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SAN ANTONIO, Texas--(BUSINESS WIRE)--Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income attributable to Valero stockholders of $6.8 billion, or $23.89 per share, for the third quarter of 2026, compared to $1.1 billion, or $3.53 per share, for the third quarter of 2025. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders for the third quarter of 2026 was $6.8 billion, or $23.90 per share, compared to $1.1 billion, or $3.66 per share, for the third quarter of 2025.

“Our refineries operated at near-record utilization rates, providing a reliable supply of critical transportation fuels during the quarter,” said Lane Riggs, Valero’s Chairman, Chief Executive Officer and President. “We also completed the St. Charles FCC Unit optimization project, which increases the production capacity of higher value products, including alkylate and gasoline, further strengthening our ability to supply transportation fuels to the market.”

Refining

The Refining segment reported operating income of $8.8 billion for the third quarter of 2026, compared to $1.6 billion for the third quarter of 2025. Adjusted operating income for the third quarter of 2026 was $8.8 billion, compared to $1.7 billion for the third quarter of 2025. Refining throughput volumes averaged 3.0 million barrels per day in the third quarter of 2026.

Renewable Diesel

The Renewable Diesel segment, which consists of the Diamond Green Diesel joint venture (DGD), reported operating income of $353 million for the third quarter of 2026, compared to an operating loss of $28 million for the third quarter of 2025. Segment sales volumes averaged 3.4 million gallons per day in the third quarter of 2026.

Ethanol

The Ethanol segment reported operating income of $272 million for the third quarter of 2026, compared to $183 million for the third quarter of 2025. Ethanol production volumes averaged 4.8 million gallons per day in the third quarter of 2026, setting a new quarterly record.

Corporate and Other

General and administrative expenses were $308 million in the third quarter of 2026. The effective tax rate for the third quarter of 2026 was 23 percent.

Investing and Financing Activities

Net cash provided by operating activities was $6.9 billion in the third quarter of 2026. Included in this amount was a $526 million unfavorable impact from working capital and $205 million of adjusted net cash provided by operating activities associated with the other joint venture member’s share of DGD. Excluding these items, adjusted net cash provided by operating activities was $7.3 billion in the third quarter of 2026.

Capital investments totaled $432 million in the third quarter of 2026, of which $371 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance. Excluding capital investments attributable to the other joint venture member’s share of DGD and other variable interest entities, capital investments attributable to Valero were $429 million in the third quarter of 2026.

Valero stockholder cash returns resulted in a payout ratio of 52 percent of adjusted net cash provided by operating activities.

Liquidity and Financial Position

Valero repaid the outstanding principal balances of $100 million of its 7.65% Debentures that matured in July and $426 million of its 3.400% Senior Notes that matured in September. Valero ended the third quarter of 2026 with $8.6 billion of total debt, $2.4 billion of total finance lease obligations, and $9.8 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 4 percent as of September 30, 2026.

“Our third-quarter performance underscores the quality of our assets and our consistent operational, commercial, and financial performance,” said Riggs. “This is a result of the long-term strategy that we’ve been committed to for well over a decade.”

Strategic Update

During the third quarter, Valero completed the FCC Unit optimization project at the St. Charles Refinery on schedule and within budget. The project is now operational and is expected to enhance the refinery’s ability to produce higher-value products.

Conference Call

Valero’s senior management will hold a conference call at 10 a.m. ET today to discuss this earnings release and to provide an update on operations and strategy.

About Valero

Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland, and Latin America. Valero operates 14 petroleum refineries located in the U.S., Canada, and the U.K. with a combined throughput capacity of approximately 3.0 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which produces low-carbon fuels including renewable diesel and sustainable aviation fuel (SAF), with a production capacity of approximately 1.2 billion gallons per year in the U.S. Gulf Coast region. See the annual report on Form 10-K for more information on SAF. Valero also owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.7 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel, and Ethanol segments. Please visit investorvalero.com for more information.

Valero Contacts
Investors:
Brian Donovan, Vice President – Investor Relations, 210-345-1682
Eric Herbort, Director – Investor Relations and Finance, 210-345-3331
Gautam Srivastava, Director – Investor Relations, 210-345-3992

Media:
Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002

Safe-Harbor Statement

Statements contained in this release and the accompanying earnings release tables, or made during the conference call, that state Valero’s or management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “believe,” “expect,” “should,” “estimates,” “intend,” “target,” “commitment,” “plans,” “forecast,” “guidance,” “evaluate,” “opportunity” and other similar expressions identify forward-looking statements. Forward-looking statements in this release and the accompanying earnings release tables include, and those made on the conference call may include, statements relating to Valero’s low-carbon fuels strategy, expected timing, cost and performance of projects, our plans, actions, assets and operations in California and expected timing and cost of obligations and other financial, operational, or strategic statement impacts, future market and industry conditions, future operating and financial performance, including future capital expenditures and capital investments attributable to Valero, future production and manufacturing ability and size, expectations regarding our sources and uses of cash, future legal and regulatory developments, including those with respect to tariffs and low-carbon fuels, expectations and ongoing uncertainties related to our Port Arthur Refinery, and management of future risks, among other matters. It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of Valero’s control, such as legislative or political changes or developments, market dynamics, cyberattacks, weather events, and other matters affecting Valero’s operations and financial performance or the demand for Valero’s products. These factors also include, but are not limited to, the uncertainties that remain with respect to current or contemplated legal, political, or regulatory developments that are adverse to tariffs, global geopolitical and other conflicts and tensions, the impact of inflation and crude oil and petroleum product market disruptions on margins and costs, economic activity levels, actions in response to supply and demand imbalances for refined petroleum products, and the adverse effects the foregoing may have on Valero’s business plan, strategy, operations and financial performance. For more information concerning these and other factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual report on Form 10-K, quarterly reports on Form 10‑Q, and other reports filed with the Securities and Exchange Commission and available on Valero’s website at www.valero.com.

Use of Non-GAAP Financial Information

This earnings release and the accompanying earnings release tables include references to financial measures that are not defined under U.S. generally accepted accounting principles (GAAP). These non-GAAP measures include adjusted net income attributable to Valero stockholders, adjusted earnings per common share – assuming dilution, Refining margin, Renewable Diesel margin, Ethanol margin, adjusted Refining operating income, adjusted Refining operating expenses (excluding depreciation and amortization), adjusted net cash provided by operating activities, and capital investments attributable to Valero. These non-GAAP financial measures have been included to help facilitate the comparison of operating results between periods. See the accompanying earnings release tables for a definition of non-GAAP measures and a reconciliation to their most directly comparable GAAP measures. Note (h) to the earnings release tables provides reasons for the use of these non-GAAP financial measures.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

FINANCIAL HIGHLIGHTS

(millions of dollars, except per share amounts)

(unaudited)

  Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Statement of income data

Revenues

$

46,098

$

32,168

$

122,955

$

92,315

Cost of sales:

Cost of materials and other (a)

32,741

26,132

94,056

76,858

Taxes other than income taxes (b)

1,654

1,826

5,023

4,980

Operating expenses (excluding depreciation and amortization expense reflected below) (c)

1,627

1,614

4,728

4,659

Depreciation and amortization expense

669

824

2,220

2,290

Total cost of sales

36,691

30,396

106,027

88,787

Asset impairment loss (d)

—

—

—

1,131

Other operating expenses (e)

11

5

61

13

General and administrative expenses (excluding depreciation and amortization expense reflected below)

308

246

826

727

Depreciation and amortization expense

15

12

41

51

Operating income

9,073

1,509

16,000

1,606

Other income, net

127

86

375

292

Interest and debt expense, net of capitalized interest

(144

)

(139

)

(429

)

(417

)

Income before income tax expense

9,056

1,456

15,946

1,481

Income tax expense

2,067

390

3,562

404

Net income

6,989

1,066

12,384

1,077

Less: Net income (loss) attributable to noncontrolling interests

161

(29

)

573

(137

)

Net income attributable to Valero Energy Corporation stockholders

$

6,828

$

1,095

$

11,811

$

1,214

Earnings per common share

$

23.90

$

3.54

$

40.30

$

3.89

Weighted-average common shares outstanding (in millions)

285

309

292

311

Earnings per common share – assuming dilution

$

23.89

$

3.53

$

40.29

$

3.89

Weighted-average common shares outstanding – assuming dilution (in millions)

285

309

292

312

  See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

FINANCIAL HIGHLIGHTS BY SEGMENT

(millions of dollars)

(unaudited)

Refining

Renewable
Diesel

Ethanol

Corporate
and
Other (f)

Total

Three months ended September 30, 2026

Revenues:

Revenues from external customers

$

44,369

$

664

$

1,065

$

—

$

46,098

Intersegment revenues

3

1,729

352

(2,084

)

—

Total revenues

44,372

2,393

1,417

(2,084

)

46,098

Cost of sales:

Cost of materials and other

31,988

1,883

962

(2,092

)

32,741

Taxes other than income taxes (b)

1,654

—

—

—

1,654

Operating expenses (excluding depreciation and amortization expense reflected below)

