REX AMERICAN RESOURCES Corp Q4 FY2024 earnings call

• Fiscal 2024 saw ethanol sales growth, with 289.7 million gallons sold. Despite lower prices, net income and gross profit remained strong. • Substantially completed construction of the capture and compression portions of the carbon capture facility in 2024 and progressed the capacity expansion project at the One Earth Energy Ethanol facility. • In fiscal fourth quarter, repurchased approximately 373,000 shares, and in fiscal quarter one 2025, repurchased 282,000 shares. Board of Directors authorized an additional 1.5 million shares for repurchase. • Operational results: Ethanol sales volume increased, but gross profit decreased due to lower selling prices offset by lower corn and natural gas prices. SG&A expenses decreased, interest and other income grew, but net income and diluted net income per share decreased slightly from 2023.

Ethanol: In fiscal 2024, ethanol sales volume was 289.7 million gallons, an increase from 285.9 million gallons in 2023. Full-year average selling price was approximately $1.71 per gallon, and Q4 average selling price was $1.64 per gallon. Dry distillers grains (DDGs): Sales volume in 2024 was 632,000 tons, a 3% decrease from 2023. Full-year average selling price was $160.37 per ton, and Q4 average selling price was $143.81 per ton. Modified distillers grains: Sales volume in 2024 was 70,000 tons, an increase from approximately 54,000 tons in 2023. Full-year average selling price was $69.93 per ton, and Q4 average selling price was $72.84 per ton. Corn oil: Sales volume in 2024 was approximately 88.1 million pounds, a 1% increase from 2023. Full-year and Q4 average selling price was approximately 44 cents per pound.

• Budgeted a total of $222-$230 million for the carbon capture and ethanol production capacity expansion projects combined due to review of project elements and inflation. • Expecting a profitable Q1 2025, which would be the nineteenth consecutive profitable quarter. • Focused on making progress on strategic goals in 2025 and delivering value to shareholders.

• Potential tariffs on ethanol and co-product exports, particularly from Canada and Mexico. • Debate around year-round E15 blending, which could impact demand. • Regulatory uncertainties including PHMSA rules (previously issued rules under Biden admin not posted for 60-day comment period and under review by new admin) and EPA permitting for plastics wells.

Q: Asked about the higher capital budget on the expansion project and regulatory permitting, including PHMSA rules and EPA plastics well permitting.

A: Zafar Rizvi explained the higher budget was due to evaluating energy-efficient equipment to handle future growth, and on regulatory side, PHMSA rules were under review by new admin, and communication with EPA on plastics well permitting had started with two conversations held