Vertex Energy Engages Investment Bank to Enhance Renewable Fuels and Sustainable Products Growth Strategy
October 16 2023 - 6:30AM
Business Wire
Vertex Energy, Inc. (NASDAQ: VTNR) ("Vertex" or the "Company"),
a leading specialty refiner and marketer of high-quality refined
products, today announced that it has formally named BofA
Securities, Inc. (“BofA”) as Vertex’s strategic financial advisor
to assist with the Company's renewable fuels and sustainable
products growth strategy.
During this engagement, the Company expects to review various
potential strategic transaction opportunities aimed at
strengthening the balance sheet to support growth acceleration and
asset development in line with the Company's forward trajectory as
an energy transition company. There can be no assurance that this
process will result in any transaction. Vertex has not set a
timetable for the completion of this process and does not intend to
comment further unless or until the Board of Directors has approved
a definitive course of action, or it is determined that other
disclosure is necessary or appropriate.
Benjamin P. Cowart, President and CEO of Vertex, stated,
“Scaling our renewable fuels and sustainable products strategy is a
top priority for us. As such, we are tightening our focus on
strategic initiatives and considering options that optimally
support our long-term vision. We believe BofA has the right tools
and expertise to help us transition into this next phase of
development for the Company."
About Vertex Energy
Vertex Energy is a leading energy transition company that
specializes in producing both renewable and conventional fuels. Our
innovative solutions are designed to enhance the performance of our
customers and partners while also prioritizing sustainability,
safety, and operational excellence. With a commitment to providing
superior products and services, Vertex Energy is dedicated to
shaping the future of the energy industry.
For further details, please visit www.vertexenergy.com.
Forward-Looking Statements
Certain of the matters discussed in this communication which are
not statements of historical fact constitute forward-looking
statements within the meaning of the securities laws, including the
Private Securities Litigation Reform Act of 1995, that involve a
number of risks and uncertainties. Words such as “strategy,”
“expects,” “continues,” “plans,” “anticipates,” “believes,”
“would,” “will,” “estimates,” “intends,” “projects,” “goals,”
“targets” and other words of similar meaning are intended to
identify forward-looking statements but are not the exclusive means
of identifying these statements. Any statements made in this news
release other than those of historical fact, about an action, event
or development, are forward-looking statements. The important
factors that may cause actual results and outcomes to differ
materially from those contained in such forward-looking statements
include, without limitation, statements concerning: the Company’s
engagement of BofA Securities, Inc.; the review and evaluation of
potential joint ventures, divestitures, acquisitions, mergers,
business combinations, or other strategic transactions and their
impact on shareholder value; the process by which the Company
engages in evaluation of strategic transactions; the Company’s
ability to identify potential partners; the outcome of potential
future strategic transactions and the terms thereof; the future
production of the Company’s Mobile Refinery; anticipated and
unforeseen events which could reduce future production at the
refinery or delay future capital projects, and changes in commodity
and credits values; throughput volumes, production rates, yields,
operating expenses and capital expenditures at the Mobile Refinery;
the timing of, and outcome of, the evaluation and associated carbon
intensity scoring of the Company’s feedstock blends by officials in
the state of California; the ability of the Company to obtain low
carbon fuel standard (LCFS) credits, and the amounts thereof; the
need for additional capital in the future, including, but not
limited to, in order to complete future capital projects and
satisfy liabilities, the Company’s ability to raise such capital in
the future, and the terms of such funding; the timing of capital
projects at the Company’s refinery located in Mobile, Alabama (the
“Mobile Refinery”) and the outcome of such projects; the future
production of the Mobile Refinery, including but not limited to,
renewable diesel production; estimated and actual production and
costs associated with the renewable diesel capital project;
estimated revenues, margins and expenses, over the course of the
agreement with Idemitsu; anticipated and unforeseen events which
could reduce future production at the Mobile Refinery or delay
planned and future capital projects; changes in commodity and
credits values; certain early termination rights associated with
third party agreements and conditions precedent to such agreements;
certain mandatory redemption provisions of the outstanding senior
convertible notes, the conversion rights associated therewith, and
dilution caused by conversions and/or the exchanges of convertible
notes; the Company’s ability to comply with required covenants
under outstanding senior notes and a term loan and pay amounts due