1,376

86

165

—

1,627

Depreciation and amortization expense

580

71

18

—

669

Total cost of sales

35,598

2,040

1,145

(2,092

)

36,691

Other operating expenses (e)

(8

)

—

—

19

11

General and administrative expenses (excluding depreciation and amortization expense reflected below)

—

—

—

308

308

Depreciation and amortization expense

—

—

—

15

15

Operating income by segment

$

8,782

$

353

$

272

$

(334

)

$

9,073

Three months ended September 30, 2025

Revenues:

Revenues from external customers

$

30,414

$

719

$

1,035

$

—

$

32,168

Intersegment revenues

1

484

259

(744

)

—

Total revenues

30,415

1,203

1,294

(744

)

32,168

Cost of sales:

Cost of materials and other

24,858

1,077

942

(745

)

26,132

Taxes other than income taxes (b)

1,826

—

—

—

1,826

Operating expenses (excluding depreciation and amortization expense reflected below) (c)

1,388

78

148

—

1,614

Depreciation and amortization expense

728

76

21

(1

)

824

Total cost of sales

28,800

1,231

1,111

(746

)

30,396

Other operating expenses

5

—

—

—

5

General and administrative expenses (excluding depreciation and amortization expense reflected below)

—

—

—

246

246

Depreciation and amortization expense

—

—

—

12

12

Operating income (loss) by segment

$

1,610

$

(28

)

$

183

$

(256

)

$

1,509

  See Operating Highlights by Segment.

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

FINANCIAL HIGHLIGHTS BY SEGMENT

(millions of dollars)

(unaudited)

  Refining

Renewable
Diesel

Ethanol

Corporate
and
Other (f)

Total

Nine months ended September 30, 2026

Revenues:

Revenues from external customers

$

117,474

$

2,551

$

2,930

$

—

$

122,955

Intersegment revenues

7

3,938

965

(4,910

)

—

Total revenues

117,481

6,489

3,895

(4,910

)

122,955

Cost of sales:

Cost of materials and other (a)

91,434

4,798

2,678

(4,854

)

94,056

Taxes other than income taxes (b)

5,023

—

—

—

5,023

Operating expenses (excluding depreciation and amortization expense reflected below)

3,985

262

481

—

4,728

Depreciation and amortization expense

1,947

220

56

(3

)

2,220

Total cost of sales

102,389

5,280

3,215

(4,857

)

106,027

Other operating expenses (e)

34

—

—

27

61

General and administrative expenses (excluding depreciation and amortization expense reflected below)

—

—

—

826

826

Depreciation and amortization expense

—

—

—

41

41

Operating income by segment

$

15,058

$

1,209

$

680

$

(947

)

$

16,000

Nine months ended September 30, 2025

Revenues:

Revenues from external customers

$

87,495

$

1,777

$

3,043

$

—

$

92,315

Intersegment revenues

5

1,424

681

(2,110

)

—

Total revenues

87,500

3,201

3,724

(2,110

)

92,315

Cost of sales:

Cost of materials and other

73,015

3,016

2,962

(2,135

)

76,858

Taxes other than income taxes (b)

4,980

—

—

—

4,980

Operating expenses (excluding depreciation and amortization expense reflected below) (c)

3,986

228

446

(1

)

4,659

Depreciation and amortization expense

2,029

205

59

(3

)

2,290

Total cost of sales

84,010

3,449

3,467

(2,139

)

88,787

Asset impairment loss (d)

1,131

—

—

—

1,131

Other operating expenses

13

—

—

—

13

General and administrative expenses (excluding depreciation and amortization expense reflected below)

—

—

—

727

727

Depreciation and amortization expense

—

—

—

51

51

Operating income (loss) by segment

$

2,346

$

(248

)

$

257

$

(749

)

$

1,606

  See Operating Highlights by Segment.

See Notes to Earnings Release Tables.

  VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS

REPORTED UNDER U.S. GAAP (h)

(millions of dollars, except per share amounts)

(unaudited)

  Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Reconciliation of net income attributable to Valero Energy Corporation stockholders to adjusted net income attributable to Valero Energy Corporation stockholders

Net income attributable to Valero Energy Corporation stockholders

$

6,828

$

1,095

$

11,811

$

1,214

Adjustments:

Last-in, first-out (LIFO) liquidation adjustment (a)

—

—

(44

)

—

Income tax expense related to the LIFO liquidation adjustment

—

—

10

—

LIFO liquidation adjustment, net of taxes

—

—

(34

)

—

Employee retention and separation costs (c)

—

50

—

50

Income tax benefit related to employee retention and separation costs

—

(11

)

—

(11

)

Employee retention and separation costs, net of taxes

—

39

—

39

Asset impairment loss (d)

—

—

—

1,131

Income tax benefit related to asset impairment loss

—

—

—

(254

)

Asset impairment loss, net of taxes

—

—

—

877

Port Arthur Refinery fire expenses (e)

4

—

19

—

Income tax benefit related to Port Arthur Refinery fire expenses

(1

)

—

(5

)

—

Port Arthur Refinery fire expenses, net of taxes

3

—

14

—

Total adjustments

3

39

(20

)

916

Adjusted net income attributable to Valero Energy Corporation stockholders

$

6,831

$

1,134

$

11,791

$

2,130

Reconciliation of earnings per common share – assuming dilution to adjusted earnings per common share – assuming dilution

Earnings per common share – assuming dilution

$

23.89

$

3.53

$

40.29

$

3.89

Adjustments:

LIFO liquidation adjustment (a)

—

—

(0.12

)

—

Employee retention and separation costs (c)

—

0.13

—

0.12

Asset impairment loss (d)

—

—

—

2.81

Port Arthur Refinery fire expenses (e)

0.01

—

0.05

—

Total adjustments

0.01

0.13

(0.07

)

2.93

Adjusted earnings per common share – assuming dilution

$

23.90

$

3.66

$

40.22

$

6.82

  See Notes to Earnings Release Tables.

  VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS

REPORTED UNDER U.S. GAAP (h)

(millions of dollars)

(unaudited)

  Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Reconciliation of operating income (loss) by segment to segment margin, and reconciliation of operating income (loss) by segment to adjusted operating income by segment

Refining segment

Refining operating income

$

8,782

$

1,610

$

15,058

$

2,346

Adjustments:

LIFO liquidation adjustment (a)

—

—

(44

)

—

Operating expenses (excluding depreciation and amortization expense reflected below) (c)

1,376

1,388

3,985

3,986

Depreciation and amortization expense

580

728

1,947

2,029

Asset impairment loss (d)

—

—

—

1,131

Other operating expenses (e)

(8

)

5

34

13

Refining margin

$

10,730

$

3,731

$

20,980

$

9,505

Refining operating income

$

8,782

$

1,610

$

15,058

$

2,346

Adjustments:

LIFO liquidation adjustment (a)

—

—

(44

)

—

Employee retention and separation costs (c)

—

50

—

50

Asset impairment loss (d)

—

—

—

1,131

Other operating expenses (e)

(8

)

5

34

13

Adjusted Refining operating income

$

8,774

$

1,665

$

15,048

$

3,540

Renewable Diesel segment

Renewable Diesel operating income (loss)

$

353

$

(28

)

$

1,209

$

(248

)

Adjustments:

Operating expenses (excluding depreciation and amortization expense reflected below)

86

78

262

228

Depreciation and amortization expense

71

76

220

205

Renewable Diesel margin

$

510

$

126

$

1,691

$

185

Ethanol segment

Ethanol operating income

$

272

$

183

$

680

$

257

Adjustments:

Operating expenses (excluding depreciation and amortization expense reflected below)

165

148

481

446

Depreciation and amortization expense

18

21

56

59

Ethanol margin

$

455

$

352

$

1,217

$

762

  See Notes to Earnings Release Tables.

  VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS

REPORTED UNDER U.S. GAAP (h)

(millions of dollars)

(unaudited)

  Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Reconciliation of Refining segment operating income (loss) to Refining margin (by region), and reconciliation of Refining segment operating income (loss) to adjusted Refining segment operating income (by region) (i)

U.S. Gulf Coast region

Refining operating income

$

5,246

$

940

$

9,479

$

2,123

Adjustments:

Operating expenses (excluding depreciation and amortization expense reflected below)

838

740

2,389

2,197

Depreciation and amortization expense

397

391

1,179

1,154

Other operating expenses (e)

(9

)

2

25

9

Refining margin

$

6,472

$

2,073

$

13,072

$

5,483

Refining operating income

$

5,246

$

940

$

9,479

$

2,123

Adjustment: Other operating expenses (e)

(9

)

2

25

9

Adjusted Refining operating income

$

5,237

$

942

$

9,504

$

2,132

U.S. Mid-Continent region

Refining operating income

$

1,394

$

188

$

2,192

$

365

Adjustments:

Operating expenses (excluding depreciation and amortization expense reflected below)

225

210

632

605

Depreciation and amortization expense

86

84

264

238

Other operating expenses

1

3

4

3

Refining margin

$

1,706

$

485

$

3,092

$

1,211

Refining operating income

$

1,394

$

188

$

2,192

$

365

Adjustment: Other operating expenses

1

3

4

3

Adjusted Refining operating income

$

1,395

$

191

$

2,196

$

368

  See Notes to Earnings Release Tables.

  VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS

REPORTED UNDER U.S. GAAP (h)

(millions of dollars)

(unaudited)

  Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Reconciliation of Refining segment operating income (loss) to Refining margin (by region), and reconciliation of Refining segment operating income (loss) to adjusted Refining segment operating income (by region) (i) (continued)

North Atlantic region

Refining operating income

$

1,837

$

532

$

2,962

$

967

Adjustments:

Operating expenses (excluding depreciation and amortization expense reflected below)

213

199

616

553

Depreciation and amortization expense

77

80

241

224

Refining margin

$

2,127

$

811

$

3,819

$

1,744

U.S. West Coast region (f)

Refining operating income (loss)

$

305

$

(50

)

$

425

$

(1,109

)

Adjustments:

LIFO liquidation adjustment (a)

—

—

(44

)

—

Operating expenses (excluding depreciation and amortization expense reflected below) (c)

100

239

348

631

Depreciation and amortization expense (g)

20

173

263

413

Asset impairment loss (d)

—

—

—

1,131

Other operating expenses

—

—

5

1

Refining margin

$

425

$

362

$

997

$

1,067

Refining operating income (loss)

$

305

$

(50

)

$

425

$

(1,109

)

Adjustments:

LIFO liquidation adjustment (a)

—

—

(44

)

—

Employee retention and separation costs (c)

—

50

—

50

Asset impairment loss (d)

—

—

—

1,131

Other operating expenses

—

—

5

1

Adjusted Refining operating income

$

305

$

—

$

386

$

73

  See Notes to Earnings Release Tables.

  VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

REFINING SEGMENT OPERATING HIGHLIGHTS

(millions of dollars, except per barrel amounts)

(unaudited)

  Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Throughput volumes (thousand barrels per day)

Feedstocks:

Heavy sour crude oil

512

506

492

538

Medium/light sour crude oil

274

281

274

252

Sweet crude oil

1,594

1,661

1,572

1,577

Residuals

109

204

137

156

Other feedstocks

117

89

121

82

Total feedstocks

2,606

2,741

2,596

2,605

Blendstocks and other

366

346

350

342

Total throughput volumes

2,972

3,087

2,946

2,947

Yields (thousand barrels per day)

Gasolines and blendstocks

1,402

1,517

1,405

1,446

Distillates

1,162

1,201

1,146

1,130

Other products (j)

430

399

422

396

Total yields

2,994

3,117

2,973

2,972

Operating statistics (h) (k)

Refining margin

$

10,730

$

3,731

$

20,980

$

9,505

Adjusted Refining operating income

$

8,774

$

1,665

$

15,048

$

3,540

Throughput volumes (thousand barrels per day)

2,972

3,087

2,946

2,947

Refining margin per barrel of throughput

$

39.24

$

13.14

$

26.09

$

11.82

Less:

Adjusted operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput

5.03

4.71

4.96

4.89

Depreciation and amortization expense per barrel of throughput

2.12

2.57

2.42

2.53

Adjusted Refining operating income per barrel of throughput

$

32.09

$

5.86

$

18.71

$

4.40

  See Notes to Earnings Release Tables.

  VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RENEWABLE DIESEL SEGMENT OPERATING HIGHLIGHTS

(millions of dollars, except per gallon amounts)

(unaudited)

  Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Operating statistics (h) (k)

Renewable Diesel margin

$

510

$

126

$

1,691

$

185

Renewable Diesel operating income (loss)

$

353

$

(28

)

$

1,209

$

(248

)

Sales volumes (thousand gallons per day)

3,423

2,717

3,429

2,629

Renewable Diesel margin per gallon of sales

$

1.62

$

0.50

$

1.81

$

0.26

Less:

Operating expenses (excluding depreciation and amortization expense reflected below) per gallon of sales

0.28

0.31

0.28

0.32

Depreciation and amortization expense per gallon of sales

0.22

0.30

0.24

0.28

Renewable Diesel operating income (loss) per gallon of sales

$

1.12

$

(0.11

)

$

1.29

$

(0.34

)

  See Notes to Earnings Release Tables.

  VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

ETHANOL SEGMENT OPERATING HIGHLIGHTS

(millions of dollars, except per gallon amounts)

(unaudited)

  Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Operating statistics (h) (k)

Ethanol margin

$

455

$

352

$

1,217

$

762

Ethanol operating income

$

272

$

183

$

680

$

257

Production volumes (thousand gallons per day)

4,799

4,635

4,695

4,562

Ethanol margin per gallon of production

$

1.03

$

0.83

$

0.95

$

0.62

Less:

Operating expenses (excluding depreciation and amortization expense reflected below) per gallon of production

0.37

0.35

0.38

0.36

Depreciation and amortization expense per gallon of production

0.04

0.05

0.04

0.05

Ethanol operating income per gallon of production

$

0.62

$

0.43

$

0.53

$

0.21

  See Notes to Earnings Release Tables.

  VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION

(millions of dollars, except per barrel amounts)

(unaudited)

  Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Operating statistics by region (i)

U.S. Gulf Coast region (h) (k)

Refining margin

$

6,472

$

2,073

$

13,072

$

5,483

Adjusted Refining operating income

$

5,237

$

942

$

9,504

$

2,132

Throughput volumes (thousand barrels per day)

1,874

1,846

1,819

1,787

Refining margin per barrel of throughput

$

37.55

$

12.21

$

26.32

$

11.24

Less:

Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput

4.86

4.36

4.81

4.50

Depreciation and amortization expense per barrel of throughput

2.31

2.30

2.37

2.37

Adjusted Refining operating income per barrel of throughput

$

30.38

$

5.55

$

19.14

$

4.37

U.S. Mid-Continent region (h) (k)

Refining margin

$

1,706

$

485

$

3,092

$

1,211

Adjusted refining operating income

$

1,395

$

191

$

2,196

$

368

Throughput volumes (thousand barrels per day)

472

466

471

448

Refining margin per barrel of throughput

$

39.27

$

11.31

$

24.08

$

9.91

Less:

Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput

5.19

4.90

4.92

4.95

Depreciation and amortization expense per barrel of throughput

1.99

1.96

2.06

1.94

Adjusted refining operating income per barrel of throughput

$

32.09

$

4.45

$

17.10

$

3.02

  See Notes to Earnings Release.

  VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION

(millions of dollars, except per barrel amounts)

(unaudited)

  Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Operating statistics by region (i) (continued)

North Atlantic region (h) (k)

Refining margin

$

2,127

$

811

$

3,819

$

1,744

Refining operating income

$

1,837

$

532

$

2,962

$

967

Throughput volumes (thousand barrels per day)

507

516

506

468

Refining margin per barrel of throughput

$

45.58

$

17.10

$

27.64

$

13.65

Less:

Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput

4.58

4.20

4.46

4.33

Depreciation and amortization expense per barrel of throughput

1.64

1.70

1.75

1.75

Refining operating income per barrel of throughput

$

39.36

$

11.20

$

21.43

$

7.57

U.S. West Coast region (f) (h) (k)

Refining margin

$

425

$

362

$

997

$

1,067

Adjusted Refining operating income

$

305

$

—

$

386

$

73

Throughput volumes (thousand barrels per day)

119

259

150

244

Refining margin per barrel of throughput

$

38.81

$

15.22

$

24.39

$

16.00

Less:

Adjusted operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput

9.10

7.94

8.50

8.72

Depreciation and amortization expense per barrel of throughput (g)

1.85

7.29

6.44

6.20

Adjusted Refining operating income (loss) per barrel of throughput

$

27.86

$

(0.01

)

$

9.45

$

1.08

  See Notes to Earnings Release Tables.

  VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS

(unaudited)

  Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Refining

Feedstocks (dollars per barrel)

Brent crude oil

$

91.61

$

68.14

$

88.87

$

69.87

Brent less West Texas Intermediate (WTI) crude oil

5.37

3.11

5.06

3.08

Brent less WTI Houston crude oil

4.29

2.09

3.44

2.02

Brent less Dated Brent crude oil

(5.75

)

(0.91

)

(5.49

)

(0.91

)

Brent less Argus Sour Crude Index crude oil

6.07

3.46

4.71

2.68

Brent less Maya crude oil

13.37

7.14

10.97

8.35

Brent less Western Canadian Select Houston crude oil

16.49

6.93

14.66

6.81

WTI crude oil

86.24

65.03

83.81

66.79

Natural gas (dollars per million British thermal units)

2.47

2.70

2.68

2.97

Renewable volume obligation (RVO) (dollars per barrel) (l)

14.34

6.38

12.51

5.76

Product margins (RVO adjusted unless otherwise noted)

(dollars per barrel)

U.S. Gulf Coast:

Conventional Blendstock for Oxygenate Blending (CBOB) gasoline less Brent

24.08

7.78

14.17

6.78

Ultra-low-sulfur (ULS) diesel less Brent

72.27

21.05

47.80

17.51

Polymer Grade Propylene less Brent (not RVO adjusted)

(17.02

)

(8.22

)

(13.22

)

(3.07

)

U.S. Mid-Continent:

CBOB gasoline less WTI

34.16

12.79

17.87

12.32

ULS diesel less WTI

73.54

26.16

46.49

21.09

North Atlantic:

CBOB gasoline less Brent

33.46

14.58

20.56

10.97

ULS diesel less Brent

77.12

24.64

53.72

21.44

U.S. West Coast:

California Reformulated Gasoline Blendstock for Oxygenate Blending 87 gasoline less Brent

50.89

26.69

40.62

28.94

California Air Resources Board diesel less Brent

81.83

29.83

56.98

23.47

  See Notes to Earnings Release Tables.

  VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS

(unaudited)

  Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Renewable Diesel

New York Mercantile Exchange ULS diesel (dollars per gallon)

$

4.33

$

2.35

$

3.66

$

2.30

Biodiesel Renewable Identification Number (RIN) (dollars per RIN)

2.23

1.13

1.93

1.00

California Low-Carbon Fuel Standard carbon credit (dollars per metric ton)

80.60

53.36

71.43

57.30

U.S. Gulf Coast (USGC) used cooking oil (dollars per pound)

0.76

0.62

0.74

0.56

USGC distillers corn oil (dollars per pound)

0.77

0.64

0.76

0.58

USGC fancy bleachable tallow (dollars per pound)

0.75

0.62

0.73

0.56

Ethanol

Chicago Board of Trade corn (dollars per bushel)

4.78

4.02

4.53

4.42

New York Harbor ethanol (dollars per gallon)

2.10

1.96

1.97

1.87

  VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

OTHER FINANCIAL DATA

(millions of dollars)

(unaudited)

  September 30,

December 31,

2026

2025

Balance sheet data

Current assets

$

33,561

$

23,210

Cash and cash equivalents included in current assets

9,840

4,688

Inventories included in current assets

7,611

7,591

Current liabilities

19,469

14,109

Valero Energy Corporation stockholders’ equity

27,974

23,725

Total equity

31,084

26,605

Debt and finance lease obligations:

Debt –

Current portion of debt (excluding variable interest entities (VIEs))

$

727

$

672

Debt, less current portion of debt (excluding VIEs)

7,849

7,566

Total debt (excluding VIEs)

8,576

8,238

Current portion of debt attributable to VIEs

3

23

Total debt

8,579

8,261

Finance lease obligations –

Current portion of finance lease obligations (excluding VIEs)

233

228

Finance lease obligations, less current portion (excluding VIEs)

1,567

1,488

Total finance lease obligations (excluding VIEs)

1,800

1,716

Current portion of finance lease obligations attributable to VIEs

26

26

Finance lease obligations, less current portion attributable to VIEs

596

616

Total finance lease obligations attributable to VIEs

622

642

Total finance lease obligations

2,422

2,358

Total debt and finance lease obligations

$

11,001

$

10,619

  Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Reconciliation of net cash provided by operating activities to adjusted net cash provided by operating activities (h)

Net cash provided by operating activities

$

6,932

$

1,881

$

13,902

$

3,769

Exclude:

Changes in current assets and current liabilities

(526

)

325

(123

)

157

Diamond Green Diesel LLC’s (DGD) adjusted net cash provided by (used in) operating activities attributable to the other joint venture member’s ownership interest in DGD

205

(86

)

696

(239

)

Adjusted net cash provided by operating activities

$

7,253

$

1,642

$

13,329

$

3,851

  See Notes to Earnings Release Tables.

  VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

OTHER FINANCIAL DATA

(millions of dollars, except per share amounts)

(unaudited)

  Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Reconciliation of capital investments to capital investments attributable to Valero (h)

Capital expenditures (excluding VIEs)

$

272

$

171

$

654

$

504

Capital expenditures of VIEs:

DGD

(3

)

4

4

67

Other VIEs

1

2

3

5

Deferred turnaround and catalyst cost expenditures (excluding VIEs)

155

187

529

808

Deferred turnaround and catalyst cost expenditures of DGD

7

45

40

91

Investments in nonconsolidated joint ventures

—

—

—

1

Capital investments

432

409

1,230

1,476

Adjustments:

DGD’s capital investments attributable to the other joint venture member

(2

)

(25

)

(22

)

(79

)

Capital expenditures of other VIEs

(1

)

(2

)

(3

)

(5

)

Capital investments attributable to Valero

$

429

$

382

$

1,205

$

1,392

Dividends per common share

$

1.20

$

1.13

$

3.60

$

3.39

  See Notes to Earnings Release Tables.

  VALERO ENERGY CORPORATION

NOTES TO EARNINGS RELEASE TABLES

(a)

Cost of materials and other for the nine months ended September 30, 2026 includes a benefit of $44 million resulting from the liquidation of certain LIFO inventory layers attributable to our Refining segment. Inventory levels for our West Coast refining operations decreased during 2026 due to the phased idling of processing units and cessation of refining operations at our Benicia Refinery, which was completed by the end of April 2026. Consequently, inventory levels at December 31, 2026 are expected to remain below those at December 31, 2025.

(b)

Taxes other than income taxes includes excise taxes on sales by certain of our foreign operations.

(c)

Operating expenses (excluding depreciation and amortization expense) for the three and nine months ended September 30, 2025 includes employee retention and separation costs of $50 million related to the Benicia Refinery. In connection with our plan to cease refining operations at the Benicia Refinery, we implemented a transition plan for eligible employees that included retention incentive payments and separation benefits.

(d)

In March 2025, we approved a plan to idle the processing units and cease refining operations at our Benicia Refinery by the end of April 2026. In addition, we considered strategic alternatives for our remaining operations in California. As a result, we evaluated the assets of the Benicia and Wilmington refineries for impairment as of March 31, 2025 and concluded that the carrying values of these assets were not recoverable. Therefore, we reduced the carrying values of the Benicia and Wilmington refineries to their estimated fair values and recognized a combined asset impairment loss of $1.1 billion in the nine months ended September 30, 2025.

(e)

Other operating expenses for the three and nine months ended September 30, 2026 includes $4 million and $19 million, respectively, of repair costs directly attributable to the March 2026 incident at our Port Arthur Refinery.

(f)

During the first quarter of 2026, we began idling the processing units through a phased approach and ceased operation of the fuel production units at our Benicia Refinery. In accordance with our plan, full idling of all processing units was completed in April 2026. Effective in the second quarter of 2026, activities associated with the decommissioning and redevelopment of our Benicia Refinery are reported within Corporate and Other.

(g)

Depreciation and amortization expense includes incremental depreciation expense of approximately $133 million in the nine months ended September 30, 2026 and approximately $100 million and $200 million in the three and nine months ended September 30, 2025, respectively, related to the Benicia Refinery. In connection with our phased plan to idle the processing units and cease refining operations at our Benicia Refinery, we shortened the estimated useful life of the refinery, and as a result, the revised carrying value of the refinery’s long-lived assets was depreciated to the estimated salvage value.

(h)

We use certain financial measures (as noted below) in the earnings release tables and accompanying earnings release that are not defined under GAAP and are considered to be non-GAAP measures.

We have defined these non-GAAP measures and believe they are useful to the external users of our financial statements, including industry analysts, investors, lenders, and rating agencies. We believe these measures are useful to assess our ongoing financial performance because, when reconciled to their most comparable GAAP measures, they provide improved comparability between periods after adjusting for certain items that we believe are not indicative of our core operating performance and that may obscure our underlying business results and trends. These non-GAAP measures should not be considered as alternatives to their most comparable GAAP measures nor should they be considered in isolation or as a substitute for an analysis of our results of operations as reported under GAAP. In addition, these non-GAAP measures may not be comparable to similarly titled measures used by other companies because we may define them differently, which diminishes their utility.

