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Tag: VTNR

  • Vertex Energy Inc. (VTNR) stock Get Beaten Down After Upswing on Latest Acquisition

    Vertex Energy Inc. (VTNR) stock Get Beaten Down After Upswing on Latest Acquisition

    Owing to corrections after its recent price surge, Vertex Energy Inc. (VTNR) stock has continued to shed its gains in today’s premarket. At the time of writing on April 4, the stock was down by 6.23% at a price of $8.13 per share. Yesterday’s losses stand at 12.51% during the regular session as the stock went down to $8.67.

    What Happened with VTNR?

    On April 1, the environmental services company reported the acquisition of the Mobile, Alabama refinery and related assets from Equilon Enterprises LLC and Shell Chemical LP. Valuing at a base purchase price of roughly $75 million, the acquisition resulted in $165 million in hydrocarbon inventory from Shell under the intermediation agreement.

    Source: unkamuhendislik

    Currently, the company plans to complete the conversion of the refinery’s hydrocracking unit by the end of this year. Thus, the production of renewable diesel fuel is expected to commence in Q1 2023 at the site.

    Additionally, the company also closed the previously announced $125 million senior secured term loan which was initiated in conjunction with the financing of the deal. VNTR has also secured a Supply and Offtake Agreement with Macquarie Commodities and Global Markets for managing the requirements of the transaction. The SOA encompasses physical crude oil, feedstock, and products.

    Market Conditions

    While the oil refining market has secured a bullish outlook, supply-chain constraints and market instability owing to geopolitical flares are a constant threat. Where the declining activities in the pandemic caused a downfall in demand, oil prices had been surging high in early 2022 due to supply chain problems arising from the Russia-Ukraine conflict among other reasons. Recently, the upsurge has died down somewhat while the market remains unstable.

    Where do we expect VTNR?

    Progressing nicely so far, VTNR has been making good gains in 2022 even though the latest financials were not excessively impressive. With benefits expected from the latest acquisition to give fruit in 2023 and onwards, the company is looking forward to much more improvement. The company’s management expects the new asset to start production by the end of 2022. Moreover, the company has been working tirelessly toward scaling its business.

    Being a small growth company due to its less than $500 million market capitalization, VTNR is doing well so far.

    Conclusion

    After hiking up on the company’s latest asset acquisition, VTNR stock succumbed to corrections on Monday. The stock has so far continued to shed its gains in today’s premarket but the company is looking for nice gains in the near term.

  • Vertex Energy, Inc. (VTNR) stock surged in the current market; here is why?

    Vertex Energy, Inc. (VTNR) stock surged in the current market; here is why?

    Vertex Energy, Inc. (VTNR) surged in the current market after announcing its fourth quarter and fiscal 2021 results. VTNR values at $7.54, gaining more than 22.22% compared to yesterday’s closing price. The stock closed at $6.17 at the end of the last trading session. The stock volume traded in the previous trading session was around 3.25 million shares. The current market cap of the company is about $500.61 million.

    VTNR: Q4 and Fiscal 2021 Key Financials

    • Vertex Energy, Inc.’s revenue in Q4 2021 was $31.7 million. It is almost double the revenue of $17.4 million in Q4 2020.
    • Fiscal 2021 revenue was $115.7 million, 245% more than the revenue of $47 million in fiscal 2020.
    • The company’s net loss in Q4 2021 was around $5.3 million, an increase compared to the net loss of $2.9 million in Q4 2020.
    • VTNR net loss in fiscal 2021 was around $7.7 million, and profitability improved significantly compared to the net loss of $11.3 million in fiscal 2020.
    • For fiscal 2021, the basic and diluted loss per share was $0.36, compared to $0.67 in fiscal 2020.
    • As of 2021, the company had cash and cash equivalents of $36 million.

    VTNR: Acquisition of Mobile Refinery

    Vertex has agreed to buy a refinery in Mobile, Alabama from Equilon Enterprises LLC d/b/a Shell Oil Products US, Shell Oil Company, and Shell Chemical LP, companies of Shell plc.

    Vertex achieved many significant financial and commercial goals in the first quarter of 2022, ahead of the scheduled closing of the Mobile Refinery purchase.

