Vertex Energy (VTNR) Provides Operational Update for Second Quarter 2024

Vertex Energy, Inc. (NASDAQ: VTNR) ("Vertex" or the "Company"), a leading specialty refiner and marketer of high-quality refined products, today provided an update to its financial and operational outlook for the second quarter of 2024.

Highlights include:

• Expected reductions in direct operating expense of 7% and capital expenditures of 29%, 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.

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 $3.90 to $4.10 per barrel, a 6.7% improvement vs. prior expectations at the mid-point. Capex is expected to be $15 - $17 million, 28.9% below expectations at the midpoint.

Reported throughput volumes at the Company’s Mobile, Alabama Refinery (the “Mobile Refinery”) for the second quarter of 2024 are expected to be approximately 68,000 bpd, at the low end of management’s previous guidance. This reflects throughput reductions related to market crack spread weakness across the quarter.

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 64% and 68%.

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 $96.53 per barrel, ultra-low sulfur diesel at $102.58 per barrel, jet fuel at $103.33 per barrel, and Louisiana Light, Sweet Crude oil at $83.69 per barrel.

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 97% and 98%, above the previously anticipated range of 96% to 98%. The Company has safely completed its planned shutdown of the hydrotreater and ceased production of renewable diesel.

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