Vertex Energy Inc (NASDAQ:VTNR) is the biggest percentage gainer in pre-market trading on Thursday and all set to hit new highs.
As of 8:11, VTNR stock is skyrocketed by 98% to trade at $3.652. So far more than 7.75 million shares have exchanged hands.
Vertex Energy (VTNR) To Acquire Alabama Refinery and Related Logistics Assets
- announced that it has entered into a definitive agreement to acquire the Mobile refinery (“Mobile”) located in Mobile, Alabama from Equilon Enterprises LLC d/b/a Shell Oil Products US, Shell Oil Company and Shell Chemical LP (“Shell”), subsidiaries of Royal Dutch Shell plc, for $75 million. The transaction is expected to close during the fourth quarter 2021, subject to regulatory clearance and various closing conditions.
- Transformational acquisition of flagship refining asset and marine terminal. Vertex will become the sole owner and operator of the Mobile refinery upon closing. The refinery, which has a long track record of safe, reliable operations and consistent financial performance, will become Vertex’s flagship refining asset upon the close of the transaction, positioning the Company to become a pure-play producer of renewable and conventional products.
- Highly attractive transaction economics, pro-forma for renewable diesel fuel project. Following the successful completion of a planned $85 million conversion of the Mobile refinery’s hydrocracking unit by year-end 2022, Vertex anticipates that the refinery will have the potential to generate at least $3 billion in annual sales and $400 million of gross profit annually beginning in 2023, given current refining economics.
- Pathway to recapitalize balance sheet. This transaction provides a pathway to materially improve Vertex’s liquidity profile and reduce its weighted average cost of capital, over the medium-term.