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Segment Information | 3 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
Segment Information | SEGMENT INFORMATION The company reports the financial and operating performance for the following two operating segments: (1) ethanol production, which includes the production, storage and transportation of ethanol, distillers grains, Ultra-High Protein and renewable corn oil and (2) agribusiness and energy services, which includes grain handling and storage, commodity marketing and merchant trading for company-produced and third-party ethanol, distillers grains, Ultra-High Protein, renewable corn oil, natural gas and other commodities. Corporate activities include selling, general and administrative expenses, consisting primarily of compensation, professional fees, overhead costs, gain on sale of assets, and restructuring costs not directly related to a specific operating segment. During the normal course of business, the operating segments conduct business with each other. For example, the agribusiness and energy services segment procures grain and natural gas and sells products, including ethanol, distillers grains, Ultra-High Protein and renewable corn oil for the ethanol production segment. These intersegment activities are treated like third-party transactions with origination, marketing and storage fees charged at estimated market values. Consequently, these transactions affect segment performance; however, they do not impact the company’s consolidated results since the revenues and corresponding costs are eliminated. The Chief Operating Decision Maker ("CODM") for the company is the Interim Principal Executive Officer. The CODM utilizes EBITDA to assess segment performance, which is derived from revenue less cost of goods sold and selling, general and administrative expenses. The CODM manages and allocates resources to the operations of the Company's two segments. This enables the Interim Principal Executive Officer to assess the Company’s overall level of available resources and determine how best to deploy these resources for capital expenditure, research and development projects, and other strategic opportunities that are in line with our long-term strategic goals. The CODM is regularly provided with consolidated expense information or forecasted expense information for the applicable reportable segment. The following tables set forth certain financial data for the company’s operating segments (in thousands):
| Three Months Ended March 31,
| 2025 |  | 2024
Revenues |  |  |
Ethanol production |  |  |
Revenues from external customers | $ | 497,458 |  |  | $ | 504,446 |
Intersegment revenues | 314 |  |  | 1,213 |
Total segment revenues | 497,772 |  |  | 505,659 |
Agribusiness and energy services |  |  |
Revenues from external customers | 104,057 |  |  | 92,768 |
Intersegment revenues | 5,772 |  |  | 6,228 |
Total segment revenues | 109,829 |  |  | 98,996 |
Revenues including intersegment activity | 607,601 |  |  | 604,655 |
Intersegment eliminations | (6,086) |  |  | (7,441) |
| $ | 601,515 |  |  | $ | 597,214 |
Refer to Note 2 - Revenue, for further disaggregation of revenue by operating segment.
| Three Months Ended March 31,
| 2025 |  | 2024
Cost of goods sold |  |  |
Ethanol production (1) | $ | 503,464 |  |  | $ | 508,302 |
Agribusiness and energy services | 101,098 |  |  | 87,986 |
Intersegment eliminations | (6,086) |  |  | (7,441) |
| $ | 598,476 |  |  | $ | 588,847 |
| Three Months Ended March 31,
| 2025 |  | 2024
Gross margin |  |  |
Ethanol production (1) | $ | (5,692) |  |  | $ | (2,643) |
Agribusiness and energy services | 8,731 |  |  | 11,010 |
| $ | 3,039 |  |  | $ | 8,367 |
| Three Months Ended March 31,
| 2025 |  | 2024
Depreciation and amortization |  |  |
Ethanol production | $ | 21,035 |  |  | $ | 20,534 |
Agribusiness and energy services | 598 |  |  | 505 |
Corporate activities | 754 |  |  | 448 |
| $ | 22,387 |  |  | $ | 21,487 |
| Three Months Ended March 31,
| 2025 |  | 2024
Operating income (loss) |  |  |
Ethanol production (1) | $ | (39,550) |  |  | $ | (33,653) |
Agribusiness and energy services | 1,533 |  |  | 6,004 |
Corporate activities (2) | (24,243) |  |  | (17,240) |
| $ | (62,260) |  |  | $ | (44,889) |
(1)Ethanol production includes an inventory lower of cost or net realizable value adjustment of $2.5 million and $4.2 million for the three months ended March 31, 2025 and 2024, respectively. (2)Corporate activities includes $10.3 million of restructuring costs for the three months ended March 31, 2025 as a result of the company's cost reduction initiative, including severance related to the departure of its CEO. During the three months ended March 31, 2025, the company incurred restructuring costs related to severance, stock based compensation and other charges as a result of cost reduction initiatives that were recorded within the following line items in the consolidated statements of operations (in thousands):
| Three Months Ended March 31, 2025
| Ethanol production |  | Agribusiness and energy services |  | Corporate activities |  | Subtotal
Cost of goods sold | $ | 2,260 |  |  | 459 |  |  | — |  |  | $ | 2,719 |
Selling, general and administrative expenses | 210 |  |  | 1,658 |  |  | 10,341 |  |  | 12,209 |
Other, net | — |  |  | 154 |  |  | 1,505 |  |  | 1,659 |
Total restructuring costs | $ | 2,470 |  |  | 2,271 |  |  | 11,846 |  |  | $ | 16,587 |
The following tables reconcile EBITDA, our segment measure of profit or loss, to net loss (in thousands). EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization excluding the amortization of right-of-use assets and debt issuance costs.
| Three Months Ended March 31, 2025
| Ethanol production |  | Agribusiness and energy services |  | Subtotal
EBITDA | $ | (19,416) |  |  | $ | 3,156 |  |  | $ | (16,260) |
Depreciation and amortization | (21,035) |  | (598) |  | (21,633)
Interest expense | (4,820) |  | (2,427) |  | (7,247)
Subtotal | $ | (45,271) |  |  | $ | 131 |  |  | $ | (45,140) |
Unallocated corporate expenses (1) |  |  |  |  | (27,666)
Income tax expense, net of equity method income tax benefit |  |  |  |  | 165
Net loss |  |  |  |  | $ | (72,641)
| Three Months Ended March 31, 2024
| Ethanol production |  | Agribusiness and energy services |  | Subtotal
EBITDA | $ | (13,621) |  |  | $ | 7,056 |  |  | $ | (6,565) |
Depreciation and amortization | (20,534) |  | (505) |  | (21,039)
Interest expense | (5,061) |  | (1,141) |  | (6,202)
Subtotal | $ | (39,216) |  |  | $ | 5,410 |  |  | $ | (33,806) |
Unallocated corporate expenses (1) |  |  |  |  | (16,987)
Income tax expense, net of equity method income tax benefit |  |  |  |  | (329)
Net loss |  |  |  |  | $ | (51,122)
(1)Corporate expenses include selling, general administrative expenses, depreciation and amortization, interest expense, and during 2025 includes restructuring costs related to cost savings initiatives and the departure of our CEO. The following table sets forth total assets by operating segment (in thousands):
| March 31, 2025 |  | December 31, 2024
Total assets (1) |  |  |
Ethanol production | $ | 1,244,617 |  |  | $ | 1,234,635 |
Agribusiness and energy services | 351,655 |  |  | 412,006 |
Corporate assets | 77,219 |  |  | 143,716 |
Intersegment eliminations | (6,919) |  |  | (8,183) |
| $ | 1,666,572 |  |  | $ | 1,782,174 |
(1)Asset balances by segment exclude intercompany balances.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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