EBITDA losses continued in 3Q2021. Given the early stage of development of the renewable fuels concept, it isn't surprising that EBITDA was negative $9.3 million and EBITDA losses expected into late next year. Cash declined to $522 million from $567 million in 2Q2021 due to the quarterly cash burn, capex for longer lead time equipment and the acquisition of patents from Butamax.Contract portfolio unchanged, but development pipeline continues to expand and new large contracts appear on the horizon. While the contracted portfolio remains 54 MGPY, or ~$1.6 billion, the size of the potential CVX commitment approaches 150MGPY. New contracts should fill up Net Zero Two capacity and co-locating it with Net Zero One might also leverage plant infrastructure.Building a world class team. The recent moves to form alliances with ADM and Axens complement the additions of Chevron (CVX) as a customer and co-investor and Kiewit as the FEED engineer and probable EPC contractor. Each partner enhances the credit profile and credibility of the Net Zero and ethanol-to-jet concepts.Funding is visible into next year, but development goal of 1 BGPY by 2030 likely to require added capital. Given 3Q2021 cash of $522 million, we don't believe that added capital is required right now. Current cash creates a funding fairway into 2H2022, and any issuance from the recently refreshed $500 million ATM program until the stock moves higher, or at least above the minimum strike price of $8.50/share on the CVX warrants.Maintain Outperform rating and price target of $16/share. The potential for renewable fuels remains very high and adding strong partners are game changing events. While we expected profit taking after strong early 2021 stock price performance, we are very surprised by the weak stock price performance (down ~10%) since the day of the CVX LOI announcement. We remain positive on the stock’s high risk/high reward profile since we believe that 1Q2021 capital raises improved the funding fairway and the addition of the ADM MOU, CVX LOI and Kiewit as the FEED contractor and likely EPC contractor further bolsters the green fuel development plan. Read More >>