Friday, June 18, 2021

Energy Services of America (ESOA)
PPP Loan Forgiveness Announced

Energy Services of America Corporation is engaged in providing contracting services for energy-related companies. The company is primarily engaged in the construction, replacement, and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. It services the gas, petroleum, power, chemical and automotive industries, and does incidental work such as water and sewer projects. Energy Service’s other services include liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services and other services related to pipeline construction.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

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

PPP Loan of $9.8 million officially forgiven. In an 8-K filing after the market closed yesterday, the company disclosed that the Small Business Administration (SBA) had paid $9.8 million to its lender on June 16th. The SBA payment satisfies the requirements of the Payroll Protection Program (PPP) loan taken out in FY2020 and the PPP loan of $9.8 million has been fully forgiven. Importantly, the PPP loan helped maintain employment and dampen any potential financial impact during a very uncertain time.


No impact on FY2021 EBITDA estimate.  The forgiven PPP loan is expected to be recognized as other income and there should be no tax implications. While final accounting treatment has yet to be determined and the cash impact was a FY2020 event, we believe that net income and shareholder equity should be positively impacted by $9.8 million. We are updating our financial forecasts, but will adjust them …

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. 

Friday, June 18, 2021

Capstone Green Energy Corporation (CGRN)
Stock offering reflects new aggressive stance

Capstone Green Energy Corp is the producer of low-emission microturbine systems.The company develops, manufactures, markets and services microturbine technology solutions for use in stationary distributed power generation applications. Capstone Turbine’s products include onboard generation for hybrid electric vehicles; conversion of oil field and biomass waste gases into electricity; combined heat, power, and chilling solutions; capacity addition; and standby power.

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

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

CGRN entered into a underwriting agreement to sell 952,380 shares of common stock at $5.25 per share. The offering less discounts and commissions should increase Capstone’s cash position by $5 million, $5.7 million if the overallotment is exercised. The proceeds will be used for working capital, general corporate purposes and growth initiatives.


A much-strengthened balance sheet becomes even stronger.  CGRN recently reported fourth quarter and fiscal 2021 financial results. Results were generally in line, but we did note that the company’s cash position had significantly improved to $50 million from $15 million. CGRN’s debt position, which increased with a debt restructuring that lowered interest rates, rose a more modest amount to $53 …

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. 

Gevo hires Kimberly Bowron as Chief Human Resources Officer

ENGLEWOOD, Colo., June 17, 2021 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO), is pleased to announce that Kimberly Bowron has joined Gevo as its Chief Human Resources Officer. Ms. Bowron has served over 20 years in senior management roles in the chemicals, utilities infrastructure, and IT industries. Most recently, Ms. Bowron was the Director of Human Resources at TPC Group and previously the VP of Human Resources at Heath Consultants, where she led all aspects of human resources and training.

“I’m delighted to have Kimberly join the Gevo team. Her diverse background certainly fits into what Gevo needs to continue to build an engaged, inclusive, and high-performing team for our Net-Zero Projects and beyond. Talent and skill acquisition are certainly one of the keys to success. We are going to grow. Kimberly will help us be successful in that growth,” said Dr. Patrick R. Gruber, Gevo’s Chief Executive Officer.

“I am honored to become part of the team behind the groundbreaking work to transform renewable energy into hydrocarbons,” said Ms. Bowron. “I’m excited to help build the talent, leadership, and culture needed for our next phase of growth,” continued Ms. Bowron.

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, without limitation, including the hiring of Kimberly Bowron, Gevo’s technology, Gevo’s products, Gevo’s ability to produce products with “net-zero” greenhouse gas emissions, 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, 2020, 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

+1 720-647-9605

IR@gevo.com

Gevo hires Kimberly Bowron as Chief Human Resources Officer

ENGLEWOOD, Colo., June 17, 2021 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO), is pleased to announce that Kimberly Bowron has joined Gevo as its Chief Human Resources Officer. Ms. Bowron has served over 20 years in senior management roles in the chemicals, utilities infrastructure, and IT industries. Most recently, Ms. Bowron was the Director of Human Resources at TPC Group and previously the VP of Human Resources at Heath Consultants, where she led all aspects of human resources and training.

“I’m delighted to have Kimberly join the Gevo team. Her diverse background certainly fits into what Gevo needs to continue to build an engaged, inclusive, and high-performing team for our Net-Zero Projects and beyond. Talent and skill acquisition are certainly one of the keys to success. We are going to grow. Kimberly will help us be successful in that growth,” said Dr. Patrick R. Gruber, Gevo’s Chief Executive Officer.

“I am honored to become part of the team behind the groundbreaking work to transform renewable energy into hydrocarbons,” said Ms. Bowron. “I’m excited to help build the talent, leadership, and culture needed for our next phase of growth,” continued Ms. Bowron.

