Green Plains (GPRE) risk factors, FY2024 10-K

Risks Related to our Business and Industry

1. 01Our margins are dependent on managing the spread between the price of corn, natural gas, ethanol, distillers grains, Ultra-High Protein and renewable corn oil
2. 02Our operating results are highly sensitive to commodity prices
3. 03We may be affected by or unable to fulfill our total transformation strategies
4. 04Domestic and foreign government biofuels programs could change and impact the ethanol market
5. 05during the summer driving season. As of this filing, according to Prime the Pump, E15 is sold year-round at approximately 3,724 stations
6. 06Future demand for ethanol is uncertain and changes in public perception, consumer acceptance and overall consumer demand for transportation fuel could affect demand
7. 07Our risk management and commodity trading strategies could be ineffective and expose us to decreased liquidity
8. 08Carbon Capture and Sequestration projects we are committed to could be delayed or cease operations
9. 09In the past, we have had operating losses and could incur future operating losses
10. 10financial condition and results of operations could be materially adversely affected
11. 11Our debt exposes us to numerous risks that could have significant consequences to our shareholders
12. 12We are required to comply with a number of covenants under our existing loan agreements that could impact our liquidity
13. 13We operate in a capital intensive business and rely on cash generated from operations and external financing, which could be limited
14. 14Disruptions in the credit market could limit our access to capital
15. 15Our production level may fluctuate due to planned and unplanned downtime at our assets
16. 16Our ability to maintain the required regulatory permits or manage changes in environmental, safety and TTB regulations is essential to successfully operating our plants
17. 17Any inability to generate or obtain RINs could adversely affect our operating margins
18. 18Compliance with evolving environmental, health and safety laws and regulations, particularly those related to climate change, could be costly
19. 19We may fail to realize the anticipated benefits of mergers, acquisitions, joint ventures or partnerships
20. 20Future events could result in impairment of long-lived assets, which may result in charges that adversely affect our results of operations
21. 21Global competition could affect our profitability
22. 22International activities such as boycotts, embargoes, product rejection, trade policies and compliance matters, may have an adverse effect on our results of operations
23. 23The ability or willingness of OPEC and other oil exporting nations to set and maintain production levels has a significant impact on oil and natural gas commodity prices
24. 24Increased ethanol industry penetration by oil and other multinational companies could impact our margins
25. 25Our agribusiness operations are subject to significant government regulations
26. 26Commodities futures trading is subject to extensive regulations
27. 27Our success depends on our ability to manage our changing operations
28. 28We may be required to provide remedies for ethanol, distillers grains, Ultra-High Protein or renewable corn oil that do not meet the specifications defined in our sales contracts
29. 29Business disruptions due to unforeseen operational failures or factors outside of our control could impact our ability to fulfill contractual obligations
30. 30Our ethanol-related assets may be at greater risk of terrorist attacks, threats of war or actual war, than other possible targets
31. 31Our network infrastructure, enterprise applications and internal technology systems could be damaged or otherwise fail and disrupt business activities
32. 32We could be adversely affected by cyber-attacks, data security breaches and significant information technology systems interruptions
33. 33We may not be able to hire and retain qualified personnel to operate our facilities
34. 34Compliance with and changes in tax laws could adversely affect our performance
35. 35Federal, state and local jurisdictions may challenge our tax return positions
36. 36Financial performance of our equity method investments are subject to risks beyond our control and can vary substantially from period to period
37. 37We are exposed to credit risk that could result in losses or affect our ability to make payments should a counterparty fail to perform according to the terms of our agreement
38. 38We have limitations, as a holding company, in our ability to receive distributions from a small number of our subsidiaries
39. 39The ability of suppliers to deliver inputs, parts, components and equipment to our facilities, and our ability to construct our facilities without disruption, could affect our business performance
40. 40Inflation may impact the cost and/or availability of materials, inputs and labor, which could adversely affect our operating results
41. 41Climate change, environmental, social and corporate governance issues and uncertainty regarding regulation of such matters may increase our operating costs, impact our capital markets and potentially reduce the value of our products and assets
42. 42Our insurance policies do not cover all losses, costs or liabilities that we may experience, and insurance companies that currently insure companies in the energy industry may cease to do so or substantially increase premiums
43. 43Our review of strategic alternatives may be disruptive to our business

Risks Related to our Common Stock

1. 44The price of our common stock may be highly volatile and subject to factors beyond our control
2. 45Anti-takeover provisions could make it difficult for a third party to acquire us