Trecora Announces Receipt of $14.6 Million U.S. Income Tax Refund Under CARES Act

Rhea-AI Summary

Trecora Resources (TREC) announced it received approximately $14.6 million from the IRS on November 16, 2020, as part of the CARES Act tax refunds. This amount includes interest and marks the first of two expected refunds related to net operating loss (NOL) carrybacks. The Company initially filed for $14.1 million in tax refunds on April 30, 2020, followed by a second claim of $2.4 million on June 30, 2020. These funds are expected to aid in mitigating the financial effects of the COVID-19 pandemic on Trecora's operations.

Positive

• Received $14.6 million IRS refund, enhancing liquidity.
• Tax refunds support financial stability amid COVID-19 impact.

Negative

• None.

SUGAR LAND, Texas, Nov. 17, 2020 /PRNewswire/ -- Trecora Resources ("Trecora" or the "Company") (NYSE: TREC), a leading provider of specialty hydrocarbons and specialty waxes, today announced that on November 16, 2020, it had received approximately $14.6 million, including interest, from the Internal Revenue Service, which constitutes the first of two U.S. income tax refunds requested by the Company under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act").

The CARES Act provides stimulus measures to companies impacted by the COVID-19 pandemic and includes, amongst numerous relief provisions, an expansion to companies' ability to utilize net operating loss ("NOL") carrybacks. 

On April 30, 2020 the Company filed its first NOL refund claim for approximately $14.1 million and on June 30, 2020 it filed its second and final refund claims for approximately $2.4 million.

About Trecora Resources (TREC)
TREC owns and operates a specialty petrochemicals facility specializing in high purity hydrocarbons and other petrochemical manufacturing and a specialty wax facility, both located in Texas, and provides custom processing services at both facilities.

Investor Relations Contact:
Jason Finkelstein
The Piacente Group, Inc.
212-481-2050
trecora@tpg-ir.com

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SOURCE Trecora Resources

FAQ

What is the IRS refund amount received by Trecora Resources?

Trecora Resources received approximately $14.6 million from the IRS.

When did Trecora Resources announce the receipt of the IRS refund?

Trecora Resources announced the receipt on November 17, 2020.

What is the purpose of the IRS refund for Trecora Resources?

The refund is part of the CARES Act, aimed at providing financial relief due to the COVID-19 pandemic.

What were the dates of Trecora's NOL refund claims?

Trecora filed for the first refund on April 30, 2020, and the second on June 30, 2020.

How does the CARES Act affect Trecora Resources?

The CARES Act allows Trecora to utilize net operating loss (NOL) carrybacks, impacting its tax refunds.