6 unchanged sentences
Interest rates on our variable-rate debt are based on the market rate for the lender’s prime rate, SOFR or LIBOR.
−Removed: At June 30, 2023, we had $742.5 million in debt, $304.6 million of which had variable interest rates.
+Added: At September 30, 2023, we had a total book value of $659.0 million in debt, $215.7 million of which had variable interest rates.
A 10% increase in interest rates would affect our interest cost by approximately $2.1 million per year.
2 unchanged sentences
Our business is highly sensitive to commodity price risk, particularly for ethanol, corn, distillers grains, Ultra-High Protein, renewable corn oil and natural gas.
−Removed: Ethanol prices are sensitive to world crude oil supply and demand, the price of crude oil, gasoline, corn, the price of substitute fuels, refining capacity and utilization, government regulation and consumer demand for alternative fuels.
+Added: Ethanol prices are sensitive to world crude oil supply and demand, the price of crude oil, gasoline, corn, the price of substitute fuels, refining capacity and utilization, government regulations and consumer demand for alternative fuels.
Corn prices are affected by weather conditions, crop yields, changes in domestic and global supply and demand, and government programs and policies.
7 unchanged sentences
Our results can be impacted if there is a mismatch of gains or losses associated with the derivative instrument during a reporting period when the physical commodity purchases or sale has not yet occurred.
−Removed: During the three and six months ended June 30, 2023, revenues included net losses of $0.8 million and $8.0 million, respectively, and cost of goods sold included net losses of $9.3 million and net gains of $7.9 million, associated with derivative financial instruments.
+Added: During the three and nine months ended September 30, 2023, revenues included net gains of $2.7 million and net losses of $5.3 million, respectively, and cost of goods sold included net gains of $9.3 million and $17.2 million, respectively, associated with derivative financial instruments.
Ethanol Production Segment
1 unchanged sentence
To reduce commodity price risk caused by market fluctuations, we enter into exchange-traded futures and options contracts that serve as economic hedges.
−Removed: Our exposure to market risk, which includes the impact of our risk management activities resulting from our fixed-price purchase and sale contracts and derivatives, is based on the estimated net income effect resulting from a hypothetical 10% change in price for the next 12 months starting on June 30, 2023, which is as follows (in thousands):
+Added: Our exposure to market risk, which includes the impact of our risk management activities resulting from our fixed-price purchase and sale contracts and derivatives, is based on the estimated net income effect resulting from a hypothetical 10% change in price for the next 12 months starting on September 30, 2023, which is as follows (in thousands):
Commodity Estimated Total Volume
16 unchanged sentences
The market value of exchange-traded futures and options used for hedging are highly correlated with the underlying market value of grain inventories and related purchase and sale contracts for grain.
−Removed: The less correlated portion of inventory
−Removed: and purchase and sale contract market values, known as basis, is much less volatile than the overall market value of exchange-traded futures and tends to follow historical patterns.
+Added: The less correlated portion of inventory and purchase and sale contract market values, known as basis, is much less volatile than the overall market value of exchange-traded futures and tends to follow historical patterns.
We manage this less volatile risk by constantly monitoring our position relative to the price changes in the market.
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.