Non-GAAP measures are as follows:

Adjusted net income attributable to Valero Energy Corporation stockholders is defined as net income attributable to Valero Energy Corporation stockholders adjusted to reflect the items noted below, along with their related income tax effect, as applicable. The income tax effect for the adjustments was calculated using a combined U.S. federal and state statutory rate of 22.5 percent. We have adjusted for these items because we believe that they are not indicative of our core operating performance and that their adjustment results in an important measure of our ongoing financial performance to better assess our underlying business results and trends. The basis for our belief with respect to each adjustment is provided below. LIFO liquidation adjustment – Generally, the LIFO inventory valuation method provides for the matching of current costs with current revenues. However, a LIFO liquidation results in a portion of our current-year cost of sales being impacted by historical costs, which obscures our current-year financial performance. Therefore, we have excluded the historical cost impact from adjusted net income attributable to Valero Energy Corporation stockholders. See note (a) for additional details. Employee retention and separation costs – The employee retention and separation costs related to the Benicia Refinery (see note (c)) are not indicative of our ongoing operations. Asset impairment loss – The asset impairment loss attributable to our Benicia and Wilmington refineries (see note (d)) is not indicative of our ongoing operations or our expectations about the profitability of our refining business. Port Arthur Refinery fire expenses – The expenses directly attributable to the March 2026 incident at our Port Arthur Refinery (see note (e)) are specific to that incident and are not indicative of our ongoing operations. Adjusted earnings per common share – assuming dilution is defined as adjusted net income attributable to Valero Energy Corporation stockholders divided by the number of weighted-average shares outstanding in the applicable period, assuming dilution. Refining margin is defined as Refining segment operating income (loss) excluding the LIFO liquidation adjustment (see note (a)), operating expenses (excluding depreciation and amortization expense), depreciation and amortization expense, the asset impairment loss (see note (d)), and other operating expenses. We believe Refining margin is an important measure of our Refining segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance. Renewable Diesel margin is defined as Renewable Diesel segment operating income (loss) excluding operating expenses (excluding depreciation and amortization expense) and depreciation and amortization expense. We believe Renewable Diesel margin is an important measure of our Renewable Diesel segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance. Ethanol margin is defined as Ethanol segment operating income excluding operating expenses (excluding depreciation and amortization expense) and depreciation and amortization expense. We believe Ethanol margin is an important measure of our Ethanol segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance. Adjusted Refining operating income is defined as Refining segment operating income (loss) excluding the LIFO liquidation adjustment (see note (a)), employee retention and separation costs (see note (c)), the asset impairment loss (see note (d)), and other operating expenses. We believe adjusted Refining operating income is an important measure of our Refining segment’s operating and financial performance because it excludes items that are not indicative of that segment’s core operating performance. Adjusted Refining operating expenses (excluding depreciation and amortization expense) is defined as Refining segment operating expenses (excluding depreciation and amortization expense) excluding employee retention and separation costs (see note (c)). We believe adjusted Refining operating expense (excluding depreciation and amortization expense) is an important measure of our Refining segment’s operating and financial performance because it excludes items that are not indicative of that segment’s core operating performance. Adjusted Refining operating expenses (excluding depreciation and amortization expense) for the Refining segment and the U.S. West Coast region is calculated as follows (in millions): Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

Refining segment

Operating expenses (excluding depreciation and amortization expense)

$

1,376

$

1,388

$

3,985

$

3,986

Adjustment: Employee retention and separation costs

—

(50

)

—

(50

)

Adjusted operating expenses (excluding depreciation and amortization expense)

$

1,376

$

1,338

$

3,985

$

3,936

U.S. West Coast region

Operating expenses (excluding depreciation and amortization expense)

$

100

$

239

$

348

$

631

Adjustment: Employee retention and separation costs

—

(50

)

—

(50

)

Adjusted operating expenses (excluding depreciation and amortization expense)

$

100

$

189

$

348

$

581

Adjusted net cash provided by operating activities is defined as net cash provided by operating activities excluding the items noted below. We believe adjusted net cash provided by operating activities is an important measure of our ongoing financial performance to better assess our ability to generate cash to fund our investing and financing activities. The basis for our belief with respect to each excluded item is provided below. Changes in current assets and current liabilities – Current assets net of current liabilities represents our operating liquidity. We believe that the change in our operating liquidity from period to period does not represent cash generated by our operations that is available to fund our investing and financing activities. DGD’s adjusted net cash provided by (used in) operating activities attributable to the other joint venture member’s ownership interest in DGD – We are a 50 percent joint venture member in DGD and we consolidate DGD’s financial statements. Our Renewable Diesel segment includes the operations of DGD and the associated activities to market its products. Because we consolidate DGD’s financial statements, all of DGD’s net cash provided by (used in) operating activities (or operating cash flow) is included in our consolidated net cash provided by operating activities. In general, DGD’s members use DGD’s operating cash flow (excluding changes in its current assets and current liabilities) to fund its capital investments rather than distribute all of that cash to themselves. Nevertheless, DGD’s operating cash flow is effectively attributable to each member and only a portion of DGD’s operating cash flow should be attributed to our net cash provided by operating activities. Therefore, we have adjusted our net cash provided by operating activities for the portion of DGD’s operating cash flow attributable to the other joint venture member’s ownership interest because we believe that it more accurately reflects the operating cash flow available to us to fund our investing and financing activities. The adjustment is calculated as follows (in millions):

Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

DGD operating cash flow data

Net cash provided by (used in) operating activities

$

312

$

(263

)

$

551

$

(364

)

Exclude: Changes in current assets and current liabilities

(99

)

(90

)

(841

)

115

Adjusted net cash provided by (used in) operating activities

411

(173

)

1,392

(479

)

Other joint venture member’s ownership interest

50

%

50

%

50

%

50

%

DGD’s adjusted net cash provided by (used in) operating activities attributable to the other joint venture member’s ownership interest in DGD

$

205

$

(86

)

$

696

$

(239

)

Capital investments attributable to Valero is defined as all capital expenditures and deferred turnaround and catalyst cost expenditures presented in our consolidated statements of cash flows, excluding the portion of DGD’s capital investments attributable to the other joint venture member and all of the capital expenditures of VIEs other than DGD. In general, DGD’s members use DGD’s operating cash flow (excluding changes in its current assets and current liabilities) to fund its capital investments rather than distribute all of that cash to themselves. Because DGD’s operating cash flow is effectively attributable to each member, only 50 percent of DGD’s capital investments should be attributed to our net share of total capital investments. We also exclude the capital expenditures of other VIEs that we consolidate because we do not operate those VIEs. We believe capital investments attributable to Valero is an important measure because it more accurately reflects our capital investments.

(i)

The Refining segment regions reflected herein contain the following refineries: U.S. Gulf Coast- Corpus Christi East, Corpus Christi West, Houston, Meraux, Port Arthur, St. Charles, Texas City, and Three Rivers Refineries; U.S. Mid Continent- Ardmore, McKee, and Memphis Refineries; North Atlantic- Pembroke and Quebec City Refineries; and U.S. West Coast- Benicia and Wilmington Refineries. Effective in the second quarter of 2026, activities associated with the decommissioning and redevelopment of our Benicia Refinery are reflected within Corporate and Other.

(j)

Primarily includes petrochemicals, gas oils, No. 6 fuel oil, petroleum coke, sulfur, and asphalt.

  (k)

We use certain operating statistics (as noted below) in the earnings release tables and the accompanying earnings release to evaluate performance between comparable periods. Different companies may calculate them in different ways.

All per barrel of throughput, per gallon of sales, and per gallon of production amounts are calculated by dividing the associated dollar amount by the throughput volumes, sales volumes, and production volumes for the period, as applicable.

Throughput volumes, sales volumes, and production volumes are calculated by multiplying throughput volumes per day, sales volumes per day, and production volumes per day (as provided in the accompanying tables), respectively, by the number of days in the applicable period. We use throughput volumes, sales volumes, and production volumes for the Refining segment, Renewable Diesel segment, and Ethanol segment, respectively, due to their general use by others who operate facilities similar to those included in our segments. We believe the use of such volumes results in per unit amounts that are most representative of the product margins generated and the operating costs incurred as a result of our operation of those facilities.

  (l)

The RVO cost represents the average market cost on a per barrel basis to comply with the Renewable Fuel Standard program. The RVO cost is calculated by multiplying (i) the average market price during the applicable period for the RINs associated with each class of renewable fuel (i.e., biomass-based diesel, cellulosic biofuel, advanced biofuel, and total renewable fuel) by (ii) the quotas for the volume of each class of renewable fuel that must be blended into petroleum-based transportation fuels consumed in the U.S., as set or proposed by the U.S. Environmental Protection Agency, on a percentage basis for each class of renewable fuel and adding together the results of each calculation.

More News From Valero Energy Corporation

Key Takeaways Valero expects heavy sour crude discounts to remain elevated, supporting favorable refining margins.VLO processed 514 MBPD of heavy sour crude in second-quarter 2026, highlighting its feedstock flexibility.Valero anticipates record Venezuelan heavy-crude runs, while Canadian supplies offer an additional option.
Valero Energy Corporation (VLO - Free Report) is well positioned to benefit from a favorable crude-sourcing backdrop, with management expecting crude-quality discounts, particularly for heavy sour grades, to remain stronger than historical levels. The outlook supports refining economics because discounted feedstocks can widen the spread between crude input costs and refined-product values. The U.S. Gulf Coast remains a key crude-sourcing hub for Valero, offering access to oil from domestic producers, Canada and Venezuela.

The sourcing advantage fits well with VLO’s operating footprint. The company runs 14 refineries across the United States, Canada and the U.K., with roughly 3 million barrels per day of throughput capacity, giving it meaningful flexibility across crude grades. In the second quarter, Valero processed 514 thousand barrels per day (MBPD) of heavy sour crude, highlighting its ability to handle these barrels at scale. Management expects Venezuelan heavy-crude runs to exceed historical highs in the coming months, while Canadian heavy remains another important feedstock option.

