Vertex Energy Inc (NASDAQ: VTNR) was the biggest percentage gainer on Thursday with a jump of 124% and again the stock is moving with solid gains in the pre-market session. Moreover, the stock made a new high in the last trading session.
Market Action
As of 7:43, VTNR stock is skyrocketed by 55% to trade at $6.20. So far more than 1.20 million shares have exchanged hands.
Vertex Energy (VTNR) Released News Yesterday
- 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.
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