Valero Energy Corporation
- Open
- 307.27
- Day high
- 309.85
- Day low
- 302.52
- Prev close
- 300.26
- Volume
- 2.6M
- Mkt cap
- $91.9B
- P/E (TTM)
- 22.5
- EPS (TTM)
- $13.78
- P/B
- 3.9
- P/S
- 0.7
- Yield
- 0.78%
- Per share
- $2.40
- ▼Insiders net selling -$5.7M over the last 3 months (0 open-market buys, 3 sales)
- 🏛Institutions accumulating (13F)
Valero Energy Corporation (VLO) is a Energy company listed on NYSE. The stock is up 112% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 3 sales (SEC Form 4). Drillr has 21 published research articles covering VLO.
Valero Energy Corporation (VLO) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 9 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
VLO earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 30, 2026 | $3.16 | $4.22 | +33.5% | $32.4B | +3.2% |
| Jan 29, 2026 | $3.27 | $3.82 | +16.8% | $31.7B | +11.3% |
| Oct 23, 2025 | $3.05 | $3.66 | +20.0% | $32.2B | +7.4% |
| Jul 24, 2025 | $1.75 | $2.28 | +30.3% | $29.9B | +8.7% |
| Apr 24, 2025 | $0.41 | $0.89 | +116.9% | $30.3B | +5.2% |
| Jan 30, 2025 | $0.07 | $0.64 | +829.2% | $30.8B | +2.4% |
| Oct 24, 2024 | $0.98 | $1.14 | +16.3% | $32.9B | +5.8% |
| Jul 25, 2024 | $2.60 | $2.71 | +4.2% | $34.5B | +4.5% |
| Apr 25, 2024 | $3.24 | $3.82 | +17.9% | $31.7B | -1.5% |
| Jan 25, 2024 | $2.96 | $3.55 | +19.9% | $35.4B | -1.3% |
| Oct 26, 2023 | $7.47 | $7.49 | +0.3% | $38.4B | -0.4% |
| Jul 27, 2023 | $5.08 | $5.40 | +6.3% | $34.5B | +0.4% |
VLO insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 30, 2026 | Fisher Eric Aofficer: SVP | Sell | 7,500 | $268.17 |
| Jun 18, 2026 | Fisher Eric Aofficer: SVP | Sell | 7,500 | $236.90 |
| May 20, 2026 | Fisher Eric Aofficer: SVP | Sell | 7,500 | $251.61 |
| May 11, 2026 | Mullins Eric D.director | Grant | 939 | — |
| May 11, 2026 | WILKINS RAYFORD JRdirector | Grant | 939 | — |
| May 11, 2026 | Majoras Deborah Pdirector | Grant | 939 | — |
| May 11, 2026 | Reymond Robert Ldirector | Grant | 939 | — |
| May 11, 2026 | EBERHART PAULETTdirector | Grant | 939 | — |
| May 11, 2026 | Diaz Fred Mdirector | Grant | 939 | — |
| May 11, 2026 | Greene Kimberly S,director | Grant | 939 | — |
| May 11, 2026 | Ffolkes Marie Adirector | Grant | 939 | — |
| May 11, 2026 | WEISENBURGER RANDALL Jdirector | Grant | 939 | — |
| May 7, 2026 | EBERHART PAULETTdirector | Option | 1,381 | — |
| May 7, 2026 | Diaz Fred Mdirector | Option | 1,381 | — |
| May 7, 2026 | WILKINS RAYFORD JRdirector | Option | 1,381 | — |
Source: VLO SEC Form 4 filings, latest Jun 30, 2026. For informational purposes only — not investment advice.
See the full VLO insider & 13F page →Valero Energy Corporation company profile
Overview
Valero Energy Corporation (NYSE:VLO) is one of the largest independent petroleum refiners in the United States, founded in 1980 and headquartered in San Antonio, Texas. The company emerged from a spin-off of refining assets and has grown through strategic acquisitions and expansions to become a major player in the energy sector. Valero operates an extensive network of petroleum refineries across North America and has diversified into renewable fuels production, including ethanol and renewable diesel. The company has evolved from a traditional refiner into a more integrated energy company, expanding its presence in low-carbon fuel production while maintaining its core refining operations.