The sourcing flexibility gives Valero greater room to shift toward the most attractive barrels as regional pricing changes. Management identified lower delivered crude costs as a key tailwind entering the third quarter and noted that several crude grades were being purchased at discounts to benchmarks. VLO is focusing on shorter-cycle projects to improve crude and product optionality across its refining system. As heavier crude availability improves and crude-quality discounts remain supportive, Valero’s feedstock flexibility strengthens its ability to capture favorable refining economics.

Heavy Crude Flexibility Supports PSX & MPC Refining MarginsHeavy-crude processing capability remains an important advantage for complex U.S. refiners such as Phillips 66 (PSX - Free Report) and Marathon Petroleum Corporation (MPC - Free Report) , as discounted sour barrels improve feedstock economics and support stronger margin capture.

Phillips 66 is well-positioned to benefit from wider heavy-crude discounts through a refining system designed to process medium and heavy grades while retaining flexibility to shift toward lighter crude. The refiner has highlighted its peer-leading bottoms upgrading capacity, which enhances its ability to capitalize on discounted feedstocks without sacrificing crude-slate flexibility. The earnings leverage is meaningful, with PSX estimating that every $1-per-barrel widening in the West Texas Intermediate-Western Canadian Select (“WCS”) differential adds about $140 million to annual EBITDA. This flexibility, along with access to Canadian crude and strong Central Corridor positioning, strengthens Phillips 66’s refining economics when heavy-crude differentials widen.

Marathon Petroleum has substantial exposure to sour-crude economics across its refining network. The refiner expects roughly half of the crude processed at its refineries in 2026 to be sour, with its sour basket including WCS, Maya, ASCI and Alaska North Slope grades. Marathon Petroleum estimates that a $1-per-barrel change in sour crude differentials affects annual Refining & Marketing adjusted EBITDA by about $520 million, highlighting the importance of feedstock discounts to profitability. MPC benefits from advantaged Canadian crude logistics at several Mid-Continent refineries, while its broader system provides flexibility to optimize crude sourcing and product placement across regions.

VLO’s Price Performance, Valuation & EstimatesValero shares have risen 183.5% over the past year compared with the industry’s 149.1% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, VLO trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 9.75X. This is above the broader industry average of 6.56X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for VLO's 2026 earnings has seen upward revisions over the past seven days.

Image Source: Zacks Investment Research

VLO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways VLO trades at 8.95x EV/EBITDA versus the industry's 6.07x, but its fundamentals justify the premium.Access to cheaper heavy crude and constrained global refining capacity support VLO's refining margins.VLO gained 161.8% over the past year, backed by a strong balance sheet and upward estimate revisions. Valero Energy Corporation (VLO - Free Report) is currently considered expensive on a relative basis, with the stock trading at an 8.95x trailing 12-month Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA), which is a premium compared with the broader industry average of 6.07x. Two other refiners, Phillips 66 (PSX - Free Report) and Par Pacific Holdings, Inc. (PARR - Free Report) , are currently trading at 12.02x trailing 12-month EV/EBITDA and 3.59x trailing 12-month EV/EBITDA, respectively.

Image Source: Zacks Investment Research

Is the premium valuation justified? Before making investment decisions, one should consider the company's overall business environment and fundamentals.

VLO's Advantageous Position in Heavy Crude Aids It

The Middle East tensions are driving crude oil prices higher, with West Texas Intermediate (“WTI”) trading above $90 per barrel, according to data from Oilprice.com. The high crude price has significantly increased input costs for refiners such as VLO, PSX and PARR. However, unlike many refiners, Valero Energy has a heavy crude advantage, as heavy crude is cheaper than light crude like WTI.

Regarding the company’s access to diverse crude feedstocks, Valero has an advantage because its Gulf Coast refineries can buy crude oil from many low-cost sources, including the United States, Canada and Venezuela. This gives the company more flexibility to purchase cheaper oil, which helps keep refining costs low and can boost profits when competitors have fewer sourcing options.

Constrained Global Refining Capacity is a Boon for VLO?

Global refining capacity is constrained and fuel inventories are low. On the demand side, gasoline, diesel and jet fuel remain resilient. This means people are still driving and flying quite often, while diesel demand suggests transportation, freight, agriculture and industrial activity are still holding up. As a result, with busy refineries and fuel not in abundant supply, refining margins for refiners are quite strong.

With crude prices likely to remain high, investors shouldn’t allocate their money only to exploration and production companies but also to refining players like VLO, even though high crude prices have been increasing refiners’ input costs.

Strong Balance Sheet Provides Support for VLO

The leading refining company ended the June quarter of 2026 with a net debt-to-capitalization of just 11%.  It added $2.1 billion to its cash balance during the June quarter, making its financial position even stronger. It also reported $5.3 billion of available liquidity excluding cash, providing significant financial flexibility.

Thus, the company can lean on its balance sheet to combat an uncertain business environment, reflecting its relatively stable business model compared to other players with a weaker balance sheet.

Time to Bet on the Stock?

Valero, with 14 refineries and a combined throughput capacity of roughly 3 million barrels per day, has witnessed upward earnings estimate revisions for 2026 over the past seven days.

Image Source: Zacks Investment Research

All the positive developments are getting reflected in the price chart. Over the past year, VLO jumped 161.8%, outperforming PARR’s 138% surge and PSX’s 107.2% gain. Thus, considering the business backdrop, it’s worth paying a premium for VLO stock, which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Image Source: Zacks Investment Research

SummaryValero Energy is rated HOLD, as recent strong profits are seen as temporary, driven by geopolitical commodity price shocks.VLO's primary profit driver remains oil refining, with limited growth from renewable diesel and ethanol segments; diversification efforts are modest.Future earnings face headwinds from a projected normalization in crack spreads and commodity prices, likely reducing margins and returns.Valero maintains a disciplined dividend policy with a forward yield of 1.14% and consistent payout ratios, appealing to income-focused investors. bomboman/iStock via Getty Images

Valero Energy Corporation is a multinational company engaged in the production and marketing of low-carbon, petroleum-based liquid transportation fuels, as well as petrochemical products. Valero operates 14 oil refineries located in the United States, Canada, and the

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Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Trump floated banning US diesel exports and refiners immediately started selling off, but the gap between a presidential preference and a signed policy is where billions in market-leading gains now hang.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

President Donald Trump, speaking on September 22, 2026, said, “I’ve said let’s not send out the diesel. We make a lot of diesel.” The Treasury secretary later confirmed the administration is studying a full or partial ban on US diesel exports, and a 90-day restriction was being prepared, a claim the White House then denied.

Valero Energy (NYSE:VLO | VLO Price Prediction) closed at $375.93, down 0.32% on the day and 6.8% for the week. Marathon Petroleum (NYSE:MPC) finished at $388.51, off 0.3% and down 6.17% for the week. Phillips 66 (NYSE:PSX) closed at $256.46, effectively flat and off 3.08% for the week. All three remain much higher for the year. The distinction matters because the policy remains only a proposal.

What Was Said, and What Was Not The president stated a preference. The Treasury described a study. A reported 90-day ban surfaced and was denied. Nothing has been signed or scheduled.

Retail gasoline is the political backdrop: $4.478 per gallon on September 21, up 10.6% in a month. That pressure keeps the option on the table.

WTI closed at $96.41 on September 22, after touching $107.02 on September 15. Elevated crude with tight product inventories makes a domestic-supply argument sound intuitive.

Why a Ban Would Hurt More Than It Helps Gulf Coast refineries were built to serve export markets. If diesel cannot ship, runs decline, which cuts gasoline too, because you cannot choose which molecules to make from a barrel of crude.

Valero’s Gary Simmons said on the first-quarter 2026 call that “this is not demand destruction; this is insufficient supply to meet demand”. A ban attacks the supply side of the shortage driving prices.

Energy economist Philip Verleger warned a ban would produce “the same long-term effect as President Nixon’s soybean embargo”, meaning buyers permanently rerouted to other suppliers.

Read-Through for the Three Refiners Valero is the most export-levered. Its Q2 2026 refining segment produced $4.5 billion of operating income on 3 million barrels per day of throughput, with US Gulf Coast ULS diesel margins of $43.52 per barrel versus $14.79 a year earlier. Its year-to-date gain of 134.35% is at risk.

Marathon runs the largest system. Q2 R&M adjusted EBITDA reached $6.66 billion at a $36.33 per barrel margin, and management flagged record diesel export volumes from Garyville and Galveston Bay. Shares are up 141.61% year to date.

Phillips 66 is the most diversified, with midstream targeting a $4.5 billion EBITDA run rate by year-end 2027. It is up 102.86% year to date.

Politics That Will Decide This Sen. John Cornyn called a ban “a gimmick”, and Sen. Lisa Murkowski is opposed, while Sen. Dan Sullivan said “The cost of diesel is just too damn high” and Sens. Grassley and Thune are supportive.

American Petroleum Institute CEO Mike Sommers argued: “The answer is more supply and more flexibility.” Energy Secretary Chris Wright said, “you want to keep as much energy flowing as possible”, which reads as skeptical of restriction.

