(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.001 Par Value Per Share | ||||||||
(Nasdaq Capital Market) |
☑ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page | |||||||||||
PART I | |||||||||||
Item 1. | |||||||||||
Item 2 | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
PART II | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 5. | |||||||||||
Item 6. |
March 31, 2023 | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable, net | |||||||||||
Inventory | |||||||||||
Derivative commodity asset | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Assets held for sale, current | |||||||||||
Total current assets | |||||||||||
Fixed assets, net | |||||||||||
Finance lease right-of-use assets | |||||||||||
Operating lease right-of use assets | |||||||||||
Intangible assets, net | |||||||||||
Deferred taxes assets | |||||||||||
Other assets | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES, TEMPORARY EQUITY, AND EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses | |||||||||||
Finance lease liability-current | |||||||||||
Operating lease liability-current | |||||||||||
Current portion of long-term debt, net | |||||||||||
Obligations under inventory financing agreements, net | |||||||||||
Derivative commodity liability | |||||||||||
Liabilities held for sale, current | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net | |||||||||||
Finance lease liability-long-term | |||||||||||
Operating lease liability-long-term | |||||||||||
Deferred tax liabilities | |||||||||||
Derivative warrant liability | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
COMMITMENTS AND CONTINGENCIES (Note 4) | |||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||
EQUITY | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total Vertex Energy, Inc. shareholders' equity | |||||||||||
Non-controlling interest | |||||||||||
Total equity | |||||||||||
TOTAL LIABILITIES, TEMPORARY EQUITY, AND EQUITY | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Revenues | $ | $ | ||||||||||||
Cost of revenues (exclusive of depreciation and amortization shown separately below) | ||||||||||||||
Depreciation and amortization attributable to costs of revenues | ||||||||||||||
Gross profit | ||||||||||||||
Operating expenses: | ||||||||||||||
Selling, general and administrative expenses (exclusive of depreciation and amortization shown separately below) | ||||||||||||||
Depreciation and amortization attributable to operating expenses | ||||||||||||||
Total operating expenses | ||||||||||||||
Income (loss) from operations | ( | |||||||||||||
Other income (expense): | ||||||||||||||
Other income | ||||||||||||||
Loss on change in value of derivative warrant liability | ( | ( | ||||||||||||
Interest expense | ( | ( | ||||||||||||
Total other expense | ( | ( | ||||||||||||
Income (loss) from continuing operations before income tax | ( | |||||||||||||
Income tax benefit (expense) | ( | |||||||||||||
Income (loss) from continuing operations | ( | |||||||||||||
Income from discontinued operations, net of tax (see note 23) | ||||||||||||||
Net income (loss) | ( | |||||||||||||
Net loss attributable to non-controlling interest and redeemable non-controlling interest from continuing operations | ( | ( | ||||||||||||
Net income attributable to non-controlling interest and redeemable non-controlling interest from discontinued operations | ||||||||||||||
Net income (loss) attributable to Vertex Energy, Inc. | ( | |||||||||||||
Accretion of redeemable noncontrolling interest to redemption value from continued operations | ( | |||||||||||||
Net income (loss) attributable to common shareholders from continuing operations | ( | |||||||||||||
Net income attributable to common shareholders from discontinued operations, net of tax | ||||||||||||||
Net income (loss) attributable to common shareholders | $ | $ | ( | |||||||||||
Basic income (loss) per common share | ||||||||||||||
Continuing operations | $ | $ | ( | |||||||||||
Discontinued operations, net of tax | ||||||||||||||
Basic income (loss) per common share | $ | $ | ( | |||||||||||
Diluted income (loss) per common share | ||||||||||||||
Continuing operations | $ | $ | ( | |||||||||||
Discontinued operations, net of tax | ||||||||||||||
Diluted income (loss) per common share | $ | $ | ( | |||||||||||
Shares used in computing earnings per share | ||||||||||||||
Basic | ||||||||||||||
Diluted |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Series A Preferred | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | $ | Shares | $ | Additional Paid-In Capital | Retained Earnings | Non-controlling Interest | Total Equity | ||||||||||||||||||||||||||||||||||||||||
Balance on January 1, 2023 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Exercise of options | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Stock based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Non controlling shareholder contribution | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||
Balance on March 31, 2023 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Series A Preferred | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | $ | Shares | $ | Additional Paid-In Capital | Retained Earnings | Non-controlling Interest | Total Equity | ||||||||||||||||||||||||||||||||||||||||
Balance on January 1, 2022 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Exercise of options | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Exercise of warrants | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||
Stock based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Conversion of Series A Preferred stock to common | — | ( | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Equity component of the convertible note issuance, net | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Accretion of redeemable non-controlling interest to redemption value | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Less: amount attributable to redeemable non-controlling interest | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance on March 31, 2022 | $ | $ | $ | $ | ( | $ | $ |
Three Months Ended | |||||||||||
March 31, 2023 | March 31, 2022 | ||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Income from discontinued operations, net of tax | |||||||||||
Income (loss) from continuing operations | ( | ||||||||||
Adjustments to reconcile net loss from continuing operations to cash used in operating activities | |||||||||||
Stock based compensation expense | |||||||||||
Depreciation and amortization | |||||||||||
Deferred income tax expense | |||||||||||
(Gain) loss on sale of assets | ( | ||||||||||
Increase (decrease) in allowance for bad debt | ( | ||||||||||
Increase in fair value of derivative warrant liability | |||||||||||
(Gain) loss on commodity derivative contracts | ( | ||||||||||
Net cash settlements on commodity derivatives | ( | ||||||||||
Amortization of debt discount and deferred costs | |||||||||||
Changes in operating assets and liabilities | |||||||||||
Accounts receivable and other receivables | ( | ( | |||||||||
Inventory | ( | ( | |||||||||
Prepaid expenses and other current assets | ( | ( | |||||||||
Accounts payable | |||||||||||
Accrued expenses | ( | ||||||||||
Other assets | ( | ( | |||||||||
Net cash used in operating activities from continuing operations | ( | ( | |||||||||
Cash flows from investing activities | |||||||||||
Investment in Mobile Refinery assets | ( | ||||||||||
Purchase of fixed assets | ( | ( | |||||||||
Proceeds from sale of discontinued operation | |||||||||||
Proceeds from sale of fixed assets | |||||||||||
Net cash provided by (used in) investing activities from continuing operations | ( | ||||||||||
Cash flows from financing activities | |||||||||||
Payments on finance leases | ( | ( | |||||||||
Proceeds from exercise of options and warrants to common stock | |||||||||||
Contributions received from noncontrolling interest | |||||||||||
Net change on inventory financing agreements | ( | ||||||||||
Payments on note payable | ( | ( | |||||||||
Net cash used in financing activities from continuing operations | ( | ( | |||||||||
Discontinued operations: | |||||||||||
Net cash provided by (used in) operating activities | ( | ||||||||||
Net cash used in investing activities | ( | ||||||||||
Net cash provided by (used in) discontinued operations | ( | ||||||||||
Net decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents, and restricted cash at beginning of the period | |||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | $ |
Three Months Ended | |||||||||||
March 31, 2023 | March 31, 2022 | ||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Cash and cash equivalents and restricted cash as shown in the consolidated statements of cash flows | $ | $ | |||||||||
SUPPLEMENTAL INFORMATION | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for taxes | $ | $ | |||||||||
NON-CASH INVESTING AND FINANCING TRANSACTIONS | |||||||||||
Equity component of the convertible note issuance | $ | $ | |||||||||
ROU assets obtained from new finance leases | $ | $ | |||||||||
ROU assets obtained from new operating leases | $ | $ | |||||||||
Accretion of redeemable noncontrolling interest to redemption value | $ | $ | |||||||||
Financing Agreement | Vertex Acquisition | Total | |||||||||||||||
Inventory | $ | $ | $ | ||||||||||||||
Prepaid assets | |||||||||||||||||
Fixed assets | |||||||||||||||||
Total purchase price | $ | $ | $ |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||
Refining & Marketing | Black Oil & Recovery * | Corporate and Eliminations | Consolidated | ||||||||||||||||||||
Primary Geographical Markets | |||||||||||||||||||||||
Gulf Coast | $ | $ | $ | ( | $ | ||||||||||||||||||
Sources of Revenue | |||||||||||||||||||||||
Refined products: | |||||||||||||||||||||||
Gasolines | $ | $ | $ | $ | |||||||||||||||||||
Jet Fuels | |||||||||||||||||||||||
Diesel | |||||||||||||||||||||||
Other refinery products (1) | ( | ||||||||||||||||||||||
Re-refined products: | |||||||||||||||||||||||
Pygas | |||||||||||||||||||||||
Metals (2) | |||||||||||||||||||||||
Other re-refined products (3) | ( | ||||||||||||||||||||||
Services: | |||||||||||||||||||||||
Terminalling | |||||||||||||||||||||||
Oil collection services | |||||||||||||||||||||||
Total revenues | $ | $ | $ | ( | $ |
Three Months Ended March 31, 2022 | |||||||||||||||||||||||
Refining & Marketing | Black Oil & Recovery * | Corporate and Eliminations | Consolidated | ||||||||||||||||||||
Primary Geographical Markets | |||||||||||||||||||||||
Gulf Coast | $ | $ | $ | $ | |||||||||||||||||||
Sources of Revenue | |||||||||||||||||||||||
Refined products: | |||||||||||||||||||||||
Gasolines | $ | $ | $ | $ | |||||||||||||||||||
Diesel | |||||||||||||||||||||||
Other refinery products (1) | |||||||||||||||||||||||
Re-refined products: | |||||||||||||||||||||||
Pygas | |||||||||||||||||||||||
Metals (2) | |||||||||||||||||||||||
Other re-refined products (3) | |||||||||||||||||||||||
Services: | |||||||||||||||||||||||
Oil collection services | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ |
THREE MONTHS ENDED MARCH 31, 2023 | ||||||||||||||||||||||||||
Refining & Marketing | Black Oil & Recovery | Corporate and Eliminations | Total | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Refined products | $ | $ | $ | ( | $ | |||||||||||||||||||||
Re-refined products | ( | |||||||||||||||||||||||||
Services | ||||||||||||||||||||||||||
Total revenues | ( | |||||||||||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization shown separately below) | ( | |||||||||||||||||||||||||
Depreciation and amortization attributable to costs of revenues | ||||||||||||||||||||||||||
Gross profit | ( | |||||||||||||||||||||||||
Selling, general and administrative expenses | ||||||||||||||||||||||||||
Depreciation and amortization attributable to operating expenses | ||||||||||||||||||||||||||
Income (loss) from operations | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||
Capital expenditures | $ | $ | $ | $ |
THREE MONTHS ENDED MARCH 31, 2022 | ||||||||||||||||||||||||||
Refining & Marketing | Black Oil & Recovery | Corporate and Eliminations | Total | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Refined products | $ | $ | $ | $ | ||||||||||||||||||||||
Re-refined products | ||||||||||||||||||||||||||
Services | ||||||||||||||||||||||||||
Total revenues | ||||||||||||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization shown separately below) | ||||||||||||||||||||||||||
Depreciation and amortization attributable to costs of revenues | ||||||||||||||||||||||||||
Gross profit | ||||||||||||||||||||||||||
Selling, general and administrative expenses | ||||||||||||||||||||||||||
Depreciation and amortization attributable to operating expenses | ||||||||||||||||||||||||||
Income (loss) from operations | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||
Capital expenditures | $ | $ | $ | $ |
AS OF MARCH 31, 2023 | ||||||||||||||||||||||||||
Refining & Marketing | Black Oil & Recovery | Corporate and Eliminations | Consolidated | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ | ||||||||||||||||||||||
AS OF MARCH 31, 2022 | ||||||||||||||||||||||||||
Refining & Marketing | Black Oil & Recovery | Corporate and Eliminations | Consolidated | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ |
March 31, 2023 | December 31, 2022 | ||||||||||
Accounts receivable trade | $ | $ | |||||||||
Allowance for doubtful accounts | ( | ( | |||||||||
Accounts receivable, net | $ | $ |
As of and for the Three Months Ended | |||||||||||||||||||||||
March 31, 2023 | March 31, 2022 | ||||||||||||||||||||||
% of Revenues | % of Receivables | % of Revenues | % of Receivables | ||||||||||||||||||||
Customer 1 | |||||||||||||||||||||||
Customer 2 | |||||||||||||||||||||||
Customer 3 | |||||||||||||||||||||||
% of Revenue by Segment | % Revenue by Segment | ||||||||||||||||||||||||||||
