Valero Energy Corporation Website

Valero Energy Corporation

NYSE-VLO

Company Overview

Valero Energy Corporation manufactures, markets, and sells transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, and internationally. The company operates through three segments: Refining, Renewable Diesel, and Ethanol. It produces conventional, premium, and reformulated gasolines; gasoline meeting the specifications of the California Air Resources Board (CARB); diesel fuels, and low-sulfur and ultra-low-sulfur diesel fuels; CARB diesel; other distillates; jet fuels; blendstocks; and asphalts, petrochemicals, lubricants, and other refined petroleum products, as well as sells lube oils and natural gas liquids. As of December 31, 2021, the company owned 15 petroleum refineries with a combined throughput capacity of approximately 3.2 million barrels per day; and 12 ethanol plants with a combined ethanol production capacity of approximately 1.6 billion gallons per year. It sells its refined products through wholesale rack and bulk markets; and through approximately 7,000 outlets under the Valero, Beacon, Diamond Shamrock, Shamrock, Ultramar, and Texaco brands. The company also produces and sells ethanol, dry distiller grains, syrup, and inedible corn oil primarily to animal feed customers. In addition, it owns and operates crude oil and refined petroleum products pipelines, terminals, tanks, marine docks, truck rack bays, and other logistics assets; and owns and operates a plant that processes animal fats, used cooking oils, and inedible distillers corn oils into renewable diesel. The company was formerly known as Valero Refining and Marketing Company and changed its name to Valero Energy Corporation in August 1997. Valero Energy Corporation was founded in 1980 and is headquartered in San Antonio, Texas.

  • Name

    Valero Energy Corporation

  • CEO

    R. Lane Riggs

  • Website

    www.valero.com

  • Sector

    Oil, Gas and Consumable Fuels

  • Year Founded

    1980

Company Statistics

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Bulls Say

  • Valero enjoys a cost advantage thanks to its proximity to cost-advantaged light crude oil, ability to process discount heavy sour crude, and low operating cost from lower domestic natural gas prices.

  • Valero is investing in renewable diesel and sustainable aviation fuel, which should increase volumes and provide attractive returns, given global blending mandates and favorable renewable fuel credit treatment.

  • Management has committed to maintaining the dividend through the cycle while returning cash to shareholders with a specific target of 40%-50% of operating cash flow.

Bears Say

  • Growing EV adoption will destroy gasoline demand and leave Valero's refineries uneconomic, given the high portion of gasoline production.

  • The market continues to expect strong earnings recovery to above midcycle levels, which could prove overly optimistic in the event of economic weakness, resulting in a lower share price.

  • International refining capacity is growing, which will increase supply in the export market. This means US refiners may not be able to export as much refined product as necessary to balance the US market and support margins.

Source: Morningstar Analysis - Nov 24, 2025

What's happening

Nov 13, 2025 - Dec 13, 2025

Valero Energy Faces Operational Challenges Amid Mixed Analyst Sentiment

  • Valero Energy Corporation's stock price declined by 5.2% over the past month, underperforming against the S&P 500's slight drop of 0.2%.
  • Insider trading activities raised investor concerns, particularly following a significant sale of shares by CFO Jason Fraser.
  • Despite operational challenges and bearish trends, analysts maintained a generally favorable outlook on Valero’s resilience.

Over the last month, Valero Energy Corporation (VLO) experienced a notable decline in its stock price, falling by 5.2%. This performance was largely attributed to operational challenges and negative sentiment stemming from insider trading activities that heightened investor apprehension. A key factor influencing VLO’s performance was the announcement of an upcoming upgrade at its Port Arthur refinery scheduled for February, which is expected to disrupt operations temporarily and raise concerns about production capabilities.

The impact of insider trading further contributed to market unease when CFO Jason Fraser sold nearly 10,000 shares just before this reporting period began. This transaction may have been perceived as a sign of diminished confidence from company leadership during an already challenging time for energy stocks.

Despite these setbacks, VLO received some positive attention from analysts during this timeframe. The company's recent earnings report revealed earnings per share of $3.66—exceeding expectations—even though revenue saw a year-over-year decline of 2.2%. Several firms issued "buy" ratings or upgraded their price targets for VLO based on its operational resilience despite prevailing financial pressures.

While mixed signals emerged from analysts regarding Valero's prospects, they contrasted sharply with the overall bearish trends affecting the company throughout December. Although bullish sentiment occasionally surfaced due to reports highlighting issues at competing refineries, the overarching narrative focused on Valero's struggles against external pressures and less favorable internal decisions impacting shareholders.

In terms of sector performance, it is important to note that while Valero faced challenges leading to its underperformance relative to both the S&P 500 and broader market trends within energy stocks (XLE), it still managed to outperform its sector peers significantly by approximately 44.4%.

NYSE:VLO