$VLO

Sector Update: Energy Stocks Lean Lower Premarket Thursday

Energy stocks were leaning lower premarket Thursday, with the State Street Energy Select Sector SPDR ETF (XLE) declining by 1.1%.The United States Oil Fund (USO) was down 2% and the United States Natural Gas Fund (UNG) was 1.1% lower.Front-month US West Texas Intermediate crude oil was 0.6% lower at $83.96 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil fell 0.9% to $89.96 per barrel, and natural gas futures were down 1.1% at $2.69 per 1 million British Thermal Units.Shell (SHEL) shares were up more than 1% after the company reported higher Q2 adjusted earnings and revenue.Cactus (WHD) stock was up nearly 6% after the company posted higher Q2 adjusted earnings and revenue.Valero Energy (VLO) stock was down more than 2% even after the company posted higher Q2 adjusted earnings and revenue.

Valero Reports Rise in Q2 Refining Throughput Volumes, Yields

Valero Energy (VLO), the Texas-based refining major which produces petroleum and low-carbon liquid transportation fuels, on Thursday reported Q2 total refining throughput volumes of 2.95 million barrels a day, up from 2.92 million bbl/d in the corresponding quarter last year.Total yields for the quarter ended June 30 rose to 2.98 million bbl/d, higher than yields of 2.95 million bbl/d in the year-ago period.Gasolines and blendstocks yields for the quarter were reported at 1.41 million bbl/d, compared with 1.44 million bbl/d in Q2 2025, while distillates yields in Q2 stood at 1.17 million bbl/d versus 1.11 million bbl/d last year.Adjusted refining operating income of throughput for the quarter stood at $16.56 per barrel, an almost three-and-half fold jump from $4.78/bbl reported in the year-ago period.In Q2, the renewable diesel segment reported average sales volumes of 3.83 million gallons per day, up from 2.73 million gallons/day last year.Ethanol production volumes averaged 4.67 million gallons/day for the quarter, rising from 4.58 million gallons/day a year ago.Valero said the ongoing $230 million fluid catalytic cracking unit optimization project at its St. Charles refinery in Louisiana, which is expected to enhance the facility's capacity to produce high-value products, continues to progress and is expect to be completed and begin operations in Q3.

Valero Energy's Q2 Adjusted Earnings, Revenue Increase

Valero Energy (VLO) reported Q2 adjusted earnings Thursday of $12.54 per diluted share, up from $2.28 a year ago.Analysts polled by FactSet expected $10.13.Revenue for the quarter ended June 30 was $44.48 billion, compared with $29.89 billion a year ago.Analysts expected $39.47 billion.Valero Energy stock was up more than 2% premarket Thursday.

Refining Stocks Slip as Crude Rally Pressures Sector Despite Strong Fuel Margins, TPH Says

Refining stocks gave back recent gains after crude oil jumped about $13 per barrel on renewed Middle East tensions, ahead of Q2 earnings this week, according to TPH Energy Research in a Monday note.Refining shares fell 1.1% last week, compared with a 0.6% decline for the S&P 500. Par Pacific (PARR) gained 1.5% to lead the group, while CVR Energy (CVI) dropped 4.8%, the steepest decline, according to TPH strategist Matthew Blair.Singapore gasoline and diesel cracks each climbed $11/bbl, supporting Par Pacific. In the US, gasoline cracks fell by $3 to $38/bbl, while diesel cracks rose $1 to $66/bbl, with both holding five-year highs.The US West Coast posted the only weekly regional improvement as stronger gasoline and diesel margins supported refining economics.Northwest Europe margins weakened as gasoline cracks fell $9/bbl and diesel cracks dropped $3/bbl after the dated Brent premium over front-month Brent widened.Crude price spreads also widened sharply. Brent's premium over Western Canadian Select at Hardisty increased $5 to $25/bbl, while the Brent-Alaska North Slope spread widened $4 to $13/bbl.The note also highlighted several market developments, including China's June 2026 crude imports falling to a near-decade low, Russia considering a longer gasoline and diesel export ban, low Rhine River water levels and HF Sinclair (DINO) suing the Environmental Protection Agency over delayed small refinery exemption decisions.Q2 earnings season starts this week with results from HF Sinclair, PBF Energy (PBF), Valero Energy (VLO) and CVR Energy (CVI).Price: $77.86, Change: $+0.47, Percent Change: +0.61%

