Valero Energy Corporation


SKU: VLO Category:


Valero Energy had a mixed performance in its recent financial results for the quarter as its revenues were significantly above Wall Street expectations. The company’s reliable operational performance as well as continued strength in the refining fundamentals helped the top-line growth. Unfortuately, Valero did miss out on meeting earnings expections. The company has a good refining margin supported by continued energy cost advantages, low product inventories, and strong product demand for the U.S. refineries in comparison to the global competitors. Product demand across all the systems of the company remain strong, with diesel and gasoline higher than the pre-pandemic levels. As Valero continued to maximize the refining throughput, the refining system of the company benefitted from the broader sour crude oil differentials. The Port Arthur Coker project of the company is expected to increase the throughput capacity of the refinery as well as improve the turnaround efficiency. In its renewable diesel segment, it continues to optimize its operations that set sales volume records in this quarter. The refining fundamentals stay strong, with global product supply staying constrained because of the high natural gas prices and capital reductions. We provide the stock of Valero Energy with a ‘Hold’ rating and a revision in the target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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