Gevo to Report Second Quarter 2022 Financial Results on August 8, 2022

Research, News, and Market Data on Gevo

ENGLEWOOD, Colo., July 14, 2022 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) announced today that it will host a conference call on Monday, August 8, 2022, at 4:30 p.m. EDT (2:30 p.m. MDT) to report its financial results for the second quarter ended June 30, 2022 and provide an update on recent corporate highlights.

To participate in the live call, please register through the following event weblink: 
https://register.vevent.com/register/BI82c9f363e71c46baa4a8d5e9764fcdbd. After registering, participants will be provided with a dial-in number and pin.

To listen to the conference call (audio only), please register through the following event weblink: https://edge.media-server.com/mmc/p/65vvqgmx.

A webcast replay will be available two hours after the conference call ends on August 8, 2022. 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 when burned have the potential to yield net-zero greenhouse gas emissions when measured across the full life cycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, 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 life cycle). 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, patented technology enabling 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.

Gevo believes that the Argonne National Laboratory GREET model is the best available standard of scientific-based measurement for life cycle inventory or LCI.

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

Media Contact
Heather Manuel
+1 720-418-0085
IR@gevo.com

 

Aer Lingus Enters into New Fuel Sales Agreement with Gevo for 6.3 Million Gallons of Sustainable Aviation Fuel Per Year Over Five Years

ENGLEWOOD, Colo., July 13, 2022 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) is pleased to announce a new fuel sales agreement with Aer Lingus, which is owned by International Airlines Group (IAG). The Agreement provides for Aer Lingus to purchase 6.3 million gallons per year of sustainable aviation fuel (SAF) for five years from Gevo’s future commercial operations. Aer Lingus expects to commence fuelling its aircraft with SAF from Gevo in 2026. The expected value for the Agreement is deemed to be $173 million, inclusive of the value from environmental benefits for Gevo.

Aer Lingus, the Irish flag carrier is committed to a lower-carbon future. As part of International Airlines Group (IAG), Aer Lingus has pledged to achieve net-zero carbon emissions by 2050 and has committed to powering 10% of its flights using sustainable aviation fuel (SAF) by 2030. The introduction of SAF as a renewable fuel source is instrumental for the airline in realizing its ambitions.

Gevo expects to continue to pursue its stated goal of producing and commercializing one billion gallons of SAF by 2030. By using the Argonne GREET model to provide a lifecycle inventory of carbon, Gevo has a business model designed to reduce greenhouse-gas emissions to net-zero over the entire lifecycle of each gallon of advanced renewable fuel, including its SAF, and that includes the emissions resulting from burning the fuel in engines to power transportation. The agreement with Aer Lingus further increases Gevo’s global impact by adding to its range of airline partners.

“Gevo’s sustainable aviation fuel delivers renewable energy to a transportation sector that is actively seeking to reduce its carbon intensity,” said Dr. Patrick R. Gruber, Gevo’s Chief Executive Officer. “Because our fuel is fungible and drop-in ready, it’s expected to have an immediate impact to help our partner airlines achieve their sustainability targets ahead of schedule.”

In addition to its investment in SAF, a critical focus of Aer Lingus’ sustainability program is the modernization of its fleet. In recent years the Irish flag carrier has invested in new generation, more fuel-efficient, aircraft such as Airbus A321neo. Aer Lingus plans to modernize further with A32neo aircraft and A321neo XLR.

Speaking about fuel supply deal, Aer Lingus Chief Executive Officer, Lynne Embleton said, “This agreement with Gevo marks an exciting and critical step on our journey to net-zero carbon emissions and underlines our commitment to powering 10% of flights using sustainable aviation fuel by 2030. The sustainable aviation fuel produced by Gevo will be used to power our flights from Los Angeles and San Francisco and, from 2026, 50% of fuel purchased by Aer Lingus from California will be sustainable aviation fuel.”

The Agreement with Aer Lingus is subject to certain conditions precedent, including Gevo developing, financing, and constructing one or more production facilities to produce the SAF contemplated by the Agreement.

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 when burned have potential to yield net-zero greenhouse gas emissions when measured across the full life cycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, 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 life cycle). 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, patented technology enabling 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.

Gevo believes that the Argonne National Laboratory GREET model is the best available standard of scientific-based measurement for life cycle inventory or LCI.

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

About Aer Lingus
Aer Lingus is the Irish flag carrier, founded in 1936. In summer 2022, Aer Lingus will operate over 100 routes, flying to over 71 direct routes and to 62 destinations from Ireland to the UK and Europe. The airline operates 16 transatlantic routes from Dublin, Shannon and Manchester UK to North America and the Caribbean. Aer Lingus is a 4-Star airline, awarded by Skytrax, the international air transport rating organisation. Aer Lingus is a member of International Airlines Group (IAG), one of the world’s largest airline groups.

Aer Lingus was awarded Stage 1 IEnvA certification in June 2021. This is an environmental management and evaluation system designed to independently assess and improve the environmental performance of an airline. Aer Lingus has begun its journey to achieving IEnvA Stage 2.

For more info, visit www.aerlingus.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, without limitation, including Gevo’s technology, Aer Lingus, the International Airlines Group, IAG, Gevo’s ability to develop, finance, construct and operate commercial production facilities to produce the SAF for Aer Lingus, financial projections, the attributes of Gevo’s products, 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, 2021, 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.

Image Courtesy of Alvopetro Energy

Why Natural Gas Opportunities Should Not Always be Lumped in With the Oil Sector

Oil and gas companies were the all-stars in 2021, and so far, in 2022, it is the only group in the green. The category’s performance during June was met with some deflated exuberance and has dipped, but is showing a return of 30.5% YTD. The reason for this is the rising demand for oil and the rising demand for natural gas that began long before Russia’s invasion of Ukraine. What is more compelling is if you look at the prices of oil and natural gas separately, you find natural gas prices are up an additional 18% over the price of oil. These are North American prices, but the trend is the same or more dramatic in other parts of the globe.

Source: Koyfin

The demand for natural gas began before the European war and is expected to outlast it. In fact, the rise in gas prices began in October 2020. So the upward trajectory is 20 months old and has included large dips and spikes as part of its climb. For investors on the fence about committing more to the energy sector, looking at the prices of the underlying commodity is critical to judge entry points. For those considering the only sector that is green this year, they may wish to further refine their selection and look at pure-play producers of natural gas. 

Natural gas is now viewed as a bridge source of energy. It has become clear that if more of our energy is to come from wind and solar, there will be a very long period where we will still require reliable, high-output energy from traditional sources. One of the reasons there are rising prices among all fossil fuels is because of the abrupt way many countries changed their energy policies. Most oil companies still don’t know where the country they operate in stands from quarter to quarter on oil acceptance. This is a problem, especially for the larger less nimble companies that are torn between using resources to build out biofuels or to lease and develop a production facility.

