Valero Energy Corporation (VLO) - NYSE
  • Mon, May 2, 7:29 AM
    • April monthly performance was: -0.31%
    • AUM of $131M
    • 52-week performance vs. the S&P 500 is: 0%
    • No dividends were paid in April
    • Top 10 Holdings as of 12/31/2015: Caltex Australia Ltd (OTC:CTXAF): 2.28%, Spark New Zealand Ltd (OTCPK:NZTCF): 2.03%, Macquarie Group Ltd (OTC:MCQEF): 2.02%, SSE PLC (OTCPK:SSEZF): 2.02%, Valero Energy Corp (VLO): 1.99%, S&P 500, Rightmove PLC (OTC:RTMVF): 1.96%, National Grid PLC (OTCPK:NGGTF): 1.95%, Vestas Wind Systems A/S (OTCPK:VWSYF): 1.94%, Severn Trent PLC (OTCQX:SVTRF): 1.93%
    | Mon, May 2, 7:29 AM
  • Thu, Apr. 28, 7:17 PM
    • Q1 earnings reports illustrate the end of U.S. refiners' years-long boom from cheap and plentiful crude, Reuters reports, as rising oil inventories and weak demand hurt profits and pushed revenues to their lowest in years.
    • PBF Energy (NYSE:PBF) and CVR Energy (NYSE:CVI) reported respective quarterly losses of $66.5M and $68M (I, II), while Marathon Petroleum (NYSE:MPC) eked out a $1M profit following earnings of nearly $900M a year ago, and reported their weakest revenue totals in at least four years.
    • Refiners "were incentivized to run at higher rates and put more barrels in inventory. That's the overhang we're seeing right now," CVR CEO Jack Lipinski said in today's earnings conference call.
    • PBF also coped with downtime at its Delaware plant because of a weather-related power outage in January.
    • Phillips 66 (NYSE:PSX) is scheduled to report Q1 results tomorrow, with Valero Energy (NYSE:VLO), Tesoro (NYSE:TSO) and others coming next week.
    • Now read The best of the best in the refining industry
    | Thu, Apr. 28, 7:17 PM | 16 Comments
  • Thu, Apr. 21, 6:55 PM
    • Global refining margins have improved significantly in recent weeks, which should support strong demand for crude and lend some strength to both spot prices and spreads in the short term, according to Reuters' John Kemp.
    • While diesel markets remain oversupplied and margins poor, gasoline consumption is booming and margins have improved sharply, improving economics for many refineries, Kemp writes.
    • No. 1 U.S. independent refiner Valero (NYSE:VLO) reports strong improvements in indicative margins for its refineries across North America, which could serve as a proxy for the health of the U.S. and Canadian refining sector.
    • BP’s Global Refining Marker Margin - an aggregate indicator for the refineries in its global portfolio across North America, Europe and Asia - has improved from a recent low of $10.50 in Q1 to $12.80 so far in Q2.
    • "Some commentators have suggested the rally in oil prices since early February is entirely due to the activity of hedge funds, but the simultaneous rise in global refining margins suggests it has a fundamental component too," Kemp writes.
    • ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM
    | Thu, Apr. 21, 6:55 PM | 57 Comments
  • Mon, Apr. 11, 12:57 PM
    • Apart from the end of seasonal trade, the biggest reason to sell refiner holdings this summer is the increasing likelihood of recession in 2017 and more so in 2018, Credit Suisse says, also expressing concern about deterioration of diesel margins.
    • Credit Suisse expects tight butane blending spreads and stock specific maintenance will have a negative impact on the already weak performance of U.S. independent refiners in 2016.
    • The firm downgrades "sector bellwether" Valero Energy (VLO -2.5%), Alon USA Partners (ALDW -1.3%), Northern Tier Energy (NTI -0.8%) to Neutral from Outperform and Calumet Specialty Products Partners (CLMT -2.9%) to Underperform from Outperform.
