Vertex Energy — Q1 2024 Earnings Presentation
20 slides from Vertex Energy's earnings presentation, May 9, 2024
Slide 1: First Quarter 2024 Results Summary Presentation
First Quarter 2024 Results Summary Presentation May 2024
Slide 2: Forward-Looking Statements
DISCLAIMER Forward - looking statements 2 Forward - Looking Statements Certain of the matters discussed in this presentation which are not statements of historical fact constitute forward - looking sta tements within the meaning of the securities laws, including the Private Securities Litigation Ref
Slide 3: Non-GAAP Financial Measures and Key Performance Measures
DISCLAIMER Non - GAAP Financial Measures 3 Non - GAAP Financial Measures and Key Performance Measures In addition to our results calculated under generally accepted accounting principles in the United States (“GAAP”), in this p res entation we also present certain non - U.S. GAAP financial measures
Slide 4: 2024 YTD Highlights
2024 YTD HIGHLIGHTS 4 Continued Excellence in Safety • Mobile Refinery has achieved two years without any OSHA Recordable Injuries, while legacy refining operations have maintained more than a year with zero OSHA recordables. Strengthening Conventional Business • Significant margin improvements in Q
Slide 5: 1Q24 Performance Indicators
1Q24 Performance Indicators COMPANY PERFORMANCE SUMMARY First Quarter 2024 5 1. A full - reconciliation of GAAP to Non - GAAP metrics is provided in the appendix of this presentation 2. Net debt defined as total long - term debt outstanding less cash and equivalents 3. Net leverage defined as net de
Slide 6: Mobile Refinery Performance Indicators
Mobile Performance Indicators MOBILE REFINERY PERFORMANCE First Quarter 2024 6 • Operated at 85% conventional capacity utilization in 1Q24, with total crude throughput of 64,065 barrels per day (bpd). This was lower due to planned maintenance in the quarter. • Conventional fuel business operations g
Slide 7: Future Curves Remain Backwardated
Future Curves Remain Backwardated 7 MACRO ECONOMIC INDICATORS 4Q25 3Q25 2Q25 1Q25 4Q24 3Q24 2Q24 1Q24 4Q23 $1.95 $2.19 $2.27 $2.08 $2.04 $2.30 $2.38 $2.45 $2.33 Gasoline ($/gal) $2.31 $2.39 $2.39 $2.40 $2.40 $2.43 $2.45 $2.44 $2.90 ULSD ($/gal) $71.70 $72.64 $73.72 $74.92 $76.30 $77.72 $80.62 $76.05
Slide 8: Balance Sheet Update
BALANCE SHEET UPDATE Streamlining Of Balance Sheet Remains a Priority 8 Outstanding Debt Details ($/MM) Debt Maturity Schedule ($/MM) ► Current total long - term debt $284.3 million ► Current cash & equivalents $65.7 million ► Net long - term debt = $218.5 million ► Amended term loan provided an add
Slide 9: Price Risk Management
Price Risk Management COMMERCIAL HIGHLIGHTS Focused on Risk Management 9 • Distillate margin strengthened during 1Q • Executed ULSD crack swaps for February and March, locking in high distillate crack values • Sold 375k bbls per month for February and March • Position hedged 83% of our planned diese
Slide 10: Projected Financial Guidance: Second Quarter 2024 Outlook
Projected Financial Guidance FINANCIAL AND OPERATING GUIDANCE Second Quarter 2024 Outlook 10 Management Commentary • For the second quarter 2024, the Company expects the Mobile Refinery to generate total throughput of between 68,000 and 72,000 bpd, reflecting between 91% and 96% total conventional f
Slide 11: Our Strategic Focus
OUR STRATEGIC FOCUS 11 ASSET UTILIZATION • Flexible production at Mobile Refinery enhances long - term value • Continued strategic evaluation of opportunities aimed at driving Mobile Refinery profitability • Complementary assets in adjacent markets situated along the Gulf Coast MARGIN CAPITALIZATION
Slide 12: Strategic Redirection of Hydrocracking Capacity
STRATEGIC REDIRECTION Optimization of Hydrocracking Capacity from Renewables to Conventional Production 12 • During the second quarter of 2024, Vertex is pausing renewable fuels production and redirecting the hydrocracking unit to conventional fuels and products • The Company had a previously planne
Slide 13: Appendix
APPENDIX
Slide 14: Gross Profit to Adjusted Gross Margin and Fuel Gross Margin
NON - GAAP RECONCILIATION 14 Unaudited Reconciliation of Gross Profit (Loss) From Continued and Discontinued Operations to Adjusted Gross Margin, Fuel Gross Margin, Fuel Gross Margin Per Barrel of Throughput and Operating Expenses Per Barrel of Throughput. In thousands Conventional Renewable Mobile
Slide 15: Gross Profit to Adjusted Gross Margin and Fuel Gross Margin
NON - GAAP RECONCILIATION 15 Unaudited Reconciliation of Gross Profit (Loss) From Continued and Discontinued Operations to Adjusted Gross Margin, Fuel Gross Margin, Fuel Gross Margin Per Barrel of Throughput and Operating Expenses Per Barrel of Throughput. In thousands Conventional Renewable Mobile
Slide 16: EBITDA and Adjusted EBITDA to Net Loss from Operations
NON - GAAP RECONCILIATION 16 Unaudited Reconciliation of EBITDA and Adjusted EBITDA to Net loss from Continued and Discontinued Operations In thousands Conventional Renewable Net income (loss) $ 17,535 $ (22,157) $ 442 $ (4,180) $ 990 $ (14,664) $ (17,854) Depreciation and amortization 3,330 3,953 5
Slide 17: EBITDA and Adjusted EBITDA to Net Loss from Operations
NON - GAAP RECONCILIATION 17 Unaudited Reconciliation of EBITDA and Adjusted EBITDA to Net loss from Continued and Discontinued Operations In thousands Conventional Renewable Net income (loss) $ (11,112) $ (30,266) $ (2,424) $ (43,801) $ (1,670) $ (18,395) $ (63,865) Depreciation and amortization 3,
Slide 18: EBITDA and Adjusted EBITDA to Net Loss from Operations
NON - GAAP RECONCILIATION 18 Unaudited Reconciliation of EBITDA and Adjusted EBITDA to Net loss from Continued and Discontinued Operations In thousands Conventional Renewable Net income (loss) $ 49,932 $ (94,694) $ (4,782) $ (49,544) $ 48,246 $ (142,343) $ (143,641) Depreciation and amortization 14,
Slide 19: EBITDA and Adjusted EBITDA to Net Loss from Operations
NON - GAAP RECONCILIATION 19 Unaudited Reconciliation of EBITDA and Adjusted EBITDA to Net loss from Continued and Discontinued Operations In thousands March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 Net income (loss) $ (17,854) $ 53,813 $ (143,641) $ 56,619 Depreciation and amortization
Slide 20: Long-Term Debt to Net Long-Term Debt and Net Leverage
NON - GAAP RECONCILIATION 20 Unaudited Reconciliation of Long - Term Debt to Net Long - Term Debt and Net Leverage In thousands March 31, 2024 March 31, 2023 December 31, 2023 Long-Term Debt: Senior Convertible Note $ 15,230 $ 95,178 $ 15,230 Term Loan 2025 195,950 152,138 195,950 Promissory Note 2,