Form 8-K - Current report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): August 9, 2023

VERTEX ENERGY, INC.

(Exact name of registrant as specified in its charter)

Nevada	001-11476	94-3439569
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1331 Gemini Street

Suite 250

Houston, Texas

77058

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (866) 660-8156

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock,

$0.001 Par Value Per Share

VTNR

The NASDAQ
Stock Market LLC

(Nasdaq Capital Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02

Results of Operations and Financial Condition.

On August 9, 2023, Vertex Energy, Inc. (“Vertex” or the “Company”) issued a press release and will hold a conference call regarding its financial results for the three and six months ended June 30, 2023. A copy of the press release, which includes information on the conference call and a summary of such financial results is furnished as Exhibit 99.1 to this Form 8-K and incorporated herein by reference. Additionally, a copy of a presentation which will be discussed on the earnings call is furnished as Exhibit 99.2 to this Form 8-K and is incorporated herein by reference, and has also been posted to the Company’s website at https://www.vertexenergy.com/presentation, although the Company reserves the right to discontinue that availability at any time.

The information contained in this Current Report and Exhibits 99.1 and 99.2 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended or the Exchange Act, except as expressly set forth by specific reference in such a filing.

The Company is making reference to non-GAAP financial information in the press release, presentation, and the conference call. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release and presentation.

Item 9.01

Financial Statements and Exhibits.

Exhibit No.		Description

99.1*		Press Release of Vertex Energy, Inc., dated August 9, 2023
99.2*		Second Quarter 2023 Earnings Call Presentation
104		Inline XBRL for the cover page of this Current Report on Form 8-K

* Furnished herewith.

The inclusion of any website address in this Form 8-K, and any exhibit thereto, is intended to be an inactive textual reference only and not an active hyperlink. The information contained in, or that can be accessed through, such website is not part of or incorporated into this Form 8-K.

Forward-Looking Statements

This Current Report on Form 8-K, including the press release and presentation furnished as Exhibits 99.1 and 99.2, respectively, to this Current Report on Form 8-K, contains forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and assumptions. You can identify these forward-looking statements by words such as “may,” “should,” “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan” and other similar expressions. These forward-looking statements relate to the Company’s current expectations and are subject to the limitations and qualifications set forth in the press release and presentation as well as in the Company’s other filings with the Securities and Exchange Commission, including, without limitation, that actual events and/or results may differ materially from those projected in such forward-looking statements. These statements also involve known and unknown risks, which may cause the results of the Company, its divisions and concepts to be materially different than those expressed or implied in such statements, including those referenced in the press release. Accordingly, readers should not place undue reliance on any forward-looking statements. Forward-looking statements may include comments as to the Company’s beliefs and expectations as to future financial performance, events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the Company’s control. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Cautionary Statement Regarding Forward-Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the SEC and available at www.sec.gov and in the “Investor Relations” – “SEC Filings” section of the Company’s website at www.vertexenergy.com. Forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as otherwise provided by law.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	VERTEX ENERGY, INC.

Date: August 9, 2023	By:	/s/ Chris Carlson
		Chris Carlson
		Chief Financial Officer

VERTEX ENERGY, INC. 8-K

EXHIBIT 99.1

Vertex Energy Announces Second Quarter 2023 Results

HOUSTON, TX / BUSINESSWIRE / August 9, 2023 / Vertex Energy, Inc. (NASDAQ: VTNR) (“Vertex” or the “Company”), a leading specialty refiner and marketer of high-quality refined products, today announced its financial results for the second quarter ended June 30, 2023.

The Company will host a conference call to discuss second quarter 2023 results today at 8:30 A.M. Eastern Time, details are included at the end of this release.

SECOND QUARTER 2023 HIGHLIGHTS

●

Reported net loss attributable to common shareholders of $(81.4) million, or $(1.03) per basic share

●

Reported Adjusted EBITDA of $(34.2) million

●

Continued safe operation of the Company’s Mobile, Alabama refinery (the “Mobile Refinery”) with second quarter 2023 conventional throughput of 76,330 barrels per day (bpd), above prior guidance

●

Renewable diesel (RD) facility repair and start-up successfully completed with targeted Phase I throughput capacity of 8,000 bpd demonstrated during the quarter

●

Lower conventional refining margins driven by weakness in market prices for refined fuels and additional costs incurred during RD repair and start-up procedure

●

Total cash and cash equivalents of $52.1 million including restricted cash of $3.6 million as of June 30, 2023

Vertex reported second quarter 2023 net loss attributable to common shareholders of $(81.4) million, or $(1.03) per basic share, versus a net loss attributable to common shareholders of $(67.0) million, or $(0.99) per basic share for the second quarter of 2022. Adjusted EBITDA (see “Non-GAAP Financial Measures”, below) was $(34.2) million for the second quarter 2023, compared to Adjusted EBITDA of $71.3 million in the prior-year period. Financial results for the second quarter of 2023 include a non-cash, one-time interest expense in the amount of $63.0 million related to the recent privately negotiated exchange of approximately $79.9 million of Vertex’s Senior Secured 6.25% Convertible Notes Due 2027, which closed on June 12, 2023. Schedules reconciling the Company’s generally accepted accounting principles in the United States (“GAAP”) and non-GAAP financial results, including Adjusted EBITDA are included later in this release (see also “Non-GAAP Financial Measures”, below).

MANAGEMENT COMMENTARY

“During the second quarter, we made considerable progress in developing our broader strategic vision of creating a vertically integrated renewable fuels company,” stated Benjamin P. Cowart, President and CEO of Vertex, who continued, “While short-term profitability on the conventional fuels refining business was negatively impacted by a combination of deterioration in market conditions and the added expense associated with the start-up of our renewable diesel facility, we successfully achieved several important strategic milestones through establishing RD production, accelerating our feedstock strategy, and improving balance sheet efficiency, which we believe will help drive greater long-term shareholder value for the company.”

SEGMENT PERFORMANCE

MOBILE REFINERY OPERATIONS

The Mobile Refinery operations generated a gross profit (loss) of ($6.4) million and $52.7 million of fuel gross margin (a non-GAAP measure) or $7.34 per barrel during the second quarter 2023, versus generating a gross profit of $65.5 million, and fuel gross margin (a non-GAAP measure) of $103.8 million, or $16.17 per barrel of fuel gross margin in the first quarter of 2023. Adjusting for the impact of $3.66 of Renewable Identification Number (RIN) expense per barrel, RIN adjusted fuel gross margin at the Mobile Refinery was $27.3 million, or $3.68 per barrel for the second quarter of 2023, versus $87.7 million, or $13.66 per barrel of RIN adjusted fuel gross margin in the first quarter of 2023. On an adjusted fuel gross margin per barrel basis, including the impact of renewable diesel production, the Mobile Refinery captured 31% of the Gulf Coast 2-1-1 crack spread. Adjusting for the partial production period of renewable diesel and limited revenue contribution during the quarter, the Mobile Refinery generated a conventional only fuel gross margin per barrel of 34%.

The decline in adjusted fuel gross margin per barrel and resulting deterioration in reported capture rate of the benchmark Gulf Coast 2-1-1 crack spread was attributed to a decline in margins for refined products, compounded by approximately $20 million of one-time expenses incurred as a result of the repair and resumed start-up procedures of the Company’s renewable diesel facility during the quarter. The benchmark Gulf Coast 2-1-1 crack spread decreased from $31.59 per barrel in the first quarter of 2023 to $23.60 in the second quarter, while pricing for refined products outside of the benchmark crack spread, such as Jet fuel, which experienced significant pressure during the second quarter of 2023.

Financial results for the Mobile Refinery reported for the second quarter of 2023 reflect the combined contribution of conventional fuels refining operations, as well as the operation of the Company’s renewable diesel facility which began production on May 27^th. The partial production period and limited revenue recorded from the renewable diesel facility, compounded by the additional expenses incurred for the repair of feedstock pumping systems, as well as typical one-time start-up expenses, had a disproportionate negative impact on overall refining profitability during the quarter and we believe this does not reflect the state of operating profitability for the facility longer-term.

Total throughput at the Mobile Refinery was 78,820 bpd in the second quarter of 2023, including 76,330 bpd of conventional and 2,490 bpd of renewable throughput, respectively. Total production of finished high-value, light products, such as gasoline, diesel and jet fuel, represented approximately 61% of the total production in the second quarter of 2023, vs. 62% in the first quarter 2023, as anticipated. Changes in the Company’s product yield profile have led to a higher percentage of products not accounted for in the benchmark Gulf Coast 2-1-1 crack spread. Consequently, this has caused the reported capture rate of the benchmark crack spread to vary significantly.