A clearer understanding of the benefits of natural gas allows it to be listed in the European sustainability classification as “Transitional
Activities” beginning in 2023. The category includes those not considered fully sustainable but have emissions below the industry average, and do not lock in polluting assets or crowd out greener alternatives.

Natural gas has quickly become the “must-have” ingredient for countries transitioning to alternative fuels.

There are many companies involved in the production of natural gas, most are part of a larger oil producer. If you wish to benefit from the increased demand of the “greener ” natural gas, a Google search of “pure play natural gas producers” will provide you with many companies to review. At the top of the list, assuming it’s alphabetized, is a unique company with a situation you may find quite compelling, Alvopetro Energy (ALVOF, ALV:CA) .

 

Alvopetro

Two years ago, Canadian independent Alvopetro managed to get approved to become Brazil’s first, and still only, non-government-owned producer of natural gas. Location sometimes is everything, and Brazil is the ninth-largest economy in the world.

Aside from current earnings that exceed expectations and a unique sharing policy with investors, Alvopetro has tremendous profitability per unit of production. In accounting, it’s called “netback,” it is the cash left after subtracting from revenues all costs associated with bringing the gas from the ground to market, including transportation, royalties, and production expenses. In this category, ALVOF is at the top of the industry.

The reasons Alvopetro has such a high netback are many, involving both costs and pricing. They have a low cost structure, including enviable operating costs, a low 15% tax rate, and transportation costs are minimal because an industrial area located fewer than 10 miles away has a demand for natural gas that exceeds supply. The pricing structure would also seem ideal for the company and shareholders as it assures prices move with what is happening internationally, yet it doesn’t subject the company to the daily ups and downs of the natural gas market. Alvopetro has negotiated a price formula that resets every six months on a price basket of the most common oil and gas benchmarks. This creates a natural hedge for the company and its customers.

Unique to ALVOF is its policy of reinvesting and distributing earnings. The company last paid a dividend that equates to a yield of 6.42% at today’s share price of $4.99. I spoke with CEO Corey Ruttan and he explained to me that “they follow a balanced approach taking roughly half of cashflows to reinvest in organic growth and return the other half to stakeholders.” On the organic growth front, Alvopetro has already announced discoveries at both their 2022 exploration prospects. On the return part of the model, they have paid down nearly all debt. The stakeholders include debt providers and shareholders and with the former being nearly repaid it paves the way for potential increases in returns to shareholders. 

Channelchek just did a C-Suite interview with Corey Ruttan the President and CEO of Alvopetro. In the discussion, you’ll learn in much greater detail the nuances that make this natural gas provider extremely unique for investors. Additional research reports on the company can be found here.

 

Take Away

Oil and gas producers have been the outperformers for over a year. They track the prices of the commodities they produce fairly closely. When one looks at the price of natural gas compared to oil, it has been pulling more than its share of the price increases. Because it is a very clean-burning fossil fuel it is now being viewed as “green energy” and more importantly recognized as critical to any global energy transformation.

There are many pure-play natural gas producers, Channelchek outlined the one above with a higher than average netback margin and a generous policy toward shareholders. Sign-up here for Channelchek and gain access to all equity research and receive news and ideas in your inbox each day. 

Paul Hoffman

Managing Editor, Channelchek

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Interview with Alovpetro Energy (ALVOF)(ALV.V) President & CEO Corey Ruttan

Sources

https://www.ft.com/content/3488236e-ff3b-47ad-9482-296c2f64a1f1

https://news.alphastreet.com/alvopetro-energy-ltd-alv-q1-2022-earnings-call-transcript/

https://www.argusmedia.com/en/news/2119344-alvopetro-breaks-petrobras-gas-monopoly-in-bahia

Corey Ruttan
President and CEO Alvopetro Energy

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Monday, July 11, 2022

Alvopetro Energy (ALVOF)
Drilling success paves the way for future growth

Alvopetro Energy Ltd.’s vision is to become a leading independent upstream and midstream operator in Brazil. Our strategy is to unlock the on-shore natural gas potential in the state of Bahia in Brazil, building off the development of our Caburé natural gas field and our strategic midstream infrastructure.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Alvopetro announced multizone discovery at exploratory well. Management announced that it has discovered 34.3 meters of potential net hydrocarbon pay on well 183-B1. The discovery follows similar results at sister well 182-C1 as announced in April. Both wells will begin production testing shortly, which will help determine well economics. The discovery of hydrocarbons in the wells is not unexpected but an important step in the company’s growth plans.

The wells are more exploratory in nature and represent a step out of current production. Alvopetro’s drilling program can be described as a two-pronged approach that includes both developmental drilling in the Murucututu/Gomo Project and exploratory drilling  in the block west of Gomo. Developmental drilling is needed to maintain production and fill out this summer’s gas plant expansion to 18 MMcf/day. Exploratory drilling success is needed to justify future gas plant expansions in order to meet management’s long-term goal of reaching 35 MMcf/day….

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Alvopetro Announces Multizone Discovery at 183-B1 Exploration Well and June 2022 Sales Volumes

Research, News, and Market Data on Alvopetro Energy

CALGARY, AB, July 7, 2022 /CNW/ – Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) We are pleased to announce a multizone discovery on our 183-B1 exploration location.  We completed drilling the 183-B1 exploration well on our 100% owned and operated Block 183 in the Recôncavo basin and, based on open-hole wireline logs and fluid samples confirming hydrocarbons, the well has discoveries in multiple formations with a total of 34.3 metres of potential net hydrocarbon pay, with an average porosity of 10.6% and average water saturation of 29.0%.

 President and CEO, Corey Ruttan commented:

“Preliminary drilling results from both of our 2022
conventional exploration wells represent significant steps forward in our
organic growth strategy. Our gas processing facility expansion is nearly complete,
and we look forward to production testing our latest discovery at 183-B1 as
well as our earlier success at the 182-C1 location.  These tests will help
define the full development and production growth potential of these exciting
new discoveries.”

The 183-B1 well was spud on June 5, 2022 and drilled to a total measured depth (“MD”) of 2,917 metres. Based on open-hole logs and collected fluid samples, the 183-B1 well encountered multiple zones of interest with an aggregate 34.3 metres of potential net hydrocarbon pay, using a 6% porosity cut-off, 50% Vshale cut-off and 50% water saturation cut-off:

Candeias Formation

A 5.3-metre-thick sand in the Gomo member of the Candeias Formation was encountered at 2,578 to 2,583 metres total vertical depth, with 5.3 metres of potential net light oil pay, at an average 35.0% water saturation and average porosity of 15.7%.  A fluid sample was also collected with a dual packer wireline tool recovering 37.1-degree API oil with no water to surface from 2,580 metres depth at a formation pressure of 4,317 psi.