    • Now read The best of the best in the refining industry
    | Mon, Apr. 11, 12:57 PM | 9 Comments
  • Mon, Apr. 4, 7:32 AM
    • March monthly performance was: +8.14%
    • AUM of $123M
    • 52-week performance vs. the S&P 500 is: -12%
    • $0.11 in dividends were paid in March
    • Top 10 Holdings as of 12/31/2015: Caltex Australia Ltd (OTC:CTXAF): 2.29%, Spark New Zealand Ltd (OTCPK:NZTCF): 2.04%, Macquarie Group Ltd (OTC:MCQEF): 2.03%, SSE PLC (OTCPK:SSEZF): 2.02%, Valero Energy Corp (VLO): 1.99%, S&P 500, Rightmove PLC (OTC:RTMVF): 1.96%, National Grid PLC (OTCPK:NGGTF): 1.96%, Vestas Wind Systems A/S (OTCPK:VWSYF): 1.94%, Severn Trent PLC (OTCQX:SVTRF): 1.93%
    | Mon, Apr. 4, 7:32 AM
  • Mon, Mar. 28, 4:52 PM
    • Valero Energy Partners (NYSE:VLP) agrees to acquire the McKee Terminal Services business from Valero Energy (NYSE:VLO) for $240M.
    • The terminal business that supports VLO’s McKee refinery consists of 75 tanks with 4.4M barrels of storage capacity for crude oil, intermediates and refined petroleum products; the business is expected to contribute ~$28M of EBITDA in its first year of operation.
    • Upon closing, VLP plans to enter into a 10-year terminaling agreement with a VLO subsidiary.
    | Mon, Mar. 28, 4:52 PM | 4 Comments
  • Wed, Mar. 23, 12:34 PM
    • HollyFrontier (HFC -6.5%) is downgraded to Sell from Neutral with a $34 price target, down from $37, at Goldman Sachs, citing crude spreads, valuation and consensus earnings risk.
    • Goldman expects HFC's capital return to decelerate from 2013-15 cumulative levels of $2.7B to 2016-18 levels of $1.8B, well below the $3.9B scenario the company showed at its 2015 analyst day; the firm also cuts its 2016 EPS estimate to $2.44 from $2.64 and below Wall Street consensus of $3.14.
    • The firm sees more upside to its Buy-rated names Valero Energy (VLO -0.7%), Marathon Petroleum (MPC -2.3%) and PBF Energy (PBF -3.3%).
    | Wed, Mar. 23, 12:34 PM | 16 Comments
  • Tue, Mar. 15, 7:47 PM
    • Valero Energy (NYSE:VLO), PBF Energy (NYSE:PBF) and Delek US Holdings (NYSE:DK) are the three oil refiners with the most upside, Wells Fargo analysts say, liking the setup for the group headed into the important summer gasoline season, particularly Gulf coast refiners with meaningful exposure to light/heavy differentials.
    • Among its five total Outperform-rated refiners, Wells finds Alon USA Energy (NYSE:ALJ) and Western Refining (NYSE:WNR) with the least upside potential.
    • The firm says Marathon Petroleum (NYSE:MPC) typically would fit well within its outlook but uncertainty around the performance of its MLP and higher diesel yields restrains optimism.
    • After spending much of Q1 at record high levels, Wells says U.S. gasoline inventories are now following a typical seasonal pattern of declines; inventories remain elevated in the mid-continent, west coast inventories are near historical averages for this time of year but at risk with the expected restart of the Torrance unit, and Gulf coast gasoline inventories are effectively flat Y/Y, which Wells calls "a positive sign."
    | Tue, Mar. 15, 7:47 PM | 8 Comments
  • Fri, Mar. 11, 11:19 PM
    • Energy Transfer Equity (NYSE:ETE) has held talks to sell gas station and convenience store operator Sunoco (NYSE:SUN), in a deal that could fetch more than $2B, Reuters reports.
    • A 36.4% stake in the limited partnership in SUN owned by Energy Transfer Partners (NYSE:ETP) also would have been divested, according to the report.
