Valero Energy (VLO) came out with quarterly earnings of $1.14 per share, missing the Zacks Consensus Estimate of $1.29 per share. This compares to earnings of $7.49 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -11.63%. A quarter ago, it was expected that this oil refiner would post earnings of $2.61 per share when it actually produced earnings of $2.71, delivering a surprise of 3.83%.Over the last four quarters, the company ...

[Valero Energy Q3 2024 Earnings Release](index=1&type=section&id=Valero%20Energy%20Reports%20Third%20Quarter%202024%20Results) [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Valero reported a significant decrease in Q3 2024 net income to $364 million, while returning $907 million to stockholders and completing its DGD Port Arthur SAF project Q3 2024 Key Financial Results | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net Income Attributable to Valero Stockholders | $364 million | $2.6 billion | | Earnings Per Share | $1.14 | $7.49 | - Returned **$907 million** to stockholders, comprising **$342 million** in dividends and **$565 million** in stock buybacks[1](index=1&type=chunk)[6](index=6&type=chunk) - Successfully completed the Diamond Green Diesel (DGD) Port Arthur Sustainable Aviation Fuel (SAF) project in October[1](index=1&type=chunk)[9](index=9&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) All primary business segments experienced a year-over-year decline in Q3 2024 operating income, with Refining, Renewable Diesel, and Ethanol segments reporting significant decreases Operating Income by Segment (Q3 2024 vs. Q3 2023) | Segment | Q3 2024 Operating Income | Q3 2023 Operating Income | | :--- | :--- | :--- | | Refining | $565 million | $3.4 billion | | Renewable Diesel | $35 million | $123 million | | Ethanol | $153 million | $197 million | [Refining](index=1&type=section&id=Refining) The Refining segment's Q3 2024 operating income sharply declined to $565 million, alongside decreased throughput volumes due to maintenance activities Refining Segment Performance | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Operating Income | $565 million | $3.4 billion | | Throughput Volumes (barrels/day) | 2.9 million | 3.022 million | Refining Margin per Barrel of Throughput | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Refining Margin per Barrel | $9.09 | $19.47 | | Adjusted Operating Income per Barrel | $2.14 | $12.41 | [Renewable Diesel](index=1&type=section&id=Renewable%20Diesel) Renewable Diesel operating income decreased to $35 million in Q3 2024 despite increased sales volumes, indicating significant margin compression Renewable Diesel Segment Performance | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Operating Income | $35 million | $123 million | | Sales Volumes (gallons/day) | 3.5 million | 2.992 million | Renewable Diesel Margin per Gallon of Sales | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Renewable Diesel Margin per Gallon | $0.60 | $0.95 | | Operating Income per Gallon | $0.11 | $0.45 | [Ethanol](index=1&type=section&id=Ethanol) The Ethanol segment's Q3 2024 operating income declined to $153 million despite an increase in production volumes Ethanol Segment Performance | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Operating Income | $153 million | $197 million | | Production Volumes (gallons/day) | 4.6 million | 4.329 million | Adjusted Ethanol Operating Income per Gallon of Production | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Adjusted Operating Income per Gallon | $0.36 | $0.49 | [Corporate and Other](index=1&type=section&id=Corporate%20and%20Other) General and administrative expenses decreased in Q3 2024, with an effective tax rate of 20 