Third Quarter 2023 Mobile Refinery Financial and Operating Results ($/millions unless otherwise noted)

SEGMENT PERFORMANCE

	1Q23	2Q23	2023 YTD	%Q/Q
Total Throughput (bpd)¹	71,328	78,820	75,095	11%
Total Production (MMbbl)¹	6.24	7.19	13.43	15%
Conventional Facility Capacity Utilization²	95.1%	*101.8%*	98.5%

Total Operating Expense	$26.5	*$30.4*	$55.1	15%

Operating Expenses Per Barrel ($/bbl)	$3.84	$4.23	$4.05	10%

Fuel gross margin	$103.8	$52.7	$156.5	-49%

RIN expense³	$16.1	$25.4	$41.5	58%

RIN Adjusted Fuel Gross Margin	$87.7	$27.3	$115.0	-69%

Fuel Gross Margin Per Barrel ($/bbl)	$16.17	$7.34	$11.51	-55%

RIN expense Per Barrel ($/bbl)	$2.51	$3.66	$3.05	46%

RIN Adjusted Fuel Gross Margin Per Barrel of Throughput	$13.66	$3.68	$8.46	-73%

Gulf Coast 2-1-1 Crack Spread	$31.59	$23.60	$27.59	-25%
Capture Rate⁵	53.0%	33.9%	39.4%	-36%
Adjusted Capture Rate	43.2%	*15.6%*	30.7%	-64%

Production Yield
Gasoline (bpd)	15,723	17,812	16,774	13%
% Production	22.7%	*23.2%*	22.6%
ULSD (bpd)	14,720	15,618	15,171	6%
% Production	21.2%	*20.3%*	20.4%
Jet (bpd)	12,789	13,570	13,182	6%
% Production	18.4%	*17.7%*	17.8%
Other⁴	26,119	29,828	27,983	14%
% Production	37.7%	*37.7%*	37.7%
Renewable diesel	0	2,208	1,110	0%
% Production	0.0%	*2.8%*	1.5%
Total Production (bpd)	69,351	79,036	74,220	14%
Total Production (MMbbl)	6.24	7.19	13.43	15%

1.) Includes soybean oil throughput of 2,490 bpd and 1.252 MMbbl for 2Q23 and YTD, respectively

2.) Assumes 75,000 barrels per day of conventional operational capacity

3.) RIN: Renewable identification number

4.) Other includes naphtha, intermediates, and LPG

5.) Capture rate reflects conventional fuels gross margin only

Renewable Diesel Facility

Renewable diesel production facility successfully started following system repairs. Vertex’s previously disclosed failure in the renewable diesel feedstock pumping system was successfully repaired on-time, with facility start-up procedures successfully completed on May 27th. During the quarter, production volumes of renewable diesel were steadily increased to expected Phase 1 target capacity of approximately 8,000 barrels per day.

Feedstock Supply Strategy Advanced. Recent operation and testing of the renewable diesel facility demonstrated stable operations at designed rates with yields at or better than targets. The shorter than anticipated break in period of the renewable diesel facility, combined with deteriorating economics of refined, bleached, deodorized (“RBD”) soybean oil feedstock during the quarter drove an acceleration of the Company’s deployment of its longer-term feedstock optimization strategy. The Company recently introduced Distillers Corn Oil or “DCO” into its feedstock blend last week and has advanced a combination of eight different feedstock blends through its feedstock approval process over the last six weeks.

Balance Sheet and Liquidity Update

As of June 30, 2023, Vertex had total debt outstanding of $327.4 million, including lease obligations of $162.1 million. The Company had total cash and equivalents of $52.1 million including $3.6 million of restricted cash on the balance sheet as of June 30, 2023, for a net debt position of $275.3 million. The ratio of net debt to trailing twelve month Adjusted EBITDA was 3.6 times as of June 30, 2023.

On June 12, 2023, the Company successfully executed the exchange of approximately $79.9 million principal amount of its 6.25% Senior Secured Convertible due 2027 into 17.2 million shares of common stock. The Company currently has $15.2 million of remaining principal outstanding in its 6.25% Senior Secured Convertible notes.

Management Outlook

All guidance presented below is current as of the time of this release and is subject to change. All prior financial guidance should no longer be relied upon.

Third Quarter 2023 Financial and Operating Outlook:

	3Q 2023
Operational:	Low			High
Mobile Refinery Conventional Throughput Volume (Mbpd)		74.0			77.0
Capacity Utilization		99	%		103	%
Production Yield Profile
Finished Products¹		59	%		63	%
Intermediate & Other Products²		41	%		37	%

Financial Guidance:
Direct Operating Expense ($/bbl)	$	3.60		$	3.80
Capital Expenditures ($/MM)	$	20		$	25

1.) Finished products include gasoline, ULSD, and Jet A

2.) Intermediate & Other products include VGO, LPGs, VTB

CONFERENCE CALL AND WEBCAST DETAILS

A conference call will be held today, August 9, 2023 at 8:30 A.M. Eastern Time to review the Company’s financial results, discuss recent events and conduct a question-and-answer session. An audio webcast of the conference call and accompanying presentation materials will also be available in the “Events and Presentation” section of Vertex’s website at www.vertexenergy.com. To listen to a live broadcast, visit the site at least 15 minutes prior to the scheduled start time in order to register, download, and install any necessary audio software.

To participate in the live teleconference:

Domestic: 1-877-407-0784
International: 1-201-689-8560

To listen to a replay of the teleconference, which will be available through August 15, 2023, either go to the Events and Presentation section of Vertex’s website at www.vertexenergy.com, or call the number below:

Domestic Replay: 1-844-512-2921
International: 1-412-317-6671

Access ID: 13739964

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.

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, the Company’s projected Outlook for the third quarter of 2023, as discussed above; 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 planned 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 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, increased interest rates, recessions and increased 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, increases 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.

PROJECTIONS

The financial projections (the “Projections”) included herein were prepared by Vertex in good faith using assumptions believed to be reasonable. A significant number of assumptions about the operations of the business of Vertex were based, in part, on economic, competitive, and general business conditions prevailing at the time the Projections were developed. Any future changes in these conditions, may materially impact the ability of Vertex to achieve the financial results set forth in the Projections. The Projections are based on numerous assumptions, including realization of the operating strategy of Vertex; industry performance; no material adverse changes in applicable legislation or regulations, or the administration thereof, or generally accepted accounting principles; general business and economic conditions; competition; retention of key management and other key employees; absence of material contingent or unliquidated litigation, indemnity, or other claims; minimal changes in current pricing; static material and equipment pricing; no significant increases in interest rates or inflation; and other matters, many of which will be beyond the control of Vertex, and some or all of which may not materialize. The Projections also assume the continued uptime of the Company’s facilities at historical levels and the successful funding of, timely completion of, and successful outcome of, planned capital projects. Additionally, to the extent that the assumptions inherent in the Projections are based upon future business decisions and objectives, they are subject to change. Although the Projections are presented with numerical specificity and are based on reasonable expectations developed by Vertex’s management, the assumptions and estimates underlying the Projections are subject to significant business, economic, and competitive uncertainties and contingencies, many of which will be beyond the control of Vertex. Accordingly, the Projections are only estimates and are necessarily speculative in nature. It is expected that some or all of the assumptions in the Projections will not be realized and that actual results will vary from the Projections. Such variations may be material and may increase over time. In light of the foregoing, readers are cautioned not to place undue reliance on the Projections. The projected financial information contained herein should not be regarded as a representation or warranty by Vertex, its management, advisors, or any other person that the Projections can or will be achieved. Vertex cautions that the Projections are speculative in nature and based upon subjective decisions and assumptions. As a result, the Projections should not be relied on as necessarily predictive of actual future events.

NON-GAAP FINANCIAL MEASURES

The Non-GAAP Financial Measures are presented because we believe they provide additional useful information to investors due to the various noncash items during the period. We believe that the Non-GAAP Financial Measures are also frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We use the Non-GAAP Financial Measures as supplements to GAAP measures of performance to evaluate the effectiveness of our business strategies, to make budgeting decisions, to allocate resources and to compare our performance relative to our peers. Additionally, these measures, when used in conjunction with related GAAP financial measures, provide investors with an additional financial analytical framework which management uses, in addition to historical operating results, as the basis for financial, operational and planning decisions and present measurements that third parties have indicated are useful in assessing the Company and its results of operations. The Non-GAAP Financial Measures are unaudited, and have limitations as analytical tools, and you should not consider them in isolation, or as a substitute for analysis of our operating results as reported under GAAP. Some of these limitations are: the Non-GAAP Financial Measures do not reflect cash expenditures, or future requirements for capital expenditures, or contractual commitments; the Non-GAAP Financial Measures do not reflect changes in, or cash requirements for, capital expenditures or working capital needs; the Non-GAAP Financial Measures do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on debt or cash income tax payments; although depreciation and amortization are noncash charges, the assets being depreciated and amortized will often have to be replaced in the future, the Non-GAAP Financial Measures do not reflect any cash requirements for such replacements; Adjusted EBITDA, Adjusted Gross Margin, Fuel Gross Margin and RIN Adjusted Fuel Gross Margin represent only a portion of our total operating results; and other companies in this industry may calculate the Non-GAAP Financial Measures differently than we do, limiting their usefulness as a comparative measure. The Company’s presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. We compensate for these limitations by providing a reconciliation of each of these non-GAAP measures to the most comparable GAAP measure. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measure. For more information on these non-GAAP financial measures, please see the sections titled “Unaudited Reconciliation of Gross Profit (Loss) From Continued and Discontinued Operations to Adjusted Gross Margin, Fuel Gross Margin, Fuel Gross Margin Per Barrel of Throughput, Operating Expenses Per Barrel of Throughput, RIN Adjusted Fuel Gross Margin and RIN Adjusted Fuel Gross Margin Per Barrel of Throughput”, “Unaudited Reconciliation of Adjusted EBITDA to Net loss from Continued and Discontinued Operations”, and “Unaudited Reconciliation of Long-Term Debt to Net Long-Term Debt and Ratio of Net Debt”, at the end of this release.

