GPP - Green Plains Inc. Continues Its Transition Away From Ethanol
Ethanol producer Green Plains, Inc. (GPRE) saw its share price jump more than 18% to a 3-month high last week (see figure). The cause of the sudden rally was not the Trump administration's announcement that it will allow the sale of E15 (15 vol% blends of ethanol with gasoline) year-round throughout the U.S. Rather, investors' enthusiasm was due to a very different reason: the news that Green Plains is selling roughly 20% of its total ethanol production capacity to refiner and fellow ethanol producer Valero Energy (VLO). To understand just how