percent for the quarter - General and administrative expenses decreased to **$234 million** in Q3 2024 from **$250 million** in Q3 2023[5](index=5&type=chunk) - The effective tax rate for Q3 2024 was **20 percent**[5](index=5&type=chunk) [Financial Position and Shareholder Returns](index=1&type=section&id=Financial%20Position%20and%20Shareholder%20Returns) Valero maintained a strong financial position with $5.2 billion in cash and a 17% net debt-to-capitalization ratio, returning $907 million to stockholders in Q3 2024 - Remains committed to a through-cycle minimum annual payout ratio of **40 to 50 percent** of adjusted net cash provided by operating activities[6](index=6&type=chunk) - The CEO emphasized a continued focus on operational excellence, capital discipline, and honoring the commitment to shareholder returns[7](index=7&type=chunk) [Investing and Financing Activities](index=1&type=section&id=Investing%20and%20Financing%20Activities) Q3 2024 net cash from operating activities was $1.3 billion, with $429 million in capital investments and $907 million returned to stockholders through dividends and buybacks Q3 2024 Cash Flow and Investments | Metric | Amount | | :--- | :--- | | Net Cash Provided by Operating Activities | $1.3 billion | | Adjusted Net Cash Provided by Operating Activities | $1.1 billion | | Capital Investments | $429 million | | Sustaining Capital Investments | $338 million | Q3 2024 Shareholder Returns | Type | Amount | | :--- | :--- | | Dividends Paid | $342 million | | Stock Buybacks | $565 million | | **Total Returns** | **$907 million** | [Liquidity and Financial Position](index=2&type=section&id=Liquidity%20and%20Financial%20Position) As of September 30, 2024, Valero maintained a strong financial position with $5.2 billion in cash and a 17% net debt-to-capitalization ratio Financial Position as of September 30, 2024 | Metric | Amount | | :--- | :--- | | Total Debt | $8.4 billion | | Finance Lease Obligations | $2.5 billion | | Cash and Cash Equivalents | $5.2 billion | | Debt to Capitalization Ratio (net of cash) | 17% | [Strategic Update](index=2&type=section&id=Strategic%20Update) Valero successfully completed its DGD Port Arthur Sustainable Aviation Fuel (SAF) project, enabling conversion of half its renewable diesel capacity to SAF and capitalizing on low-carbon fuel demand - The SAF project at the DGD Port Arthur plant was completed in October, on schedule and under budget[9](index=9&type=chunk)[11](index=11&type=chunk) - The project provides the plant the optionality to upgrade approximately **50%** of its current **470 million gallon** annual renewable diesel production capacity to SAF[9](index=9&type=chunk) [Detailed Financial Tables](index=5&type=section&id=Detailed%20Financial%20Tables) This section provides unaudited financial tables for Q3 and nine months ended September 30, 2024, including consolidated, segment, and other key financial data with GAAP to non-GAAP reconciliations [Consolidated Financial Highlights](index=5&type=section&id=Consolidated%20Financial%20Highlights) Q3 2024 consolidated revenues decreased to $32.9 billion, with net income attributable to Valero stockholders sharply declining to $364 million Consolidated Statement of Income Data (Three Months Ended Sep 30) | Metric (in millions) | 2024 | 2023 | | :--- | :--- | :--- | | Revenues | $32,876 | $38,404 | | Operating Income | $507 | $3,503 | | Net Income Attributable to Valero | $364 | $2,622 | | Earnings per Share - Diluted | $1.14 | $7.49 | [Segment Financial Highlights](index=6&type=section&id=Segment%20Financial%20Highlights) Q3 2024 operating income for Refining, Renewable Diesel, and Ethanol segments were $565 million, $35 million, and $153 