Agua Grande Formation

A 19.8 metre-thick Agua Grande Formation sand was encountered at 2,677 to 2,697 metres total vertical depth with 11.4 metres of potential net natural gas pay, at an average 25.5% water saturation and average porosity of 11.9%. Of the 11.4 metres of potential net natural gas pay, 2.6 metres were encountered within the upper Agua Grande section the Agua Grande Formation, at an average 18.5% water saturation and an average porosity of 17.2%.  A fluid sample was collected from this upper section at 2,679 metres with a dual packer wireline tool recovering dry natural gas and no water to surface at a formation pressure of 3,984 psi.

Sergi Formation

In the Sergi Formation, a 78.4 metre thick sand-dominated interval was encountered at 2,809 to 2,887 metres total vertical depth. Hydrocarbon shows were present throughout drilling the entire section. Open-hole logs indicate 17.5 metres of potential light oil pay at an average 29.4% water saturation and average porosity of 8.3%. A fluid sample was collected from this section during modular formation dynamic testing (“MDT”), confirmed by lab analysis, recovered 40.7-degree API oil and no water to surface from 2,822 metres depth with a formation pressure of 4,740 psi. Within the 78.4 metre Sergi interval there is an additional 29.9 metres of Sergi sand that experienced significant wellbore washouts with possible net pay that is expected to be validated through testing. As such, this 29.9-metre interval is currently being excluded from calculated potential net hydrocarbon pay. 

Based on these drilling results, we plan to undertake a multi-zone testing program of the 183-B1 well, subject to customary regulatory approvals and equipment availability. This additional testing will assess the extent, if any, of commercial hydrocarbons associated with the well, the productive capability of the well and will help define the field development plan. 

Operational Update

Our Caburé gas plant expansion is scheduled to be completed later in July. Following the expansion, our available processing capacity is expected to increase by 25% to at least 500,000 cubic metres per day (18 MMcfpd).

On our Murucututu project, we expect to commence commissioning of our field production facility at our 183(1) location later in July.  We have also commenced field installation of the pipeline extension to tie-in our 197(1) well and expect construction to be completed in approximately three months.

June Sales Volumes

June sales volumes averaged 2,480 boepd, including natural gas sales of 14.2 MMcfpd, associated natural gas liquids sales from condensate of 102 bopd and oil sales of 5 bopd, based on field estimates.  Our sales volumes averaged 2,359 boepd in the second quarter of 2022, consistent with sales volumes in the second quarter of 2021 and a decrease of 6% from the first quarter of 2022 due to our planned five-day shutdown in May scheduled to complete advance work for our gas plant expansion. 

Corporate Presentation

Alvopetro’s updated corporate presentation is available on our website at:

http://www.alvopetro.com/corporate-presentation. 

Social Media

Follow Alvopetro on our social media channels at the following links:

Twitter – https://twitter.com/AlvopetroEnergyInstagram – 
https://www.instagram.com/alvopetro/LinkedIn – 
https://www.linkedin.com/company/alvopetro-energy-ltdYouTube: https://www.youtube.com/channel/UCgDn_igrQgdlj-maR6fWB0w

Alvopetro Energy Ltd.’s vision is to become a
leading independent upstream and midstream operator in Brazil. Our
strategy is to unlock the on-shore natural gas potential in the state of Bahia
in Brazil,
building off the development of our Caburé natural gas field and our strategic
midstream infrastructure.

Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this news release.

All amounts contained in this new release are in United States dollars,
unless otherwise stated and all tabular amounts are in thousands of United States dollars,
except as otherwise noted.

Abbreviations:

boepd	=	barrels of oil equivalent (“boe”) per day
bopd	=	barrels of oil and/or natural gas liquids (condensate) per day
MBOE	=	thousands of barrels of oil equivalent
MMcf	=	million cubic feet
MMcfpd	=	million cubic feet per day

BOE Disclosure. The term barrels of oil
equivalent (“boe”) may be misleading, particularly if used in
isolation. A boe conversion ratio of six thousand cubic feet per barrel
(6Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. All boe conversions in this
news release are derived from converting gas to oil in the ratio mix of six
thousand cubic feet of gas to one barrel of oil.

Testing and Well Results.  Data obtained
from the 183-B1 well identified in this press release, including hydrocarbon
shows, open-hole logging, net pay and porosities, should be considered to be
preliminary until testing, detailed analysis and interpretation has been completed.
Hydrocarbon shows can be seen during the drilling of a well in numerous
circumstances and do not necessarily indicate a commercial discovery or the
presence of commercial hydrocarbons in a well. There is no representation by
Alvopetro that the data relating to the 183-B1 well nor the 182-C1 well
contained in this press release is necessarily indicative of long-term
performance or ultimate recovery. The reader is cautioned not to unduly rely on
such data as such data may not be indicative of future performance of the well
or of expected production or operational results for Alvopetro in the future.

Cautionary statements regarding the filing of a Notice of
Discovery. We have submitted a Notice of Discovery of Hydrocarbons to
the Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (the
“ANP”) with respect to the 183-B1 well. All operators in Brazil are
required to inform the ANP, through the filing of a Notice of Discovery, of
potential hydrocarbon discoveries. A Notice of Discovery is required to be filed
with the ANP based on hydrocarbon indications in cuttings, mud logging or by
gas detector, in combination with wire-line logging. Based on the results of
open-hole logs, we have filed a Notice of Discovery relating to our 183-B1
well. These routine notifications to the ANP are not necessarily indicative of
commercial hydrocarbons, potential production, recovery or reserves.

Forward-Looking Statements and Cautionary Language. This
news release contains “forward-looking information” within the
meaning of applicable securities laws. The use of any of the words
“will”, “expect”, “intend” and other similar
words or expressions are intended to identify forward-looking information.
Forward?looking
statements involve significant risks and uncertainties, should not be read as
guarantees of future performance or results, and will not necessarily be
accurate indications of whether or not such results will be achieved. A number
of factors could cause actual results to vary significantly from the
expectations discussed in the forward-looking statements. These forward-looking
statements reflect current assumptions and expectations regarding future
events. Accordingly, when relying on forward-looking statements to make
decisions, Alvopetro cautions readers not to place undue reliance on these
statements, as forward-looking statements involve significant risks and
uncertainties. More particularly and without limitation, this news release
contains forward-looking information concerning potential hydrocarbon pay in
the 183-B1 well, exploration and development prospects of Alvopetro and the
expected timing of certain of Alvopetro’s testing and operational activities.
The forward?looking
statements are based on certain key expectations and assumptions made by
Alvopetro, including but not limited to expectations and assumptions concerning
testing results of the 183-B1 well and the 182-C1 well, equipment availability,
the timing of regulatory licenses and approvals, the success of future
drilling, completion, testing, recompletion and development activities, the
outlook for commodity markets and ability to access capital markets, the impact
of the COVID-19 pandemic, the performance of producing wells and reservoirs,
well development and operating performance, foreign exchange rates, general
economic and business conditions, weather and access to drilling locations, the
availability and cost of labour and services, environmental regulation,
including regulation relating to hydraulic fracturing and stimulation, the
ability to monetize hydrocarbons discovered, the regulatory and legal
environment and other risks associated with oil and gas operations. The reader
is cautioned that assumptions used in the preparation of such information,
although considered reasonable at the time of preparation, may prove to be
incorrect. Actual results achieved during the forecast period will vary from
the information provided herein as a result of numerous known and unknown risks
and uncertainties and other factors.  Although Alvopetro believes that the
expectations and assumptions on which such forward-looking information is based
are reasonable, undue reliance should not be placed on the forward-looking
information because Alvopetro can give no assurance that it will prove to be
correct. Readers are cautioned that the foregoing list of factors is not
exhaustive. Additional information on factors that could affect the operations
or financial results of Alvopetro are included in our annual information form
which may be accessed on Alvopetro’s SEDAR profile at www.sedar.com.
The forward-looking information contained in this news release is made as of
the date hereof and Alvopetro undertakes no obligation to update publicly or
revise any forward-looking information, whether as a result of new information,
future events or otherwise, unless so required by applicable securities laws.