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, without limitation, including the hiring of Kimberly Bowron, Gevo’s technology, Gevo’s products, Gevo’s ability to produce products with “net-zero” greenhouse gas emissions, 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, 2020, 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

+1 720-647-9605

IR@gevo.com

Image Credit: Charles & Hudson (Flickr)

The U.S. has Solidified its Support for Battery Technology Through 2030

The global lithium-based battery market is expected to grow by a factor of 5 to 10 over the next decade. The electric vehicle market often steals the headlines related to the needs of electric power storage systems, but lithium-based batteries are becoming increasingly important for commercial markets, stationary grid-storage systems, national defense, and aviation. Because of the increasing demand for power storage, particularly as it relates to global competition, the U.S. Department of Energy commissioned the Federal Consortium for Advanced Batteries to develop the National Blueprint for Lithium Batteries. The “blueprint” was released this month by the Secretary of Energy. It’s a 24-page document that contains five critical goals to guide collaboration between federal agencies through 2030. Understanding what’s guiding government resources and decisions can benefit investors that seek to benefit from the growth.

The 24-page report contains five main goals to achieve the overall vision. Below are the goals further defined by other information pulled from the report. (At the bottom of this article is a link for the full version of The
National Blueprint for Lithium Batteries 2021-2030).

• Secure access to raw and refined materials and discover alternatives for critical minerals for
  commercial and defense applications. This goal is set to reduce or eliminate U.S. lithium battery manufacturing dependence on scarce materials such as cobalt and nickel. Securing reliable domestic and foreign sources for critical minerals is a first step toward ultimately replacing the materials in the manufacture of lithium batteries.
• Support the growth of a U.S. materials-processing base able to meet domestic battery
  manufacturing demand. At present the US relies on international markets for the processing of most lithium-battery raw materials. The report recommends government involvement in creating greater processing ability within our borders.
• Stimulate the U.S. electrode, cell, and pack manufacturing sectors. It’s expected that domestic growth and onshoring of cell and pack manufacturing will need ongoing incentives and support for further consumer adoption of EVs. This goal urges developing a federal policy framework that supports manufacturing electrodes, cells, and packs within our borders and encourages incentives to propel demand for lithium-ion batteries.
• Enable U.S. end-of-life reuse and critical materials recycling at scale and a full
  competitive value chain in the United States. Recycling lithium-ion cells will help achieve maximize benefit of scarce materials while reducing harmful environmental impacts of mining or disposal. Currently, recyclers face a net end-of-life cost when recycling EV batteries. New more cost efficient methods of testing, transporting, recycling, will be required.
• Maintain and advance U.S. battery technology leadership by strongly supporting scientific
  R&D, STEM education, and workforce development. Integral to achieving US leadership is a strong pipeline of R&D, ranging from new electrode and electrolyte materials for next generation lithium-ion batteries, to advances in solid-state batteries, and novel material, electrode, and cell manufacturing methods. The R&D is to be supported by strong intellectual property (IP) protection and rapid movement of innovations from lab to market through public-private R&D partnerships.  

Take-Away

The US Department of Energy and the Federal Consortium for the Advancement of Batteries encourage cooperation and coordination across the US Government agencies’ advanced battery efforts to achieve a strong and clean manufacturing and development base. Investors looking to benefit from the newly laid out goals may find putting investment capital in companies focused on recycling, production, or materials procurement may be beneficial as the focus continues to gain momentum and support from Washington. 

Suggested Reading:

Can Mining be Green and Sustainable?	Inflation’s Impact on Stocks – Four Scenarios

Why Uranium Prices Have Been Rising	Who Benefits from the American Jobs Plan?

National
BluePrint for Lithium Batteries 2021-2030

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Friday, June 11, 2021

Capstone Green Energy (CGRN)
Results In Line – Shift In Company Focus Is Exciting

Capstone Green Energy Corp is the producer of low-emission microturbine systems.The company develops, manufactures, markets and services microturbine technology solutions for use in stationary distributed power generation applications. Capstone Turbine’s products include onboard generation for hybrid electric vehicles; conversion of oil field and biomass waste gases into electricity; combined heat, power, and chilling solutions; capacity addition; and standby power.

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

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

Results were generally in line with expectations. Capstone reported revenues of $17.9 million for the quarter (up 16% sequentially and 54% yoy) versus our $18.0 million estimate. Adjusted EBITDA was $(1.9) million versus our estimate of $(1.1) million. The company’s cash position rose to $49.5 million from $15.1 million at the end of last year. Bookings rose to $12.7 million topping off a steady quarter-by-quarter climb over the last four quarters.


Capstone is repositioning to be a broader company.  The change started with a change in the company’s name on Earth Day to Capstone Green Energy Corporation from Capstone Turbine. Management took a further step today by announcing an expansion in the number of its operating divisions. New operating divisions are Energy As A Service, Energy Conversion, Energy Storage Solutions, and Hydrogen & …

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. 

Capstone Green Energy (Nasdaq:CGRN) Reports Fourth Quarter & Full-Year Fiscal 2021 Financial Results – Outlines Goals For New Fiscal Year

Annual Cash Provided by Operating Activities of $1.7M – Highest in Company History

Cash and Cash Equivalents Expands to $49.5M

VAN NUYS, CA / ACCESSWIRE / June 10, 2021 / Capstone Green Energy Corporation (NASDAQ:CGRN), formerly Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST) (“Capstone,” the “Company,” “we” or “us”), a global leader in carbon reduction and on-site resilient green energy solutions, today announced its fourth-quarter and full-year fiscal 2021 financial results and outlined new goals for the upcoming year. 

