REX American Resources: Q1 2027 Momentum Continues with Record-Setting Quarter
Rex American Resources, a leading player in the energy industry, has once again demonstrated its operational excellence and strategic discipline in the first quarter of 2026. According to the company's conference call transcript, Stuart Rose, Executive Chairman, highlighted that this was the most profitable first quarter on a net income per share basis in their history.
The company's consistent approach provides it with the flexibility to pursue value-creating opportunities while maintaining a thoughtful capital allocation strategy. Both of its major growth projects, including carbon capture and sequestration initiatives and ethanol production capacity expansion at its One Earth Energy facility, continue to advance. The firm remains focused on executing what is within their control while adapting to external factors as they evolve.
Rex American Resources has managed to maintain a strong focus on shareholder value creation, particularly taking advantage of market tailwinds driven by domestic policy and international export markets. The company believes its team is well-positioned and prepared to capitalize on these opportunities.
The CEO, Zafar Rizvi, provided updates on the firm's ongoing projects. Notably, the ethanol facility expansion at Gibson City continues to progress on schedule, with a completion target by the end of 2026. This expansion represents an important step in strengthening production capabilities and positioning the company for long-term growth.
The carbon capture and sequestration initiative remains a key area of focus, with Rex working closely with the EPA on Class VI injection well permit application. The permitting process is ongoing, and the company is addressing all regulatory requirements to move the project forward efficiently. At the state level, the Illinois moratorium on carbon pipeline permitting is scheduled to expire on July 1st, 2026.
The firm has also recognized $7.5 million in production tax credit during the first quarter of 2026 under Section 45Z. As of the end of the first quarter of 2026, Rex's total investment in carbon capture and ethanol expansion projects was approximately $176.3 million, operating within their combined project budget range.
The CFO, Douglas Bruggeman, discussed the company's financial results, highlighting that ethanol sales volumes reached 71.1 million gallons compared to 70.9 million gallons in the first quarter of 2025. The average selling price for ethanol was $1.66 per gallon during the quarter.