SOURCE Alvopetro Energy Ltd.

Image Credit: It’s Our City (Flickr)

Monitoring the Gusher of Cross Currents in the Energy Industry

A plan from the White House to allow drilling in the Gulf of Mexico. Calls for a crude export ban. A Biden tweet asks companies running gas stations to drop prices. A proposed price cap on Russian oil. And OPEC-plus output is expected to remain steady. These are just some of the events impacting energy company stocks. Meanwhile, travel in the U.S. skyrocketed to levels not seen in years to kick off the summer vacation season. For their part, oil industry stocks, as measured by the XLE, are down 25% from their high a month ago (June 8), and are approaching their 200-day moving average. Is the cooling off in oil company stocks temporary? Could the recent sell-off attract dip buyers, and what is the overall health of the industry beyond the outside noise? 

Source: Koyfin

Selling Gulf Drilling Leases

On July 1, in a disappointment to some environmental groups, the Biden administration made two moves to open public lands to fossil fuel extraction. The administration held its first onshore lease sales, and it released a proposal for offshore drilling that could open parts of the Gulf of Mexico and Alaska’s Cook Inlet to leasing through 2028.

Oil industry officials said the action would do little to help counter high energy prices. This is important to the President as gasoline prices have been a daily reminder for voters of how life has changed since the President has taken office. Biden’s taking action against higher fuel prices could be seen as a political move aimed at helping the mid-term elections come out in favor of the President’s party. The oil industry officials throw cold water on any thinking that it would change prices, they say there will be a months-long gap before a new plan can be put in place. The oil industry spokespersons say the delay could cause problems in planning new drilling and potentially lead to decreased oil production. Overall, oil companies are hesitant to go all out and bid for leases and commit extraordinary resources to projects when the administration’s commitment is uncertain.

The administration had already suspended lease sales earlier in 2022, citing climate concerns. As a result of a court order by a U.S. district judge in Louisiana, the company involved was cleared to resume.

There is a long start-up time between the bidding process and the developing drilling operations. In the meantime, there is no sign for the oil companies to feel comfortable committing to long-range projects because the administration has not shown unwavering commitment. Resources allocated to what the administration says it is committed to, that is a move away from fossil fuels, would seem more appropriate in the long run for energy companies.

 

Export Ban Feasibility

The Biden administration wants to potentially place an outright ban on U.S. exports of oil and refined products. Speaking to reporters during a tour of the Strategic Petroleum Reserve in Louisiana, Energy Secretary Jennifer Granholm said that the administration was “not taking any tools off the table” in its effort to reduce prices at the pump, including reimposing the 1970s ban on oil exports that was lifted in 2015. This is confusing to consumers and oil companies alike as it was just last December that Granholm said an export ban was not under consideration. Secretary Granholm’s comments seem to mark a significant shift in energy policy for the administration.

A ban would have to take into account the complex global oil market. Each country does not produce the quality of crude oil or refined petroleum products used in its country. For many, imports from the U.S. have no substitutes. This would force them to find other providers, or do without. The highly advanced U.S. refining capabilities allow it to take low-cost heavy oil from Central America and Canada and turn it into high-grade gasoline. This ability to input low-cost crude and export high-value refined products is a net positive for the U.S. when measuring trade surplus’/deficits.

While an export ban may score points politically, it may not accomplish a useful goal. In January, the Dallas Federal Reserve released a study on the potential impacts of a crude oil export ban. It measures possible consequences on worldwide energy prices and their impact on Americans. The study concluded that a halt of U.S. exports “would lower the supply of oil in global markets and raise its price” and “one would expect global fuel prices, if anything, to increase as a result.”

Image: A tweet from @POTUS draws a snarky reply from the domestic oil and gas advocate USOGA.

OPEC-Plus Output Decision

OPEC+ is the name given to the combined oil-producing countries that include the 13 members of OPEC, and 10 other oil-producing countries including Russia. On Thursday (June 30) OPEC+ confirmed it would not increase output for the month of August any more than previously announced. The group had concerns about oversupplying in the face of mounting factors that could lead to a recession. Ironically, one of those factors is the tight global supply of oil.

Previously, OPEC+ decided to increase output each month by 648,000 barrels per day (BPD) in July and August. The OPEC+ group of producers ended the meeting by agreeing to stick to its output strategy. The producers did not discuss policy for September or beyond.

Analysts Report

“Energy industry fundamentals remain strong.” Wrote Noble Capital Markets, Senior Energy Analyst Michael
Heim, in his quarterly
report on the industry released this week. Heim went on to write that cash flow levels are envious in the industry, and debt levels are being pared down. He maintains his positive bias toward the sector and favors small-caps within the sector “with the ability to expand operations.”

 
Take Away

Energy companies’ performance, particularly those involved in oil or natural gas, have had excellent performance over the past two years – they have been the top-performing sector so far this year. However there has been a bit of a dip, and there are many crosscurrents that could make a continued rise a bit choppier than it had been.

The outlook on the industry is positive as the companies are faced with an enviable number of options and opportunities to rework their finances and perhaps move into new projects, both traditional and future-looking.

They, however, need to pin down the administration on whether it is committed to their products long term. This nod to the future could open the door to more investment in production. Alternatively, if they are caught in political positioning that may not carry any weight six months down the road, wrong decisions now could be expensive.

Read Michael Heim’s Energy Industry Report – The Outlook for Energy Stocks Remains Favorable
here.

