Valero(VLO) ZACKS·2025-02-06 15:11Core Viewpoint - Valero Energy Corporation (VLO) reported better-than-expected fourth-quarter 2024 results, with both earnings and revenues surpassing the Zacks Consensus Estimate, despite a subsequent 2.3% decline in stock price following the earnings release on January 30 [1]. Valero's Refining Business - Valero operates 15 refineries across the United States, Canada, and the United Kingdom, with a combined throughput capacity of 3.2 million barrels per day [2]. Better-Than-Expected Q4 Results - The company reported adjusted earnings of 64 cents per share, exceeding the Zacks Consensus Estimate of 13 cents, although this was a decrease from 30.76 billion from 30.73 billion [4]. Operational Performance - Adjusted operating income in the Refining segment was 1.6 billion in the prior-year quarter, primarily due to significantly lower refining margins [5]. - Valero processed a record volume of heavy sour crude, showcasing the flexibility of its refining system despite lower margins [5]. Future Outlook - The company anticipates that refining margins will be supported by low light product inventories as the driving season approaches [6]. - Valero is also working on an FCC Unit Optimization project at St. Charles to enhance high-value product yields, including high-octane alkylate [6]. Throughput Volumes & Margins - In Q4, Valero's refining throughput volumes were 2,995 thousand barrels per day, consistent with the previous year's figure, and above the estimate of 2,688 MBbls/d [7]. - The refining margin per barrel of throughput decreased to 12.89 year-over-year, while the estimate was $10.8 [8]. Performance of Big Energy Players - Other major energy companies, including Exxon Mobil Corporation, Chevron Corporation, and SLB, have also reported fourth-quarter earnings, with ExxonMobil and SLB beating the Zacks Consensus Estimate, while Chevron missed [9].