Valero Energy Corp

Founded in 1980, Valero Energy is the largest global independent petroleum refiner and one of the leading renewable fuels producers in North America.

Hurricane Katrina decimated New Orleans in 2005. What stocks soared following the natural disaster? How did certain economic factors impact the stocks?

HollyFrontier (HFC) stock has risen 5.5% since January 2. The stock has risen less than its peers Marathon Petroleum (MPC) and Valero (VLO).

After HollyFrontier’s earnings, RBC lowered its target price on the stock from $68 to $66.

HollyFrontier’s refining segment is critical for its overall earnings. The refining segment’s adjusted EBITDA rose 127% to $1.7 billion in 2018.

Valero Energy (VLO) is the second-highest dividend-yielding stock among the seven refining stocks we’re looking at in this series.

Phillips 66 (PSX) posted its earnings on July 29, 2016. On the day, PSX’s implied volatility fell by 5% to 23.2 compared to the previous day.

Now, let’s look at the forward valuations of Marathon Petroleum (MPC), Tesoro (TSO), Valero Energy (VLO), and Phillips 66 (PSX).

The institutional holdings in Valero Energy (VLO) are higher than the institutional holdings in Marathon Petroleum (MPC), Phillips 66 (PSX), and Western Refining (WNR).

Marathon Petroluem’s net debt-to-EBITDA ratio stood at 1.9x in 4Q16. It’s lower than the average industry ratio of 2.8x.

The Keystone XL Pipeline project is a proposed 1,179-mile pipeline. It begins in Alberta, Canada and extends south to join the existing Keystone Pipeline in Steele City, Nebraska.

Marathon Petroleum (MPC) has been rated by 19 Wall Street analysts. Seventeen analysts (or 89%) have rated it as a “buy” so far in May 2017.

Average valuation multiples Earlier, we discussed refining stocks’ performance in 1Q17 and compared their dividend yields. In this part, we’ll look at Marathon Petroleum’s (MPC), Tesoro’s (TSO), Valero Energy’s (VLO), and Phillips 66’s (PSX) forward valuation. The average forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiples and average forward PE […]

Refining stocks’ valuation In this part, we’ll compare refining stocks’ EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) ratios with their three-year averages. Marathon Petroleum (MPC), Valero Energy (VLO), Phillips 66 (PSX), and Tesoro (TSO) are trading higher than their historical valuation. MPC was trading at a 10.3x EV-to-EBITDA ratio in 1Q17, compared […]

Since February 2017, downstream stocks have been hit by volatile crack conditions and changing inventory levels. VLO has also witnessed volatility in its stock price.

Carl Icahn mentions the use of credit default swaps as a form of protection against credit events. He implies that investors should possess sophisticated knowledge of the fixed income markets to enter that playing field.

In this article, we’ll look at refining stocks’ EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) ratios compared to their three-year historical averages.

In 2013, Phillips 66 generated 67%, 13%, and 6% of its revenues from the United States, the United Kingdom, and Germany, respectively. The company’s other foreign operations contributed ~16%.

PSX is trading at 9x its forward EV-to-EBITDA ratio and at 16.4x its forward PE ratio, which is above the peer averages.

Phillips 66 (PSX) is an energy company. It’s based in Texas. Phillips 66 started operating independently as a publicly-traded company on April 4, 2012, when it separated from ConocoPhillips (or COP).

A crack spread represents the price difference between refiners’ revenues—achieved through the sale of finished refined products—and refiner costs—that is, the price of crude oil.

US distillate inventories fell by 3.8 MMbbls or 2.7% to 139.2 MMbbls on January 5–12, 2018. The inventories fell by 29.9 MMbbls or 18% from a year ago.

This series will provide you a complete overview of the refining industry as well as a quick snapshot of downstream sector stocks in the US.

Refining stocks’ performance was mixed in the fourth quarter. While Marathon Petroleum and HollyFrontier fell, Valero Energy and Phillips 66 rose.

Valero Energy (VLO) stock has risen 11.6% sequentially. The stock has risen due to stronger refining conditions in the current quarter.

