Vertex Energy (NASDAQ:VTNR) stock is on the rise Thursday after the company announced a major acquisition of a refinery belonging to a Royal Dutch Shell (NYSE:RDS.A,RDS.B) subsidiary.
The refinery the company is purchasing from Royal Dutch Shell’s Equilon Enterprises subsidiary is located in Mobile, Ala. Vertex Energy will spend $75 million to acquire the refinery. The deal is set to close in the fourth quarter of 2021.
With this acquisition, the location will become VTNR’s leading refinery. This will allow it to undergo an $85 million conversion by the end of 2022. That conversion is for the refinery’s hydrocracking unit.
According to Vertex Energy, it expects the refinery to generate a minimum of $3 billion in sales per year. In addition to that, it expects an annual gross profit of $400 million starting in 2023.
Vertex Energy says that the refinery will allow it to generate 14,000 bpd of renewable diesel. This would result in it becoming one of the largest independent producers of renewable fuels in the southeastern United States.
Benjamin Cowart, president and CEO of Vertex Energy, said the following in the VTNR press releasing boosting stock today.
“We will acquire an exceptional refining and logistics asset of scale, one equipped with significant feedstock optionality, together with a high-value, distillate-weighted product slate. As part of this transaction, Vertex will assume ownership of more than 3 million barrels of crude oil and product storage, together with other valuable logistics assets.”
VTNR stock was up 126.9% as of Thursday morning and is up 430.3% since the start of the year.
There’s plenty of other major stock market news that investors need to be aware of today.
Luckily, we’ve got you covered with in-depth dives into the hottest topics on Thursday. That includes the latest on Zosano Pharma (NASDAQ:ZSAN), SOS (NYSE:SOS), and Ocugen (NASDAQ:OCGN). Learn all about that at the links below.
More Thursday Stock News
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- OCGN Stock: The Big FDA News Lifting Ocugen Shares Today
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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