Rex American Resources Corporation · NYSE:REX
Rex American Resources — Investor Presentation (August 2024)
25 slides from Rex American Resources's investor presentation, August 2024
Slide 1: August 2024 Investor Presentation
August 2024 Investor Presentation NYSE: REX www.rexamerican.com
Slide 2: Safe Harbor
Safe SafeHarbor Harbor This presentation 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”
Slide 3: Executive Summary
Executive Summary
Slide 4: REX American Overview
REX American Overview Established, Mature Company • Publicly traded on the NYSE since 1984; currently traded under the ticker symbol “REX” • Headquartered in Dayton, OH Growth Strategy Vital to a Low Carbon Future • Existing ethanol production business provides feedstock for fuel blending from six C
Slide 5: REX American Second Quarter 2024 Financial Highlights
REX American Second Quarter 2024 Financial Highlights $148.2 $19.8 $0.70 million million Per diluted share Net Sales and Revenue Gross Profit Net Income Attributable to Shareholders Cash, Cash Equivalents & ST Investments Working Capital $346.0 million1 No Bank Debt $367.0 million1 Historically prof
Slide 6: Ethanol Production
Ethanol Production ▪ REX has interest in the ethanol production from six facilities spread across four states in the Midwest, which are located in: Total Annual Ethanol Production Capacity From Consolidated and Non-Consolidated Facilities: • Marion, SD – majority owned Approx. 730 million gallons •
Slide 7: Carbon Capture and Sequestration
Carbon Capture and Sequestration One Earth Energy ▪ Under development since 2019 ▪ Project co-located with REX’s Gibson City, IL ethanol production facility, which will produce approx. 560,000 tons of carbon per year ▪ Three underground injection wells will have capacity to sequester 90 million tons
Slide 8: Second Quarter 2024 Saw Improved Margin and Net Income
Second Quarter 2024 Saw Improved Margin and Net Income Total Quarterly Q2 Product Revenue Total Quarterly Q2 Gross Profit Total Quarterly Q2 Net Income Product Sales 2022-2024 2022-2024 Attributable to REX Shareholders 2022-2024 $240.3 $20 $19.8 $14 ▪ Ethanol sales totaled $240 $18.4 65.1 million ga
Slide 9: Ethanol Operations
Ethanol Operations
Slide 10: REX Consolidated Ethanol Facilities
REX Consolidated Ethanol Facilities ▪ NuGen Energy, LLC ▪ Located in Marion, SD South Dakota ▪ REX Ownership Interest: 99.7% ▪ Annual Production Capacity: ~150 MM gallons ▪ One Earth Energy, LLC Illinois ▪ Located in Gibson City, IL ▪ REX Ownership Interest: 75.9% ▪ Annual Production Capacity: ~150
Slide 11: Non-Consolidated REX Ethanol Production Facilities
Non-Consolidated REX Ethanol Production Facilities Big River Resources Boyceville, LLC Big River Resources W. Burlington, LLC ▪ Located in Boyceville, WI ▪ Located in W. Burlington, IA ▪ REX Ownership Interest: ▪ REX Ownership Interest: 10.3% 10.3% Iowa Wisconsin ▪ Annual Production Capacity: ▪ Annu
Slide 12: REX Consolidated Q2 Ethanol Sales Volumes and Net Income/Share, 2021-2024
REX Consolidated Q2 Ethanol Sales Volumes and Net Income/Share, 2021-2024 72 71.4 Trailing 12 Months $1.00 EPS: 71 $3.93/share $0.90 70 $0.80 69.0 69.1 $0.70 69 $0.63 $0.70 68 $0.52 $0.60 67 $/share MM gallons $0.44 $0.50 66 65.1 $0.40 65 $0.30 64 63 $0.20 62 $0.10 61 $0.00 2Q 2021 2Q 2022 2Q 2023 2
Slide 13: REX Consolidated Product Revenue by Quarter, 2022-2024
REX Consolidated Product Revenue by Quarter, 2022-2024 Ethanol DDG MDG Corn Oil Gross Profit (right hand axis) Q2 2024 Product Revenue $250,000 $40 ▪ Ethanol $35 ▪ $116.5 million1 (78.6% of Q2 2024) $200,000 $30 ▪ Avg. selling price/gal: $1.791 ▪ Dry Distillers Grain (DDG) $25 $150,000 ▪ $21.8 milli
Slide 14: Crush Spread Reflects Seasonality
Crush Spread Reflects Seasonality (Platt’s/CBOT) $1.60 Crush Spread Outlook $1.40 ▪ Crush spread is an indication of the profitability of corn-derived ethanol $1.20 ▪ Crush spread calculation is as follows: $1.00 ▪ One bushel of corn makes ~2.8 $0.80 gallons of ethanol ▪ Crush Spread = Ethanol Price
Slide 15: Carbon Capture & Sequestration
Carbon Capture & Sequestration 15
Slide 16: REX American CCS Growth Story
REX American CCS Growth Story 2025 2028+ One Earth Carbon Excess Storage Capacity Sustainable Aviation Fuel Storage Potential Potential (SAF) • CCS capture and compression facility • Excess storage • Potential additional market for construction is proceeding capacity could be used low-carbon ethanol
Slide 17: One Earth Energy Carbon Capture Project – Gibson City, IL
One Earth Energy Carbon Capture Project – Gibson City, IL Interior of carbon capture facility (August 2024) Project Details ▪ Pursued in partnership with the University of Illinois ▪ Carbon capture operations at One Earth Energy designed to capture carbon emissions from co-located ethanol plant (est
Slide 18: Carbon Capture Relationships
Carbon Capture Relationships ▪ Fagen Inc. will lead ▪ Salof Ltd. will provide ▪ As previously integration with existing complete modular CO2 announced, REX has Gibson City ethanol liquefaction and entered into an plant for the One Earth sequestration system agreement with project to the One Earth Su
Slide 19: Capturing Inflation Reduction Act Tax Credits
Capturing Inflation Reduction Act Tax Credits 45Q Program 45Z Program ▪ Credit of $85 per ton of ▪ Credits can be earned at a carbon sequestered rate of approximately $0.02 for each gallon of ethanol ▪ Available for the first 12 years produced for each 1-point after project begins operation reductio
Slide 20: Financial Update
Financial Update 20
Slide 21: Key Financial Metrics
Key Financial Metrics $ in 000s, except ($/gal) and per share info. 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Net Sales and Revenue $211,977 $221,079 $187,614 $161,231 $148,155 Gross Profit $18,352 $39,290 $30,410 $14,451 $19,773 SG&A ($8,618) ($7,609) ($7,383) ($6,111) ($6,440) Average ethanol sellin
Slide 22: Strong Balance Sheet
Strong Balance Sheet $ in 000s 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Cash, Cash Equivalents & Short-term $284,375 $332,000 $378,657 $351,764 $345,982 Investments Total Current Assets $387,943 $418,085 $452,103 $421,613 $418,914 Total Current Liabilities $47,541 $48,690 $66,259 $62,700 $51,909 Work
Slide 23: Appendix
Appendix 23
Slide 24: Experienced Management Team
Experienced Management Team Stuart Rose - Founder, Executive Chairman of the Board Mr. Rose was elected Executive Chairman of the Board in 2015. Mr. Rose had served as Chairman of the Board and Chief Executive Officer since the Company’s incorporation in 1984 as a holding company. Prior to 1984, Mr.
Slide 25: Contact
Contact rexamerican@icrinc.com
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