Active Runners: Gevo, Inc. (GEVO), Williams Partners LP (WPZ)

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Gevo, Inc. (NASDAQ:GEVO):

The company’s RSI reading has hit 37.64. The stock edged higher by 3.81% to close previous trading session at USD 0.270.

The shares of the company fluctuated in the range of USD 0.23 and USD 7.24 in the course of 52 weeks. Over the three months, the company’s shares have declined by -59.09% and in the past one year, it has lost -91.00%. Additionally, the stock’s year to date performance has declined -56.45%. Over the last five days its shares have declined by -37.21% and in the past six months it has moved down -85.48%.

Further, the company is trading at a price to book ratio of 0.09. The stock’s weekly volatility is calculated as 26.79% and monthly volatility as 16.47% with ATR of 0.07, beta of 4.27 and price to cash ratio of 0.34.

Gevo, Inc. (GEVO) on March 29, 2016 declared financial results for the three months ended December 31, 2015. Key highlights for Gevo included:

  • Gevo restarted the production of isobutanol at its production facility in Luverne, Minnesota following the completion of capital projects designed to decrease the cost of production for isobutanol by bringing “in-house” parts of the process that have formerly been done by third parties. Gevo continues to target isobutanol production levels at Luverne in the range of 750,000 to 1 million gallons in 2016, and a decrease in the variable cost of isobutanol production at Luverne to a range of $3.00-$3.50/gallon**, enabling isobutanol to be produced at a positive contribution margin, based on an predictable average selling price for isobutanol of between $3.50-$4.50/gallon.
  • On March 28, 2016, Gevo declared that ASTM International Committee D02 on Petroleum Products, Liquid Fuels, and Lubricants and Subcommittee D02.J on Aviation Fuel passed a concurrent ballot this week approving the revision of ASTM D7566 (Standard Specification for Aviation Turbine Fuel Containing Synthesized Hydrocarbons) to include alcohol to jet synthetic paraffinic kerosene (ATJ-SPK) derived from renewable isobutanol (the “D02.J Ballot”). The D02.J Ballot passed two levels of ASTM technical scrutiny: subcommittee and main committee ballot and is in the final stages of Society Review. The ASTM process is substantially complete as it relates to the approval of the D02.J Ballot.  In order to fully complete the process, the ASTM still needs to close the Society Review, perform a final ballot tally, and publish the revision of ASTM D7566 (Standard Specification for Aviation Turbine Fuel Containing Synthesized Hydrocarbons) on its website.  It is predictable that these final actions will be accomplished by the ASTM in early April.
  • Gevo reached a license agreement and joint development agreement with Porta Hnos. S.A. (Porta) to construct multiple isobutanol plants in Argentina using corn as a feedstock, the first of which is predictable to be wholly owned by Porta and is anticipated to begin producing isobutanol in 2017. The first plant is predictable to have a production capacity of up to five million gallons of isobutanol per year. Once the plant is operational, Gevo anticipates to generate revenues from this licensing arrangement, through royalties, sales and marketing fees, and other revenue streams such as yeast sales. The production capacity of any additional plants is still to be determined.

Williams Partners LP (NYSE:WPZ):

The stock increased by 3.65% to close last trading session at USD 20.45. The company’s shares oscillated in the range of USD 19.34 and USD 20.51 during intraday trade.

A total of 1.98 million shares exchanged hands, below its 3 month average volume of 2.84 million shares. Over the last five days its shares have surged by 6.45% and in the past six months it has moved down -26.38%.

Furthermore, the stock has weekly volatility of 6.62% and monthly volatility of 6.69% with ATR of 1.40. The stock’s RSI is 54.35 and distance from 50-day simple moving average is 8.55%, whereas its distance from 20-day simple moving average is 3.38% and distance from 200-day simple moving average is -32.37%.

Williams Partners LP (WPZ) on March 23, 2016 declared the startup of its second offgas liquids extraction plant, a key asset in the company’s Canadian midstream and petchem complex. The new plant boosts domestic production of petchem feedstocks and significantly reduces emissions in the oil sands production process while recovering valuable natural gas liquids (NGLs) and olefins.

Serving an upgrader facility north of Fort McMurray, Alberta, the plant is designed to reduce emissions of carbon dioxide (CO2) – a greenhouse gas – by an average of about 200,000 tonnes per year and reduce emissions of sulphur dioxide (SO2) – a contributor to acid rain – by an average of about 2,800 tonnes per year.

Williams is the only company extracting and fractionating NGL/olefin mixes from oil sands upgrader offgas. Its first plant of this kind serves the upgrader of another third-party oil sands producer. The two plants recover ethane, propane, propylene and other liquids from the upgraders’ offgas streams. Williams then transports, fractionates and markets the products.