Question-and-Answer Session
Operator
Thank you. (Operator Instructions). Our first question is coming from Matt Farlow [ph] with Imperial Capital. Please state your question.
Matt Farlow – Imperial Capital
Good morning and congratulations on a successful quarter. I want to focus right now on Marketing and Distribution revenues. The way I calculate it, you had a 162 million total ethanol sold and a 170 million of internal production and that seems lower than the annual number, 360 million, which you mentioned earlier in the call. At what point in the year are we going to see the full 840 million gallons per year of ethanol sold?
Todd Becker
Well, we produced a 107 million gallons of ethanol for the quarter internally and now we are ramping ourselves up to a 120 million gallons and then if we take that (inaudible) obviously that will get us to 480 million and so we are actually operating today at a full run rate on the production segment. In addition, we are starting – we added a plant in the last quarter, October 1st actually to take us up to 360 million gallons, and as well as some of the plants’ downtime that we market for as well.
So we think in the next 12 months is really when we are going to see the full 840 million gallons as all of our plants that we have owned are operating and then the plants that we market for are operating as well.
Matt Farlow – Imperial Capital
Okay. And I am looking at your ethanol realization of $1.59, which was in line with what we saw in the CBOT futures during the quarter. But it’s higher than I would have expected given the basis that we should have seen for transportation costs. Could you provide some color on how this metric outperformed?
Todd Becker
Well, actually I think the average price is a little bit higher on CBOT for the quarter. I mean, we – what we do is when you kind of – we don't ever look at a price in a vacuum, we really just lock margins away. So when we see opportunities at $1.50 or $1.70, we just continue to lock – that’s basically turned out that the average was $1.59 against a corn price of – let me look here real –
Jerry Peters
$3.75.
Todd Becker
About $3.75 which basically achieved our margins of about $20 million of EBITDA. I mean – so in general, I don't think you can ever really view us as an average seller of anything. I think the key is that our – that’s why these prices are really not realistic relative to look – to adjust in a vacuum. We just – we lock margins away, Matt and I think just to focus on us versus CBOT is not the way to look at this. We have to just look at how we – how our margins are relative to what the actual cost margin is for the quarter on a daily basis.
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