Valero Energy Delivers Solid Q3: Ethanol, Renewable Diesel Volumes Rise
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 24 2024
0mins
Should l Buy VLO?
Source: Benzinga
Valero Energy Financial Performance: Valero Energy Corporation reported third-quarter FY24 revenues of $32.876 billion, surpassing expectations, but experienced a decline in operating income across its refining and renewable diesel segments compared to the previous year.
Shareholder Returns and Future Projects: The company returned $907 million to shareholders through dividends and share repurchases, while also completing the DGD SAF project on schedule and under budget, indicating strong operational capabilities.
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Analyst Views on VLO
Wall Street analysts forecast VLO stock price to fall
17 Analyst Rating
11 Buy
6 Hold
0 Sell
Moderate Buy
Current: 196.910
Low
149.00
Averages
186.56
High
223.00
Current: 196.910
Low
149.00
Averages
186.56
High
223.00
About VLO
Valero Energy Corporation, through its subsidiaries, is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products. The Company sells its products primarily in the United States, Canada, the United Kingdom, Ireland and Latin America. Its segments include Refining, Renewable Diesel, and Ethanol. The Refining segment includes the operations of its petroleum refineries, the associated activities to market its refined petroleum products, and the logistics assets that support its refining operations. The Renewable Diesel segment represents the operations of Diamond Green Diesel (DGD), and the associated activities to market renewable diesel, renewable naphtha, and neat SAF. The Ethanol segment includes the operations of its ethanol plants and the associated activities to market its ethanol and co-products. It owns 15 petroleum refineries located in the United States, Canada and the United Kingdom.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Oil Refiners Experience a Golden Era
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- Strong Market Demand: Global liquid fuel consumption is projected to rise by 1.2 million barrels per day in 2026, driven by increased manufacturing, trucking, and air travel, which will further enhance refiners' market positions.
- Declining Crude Prices: The EIA forecasts that Brent crude will average $58 per barrel in 2026, down from $69 in 2025, providing refiners with lower input costs and potentially higher margins.
- Optimistic Investment Outlook: Given the current market dynamics, refining stocks have shown impressive performance with a year-to-date return of 25% in 2026, making a modest investment a potentially lucrative opportunity for investors.
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- Refining Margins Surge: In 2026, refiners like Marathon Petroleum reported a margin of $18.65 per barrel, a 50% increase year-over-year, indicating strong profitability in the refining sector amidst falling crude prices, which is likely to attract more investor interest.
- Demand Growth vs. Capacity Constraints: Despite forecasts of declining crude prices, the EIA projects a 1.2 million barrels per day increase in liquid fuel consumption in 2026, driving demand for gasoline, diesel, and jet fuel beyond refining capacity, thereby enhancing profit margins for refiners.
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- Sustained Demand Growth: Global liquid fuel consumption is projected to increase by 1.2 million barrels per day in 2026 and another 1.3 million barrels per day in 2027, primarily driven by manufacturing, trucking, and air travel, further solidifying the refining sector's market position.
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- Positive Future Outlook: Despite risks from potential Middle East conflicts or economic recessions, crude prices are expected to continue falling, with the EIA forecasting an average Brent crude price of $58 per barrel in 2026, which bodes well for refiners and their shareholders.
See More
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- Refining Capacity Expansion: Following an expansion at its Port Arthur refinery, Valero's total refining capacity for Venezuelan crude has reached approximately 240,000 barrels per day, positioning the company to enhance its competitiveness in the heavy oil market.
See More
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Market Impact: This move indicates a potential shift in the oil market dynamics, particularly concerning Venezuelan oil exports.
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Employment Details: The deceased was employed by UPS Industrial Services, as confirmed by UPS's statement.
See More
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- Refining Profits Surge: Oil refiners are experiencing significant profit increases due to falling crude costs and rising product demand, with Marathon Petroleum reporting a margin of $18.65 per barrel in Q4, a 50% increase year-over-year.
- Strong Market Demand: Global liquid fuel consumption is projected to rise by 1.2 million barrels per day in 2026, driven by increased manufacturing, trucking, and air travel, which will further enhance refiners' market positions.
