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Business Overview
   NASDAQ: VTNR


   February 2013


            recovering tomorrow’s energy
Disclaimer
This document may contain forward-looking statements including words such as “may,” “can,”
“could,” “should,” “predict,” “aim,” “potential,” “continue,” “opportunity,” “intend,” “goal,”
“estimate,” “expect,” “expectations,” “project,” “projections,” “plans,” “anticipates,” “believe,”
“think,” “confident,” “scheduled,” or similar expressions, as well as 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. 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 Energy 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 Energy’s future results. The forward-looking
statements included in this presentation are made only as of the date hereof. Vertex Energy
cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you
should not place undue reliance on these forward-looking statements. Finally, Vertex Energy
undertakes no obligation to update these statements after the date of this presentation, 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 Energy.



                                                       recovering tomorrow’s energy
                                                                                                     2
Company Overview
 Vertex Energy is a leading environmental services company focused on recycling petroleum-based waste
  streams

 The Company Recently completed a strategic acquisition of substantially all of the assets of Vertex Holdings

 The Acquisition creates a vertically integrated business which spans the entire petroleum recycling value
  chain
    » Collection: Collect and purchase used oil directly from generators such as Jiffy Lube and car dealerships
         › Approximately 9 million gallons collected during the 12-month period ended September 30, 2012

    » Aggregation: Purchase used oil, transmix, and off-specification commercial chemical products from an established network of local and
      regional collectors
         › Approximately 58 million gallons aggregated during the 12-month period ended September 30, 2012

    » Logistics: Manage the transportation, storage and delivery of aggregated feedstock and re-refined products

    » Re-refining: Process waste streams into higher-value feedstocks or end products using in-house proprietary TCEP technology or 3rd party
      outsourcing for transmix and chemical byproducts

    » Sales: Sell used oil and re-refined products to re-refineries & fuel blenders

 Headquartered in Houston, Texas, with approximately 90 employees




                                                                                      recovering tomorrow’s energy
                                                                                                                                              3
Vertex’s Role in the Petroleum Recycling Value Chain


                      Generators            Collectors            Aggregators             Processors             End Users




                 Third parties        Collect used oil      Purchase used oil      Process used oil     End product is used
                  Generate used oil     from generators        from collectors                               as an industrial fuel,
                                                                                      Technology
                  through core                                                                               ship fuel, base oil, or
  Overview        business
                                       Typically local or    Sell and deliver it     upgrades input
                                                                                                             refinery feedstock
                                        regional               as feedstock for        into higher value
                 Jiffy Lube, car                              processors              end products
                                       Highly fragmented
                  dealerships, etc.




Vertex Energy
  Historical                                                                           Refining &
                                                               Black Oil Div.
                                                                                      Marketing Div.




 Acquired
Businesses*
                                                                                           TCEP


    * EBITDA for 2011 was $6 million & 9 months ending 9/30/2012 was $4 million


                                                                     recovering tomorrow’s energy
                                                                                                                              4
Markets for Used Oil


Burners   (paper mill, asphalt kiln)                                   High Value Fuel (TCEP)




                                            USED OIL




Re-refineries (Base Stock)                                            Export (utility blends)




                                       Vacuum Gas Oil (VGO)



                                                       recovering tomorrow’s energy
                                                                                                5
Compelling Business Model


          Used Oil                                                                Pipeline Transmix &
                                                                                  Chemical Byproduct




    Black Oil Division                   Refining & Marketing                     Refining & Marketing

 Historically, an aggregator              Thermal Chemical                      Aggregator and logistics
                                                                                  manager of transmix and
  and logistics manager of used            Extraction Process –                   byproduct feedstocks
  oil feedstock                                    TCEP
                                                                                 Oversee 3rd party re-refining
 Acquisition gives Vertex               Patent pending technology               process
  Energy collection capabilities          developed by Vertex
                                                                                 Sell re-refined products
 Used oil sold to third-party           Converts used motor oil into a
  Re-refineries, VGO, Export or           refining feedstock or
  transferred to Refining &               cutterstock-diesel
  Marketing Division                      replacement.