Paul Hoffman

Managing Editor, Channelchek

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Sources

https://insideclimatenews.org/news/01072022/public-lands-fossil-fuel-drilling-leases-biden/

https://www.whitehouse.gov/briefing-room/statements-releases/2021/01/27/fact-sheet-president-biden-takes-executive-actions-to-tackle-the-climate-crisis-at-home-and-abroad-create-jobs-and-restore-scientific-integrity-across-federal-government/

https://www.npr.org/2022/07/02/1109552068/a-biden-administration-offshore-drilling-proposal-would-allow-up-to-11-sales

https://www.forbes.com/sites/daneberhart/2022/06/07/banning-us-exports-would-be-bidens-ultimate-energy-folly/

https://www.thehindu.com/news/international/opec-plus-the-cartel-and-its-allies-that-keep-oil-on-the-boil/article65493511.ece#:~:text=OPEC%20Plus%20refers%20to%20a,%2C%20Azerbaijan%2C%20Bahrain%2C%20Brunei%2C

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Tuesday, July 5, 2022

Energy Industry Report

The outlook for energy stocks remains favorable

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to end of report for Analyst Certification & Disclosures

• Energy stocks finally cooled off after five consecutive quarters of gains. The energy stock index declined 6.4% in the June quarter due to weakness in the overall market. The S&P Composite Index declined 16.4% during the quarter.
• Oil prices continued the climb begun in the spring of 2020 rising 5.5% in the quarter. The climb may have come to an end, however, with WTI prices peaking at $120 per barrel in the first week of June before settling at current levels near $108 per barrel. Supply concerns associated with the Ukraine conflict have been replaced by worries that economic tightening will lead to a slowdown in the world economy. OPEC announced production increases right at the end of the quarter, further putting pressure on prices. Active rigs have almost tripled in the last two years but remain below pre-pandemic levels and are only one-third of peak levels in 2015.
• Like oil prices, natural gas prices were strong in April and May but fell sharply in June. For the quarter, spot gas prices declined 3.9%. Gas in storage remains near the bottom of historical levels as the industry begins to refill storage fields
• Energy industry fundamentals remain strong. The recent drop in oil and gas prices does not concern us as prices are still well above the levels assumed in our financial and valuation models. Companies able to expand drilling efforts are doing so at a very high return on equity. Cash flow generation is high, and companies are facing the envious situation of trying to decide what to do with the cash. We maintain our positive bias on the group and favor small cap energy stocks with the ability to expand operations.

Energy Stocks

Energy stocks, as measured by the XLE Energy Index, finally cooled off after five consecutive quarters of gains. The XLE declined 6.4% in the June quarter. The decline was largely due to weakness in the overall market as oil and natural gas prices were largely unchanged. The S&P Composite Index declined 16.4% during the quarter. Looking at the XLE performance, it is interesting to note that the index’s performance was up sharply until hitting a peak on June 8^th and then declining 15% in the last three weeks of the quarter.

Oil Prices

Oil prices continued the climb begun in the spring of 2020. The climb may have come to an end with WTI prices peaking at $120 per barrel in the first week of June before settling at current levels near $108 per barrel. Supply concerns associated with the Ukraine conflict have been replaced by worries that economic tightening will lead to a slowdown in the world economy. OPEC announced production increases right at the end of the quarter, further putting pressure on prices. The gap between Brent and WTI pricing has grown with Brent oil prices now commanding a $7/bbl. premium. Oil future prices are currently backward declining a few dollars each month and falling below $100 by yearend. Drillers are beginning to react to higher oil prices, but the response has been slow. Active rigs have almost tripled in the last two years but remain below pre-pandemic levels and are only one-third of peak levels in 2015. As the chart below shows, there has been a disconnect between the oil rig count and oil prices in recent years that has become only more exaggerated in recent months with oil prices rising above $100.

Figure #1

 

 

Source: Baker-Hughes

 

Natural Gas Prices

Like oil prices, natural gas prices were strong in April and May but fell sharply in June. For the quarter, spot gas prices declined 3.9%. Gas in storage remains near the bottom of historical levels as the industry begins to refill storage fields. Gas storage is about 300 billion cubic feet or 12% below the trailing five-year average. This will most likely keep natural gas prices at elevated levels until the injections season ends in November.

 

Figure #2

 

 

 

 

Outlook

Energy industry fundamentals remain strong. The recent drop in oil and gas prices does not concern us as prices are still well above the levels assumed in our financial and valuation models. Companies able to expand drilling efforts are doing so at a very high return on equity. Cash flow generation is high, and companies are facing the envious situation of trying to decide what to do with the cash. Debt levels have been pared down and managements are reluctant to initiate/raise above in case the industry goes into a down cycle forcing them to reverse course. Share repurchase remains a viable option especially if energy stocks continue to be weak alongside the overall market. We maintain our positive bias on the group and favor small cap energy stocks with the ability to expand operations.

GENERAL DISCLAIMERS

All statements or opinions contained herein that include the words “we”, “us”, or “our” are solely the responsibility of Noble Capital Markets, Inc. (“Noble”) and do not necessarily reflect statements or opinions expressed by any person or party affiliated with the company mentioned in this report. Any opinions expressed herein are subject to change without notice. All information provided herein is based on public and non-public information believed to be accurate and reliable, but is not necessarily complete and cannot be guaranteed. No judgment is hereby expressed or should be implied as to the suitability of any security described herein for any specific investor or any specific investment portfolio. The decision to undertake any investment regarding the security mentioned herein should be made by each reader of this publication based on its own appraisal of the implications and risks of such decision.

This publication is intended for information purposes only and shall not constitute an offer to buy/sell or the solicitation of an offer to buy/sell any security mentioned in this report, nor shall there be any sale of the security herein in any state or domicile in which said offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or domicile. This publication and all information, comments, statements or opinions contained or expressed herein are applicable only as of the date of this publication and subject to change without prior notice. Past performance is not indicative of future results.

Noble accepts no liability for loss arising from the use of the material in this report, except that this exclusion of liability does not apply to the extent that such liability arises under specific statutes or regulations applicable to Noble. This report is not to be relied upon as a substitute for the exercising of independent judgement. Noble may have published, and may in the future publish, other research reports that are inconsistent with, and reach different conclusions from, the information provided in this report. Noble is under no obligation to bring to the attention of any recipient of this report, any past or future reports. Investors should only consider this report as single factor in making an investment decision.

IMPORTANT DISCLOSURES

This publication is confidential for the information of the addressee only and may not be reproduced in whole or in part, copies circulated, or discussed to another party, without the written consent of Noble Capital Markets, Inc. (“Noble”). Noble seeks to update its research as appropriate, but may be unable to do so based upon various regulatory constraints. Research reports are not published at regular intervals; publication times and dates are based upon the analyst’s judgement. Noble professionals including traders, salespeople and investment bankers may provide written or oral market commentary, or discuss trading strategies to Noble clients and the Noble proprietary trading desk that reflect opinions that are contrary to the opinions expressed in this research report.

