Valero beats Q4 revenue and EPS estimates, raises dividend

Overview

• Petroleum refiner's Q4 revenue beat analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company raised quarterly dividend by 6% to $1.20 per share

Outlook

• Valero expects St. Charles FCC Unit optimization project to start in H2 2026

• Valero increased quarterly cash dividend by 6% to $1.20 per share

Result Drivers

• REFINING SEGMENT - Record refining throughput and improved margins drove significant increase in operating income

• ETHANOL SEGMENT - Increased production volumes and higher margins led to substantial rise in operating income

• RENEWABLE DIESEL SEGMENT - Decline in operating income due to lower sales volumes and margins

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas refining and marketing peer group is "buy"

• Wall Street's median 12-month price target for Valero Energy Corp is $190.00, about 3.2% above its January 28 closing price of $184.02

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nBwbx6DvVa

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