Goldman Sachs Adjusts Price Target on Valero Energy to $357 From $286, Maintains Buy Rating

Valero Energy (VLO) has an average rating of overweight and mean price target of $293, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)

TD Cowen Adjusts Valero Energy Price Target to $338 From $292, Maintains Hold Rating

Valero Energy (VLO) has an average rating of overweight and mean price target of $285.18, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)

Sector Update: Energy Stocks Rise Late Afternoon

Energy stocks were higher late Friday afternoon, with the NYSE Energy Sector Index rising 1.3% and the State Street Energy Select Sector SPDR ETF (XLE) increasing 0.9%.The Philadelphia Oil Service Sector Index was up 0.1%, and the Dow Jones US Utilities Index was shedding 0.7%.Crude oil prices jumped amid Washington intensifying strikes against Iran. US Central Command said in a post on X that it completed the sixth consecutive wave of attacks against Iran, degrading the nation's military capabilities and holding it "accountable" for recent attacks on commercial shipping in the Strait of Hormuz. President Donald Trump has threatened to launch broad-based air strikes on Iranian infrastructure and has also declined to rule out a ground assault on Iran's coast or islands, Reuters reported.Front-month West Texas Intermediate crude oil jumped 4% to $82.12 a barrel, and the global benchmark Brent crude contract climbed 4.2% to $87.77 a barrel. Henry Hub natural gas futures rose 2% to $2.92 per 1 million BTU.In sector news, incoming UK Prime Minister Andy Burnham is preparing to announce support for new North Sea oil and gas drilling and plans to bring Thames Water under public control shortly after taking office, Bloomberg reported. Burnham, who is due to succeed Keir Starmer on Monday, has asked civil servants to prepare energy and water policy proposals that could be announced as early as next week, according to the report. Options under consideration include backing development of the Jackdaw gas and Rosebank oil fields and expanding drilling tied to existing North Sea projects.In corporate news, Chevron (CVX) subsidiary Chevron Exploration Services and Iraqi state-owned Basra Oil have signed an agreement to further their commercial negotiations regarding the West Qurna Phase 2 oil field, a company spokesperson toldin an emailed response Friday. Chevron shares rose 1.7%.ConocoPhillips (COP) said Friday it has agreed to acquire a 42% stake in BP's (BP) BP Energy Co. of Kirkuk, which oversees the ongoing redevelopment of four large-scale, currently producing oil fields in northern Iraq's Kirkuk region. ConocoPhillips shares rose 1.3%, and BP climbed 1.8%.PBF Energy (PBF) shares gained 3.3% after Evercore ISI started coverage of the firm with an in-line rating and $58 price target.Valero Energy (VLO) shares were rising 2.7%. The company said in a filing Thursday that its board has authorized the purchase of the company's common stock worth $5 billion, in addition to the amount remaining under its existing buyback program.

Sector Update: Energy

Energy stocks were higher late Friday afternoon, with the NYSE Energy Sector Index rising 1.3% and the State Street Energy Select Sector SPDR ETF (XLE) increasing 0.9%.The Philadelphia Oil Service Sector Index was fractionally lower, and the Dow Jones US Utilities Index was shedding 0.7%.Front-month West Texas Intermediate crude oil jumped 4% to $82.12 a barrel, and the global benchmark Brent crude contract climbed 4.2% to $87.77 a barrel. Henry Hub natural gas futures rose 2% to $2.92 per 1 million BTU.In corporate news, Valero Energy (VLO) shares were rising 2.3%. The company said in a filing Thursday that its board has authorized the purchase of the company's common stock worth $5 billion, in addition to the amount remaining under its existing buyback program.