“I’m pleased to announce that we substantially achieved our goal of improving Adjusted EBITDA by $10 million year-over-year, and this was accomplished despite the global COVID-19 pandemic extending beyond what we originally forecasted in our fiscal 2021 planning sessions,” said Darren Jamison, President and Chief Executive Officer of Capstone Green Energy. “The global pandemic combined with our goal to build a stronger balance sheet, including as a selling point to our customers, put driving stronger liquidity at the top of our list of strategic goals. I’m proud to report that not only did we end the fiscal year with the best cash from operations performance in the company’s history, but we also achieved the highest ending cash balance since fiscal 2012,” concluded Mr. Jamison.

Financial Highlights of Fourth Quarter Fiscal 2021 vs. Fiscal 2020:

• Total revenue of $17.9 million for the quarter, up from $11.6 million year-over-year
• Negative gross margin of $2.6 million, or negative 14% as a percentage of revenue, compared to $0.5 million, or 4% of revenue, in the same period last year
• Non-GAAP gross margin of $2.7 million, or 15% of revenue, compared to 6% in the same period last year
• Net loss of $4.8 million for the quarter, improved from a net loss of $6.9 million in the fourth quarter of fiscal 2020
• Negative Adjusted EBITDA, excluding executive bonus, of $1.9 million, compared to negative Adjusted EBITDA of $5.0 million in the fourth quarter of fiscal 2020
• Generated positive cash from operations of $5.1 million, including a one-time $5.0 million legal settlement, compared to negative $4.0 million in the fourth quarter of fiscal 2020
• Cash and cash equivalents increased to $49.5 million, compared to $15.1 million as of March 31, 2020

Financial Highlights of Fiscal 2021 vs. Fiscal 2020:

• Total revenue of $67.6 million, compared to $68.9 million year-over-year, despite the global pandemic
• Gross margin of $6.9 million, or 10% of revenue, compared to $9.0 million, or 13% of revenue, in fiscal 2020
• Non-GAAP gross margin of $12.8 million, or 19% of revenue, compared to $10.2 million, or 15% or revenue, in the same period last year
• Net loss of $18.4 million for the fiscal year compared to $21.9 million last year
• Negative Adjusted EBITDA, excluding executive bonus, of $4.0 million, compared to Negative Adjusted EBITDA of $13.2 million in fiscal 2020
• Cash provided by operating activities of $1.7 million compared to cash used in operating activities of $19.7 million in fiscal 2020

Fiscal 2021 – The Year in Review

Despite COVID-19’s challenging business environment, the Company took swift, proactive steps to deliver the forecasted positive Adjusted EBITDA in the first quarter that ended on June 30, 2020. Those results represented a $5.1 million improvement compared to the prior quarter, March 31, 2020, and a $3.5 million improvement compared to the prior year quarter ended June 30, 2019. This was the culmination of our strategic plans to invest capital dollars to expend our long-term microturbine rental fleet and substantially lower operating costs in the following ways:

• Reduce direct material costs by $3.0 million annually
• Cut R&D spending by approximately 25%
• Closely manage operating expenses
• Increase aftermarket spare parts margins in part from our newly upgraded United Kingdom Integrated Remanufacturing Facility

In the second quarter of the Company’s fiscal year, we announced $1.9 million positive cash provided by operating activities and continued in our improvements in total revenue and gross new product bookings.

In the third quarter, we reported revenue of $20.7 million, which was a 39% percent increase from the prior quarter. We also proactively upsized our Goldman Sachs three-year term note from $30.0 million to $50.0 million, bringing $20.0 million of new cash into the business, with a reduction in the interest rate. Part of these new funds are to be used to grow our rental fleet from 10.6 to 21.1 megawatts (MW).

In the fourth quarter we saw continued growth in our gross product bookings, which drives future top-line revenue growth.

In addition, our total cash and cash equivalents increased $34.4 million to $49.5 million, compared to $15.1 million as of March 31, 2020, the start of the pandemic. This increase was primarily due to the upsize of our Goldman Sachs term note, equity sales of $15.9 million, net, from our at-the-market offering, and a beneficial $5.0 million settlement from the lawsuit we initiated with a former supplier for a faulty generator part, which were offset by operating costs and the building of rental assets.

New Fiscal 2022 Strategic Goals
Capstone Green Energy remains sharply focused on sustaining and achieving our strategic business goals to build competitive advantages and expand the total addressable markets (TAM) in the regions we service. These efforts are designed to position us as a green energy leader in fiscal 2022 and beyond. Our goals include:

• Broadening our already diverse energy products and service offerings
• Expanding our direct solutions sales team focused on growing top line
• Expanding our high-margin, long-term rental fleet to 21 MW and beyond
• Increasing aftermarket margins across the board
• Continuing to focus on managing working capital
• Continuing to grow the Distributor Support System (DSS) subscription program

New Hydrogen Products
During the year, Capstone continued to expand and develop our new hydrogen products. The Company released our first commercially available hydrogen-based Combined Heat and Power (CHP) product, which can safely run on a 10% hydrogen-90% natural gas mix, and we are targeting a commercial release of 30% hydrogen-70% natural gas mix product by March 31, 2022.

In addition, in May, we announced a demonstration project with Blue Economy CRC, a cooperative research center in partnership with national and international universities and industry that was established to bring together sustainable seafood production and renewable energy in order to further develop Australia’s aquaculture industry. This microturbine system is intended to run on 100% hydrogen.

