Valero Rose 4% on Its Q1 Earnings Release Day



Valero Energy’s stock performance

Valero Energy (VLO) announced its first-quarter results on April 25 before the market opened. Valero Energy stock opened at $87.8 per share, which was above the previous day’s close of $87.7. Valero Energy’s first-quarter earnings beat analysts’ estimate. The stock saw highs of $92.7 and lows of $87.7 during the day. Eventually, Valero Energy stock closed at $90.8, which was ~3.5% higher than the previous day’s close. Valero Energy was in line with its peers’ performance on April 25.

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HollyFrontier (HFC) and Phillips 66 (PSX) rose 3.1% and 1.0%, respectively, on April 25. Marathon Petroleum (MPC) and Delek US Holdings (DK) rose 1.9% and 1.7%, respectively, on the same day. On April 25, the SPDR S&P 500 ETF (SPY), which represents the S&P 500 Index, fell 0.1%. WTI fell 1.0% on April 25.

First-quarter update

Valero Energy continued its growth drive in the first quarter. The company’s capex for the first quarter was $726 million. Valero Energy completed the acquisition of its midstream MLP, Valero Energy Partners, and simplified its structure. The company expects to continue investing in midstream assets to achieve higher feedstock and product flexibility.

Valero Energy’s other projects are progressing according to the schedule. The projects include the Houston alkylation project, St. Charles alkylation units, Central Texas pipeline sand terminals, Pasadena terminal, and Pembroke co-generation units. The projects are expected to be completed between 2019 and 2020. The Port Arthur Coker and Diamond Green Diesel expansion projects are scheduled to be complete by 2022 and late 2021, respectively.

Valero Energy plans to invest $2.5 billion in capex in the next few years—around $1 billion will be for growth projects.


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