REX American Resources Corporation ($REX) Q1 2023 Earnings Call Summary

REX American Resources Corporation ($REX) Q1 2023 Earnings Call Summary

Posted: 1 week, 2 days ago // May 25, 2023 7:21 p.m. UTC

Here is a summary of REX American Resources Corporation's Q1 2023 earnings call, which took place on May 25:

- REX American Resources experienced a 9.5% increase in sales in the first quarter of fiscal year 2023.

- REX reported a tax provision of $2 million this year versus $1.8 million in the prior year.

- REX plans to use its $270 million in cash and short-term investments for carbon capture projects, buybacks, and potential opportunities in ethanol and carbon capture.

- REX is working on carbon capture projects at its One Earth plant and through a partnership with Summit Carbon Solutions.

- The clean fuel production credit Section 45Z could provide up to $1 per gallon for reducing the carbon intensity score of ethanol produced and sold by REX.

- Completion of its carbon capture projects will lead to a greater benefit under the Inflation Reduction Act passed by Congress.

- REX achieved a profitable quarter, made progress on its carbon sequestration project, and signed a carbon offtake agreement with Summit Carbon Solutions.

- The company is leveraging their expertise in ethanol to capitalize on opportunities in carbon capture.

- The potential for carbon capture projects to generate significant income is a key focus for the company.

- Expanding plant capacity is seen as a more cost-effective approach than acquiring existing plants.

This is an AI generated summary. There may be inaccuracies.

Relevant tickers: REX