Business
Valero operates in the oil refining and marketing industry, which involves converting crude oil into refined petroleum products that consumers and businesses use daily. The company's operations are divided into three main business segments that collectively generated approximately $130 billion in revenue in 2024. The Refining segment represents the core of Valero's business, accounting for the majority of revenues. This segment operates 15 petroleum refineries with a combined throughput capacity of approximately 3.2 million barrels per day. These facilities process crude oil into various products including gasoline, diesel fuel, jet fuel, and other petroleum products. The refining process involves heating crude oil and separating it into different components based on their boiling points, then further processing these components into finished products that meet specific quality standards. Valero's refineries are strategically located primarily along the U.S. Gulf Coast, with additional facilities in the Midwest, West Coast, and Canada. The Renewable Diesel segment produces renewable diesel and sustainable aviation fuel (SAF) from renewable feedstocks such as animal fats, used cooking oils, and plant oils. This segment operates through Diamond Green Diesel, a joint venture that processes these alternative feedstocks into diesel fuel that is chemically identical to petroleum diesel but with a significantly lower carbon footprint. The renewable diesel production capacity has grown substantially, with sales volumes averaging 3.4 million gallons per day in 2024. The Ethanol segment operates 12 ethanol plants with a combined production capacity of approximately 1.6 billion gallons per year. Ethanol is produced by fermenting corn and other agricultural feedstocks, creating a biofuel that is blended with gasoline to reduce emissions and extend fuel supply. This segment also produces valuable co-products including dried distillers grains used for animal feed. Valero markets its refined products through approximately 7,000 retail outlets under various brand names including Valero, Beacon, Diamond Shamrock, and Texaco, though the majority of sales occur through wholesale markets to other distributors and retailers.
Revenue model
Valero generates revenue primarily through product sales across its three business segments, with different margin structures and customer bases for each operation. The Refining business makes money through the "crack spread" - the difference between the cost of crude oil inputs and the selling price of refined products. Valero purchases crude oil from various suppliers globally and processes it into higher-value products like gasoline, diesel, and jet fuel. The company sells these products to wholesale distributors, other oil companies, airlines, and through its retail network. Refining margins fluctuate based on the supply-demand balance for both crude oil and refined products, with factors like seasonal driving patterns, economic activity, and refinery capacity utilization affecting profitability. The Renewable Diesel operation generates revenue by selling renewable diesel and sustainable aviation fuel at premium prices compared to conventional fuels, supported by government incentives and environmental credits. Customers include fuel distributors, airlines, and companies seeking to reduce their carbon footprint. The business benefits from various government programs including Renewable Identification Numbers (RINs), California's Low Carbon Fuel Standard (LCFS) credits, and federal production tax credits. The Ethanol segment sells ethanol primarily to gasoline blenders who are required by federal mandate to blend biofuels with gasoline. Revenue comes from both ethanol sales and co-products like dried distillers grains sold to animal feed customers. Several factors significantly impact Valero's margins. Crude oil price volatility affects input costs, while refined product demand driven by economic activity, driving seasons, and weather patterns influences selling prices. Refinery capacity utilization across the industry affects supply-demand balances and margins. Regulatory changes, particularly environmental regulations and biofuel mandates, can create both opportunities and cost pressures. Feedstock availability and pricing for renewable operations, especially waste oils and animal fats, directly impacts renewable diesel profitability. Government incentive programs and carbon credit values provide significant margin support for low-carbon fuel production but can change with policy shifts.
