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My Review Of the Q and Forward Look
Hey stockrosen , They Hedged Corn In Q3 to Play It Safe for a Potential Drought. It Caused the Corn Basis to Be Really High.
Hind Site Is 20/20 ~ Another Drought Would Have Hurt Us BAD,so I Don't Blame them.
+ It Costed Them $2.6 million non-cash loss on extinguishments of debt , 1 Time Deal
~ They Were Still Able to Buy a $6.9M Sugar Hedge paid In Q3 = $3 million in feedstock cost savings in 2014
~ Retire $8.4 debt saves them $1 million a year
~ convertible notes Only $250,000 Now
~ Adjusted EBITDA improved to positive $3.4 million from negative $0.9 million
~ Total Stockholder Equity Increased $14,636,000 to $80,155,000
~ SG&A expenses Decreased to $2.5 million from $2.9 in 2012
~ Corn Basis Went Down $1.50 per bushel In Starting in Q4
~ Now We Have Corn Oil X2 Plants , and Cellunator soon
I Think It Was a Good Quarter for Pacific as Far as Objectives Accomplished, but Bad Earnings.
They Are a Leaner Meaner Company Now.
GOING Forward ~
~ Total Stockholder Equity Increased $14,636,000 to $80,155,000
~ $1 million a year savings from Retired Debt
~ $3 million in feedstock cost savings from Raw Sugar thrue 2014
~ Corn Basis Went Down $1.50 per bushel In Starting in Q4
~ SG&A expenses Decreased to $2.5 million from $2.9 in 2012
~ Adjusted EBITDA improved to positive $3.4 million
~ $4.5M annually Magic Valley plant
~ $4.5M annually Stockton plant
~ Continued Sorghum feedstock cost Savings
~ Cellunator will increase the ethanol yield at the Stockton plant with 3.5% 15,000,000 gallons per Q / 100 * 3.5 = 525,000 gallons
( I Think They Can Successfully Make Money Going Forward )
PON-13-601 PEIX NOT funded
http://t.co/p3dn62UruW
Houston (Platts)Pacific Ethanol says 2014 ethanol supply won't be an issue for RFS
--7Nov2013/104 pm EST/1804 GMT
The threat of a possible ethanol supply shortfall should not justify a significant reduction to the Renewable Fuel Standard, Pacific Ethanol CEO Neil Koehler said Thursday.
Koehler said during the company's third-quarter earnings call that the delayed release of the 2014 federal blending proposals has "injected some uncertainty in the market," and that the US Environmental Protection Agency should maintain the corn-based ethanol blending requirement.
"We know that two-thirds and growing of vehicles on the road can use E15, and short of that, we have enough E85 infrastructure to assume it," Koehler said. "We believe supply will not be an issue, and the industry is prepared to meet the requirement."
The RFS has been under intense scrutiny in recent months amid skyrocketing RIN prices during the second quarter. The proposed Renewable Volume Obligations -- which sources say could be released as early as this week -- have been under review from the White House's Office of Management and Budget since August 30.
Turning to boosting production of feedstocks helped Pacific Ethanol hamper the RFS uncertainty, the company said, as net sales and profit soared in the third quarter.
Pacific Ethanol began corn oil production at its Stockton, California, plant in October and diversified feedstock use with sorghum and raw beet sugar to be blended with corn for use as ethanol feedstock.
Third-quarter net sales were $233.9 million, an 8.34% jump compared with $215.9 million from the same period a year ago. Gross profit was $3.5 million, compared with a $2.4 million loss a year ago.
Adjusted EBITDA was $3.4 million, compared with minus $0.9 million in the third quarter of 2012.
EPA mandate Three scenarios
Irwin had done a detailed analysis of how much ethanol might be made in 2014 and 2015 if one of three things happens:
The EPA keeps increasing the RFS mandate (except for shrinking the cellulosic part to match production). He calls that the status-quo option.
A write-down option keeps advanced biofuels frozen at this year’s level of 1.75 billion gallons. Corn ethanol would increase to 14.4 billion gallons next year and 15 billion gallons in 2015.
A freeze option, which Irwin and economist Darrel Good have outlined, would keep the grain ethanol part of the RFS stuck at 13.8 billion gallons.
-----
Ethanol usage rebounding in 2014
DANIEL LOOKER:Business Editor
11/06/2013 @ 11:31am
Few ag economists understand the complex details of the Renewable Fuel Standard as well as Scott Irwin at the University of Illinois. This fall, the EPA was expected to propose the size of the RFS for 2014, something that Irwin doesn’t expect until this month, at the earliest, because of delays caused by the shutdown of the federal government.
EPA has already said it may adjust the mandate down from levels in the 2007 Energy Law. For many reasons – the Great Recession, more fuel-efficient cars, teens not driving – gasoline use is falling, leaving less room in fuel tanks for it and ethanol. If EPA keeps ramping up the RFS, as Congress expected in 2007, something has to give. In recent years, EPA has cut requirements for cellulosic ethanol, since little was made. In 2014, Irwin thinks it’s possible that EPA may also write down requirements affecting advanced biofuels such as biodiesel and imported sugarcane ethanol. “I think there’s a base that you can reasonably forecast,” Irwin says. “The mandate, at minimum, will accommodate 13 billion-gallon consumption of ethanol.”