    • While the discussions were preliminary, they show ETE's efforts to improve its balance sheet after the plunge in oil prices made its pending acquisition of Williams Cos. (NYSE:WMB) more financially burdensome than it had expected.
    • The talks about a sale reportedly did not advance further because of disagreements over SUN's valuation, but ETE could still revisit the issue if it receives new interest.
    • Mentioned in the report as potential buyers of SUN's network of 900 convenience stores and fuel outlets are Valero Energy (NYSE:VLO), Tesoro (NYSE:TSO) and Alimentation Couche-Tard (OTCPK:ANCUF).
    | Fri, Mar. 11, 11:19 PM | 40 Comments
  • Thu, Mar. 3, 3:23 PM
    • The stocks of most U.S. refiners are trading significantly below their mid-cycle valuations, while the companies likely are heading into another strong U.S. gasoline season, BoA Merrill Lynch analyst Doug Leggate says as he upgrades several stocks in the group.
    • Leggate says he continues to view refiners as a volatile sector where momentum follows margin trends, but that the balance of risk has moved in favor of a short-term rebound.
    • Marathon Petroleum (MPC +7.4%) is upgraded to Buy from Neutral with a $50 price target, believing the MLP overhang on the shares is overdone and noting that MPC indicated it would do what needs to be done to support MPLX because it is optimistic about the long-term growth opportunities of the business.
    • Tesoro (TSO +4%) also is upgraded to Buy from Neutral with a $116 target, anticipating that once winter margin weakness subsides, TSO likely follows summer margin strength higher as the most exposed refiner to seasonal west coast trends.
    • Leggate also raises Valero Energy (VLO +2.6%) and PBF Energy (PBF +6.4%) to Neutral from Underperform with respective price targets of $78 and $34.
    | Thu, Mar. 3, 3:23 PM | 6 Comments
  • Thu, Mar. 3, 12:23 PM
    • There are better ways to play the ongoing oil apocalypse other than Exxon Mobil (XOM -1.2%), Deutsche Bank analyst Ryan Todd, pointing to a slow recovery in free cash flow, limited relative leverage to a recovery at this point in the cycle, and trading at a 60% premium to peers.
    • One of the questions facing XOM remains the sustainability and attractiveness of its business model in a low-to-moderate crude price environment - i.e., can the combination of cost reductions and capital reallocation support sustainable reserve replacement, dividend/free cash flow growth and improving returns: "If the budget outlook is any indication, we're not there yet," Todd says.
    • The analyst prefers Pioneer Natural Resources (PXD -1.4%), Valero Energy (VLO +2.3%), Marathon Petroleum (MPC +5.2%) and HollyFrontier (HFC +4.5%); he rates XOM as a Hold with an $85 price target.
    • Earlier: Exxon Mobil plans 25% capex cut to $23B (Mar. 2)
    | Thu, Mar. 3, 12:23 PM | 14 Comments
  • Wed, Mar. 2, 10:08 AM
    • February monthly performance was: +0.25%
    • AUM of $125M
    • 52-week performance vs. the S&P 500 is: -3%
    • No dividends were paid in February
    • Top 10 Holdings as of 12/31/2015: Caltex Australia Ltd (OTC:CTXAF): 2.29%, Spark New Zealand Ltd (OTCPK:NZTCF): 2.04%, Macquarie Group Ltd (OTC:MCQEF): 2.03%, SSE PLC (OTCPK:SSEZF): 2.02%, Valero Energy Corp (VLO): 1.99%, S&P 500, Rightmove PLC (OTC:RTMVF): 1.96%, National Grid PLC (OTCPK:NGGTF): 1.96%, Vestas Wind Systems A/S (OTCPK:VWSYF): 1.94%, Severn Trent PLC (OTCQX:SVTRF): 1.93%
    | Wed, Mar. 2, 10:08 AM
  • Sat, Feb. 13, 12:07 AM
    • Valero Energy's (NYSE:VLO) proposed crude-by-rail project at its 145K bbl/day Benicia refinery in northern California was rejected by local planners this week, the first such facility on the U.S. west coast to end a years-long wait for permits with a rejection.
