INTERACTIVE WEB CONFERENCE
WHO WILL BENEFIT FROM THE BIOFUEL INDUSTRY'S CURRENT DISTRESS?
WHO WILL BENEFIT FROM THE BIOFUEL INDUSTRY'S CURRENT DISTRESS?
Thursday, April 2, 2009:
1:00pm - 2:30pm (Eastern)
Valero Energy purchased seven ethanol facilities from VeraSun Energy for $477 million (approximately 61 cents per gallon of production capacity) on March 18, 2009. Not only is this the largest acquisition to date, it also marks the first significant entrance by the petroleum industry into the U.S. ethanol industry. Importantly, the acquisition price also reflects the results of a bidding process that saw Archer Daniels Midland walk away empty handed and VeraSun's creditors receive a higher price than many experts were predicting. What does Valero's acquisition portend for the future of an industry that has been shaken in recent months by notable bankruptcies, plant shutdowns, and fears of insolvency among existing producers? Does this process establish a new valuation benchmark that will facilitate additional consolidation? Will this acquisition increase the likelihood that other major players in the oil industry will seek to enter the ethanol production business? And does it mean that ethanol industry producers are unlikely to remain largely agriculturally based? Perhaps not. A recent Merrill Lynch report predicts a potential surge in ethanol prices next year as demand continues, oil prices rise and grain prices soften under the weight of the global recession. In addition, the Renewable Fuels Standard may provide sufficient underpinning for the industry to prosper.
Please join us as we discuss the biofuel industry's long-term viability, as well as strategies to profit from the industry's current downturn. We will also analyze the results of the VeraSun Energy auction process in depth.