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Good morning, and welcome to the REX American Resources Third Quarter 2025 Conference Call. As a reminder, today's call is being recorded. At this time, all participants are on a listen-only mode. A brief question and answer session will follow the formal presentation. I would now like to turn the call over to your host, Mr. Doug Bruggeman, Chief Financial Officer of REX American Resources. Please go ahead.

Good morning, and thank you for joining the REX American Resources Q3 2025 conference call. With me on our call today are Stuart Rose, REX Executive Chairman, and

Good morning, and thank you again to everyone for joining us. During 2025, REX American Resources continued to demonstrate the strength and operational expertise that has defined our company for over four decades. I'm pleased to report that we are making progress on operational milestones we set out to accomplish and continue to position REX for sustained long-term growth. Our third-quarter results reflect our focus on solidifying our core business of ethanol production. Our strong results during the quarter benefited from supportive ethanol industry dynamics, especially export volumes and strong crush spreads. Our One Earth Energy facility expansion to 200 million gallons per year is continuing and is on track for completion in 2026. This expansion will significantly enhance our production capabilities and operational efficiency, contributing meaningfully to future performance. Additionally, we have begun examining potential benefits we can derive in the near term from 45

Thank you, Stuart. The expansion of ethanol production at the One Earth facility continues to progress steadily and remains on track for completion and in operation in 2026. Alongside this project, we are advancing our evaluation of our carbon intensity score and expect a favorable outcome as we incorporate assessments from multiple independent experts. Regarding the near-term benefits available under the 45

Thanks,

Thanks, Doug. Our three P's—profit, position, and policy—continue to guide our strategy and execution. This was evident throughout the third quarter. Profit: We have now delivered 21 consecutive quarters of profitability, reflecting the hard work, discipline, and operational excellence demonstrated by our team every day. Position: We believe we are strategically positioning the company for long-term organic growth, reduced carbon intensity, and enhanced value creation. Advancing our carbon sequestration project and core ethanol business will further strengthen our competitive position heading into 2026 and beyond. We also continued active engagement with the EPA regarding our Class VI well permit application. Policy: We're leveraging the near-term opportunities provided by the 45

Thank you. At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press 1 on your telephone keypad. You may press 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Our first question comes from Chris Degner with Water Tower Research. Please proceed with your question.

Thanks for your time, and it looks like a great quarter. Just wanted a couple of questions for you. I'm kind of curious about your thoughts on key hurdles and timing as you look forward to the 45

Yes, Chris. As you know, the Treasury has not issued the guidelines so far. We're certainly waiting for the guidelines. Then, also, there is a requirement for the prevailing wages and all those information calculations of CI score. Just want to make sure we have all the facts together, and we are reviewing these facts with different experts. And once we have all those numbers back, we will be able to, you know, next quarter, hopefully, we will be able to explain how much tax credit we will be receiving. But at this time, we are not willing to really give any numbers.

Sure. Thanks. And then if you step back and think about some of the fundamentals of the industry, I'd be curious about your view on the impact of tariffs and crack spreads as you look forward into 2026. And I know it's hard to forecast, but just curious about your view.

I think the tariff, in the beginning, certainly had a huge impact because we were concerned about Mexico and Canada export. You know, Mexico is the largest importer of DDG, and Canada is the largest importer of ethanol. So, hopefully, those relations stay the same. I think that that will be great. But certainly, on the other side, we can see that Europe and several other countries are beginning to buy ethanol due to pressure from the tariff on negotiation and others. So that's why we can see that the ethanol certainly has January to August is approximately 1.4 billion. Compared to last year, 1.2 billion. So certainly, there is a great positive impact on the export of ethanol at this time. But on the other hand, I think we see some of those soybeans or soybean oils are not shipped abroad, or China is not buying. There is some impact on the corn oil prices, which has dropped a little bit, and also there's some concern about the DDG export. So those are the weak sides. We certainly are very happy to see that ethanol export is increasing, and we believe that will continue to increase in 2026. And also, we are very pleased with the, as you know, the corn production in Illinois and South Dakota. It does seem to be all-time high, and we believe that will have a positive impact on our cost of production moving forward.

I have family who are farmers in Iowa, and it's been a good year. So it's Yeah. Thank you for that. If you think through the carbon sequestration project that you're looking at, how's the permitting process going with the pipeline? And is there any key hurdles that you could see through with the Illinois state government?

I think, basically, as you know, there was a moratorium through July 1 for the pipeline. But we understand the ICC, Illinois Commerce Commission, is working on pipelines and all of those requirements, and they already have a couple of public hearings. We believe they are certainly working on it. But at this time, we really have no clear guideline on when they will start taking the application. But the moratorium will be, you know, July 1 is the last day, so we certainly will be able to apply after that, if not earlier. But you probably also know that we have completed all the easements for our six-mile pipeline. That pipeline was really a six-mile pipeline. We built it because we just wanted to be away from the aquifer, the Mahomet Aquifer. And that's the only reason. Otherwise, we did not really need that pipeline.

Oh, okay. Well, thank you for the update, and it looks like a great quarter. I appreciate your time.

Thanks, Chris.

Our next question comes from Mason Born with AWH Capital. Please proceed with your question.

Hi, guys. Thanks for the questions. Just a couple for me. Stuart, I guess, in your prepared remarks, you mentioned recognizing benefits under 45

As

So that's something you could recognize retroactively. Is that your assumption when you're

That's our hope. Yes. Yes. That's our hope.

And then second for me. I know it's early on this as well, but ADM recently entered into an agreement with Google on some of their excess capacity. I know you guys are planning to have plenty of excess capacity in your carbon capture wells, even on one alone, but potentially on all three if you have them operating. Just wondering if you could provide any thoughts there on your thinking and any timeline around, obviously, I assume you get your operation online first, but just any thoughts on potential for partnerships or what that could look like?

Yeah. I think, Mason, as you know, we are really trying to concentrate on the well number one first. And certainly, for well number two and three, even for well number one, we will have enough capacity to have the carbon sequestration from third parties. And we have been in contact with several people, and several people have reached out to us recently and even in the past. But we really don't want to make some commitment or contract until the time we have received the Class VI permit, and we have put the pipeline. All of those facts are taken care of. After that, we believe that we will be able to get those contracts in the future. But at this time, we are not negotiating with anyone because we are not there where we are supposed to be at this stage.

Great. Thank you.

And, Mason, let me add that one answer to you. You asked about the land use. Yes. Our recent calculation, which we are looking at, as you know, there is land use in this one, and in 2026, there will not be land use. We believe that we are already at a score which can be really, without land use, we will be able to qualify. But we have to still do a lot of calculations to make sure the prevailing wages and other factors and Treasury guidelines are clear. Even I can tell you that even some of those accountants who are reviewing our data and information, they are not even sure if that is gross ethanol or is it net ethanol? That means it's denatured ethanol or undenatured ethanol will qualify. So there are several different ways we are doing all those calculations to make sure that the numbers are correct before we start talking about how many millions of dollars of tax credits we are going to get.

That's helpful, and we appreciate your conservatism. So thank you for the details.

We have reached the end of the question and answer session. I'd now like to turn the call back over to Stuart Rose for closing comments.

Thank you. Our quarter was very good, and we expect next quarter ethanol to outperform last year's fourth quarter. And we're continuing to make further progress, as we just talked about, in capturing 45