March 31, 2023 | March 31, 2022 | ||||||||||||||||||||||||||||
Refining | Black Oil and Recovery | Refining | Black Oil and Recovery | ||||||||||||||||||||||||||
Customer 1 | |||||||||||||||||||||||||||||
Customer 2 | |||||||||||||||||||||||||||||
Customer 3 | |||||||||||||||||||||||||||||
As of March 31, 2023 | As of December 31, 2022 | ||||||||||
Crude oil | $ | $ | |||||||||
Refined products | |||||||||||
Re-refined products | |||||||||||
Total hydrocarbon inventories | $ | $ | |||||||||
March 31, 2023 | December 31, 2022 | |||||||||||||
Obligations under inventory financing agreement | $ | $ | ||||||||||||
Unamortized financing cost | ( | ( | ||||||||||||
Obligations under inventory financing agreement, net | $ | $ |
Three Months Ended March 31, | ||||||||
2023 | ||||||||
Intermediation fee | $ | |||||||
Inventory financing fees | $ | |||||||
Interest expense and financing costs, net | $ |
As of March 31, 2023 | As of December 31, 2022 | ||||||||||
Prepaid insurance | $ | $ | |||||||||
Commodity derivative advance | |||||||||||
Renewable volume obligation (RVO) assets | |||||||||||
Other prepaid expenses | |||||||||||
Independent deposit | |||||||||||
Other current assets | |||||||||||
Total prepaid expenses | $ | $ |
Useful Life (in years) | March 31, 2023 | December 31, 2022 | |||||||||||||||
Equipment | $ | $ | |||||||||||||||
Furniture and fixtures | |||||||||||||||||
Leasehold improvements | |||||||||||||||||
Office equipment | |||||||||||||||||
Vehicles | |||||||||||||||||
Building | |||||||||||||||||
Turnarounds | |||||||||||||||||
Construction in progress | |||||||||||||||||
Land | |||||||||||||||||
Total fixed assets | |||||||||||||||||
Less accumulated depreciation | ( | ( | |||||||||||||||
Net fixed assets | $ | $ |
March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||
Useful Life (in years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||||||||||
Customer relations | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Vendor relations | ||||||||||||||||||||||||||||||||||||||||||||
Trademark/Trade name | ||||||||||||||||||||||||||||||||||||||||||||
TCEP Technology/Patent | ||||||||||||||||||||||||||||||||||||||||||||
Non-compete | ||||||||||||||||||||||||||||||||||||||||||||
Software | ||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
March 31, | Balance | ||||
2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
$ |
March 31, 2023 | December 31, 2022 | |||||||||||||
Accrued purchases | $ | $ | ||||||||||||
Accrued interest | ||||||||||||||
Accrued compensation and benefits | ||||||||||||||
Accrued income, real estate, sales and other taxes | ||||||||||||||
RINS liabilities | ||||||||||||||
Environmental liabilities - current | ||||||||||||||
Unearned Revenue | ||||||||||||||
$ | $ |
Creditor | Loan Type | Balance at March 31, 2023 | Balance at December 31, 2022 | ||||||||||||||
Senior Convertible Note | Convertible note | $ | $ | ||||||||||||||
Term Loan 2025 | Loan | ||||||||||||||||
SBA Loan | SBA Loan | ||||||||||||||||
Various institutions | Insurance premiums financed | ||||||||||||||||
Principal amount of long-term debt | |||||||||||||||||
Less: unamortized discount and deferred financing costs | ( | ( | |||||||||||||||
Total debt, net of unamortized discount and deferred financing costs | |||||||||||||||||
Less: current maturities, net of unamortized discount and deferred financing costs | ( | ( | |||||||||||||||
Long-term debt, net of current maturities | $ | $ |
Period Ended March 31, | Amount Due | |||||||
2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Total | $ |
March 31, 2023 | December 31, 2022 | |||||||||||||
Principal amounts at beginning of period | $ | $ | ||||||||||||
Conversion of principal into common stock | ( | |||||||||||||
Outstanding principal amount | ||||||||||||||
Unamortized discount and issuance costs | ( | ( | ||||||||||||
Net carrying amount at end of period | $ | $ |
Creditor | Loan Type | March 31, 2023 | December 31, 2022 | ||||||||||||||
VRA Finance lease | Finance Lease | $ | $ | ||||||||||||||
Plaquemines | Finance Lease | ||||||||||||||||
Harvey Ford | Finance Lease | ||||||||||||||||
DLL financial | Finance Lease | ||||||||||||||||
Centerpoint Blakely | Finance Lease | ||||||||||||||||
$ | $ |
Period Ended March 31, | Amount Due | |||||||
2024 | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
Total lease payments | ||||||||
Less: interest | ( | |||||||
Present value of financing lease liabilities | $ |
Three Months Ended March 31, | ||||||||||||||
Lease Cost Type | 2023 | 2022 | ||||||||||||
Amortization of finance lease ROU assets | $ | $ | ||||||||||||
Interest on lease liabilities | ||||||||||||||
Net finance lease costs | $ | $ |
Three Months Ended March 31, | ||||||||||||||
Lease Cost Type | 2023 | 2022 | ||||||||||||
Operating lease cost | $ | $ | ||||||||||||
Variable lease cost | ||||||||||||||
Short-term lease cost | ||||||||||||||
Net lease cost | $ | $ |
Three Months Ended March 31, | ||||||||||||||
Lease Cost Type | 2023 | 2022 | ||||||||||||
Cash paid for amounts included in the measurement of liabilities | ||||||||||||||
Payments on financing lease | $ | $ | ||||||||||||
Payments on operating lease | $ | $ | ||||||||||||
Non-cash supplemental amounts | ||||||||||||||
ROU assets obtained from new finance lease liabilities | $ | $ | ||||||||||||
ROU assets obtained from new operating lease liabilities | $ | $ | ||||||||||||
For the period ending March 31, | Facilities | Equipment | Plant | Railcar | Total | ||||||||||||||||||||||||
2024 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
2025 | |||||||||||||||||||||||||||||
2026 | |||||||||||||||||||||||||||||
2027 | |||||||||||||||||||||||||||||
2028 | |||||||||||||||||||||||||||||
Thereafter | |||||||||||||||||||||||||||||
Total lease payments | |||||||||||||||||||||||||||||
Less: interest | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Present value of operating lease liabilities | $ | $ | $ | $ | $ |
Remaining lease term and discount rate: | March 31, 2023 | |||||||
Weighted average remaining lease terms (years) | ||||||||
Lease facilities | ||||||||
Lease equipment | ||||||||
Lease plant | ||||||||
Lease railcar | ||||||||
Weighted average discount rate | ||||||||
Lease facilities | % | |||||||
Lease equipment | % | |||||||
Lease plant | % | |||||||
Lease railcar | % |
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Basic income (loss) per Share | ||||||||||||||
Numerator: | ||||||||||||||
Net income (loss) attributable to shareholders from continuing operations | $ | $ | ( | |||||||||||
Net income attributable to shareholders from discontinued operations, net of tax | ||||||||||||||
Net income (loss) attributable to common shareholders | $ | $ | ( | |||||||||||
Denominator: | ||||||||||||||
Weighted-average common shares outstanding | ||||||||||||||
Basic income (loss) per common shares | ||||||||||||||
Continuing operations | $ | $ | ( | |||||||||||
Discontinued operations, net of tax | ||||||||||||||
Basic income (loss) per share | $ | $ | ( | |||||||||||
Diluted Income (Loss) per Share | ||||||||||||||
Numerator: | ||||||||||||||
Net income (loss) attributable to shareholders from continuing operations | $ | $ | ( | |||||||||||
Net income available to shareholders from discontinued operations, net of tax | ||||||||||||||
Net income (loss) available to common shareholders | $ | $ | ( | |||||||||||
Denominator: | ||||||||||||||
Weighted-average shares outstanding* | ||||||||||||||
Effect of dilutive securities | ||||||||||||||
Stock options and warrants | ||||||||||||||
Diluted weighted-average shares outstanding | ||||||||||||||
Diluted income (loss) per common shares | ||||||||||||||
Continuing operations | $ | $ | ( | |||||||||||
Discontinued operations, net of tax | ||||||||||||||
Diluted income (loss) per share | $ | $ | ( |
As of March 31, 2023 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Derivative instruments, assets | |||||||||||||||||||||||
Commodity | $ | $ | $ | $ | |||||||||||||||||||
Derivative instruments, assets | |||||||||||||||||||||||
Derivative instruments, liabilities | |||||||||||||||||||||||
Derivative warrants | |||||||||||||||||||||||
Derivative warrants, liabilities | |||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | ( | |||||||||||||||||
As of December 31, 2022 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Derivative instruments, assets | |||||||||||||||||||||||
Commodity | $ | $ | $ | $ | |||||||||||||||||||
Derivative instruments, assets | |||||||||||||||||||||||
Derivative instruments, liabilities | |||||||||||||||||||||||
Commodity | |||||||||||||||||||||||
Derivative warrants | |||||||||||||||||||||||
Derivative warrants, liabilities | |||||||||||||||||||||||
Total | $ | ( | $ | $ | ( | $ | ( |
Dynamic Black-Scholes Merton Unobservable Inputs | ||||||||||||||
Initial Warrants | Additional Warrants | |||||||||||||
Expected dividend rate | % | % | ||||||||||||
Expected volatility | % | % | ||||||||||||
Risk free interest rate | % | % | ||||||||||||
Expected term |
Level Three Roll-Forward | ||||||||||||||
March 31, 2023 | December 31, 2022 | |||||||||||||
Balance at beginning of period | $ | $ | ||||||||||||
Warrants granted | ||||||||||||||
Equity component of the convertible senior note | ( | |||||||||||||
Change in valuation of warrants included in net income | ( | |||||||||||||
Balance at end of period | $ | $ |
As of March 31, 2023 | ||||||||||||||
Contract Type | Contract Period | Weighted Average Strike Price (Barrels) | Remaining Volume (Barrels) | Fair Value | ||||||||||
(in thousands) | (in thousands) | |||||||||||||
Futures | Mar. 2023 - May 2023 | $ | $ | ( | ||||||||||
Futures | Mar. 2023 - May 2023 | $ | $ | ( | ||||||||||
Futures | Mar. 2023 - May 2023 | $ | $ | |||||||||||
Futures | Mar. 2023 - Jun. 2023 | $ | $ | ( | ||||||||||
Futures | Jan. 2023 - Jul. 2023 | $ | $ | |||||||||||
As of December 31, 2022 | ||||||||||||||
Contract Type | Contract Period | Weighted Average Strike Price (Barrels) | Remaining Volume (Barrels) | Fair Value | ||||||||||
(in thousands) | (in thousands) | |||||||||||||
Swap | Nov. 2022 - Feb. 2023 | $ | $ | ( | ||||||||||
Swap | Nov. 2022 - Feb. 2023 | $ | $ | ( | ||||||||||
Futures | Sept. 2022 - Dec. 2022 | $ | $ | |||||||||||
Futures | Sept. 2022 - Dec. 2022 | $ | $ | ( | ||||||||||
Futures | Nov. 2022 - Feb. 2023 | $ | $ | ( | ||||||||||
Futures | Sept. 2022 - Dec. 2022 | $ | $ | |||||||||||
Futures | Dec. 2022 - Mar. 2023 | $ | $ | ( | ||||||||||
Futures | Dec. 2022 - Apr. 2023 | $ | $ | ( | ||||||||||
Futures | Dec. 2022 - May. 2023 | $ | $ | ( | ||||||||||
Futures | Dec. 2022 - Jun. 2023 | $ | $ | |||||||||||
Balance Sheet Classification | Contract Type | March 31, 2023 | December 31, 2022 | |||||||||||
Crude oil futures | $ | $ | ||||||||||||
Crude oil swaps | ( | |||||||||||||
Crude oil futures | ( | ( | ||||||||||||
Derivative commodity asset(liability) | $ | $ | ( |
March 31, 2022 | |||||
Assets and liabilities changes: | |||||
Assets held for sale to assets held and used | $ | ||||
Liabilities held for sale to liabilities held and paid | $ | ( | |||
Net income changes: | |||||
Net income from discontinued operations to continued operation | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Revenues | $ | $ | |||||||||
Cost of revenues (exclusive of depreciation shown separately below) | |||||||||||
Depreciation and amortization attributable to costs of revenues | |||||||||||
Gross profit | |||||||||||
Operating expenses: | |||||||||||
Selling, general and administrative expenses (exclusive of depreciation shown separately below) | |||||||||||
Depreciation and amortization expense attributable to operating expenses | |||||||||||
Total operating expenses | |||||||||||
Income from operations | |||||||||||
Other income (expense) | |||||||||||
Interest expense | ( | ||||||||||
Total other expense | ( | ||||||||||
Income before income tax | |||||||||||
Income tax expense | ( | ||||||||||
Gain on sale of discontinued operations, net of $ | |||||||||||
Income from discontinued operations, net of tax | $ | $ |
December 31, 2022 | ||||||||
ASSETS | ||||||||
Accounts receivable, net | $ | |||||||
Inventory | ||||||||
Prepaid expenses | ||||||||
Total current assets | ||||||||
Fixed assets, at cost | ||||||||
Less accumulated depreciation | ( | |||||||
Fixed assets, net | ||||||||
Operating lease right-of use assets | ||||||||
Intangible assets, net | ||||||||
Total noncurrent assets | ||||||||
Assets held for sale | ||||||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | ||||||||
Accrued expenses | ||||||||
Operating lease liability | ||||||||
Liabilities held for sale | $ | |||||||
2023 | ||||||||||||||||||||||||||
Benchmark | High | Date | Low | Date | ||||||||||||||||||||||
Crackspread 2-1-1 (dollars per barrel) (1) | $ | 44.50 | January 23 | $ | 24.05 | February 17 | ||||||||||||||||||||
U.S. Gulfcoast No. 2 Waterborne (dollars per gallon) | $ | 3.23 | January 23 | $ | 2.05 | February 16 | ||||||||||||||||||||
U.S. Gulfcoast Unleaded 87 Waterborne (dollars per gallon) | $ | 2.79 | January 23 | $ | 2.30 | January 5 | ||||||||||||||||||||
U.S. Gulfcoast Residual Fuel No. 6 3% (dollars per barrel) | $ | 64.10 | March 6 | $ | 50.48 | January 4 | ||||||||||||||||||||
NYMEX Crude oil (dollars per barrel) | $ | 84.33 | January 19 | $ | 66.74 | March 17 | ||||||||||||||||||||
Reported in Platt’s US Marketscan (Gulf Coast) | ||||||||||||||||||||||||||
(1) The Gulf Coast 2-1-1 crack spread is calculated using two barrels of LLS (Louisiana Light Sweet crude oil) producing one barrel of USGC CBOB gasoline and one barrel of USGC ultra-low sulfur diesel. |
2022 | ||||||||||||||||||||||||||
Benchmark | High | Date | Low | Date | ||||||||||||||||||||||
U.S. Gulfcoast No. 2 Waterborne (dollars per gallon) | $ | 4.36 | March 8 | $ | 2.15 | January 3 | ||||||||||||||||||||
U.S. Gulfcoast Unleaded 87 Waterborne (dollars per gallon) | $ | 3.53 | March 8 | $ | 2.26 | January 3 | ||||||||||||||||||||