ESG and a Sustainable Future
As part of our overall strategy, we are focusing on the significance of environmental, social, and governance (ESG) principles in everything we do. As a leading green energy solutions provider, we take pride in offering a diverse product offering that emphasizes protecting the environment by leaving it better than before. Capstone estimates that, over the last three years, it has helped save companies approximately $700 million on energy costs and over approximately one million tons of carbon. We are committed to offering our innovative and green, sustainable, and affordable energy solutions and to providing long-term, resilient, clean power to end users the world over.

Financial Results for the Fiscal 2021 Fourth Quarter and Full-Year
Total revenue for the fourth quarter of fiscal 2021 increased 54%, or $6.3 million, to $17.9 million, compared with $11.6 million in the fourth quarter of fiscal 2020. Despite the significant impacts of the global pandemic, total revenue for fiscal 2021 decreased only 2%, or $1.3 million, to $67.6 million, compared with total revenue of $68.9 million in fiscal 2020.

Gross margin was negative $2.6 million, or negative 14% as a percentage of revenue, compared to $0.5 million, or 4% as a percentage of revenue, in the fourth quarter of fiscal 2020. On a full-year basis, gross margin decreased to $6.9 million in fiscal 2021, compared to $9.0 million for fiscal 2020. The negative gross margin in the fourth quarter of fiscal 2021, was primarily due to a $4.9 million reliability repair accrual established to replace remaining fielded units affected by a supplier defect.

Non-GAAP gross margin, which is gross margin less depreciation and amortization, stock-based compensation expense, and the expense related to the reliability repair accrual, was $2.7 million, or 15% of revenue, compared to $0.7 million, or 6% of revenue, in the fourth quarter of fiscal 2020. The increase as a percentage of revenue was primarily due to improved Factory Protection Plan (FPP) margins year-over-year. On a full-year basis, non-GAAP gross margin increased to $12.8 million, or 19% of revenue, in fiscal 2021, compared to $10.2 million, or 15% of revenue, for fiscal 2020. The increase as a percentage of revenue was primarily due to lower overhead costs from the COVID-19 Business Continuity Plan on similar revenue levels.

Operating expenses in the quarter decreased $0.1 million, to $5.9 million, compared with $6.0 million in the fourth quarter of fiscal 2020 despite a $0.6 million executive bonus expense recognized in the fourth quarter of fiscal 2021 (with none in the prior year quarter). Operating expenses for fiscal 2021 were $20.8 million compared with $25.9 million for fiscal 2020. The decrease was primarily due to cost savings from the COVID-19 Business Continuity Plan.

Net loss was $4.8 million in the fourth quarter of fiscal 2021, compared to $6.9 million in the fourth quarter of fiscal 2020. Net loss was $18.4 million in fiscal 2021, compared to $21.9 million in fiscal 2020.

Adjusted EBITDA, excluding executive bonus, was negative $1.9 million in the fourth quarter of fiscal 2021, compared to Adjusted EBITDA of negative $5.0 million in the fourth quarter of fiscal 2020. Adjusted EBITDA, excluding executive bonus, for fiscal 2021 was negative $4.0 million compared to Adjusted EBITDA of negative $13.2 million in fiscal 2020.

Cash and cash equivalents were $49.5 million as of March 31, 2021, compared to $15.1 million as of March 31, 2020.

About Capstone Green Energy
Capstone Green Energy (NASDAQ:CGRN) is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Conversion Products are driven by the Company’s industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Products business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen Energy Solutions, Capstone Green Energy offers customers a variety of hydrogen products, including the Company’s microturbine energy systems.

For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: rentals@CGRNenergy.com. To date, Capstone has shipped over 10,000 units to 83 countries and estimates that, in FY21, it saved customers over $217 million in annual energy costs and approximately 397,000 tons of carbon. Total savings over the last three years are estimated to be $698 million in energy savings and 1,115,100 tons of carbon savings.

For more information about the Company, please visit www.CapstoneGreenEnergy.com. Follow Capstone Green Energy on Twitter, LinkedIn, Instagram, Facebook, and YouTube.

Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements under the caption “New Fiscal 2022 Strategic Goals” and other statements, statements regarding expectations for green initiatives and execution on the Company’s growth strategy and other statements regarding the Company’s expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words such as “expect,” “anticipate,” “believe,” “could,” “should,” “estimate,” “intend,” “may,” “will,” “plan,” “goal” and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: the ongoing effects of the COVID-19 pandemic; the availability of credit and compliance with the agreements governing the Company’s indebtedness; the Company’s ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; the Company’s ability to adequately protect its intellectual property rights; and the impact of pending or threatened litigation. For a detailed discussion of factors that could affect the Company’s future operating results, please see the Company’s filings with the Securities and Exchange Commission, including the disclosures under “Risk Factors” in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events, or for any other reason.

Financial Tables to Follow:

CAPSTONE GREEN ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)

CAPSTONE GREEN ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)

CAPSTONE GREEN ENERGY CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In thousands)

To supplement the Company’s unaudited financial data presented on a generally accepted accounting principles (GAAP) basis, management has presented Adjusted EBITDA and Adjusted EBITDA excluding Executive Bonus, and Non-GAAP Gross Margin, which are non-GAAP measures. These non-GAAP measures are among the indicators management uses as a basis for evaluating the Company’s financial performance, as well as for forecasting future periods. Management establishes incentive compensation performance targets and annual budgets and makes operating decisions based in part upon these metrics. Accordingly, disclosure of these non-GAAP measures provides investors with some of the same information that management uses to understand the Company’s economic performance year-over-year.

