Vertex Energy sees Q1 capital expenditures $65M-$70M

Vertex Energy provided an update to its financial and operational outlook for the first quarter. Throughput volumes at the company’s Mobile, Alabama refinery for the first quarter are between 69,000 and 72,000 barrels per day, or bpd, aligning with management’s prior expectations. The sequentially lower throughput volumes compared to Q4 2022 reflect the previously communicated facility downtime associated with the final stages of reaching mechanical completion of the renewable diesel, or RD, conversion project at the Mobile Refinery. Throughput volumes for the first quarter of 2023 reflect consistent, reliable operations at the Mobile Facility. Operating expenses per barrel for the first quarter are estimated to total between $3.85-$4.00 per barrel, while the capture rate on the benchmark Gulf Coast 2-1-1 crack spread is expected to be 50%-54%, in-line with prior forecasts. Total capital expenditures for the first quarter are now expected to be approximately $65M-70M, exceeding the prior forecasted capex range of $30M-$35M. This updated guidance reflects management’s decision to bring forward $35M of planned capital spending for the renewable diesel project from Q2 to Q1. The total project budget range for phase I of the RD conversion project remains in line with the previous target range of $110M-$115M. This acceleration is expected to enable the company to optimize efficiencies around the project schedule, as well as strengthen the site’s position ahead of the anticipated phase II launch. Management believes this decision aligns with the company’s commitment to leveraging a strong focus on the success of the RD project and longer-term value creation for our stakeholders.