- Declining Crude Prices: The EIA forecasts that Brent crude will average $58 per barrel in 2026, down from $69 in 2025, providing refiners with lower input costs and potentially higher margins.
- Optimistic Investment Outlook: Given the current market dynamics, refining stocks have shown impressive performance with a year-to-date return of 25% in 2026, making a modest investment a potentially lucrative opportunity for investors.
See More
Oil Refiners Soar in 2026: Investment Insights
- Refining Margins Surge: In 2026, refiners like Marathon Petroleum reported a margin of $18.65 per barrel, a 50% increase year-over-year, indicating strong profitability in the refining sector amidst falling crude prices, which is likely to attract more investor interest.
- Demand Growth vs. Capacity Constraints: Despite forecasts of declining crude prices, the EIA projects a 1.2 million barrels per day increase in liquid fuel consumption in 2026, driving demand for gasoline, diesel, and jet fuel beyond refining capacity, thereby enhancing profit margins for refiners.
- Strong Market Performance: As of February 11, 2026, stocks of Marathon Petroleum, Phillips 66, and Valero Energy have risen 28%, 25%, and 25% year-to-date, significantly outperforming the S&P 500's 1.6% increase, reflecting robust market confidence in the refining industry.
- Optimistic Future Outlook: While risks such as Middle Eastern conflicts or economic recessions exist, refining stocks are seen as having further upside potential, making a $1,000 investment at this time potentially lucrative, especially given the positive industry outlook.
See More
Oil Price Drop Fuels Refining Stocks Surge
- Optimistic Refining Outlook: The drop in crude oil prices has led to Marathon Petroleum achieving a fourth-quarter profit margin of $18.65 per barrel, approximately 50% higher than the previous year, indicating strong profitability and market demand for refiners.
- Sustained Demand Growth: Global liquid fuel consumption is projected to increase by 1.2 million barrels per day in 2026 and another 1.3 million barrels per day in 2027, primarily driven by manufacturing, trucking, and air travel, further solidifying the refining sector's market position.
- Significant Margin Increases: The 3-2-1 crack spread rose about 45% in the fourth quarter, indicating expanded profit margins for refiners, with Phillips 66's margin doubling to $12.48 per barrel and Valero's margin climbing 61%, reflecting a robust industry recovery.
- Positive Future Outlook: Despite risks from potential Middle East conflicts or economic recessions, crude prices are expected to continue falling, with the EIA forecasting an average Brent crude price of $58 per barrel in 2026, which bodes well for refiners and their shareholders.
See More
Valero Energy Poised to Acquire Venezuelan Crude
- Acquisition Plan: Valero Energy (VLO) is poised to purchase up to 6.5 million barrels of Venezuelan crude in March, potentially becoming the largest foreign refiner of Venezuelan oil since the U.S. captured President Maduro, significantly enhancing its market position.
- Production Increase: If Valero secures 10 or more cargoes, it could achieve a refining capacity of approximately 210,000 barrels per day, potentially surpassing Chevron (CVX) as the top U.S. refiner of Venezuelan crude, further solidifying its industry leadership.
- Chevron's Supply: Chevron is expected to increase its Venezuelan crude exports from 220,000 barrels per day in January to 300,000 barrels per day in March, with Valero set to receive most of this supply, ensuring sustained growth in its refining capacity.
- Refining Capacity Expansion: Following an expansion at its Port Arthur refinery, Valero's total refining capacity for Venezuelan crude has reached approximately 240,000 barrels per day, positioning the company to enhance its competitiveness in the heavy oil market.
See More
EXCLUSIVE: SOURCES REVEAL VALERO PLANS TO PURCHASE MAJORITY OF MARCH VENEZUELA CRUDE OIL CARGOES FROM CHEVRON
Valero's Acquisition: Valero is set to purchase a significant amount of Venezuelan crude oil cargoes from Chevron, according to sources.
Market Impact: This move indicates a potential shift in the oil market dynamics, particularly concerning Venezuelan oil exports.
See More
UPS Industrial Services Confirms Deceased Worker Injured at Valero's Ardmore Refinery Was Their Employee
Incident Overview: A worker died from injuries sustained at Valero's Ardmore Refinery.
Employment Details: The deceased was employed by UPS Industrial Services, as confirmed by UPS's statement.
See More
