Business
Gevo Reports Fourth Quarter and Full Year 2023 Financial Results
Gevo to Host Conference Call Today at 4:30 p.m. ET ENGLEWOOD, Colo., March 07, 2024 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ: GEVO) (“Gevo”, the “Company”,
About this update from Gevo, Inc.
[{"type":"text","content":"Gevo to Host Conference Call Today at 4:30 p.m. ET\nENGLEWOOD, Colo., March 07, 2024 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ: GEVO) (“Gevo”, the “Company”, “we”, “us” or “our”) today announced financial results for the fourth quarter and full year 2023 and recent corporate highlights. Recent Corporate Highlights Net-Zero 1 and 2024 Expected Uses of Cash: We ended the fourth quarter with cash, cash equivalents, and restricted cash of $375.6 million. The total that Gevo expects to have spent to achieve financial close is $236.0 million - $238.0 million (excluding certain internal cost allocations), of which only $125.0 million - $175.0 million is remaining. The expected spend on Net-Zero 1 constitutes the majority of growth and project related uses of cash expected in 2024. Renewable Natural Gas (“RNG”): In the fourth quarter, our RNG project generated positive, stand-alone non-GAAP cash EBITDA1 of approximately $1.3 million and annualized production of 91% of the 400,000 MMBtu per year of RNG capacity. As previously announced in January 2024, RNG stand-alone non-GAAP cash EBITDA is expected to increase to $12.0 – $16.0 million on an annualized basis upon receipt of our permanent California Air Resource Board (“CARB”) carbon intensity (“CI”) score, which is expected in 2024. RNG stand-alone non-GAAP cash EBITDA could further increase up to $30.0 – $38.0 million if California Low Carbon Fuel Standard (“LCFS”) prices recover to $200 per metric ton, and up to $50.0 – $60.0 million in aggregate upon receipt of the biogas Production Tax Credit (“PTC”) during 2025 – 2027. There can be no guarantee that LCFS prices will increase or United States Treasury rules, if issued, will result in the amounts expected. Verity: In the third quarter of 2023, our Verity Tracking platform went live with farmers in South Dakota and Minnesota. Our tracked ethanol plant customers totaled approximately 2% of the United States ethanol industry by volume, the world’s largest ethanol market. Based on a market and business analysis by a well-known global consulting firm, the initial target market for Verity in the United States is estimated to be approximately $1.5 - $3.0 billion for reducing and tracking the reduction of carbon intensity through the value chain, from field to fuel. Verity is a capital-light, fee-based software-as-a-service (“SaaS”) business th...