgas prices and also see MUCH higher DDG selling price-- avg probably around $200/ton. The avg selling price of ethanol, by contrast, will not be very pretty....

Average selling price per gallon of ethanol $ 1.81
Average selling price per ton of dried distillers grains $ 117.08
Average selling price per pound of non-food grade corn oil $ 0.28
Average selling price per ton of modified distillers grains $ 57.51
Average cost per bushel of grain $ 3.54
Average cost of natural gas (per mmbtu) [incl. basis] $ 5.22

Interesting to find out more about the share-repurchases in Q4; we got a taste on last earnings report that they had been buying in Q3 and in the first month of Q4:

"REX repurchased 121,200 common shares in Q3 ‘14 at an average price of $68.58 [i.e., for $8,311,896]. In Q4 ‘14 to date [Dec. 4], the Company repurchased an additional 57,610 common shares at an average price of $68.19 [for $3,928,426]."

And from today's PR:

"REX repurchased 161,224 common shares in Q4 ‘14 at an average price per share of $60.94 [...] Reflecting all share repurchases to date, REX has 7,899,607 shares outstanding."

So they repurchased nearly 104k shares in the last two months of Q4, i.e., up til Jan. 31, 2015. And from the "avg price" reported, it would seem they waited and bought almost all of those in the low $50s. Good decision to "buy low."

Actually, i'm surprised they didn't buy much more at those low prices. I would have thought they would buy 300k or 400k shares, but maybe they thought oil might possibly crash to low $30s or somewhere dire and they could buy more of their own shares likely down in the $40s with further selloff of the sector......

Maybe Stuart commented on this in the conf call.....

I had the thought last week to play a short swing trade on REX for their Q4 earnings and full year EPS announcement-- which was a phenomenal year, far outpacing GPRE and PEIX on EPS.

But i just came back from an out-of-town family reunion and had little time to monitor stocks and i forgot that REX's earnings were coming up so soon on Mar 25th and had no time to place a trade yesterday.

I almost placed a buy pre-market but there seemed to be almost no pre-mkt response to the news. Pleasantly surprised to see the eventual buying, then it looks like the momo-buyers drove it up to 12% and then crashed it by 5% on red mkt day.


I didn't get the chance to listen to the conf call-- anyone know what kind of guidance CEO Rose gave?

Congratulations to all REX owners so far! They really seem to have done great in the past quarter, compared to expectations.

Extremely impressed with REX's earnings... more comment later today.

The link to the full PR:
http://ih.advfn.com/p.php?pid=nmona&article=66048546&xref=newsalert

REX American Resources beats by $0.30, misses on revenue

Pre market asking price seems to react positive. But IMO it is always hard to tell with REX due to the small available float.
So what is your take on the earnings?

http://seekingalpha.com/news/2390016-rex-american-resources-beats-by-0_30-misses-on-revenue?app=1&auth_param=p1gj3:1ah55db:2d87aaaff17a9ed567dd25a86767c3d3&dr=1#email_link

REX reports results tomorrow.... Will be very interesting to see what EPS they post for Q4-- given the severity of Jan.'s drop in ethanol prices, i guesstimate somewhere around 1.90 EPS, depending on how much a price gain they benefited from in DDGs (given the time lags in this industry, that price rebound may not come in for REX until the present Q1).

For REX's stockprice, so much will depend on the kind of guidance CEO Rose gives tomorrow in the conf call and maybe in the earnings PR.

If oil is still headed lower in price, i don't consider ethanol plays a "buy" yet, but at some point it will feel like oil is bottoming and then, if one believes the recovery won't be too gradual/extended, ethanol players will likely be a good buy.


http://www.platts.com/latest-news#Agriculture

Chicago Argo ethanol assessment rises to two-month high


Houston (Platts)--23Mar2015/400 pm EDT/2000 GMT

The Chicago Argo ethanol assessment Monday rose to its highest level in more than two months as prices continued to recover from nine-year lows in January.

