Vertex Energy, Inc. (VTNR): history, ownership, mission, how it works & makes money

A Brief History of Vertex Energy, Inc. (VTNR)

Founding and Early Years

Vertex Energy, Inc. was founded in 2008 and is headquartered in Houston, Texas. The company was established with the goal of becoming a key player in the energy sector by providing innovative waste management solutions, particularly focusing on used motor oil and other hydrocarbon products.

Initial Public Offering (IPO)

Vertex Energy went public on the NASDAQ Stock Market under the ticker symbol VTNR in 2010. The initial public offering aimed to raise approximately $5 million, valuing the company at about $20 million at the time.

Acquisitions and Growth

In 2013, Vertex Energy acquired the assets of a facility in Marrero, Louisiana, significantly increasing its refining capacity. By 2014, the company reported revenues of approximately $19.5 million. The following years were marked by several strategic acquisitions, including:

• 2016: Acquisition of a used motor oil re-refinery located in Columbus, Ohio.
• 2017: Purchase of the Mobile, Alabama facility to expand its operational capabilities.
• 2019: Acquired the assets of a petroleum refining facility in the Gulf Coast region.

Financial Performance

As of the end of 2020, Vertex Energy reported total revenues of $32.5 million, showing a steady growth trajectory. The company’s gross profit margin for that year was approximately 22%.

In 2021, Vertex Energy saw a significant increase in revenue, reporting $127 million, a year-over-year increase of over 290%.

Vertex Energy's assets reached approximately $76.3 million in 2021, while its liabilities were around $36.6 million, resulting in a total equity of $39.7 million.

Recent Developments

In 2022, Vertex Energy announced the completion of its Green Refinery project, which aims to produce renewable diesel. The project, located in Port Arthur, Texas, had an estimated budget of $60 million. By the end of 2022, the renewable diesel production capacity was projected to be around 2,000 barrels per day.

For the first quarter of 2023, Vertex Energy reported a revenue increase of 37% compared to the previous year, totaling approximately $35 million. The company's gross profit for the same period was estimated to be around $10 million.

Stock Performance

Future Outlook

Vertex Energy is positioned for growth, particularly in the renewable energy market. The company's commitment to sustainability and innovation is expected to drive its expansion in the coming years. Analysts project a revenue growth rate of over 40% annually through 2025, with a focus on renewable diesel and other alternative energy sources.

A Who Owns Vertex Energy, Inc. (VTNR)

Overview of Ownership Structure

As of the latest available data in 2023, Vertex Energy, Inc. (VTNR) has a diverse ownership structure, which includes institutional and retail investors. The company is publicly traded on the NASDAQ under the ticker symbol VTNR.

Major Shareholders

The largest shareholders of Vertex Energy, Inc. include both institutional and insider ownership. The following table provides a detailed overview of the significant shareholders:

Insider Ownership

Insider ownership plays a crucial role in the governance of Vertex Energy, Inc. The following table summarizes the insider ownership details:

Stock Performance and Market Capitalization

As of October 2023, Vertex Energy's stock price is approximately $4.55, with a total market capitalization of around $280 million. This valuation reflects the company's growth and investor interest in the sustainability and renewable energy sector.

Institutional Ownership Trends

Institutional ownership has shown fluctuations in recent quarters. The metrics below highlight the changes in institutional ownership:

Future Projections and Investor Sentiment

Investor sentiment towards Vertex Energy remains cautiously optimistic, given the growing focus on environmental, social, and governance (ESG) criteria. Analysts forecast potential increases in ownership from institutional investors, predicting a rise in institutional ownership to approximately 40% by end of Q4 2023.

Vertex Energy, Inc. (VTNR) Mission Statement

Core Mission Statement

Vertex Energy, Inc. is dedicated to providing high-quality, sustainable energy solutions while leading the transition to a circular economy. Our mission is to maximize the value of every barrel of oil through efficient recycling, innovative processing technologies, and strategic partnerships.

Strategic Objectives

• Enhance operational efficiency to reduce environmental impact.
• Develop advanced processing technologies for oil recovery.
• Expand geographic footprint and market reach.
• Foster partnerships with industry leaders to leverage resources.
• Commit to corporate social responsibility and community involvement.

Financial Performance Metrics

Vertex Energy operates in a dynamic sector, with significant financial metrics that underline its mission effectiveness.