      Fuel Blenders                             Fuel Blenders                          Fuel Blenders
      Re-refineries                               Refiners                           Chemical-Refiners

                                                           recovering tomorrow’s energy
                                                                                                             6
Facilities


CMT – TCEP facility                KMTEX – Port Arthur Location




                              recovering tomorrow’s energy
                                                                  7
Map of Black Oil Division and Distribution




                        recovering tomorrow’s energy
                                                       8
Volumes & Financials
                                               FYE                  FYE                      FYE                 9 Months Ending 9/30,
                                              2009                 2010                     2011                2011              2012
    Volume (in bbls. sold)
                                                     906,452              921,422              1,175,829             855,854        1,061,515
       YoY % Change                                   0.96%                1.65%                   27.61%             27.13%             24.03%

    Revenue                               $     38,703,847     $     58,140,985         $ 109,740,257       $      78,401,089   $ 102,316,702
       YoY % Change                                  (40.7%)               50.2%                   88.7%               84.8%             30.5%



    Gross Profit                                 2,729,552            4,239,944                8,074,070            6,769,022       6,819,441
       Gross Margin %                                  7.1%                 7.3%                    7.4%                8.6%              6.7%



    Adjusted EBITDA                                     174           1,474,935                4,281,413            3,953,057       3,400,349
       EBITDA Margin %                                 0.0%                 2.5%                    3.9%                5.0%              3.3%



    Net Income                                   (609,384)            1,228,426                5,753,515            3,680,750       3,520,916
       Net Income %                                   (1.6%)                2.1%                    5.2%                4.7%              3.4%



    Diluted EPS                          $            (0.08)   $             0.09       $            0.39   $            0.25   $          0.25

 NOL’s of ~$35mm from reverse merger
      1) Includes only one month of financial results from Vertex Holdings

      2) Adjusted EBITDA excludes merger related expenses

      3)Net Income includes a deferred income tax benefit of $1.9M relating to decrease in the Company’s valuation allowance on net
       operating losses.
                                                                                    recovering tomorrow’s energy
                                                                                                                                          9
Strong Financial Performance

                                       Revenue                                                  Gross Profit
       $120                                                                $9.0
                                           $109.7                                                      $8.1
                                                                $102.3     $8.0
       $100                                                                                                                 $6.8
                                                                                                                 $6.8
                                                                           $7.0
                                                      $78.4
        $80                                                                $6.0

                               $58.1                                       $5.0
                                                                                             $4.2
        $60
                                                                           $4.0
                 $38.7                                                              $2.7
        $40                                                                $3.0

                                                                           $2.0
        $20
                                                                           $1.0

         $0                                                                $0.0
                   FY            FY          FY      9 Months   9 Months             FY       FY        FY     9 Months   9 Months
                  2009          2010        2011      9/30/11    9/30/12            2009     2010      2011     9/30/11    9/30/12



                             Adjusted EBITDA                                                    Net Income
       $4.5                                $4.3                             $7.0
                                                       $4.0
       $4.0                                                                 $6.0                      $5.8 *
                                                                 $3.4 *
       $3.5
                                                                            $5.0
       $3.0
                                                                            $4.0                                 $3.7      $3.5 *
       $2.5
                                                                            $3.0
       $2.0
                               $1.5                                         $2.0
       $1.5                                                                                  $1.2
                                                                            $1.0
       $1.0

       $0.5                                                                 $0.0
                  $0.0
       $0.0                                                                ($1.0)   ($0.6)
                   FY           FY          FY       9 Months   9 Months              FY      FY        FY     9 Months   9 Months
                  2009         2010        2011       9/30/11    9/30/12             2009    2010      2011     9/30/11    9/30/12




Note: All $ figures in millions
*   Includes $1.8 million tax adjustment                                     recovering tomorrow’s energy
                                                                                                                                     10
Gross Profit Mix

 Successfully leveraging our history           Percentage of Gross Profit By Division
  as a value-added feedstock
                                        100%
  logistics provider to become a
  leading re-refiner of used                                32%
  petroleum products                    80%

                                                                          54%

 TCEP contribution ramping up                                                       75%
                                                                                                           70%
                                        60%                                                        78%
  dramatically and should aid
                                                  100%
  margin improvement
                                        40%
                                                            68%


                                                                          46%
                                        20%
                                                                                                           30%
                                                                                     25%           22%


                                         0%
                                                   FY        FY            FY         FY       9 Months   9 Months
                                                  2008      2009          2010       2011       9/30/11    9/30/12

                                                              Black Oil     Refining & Marketing




                                               recovering tomorrow’s energy
                                                                                                             11
Growth Strategy

 Expand Feedstock Supply Volume
  » Grow street collections and aggregation operations
  » Expand existing relationships with suppliers


