Vertex Energy provides Q4 operational update

Vertex Energy provided an update to its financial and operational outlook for 4Q23. Reported throughput volumes at the company’s Mobile, Alabama Refinery for 4Q23 are expected to be approximately 67K barrels per day, just below management’s previous guidance. The slight reduction reflects a combined impact of a strategic curtailment in throughput in light of deteriorating market conditions during the quarter as well as the previously disclosed downtime to proactively replace an electrical transformer. The expected yield of finished conventional fuel products such as gasoline, diesel, and jet fuel is expected to be 65%-67%, in line with the previously forecasted range of 64%-68%. This reflects the ongoing benefit of the yield optimization efforts introduced in 2Q23. Operating expenses per barrel for 4Q23 are expected to total $3.75-$3.95 per barrel, a 5.5% improvement vs. prior expectations at the mid-point. Capex is expected to be $8M-$10M, 48.6% below expectations at the midpoint. Reported renewable diesel production for 4Q23 is expected to be 3,900 bpd, just under the forecasted range of 4,000-6,000 bpd. The yield on renewable throughput volumes is expected to be approximately 96%, slightly below the previously anticipated range of 97%-98%. The company expected to receive LCFS credits in 4Q23 for its renewable diesel production volumes produced in Q3 and Q4 of 2023. The initial LCFS credits reflect a temporary carbon intensity score and amounted to $9.5M in the period. Upon receiving its provisional CI score, sometime in Q1 or Q2 of 2024, Vertex anticipates the per-barrel LCFS credits to improve materially over temporary CI values.