2009-11-17 19:20:03 -

Vertex Energy, Inc. (“Vertex”)(OTCBB:VTNR), a leader in the aggregation, recycling and processing of distressed hydrocarbon streams, yesterday announced its financial results for the third quarter ended September 30, 2009. Vertex’s results of operations for the three and nine months ended September 30, 2009, were reported in its Form 10-Q filing for the period ended September 30, 2009, which was filed with the Securities and Exchange Commission on November 16, 2009.

“The third quarter produced a dramatic improvement in the financial performance of the company relative to the second quarter of this year,” said Benjamin P. Cowart, Vertex’s CEO. “We worked hard during the first half of this year to position ourselves for positive results in the second half and beyond, and

our third quarter results speak to the improvements we have made in both our Black Oil and Refining and Marketing Divisions.”


Vertex’s consolidated revenue during the third quarter of 2009 was $12,035,430, a 129% increase over Vertex’s consolidated 2009 second quarter revenue. Additionally, gross profit increased in the third quarter to $1,692,474 from $62,636 in the second quarter. Consolidated net income for the third quarter was $709,558, a dramatic improvement over the second quarter loss of $714,690. “Increased volumes and improved spreads in both business units combined with the early results from our recently launched thermal-chemical extraction process allowed us to generate these improved results and we are optimistic that we can build on these positive improvements in the coming quarters,” added Mr.
Cowart.

The Black Oil Division generated over $5.865 million in revenue during the third quarter, a nearly $2.5 million improvement relative to the second quarter of 2009. Gross margin in this division increased to $947,546 in the third quarter, an 827% increase relative to the second quarter. Additionally, the Black Oil Division’s volume increased 79% from the second quarter to the third quarter. “The third quarter results in the Black Oil Division illustrate, in part, the impact of our efforts to expand our customer base over the last several months,” said Mr.

Cowart, who continued, “We have been able to increase both our volume and our margin by servicing a greater number of customers across multiple regions with our used oil aggregation and logistics management capabilities.”


The Refining & Marketing Division also produced improved results after underperforming during the first half of the year. Third quarter revenue in this division was $6.17 million, a 225% increase over second quarter 2009 revenue. Additionally, gross margin increased to nearly $745,000 in the third quarter from a loss of close to $40,000 in the second quarter of this year. “We have worked through the challenges that followed Hurricane Ike’s impact last year and we have implemented a new pricing structure in this division that has better hedged our position in the event our pipeline transmix and chemical byproduct feedstocks and end product prices do not move in concert,” commented Mr. Cowart. “Heading into the third quarter of this year we felt that we were well positioned in this division despite underperforming earlier in the year and the improved results relative to last quarter show that our operations and the market have started to turn the corner,” added Mr. Cowart.

Vertex has been selling finished product from its licensed thermal-chemical extraction process (“TCEP”), a business initiative within the Refining & Marketing Division since July of this year. This finished product is used in feedstocks for refineries and marine fuel applications. “During the third quarter, we focused on improving TCEP on a continuous flow basis while simultaneously producing product that we have sold into the marketplace,” said Mr. Cowart. “While we are encouraged by the progress we made with TCEP during the third quarter, we are actively working on achieving more consistent operations and increased production from the process in the fourth quarter of 2009. We believe that there are still a number of opportunities to improve the process and while progress is being made and we are generating revenue, we believe we will see our best results from TCEP in 2010 and beyond once our improvements have fully taken root,” added Mr. Cowart.

As a result of the improved third quarter of 2009 performance relative to the second quarter of 2009 performance in both the Black Oil and Refining & Marketing Divisions combined with incremental growth in TCEP production, relatively more stable commodity markets and the fulfillment of the majority of the World Waste Technologies, Inc. merger related obligations; Vertex believes it is positioned for further improvement in the fourth quarter of 2009. “The fourth quarter of this year will see an increased focus on improving our licensed TCEP operations, which we believe will enhance the profitability of the company going forward and will serve as our platform for growth in the years to come,” said Mr.

Cowart. “After working through a challenging first half of the year, we are confident that the second half of 2009 will position us well competitively within our industry and will set the stage for improved year over year performance in 2010,” concluded Mr. Cowart.

ABOUT VERTEX ENERGY, INC.

Vertex Energy, Inc. (OTCBB:VTNR) is a leader in the aggregation, recycling and processing of distressed hydrocarbon streams thereby reducing the United States’ reliance on foreign crude oil. Vertex Energy’s focus, as a participant in the alternative energy and environmentally friendly investment sectors, is on creating increased value in the products it manages and produces through a variety of strategies and technologies that facilitate the re-refining of used oil and off specification commercial chemical products into higher value commodities. By creating higher value products from distressed hydrocarbon streams, the Company is positioned to produce both financial and environmental benefits. Vertex Energy, Inc. is based in Houston, Texas with offices in Florida, Georgia and California. More information on the company can be found at www.vertexenergy.com : .

This press release may contain forward-looking statements, including information about management’s view of Vertex Energy’s future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 (the “Act”).
In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act, and are subject to the safe harbor created by the Act. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of Vertex Energy, its divisions and concepts to be materially different than those expressed or implied in such statements.
These risk factors and others are included from time to time in documents Vertex files with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks.
Other unknown or unpredictable factors also could have material adverse effects on Vertex’s future results. The forward-looking statements included in this press release are made only as of the date hereof.
Vertex cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Vertex undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by Vertex.


Vertex Energy, Inc.Matthew Lieb, 310-230-5450 matthewl@vertexenergy.com : mailto:matthewl@vertexenergy.com