U.S. Gulfcoast Residual Fuel No. 6 3% (dollars per barrel) | $ | 112.93 | March 8 | $ | 67.84 | January 3 | ||||||||||||||||||||
NYMEX Crude oil (dollars per barrel) | $ | 123.70 | March 8 | $ | 76.08 | January 3 | ||||||||||||||||||||
Reported in Platt’s US Marketscan (Gulf Coast) |
Refining and Marketing(1) | Black Oil and Recovery (2) | |||||||
Gasolines | X | |||||||
Jet Fuel | X | |||||||
Distillates | X | |||||||
Base oil | X | |||||||
VGO/Marine fuel | X | X | ||||||
Other refined products (3) | X | X | ||||||
Pygas | X | |||||||
Metals (4) | X | |||||||
Other re-refined products (5) | X | X | ||||||
Terminalling | X | |||||||
Oil collection services | X |
Three Months Ended March 31, | |||||||||||||||||
2023 | 2022 | Variance | |||||||||||||||
Revenues | $ | 691,142 | $ | 74,537 | $ | 616,605 | |||||||||||
Cost of revenues (exclusive of depreciation and amortization shown separately below) | 619,352 | 60,990 | (558,362) | ||||||||||||||
Depreciation and amortization attributable to costs of revenues | 4,337 | 1,027 | (3,310) | ||||||||||||||
Gross profit | 67,453 | 12,520 | 54,933 | ||||||||||||||
Operating expenses: | |||||||||||||||||
Selling, general and administrative expenses | 41,942 | 12,149 | 29,793 | ||||||||||||||
Depreciation and amortization attributable to operating expenses | 1,016 | 409 | 607 | ||||||||||||||
Total operating expenses | 42,958 | 12,558 | 30,400 | ||||||||||||||
Income (loss) from operations | 24,495 | (38) | 24,533 | ||||||||||||||
Other income (expense): | |||||||||||||||||
Other income | 1,653 | 472 | 1,181 | ||||||||||||||
Loss on change in value of derivative warrant liability | (9,185) | (3,579) | (5,606) | ||||||||||||||
Interest expense | (12,477) | (4,221) | (8,256) | ||||||||||||||
Total other expense | (20,009) | (7,328) | (12,681) | ||||||||||||||
Income (loss) from continuing operation before income tax | 4,486 | (7,366) | 11,852 | ||||||||||||||
Income tax expense | (1,013) | — | (1,013) | ||||||||||||||
Income (loss) from continuing operations | 3,473 | (7,366) | 10,839 | ||||||||||||||
Income from discontinued operations, net of tax | 50,340 | 6,557 | 43,783 | ||||||||||||||
Net income (loss) | 53,813 | (809) | 54,622 | ||||||||||||||
Net loss attributable to non-controlling interest and redeemable non-controlling interest from continuing operations | (50) | (68) | 18 | ||||||||||||||
Net income attributable to non-controlling interest and redeemable non-controlling from discontinued operations | — | 3,807 | (3,807) | ||||||||||||||
Net income (loss) attributable to Vertex Energy, Inc. | $ | 53,863 | $ | (4,548) | $ | 58,411 | |||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Refining and Marketing Segment (in thousands) | Mobile Refinery | Legacy Refining and Marketing | Total Refining and Marketing | Legacy Refining and Marketing | |||||||||||||||||||
Revenues | $ | 632,692 | $ | 26,636 | $ | 659,328 | $ | 34,719 | |||||||||||||||
Cost of revenues (exclusive of variable production costs and depreciation and amortization shown separately below) | 542,826 | 25,734 | 568,560 | 33,086 | |||||||||||||||||||
Variable production costs attributable to costs of revenues | 21,252 | — | 21,252 | — | |||||||||||||||||||
Depreciation and amortization attributable to costs of revenues | 3,144 | 150 | 3,294 | 123 | |||||||||||||||||||
Gross profit (loss) | 65,470 | 752 | 66,222 | 1,510 | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Selling general and administrative expense | 24,681 | 1,805 | 26,486 | 1,125 | |||||||||||||||||||
Depreciation and amortization attributable to operating expenses | 736 | 72 | 808 | 105 | |||||||||||||||||||
Total operating expenses | 25,417 | 1,877 | 27,294 | 1,230 | |||||||||||||||||||
Income (loss) from operations | 40,053 | (1,125) | 38,928 | 280 | |||||||||||||||||||
Other income (expenses) | |||||||||||||||||||||||
Interest expense | (3,876) | — | (3,876) | — | |||||||||||||||||||
Net income (loss) | $ | 36,177 | $ | (1,125) | $ | 35,052 | $ | 280 | |||||||||||||||
Refining adjusted EBITDA * | $ | 41,831 | $ | (971) | $ | 40,860 | $ | 508 | |||||||||||||||
Key performance indicators: | |||||||||||||||||||||||
Fuel Gross Margin * | $ | 103,802 | n/a | n/a | n/a | ||||||||||||||||||
Adjusted Gross Margin* | $ | 63,369 | n/a | n/a | n/a | ||||||||||||||||||
Fuel Gross Margin Per Barrel of Throughput (1)* | $ | 16.17 | n/a | n/a | n/a | ||||||||||||||||||
Adjusted Gross Margin Per Barrel of Throughput (1)* | $ | 9.87 | n/a | n/a | n/a | ||||||||||||||||||
USGC 2-1-1 Crack Spread Per Barrel (2) | $ | 31.59 | n/a | n/a | n/a | ||||||||||||||||||
Operating Expenses Per Barrel of Throughput (3) | $ | 3.84 | n/a | n/a | n/a | ||||||||||||||||||
Variable Production Costs Per Barrel of Throughput (4) | $ | 3.31 | n/a | n/a | n/a |
Three Months Ended March 31, 2023 | |||||
Refinery throughput (bpd) | |||||
Crude oil | 71,328 | ||||
Total throughput | 71,328 | ||||
Refinery Yields (bpd) | |||||
Gasolines | 15,723 | ||||
Distillates | 14,720 | ||||
Jet fuel | 12,789 | ||||
Other (1) | 26,119 | ||||
Total average barrel yields per day | 69,351 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Mobile Refinery | Legacy Refining and Marketing | Total Refining and Marketing | Legacy Refining and Marketing | ||||||||||||||||||||
Gross profit (loss) | $ | 65,470 | $ | 752 | $ | 66,222 | $ | 1,510 | |||||||||||||||
Unrealized gain on hedging activities | (570) | (67) | (637) | — | |||||||||||||||||||
Inventory valuation adjustments | (1,532) | — | (1,532) | — | |||||||||||||||||||
Adjusted Gross Margin | 63,368 | 685 | 64,053 | 1,510 | |||||||||||||||||||
Variable production costs included in cost of revenues | 21,252 | — | 21,252 | — | |||||||||||||||||||
Depreciation and amortization attributable to costs of revenues | 3,144 | 150 | 3,294 | 123 | |||||||||||||||||||
RFS expense (mainly RINs) | 16,115 | — | 16,115 | — | |||||||||||||||||||
Realized loss on hedging activities | (439) | (31) | (470) | 347 | |||||||||||||||||||
Financing costs | 2,295 | — | 2,295 | — | |||||||||||||||||||
Other revenues | (1,933) | — | (1,933) | — | |||||||||||||||||||
Fuel Gross Margin | $ | 103,802 | $ | 804 | $ | 104,606 | $ | 1,980 | |||||||||||||||
Throughput (bpd) | 71,328 | n/a | n/a | n/a | |||||||||||||||||||
Fuel Gross Margin Per Barrel of Throughput | $ | 16.17 | n/a | n/a | n/a | ||||||||||||||||||
Adjusted Gross Margin Per Barrel of Throughput | $ | 9.87 | n/a | n/a | n/a | ||||||||||||||||||
Net income (loss) | $ | 36,177 | $ | (1,125) | $ | 35,052 | $ | 280 | |||||||||||||||
Unrealized gain on hedging activities | (570) | (67) | (637) | — | |||||||||||||||||||
Depreciation and amortization | 3,880 | 222 | 4,102 | 228 | |||||||||||||||||||
Interest expenses | 3,876 | — | 3,876 | — | |||||||||||||||||||
Inventory valuation adjustment | (1,532) | — | (1,532) | — | |||||||||||||||||||
Refining Adjusted EBITDA | $ | 41,831 | $ | (970) | $ | 40,861 | $ | 508 |
Three Months Ended March 31, | |||||||||||||||||
Black Oil and Recovery | 2023 | 2022 | Variance* | ||||||||||||||
Revenues | |||||||||||||||||
Refined products: | |||||||||||||||||
Other refinery products (1) | $ | 29,423 | $ | 34,952 | $ | (5,529) | |||||||||||
Re-refined products: | |||||||||||||||||
Metals (2) | 3,413 | 4,057 | (644) | ||||||||||||||
Other re-refined products (3) | 281 | 258 | 23 | ||||||||||||||
Services: | |||||||||||||||||
Oil collection services | 1,587 | 551 | 1,036 | ||||||||||||||
Revenues | 34,704 | 39,818 | (5,114) | ||||||||||||||
Cost of revenues (exclusive of depreciation and amortization shown separately below) | 30,418 | 27,904 | (2,514) | ||||||||||||||
Depreciation and amortization attributable to costs of revenues | 1,043 | 904 | (139) | ||||||||||||||
Gross profit | 3,243 | 11,010 | (7,767) | ||||||||||||||
Operating expenses | |||||||||||||||||
Selling general and administrative expense | 4,799 | 4,123 | (676) | ||||||||||||||
Depreciation and amortization attributable to operating expenses | 38 | 58 | 20 | ||||||||||||||
Total operating expenses | 4,837 | 4,181 | (656) | ||||||||||||||
Income (loss) from operations | (1,594) | 6,829 | (7,111) | ||||||||||||||
Other income (expenses) | |||||||||||||||||
Other income | 1,655 | 472 | 1,183 | ||||||||||||||
Interest expense | (57) | — | (57) | ||||||||||||||
Net income | $ | 4 | $ | 7,301 | $ | (5,985) | |||||||||||
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Beginning cash, cash equivalents and restricted cash | $ | 146,187 | $ | 136,627 | ||||||||||
Net cash provided by (used in): | ||||||||||||||
Operating activities | (36,801) | (3,991) | ||||||||||||
Investing activities | 13,302 | (6,692) | ||||||||||||
Financing activities | (27,570) | (1,397) | ||||||||||||
Net decrease in cash, cash equivalents and restricted cash | (51,069) | (12,080) | ||||||||||||
Ending cash, cash equivalents and restricted cash | $ | 95,118 | $ | 124,547 |
Incorporated by Reference | ||||||||||||||||||||||||||||||||||||||
Exhibit Number | Description of Exhibit | Filed or Furnished Herewith | Form | Exhibit | Filing Date/Period End Date | File No. | ||||||||||||||||||||||||||||||||
10.1 | 8-K | 10.1 | 1/12/2023 | 001-11476 | ||||||||||||||||||||||||||||||||||
10.2 | 8-K | 10.2 | 1/12/2023 | 001-11476 | ||||||||||||||||||||||||||||||||||
10.3# | 8-K | 10.2 | 4/20/2023 | 001-11476 | ||||||||||||||||||||||||||||||||||
31.1* | X | |||||||||||||||||||||||||||||||||||||
31.2* | X | |||||||||||||||||||||||||||||||||||||
32.1** | X | |||||||||||||||||||||||||||||||||||||
32.2** | X | |||||||||||||||||||||||||||||||||||||
101* | Inline XBRL Document Set for the condensed consolidated financial statements and accompanying notes in Part I, Item 1, “Financial Statements” of this Quarterly Report on Form 10-Q | X | ||||||||||||||||||||||||||||||||||||
101.INS* | Inline XBRL Instance Document- the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | X | ||||||||||||||||||||||||||||||||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | X | ||||||||||||||||||||||||||||||||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
104* | Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set | X |
VERTEX ENERGY, INC. | |||||
Date: May 8, 2023 | By: /s/ Benjamin P. Cowart | ||||
Benjamin P. Cowart | |||||
Chief Executive Officer | |||||
(Principal Executive Officer) | |||||
Date: May 8, 2023 | By: /s/ Chris Carlson | ||||
Chris Carlson | |||||
Chief Financial Officer | |||||
(Principal Financial/Accounting Officer) |
Date: May 8, 2023 | By: | /s/ Benjamin P. Cowart | ||||||
Benjamin P. Cowart Chief Executive Officer (Principal Executive Officer) |
Date: May 8, 2023 | By: | /s/ Chris Carlson | ||||||
Chris Carlson Chief Financial Officer (Principal Financial/Accounting Officer) |
Date: May 8, 2023 | By: | /s/ Benjamin P. Cowart | ||||||
Benjamin P. Cowart Chief Executive Officer (Principal Executive Officer) |
Date: May 8, 2023 | By: | /s/ Chris Carlson | ||||||
Chris Carlson Chief Financial Officer (Principal Financial/Accounting Officer) |
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 75,834,826 | 75,668,826 |
Common stock, shares outstanding (in shares) | 75,834,826 | 75,668,826 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (Parenthetical) - $ / shares |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Preferred stock, par value (in dollars per share) | 0.001 | ||
Series A Preferred Stock | |||
Preferred stock, par value (in dollars per share) | 0.001 | $ 0.001 | |
Common Stock | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
BASIS OF PRESENTATION AND NATURE OF OPERATIONS |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND NATURE OF OPERATIONS | BASIS OF PRESENTATION AND NATURE OF OPERATIONS Vertex Energy, Inc. (the "Company" or "Vertex Energy") is an energy transition company focused on the production and distribution of conventional and alternative fuels. We operate used motor oil processing plants in Houston, Texas, Port Arthur, Texas, Marrero, Louisiana, and Columbus, Ohio. As of April 1, 2022, we own a refinery in Mobile, Alabama (the “Mobile Refinery”) with an operable refining capacity of 75,000 barrels per day (“bpd”) and more than 3.2 million barrels of storage capacity. The total purchase consideration was $75.0 million in cash plus $16.3 million in previously agreed upon capital expenditures and miscellaneous prepaid and reimbursable items. At the time of the acquisition, the Company also purchased $130.0 million in hydrocarbon inventories of which $124.0 million were financed under an inventory financing agreement. See Note 3 “Mobile Refinery Acquisition” and Note 10 “Inventory Financing Agreement” for additional information. The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC") and should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2022, contained in the Company's annual report, as filed with the SEC on Form 10-K on March 1, 2023 (the "Form 10-K"). The March 31, 2022 statement of operations was retroactively restated from the unaudited financial statements of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, to account for the change for our discontinued business, see Note 23 "Discontinued Operations". In the opinion of management all adjustments, consisting of normal recurring adjustments necessary for a fair presentation of financial position and the results of operations for the interim periods presented, have been reflected herein. All significant intercompany transactions have been eliminated in consolidation. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosures contained in the audited consolidated financial statements for the most recent fiscal year 2022 as reported in Form 10-K have been omitted. Used Motor Oils Business ("UMO Business") As of December 31, 2022, our UMO Business consisted of our used oil refinery in Marrero, Louisiana, our Heartland used oil refinery in Ohio, our H&H and Heartland used motor oil (UMO) collections business; our oil filters and absorbent materials recycling facility in East Texas; and the rights to a lease at the Cedar Marine terminal in Baytown, Texas. The UMO Business is presented as part of our Black Oil segment in our consolidated financial statements. On February 1, 2023, HPRM LLC (“HPRM”), which is indirectly wholly-owned by the Company, entered into a Sale and Purchase Agreement (the “Sale Agreement”) with GFL Environmental Services USA, Inc. (“GFL”) whereby HPRM agreed to sell to GFL, and GFL agreed to purchase from HPRM, all of HPRM’s equity interest in Vertex Refining OH, LLC (“Vertex OH”), our wholly-owned subsidiary, which owns the Heartland refinery located in Columbus, Ohio (the “Heartland Refinery”). Vertex Operating and GFL Environmental Inc. (“GFL Environmental”), an affiliate of GFL, were also parties to the Sale Agreement, solely for the purpose of providing certain guarantees of the obligations of HPRM and GFL as discussed in greater detail below. The sale also includes all property and assets owned by Vertex OH, including inventory associated with the Heartland Refinery, and all real and leased property and permits owned by Vertex OH, and all used motor oil collection and recycling assets and operations owned by Vertex OH (collectively with the Heartland Refinery, the “Heartland Assets and Operations”). The transactions contemplated by the Sale Agreement closed on February 1, 2023 with a net cash settlement of $87.3 million. Vertex Operating guaranteed all of the obligations of HPRM pursuant to the terms of the Sale Agreement and GFL Environmental guaranteed all of the obligations of GFL pursuant to the terms of the Sale Agreement. As a result of the above, the Company determined to present the Heartland Assets and Operations as discontinued operations as of December 31, 2022 and for the quarters ended March 31, 2023 and 2022. Use of Estimates The preparation of generally accepted accounting principles in the United States (“GAAP”) financial statements requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and reported amounts of revenue and expenses. Actual results could differ from these estimates. Any effects on the business, financial position or results of operations from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Reclassification of Prior Year Presentation Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications had no effect on the reported results of operations. The Company reclassified $7.2 million of net income from discontinued operations to continued operations in the accompanying three months ended March 31, 2022 Consolidated Statement of Operations. Refer to “Note 23. Discontinued Operations” for more detailed information.
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SUMMARY OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES |
3 Months Ended |
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Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES | SUMMARY OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES With the exception of the accounting policies below, there have been no new or material changes to the significant accounting policies discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Restricted cash as of March 31, 2023, consisted of a $6.8 million deposit in a bank for financing of a short-term equipment lease, a $1.5 million deposit in a bank for possible liabilities related to the Heartland Assets and Operations sale, and a $0.1 million deposit in a money market account to serve as collateral for payment of a credit card. Restricted cash as of December 31, 2022, consisted of a $4.8 million deposit in a bank for financing of a short-term equipment lease, and a $0.1 million deposit in a money market account to serve as collateral for payment of a credit card. New Accounting Pronouncements The Company has not identified any recent accounting pronouncements that are expected to have a material impact on our financial condition, results of operations or cash flows upon adoption.
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MOBILE REFINERY ACQUISITION |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MOBILE REFINERY ACQUISITION | MOBILE REFINERY ACQUISITION On April 1, 2022, the Company completed the acquisition of a 75,000 bpd crude oil refinery located ten miles north of Mobile, in Saraland, Alabama (the “Mobile Refinery”) from Equilon Enterprises LLC d/b/a Shell Oil Products US, Shell Oil Company and Shell Chemical LP, subsidiaries of Shell plc (“Shell”)(the “Mobile Acquisition”), which provided the Company the opportunity to enter the crude oil refining industry. Total consideration for the acquisition was approximately $227.5 million, of which $124.3 million was paid by Macquarie Energy North America Trading, Inc (“Macquarie”) as a result of the simultaneous sale of such inventory to Macquarie pursuant to an Inventory Sales Agreement between our wholly-owned subsidiary, Vertex Refining, NV, LLC (“Vertex Refining”), and Macquarie. Refer to “Note 10. Inventory Financing Arrangement” for more detailed information. The following table summarizes the determination and recognition of assets acquired (in thousands):
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COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
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Mar. 31, 2023 | |
Environmental Remediation Obligations [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation The Company, in its normal course of business, is involved in various other claims and legal action. In the opinion of management, the outcome of these claims and actions will not have a material adverse impact upon the financial position of the Company. We are currently party to the following material litigation proceedings: Doucet litigation: Vertex Refining LA, LLC (“Vertex Refining LA”), the wholly-owned subsidiary of Vertex Operating was named as a defendant, along with numerous other parties, in five lawsuits filed on or about February 12, 2016, in the Second Parish Court for the Parish of Jefferson, State of Louisiana, Case No. 121749, by Russell Doucet et. al., Case No. 121750, by Kendra Cannon et. al., Case No. 121751, by Lashawn Jones et. al., Case No. 121752, by Joan Strauss et. al. and Case No. 121753, by Donna Allen et. al. The suits relate to alleged noxious and harmful emissions from our facility located in Marrero, Louisiana. The suits seek damages for physical and emotional injuries, pain and suffering, medical expenses and deprivation of the use and enjoyment of plaintiffs’ homes. We intend to vigorously defend ourselves and oppose the relief sought in the complaints, provided that at this stage of the litigation, the Company has no basis for determining whether there is any likelihood of material loss associated with the claims and/or the potential and/or the outcome of the litigation. Penthol litigation: On November 17, 2020, Vertex filed a lawsuit against Penthol LLC (“Penthol”) in the 61st Judicial District Court of Harris County, Texas, Cause No. 2020-65269, for breach of contract and simultaneously sought a Temporary Restraining Order and Temporary Injunction enjoining Penthol from, among other things, circumventing Vertex in violation of the terms of that certain June 5, 2016 Sales Representative and Marketing Agreement entered into between Vertex Operating and Penthol (the “Penthol Agreement”). Vertex seeks damages, attorney’s fees, costs of court, and all other relief to which it may be entitled. On February 8, 2021, Penthol filed a complaint against Vertex Operating in the United States District Court for the Southern District of Texas; Civil Action No. 4:21-CV-416 (the “Complaint”). Penthol’s Complaint sought damages from Vertex Operating for alleged violations of the Sherman Act, breach of contract, business disparagement, and misappropriation of trade secrets under the Defend Trade Secrets Act and Texas Uniform Trade Secrets Act. On August 12, 2021, United States District Judge Andrew S. Hanen dismissed Penthol’s Sherman Act claim. Penthol’s remaining claims are pending. Penthol is seeking a declaration that Vertex has materially breached the agreement; an injunction that prohibits Vertex from using Penthol’s alleged trade secrets and requires Vertex to return any of Penthol’s alleged trade secrets; awards of actual, consequential and exemplary damages, attorneys’ fees and costs of court; and other relief to which it may be entitled. Vertex denies Penthol’s allegations in the Complaint. Vertex contends Penthol’s claims are completely without merit, and that Penthol’s termination of the Penthol Agreement was wrongful and resulted in damages to Vertex that it is seeking to recover in the Harris County lawsuit. Further, Vertex contends that Penthol’s termination of the Penthol Agreement constitutes a breach by Penthol under the express terms of the Penthol Agreement, and that Vertex remains entitled to payment of the amounts due Vertex under the Penthol Agreement for unpaid commissions and unpaid performance incentives. Vertex disputes Penthol’s allegations of wrongdoing and intends to vigorously defend itself in this matter. On February 26, 2021, Penthol filed its second amended answer and counterclaims, alleging that Vertex improperly terminated the Penthol Agreement and that Vertex tortiously interfered with Penthol’s prospective and existing business relationships. Vertex denies these allegations and is vigorously defending them. The parties agreed to move the pending claims and defenses in the Texas state court lawsuit into the federal court lawsuit. Both parties also sought to amend their pleadings to add additional claims. By order dated October 18, 2022, the Judge in the lawsuit, largely granted these requests. As a result, Vertex was granted leave to add Penthol C.V. as a defendant. Penthol was granted leave to add claims for fraud and breach of contract relating to an assignment agreement, and add claims for misappropriation of trade secrets. All pending claims between the parties are now in the federal court action. The parties recently conducted numerous depositions and substantial document discovery. Vertex has filed a motion for summary judgment, and Penthol has filed a motion for partial summary judgment, both of which are pending. This case is pending, but is currently set for trial in October 2023. Class Action: On April 13, 2023, William C. Passmore filed a putative class action lawsuit against the Company; Benjamin P. Cowart, our Chief Executive Officer and Chairman; and Chris Carlson, our Chief Financial Officer; in the United States District Court for the Southern District of Alabama Southern Division. The suit alleges that the Company, through Messrs. Cowart and Carlson, issued materially false and misleading statements regarding the projected future financial performance of the Mobile Refinery in 2022. The plaintiff has asserted claims for violations of Section 10(b) of the Exchange Act, and Rule 10b-5 promulgated thereunder, and Section 20(a) of the Exchange Act, against all defendants. Plaintiff is seeking multiple forms of relief, including compensatory damages for plaintiff and putative class members in an amount to be established at trial, an award of interest, attorneys’ fees and costs and expenses incurred in the action, and unspecified equitable and injunctive relief. The Company has retained counsel and its assessment of the plaintiff’s allegations is ongoing; however, all defendants intend to dispute and vigorously defend against the allegations. ***** At this stage of the litigation, we are unable to anticipate the timing of any resolution or the ultimate impact, if any, that the legal proceedings may have on the consolidated financial position, liquidity, results of operations, or cash flows of the Company. As a result, at this time we have not estimated a range of potential exposure for amounts, if any, that might become payable in connection with this matter and reserves have not been established. It is possible that an adverse outcome may have a material adverse impact on the Company. Environmental Matters Like other petroleum refiners, we are subject to federal, state, and local environmental laws and regulations. These laws generally provide for control of pollutants released into the environment and require responsible parties to undertake remediation of hazardous waste disposal. These governmental entities may also propose or assess fines or require corrective actions for these asserted violations. Except as disclosed below, we do not anticipate that any such matters currently known to management will have a material impact on our financial condition, results of operations, or cash flows. As of March 31, 2023 and December 31, 2022, we reserved $1.4 million for anticipated environment clean up costs.
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REVENUES |
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REVENUES | REVENUES The following tables present our revenues disaggregated by geographical market and revenue source (in thousands):
* Beginning during the quarter ended September 30, 2022, the Company decided to combine the Black Oil and Recovery segments due to the revenue from such segment being less than 10% of the Company's total revenue. The Black Oil segment excludes the Heartland Assets and Operations, which is presented herein as discontinued operations. (1) Other refinery products include the sales of base oil, cutterstock and hydrotreated VGO, LPGs, sulfur and vacuum tower bottoms (VTB). (2) Metals consist of recoverable ferrous and non-ferrous recyclable metals from manufacturing and consumption. Scrap metal can be recovered from pipes, barges, boats, building supplies, surplus equipment, tanks, and other items consisting of metal composition. These materials are segregated, processed, cut-up and sent back to a steel mill for re-purposing. (3) Other re-refinery products include the sales of asphalt, condensate, recovered products, and other petroleum products.