The assessment ticked up 2.75 cents to $1.4870/gal, the highest level since January 5, when it was at $1.54225/gal.

In the Platts Market On Close assessment, 30,000 barrels of Chicago Argo ethanol for March 28-April 7 delivery changed hands at levels starting at $1.49/gal and ending at $1.4850/gal.

After moving up 98 cents, or 53.85%, in November, the Argo assessment tumbled in December, shedding $1.17/gal, or 41.79%. After opening the year with a $1.6145/gal assessment on January 2, ethanol tracked plunging gasoline prices lower.

US ethanol prices in recent weeks, however, have been boosted by rebounding gasoline prices alongside slightly tighter stockpiles and slowed production rates.

US ethanol production for the week ended March 13 was at 947,000 b/d, a far cry from the record 992,000 b/d set in the week ended December 19, Energy Information Administration data showed Wednesday.

Amid the lower production, stockpiles have declined 774,000 barrels to 20.82 million barrels from the three-year high of 21.594 million barrels hit in the week ended February 20.

The healthier returns in the spot market have helped boost production margins.

The estimated production margin for a typical US Midwest dry-mill ethanol plant for the week ended Friday moved up 4.72 cents, or 12.57%, to 42.25 cents/gal, a review of US Department of Agriculture and Platts data showed.

--Jordan Godwin, jordan.godwin@platts.com
--Edited by Richard Rubin, richard.rubin@platts.com

This story does not bode well for USA-produced ethanol if the emerging trend passes a critical threshold level... one of the factors driving it is the stronger and stronger US dollar.... If Brazil becomes a major exporter again, it obviously takes away marketshare for USA-produced ethanol and reduces Brazil's need to import US ethanol. Let's see how this plays out but it's one more reason for me to stay away from investing in ethanol players right now.

http://www.platts.com/latest-news/agriculture/montreal/brazilian-ethanol-export-offers-emerge-on-supply-21142677

Brazilian ethanol export offers emerge on supply glut, weaker currency

Montreal (Platts)--13Mar2015/510 pm EDT/2110 GMT

The combination of a weaker Brazilian real and an avalanche of supply just ahead of the start of the new crop in the country's Center-South is bringing back opportunities for ethanol exports.

FOB Santos anhydrous prices assessed by Platts have declined to $440/cu m on Friday -- the lowest since August 20009 following a plummeting real/dollar exchange rate which hit 3.2578 at the time of the assessments.

FOB Santos hydrous prices assessed by Platts also decreased to $400/cu m on Friday -- the lowest ever recorded since Platts started assessing prices on April 2014.

Offers for FOB Santos product for April loading were heard on Friday for hydrous ANP at $420/cu m, while anhydrous was heard at $450/cu m. No bids were heard against any of offers.

Traders see the current volatility of the exchange rate harming any potential deals and foresee bids will only start appearing once there is a more stable scenario.

"We are almost cheaper than the US to send product to Asia, but we need stability on the exchange rate before anything can st

The arbitrage window to send product to the US is not yet open, but last Friday a trade for 40,000 cu m was heard done at $475/cu m for April loading. Traders believe that once prices are at least 5 cents/gal below US market values, cargoes should start getting booked.

Besides the plunge in the exchange rate the recent pressure in the domestic ethanol values in CS Brazil is also playing a role in the increased availability for exports.

The pressure in the domestic market is attributed to a supply glut right at the end of the intercrop season.

The latest data from the Ministry of Agriculture shows overall ethanol (hydrous and anhydrous) stockpiles in the CS region by end-January are 34% higher compared to the same period last year at almost 7 billion liters. Estimates from Kingsman, the agricultural analysis unit of Platts, point that by the end of March anhydrous stocks will finish at 1.3 billion liters, compared with around 500 million liters last year.

Platts assessed hydrous ex-mill Ribeirao Preto at Real 1,400/cu m -- the lowest since late of November.