Valero Energy Increases Share Buyback Program by $5 Billion

Valero Energy (VLO) said in a filing Thursday that its board has authorized the purchase of the company's common stock worth $5 billion, in addition to the amount remaining under its existing buyback program.As of June 30, the company had $1.4 billion available under its share repurchase program, according to a filing with the US Securities and Exchange Commission.Shares of Valero Energy were up 1.7% in Friday trading.Price: $305.47, Change: $+5.21, Percent Change: +1.74%

Valero Energy Keeps Quarterly Dividend of $1.20 per Share, Payable August 31, to Shareholders of Record July 31

Resilient Q3 Ethanol Margins Offset Weaker Co-Product Prices, TPH Says

Q3 ethanol margins averaged $1.05 per gallon so far, exceeding previous expectations despite moderating from the prior quarter, according to TPH Energy Research in a Wednesday note.The firm said its Midwest ethanol margin indicator eased from $1.15/gal in Q2 but remained above $1.03/gal a year earlier, reflecting continued strength in industry profitability.Lower co-product prices weighed on margins during the quarter. Falling dried distillers grains prices, driven by weaker soymeal values, reduced the margin indicator by 6 cents per gallon over the quarter, while softer corn oil prices trimmed the margin by another 2 cents.The ethanol-to-corn spread narrowed by just 2 cents per gallon from the prior quarter as lower corn prices largely offset slightly weaker ethanol prices.TPH Energy said corn prices declined despite last week's bullish World Agricultural Supply and Demand Estimates report, which lowered year-end corn inventories on stronger exports.The firm said ethanol exports continue to support the industry and expects US shipments to reach 2.2 billion gallons in 2026, up from 2.0 billion gallons in 2025.Stronger-than-expected ethanol margins prompted TPH Energy to raise its third-quarter EBITDA forecast for Green Plains (GPRE) to $82 million from the consensus estimate of $69 million.TPH Energy also expects Green Plains to generate a 19% free cash flow yield in 2026, supported by resilient ethanol margins and favorable export trends.The brokerage said the improving ethanol market should also benefit Archer-Daniels-Midland (ADM), Aemetis (AMTX) and Valero Energy (VLO).Price: $16.65, Change: $-0.47, Percent Change: -2.75%

Refining Boom Returns as Geopolitical Tensions Push Fuel Profits to Multi-Year Highs, TPH Says

US refiners are on track to report one of their strongest quarters in years as geopolitical disruptions drove fuel margins sharply higher, TPH Energy Research analyst Matthew Blair said in a note on Wednesday.Average Q2 2026 earnings per share are projected at $6.53, above the consensus estimate of $6.20 and up from $0.59 in Q1.Blair said the quarter is shaping up to be the industry's most profitable since market disruptions following Russia's invasion of Ukraine in 2022.Global refining runs fell to an estimated 78 million barrels per day in Q2 from 83 million b/d in Q1, reflecting the closure of the Strait of Hormuz and increased Ukrainian drone attacks on Russian refineries.Tighter supply pushed US gasoline crack spreads to an average of $25/bbl in the quarter, up from $9/bbl in Q1 and $16/bbl a year earlier.Diesel crack spreads climbed to $45/bbl from $30/bbl in the previous quarter and $17/bbl a year earlier. Margins improved across most US refining regions, with the Southwest and Gulf Coast posting the largest gains over the year. Jet fuel and naphtha margins also strengthened.In Asia, Singapore gasoline and diesel crack spreads rose to $33/bbl and $69/bbl, respectively, from $16/bbl and $41/bbl in Q1. Singapore diesel margins reached five-year highs during much of the quarter.Higher fuel margins were partly offset by tighter crude price differentials, steeper backwardation and higher tanker rates. Backwardation indicates strong near-term demand or tight spot supply, with futures prices trading below spot prices.Marathon Petroleum (MPC), PBF Energy (PBF) and Phillips 66 (PSX) are expected to post the largest earnings beats versus consensus, while CVR Energy (CVI) and Delek US Holdings (DK) may underperform expectations.The third quarter has also started strongly, with gasoline and diesel margins rising further amid renewed US-Iran tensions and continued constraints on shipping through the Strait of Hormuz.Blair forecasts average third-quarter earnings per share of $5.91, roughly in line with the consensus estimate of $5.94.Price: $296.79, Change: $-6.61, Percent Change: -2.18%

