What is Vertex Energy Net Worth 2024: Revenue Breakdown and Key Factors

When analyzing Vertex Energy net worth, it’s important to delve deeper into the factors shaping the company’s financial performance in 2024.

At Ando Money, we explore how Vertex Energy’s shift towards conventional fuels and financial decisions are impacting their revenue and overall market standing.

This article covers key revenue sources and financial strategies. For more detailed insights, continue reading.

Quick Facts

What is the Net Worth/Market Cap Of Vertex Energy in 2024?

As of October 2024, Vertex Energy has a market capitalization of $4.87 million, placing it far below some of the industry’s giants.

While the company is navigating financial challenges with net losses and shifting strategies, it still holds a notable position in specialty refining and renewable energy.

When comparing Vertex Energy to larger companies, the gap in size and financial influence is apparent, especially against more stable corporations in the energy sector.

Below are a few competitors and partners in the same market:

• Marathon Petroleum
• Phillips 66
• ExxonMobil
• Chevron
• Valero Energy
• BP
• Shell
• HollyFrontier
• PBF Energy
• Delek US

For those interested in learning more about financial titans, explore the most valuable companies across industries.

Vertex Energy Financial Performance Overview

Revenue Breakdown for 2024

In 2024, Vertex Energy generated $1.445 billion in revenue. This figure reflects the company’s focus on its core products and services, particularly the production of conventional fuels like gasoline, diesel, and jet fuel.

The Mobile Refinery played a central role, with a throughput of 67,758 barrels per day (bpd) for conventional fuels and 3,092 bpd for renewable diesel.

The shift from renewable to conventional fuel production, a strategic pivot initiated in the first quarter of 2024, has affected revenue generation.

The company ceased renewable fuels production to focus on conventional outputs, contributing to the revenue numbers.

Key Factors Impacting Revenue Growth

Hydrocracking capacity and the transition back to conventional fuels significantly impacted Vertex Energy’s revenue in 2024.

By optimizing the Mobile Refinery for conventional throughput, Vertex aimed to capture better margins. However, this shift comes with challenges.

The company’s previous focus on renewable diesel production has seen diminishing returns, particularly with the 28% decrease in crack spreads, which negatively impacted margins across all products.

Additionally, cost management became a priority as Vertex faced higher operational costs related to the shift in refining strategy.

The total gross profit dropped, further highlighting the impact of the market conditions on revenue growth.

Operating Costs and Their Effect on Finances

Vertex Energy worked diligently to reduce operating costs in 2024, but variable production costs remained a factor affecting overall financial performance.

The direct operating expense per barrel for conventional throughput was $2.59 in the second quarter, contributing to a reduction in overall profitability.

This marks a slight improvement from the first quarter’s cost of $2.75 per barrel.

Despite these efforts, the company’s operating expenses per barrel of throughput remained a significant factor, leading to diminished profit margins.

This has become a key area for future improvements as the company looks to control costs better.

Debt and Financing Activities Impacting Liquidity

Vertex Energy’s debt management became a focal point in 2024, particularly as it secured two new loans, totaling $35 million.

The company’s total debt stood at $303.8 million as of June 30, 2024, creating a need for stringent liquidity management.

The company’s net debt position is further amplified by limited cash reserves, with only $18.9 million in cash and cash equivalents.

This financial strain has influenced the company’s strategic decision-making, pushing it towards considering alternative financing options and debt restructuring.

The appointment of Seth Bullock as Chief Restructuring Officer underscores Vertex Energy’s commitment to improving its liquidity and financial health.

Mobile Refinery Throughput

The Mobile Refinery has been a major contributor to Vertex Energy’s financial output in 2024.

The facility processed 67,758 bpd in conventional fuels, generating a fuel gross margin of $35 million in the second quarter alone.

The refinery’s production of gasoline, diesel, and jet fuel accounted for the majority of this throughput, making up 64% of the total production.

On the renewable side, the refinery processed 3,092 bpd of renewable diesel, but this segment has not been as profitable, with a gross loss of $11.8 million in the second quarter.

This loss has influenced the company’s decision to pause renewable operations and focus on conventional fuel production.

Factors Affecting Gross Profit Margins

Gross profit margins for Vertex Energy have been affected by several factors in 2024. The most significant is the decline in crack spreads, which fell by 28% compared to the previous quarter.

This decrease led to a drop in fuel gross margins, from $12.63 per barrel in the first quarter to $5.67 per barrel in the second quarter.

Furthermore, the company’s shift in production strategy from renewable to conventional fuels, while necessary, has led to higher short-term costs, exacerbating the pressure on gross profit margins.

Cash Flow and Financial Health of the Company

Vertex Energy’s cash flow remains a challenge. With cash and cash equivalents totaling $18.9 million, and substantial debt obligations, the company’s liquidity remains tight.

The balance sheet shows a total asset base of $772.37 million, but liabilities weigh heavily, particularly with $197.2 million of short-term debt.

The company’s strategic focus on controlling costs and optimizing throughput will be critical in stabilizing its financial health moving forward.

Future Outlook and Strategic Financial Planning

Looking ahead, Vertex Energy is set to continue its pivot towards conventional fuel production, with the goal of improving margins and reducing costs.

The company’s future capital management plans, including further debt restructuring, will likely play a significant role in shaping its financial health over the coming quarters.

FAQs About Vertex Energy

How did Vertex Energy perform financially in 2024?

In 2024, it reported $1.445 billion in revenue but faced significant net losses, totaling ($53.8 million) for the second quarter. The company is focusing on improving its operational efficiency.

What products does Vertex Energy produce?

It primarily produces gasoline, diesel, and jet fuel from conventional refining processes. The company also has renewable diesel production capabilities, though this segment has been less profitable in recent quarters.

What are Vertex Energy’s key financial challenges?

Its key financial challenges include rising debt, with total debt reaching $303.8 million in 2024. Additionally, the company has faced declining margins due to a 28% drop in crack spreads.

How has Vertex Energy’s strategy shifted in 2024?

In 2024, it shifted its focus from renewable fuels to conventional fuel production.

This strategic pivot is aimed at capturing better margins in the conventional fuel market while pausing renewable operations.

Conclusion

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