Profile: Pacific Ethanol, Inc. (PEIX.O)

Pacific Ethanol, Inc. (Pacific Ethanol), incorporated in March 2005, produces and sells ethanol and its co-products, including wet distillers grain (WDG), and provides transportation, storage and delivery of ethanol through third-party service providers in the Western United States, primarily in California, Nevada, Arizona, Oregon, Colorado, Idaho and Washington. The Company has customer relationships throughout the Western United States and supplier relationships throughout the Western and Midwestern United States. Pacific Ethanol’s customers are integrated oil companies and gasoline marketers who blend ethanol into gasoline. It supplies ethanol to its customers either from its own ethanol production facilities located within the regions it serves, or with ethanol procured in bulk from other producers. In May 2009, the Company announced that its subsidiaries, which own its four wholly owned ethanol production facilities (Plant Subsidiaries), have filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the District of Delaware.

The Company owns and operates four ethanol production facilities located in Madera, California; Boardman, Oregon; Stockton, California, and Burley, Idaho. Its Madera facility and Boardman facilities have an annual production capacity of up to 40 million gallons. The Stockton and magic valley facilities have an annual production capacity of up to 60 million gallons. In addition, Pacific Ethanol owns a 42% interest in Front Range Energy, LLC (Front Range), which owns and operates an ethanol production facility with annual production capacity of up to 50 million gallons in Windsor, Colorado.

During the year ended December 31, 2008, Pacific Ethanol produced or purchased from third parties and resold an aggregate of approximately 272 million gallons of fuel-grade ethanol to approximately 66 customers. In 2008, sales to its two largest customers represented approximately 32% of the Company’s net sales. Customers, who accounted for 10% or more of its net sales in 2008, were Chevron Products USA and Valero Marketing. Sales to each of its other customers represented less than 10% of the Company’s net sales in each of 2008.