EBITDA is defined as net income (loss) before interest, provision for income taxes, and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA before loss on debt extinguishment, stock-based compensation and other expense, restructuring charges, non-recurring legal settlement, reliability repair accrual, and non-recurring legal costs related to settlement. Loss on debt extinguishment includes expenses associated with the accounting for the October 2020 Goldman Sachs note transaction. Stock-based compensation and other expense includes expense related to stock issued to employees, directors, and vendors. Restructuring charges include facility consolidation costs and costs related to the Company’s cost reduction initiatives. Non-recurring legal settlement is a one-time payment from a lawsuit we initiated with a former supplier for a part defect. The reliability repair accrual accounts for the replacement of remaining high risk failure parts in some of our fielded units due to the former supplier part defect. Non-recurring legal costs related to settlement are legal costs associated with above settlement. Adjusted EBITDA excluding Executive Bonus is defined as EBITDA before expense related to Executive Bonus accruals.

Non-GAAP Gross Margin is defined as Gross Margin before depreciation and amortization expense, stock-based compensation expense, and a reliability repair accrual. Stock-based compensation expense includes expense related to stock issued to employees. The reliability repair accrual accounts for the replacement of remaining high risk failure parts in some of our fielded units due to the former supplier part defect.

EBITDA, Adjusted EBITDA, Adjusted EBITDA excluding Executive Bonus, and Non-GAAP Gross Margin are not measures of the Company’s liquidity or financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure presented in accordance with GAAP, or as an alternative to cash flows from operating activities or any other measure of liquidity presented in accordance with GAAP.

While management believes that the non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these measures. The measures are not prepared in accordance with GAAP and may not be directly comparable to similarly titled measures of other companies.

CONTACT:
Capstone Green Energy
Investor and investment media inquiries:
818-407-3628
ir@CGRNenergy.com

SOURCE: Capstone Green Energy Corporation

Capstone Green Energy (Nasdaq:CGRN) Reports Fourth Quarter & Full-Year Fiscal 2021 Financial Results – Outlines Goals For New Fiscal Year

Annual Cash Provided by Operating Activities of $1.7M – Highest in Company History

Cash and Cash Equivalents Expands to $49.5M

VAN NUYS, CA / ACCESSWIRE / June 10, 2021 / Capstone Green Energy Corporation (NASDAQ:CGRN), formerly Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST) (“Capstone,” the “Company,” “we” or “us”), a global leader in carbon reduction and on-site resilient green energy solutions, today announced its fourth-quarter and full-year fiscal 2021 financial results and outlined new goals for the upcoming year. 

“I’m pleased to announce that we substantially achieved our goal of improving Adjusted EBITDA by $10 million year-over-year, and this was accomplished despite the global COVID-19 pandemic extending beyond what we originally forecasted in our fiscal 2021 planning sessions,” said Darren Jamison, President and Chief Executive Officer of Capstone Green Energy. “The global pandemic combined with our goal to build a stronger balance sheet, including as a selling point to our customers, put driving stronger liquidity at the top of our list of strategic goals. I’m proud to report that not only did we end the fiscal year with the best cash from operations performance in the company’s history, but we also achieved the highest ending cash balance since fiscal 2012,” concluded Mr. Jamison.

Financial Highlights of Fourth Quarter Fiscal 2021 vs. Fiscal 2020:

• Total revenue of $17.9 million for the quarter, up from $11.6 million year-over-year
• Negative gross margin of $2.6 million, or negative 14% as a percentage of revenue, compared to $0.5 million, or 4% of revenue, in the same period last year
• Non-GAAP gross margin of $2.7 million, or 15% of revenue, compared to 6% in the same period last year
• Net loss of $4.8 million for the quarter, improved from a net loss of $6.9 million in the fourth quarter of fiscal 2020
• Negative Adjusted EBITDA, excluding executive bonus, of $1.9 million, compared to negative Adjusted EBITDA of $5.0 million in the fourth quarter of fiscal 2020
• Generated positive cash from operations of $5.1 million, including a one-time $5.0 million legal settlement, compared to negative $4.0 million in the fourth quarter of fiscal 2020
• Cash and cash equivalents increased to $49.5 million, compared to $15.1 million as of March 31, 2020

Financial Highlights of Fiscal 2021 vs. Fiscal 2020:

• Total revenue of $67.6 million, compared to $68.9 million year-over-year, despite the global pandemic
• Gross margin of $6.9 million, or 10% of revenue, compared to $9.0 million, or 13% of revenue, in fiscal 2020
• Non-GAAP gross margin of $12.8 million, or 19% of revenue, compared to $10.2 million, or 15% or revenue, in the same period last year
• Net loss of $18.4 million for the fiscal year compared to $21.9 million last year
• Negative Adjusted EBITDA, excluding executive bonus, of $4.0 million, compared to Negative Adjusted EBITDA of $13.2 million in fiscal 2020
• Cash provided by operating activities of $1.7 million compared to cash used in operating activities of $19.7 million in fiscal 2020

