Vertex Energy Inc. (VTNR) shares soared 151.12% in after-market on Wednesday, May 26, 2021, and closed the day at $4.47 per share. Earlier, VTNR’s stock gained 2.01% to close Wednesday’s session at $1.78. VTNR shares have gained 165.32% over the last 12 months, and they have moved down 0.56% in the past week. Over the past three months, the stock went up 6.59%, while over the past six months, it has added 191.80%.
Let’s check out what’s going on with Vertex Energy Inc.
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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.
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.
The financial outlook for Q2 2021
Vertex Energy is expecting Adjusted EBITDA in the range of $2.5 million to $3.0 million for Q2 2021.
Processing & storage expansion in Louisiana
On March 30, 2021, Vertex Energy, Inc commenced construction on a new facility, located adjacent to the newly revitalized Myrtle Grove complex in Belle Chasse, Louisiana.
The new facility is designed to recover distressed hydrocarbon streams from tankage and barges.
The VTNR stock soared significantly in the after-hours after the company announced the acquisition of the Alabama refinery which is the biggest acquisition till now by the company. VTNR stock can continue its positive momentum on Thursday as well.