Vertex Energy, Inc. (NASDAQ:VTNR) Q2 2019 Earnings Conference Call Transcript

Aug 07, 2019 • 09:00 am ET

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Vertex Energy, Inc. (NASDAQ:VTNR) Q2 2019 Earnings Conference Call Transcript

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Q & A
Executive
Benjamin P. Cowart

substitute. So that spread between our product in Group III can narrow quite a bit and can open up. It's just trying to pin that down would be misleading at this point.

Analyst
Sean Marconi

I can respect that. And then one last quick question. Do you have any updates on getting TCEP fired up?

Executive
Benjamin P. Cowart

No more updates other than our work's done, we haven't seen a spec from IMO, that's any different than the high sulfur spec, right? And we're in ready mode, and we're going to have to ease into the market, once the market opens up. So trying to forecast volumes, spreads and all those things until the vehicle is back on the highway back running. We'll have more handle on, how quick all that integrates into the new spec. So -- but we feel positive, assuming that the specs for the fuel don't change other than sulfur, then we're pretty confident we're ready to go. So capital, we've got a little bit of work that we're doing at the plant, but nothing material.

Analyst
Sean Marconi

Sound better guys. I appreciate the time now.

Executive
John Noel Strickland

Yeah. We're just ready to go and wait for the polling 5 specs to come out, so we can go.

Executive
Christopher Carlson

In the market.

Executive
John Noel Strickland

In the market. Yeah.

Analyst
Sean Marconi

Sounds great guys. Thanks.

Executive
Benjamin P. Cowart

Thank you.

Operator
Operator

And that does conclude our question-and-answer session today. Mr. Cowart, I'll turn the call back over to you for any closing comments.

Executive
Benjamin P. Cowart

Okay. Thank you, Tom, and please turn to Slide 20. In conclusion, Vertex is well positioned to benefit as we look ahead for the remainder of 2019 into 2020. The impact of IMO 2020 is already evident in the future markets, serving to reduce CMOP costs while increasing demand for IMO-compliant middle distillates, entering the fourth quarter of this year. Looking at the end of this year, Phase 2 closing of the Tensile transaction represents a major transformational event for us with the potential to add significant liquidity to our business while also allowing us to pursue high -- highly accretive development projects at our Myrtle Grove and Heartland facilities. Over the next several weeks, our management team will be attending the DA Davidson, diversified industrials conference in Chicago, together with Craig-Hallum-sponsored marketing events. In the interim, should you have any questions, please contact Noel Ryan at Vallum Advisors at (720) 778-2415 or at ir@vertexenergy.com.

Thank you, everyone, for joining us on the call. This will conclude our call for today.

Operator
Operator

[Operator Closing Remarks]