Vertex Energy Provides Operational Update for Second Quarter 2023

Vertex Energy, Inc. (NASDAQ: VTNR) ("Vertex" or “the Company"), a leading specialty refiner and marketer of high-quality refined products, today provided an update to its financial and operational outlook for the second quarter of 2023.

Renewable Diesel Maximum Production Target Achieved

Production of renewable diesel achieved the Phase I installed capacity target of 8,000 bpd during the second quarter, as anticipated. The validation of maximum throughput capacity provides important data related to the Company's strategic approach for long-term optimization of the project. Currently, the Company continues to optimize production levels based on factors including commercial obligations and prevailing economic conditions, and does not anticipate providing near-term throughput targets at this time.

Second Quarter Conventional Throughput Volumes Expected to Exceed Prior Projections

Reported throughput volumes at the Company’s Mobile, Alabama Refinery (the “Mobile Refinery”) for the second quarter of 2023 are expected to be approximately 76,000 barrels per day (bpd), exceeding management’s prior expectations of 68,000 bpd to 72,000 bpd. Throughput volumes for the second quarter of 2023 reflect the ongoing consistency and reliability of operations at the Mobile Facility and effective supply chain management of crude oil feedstock supplies.

The prior forecast included an anticipated disruption to feedstock supply by certain vendors. Vertex’s feedstock procurement team successfully minimized the impact of the supply disruption event by actively sourcing alternative short-term supplies and effective inventory management.

Operating expenses per barrel for the second quarter of 2023 are estimated to total between $4.15 to $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 $30-$35 million, in-line with prior expectations.

Second Quarter Capture Rate Negatively Impacted by Unhedged Market Exposure, and Commodity Price Volatility

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.