Valero(VLO)

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The Refining Giant: Valero's Impressive Shareholder Payback
Seeking Alpha· 2024-07-29 11:50
Sundry Photography Introduction It's time to talk about a fascinating dividend (growth) stock, one of the most cyclical companies on my radar. That company is the Valero Energy Corporation (NYSE:VLO). Initially, I started buying Valero during the pandemic when I thought I got it very cheap. However, before the vaccine news brought hope to the market, I saw my position drop roughly 50%. Since then, shares have taken off, allowing VLO to return more than 380% over the past ten years, outperforming the S&P ...
Valero(VLO) - 2024 Q2 - Quarterly Report
2024-07-25 21:02
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission File Number 001-13175 VALERO ENERGY CORPORATION (Exact name of registrant as specified in its charter) Delaware 7 ...
Valero(VLO) - 2024 Q2 - Earnings Call Transcript
2024-07-25 17:14
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 (VLO) Q2 Earnings & Revenues Beat on Estimates, Fall Y/Y
ZACKS· 2024-07-25 14:50
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) Beats Q2 Earnings and Revenue Estimates
ZACKS· 2024-07-25 12:41
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 ...
Valero(VLO) - 2024 Q2 - Quarterly Results
2024-07-25 12:16
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 ...
What's in Store for Valero Energy (VLO) in Q2 Earnings?
ZACKS· 2024-07-22 15:00
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 ...
Here's Why Valero Energy (VLO) Fell More Than Broader Market
ZACKS· 2024-07-18 23:21
Valero Energy (VLO) ended the recent trading session at $147.78, demonstrating a -1.51% swing from the preceding day's closing price. This change lagged the S&P 500's 0.78% loss on the day. On the other hand, the Dow registered a loss of 1.29%, and the technology-centric Nasdaq decreased by 0.7%.Heading into today, shares of the oil refiner had gained 0.07% over the past month, outpacing the Oils-Energy sector's loss of 7.83% and lagging the S&P 500's gain of 2.14% in that time.Analysts and investors alike ...
Why Valero Energy (VLO) Outpaced the Stock Market Today
ZACKS· 2024-07-12 23:06
Valero Energy (VLO) closed at $147.92 in the latest trading session, marking a +0.87% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.55%. Elsewhere, the Dow saw an upswing of 0.62%, while the tech-heavy Nasdaq appreciated by 0.63%.Shares of the oil refiner witnessed a loss of 2.12% over the previous month, beating the performance of the Oils-Energy sector with its loss of 11.53% and underperforming the S&P 500's gain of 4.28%.Investors will be eagerly watching for the performance ...
Valero Energy (VLO) Increases Despite Market Slip: Here's What You Need to Know
ZACKS· 2024-06-24 23:21
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 ...