Sustainability Initiatives

Vertex Energy emphasizes the importance of sustainable practices in its operational framework.

• Reduction of greenhouse gas emissions: Targeting a 15% decrease by 2025.
• Waste minimization: Implementing zero waste initiatives at processing facilities.
• Community engagement: Investing over $1 million annually in local community programs.
• Employee training: Conducting quarterly training programs on sustainability practices.

Market Position and Growth

As of Q2 2022, Vertex Energy has established a prominent position in the clean energy market, with a projected CAGR of 15% over the next five years.

Future Goals

Vertex Energy aims to achieve specific targets in alignment with its mission by 2025.

• Increase operational capacity: From 20,000 barrels per day to 30,000 barrels per day.
• Expand service offerings: Add at least three new service lines in alternative energy.
• Enhance shareholder value: Target a 20% increase in dividends.
• Community investment: Double contributions to community initiatives.

Stakeholder Engagement

Vertex Energy prioritizes transparency and engagement with stakeholders, providing regular updates and reports.

How Vertex Energy, Inc. (VTNR) Works

Business Model

Vertex Energy, Inc. primarily focuses on collecting and recycling used motor oil and other petroleum-related products. Its operations facilitate the recovery of valuable resources from used oils, contributing to sustainability and environmental protection.

Revenue Streams

Vertex Energy generates revenue through several key streams:

• Sale of re-refined base oils
• Sale of processed fuels
• Recycling of used oil for industrial applications
• Environmental services associated with waste oil management

Financial Performance

As of the latest available data:

Operational Facilities

The company operates multiple facilities for the collection and processing of used oils:

• Sewaren, New Jersey
• Portland, Oregon
• Locations in the Southeastern United States

Market Position

As of 2023, Vertex Energy is recognized as a significant player in the re-refined oil market. The company's market cap is approximately $137 million.

Sustainability Efforts

Vertex Energy is committed to sustainable practices, aiming to reduce waste by reprocessing used oils. The company claims to recycle approximately 10 million gallons of used motor oil annually.

Stock Performance

The stock performance of Vertex Energy can be summarized as follows:

Strategic Partnerships

Vertex Energy has formed strategic alliances with key industry players to enhance its service offerings and expand market reach:

• Partnerships with automotive service chains for oil collection
• Agreements with industrial users for refined products
• Collaborations with environmental agencies for compliance and sustainability

Future Outlook

For 2024, Vertex Energy projects a potential revenue growth of 20% driven by increased demand for sustainable oil products and expanded processing capabilities.

How Vertex Energy, Inc. (VTNR) Makes Money

Overview of Revenue Streams

Vertex Energy, Inc. (VTNR) primarily generates revenue through the collection, processing, and sale of used motor oil and other petroleum products. The company operates in two segments: the salvage and reuse of petroleum products and the manufacturing of renewable fuels. This diversified approach allows for multiple avenues of income.

Used Motor Oil Collection and Processing

Vertex Energy is deeply engaged in the collection and processing of used motor oil. As of Q2 2023, the company reported processing approximately 50 million gallons of used oil annually.

Manufacturing of Renewable Fuels

The company has invested heavily in the production of renewable diesel and other sustainable fuels. In 2022, Vertex Energy announced plans to expand its production capacity, targeting an output of 150 million gallons of renewable diesel by 2025.

Strategic Acquisitions

Vertex Energy has made significant acquisitions to enhance its market position. In 2022, the company acquired the assets of a regional used oil processor, contributing an additional $10 million in annual revenue.

Service Offerings

Vertex Energy also generates revenue from service offerings related to waste oil and petroleum-based products.

• Used Oil Collection Services
• Environmental Compliance Services
• Consulting on Energy Recovery

Financial Performance

According to the Q3 2023 financial report, Vertex Energy reported a total revenue of $75 million, representing a 45% increase year-over-year.

Market Position and Competitive Advantage

Vertex Energy's competitive advantage lies in its operational efficiencies and strong relationships with suppliers. The increasing demand for sustainable fuels has positioned the company favorably in the evolving energy landscape.

Future Projections

Market analysts project a compounded annual growth rate of 10% in the renewable fuel sector for the next five years, indicating a positive outlook for Vertex Energy as it capitalizes on this trend.