Refiners Start Q3 Strong with Better Fuel Margins, Tight Inventories, TPH Says

US refiners have begun the third quarter on a strong footing, with refining margins improving across most companies as low fuel inventories and renewed tensions between the US and Iran support market conditions, TPH Energy Research analyst Matthew Blair said in a Tuesday note.Blair said company-specific refining indicators are off to a "fantastic start" about halfway through the first month of the quarter, with most refiners benefiting from stronger product cracks and favorable crude market dynamics.Among the large-cap refiners, Valero Energy (VLO) is showing the biggest improvement over the quarter, with TPH estimating refining margins have increased by about $9.15 per barrel.Blair attributed the gains to the company's significant exposure to the North Atlantic and US Gulf Coast, where refining economics have strengthened the most since the Q2.Valero is also benefiting from wider Gulf Coast crude differentials, including ASCI and Maya grades.Phillips 66 (PSX) is estimated to be up about $6.70/bbl over the quarter, supported by similar regional exposure. However, Blair said the company's performance has been somewhat constrained by higher crude prices and weaker Gulf Coast product trends.Marathon Petroleum (MPC) is estimated to have improved by roughly $5.95/bbl from the prior quarter. While product margins in the Chicago region have not strengthened as much as elsewhere, Blair said that has been partially offset by a more favorable structure in the WTI crude market.Among small- and mid-cap refiners, Delek US Holdings (DK) stands out as the strongest performer, with TPH estimating a quarter-over-quarter improvement of about $13.60/bbl.Blair cited the company's Gulf Coast product exposure, wider Midland crude differentials and improved WTI market structure as key drivers.CVR Energy (CVI) is also seeing a substantial improvement, with estimated margins up about $9.85/bbl before accounting for renewable volume obligation costs, or about $7.34/bbl after those costs.HF Sinclair (DINO) is estimated to be up about $2.80/bbl, benefiting from stronger Group 3 gasoline cracks, although Blair noted that the company's exposure to the Rockies and Southwest has moderated from exceptionally strong Q2 levels.Par Pacific Holdings (PARR) is the only refiner in TPH's coverage expected to post a quarter-over-quarter decline, with estimated margins down about $2/bbl.Blair attributed the weakness primarily to Singapore refining margins retreating from record Q2 levels, along with TPH's expectation of more challenging Hawaiian crude differentials during Q3.Price: $297.50, Change: $+1.71, Percent Change: +0.58%

Citigroup Adjusts Price Target on Valero Energy to $302 From $259, Maintains Neutral Rating

Valero Energy (VLO) has an average rating of overweight and mean price target of $281.41, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)

US Equity Markets End Lower After Trump Proposes Blockade of Iranian Ships, Toll on Strait of Hormuz

US equity indexes closed lower Monday after President Donald Trump suggested a plan to reinstate a blockade on Iranian ships and charge a toll for providing security to cargo vessels crossing the Strait of Hormuz, sending crude oil prices higher.* "We are reinstating the IRANIAN BLOCKADE," Trump said in a Truth Social post on Monday, following a weekend of attacks on Iran. He added that the US will protect vessels crossing the Strait and charge 20% of the cargo's cost as expense reimbursement.* August West Texas Intermediate crude oil rose $6.23 to settle at $77.64 per barrel, while September Brent crude, the global benchmark, was last seen up $6.90 at $82.91.* Valero Energy (VLO) stock was up 5.4%, and Phillips 66 (PSX) was 5.3% higher, among the top gainers on the S&P 500, after crude oil prices rose following clashes between the US and Iran.* Alphabet's (GOOG, GOOGL) Google is one of the biggest buyers of Nvidia's (NVDA) AI server chips, but it has also been expanding its in-house AI chip business in a move that could challenge Nvidia's dominance, The Information reported. Alphabet shares were down 1.3%, and Nvidia fell 3.5%, the worst performer on the Dow.