Distillate inventories are near five-year lows, while global refining capacity has closed.

However, that refining margin depends on the spread between crude and product, and policy risk on that spread is unhedgeable. A partial ban would force run cuts.

Watch the next presidential statement and any Federal Register notice. Until one appears, you cannot model this headline.

Contact [email protected] for any questions or corrections.

Nykredit A S acquired a new stake in shares of Valero Energy Corporation (NYSE:VLO – Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 109,357 shares of the oil and gas company’s stock, valued at approximately $28,481,000.

Other institutional investors and hedge funds have also bought and sold shares of the company. Cornerstone Financial Management LLC lifted its holdings in shares of Valero Energy by 57.6% in the 2nd quarter. Cornerstone Financial Management LLC now owns 104 shares of the oil and gas company’s stock valued at $27,000 after buying an additional 38 shares during the period. Whipplewood Advisors LLC lifted its stake in shares of Valero Energy by 3,400.0% in the 1st quarter. Whipplewood Advisors LLC now owns 105 shares of the oil and gas company’s stock valued at $26,000 after purchasing an additional 102 shares during the period. Financial Life Planners purchased a new stake in Valero Energy during the first quarter worth $28,000. Valued Wealth Advisors LLC grew its position in Valero Energy by 134.0% during the first quarter. Valued Wealth Advisors LLC now owns 117 shares of the oil and gas company’s stock valued at $29,000 after buying an additional 67 shares during the period. Finally, Global Assets Advisory LLC acquired a new stake in Valero Energy during the first quarter valued at $33,000. 78.69% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets Several equities analysts recently weighed in on the company. Erste Group Bank lowered Valero Energy from a “buy” rating to a “hold” rating in a research note on Thursday, August 27th. TD Cowen upped their target price on Valero Energy from $338.00 to $350.00 and gave the stock a “hold” rating in a research note on Monday, August 3rd. Barclays increased their target price on Valero Energy from $279.00 to $323.00 and gave the company an “overweight” rating in a research report on Friday, July 31st. UBS Group upped their price objective on shares of Valero Energy from $355.00 to $450.00 and gave the stock a “buy” rating in a research report on Tuesday, September 8th. Finally, Piper Sandler lifted their target price on shares of Valero Energy from $329.00 to $435.00 and gave the company an “overweight” rating in a research report on Thursday, September 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $325.69.

View Our Latest Stock Analysis on Valero Energy Key Valero Energy News Here are the key news stories impacting Valero Energy this week:

Positive Sentiment: Valero has gained more than 200% over the past two years, outperforming every Magnificent Seven stock. The article attributes most of the 2026 rally to declining global refining capacity rather than crude-oil prices, a backdrop that could support gasoline and diesel margins. This Crude Refiner Has Beaten Every Magnificent Seven Stock in the Last 2 Years Positive Sentiment: Analysts have been raising Valero’s earnings estimates, which typically signals expectations for stronger near-term results and helped support recent buying interest. Surging Earnings Estimates Signal Upside for Valero Energy Stock Positive Sentiment: Valero’s recent advance and new 52-week high reflect strong investor momentum. Its refining exposure positions the company to benefit if constrained capacity keeps industry margins elevated. Valero Energy Hit a 52-Week High Neutral Sentiment: Valero expanded its board to 11 members and elected Matt Audette as an independent director, adding him to the Audit Committee. The governance change is unlikely to materially affect near-term earnings. Valero Energy Elects Matt Audette to Its Board Negative Sentiment: Despite the strong rally, the average analyst price target is reportedly about 31% below the current share price. Commentators also warn that investors buying after a gain of more than 150% this year may face limited upside or a pullback if refining margins normalize. Why Analysts Say to Wait on Marathon and Valero Insider Activity In other news, SVP Eric Fisher sold 7,500 shares of the business’s stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $268.17, for a total transaction of $2,011,275.00. Following the completion of the transaction, the senior vice president directly owned 19,742 shares of the company’s stock, valued at approximately $5,294,212.14. The trade was a 27.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 0.36% of the company’s stock.

Valero Energy Price Performance Valero Energy stock opened at $412.55 on Friday. The company has a quick ratio of 1.23, a current ratio of 1.64 and a debt-to-equity ratio of 0.37. Valero Energy Corporation has a 52-week low of $155.29 and a 52-week high of $416.66. The firm has a market cap of $118.79 billion, a PE ratio of 17.12, a price-to-earnings-growth ratio of 0.28 and a beta of 0.57. The company’s 50 day moving average is $339.56 and its two-hundred day moving average is $278.32.

Valero Energy (NYSE:VLO – Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share for the quarter, topping analysts’ consensus estimates of $10.11 by $2.43. Valero Energy had a return on equity of 26.74% and a net margin of 5.17%.The business had revenue of $44.48 billion for the quarter, compared to analyst estimates of $39.47 billion. During the same quarter in the prior year, the company earned $2.28 earnings per share. The company’s revenue was up 48.8% on a year-over-year basis. On average, research analysts expect that Valero Energy Corporation will post 48.58 EPS for the current fiscal year.

Valero Energy Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Monday, August 31st. Stockholders of record on Friday, July 31st were paid a $1.20 dividend. This represents a $4.80 annualized dividend and a dividend yield of 1.2%. The ex-dividend date was Friday, July 31st. Valero Energy’s dividend payout ratio (DPR) is presently 19.92%.

Valero Energy Profile (Free Report)

Valero Energy Corporation is an international energy company headquartered in San Antonio, Texas. Its primary business is refining crude oil into transportation fuels and other products, including gasoline, diesel, jet fuel, asphalt, lubricants and petrochemical feedstocks.

Valero operates refineries and related facilities in the United States, Canada and the United Kingdom, and markets its products through wholesale and commercial channels in North America and other international markets.

Featured Articles Five stocks we like better than Valero Energy J.B. Hunt’s Stock Plunges After Market Misprices Profit Warning 2 Stocks Breaking Out Post-FOMC With One Thing in Common Lennar’s Q3 Miss Hides a Stronger Operating Story Beneath the Housing Slump These 3 Stocks Are Drawing Insider Buyers for Very Different Reasons Want to see what other hedge funds are holding VLO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Valero Energy Corporation (NYSE:VLO – Free Report).

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Key Takeaways Valero Energy is positioned to benefit from tight refining markets and lower product inventories.Its Gulf Coast network supports diverse crude sourcing and exports to constrained product markets.Complex refineries can process discounted heavy crude into higher-value gasoline, diesel and jet fuel. Valero Energy’s (VLO - Free Report) business environment remains constructive in the coming quarters, supported by lower product inventories and tighter refining markets. VLO has been reaping the benefits of high refining margins in recent quarters, and this trend is expected to continue well into 2027. Refining markets have further tightened since the start of the conflict in the Middle East due to renewed tensions between the United States and Iran, attacks on Russian refining facilities and lower Chinese exports. These factors are expected to support refining fundamentals and keep margins high.

In this landscape, Valero Energy’s Gulf Coast refining network offers significant advantages, including optimized crude sourcing and access to high-growth export markets. VLO’s Gulf Coast position provides access to diverse crude grades, including Venezuelan and Canadian crude. It also provides access to abundant domestic production, even amid global disruptions to crude flows. Furthermore, the company’s asset base enables it to export products to constrained refined-product markets and capture higher margins.

In addition, Valero’s complex refineries can process a wide range of crude grades, including heavy, high-sulfur crude. Heavy grades, such as Canadian and Venezuelan crude, often trade at discounts to lighter crude, providing Valero with opportunities to optimize its feedstock costs. The company can then convert these lower-cost feedstocks into higher-value products, including gasoline, diesel and jet fuel. This crude-processing flexibility can support stronger refining margins for Valero, particularly when heavy crude discounts widen.

Combined with low global product inventories and constrained refining capacity, Valero’s operational flexibility and high-complexity refinery network should allow the company to capitalize on favorable refining market conditions in the coming quarters.

Can PARR and PBF Benefit From Tight Fuel Markets?Par Pacific Holdings (PARR - Free Report) operates an integrated downstream energy business across the United States, with fuel retail operations in Hawaii, Washington and Idaho; refining operations in Hawaii, Wyoming, Washington and Montana; a cumulative refining capacity of 219,000 barrels per day; and a supporting logistics network. Its logistics network includes 13 million barrels of storage, along with marine and pipeline assets for transportation. The commercial flexibility of its downstream network allows the company to capitalize on changing market conditions to support profitability.

PBF Energy (PBF - Free Report) has a geographically diverse refining network with large-scale processing capacity and a highly complex refining system. It operates six refineries — Delaware City Refinery, Paulsboro Refinery, Toledo Refinery, Chalmette Refinery, Torrance Refinery and Martinez Refinery — with a combined throughput capacity of 1 million barrels per day and the ability to process a wide range of feedstocks. The diversified refining footprint provides the company exposure to several regional refining markets, supporting higher margins.

