Vertex raises mobile refinery throughput view from 68Mbpd-72Mbpd to 76Mbpd

Vertex Energy provided an update to its financial and operational outlook for the Q2. Production of renewable diesel achieved the Phase I installed capacity target of 8,000 bpd during the Q2, as anticipated. Reported throughput volumes at the Company’s Mobile, Alabama Refinery for the Q2 are expected to be approximately 76,000 barrels per day, or bpd, exceeding management’s prior expectations of 68,000 bpd to 72,000 bpd. Throughput volumes for the Q2 reflect the ongoing consistency and reliability of operations at the Mobile Facility and effective supply chain management of crude oil feedstock supplies. Operating expenses per barrel for the Q2 are estimated to total between $4.15-$4.25 per barrel, or 7.6% over prior expectations at the mid-point. The increase reflects additional overhead expenses primarily driven by previously reported renewable diesel feedstock pumping system repair and restart. Capex is expected to be $30M-$35M, in-line with prior expectations. Capture rate on Gulf Coast 2-1-1 crack spread is forecasted to be 30%-35%, below management’s previously forecasted 50%-54%. The reduction in capture rate reflects increased price volatility in fuel markets and broader commodity market pricing pressure. Significant Downturn in Benchmark 2-1-1 Crack Spread – The Gulf Coast 2-1-1 crack spread for the Q2 averaged $23.61 per barrel, reflecting a 25.3% decline from the reported Q1 average of $31.59 per barrel. Market Pricing Erosion on Products Outside of 2-1-1 Crack Spread – During the quarter, the Company also experienced unexpected erosion in market prices for products, particularly Jet A and VGO, which fall outside of the benchmark Gulf Coast 2-1-1 crack spread.