CONTACT:

IR@vertexenergy.com

203-682-8284

VERTEX ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except number of shares and par value)

(UNAUDITED)

	June 30, 2023			December 31, 2022
ASSETS
Current assets
Cash and cash equivalents	$	48,532		$	141,258
Restricted cash		3,603			4,929
Accounts receivable, net		50,995			34,548
Inventory		215,672			135,473
Prepaid expenses and other current assets		52,929			36,660
Assets held for sale, current		—			20,560
Total current assets		371,731			373,428

Fixed assets, net		298,112			201,749
Finance lease right-of-use assets		66,301			44,081
Operating lease right-of use assets		92,502			53,557
Intangible assets, net		12,241			11,827
Deferred taxes assets		10,975			2,498
Other assets		3,338			2,245
TOTAL ASSETS	$	855,200		$	689,385

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	41,373		$	20,997
Accrued expenses		87,642			81,711
Finance lease liability-current		2,320			1,363
Operating lease liability-current		25,588			9,012
Current portion of long-term debt, net		18,245			13,911
Obligations under inventory financing agreements, net		162,096			117,939
Derivative commodity liability		3,357			242
Liabilities held for sale, current		—			3,424
Total current liabilities		340,621			248,599

Long-term debt, net		123,653			170,010
Finance lease liability-long-term		67,290			45,164
Operating lease liability-long-term		66,914			44,545
Deferred tax liabilities		—			—
Derivative warrant liability		13,855			14,270
Other liabilities		1,377			1,377
Total liabilities		613,710			523,965

COMMITMENTS AND CONTINGENCIES (Note 4)		—			—

STOCKHOLDERS’ EQUITY

Common stock, $0.001 par value per share; 750,000,000 shares authorized; 93,236,563 and 75,668,826 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively.		93			76
Additional paid-in capital		381,776			279,552
Accumulated deficit		(143,431	)		(115,893	)
Total Vertex Energy, Inc. stockholders’ equity		238,438			163,735
Non-controlling interest		3,052			1,685
Total equity		241,490			165,420
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	855,200		$	689,385

VERTEX ENERGY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(UNAUDITED)

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Revenues	$	734,893		$	1,029,369		$	1,426,035		$	1,103,906
Cost of revenues (exclusive of depreciation and amortization shown separately below)		729,649			1,007,143			1,349,001			1,068,133
Depreciation and amortization attributable to costs of revenues		6,630			4,063			10,967			5,090
Gross profit (loss)		(1,386	)		18,163			66,067			30,683

Operating expenses:
Selling, general and administrative expenses (exclusive of depreciation and amortization shown separately below)		42,636			40,748			84,578			52,897
Depreciation and amortization attributable to operating expenses		1,028			1,127			2,044			1,536
Total operating expenses		43,664			41,875			86,622			54,433
Loss from operations		(45,050	)		(23,712	)		(20,555	)		(23,750	)
Other income (expense):
Other income (loss)		(496	)		171			1,156			643
Gain (loss) on change in value of derivative warrant liability		9,600			(945	)		415			(4,524	)
Interest expense		(77,536	)		(47,712	)		(90,013	)		(51,933	)
Total other expense		(68,432	)		(48,486	)		(88,442	)		(55,814	)
Loss from continuing operations before income tax		(113,482	)		(72,198	)		(108,997	)		(79,564	)
Income tax benefit (expense)		28,688			—			27,676			—
Loss from continuing operations		(84,794	)		(72,198	)		(81,321	)		(79,564	)
Income from discontinued operations, net of tax (see note 23)		3,340			8,416			53,680			14,973
Net loss		(81,454	)		(63,782	)		(27,641	)		(64,591	)
Net income (loss) attributable to non-controlling interest and redeemable non-controlling interest from continuing operations		(53	)		137			(103	)		64
Net income attributable to non-controlling interest and redeemable non-controlling interest from discontinued operations		—			3,050			—			6,862
Net loss attributable to Vertex Energy, Inc.		(81,401	)		(66,969	)		(27,538	)		(71,517	)

Accretion of redeemable noncontrolling interest to redemption value from continued operations		—			(7	)		—			(428	)

Net loss attributable to common stockholders from continuing operations		(84,741	)		(72,342	)		(81,218	)		(80,056	)
Net income attributable to common stockholders from discontinued operations, net of tax		3,340			5,366			53,680			8,111
Net loss attributable to common shareholders	$	(81,401	)	$	(66,976	)	$	(27,538	)	$	(71,945	)

Basic loss per common share
Continuing operations	$	(1.07	)	$	(1.07	)	$	(1.05	)	$	(1.22	)
Discontinued operations, net of tax		0.04			0.08			0.69			0.12
Basic loss per common share	$	(1.03	)	$	(0.99	)	$	(0.36	)	$	(1.10	)

Shares used in computing earnings per share
Basic		79,519			67,923			77,615			65,660
Diluted		79,519			67,923			77,615			65,660

VERTEX ENERGY, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands, except par value)

(UNAUDITED)

Six Months Ended June 30, 2023
	Common Stock				Series A Preferred
	Shares		$0.001 Par		Shares		$0.001 Par		Additional Paid-In Capital		Retained Earnings			Non-controlling Interest			Total Equity
Balance on January 1, 2023		75,669	$	76		—	$	—	$	279,552	$	(115,893	)	$	1,685		$	165,420
Exercise of options		166		—		—		—		209		—			—			209
Stock based compensation expense		—		—		—		—		365		—			—			365
Non-controlling shareholder contribution		—		—		—		—		—		—			980			980
Net income (loss)		—		—		—		—		—		53,863			(50	)		53,813
Balance on March 31, 2023		75,835		76		—		—		280,126		(62,030	)		2,615			220,787
Exercise of options		195		—		—		—		169		—			—			169
Stock based compensation expense		—		—		—		—		368		—			—			368
Senior Note Converted		17,207		17		—		—		101,113		—			—			101,130
Non-controlling shareholder contribution		—		—		—		—		—		—			490			490
Net loss		—		—		—		—		—		(81,401	)		(53	)		(81,454	)
Balance on June 30, 2023		93,237	$	93		—	$	—	$	381,776	$	(143,431	)	$	3,052		$	241,490

Six Months Ended June 30, 2022
	Common Stock				Series A Preferred
	Shares		$0.001 Par		Shares			$0.001 Par		Additional Paid-In Capital			Retained Earnings			Non-controlling Interest			Total Equity
Balance on January 1, 2022		63,288	$	63		386		$	—	$	138,620		$	(110,614	)	$	1,997		$	30,066
Exercise of options		60		—		—			—		76			—			—			76
Exercise of warrants		1,113		1		—			—		(1	)		—			—			—
Stock based compensation expense		—		—		—			—		250			—			—			250
Conversion of Series A Preferred stock to common		5		—		(5	)		—		—			—			—			—
Equity component of the convertible note issuance, net		—		—		—			—		78,789			—			—			78,789
Accretion of redeemable non-controlling interest to redemption value		—		—		—			—		—			(422	)		—			(422	)
Net income (loss)		—		—		—			—		—			(4,547	)		3,739			(808	)
Less: amount attributable to redeemable non-controlling interest		—		—		—			—		—			—			(3,769	)		(3,769	)
Balance on March 31, 2022		64,466		64		381			—		217,734			(115,583	)		1,967			104,182
Exercise of options to common		498		1		—			—		553			—			—			554
Exercise of options to common- unissued		—		—		—			—		3			—			—			3
Distribution to non-controlling shareholder		—		—		—			—		—			—			(380	)		(380	)
Adjustment of redeemable non-controlling interest		—		—		—			—		29			(29	)		—			—
Conversion of Convertible Senior Notes to common		10,164		10		—			—		59,812			—			—			59,822
Share based compensation expense		—		—		—			—		324			—			—			324
Conversion of Series A Preferred stock to common		381		1		(381	)		—		—			—			—			1
Accretion of redeemable non-controlling interest to redemption value		—		—		—			—		—			(6	)		—			(6	)
Net income (loss)		—		—		—			—		—			(66,970	)		3,188			(63,782	)
Less: amount attributable to redeemable non-controlling interest		—		—		—			—		—			—			(3,023	)		(3,023	)
Balance on June 30, 2022		75,509	$	76		—		$	—	$	278,455		$	(182,588	)	$	1,752		$	97,695

