By Georgina McCartney and Arathy Somasekhar HOUSTON, Jan 21 (Reuters) - Valero bought a cargo of ​Venezuelan crude oil, two sources said on ‌Wednesday, the first deal by a U.S. Gulf Coast refiner ‌struck as part of Washington's deal with Caracas to buy up to 50 million barrels of the South American country's crude. Valero bought the crude ⁠from trading house ‌Vitol, one of the two sources said. The crude was traded for ‍delivery to the U.S. Gulf Coast at a discount of about $8.50 to $9.50 to Brent crude ...

Core Insights - Valero has made a significant move by purchasing a cargo of Venezuelan crude oil, marking the first deal by a U.S. Gulf Coast refiner under the recent agreement between Washington and Caracas to buy up to 50 million barrels of oil [1] Company Actions - The acquisition of Venezuelan crude oil by Valero indicates a strategic shift in sourcing, potentially influenced by geopolitical factors and U.S. policy changes regarding oil imports from Venezuela [1] Industry Implications - This transaction could signal a broader trend in the refining industry, where U.S. refiners may increasingly engage with Venezuelan oil supplies, reflecting a potential easing of restrictions and a response to global oil market dynamics [1]

Core Insights - Valero Energy Corporation (VLO) has a strong position in the refining sector, with a robust network of refineries capable of processing various feedstocks [1] Group 1: Renewable Fuel Production - VLO is responding to rising global awareness of air quality and emissions reduction by producing renewable diesel and Sustainable Aviation Fuel (SAF) [2] - The feedstocks for renewable diesel and SAF include used cooking oil, recycled animal fats, and inedible corn oil, which can lead to an 80% reduction in greenhouse gas emissions compared to conventional fuels [3] - VLO has expanded its annual renewable diesel capacity to 1.2 billion gallons from an initial 160 million gallons and can produce up to 235 million gallons of neat SAF, making it the world's second-largest renewable diesel producer [4][9] Group 2: Competitive Landscape - Other companies like BP and Phillips 66 are also producing low-carbon fuels, with BP forming a joint venture to enhance biofuel production and PSX producing renewable fuels at its Rodeo Renewable Energy Complex [5] Group 3: Financial Performance - VLO shares have increased by 30% over the past year, outperforming the industry average of 11.8% [6] - The company trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 8.83X, which is above the industry average of 4.56X [7] Group 4: Earnings Estimates - The Zacks Consensus Estimate for VLO's 2025 earnings has remained stable over the past week, with current estimates at $3.05 for the current quarter and $9.93 for the current year [11][12]

Company Overview - Valero Energy Corporation (NYSE:VLO) is a significant player in the oil and gas refining and marketing industry, known for its extensive network of refineries and commitment to high-quality fuel production [1] - The company competes with major industry players such as ExxonMobil and Chevron in the refining sector [1] Stock Performance - As of January 16, 2026, Scotiabank set a price target of $178 for Valero, indicating a potential decrease in stock price as the stock was trading at approximately $184.52, reflecting a price difference of about -3.53% from the target [2] - Valero's stock has risen by 14.5% over the past month, significantly outperforming the Zacks S&P 500 composite, which only saw a 1.6% increase [3] - The current stock price of Valero stands at $184.52, with a slight decrease of 0.035% today, and has fluctuated between a low of $182.86 and a high of $186.30 [4] Market Capitalization and Trading Volume - Valero's market capitalization is approximately $57.6 billion, indicating its substantial presence in the industry [5] - The recent trading volume for Valero is 1,066,671 shares, making it a stock of interest for investors [5][6]