Usually, this time of the year prices are usually stronger since the region is at its intercrop period.

At this time last year, hydrous prices assessed at Real 1,610/cu m, which puts current prices 13% higher than where prices are now.

Anhydrous ex-mill Ribeirao also decreased to Real 1,360/cu m -- also the lowest since late November.

Again, a year ago prices were at Real 1,625/cu m, 16% stronger that current anhydrous ex-mill levels.

--Beatriz Pupo, beatriz.pupo@platts.com
--Edited by Richard Rubin, richard.rubin@platts.com

Last year i believe it was March 26.

when is REX next earnings release? TIA

Here is todays column from Phil Flynn who I think has a balanced analysis re oil fyi:

Hedge Fund on the Run? The Energy Report 3/5/15

Phil Flynn of The PRICE Futures Group - IF - Thu Mar 05, 7:45AM CST

Maybe the Cushing Oklahoma won’t get filled up so fast after all. Hedge funds that had a record short position coming into this week must be a little bit worried that oil prices could not stay lower after the Energy Information Administration reported a mind boggling 10.3 million barrel build in crude oil supply. Yet despite that stunning number in the all-important Cushing delivery point, supply increased by a much less than expected 536,000 barrels. With ultra bears basing their predictions on the fact that Cushing would soon be over flowing this number puts a monkey wrench into their time table. The longer it takes for Cushing to fill the better chance for demand to improve and avoid the tanks from overflowing. That also means that Hedge funds may have to cover as oil seems to be moving out of Cushing Oklahoma and down to the Gulf Coast where supply hit a record high.

Ultra bears were also harping on the fact that oil production continued to rise as the U.S. produced 9.32 million barrels a day, the highest level since 1985, which was expected. . There is absolutely no one that I know of that has ever suggested that the cut in rig counts and capital spending cuts would slow the production growth in the short term. What is expected though is that growth will level off in a few months and then start its inevitable decline later in the year and into next year. That should come at a time when demand is expected to increase as the market gets a global demand boost by global central banks. Even back in 2013 when Cushing Oklahoma supplies were higher that they are now somehow Cushing did not overflow. The increase in supply also will improve the case to drop the ban on U.S. oil exports. Much of that record supply in the Gulf Coast, when he time is right, may start to find its way out into the global marketplace.

The other reason that we saw such a big build in oil supply was down to weather. East Coast refinery output plunged as frozen rivers and refinery girts hampered production. Distillate fuel inventories decreased by 1.7 million barrels last week and are still well below the average range of supply for this time of year. Gas supply came in better than expected, at 46,000 barrels, as demand may have beenimpacted by snow and cold. Over all refineries operated at 86.6 percent of their capacity, down from 87.4 percent the prior week. The national average price of gasoline is $2.44 a gallon. That’s $1.02 cheaper than last year at this time, but up 37 cents over the past month.

Demand prospects are improving. Saudi Arabia has said that prices have stabilized and had the confidence to raise prices. The European Central bank is expected to reveal details of a large-scale QE asset purchase program. If he does not disappoint that should give oil a boost. QE has always been bullish for oil

Hello Petter and Value,

I saw the PEIX massive run up today and regretted that I had not bought back min yet. Like Value, I hesitate because ethanol process and margins are still weak and oil low. I differ a bit from Value's read on oil. I am in the "we have bottomed" crowd, quite solidly so. The contango is what is filling up storage, as buyers buy and wait to sell it. If we were headed for an oil crash in wti, the futures would start to reflect that.
In addition, Cushing has room , as do the pipelines etc. so the dire we are running out of storage stuff is, in my opinion, wrong, and some of it deliberately intended to sway the market.
The trend long term is up, as demand increases annually, and supply gets squeezed due to cutbacks in capex , natural production declines . Even with tight oil productivity gains, we are talking a small amount of bpd global demands.
BaCK TO ethanol, rex, and peix. I am not back in yet, but of course wish I had bought peix in the 9's a few days ago. Now I am watching for a bit of the foam to clear off and may assess peix if it falls back some..Q1 will n ot be the same as q4 14 of course, as prices were weaker q1 overall. However, forward looking, I think positioning for q2 and 3 will be profitable as |I expect ethanol prices to follow gas prices up, and wti to stabalize around $60. All fwiw.
GL
Catkin