The flatline for fuel
That would be about the same as this year’s EPA mandate that allowed 13.8 billion gallons of conventional ethanol. Corn used in ethanol maxed out with the 2010 and 2011 crops at about 5 billion bushels, a market as big as the entire U.S. livestock industry. Out of the drought-shortened 2012 corn crop, USDA says 4.665 billion bushels went into ethanol. For the 2013 crop, USDA projects 4.9 billion bushels.
“You’re capturing more than two thirds of the loss back. That’s a good recovery in a year,” says Chad Hart, an Iowa State University economist who also tracks ethanol.
Where we go from here is an economic and political battle. The American Petroleum Institute is suing EPA to roll back the existing mandate for the 2013 calendar year (affecting mainly the 2012 crop). EPA, under Big Oil pressure, had a draft for 2014 rules that would cut corn ethanol’s mandate to 13 billion gallons.
Bob Dinneen, president of the Renewable Fuels Association, counters that EPA shouldn’t lower the 2014 RFS. The Energy Law doesn’t give it that authority, except for a cellulosic ethanol shortfall, he says. It can issue a general waiver if the RFS would harm the economy. It has twice rejected waivers.
Dinneen cites analysis by Iowa State University economist Bruce Babcock that shows enough E85 pumps and flex-fuel vehicles use another billion gallons of ethanol, more than enough to hit the 14.4 billion-gallon corn ethanol mandate included in the 2007 Energy Law’s total RFS of 18 billion gallons in 2014.
Economics have favored E85 sales recently, but both Hart and Irwin are skeptical.
“You just pick a car at random out there in the U.S. countryside, and it’s not flex fuel,” Hart says. “I think we think we settle in here. I don’t see anything changing the industry a great deal.”
Three scenarios
Irwin had done a detailed analysis of how much ethanol might be made in 2014 and 2015 if one of three things happens:
The EPA keeps increasing the RFS mandate (except for shrinking the cellulosic part to match production). He calls that the status-quo option.
A write-down option keeps advanced biofuels frozen at this year’s level of 1.75 billion gallons. Corn ethanol would increase to 14.4 billion gallons next year and 15 billion gallons in 2015.
A freeze option, which Irwin and economist Darrel Good have outlined, would keep the grain ethanol part of the RFS stuck at 13.8 billion gallons.
How each approach hits corn depends on whether biodiesel or E85 is used to increase demand for biofuels. If it’s biodiesel, corn used for ethanol would stay at or below USDA’s 4.9 billion-bushel forecast for this year’s crop. Using E85 keeps it at 5 billion bushels.
www.agriculture.com/news/business/ethol-usage-rebounding-in-2014_5-ar35183
$2.3 million convertible notes converted
~ $2.3 million under our convertible notes was converted subsequent to quarter end.
warrants exercise price of $7.41
The warrants have an exercise price to convert of $7.41 per share
Subordinated Convertible Notes – On March 28, 2013, the Company issued $6,000,000 in aggregate principal amount of its Series A Subordinated Convertible Notes (“Series A Notes”), and warrants to purchase an aggregate of 1,839,602 shares of common stock for aggregate gross proceeds of $6,000,000.
-----
SEC form 8-K
http://t.co/NI9oWrp1OY
Bryon McGregor, the company's CFO, stated: "During the third quarter, we made significant progress on our goal to strengthen our balance sheet. We retired nearly $1 million in senior debt and $7.5 million of our original $14 million in convertible notes. An additional $2.3 million under our convertible notes was converted subsequent to quarter end, leaving only $250,000 outstanding."
Mark-to-market accounting Investopedia ~ When the net asset value (NAV) is valued based on the most current market valuation.
http://t.co/6UoxTPU1Oz
Paid $6M for $30M Worth of Sugar from USDA Marked-to-market
Market Value for Sugar Today:Sugar (Cash): 18.26 cents Pound
Pacific Ethanol Paid an Average of 4 cents per pound
Mark That Sugar to Market Value = $30,000,000.00 Dollars Commodity Assets On Pacific Ethanol's Books
Ethanol Basket~REX,AMTX,PEIX~its a GERS BK Basket ~ as they Have a $25M Payment Due in Dec. to YA Global
I Added the REX and the AMTX today.
GERS May 15, 2013 10-Q
We owe about $25 million in debt to YA Global. During the three months ended March 31, 2013, we paid YA Global and its assignees a total of about $650,000 in cash, and YA Global and its assignees collectively converted about $342,000 due under their debentures into shares of our common stock. On March 29, 2013, the Company and YA Global entered into an amended forbearance agreement pursuant to which the maturity date of the Company's outstanding debt to YA Global and its assignees was extended to December 31, 2013.
GERS Market Cap: $143,420.00
GERS share Price: $ 0.0004
Lieing On thier Books , not Good either
GERS Apr 12, 2013 8-K/A Non-Reliance on Previous Financials, Audits or Interim Review
Summary - Full Filing at EDGAR Online(25kb)
When Is $24Debt Due to YA GLOBAL
I Believe it Was extended to Dec. 2013 after this filing
20-Dec-2012
Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement
On December 18, 2012, GreenShift Corporation and YA Global Investments, L.P. ("YA Global"), entered into an amended Forbearance Agreement dated as of November 30, 2012 (the "Amendment"). Pursuant to the Amendment, YA Global agreed to extend the maturity date of the debt due to YA Global and its assignees from December 31, 2012 to March 31, 2013.