Competitive moat
Valero's competitive moat is moderate but facing increasing challenges from regulatory pressures and energy transition dynamics. The company's primary moat stems from its substantial scale advantages and strategic asset positioning, but these traditional strengths are being tested by evolving market conditions. The company's scale advantages provide meaningful cost benefits through purchasing power for crude oil and other inputs, operational efficiencies across its large refinery network, and the ability to optimize product mix based on market conditions. Valero's 3.2 million barrels per day of refining capacity makes it one of the largest independent refiners, providing negotiating leverage with suppliers and customers. Strategic geographic positioning offers another competitive advantage, with refineries located near key transportation hubs, ports, and pipeline infrastructure. The Gulf Coast concentration provides access to both domestic and international crude supplies while serving major population centers and export markets. However, Valero faces significant regulatory and transition risks that weaken its moat. The company's decision to close its Benicia, California refinery by 2026 highlights how stringent environmental regulations can make operations economically unviable. California's increasingly restrictive regulatory environment and carbon pricing mechanisms create ongoing cost pressures that competitors in other regions don't face. The energy transition presents long-term structural challenges to traditional refining operations. While Valero has invested in renewable diesel and sustainable aviation fuel production, these markets are becoming increasingly competitive as more players enter the space. Electric vehicle adoption, though gradual, represents a potential long-term headwind to gasoline demand. Competitive threats include integrated oil companies with upstream production capabilities that can better manage input cost volatility, as well as new entrants in renewable fuels who may have access to lower-cost feedstocks or more favorable regulatory treatment. The renewable diesel market, in particular, has attracted significant investment, potentially pressuring margins as supply increases.
Risks & safety
Valero demonstrates strong financial stability with adequate liquidity and manageable debt levels, though recent earnings volatility creates some uncertainty. **Liquidity and Solvency:** - Cash and short-term investments: $4.6 billion as of Q1 2025 - Current ratio: 1.56x indicating solid short-term liquidity - Debt-to-equity ratio: 0.46x representing moderate leverage - Free cash flow: $703 million in Q1 2025 despite operating losses, showing resilient cash generation **Valuation Metrics:** - Trading at 1.77x book value, reasonable for an asset-heavy business - Recent quarters show significant earnings volatility with Q1 2025 net loss of $652 million - Full year 2024 P/E ratio of 14.3x based on $3.0 billion net income - EV/EBITDA multiple varies dramatically with margin cycles **Other Considerations:** - Strong dividend policy with recent 6% increase demonstrates management confidence - Substantial capital return program with $4.3 billion returned to shareholders in 2024 - Exposure to commodity price volatility creates earnings unpredictability - Regulatory risks in key markets like California pose ongoing challenges
Recent development
Over the past few years, Valero has executed a strategic transformation focused on diversifying into low-carbon fuels while optimizing its traditional refining operations and managing regulatory challenges. The company's most significant strategic initiative has been expanding renewable fuel production. Valero successfully started up its Diamond Green Diesel Sustainable Aviation Fuel (SAF) project in late 2024, adding high-value sustainable aviation fuel production to its renewable diesel capabilities. The company has grown its renewable diesel sales volumes to 3.4 million gallons per day and is positioning itself to benefit from increasing SAF mandates in Europe and North America. In traditional refining operations, Valero has pursued high-return optimization projects rather than large-scale capacity additions. The company completed a major Port Arthur Coker project and is progressing with a $230 million FCC Unit Optimization project at its St. Charles refinery expected to complete in 2026, which will increase high-octane alkylate production by 6,000-7,000 barrels per day. A major strategic decision was the announcement to cease refining operations at the Benicia, California refinery by April 2026. This reflects Valero's pragmatic approach to managing regulatory pressures and high operating costs in California's challenging business environment. The company continues to evaluate strategic alternatives for its West Coast assets. Valero has also focused on capital discipline and shareholder returns, maintaining a policy of returning excess cash to shareholders through dividends and share buybacks. The company returned $4.3 billion to stockholders in 2024 and recently increased its quarterly dividend by 6%, demonstrating confidence in its cash generation capabilities despite margin pressures. The company has been adapting to changing policy environments, particularly the transition from Renewable Identification Numbers (RINs) to new Production Tax Credit (PTC) regimes for renewable fuels, positioning its operations to optimize under evolving regulatory frameworks.
VLO company profile · for informational purposes only — not investment advice.
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