The refining industry, including cracks and oil spreads, is going through a massive change in the current quarter. The change resulted in sharp changes in refining stocks’ prices. Notably, the industry seems to be ready for IMO 2020. While Valero Energy (VLO) and Phillips 66 (PSX) stocks have risen by 11.6% and 13.6% sequentially, Marathon […]

Marathon Petroleum’s (MPC) stock price has fallen 6.0% so far in Q4, likely influenced by the uncertainty regarding the company’s strategic path.

The crack spread is a major component that drives refiners’ valuation. In this article, we’ll look at the metric’s different aspects.

The Dow Jones Index needs a Santa Claus rally this year. Instead, the Dow Jones might have to contend with the “Tariff Man.”

Oil refining and marketing stocks have been on investors’ radar. Valero Energy (VLO) and Phillips 66 (PSX) have risen 29.0% and 29.7%, respectively, YTD.

Institutional ownership of Marathon Petroleum (MPC) stock changed quite a bit in Q3, which was eventful for MPC due to Elliot Management’s recommendations.

In the third quarter, Elliott Management raised its stake in Marathon Petroleum by about 86%. Elliott has criticized MPC’s management on several occasions.

The total refiners capacity in the US is around 18.8 million barrels per calendar day. The refinery utilization rate in 2018 was 93%.

US crude oil production has more than doubled since 2009 and grew by 1.1% over the last year. Currently, there are 133 operable refineries in the US.

Valero (VLO) and Marathon Petroleum’s (MPC) stocks have fallen 2.9% and 0.7%, respectively, so far in Q3. Here, we review which refiner is a better buy.

Valero Energy (VLO) stock rose about 1.56% yesterday. We think this is because the company is restarting its crude processing units.

MPC stock performed in line with the equity market and its peers on Thursday. The SPDR S&P 500 ETF (SPY), which represents the S&P 500 Index, fell 0.9%.

In the second quarter, Valero Energy’s refining earnings fell 28% YoY to $1.0 billion due to its weaker refining margin partly offset by higher throughput.

Analysts expect Delek’s EPS to fall by 38% YoY and 45% quarter-over-quarter to $0.84 in the second quarter of 2019.

Valero Energy’s (VLO) net debt-to-EBITDA ratio was 1.2x in the first quarter of 2019, lower than the peer average of 1.6x.

Phillips 66’s dividend payments have risen in the past few years. In the first quarter, the company will pay a dividend of $0.8 per share on March 1.

HollyFrontier’s (HFC) forward PE ratio is 10.4x, below peers’ average of 11.2x. Marathon Petroleum’s (MPC), Andeavor’s (ANDV), and Phillips 66’s (PSX) forward PE ratios are higher than the average, at 12.8x, 13.8x, and 12.1x, respectively.

On September 10, 2018, Brent crude oil November futures settled ~$9.83 higher than WTI crude oil October futures, the highest level for the Brent-WTI spread since June 19, 2018.

The implied volatility in Marathon Petroleum has fallen by eight percentage points since July 2 to the current level of 23%.

In 1Q18, VLO’s 50-day moving average remained above its 200-day moving average.

Valero Energy’s operating revenue fell 14% in 2016 before rising 23% in 9M17. Refining revenues drove the decline in 2016, offset by ethanol revenues.

What is institutional ownership? In this part, we’ll look at changes in institutional ownership in Valero Energy (VLO). Institutional ownership is a measure of how many shares of a company are owned by institutions such as banks and mutual funds. Institutional ownership suggests these institutions’ confidence level in a stock. Usually, everything else being equal, higher […]

Analysts’ ratings for Valero Previously, we looked at analysts’ expectations for Valero Energy’s (VLO) dividend payment next quarter. In this part, we’ll look at analysts’ ratings for Valero. As shown in the chart above, nine (or 43%) of the 21 analysts covering VLO have rated it a “buy.” The remaining 12 analysts have rated Valero a “hold,” and […]

In 1H17, Phillips 66 saw its cash from operations fall 7% YoY to ~$1.3 billion. This was due to negative cash flow in 1Q17, led by seasonal inventory build-up.

Refining margins in 2Q17 In this part, we’ll compare leading US downstream companies’ GRMs (gross refining margins). Marathon Petroleum (MPC) had the widest GRM in 2Q17, followed by Andeavor (ANDV), Phillips 66 (PSX), and Valero Energy (VLO). The companies saw mixed GRM trends in 2Q17—let’s look at them more closely. Marathon Petroleum’s refining margin MPC’s gross […]