Vertex Energy Provides Operational Update for Second Quarter 2024
Highlights include:
-
Expected reductions in direct operating expense of
7% and capital expenditures of29% , compared to previous guidance midpoints; - Anticipated conventional throughput of 68,000 barrels per day (bpd), within guidance range of 68,000 to 72,000 bpd; and
- Renewable throughput and utilization in line with prior guidance, which took into account the Company’s pause and pivot strategy.
Benjamin P. Cowart, President and CEO of Vertex, stated, “We were in line with our guidance in the second quarter of 2024, coupled with continued lower operating expense and lower capital spending. We remain focused on margin improvement, reducing our costs and operating efficiently. We continue to execute on the strategic pause of our renewable diesel business and the pivot to producing conventional fuels from our hydrocracker unit.”
Updated 2Q 2024 Management Guidance
All guidance presented below is current as of the time of this release and is subject to change. All prior financial guidance should no longer be relied upon.
Conventional Fuels |
2Q 2024 |
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Operational: |
As of 5/9/24 |
|
As of 7/16/24 |
Mobile Refinery Conventional Throughput Volume (Mbpd) |
68 – 72 |
|
~68 |
Capacity Utilization |
91 - |
|
89 - |
Production Yield Profile: |
|
|
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Percentage Finished Products1 |
64 - |
|
64 - |
Intermediate & Other Products2 |
36 - |
|
36 - |
|
|
|
|
Renewable Fuels3 |
2Q 2024 |
||
Operational: |
As of 5/9/24 |
|
As of 7/16/24 |
Mobile Refinery Renewable Throughput Volume (Mbpd) |
2 – 4 |
|
~3 |
Capacity Utilization |
25 - |
|
38 - |
Production Yield |
96 - |
|
97 - |
Yield Loss |
4 - |
|
3 - |
|
|
|
|
Consolidated |
2Q 2024 |
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Operational: |
As of 5/9/24 |
|
As of 7/16/24 |
Mobile Refinery Total Throughput Volume (Mbpd) |
70 - 76 |
|
~71 |
Capacity Utilization |
84 - |
|
84 - |
|
|
|
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Financial Guidance: |
|
|
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Direct Operating Expense ($/bbl) |
|
|
|
Capital Expenditures ($/MM) |
|
|
|
|
|
|
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1.) Finished products include gasoline, ULSD, and Jet A |
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2.) Intermediate & Other products include Vacuum Gas Oil (VGO), Liquified Petroleum Gases (LPGs), and Vacuum Tower Bottoms (VTBs) |
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3.) Includes 3rd party tolling volumes |
Second quarter operating expenses and capital expenditures were lower, with throughput volumes within guidance
Operating expenses per barrel for the second quarter of 2024 are expected to total between
Reported throughput volumes at the Company’s
The expected yield of finished conventional fuel products such as gasoline, diesel, and jet fuel is expected to be in line with the previously forecasted range of between
Key commodity price averages in local markets served by Vertex for the second quarter of 2024 include Conventional Blendstock for Oxygenate Blending or CBOB gasoline, at
Renewable diesel volume expected to be in line with prior outlook
Vertex’s reported renewable diesel production for the second quarter 2024 is expected to be about 3,000 bpd, at the midpoint of the forecasted range of 2,000 to 4,000 bpd. The yield on renewable throughput volumes is expected to be between
ABOUT VERTEX ENERGY
Vertex Energy is a leading energy transition company that specializes in producing high-quality refined products. The Company’s innovative solutions are designed to enhance the performance of its customers and partners while also prioritizing sustainability, safety, and operational excellence. With a commitment to providing superior products and services, Vertex Energy is dedicated to shaping the future of the energy industry.
FORWARD-LOOKING STATEMENTS
Certain of the matters discussed in this communication which are not statements of historical fact constitute forward-looking statements within the meaning of the securities laws, including the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. Words such as “strategy,” “expects,” “continues,” “plans,” “anticipates,” “believes,” “would,” “will,” “estimates,” “intends,” “projects,” “goals,” “targets” and other words of similar meaning are intended to identify forward-looking statements but are not the exclusive means of identifying these statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. The important factors that may cause actual results and outcomes to differ materially from those contained in such forward-looking statements include, without limitation, the Company’s expected results of operations for the first quarter of 2024, as discussed above; statements concerning: the Company’s engagement of BofA Securities, Inc., as previously disclosed; the outcome of the Company’s plans to optimize conventional fuel and renewable diesel production moving forward; the review and evaluation of potential joint ventures, divestitures, acquisitions, mergers, business combinations, or other strategic transactions, the outcome of such review, and the impact on any such transactions, or the review thereof, and their impact on shareholder value; the process by which the Company engages in evaluation of strategic transactions; the Company’s ability to identify potential partners; the outcome of potential future strategic transactions and the terms thereof; the future production of the Company’s Mobile Refinery; anticipated and unforeseen events which could reduce future production at the refinery or delay future capital projects, and changes in commodity and credit values; throughput volumes, production rates, yields, operating expenses and capital expenditures at the Mobile Refinery; the timing of, and outcome of, the evaluation and associated carbon intensity scoring of the Company’s feedstock blends by officials in the state of
Other important factors that may cause actual results and outcomes to differ materially from those contained in the forward-looking statements included in this communication are described in the Company’s publicly filed reports, including, but not limited to, the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, when filed, and future Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. These reports are available at www.sec.gov. The Company cautions that the foregoing list of important factors is not complete. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on behalf of the Company are expressly qualified in their entirety by the cautionary statements referenced above. Other unknown or unpredictable factors also could have material adverse effects on Vertex’s future results. The forward-looking statements included in this press release are made only as of the date hereof. Vertex cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Vertex undertakes no obligation to update these statements after the date of this release, except as required by law, and takes no obligation to update or correct information prepared by third parties that are not paid for by Vertex. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
PRELIMINARY FINANCIAL AND OPERATIONAL DATA
The financial and operational data for the three months ended June 30, 2024, contained in this release are preliminary in nature. The Company’s management has prepared the preliminary financial and operational data contained in this release based on the most current information available to management. The Company’s normal closing and financial reporting processes with respect to its financial and operational data for the three months ended June 30, 2024, have not been fully completed. This preliminary financial and operational data has been prepared by, and is the responsibility of, the Company’s management. Neither the Company’s independent accountants, nor any other independent accounting firm, has expressed an opinion or any other form of assurance with respect thereto. As a result, the Company’s actual financial and operational results for the three months ended June 30, 2024, could be different from the preliminary financial and operational data contained herein, and any differences could be material. The Company has prepared these estimates on a basis materially consistent with its historical financial results and in good faith based upon its internal reporting as of and for the three months ended June 30, 2024. This release is not intended to be a comprehensive statement of financial results for this period. The results of operations for an interim period may not give a true indication of the results to be expected for a full year or any future period.
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INVESTOR CONTACT
IR@vertexenergy.com
Source: Vertex Energy, Inc.