 Replicate and rollout additional TCEP facilities
  » Locate new TCEP facility sites at marine ports to capitalize on feedstock availability
  » Expand existing Baytown capacity


 Acquire Collectors
  » Partner with or acquire collection and aggregation assets


 Vertical Integration
  » Leverage existing process technologies in the market
  » Expand other recycling and processing technologies for bi-products such as oil filters and
    antifreeze
  » End Product sales to Consumers
  » Direct Fuel Blending

                                                            recovering tomorrow’s energy
                                                                                                 12
Investment Highlights

                         Estimated $2.3 billion market opportunity
 Strong Position in
                         Services span the entire petroleum recycling value chain from collection to end product sales
Growing Petroleum
                         Well positioned to capitalize on growth trends through scale, technology, and key strategic
Recycling Industry        relationships with feedstock generators and aggregators


 Proprietary TCEP        Own the intellectual property rights to patent pending TCEP process
  Re-refinement          TCEP upgrades used oil into higher-value feedstock and diesel replacement fuel
   Technology            TCEP refinery capital expenditures are significantly less than conventional re-refineries



                         Diverse network of feedstock generators and collectors covering 13 states
  Key Strategic
                         Insulated from commodity price risk through supplier and customer contracts
  Relationships
                         Aggregated 58 million gallons of feedstock in during the twelve months ended September 30,
                          2012

                         Expand feedstock aggregation volumes and geographic footprint
Compelling Growth        Acquire used oil collectors and pursue other vertical integration opportunities
  Opportunities          Develop or acquire technologies to upgrade TCEP finished product into base oil
                         Expand TCEP capacity – 30 million gallon run-rate at first TCEP processing facility


 Proven Financial        Demonstrated growth in revenue, gross profit, EBITDA and net income
  Performance &          Acquisition of Vertex Holdings expected to be accretive to earnings and improve margins
Management Team          Proven, highly experienced management team averaging 20 years of industry experience



                                                             recovering tomorrow’s energy
                                                                                                                 13
Management Team

Benjamin P. Cowart | Chief Executive Officer, Chairman of the Board, Founder
26+ years petroleum recovery industry, pioneering the reclamation industry by developing recycling options
for many hydrocarbon residual materials once managed as hazardous wastes

Matthew Lieb | Chief Operating Officer
17+ years business leadership, operations, consulting expertise, 3 startups and public company experience

Chris Carlson | Chief Financial Officer
12+ years financial management, energy, commodity, treasury and risk management

John Strickland | Manager of Supply & Trading
27+ years management and marketing of fuels and petroleum blending operations

Greg Wallace | Manager of Refining & Marketing
22+ years processing, trading and marketing of petroleum and chemicals

Mike Stieneker| General Manager of H&H Oil Collections
20+ years management and operations of Used Oil Collections

Mike Carter| General Manager of Operations and Regulatory Compliance
20+ years management and terminal operations


                                                           recovering tomorrow’s energy
                                                                                                      14
Contact Information



         Ben Cowart
             CEO
        (281) 486-4182
     benc@vertexenergy.com




www.vertexenergy.com


                   recovering tomorrow’s energy
                                                  15

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MicroCapClub Invitational: Vertex Energy (VTNR)

