2023-07-25 11:32:01 ET
Vertex Energy ( NASDAQ: VTNR ) -21.5% in Tuesday's trading to its lowest since February 2022 after saying its fuels sold for lower prices in Q2 and guiding toward lower than expected oil refining margins for the quarter.
Vertex ( VTNR ) said its expected Q2 capture rate of 30%-35% is below the previously forecast 50%-54% range, reflecting significant price volatility in fuel markets.
The Gulf Coast 2-1-1 crack spread for Q2 averaged $23.61/bbl, 25% lower than the reported Q1 average of $31.59/bbl.
The company said it also experienced unexpected erosion in market prices for products, particularly Jet A and VGO, which fall outside of the benchmark Gulf Coast 2-1-1 crack spread.
Vertex ( VTNR ) also estimated Q2 operating expenses of $4.15-$4.25/bbl, or 7.6% above the midpoint of prior guidance, reflecting additional overhead expenses primarily driven by previously reported renewable diesel feedstock pumping system repair and restart; Q2 capital spending was reiterated at $30M-$35M.
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Vertex Energy plunges to lowest in 17 months on lower Q2 fuels prices