Valero Energy Corporation (VLO)

In the past six months, Valero Energy Corp. reported first-quarter 2025 earnings of $0.89 per share, beating estimates, and declared a regular cash dividend on its common stock. Analyst ratings saw downgrades from Citigroup, Wolfe Research and TD Cowen, but the consensus in mid-July 2025 was a "Strong Buy" with an average price target of $150.38. Valero recognized an asset impairment loss of $1.1 billion in the first quarter of 2025, primarily related to operations in California. VLO stock was up 17.5% year-to-date as of July 18, 2025, following its first-quarter earnings report, but had decreased by 2.10% between July 18, 2024, and July 17, 2025. The SAF project at the DGD Port Arthur plant started operation in Q4 2024 and is now at full utilization, and Valero is progressing with an FCC Unit optimization project at the St. Charles Refinery.

Demand for Valero Energy Corp.'s products exhibits seasonality, particularly for gasoline, which tends to increase during the spring and summer driving seasons. Distillates like diesel and jet fuel are considered year-round fuels, with jet fuel demand improving and approaching pre-pandemic levels. Ethanol demand is projected to follow typical seasonal patterns, while demand for renewable diesel is expected to remain consistent. Valero's profitability is influenced by crack spreads, and its ability to shift light product yields allows for higher margin capture and helps navigate market conditions.

Valero Energy Corporation is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, operating primarily in the Energy sector, specifically within the Oil and Gas Refining & Marketing industry. It is recognized as one of the largest independent petroleum refiners globally, producing a wide range of transportation fuels, petrochemicals, lubricants, and renewable fuels, managed through its Refining, Renewable Diesel, and Ethanol segments.

Valero Energy Corp. operates primarily in the United States, Canada, the United Kingdom, and Ireland, owning and operating 15 petroleum refineries with a combined throughput capacity of approximately 3.2 million barrels per day. It also operates 12 ethanol plants mainly in the U.S. Midwest, with a combined production capacity of 1.6 billion gallons annually, and two renewable diesel plants in the U.S. Gulf Coast region through its joint venture Diamond Green Diesel (DGD), producing approximately 1.2 billion gallons per year of renewable diesel. The company markets its refined products wholesale through bulk and rack marketing networks and branded outlets operated by partners, with distribution networks across approximately 40 states in the U.S. and into eastern Canada.

Valero Energy Corporation has a reputation for operational excellence and cost leadership within the refining sector, emphasizing its commitment to safety, environmental stewardship, and community development. The company prides itself on being a good employer, fostering a culture of diversity and inclusion, and maintaining a "GOOD" overall financial health score, having consistently maintained dividend payments for 37 consecutive years. No specific negative events significantly impacting Valero's brand reputation in the past year were found in the provided search results.

Valero Energy Corporation is primarily owned by institutional investors, holding approximately 83.88% of the company's stock as of July 2025. The largest institutional owners include Vanguard Group Inc., BlackRock, Inc., and State Street Corp. Individual insider ownership is less than 1% of the company, while the general public holds about 14.13% to 20% ownership.