PARITY ENERGY GROUP · MASTER PROFORMA · INTERNAL CONFIDENTIAL
CI Certificate Arbitrage — Financial Model
25 Target Plants · $438.8M Sale Revenue · 20.5% EBT Margin · 73.4% Annualized ROC
Key Insight: At 25 plants (21.7% market share), Parity generates $89.8M annual EBT on $438.8M sale revenue — a 20.5% margin. Gross spread $0.250/bu (44.3% margin). Capital deployed: $244.5M for 6 months. Annualized ROC: 73.4%. Break-even at 1 plants.
Sale Revenue
$438.8M
25 plants × $17.6M
Gross Profit
$194.3M
44.3% margin · $0.250/bu
Data Aggregator Cost
$38.9M
20% of GP · $1.6M/plant
Operating Income
$106.9M
24.4% of revenue
EBT (Pre-Tax)
$89.8M
20.5% margin · $0.115/bu
Annualized ROC
73.4%
$244.5M deployed
Summary
Parity Energy Group — 25 Plants (21.7% of 115 ICP)
Sale revenue (plants)$438.8M$0.564/bu
Purchase cost (farmers)($244.5M)$0.314/bu
Gross profit$194.3M44.3% · $0.250/bu spread
Data aggregator (20% of GP)($38.9M)$1.6M/plant
Operating budget (25% of GP)($48.6M)$1.9M/plant
Operating income$106.9M24.4%
Interest (14% × 6mo on $244.5M)($17.1M)$0.7M/plant
EBT$89.8M20.5%
Per-Plant Waterfall — CI Certificate Arbitrage
Purchase CostData AggregatorOperating IncomeEBT$-18M$-9M$0M$9M$18M
Arbitrage Economics
Purchase: $0.314/bu
Paid to farmers (fall)
Sale: $0.564/bu
Received from plants (spring)
Spread: $0.250/bu
44.3% gross margin
Data Agg: $38.9M
20% of GP · 8.9% of rev
Capital: $244.5M
6-month hold · OpCo B/S
Interest: $17.1M
14% annual × 6/12
ROC: 73.4%
Annualized (6mo turns)
EBT: $89.8M
20.5% margin after all costs