million respectively, all lower than prior year Operating Income by Segment (Three Months Ended Sep 30, in millions) | Segment | 2024 | 2023 | | :--- | :--- | :--- | | Refining | $565 | $3,445 | | Renewable Diesel | $35 | $123 | | Ethanol | $153 | $197 | | Corporate and Eliminations | $(246) | $(262) | | **Total Operating Income** | **$507** | **$3,503** | [Segment Operating Highlights](index=11&type=section&id=Segment%20Operating%20Highlights) Q3 2024 operating statistics show Refining throughput at 2,884 thousand barrels per day, Renewable Diesel sales at 3,544 thousand gallons per day, and Ethanol production at 4,584 thousand gallons per day, with declining per-unit margins Key Operating Volumes (per day, Q3 2024 vs Q3 2023) | Segment | Unit | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Refining | Thousand Barrels | 2,884 | 3,022 | | Renewable Diesel | Thousand Gallons | 3,544 | 2,992 | | Ethanol | Thousand Gallons | 4,584 | 4,329 | [Other Financial Data](index=19&type=section&id=Other%20Financial%20Data) As of September 30, 2024, the balance sheet shows total equity of $28.0 billion and total debt of $10.8 billion, with adjusted net cash from operations at $4.6 billion for the first nine months Balance Sheet Data (in millions) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $5,184 | $5,424 | | Total debt and finance lease obligations | $10,806 | $11,524 | | Total equity | $28,000 | $28,524 | [Appendix](index=3&type=section&id=Appendix) This section provides corporate information, legal disclaimers, and detailed explanations of non-GAAP financial measures, including definitions and reconciliations to GAAP equivalents [About Valero](index=3&type=section&id=About%20Valero) Valero Energy Corporation is a multinational manufacturer and marketer of petroleum-based and low-carbon transportation fuels, operating through Refining, Renewable Diesel, and Ethanol segments - Valero owns **15 petroleum refineries** with a combined throughput capacity of approximately **3.2 million barrels per day**[13](index=13&type=chunk) - Valero is a joint venture partner in Diamond Green Diesel, which has a combined renewable diesel production capacity of **1.2 billion gallons per year**[13](index=13&type=chunk) - The company owns **12 ethanol plants** with a combined production capacity of approximately **1.6 billion gallons per year**[13](index=13&type=chunk) [Safe-Harbor Statement](index=3&type=section&id=Safe-Harbor%20Statement) This standard safe-harbor statement warns that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially due to various external factors - Forward-looking statements cover expectations for low-carbon fuels strategy, project performance, market conditions, and future financial performance[14](index=14&type=chunk)[16](index=16&type=chunk) - Actual results may differ due to factors including legislative changes, market dynamics, inflation, geopolitical conflicts, and other risks detailed in SEC filings[16](index=16&type=chunk) [Use of Non-GAAP Financial Information](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Information) Valero explains its use of non-GAAP financial measures, such as adjusted net income and segment margins, to facilitate period-over-period comparison by excluding non-core items, with reconciliations provided - The report uses non-GAAP measures including adjusted net income, adjusted EPS, segment margins (Refining, Renewable Diesel, Ethanol), and adjusted net cash provided by operating activities[17](index=17&type=chunk)[47](index=47&type=chunk) - Valero believes these non-GAAP measures provide improved comparability by adjusting for items not indicative of core operating performance[48](index=48&type=chunk)

