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RS Investments, an investment management company, released its “RS Large Cap Value Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy underperformed the benchmark, Russell 1000 Value Index, in the quarter, returning 4.47% net vs 5.33% for the Index. Adverse stock selection in the Consumer Discretionary and Consumer Staples sectors impacted the portfolio’s performance in the quarter. In addition, you can check the fund’s top 5 holdings to determine its bes ...

Valero Energy (NYSE:VLO) said Thursday it moving forward with its plan to close its 145,000 bbl/day Benicia refinery in California by next spring following talks with state officials about options to keep it running, Dow Jones reported. "We have been ...

Skip to Main Content Skip to Search This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. Valero Earnings Show Why Refiners Are Energy's Big Winners This Year By Avi Salzman Oct 23, 2025, 5:05 pm EDT Share Resize Reprints In this article VLO XLE XOM CRAK In a messy year for en ...

Financial Performance - Revenues for Q3 2025 were $32,168 million, a decrease of 2.1% from $32,876 million in Q3 2024[12] - Net income attributable to Valero Energy Corporation stockholders for Q3 2025 was $1,095 million, compared to $364 million in Q3 2024, representing a significant increase of 200.3%[12] - Earnings per common share for Q3 2025 were $3.54, up from $1.14 in Q3 2024, reflecting a growth of 210.5%[12] - Comprehensive income attributable to Valero Energy Corporation stockholders for Q3 2025 was $940 million, compared to $706 million in Q3 2024, an increase of 33.0%[14] - For the nine months ended September 30, 2025, net income attributable to stockholders was $1.2 billion, a decrease of $1.3 billion compared to $2.5 billion in the same period of 2024, primarily due to a decrease in operating income of $1.8 billion[128] - Total revenues for the nine months ended September 30, 2025, were $99,125 million, a decrease from $99,125 million in the same period of 2024[76] Operating Income - Operating income for Q3 2025 was $1,509 million, significantly higher than $507 million in Q3 2024, marking an increase of 196.1%[12] - Operating income for the refining segment in Q3 2025 was $1.61 billion, an increase of $1.045 billion from $565 million in Q3 2024, driven by higher gasoline and distillate margins[126][127] - Total company operating income for the first nine months of 2025 was $1.606 billion, down from $3.407 billion in 2024[182] - Refining segment operating income decreased by $1.188 billion to $2.346 billion, with adjusted operating income showing a slight decrease of $7 million[164] Assets and Liabilities - Total assets decreased to $58,615 million as of September 30, 2025, down from $60,143 million at the end of 2024[10] - Total current liabilities decreased to $14,729 million as of September 30, 2025, compared to $15,495 million at the end of 2024, a reduction of 4.9%[10] - The company’s total equity decreased to $26,746 million as of September 30, 2025, down from $27,521 million at the end of 2024[10] - Total liabilities were reported at $482 million, including commodity derivative contracts of $341 million[88] Cash Flow and Investments - Cash flows from operating activities for the nine months ended September 30, 2025, totaled $3,769 million, down from $5,613 million in 2024, a decline of about 32.8%[22] - Cash generated from operations during the first nine months of 2025 was $3.8 billion, with $1.5 billion allocated to capital investments and $2.6 billion returned to stockholders[124] - The company made $1.4 billion in investments, primarily consisting of $1.5 billion in capital investments, with $158 million related to DGD[194] Impairment Losses - The company reported an asset impairment loss of $1,131 million for the nine months ended September 30, 2025, with no such loss reported in the same period of 2024[12] - The company recognized a combined asset impairment loss of $1.1 billion related to the Benicia and Wilmington refineries due to non-recoverable carrying values[174] Segment Performance - The Refining segment generated revenues of $30,415 million for the three months ended September 30, 2025, compared to $31,335 million in the same period of 2024, indicating a decrease of 2.9%[71] - The Ethanol segment reported revenues of $1,035 million for the three months ended September 30, 2025, compared to $912 million in the same period of 2024, marking an increase of 13.5%[71] - The Renewable Diesel segment reported revenues of $719 million for the three months ended September 30, 2025, compared to $632 million in the same period of 2024, indicating an increase of 13.8%[71] Shareholder Returns - The company paid dividends on common stock totaling $1,061 million for the nine months ended September 30, 2025, compared to $1,045 million in 2024, reflecting a slight increase of 1.5%[22] - The company purchased 5,667,134 shares for treasury during the three months ended September 30, 2025[49] - The remaining authorization for share repurchase programs as of September 30, 2025, was $2,811 million[50] Future Outlook and Strategic Plans - The company plans to cease refining operations at its Benicia Refinery by the end of April 2026, following strategic evaluations due to operational restrictions in California[33] - Valero's management anticipates future refining segment margins to be influenced by global geopolitical tensions and market dynamics[113] - The company expects to incur approximately $1.9 billion for capital investments attributable to Valero during 2025, with $1.6 billion allocated for sustaining the business[207] Market Conditions - Global demand for gasoline, diesel, and jet fuel continues to rise, with jet fuel demand outpacing other petroleum-based transportation fuels[132] - Crude oil differentials are expected to widen due to increased sour crude oil production from OPEC+ suppliers, with potential volatility from geopolitical factors[132] - Renewable diesel demand is expected to remain consistent with current levels, while ethanol demand is anticipated to follow typical seasonal patterns[132]

