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Vertex Energy (VTNR)

Vertex Energy Inc. is a middle market consolidator, refiner and re-refiner of distressed petroleum streams, such as used oil, transmix, fuel oils and off-specification commercial chemical products.

Company profile

Ticker
VTNR
Exchange
CEO
Benjamin Cowart
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
Former names
VOICE POWERED TECHNOLOGY INTERNATIONAL INC, WORLD WASTE TECHNOLOGIES INC
SEC CIK
Subsidiaries
Vertex Energy • Vertex Refining LA, LLC • Vertex Recovery Management, LLC • Vertex Recovery Management LA, LLC • Vertex Splitter Corporation • Vertex Refining Myrtle Grove LLC • HPRM LLC • Crystal Energy, LLC • Vertex Acquisition Sub, LLC • Leverage Lubricant, LLC ...
IRS number
943439569

VTNR stock data

Analyst ratings and price targets

Last 3 months
Current price
Average target
$16.50
Low target
$15.00
High target
$18.00
HC Wainwright & Co.
Maintains
Buy
$15.00
10 Aug 22
Oppenheimer
Initiated
Outperform
$18.00
8 Jul 22

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

8 Aug 22
18 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 98.01M 98.01M 98.01M 98.01M 98.01M 98.01M
Cash burn (monthly) 8.84M (no burn) 27.21M 8.71M 3.91M 1.53M
Cash used (since last report) 14.57M n/a 44.83M 14.34M 6.44M 2.53M
Cash remaining 83.44M n/a 53.18M 83.67M 91.58M 95.49M
Runway (months of cash) 9.4 n/a 2.0 9.6 23.4 62.3

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
9 Aug 22 Cowart Benjamin P Common Stock Sell Dispose S No Yes 8.29 71,133 589.69K 405,119
20 Jul 22 Cowart Benjamin P Common Stock Sell Dispose S No Yes 11.33 71,132 805.93K 476,252
12 Jul 22 Cowart Benjamin P Common Stock Sell Dispose S No Yes 10.38 71,133 738.36K 547,384
58.5% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 136 111 +22.5%
Opened positions 58 40 +45.0%
Closed positions 33 14 +135.7%
Increased positions 38 31 +22.6%
Reduced positions 26 24 +8.3%
13F shares Current Prev Q Change
Total value 402.98M 249.51M +61.5%
Total shares 44.2M 30.89M +43.1%
Total puts 2.15M 2.55M -15.8%
Total calls 2.1M 3.38M -37.7%
Total put/call ratio 1.0 0.8 +35.1%
Largest owners Shares Value Change
STT State Street 7.2M $75.73M +4698.1%
Cowart Benjamin P 5.85M $5.68M 0.0%
BLK Blackrock 3.48M $36.59M +95.5%
Vanguard 2.49M $26.17M +24.7%
Trellus Management 2.13M $22.37M 0.0%
Bunker One 1.64M $11.1M 0.0%
Aventail Capital 1.58M $16.62M -34.2%
Driehaus Capital Management 1.32M $13.87M NEW
MS Morgan Stanley 1.3M $13.66M +68.1%
Susquehanna International 966.24K $10.17M +225.9%
Largest transactions Shares Bought/sold Change
STT State Street 7.2M +7.05M +4698.1%
BLK Blackrock 3.48M +1.7M +95.5%
Driehaus Capital Management 1.32M +1.32M NEW
Tensile Capital Management 0 -1.11M EXIT
D. E. Shaw & Co. 819.76K -1.01M -55.2%
ExodusPoint Capital Management 0 -888.08K EXIT
Aventail Capital 1.58M -822.9K -34.2%
Rafferty Asset Management 690.3K +690.3K NEW
Susquehanna International 966.24K +669.73K +225.9%
WFC Wells Fargo & Co. 854.61K +639.25K +296.8%

