Latest news with #ValeroEnergyCorp
Yahoo
28-04-2025
- Business
- Yahoo
Goldman Sachs upgrades Valero on improved margin outlook, balanced valuation
-- Goldman Sachs upgraded Valero Energy Corp (NYSE:VLO) to "Neutral" from "Sell," pointing to improved long-term margin potential and a more balanced valuation. The brokerage set a new price target of $127, implying a total return of 15%. The analysts cited three main factors for the upgrade: consensus revisions that better reflect a slowdown in refining profitability, an improving crude environment driven by OPEC's addition of heavy barrels, and a more constructive supply backdrop following large refining closures such as LyondellBasell's Gulf Coast plant. While noting the continued uncertainty in demand, Goldman Sachs said Valero's relatively healthy balance sheet and strong cash flow generation should support shareholder returns, estimating a capital return yield of about 9%. Goldman also noted that Valero shares have underperformed Marathon Petroleum (NYSE:MPC) and the XLE (NYSE:XLE) this year. However, shares have meaningfully outperformed the S&P by roughly 119% in around 5 year period, supported by oil demand recovery, consistent dividend payments, and operational execution. Risk/reward screens as more balanced, the analysts wrote, highlighting the company's capital allocation strategy and expectations for favorable crude differentials and strong free cash flow. Related articles Goldman Sachs upgrades Valero on improved margin outlook, balanced valuation WallStreet starts SmartStop Self Storage with bullish ratings on post IPO strength Analysts downgrade Avantor on earnings miss, CEO transition and tariff risks Sign in to access your portfolio
Yahoo
22-04-2025
- Business
- Yahoo
GOP lawmaker warns that likely move in blue state will make gas prices skyrocket: 'Affordability issue'
Rep. Vince Fong, R-Calif., is one of the many voices sounding the alarm about a recent oil refinery closure announcement having a greater impact on American wallets. Valero Energy Corp. announced that it will likely close its Benicia refinery near San Francisco in April 2026, putting more than 400 jobs in jeopardy. "We understand the impact that this may have on our employees, business partners, and community, and will continue to work with them through this period," Lane Riggs, board chair, CEO and president of Valero, said in a news release on April 16. Fong said the state's energy policies are making it tough for the industry to survive. California Career Politician Barbara Lee Wins Mayor Race In Embattled Oakland "This is in addition to other refinery closures that have been announced. So, in totality, what we're looking at is 20% of California's refining capacity disappearing. And that's significant," Fong told Fox News Digital in an interview. Read On The Fox News App Valero also operates a refinery in Los Angeles, but the move regarding the Benicia location is seen as a major hit. "It's a warning that California's fuel supply is in jeopardy, and it's all caused because of [Democrat Gov.] Gavin Newsom's poor energy policies. That's the root cause, and the rigid regulatory environment, all the mandates, all the new regulations that have been put on these refineries, and now it's putting our fuel supply in jeopardy. And this isn't just an energy issue. This is an affordability issue. This is a jobs issue. This is a reliability issue," he continued. Alaska Senator Literally Shreds Biden's Energy Orders, Boosts Wh Efforts To Leverage Arctic Gas Pipeline The Golden State's policies are major contributors to higher gas prices in the state, according to a recent study by University of Southern California professor Michael Mische. "California's energy policy is at a breaking point," Fong said. "This is not a market failure. This is because of regulations and mandates that are pushing refineries to close. They can't survive in this and make it economically feasible to function in California. And those who are going to suffer are everyday Californians." As the state is a major energy supplier, the congressman said its regulations have occasionally gained bipartisan scrutiny from neighboring Arizona and Nevada. "This is going to impact California drivers significantly," Fong said. "When there's gasoline shortages, what you're going to see is the price of gasoline go up. And in California, you know, we pay the highest price of gas compared to the other states." Us, Saudi Arabia Could Cement 'Long-term Partnership' On Nuclear Energy As of Sunday, Californians are paying an average of $4.83 per gallon, which is significantly higher than the $3.15 national average, according to AAA. Fox News Digital reached out to Newsom's office for comment, but it referred the inquiry to the California Energy Commission, which said Valero's legally required advance notice will help the state better prepare for its next steps. "The California Energy