Vertex Energy (VTNR) investor relations material

Executive summary

• Q2 2024 was marked by a net loss of $53.8 million, or $0.58 per share, with Adjusted EBITDA at $(22.4) million, driven by a 28% decline in crack spreads and challenging macroeconomic conditions.

• Revenue for Q2 2024 was $750.1 million, up $15.2 million year-over-year, mainly from refined product and service revenues, despite declines in certain segments.

• The company completed the transition of the Mobile Refinery hydrocracker from renewable diesel to conventional fuels, ceasing renewable production at the end of June, with expected contributions from conventional operations in Q4 2024.

• Liquidity was enhanced by securing $15 million and $20 million new loans, modifying term loan agreements, and appointing a Chief Restructuring Officer.

• Safety remained a priority, with only one minor OSHA recordable injury and continued strong HS&E performance.

Financial highlights

• Q2 2024 net loss attributable to shareholders was $53.8 million, improved from $81.4 million in Q2 2023, with Adjusted EBITDA loss of $22.4 million.

• Q2 2024 revenue was $750.1 million (Q2 2023: $734.9 million); gross profit was $0.2 million (Q2 2023: $-1.4 million).

• Total capital expenditures for Q2 were $11.3 million to $15 million, below prior guidance.

• Cash and equivalents as of June 30, 2024, were $18.8–$18.9 million; net debt was $284.9–$303.8 million.

• Interest expense for Q2 2024 was $17.7 million, down from $77.5 million in Q2 2023.

Outlook and guidance

• Q3 2024 Mobile Refinery throughput expected at 55,000–60,000 barrels per day (73%–80% capacity), with planned turnaround and hydrocracker conversion impacting throughput.

• Yield of high-value finished products projected at 64–68% for Q3.

• OpEx per barrel for Q3 forecasted between $5.52 and $6.02; capital expenditures expected at $15–$20 million, including $10 million for conversion costs.

• Throughput and margins expected to improve in Q4 2024 after conversion completion.

• Management is actively seeking to refinance the term loan and reduce costs; ability to continue as a going concern depends on successful refinancing or capital raising.