Valero Energy: The top performer of 2017
In 2017, Valero Energy (VLO) turned out to be the best-performing energy stock of the Energy Select Sector SPDR ETF (XLE). Valero Energy is an oil and gas refining and marketing company. In 2017, it rose from its 2016 close of $68.32 to $91.91, a significant increase of 35%.
Valero Energy underperformed the VanEck Vectors Oil Refiners ETF (CRAK). In 2017, CRAK rose ~47%. It outperformed crude oil (USO), natural gas (UNG), and the SPDR S&P 500 ETF (SPY). In 2017, crude oil rose ~12%, whereas natural gas fell ~21%. In comparison, SPY rose ~19%, and the SPDR Dow Jones Industrial Average ETF (DIA) rose ~25%.
Valero Energy’s revenues and earnings
In the first nine months of 2017, Valero Energy reported revenues of ~$68 billion, which was ~24% higher than the first nine months of 2016 at ~$55 billion. In the first nine months of 2017, VLO reported net profits of ~$1.7 billion, which is lower than ~$1.9 billion in the same period in 2016. Lower profits in the first nine months of 2017 can be attributed to ~25% higher operating expenses of ~$65 billion compared to ~$52 billion in the first nine months of 2016.
Valero Energy will announce its 4Q17 and 2017 earnings on February 1, 2018, before the market opens.
Next, let’s compare Marathon Petroleum’s (MPC) 2017 returns with the broader market and energy commodities and analyze the fundamental metrics.