Financial Data and Key Metrics Changes - For Q2 2024, net income attributable to Valero stockholders was $880 million or $2.71 per share, down from $1.9 billion or $5.40 per share in Q2 2023 [9] - The Refining segment reported operating income of $1.2 billion for Q2 2024, compared to $2.4 billion in Q2 2023 [9] - Refining throughput volumes averaged 3 million barrels per day in Q2 2024, with a throughput capacity utilization of 94% [9] - Refining cash operating expenses were $4.45 per barrel in Q2 2024 [11] Business Line Data and Key Metrics Changes - Renewable Diesel segment operating income was $112 million in Q2 2024, down from $440 million in Q2 2023, with sales volumes averaging 3.5 million gallons per day, a decrease of 908,000 gallons per day year-over-year [10] - The Ethanol segment reported operating income of $105 million for Q2 2024, compared to $127 million in Q2 2023, with production volumes averaging 4.5 million gallons per day, an increase of 31,000 gallons per day year-over-year [10] Market Data and Key Metrics Changes - Gasoline sales in the U.S. were flat year-over-year, while diesel sales showed a 10% increase in Valero's system, although overall diesel demand in the U.S. declined by about 100,000 barrels per day [19][20] - The North Atlantic Basin experienced slowing economic activity, negatively impacting diesel demand, while increased refinery runs in the Middle East contributed to inventory restocking in Europe [22][23] Company Strategy and Development Direction - Valero's growth projects are on schedule, with the Diamond Green Diesel sustainable aviation fuel project expected to be operational in Q4 2024 [7] - The company is focused on short-cycle, high-return optimization projects around existing refining assets and maintaining a commitment to shareholder returns, with a year-to-date payout of 80% [8] Management's Comments on Operating Environment and Future Outlook - Management noted that the U.S. economy remains resilient, with gasoline demand flat year-over-year and a slight decline in diesel demand [19] - The company expects refining throughput volumes to decrease in Q3 due to planned maintenance activities, but anticipates a tightening of supply-demand balances in the near term [15][25] Other Important Information - Valero returned $1.4 billion to stockholders in Q2 2024, with a payout ratio of 87% for the quarter and 80% year-to-date [12] - The company ended the quarter with $8.4 billion in total debt and $5.2 billion in cash and cash equivalents, maintaining a debt-to-capitalization ratio of 16% [13][14] Q&A Session Summary Question: What are your views on supply and demand in the refining market? - Management indicated that the U.S. economy is resilient, with gasoline demand flat year-over-year and a slight decline in diesel demand, while diesel sales in Valero's system increased by 10% [19][20] Question: How do you view capital returns and buyback cadence going forward? - Management stated that they have not needed to lean into the balance sheet for shareholder returns, maintaining a strong cash flow position to support buybacks and dividends [28] Question: What is the impact of TMX on the West Coast market? - Management noted that the West Coast market took time to respond to TMX, with crude costs adjusting but the full impact expected to be seen in Q3 [62] Question: Can you provide an update on Mexico volumes and terminal openings? - Management reported a slight decrease in volumes to Mexico but anticipates growth with the opening of a new terminal in Altamira before the end of the year [65] Question: What is the outlook for ethanol margins and the Summit carbon capture project? - Management expressed optimism about ethanol margins due to low corn prices and indicated that the Summit project is not directly managed by them, but they support carbon sequestration strategies [83][84]

Valero Energy Corporation (VLO) reported second-quarter 2024 adjusted earnings of $2.71 per share, which beat the Zacks Consensus Estimate of $2.61. However, the bottom line declined from $5.40 reported in the year-ago quarter.Total quarterly revenues decreased from $34,509 million in the prior-year quarter to $34,490 million. The top line, however, beat the Zacks Consensus Estimate of $34,370 million.The better-than-expected quarterly results were primarily driven by an increase in refining throughput volu ...

Valero Energy (VLO) came out with quarterly earnings of $2.71 per share, beating the Zacks Consensus Estimate of $2.61 per share. This compares to earnings of $5.40 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.83%. A quarter ago, it was expected that this oil refiner would post earnings of $3.18 per share when it actually produced earnings of $3.82, delivering a surprise of 20.13%.Over the last four quarters, the company ...

Exhibit 99.01 Valero Energy Reports Second Quarter 2024 Results • Reported net income attributable to Valero stockholders of $880 million, or $2.71 per share • Declared a regular quarterly cash dividend on common stock of $1.07 per share on July 18 • Returned $1.4 billion to stockholders through dividends and stock buybacks SAN ANTONIO, July 25, 2024 – Valero Energy Corporation (NYSE: VLO, "Valero") today reported net income attributable to Valero stockholders of $880 million, or $2.71 per share, for the se ...

Valero Energy Corporation (VLO) is set to report second-quarter 2024 results on Jul 25, before the opening bell.In the last reported quarter, Valero Energy’s adjusted earnings of $3.82 per share beat the Zacks Consensus Estimate of $3.18 due to a decline in total cost of sales. Earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 12.14%. This is depicted in the graph below: Estimate TrendThe Zacks Consensus Estimate for second-quarter earni ...

