REX American Resources Corporation

Carbon Removal (DAC)▲

REX American Resources Posts Record Q2 on Tax Credits as Volume Stalls

REX American Resources reported the best second quarter in its history on September 2, with net income of $1.06 per diluted share and a 24th straight profitable quarter. Net sales climbed to $168.5 million, gross profit surged to $53.3 million from $14.3 million, and the ethanol producer ended the quarter with $379.5 million in cash and short-term investments as of July 31 and zero bank debt. The results leaned on stronger crush margins, richer byproduct pricing and $18.4 million in Section 45Z federal tax credits, though core gross profit still grew 144% year over year excluding that credit income. Ethanol sales volume was flat at 70.6 million gallons and distillers grains volume slipped to 145,081 tons from 148,017 tons, while selling, general and administrative expenses more than doubled to $15.6 million from $6.2 million. The company's carbon capture project cleared a hurdle on August 17 when the EPA issued draft permits for three Class VI injection wells, but Executive Chairman Stuart Rose said regulatory sign-off on a roughly five-mile connector pipeline from the Illinois Commerce Commission will hold the project up the longest.

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Carbon Removal (DAC)

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REX American Resources Posts Record Q2 EPS, Advances Carbon Capture

REX American Resources reported its highest-ever second-quarter net income per share of $1.06, driven by stronger crush margins and $18.4 million in 45Z production tax credits, and announced a key regulatory milestone for its carbon capture project. Net income attributable to shareholders reached $34.9 million, up from $7.1 million a year earlier, while gross profit surged to $53.3 million from $14.3 million. The company also received draft Class 6 well permits from the US EPA for its 1 Earth carbon capture project, and the Illinois moratorium on carbon sequestration expired on July 1, allowing the company to pursue state permits. Management expects the ethanol expansion at 1 Earth to come online by the end of 2026, with combined investment in expansion and carbon capture totaling $191 million. REX ended the quarter with $380 million in cash and no bank debt, and anticipates third-quarter results will exceed the prior year's period.

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Trump weighs shielding farmers from expanded biofuel waivers

The Trump administration is discussing plans to shield the U.S. Farm Belt from an expected expansion of biofuel waivers, a move under consideration to cut gasoline prices for motorists, Reuters reported. The plan would increase biofuel quotas for 2027 by about 500 million gallons to offset damage from exemptions for smaller refineries, which are expected to roughly double from 990 million renewable fuel credits to as many as 1.8 billion. During Trump's first term, broad refinery exemptions drew fierce opposition from Midwest farmers and ethanol producers, and the issue has resurfaced as the administration seeks to lower fuel costs ahead of the November midterm elections. A coalition of farm and biofuel groups urged Trump to reject any waiver expansion, warning of severe and immediate consequences that could collapse biofuel markets and reduce demand for corn and soybean oil. Trump is expected to meet with refiners and fuel retailers in the coming week to highlight efforts to lower gasoline prices.

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U.S. RIN prices plunge after EPA delays biofuel compliance deadline

U.S. ethanol blending credit prices plunged Monday to their lowest levels in more than four months after the Environmental Protection Agency extended a September 1 compliance deadline for refiners and ruled on long-pending small refinery exemption requests by the end of August. Conventional ethanol RINs traded as low as $1.75, down $0.34 from Friday and their lowest level since April 15, according to data from Argus Media, after the credits had traded as high as $2.50 on July 7. RIN prices lost substantial value again during Monday's session in response to the EPA's impending small refinery exemption decisions, after falling 5% on Friday. Market participants expect the EPA's rulings to free up a significant number of credits, with refining and ethanol industry analysts estimating that the exemptions could free up 1.2 billion to 1.8 billion RINs that small refiners could use to meet their 2025 compliance obligations, after the EPA had previously indicated it could reallocate 990 million RINs associated with exemptions. Extending the compliance deadline is seen as signaling some form of RIN relief for refiners' 2026 and 2027 obligations as well, University of Illinois agricultural economist Scott Irwin told Reuters.

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Trump administration asks Congress to allow year-round E15 gasoline sales

The Trump administration formally asked Congress on Wednesday to pass legislation allowing year-round sales of gasoline blended with 15% ethanol, marking the first formal push by the White House to enact the policy. The request came in a supplemental bill released by the Office of Management and Budget, which called the measure an urgent and needed fix that codifies the permanent, year-round sale of E15. Supporters argue the higher-ethanol blend offers motorists a cheaper alternative to conventional gasoline, while U.S. refiners warn it could raise costs and complicate fuel distribution. Legislation allowing year-round E15 sales narrowly passed the House last month but faces long odds in the Senate, where major bills typically need 60 votes. The national average for regular gasoline stood at $3.93 per gallon as of Wednesday morning.

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