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SEGMENT REPORTING |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING | SEGMENT REPORTING The Refining and Marketing segment consists primarily of the sale of gasoline, diesel and jet fuel produced at the Mobile Refinery as well as pygas and industrial fuels, which are produced at a third-party facility. The Black Oil and Recovery segment consists primarily of the sale of (a) petroleum products which include base oil and industrial fuels—which consist of used motor oils, cutterstock and fuel oil generated by our facilities; (b) oil collection services—which consist of used oil sales, burner fuel sales, antifreeze sales and service charges; (c) the sale of other re-refinery products including asphalt, condensate, recovered products, and used motor oil; (d) transportation revenues; (e) the sale of VGO/marine fuel; (f) the sale of ferrous and non-ferrous recyclable Metal(s) products that are recovered from manufacturing and consumption; and (g) revenues generated from trading/marketing of Group III Base Oils. The Black Oil and Recovery segment excludes the Heartland Assets and Operations, which are presented herein as discontinued operations. We also disaggregate our revenue by product category for each of our segments, as we believe such disaggregation helps depict how our revenue and cash flows are affected by economic factors. Segment information for the three months ended March 31, 2023 and 2022 is as follows (in thousands):
Total assets by segment were as follows (in thousands):
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ACCOUNTS RECEIVABLE |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable, net, consists of the following at March 31, 2023 and December 31, 2022 (in thousands):
Accounts receivable trade represents amounts due from customers. Accounts receivable trade are recorded at invoiced amounts, net of reserves and allowances and do not bear interest. Bad debt expense was $881.7 thousand for the three months ended March 31, 2023 and bad debt recovery was $22.1 thousand for the same period of 2022, for continued operations.
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CONCENTRATIONS OF RISK AND SIGNIFICANT CUSTOMERS |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONCENTRATIONS OF RISK AND SIGNIFICANT CUSTOMERS | CONCENTRATIONS OF RISK AND SIGNIFICANT CUSTOMERS The Company has concentrated credit risk for cash by maintaining deposits in one bank. These balances are insured by the Federal Deposit Insurance Corporation up to $250,000. From time to time during the quarter ended March 31, 2023 and year end December 31, 2022, the Company’s cash balances exceeded the federally insured limits. No losses have been incurred relating to this concentration. At March 31, 2023 and 2022 and for each of the three months then ended, the Company’s revenues and receivables were comprised of the following customer concentrations:
For each of the three months ended March 31, 2023 and 2022, the Company’s segment revenues were comprised of the following customer concentrations:
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INVENTORY |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORY | INVENTORY The following table describes the Company's inventory balances by category (in thousands):
On April 1, 2022, pursuant to an Inventory Sales Agreement entered into between Vertex Refining and Macquarie, Macquarie purchased all of the Mobile Refinery inventory from Vertex Refining for $130 million (which funds, together with cash on hand, were used by Vertex Refining to purchase the Mobile Refinery Inventory from Shell), which Mobile Refinery Inventory then became subject to the terms of the Supply and Offtake Agreement, discussed in detail below. The following table summarizes our outstanding obligations under our inventory financing agreements (in thousands):
The valuation of our obligations at the end of each reporting period requires that we make estimates of the prices and differentials for our then monthly forward purchase obligations. Supply and Offtake Agreement On April 1, 2022 (the “Commencement Date”), Vertex Refining entered into a Supply and Offtake Agreement (the “Supply and Offtake Agreement”) with Macquarie, pertaining to crude oil supply and offtake of finished products located at the Mobile Refinery acquired on April 1, 2022. Under the Supply and Offtake Agreement, Macquarie purchases the majority of the crude oil utilized at the Mobile Refinery and holds legal title prior to its sale to Vertex Refining for consumption within the Mobile Refinery processing units. Also pursuant to the Supply and Offtake Agreement, Macquarie purchases from Vertex Refining substantially all of the Mobile Refinery’s output of certain refined products and owns such refined products while they are located within certain specified locations at the Mobile Refinery. Macquarie takes title to the refined products stored in our storage tanks until they are sold. We record the inventory owned by Macquarie on our behalf as inventory with a corresponding accrued liability on our balance sheet because we maintain the risk of loss until the refined products are sold to third parties and we have an obligation to repurchase it. Pursuant to the Supply and Offtake Agreement and subject to the terms and conditions therein, Macquarie may during the term of the Supply and Offtake Agreement procure crude oil and refined products from certain third parties which may be sold to Vertex Refining or third parties pursuant to the Supply and Offtake Agreement and may sell refined products to Vertex Refining or third parties (including customers of Vertex Refining). The Supply and Offtake Agreement expires March 31, 2024, subject to the performance of customary covenants, and certain events of default and termination events provided therein, for a facility of that size and type. Additionally, either party may terminate the agreement at any time, for any reason, with no less than 180 days prior notice to the other. Pursuant to the Supply and Offtake Agreement, we pay or receive certain fees from Macquarie based on changes in market prices over time. The following table summarizes the inventory intermediation fees, interest expenses and financing costs (in thousands):
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INVENTORY FINANCING AGREEMENT |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORY FINANCING AGREEMENT | INVENTORY The following table describes the Company's inventory balances by category (in thousands):
On April 1, 2022, pursuant to an Inventory Sales Agreement entered into between Vertex Refining and Macquarie, Macquarie purchased all of the Mobile Refinery inventory from Vertex Refining for $130 million (which funds, together with cash on hand, were used by Vertex Refining to purchase the Mobile Refinery Inventory from Shell), which Mobile Refinery Inventory then became subject to the terms of the Supply and Offtake Agreement, discussed in detail below. The following table summarizes our outstanding obligations under our inventory financing agreements (in thousands):
The valuation of our obligations at the end of each reporting period requires that we make estimates of the prices and differentials for our then monthly forward purchase obligations. Supply and Offtake Agreement On April 1, 2022 (the “Commencement Date”), Vertex Refining entered into a Supply and Offtake Agreement (the “Supply and Offtake Agreement”) with Macquarie, pertaining to crude oil supply and offtake of finished products located at the Mobile Refinery acquired on April 1, 2022. Under the Supply and Offtake Agreement, Macquarie purchases the majority of the crude oil utilized at the Mobile Refinery and holds legal title prior to its sale to Vertex Refining for consumption within the Mobile Refinery processing units. Also pursuant to the Supply and Offtake Agreement, Macquarie purchases from Vertex Refining substantially all of the Mobile Refinery’s output of certain refined products and owns such refined products while they are located within certain specified locations at the Mobile Refinery. Macquarie takes title to the refined products stored in our storage tanks until they are sold. We record the inventory owned by Macquarie on our behalf as inventory with a corresponding accrued liability on our balance sheet because we maintain the risk of loss until the refined products are sold to third parties and we have an obligation to repurchase it. Pursuant to the Supply and Offtake Agreement and subject to the terms and conditions therein, Macquarie may during the term of the Supply and Offtake Agreement procure crude oil and refined products from certain third parties which may be sold to Vertex Refining or third parties pursuant to the Supply and Offtake Agreement and may sell refined products to Vertex Refining or third parties (including customers of Vertex Refining). The Supply and Offtake Agreement expires March 31, 2024, subject to the performance of customary covenants, and certain events of default and termination events provided therein, for a facility of that size and type. Additionally, either party may terminate the agreement at any time, for any reason, with no less than 180 days prior notice to the other. Pursuant to the Supply and Offtake Agreement, we pay or receive certain fees from Macquarie based on changes in market prices over time. The following table summarizes the inventory intermediation fees, interest expenses and financing costs (in thousands):
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PREPAID EXPENSES AND OTHER CURRENT ASSETS |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS The following table describes the Company's prepaid expenses and other current assets balances (in thousands):
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FIXED ASSETS, NET |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FIXED ASSETS, NET | FIXED ASSETS, NET Fixed assets consist of the following (in thousands):
The increase in fixed assets is due to the investment in the Renewable Diesel project at the Mobile Refinery, which began April 1, 2022, and which includes construction in progress. Depreciation expense was $3.6 million and $1.0 million for the three months ended March 31, 2023 and 2022, respectively, for the continued operations. Asset Retirement Obligations: The Company has asset retirement obligations with respect to certain of its refinery assets due to various legal obligations to clean and/or dispose of various component parts of each refinery at the time they are retired. However, these component parts can be used for extended and indeterminate periods of time as long as they are properly maintained and/or upgraded. It is the Company’s practice and current intent to maintain its refinery assets and continue making improvements to those assets based on technological advances. As a result, the Company believes that its refinery assets have indeterminate lives for purposes of estimating asset retirement obligations because dates, or ranges of dates, upon which the Company would retire refinery assets cannot reasonably be estimated. When a date or range of dates can reasonably be estimated for the retirement of any component part of a refinery, the Company estimates the cost of performing the retirement activities and records a liability for the fair value of that cost using established present value techniques.
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INTANGIBLE ASSETS, NET |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS, NET | INTANGIBLE ASSETS, NET Components of intangible assets (subject to amortization) consist of the following items:
Intangible assets are amortized on a straight-line basis. We continually evaluate the amortization period and carrying basis of intangible assets to determine whether subsequent events and circumstances warrant a revised estimated useful life or reduction in value. Total amortization expense of intangibles was $1.0 million and $0.4 million for the three months ended March 31, 2023 and 2022, respectively. Estimated future amortization expense is as follows (in thousands):
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ACCRUED LIABILITIES |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued expenses and other current liabilities consisted of the following (in thousands):
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FINANCING ARRANGEMENTS |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCING ARRANGEMENTS | FINANCING AGREEMENTS The Company's long-term debt consisted of the following as of March 31, 2023 and December 31, 2022 (in thousands):
Future maturities of long-term debt, excluding financing lease obligations, as of March 31, 2023 are summarized as follows (in thousands):
Insurance Premiums The Company financed insurance premiums through various financial institutions bearing interest at rates ranging from 3.24% to 5.25% per annum. All such premium finance agreements have maturities of less than one year and have a balance of $1.4 million at March 31, 2023 and $5.6 million at December 31, 2022. Term Loans Vertex Refining, the Company, as a guarantor, substantially all of the Company’s direct and indirect subsidiaries, as guarantors, certain funds as lenders (the “Lenders”), and Cantor Fitzgerald Securities, in its capacity as administrative agent and collateral agent for the Lenders (the “Agent”), entered into a Loan and Security Agreement on April 1, 2022 (as amended from time to time, the “Loan and Security Agreement”). Pursuant to the Loan and Security Agreement, the Lenders agreed to provide a $165 million term loan to Vertex Refining (the “Term Loan”). The Company paid off $12.9 million owed under the term loan during the three months ended March 31, 2023. On September 30, 2022, the parties entered into a second amendment to the Loan and Security Agreement which (a) extended the date that the Company was required to begin initial commercial production of renewable diesel at the Mobile Refinery, from February 28, 2023 to April 28, 2023 (which date the Lender have since further agreed to extended until July 14, 2023), and provided other corresponding extensions of the milestones required to complete the Company’s capital project designed to modify the Mobile Refinery’s existing hydrocracking unit to produce renewable diesel fuel on a standalone basis, which as previously described, mechanical completion was achieved in March 2023; and (b) waived and extends certain deadlines and time periods for the Company to take other actions in connection with the Loan and Security Agreement. Warrant Agreement and Derivative Liabilities In connection with the April 1, 2022 Loan and Security Agreement, and as additional consideration for the Lenders agreeing to loan funds to the Company thereunder, the Company granted warrants to purchase 2.75 million shares of common stock of the Company to the Lenders (and/or their affiliates) (the “Initial Warrants”). The terms of the warrants are set forth in a Warrant Agreement entered into on April 1, 2022, between the Company and Continental Stock Transfer & Trust Company as warrant agent. In connection with the entry into an Amendment No. One to Loan Agreement, and as a required term and condition thereof, on May 26, 2022, the Company granted warrants (the “Additional Warrants” and together with the Initial Warrants, the “Warrants”) to purchase 250 thousand shares of the Company’s common stock to certain of the Lenders and their affiliates. The terms of the Additional Warrants are set forth in a Warrant Agreement entered into on May 26, 2022, between the Company and Continental Stock Transfer & Trust Company as warrant agent. Each Warrant holder has a put right to require the Company to repurchase any portion of the Warrants held by such holder concurrently with the consummation of a fundamental transaction, as defined in the Warrant Agreement. The fundamental transaction clause requires the Warrants to be classified as liabilities. The fair value of the Warrants is presented in “Note 19. Fair Value Measurements”, and warrant activities are presented in “Note 17. Equity”. Indenture and Convertible Senior Notes On November 1, 2021, we issued $155 million aggregate principal amount at maturity of our 6.25% Convertible Senior Notes due 2027 (the “Convertible Senior Notes”) pursuant to an Indenture (the “Indenture”), dated November 1, 2021, between the Company and U.S. Bank National Association, as trustee (the “Trustee”), in a private offering to persons reasonably believed to be “qualified institutional buyers” and/or to “accredited investors” in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, pursuant to Securities Purchase Agreements. The issue price was 90% of the face amount of each note. The components of the Convertible Senior Notes are presented as follows (in thousands):
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LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES Finance Leases The Company's finance lease liabilities consisted of the following as of March 31, 2023 and December 31, 2022 (in thousands):
Future maturities of finance lease obligations, as of March 31, 2023, are summarized as follows (in thousands):
The following table summarizes the lease cost recognized in our consolidated statements of operations (in thousands):
Operating Leases Operating leases are included in operating lease right-of-use lease assets, and operating current and long-term lease liabilities on the consolidated balance sheets. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease expense is recognized in the period in which the obligation for those payments is incurred. Lease expense for equipment is included in cost of revenues and other rents are included in selling, general and administrative expense on the unaudited consolidated statements of operations and are reported net of lease income. The following table summarizes the operating lease costs recognized (in thousands):
Cash Flows The following table summarizes the supplemental cash flow information related to leases as follows (in thousands):
Maturities of our lease liabilities for all operating leases are as follows as of March 31, 2023 (in thousands):
The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of March 31, 2023:
There are two plant leases that have multiple 5-year extension options for a total of 20 years, two plant leases with multiple 1-year extension options for a total of 20 years and seven equipment leases with a 3-year extension option. These extension options have been included in the lease right-of-use asset and lease obligation. The Company will reassess the lease terms and purchase options when there is a significant change in circumstances or when the Company elects to exercise an option that had previously been determined that it was not reasonably certain to do so.