Core Viewpoint - Valero Energy Corporation, the second-largest refiner in the U.S., plans to lay off 237 employees at its Benicia refinery, marking a significant step towards the permanent closure of one of California's few remaining fuel production facilities [1] Group 1: Company Actions - The layoffs will occur between March 15 and July 1, with the affected positions primarily non-union, representing a substantial portion of the refinery's total workforce of 348 [1] - The refinery manager, Lauren Bird, indicated that there will be no collaboration with local workforce development agencies to provide follow-up services for the laid-off employees, and Bird's own position is also being eliminated [1] Group 2: Industry Context - Valero announced plans to close the Benicia refinery in 2025, despite efforts from California Governor Gavin Newsom, regulatory bodies, and local officials to keep the facility operational [1] - The closure of multiple refineries in California has led to a dwindling fuel supply in the state, contributing to some of the highest gasoline prices in the nation [1] - Governor Newsom expressed appreciation for Valero's decision to continue supplying gasoline to the state during the closure process, viewing the plan to import fuel as a constructive development compared to a complete market exit [1]

Core Insights - Valero Energy Corporation (NYSE:VLO) is recognized as a top high-yield crude oil stock, particularly benefiting from potential increases in Venezuelan oil supply due to U.S. policy changes [1][2]. Group 1: Company Overview - Valero Energy is the world's leading independent petroleum refiner and a significant producer of low-carbon transportation fuels [2]. - The company operates the largest refinery on the Gulf Coast, designed to process heavier crudes, including those from Venezuela [3]. Group 2: Market Performance - On January 8, Valero's stock reached an all-time high as investors anticipated benefits from increased Venezuelan oil supply [3]. - The share price of Valero has increased by nearly 35% over the past year [5]. Group 3: Analyst Insights - Analyst Theresa Chen from Barclays noted that Valero has the capacity to process an additional 300,000 to 400,000 barrels per day (bpd) of Venezuelan oil [3]. - Michael Burry, a notable investor, expressed confidence in Valero, highlighting that Gulf Coast refineries have been underutilized and could see improved margins [4]. - Mizuho analyst Nitin Kumar raised Valero's price target from $192 to $197, anticipating a strong Q4 performance, while maintaining a 'Neutral' rating [4].

Core Insights - Valero Energy Corporation (VLO) is a prominent oil and gas refiner that processes both heavy and light crude into refined products, benefiting from the current low crude prices [1][8] - The ongoing decline in crude prices is advantageous for the downstream sector, allowing refiners like VLO to purchase raw materials at lower costs and enhance profit margins [2][8] Group 1: Business Model and Profitability - VLO's business model is strengthened by lower crude prices, with forecasts indicating crude prices will drop to $51.42 per barrel in 2026 from $65.32 in 2025, leading to an expected sharp increase in profit margins [2][8] - The company has maintained a strong track record of returning cash to shareholders, with an average payout ratio of 58% from 2014 to March 2025, excluding 2020, and currently offers a dividend yield of 2.52% [3][8] Group 2: Market Performance and Valuation - Valero's shares have appreciated by 34.2% over the past year, significantly outperforming the industry average of 12% [5] - The company trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) ratio of 8.64X, which is higher than the industry average of 4.48X [7] Group 3: Earnings Estimates - The Zacks Consensus Estimate for VLO's 2025 earnings has been revised downward over the past week, with current estimates showing earnings of $9.83 per share for the current year [9][10]