The majority of companies that Noble follows are emerging growth companies. Securities in these companies involve a higher degree of risk and more volatility than the securities of more established companies. The securities discussed in Noble research reports may not be suitable for some investors and as such, investors must take extra care and make their own determination of the appropriateness of an investment based upon risk tolerance, investment objectives and financial status.

Company Specific Disclosures

The following disclosures relate to relationships between Noble and the company (the “Company”) covered by the Noble Research Division and referred to in this research report.

Noble is not a market maker in any of the companies mentioned in this report. Noble intends to seek compensation for investment banking services and noninvestment banking services (securities and non-securities related) with any or all of the companies mentioned in this report within the next 3 months.

ANALYST CREDENTIALS, PROFESSIONAL DESIGNATIONS, AND EXPERIENCE

Senior Equity Analyst focusing on energy and utility stocks. 24 years of experience as an analyst. Chartered Financial Analyst©. MBA from Washington University in St. Louis and BA in Economics from Carleton College in Minnesota. Named WSJ ‘Best on the Street’ Analyst four times. Named Forbes/StarMine’s “Best Brokerage Analyst” three times. FINRA licenses 7, 63, 86, 87.

WARNING

This report is intended to provide general securities advice, and does not purport to make any recommendation that any securities transaction is appropriate for any recipient particular investment objectives, financial situation or particular needs. Prior to making any investment decision, recipients should assess, or seek advice from their advisors, on whether any relevant part of this report is appropriate to their individual circumstances. If a recipient was referred to by an investment advisor, that advisor may receive a benefit in respect of transactions effected on the recipients behalf, details of which will be available on request in regard to a transaction that involves a personalized securities recommendation. Additional risks associated with the security mentioned in this report that might impede achievement of the target can be found in its initial report issued by . This report may not be reproduced, distributed or published for any purpose unless authorized by.

RESEARCH ANALYST CERTIFICATION

Independence Of View

All views expressed in this report accurately reflect my personal views about the subject securities or issuers.

Receipt of Compensation

No part of my compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed in the public appearance and/or research report.

Ownership and Material Conflicts of Interest

Neither I nor anybody in my household has a financial interest in the securities of the subject company or any other company mentioned in this report.

NOBLE RATINGS DEFINITIONS	% OF SECURITIES COVERED	% IB CLIENTS
Outperform: potential return is >15% above the current price	95%	28%
Market Perform: potential return is -15% to 15% of the current price	5%	2%
Underperform: potential return is >15% below the current price	0%	0%

NOTE: On August 20, 2018, Noble Capital Markets, Inc. changed the terminology of its ratings (as shown above) from “Buy” to “Outperform”, from “Hold” to “Market Perform” and from “Sell” to “Underperform.” The percentage relationships, as compared to current price (definitions), have remained the same.

Additional information is available upon request. Any recipient of this report that wishes further information regarding the subject company or the disclosure information mentioned herein, should contact Noble Capital Markets, Inc. by mail or phone.

Noble Capital Markets, Inc.
150 East Palmetto Park Rd., Suite 110
Boca Raton, FL 33432
561-994-1191

Noble Capital Markets, Inc. is a FINRA (Financial Industry Regulatory Authority) registered broker/dealer.
Noble Capital Markets, Inc. is an MSRB (Municipal Securities Rulemaking Board) registered broker/dealer.
Member – SIPC (Securities Investor Protection Corporation)

Report ID: 24648

Noble Capital Markets Senior Research Analyst Michael Heim sits down with Alovpetro Energy President & CEO Corey Ruttan Research, News, and Advanced Market Data on ALVOF View all C-Suite Interviews The 2022 C-Suite Interview series is now available on major podcast platforms Alvopetro Energy Ltd.’s vision is to become a leading independent upstream and midstream operator in Brazil. Our strategy is to unlock the on-shore natural gas potential in the state of Bahia in Brazil, building off the development of our Caburé natural gas field and our strategic midstream infrastructure.

Alvopetro Announces 2022 Annual and Special Meeting Voting Results and Implementation of Omnibus Incentive Plan

Research, News, and Market Data on Alvopetro Energy

Jun 23, 2022

CALGARY, AB, June 23, 2022 /CNW/ – Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces the results of voting at its annual and special meeting (the “Meeting”) held virtually on June 22, 2022, and the implementation of the Omnibus Incentive Plan.

Voting Results

Alvopetro held the Meeting virtually on June 22, 2022.  Alvopetro shareholders approved the following resolutions.

1.        Election of
Directors

Shareholders approved the election of six nominees as directors of Alvopetro to serve until the next annual meeting of shareholders or until their successors are elected or appointed, with the number and percentage of common shares represented at the meeting voting by way of ballot in favour of and withheld from voting of the individual nominees as follows:

Nominee	Votes For	Percent	Withheld	Percent
Corey C. Ruttan	12,986,045	98.072 %	255,360	1.928 %
Firoz Talakshi	12,989,155	98.095 %	252,250	1.905 %
Geir Ytreland	12,989,155	98.095 %	252,250	1.905 %
John D. Wright	12,986,352	98.074 %	255,053	1.926 %
Kenneth R. McKinnon	12,986,402	98.074 %	255,003	1.926 %
Roderick L. Fraser	12,990,615	98.106 %	250,790	1.894 %

2.       Appointment of
Auditors

Shareholders approved the appointment of KPMG LLP, Chartered Professional Accountants, to serve as auditors of Alvopetro for the ensuing year at such remuneration as may be determined by the Company’s board of directors, with 99.980% of the common shares represented at the Meeting voting in favour of the resolution.

3.       Approval of Omnibus
Incentive Plan

Shareholders approved the Omnibus Incentive Plan, the new share-based compensation plan of the Company, with 98.513% of the common shares represented in the Meeting voting in favour of the resolution.

Implementation of Omnibus Incentive Plan

Pursuant to the resolution approved by shareholders at the Meeting, Alvopetro has now implemented the Omnibus Incentive Plan. The Omnibus Incentive Plan replaces the Corporation’s existing Option Plan and Incentive Share Plan (collectively, the “Predecessor Plans”). No further grants will be made under the Predecessor Plans. Alvopetro employees, consultants and directors are eligible to participate in and receive grants under the Omnibus Incentive Plan.

The Omnibus Incentive Plan is a “rolling” share-based compensation plan pursuant to which participants may be awarded options, Restricted Share Units (“RSUs”), Deferred Share Units (“DSUs”) and Performance Share Units (“PSUs”). Under the Omnibus Incentive Plan, an aggregate of 10% of the common shares of the Company outstanding may be reserved for issuance under the Omnibus Incentive Plan and any other security-based compensation plans of Alvopetro, including the Predecessor Plans.  There is a sublimit of 5% of the common shares outstanding being reserved for the issuance of RSUs, DSUs and PSUs under the Omnibus Incentive Plan.  