I had thought of very briefly giving REX at least a short swing-trade leading up to earnings, but if their earnings news release contains ANY guidance for a weaker Q1 the stock likely won't move up but will fall. I'm 99% expecting that CEO Rose, who usually gives such super-cautious, lowball guidance estimates in the conf calls, will sound even more "cautious" this time, and that will NOT be good for the s/price.

But any dividend news in the PR or CC-- now that would be very bullish.

So i'm figuratively reading my tea leaves and trying to assess the prospects here.

Thank your for your thoughts value 1008. I agree that there are other attractive bets out there right now which I also play. Earlier you shared some thoughts and so will I. Right now there are some interesting plays in the Norwegian inssurance company named Protector Forsikring and the American biotech stock called Northwest Bio. (NWBO).

But, I like to have a diversified portofolio and REX is one of my favourite long term plays in alternative energy. I am quite confident the outlook is very different in a year or so, but as you mention, it is more funny to buy some shares in the 40's in another "energy panic" than in these 55's levels.

However, I would hate to miss a great quarter with possible dividend talk in 3 weeks time so I am a bit in a dilemma. How do you feel not having any REX at the next ER?

Petter, REX's CEO Rose stated that they are buying back shares at these depressed prices in lieu of making an external acquisition-- they are basically creating higher EPS by significantly taking down their sharecount relative to earnings. I would hope for a dividend now that all plant debt is paid off.....

I've been contemplating rebuying REX but the guidance for Q1 and Q2 is uncertain for investors with ethanol and oilprices so depressed. The good news is that DDGs prices are back up over $200/ton and natgas prices are super-low, and corn prices are still relatively low (not as low as for REX's Q3 period) so they are making back a portion of what they're losing on plunged ethanol prices.

I haven't examined closely all the numbers, but i surmise that in Q1 and Q2, given present prices for everything (and these could change), REX might be able to post around 1.85 to 2.05 EPS, but don't quote me on that!!

But everything i'm reading about crude oil glut here in USA and storage at Cushing likely maxed out in 10-12 weeks suggests to me that oilprices may crash at some point in next month or two, and that would have a terrible effect on gasoline prices and almost certainly drag down further the price of ethanol. One might be able to buy REX in the $40s at that point.

In the meantime, i'm looking for gains in the biotech sector and playing the volatility in certain commodities.

Soon time to rebuy?

Lately, I been thinking about rebuying a good amount of REX for a long term position. It is hard to say whether we have hit the bottom in oil or not but I am hearing more expert saying here in Denmark that this might have been the bottom for now. One of the things indicating this is the weekly reaction to the inventory report. Even though it is still negative the oil shorters do not react on it much anymore and insted we see an increased buying interest.

However, the future is as always uncertain.

But, I am starting to consider buying REX again. I would like to have shares before REX reports their next quarter. PEIX did awesome last night, and even though the report period is not the same, then REX generally suprise even more positively than PEIX and GPRE respectively.

What about you guys Value1008 and catkin, who are among the most active. What is your plan for a rebuy and what are your thoughts on the outlook for the next quarter. I am hoping for hints regarding a future dividend or an aqqusition since their dollar warchest is still quite full!

Thanks for posting this , Value. Good information for senators debating whether to renew the RFS.
Here is a well thought out article regarding rig counts, productive wells, and probable changes to UYS oil output later this year, fyi:

Shale producers postpone oil well completions


Shale producers postpone oil well completions














LONDON: EOG Resources became the latest major shale producer to state that it would "delay a significant number of completions" when it announced fourth-quarter results.