Core Insights - Benjamin Edwards Inc. increased its stake in Valero Energy Corporation by 17.3% during Q3, owning 18,440 shares valued at $3,140,000 after acquiring an additional 2,721 shares [2] - Institutional investors and hedge funds own 78.69% of Valero Energy's stock, with several firms adjusting their positions in the company during the third quarter [3] Institutional Activity - Private Trust Co. NA raised its holdings by 2.0%, now owning 3,381 shares worth $576,000 after buying 65 additional shares [3] - Highline Wealth Partners LLC boosted its holdings by 70.2%, now owning 160 shares valued at $27,000 after purchasing 66 shares [3] - Salomon & Ludwin LLC increased its position by 17.0%, owning 476 shares worth $76,000 after acquiring 69 shares [3] - Sowell Financial Services LLC increased its stake by 0.6%, now owning 11,467 shares valued at $1,952,000 after purchasing 70 shares [3] Insider Activity - CFO Jason W. Fraser sold 9,933 shares at an average price of $174.02, totaling $1,728,540.66, resulting in a 6.89% decrease in his ownership [4] Analyst Ratings - Erste Group Bank initiated coverage with a "buy" rating [5] - Morgan Stanley downgraded from "overweight" to "equal weight" but raised the target price from $160.00 to $175.00 [5] - JPMorgan Chase & Co. increased the target price from $197.00 to $200.00 with an "overweight" rating [5] - Wells Fargo & Company raised the target price from $216.00 to $220.00, maintaining an "overweight" rating [5] - Jefferies Financial Group increased the target price from $181.00 to $194.00 with a "buy" rating [5] - The average rating is "Moderate Buy" with a consensus target price of $183.00 [5] Financial Performance - Valero Energy reported Q3 EPS of $3.66, exceeding the consensus estimate of $3.15 by $0.51 [7] - Revenue for the quarter was $32.17 billion, surpassing expectations of $28.80 billion, but down 2.2% year-over-year [7] - Analysts predict an EPS of 7.92 for the current fiscal year [7] Dividend Information - Valero Energy declared a quarterly dividend of $1.13, representing an annualized dividend of $4.52 and a yield of 2.4% [8] Company Overview - Valero Energy Corporation is an integrated downstream energy company based in San Antonio, Texas, focusing on refining crude oil into finished fuels and producing petrochemical feedstocks [9] - The company also has significant operations in renewable fuels, including ethanol and biofuels, and manages a logistics network for moving feedstocks and finished products [10]

Core Viewpoint - The article discusses President Trump's encouragement for U.S. oil companies to invest in Venezuela, promising them "full security guarantees" while emphasizing direct dealings with the U.S. government rather than the Venezuelan authorities [1][4][7]. Group 1: Trump's Meeting with Oil Executives - Trump met with executives from 17 major oil companies, including Chevron and ExxonMobil, urging them to invest in Venezuela's oil sector [2][4]. - He assured the executives that they would receive comprehensive security guarantees for their investments, which would be achieved through cooperation with Venezuelan leadership and its people, rather than military intervention [4][6]. Group 2: Investment Projections and Security - Trump stated that U.S. oil companies could invest at least $100 billion in Venezuela, using their own funds rather than government money, but requiring government protection [4][10]. - He mentioned that the U.S. would refine and sell up to 50 million barrels of Venezuelan crude oil as part of the new arrangements [7][9]. Group 3: Oil Executives' Responses - Despite Trump's assurances, oil executives expressed caution regarding investments in Venezuela, with ExxonMobil's CEO highlighting the lack of current investment value due to the country's legal and business framework [10][11]. - Analysts noted that Venezuela's significant oil reserves do not equate to quick and profitable production due to outdated infrastructure, ongoing political instability, and high extraction costs [10][11].

Core Insights - President Trump is encouraging U.S. energy companies to participate in rebuilding Venezuela's energy infrastructure, emphasizing the potential for increased oil production and wealth generation [1][3] - Trump highlighted the significant oil reserves in both Venezuela and the U.S., claiming they together account for 55% of the world's oil [3] - Major companies, including Chevron, ConocoPhillips, and Exxon Mobil, are showing interest in the Venezuelan market, with Exxon planning to send a technical team to assess the situation [2][4] Industry Participation - The meeting included major industry players such as Marathon Petroleum and Valero Energy, which are well-equipped to process Venezuela's heavy crude [5] - Trump assured executives that U.S. security guarantees would be provided for their operations in Venezuela, although details were not specified [3] Economic Implications - Trump stated that U.S. involvement in Venezuela could lead to lower oil prices for Americans and help combat drug trafficking [6] - The energy sector is poised for potential growth, with companies eager to capitalize on the opportunity to invest in Venezuela's oil production [3][4]