Commission (CEC) is committed to its efforts to collaborate with the industry and stakeholders so that the state continues to have a safe, reliable and affordable supply while transitioning away from fossil fuels," CEC Vice Chair Siva Sunda stated. "As required under Senate Bill X1-2, Valero Refining Company notified the CEC of its intent to idle, restructure or cease operations at its Benicia Refinery by the end of April 2026. This advance notification helps the state to continue to closely monitor the evolving conditions in the fuel supply market and proactively plan and take steps to support the transition in the state's fuel supply." "The CEC will continue to work in partnership with the industry and stakeholders to protect consumers during this transition," he continued. Valero faces $82 million in fines from different governmental bodies in California over environmental regulations, according to article source: GOP lawmaker warns that likely move in blue state will make gas prices skyrocket: 'Affordability issue'
Yahoo
22-04-2025
- Business
- Yahoo
GOP lawmaker warns that blue state's likely move will make gas prices skyrocket: 'Affordability issue'
Rep. Vince Fong, R-Calif., is one of the many voices sounding the alarm about a recent oil refinery closure announcement having a greater impact on American wallets. Valero Energy Corp. announced that it will likely close its Benicia refinery near San Francisco in April 2026, putting more than 400 jobs in jeopardy. "We understand the impact that this may have on our employees, business partners, and community, and will continue to work with them through this period," Lane Riggs, board chair, CEO and president of Valero, said in a news release on April 16. Fong said the state's energy policies are making it tough for the industry to survive. California Career Politician Barbara Lee Wins Mayor Race In Embattled Oakland "This is in addition to other refinery closures that have been announced. So, in totality, what we're looking at is 20% of California's refining capacity disappearing. And that's significant," Fong told Fox News Digital in an interview. Read On The Fox News App Valero also operates a refinery in Los Angeles, but the move regarding the Benicia location is seen as a major hit. "It's a warning that California's fuel supply is in jeopardy, and it's all caused because of [Democrat Gov.] Gavin Newsom's poor energy policies. That's the root cause, and the rigid regulatory environment, all the mandates, all the new regulations that have been put on these refineries, and now it's putting our fuel supply in jeopardy. And this isn't just an energy issue. This is an affordability issue. This is a jobs issue. This is a reliability issue," he continued. Alaska Senator Literally Shreds Biden's Energy Orders, Boosts Wh Efforts To Leverage Arctic Gas Pipeline The Golden State's policies are major contributors to higher gas prices in the state, according to a recent study by University of Southern California professor Michael Mische. "California's energy policy is at a breaking point," Fong said. "This is not a market failure. This is because of regulations and mandates that are pushing refineries to close. They can't survive in this and make it economically feasible to function in California. And those who are going to suffer are everyday Californians." As the state is a major energy supplier, the congressman said its regulations have occasionally gained bipartisan scrutiny from neighboring Arizona and Nevada. "This is going to impact California drivers significantly," Fong said. "When there's gasoline shortages, what you're going to see is the price of gasoline go up. And in California, you know, we pay the highest price of gas compared to the other states." Us, Saudi Arabia Could Cement 'Long-term Partnership' On Nuclear Energy As of Sunday, Californians are paying an average of $4.83 per gallon, which is significantly higher than the $3.15 national average, according to AAA. Fox News Digital reached out to Newsom's office for comment, but it referred the inquiry to the California Energy Commission, which said Valero's legally required advance notice will help the state better prepare for its next steps. "The California Energy Commission (CEC) is committed to its efforts to collaborate with the industry and stakeholders so that the state continues to have a safe, reliable and affordable supply while transitioning away from fossil fuels," CEC Vice Chair Siva Sunda stated. "As required under Senate Bill X1-2, Valero Refining Company notified the CEC of its intent to idle, restructure or cease operations at its Benicia Refinery by the end of April 2026. This advance notification helps the state to continue to closely monitor the evolving conditions in the fuel supply market and proactively plan and take steps to support the transition in the state's fuel supply." "The CEC will continue to work in partnership with the industry and stakeholders to protect consumers during this transition," he continued. Valero faces $82 million in fines from different governmental bodies in California over environmental regulations, according to article source: GOP lawmaker warns that blue state's likely move will make gas prices skyrocket: 'Affordability issue'
