Gevo to Report Fourth Quarter 2020 Financial Results Earlier

ENGLEWOOD, Colo., March 8, 2021 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) announced today that it has rescheduled the release of its fourth quarter 2020 financial results ended December 31, 2020 from March 18, 2021 to March 17, 2021 at 4:30 p.m. EST (2:30 p.m. MST).

To participate in the conference call on March 17, 2021, please dial (833) 729-4776 (inside the U.S.) or (830) 213-7701 and reference the access code 3178466#.

A replay of the call will be available two hours after the conference call ends on March 17, 2021. To access the replay, please visit https://edge.media-server.com/mmc/p/xhvdnuqd. The archived webcast will be available in the Investor Relations section of Gevo’s website at www.gevo.com.

About Gevo

Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel, and diesel fuel, that have the potential to yield net-zero greenhouse gas emissions when measured across the full lifecycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials from residues and slurries, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their lifecycle) and GHG scores. Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven and patented technology, which enables the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low carbon products such as gasoline components, jet fuel, and diesel fuel, yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Learn more at Gevo’s website: www.gevo.com

About HCS Group and Haltermann Carless

HCS Group is one of the leading manufacturers of high-quality hydrocarbons and specialty chemicals. The company employs about 500 people worldwide. The products are sold worldwide through the traditional brands Haltermann Carless, ETS Racing and EOS. HCS Group belongs to H.I.G. Europe, a subsidiary of the US private equity investment company, H.I.G. Capital.

The brand Haltermann Carless, one of the oldest chemical companies in the world, provides innovative hydrocarbon-based specialty products and solvents and associated services to best serve its customers. The company operates a network of state-of-the-art facilities for refining, processing and blending to produce a wide variety of specialty products in key business areas: Automotive, Middle Distillates, Oil & Gas, Pentanes, Performance Fuels, Performance Solvents and Aromatics.

The chemical company is a pioneer in developing and marketing a sustainable technologies portfolio based on renewable feedstock since more than a decade. With access to a variety of bio-based feedstock sources the company is able to supply into different high-end applications ranging from high purity solvents for personal care and cosmetics to specialty renewable fuels for motorsport races, outdoor power equipment and aviation contributing to significantly reduced greenhouse gas emissions.

For more information visit: http://www.h-c-s-group.com; www.haltermann-carless.com

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, statements related to the MOU to develop and build a renewable hydrocarbon facility at HCS Group’s site located in Speyer, Germany, Gevo’s technology, whether the project contemplated by the MOU will be constructed resulting in revenue to Gevo, and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2019, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Investor and Media Contact
IR@gevo.com

+1 720-647-9605

SOURCE: Gevo

Private Energy Companies’ Role in the Energy Cycle

The energy industry is a cyclical business. Energy prices rise, causing drilling activity to increase, creating excess supply that causes energy prices to fall. When energy prices fall, companies reduce drilling, which lowers supply and causes energy prices to rise. One never knows exactly which part of the cycle we may be experiencing or when the peaks and troughs will form, only that the cycle exists. But, a closer look at the active players within each cycle component can provide insight as to the length and magnitude of the cycle.

During the down periods of an energy cycle, cash flow is low. Smaller companies with weaker balance sheets are pressured. Some go bankrupt or are forced to sell off property at low prices. Most will be forced to sharply cut back drilling to operate within their expected cash flow. Larger, less leveraged companies are in a better position to take a longer-term perspective and continue drilling under the belief that energy prices will eventually rise.

The Role of Private Companies

During the boom periods of an energy cycle, the reverse is true. Large companies flush with cash will increase drilling. But, they will focus on their most profitable projects, leaving many good projects on the planning board. This is when smaller, sometimes private companies step in. Many successful companies have been formed by mid-level managers of large companies who form new companies that buy underutilized assets of their former employers.

Energy Today

So, what part of the energy cycle are we in currently? Is the recent rise in oil (and natural gas) prices a sign that we have reached an inflection point in the cycle? Or is it merely a head fake temporarily offsetting a longer trend. Bloomberg reports that there is a resurgence of private energy operators drilling in the Permian Basin. It points out that companies like DoublePoint Energy and Mewbourne Oil Co. are operating as many rigs in the basin as larger companies such as Chevron Corp. and Exxon Mobil Corp. While such a shift toward increased drilling by private companies is normal, it is usually seen in conjunction with increased drilling by established energy companies.

The fact of the matter is that large energy companies are not responding to higher oil prices in a manner similar to past cycles. Drilling has started to rise in response to the rise in oil prices that began last November. However, the number of active rigs in the United States (402 as of 2/19/21) is only half that of a year ago (790) despite higher energy prices.

The shift towards smaller and private energy investing has created unexpected delays in the supply response to higher prices. Large, well-funded energy companies can expand the drilling of known projects quickly. Drilling by small, underfunded companies takes more time. Assets must be acquired and analyzed. Funding must be secured. The shift towards private investors is perhaps one explanation as to why the rig count has been slow to respond.

Wrap-Up

Of course, there may be other reasons. COVID has thrown a wrench in the ability of companies to find and relocate employees to drilling sites. Large energy companies are also rethinking their commitment to fossil fuels. Companies like BP Amoco and Total SE are emphasizing investments in renewable energy over fossil fuels. A study by Deloitte shows that almost all companies setting emission targets have been companies with market caps above $10 billion. Time will tell whether new investors fill the investment gap being left by the majors. The pace and size of private energy investing could go a long way towards determining the length and magnitude of the current energy price cycle.

Suggested Reading:

Sources

https://finance.yahoo.com/news/shale-private-army-ramping-means-090003295.html, David Wethe, Kevin Crowley and Sheela Tobben, Bloomberg, March 1, 2021

https://www.forbes.com/sites/deborahbyers/2020/06/16/the-last-cycle-lessons-from-the-past-to-build-oil-and-gass-future/?sh=1cc3d1972cac, Deborah Byers, Forbes, June 16, 2020

https://www2.deloitte.com/us/en/insights/industry/oil-and-gas/oil-gas-energy-sector-disruption.html, Stanley Porter, Duane Dickson, Kate Hardin, Thomas Shattuck, Deloitte, August 13, 2020

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