OT:AMTX a good buy today,On PEIX Earn
just thinking down 20% today is Un Justified
Pacific Ethanol Inc: Turning A Profit May Be Reality http://t.co/pOIGJuO87V
Job Title: Commodities Operator
Reports to: Commodities Manager
Department: Commodities
Location: Madera, CA
Supervises: N/A
Classification: Non-exempt
https://home.eease.adp.com/recruit2/?id=7086011&t=1
Purpose: Provide reception and administrative support for the Office Manager as well as other department managers.
Environment:
Pacific Ethanol, Inc. (PEI) is a public traded company headquartered in Sacramento, CA. PEI markets ethanol to major and independent oil companies from either third party sources or from producing plants within the PEI structure. The company also markets the feed co-products through it Ag Products division to livestock feeding customers in locations where it has production facilities. The production facilities are strategically located to process corn to make ethanol, and feed products, taking advantage of unparalleled efficiencies in energy uses, waste reduction, water use and transportation costs.
The following is a list of major duties and responsibilities for this position along with certain supportive duties. It is not all-inclusive. Other duties and responsibilities may be added as needed and in addition; and, management may modify this job description as needed.
Essential Duties and Responsibilities:
Moves materials and products with the use of industrial equipment which typically includes front-end loader, telehandler, and skid steer equipment;
Receives, inspects and records incoming commodities and other raw materials (grain, ethanol, etc.); and directs it to its designated location;
Loads trucks, railcars, and/or barges with out-going bulk products including ethanol, syrup, grain, etc.
Adjusts the grain equipment to adapt to variances in grain; makes minor adjustments to the equipment settings to ensure the product produced meets quality and quantity standards and expectations;
Monitors the quality of the product to ensure the product meets industry/company standards; reports and sets aside defective product;
Assists maintenance department by inspecting and servicing equipment to ensure that the equipment is performing at peak efficiency at all times;
Assists operations department as needed.
Monitors vendor truck drivers on site and trains new truck drivers in unloading and loading procedures.
Transfers products within tank farm.
Records daily production activities and verifies production; maintains adequate records of production volume, down-time, and equipment breakdowns;
Identifies and recommends opportunities to improve productivity levels and service methods in order to maximize overall quality and productivity.
Complies with state, and federal laws, policies, and regulations, and adheres to quality assurance programs and safety standards;
Adheres to safety programs to promote a safe environment and to minimize safety hazards/injuries;
Attends informational meetings and work related training to keep abreast of any new policies and/or procedures or company developments/initiatives.
Supportive duties and responsibilities:
Cleans up work area; picks-up cardboard, plastic and other debris that is lying around;
Performs miscellaneous job-related duties as assigned.
Education/Experience
High school diploma or equivalency
Experience working in a manufacturing/production environment.
Qualifications
Proficiency operating industrial equipment such as forklift, front-end loader, telehandler, and skid steer equipment.
Competent working with computers; knowledgeable of operation software;
Knowledge of basic math principles and able to read and write;
Excellent hand-eye coordination;
Ability to collaborate and work as a team;
Safety oriented;
Must be able to work at heights
Ability to operate a forklift and pallet jack in a safe manner;
Ability to follow directions, and work well with little supervision;
Ability to speak and write in English;
Valid driver’s license;
Bilingual skills are (English/Spanish) preferred, but not required.
Must have the ability to work different shifts and overtime. This includes the possibility of short-term and long-term shift reassignment to match the needs of the business.
Physical Requirements
Must be able to work in cold to hot temperatures; work around dust, fumes, and/or moderate to loud noises; works inside and/or outside;
Able to lift, pull, carry, and pick-up average to heavy objects weighing up to 60 pounds;
Able to climb stairs and ladders; walk on paved and unpaved surfaces; sit at a desk and operate a computer and keyboard; visual acuity to review written documentation; ability to hear, speak, and understand speech at normal room levels and on the telephone; manual dexterity to operate a telephone; lift horizontally and vertically, bend, stoop, stand, twist, and reach;
Work environment involves some exposure to hazards or physical risks, which require following basic safety precautions.
Criminal background check and drug screening required.
Fresno Madera » California - Nationwide Employment Opportunities
nationwide-job-and-employment-opportunities.com/?topic...Madera...?
2 days ago - Pacific Ethanol, Inc. Currently recruiting for a Commodities Operator to work in our Madera, CA facility. (PEI) is a public traded company headquartered in ...
Ethanol Margins Rising http://t.co/eSNlb61EoC
EPA sticks up for all kinds of ethanol ahead of 2014 RFS policy Meghan Sapp | October 29, 2013
~ the Obama Administration fully supports all types of ethanol
In Washington, the EPA released a statement saying the Obama Administration fully supports all types of ethanol, including corn-based, advanced and cellulosic ethanol, in response to AAA’s call to lower the RFS for 2014. It said that it is in the draft stage for coming up with a 2014 blending level and will include the input of all stakeholders in its decision making process.
