Valero Energy (NYSE:VLO) Q3 2025 Earnings Call October 23, 2025 10:00 AM ET Speaker2Greetings and welcome to Valero Energy Corporation third quarter 2025 earnings conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, ...

来源：环球市场播报 美股周四早盘，瓦莱罗能源（Valero Energy，VLO）上涨6.4%，此前该公司报告第三季度非GAAP每股 收益为3.66美元，超出预期0.61美元，营收略微下降至321.7亿美元。 尽管营收同比略有下降，但公司受益于裂解价差的改善和强劲的可再生柴油市场，支撑了其财务表现。 ...

Core Insights - Valero Energy (VLO) reported quarterly earnings of $3.66 per share, exceeding the Zacks Consensus Estimate of $2.95 per share, and significantly up from $1.14 per share a year ago, representing an earnings surprise of +24.07% [1] - The company achieved revenues of $32.17 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 8.05%, although down from $32.88 billion year-over-year [2] - Valero Energy has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Valero Energy's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $2.27 on revenues of $28.74 billion, and for the current fiscal year, it is $8.49 on revenues of $118.66 billion [7] Industry Context - The Oil and Gas - Refining and Marketing industry, to which Valero belongs, is currently ranked in the top 10% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Performance - Valero reported net income attributable to stockholders of $1.1 billion, or $3.53 per share, for Q3 2025, compared to $364 million, or $1.14 per share, in Q3 2024[2] - Revenues for Q3 2025 were $32.168 billion, compared to $32.876 billion in Q3 2024[22] - Total revenues for the three months ended September 30, 2025, were $32,168 million, a decrease from $32,876 million in the same period of 2024, representing a decline of 2.1%[25] - Operating income for the three months ended September 30, 2025, was $1,509 million, compared to $507 million in the same period of 2024, indicating a significant increase of 196.1%[25] - Net income attributable to Valero Energy Corporation stockholders for the three months ended September 30, 2025, was $1,095 million, up from $364 million in the same period of 2024, an increase of 200.3%[29] - Adjusted net income attributable to Valero Energy Corporation stockholders for the nine months ended September 30, 2025, was $2,130 million, compared to $2,532 million in the same period of 2024, a decrease of 15.9%[29] - Earnings per common share for the three months ended September 30, 2025, was $3.53, compared to $1.14 in the same period of 2024, an increase of 209.6%[29] Segment Performance - The Refining segment achieved operating income of $1.6 billion in Q3 2025, up from $565 million in Q3 2024, with throughput volumes averaging 3.1 million barrels per day[3] - The Renewable Diesel segment reported an operating loss of $28 million in Q3 2025, compared to operating income of $35 million in Q3 2024, with sales volumes averaging 2.7 million gallons per day[4][6] - Ethanol segment operating income increased to $183 million in Q3 2025 from $153 million in Q3 2024, with record production volumes of 4.6 million gallons per day[7] - Refining operating income for Q3 2025 was $1,610 million, a significant increase from $565 million in Q3 2024, representing a growth of 184%[32] - Renewable Diesel segment reported an operating loss of $28 million in Q3 2025, compared to a profit of $35 million in Q3 2024, marking a decline of 180%[32] - Ethanol operating income for Q3 2025 was $183 million, up from $153 million in Q3 2024, representing an increase of 19.6%[32] Cash Flow and Investments - Valero returned $1.3 billion to stockholders in Q3 2025, including $351 million in dividends and $931 million for stock buybacks, resulting in a payout ratio of 78% of adjusted net cash provided by operating activities[11] - Net cash provided by operating activities was $1.9 billion in Q3 2025, with adjusted net cash provided being $1.6 billion[9] - For the three months ended September 30, 2025, net cash provided by operating activities was $1,881 million, compared to $1,295 million for the same period in 2024, representing a 45.2% increase[56] - Capital investments totaled $409 million in Q3 2025, with $364 million allocated for sustaining the business[10] - Capital expenditures attributable to Valero for the three months ended September 30, 2025, were $382 million, compared to $394 million in 2024, a decrease of 3.0%[58] Debt and Equity - Valero 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%[13] - Total debt (excluding variable interest entities) as of September 30, 2025, was $8,235 million, an increase from $8,027 million as of December 31, 2024, representing a 2.6% rise[56] - Total equity decreased to $26,746 million as of September 30, 2025, from $27,521 million as of December 31, 2024, a decline of 2.8%[56] Market and Pricing - Brent crude oil price averaged $68.14 per barrel in Q3 2025, down from $78.37 in Q3 2024[53] - Renewable diesel prices averaged $2.35 per gallon for the three months ended September 30, 2025, compared to $2.31 in 2024, reflecting a 1.7% increase[54] - The average price for biodiesel Renewable Identification Number (RIN) was $1.13 for the three months ended September 30, 2025, up from $0.60 in 2024, a significant increase of 88.3%[54] Operational Metrics - Total throughput volumes for Q3 2025 were 3,087 thousand barrels per day, up from 2,884 thousand barrels per day in Q3 2024, reflecting an increase of 7%[39] - Total feedstocks processed in Q3 2025 were 2,741 thousand barrels per day, an increase from 2,518 thousand barrels per day in Q3 2024, reflecting a growth of 8.9%[39] - The refining margin for Q3 2025 reached $3,731 million, compared to $2,413 million in Q3 2024, indicating a year-over-year increase of 54.5%[32] - The refining margin per barrel of throughput for Q3 2025 was $13.14, compared to $9.09 in Q3 2024, showing an increase of 44.8%[39] Impairments and Adjustments - The company reported an asset impairment loss of $1,131 million for the nine months ended September 30, 2025[27] - The company recognized a combined asset impairment loss of $1.1 billion related to the Benicia and Wilmington refineries for the nine months ended September 30, 2025[62] - Employee retention and separation costs were adjusted out of operating expenses, with a total adjustment of $(50) million for both the Refining segment and the U.S. West Coast region in Q3 2025[66]