Fiscal 2021 – The Year in Review

Despite COVID-19’s challenging business environment, the Company took swift, proactive steps to deliver the forecasted positive Adjusted EBITDA in the first quarter that ended on June 30, 2020. Those results represented a $5.1 million improvement compared to the prior quarter, March 31, 2020, and a $3.5 million improvement compared to the prior year quarter ended June 30, 2019. This was the culmination of our strategic plans to invest capital dollars to expend our long-term microturbine rental fleet and substantially lower operating costs in the following ways:

• Reduce direct material costs by $3.0 million annually
• Cut R&D spending by approximately 25%
• Closely manage operating expenses
• Increase aftermarket spare parts margins in part from our newly upgraded United Kingdom Integrated Remanufacturing Facility

In the second quarter of the Company’s fiscal year, we announced $1.9 million positive cash provided by operating activities and continued in our improvements in total revenue and gross new product bookings.

In the third quarter, we reported revenue of $20.7 million, which was a 39% percent increase from the prior quarter. We also proactively upsized our Goldman Sachs three-year term note from $30.0 million to $50.0 million, bringing $20.0 million of new cash into the business, with a reduction in the interest rate. Part of these new funds are to be used to grow our rental fleet from 10.6 to 21.1 megawatts (MW).

In the fourth quarter we saw continued growth in our gross product bookings, which drives future top-line revenue growth.

In addition, our total cash and cash equivalents increased $34.4 million to $49.5 million, compared to $15.1 million as of March 31, 2020, the start of the pandemic. This increase was primarily due to the upsize of our Goldman Sachs term note, equity sales of $15.9 million, net, from our at-the-market offering, and a beneficial $5.0 million settlement from the lawsuit we initiated with a former supplier for a faulty generator part, which were offset by operating costs and the building of rental assets.

New Fiscal 2022 Strategic Goals
Capstone Green Energy remains sharply focused on sustaining and achieving our strategic business goals to build competitive advantages and expand the total addressable markets (TAM) in the regions we service. These efforts are designed to position us as a green energy leader in fiscal 2022 and beyond. Our goals include:

• Broadening our already diverse energy products and service offerings
• Expanding our direct solutions sales team focused on growing top line
• Expanding our high-margin, long-term rental fleet to 21 MW and beyond
• Increasing aftermarket margins across the board
• Continuing to focus on managing working capital
• Continuing to grow the Distributor Support System (DSS) subscription program

New Hydrogen Products
During the year, Capstone continued to expand and develop our new hydrogen products. The Company released our first commercially available hydrogen-based Combined Heat and Power (CHP) product, which can safely run on a 10% hydrogen-90% natural gas mix, and we are targeting a commercial release of 30% hydrogen-70% natural gas mix product by March 31, 2022.

In addition, in May, we announced a demonstration project with Blue Economy CRC, a cooperative research center in partnership with national and international universities and industry that was established to bring together sustainable seafood production and renewable energy in order to further develop Australia’s aquaculture industry. This microturbine system is intended to run on 100% hydrogen.

ESG and a Sustainable Future
As part of our overall strategy, we are focusing on the significance of environmental, social, and governance (ESG) principles in everything we do. As a leading green energy solutions provider, we take pride in offering a diverse product offering that emphasizes protecting the environment by leaving it better than before. Capstone estimates that, over the last three years, it has helped save companies approximately $700 million on energy costs and over approximately one million tons of carbon. We are committed to offering our innovative and green, sustainable, and affordable energy solutions and to providing long-term, resilient, clean power to end users the world over.

Financial Results for the Fiscal 2021 Fourth Quarter and Full-Year
Total revenue for the fourth quarter of fiscal 2021 increased 54%, or $6.3 million, to $17.9 million, compared with $11.6 million in the fourth quarter of fiscal 2020. Despite the significant impacts of the global pandemic, total revenue for fiscal 2021 decreased only 2%, or $1.3 million, to $67.6 million, compared with total revenue of $68.9 million in fiscal 2020.

Gross margin was negative $2.6 million, or negative 14% as a percentage of revenue, compared to $0.5 million, or 4% as a percentage of revenue, in the fourth quarter of fiscal 2020. On a full-year basis, gross margin decreased to $6.9 million in fiscal 2021, compared to $9.0 million for fiscal 2020. The negative gross margin in the fourth quarter of fiscal 2021, was primarily due to a $4.9 million reliability repair accrual established to replace remaining fielded units affected by a supplier defect.

Non-GAAP gross margin, which is gross margin less depreciation and amortization, stock-based compensation expense, and the expense related to the reliability repair accrual, was $2.7 million, or 15% of revenue, compared to $0.7 million, or 6% of revenue, in the fourth quarter of fiscal 2020. The increase as a percentage of revenue was primarily due to improved Factory Protection Plan (FPP) margins year-over-year. On a full-year basis, non-GAAP gross margin increased to $12.8 million, or 19% of revenue, in fiscal 2021, compared to $10.2 million, or 15% of revenue, for fiscal 2020. The increase as a percentage of revenue was primarily due to lower overhead costs from the COVID-19 Business Continuity Plan on similar revenue levels.