Earnings Sneek Peek in Hours GPRE/VLO/ADM
GPRE 29-Oct-13 Earnings announcement
VLO 29-Oct-13 Earnings announcement
ADM 29-Oct-13 Earnings announcement
(Platts)--25Oct2013 WEEKLY ETHANOL WRAP
http://t.co/eSNlb61EoC
WEEKLY WRAP: US Midwest ethanol production margin sinks to eight-week low
Houston (Platts)--25Oct2013/500 pm EDT/2100 GMT
The estimated weekly production margin for a typical US Midwest dry-mill ethanol plant sank 2.54 cents, or 2.93%, this week to an eight-week low of 84.20 cents/gal, according to a Platts estimate based on a review of data.
The softness in the estimated weekly ethanol production margin was due to a greater proportional decrease in the ethanol price than the corn cost.
The weekly average estimated delivered feedstock corn cost fell 2.36 cents, or 0.54%, to $4.3591/bushel, the lowest level since at least September 10, 2010, on increased supplies from the ongoing harvest in the Midwest, sources said. Data before September 10, 2010, was not available.
The weekly average estimated dried distillers grain byproduct price, however, edged up 46 cents to a $201.38/st.
The estimated denaturant cost fell 5.9 cents to $2.0310/gal, while the estimated natural gas cost was stable at $3.67/MMBtu.
The denaturant cost was based on the weekly average of the Platts natural gasoline assessment at the Conway, Kansas, hub, while the gas cost was based on the October Platts Chicago ANR 7 pipeline monthly index.
The estimated ethanol price used in calculating the margin was the weekly average of the Platts Chicago Argo ethanol assessment, which dropped 3.68 cents, or 1.81%, to $2.0327/gal, the lowest level in more than 16 months. It had not been this low since June 15, 2012, when it was $2.0041/gal.
Sources said the lower ethanol estimated ethanol price this week was due to increased production.
US ethanol production for the reporting week that ended October 18 rose 28,000 b/d to 897,000 b/d, the highest level in more than 16 months, US Energy Information Administration data showed Wednesday.
The last ime ethanol production was any higher was in the reporting week that ended June 15, 2012, when it was 900,000 b/d.
The estimated production margin for a typical dry-mill ethanol plant was calculated by weighing data from Platts and government agencies, including average delivered corn cost, dried distiller grain prices, natural gas prices, certain blending costs and ethanol prices.
Fixed-cost calculations were based on a 50 million gal/year-capacity Midwestern plant with 32 employees working at an average salary of $47,300/year.
www.ams.usda.gov/mnreports/gx_gr212.txt
GX_GR212
Saint Joseph, MO Fri, Oct 18, 2013 USDA-MO Dept of Ag Market News
**Information reflects only data compiled from Friday, October 18th, 2013 due to
the lapse in coverage from the government furlough. **
Illinois Ethanol Corn and Co-Products Processing Values
Corn prices compared with value of processing products for Illinois ethanol
plants
This week Last week Last year
Unit Oct 18, 2013 Oct 11, 2013 Oct 19, 2012
Ethanol
tank cars & trucks
Illinois plants $/gal 2.13 N/A 2.38
Ethanol yield per
bushel processed gal 2.80 N/A 2.80
Value from bushel
of corn $ 5.96 N/A 6.66
Distillers Dried
Grains, 10% moisture
Illinois plants $/ton 205.00 N/A 278.89
DDGS yield per
bushel processed lbs 17.76 N/A 17.75
Value from bushel
of corn $ 1.82 N/A 2.48
Value of ethanol and
DDGS from bushel
of corn $ 7.78 N/A 9.14
No. 2 Yellow Corn
truck price
IL points $/bu 4.37 N/A 7.68
Difference between
corn price & value
of co-products $ 3.41 N/A 1.46
Bio-Energy Report Notes:
This table is presented for statistical comparison and is not intended to
indicate operating margins. All prices are a simple average derived from
GX_GR121. Terms of these prices are negotiated, spot market, and FOB
the plant.
Source: USDA-MO Dept of Ag Market News Service, Saint Joseph, MO
Kinley Hartman 816-676-7000 StJoe.LGMN@ams.usda.gov
In IL state only toll free 888-458-4787
www.ams.usda.gov/mnreports/gx_gr121.txt
www.ams.usda.gov/LSMarketNews
Subzero,Profits Margins Are Huge/See Chart
In 2011 , There Was No Move till Earnings.
http://www.allendale-inc.com/wp-content/uploads/2012/10/ethanol%20margin.jpg
Ethanol Production Margins to Current
The Stockton plant is working at near capacity, [company spokesman] Paul Koehler said.
( a lil Higher % Run Rate than Previously Thought )
Pacific Ethanol Extracting Corn Oil for Biodiesel
Posted on October 10, 2013 by John Davis
www.bizjournals.com/sacramento/news/2013/10/09/pacific-ethanol-extracting-corn-oil.html
21cents perLb Less Than Market Value
If They Sold It at Market Value , They Would Make a KILLING
www.apfo.usda.gov/Internet/FSA_File/sugar_purchasesale_inv4.pdf
Q2PEIX~Earnings~24 Days After the End Of Q2
Maybe a PR about Earnings Date Soon
July 24, 2013 15:59 | Source: Pacific Ethanol, Inc.
