Rex American Resources (REX) is a leading US producer of ethanol, a renewable and cleaner-burning fuel. Here are key points about the company:
- Ethanol Production Capacity: REX is the majority owner of two ethanol production plants with a combined capacity of 300 million gallons per year. It is also a minority owner of a holding company for four ethanol production plants with a combined capacity of approximately 430 million gallons per year1.
- Carbon Sequestration Efforts: REX has been pursuing carbon sequestration projects, with significant progress made on an exploratory project near its One Earth Energy plant since 2019. Carbon sequestration involves capturing and storing CO2, a key greenhouse gas, potentially helping to reduce global climate change1.
- Financial Performance: In Q2 2024, REX reported a profitable quarter with substantial progress on strategic projects. Despite a delay in the carbon capture project due to regulatory actions in Illinois, the company anticipates completion by Q1 2025. REX has also been expanding its ethanol production facility at One Earth Energy, increasing capacity from 150 million to 175 million gallons per year2.
- Stock Performance: Following the release of strong Q2 results, REX's stock rose by 2% in early trading. The company exceeded analyst estimates with adjusted earnings per share of $0.70, compared to $0.54, and revenue of $148.16 million, surpassing the consensus forecast of $146 million34.
- Corporate Developments: REX has been actively involved in investor events and has announced participation in the NYSE's Virtual Energy & Utilities Day and the Janney Montgomery Scott's 2nd Annual Clean Energy Investment Symposium in 20246.
In conclusion, Rex American Resources is a significant player in the ethanol production industry with a focus on renewable energy and carbon sequestration initiatives. The company's financial performance and strategic projects suggest a positive outlook, supported by recent stock market reactions to their earnings report.