Vertex Energy Operational Outlook Update Q2 2023

Vertex Energy recently provided an update on its operational outlook for the second quarter of 2023.

Renewable Diesel Production

During the quarter, Vertex successfully achieved its targeted production capacity of 8,000 barrels per day (bpd) for renewable diesel. The company’s production optimization efforts have been guided by various factors such as commercial obligations and prevailing economic conditions. However, at this time, Vertex does not anticipate providing specific near-term throughput targets.

Conventional Throughput Volumes

In the second quarter, Vertex expects its conventional throughput volumes to surpass previous projections. The company anticipates approximately 76,000 bpd, which exceeds the previously forecasted range of 68,000-72,000 bpd. This increase in throughput volumes reflects proactive measures taken to mitigate expected disruptions to the supply chain during the quarter.

However, Vertex’s expected capture rate for the second quarter is anticipated to be between 30% and 35%, which is lower than the previously forecasted range of 50%-54%. This decrease in capture rate can be attributed to significant price volatility experienced in the fuels and refined product markets.

Operating Expenses

For the second quarter of 2023, Vertex estimates its operating expenses per barrel to be in the range of $4.15 to $4.25, representing a 7.6% increase compared to prior expectations at the mid-point. This rise in operating expenses is primarily due to additional overhead expenses resulting from the repair and restart of the renewable diesel feedstock pumping system as previously reported.

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