Increased net sales 14% over second quarter 2012
Improved quarterly gross profit to $7.0 million, compared to loss of $4.9 million in second quarter 2012
Increased operating income to $3.8 million, compared to a loss of $8.0 million in second quarter 2012
Achieved consolidated net income of $1.1 million, compared to loss of $10.0 million in second quarter 2012
Improved Adjusted EBITDA to $6.6 million, compared to a loss of $1.5 million in second quarter 2012
Extended all remaining Plant debt due in 2013 to 2016
Retired or repaid approximately $13.5 million in debt
Began producing and selling corn oil at Magic Valley plant
SACRAMENTO, Calif., July 24, 2013 (GLOBE NEWSWIRE) -- Pacific Ethanol, Inc. (Nasdaq:PEIX), the leading marketer and producer of low-carbon renewable fuels in the Western United States, reported its financial results for the three- and six-months ended June 30, 2013.
Neil Koehler, the company's president and CEO, stated: "For the second quarter of 2013, we significantly increased our gross profit, operating income, net income and adjusted EBITDA. These improvements were driven by better market conditions, more favorable ethanol pricing, our continued focus on operating efficiencies and our increased plant ownership position. We also improved our balance sheet by extending all remaining plant debt due in 2013 to 2016, and we retired or repaid approximately $13.5 million in debt."
"We made significant progress on our objectives to diversify our revenues and feedstock. In June, we began producing and selling corn oil at our Magic Valley plant, and we expect to begin production of corn oil at our Stockton plant in the third quarter of 2013. We continue to diversify our feedstock as we increase our blend of sorghum sourced from local, Midwest and international markets. We believe these these efforts, combined with our focus on reducing the carbon intensity of ethanol we produce, will support profitable growth."
Financial Results for the Three Months Ended June 30, 2013
Net sales were $233.8 million for the second quarter of 2013, compared to $205.4 million for the second quarter of 2012. The increase in net sales was attributable to a higher average price per gallon of ethanol sold, which was partially offset by a reduction in total gallons sold.
Gross profit was $7.0 million for the second quarter of 2013, compared to a loss of $4.9 million in the second quarter of 2012. The increase is attributable to significantly improved commodity margins from the Pacific Ethanol plants. SG&A expenses were $3.1 million in the second quarter of 2013, which were flat compared to the second quarter of 2012. Operating income for the second quarter of 2013 was $3.8 million, compared to an operating loss of $8.0 million for the same period in 2012, again, primarily due to significantly improved commodity margins at the Pacific Ethanol plants.
Income available to common stockholders for the second quarter of 2013 was $0.7 million, compared to a loss of $2.9 million for the second quarter of 2012.
Adjusted EBITDA improved to positive $6.6 million for the second quarter of 2013, compared to Adjusted EBITDA of negative $1.5 million in the second quarter of 2012.
BIOF:SC 13D/A~10/16/2013 7.5% OF THE AGGREGATE OUTSTANDING SHARES OF COMMON STOCK
EDELMAN THOMAS J
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 4)*
BioFuel Energy Corp.
(Name of Issuer)
Common Stock, par value $0.01 per share
(Title of Class of Securities)
09064Y109
(CUSIP Number)
Thomas J. Edelman
667 Madison Avenue, 4th Floor
New York, NY 10065
Tel.: (212) 371-1117
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
October 15, 2013
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. ¨
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
SCHEDULE 13D
CUSIP No. 09064Y109
1
NAMES OF REPORTING PERSONS
THOMAS J. EDELMAN
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) ¨ (b) o
3
SEC USE ONLY
4
SOURCE OF FUNDS (SEE INSTRUCTIONS)
NOT APPLICABLE
5
CHECK IF DISCLOSURES OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES OF AMERICA
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
7
SOLE VOTING POWER
407,500 SHARES OF COMMON STOCK
8
SHARED VOTING POWER
2,500 SHARES OF COMMON STOCK
9
SOLE DISPOSITIVE POWER
407,500 SHARES OF COMMON STOCK
10
SHARED DISPOSITIVE POWER
2,500 SHARES OF COMMON STOCK
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSONS
410,000 SHARES OF COMMON STOCK
12
CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
¨
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1
7.5% OF THE AGGREGATE OUTSTANDING SHARES OF COMMON STOCK
14
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
1 As of August 7, 2013, the Issuer had 5,443,292 shares of Common Stock outstanding (exclusive of 40,481 shares held in treasury), based upon information provided in the Issuer’s most recent Form 10-Q, filed August 13, 2013.
2
SCHEDULE 13D
This Amendment No. 4 to Schedule 13D (this “ Amendment ”), relating to shares of common stock, par value $0.01 per share (“ Common Stock ”) of BioFuel Energy Corp., a Delaware corporation (the “ Issuer ”), 1600 Broadway, Suite 2200, Denver, CO 80202, amends and supplements the Schedule 13D originally filed with the Securities and Exchange Commission (the “ Commission ”) on June 26, 2007 (the “ Original 13D ”), as amended by Amendment No. 1, filed with the Commission on March 23, 2011 (the “ First Amendment ”), Amendment No. 2, filed with the Commission on November 28, 2011 (the “ Second Amendment ”), and Amendment No. 3, filed with the Commission on August 30, 2012 (the “ Third Amendment ”). All capitalized terms contained herein but not otherwise defined shall have the meanings ascribed to such terms in the Original 13D, the First Amendment, the Second Amendment or the Third Amendment, as applicable.