The company plans to end 2015 with 285 wells awaiting completion services, up from 200 at the end of 2014, it told investors during an earnings call on Thursday.

Continental Resources has also announced plans to go slow on well completions in response to the slump in oil prices.



Apache and Anadarko Petroleum are among other shale producers to announce a deliberate strategy of delaying completions.


US shale producers are postponing well completions to conserve cash and defer production until prices recover.

There are a large number of wells that have been drilled but are awaiting the arrival of pressure pumping crews to fracture them and service companies to link them up to gathering pipelines.



In North Dakota, there were an estimated 750 wells that had been drilled but not yet completed at the end of December, according to the state's Department of Mineral Resources.


Once these wells are completed, they will increase the number of producing wells in the state by more than 8 percent, from the current total of around 8,950.

At recent completion rates, it would take another 3-4 months to clear the backlog even if no new wells were drilled in the meantime.



Similar backlogs have emerged in the other shale plays. They have been a source of frustration for producers and mineral rights owners waiting for the oil to begin flowing and royalty payments to start arriving.


For the most part, delays in completing wells arose inadvertently as drilling outpaced completions during the frenzied drilling boom in the first eight months of 2014.

But now some exploration and production companies are deliberately postponing completions to improve their financial performance.


"It's a much more prudent business decision to wait. It will give us better capital returns if we do that," EOG's chief executive told analysts.

PRUDENT BUSINESS

Postponing completions has a double benefit — it can cut costs and cash outlays in the short term and enhance earnings in the medium term.



The cost and revenue profiles for shale wells are different from conventional ones and it is these differences that shale producers are seeking to exploit by postponing completions.


In a conventional oil well, the cost of drilling the hole (including casing and cementing) typically accounts for almost all the cost. The aim is normally to complete the well, put it into production and start recovering the capital expenditure as quickly as possible.

But with shale wells, the need to bring in specialised pressure pumping equipment and crews, hundreds of water tankers and sand to fracture the rock formation and complete the well adds a significant extra element to cost.



For some shale wells, completion costs now account for up to two-thirds of the total. Postponing completions can defer all these costs and help conserve significant cash in the short term.



In other cases, producers have contracts in place with drillers for an entire program of work cannot cancel them without paying substantial penalty fees, but they can then defer completions to minimize future outlays.



Shale producers are hoping completion costs will fall in future as prices for everything from pressure pumping equipment to fracking sand fall amid the slump in the oil industry.



On the revenue side, the production profile of shale wells is much more front-loaded than conventional oil wells. Initial production during the first 30-90 days tends to be higher but then declines faster.



In the Bakken, for example, a typical well will produce one-third of its expected ultimate production in the first 12 months and about half in the first three years.



Revenues depend on prices from the time the well is completed and put into production. If prices are expected to recover, it makes sense to postpone completions, rather than rush to finish the wells and put them into production when wellhead prices are $50 per barrel or less.


By postponing completions, shale producers are shifting some of their production from the first half of 2015 into the second half or even 2016 in the hope that prices will be higher.

RIGS v COMPLETIONS

By now, it should be obvious that the number of wells completed, rather than the number of holes drilled or rigs operating, is more important for determining short-term changes in oil production.



Completion delays (either unintentional or deliberate) add another source of noise in the very unstable relationship between rig counts and output.



Some observers have dismissed the significance of rig counts entirely, suggesting that they provide no useful indication at all about future production trends.



This is wrongheaded. In an ideal world, it would be nice to have real-time data on completions, and even better on initial production rates. In the real world, however, analysts must make the best use of the data which is available, which in most cases means rig counts.



While rig counts may not be perfect predictor of short-term production changes, they are the only data available in near real-time, and it is incorrect to state that they have no relationship at all to output.



