Valero Acquires LyondellBasell Refinery on the Cheap
Valero agreed to acquire LyondellBasell’s 165 mbd Houston refinery for $325 million.
Valero agreed to acquire LyondellBasell’s 165 mbd Houston refinery for $325 million.
Valero enjoys a cost advantage thanks to its proximity to cost-advantaged light crude oil, ability to process discount heavy sour crude, and low operating cost from lower domestic natural gas prices.
Growing EV adoption will destroy gasoline demand and leave Valero's refineries uneconomic, given the high portion of gasoline production.
Metric | VLO | DINO | PSX |
|---|---|---|---|
Price/Earnings (Normalized) | 7.87 | 5.17 | 9.32 |
Price/Book Value | 3.45 | 1.43 | 2.79 |
Price/Sales | 0.67 | 0.50 | 0.59 |
Price/Cash Flow | 6.26 | 4.42 | 7.49 |
Metric | VLO | DINO | PSX |
|---|---|---|---|
Quick Ratio | 1.26 | 1.38 | 0.92 |
Current Ratio | 1.72 | 2.27 | 1.34 |
Interest Coverage | 31.76 | 26.44 | 14.15 |
Metric | VLO | DINO | PSX |
|---|---|---|---|
Return on Assets (Normalized) | 20.80% | 18.48% | 13.21% |
Return on Equity (Normalized) | 52.09% | 33.68% | 35.28% |
Return on Invested Capital (Normalized) | 34.21% | 25.99% | 21.69% |
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