Vertex Energy — Q2 2024 Earnings Presentation
21 slides from Vertex Energy's earnings presentation, Aug 8, 2024
Slide 1: Second Quarter 2024 Results Summary Presentation
Second Quarter 2024 Results Summary Presentation August 2024
Slide 2: Disclaimer: 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: Disclaimer: Non-GAAP Financial 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 Highlights
2024 HIGHLIGHTS 4 Health and Safety Performance • Mobile Refinery had one OSHA Recordable Injury during Q2 2024, one environmental non - compliance, and zero Process Safety Events Focused on Operating Cost and Capital Management • Decreased selling, general and administrative expense by 6%, compared
Slide 5: 2Q24 Performance Indicators
2Q24 Performance Indicators COMPANY PERFORMANCE SUMMARY Second 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 d
Slide 6: Mobile Refinery Performance
Mobile Performance Indicators MOBILE REFINERY PERFORMANCE Second Quarter 2024 6 • Operated at 90% conventional capacity utilization in 2Q24, with total crude throughput of 67,758 barrels per day (bpd) • Conventional fuel business operations generated $35.0 million or $5.67 per barrel of fuel gross m
Slide 7: Future Curves Remain Backwardated
Future Curves Remain Backwardated 7 MACRO ECONOMIC INDICATORS Source: Argus as of 8/2/2024 ► Conventional refined fuels demand remains strong ► Distillate inventory levels remain below 5 - year average, gasoline inventory levels building ► Production levels in - line with historical averages ► Crude
Slide 8: Balance Sheet Update
BALANCE SHEET UPDATE Streamlining Of Balance Sheet Remains a Priority 8 Outstanding Debt Details ($/MM) Debt Maturity Schedule ($/MM) ► Current total long - term debt $303.8 million ► Current cash & equivalents $18.9 million ► Net long - term debt = $284.9 million ► Secured new $15 and $20 million l
Slide 9: Projected Financial Guidance: Third Quarter 2024 Outlook
Projected Financial Guidance FINANCIAL AND OPERATING GUIDANCE Third Quarter 2024 Outlook 9 Management Commentary • For the third quarter 2024, the Company expects the Mobile Refinery to generate total throughput of between 55,000 and 60,000 bpd, reflecting between 73% and 80% total conventional faci
Slide 10: Our Strategic Focus
OUR STRATEGIC FOCUS 10 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 11: Strategic Redirection: Optimization of Hydrocracking Capacity
STRATEGIC REDIRECTION Optimization of Hydrocracking Capacity from Renewables to Conventional Production 11 • During the third quarter of 2024, Vertex is executing on the redeployment of our hydrocracking unit to produce conventional fuels and hydrocracked VGO. • This pivot is utilizing a previously
Slide 12: Appendix
APPENDIX
Slide 13: Gross Profit to Adjusted Gross Margin and Fuel Gross Margin
NON - GAAP RECONCILIATION 13 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 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
NON - GAAP RECONCILIATION 16 Unaudited Reconciliation of EBITDA and Adjusted EBITDA to Net loss from Continued and Discontinued Operations In thousands June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Net income (loss) $ (53,845) $ (81,454) $ (71,699) $ (27,641) $
Slide 17: EBITDA and Adjusted EBITDA to Net Loss
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) $ (13,046) $ (23,438) $ 914 $ (35,570) $ (1,405) $ (16,870) $ (53,845) Depreciation and amortization 3,754
Slide 18: EBITDA and Adjusted EBITDA to Net Loss
NON - GAAP RECONCILIATION 18 Unaudited Reconciliation of EBITDA and Adjusted EBITDA to Net loss from Continued and Discontinued Operations In thousands Mobile Refinery Legacy Refining and Marketing Total Refining & Marketing Black Oil and Recovery Corporate Consolidated Net income (loss) $ (42,116)
Slide 19: EBITDA and Adjusted EBITDA to Net Loss
NON - GAAP RECONCILIATION 19 Unaudited Reconciliation of EBITDA and Adjusted EBITDA to Net loss from Continued and Discontinued Operations In thousands Conventional Renewable Net income (loss) $ 4,492 $ (45,596) $ 1,354 $ (39,750) $ (415) $ (31,534) $ (71,699) Depreciation and amortization 7,084 7,9
Slide 20: EBITDA and Adjusted EBITDA to Net Loss
NON - GAAP RECONCILIATION 20 Unaudited Reconciliation of EBITDA and Adjusted EBITDA to Net loss from Continued and Discontinued Operations In thousands Mobile Refinery Legacy Refining and Marketing Total Refining & Marketing Black Oil and Recovery Corporate Consolidated Net income (loss) $ (5,939) $
Slide 21: Long-Term Debt to Net Long-Term Debt and Net Leverage
NON - GAAP RECONCILIATION 21 Unaudited Reconciliation of Long - Term Debt to Net Long - Term Debt and Net Leverage Note: Net leverage is equal to Net Long - Term Debt divided by trailing twelve - month Adjusted EBITDA In thousands June 30, 2024 June 30, 2023 Long-Term Debt: Senior Convertible Note $