Completion delays, as well as variability in the quality of rig equipment and shale wells, mean the relationship between rig counts and production can be unstable in the short term. Production forecasts based on rig count data must be made with extreme care and are subject to a high degree of uncertainty.



Nonetheless, the sharp reduction in the number of rigs operating in the United States, the smaller number of wells being drilled, and the decision by many shale producers to deliberately postpone completing them, all point to US oil production leveling off by the middle of the year.




— John Kemp is a Reuters market analyst. The views expressed are his own.

http://www.ethanolproducer.com/articles/11943/rfa-study-reveals-wide-ranging-economic-impact-of-ethanol

RFA: Study reveals wide-ranging economic impact of ethanol
By Renewable Fuels Association | February 19, 2015

At this year’s National Ethanol Conference, the Renewable Fuels Association released a new ABF Economics study titled “Contribution of the Ethanol Industry to the Economy of the United States in 2014,” which quantified the economic, national security, and job creating benefits of domestic ethanol production in 2014.

The study revealed that last year the ethanol industry was responsible for 83,949 direct jobs and 295,265 indirect and induced jobs. In addition to good-paying, non-exportable jobs, the ethanol industry added $52.7 billion to the national GDP, $26.7 billion to household incomes, and $10.3 billion in taxes, which help stimulate the national, state, and local economies.

The study also revealed that the 14.3 billion gallons of ethanol produced in 2014 displaced an immense 515 million barrels of foreign oil, which carries a monetary value of almost $49 billion.

Bob Dinneen, president and CEO of the RFA, touted the study’s findings, stating, “Numbers are powerful. These numbers reflect the vast reach of the U.S. ethanol industry across many sectors of our society. Each of the nearly 380,000 jobs represents a solid, stable income for a parent who can continue to provide for their family, buy groceries, and pay the rent on time. Each of the $10.3 billion spent in local, state, and federal taxes mean improved public services, safe, drivable roads, more teachers for local school systems or greater access to the latest technology and information for students. And, each of the 515 million barrels of oil we no longer have to import, mean less dependence on often volatile countries and a more stable energy future for all Americans.”

Dinneen continued, “It is my hope that Americans and policymakers alike will look at these numbers and fully understand the integral role of biofuels in our society.”

John Urbanchuk, author of the study and managing partner of ABF Economics, concluded his analysis by noting, “The ethanol industry continues to make a significant contribution to the economy in terms of job creation, generation of tax revenue, and displacement of imported crude oil and petroleum products. The importance of the ethanol industry to agriculture and rural economies is particularly notable. Continued growth and expansion of the ethanol industry through new technologies and feedstocks will enhance the industry’s position as the original creator of green jobs, and will enable America to make further strides toward energy independence.”

A brief summary of the study’s findings:

- $52.7 billion to America’s gross domestic product
- 83,949 direct jobs and 295,265 indirect and induced jobs
- $26.7 billion to household incomes
- $10.3 billion in federal, state and local taxes
- Displaced 515 million barrels of oil, the equivalent of $49 billion

The full study, prepared on behalf of the Renewable Fuels Association, can be found here [go to Ethanol Producer Magazine website for live link].

http://www.platts.com/latest-news/agriculture/dallas/us-epa-to-base-2014-rfs-on-actual-output-blend-21016342

US EPA to base 2014 RFS on actual output; blend wall to factor in 2015/2016 rule

Dallas (Platts)--19Feb2015/1249 pm EST/1749 GMT

The US Environmental Protection Agency plans to base its 2014 Renewable Fuel Standard on actual biofuels production, an agency official said Thursday at an ethanol conference, reiterating its pledge to issue the 2014, 2015 and 2016 mandates this spring.

The 2015 standard will be based on actual biofuels production to date and a projection of fuel demand and production through the rest of the year, said Chris Grundler, director of the EPA's Office of Transportation and Air Quality.

That makes the 2016 standard the one to watch, Grundler said, as it will be unencumbered by actual production figures and be based on the EPA's assessment of US fueling infrastructure and its ability to absorb higher ethanol blends.