VERTEX ENERGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

(UNAUDITED)	Six Months Ended June 30,
	2023			2022
Cash flows from operating activities
Net loss	$	(27,641	)	$	(64,591	)
Income from discontinued operations, net of tax		53,680			14,973
Loss from continuing operations		(81,321	)		(79,564	)
Adjustments to reconcile net loss from continuing operations to cash used in operating activities
Stock based compensation expense		733			574
Depreciation and amortization		13,011			6,626
Deferred income tax benefit		(27,676	)		—
Gain on sale of assets		(2	)		(83	)
Provision for environment clean up		—			1,429
Increase in allowance for bad debt		93			432
(Decrease) increase in fair value of derivative warrant liability		(415	)		4,524
Loss on commodity derivative contracts		2,123			98,274
Net cash settlements on commodity derivatives		1,269			(70,951	)
Amortization of debt discount and deferred costs		70,948			40,001
Changes in operating assets and liabilities
Accounts receivable and other receivables		(18,589	)		(89,207	)
Inventory		(80,199	)		(65,679	)
Prepaid expenses and other current assets		(16,546	)		(18,613	)
Accounts payable		20,376			44,561
Accrued expenses		5,932			27,171
Other assets		(1,090	)		29
Net cash used in operating activities from continuing operations		(111,353	)		(100,476	)
Cash flows from investing activities
Purchase of intangible assets		(2,500	)		(106	)
Investment in Mobile Refinery assets		—			(227,525	)
Purchase of fixed assets		(105,344	)		(2,150	)
Proceeds from sale of discontinued operation		92,034			—
Proceeds from sale of fixed assets		5			157
Net cash used in investing activities from continuing operations		(15,805	)		(229,624	)
Cash flows from financing activities
Payments on finance leases		(908	)		(402	)
Proceeds from exercise of options and warrants to common stock		378			633
Distributions to noncontrolling interest		—			(380	)
Contributions received from noncontrolling interest		1,470			—
Net change on inventory financing agreements		43,657			172,607
Redemption of noncontrolling interest		—			(50,666	)
Proceeds from note payable		13,081			165,718
Payments on note payable		(24,422	)		(7,716	)
Net cash provided by financing activities from continuing operations		33,256			279,794

Discontinued operations:
Net cash provided by (used in) operating activities		(150	)		12,476
Net cash used in investing activities		—			(783	)
Net cash provided by (used in) discontinued operations		(150	)		11,693

Net decrease in cash, cash equivalents and restricted cash		(94,052	)		(38,613	)
Cash, cash equivalents, and restricted cash at beginning of the period		146,187			136,627
Cash, cash equivalents, and restricted cash at end of period	$	52,135		$	98,014

VERTEX ENERGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(UNAUDITED)

(Continued)

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to the same amounts shown in the consolidated statements of cash flows (in thousands).

	Six Months Ended
	June 30, 2023		June 30, 2022

Cash and cash equivalents	$	48,532	$	97,914
Restricted cash		3,603		100
Cash and cash equivalents and restricted cash as shown in the consolidated statements of cash flows	$	52,135	$	98,014

SUPPLEMENTAL INFORMATION
Cash paid for interest	$	24,755	$	51,950
Cash paid for taxes	$	—	$	—

NON-CASH INVESTING AND FINANCING TRANSACTIONS
Equity component of the convertible note issuance	$	—	$	78,789
ROU assets obtained from new finance lease obligation	$	23,990	$	45,096
Exchange of Convertible Senior Notes to common stock	$	79,948	$	59,822
ROU assets obtained from new operating lease obligation	$	38,945	$	—
Accretion of redeemable non-controlling interest to redemption value	$	—	$	428

Unaudited segment information for the three and six months ended June 30, 2023 and 2022 is as follows (in thousands):

Three Months Ended June 30, 2023
	Refining & Marketing			Black Oil & Recovery			Corporate and Eliminations			Total
Revenues:
Refined products	$	492,109		$	21,797		$	149		$	514,055
Re-refined products		215,508			3,536			(2,560	)		216,484
Services		3,802			552			—			4,354
Total revenues		711,419			25,885			(2,411	)		734,893
Cost of revenues (exclusive of depreciation and amortization shown separately below)		710,958			23,263			(4,572	)		729,649
Depreciation and amortization attributable to costs of revenues		5,568			1,062			—			6,630
Gross profit (loss)		(5,107	)		1,560			2,161			(1,386	)
Selling, general and administrative expenses		32,969			4,504			5,163			42,636
Depreciation and amortization attributable to operating expenses		822			38			168			1,028
Loss from operations	$	(38,898	)	$	(2,982	)	$	(3,170	)	$	(45,050	)

Capital expenditures	$	27,762		$	2,827		$	—		$	30,589

Three Months Ended June 30, 2022
	Refining & Marketing			Black Oil & Recovery		Corporate and Eliminations			Total
Revenues:
Refined products	$	719,607		$	56,520	$	—		$	776,127
Re-refined products		244,476			5,956		—			250,432
Services		2,307			503		—			2,810
Total revenues		966,390			62,979		—			1,029,369
Cost of revenues (exclusive of depreciation and amortization shown separately below)		959,684			47,459		—			1,007,143
Depreciation and amortization attributable to costs of revenues		3,105			958		—			4,063
Gross profit		3,601			14,562		—			18,163
Selling, general and administrative expenses		23,679			4,199		12,870			40,748
Depreciation and amortization attributable to operating expenses		829			46		252			1,127
Income (loss) from operations	$	(20,907	)	$	10,317	$	(13,122	)	$	(23,712	)

Capital expenditures	$	1,568		$	194	$	—		$	1,762

Six Months Ended June 30, 2023
	Refining & Marketing		Black Oil & Recovery			Corporate and Eliminations			Total
Revenues:
Refined products	$	964,661	$	51,220		$	(570	)	$	1,015,311
Re-refined products		400,352		7,947			(4,573	)		403,726
Services		5,734		1,264			—			6,998
Total revenues		1,370,747		60,431			(5,143	)		1,426,035
Cost of revenues (exclusive of depreciation and amortization shown separately below)		1,300,770		53,681			(5,450	)		1,349,001
Depreciation and amortization attributable to costs of revenues		8,862		2,105			—			10,967
Gross profit		61,115		4,645			307			66,067
Selling, general and administrative expenses		59,455		9,303			15,820			84,578
Depreciation and amortization attributable to operating expenses		1,630		76			338			2,044
Income (loss) from operations	$	30	$	(4,734	)	$	(15,851	)	$	(20,555	)

Capital expenditures	$	97,670	$	7,674		$	—		$	105,344

Six Months Ended June 30, 2022
	Refining & Marketing			Black Oil & Recovery		Corporate and Eliminations			Total
Revenues:
Refined products	$	749,063		$	91,471	$	—		$	840,534
Re-refined products		249,739			10,272		—			260,011
Services		2,307			1,054		—			3,361
Total revenues		1,001,109			102,797		—			1,103,906
Cost of revenues (exclusive of depreciation and amortization shown separately below)		992,770			75,363		—			1,068,133
Depreciation and amortization attributable to costs of revenues		3,228			1,862		—			5,090
Gross profit		5,111			25,572		—			30,683
Selling, general and administrative expenses		24,804			8,322		19,771			52,897
Depreciation and amortization attributable to operating expenses		934			104		498			1,536
Income (loss) from operations	$	(20,627	)	$	17,146	$	(20,269	)	$	(23,750	)

Capital expenditures	$	1,956		$	194	$	—		$	2,150

The following summarized unaudited financial information has been segregated from continuing operations and reported as discontinued operations for the three and six months ended June 30, 2023, and 2022 (in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
	2023		2022			2023			2022
Revenues	$	—	$	23,832		$	7,366		$	42,759
Cost of revenues (exclusive of depreciation shown separately below)		—		12,735			4,589			22,918
Depreciation and amortization attributable to costs of revenues		—		391			124			782
Gross profit		—		10,706			2,653			19,059
Operating expenses:
Selling, general and administrative expenses (exclusive of depreciation shown separately below)		—		2,220			632			3,938
Depreciation and amortization expense attributable to operating expenses		—		62			21			125
Total operating expenses		—		2,282			653			4,063
Income from operations		—		8,424			2,000			14,996
Other income (expense)
Interest expense		—		(8	)		—			(23	)
Total other expense		—		(8	)		—			(23	)
Income before income tax		—		8,416			2,000			14,973
Income tax expense		—		—			(528	)		—
Gain on sale of discontinued operations, net of $1,453 and $18,671 of tax for three and six months ended June 30, 2023		3,340		—			52,208			—
Income from discontinued operations, net of tax	$	3,340	$	8,416		$	53,680		$	14,973

Unaudited Reconciliation of Gross Profit (Loss) From Continued and Discontinued Operations to Adjusted Gross Margin, Fuel Gross Margin, Fuel Gross Margin Per Barrel of Throughput, Operating Expenses Per Barrel of Throughput, RIN Adjusted Fuel Gross Margin and RIN Adjusted Fuel Gross Margin Per Barrel of Throughput