Yahoo
17-04-2025
- Business
- Yahoo
Valero books $1.1 billion impairment, may idle California refinery
(Reuters) - Valero Energy Corp said on Wednesday it was taking a $1.1 billion pre-tax impairment related to its California refineries and told state regulators it would permanently shut or restructure its San Francisco-area refinery in Benicia, California by the end of April 2026. The move comes as refiners face growing regulatory and cost pressures in California, the largest U.S. gasoline market, where the state's emissions targets and proposed refinery transparency rules have weighed on long-term investment decisions. The Benicia converts an average of 145,000 barrels per day (bpd) of crude oil into motor fuels, according to the U.S. Energy Information Administration. "We understand the impact that this may have on our employees, business partners, and community, and will continue to work with them through this period," Lane Riggs, chief executive of San Antonio-based Valero, said on Wednesday. Valero also said on Wednesday it was weighing strategic options for its 91,300 bpd Los Angeles-area refinery. Riggs said in October that the company was keeping all options on the table for its two California refineries. The number of refineries in California processing crude oil has been shrinking with companies citing increased regulation like the state's plans to ban the sale of gasoline-powered automobiles by 2035. Six plants have shut since 2008. Two of those have converted to producing renewable diesel. Competing U.S. refiner Phillips 66, also in October said it would shutter its 139,000 bpd Los Angeles refinery within a year. That announcement came days after a state law was signed by Governor Gavin Newsom requiring refineries to keep stockpiles of fuel on hand to limit price spikes. Gasoline prices in California are among the highest in the United States due to the state's reliance on West Coast refineries or imports from Asia or the Middle East. Unlike other U.S. regions, there are no pipelines connecting California with refining centers along the Gulf Coast or in the Midwest. The Benicia refinery in the northeast of San Francisco Bay has a throughput capacity of 145,000 barrels per day. Sign in to access your portfolio
Reuters
17-04-2025
- Business
- Reuters
Valero books $1.1 bln impairment, may idle California refinery
April 16 (Reuters) - Valero Energy Corp (VLO.N), opens new tab said on Wednesday it was taking a $1.1 billion pre-tax impairment related to its California refineries and told state regulators it would permanently shut or restructure its San Francisco-area refinery in Benicia, California by the end of April 2026. The move comes as refiners face growing regulatory and cost pressures in California, the largest U.S. gasoline market, where the state's emissions targets and proposed refinery transparency rules have weighed on long-term investment decisions. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. The Benicia converts an average of 145,000 barrels per day (bpd) of crude oil into motor fuels, according to the U.S. Energy Information Administration. "We understand the impact that this may have on our employees, business partners, and community, and will continue to work with them through this period," Lane Riggs, chief executive of San Antonio-based Valero, said on Wednesday. Valero also said on Wednesday it was weighing strategic options for its 91,300 bpd Los Angeles-area refinery. Riggs said in October that the company was keeping all options on the table for its two California refineries. The number of refineries in California processing crude oil has been shrinking with companies citing increased regulation like the state's plans to ban the sale of gasoline-powered automobiles by 2035. Six plants have shut since 2008. Two of those have converted to producing renewable diesel. Competing U.S. refiner Phillips 66 (PSX.N), opens new tab, also in October said it would shutter its 139,000 bpd Los Angeles refinery within a year. That announcement came days after a state law was signed by Governor Gavin Newsom requiring refineries to keep stockpiles of fuel on hand to limit price spikes. Gasoline prices in California are among the highest in the United States due to the state's reliance on West Coast refineries or imports from Asia or the Middle East. Unlike other U.S. regions, there are no pipelines connecting California with refining centers along the Gulf Coast or in the Midwest. The Benicia refinery in the northeast of San Francisco Bay has a throughput capacity of 145,000 barrels per day.
