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Green Plains Wraps Up Tennessee Plant Sale to Enhance Liquidity
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Key Takeaways
Green Plains sold its Tennessee ethanol plant to POET Biorefining for $190 million.
The sale proceeds will pay off junior mezzanine debt due in 2026, strengthening the balance sheet.
Enhanced liquidity gives Green Plains flexibility to pursue strategy and carbon reduction initiatives.
Green Plains Inc. (GPRE - Free Report) recently completed the sale of its ethanol plant in Rives, TN, to POET Biorefining - Obion, LLC for cash consideration of $190 million. This previously announced sale included $20 million of working capital to be finalized post-closing. The transaction was completed within the stipulated time.
The decision came after the company conducted its strategic review process that was initiated in February 2024. The process has given the company a range of alternatives that will position it well to improve operational execution and capital discipline.
With the completion of this transaction, Green Plains will be able to achieve its goal of delivering value to shareholders and strengthening its balance sheet by using the proceeds to pay off the junior mezzanine debt due in 2026.
The proceeds enhance liquidity and financial flexibility, providing Green Plains with other opportunities that might be more consistent with the company’s strategy. It will be able to optimize its portfolio and drive various carbon reduction initiatives.
GPRE’s shares have lost 32% over the past year compared with the industry’s 6.3% decline.
The Zacks Consensus Estimate for AEM’s current-year earnings is pegged at $7.11 per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 10.03%. Its shares have gone up by 116.5% in the past year.
The Zacks Consensus Estimate for MEOH’s current fiscal-year earnings is pegged at $3.72 per share.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 83.18%.
The Zacks Consensus Estimate for MOS’ 2025 earnings is pegged at $3.17 per share, indicating a rise of 60.10% from year-ago levels. The company’s earnings beat the consensus estimate in one of the trailing four quarters while missing it in the rest. MOS’ shares have gained 33% in the past year.
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Green Plains Wraps Up Tennessee Plant Sale to Enhance Liquidity
Key Takeaways
Green Plains Inc. (GPRE - Free Report) recently completed the sale of its ethanol plant in Rives, TN, to POET Biorefining - Obion, LLC for cash consideration of $190 million. This previously announced sale included $20 million of working capital to be finalized post-closing. The transaction was completed within the stipulated time.
The decision came after the company conducted its strategic review process that was initiated in February 2024. The process has given the company a range of alternatives that will position it well to improve operational execution and capital discipline.
With the completion of this transaction, Green Plains will be able to achieve its goal of delivering value to shareholders and strengthening its balance sheet by using the proceeds to pay off the junior mezzanine debt due in 2026.
The proceeds enhance liquidity and financial flexibility, providing Green Plains with other opportunities that might be more consistent with the company’s strategy. It will be able to optimize its portfolio and drive various carbon reduction initiatives.
GPRE’s shares have lost 32% over the past year compared with the industry’s 6.3% decline.
Image Source: Zacks Investment Research
GPRE’s Zacks Rank & Key Picks
GPRE currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Agnico Eagle Mines (AEM - Free Report) , Methanex Corporation (MEOH - Free Report) and The Mosaic Company (MOS - Free Report) . AEM and MEOH sport a Zacks Rank #1 each, while MOS carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AEM’s current-year earnings is pegged at $7.11 per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 10.03%. Its shares have gone up by 116.5% in the past year.
The Zacks Consensus Estimate for MEOH’s current fiscal-year earnings is pegged at $3.72 per share.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 83.18%.
The Zacks Consensus Estimate for MOS’ 2025 earnings is pegged at $3.17 per share, indicating a rise of 60.10% from year-ago levels. The company’s earnings beat the consensus estimate in one of the trailing four quarters while missing it in the rest. MOS’ shares have gained 33% in the past year.