Three Months Ended March 31, 2023

In thousands		Mobile Refinery
Gross profit	$	65,470
Unrealized (gain) loss on hedging activities	$	(570	)
Inventory valuation adjustments		(1,532	)
Adjusted gross margin	$	63,368
Variable production costs attributable to cost of revenues		21,252
Depreciation and amortization attributable to cost of revenues		3,144
RINs		16,115
Realized (gain) loss on hedging activities		(439	)
Financing costs		2,295
Other revenues		(1,933	)
Fuel gross margin	$	103,802
Throughput (bpd)		71,328
Fuel gross margin per barrel of throughput	$	16.17
Adjusted gross margin per barrel of throughput	$	9.87
Variable production costs per barrel of throughput	$	3.31
Operating expenses per barrel of throughput	$	3.84
RIN Adjusted Fuel Gross Margin per barrel of throughput	$	13.66

Three Months Ended June 30, 2023

In thousands		Mobile Refinery
Gross profit	$	(6,462	)
Unrealized (gain) loss on hedging activities	$	3,762
Inventory valuation adjustments		(501	)
Adjusted gross margin	$	(3,201	)
Variable production costs attributable to cost of revenues		28,763
Depreciation and amortization attributable to cost of revenues		5,369
RINs		25,410
Realized (gain) loss on hedging activities		138
Financing costs		(29	)
Other revenues		(3,800	)
Fuel gross margin	$	52,650
Throughput (bpd)		78,820
Fuel gross margin per barrel of throughput	$	7.34
Adjusted gross margin per barrel of throughput	$	(0.45	)
Variable production costs per barrel of throughput	$	4.01
Operating expenses per barrel of throughput	$	4.23
RIN Adjusted Fuel Gross Margin per barrel of throughput	$	3.68

Six Months Ended June 30, 2023
In thousands	Mobile Refinery
Gross profit	$	59,008
Unrealized (gain) loss on hedging activities	$	3,192
Inventory valuation adjustments		(2,033	)
Adjusted gross margin	$	60,167
Variable production costs attributable to cost of revenues		50,015
Depreciation and amortization attributable to cost of revenues		8,513
RINs		41,525
Realized (gain) loss on hedging activities		(301	)
Financing costs		2,266
Other revenues		(5,733	)
Fuel gross margin	$	156,452
Throughput (bpd)		75,095
Fuel gross margin per barrel of throughput	$	11.51
Adjusted gross margin per barrel of throughput	$	4.43
Variable production costs per barrel of throughput	$	3.68
Operating expenses per barrel of throughput	$	4.05
RIN Adjusted Fuel Gross Margin per barrel of throughput	$	8.46

Unaudited Reconciliation of Adjusted EBITDA to Net loss from Continued and Discontinued Operations

In thousands	Three Months Ended						Six Months Ended						Twelve Months Ended
	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Net income (loss)	$	(81,454	)	$	(63,781	)	$	(27,641	)	$	(64,590	)	$	38,947		$	(59,260	)
Depreciation and amortization		7,658			5,644			13,156			7,534			24,541			11,367
Income tax expense (benefit)		(27,236	)		—			(8,477	)		—			(10,966	)		—
Interest expense		77,536			47,719			90,013			51,954			118,008			55,351
EBITDA	$	(23,496	)	$	(10,418	)	$	67,051		$	(5,102	)	$	170,530		$	7,458
Unrealized (gain) loss on hedging activities		3,370			46,901			3,115			46,633			(43,664	)		46,528
Inventory valuation adjustments		(501	)		23,180			(2,033	)		23,180			25,553			23,180
Gain on change in value of derivative warrant liability		(9,600	)		945			(415	)		4,524			(12,760	)		(3,078	)
Stock-based compensation		368			324.00			733.00			574			1,733			1,081
(Gain) loss on sale of assets		(4,291	)		0			(72,032	)		(415	)		(71,109	)		(625	)
Acquisition costs		—			9,078			4,308.00			13,638			7,197			17,203
Enviromental clean-up		—			1,428			—			1,428			—			1,428
Other		—			(147	)		—			(147	)		(3	)		2,106
Adjusted EBITDA	$	(34,150	)	$	71,291		$	727		$	84,313		$	77,477		$	95,281

	Three Months Ended June 30, 2023
In thousands	Mobile Refinery			Legacy Refining & Marketing			Total Refining & Marketing			Black Oil and Recovery			Corporate			Consolidated
Net income (loss)	$	(42,116	)	$	(1,312	)	$	(43,428	)	$	(3,667	)	$	(34,359	)	$	(81,454	)
Depreciation and amortization		6,119			272			6,391			1,100			167			7,658
Income tax expense (benefit)		—			—			—			—			(27,236	)		(27,236	)
Interest expense		4,529			—			4,529			28			72,979			77,536
EBITDA	$	(31,468	)	$	(1,040	)	$	(32,508	)	$	(2,539	)	$	11,551		$	(23,496	)
Unrealized (gain) loss on hedging activities		3,762			25			3,787			(417	)		—			3,370
Inventory valuation adjustments		(501	)		—			(501	)		—			—			(501	)
Gain on change in value of derivative warrant liability		—			—			—			—			(9,600	)		(9,600	)
Stock-based compensation		—			—			—			—			368			368
(Gain) loss on sale of assets		—			—			—			499			(4,790	)		(4,291	)
Acquisition costs		—			—			—			—			—			—
Adjusted EBITDA	$	(28,207	)	$	(1,015	)	$	(29,222	)	$	(2,457	)	$	(2,471	)	$	(34,150	)

	Six Months Ended June 30, 2023
In thousands	Mobile Refinery			Legacy Refining & Marketing			Total Refining & Marketing			Black Oil and Recovery			Corporate			Consolidated
Net income (loss)	$	(5,939	)	$	(2,437	)	$	(8,376	)	$	(1,663	)	$	(17,602	)	$	(27,641	)
Depreciation and amortization		9,999			494			10,493			2,326			337			13,156
Income tax expense (benefit)		—			—			—			—			(8,477	)		(8,477	)
Interest expense		8,405			—			8,405			85			81,523			90,013
EBITDA	$	12,465		$	(1,943	)	$	10,522		$	748		$	55,781		$	67,051
Unrealized (gain) loss on hedging activities		3,192			(42	)		3,150			(35	)		—			3,115
Inventory valuation adjustments		(2,033	)		—			(2,033	)		—			—			(2,033	)
Gain on change in value of derivative warrant liability		—			—			—			—			(415	)		(415	)
Stock-based compensation		—			—			—			—			733			733
(Gain) loss on sale of assets		—			—			—			(1,156	)		(70,876	)		(72,032	)
Acquisition costs		—			—			—			—			4,308			4,308
Adjusted EBITDA	$	13,624		$	(1,985	)	$	11,639		$	(443	)	$	(10,469	)	$	727

	Six Months Ended June 30, 2022
In thousands	Mobile Refinery			Legacy Refining & Marketing		Total Refining & Marketing			Black Oil and Recovery			Corporate			Consolidated
Net income (loss)	$	(23,961	)	$	290	$	(23,671	)	$	(26,015	)	$	(14,904	)	$	(64,590	)
Depreciation and amortization		3,722			251		3,973			3,315			246			7,534
Income tax expense (benefit)		—			—		—			—			—			—
Interest expense		3,250			—		3,250			44,469			4,235			51,954
EBITDA	$	(16,989	)	$	541	$	(16,448	)	$	21,769		$	(10,423	)	$	(5,102	)
Unrealized (gain) loss on hedging activities		46,901			—		46,901			(268.00	)		—			46,633
Inventory valuation adjustments		23,180			—		23,180			—			—			23,180
Gain on change in value of derivative warrant liability		—			—		—			945.00			3,579			4,524
Stock-based compensation		—			—		—			324.00			250			574
(Gain) loss on sale of assets		—			—		—			(415	)		—			(415	)
Acquisition costs		9,078			—		9,078			—			4,560			13,638
Enviromental clean-up		1,428			—		1,428			—			—			1,428
Other		(19	)		—		(19	)		(128.00	)		—			(147	)
Adjusted EBITDA	$	63,579		$	541	$	64,120		$	22,227		$	(2,034	)	$	84,313

Unaudited Reconciliation of Long-Term Debt to Net Long-Term Debt and Ratio of Net Debt

In thousands	As of
	June 30, 2023			June 30, 2022			December 31, 2022
Long-Term Debt:
Senior Convertible Note	$	15,230		$	41,543		$	95,178
Term Loan 2025		150,075			165,000			165,000
Finance lease liability long-term		67,290			44,640			45,164
Finance lease liability short-term		2,320			652			1,363
Operating lease liability long-term		66,914			3,816			44,545
Operating lease liability short-term		25,588			953			9,012
Long-Term Debt and Lease Obligations	$	327,417		$	256,604		$	360,262
Unamortized discount and deferred financing costs		(33,402	)		(37,035	)		(81,918	)
Insurance premiums financed		9,995			9,236			5,602
Long-Term Debt and Lease Obligations per Balance Sheet	$	304,010		$	228,805		$	283,946
Cash and Cash Equivalents		(48,532	)		(97,914	)		(141,248	)
Restricted Cash		(3,603	)		(100	)		(4,929	)
Total Cash and Cash Equivalents	$	(52,135	)	$	(98,014	)	$	(146,177	)
Net Long-Term Debt	$	275,282		$	158,590		$	214,085
Adjusted EBITDA	$	77,477		$	95,280		$	161,000
Ratio of Net Debt		3.6	x		1.7	x		1.3	x