This Amendment is being filed by Thomas J. Edelman (the “ Reporting Person ”).
The Reporting Person is filing this Amendment in connection with the disposition by the Reporting Person of securities of the Issuer beginning on September 26, 2013. All of the Reporting Person’s holdings as of the date hereof and all acquisitions, dispositions and sales of the Issuer’s securities since the date of the Third Amendment are reported herein. This Amendment is being filed to amend Item 5 as follows:
Item 5. Interest in Securities of the Issuer
Item 5(a) is hereby amended and restated as follows:
(a) As of August 7, 2013, the Issuer had 5,443,292 shares of Common Stock outstanding (exclusive of 40,481 shares held in treasury), based upon information provided in the Issuer’s most recent Form 10-Q, filed August 13, 2013. As of the date of this Amendment, the Reporting Person beneficially owns 410,000 shares of the Issuer’s Common Stock, representing approximately 7.5% of the Common Stock issued and outstanding.
Item 5(b) is hereby amended and restated as follows:
(b) The Reporting Person has the sole power to vote and dispose of 407,500 shares of the Issuer’s Common Stock. The Reporting Person shares the power to vote and dispose of 2,500 shares of the Issuer’s Common Stock with his spouse.
Item 5(c) is hereby amended and restated as follows:
(c) The transactions in the Issuer’s securities effected since August 30, 2012 by the Reporting Person are listed in Annex A attached hereto and made a part hereof.
3
Signature
After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
Date: October 15, 2013
By:
/s/ Thomas J. Edelman
Thomas J. Edelman
The original statement shall be signed by each person on whose behalf the statement is filed or his authorized representative. If the statement is signed on behalf of a person by his authorized representative (other than an executive officer or general partner of the filing person), evidence of the representative’s authority to sign on behalf of such person shall be filed with the statement: provided, however, that a power of attorney for this purpose which is already on file with the Commission may be incorporated by reference. The name and any title of each person who signs the statement shall be typed or printed beneath his signature.
Attention:
Intentional misstatements or omissions of fact constitute Federal criminal violations (See 18 U.S.C. 1001)
4
Annex A
DATE
ACQUISITION OR DISPOSITION/SALE
NUMBER OF SHARES OF COMMON STOCK
AVERAGE PRICE PER SHARE
HOW TRANSACTION WAS EFFECTED
9/26/13
Sale
7,493
$3.85
Open-market sale
9/27/13
Sale
3,056
$3.81
Open-market sale
9/30/13
Sale
7,821
$3.73
Open-market sale
10/01/13
Sale
250
$3.75
Open-market sale
10/02/13
Sale
30,000
$3.71
Open-market sale
10/03/13
Sale
5,000
$3.65
Open-market sale
10/15/13
Sale
33,880
$3.45
Open-market sale
A spokeswoman for the EPA was not immediately able to comment on the documents, and said that due to the government shutdown she may not be able to provide a rapid reply. Reuters has not been able to independently confirm the authenticity of the documents, or whether they were subsequently updated.
The EPA's proposal is laid out in the first 14 pages of an August 26 draft notice of proposed rulemaking and a September 6 presentation, dates that coincide with the timing of its submission to the White House Office of Management and Budget (OMB), which must approve the rule. It is not clear whether the documents are identical to those submitted to the OMB.
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EPA proposes big reduction in 2014 ethanol blend volume -document
NEW YORK | Thu Oct 10, 2013 6:48pm EDT
(Reuters) - The U.S. Environmental Protection Agency has proposed a surprisingly deep cut in the amount of ethanol that must be blended into U.S. gasoline next year, according to an agency document seen by Reuters.
In a historic retreat from an ambitious 2007 law and a victory for refiners, the agency proposes a "significant" reduction in the overall renewable fuel requirements to 15.21 billion gallons, far less than the 18.15 billion gallon 2014 target established by law, the documents show.
That would reduce the volume of corn-based ethanol to about 800 million gallons less than this year's 13.8 billion gallons, a much larger cut than many industry observers had been expecting. The law had required 14.4 billion gallons for 2014.
The figures match those reported earlier on Thursday by news agencies including Reuters, but the document also includes previously unreported details on the EPA's proposal. The agency laid out three different approaches, one calling for a larger volume of corn-based ethanol and one calling for less, but it advocated the 13 billion gallons in the middle.
The apparent proposal stirred shock and some disbelief across biofuel and energy industries, as most officials and traders had not expected any further word on next year's rules until the White House had approved them. Shares of independent refiners surged, while the price of ethanol credits dived.
After months of increasingly bitter exchanges over the future of the Renewable Fuel Standard (RFS), the changes appeared to be a major concession to refiners, which say they cannot sell gasoline with a higher blend of ethanol.
If approved as is, the proposed rule "would represent a notable shift in the Obama administration's biofuel policy," said Jason Bordoff, professor and director of the Center on Global Energy Policy at Columbia University and a senior White House energy adviser until late last year.
