OUR GROWTH STRATEGY

Pursue Attractive Organic
Growth Opportunities

We believe certain expansion projects could be implemented at our ethanol plants that have the potential to utilize the strategic location and capacity of these assets and cost effectively increasing our annual production. We also intend to increase the grain storage capacity at our ethanol plants to take advantage of our existing infrastructure as well as strengthen relationships with local corn producers, allowing us to source corn more effectively and at a lower average cost. We intend to pursue opportunities to develop additional grain elevators at or near our ethanol plants. Since all of our plants are located within or near the corn belt where a number of competitors also have ethanol facilities, we believe that owning grain elevators provides us with a competitive advantage in the procurement of corn supplies.

OUR GROWTH STRATEGY

Pursue Accretive Acquisitions and
Consolidation Opportunities

We continue to focus on the potential acquisition of additional ethanol plants and grain elevators. In the past several years, we have been approached with opportunities to acquire ethanol plants. We believe those plants were available for a number of reasons including financial distress of a particular facility, a lack of operational expertise or a desire by existing owners to exit their original investment. We take a disciplined approach in evaluating new opportunities by considering whether the plants or grain elevators fit within our design, engineering, financial and geographic criteria. We believe that our integrated platform, plant operations experience and disciplined risk management approach give us the ability to generate favorable returns from chosen acquisitions.

OUR GROWTH STRATEGY

Expand Marketing and
Distribution Activities

We plan to continue expanding our downstream access to customers and seeking opportunities to arbitrage markets with minimal risk allocation. We currently participate in ethanol logistic, transload services and continually seek opportunities to expand the capacity of these facilities through organic growth. We intend to seek acquisition of fuel terminal facilities that involve conventional, as well as renewable, fuels. We believe the expansion of our capacity will encourage the distribution of blended fuel and enable us to continue to capitalize on our vertically integrated platform.

OUR GROWTH STRATEGY

Conduct Safe, Reliable, Efficient Operations
and Improve Operational Efficiency

We are committed to maintaining the safety, reliability, environmental compliance and efficiency of our operations. All of our assets are staffed by experienced industry personnel. We will also continue to focus on incremental operational improvements to enhance overall production results. We continually research operational processes that may increase our efficiency by increasing yields, lowering processing cost per gallon and increasing production volumes. Additionally, we employ an extensive production control system at each plant to continuously monitor its performance. We are able to use the plants’ performance data to develop strategies for cost reduction and efficiency that can be applied across our platform.

OUR GROWTH STRATEGY

Invest in Adjacent Businesses to
Take Advantage of Our Competencies

In June 2014, we acquired the assets of a cattlefeeding business near Kismet, Kansas. We plan to continue to seek acquisitions of adjacent businesses, including additional feedlots, that will allow us to apply our commodity processing and trading expertise as a competitive advantage in selected agricultural and energy markets. We believe we have specialized knowledge, existing processes and an expandable infrastructure that can be successfully applied to other business operations that involve commodity processing. In addition, we are continuing our investment in the BioProcess Algae joint venture, which is focused on the commercialization of advanced photo-bioreactor technologies for the growing and harvesting of algal biomass, which can be used as high-quality feedstocks with a number of high-value applications in human nutrition, pharmaceutical applications, animal feed, chemicals and biofuels. We believe this technology has specific applications for facilities that emit carbon dioxide, including ethanol plants.