under such senior notes and term loan, including interest and other
amounts due thereunder; the ability of the Company to retain and
hire key personnel; the level of competition in the Company’s
industry and its ability to compete; the Company’s ability to
respond to changes in its industry; the loss of key personnel or
failure to attract, integrate and retain additional personnel; the
Company’s ability to protect intellectual property and not infringe
on others’ intellectual property; the Company’s ability to scale
its business; the Company’s ability to maintain supplier
relationships and obtain adequate supplies of feedstocks; the
Company’s ability to obtain and retain customers; the Company’s
ability to produce products at competitive rates; the Company’s
ability to execute its business strategy in a very competitive
environment; trends in, and the market for, the price of oil and
gas and alternative energy sources; the impact of inflation on
margins and costs; the volatile nature of the prices for oil and
gas caused by supply and demand, including volatility caused by the
ongoing Ukraine/Russia conflict and/or the Israel/Hamas conflict,
increased interest rates, recessions and inflation; the Company’s
ability to maintain relationships with partners; the outcome of
pending and potential future litigation, judgments and settlements;
rules and regulations making the Company’s operations more costly
or restrictive; volatility in the market price of compliance
credits (primarily Renewable Identification Numbers (RINs) needed
to comply with the Renewable Fuel Standard (“RFS”)) under renewable
and low-carbon fuel programs and emission credits needed under
other environmental emissions programs, the requirement for the
Company to purchase RINs in the secondary market to the extent it
does not generate sufficient RINs internally, liabilities
associated therewith and the timing, funding and costs of such
required purchases, if any; changes in environmental and other laws
and regulations and risks associated with such laws and
regulations; economic downturns both in the United States and
globally, changes in inflation and interest rates, increased costs
of borrowing associated therewith and potential declines in the
availability of such funding; risk of increased regulation of the
Company’s operations and products; disruptions in the
infrastructure that the Company and its partners rely on;
interruptions at the Company’s facilities; unexpected and expected
changes in the Company’s anticipated capital expenditures resulting
from unforeseen and expected required maintenance, repairs, or
upgrades; the Company’s ability to acquire and construct new
facilities; the Company’s ability to effectively manage growth;
decreases in global demand for, and the price of, oil, due to
inflation, recessions or other reasons, including declines in
economic activity or global conflicts; expected and unexpected
downtime at the Company’s facilities; the Company’s level of
indebtedness, which could affect its ability to fulfill its
obligations, impede the implementation of its strategy, and expose
the Company’s interest rate risk; dependence on third party
transportation services and pipelines; risks related to obtaining
required crude oil supplies, and the costs of such supplies;
counterparty credit and performance risk; unanticipated problems
at, or downtime effecting, the Company’s facilities and those
operated by third parties; risks relating to the Company’s hedging
activities or lack of hedging activities; and risks relating to
planned and future divestitures, asset sales, joint ventures and
acquisitions.
Other important factors that may cause actual results and
outcomes to differ materially from those contained in the
forward-looking statements included in this communication are
described in the Company’s publicly filed reports, including, but
not limited to, the Company’s Annual Report on Form 10‑K for the
year ended December 31, 2022, and the Company’s Quarterly Report on
Form 10-Q for the quarter ended June 30, 2023, and future Annual
Reports on Form 10-K and Quarterly Reports on Form 10-Q. These
reports are available at www.sec.gov. The Company cautions that the
foregoing list of important factors is not complete. All subsequent
written and oral forward-looking statements attributable to the
Company or any person acting on behalf of the Company are expressly
qualified in their entirety by the cautionary statements referenced
above. Other unknown or unpredictable factors also could have
material adverse effects on Vertex’s future results. The
forward-looking statements included in this press release are made
only as of the date hereof. Vertex cannot guarantee future results,
levels of activity, performance or achievements. Accordingly, you
should not place undue reliance on these forward-looking
statements. Finally, Vertex undertakes no obligation to update
these statements after the date of this release, except as required
by law, and takes no obligation to update or correct information
prepared by third parties that are not paid for by Vertex. If we
update one or more forward-looking statements, no inference should
be drawn that we will make additional updates with respect to those
or other forward-looking statements.
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