Core Insights - U.S. refiner Valero Energy reported an increase in third-quarter profit, attributed to a rebound in refining margins [1] Company Summary - Valero Energy experienced a rise in profit during the third quarter, indicating a positive trend in its financial performance [1] - The improvement in refining margins played a significant role in boosting the company's profitability [1] Industry Summary - The refining sector is witnessing a recovery, as evidenced by the rebound in refining margins, which is beneficial for companies like Valero Energy [1]

Oct 23, 2025 6:30 AM Eastern Daylight Time Valero Energy Reports Third Quarter 2025 Results Share SAN ANTONIO--(BUSINESS WIRE)--Valero Energy Corporation (NYSE: VLO, "Valero†) today reported net income attributable to Valero stockholders of $1.1 billion, or $3.53 per share, for the third quarter of 2025, compared to net income of $364 million, or $1.14 per share, for the third quarter of 2024. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to ...

Core Insights - Analysts expect Valero Energy (VLO) to report quarterly earnings of $2.91 per share, reflecting a year-over-year increase of 155.3% with revenues projected at $29.77 billion, down 9.4% from the previous year [1] - The consensus EPS estimate has been revised upward by 36% over the past 30 days, indicating a significant reassessment by analysts [1] Revenue Projections - Total operating revenues from refining are expected to be $28.91 billion, indicating a year-over-year decline of 7.8% [4] - Total operating revenues from ethanol are projected at $1.13 billion, down 1.4% year-over-year [4] - Total operating revenues from renewable diesel are estimated at $1.11 billion, reflecting a 9% decrease year-over-year [4] Refining Margins - The U.S. Mid-Continent region's refining margin per barrel is expected to reach $10.33, up from $7.92 a year ago [5] - The U.S. West Coast region's refining margin per barrel is projected at $13.74, compared to $7.31 in the same quarter last year [5] - The U.S. Gulf Coast region's refining margin per barrel is anticipated to be $10.65, an increase from $9.03 reported in the same quarter last year [6] Throughput Volumes - Refining throughput volumes per day are estimated at 3,007.56 thousand barrels, up from 2,884.00 thousand barrels in the same quarter last year [6] - U.S. Gulf Coast region throughput volumes per day are projected at 1,805.39 thousand barrels, slightly up from 1,799.00 thousand barrels year-over-year [7] - U.S. Mid-Continent region throughput volumes per day are expected to reach 447.87 thousand barrels, compared to 419.00 thousand barrels in the same quarter last year [7] Overall Performance - Analysts predict that the refining margin per barrel will likely reach $12.02, up from $9.09 in the same quarter last year [8] - North Atlantic region throughput volumes per day are expected to be 482.18 thousand barrels, compared to 422.00 thousand barrels a year ago [8] - The North Atlantic region's refining margin per barrel is projected at $14.50, an increase from $11.55 reported in the same quarter last year [9] Market Performance - Valero Energy shares have shown a return of -3.8% over the past month, contrasting with the Zacks S&P 500 composite's +1.2% change [10] - With a Zacks Rank 2 (Buy), Valero Energy is expected to outperform the overall market in the near future [10]

