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Segment Information
 3 Months Ended
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,
20252024
Revenues
Ethanol production
Revenues from external customers$497,458 $504,446 
Intersegment revenues314 1,213 
Total segment revenues497,772 505,659 
Agribusiness and energy services
Revenues from external customers104,057 92,768 
Intersegment revenues5,772 6,228 
Total segment revenues109,829 98,996 
Revenues including intersegment activity607,601 604,655 
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,
20252024
Cost of goods sold
Ethanol production (1)
$503,464 $508,302 
Agribusiness and energy services101,098 87,986 
Intersegment eliminations(6,086)(7,441)
$598,476 $588,847 
Three Months Ended
March 31,
20252024
Gross margin
Ethanol production (1)
$(5,692)$(2,643)
Agribusiness and energy services8,731 11,010 
$3,039 $8,367 
Three Months Ended
March 31,
20252024
Depreciation and amortization
Ethanol production$21,035 $20,534 
Agribusiness and energy services598 505 
Corporate activities754 448 
$22,387 $21,487 
Three Months Ended
March 31,
20252024
Operating income (loss)
Ethanol production (1)
$(39,550)$(33,653)
Agribusiness and energy services1,533 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 productionAgribusiness and energy servicesCorporate activitiesSubtotal
Cost of goods sold$2,260 459 — $2,719 
Selling, general and administrative expenses210 1,658 10,341 12,209 
Other, net— 154 1,505 1,659 
Total restructuring costs$2,470 2,271 11,846 $16,587 
The following tables reconcile EBITDA, our segment measure of profit or loss, to net loss (in thousands). EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization excluding the amortization of right-of-use assets and debt issuance costs.
Three Months Ended March 31, 2025
Ethanol productionAgribusiness and energy servicesSubtotal
EBITDA$(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 $(45,140)
Unallocated corporate expenses (1)
(27,666)
Income tax expense, net of equity method income tax benefit165
Net loss$(72,641)
Three Months Ended March 31, 2024
Ethanol productionAgribusiness and energy servicesSubtotal
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 services351,655 412,006 
Corporate assets77,219 143,716 
Intersegment eliminations(6,919)(8,183)
$1,666,572 $1,782,174 
(1)Asset balances by segment exclude intercompany balances.