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LEASES | LEASES Finance Leases The Company's finance lease liabilities consisted of the following as of March 31, 2023 and December 31, 2022 (in thousands):
Future maturities of finance lease obligations, as of March 31, 2023, are summarized as follows (in thousands):
The following table summarizes the lease cost recognized in our consolidated statements of operations (in thousands):
Operating Leases Operating leases are included in operating lease right-of-use lease assets, and operating current and long-term lease liabilities on the consolidated balance sheets. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease expense is recognized in the period in which the obligation for those payments is incurred. Lease expense for equipment is included in cost of revenues and other rents are included in selling, general and administrative expense on the unaudited consolidated statements of operations and are reported net of lease income. The following table summarizes the operating lease costs recognized (in thousands):
Cash Flows The following table summarizes the supplemental cash flow information related to leases as follows (in thousands):
Maturities of our lease liabilities for all operating leases are as follows as of March 31, 2023 (in thousands):
The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of March 31, 2023:
There are two plant leases that have multiple 5-year extension options for a total of 20 years, two plant leases with multiple 1-year extension options for a total of 20 years and seven equipment leases with a 3-year extension option. These extension options have been included in the lease right-of-use asset and lease obligation. The Company will reassess the lease terms and purchase options when there is a significant change in circumstances or when the Company elects to exercise an option that had previously been determined that it was not reasonably certain to do so.
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EQUITY |
3 Months Ended |
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Mar. 31, 2023 | |
Equity [Abstract] | |
EQUITY | EQUITY Common Stock The total number of authorized shares of the Company’s common stock is 750 million shares, $0.001 par value per share. As of March 31, 2023 and December 31, 2022, there were 75,834,826 and 75,668,826, respectively, shares of common stock issued and outstanding. Each share of the Company's common stock is entitled to equal dividends and distributions per share with respect to the common stock when, as and if declared by the Company's board of directors. No holder of any shares of the Company's common stock has a preemptive right to subscribe for any of the Company's securities, nor are any shares of the Company's common stock subject to redemption or convertible into other securities. Upon liquidation, dissolution or winding-up of the Company and after payment of creditors and preferred shareholders of the Company, if any, the assets of the Company will be divided pro rata on a share-for-share basis among the holders of the Company's common stock. Each share of the Company's common stock is entitled to one vote. Shares of the Company's common stock do not possess any cumulative voting rights. During the three months ended March 31, 2023, the Company issued 166,000 shares of common stock in connection with the exercise of options. During the three months ended March 31, 2022, the Company issued 5,041 shares of common stock in connection with the conversion of Series A Convertible Preferred Stock, pursuant to the terms of such securities; and issued 1,112,728 shares of the Company's common stock in exchange for warrants to purchase 1,500,000 shares of the Company's common stock with an exercise price of $2.25 per share (discussed in greater detail below). In addition, the Company issued 60,000 shares of common stock in connection with the exercise of options. Warrant Exchange Agreement On March 24, 2022, the Company entered into an Exchange Agreement with Tensile Capital Partners Master Fund LP ("Tensile"). Tensile exchanged outstanding warrants to purchase 1,500,000 shares of the Company’s common stock with an exercise price of $2.25 per share and an expiration date of July 25, 2029, for 1,112,728 shares of the Company’s common stock, effectively resulting in a net cashless exercise of the warrants (which were cancelled in connection with the transaction), with the value of such surrendered shares based on the five day trailing volume weighted average price of the Company’s common stock. Preferred Stock The total number of authorized shares of the Company’s preferred stock is 50,000,000 shares, $0.001 par value per share. As of March 31, 2022, there were 5,000,000 designated share of Series A Convertible Preferred Stock and 380,560 shares of Series A Convertible Preferred Stock issued and outstanding. As of March 31, 2023, and December 31, 2022, no series of preferred stock were designated or outstanding. Certificates of Withdrawal of Previously Designated Preferred Stock The Company filed Certificates of Withdrawal relating to each series of Preferred Stock previously designated with the Secretary of State of Nevada and terminated the designation of its Series A Preferred Stock (on August 24, 2022); Series B Preferred Stock (on August 24, 2022); Series B1 Preferred Stock (on August 23, 2022) and Series C Preferred Stock (on August 23, 2022). At the time of the filing of the Certificates of Withdrawal, no shares of any of the previously designated series of Preferred Stock were outstanding. The Certificates of Withdrawal were effective upon filing, and eliminated from our Articles of Incorporation all matters set forth in the previously-filed Certificates of Designation with respect to the previously designated series of Preferred Stock.
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EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE The following is a reconciliation of the numerator and denominator for basic and diluted income (loss) per share for the three months ended March 31, 2023 and 2022 (in thousands, except per share amounts):
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTSThe following tables present assets and liabilities accounted for at fair value on a recurring basis as of March 31, 2023 and December 31, 2022 (in thousands):
Level 3 instruments include the Initial Warrants and Additional Warrants granted in connection with the Loan and Security Agreement, see Note 15 "Financing Agreements". We revalued the 2,835 thousand warrants granted and outstanding at March 31, 2023 using the Dynamic Black-Scholes model that computes the impact of a possible change in control transaction upon the exercise of the warrant shares. The Dynamic Black-Scholes Merton unobservable inputs used were as follows:
The following is an analysis of changes in the derivative liability classified as level 3 in the fair value hierarchy as of March 31, 2023 and December 31, 2022 (in thousands):
See Note 20 "Commodity Derivative Instruments", below for information on the impact on results of operations of our commodity derivative instruments.
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COMMODITY DERIVATIVE INSTRUMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMODITY DERIVATIVE INSTRUMENTS | COMMODITY DERIVATIVE INSTRUMENTS The Company utilizes derivative instruments to manage its exposure to fluctuations in the underlying commodity prices of its inventory. The Company’s management sets and implements hedging policies, including volumes, types of instruments and counterparties, to support oil prices at targeted levels and manage its exposure to fluctuating prices. The Company’s derivative instruments consist of option and futures arrangements for oil. For option and futures arrangements, the Company receives the difference positive or negative between an agreed-upon strike price and the market price. The mark-to-market effects of these contracts as of March 31, 2023 and December 31, 2022, are summarized in the following table. The notional amount is equal to the total net volumetric derivative position during the period indicated. The fair value of the crude oil futures agreements is based on the difference between the strike price and the New York Mercantile Exchange and Brent Complex futures price for the applicable trading months.
The carrying values of the Company’s derivatives positions and their locations on the consolidated balance sheets as of March 31, 2023 and December 31, 2022 are presented in the table below (in thousands):
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INCOME TAXES |
3 Months Ended |
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Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company recognized income tax expense of $1.0 million on continued operations for the three months ended March 31, 2023, compared to income tax expense of $0 during the same period of 2022. At the end of each interim period, the Company estimates the effective tax rate expected to be applicable for the full fiscal year and this rate is applied to the results for the year-to-date period, and then adjusted for any discrete period items. For the three-month period ended March 31, 2023, the variance between the Company’s effective tax rate and the U.S. statutory rate of 21% is primarily attributable to state tax, non-deductible expenses and income attributable to non-controlling interest. For the same period in 2022, the variance was also due to a full valuation allowance. The Company also recognized income tax expense of $17.7 million on discontinued operations for the three months ended March 31, 2023, refer to “Note 23. Discontinued Operations” for more information. The Company believes it has enough net operating loss (NOL) carryforwards and previously disallowed interest expenses to fully offset current taxable income. As such, all of the tax expense for the period ended March 31, 2023 is being recorded as deferred, to offset the reduction of the NOLs and interest expense deferred tax assets (DTAs) being utilized
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NON-CONTROLLING INTERESTS |
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Mar. 31, 2023 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTERESTS | NON-CONTROLLING INTERESTS Myrtle Grove Facility On April 1, 2022, the Company, through Vertex Splitter Corporation (“Vertex Splitter”), a wholly-owned subsidiary of the Company, acquired the 15% noncontrolling interest of Vertex Refining Myrtle Grove LLC (“MG SPV”) held by Tensile-Myrtle Grove Acquisition Corporation (“Tensile-MG”), an affiliate of Tensile Capital Partners Master Fund LP, an investment fund based in San Francisco, California (“Tensile”) from Tensile-Vertex for $7.2 million, which was based on the value of the Class B Unit preference of MG SPV held by Tensile-MG, plus capital invested by Tensile-MG in MG SPV (which had not been returned as of the date of payment), plus cash and cash equivalents held by Tensile-MG as of the closing date. As a result, the Company acquired 100% of MG SPV, which in turn owns the Company’s Belle Chasse, Louisiana, re-refining complex. Myrtle Grove Redeemable Noncontrolling Interest. In accordance with Accounting Standard Codification (ASC) 480-10-S99-3A, the Company applied a two-step approach to measure noncontrolling interests associated with MG SPV at the redemption date. First, the Company applied the measurement guidance in ASC 810-10 by attributing a portion of the subsidiary’s net loss of $38 thousand to the noncontrolling interest. Second, the Company applied the subsequent measurement guidance in ASC 480-10-S99-3A, which indicates that the noncontrolling interest’s carrying amount is the higher of (1) the cumulative amount that would result from applying the measurement guidance in ASC 810-10 in the first step or (2) the redemption value. Pursuant to ASC 480-10-S99-3A, for a security that is probable of becoming redeemable in the future, the Company adjusted the carrying amount of the redeemable noncontrolling interests to what would be the redemption value assuming the security was redeemable at the balance sheet date. This accretion adjustment of $0.4 million increased the carrying amount of redeemable noncontrolling interests to the redemption value as of April 1, 2022 of $7.2 million. Adjustments to the carrying amount of redeemable noncontrolling interests to redemption value are reflected in retained earnings. Heartland Re-refining Complex On May 26, 2022, the Company, through Vertex Splitter acquired the 65% noncontrolling interest of HPRM LLC, a Delaware limited liability company (“Heartland SPV”) held by Tensile-Heartland Acquisition Corporation, a Delaware corporation (“Tensile-Heartland”) from Tensile-Vertex Holdings LLC (“Tensile-Vertex”), an affiliate of Tensile for $43.5 million, which was based on the value of the Class B Unit preference of Heartland SPV held by Tensile-Heartland, plus capital invested by Tensile-Heartland in Heartland SPV (which had not been returned as of the date of payment), plus cash and cash equivalents held by Tensile-Heartland as of the closing date. As a result, the Company acquired 100% of Heartland SPV, which in turn owns the Company’s Columbus, Ohio, re-refining complex. Heartland Redeemable Noncontrolling Interest. In accordance with ASC 480-10-S99-3A, the Company applied a two-step approach to measure noncontrolling interests associated with Heartland SPV at the redemption date. First, the Company applied the measurement guidance in ASC 810-10 by attributing a portion of the subsidiary’s net income of $6.8 million to the noncontrolling interest. Second, the Company applied the subsequent measurement guidance in ASC 480-10-S99-3A, which indicates that the noncontrolling interest’s carrying amount is the higher of (1) the cumulative amount that would result from applying the measurement guidance in ASC 810-10 in the first step or (2) the redemption value. At May 26, 2022, the cumulative amount resulting from the application of the measurement guidance in ASC 810-10 was $43.5 million. On May 26, 2022, the Company acquired a 65% interest in Heartland SPV from Tensile for $43.5 million. The amount of accretion of redeemable noncontrolling interest to redemption value of $0.4 million was presented as an adjustment to net income (loss) attributable to Vertex Energy, Inc., to arrive at net income (loss) attributable to common shareholders on the consolidated statements of operations which represent the MG SPV and Heartland SPV accretion of redeemable noncontrolling interest to redemption value combined for the three months ended March 31, 2022. Vertex Recovery Management LA, LLC On May 25, 2016, Vertex Recovery Management, LLC, our wholly-owned subsidiary ("VRM") and Industrial Pipe, Inc. ("Industrial Pipe"), formed a joint venture Louisiana limited liability company, Vertex Recovery Management LA, LLC ("VRMLA"). VRM owns 51% and Industrial Pipe owns 49% of VRMLA. VRMLA is currently buying and preparing ferrous and non-ferrous scrap intended for large haul barge sales. We consolidated 100% of VRMLA's net loss of $101.7 thousand and $72.0 thousand, respectively for the years ended March 31, 2023 and 2022, respectively, and then added the 49% or $49.8 thousand and $35.3 thousand, respectively, of loss attributable to the non-controlling interest back to the Company's "Net income attributable to Vertex Energy, Inc." in the Consolidated Statement of Operations.
