Green Plains Inc. (NASDAQ:GPRE) Q3 2022 Earnings Conference Call November 3, 2022 9:00 AM ET

Company Participants

Phil Boggs - EVP, IR

Todd Becker - President and CEO

Jim Stark - CFO

Leslie van der Meulen - EVP, Product Marketing and Innovation

Conference Call Participants

Adam Samuelson - Goldman Sachs

Jordan Levy - Truist Securities

Kristen Owen - Oppenheimer & Co., Inc.

Kenneth Zaslow - BMO

Eric Stine - Craig-Hallum

Salvator Tiano - Bank of America

Operator

Good morning, and welcome to the Green Plains Inc., and Green Plains Partners Third Quarter 2022 Conference Call. Following the company's prepared remarks, instructions will be provided for Q&A. At this time, all participants are in a listen-only mode. I will now turn the call over to your host, Phil Boggs, Executive Vice President, Investor Relations. Mr. Boggs, please go ahead.

Phil Boggs

Thank you, and good morning, everyone. Welcome to Green Plains Inc., and Green Plains Partners Third Quarter Earnings Call. Participants on today's call are Todd Becker, President and Chief Executive Officer, Jim Stark, Chief Financial Officer, Patrich Simpkins, Chief Transformation Officer and Leslie van der Meulen, EVP of Product Marketing and Innovation. There is a slide presentation available, and you can find it on the Investor page under the Events and Presentations link on both corporate websites.

During this call, we will be making forward-looking statements, which are predictions, projections or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could materially differ because of factors discussed in today's press releases and the comments made during this conference call and in the Risk Factors section of our Form 10-K, Form 10-Q and other reports and filings with the Securities and Exchange Commission. We do not undertake any duty to update any forward-looking statements.

Now I'd like to turn the call over to Todd Becker.

Todd Becker

Thanks, Phil, and good morning, everyone. During the third quarter, we experienced a challenging margin environment, resulting in a negative $0.09 a gallon margin, some of which were onetime events and the rest largely driven by the record corn basis we experienced across to the Midwest, Southern Indiana and Tennessee, with impacts from the drought lowering corn yields, which tightened ending grain stocks as a result of three lower-than-average crops in a row in the north, the south and again, the Northern Hemisphere. We saw higher corn basis ahead of this year as harvest, but we kept our plants running through that. The world is not running out of corn. It's just tighter than normal, and it was a quarter where the industry needed to adjust.