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Shell Plc (SHEL) Sells Mobile Refinery to Vertex Energy
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The oil major Shell plc’s (SHEL - Free Report) subsidiaries concluded the sale of the company’s 91,000-barrels per day refinery in Mobile, AL to a subsidiary of the Houston, TX-based high-quality refined goods producer and marketer, Vertex Energy Inc. (VTNR - Free Report) , for a cash consideration of $75 million along with the value of the hydrocarbon reserve and accrued liabilities.
The Mobile facility is located along the U.S. Gulf Coast at the north end of Mobile Bay in Alabama. It produces LPG, diesel fuel, jet fuel and gasoline, among other things. It may operate independently as a refinery, producing basic oils or chemical feedstocks.
In addition to $75 million, Shell received another $165 million for the hydrocarbon inventory at the time of closing. The final amount of the hydrocarbon inventory will be subject to volume measurements and mean market prices for April, which are likely to be in the $150-$175 million range.
The deal, which includes the sale of the Mobile refinery and related co-located logistics infrastructure, including product racks, an associated dock and the Blakeley Island Terminal, was initially declared in June 2021 and was anticipated to be closed by the fourth quarter of the year. However, SHEL later stated that the agreement was supposed to close in the first quarter of 2022.
Shell mentioned that employees providing dedicated support to the refinery were offered employment with Vertex at the time of closing the transaction in accordance with the deal.
Commenting on the transaction, Vertex President and CEO Benjamin Cowart said "The acquisition of the Mobile refinery represents a transformative moment in the history of Vertex, one that positions us to become a leading regional supplier of both renewable and conventional products."
Headquartered in London, Shell is one of the primary oil supermajors, a group of U.S. and Europe-based big energy multinationals with operations spanning worldwide. The company is fully integrated as it participates in every aspect related to energy, from oil production to refining and marketing. SHEL operates as an energy and petrochemical company. Shell plc was formerly known as Royal Dutch Shell.
Vertex Energy, Inc. operates as an environmental services company that recycles industrial waste streams and off-specification commercial chemical products. Its primary focus is recycling used motor oil and other petroleum by-product streams. Vertex operates in three divisions: Black Oil Division, Refining and Marketing Division and Thermal Chemical Extraction Process.
Oasis Petroleum’s stock has rallied 149.3% in a year. Oasis Petroleum beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being around 37.6%.
The Zacks Consensus Estimate for OAS’ 2022 earnings is projected at $29.15 per share, up about 206.2% from the projected year-ago earnings of $9.52.
The Zacks Consensus Estimate for Vista’s 2022 earnings is pegged at $1.55 per share, up 187% from the projected year-ago earnings of 54 cents.
Vista stock has gone up 244.2% in a year. The Zacks Consensus Estimate for VIST’s 2022 earnings has been revised 11.5% upward over the past 60 days.
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Shell Plc (SHEL) Sells Mobile Refinery to Vertex Energy
The oil major Shell plc’s (SHEL - Free Report) subsidiaries concluded the sale of the company’s 91,000-barrels per day refinery in Mobile, AL to a subsidiary of the Houston, TX-based high-quality refined goods producer and marketer, Vertex Energy Inc. (VTNR - Free Report) , for a cash consideration of $75 million along with the value of the hydrocarbon reserve and accrued liabilities.
The Mobile facility is located along the U.S. Gulf Coast at the north end of Mobile Bay in Alabama. It produces LPG, diesel fuel, jet fuel and gasoline, among other things. It may operate independently as a refinery, producing basic oils or chemical feedstocks.
In addition to $75 million, Shell received another $165 million for the hydrocarbon inventory at the time of closing. The final amount of the hydrocarbon inventory will be subject to volume measurements and mean market prices for April, which are likely to be in the $150-$175 million range.
The deal, which includes the sale of the Mobile refinery and related co-located logistics infrastructure, including product racks, an associated dock and the Blakeley Island Terminal, was initially declared in June 2021 and was anticipated to be closed by the fourth quarter of the year. However, SHEL later stated that the agreement was supposed to close in the first quarter of 2022.
Shell mentioned that employees providing dedicated support to the refinery were offered employment with Vertex at the time of closing the transaction in accordance with the deal.
Commenting on the transaction, Vertex President and CEO Benjamin Cowart said "The acquisition of the Mobile refinery represents a transformative moment in the history of Vertex, one that positions us to become a leading regional supplier of both renewable and conventional products."
Headquartered in London, Shell is one of the primary oil supermajors, a group of U.S. and Europe-based big energy multinationals with operations spanning worldwide. The company is fully integrated as it participates in every aspect related to energy, from oil production to refining and marketing. SHEL operates as an energy and petrochemical company. Shell plc was formerly known as Royal Dutch Shell.
Vertex Energy, Inc. operates as an environmental services company that recycles industrial waste streams and off-specification commercial chemical products. Its primary focus is recycling used motor oil and other petroleum by-product streams. Vertex operates in three divisions: Black Oil Division, Refining and Marketing Division and Thermal Chemical Extraction Process.
Shell currently sports a Zacks Rank #1 (Strong Buy). Other similar-ranked stocks from the energy sector that warrant a look include Oasis Petroleum and Vista Oil & Gas (VIST - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
Oasis Petroleum’s stock has rallied 149.3% in a year. Oasis Petroleum beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being around 37.6%.
The Zacks Consensus Estimate for OAS’ 2022 earnings is projected at $29.15 per share, up about 206.2% from the projected year-ago earnings of $9.52.
The Zacks Consensus Estimate for Vista’s 2022 earnings is pegged at $1.55 per share, up 187% from the projected year-ago earnings of 54 cents.
Vista stock has gone up 244.2% in a year. The Zacks Consensus Estimate for VIST’s 2022 earnings has been revised 11.5% upward over the past 60 days.