Core Business Overview - ExxonMobil focuses on the exploration, discovery, and exploitation of hydrocarbon energy resources, primarily crude oil and natural gas, and is a leader in petrochemicals, industrial chemicals, and plastics [1] Financial Performance - ExxonMobil's current market capitalization is $478 billion, ranking it second among the world's largest oil companies [2] - The company generated $349.6 billion in total revenue last year and paid out $16.7 billion in dividends [2] - In Q2 2025, ExxonMobil reported total revenues of $85.51 billion, down 12% year-over-year but exceeding expectations by over $1 billion, with an EPS of $1.64, which was 8 cents better than forecasted [8] Production and Refining Expansion - Recently, ExxonMobil has expanded its production capabilities, including a new development in Guyana with an output capacity of 150,000 barrels of oil per day [6] - The company has also opened new refining capacity in Singapore, utilizing innovative technology to enhance the production of high-value products [6] Future Earnings Outlook - For Q3 results expected on October 31, ExxonMobil anticipates high profits from crude oil production and refining operations, with crude oil profits potentially boosted by $300 million from higher prices and refined products expected to generate between $300 million and $700 million in additional profits [7] Dividend Reliability - ExxonMobil has maintained a reliable dividend payment history since 1995, with the last payment of 99 cents per share, annualizing to $3.96 per share and providing a forward yield of 3.5% [9] Analyst Ratings and Price Targets - Wells Fargo analyst Sam Margolin has an Overweight rating on ExxonMobil, citing its strong balance sheet and capital program, with a price target of $156, indicating a potential 39% gain over the next year [11] - The Moderate Buy consensus rating is based on 18 analyst reviews, with 11 Buys and 7 Holds, suggesting a 13% upside from the current trading price of $112.24 [12]

Core Insights - Valero Energy Corporation (VLO) is scheduled to report its third-quarter 2025 results on October 23, 2025, before the market opens [1] - In the previous quarter, VLO's adjusted earnings were $2.28 per share, surpassing the Zacks Consensus Estimate of $1.73, mainly due to increased refining margins and lower total costs [1] Earnings Performance - VLO has missed the Zacks Consensus Estimate in one of the last four quarters but has beaten it three times, resulting in an average surprise of approximately 130% [2] - The Zacks Consensus Estimate for third-quarter earnings per share is $2.94, reflecting a 158% increase from the same period last year [2] Revenue Expectations - The Zacks Consensus Estimate for revenues stands at $29.7 billion, indicating a 9.6% decrease compared to the previous year's figure [3] Market Conditions - Average spot prices for West Texas Intermediate (WTI) crude in July, August, and September were $68.39, $64.86, and $63.96 per barrel, respectively, which were lower than the average prices of $81.80, $76.68, and $70.24 per barrel in the same months of the previous year [4] - Lower oil prices are expected to positively impact VLO's bottom line, as crude serves as a raw material for producing final petroleum products [5] Earnings Outlook - The current model does not predict an earnings beat for VLO, as it has an Earnings ESP of -4.85% and a Zacks Rank of 2 (Buy) [6][8]

Core Insights - California is experiencing significant refinery closures, with the Phillips 66 refinery in Los Angeles set to close by the end of 2025, and Valero planning to idle its Bay Area refinery by April 2024, collectively accounting for approximately 18% of the state's refining capacity [5][6][7] Group 1: Job Losses and Economic Impact - Thousands of workers, potentially tens of thousands, are at risk of losing their jobs as California reduces its reliance on fossil fuels, with an estimated loss of nearly 58,000 workers in the oil and gas industries between 2021 and 2030 [3][9] - The fossil fuel industry employs around 94,000 people in California, and the closure of refineries will have a significant economic impact on local communities, such as Benicia, where Valero contributes about $7.7 million annually in taxes [8][9] Group 2: Legislative and Regulatory Actions - California's energy regulators are negotiating to keep the Valero plant operational and have recently backed off a proposal to penalize oil companies for high profits, indicating a shift in approach to support the industry [4] - Governor Gavin Newsom signed legislation to expedite oil well permitting in the Central Valley, reflecting inconsistent messaging regarding the state's climate policies and their impact on the oil industry [4][7] Group 3: Support for Displaced Workers - The state has established the Displaced Oil and Gas Worker Fund to provide career training and job opportunities, awarding nearly $30 million to various groups, although funding is set to expire in 2027 [11][12] - Governor Newsom has allocated $20 million in the 2022-2023 budget for a pilot program to train displaced workers to plug abandoned oil wells, emphasizing the need for a clear transition plan for affected workers [12][13] Group 4: Industry Perspectives - Industry representatives argue that California's climate policies threaten blue-collar jobs, with calls for a reassessment of these policies to protect employment in the sector [14] - Workers in the oil industry often earn a living wage without a college degree, but there are concerns about job security and the lack of a clear transition plan to new fields [15][16]