Vertex Energy Provides Operational Update for Second Quarter 2023 - Seite 2

• Significant Downturn in Benchmark 2-1-1 Crack Spread – The Gulf Coast 2-1-1 crack spread for the second quarter 2023 averaged $23.61 per barrel, reflecting a 25.3% decline from the reported first quarter 2023 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.

Updated 2Q 2023 Guidance Summary

Operating Guidance

(as of 5/9/23)

(as of 7/25/23)

Operating Data:

 

 

Mobile Refinery Throughput Volume (Mbpd)¹

68-72

76

Capacity Utilization

94%

101%

Direct Operating Expense ($/bbl)

$3.80 - $4.00

$4.15 - $4.25

Capture Rate (%)²

50% - 54%

30% - 35%

Capex ($/MM)

$30 - $35

$30 - $35

 

 

Commodity Price Data:³

1Q23

 

2Q23

LLS Crude Oil ($/bbl)

$78.83

$75.64

GC 2-1-1 Crack Spread ($/bbl)

$31.59

$23.61

 

 

1. Preliminary actual throughput volume results (Mbpd = Thousand barrels per day)

2. Capture rate relates to benchmark Gulf Coast 2-1-1 Crack Spread

3. Commodity prices reflect average prices for the quarter

Benjamin P. Cowart, President and CEO of Vertex, stated, “We are pleased to report yet another milestone for our RD project: the validation of targeted throughput capacity for the renewable diesel plant at 8,000 barrels per day. We believe this is significant to our growth potential as it further demonstrates our team's ability to execute end-to-end project deliverables safely and reliably. On the conventional side, our crude refining operations delivered throughput volumes above 100% of stated operational capacity, despite anticipated supply disruptions during the quarter.” Mr. Cowart continued, "While the recent shifts in market conditions and forces outside of our control have negatively impacted our second-quarter profitability on conventional fuels, we continue to advance our feedstock and renewable fuels strategies with continued focus on longer-term value creation."