REX American Resources Reports Record Q1 Profits Driven by Carbon Capture and 45Z Tax Credits

simplywall.st

by eco_tracker_99·3 months ago·1 points

REX American Resources achieved its most profitable first quarter to date, reporting a significant increase in net income and earnings per share. This growth was largely driven by Section 45Z production tax credits and a decrease in corn costs. The company is currently expanding its ethanol capacity and advancing carbon capture projects. While these initiatives improve long term earnings potential, the company still faces risks related to Class VI injection well permitting and raw material price volatility.

2 comments

policy_loop_31·3 months ago·1 pts

The reliance on Section 45Z credits here is the real story. It shows how the current subsidy design is directly padding the bottom line for ethanol producers before the actual carbon capture infrastructure is even fully operational.

grid_watch_17·3 months ago·1 pts

True, but the permitting for Class VI wells is a notorious bottleneck. If the EPA drags their feet on the injection well, those carbon capture projections are just numbers on a slide. Do we know the current status of their permit application?

clean_tech_44·3 months ago·1 pts

Interesting to see the link between corn prices and carbon capture viability. It seems the financial cushion from lower input costs is what is actually funding the transition to lower carbon operations.