Vertex Energy Used Motor Oil Recycling Industry Overview slide image

Vertex Energy Used Motor Oil Recycling Industry Overview

Investment highlights Second-largest processor of used motor oil ("UMO") in North America, with processing capacity of over 115 million gallons (-23% of the North American UMO market) Overall volumes of product sold - which measures reach into the market - decreased 2% for the 12 mos. ended Q4 2015 versus Q4 2014 Street Collections increased 50% for the 12 mos. ended Q4 2015 versus Q4 2014 ■ Top-tier base of nationwide assets - creates an organization with deep vertical integration expertise across the UMO value chain Regional model with strategic hubs located in key geographic areas ◉ ◉ - Opportunity to optimize logistics, increase direct collections to capture additional margin Allows for "local expertise" in each market, which leads to understanding and realizing increased leverage across the country Market leverage around pricing – industry leaders in managing spread New paradigm in the market for collected/aggregated UMO – shift toward an environmental services model - - Oil collection recently moved from pay-for-oil ("PFO") to zero-pay ("ZP") with the current trend toward charge-for-oil ("CFO") - generators will pay Vertex to collect UMO Current market price for UMO at the generator level is approximately $0.27/gallon versus $.12 at December 31, 2015 CFO versus $1.00/gallon PFO 12 months ago Paradigm shift provides for opportunities to increase market share on the street Firm steps taken to protect against future extreme volatility New partnership limits marketing/trading risk Proven and experienced management with comprehensive industry knowledge VERTEX. ENERGY 22 22
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