VERTEX ENERGY, INC. 8-K

EXHIBIT 99.2

Second Quarter 2023 Quarterly Results Summary Presentation August 2023

DISCLAIMER Forward - looking statements 2 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, the Company’s projected Outlook for the third quarter of 2023 , as discussed above ; 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 planned 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 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, increased interest rates, recessions and increased 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, increases 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 . The financial projections (the “Projections”) included herein were prepared by Vertex in good faith using assumptions believed to be reasonable . A significant number of assumptions about the operations of the business of Vertex were based, in part, on economic, competitive, and general business conditions prevailing at the time the Projections were developed . Any future changes in these conditions, may materially impact the ability of Vertex to achieve the financial results set forth in the Projections . The Projections are based on numerous assumptions, including realization of the operating strategy of Vertex ; industry performance ; no material adverse changes in applicable legislation or regulations, or the administration thereof, or generally accepted accounting principles ; general business and economic conditions ; competition ; retention of key management and other key employees ; absence of material contingent or unliquidated litigation, indemnity, or other claims ; minimal changes in current pricing ; static material and equipment pricing ; no significant increases in interest rates or inflation ; and other matters, many of which will be beyond the control of Vertex, and some or all of which may not materialize . The Projections also assume the continued uptime of the Company’s facilities at historical levels and the successful funding of, timely completion of, and successful outcome of, planned capital projects . Additionally, to the extent that the assumptions inherent in the Projections are based upon future business decisions and objectives, they are subject to change . Although the Projections are presented with numerical specificity and are based on reasonable expectations developed by Vertex’s management, the assumptions and estimates underlying the Projections are subject to significant business, economic, and competitive uncertainties and contingencies, many of which will be beyond the control of Vertex . Accordingly, the Projections are only estimates and are necessarily speculative in nature . It is expected that some or all of the assumptions in the Projections will not be realized and that actual results will vary from the Projections . Such variations may be material and may increase over time . In light of the foregoing, readers are cautioned not to place undue reliance on the Projections . The projected financial information contained herein should not be regarded as a representation or warranty by Vertex, its management, advisors, or any other person that the Projections can or will be achieved . Vertex cautions that the Projections are speculative in nature and based upon subjective decisions and assumptions . As a result, the Projections should not be relied on as necessarily predictive of actual future events .

In addition to our results calculated under generally accepted accounting principles in the United States (“GAAP”), in this news release we also present Adjusted EBITDA, Adjusted Gross Margin, Fuel Gross Margin, Fuel Gross Margin Per Barrel of Throughput, Operating Expenses Per Barrel of Throughput, RIN Adjusted Fuel Gross Margin, RIN Adjusted Fuel Gross Margin Per Barrel of Throughput, Net Long - Term Debt and Ratio of Net Long - Term Debt (collectively, the “Non - GAAP Financial Measures”) The Non - GAAP Financial Measures are “non - GAAP financial measures” presented as supplemental measures of the Company’s performance . They are not presented in accordance with GAAP . EBITDA represents net income before interest, taxes, depreciation and amortization, for continued and discontinued operations . Adjusted EBITDA represents net income (loss) from operations plus unrealized gain or losses on hedging activities, Renewable Fuel Standard (RFS) costs (mainly related to Renewable Identification Numbers (RINs), and inventory adjustments, depreciation and amortization, acquisition costs, gain on change in value of derivative warrant liability, environmental clean - up, stock - based compensation, (gain) loss on sale of assets, interest expense, and certain other unusual or non - recurring charges included in selling, general, and administrative expenses . Adjusted Gross Margin is defined as gross profit (loss) plus unrealized gain or losses on hedging activities and inventory valuation adjustments . Fuel Gross Margin is defined as Adjusted Gross Margin, plus production costs, operating expenses and depreciation attributable to cost of revenues and other non - fuel items included in costs of revenues including realized and unrealized gain or losses on hedging activities, RFS costs (mainly related to RINs), inventory valuation adjustments, fuel financing costs and other revenues and cost of sales items . Fuel Gross Margin Per Barrel of Throughput is calculated as fuel gross margin divided by total throughput barrels for the period presented . Operating Expenses Per Barrel of Throughput is defined as total operating expenses divided by total barrels of throughput . RIN Adjusted Fuel Gross Margin is defined as [Fuel Gross Margin minus RIN expense divided by total barrels of throughput . RIN Adjusted Fuel Gross Margin Per Barrel of Throughput is calculated as RIN Adjusted Fuel Gross Margin divided by total throughput barrels for the period presented . Net Long - Term Debt is long - term debt and lease obligations, adjusted for unamortized discount and deferred financing costs, insurance premiums financed, less cash and cash equivalents and restricted cash . Ratio of Net Long - Term Debt is defined as Long - Term Debt divided by Adjusted EBITDA . The Non - GAAP Financial Measures are presented because we believe they provide additional useful information to investors due to the various noncash items during the period . We believe that the Non - GAAP Financial Measures are also frequently used by analysts, investors and other interested parties to evaluate companies in our industry . We use the Non - GAAP Financial Measures as supplements to GAAP measures of performance to evaluate the effectiveness of our business strategies, to make budgeting decisions, to allocate resources and to compare our performance relative to our peers . Additionally, these measures, when used in conjunction with related GAAP financial measures, provide investors with an additional financial analytical framework which management uses, in addition to historical operating results, as the basis for financial, operational and planning decisions and present measurements that third parties have indicated are useful in assessing the Company and its results of operations . The Non - GAAP Financial Measures are unaudited, and have limitations as analytical tools, and you should not consider them in isolation, or as a substitute for analysis of our operating results as reported under GAAP . Some of these limitations are : the Non - GAAP Financial Measures do not reflect cash expenditures, or future requirements for capital expenditures, or contractual commitments ; the Non - GAAP Financial Measures do not reflect changes in, or cash requirements for, capital expenditures or working capital needs ; the Non - GAAP Financial Measures do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on debt or cash income tax payments ; although depreciation and amortization are noncash charges, the assets being depreciated and amortized will often have to be replaced in the future, the Non - GAAP Financial Measures do not reflect any cash requirements for such replacements ; Adjusted EBITDA, Adjusted Gross Margin, Fuel Gross Margin and RIN Adjusted Fuel Gross Margin represent only a portion of our total operating results ; and other companies in this industry may calculate the Non - GAAP Financial Measures differently than we do, limiting their usefulness as a comparative measure . The Company’s presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items . We compensate for these limitations by providing a reconciliation of each of these non - GAAP measures to the most comparable GAAP measure . We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non - GAAP measures in conjunction with the most directly comparable GAAP financial measure . For more information on these non - GAAP financial measures, please see the sections titled “Unaudited Reconciliation of Gross Profit (Loss) From Continued and Discontinued Operations to Adjusted Gross Margin, Fuel Gross Margin, Fuel Gross Margin Per Barrel of Throughput, Operating Expenses Per Barrel of Throughput, RIN Adjusted Fuel Gross Margin and RIN Adjusted Fuel Gross Margin Per Barrel of Throughput”, “Unaudited Reconciliation of Adjusted EBITDA to Net loss from Continued and Discontinued Operations”, and “Unaudited Reconciliation of Long - Term Debt to Net Long - Term Debt and Ratio of Net Debt”, at the end of this release . DISCLAIMER Non - GAAP Financial Measures 3

SECOND QUARTER 2023 Performance Summary

2Q23 Performance Indicators COMPANY PERFORMANCE SUMMARY Second Quarter 2023 5 1. A full - reconciliation of GAAP to Non - GAAP metrics is provided in the appendix of this presentation 2. Net debt defined as total long - term debt outstanding less cash and equivalents 3. Net leverage defined as net debt (cash) divided by trailing twelve - month adjusted EBITDA * Total cash & equivalents, Net long - term debt, and net leverage stated as of 6/30/2023 & 6/30/2022, respectively Key Performance Indicators ($/MM) Key Takeaways 2Q23 Performance Summary • Reported net loss (GAAP) of $(81.4) million and Adjusted EBITDA of $(34.2) million in 2Q23, versus Net loss of $(67.0) million and Adjusted EBITDA of $71.3 million in 2Q22, reported financial results include a non - cash interest expense of $63.0 million attributed to the convertible note exchange transaction completed on June 12 th • Gross profit per barrel negatively impacted by weakness in refined product pricing, and additional costs incurred due to repair and start - up of Renewable Diesel facility • Strong conventional throughput volumes of 76,330 barrels per day (bpd) exceed prior outlook and reflect continued smooth operations at Mobile Refinery (102 % utilization) during 2Q23 • RD facility startup successfully completed • Initial commercial sales to Idemitsu complete • Achieved Phase I target throughput capacity of 8,000 bpd • Feedstock diet optimization process underway % Y / Y 2Q22 2Q23 (105%) $28.9 ($1.4) Total Gross Profit (Loss) 21% (67.0) (81.4) GAAP Net Income (Loss) (148%) 71.3 (34.2) Adjusted EBITDA (1) (47%) 98.0 52.1 Total Cash & Equivalents* 7% 256.6 275.3 Net Long Term Debt (1)(2)* 112% 1.7x 3.6x Net Leverage (1)(3)*