    VTNR CEO’s Remarks

    Refinery performance at the Marrero and Heartland refineries enhanced refined product margins while increasing sales volumes drove record fourth-quarter and full-year earnings, according to Vertex Energy President and CEO Benjamin P. Cowart. The company’s fourth-quarter Adjusted EBITDA grew over $10 million from the prior year, excluding transaction costs associated with the proposed Mobile Refinery acquisition. Roughly the same as the fourth quarter, refined product margins were steady in January and February 2022.

    Conclusion

    Vertex Energy, Inc. (VTNR) entered 2022 at a steady pace. The company did not provide any guidance for 2022, but it seems that it will be focusing on increasing the revenue to increase its market share.

  • Here is why Vertex Energy Inc. (VTNR) stock rallied on Tuesday?

    Here is why Vertex Energy Inc. (VTNR) stock rallied on Tuesday?

    Vertex Energy Inc. (VTNR) shares surged 40.99% in after-hours on Tuesday, June 29, 2021, and closed the day at $14.48 per share. Earlier, in the morning session of Tuesday, VTNR’s stock gained 3.32% to close the session at $10.27 per share. VTNR shares have risen 1451.36% over the last 12 months, and they have moved up 39.73% in the past week. Over the past three months, the stock has gained 690.00%. The company has a current market of $479.61 million and its outstanding shares stood at 47.71 million.

    Let’s have a look at its recent news and developments.

    Agreement with Safety-Kleen Systems

    On June 29, 2021, Vertex Energy, Inc entered into a definitive agreement to sell its portfolio of used motor oil collection and recycling assets to Safety-Kleen Systems, Inc.

    Safety-Kleen will acquire the 69 million gallons per year Marrero used oil refinery in Louisiana; the 20 million gallons per year Heartland used oil refinery in Ohio; the H&H and Heartland used oil collections business; the Nickco oil filters and absorbent materials recycling facility in East Texas; and the Cedar Marine terminal in Baytown, Texas.

    The total value of the deal is $140 million and is expected to close during the third quarter of 2021.

    Inauguration on Russell Microcap(R) Index

    Vertex Energy, Inc is set to join the Russell Microcap® Index after the 2021 Russell indexes annual reconstitution, effective after the US market opens on June 28, according to a preliminary list of additions posted June 4.

    Acquisition of Alabama Refinery

    On May 26, 2021, Vertex Energy, Inc entered into a definitive agreement to acquire the Mobile refinery for $75 million, located in Mobile, Alabama from Equilon Enterprises LLC d/b/a Shell Oil Products US, Shell Oil Company and Shell Chemical LP (“Shell”), subsidiaries of Royal Dutch Shell plc.

    New appointment

    On May 18, 2021, Vertex Energy, Inc appointed Bart Rice as Division President of Renewable and Conventional Fuels for Vertex.

    Rice has 40 years of energy industry experience and he joined Vertex in early 2000. Before joining Vertex, Rice served in executive leadership roles with Rice Oil, Allied Energy Company, Crystal Energy LLC, Division President of Emerge Energy Services LP and Joint Venture Partner with Lansing Trade Group and Andersons, Inc.

    Financial results announcement

    On May 13, 2021, Vertex Energy, Inc reported its financial results for the first quarter of 2021 ended March 31, 2021.

    Q1 2021 financial highlights

    • Vertex Energy reported anet income of $3.0 million in Q1 2021 compared to $2.4 million in Q1 2020.
    • In Q1 2021, the company earned a revenue of $58.0 million compared to $36.2 million in Q1 2020.
    • Total operating expenses were $8.4 million in the first quarter of 2021 compared to $7.16 million in Q1 2020.
    • Net income attributable to Vertex Energy was $1.0 million compared to $2.8 million in Q1 2020.
    • Income (loss) per share was $0.01 per basic and diluted share in Q1 2021 compared to $0.21 per basic and diluted share in Q1 2020.
    • Adjusted EBITDA was$6.5 million in Q1 2021 compared to $1.65 million in Q1 2020.
    • The company had total cash and availability on its lending facility of $12.5 million and $3.9 million on March 31, 2021.

    Conclusion

    The VTNR stock soared significantly on Tuesday after the company signed agreement to sell its used oil to Safety-Kleen which will generate more revenue for the company. The VTNR stock can further surge in the coming days.