Vertex Energy Inc. (VTNR) shares surged 40.99% in after-hours on Tuesday, June 29, 2021, and closed the day at $14.48 per share. Earlier, in the morning session of Tuesday, VTNR’s stock gained 3.32% to close the session at $10.27 per share. VTNR shares have risen 1451.36% over the last 12 months, and they have moved up 39.73% in the past week. Over the past three months, the stock has gained 690.00%. The company has a current market of $479.61 million and its outstanding shares stood at 47.71 million.
Let’s have a look at its recent news and developments.
Agreement with Safety-Kleen Systems
On June 29, 2021, Vertex Energy, Inc entered into a definitive agreement to sell its portfolio of used motor oil collection and recycling assets to Safety-Kleen Systems, Inc.
Safety-Kleen will acquire the 69 million gallons per year Marrero used oil refinery in Louisiana; the 20 million gallons per year Heartland used oil refinery in Ohio; the H&H and Heartland used oil collections business; the Nickco oil filters and absorbent materials recycling facility in East Texas; and the Cedar Marine terminal in Baytown, Texas.
The total value of the deal is $140 million and is expected to close during the third quarter of 2021.
Inauguration on Russell Microcap(R) Index
Vertex Energy, Inc is set to join the Russell Microcap® Index after the 2021 Russell indexes annual reconstitution, effective after the US market opens on June 28, according to a preliminary list of additions posted June 4.
Acquisition of Alabama Refinery
On May 26, 2021, Vertex Energy, Inc entered into a definitive agreement to acquire the Mobile refinery for $75 million, 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.
New appointment
On May 18, 2021, Vertex Energy, Inc appointed Bart Rice as Division President of Renewable and Conventional Fuels for Vertex.
Rice has 40 years of energy industry experience and he joined Vertex in early 2000. Before joining Vertex, Rice served in executive leadership roles with Rice Oil, Allied Energy Company, Crystal Energy LLC, Division President of Emerge Energy Services LP and Joint Venture Partner with Lansing Trade Group and Andersons, Inc.
Financial results announcement
On May 13, 2021, Vertex Energy, Inc reported its financial results for the first quarter of 2021 ended March 31, 2021.
Q1 2021 financial highlights
- Vertex Energy reported anet income of $3.0 million in Q1 2021 compared to $2.4 million in Q1 2020.
- In Q1 2021, the company earned a revenue of $58.0 million compared to $36.2 million in Q1 2020.
- Total operating expenses were $8.4 million in the first quarter of 2021 compared to $7.16 million in Q1 2020.
- Net income attributable to Vertex Energy was $1.0 million compared to $2.8 million in Q1 2020.
- Income (loss) per share was $0.01 per basic and diluted share in Q1 2021 compared to $0.21 per basic and diluted share in Q1 2020.
- Adjusted EBITDA was$6.5 million in Q1 2021 compared to $1.65 million in Q1 2020.
- The company had total cash and availability on its lending facility of $12.5 million and $3.9 million on March 31, 2021.
Conclusion
The VTNR stock soared significantly on Tuesday after the company signed agreement to sell its used oil to Safety-Kleen which will generate more revenue for the company. The VTNR stock can further surge in the coming days.
