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$65.2 million. We believe these repurchases are accretive
to our shareholders as it removes these shares from our
outstanding common share count. It also demonstrates our
confidence in the business going forward.
Over the last three years, we have worked steadily on
diversifying our company. We have built a collection of
great assets along the ethanol value chain and we plan to
continue on the path. Our focus on long-term shareholder
value continues and our core values of disciplined risk
management, operational excellence and providing our
employees with a safe work environment are the foundation
of our philosophy.
Todd Becker
President and Chief Executive Officer
This Annual Report contains “forward-looking statements” within the meaning of the federal securities laws. See the discussion under “Cautionary Information Regarding Forward-Looking Statements”
in our 2011 Form 10-K for matters to be considered in this regard.
that U.S. ethanol is the most economical and best source of
octane and oxygenate for our fuel supply.
Ethanol prices in early 2012 remain at a large discount to
gasoline. In fact, ethanol currently sells at a greater discount
to wholesale gasoline than the blender’s tax credit provided
last year. Accordingly, blenders and refiners have a strong
economic incentive to blend.
E15. The biggest news our industry has received recently
is that the U.S. Environmental Protection Agency’s (EPA’s)
evaluation of the health effects tests on E15 are complete
and that fuel manufacturers are now able to register E15
with the EPA to sell. The EPA decision clears the path to
introduce E15 into the marketplace and we are working very
quickly to move the fuel registration forward. By allowing
voluntary use of E15 in our domestic fuel supply, E15 could
significantly increase demand for ethanol.
Future Growth:
We continue to focus on profitable growth
for 2012. We are building a 96-car unit train terminal
in Birmingham, Alabama on the BNSF Railway that is
expected to be operational in the fourth quarter of 2012.
This BlendStar terminal will have 160,000 barrels of ethanol
storage, which is significantly larger in capacity than any of
our existing blending terminals.
Agribusiness remains a focus for growth. As U.S. farmers
continue to produce larger crops, we believe grain handling,
storage and merchandising will be an area where we can
earn solid returns on our investment.
In February 2012, BioProcess Algae broke ground on a
five-acre algae production facility at our ethanol plant in
Shenandoah, Iowa. The facility should be completed in the
third quarter. We are excited about the path to profitability
we are on with the Grower Harvester
technology. The
focus of BioProcess Algae remains on economically
producing algae for feed, food and nutraceutical markets,
as well as carbon mitigation.
In separate transactions completed in September 2011
and March 2012, we repurchased 7.2 million shares of
Green Plains’ common stock from NTR plc for a total of
“We process over 7 million tons
of corn a year in our ethanol
production segment, more corn
than most countries import from
the U.S. While this is evidence of
our size, the really exciting part of
our story lies in the multiple ways
we have found to extract value out
of a bushel of corn, and that adds
to our financial results.”
Todd Becker, President and Chief Executive Officer