Vertex Energy: Mixed Messages

By republicmonews Team

Today we're highlighting Vertex Energy, Inc. Vertex is a $620 million Houston-based refiner and marketer of high-quality refined products.


In May 2021, this refinery announced it was purchasing Royal Dutch Shell's (RDS.A) 90,000 bpd Mobile refinery for $75 million to become a major regional distributor of renewable and conventional commodities. Deal closed 1 April.

Mobile's hydrocracking unit will be converted for an extra $85 million by year's end. The latest anticipated costs of that conversion are now in the $90 million to $100 million range.

This facility to create sustainable diesel fuel is slated to open in the first quarter of 2019.

To help finance this project, the business said it will sell its 69M gal/year Marrero and 20M gal/year Heartland used oil refineries to Clean Harbors' (CLH) Safety-Kleen subsidiary for $140 million in cash one month later.

These properties would have brought Safety-Kleen $100 million annually.

At the time of the Mobile refinery acquisition, management said the conversion could create $3 billion in revenue and $400 million in annual gross profit.