A spokeswoman for the EPA was not immediately able to comment on the documents, and said that due to the government shutdown she may not be able to provide a rapid reply. Reuters has not been able to independently confirm the authenticity of the documents, or whether they were subsequently updated.
The EPA's proposal is laid out in the first 14 pages of an August 26 draft notice of proposed rulemaking and a September 6 presentation, dates that coincide with the timing of its submission to the White House Office of Management and Budget (OMB), which must approve the rule. It is not clear whether the documents are identical to those submitted to the OMB.
To get the volumes that low, the agency intends to tap into a waiver authority under the 2007 law that allows it to scale down required volumes under certain situations, such as a lack of available supply of the fuels or economic hardship. It intends to use the "inadequate supply" justification.
"We interpret the term 'inadequate domestic supply' as it is used under the general waiver authority to include consideration of factors that affect consumption of renewable fuel," the proposal states. In other words, demand is limited by the 10 percent ethanol blend that refiners and retailers say is the maximum that they are willing to sell.
"We would intend this framework apply not just to 2014 but to later years as well," the EPA said.
Corn-ethanol producers argue that refiners and retailers should be able to sell gasoline that is 15 percent biofuel, the maximum allowed by the EPA for most newer cars.
The OMB is not expected to make a decision until after the government shutdown ends.
MARKETS JOLTED
Speculation and media reports about the potential reduction in the blending levels ripped through financial markets on Thursday, spurring a major rally in the shares of independent refiners, which have been paying hundreds of millions of dollars to buy ethanol credits to cover their blending obligations.
Shares of refiner PBF Energy surged by 12 percent, and those of Valero Energy gained nearly 5 percent, while corn futures in Chicago tumbled more than 1 percent on the prospect of reduced demand for corn-based ethanol.
Renewable identification number (RIN) credits for the 2013 compliance year dived to 34.5 cents each, the lowest since early this year, a trader said, down from 43 cents.
The proposal, if ultimately approved, would be a significant victory for U.S. oil companies, which have been lobbying regulators and Congress to cut biofuel blending mandates, which had been eating into their market share.
It would also be a major blow to the U.S. corn ethanol industry, which has been urging regulators to keep the ambitious blending targets required under the law.
Already, some ethanol groups are threatening to sue the EPA, which administers the fuel blending program, if it lowers its volume target.
"We will pursue every option," Bob Dinneen, president of the Renewable Fuels Association, which represents the ethanol industry in Washington, D.C., said prior to the disclosure of the document.
THREE OPTIONS
The EPA considered three options for relaxing the biofuel mandate next year and will accept comments on all three, but it is proposing only the third option, the documents show.
Under the first option, it would have set the corn-based ethanol volume at 12.36 billion gallons; under the second, the figure would have been 13.18 billion.
In both cases, the "advanced biofuel" segment - which includes biodiesel made from recycled cooking oil - would have been adjusted to top up the total volume to 15.21 billion.
The agency decided on the third option, which took into consideration both available production volumes and also the 10 percent ethanol "blendwall," because it "ensures that both non-advanced and advanced (biofuels) play a role in addressing the blendwall while simultaneously accounting for limited availability", according to the document.
Neeley net Ethanol Margins for Q4 so far
Oct 1 ~ net gain of 73.8 cents per gallon
Oct 2 ~ net gain of 71 cents per gallon
Oct 3 ~ net gains of 67.1 cents per gallon
Oct 4 ~ net gain of 63.9 cents per gallon
Oct 7 ~ net gain of 61.5 cents per gallon
Oct 8 ~ net gains of 58.7 per gallon
Oct 9 ~ net gain of 55.9 cents per gallon
Oct 10 ~ net gain of 56.5 cent per gallon gain
www.dtnprogressivefarmer.com/dtnag/common/link.do?symbolicName=/free/news/template1&product=/ag/news/ethanol/commentary&vendorReference=0702BB21&paneContentId=35&paneParentId=0
Neeley net Ethanol Margins for Q3 July - September Quarter
www.dtnprogressivefarmer.com/dtnag/common/link.do?symbolicName=RENEWABLE_FUELS_PAGE_FREE
Jul 2 ~ net gain of 14.7 cents per gallon
Jul 12 ~ net profit of 9.2 cents per gallon of ethanol produced
Jul 15 ~ net profit of 23 cents per gallon
Jul 17 ~ 27.2 cents per gallon
Jul 25 ~ net gain of 22.7 cents per gallon
Jul 29 ~ a gain of 16 cents per gallon
Aug 2 ~ net gain of 30.2 cents per gallon
Aug 6 ~ net gain of 30.2 cents per gallon
Aug 8 ~ net gain of 26.2 cents per gallon
Aug 17 ~ net gain of 20.4 cents per gallon
Aug 28 ~ net gains of 22.3 cents per gallon
Aug 30 ~ net gains to 28.4 cents per gallon
Sep 3 ~ net gain of 27.4 cents per gallon
Sep 10 ~ net gain of 37.2 cents per gallon
Sep 13 ~ net profit of 40 cents per gallon
Sep 18 ~ net gain of 27.6 cents per gallon
Sep 20 ~ net gain of 30.2 cents per gallon
Sep 23 ~ net gain of 29.7 cents per gallon
Sep 24 ~ net gains of 30.2 cents per gallon
Sep 25 ~ net gain of 28.1 cents per gallon
Sep 26 ~ net gain of 24.7 cents per gallon.