Operating expenses in the quarter decreased $0.1 million, to $5.9 million, compared with $6.0 million in the fourth quarter of fiscal 2020 despite a $0.6 million executive bonus expense recognized in the fourth quarter of fiscal 2021 (with none in the prior year quarter). Operating expenses for fiscal 2021 were $20.8 million compared with $25.9 million for fiscal 2020. The decrease was primarily due to cost savings from the COVID-19 Business Continuity Plan.

Net loss was $4.8 million in the fourth quarter of fiscal 2021, compared to $6.9 million in the fourth quarter of fiscal 2020. Net loss was $18.4 million in fiscal 2021, compared to $21.9 million in fiscal 2020.

Adjusted EBITDA, excluding executive bonus, was negative $1.9 million in the fourth quarter of fiscal 2021, compared to Adjusted EBITDA of negative $5.0 million in the fourth quarter of fiscal 2020. Adjusted EBITDA, excluding executive bonus, for fiscal 2021 was negative $4.0 million compared to Adjusted EBITDA of negative $13.2 million in fiscal 2020.

Cash and cash equivalents were $49.5 million as of March 31, 2021, compared to $15.1 million as of March 31, 2020.

About Capstone Green Energy
Capstone Green Energy (NASDAQ:CGRN) is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Conversion Products are driven by the Company’s industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Products business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen Energy Solutions, Capstone Green Energy offers customers a variety of hydrogen products, including the Company’s microturbine energy systems.

For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: rentals@CGRNenergy.com. To date, Capstone has shipped over 10,000 units to 83 countries and estimates that, in FY21, it saved customers over $217 million in annual energy costs and approximately 397,000 tons of carbon. Total savings over the last three years are estimated to be $698 million in energy savings and 1,115,100 tons of carbon savings.

For more information about the Company, please visit www.CapstoneGreenEnergy.com. Follow Capstone Green Energy on Twitter, LinkedIn, Instagram, Facebook, and YouTube.

Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements under the caption “New Fiscal 2022 Strategic Goals” and other statements, statements regarding expectations for green initiatives and execution on the Company’s growth strategy and other statements regarding the Company’s expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words such as “expect,” “anticipate,” “believe,” “could,” “should,” “estimate,” “intend,” “may,” “will,” “plan,” “goal” and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: the ongoing effects of the COVID-19 pandemic; the availability of credit and compliance with the agreements governing the Company’s indebtedness; the Company’s ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; the Company’s ability to adequately protect its intellectual property rights; and the impact of pending or threatened litigation. For a detailed discussion of factors that could affect the Company’s future operating results, please see the Company’s filings with the Securities and Exchange Commission, including the disclosures under “Risk Factors” in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events, or for any other reason.

Financial Tables to Follow:

CAPSTONE GREEN ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)

CAPSTONE GREEN ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)

CAPSTONE GREEN ENERGY CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In thousands)

To supplement the Company’s unaudited financial data presented on a generally accepted accounting principles (GAAP) basis, management has presented Adjusted EBITDA and Adjusted EBITDA excluding Executive Bonus, and Non-GAAP Gross Margin, which are non-GAAP measures. These non-GAAP measures are among the indicators management uses as a basis for evaluating the Company’s financial performance, as well as for forecasting future periods. Management establishes incentive compensation performance targets and annual budgets and makes operating decisions based in part upon these metrics. Accordingly, disclosure of these non-GAAP measures provides investors with some of the same information that management uses to understand the Company’s economic performance year-over-year.

EBITDA is defined as net income (loss) before interest, provision for income taxes, and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA before loss on debt extinguishment, stock-based compensation and other expense, restructuring charges, non-recurring legal settlement, reliability repair accrual, and non-recurring legal costs related to settlement. Loss on debt extinguishment includes expenses associated with the accounting for the October 2020 Goldman Sachs note transaction. Stock-based compensation and other expense includes expense related to stock issued to employees, directors, and vendors. Restructuring charges include facility consolidation costs and costs related to the Company’s cost reduction initiatives. Non-recurring legal settlement is a one-time payment from a lawsuit we initiated with a former supplier for a part defect. The reliability repair accrual accounts for the replacement of remaining high risk failure parts in some of our fielded units due to the former supplier part defect. Non-recurring legal costs related to settlement are legal costs associated with above settlement. Adjusted EBITDA excluding Executive Bonus is defined as EBITDA before expense related to Executive Bonus accruals.

Non-GAAP Gross Margin is defined as Gross Margin before depreciation and amortization expense, stock-based compensation expense, and a reliability repair accrual. Stock-based compensation expense includes expense related to stock issued to employees. The reliability repair accrual accounts for the replacement of remaining high risk failure parts in some of our fielded units due to the former supplier part defect.

EBITDA, Adjusted EBITDA, Adjusted EBITDA excluding Executive Bonus, and Non-GAAP Gross Margin are not measures of the Company’s liquidity or financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure presented in accordance with GAAP, or as an alternative to cash flows from operating activities or any other measure of liquidity presented in accordance with GAAP.

While management believes that the non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these measures. The measures are not prepared in accordance with GAAP and may not be directly comparable to similarly titled measures of other companies.