Company Performance - Valero Energy (VLO) closed at $147.78, reflecting a -1.51% change from the previous day's closing price, underperforming the S&P 500's loss of 0.78% [1] - Over the past month, VLO shares gained 0.07%, outperforming the Oils-Energy sector's decline of 7.83% but lagging behind the S&P 500's increase of 2.14% [1] - The upcoming earnings report on July 25, 2024, is expected to show an EPS of $3.82, a decrease of 29.26% year-over-year, with revenue projected at $34.78 billion, a 0.79% increase compared to the same quarter last year [1] Earnings Estimates - For the full year, Zacks Consensus Estimates project earnings of $14.90 per share and revenue of $135.24 billion, representing declines of -40.16% and -6.58% respectively from the previous year [2] - Recent analyst estimate revisions indicate confidence in the company's business performance and profit potential, as positive revisions are associated with imminent stock price performance [2] Valuation Metrics - Valero Energy has a Forward P/E ratio of 10.07, which is lower than the industry's average Forward P/E of 12.69, indicating a valuation discount [3] - The current PEG ratio for VLO is 1.68, compared to the average PEG ratio of 1.83 for the Oil and Gas - Refining and Marketing industry [3] Industry Context - The Oil and Gas - Refining and Marketing industry is ranked 234 in the Zacks Industry Rank, placing it in the bottom 8% of over 250 industries [4] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the competitive landscape within the sector [4]

Company Performance - Valero Energy (VLO) closed at $147.92, reflecting a +0.87% increase from the previous day, outperforming the S&P 500's daily gain of 0.55% [1] - Over the past month, Valero's shares experienced a loss of 2.12%, which is better than the Oils-Energy sector's loss of 11.53% but underperformed the S&P 500's gain of 4.28% [1] - The upcoming earnings report on July 25, 2024, is projected to show earnings of $4.25 per share, a year-over-year decline of 21.3%, with expected revenue of $34.82 billion, a 0.9% increase compared to the previous year [1] Earnings Estimates - For the full year, the Zacks Consensus Estimates project earnings of $15.34 per share and revenue of $135.3 billion, representing declines of -38.39% and -6.54% from the prior year, respectively [2] - Recent shifts in analyst projections are crucial for investors, as positive revisions indicate confidence in the company's performance and profit potential [2] Valuation Metrics - Valero Energy currently has a Zacks Rank of 3 (Hold), with a Forward P/E ratio of 9.56, indicating a discount compared to the industry's Forward P/E of 13.08 [3] - The company has a PEG ratio of 1.59, which is lower than the average PEG ratio of 1.71 for the Oil and Gas - Refining and Marketing industry [3] Industry Context - The Oil and Gas - Refining and Marketing industry is ranked 198 in the Zacks Industry Rank, placing it in the bottom 22% of over 250 industries [4] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the competitive landscape within the sector [4]

Valero Energy (VLO) closed the most recent trading day at $150.73, moving +0.35% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.31%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, lost 1.09%.Coming into today, shares of the oil refiner had lost 7.52% in the past month. In that same time, the Oils-Energy sector lost 4.31%, while the S&P 500 gained 2.73%.Analysts and investors alike will be keeping a close eye on the performance ...

In the latest trading session, Valero Energy (VLO) closed at $151.11, marking a +0.69% move from the previous day. This change lagged the S&P 500's 0.77% gain on the day. Elsewhere, the Dow saw an upswing of 0.49%, while the tech-heavy Nasdaq appreciated by 0.95%.The oil refiner's stock has dropped by 9.63% in the past month, falling short of the Oils-Energy sector's loss of 7.24% and the S&P 500's gain of 3.71%.The upcoming earnings release of Valero Energy will be of great interest to investors. The compa ...

Overview - Valero has provided a total return of slightly over 21% since August of the previous year, remaining on par with the S&P 500 [2] - The company is revisiting its valuation and outlook, aiming for a more conservative estimate of fair value [2] Company Profile - Valero is an energy company that refines and sells petroleum and petrochemical products globally, operating in three main segments: Refining, Renewable Diesel, and Ethanol [4] - The company is strategically positioned to benefit from the Biofuels market, which is expected to grow at a CAGR of 5.2% through 2029 [4][5] Dividend Analysis - The latest quarterly dividend is $1.07 per share, resulting in a current dividend yield of 2.7% [6] - The dividend payout ratio is low at around 20%, significantly below the sector median of approximately 40% [6] - The dividend has grown at a CAGR of 4.2% over the past five years and 15.97% over the past ten years [6][7] - A back test shows that an initial investment of $10,000 in 2015, with monthly contributions and reinvested dividends, could yield an annual dividend of $4,873 by 2023 [7] Valuation Insights - Valero currently trades at a price-to-earnings ratio of 7.63x, below the sector median of 10.38x and its own five-year average of 8.95x [8] - The average price target from Wall Street analysts is around $180.95 per share, indicating a potential upside of approximately 17% from current levels [9] - A dividend discount calculation estimates a fair value of $171.20 per share, representing an 11.5% upside based on a conservative growth rate of 7.5% [20] Financial Performance - In Q1, Valero reported a revenue decrease of 12.8% year-over-year, totaling $31.76 billion, while earnings per share beat expectations at $3.82 [22] - The refining segment saw a significant drop in operating income from $4.1 billion to $1.7 billion due to lower refining volumes and maintenance costs [22] - The Renewable Diesel segment's net operating income decreased to $190 million, despite an increase in sales volume to 3.7 million gallons per day [22] - The Ethanol segment's operating income was $10 million, with production averaging 4.5 million gallons per day [23] - Cash from operations and free cash flow have improved above pre-pandemic levels, with liquidity strong at $4.9 billion [23] Debt and Cash Flow - Valero's long-term debt totals approximately $10 billion, which is within a normal range of $8 billion to $12 billion [27] - Free cash flow is currently at $7 billion, slightly down from $9.6 billion at the end of 2023 [27] Conclusion - Valero is positioned as a strong dividend compounder with rising free cash flow and a healthy payout ratio, supporting potential dividend growth [32] - Despite recent decreases in business segments, the company remains sensitive to crude oil price fluctuations, which can impact profitability [32]