Vertex Energy Inc (VTNR) Stock Almost Doubles After Company Sells Refinery For $35 Million

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Shares of Vertex Energy Inc (NASDAQ:VTNR) are up significantly today after it has been announced that Clean Harbors (NYSE:CLH) has purchased Vertex Energy’s Churchill County, Nevada refinery facility for $35 million. Considering that the market capital for Vertex Energy is just $59.25 million, this is a huge deal for the company as well as their investors.

“This transaction benefits Vertex Energy in a variety of ways, not the least of which is by strengthening our balance sheet,” explained Vertex Energy CEO Benjamin Cowart. “As we noted in our third quarter Form 10-Q filing and on the conference call that followed, the Churchill County facility had an average carrying cost of $1.5 million per quarter. We eliminate those costs with this transaction. At the end of the third quarter of 2015, our cash and cash equivalents were over $4 million. This sale and related transactions will bring that cash position to more than $10 million. We also used $16 million of sale proceeds to pay down our term debt. While the sale of our re-refinery in Nevada will lessen our footprint in the western U.S., the swap agreement and base oil agreements that were entered into as part of the sale should allow us to improve logistic costs and provide us with a long-term off-take agreement for base oil and finished lubricants to support our business strategy going forward.”

The stock is up 92.79% or $1.03 following the news, hitting $2.14 per share. About 548,066 shares traded hands or up 837.99% from the average. VTNR has declined 55.60% since June 29, 2015 and is currently downtrending. It has underperformed the S&P500 by 48.09%.

Vertex Energy, Inc. is an environmental services firm that recycles industrial waste streams and off-specification commercial chemical products. The company has a market cap of $43.07 million. The Firm is engaged in activities across the entire petroleum recycling value chain, including collection, aggregation, transportation, storage, re-refinement and sales of aggregated feedstock and re-refined products to end users. It currently has negative earnings.

#focuskw=’Vertex Energy Inc (NASDAQ:VTNR)’##metadesc=’Shares of Vertex Energy Inc (NASDAQ:VTNR) are up significantly today after it has been announced that Clean Harbors (NYSE:CLH) has purchased Vertex Energy’s Churchill County, Nevada refinery facility for $35 million. Considering that the market capital for Vertex Energy is just $59.25 million, this is a huge deal for the company as well as their investors.

“This transaction benefits Vertex Energy in a variety of ways, not the least of which is by strengthening our balance sheet,” explained Vertex Energy CEO Benjamin Cowart. “As we noted in our third quarter Form 10-Q filing and on the conference call that followed, the Churchill County facility had an average carrying cost of $1.5 million per quarter. We eliminate those costs with this transaction. At the end of the third quarter of 2015, our cash and cash equivalents were over $4 million. This sale and related transactions will bring that cash position to more than $10 million. We also used $16 million of sale proceeds to pay down our term debt. While the sale of our re-refinery in Nevada will lessen our footprint in the western U.S., the swap agreement and base oil agreements that were entered into as part of the sale should allow us to improve logistic costs and provide us with a long-term off-take agreement for base oil and finished lubricants to support our business strategy going forward.”

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