But despite the biofuels industry's claims that the blend wall is a product of the oil industry's refusal to accommodate higher ethanol blends, the EPA has no choice but to take into account the limited infrastructure for E15 and E85 when setting RFS mandates going forward, he said.

"The fact remains that we have 3,500 or so E85 stations and 10 [million] to 11 million flex-fuel vehicles," Grundler said on the sidelines of the National Ethanol Conference. "That will limit how much ethanol we can use in this country, at least for the short term. We can't ignore those facts."

He called the blend wall one of the "fundamental issues that have stymied" the agency in finalizing the 2014 standard.

At last year's conference, Grundler pledged to finalize the 2014 RFS by June 20, 2014. That date obviously lapsed, and the agency has since missed the November statutory deadline to finalize the 2015 RFS.

Those decisions have been delayed due to the ethanol industry's uproar over the agency's proposal to cut the biofuels blending volumes for 2014 due to what the EPA said was the inability of US fueling infrastructure to handle significant quantities of gasoline blends with more than 10% ethanol -- the so-called blend wall.

The proposed 2014 RFS, which called for 15.21 billion gallons of biofuels to be blended, down from 16.55 billion gallons in the 2013 rule, has since been tabled indefinitely.

Renewable Fuels Association President Bob Dinneen, in a keynote speech at the conference, said the proposal sent "a devastatingly negative signal ... to farmers making planting decisions, marketers weighing whether or not to install blender pumps to enable E15, and investors determining the efficacy of cellulosic ethanol market opportunities."

EPA 'REGROUPING'

The RFS requires annually increasing amounts of biofuels to be blended with the US transportation fuel supply, but gives the EPA some authority to adjust the volumes.

The ethanol industry has said the RFS statute, passed by Congress in 2005 and expanded in 2007, was intended all along to breach the blend wall to incentivize higher ethanol blends like E15 and E85.

Grundler acknowledged that goal of the statute but said practical limitations on fueling infrastructure have tied the EPA's hands.

"The whole debate is, how far, how fast, and what legal tool are you using to" adjust the annual RFS mandates, he said. "Looking at that data will clearly be part of our consideration."

In his keynote address at the conference, Grundler apologized to ethanol producers for the delays to the program.

But he cited the many time demands on his office's staff of 10 to 12, including lawsuit threats filed by the oil industry over the RFS and waiver requests filed by refineries, for the agency's failure to finalize the 2014 biofuels blending mandate.

"To me, it's simply mission critical that the RFS get back on track and that we have a long-term trajectory in this country for lowering the carbon content of transportation fuels," Grundler said. "We intend to put out a proposal this spring that will address 2014, 2015 and 2016. We believe that by doing so, we can get back on the statutory schedule that's laid out in the law."

He noted that the RFS carries significant implications in economic, agriculture, environmental and energy policy, which are sometimes at odds with each other. To that point, he said that 340,000 comments were filed on the proposed 2014 RFS.

"We have to figure out how we're going to advance this cause in the face of flat and, indeed, declining gasoline demand going in the future," Grundler said. "We have to overcome the current market limitations, the so-called blend wall. ... And, of course, whether and on what basis the statutory volumes should be lowered in light of these considerations.

"In the next few months, we are regrouping. We are going to try to answer these questions."

--Herman Wang, herman.wang@platts.com
--Edited by Annie Siebert, ann.siebert@platts.com

Short interest up for the reporting period ending 1/30/15: 1,582,862 shares short, highest it's ever been.
http://www.nasdaq.com/symbol/rex/short-interest

I guess some are piling on thinking oilprice, gas-price, and ethanol price would be headed lower into Jan.-Feb.-March.....

Strangely, though, the short-interest has lowered on both PEIX and GPRE.
I don't understand that at all.... perhaps it's due to the fact that one can't play options on REX (such as buying/selling puts/calls)