Company Reports

Valero remains well positioned for almost any market environment thanks to its high-quality refining assets and their location, which affords it greater feedstock flexibility. Historically, Valero has held an advantage because its system of 15 refineries is more complex than that of its competitors, allowing it to process lower-quality feedstock into high-value products. With the emergence of domestic light-crude discounts, it pivoted to processing more high-quality, discounted domestic crude by substituting domestic for imported crude, building additional light-crude processing capacity, and investing in transportation infrastructure.

Adjusted earnings soared to $3.7 billion from $714 million the year before, easily topping expectations, with global supply disruptions driving very strong refining results. Valero returned 59% of adjusted operating cash flow to shareholders as net debt/capital fell to 11%.

Valero remains well positioned for almost any market environment thanks to its high-quality refining assets and their location, which affords it greater feedstock flexibility. Historically, Valero has held an advantage due to its system of 15 refineries that are more complex than those of its competitors, allowing it to process lower-quality feedstock into a high-value product. With the emergence of domestic light crude discounts, it pivoted to processing greater amounts of high-quality, discounted domestic crude by substituting domestic for imported crude, constructing additional light-crude processing capacity, and investing in transportation infrastructure.

Adjusted earnings rose to $1.3 billion from $282 million the year before, topping expectations and delivering strong results across refining, ethanol, and renewable diesel. Valero returned 59% of adjusted operating cash flow to shareholders as net debt to capital held at 18%.

Valero remains well positioned for almost any market environment thanks to its high-quality refining assets and their location, which affords it greater feedstock flexibility. Historically, Valero has held an advantage due to its system of 15 refineries that are more complex than those of its competitors, allowing it to process lower-quality feedstock into a high-value product. With the emergence of domestic light crude discounts, it pivoted to processing greater amounts of high-quality discounted domestic crude by substituting domestic for imported crude, constructing additional light crude processing capacity, and investing in transportation infrastructure.

Adjusted earnings rose to $1.2 billion from $207 million the year before, easily surpassing expectations and driven by strong refining and improved results for ethanol. Valero returned 66% of adjusted operating cash flow to shareholders and increased the dividend 6%.

On the morning of Jan. 3, 2026, US forces deposed Venezuelan leader Nicolas Maduro. US President Donald Trump indicated the US will run Venezuela until there can be a "proper transition" and has highlighted his desire to substantially increase US private investment in Venezuela's oil infrastructure.

Valero remains well positioned for almost any market environment thanks to its high-quality refining assets and their location, which affords it greater feedstock flexibility. Historically, Valero has held an advantage due to its system of 15 refineries that are more complex than those of its competitors, allowing it to process lower-quality feedstock into a high-value product. With the emergence of domestic light crude discounts, it pivoted to processing greater amounts of high-quality discounted domestic crude by substituting domestic for imported crude, constructing additional light crude processing capacity, and investing in transportation infrastructure.

Adjusted earnings rose to $1.1 billion from $371 million the year before, exceeding expectations and lifting shares by 7%, driven by strong refining and improved results for ethanol and renewable diesel. Valero returned 78% of adjusted operating cash flow to shareholders.

Valero remains well positioned for almost any market environment thanks to its high-quality refining assets and their location, which affords it greater feedstock flexibility. Historically, Valero has held an advantage due to its system of 15 refineries that are more complex than those of its competitors, allowing it to process lower-quality feedstock into a high-value product. With the emergence of domestic light crude discounts, it pivoted to processing greater amounts of high-quality discounted domestic crude by substituting domestic for imported crude, constructing additional light crude processing capacity, and investing in transportation infrastructure.

Valero adjusted earnings fell to $282 million from $1.3 billion the prior year, surpassing market expectations on lower refining margins and greater maintenance activity. Adjusted earnings exclude an impairment charge related to the 2026 cessation of operations at its Benicia, California, refinery.

Adjusted earnings fell to $282 million from $1.3 billion the year before, surpassing market expectations on lower refining margins and greater maintenance activity. Adjusted earnings exclude an impairment charge related to the cessation of operations in 2026 at Valero's Benicia, California refinery.

Valero remains well positioned for almost any market environment thanks to its high-quality refining assets and their location, which affords it greater feedstock flexibility. Historically, Valero has held an advantage thanks to its system of 15 refineries that are more complex than competitors', allowing it to process lower-quality feedstock into a high-value product. With the emergence of domestic light crude discounts, it pivoted to processing greater amounts of high-quality discounted domestic crude by substituting domestic for imported crude, constructing additional light crude processing capacity and investing in transportation infrastructure.

Valero Energy's fourth-quarter earnings exceeded market expectations. Adjusted earnings fell to $207 million from $1.2 billion the year before as refining margins weakened during the quarter, falling below midcycle-like levels.

Valero remains well positioned for almost any market environment thanks to its high-quality refining assets and their location, which affords it greater feedstock flexibility. Historically, Valero has held an advantage thanks to its system of 15 refineries that is more complex than competitors', allowing it to process lower-quality feedstock into a high-value product. With the emergence of domestic light crude discounts it pivoted to processing greater amounts of high-quality discounted domestic crude by substituting domestic for imported crude, constructing additional light crude processing capacity and investing in transportation infrastructure.

Valero Energy's third-quarter earnings exceeded market expectations. Adjusted earnings fell to $364 million from $2.6 billion the year before as refining margins weakened during the quarter, falling to midcycle-like levels.

Valero Energy reported second-quarter 2024 earnings that exceeded market expectations. Adjusted earnings fell to $880 million during the second quarter from $1.9 billion the year before as the refining market continued to ease toward more midcycle-like conditions from record levels in 2022. However, Valero continued its streak of payouts well above its 40%-50% annual target with $1.4 billion in dividends and repurchases, for a payout ratio of 87%. The high level is in part a result of a large working capital release not included in the calculation, but also management previously noted in times of strong market conditions, payouts will exceed its guided level, which acts more as a floor.

Valero remains well positioned for almost any market environment thanks to its high-quality refining assets and their location, which affords it greater feedstock flexibility. Historically, Valero has held an advantage thanks to its system of 15 refineries that is more complex than competitors', allowing it to process lower-quality feedstock into a high-value product. With the emergence of domestic light crude discounts it pivoted to processing greater amounts of high-quality discounted domestic crude by substituting domestic for imported crude, constructing additional light crude processing capacity and investing in transportation infrastructure.

Valero Energy reported first-quarter 2023 earnings that once again surpassed market expectations, largely on stronger-than-expected refining results, as the company continues to enjoy a favorable refining margin environment. Adjusted earnings fell sharply to $1.3 billion during the fourth quarter from $3.1 billion the year before. During the quarter, Valero paid $1.4 billion in dividends and repurchases, for a payout ratio of 74%, well above its 40%-50% annual target. However, management noted in times of strong market conditions, payouts will exceed that level, and it will act more as a floor. Given the current market outlook, investors should expect those higher payout levels to continue in the near term. We plan to update our model with the latest market conditions and second-quarter 2024 guidance but do not expect a material revision to our fair value estimate or a change to our narrow moat rating.

Valero remains well positioned for almost any market environment thanks to its high-quality refining assets and their location, which affords it greater feedstock flexibility. Historically, Valero has held an advantage thanks to its system of 15 refineries that is more complex than competitors', allowing it to process lower-quality feedstock into a high-value product. With the emergence of domestic light crude discounts it pivoted to processing greater amounts of high-quality discounted domestic crude by substituting domestic for imported crude, constructing additional light crude processing capacity and investing in transportation infrastructure.