Mobile Performance Indicators MOBILE REFINERY PERFORMANCE Second Quarter 2023 6 • Operated at 102% capacity utilization in 2Q23, with total crude throughput of 76,330 barrels per day (bpd), reflecting efficient resolution to feedstock supply disruption • Mobile generated $52.7 million of fuel gross margin before RIN expense, depreciation and operating expenses in cost of sales and financing losses in 2Q23 • Mobile Refinery generated $7.34 of total Fuel Gross Margin Per Barrel of Throughput for 2Q23 • Average Gulf Coast 2 - 1 - 1 crack spread decline of 25% vs. 1Q23 • One - time expenses of approximately $20 million associated with pump repair and RD facility start - up expenses during 2Q23 • Weak pricing for products outside 211 benchmark (Jet A) • Increased feedstock differentials (LLS crude) driven by higher transportation cost following feedstock supply disruption • Margin compression further compounded by recent shift in product yield profile following conversion of hydrocracker to RD production 1.) Includes soybean oil throughput of 2,490 bpd and 1.252 million barrels ( MMbbl ) for 2Q23 and YTD, respectively 2.) Assumes 75,000 barrels per day of conventional operational capacity 3.) RIN: Renewable identification number 4.) Other includes naphtha, intermediates, and LPG 5.) Capture rate reflects conventional fuels gross margin only Second Quarter 2023 Mobile Performance Summary Key Takeaways 1Q23 2Q23 2023 YTD %Q/Q Total Throughput (bpd) 1 71,328 78,820 75,095 11% Total Production (MMbbl) 1 6.24 7.19 13.43 15% Conventional Facility Capacity Utilization 2 95.1% 101.8% 98.5% Total Operating Expense $26.5 $30.4 $55.1 15% Operating Expenses Per Barrel ($/bbl) $3.84 $4.23 $4.05 10% Fuel gross margin $103.8 $52.7 $156.5 -49% RIN expense 3 $16.1 $25.4 $41.5 58% RIN Adjusted Fuel Gross Margin $87.7 $27.3 $115.0 -69% Fuel Gross Margin Per Barrel ($/bbl) $16.17 $7.34 $11.51 -55% RIN expense Per Barrel ($/bbl) $2.51 $3.66 $3.05 46% RIN Adjusted Fuel Gross Margin Per Barrel of Throughput $13.66 $3.68 $8.46 -73% Gulf Coast 2-1-1 Crack Spread $31.59 $23.60 $27.59 -25% Capture Rate 5 53.0% 33.9% 39.4% -36% Adjusted Capture Rate 43.2% 15.6% 30.7% -64% Production Yield Gasoline (bpd) 15,723 17,812 16,774 13% % Production 22.7% 23.2% 22.6% ULSD (bpd) 14,720 15,618 15,171 6% % Production 21.2% 20.3% 20.4% Jet (bpd) 12,789 13,570 13,182 6% % Production 18.4% 17.7% 17.8% Other 4 26,119 29,828 27,983 14% % Production 37.7% 37.7% 37.7% Renewable diesel 0 2,208 1,110 0% % Production 0.0% 2.8% 1.5% Total Production (bpd) 69,351 79,036 74,220 14% Total Production (MMbbl) 6.24 7.19 13.43 15% 76,828 2023

RENEWABLE DIESEL PROJECT UPDATE 7 RD Start Up And Phase I Capacity Validated, Advantaged Feedstock Strategy Accelerated • Soybean oil to prove the asset with optionality for lower Carbon Intensity (CI) feed (tallows, DCO 1 , Canola, UCO 2 ) Feedstock • Renewable Diesel Fuel Primary Products • Phase I Capex: $110 - 115 million ( completed ) Project Budget • Mechanical completion reached 3/31/23 • Initial commercial sales transactions of RD announced on June 26th Output Timeline • ~8 Mbbl /d – Phase I • ~14 Mbbl /d – Phase II (Hydrogen supply installed) Renewable Capacity • Idemitsu Apollo (5 - year) Supply Agreements • California market Offtake Markets PROJECT SUMMARY SPECS Project Updates • Phase I project execution is 100% complete • LCFS 3 application in process, pursuing Government approval • Feedstock pumping system repairs & facility start - up sequence completed on schedule • Associated one - time costs incurred of $20 million • Phase I targeted production rates validated at 8,000 bpd • Initial commercial transaction with Idemitsu Kosan announced on June 26th • Feedstock optimization strategy accelerated due to margin deterioration of RBD 4 soybean oil economics and shorter break - in period than anticipated • Advantaged feedstock blends undergoing approval process currently • Initial volumes of advantaged feedstocks introduced to unit in late July • Commercial supplies of DCO, UCO, Canola and technical tallow recently sourced 1.) DCO – “Distillers Corn Oil” 2.) UCO – “Used Cooking Oil” 3.) LCFS – “Low Carbon Fuel Standard” 4.) RBD – “refined, bleached, deodorized”

DOMESTIC FUELS DEMAND Conventional Refined Fuels Demand Remains Strong 8 US Gasoline Demand ( MMbpd ) US Distillate Demand ( MMbpd ) Source: Bloomberg; 2 - 1 - 1 assumes WTI Crude, Gulf coast gasoline and Gulf Coast ULSD, data as of 7/31/2023 5 6 7 8 9 10 11 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec '17-'22 '17-'22 Average 2022 2023 3 4 5 6 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec '17-'22 '17-'22 Average 2022 2023

DOMESTIC FUELS INVENTORIES REMAIN TIGHT Gasoline & Distillate Inventory Levels Remain Below The Five - Year Average US Gasoline Inventories 9 ( MMbbl ) US Distillate Inventories ( MMbbl ) Source: Bloomberg; 2 - 1 - 1 assumes WTI Crude, Gulf coast gasoline and Gulf Coast ULSD, data as of 7/31/2023 80 100 120 140 160 180 200 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec '17-'22 '17-'22 Average 2022 2023 200 210 220 230 240 250 260 270 280 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec '17-'22 '17-'22 Average 2022 2023

DOMESTIC FUELS PRODUCTION LEVELS Production Levels In - Line With Historical Averages US Conventional Gasoline Production 10 ( MMbpd ) US Distillate Production ( MMbpd ) Source: Bloomberg; 2 - 1 - 1 assumes WTI Crude, Gulf coast gasoline and Gulf Coast ULSD, data as of 7/31/2023 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec '17-'22 '17-'22 Average 2022 2023 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec '17-'22 '17-'22 Average 2022 2023

REFINED PRODUCT MARGINS RETREATING FROM RECENT HIGHS Tight Inventories, Robust Demand Remain Supportive 11 Gulf Coast 2 - 1 - 1 Crack Spread 2023 - to - Date Source: Bloomberg; 2 - 1 - 1 assumes WTI Crude, Gulf coast gasoline and Gulf Coast ULSD, data as of 7/31/2023 Gulf Coast 2 - 1 - 1 Crack Spread Long - Term Performance $0 $10 $20 $30 $40 $50 $60 $15 $20 $25 $30 $35 $40 $45

COMMODITIES FUTURES MARKETS Gasoline & Diesel Futures Pricing Reflects More Normalized Margin Environment In 2024 12 Gasoline Monthly Futures Price ($/Gal) ULSD Monthly Futures Price ($/Gal) Source: Factset - As of 7/31/2023 $1.50 $1.75 $2.00 $2.25 $2.50 $2.75 $3.00 $2.00 $2.25 $2.50 $2.75 $3.00 $3.25 $3.50 1Q23 2Q23 3Q23 4Q23 FY 2023 1Q24 2Q24 3Q24 4Q24 FY 2024 Gasoline ($/gal) $2.53 $2.58 $2.43 $2.52 $2.51 $2.37 $2.20 $2.25 $2.35 $2.29 ULSD ($/gal) $2.90 $2.44 $2.73 $2.64 $2.68 $2.61 $2.55 $2.30 $2.30 $2.44 WTI Crude ($/Bbl) $76.11 $73.75 $79.48 $78.03 $76.86 $76.66 $75.26 $73.94 $72.75 $74.65

Crude Futures Curve Flattening Yet Remains Slightly Backwardated 13 COMMODITIES FUTURES MARKETS Source: Factset - As of 7/31/2023 0.8 0.9 1.0 1.1 Current 1 Year Ago 2 Year Ago $55.00 $65.00 $75.00 $85.00 $95.00 Current 1 Year Ago 2 Years Ago 1Q23 2Q23 3Q23 4Q23 FY 2023 1Q24 2Q24 3Q24 4Q24 FY 2024 Gasoline ($/gal) $2.53 $2.58 $2.43 $2.52 $2.51 $2.37 $2.20 $2.25 $2.35 $2.29 ULSD ($/gal) $2.90 $2.44 $2.73 $2.64 $2.68 $2.61 $2.55 $2.30 $2.30 $2.44 WTI Crude ($/Bbl) $76.11 $73.75 $79.48 $78.03 $76.86 $76.66 $75.26 $73.94 $72.75 $74.65