  • 1. Business Overview NASDAQ: VTNR February 2013 recovering tomorrow’s energy
  • 2. Disclaimer This document may contain forward-looking statements including words such as “may,” “can,” “could,” “should,” “predict,” “aim,” “potential,” “continue,” “opportunity,” “intend,” “goal,” “estimate,” “expect,” “expectations,” “project,” “projections,” “plans,” “anticipates,” “believe,” “think,” “confident,” “scheduled,” or similar expressions, as well as 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. 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 Energy 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 Energy’s future results. The forward-looking statements included in this presentation are made only as of the date hereof. Vertex Energy cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Vertex Energy undertakes no obligation to update these statements after the date of this presentation, 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 Energy. recovering tomorrow’s energy 2
  • 3. Company Overview  Vertex Energy is a leading environmental services company focused on recycling petroleum-based waste streams  The Company Recently completed a strategic acquisition of substantially all of the assets of Vertex Holdings  The Acquisition creates a vertically integrated business which spans the entire petroleum recycling value chain » Collection: Collect and purchase used oil directly from generators such as Jiffy Lube and car dealerships › Approximately 9 million gallons collected during the 12-month period ended September 30, 2012 » Aggregation: Purchase used oil, transmix, and off-specification commercial chemical products from an established network of local and regional collectors › Approximately 58 million gallons aggregated during the 12-month period ended September 30, 2012 » Logistics: Manage the transportation, storage and delivery of aggregated feedstock and re-refined products » Re-refining: Process waste streams into higher-value feedstocks or end products using in-house proprietary TCEP technology or 3rd party outsourcing for transmix and chemical byproducts » Sales: Sell used oil and re-refined products to re-refineries & fuel blenders  Headquartered in Houston, Texas, with approximately 90 employees recovering tomorrow’s energy 3
  • 4. Vertex’s Role in the Petroleum Recycling Value Chain Generators Collectors Aggregators Processors End Users  Third parties  Collect used oil  Purchase used oil  Process used oil  End product is used Generate used oil from generators from collectors as an industrial fuel,  Technology through core ship fuel, base oil, or Overview business  Typically local or  Sell and deliver it upgrades input refinery feedstock regional as feedstock for into higher value  Jiffy Lube, car processors end products  Highly fragmented dealerships, etc. Vertex Energy Historical Refining & Black Oil Div. Marketing Div. Acquired Businesses* TCEP * EBITDA for 2011 was $6 million & 9 months ending 9/30/2012 was $4 million recovering tomorrow’s energy 4
  • 5. Markets for Used Oil Burners (paper mill, asphalt kiln) High Value Fuel (TCEP) USED OIL Re-refineries (Base Stock) Export (utility blends) Vacuum Gas Oil (VGO) recovering tomorrow’s energy 5
  • 6. Compelling Business Model Used Oil Pipeline Transmix & Chemical Byproduct Black Oil Division Refining & Marketing Refining & Marketing  Historically, an aggregator Thermal Chemical  Aggregator and logistics manager of transmix and and logistics manager of used Extraction Process – byproduct feedstocks oil feedstock TCEP  Oversee 3rd party re-refining  Acquisition gives Vertex  Patent pending technology process Energy collection capabilities developed by Vertex  Sell re-refined products  Used oil sold to third-party  Converts used motor oil into a Re-refineries, VGO, Export or refining feedstock or transferred to Refining & cutterstock-diesel Marketing Division replacement. Fuel Blenders Fuel Blenders Fuel Blenders Re-refineries Refiners Chemical-Refiners recovering tomorrow’s energy 6
  • 7. Facilities CMT – TCEP facility KMTEX – Port Arthur Location recovering tomorrow’s energy 7
  • 8. Map of Black Oil Division and Distribution recovering tomorrow’s energy 8
  • 9. Volumes & Financials FYE FYE FYE 9 Months Ending 9/30, 2009 2010 2011 2011 2012 Volume (in bbls. sold) 906,452 921,422 1,175,829 855,854 1,061,515 YoY % Change 0.96% 1.65% 27.61% 27.13% 24.03% Revenue $ 38,703,847 $ 58,140,985 $ 109,740,257 $ 78,401,089 $ 102,316,702 YoY % Change (40.7%) 50.2% 88.7% 84.8% 30.5% Gross Profit 2,729,552 4,239,944 8,074,070 6,769,022 6,819,441 Gross Margin % 7.1% 7.3% 7.4% 8.6% 6.7% Adjusted EBITDA 174 1,474,935 4,281,413 3,953,057 3,400,349 EBITDA Margin % 0.0% 2.5% 3.9% 5.0% 3.3% Net Income (609,384) 1,228,426 5,753,515 3,680,750 3,520,916 Net Income % (1.6%) 2.1% 5.2% 4.7% 3.4% Diluted EPS $ (0.08) $ 0.09 $ 0.39 $ 0.25 $ 0.25  NOL’s of ~$35mm from reverse merger  1) Includes only one month of financial results from Vertex Holdings  2) Adjusted EBITDA excludes merger related expenses  3)Net Income includes a deferred income tax benefit of $1.9M relating to decrease in the Company’s valuation allowance on net operating losses. recovering tomorrow’s energy 9