Based on the current shares outstanding, a maximum of 3,410,251 of common shares may be reserved for issuance under the Omnibus Plan with a maximum sublimit of 1,705,125 common shares reserved for issuance of RSUs, DSUs and PSUs. As of the date hereof, no awards have been granted under the Omnibus Incentive Plan.  Under the Predecessor Plans, 1,199,997 common shares are reserved for issuance pursuant to options already granted and outstanding pursuant to the Corporation’s Option Plan and 563,165 Shares are reserved for issuance pursuant to RSUs and DSUs already granted and outstanding pursuant to the Corporation’s Incentive Share Plan, resulting in a total of 1,763,162 common shares reserved for issuance under the Predecessor Plans, representing an aggregate 5.2% of the common shares outstanding. 

A full copy of the Omnibus Incentive Plan is included as Schedule B to our 2022 Management Information Circular which can be found on our website at 
https://alvopetro.com/Shareholder-Documents and on SEDAR at www.sedar.com.

Social Media

Follow Alvopetro on our social media channels at the following links:

Twitter – https://twitter.com/AlvopetroEnergy

Instagram – https://www.instagram.com/alvopetro/

LinkedIn – https://www.linkedin.com/company/alvopetro-energy-ltd

YouTube: https://www.youtube.com/channel/UCgDn_igrQgdlj-maR6fWB0w

Alvopetro Energy Ltd.’s vision is to become a
leading independent upstream and midstream operator in Brazil. Our
strategy is to unlock the on-shore natural gas potential in the state of Bahia
in Brazil,
building off the development of our Caburé natural gas field and our strategic
midstream infrastructure.

Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this news release.

www.alvopetro.comTSX-V: ALV, OTCQX: ALVOF

SOURCE Alvopetro Energy Ltd.

Friday, June 24, 2022

Indonesia Energy Corp (INDO)
Rating raised in response to stock price weakness

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

We are raising our rating back to Outperform in response to share price weakness. The shares of INDO, which had risen as high as $87, have fallen back to a price near $7. We maintain that a fair value for the shares is around $15 which we have reinstated as our price target.

The decline is an overreaction to recent oil price declines and economic concerns. The share rose from $7 to $86 over a two week period in late February/early March as speculators began trading the stock, leading us to downgrade the stock to Market Underperform. The shares then fell to the mid teens over the next three months as speculators exited the stock, allowing us to adopt a neutral stance on the stock. We believe the decline from mid teens to the current price reflects the recent decline in oil prices and concerns regarding global economic weakness, but is an overreaction to the actual impact on INDO….

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

FINNAIR AND GEVO ENTER INTO
SUSTAINABLE AVIATION FUEL SALES AGREEMENT FOR 7 MILLION GALLONS OF PER YEAR
OVER FIVE YEARS

ENGLEWOOD, Colo., June 21, 2022 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) is pleased to announce a new fuel sales agreement with Finnair. The Agreement outlines the details for the purchase of 7 million gallons per year of sustainable aviation fuel (SAF) for five years from Gevo’s commercial operations. Deliveries of the SAF by Gevo are expected to begin in 2027. The expected value for the Agreement to be $192 million over the five-year period, inclusive of the value from environmental benefits for Gevo.

Finnair is a member of oneworld® Alliance, and this Agreement falls under the purview of a memorandum of understanding (MoU) that oneworld and Gevo signed in April 2022, laying the groundwork for the 14 world-class airlines in the alliance to purchase 200 million gallons of SAF per year, from Gevo’s commercial operations. The Agreement with Finnair will broaden Gevo’s range of airline partners and grow its global footprint with its sustainable fuel products, and also supports our efforts in pursuit of our stated goal of producing and commercializing a billion gallons of SAF by 2030.

“Gevo was founded on the principle of building sustainability into every step of our process,” said Dr. Patrick R. Gruber, Gevo’s Chief Executive Officer. “But it is not static—it’s always improving: We’re constantly incorporating new developments at every stage of our business system to reduce our carbon intensity. This is expected to make the renewable energy carried in our advanced renewable fuels even more impactful as they help to lower our customers’ carbon scores.”

Finnair uses an extensive toolkit to achieve emission reductions – using sustainable aviation fuels, reducing the weight of aircraft, developing fuel-efficient flight methods, offsetting, and engaging customers in reducing aviation emissions. Finnair is also actively exploring the possibilities of introducing new technologies into its operations.

“Finnair has ambitious emissions reduction targets: by the end of 2025, we intend to halve the level of net emissions from 2019 and achieve carbon neutrality latest by the end of 2045. SAF plays an important role for reaching these targets,” says Eveliina Huurre, SVP Sustainability at Finnair.

Gevo’s process is designed to create multiple efficiencies by allowing the same acre of farmland to produce SAF from corn using atmospheric carbon while simultaneously adding high-value nutritional products to the food chain.  

“Finnair knows the future will be built on renewable energy, and our SAF delivers renewable energy in a drop-in fuel that is expected to make an impact right away,” said Dr. Gruber. “Because its fungible, this SAF is expected to reduce the carbon intensity in any flight proportional to the blend used to fill up the aircraft.”

The Agreement with Finnair is subject to certain conditions precedent, including Gevo developing, financing, and constructing one or more production facilities to produce the SAF contemplated by the Agreement.

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 when burned have potential to yield net-zero greenhouse gas emissions when measured across the full life cycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, 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 life cycle). 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, patented technology enabling 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.

Gevo believes that the Argonne National Laboratory GREET model is the best available standard of scientific-based measurement for life cycle inventory or LCI.

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

About Finnair
Finnair is a network airline, specialising in connecting passenger and cargo
traffic between Asia, North America and Europe. Sustainability is at the heart
of everything we do – ?Finnair intends to reduce its net emissions by 50% by
the end of 2025?from the 2019 baseline?and achieve carbon neutrality latest by
the end of 2045. Finnair is a member of the oneworld alliance. Finnair Plc’s
shares are quoted on the Nasdaq Helsinki stock exchange.

Learn more about Finnair here: finnair.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, without limitation, including Gevo’s technology, the agreement with Finnair, Gevo’s ability to develop, finance and construct one or more production facilities to produce the SAF contemplated by the Agreement with Finnair, the timing of Gevo producing the SAF for Finnair, Gevo’s estimate of the expected value of the Agreement with Finnair, the oneworld Alliance, Gevo’s production of SAF, the attributes of Gevo’s products, Gevo’s ability to create net-zero carbon intensity products, 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, 2021, 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.