Core Insights - Valero Energy Corporation (VLO) reported third-quarter 2025 adjusted earnings of $3.66 per share, exceeding the Zacks Consensus Estimate of $2.95, and significantly up from $1.16 per share in the same quarter last year [1][9] - Total revenues for the quarter decreased to $32.2 billion from $32.9 billion year-over-year, but still surpassed the Zacks Consensus Estimate of $29.8 billion [1][2] Financial Performance - The better-than-expected results were driven by increased refining margins, higher ethanol margins, and lower total cost of sales, although these were partially offset by a decline in renewable diesel sales volumes [2] - Adjusted operating income in the Refining segment rose to $1,665 million from $568 million year-over-year, supported by higher refining margins per barrel [3] - The Ethanol segment reported an adjusted operating profit of $183 million, up from $153 million in the prior-year quarter, aided by higher ethanol margins [3] Segment Analysis - The Renewable Diesel segment experienced an operating loss of $28 million, down from an operating income of $35 million in the previous year, with sales volumes declining to 2,717 thousand gallons per day from 3,544 thousand gallons [4] - Valero's refining throughput volumes increased to 3,087 thousand barrels per day, up from 2,884 thousand barrels per day year-over-year, exceeding estimates [5][9] - The Gulf Coast region contributed 60% to the total throughput volume, with other regions accounting for the remainder [6] Cost and Margins - Refining margins per barrel improved to $13.14 from $9.09 year-over-year, while refining operating expenses per barrel were slightly lower at $4.71 compared to $4.73 in the prior-year quarter [7] - Total cost of sales decreased to $30,396 million from $32,122 million year-over-year, attributed to a fall in the cost of materials [10] Capital Investment and Financial Position - Capital investment for the third quarter totaled $409 million, with $364 million allocated for sustaining the business [11] - As of September 30, 2025, Valero had cash and cash equivalents of $4.8 billion, total debt of $8.4 billion, and finance-lease obligations of $2.2 billion [11]