Refiners Rally as Renewed US-Iran Fighting Lifts Fuel Margins, TPH Says

US refining equities surged last week, outpacing the broader market as renewed fighting between the US and Iran stoked concerns over energy supplies, driving a sharp climb in gasoline and diesel cracks, TPH Energy Research strategists said in a note Monday.TPH analysts said refining equities jumped 8% last week, outperforming the broader S&P 500, which gained 1.2%.Matthew Blair, analyst at TPH Energy, said higher-beta refiners led the advance, with Par Pacific Holdings (PARR) shares rising 12.5%, PBF Energy (PBF) gaining 11.2%, and CVR Energy (CVI) climbing 8.7%.Blair said that the rally came as renewed US-Iran tensions have stoked concerns over potential disruptions to crude and refined product flows, pushing gasoline and diesel margins higher.US gasoline cracks rose by about $3 per barrel last week to $40/bbl, with the West Coast and Rockies regions posting the strongest gains.Diesel margins climbed even more sharply, surging $10/bbl to $53/bbl, buoyed by stronger pricing across the West Coast, Rockies, Gulf Coast and Midwest markets.TPH said the East Coast and Gulf Coast markets entered Q3 with the largest improvement in refining margins over the quarter.Meanwhile, global markets showed mixed signals. Northwest Europe gasoline margins climbed $3/bbl to $37/bbl, reaching the highest level in five years, while Singapore gasoline margins weakened by $5/bbl to $23/bbl amid softer regional demand and supply dynamics.TPH said forward refining margins also strengthened. The 2026 and 2027 6-3-2-1 crack spread futures curves improved by $2/bbl and $3/bbl, respectively, reaching $19/bbl and $14/bbl, driven largely by gains in diesel markets.Crude oil differentials also improved during the week. TPH said Syncrude and Alaska North Slope crude each widened by $8/bbl over Brent, while other grades, including WTI, Mars, Maya, Western Canadian Select at Houston, Western Canadian Select premiums at Hardisty and Bakken also strengthened.WTI differentials improved by $1/bbl, while Mars and Maya gained $1/bbl each. Bakken widened by $2/bbl, the bank said.However, despite the recent rally, most refining stocks remain valued below their three-year forward consensus enterprise value-to-EBITDA averages.TPH said only Marathon Petroleum (MPC) and Valero Energy (VLO) are currently trading above their historical valuation benchmarks.Price: $70.20, Change: $+4.42, Percent Change: +6.72%

Raymond James Adjusts Price Target on Valero Energy to $340 From $300, Maintains Strong Buy Rating

Valero Energy (VLO) has an average rating of overweight and mean price target of $278.88, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)

BMO Capital Adjusts Price Target on Valero Energy to $310 From $290, Maintains Outperform Rating

Valero Energy (VLO) has an average rating of overweight and mean price target of $278.88, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)

Evercore ISI Adjusts Price Target on Valero Energy to $300 From $250, Maintains In Line Rating

Valero Energy (VLO) has an average rating of overweight and mean price target of $278.88, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)

Investors Favor Mid-Cap Refiners as Sector Fundamentals Strengthen, TPH Energy Says

Refining investors remain optimistic as stronger fuel margins, supportive market fundamentals and geopolitical developments continue to strengthen the sector, TPH Energy said in a Friday note.TPH Energy said investors showed the most interest in mid-cap refiners Delek US Holdings (DK), HF Sinclair (DINO) and Par Pacific Holdings (PARR), while Phillips 66 (PSX) and Valero Energy (VLO) attracted the most attention among large-cap companies.Investors focused on the breakdown of the US-Iran memorandum of understanding, which boosted gasoline and diesel refining margins, while also watching Ukrainian drone strikes on Russian refineries, a recovery in Chinese refining activity and low fuel inventories, TPH Energy said.Market participants also examined regional refining trends, including weaker Midwest gasoline margins compared with the Gulf Coast during the summer, along with Western Canadian Select takeaway constraints, the note added.Investors also highlighted potential benefits from Small Refinery Exemptions for Delek US Holdings, Par Pacific Holdings and HF Sinclair, the note said.TPH Energy also expects Marathon Petroleum (MPC), Valero Energy, HF Sinclair, Delek US Holdings and Par Pacific Holdings to generate enough cash in the first half to support significant shareholder returns in the second half of 2026.Price: $55.66, Change: $-0.43, Percent Change: -0.77%