CONTACT:
Capstone Green Energy
Investor and investment media inquiries:
818-407-3628
ir@CGRNenergy.com

SOURCE: Capstone Green Energy Corporation

Image Credit: Imseong Kang (Flickr)

Official U.S. Oil Price and Inventory Forecasts for Second Half 2021 and Beyond

Global consumption of crude oil is likely to increase through 2022, according to a new forecast by the U.S. Energy Information Administration (EIA). Earlier in June, the EIA forecast increasing global production of petroleum and other liquid fuels would be driven by OPEC, Russia, and the U.S. These forecasts, higher consumption and production, point to a cooling of the recent pace of price increases for Bent and West Texas Intermediate Crude.  These two most recent reports by the EIA suggest more price stability in the second half of the year than we experienced in the first six months. The report then forecasts another mismatch of supply and demand.

Oil Price Expectations
Through 2022

Although the EIA sees global consumption likely increasing through 2022, they also forecast production increasing more rapidly. This would end the drawdowns in oil inventories we’ve been experiencing in 2021. As indicated in the forecast in the graph below, inventories are expected to remain relatively flat through the next two quarters and then increase in 2022.  

The EIA forecast estimates that swelling worldwide
petroleum inventory should limit rising oil prices in the coming months, then put
downward pressure on crude oil prices later this year and into 2022.

Risks Associated with the EIA Forecast

The EIA points out several risks to the accuracy of their forecast:

First- Higher sustained crude oil prices over the next several months could cause some OPEC+ members to increase their production more than provided for in the active OPEC+ agreement.

Second- The forecast assumes that Iran’s crude oil production will continue to increase in 2021. There continue to be sanctions that target Iran’s crude oil exports; however, crude oil exports from Iran have risen since the end of 2020. The risk here is crude oil production may increase faster than the EIA forecast.

Third- There is the possibility that U.S. operators will add fewer drilling rigs than expected. This would lower U.S. crude oil production in 2022, which would provide less downward pressure on oil prices.

Take-Away

Current higher crude oil prices and planned OPEC+ production increases allow for an EIA forecast that worldwide petroleum supply will increase over the next several months. They expect that this will provide an essentially balanced market through much of the second half of 2021. Then, inventories are projected to build through 2022, pushing prices down modestly.

Paul Hoffman

Managing Editor, Channelchek

Suggested Reading:

Is Oil Demand Stronger than Estimated?	InPlay Oil Virtual Roadshow (Video)

Indonesia Energy Virtual Roadshow (Video)	Energy Industry – Exploration and Production, Review and Outlook

Sources:

https://www.eia.gov/petroleum/weekly/

https://www.eia.gov/outlooks/steo/archives/jun21.pdf

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Gevo Set to Join Russell 3000® Index

ENGLEWOOD, Colorado – June 8, 2021 – Gevo, Inc. (NASDAQ: GEVO), announced today that it expects to join the broad-market Russell 3000®

 Index at the conclusion of the 2021 Russell indexes annual reconstitution, effective after the US market opens on June 28, 2021 according to a preliminary list of additions posted June 4, 2021 by FTSE Russell.

Annual Russell indexes reconstitution captures the 4,000 largest US stocks as of May 7, 2021, ranking them by total market capitalization. Membership in the US all-cap Russell 3000^® Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000^®

Index or small-cap Russell 2000^®

Index as well as the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings and style attributes.

Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. Approximately $10.6 trillion in assets are benchmarked against Russell’s US indexes. Russell indexes are part of FTSE Russell, a leading global index provider.

For more information on the Russell 3000^® Index and the Russell indexes reconstitution, go to the “Russell Reconstitution” section on the FTSE Russell website.

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 FTSE Russell:

FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $17.9 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.

A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering. FTSE Russell is wholly owned by London Stock Exchange Group. For more information, visit www.ftserussell.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 addition of Gevo to any FTSE Russell indexes 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. Gevo cannot guarantee future results, performance or achievements and makes no endorsement of an investment in Gevo based on inclusion in any FTSE index. 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, 2020, 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.

Gevo Investor and Media Contact
+1 720-647-9605

IR@gevo.com

Gevo Set to Join Russell 3000® Index

ENGLEWOOD, Colorado – June 8, 2021 – Gevo, Inc. (NASDAQ: GEVO), announced today that it expects to join the broad-market Russell 3000®

 Index at the conclusion of the 2021 Russell indexes annual reconstitution, effective after the US market opens on June 28, 2021 according to a preliminary list of additions posted June 4, 2021 by FTSE Russell.

Annual Russell indexes reconstitution captures the 4,000 largest US stocks as of May 7, 2021, ranking them by total market capitalization. Membership in the US all-cap Russell 3000^® Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000^®

Index or small-cap Russell 2000^®

Index as well as the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings and style attributes.

Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. Approximately $10.6 trillion in assets are benchmarked against Russell’s US indexes. Russell indexes are part of FTSE Russell, a leading global index provider.

For more information on the Russell 3000^® Index and the Russell indexes reconstitution, go to the “Russell Reconstitution” section on the FTSE Russell website.

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 FTSE Russell:

FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $17.9 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.

A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering. FTSE Russell is wholly owned by London Stock Exchange Group. For more information, visit www.ftserussell.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 addition of Gevo to any FTSE Russell indexes 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. Gevo cannot guarantee future results, performance or achievements and makes no endorsement of an investment in Gevo based on inclusion in any FTSE index. 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, 2020, 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.

Gevo Investor and Media Contact
+1 720-647-9605

IR@gevo.com