Nevada Refinery Moves From Restart to Actual Production as Diesel Crack Spreads Triple
SKYQ has more than doubled off its 52-week low of $1.1 on light trading volume (0.3× avg).
Summary
Eagle Springs, Nevada's only crude refinery, is now producing diesel, vacuum gas oil, naphtha and asphalt rather than just idling after its September restart. That follows the September 24 8-K confirming the restart and $300,000 in repairs, and it is the first time the company has said product is actually being made. The timing is favorable: Salt Lake City diesel crack spreads ran about $133-$136 per barrel on October 21 versus roughly $33 in January, a ~300% jump, and the EIA expects spreads above historical averages through 2027. The catch is that Sky Quarry still reported zero revenue and a $4.1 million net loss with a going concern warning in its Q2 10-Q, and it has been leaning on an expanded ATM plus stock-for-debt settlements to stay funded. Nameplate capacity is about 5,000 barrels of crude per day, so real cash flow depends on how fast throughput ramps and whether it can secure crude supply. Management said it will update as production volumes increase.
At the time of this announcement, SKYQ was trading at $2.28 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $18.9M. The 52-week trading range was $1.10 to $19.45. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.