WTR Fireside Chat Series: Gevo CEO Pat Gruber to Discuss Recent Key Events and Business Overview on December 16 at 4:00 pm EST
|52 Week Range||$1.80-$15.57|
|Avg. Daily Vol. (30 day)||8,584,592|
|Shares Out (MM)||201.86|
|Market Cap (MM)||$1,090.00|
|Enterprise Value ($MM)||$875.5|
|Debt to Equity||16.24|
|Revenue TTM (MM)||$1.19|
|Fiscal Year End||December|
- On Thursday, December 16, 2021, at 4:00 pm EST, we will be hosting Gevo CEO Pat Gruber in our WTR Fireside Chat Series. This event is open to all investors, with live viewing limited to the first 1000 registrants. The event will also be available for on-demand viewing using the same link.
- We will review recent key events and provide a business overview, including the announcement that Kolmar and Gevo have entered into a financeable fuel supply agreement for 45 million gallons per year (on a neat basis) of renewable, energy-dense liquid hydrocarbons that are expected to be produced from Gevo's second Net-Zero production facility, Net-Zero 2.
- Renewable hydrocarbons are seeing a more apparent path to commercialization amid carbon emissions reductions driven by increased regulatory scrutiny and corporate responsibility.
- Gevo has a proven technology and production process that is scalable today with key short-term target markets in sustainable aviation fuel (SAF) and renewable gasoline. The company's potential offtake agreement pipeline is approaching $20 billion.
- Gevo is developing its first Net-Zero project, expected to be located in Lake Preston, South Dakota. This project is expected to produce renewable hydrocarbon products that, when burned, have the potential to yield net-zero greenhouse gas emissions when measured across the entire lifecycle of the products.
- Our research content on Gevo can be found here and is available for all investors to access. Our open-access research on Gevo can be accessed here.
Gevo is approaching the tipping point in terms of the commercialization of its renewable hydrocarbon technology. Building off of the Net-Zero concept, the company believes it has a clear pathway to significant cash flow. This is no longer just an idea but is being validated by the company with a large pipeline of contract negotiations in place. Facilitating even part of this pipeline would require multiple Net-Zero plants with each producing over $100 million in EBITDA at the plant level. This is backed by over $500 million in cash on the company's balance sheet. The company also expects its RNG plant to begin generating cash flow in late 2022, providing a near-term source of cash.
A Net-Zero plant has not yet been constructed and will be a significant undertaking. Although commercial production has been proven, this is still a major step, and plants at this scale can experience unforeseen problems. This is especially noteworthy given it is the first of its kind. Another problem is simply the long runway to production and sales. Investors will have to be patient as Plant 1 is not expected to begin production of hydrocarbons until 2024.
On Thursday, December 16, 2021, at 4:00 pm EST, we will be hosting Gevo CEO Pat Gruber in our WTR Fireside Chat Series. This event is open to all investors, with live viewing limited to the first 1000 registrants. The event will also be available for on-demand viewing using the same link.
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