Financial report summary

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Risks
  • Our ability to service our indebtedness will depend on our ability to generate cash in the future.
  • Our obligations under the Loan and Security Agreement and Supply and Offtake Agreement are secured by a first priority security interest in substantially all of our assets and various Company guarantees.
  • Our arrangement with Macquarie exposes us to Macquarie-related credit and performance risk as well as potential refinancing risks.
  • If we are unable to obtain crude oil supplies for our Mobile Refinery without the benefit of certain intermediation agreements, the capital required to finance our crude oil supply could negatively impact our liquidity.
  • An increase in interest rates will cause our debt service obligations to increase.
  • Economic uncertainty may affect our access to capital and/or increase the costs of such capital.
  • Unanticipated problems at, or downtime effecting, our facilities and those operated by third parties on which we rely, could have a material adverse effect on our results of operations.
  • Unanticipated problems or delays, or increases in costs, in connection with the ongoing capital project at the newly acquired Mobile Refinery may harm our business and viability.
  • We may be unable to sell our UMO Business.
  • Claims above our insurance limits, or significant increases in our insurance premiums, may reduce our profitability.
  • Our hedging activities have in the past and may in the future prevent us from benefiting fully from increases in oil prices and may expose us to other risks, including counterparty risk.
  • We depend on certain third-party pipelines for transportation of feedstocks and products, and if these pipelines become unavailable to us, our revenues and cash available for payment of our debt obligations could decline.
  • We make capital expenditures in our facilities to maintain their reliability and efficiency. If we are unable to complete capital projects at their expected costs and/or in a timely manner, or if the market conditions assumed in our projected economics deteriorate, results of operations or cash flows could be adversely affected.
  • From time to time, we may seek to divest portions of our business, which could materially affect our results of operations and result in disruption to other parts of the business.
  • The prices of crude oil and refined and finished lubricant products materially affect our profitability, and are dependent upon many factors that are beyond our control, including general market demand and economic conditions, seasonal and weather-related factors, regional and grade differentials and governmental regulations and policies.
  • To successfully operate our facilities, we are required to expend significant amounts for capital outlays and operating expenditures. If we are unable to complete capital projects at their expected costs or in a timely manner, or if the market conditions assumed in our project economics deteriorate, our financial condition, results of operations, or cash flows could be materially and adversely affected.
  • Competition in the refining industry is intense, and an increase in competition in the markets in which we sell our products could adversely affect our earnings and profitability.
  • The market for our lubricants is highly competitive and requires us to continuously develop and introduce new products and product enhancements.
  • A material decrease in the supply, or a material increase in the price, of crude oil or other raw materials or equipment available to our refineries and other facilities could significantly reduce our production levels and negatively affect our operations.
  • We depend upon Shell for a substantial portion of the crude supply and distribution network that serve our Mobile Refinery.
  • We may be negatively impacted by inflation.
  • Large capital projects can take many years to complete, and the political and regulatory environments or other market conditions may change or deteriorate over time, negatively impacting project returns.
  • Our industry and the broader US economy have experienced higher than expected inflationary pressures in the first and second quarters of 2022, related to continued supply chain disruptions, labor shortages and geopolitical instability. Should these conditions persist our business, results of operations and cash flows could be materially and adversely affected.
  • We may incur significant environmental remediation costs and liabilities in the operation of our refineries, facilities, terminals and related facilities.
  • The nature of our operations exposes us, and the communities in which we work, to a wide range of health, safety, security and environment risks.
  • Our outstanding options and convertible securities may adversely affect the trading price of our common stock.
  • The Warrants have certain anti-dilutive rights, put and call rights upon the occurrence of a fundamental transaction, and include a limitation on the number of shares of common stock which may be issued upon exercise thereof without shareholder approval.
  • We face significant penalties and damages in the event a registration statement registering the resale of the shares of common stock issuable upon exercise of the Warrants is not available for the sale of such shares.
Management Discussion
  • Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
  •     This information should be read in conjunction with the interim unaudited financial statements and the notes thereto included in this Quarterly Report on Form 10-Q, and the audited financial statements and notes thereto and “Part II”, “Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission on March 14, 2022 (the “Annual Report”). The majority of the numbers presented below are rounded numbers and should be considered as approximate.
  •     Certain capitalized terms used below and otherwise defined below, have the meanings given to such terms in the footnotes to our unaudited consolidated financial statements included above under “Part I - Financial Information” - “Item 1. Financial Statements”.

Content analysis

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