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DISCONTINUED OPERATIONS |
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Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS During the third quarter of 2021, the Company initiated and began executing a strategic plan to sell its UMO Business. An investment banking advisory services firm was engaged and actively marketed this segment. On September 28, 2021, the shareholders approved the proposed sale of the Company’s portfolio of used motor oil collection and recycling assets to Safety-Kleen Systems, Inc. (“Safety-Kleen”) pursuant to an Asset Purchase Agreement (the “UMO Sale Agreement”). On January 25, 2022, the Company entered into a mutual agreement with Safety-Kleen to terminate the UMO Sale Agreement. In connection with the termination agreement, the Company paid Safety-Kleen a break-up fee of $3 million. The Company continued to explore opportunities for the sale of the UMO Business. On February 1, 2023, the Company sold all of its equity interests in Vertex OH, which owned our Heartland refinery located in Columbus, Ohio (the “Heartland Refinery”) for $87.3 million net cash settlement. The sale also included all property and assets owned by Vertex OH, including inventory associated with the Heartland Refinery, and all real and leased property and permits owned by Vertex OH, and all used motor oil collection and recycling assets and operations owned by Vertex OH. Accordingly, the Company has presented this division (i.e., the Heartland Assets and Operations) as discontinued operations while reclassifying the other UMO Business operations out of assets held for sale, and all liabilities of the UMO Business out of liabilities held for sale, other than in connection with the Heartland Assets and Operations. See “Note 1. Basis of Presentation and Nature of Operations” for financial information that has been reclassified as continued operations. The following summarized financial information has been reclassified as continued operations for the three months ended March 31, 2022 (in thousands):
The following summarized financial information has been segregated from continuing operations and reported as Discontinued Operations for the three months ended March 31, 2023, and 2022 (in thousands):
The assets and liabilities held for sale on the Consolidated Balance Sheets as of December 31, 2022 are as follows (in thousands):
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RELATED PARTY TRANSACTIONS |
3 Months Ended |
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Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Related Parties From time to time, the Company consults Ruddy Gregory, PLLC., a related party law firm of which James Gregory, a former member of the Board of Directors and the General Counsel and Secretary of the Company, serves as a partner. During the three months ended March 31, 2023 and 2022, we paid $185 thousand and $74.7 thousand, respectively, to such law firm for services rendered, which services include the drafting and negotiation of, and due diligence associated with, the UMO Sale Agreement and agreement related to the Mobile Refinery acquisition, and related transactions, including the Loan and Security Agreement and Supply and Offtake Agreement, discussed above.
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SUBSEQUENT EVENTS |
3 Months Ended |
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Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On April 19, 2023, the Company issued 99,371 shares of common stock in connection with the cashless exercise of options to purchase 120,000 shares of common stock, which shares were covered by a Form S-8 Registration Statement. On April 28, 2023, Vertex Energy, Inc. and Bunker One (USA) Inc. mutually agreed to terminate all of the prior agreements entered into between the parties, including that certain Joint Supply and Marketing Agreement entered into in May 2020 and that certain Heads of Agreement entered into in January 2020, effective January 31, 2023.
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SUMMARY OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES (Policies) |
3 Months Ended |
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Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted CashThe Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
New Accounting Pronouncements | New Accounting Pronouncements The Company has not identified any recent accounting pronouncements that are expected to have a material impact on our financial condition, results of operations or cash flows upon adoption.
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MOBILE REFINERY ACQUISITION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of business acquisitions, by acquisition | The following table summarizes the determination and recognition of assets acquired (in thousands):
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REVENUES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of revenue | The following tables present our revenues disaggregated by geographical market and revenue source (in thousands):
* Beginning during the quarter ended September 30, 2022, the Company decided to combine the Black Oil and Recovery segments due to the revenue from such segment being less than 10% of the Company's total revenue. The Black Oil segment excludes the Heartland Assets and Operations, which is presented herein as discontinued operations. (1) Other refinery products include the sales of base oil, cutterstock and hydrotreated VGO, LPGs, sulfur and vacuum tower bottoms (VTB). (2) Metals consist of recoverable ferrous and non-ferrous recyclable metals from manufacturing and consumption. Scrap metal can be recovered from pipes, barges, boats, building supplies, surplus equipment, tanks, and other items consisting of metal composition. These materials are segregated, processed, cut-up and sent back to a steel mill for re-purposing. (3) Other re-refinery products include the sales of asphalt, condensate, recovered products, and other petroleum products.
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SEGMENT REPORTING (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the company's reportable segment information | Segment information for the three months ended March 31, 2023 and 2022 is as follows (in thousands):
Total assets by segment were as follows (in thousands):
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ACCOUNTS RECEIVABLE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accounts receivable | Accounts receivable, net, consists of the following at March 31, 2023 and December 31, 2022 (in thousands):
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CONCENTRATIONS OF RISK AND SIGNIFICANT CUSTOMERS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of concentrations | At March 31, 2023 and 2022 and for each of the three months then ended, the Company’s revenues and receivables were comprised of the following customer concentrations:
For each of the three months ended March 31, 2023 and 2022, the Company’s segment revenues were comprised of the following customer concentrations:
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INVENTORY (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | The following table describes the Company's inventory balances by category (in thousands):
The following table summarizes our outstanding obligations under our inventory financing agreements (in thousands):
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INVENTORY FINANCING AGREEMENT (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | The following table describes the Company's inventory balances by category (in thousands):
The following table summarizes our outstanding obligations under our inventory financing agreements (in thousands):
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Schedule of Inventory Cost | The following table summarizes the inventory intermediation fees, interest expenses and financing costs (in thousands):
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PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Prepaid Expenses And Other Current Assets | The following table describes the Company's prepaid expenses and other current assets balances (in thousands):
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FIXED ASSETS, NET (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fixed assets | Fixed assets consist of the following (in thousands):
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INTANGIBLE ASSETS, NET (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of intangible assets | Components of intangible assets (subject to amortization) consist of the following items:
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Schedule of estimated future amortization expense | Estimated future amortization expense is as follows (in thousands):
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ACCRUED LIABILITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands):
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FINANCING ARRANGEMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Outstanding Debt Facilities | The Company's long-term debt consisted of the following as of March 31, 2023 and December 31, 2022 (in thousands):
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Schedule of Future Maturities of Notes Payable | Future maturities of long-term debt, excluding financing lease obligations, as of March 31, 2023 are summarized as follows (in thousands):
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Schedule of Debt | The components of the Convertible Senior Notes are presented as follows (in thousands):
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LEASES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Cost | The Company's finance lease liabilities consisted of the following as of March 31, 2023 and December 31, 2022 (in thousands):
The following table summarizes the lease cost recognized in our consolidated statements of operations (in thousands):
The following table summarizes the operating lease costs recognized (in thousands):
The following table summarizes the supplemental cash flow information related to leases as follows (in thousands):
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Schedule of Finance Lease, Liability, Fiscal Year Maturity | Future maturities of finance lease obligations, as of March 31, 2023, are summarized as follows (in thousands):
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Schedule of Maturities of Operating Lease Liabilities | Maturities of our lease liabilities for all operating leases are as follows as of March 31, 2023 (in thousands):
|
EARNINGS PER SHARE (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of basic and diluted earnings (loss) per share | The following is a reconciliation of the numerator and denominator for basic and diluted income (loss) per share for the three months ended March 31, 2023 and 2022 (in thousands, except per share amounts):
|
FAIR VALUE MEASUREMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | The following tables present assets and liabilities accounted for at fair value on a recurring basis as of March 31, 2023 and December 31, 2022 (in thousands):
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The Dynamic Black-Scholes Merton unobservable inputs used were as follows:
The following is an analysis of changes in the derivative liability classified as level 3 in the fair value hierarchy as of March 31, 2023 and December 31, 2022 (in thousands):
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COMMODITY DERIVATIVE INSTRUMENTS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of derivative instruments | The fair value of the crude oil futures agreements is based on the difference between the strike price and the New York Mercantile Exchange and Brent Complex futures price for the applicable trading months.
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Schedule of fair value of derivative instruments within balance sheet | The carrying values of the Company’s derivatives positions and their locations on the consolidated balance sheets as of March 31, 2023 and December 31, 2022 are presented in the table below (in thousands):
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DISCONTINUED OPERATIONS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disposal Groups Including Discontinued Operations Income Statement and Balance Sheet | The following summarized financial information has been reclassified as continued operations for the three months ended March 31, 2022 (in thousands):
The following summarized financial information has been segregated from continuing operations and reported as Discontinued Operations for the three months ended March 31, 2023, and 2022 (in thousands):
The assets and liabilities held for sale on the Consolidated Balance Sheets as of December 31, 2022 are as follows (in thousands):
|
BASIS OF PRESENTATION AND NATURE OF OPERATIONS (Details) bbl in Millions, $ in Millions |
3 Months Ended | ||
---|---|---|---|
Apr. 01, 2022
USD ($)
bbl / d
bbl
|
Mar. 31, 2022
USD ($)
|
Feb. 01, 2023
USD ($)
|
|
Operating Income (Loss) | |||
Product Information | |||
Prior period reclassification adjustment | $ 7.2 | ||
Held-for-sale | UMO business | |||
Product Information | |||
Total cash, consideration | $ 87.3 | ||
Mobile Refinery | |||
Product Information | |||
Annual production capacity (bbl/day) | bbl / d | 75,000 | ||
Inventory acquired (barrels/gallons) | bbl | 3.2 | ||
Purchase consideration | $ 75.0 | ||
Asset acquisition, consideration transferred | 16.3 | ||
Hydrocarbon | |||
Product Information | |||
Asset acquisition, consideration transferred | 124.0 | ||
Hydrocarbon | Financing Agreement | Mobile Refinery | |||
Product Information | |||
Purchase consideration | $ 130.0 |
SUMMARY OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES - Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Short Term Equipment Lease Deposit | ||
New Accounting Pronouncements or Change in Accounting Principle | ||
Restricted cash and cash equivalents | $ 6.8 | $ 4.8 |
Short Term Equipment Lease Deposit | Heartland Business | ||
New Accounting Pronouncements or Change in Accounting Principle | ||
Restricted cash and cash equivalents | 1.5 | |
Money Market Funds | ||
New Accounting Pronouncements or Change in Accounting Principle | ||
Restricted cash and cash equivalents | $ 0.1 | $ 0.1 |
MOBILE REFINERY ACQUISITION - Narrative (Details) $ in Thousands |
Mar. 31, 2023
USD ($)
|
Apr. 01, 2022
USD ($)
bbl / d
|
---|---|---|
Mobile Refinery | ||
Business Acquisition | ||
Total purchase price | $ 227,525 | |
Mobile Refinery | Vertex Acquisition | ||
Business Acquisition | ||
Total purchase price | 103,214 | $ 227,500 |
Mobile Refinery | Financing Agreement | ||
Business Acquisition | ||
Total purchase price | $ 124,311 | $ 124,300 |
Mobile Refinery | ||
Business Acquisition | ||