Sep 30 ~ net gain 73.1 cents per gallon
Sep 31 ~ net gain of 73.8 cents per gallon
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Sugar cost to produce 1gallon of ethanol $.94
Corn:
2.7 gallons produced per bushel
$4.75 cost bushel of corn
$1.76 cost to produce gallon of ethanol
Sugar
135.4 gallons of ethanol produced from a ton of sugar
$126.44 cost per ton of sugar through USDA purchase program
$.94 cost to produce gallon of ethanol
Almost a 50% reduction in raw material cost. Like those margins?????
BONUS SECTION:Ethanol Produce with Sugar is Considdered(Advaned Bio Fuel)and Commands a Premium Price as Well as 1.5 RINs to Attract the Purchase Of the Advanced Bio Fuel
And LCFS recognizes sugar derived ethanol as a low carbon product. Sugar cane ethanol emissions of 73.4 grams of carbon dioxide (CO2) equivalent per mega-Joule (g/MJ) are the lowest of all other liquid fuel options.
The LCFS was established by an executive order in 2007 and implemented by the California Air Resources Board starting in 2011.
It requires a 10 percent reduction in the carbon intensity of transportation fuels by 2020. Carbon intensity is measure on a lifecycle or well-to-wheels basis in units of grams of carbon dioxide equivalent per megajoule (gCO2e/MJ).
News Breaks theflyonthewall
September 30, 2013
18:00 EDT
JCP J.C. Penney recognized $786.24M in proceeds from stock offering
J.C. Penney disclosed in a regulatory filing that it sold 84M shares of its common stock to Goldman Sachs for $9.36 per share, and as a result recognized proceeds of $786.24M. Goldman Sachs expects to deliver the share against payment on October 1.
20 U.S. ethanol refineries that remain closed.
Two Minnesota ethanol plants are among the 20 U.S. ethanol refineries that remain closed.
Easing corn prices give relief to the ethanol industry
Article by: David Shaffer , Star Tribune
Updated: September 28, 2013 - 9:37 PM
The bottom line improved for many ethanol producers in the last quarter, and industry experts say the outlook is good as a new corn crop is harvested.
Some ethanol plants are making money again — on ethanol.
For more than a year, high corn prices squeezed the profit out of the biofuel. Producers that made money often did so only through sales of secondary products such as the animal feed called “distillers grains’’ left over from corn fermentation.
But Minnesota-affiliated ethanol companies and the industry tracking service Biofuels Benchmarking say many plants’ fortunes shifted in the second quarter, bringing positive margins back to the core business of making fuel.
“We are forecasting a good, solid year, as good as Blue Flint’s ever had,” said Greg Ridderbusch, president of the Maple Grove-based holding company for Blue Flint Ethanol in Underwood, N.D.
For the quarter ended in June or July, five of seven Minnesota-affiliated ethanol producers that release financial statements reported profits. Among those with improved results were Blue Flint and Heron Lake BioEnergy, based in Heron Lake, which reported net losses in the first quarter.
Most of the ethanol producers tracked by the Star Tribune reported getting higher prices per gallon for ethanol during the quarter — up to 13 percent more than the same period in 2012. Ethanol sales volumes also were up, due partly to the closing of some U.S. plants, producers said.
In a separate, private survey of 45 U.S. ethanol makers, Christianson & Associates of Willmar, Minn., reported that almost all plants broke even or made money in the last quarter. That’s a big shift from recent quarters when only highly efficient plants made money.
“In the next two quarters, I think things will remain fairly consistent and even rise as far as earnings are concerned,” said Paula Emberland, who manages Biofuels Benchmarking.
Even less-efficient plants had positive margins on average in the quarter, she said. The benchmarking service does not publicly release individual plant data, only consolidated results.
Ridderbush, who also is a vice president for Blue Flint Ethanol’s parent, utility cooperative Great River Energy, said ethanol plants are in better shape in regions like Minnesota and North Dakota where crops largely survived the 2012 drought.
“It is kind of nice that our farming economies in both states did make it through the drought,” he said.
Recent price trends
In recent weeks, the price of ethanol and corn has dropped, said Larry Johnson, an ethanol industry consultant based in Cologne, Minn. Corn is the biggest cost in making ethanol.
“The buyers are smart enough to know what they have to pay for ethanol, so they bid enough just to keep the ethanol plants with a workable profit,” Johnson said.
But the 2013 corn crop forecast is good, which should lead to lower prices, Johnson said. “I think the winter and spring look good for ethanol margins,” he said.
PEIX Investor Presentation_Final August 2013
www.pacificethanol.net/site/_documents/presentations/PEIX_Investor_Presentation_Final_August_2013.pdf
CME Ethanol Outlook On Sept. 2nd said Net Margin was 62.5 cents
CME Ethanol Outlook On May. 13 said Net Margin was 22.3 cents
CME Group Ethanol Outlook 2013 Archives
cmegroup.barchart.com/ethanol/