SACRAMENTO, Calif., Sept. 2, 2014 (GLOBE NEWSWIRE) -- Pacific Ethanol, Inc. (Nasdaq:PEIX), the leading producer and marketer of low-carbon renewable fuels in the Western United States, announced it has purchased an additional 5% ownership interest in PE Op Co., the owner of the Pacific Ethanol plants, for a total cash purchase price of $6,000,000. The acquisition increased the company's ownership interest in the Pacific Ethanol plants to 96%.
Neil Koehler, the company's president and CEO, said: "Increasing our ownership delivers an immediate earnings benefit to our shareholders at current production margins. With this purchase, our 96% equity ownership is at a weighted-average cost of thirty cents per gallon of annual operating capacity, which is a significant discount to both current market values and replacement costs. We are now net debt free at the plants, with cash balances exceeding third-party debt."
About Pacific Ethanol, Inc.
Pacific Ethanol, Inc. (PEIX) is the leading producer and marketer of low-carbon renewable fuels in the Western United States. Pacific Ethanol also sells co-products, including wet distillers grain ("WDG"), a nutritional animal feed. Serving integrated oil companies and gasoline marketers who blend ethanol into gasoline, Pacific Ethanol provides transportation, storage and delivery of ethanol through third-party service providers in the Western United States, primarily in California, Arizona, Nevada, Utah, Oregon, Colorado, Idaho and Washington. Pacific Ethanol has a 96% ownership interest in PE Op Co., the owner of four ethanol production facilities. Pacific Ethanol operates and manages the four ethanol production facilities, which have a combined annual production capacity of 200 million gallons. These operating facilities are located in Boardman, Oregon, Burley, Idaho, Stockton, California, and Madera, California. The facilities are near their respective fuel and feed customers, offering significant timing, transportation cost and logistical advantages. Pacific Ethanol's subsidiary, Kinergy Marketing LLC, markets ethanol from Pacific Ethanol's managed plants and from other third-party production facilities, and another subsidiary, Pacific Ag. Products, LLC, markets WDG. For more information please visit www.pacificethanol.com.