BALANCE SHEET UPDATE Reduction of High Interest Term Loan, Convertible Notes, Remains a Priority 14 Outstanding Debt Details ($/MM) Debt Maturity Schedule ($/MM) ► Current total long - term debt $327.4 million ► Current cash & equivalents $52.1 million ► Net long - term debt = $275.3 million ► 6/30/23 Leverage 3 = 3.6x ► $79.9 million convertible equity exchange transaction completed on June 12, 2023 ► $15.2 million convertible note principal outstanding ► Term loan pre - payment option becomes available Oct. 1, 2023 1. Including restricted cash of $3.6 million 2. Net long - term debt defined as total long - term debt outstanding less cash and equivalents 3. Net leverage defined as net debt (cash) divided by trailing twelve - month adjusted EBITDA Principal Maturity Coupon Instrument 15.2 2027 6.25% Senior Convertible Note 150.1 2025 16.00% Term Loan 162.1 - - Lease Obligations $327.4 Total 52.1 Cash & equivalents 1 $275.3 Net long - term Debt 2 3.6x Net Leverage 3

Projected Financial Guidance FINANCIAL AND OPERATING GUIDANCE Third Quarter 2023 Outlook 15 Management Commentary • For the third quarter 2023, the Company expects the Mobile Refinery to generate total throughput of between 74,000 to 77,000 bpd, reflecting between 99% and 103% total conventional facility capacity utilization • Management expects 59% to 63% of its refined product output to be finished products such as gasoline, diesel and Jet fuel, with the remainder reflecting intermediate and other products • Vertex expects direct operating expense per barrel for conventional operations of between $3.60 to $3.80 per barrel in the third quarter 2023 • Vertex anticipates total consolidated capital expenditures of between $20 million and $25 million in the third quarter 2023 Third Quarter 2023 Third Quarter 2023 3Q 2023 High Low Operational: 77.0 74.0 Mobile Refinery Conventional Throughput Volume (Mbpd) 103% 99% Capacity Utilization Production Yield Profile 63% 59% Finished Products 1 37% 41% Intermediate & Other Products 2 Financial Guidance: $3.80 $3.60 Direct Operating Expense ($/bbl) $25 $20 Capital Expenditures ($/MM) 1.) Finished products include gasoline, ULSD, and Jet A 2.) Intermediate & Other products include Vacuum Gas Oil (VGO), Liquified Petroleum Gases (LPGs), and Vacuum Tower Bottoms (VTBs)

OUR STRATEGIC FOCUS Multi - Year Plan 16 ASSET UTILIZATION • Target investments expected to drive long - term profitability at Mobile Refinery • Leverage expertise with complementary assets in adjacent markets • Vertically integrate from feedstock to retail products MARGIN CAPITALIZATION • Conventional distillate and gasoline economics at Alabama Refinery • Leverage feedstock origination capabilities for lower cost, lower CI inputs • Phase II renewables project expansion expected in second half of 2024 RENEWABLE INVESTMENT • Conversion of Mobile Refinery hydrocracker • Increase renewables optionality in feedstocks and products • Expected opportunities for Renewable Diesel, Sustainable Aviation Fuel, and renewable hydrogen STRENGTHEN BALANCE SHEET • Reduce total debt prioritizing high - interest term loan and remaining convertible notes • $79.9 million Sr. Convertible note equity exchange transaction in June 2023 • Term loan prepayment option begins on October 1, 2023 Energy transition company of scale focused on driving above - market free cash flow conversion. Plans to deploy capital toward high - return organic, inorganic opportunities & debt reduction. Staying loyal to our DNA as a development company while continuing to run/operate our assets.

APPENDIX

NON - GAAP RECONCILIATION 18 Unaudited Reconciliation of Gross Profit (Loss) From Continued and Discontinued Operations to Adjusted Gross Margin, Fuel Gross Margin, Fuel Gross Margin Per Barrel of Throughput, Operating Expenses Per Barrel of Throughput, RIN Adjusted Fuel Gross Margin and RIN Adjusted Fuel Gross Margin Per Barrel of Throughput

NON - GAAP RECONCILIATION 19 Unaudited Reconciliation of Gross Profit (Loss) From Continued and Discontinued Operations to Adjusted Gross Margin, Fuel Gross Margin, Fuel Gross Margin Per Barrel of Throughput, Operating Expenses Per Barrel of Throughput, RIN Adjusted Fuel Gross Margin and RIN Adjusted Fuel Gross Margin Per Barrel of Throughput

NON - GAAP RECONCILIATION 20 Unaudited Reconciliation of Gross Profit (Loss) From Continued and Discontinued Operations to Adjusted Gross Margin, Fuel Gross Margin, Fuel Gross Margin Per Barrel of Throughput, Operating Expenses Per Barrel of Throughput, RIN Adjusted Fuel Gross Margin and RIN Adjusted Fuel Gross Margin Per Barrel of Throughput

NON - GAAP RECONCILIATION 21 Unaudited Reconciliation of EBITDA and Adjusted EBITDA to Net loss from Continued and Discontinued Operations

NON - GAAP RECONCILIATION 22 Unaudited Reconciliation of EBITDA and Adjusted EBITDA to Net loss from Continued and Discontinued Operations

NON - GAAP RECONCILIATION 23 Unaudited Reconciliation of EBITDA and Adjusted EBITDA to Net loss from Continued and Discontinued Operations

NON - GAAP RECONCILIATION 24 Unaudited Reconciliation of EBITDA and Adjusted EBITDA to Net loss from Continued and Discontinued Operations

NON - GAAP RECONCILIATION 25 Unaudited Reconciliation of EBITDA and Adjusted EBITDA to Net loss from Continued and Discontinued Operations In thousands Mobile Refinery Legacy Refining & Marketing Total Refining & Marketing Black Oil and Recovery Corporate Consolidated Net income (loss) $ (23,961) $ 290 $ (23,671) $ (26,015) $ (14,904) $ (64,590) Depreciation and amortization 3,722 251 3,973 3,315 246 7,534 Income tax expense (benefit) - - - - - - Interest expense 3,250 - 3,250 44,469 4,235 51,954 EBITDA $ (16,989) $ 541 $ (16,448) $ 21,769 $ (10,423) $ (5,102) Unrealized (gain) loss on hedging activities 46,901 - 46,901 (268.00) - 46,633 Inventory valuation adjustments 23,180 - 23,180 - - 23,180 Gain on change in value of derivative warrant liability - - - 945.00 3,579 4,524 Stock-based compensation - - - 324.00 250 574 (Gain) loss on sale of assets - - - (415) - (415) Acquisition costs 9,078 - 9,078 - 4,560 13,638 Enviromental clean-up 1,428 - 1,428 - - 1,428 Other (19) - (19) (128.00) - (147) Adjusted EBITDA $ 63,579 $ 541 $ 64,120 $ 22,227 $ (2,034) $ 84,313 Six Months Ended June 30, 2022

NON - GAAP RECONCILIATION 26 Unaudited Reconciliation of Long - Term Debt to Net Long - Term Debt and Ratio of Net Debt In thousands June 30, 2023 June 30, 2022 December 31, 2022 Long-Term Debt: Senior Convertible Note $ 15,230 $ 41,543 $ 95,178 Term Loan 2025 150,075 165,000 165,000 Finance lease liability long-term 67,290 44,640 45,164 Finance lease liability short-term 2,320 652 1,363 Operating lease liability long-term 66,914 3,816 44,545 Operating lease liability short-term 25,588 953 9,012 Long-Term Debt and Lease Obligations $ 327,417 $ 256,604 $ 360,262 Unamortized discount and deferred financing costs (33,402) (37,035) (81,918) Insurance premiums financed 9,995 9,236 5,602 Long-Term Debt and Lease Obligations per Balance Sheet 304,010$ 228,805$ 283,946$ Cash and Cash Equivalents (48,532) (97,914) (141,248) Restricted Cash (3,603) (100) (4,929) Total Cash and Cash Equivalents $ (52,135) $ (98,014) $ (146,177) Net Long-Term Debt 275,282$ 158,590$ 214,085$ Adjusted EBITDA $ 77,477 $ 95,280 $ 161,000 Ratio of Net Debt 3.6x 1.7x 1.3x As of

Cover	Aug. 09, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 09, 2023
Entity File Number	001-11476
Entity Registrant Name	VERTEX ENERGY, INC.
Entity Central Index Key	0000890447
Entity Tax Identification Number	94-3439569
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	1331 Gemini Street
Entity Address, Address Line Two	Suite 250
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77058
City Area Code	(866)
Local Phone Number	660-8156
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock
Trading Symbol	VTNR
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

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