Media Contact
Heather L. Manuel
+1 303-883-1114
IR@gevo.com

Gevo’s Northwest Iowa RNG Project Hits Major Milestone; Begins Injecting Dairy RNG into Natural Gas Pipeline

Research, News, and Market Data on Gevo

ENGLEWOOD, Colo., June 14, 2022 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) announced that its renewable natural gas (“RNG”) project in Northwest Iowa (the “RNG Project”) has been producing biogas and is now upgrading and injecting RNG into the natural gas pipeline. The RNG Project generates renewable natural gas captured from dairy cow manure. The manure for the RNG Project is supplied by three dairy farms located in Northwest Iowa totaling over 20,000 milking cows. When at full operational capacity, the RNG Project is expected to generate approximately 355,000 MMBtu of RNG per year, which will be transported and sold in California. BP Canada Energy Marketing Corp. and BP Products North America Inc. (collectively, “bp”) will market the RNG in California on behalf of Gevo, and Gevo expects that the RNG Project will generate between $16 and $22 million of Project EBITDA¹ per year beginning by 2023 depending on a variety of assumptions, including the value of credits under the federal Renewable Fuel Standard Program (“RFS”) and the Low Carbon Fuel Standard (“LCFS”) in California. Gevo expects to be able to get approval for Renewable Identification Numbers (“RINs”) through RFS and carbon credits from LCFS later this year or next year.

“The success that Gevo is achieving in Northwest Iowa right now is the result of the team of dedicated people who are working to change the world by converting waste into useful energy, animal bedding, and soil fertilizer,” says Dr. Chris Ryan, President and Chief Operating Officer of Gevo, Inc. “These talented people have been tasked with an important, complex job, and work every day to identify issues, formulate solutions, and execute their plan to achieve our goals. As this renewable energy supply becomes reliable, the entire circular economy model can grow and prosper. Supplying value added animal feed to dairies and to other animal feed operations, capturing the manure, then converting the manure to make RNG for use in the production of transportation fuels, more animal feed, and later, jet fuel when our Net-Zero 1 plant operates. This is an example of the circular economy in action.”

“In addition to being good for us, California and the world, our dairy partners are also expected to reap benefits from the RNG Project over the long term,” Ryan said. “The manure digesters are expected to improve the farms’ sustainability and lay the groundwork for more efficient recycling of nutrients and better soil health. It’s important that they share in the value,” Dr. Ryan said.

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 when burned have potential to yield net-zero greenhouse gas emissions when measured across the full life cycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, 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 life cycle). 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, patented technology enabling 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.

Gevo believes that the Argonne National Laboratory GREET model is the best available standard of scientific-based measurement for life cycle inventory or LCI.

Learn more at Gevo’s website: www.gevo.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, the development and construction of the RNG Project, the ability of Gevo to realize production of RNG by the RNG Project, Gevo’s ability to generate cash, revenue and Project EBITDA from the RNG Project, use of RNG at Gevo’s Net-Zero 1 project, benefits to Gevo’s dairy partners, 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, 2021, 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
Heather L. Manuel
303-883-1114

IR@gevo.com

¹ Project EBITDA is a non-GAAP financial measure that we define as total operating revenues less total operating expenses for the project.

 

 

Image Credit: The Noun Project (Flickr)

Investors are Not Alone Interpreting Surprise Stock Moves and Future Direction

During periods of rising stock market prices, investors often overreact to positive news on a company while ignoring negative. Similarly, when markets are faced with an ongoing negative mood, investors are quicker to hit the sell button. When Investors all try to rush through the gate at the same time, either buying or selling, creates a sharp move that typically shows it was overdone and reverses at least somewhat. There is no guarantee of a reversal or so-called bounce, but anyone involved in the market has seen it often enough to know it happens; knowing where the high or low will be before any turnaround is what makes investing or trading tricky.

On Monday (June 6), investors observed that Gevo (GEVO), which is popular among renewable liquid hydrocarbon fuel investors and ESG rated stocks, reacted negatively to an announced capital raise. The raise involved issuing shares rather than non-equity or other non-dilutive alternatives.

The specifics of the agreement with various institutions is to sell 33,333,336 shares of common stock at a $4.50 per share, the approximate previous closing price. The shares would also have warrants exercisable at $4.37 per share. The offering is expected to provide $150 million in proceeds to the company. The bulk of the raise can be considered for investment as projects, including the Net Zero-1 Plant that will break ground this year are expected to cost $900 million.

On the day of the announcement, the company stock dropped over 30%, and despite newer news items related to Gevo, including Japanese Airlines entering into a contract to purchase fuel, or the collaboration with Google Cloud to enhance Gevo’s bio-fuel analysis by helping to measure and verify the efficacy of its biofuels via full lifecycle sustainability data tracking, investors are not yet showing that they are impressed.

Source: Koyfin

There are more companies that are not mentioned by the primary news outlets than those that are. When one of these companies makes an announcement and the discussion is sparse, it may be time to evaluate your own thoughts, maybe crunch your own numbers, and peruse research reports from those that know the company extremely well and are experts in the industry. This is how value can, at times, be uncovered. While everyone else is reading the same rehashed headline, digging into an expertly written research note by an analyst that covers the company can help shed light on what others may be missing. Or to validate or invalidate one’s own understanding of pros and cons.

Gevo is a company with equity research coverage by analysts at Noble Capital Markets, this research is published and downloaded by institutions via expensive subscription services such as Bloomberg terminals and Factset, these services aren’t practical for the average individual investor. But the same research is also available at no cost to subscribers of Channelchek.

A research report on Gevo was published and emailed this morning to Channelchek subscribers. 

Time will tell if the sell-off was and is an overreaction. But the stock is currently trading at $3.03, down another half percentage point from yesterday’s close after falling over 30%. In the research note titled: Stock
Hit Hard on Equity Offering, Michael Heim, CFA, Senior Research Analyst wrote, “The shares of Gevo will most likely be volatile over the next few years until plants have been constructed and are generating cash.” He continued, “Investors should maintain a long-term perspective and focus on construction progress and not short-term stock price volatility. As such, we see recent weakness as a buying opportunity and maintain our Outperform rating and $16 price target.”

Get the
Report

The research note contained other information and thoughts not found in traditional media and not permitted in an SEC-registered company press release. Further, previous research reports on the company are also available for deeper insight.

Take Away

Once again, time will tell where Gevo, or any other stock that has made a sharp move, is trading in a month, a year, or even five years, but having another set of expert eyes and knowledgeable insight helps an investor sort through any big reaction to news that is sparsely reported on by financial outlets that tend to focus on the same dozen companies. They simply don’t dig into smaller stocks that are moving.

Paul Hoffman

Managing Editor, Channelchek

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https://www.channelchek.com/company/GEVO/research-report/3699

www.koyfin.com

https://investors.gevo.com/news-releases/news-release-details/collaboration-googlecloud-gevo-measure-and-verify-carbon

https://investorplace.com/2022/06/gevo-stock-plunges-on-150m-securities-offering-news/

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