What happened
Shares of Vertex Energy (VTNR -4.15%) zoomed on Friday and were trading 10% higher as of 11 a.m. ET after the company projected better-than-expected throughput volumes for its third quarter. The energy stock hit a high of 15.2% in early-morning trading.
So what
Vertex Energy, which calls itself an "energy transition company," said it expects to report throughput volumes of 80,000 barrels per day (bpd) from its Alabama refinery for the third quarter. Vertex Energy previously projected volumes between 74,000 bpd and 77,000 bpd; it said the higher volumes were a result of the company's focus on strengthening its feedstock procurement program, which it initiated in the second quarter in response to supply chain challenges.
Vertex Energy also expects finished fuel products to account for 65% to 67% of its total production volumes in the third quarter, compared with the company's initial estimate of 59% to 63%.
Vertex Energy is primarily into refining and distributing crude oil and petroleum products and processes heavy and sour crude into products like regular gasoline, premium gasoline, heavy olefin feed, jet fuel, and diesel fuel. Vertex Energy also purchases feedstocks and refines them into products like pyrolysis gasoline and gasoline blendstock. It also recycles and refines used motor oil.
Now what
In yet another update today, Vertex Energy said it completed internal quality approvals for eight feedstock blends as of Sept. 30 and is now awaiting approval by the state of California. The company is focused on renewable fuels now and started commercial production of renewable diesel this past May. It sold its first batch of roughly 110,000 bpd of renewable diesel to a Japanese petroleum company in June.
