White Energy

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Description

Investing in our future In light of recent industry and legislative changes — the phase out of MTBE (Methyl Tertiary Butyl Ether), record gasoline prices and the creation of a Renewable Fuel Standard (RFS) — the demand for ethanol and other renewable fuels is significantly outpacing supply. White Energy is responding to this record growth with a strategic expansion plan that will result in the company acquiring and/or constructing three to five ethanol plants and two to three biodiesel plants during the next three years, placing White Energy among the top ten ethanol producers nationwide and the first operator in Texas. Emerging as a leader in the production of ethanol in the United States, Dallas-based White Energy currently operates a 45-MGPY nameplate ethanol plant in Russell, Kansas and has already broken ground on a new state-of-the-art ethanol facility in Hereford, Texas. The fully funded $117 million project is expected to be operational by the fourth quarter of 2007. This new construction is a significant step toward the company's goal of becoming an industry leader with a diversified portfolio of renewable energy resources established through acquisitions and alternative fuel plant construction. White Energy's business model produces significant free cash flow due to its low fixed-cost production process, low maintenance capital expenditures and low working capital requirements. The company is expected to generate over $81 million in free cash flows in 2008 and over $73 million in 2009. This model allows the company to service debt as needed while expanding production, providing value for shareholders and offering the flexibility to operate through variable commodity price environments.

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