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Financial Data and Key Metrics Changes - For Q3 2025, net income attributable to Valero stockholders was $1.1 billion or $3.53 per share, compared to $364 million or $1.14 per share for Q3 2024, reflecting a significant increase [8] - Adjusted net income for Q3 2025 was $1.1 billion or $3.66 per share, up from $371 million or $1.16 per share in Q3 2024 [8] - Refining segment reported operating income of $1.6 billion for Q3 2025, compared to $565 million in Q3 2024 [8] - Net cash provided by operating activities was $1.9 billion in Q3 2025, with adjusted net cash provided being $1.6 billion [10] Business Line Data and Key Metrics Changes - Refining throughput volumes averaged 3.1 million barrels per day in Q3 2025, with a utilization rate of 97% [8] - The renewable diesel segment reported an operating loss of $28 million in Q3 2025, down from an operating income of $35 million in Q3 2024 [9] - The ethanol segment achieved $183 million of operating income in Q3 2025, compared to $153 million in Q3 2024, with production volumes averaging 4.6 million gallons per day [9] Market Data and Key Metrics Changes - Refining margins remained strong due to global demand and low inventory levels, despite high utilization rates [5] - Quality differentials for medium and heavy sour crudes have widened, with WCS trading at a 12% discount to Brent and Maya at a 14% discount [20] - Diesel demand in the U.S. was reported to be up 8% year-over-year in Valero's system, with overall diesel demand showing a 2% increase according to DOE data [51] Company Strategy and Development Direction - The company is progressing on the FCC unit optimization project at St. Charles Refinery, a $230 million initiative expected to enhance high-value product yields [6] - Valero plans to continue returning excess free cash flow to shareholders through stock buybacks, maintaining a payout ratio of 78% for Q3 2025 [11][33] - The company anticipates refining fundamentals to remain supported by low inventories and supply tightness, with limited capacity additions beyond 2025 [7] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about refining fundamentals remaining strong due to low inventories and geopolitical disruptions affecting supply [5][7] - The outlook for the ethanol segment remains positive due to strong domestic and export demand, supported by a record corn crop [40] - Management noted that the renewable diesel segment is expected to return to positive EBITDA, aided by lower fat prices and rationalization in the biodiesel market [42] Other Important Information - The company ended Q3 2025 with $8.4 billion in total debt and $4.8 billion in cash and cash equivalents, resulting in a debt-to-capitalization ratio of 18% [12] - Capital investments for 2025 are expected to be approximately $1.9 billion, with a significant portion allocated to sustaining the business [12] Q&A Session Summary Question: Insights on heavy crude differentials and availability - Management expressed disappointment in the impact of TMX on West Coast crude values, noting that most barrels are flowing to the Far East, and quality differentials have widened significantly [20][21] Question: Global capacity additions and reliability - Management indicated that while there are expected capacity additions, many new facilities may not reach nameplate capacity, leading to tighter supply-demand balances [26] Question: Impact of global outages on product markets - Management noted strong export demand and the inability to restock inventories in the U.S., which is keeping domestic markets tight [30] Question: Capital returns and stock buybacks - Management confirmed that excess free cash flow will continue to be directed towards share buybacks, maintaining a disciplined approach to capital returns [33] Question: Crude on the water and its destination - Management noted that most barrels are flowing to Asia, with increased Iraqi barrels expected in the U.S. market [39] Question: Performance of non-refining businesses - Ethanol is performing well due to strong demand and favorable conditions, while Diamond Green Diesel is returning to profitability [40][42] Question: Domestic gasoline demand trends - Management reported flat to slightly down gasoline demand year-over-year, with good export demand and stable fundamentals [50] Question: Technology advancements in operations - Management discussed the use of AI and robotics to improve operational efficiency and maintenance scheduling [56][86]

Valero Energy (NYSE:VLO) Q3 2025 Earnings Call October 23, 2025 10:00 AM ET Company ParticipantsNitin Kumar - Senior analystHomer Bhullar - VP, Investor Relations and FinanceLane Riggs - Chairman, CEO and PresidentEric Fisher - Senior Vice President Product Supply, Trading and WholesaleTheresa Chen - Managing Director, Midstream and Refining Equity ResearchGary Simmons - EVP and COOGreg Bram - VPRich Walsh - EVP and General CounselPhillip Jungwirth - Managing DirectorJason Gabelman - Managing Director, Ener ...

Valero Energy (NYSE:VLO) Q3 2025 Earnings Call October 23, 2025 10:00 AM ET Speaker0Greetings, and welcome to Valero Energy Corp. Third Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded.It is now my pleasure to introduce your host, Homer Bhullar, Vice President, Investor Relations and Finance. Thank you. You may begin.Speaker1Good mo ...