Investors looking for the lowest cost refiner should look no further than Valero Energy (NYSE: VLO ). The company's operating structure provides a wide moat advantage that allows the company to produce strong financial results even inI am a Licensed Professional Engineer who works in the Nuclear Power industry. I use my professional working knowledge of the power/energy industries to aid in evaluating potential equities worthy of long-term investment. I invest in income producing equities and rental real es ...

Valero Energy Corporation (VLO) is set to report third-quarter 2024 results on Oct. 24, before the opening bell.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.In the last reported quarter, Valero Energy’s adjusted earnings of $2.71 per share beat the Zacks Consensus Estimate of $2.61, primarily due to an increase in refining throughput volumes. Earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 11.52%. This is depi ...

In the latest market close, Valero Energy (VLO) reached $137.04, with a +0.29% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 0.4%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.63%.The oil refiner's stock has dropped by 1.47% in the past month, exceeding the Oils-Energy sector's loss of 7.82% and lagging the S&P 500's gain of 3.76%.Investors will be eagerly watching for the performance of Valero Energy in its upcoming earnings disclosure. The ...

Company Performance - Valero Energy's stock closed at $142.34, reflecting a -0.26% change from the previous day, underperforming the S&P 500 which gained 0.61% [1] - Over the past month, Valero Energy shares increased by 6.4%, while the Oils-Energy sector declined by 2.26% and the S&P 500 rose by 5.36% [1] - The upcoming earnings report is scheduled for October 24, 2024, with an expected EPS of $1.40, indicating an 81.31% decline year-over-year, and a revenue forecast of $33.11 billion, down 13.78% from the same quarter last year [1] Analyst Estimates - For the fiscal year, earnings are projected at $9.61 per share and revenue at $130.37 billion, representing declines of -61.41% and -9.94% respectively from the prior year [2] - Recent changes in analyst estimates reflect shifting business dynamics, with upward revisions indicating positive sentiment towards Valero Energy's operations [2] - The Zacks Consensus EPS estimate has decreased by 21.86% over the last 30 days, leading to a Zacks Rank of 5 (Strong Sell) for Valero Energy [3] Valuation Metrics - Valero Energy's Forward P/E ratio is currently 14.85, which is lower than the industry average of 15.33 [3] - The company has a PEG ratio of 3.71, compared to the industry average PEG ratio of 2.55, indicating a higher valuation relative to projected earnings growth [3] Industry Context - The Oil and Gas - Refining and Marketing industry ranks 238 in the Zacks Industry Rank, placing it in the bottom 6% of over 250 industries [4] - The Zacks Industry Rank is based on the average Zacks Rank of individual stocks, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [4]

Company Performance - Valero Energy (VLO) closed at $137.47, with a daily increase of +1.81%, outperforming the S&P 500's loss of 0.93% [1] - Over the last month, Valero's shares decreased by 7.97%, underperforming the Oils-Energy sector's loss of 2.51% and the S&P 500's gain of 2.17% [1] - The upcoming earnings report on October 24, 2024, is projected to show earnings of $2.09 per share, reflecting a year-over-year decline of 72.1%, with expected quarterly revenue of $33.46 billion, down 12.87% from the previous year [1] Analyst Estimates - For the fiscal year, Zacks Consensus Estimates project earnings of $10.26 per share and revenue of $131.86 billion, indicating declines of -58.8% and -8.92% respectively from the prior year [2] - Recent changes in analyst estimates indicate a downward shift of 16.54% in the Zacks Consensus EPS estimate, leading to a Zacks Rank of 5 (Strong Sell) for Valero Energy [3] Valuation Metrics - Valero Energy has a Forward P/E ratio of 13.15, which is a discount compared to the industry's average Forward P/E of 15.35 [3] - The company also has a PEG ratio of 3.29, aligning with the average PEG ratio of the Oil and Gas - Refining and Marketing industry [3] Industry Context - The Oil and Gas - Refining and Marketing industry is currently ranked 236 in the Zacks Industry Rank, placing it in the bottom 7% of over 250 industries [4] - The Zacks Industry Rank measures the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [4]

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Valero Energy (VLO) .Valero Energy currently has an average brokerage recommendation (ABR) of 1 ...

Shares of energy firm Valero Energy Corp (NYSE:VLO) are 0.9% lower before the opening bell following a bear note. Piper Sandler, who also downgraded several other oil sector names due to capacity and demand worries, downgraded VLO to "neutral" from "overweight" and reduced its price target to $123 from $169.In its note, the analyst still called Valero Energy stock "best in class," but said there's "less room for outperformance." Watch out for other covering brokerages to follow suit, as 14 still rate VLO a ...

Group 1 - Valero Energy Corporation (VLO) has gained 8% year to date, outperforming the 1.4% rise of the industry composite stocks [1] - Valero operates 15 petroleum refineries with a combined throughput capacity of 3.2 million barrels per day across the U.S., Canada, and the U.K. [2] - The Renewable Diesel business segment, particularly the Diamond Green Diesel joint venture, is benefiting from global low-carbon fuel policies, driving demand for renewable diesel [2][3] Group 2 - Valero's refining operations are resilient in a carbon-constrained environment, generating significant cash flows for shareholder returns and growth projects [3] - Input costs for Valero are highly volatile due to fluctuating crude oil prices, which poses a risk to its business [4] - Competitors such as Marathon Petroleum, Phillips 66, and ExxonMobil also face similar exposure to oil price volatility, with ExxonMobil having a distillation capacity of approximately 5 million barrels per day across 21 refineries [4][5]