  • 10. Strong Financial Performance Revenue Gross Profit $120 $9.0 $109.7 $8.1 $102.3 $8.0 $100 $6.8 $6.8 $7.0 $78.4 $80 $6.0 $58.1 $5.0 $4.2 $60 $4.0 $38.7 $2.7 $40 $3.0 $2.0 $20 $1.0 $0 $0.0 FY FY FY 9 Months 9 Months FY FY FY 9 Months 9 Months 2009 2010 2011 9/30/11 9/30/12 2009 2010 2011 9/30/11 9/30/12 Adjusted EBITDA Net Income $4.5 $4.3 $7.0 $4.0 $4.0 $6.0 $5.8 * $3.4 * $3.5 $5.0 $3.0 $4.0 $3.7 $3.5 * $2.5 $3.0 $2.0 $1.5 $2.0 $1.5 $1.2 $1.0 $1.0 $0.5 $0.0 $0.0 $0.0 ($1.0) ($0.6) FY FY FY 9 Months 9 Months FY FY FY 9 Months 9 Months 2009 2010 2011 9/30/11 9/30/12 2009 2010 2011 9/30/11 9/30/12 Note: All $ figures in millions * Includes $1.8 million tax adjustment recovering tomorrow’s energy 10
  • 11. Gross Profit Mix  Successfully leveraging our history Percentage of Gross Profit By Division as a value-added feedstock 100% logistics provider to become a leading re-refiner of used 32% petroleum products 80% 54%  TCEP contribution ramping up 75% 70% 60% 78% dramatically and should aid 100% margin improvement 40% 68% 46% 20% 30% 25% 22% 0% FY FY FY FY 9 Months 9 Months 2008 2009 2010 2011 9/30/11 9/30/12 Black Oil Refining & Marketing recovering tomorrow’s energy 11
  • 12. Growth Strategy  Expand Feedstock Supply Volume » Grow street collections and aggregation operations » Expand existing relationships with suppliers  Replicate and rollout additional TCEP facilities » Locate new TCEP facility sites at marine ports to capitalize on feedstock availability » Expand existing Baytown capacity  Acquire Collectors » Partner with or acquire collection and aggregation assets  Vertical Integration » Leverage existing process technologies in the market » Expand other recycling and processing technologies for bi-products such as oil filters and antifreeze » End Product sales to Consumers » Direct Fuel Blending recovering tomorrow’s energy 12
  • 13. Investment Highlights  Estimated $2.3 billion market opportunity Strong Position in  Services span the entire petroleum recycling value chain from collection to end product sales Growing Petroleum  Well positioned to capitalize on growth trends through scale, technology, and key strategic Recycling Industry relationships with feedstock generators and aggregators Proprietary TCEP  Own the intellectual property rights to patent pending TCEP process Re-refinement  TCEP upgrades used oil into higher-value feedstock and diesel replacement fuel Technology  TCEP refinery capital expenditures are significantly less than conventional re-refineries  Diverse network of feedstock generators and collectors covering 13 states Key Strategic  Insulated from commodity price risk through supplier and customer contracts Relationships  Aggregated 58 million gallons of feedstock in during the twelve months ended September 30, 2012  Expand feedstock aggregation volumes and geographic footprint Compelling Growth  Acquire used oil collectors and pursue other vertical integration opportunities Opportunities  Develop or acquire technologies to upgrade TCEP finished product into base oil  Expand TCEP capacity – 30 million gallon run-rate at first TCEP processing facility Proven Financial  Demonstrated growth in revenue, gross profit, EBITDA and net income Performance &  Acquisition of Vertex Holdings expected to be accretive to earnings and improve margins Management Team  Proven, highly experienced management team averaging 20 years of industry experience recovering tomorrow’s energy 13
  • 14. Management Team Benjamin P. Cowart | Chief Executive Officer, Chairman of the Board, Founder 26+ years petroleum recovery industry, pioneering the reclamation industry by developing recycling options for many hydrocarbon residual materials once managed as hazardous wastes Matthew Lieb | Chief Operating Officer 17+ years business leadership, operations, consulting expertise, 3 startups and public company experience Chris Carlson | Chief Financial Officer 12+ years financial management, energy, commodity, treasury and risk management John Strickland | Manager of Supply & Trading 27+ years management and marketing of fuels and petroleum blending operations Greg Wallace | Manager of Refining & Marketing 22+ years processing, trading and marketing of petroleum and chemicals Mike Stieneker| General Manager of H&H Oil Collections 20+ years management and operations of Used Oil Collections Mike Carter| General Manager of Operations and Regulatory Compliance 20+ years management and terminal operations recovering tomorrow’s energy 14
  • 15. Contact Information Ben Cowart CEO (281) 486-4182 benc@vertexenergy.com www.vertexenergy.com recovering tomorrow’s energy 15