    • The Benicia Planning Commission late Thursday unanimously rejected VLO's request to build the rail facility following of four consecutive public hearings dominated by opponents, Reuters reports.
    • VLO could still ask Benicia's city council to override the planning commission and approve a permit for the project.
    • Several other west coast rail projects await decisions by local or state governments, including Tesoro's (NYSE:TSO) proposed 360K bbl/day railport in Washington state and Phillips 66's (NYSE:PSX) 25K bbl/day facility at its Santa Maria refinery in Arroyo Grande, Calif.
    | Sat, Feb. 13, 12:07 AM | 51 Comments
  • Fri, Feb. 12, 12:58 PM
    • Valero Energy (VLO +3.2%) files lawsuits against the EPA over the agency's latest Renewable Fuel Standard plans, in an effort to alter the policy designed to boost use of renewables in transportation fuels.
    • In November, the EPA set 2014-16 targets for biofuel use below a plan laid out by Congress, the first time the regulator used a "general waiver authority" to lower the volumes, acknowledging the blend wall that oil companies say is the saturation point for use of ethanol in gasoline without a major overhaul at fuel pumps and in vehicles.
    • "If EPA is going to use an extraordinary action like a waiver, then at least EPA must remove any structural impediments that prevent penetration of renewable fuels," according to VLO's counsel.
    • VLO is the U.S.'s no. 1 refiner and no. 3 ethanol producer, and has long sought to move the responsibility of complying with the program further downstream.
    | Fri, Feb. 12, 12:58 PM | 7 Comments
  • Thu, Feb. 11, 12:58 PM
    • U.S. refiners' windfall from cheap and plentiful crude shows further signs of running out of steam as a second refinery, Delta Airlines' (DAL -0.5%) Monroe Energy, prepares to cut output and another dumped unwanted crude, Reuters reports.
    • Monroe Energy will cut output by 10% at its 185K bbl/day refinery near Philadelphia, and Valero Energy (VLO -0.1%) plans a 25% cut to gasoline output at its 180K bbl/day Tennessee refinery, according to the report.
    • While the cuts are only a tiny fraction of the 18M bbl/day U.S. refining capacity, they represent a shift from a few months ago when refiners were running at full tilt to take advantage of high margins and surging demand.
    • U.S. gasoline crack spreads surged nearly 30% yesterday for their best day in more than a year on the news, but few analysts expect the gains will last, as more refiners may choose to cut output rather than flood the market with products already at historic levels.
    • One such company could be Phillips 66 (PSX -1.9%), which reportedly offloaded crude for immediate delivery in Cushing, Okla., at distressed prices yesterday.
    | Thu, Feb. 11, 12:58 PM | 29 Comments
  • Wed, Feb. 10, 9:17 AM
    • Hess (NYSE:HES) +1.6% premarket after Goldman Sachs adds the stock to its Conviction Buy List with a $59 price target, upgrading it from a Neutral rating as it cites the company's liquidity, significant resource expansion opportunities, and strong position to benefit if oil prices rebound.
    • "HES offers one of the most significant potential resource expansion opportunities among E&Ps over the next year from multiple exploration and appraisal drilling in Guyana and the Gulf of Mexico," Goldman says.
    • Goldman removes Valero Energy (NYSE:VLO) from its Conviction Buy List but maintains its Buy rating.
    | Wed, Feb. 10, 9:17 AM | 4 Comments
Company Description
Valero Energy Corp. engages in the manufacture and market of transportation fuels, petrochemical products and power. It operates through the Refining and Ethanol segments. The Refining segment includes refining operations, wholesale marketing, product supply and distribution, and transportation... More
Industry: Oil & Gas Refining & Marketing
Country: United States