EBITDA losses continued in 4Q2021. Given the early stage of development of the renewable fuels concept, it isn't surprising that EBITDA was negative $10.9 million due to limited revenue and continuing corporate/development costs. We expect negative EBITDA to continue into at least late next year. Gross losses of $4.3 million were slightly higher than $1.4 million last year due to operating expenses of $2.8 million, but total development and overhead costs dropped $4.4 million to $12.2 million.Funding is visible into next year, but development goal of 1 BGPY by 2030 likely to require added capital. Given 4Q2021 cash of $476 million and the scheduled financial closing of Net Zero One in 1Q2023, we don't believe that added capital is required right now. Current cash creates a funding fairway into late 2022/early 2023, and we expect the recently refreshed $500 million ATM program will not be tapped until the stock moves higher.Net Zero plant design expanded to 60 MGPY and feedstock flips to ethanol. Development cost remains in the $900 million range with potential annual EBITDA in the $150-$200 million range. The new Kolmar contract fills up a significant portion (75%) of the expanded design capacity of 60 MGPY. The location of Net Zero 2 is yet to be determined location in the Midwest but co-locating it with Net Zero 1 in South Dakota might leverage plant infrastructure.Contracted FSA portfolio remains high and added contracts likely later this year. While the current contracted FSA portfolio is 99 MGPY, or revenue of ~$4.4 billion, with a potential CVX commitment of up to 150 MGPY not yet included. The development pipeline, including CVX, remains very high at more than 1,500 MGPY, or revenue potential in excess of $30.0 billion. The recent addition of Kolmar to the customer list was positive.Maintain Outperform rating and price target of $16/share. As evidenced by the current and potential supply contracts, the potential for renewable fuels remains very high and the addition of strong global partners is a game-changing event. While we expected profit taking after strong early 2021 stock price performance, we are very surprised by the weak stock price performance of 60% since the CVX LOI announcement, including drops of 36% in 4Q2021 and 26% in 1Q2022. Read More >>