Annual production capacity (bbl/day) | bbl / d | 75,000 | |
ALABAMA | Mobile Refinery | ||
Business Acquisition | ||
Annual production capacity (bbl/day) | bbl / d | 75,000 |
MOBILE REFINERY ACQUISITION - Schedule of Business Acquisitions, by Acquisition (Details) - Mobile Refinery - USD ($) $ in Thousands |
Mar. 31, 2023 |
Apr. 01, 2022 |
---|---|---|
Business Acquisition | ||
Inventory | $ 130,220 | |
Prepaid assets | 147 | |
Fixed assets | 97,158 | |
Total purchase price | 227,525 | |
Financing Agreement | ||
Business Acquisition | ||
Inventory | 124,311 | |
Prepaid assets | 0 | |
Fixed assets | 0 | |
Total purchase price | 124,311 | $ 124,300 |
Vertex Acquisition | ||
Business Acquisition | ||
Inventory | 5,909 | |
Prepaid assets | 147 | |
Fixed assets | 97,158 | |
Total purchase price | $ 103,214 | $ 227,500 |
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Environmental Remediation | Environmental Remediation | ||
Site Contingency [Line Items] | ||
Accrual for environmental loss contingencies | $ 1.4 | $ 1.4 |
ACCOUNTS RECEIVABLE (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |||
Accounts receivable trade | $ 60,328,000 | $ 36,098,000 | |
Allowance for doubtful accounts | (2,420,000) | (1,550,000) | |
Receivables, Net, Current | 57,908,000 | $ 34,548,000 | |
Accounts Receivable, Allowance for Credit Loss, Writeoff | $ 881,700 | $ 22,100 |
INVENTORY (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Inventory [Line Items] | ||
Inventory | $ 188,026 | $ 135,473 |
Crude oil | ||
Inventory [Line Items] | ||
Inventory | 46,807 | 59,131 |
Refined products | ||
Inventory [Line Items] | ||
Inventory | 139,443 | 74,311 |
Re-refined products | ||
Inventory [Line Items] | ||
Inventory | 1,776 | 2,031 |
Total hydrocarbon inventories | ||
Inventory [Line Items] | ||
Inventory | $ 188,026 | $ 135,473 |
INVENTORY FINANCING AGREEMENT - Narrative (Details) - USD ($) $ in Thousands |
Apr. 01, 2022 |
Mar. 31, 2023 |
---|---|---|
Mobile Refinery | ||
Inventory [Line Items] | ||
Inventory | $ 130,220 | |
Macquarie | Vertex Refining | ||
Inventory [Line Items] | ||
Termination period after notice | 180 days | |
Macquarie | Mobile Refinery | Vertex Refining | ||
Inventory [Line Items] | ||
Inventory | $ 130,000 |
INVENTORY FINANCING AGREEMENT - Schedule of Inventory (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Inventory [Line Items] | ||
Obligations under inventory financing agreement, net | $ 106,905 | $ 117,939 |
Inventory Financing Agreement | Macquarie | ||
Inventory [Line Items] | ||
Obligations under inventory financing agreement | 107,905 | 119,189 |
Unamortized financing cost | (1,000) | (1,250) |
Obligations under inventory financing agreement, net | $ 106,905 | $ 117,939 |
INVENTORY FINANCING AGREEMENT - Schedule of Inventory Cost (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2023
USD ($)
| |
Inventory Disclosure [Abstract] | |
Intermediation fee | $ 2,064 |
Inventory financing fees | 2,295 |
Interest expense and financing costs, net | $ 2,520 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid insurance | $ 2,295 | $ 8,356 |
Commodity derivative advance | 3,213 | 5,472 |
Renewable volume obligation (RVO) assets | 1,904 | 2,001 |
Other prepaid expenses | 24,611 | 5,160 |
Independent deposit | 14,688 | 10,329 |
Other current assets | 5,793 | 5,342 |
Total prepaid expenses | $ 52,504 | $ 36,660 |
FIXED ASSETS, NET - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 3.6 | $ 1.0 |
INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 1.0 | $ 0.4 |
INTANGIBLE ASSETS, NET -Schedule of Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Estimated future amortization expense | ||
2024 | $ 4,043 | |
2025 | 4,033 | |
2026 | 980 | |
2027 | 950 | |
2028 | 573 | |
Thereafter | 189 | |
Net Carrying Amount | $ 10,768 | $ 11,827 |
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued purchases | $ 20,441 | $ 21,185 |
Accrued interest | 2,974 | 1,488 |
Accrued compensation and benefits | 5,215 | 6,530 |
Accrued income, real estate, sales and other taxes | 1,136 | 1,102 |
RINS liabilities | 74,049 | 51,355 |
Environmental liabilities - current | 51 | 51 |
Unearned Revenue | 330 | 0 |
Accrued liabilities total | $ 104,196 | $ 81,711 |
FINANCING ARRANGEMENTS - Outstanding Debt Facilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Instrument | ||
Outstanding principal amount | $ 248,675 | $ 265,839 |
Less: unamortized discount and deferred financing costs | (77,596) | (81,918) |
Total debt, net of unamortized discount and deferred financing costs | 171,079 | 183,921 |
Less: current maturities, net of unamortized discount and deferred financing costs | (9,609) | (13,911) |
Long-term debt, net of current maturities | 161,470 | 170,010 |
Senior Convertible Note | ||
Debt Instrument | ||
Outstanding principal amount | 95,178 | 95,178 |
Term Loan 2025 | ||
Debt Instrument | ||
Outstanding principal amount | 152,138 | 165,000 |
SBA Loan | SBA Loan | ||
Debt Instrument | ||
Outstanding principal amount | 0 | 59 |
John Deere Note | Various institutions | ||
Debt Instrument | ||
Outstanding principal amount | $ 1,359 | $ 5,602 |
FINANCING ARRANGEMENTS - Future Contractual Maturities (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Disclosure [Abstract] | ||
2023 | $ 9,609 | |
2024 | 6,188 | |
2025 | 137,700 | |
2026 | 0 | |
2027 | 95,178 | |
Total | $ 248,675 | $ 265,839 |
FINANCING ARRANGEMENTS - Insurance Premiums (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Instrument | ||
Outstanding principal amount | $ 248,675 | $ 265,839 |
Various institutions | Insurance premiums financed | ||
Debt Instrument | ||
Outstanding principal amount | $ 1,400 | $ 5,600 |
Minimum | Various institutions | Insurance premiums financed | ||
Debt Instrument | ||
Debt instrument, stated rate (as a percent) | 3.24% | |
Maximum | Various institutions | Insurance premiums financed | ||
Debt Instrument | ||
Debt instrument, stated rate (as a percent) | 5.25% |
FINANCING ARRANGEMENTS - Term Loan (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
May 26, 2022 |
Apr. 01, 2022 |
|
Warrant | |||
Debt Instrument | |||
Warrant outstanding (in shares) | 2,835,000 | 250,000 | 2,750,000 |
First-Lien Senior Secured Term Loan Facility | Secured debt | Vertex Refining | |||
Debt Instrument | |||
Principal amounts at beginning of period | $ 165,000,000 | ||
Repayments of debt | $ 12,900,000 |
FINANCING ARRANGEMENTS - Warrant Agreements and Derivative Liabilities (Details) - shares |
Mar. 31, 2023 |
May 26, 2022 |
Apr. 01, 2022 |
---|---|---|---|
Warrant | |||
Class of Warrant or Right [Line Items] | |||
Warrant outstanding (in shares) | 2,835,000 | 250,000 | 2,750,000 |
FINANCING ARRANGEMENTS - Indenture and Convertible Senior Notes (Details) - Convertible Notes - Senior Notes $ in Millions |
Nov. 01, 2021
USD ($)
|
---|---|
Line of Credit Facility [Line Items] | |
Principal amounts at beginning of period | $ 155 |
Debt instrument, stated rate (as a percent) | 6.25% |
Issue price, percentage | 90.00% |
FINANCING ARRANGEMENTS - Components of Convertible Notes (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Instrument | ||
Outstanding principal amount | $ 248,675 | $ 265,839 |
Senior Convertible Note | ||
Debt Instrument | ||
Principal amounts at beginning of period | 95,178 | 155,000 |
Conversion of principal into common stock | 0 | (59,822) |
Outstanding principal amount | 95,178 | 95,178 |
Unamortized discount and issuance costs | (49,622) | (51,005) |
Net carrying amount at end of period | $ 45,556 | $ 44,173 |
LEASES - Schedule of Finance Lease Liability (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Lessee, Lease, Description | ||
Financing lease obligations | $ 61,241 | $ 46,527 |
VRA Finance lease | VRA Finance lease | ||
Lessee, Lease, Description | ||
Financing lease obligations | 45,029 | 45,311 |
Plaquemines | Plaquemines | ||
Lessee, Lease, Description | ||
Financing lease obligations | 1,145 | 1,169 |
Harvey Ford | Harvey Ford | ||
Lessee, Lease, Description | ||
Financing lease obligations | 46 | 47 |
DLL financial | DLL financial | ||
Lessee, Lease, Description | ||
Financing lease obligations | 23 | 0 |
Centerpoint Blakely | Centerpoint Blakely | ||
Lessee, Lease, Description | ||
Financing lease obligations | $ 14,998 | $ 0 |
LEASES - Schedule of Finance Lease, Liability, Fiscal Year Maturity (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Finance Lease, Liability, to be Paid [Abstract] | ||
2024 | $ 7,834 | |
2025 | 7,834 | |
2026 | 7,831 | |
2027 | 7,824 | |
2028 | 19,955 | |
Thereafter | 62,790 | |
Total lease payments | 114,068 | |
Less: interest | (52,827) | |
Present value of financing lease liabilities | $ 61,241 | $ 46,527 |
LEASES - Schedule of Finance Lease Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Lease Cost Type | ||
Amortization of finance lease ROU assets | $ 784 | $ 28 |
Interest on lease liabilities | 1,382 | 6 |
Net finance lease costs | $ 2,166 | $ 34 |
LEASES - Schedule of Lease Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Lease Cost Type | ||
Operating lease cost | $ 3,070 | $ 1,434 |
Variable lease cost | 260 | 45 |
Short-term lease cost | 1,929 | 1,864 |
Net lease cost | $ 5,259 | $ 3,343 |
LEASES - Schedule of Cash Flow, Supplemental Disclosures Related to Leases (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Leases [Abstract] | ||
Payments on financing lease | $ 310 | $ 98 |
Payments on operating lease | 3,070 | 1,434 |
ROU assets obtained from new finance lease liabilities | 15,024 | 0 |
ROU assets obtained from new operating lease liabilities | $ 15,078 | $ 0 |
LEASES - Schedule of Operating Lease Weighted Average Remaining Lease Terms and Discount Rates (Details) |
Mar. 31, 2023 |
---|---|
Lease facilities | |
Lessee, Lease, Description | |
Weighted average remaining lease terms (years) | 5 years 2 months 15 days |
Weighted average discount rate (in pure) | 9.22% |
Lease equipment | |
Lessee, Lease, Description | |
Weighted average remaining lease terms (years) | 4 years 5 months 19 days |
Weighted average discount rate (in pure) | 11.70% |
Lease plant | |
Lessee, Lease, Description | |
Weighted average remaining lease terms (years) | 14 years 7 days |
Weighted average discount rate (in pure) | 10.62% |
Railcar | |
Lessee, Lease, Description | |
Weighted average remaining lease terms (years) | 2 years 3 months |
Weighted average discount rate (in pure) | 8.00% |
LEASES - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2023
lease
| |
Lease plant | 5-Year Extension Option | |
Lessee, Lease, Description | |
Number of contracts | 2 |
Lease renewal term | 5 years |
Lease renewal term, total | 20 years |
Lease plant | 1-Year Extension Option | |
Lessee, Lease, Description | |
Number of contracts | 2 |
Lease renewal term | 1 year |
Lease equipment | 3-Year Extension Option | |
Lessee, Lease, Description | |
Number of contracts | 7 |
Lease renewal term | 3 years |
FAIR VALUE MEASUREMENTS - Narrative (Details) - shares |
Mar. 31, 2023 |
May 26, 2022 |
Apr. 01, 2022 |
---|---|---|---|
Warrant | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Warrant outstanding (in shares) | 2,835,000 | 250,000 | 2,750,000 |
FAIR VALUE MEASUREMENTS - Dynamic Black-Scholes Merton unobservable inputs (Details) - Stock option |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Warrant | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Expected dividend rate (in percent) | 0.00% |
Expected volatility rate, minimum (in percent) | 112.01% |
Risk free interest rate, minimum (in percent) | 3.71% |
Expected term (in years) | 4 years |
Additional Warrants | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Expected dividend rate (in percent) | 0.00% |
Expected volatility rate, maximum (in percent) | 108.72% |
Risk free interest rate, maximum (in percent) | 3.60% |
Expected term (in years) | 4 years 6 months |
FAIR VALUE MEASUREMENTS - Schedule of liabilities with unobservable inputs (Details) - Level 3 - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 14,270 | $ 75,211 |
Warrants granted | 0 | 25,669 |
Equity component of the convertible senior note | 0 | (78,789) |
Change in valuation of warrants included in net income | 9,185 | (7,821) |
Balance at end of period | $ 23,455 | $ 14,270 |
COMMODITY DERIVATIVE INSTRUMENTS - Fair Value of Derivative Instruments within Balance Sheet (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivative | ||
Derivative commodity asset(liability) | $ (23,441) | $ (14,512) |
Crude oil futures | ||
Derivative | ||
Derivative commodity asset(liability) | 4,550 | 2,186 |
Crude oil swaps | ||
Derivative | ||
Derivative commodity asset(liability) | 0 | (69) |
Crude oil futures | ||
Derivative | ||
Derivative commodity asset(liability) | (4,536) | (2,359) |
Commodity | ||
Derivative | ||
Derivative commodity asset(liability) | $ 14 | $ (242) |
COMMODITY DERIVATIVE INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
(Gain) loss on commodity derivative contracts | $ (1,516) | $ 3,487 |
INCOME TAXES -Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 1,013 | $ 0 |
Income tax expense from discontinued operation | $ 17,700 |
DISCONTINUED OPERATIONS - Narrative (Details) - USD ($) $ in Millions |
Jan. 25, 2022 |
Feb. 01, 2023 |
---|---|---|
Held-for-sale | UMO business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total cash, consideration | $ 87.3 | |
Safety-Kleen | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Break up fee payment | $ 3.0 |
DISCONTINUED OPERATIONS - Balance Sheet Disclosures by Disposal Groups (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
ASSETS | |||
Total current assets | $ 0 | $ 20,560 | |
TOTAL ASSETS | 805,937 | 689,385 | $ 280,498 |
Current liabilities | |||
Total liabilities | $ 585,150 | 523,965 | |
Held-for-sale | UMO business | |||
ASSETS | |||
Accounts receivable, net | 7,490 | ||
Inventory | 1,674 | ||
Prepaid expenses | 183 | ||
Total current assets | 9,347 | ||
Fixed assets, at cost | 19,746 | ||
Less accumulated depreciation | (9,140) | ||
Fixed assets, net | 10,606 | ||
Operating lease right-of use assets | 44 | ||
Intangible assets, net | 563 | ||
Assets held for sale, noncurrent | 11,213 | ||
TOTAL ASSETS | 20,560 | ||
Current liabilities | |||
Accounts payable | 2,750 | ||
Accrued expenses | 629 | ||
Operating lease liability-current | 45 | ||
Total liabilities | $ 3,424 |
RELATED PARTY TRANSACTIONS (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Related Party Transactions [Abstract] | ||
Related party payments | $ 185,000 | $ 74,700 |
SUBSEQUENT EVENTS (Details) - Common Stock - shares |
3 Months Ended | ||
---|---|---|---|
Apr. 19, 2023 |
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Subsequent Event [Line Items] | |||
Exercise of options to purchase common stock (in shares) | 166,000 | 60,000 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Stock issued (in shares) | 99,371 | ||
Exercise of options to purchase common stock (in shares) | 120,000 |
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