-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.
-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.