VLO’s Price Performance, Valuation & EstimatesValero Energy’s shares have jumped 147.9% over the past year compared with the 125% improvement of the composite stocks belonging to the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, VLO trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 8.35X. This is above the broader industry average of 5.95X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for VLO’s 2026 earnings has been revised upward over the past seven days.

Image Source: Zacks Investment Research

VLO, PARR and PBF currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Baird Financial Group Inc. trimmed its stake in Valero Energy Corporation (NYSE:VLO – Free Report) by 5.4% in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 113,973 shares of the oil and gas company’s stock after selling 6,543 shares during the period. Baird Financial Group Inc.’s holdings in Valero Energy were worth $29,683,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in the company. Cornerstone Financial Management LLC lifted its position in shares of Valero Energy by 57.6% during the 2nd quarter. Cornerstone Financial Management LLC now owns 104 shares of the oil and gas company’s stock valued at $27,000 after acquiring an additional 38 shares during the period. Whipplewood Advisors LLC boosted its position in shares of Valero Energy by 3,400.0% during the first quarter. Whipplewood Advisors LLC now owns 105 shares of the oil and gas company’s stock valued at $26,000 after buying an additional 102 shares during the last quarter. Financial Life Planners purchased a new position in Valero Energy during the 1st quarter worth $28,000. Valued Wealth Advisors LLC grew its position in Valero Energy by 134.0% in the 1st quarter. Valued Wealth Advisors LLC now owns 117 shares of the oil and gas company’s stock worth $29,000 after purchasing an additional 67 shares in the last quarter. Finally, Global Assets Advisory LLC bought a new position in shares of Valero Energy in the first quarter valued at approximately $33,000. Institutional investors and hedge funds own 78.69% of the company’s stock.

Valero Energy Stock Performance Shares of VLO opened at $385.92 on Friday. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.64 and a quick ratio of 1.23. Valero Energy Corporation has a one year low of $155.29 and a one year high of $393.54. The firm has a market capitalization of $111.12 billion, a PE ratio of 16.01, a price-to-earnings-growth ratio of 0.44 and a beta of 0.57. The company has a 50-day simple moving average of $324.54 and a two-hundred day simple moving average of $270.47.

Valero Energy (NYSE:VLO – Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The oil and gas company reported $12.54 EPS for the quarter, topping the consensus estimate of $10.11 by $2.43. Valero Energy had a net margin of 5.17% and a return on equity of 26.74%. The business had revenue of $44.48 billion for the quarter, compared to analyst estimates of $39.47 billion. During the same quarter in the previous year, the firm posted $2.28 earnings per share. Valero Energy’s quarterly revenue was up 48.8% on a year-over-year basis. On average, analysts anticipate that Valero Energy Corporation will post 41.15 EPS for the current fiscal year. Valero Energy Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Monday, August 31st. Stockholders of record on Friday, July 31st were paid a $1.20 dividend. This represents a $4.80 annualized dividend and a dividend yield of 1.2%. The ex-dividend date was Friday, July 31st. Valero Energy’s dividend payout ratio is 19.92%.

Wall Street Analysts Forecast Growth Several equities research analysts have recently issued reports on VLO shares. Erste Group Bank lowered shares of Valero Energy from a “buy” rating to a “hold” rating in a research note on Thursday, August 27th. Barclays upped their price target on Valero Energy from $279.00 to $323.00 and gave the company an “overweight” rating in a research report on Friday, July 31st. Raymond James Financial upped their price target on shares of Valero Energy from $300.00 to $340.00 and gave the stock a “strong-buy” rating in a report on Monday, July 13th. TD Cowen raised their target price on shares of Valero Energy from $338.00 to $350.00 and gave the company a “hold” rating in a research note on Monday, August 3rd. Finally, UBS Group raised their price target on Valero Energy from $355.00 to $450.00 and gave the company a “buy” rating in a research report on Tuesday. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $301.76.

Read Our Latest Report on Valero Energy

Insider Transactions at Valero Energy In other news, SVP Eric Fisher sold 7,500 shares of the business’s stock in a transaction on Monday, June 29th. The shares were sold at an average price of $268.17, for a total transaction of $2,011,275.00. Following the completion of the sale, the senior vice president owned 19,742 shares of the company’s stock, valued at $5,294,212.14. The trade was a 27.53% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 0.36% of the company’s stock.

Valero Energy Company Profile (Free Report)

Valero Energy Corporation is an international energy company headquartered in San Antonio, Texas. Its primary business is refining crude oil into transportation fuels and other products, including gasoline, diesel, jet fuel, asphalt, lubricants and petrochemical feedstocks.

Valero operates refineries and related facilities in the United States, Canada and the United Kingdom, and markets its products through wholesale and commercial channels in North America and other international markets.

Featured Stories Five stocks we like better than Valero Energy AeroVironment’s Record Backlog and Earnings Beat Fuel Recovery Case Corning Just Locked In a Massive Verizon Fiber Deal as AI Infrastructure Expands 3 Under-$20 Stocks Tied to the Future of U.S. Energy and Materials Uncle Sam’s Quantum Leap: Feds Fund a $300M Quantum Supercycle Want to see what other hedge funds are holding VLO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Valero Energy Corporation (NYSE:VLO – Free Report).

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Key Takeaways Valero expects favorable refining fundamentals as inventories stay low and capacity remains constrained.VLO's refining flexibility lets it shift product yields to capture margins during volatile markets.Middle East and Russia disruptions could tighten refining supply and support higher crack spreads. Valero Energy’s (VLO - Free Report) near-term outlook is supported by a constructive refining environment. In its latest earnings call, the company said it expects refining fundamentals to remain favorable due to significantly lower light-product inventories and constrained excess refining capacity globally. Management also believes that future mid-cycle refining margins could remain higher than historical averages, which should support higher profitability for refining players.

One of the key strengths of Valero is its complex, coastal refining system, which is capable of efficiently processing heavy sour grades into high-value refined products. Moreover, its Gulf Coast refining network provides flexibility in feedstock sourcing and exposure to global product markets. Valero’s refinery systems allow it to shift product yields between light products and distillates based on market signals, enhancing margin capture during volatile times.

Valero expects the refining market to remain constrained, as some refinery capacity in the Middle East may take longer to return due to the extensive damage caused by the conflict. Moreover, Ukrainian attacks on Russian refining facilities have further constrained refining capacity, tightening global supply. Prolonged supply disruptions amid resilient demand for refined products are expected to support higher crack spreads, thereby aiding VLO’s profitability in the future.

Refining Players That Can Benefit From a Constructive Margin EnvironmentPBF Energy (PBF - Free Report) has a geographically diverse refining network with large-scale processing capacity and a highly complex refining system. It operates six refineries - Delaware City Refinery, Paulsboro Refinery, Toledo Refinery, Chalmette Refinery, Torrance Refinery and Martinez Refinery — with a combined throughput capacity of one million barrels per day and can process a wide range of feedstocks. The company’s large-scale refining network enables it to capitalize on favorable refining market conditions. 

Par Pacific Holdings (PARR - Free Report) operates an integrated downstream network spanning refining, logistics, retail and renewable fuels. The integrated platform works from sourcing crude to converting it into refined fuels and distributing the products through its retail and logistics channels. The downstream energy firm has a combined refining capacity of 219,000 barrels per day across Hawaii, Montana, Washington and Wyoming. This integrated setup provides the company with the operational flexibility to capitalize on favorable refining market conditions.

VLO’s Price Performance, Valuation & EstimatesValero Energy’s shares have jumped 135.7% over the past year compared with the 106.9% improvement of the composite stocks belonging to the industry.

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From a valuation standpoint, VLO trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 7.25X. This is above the broader industry average of 5.32X.

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The Zacks Consensus Estimate for VLO’s 2026 earnings has been revised upward over the past seven days.

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VLO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways Valero expects tight fuel inventories and limited refining capacity to support favorable market conditions.Strong Latin American gasoline demand and European jet-fuel opportunities are boosting VLO's export prospects.Valero's refining margin increased to $6.34 billion in Q2 2026 from $3.28 billion a year earlier. Valero Energy Corporation (VLO - Free Report) expects refining conditions to remain favorable, supported by low global fuel inventories, tight refining capacity and steady transportation-fuel demand. Management noted that roughly 5 million barrels per day (MMBbl/d) of global refining capacity was offline, while light-product inventories were about 130 million barrels below normal seasonal levels. Even if current conflicts ended immediately, consultant data cited by Valero suggested that global inventories could remain below the five-year average through 2027, supporting continued demand for refined-product exports.

Valero is well-positioned to benefit from this tight supply environment because it operates 14 refineries with roughly 3 MMBbl/d of combined throughput capacity and sells products across several international markets. Management highlighted strong gasoline export demand from Latin America, while reduced gasoline flows from Europe into the United States have further tightened the market. Valero has an open arbitrage opportunity to export jet fuel to Europe, giving the company another avenue to capitalize on regional fuel shortages.

These export opportunities are already supporting Valero’s refining economics, with management stating that strong export markets and export premiums helped improve Gulf Coast capture rates in second quarter of 2026. Valero’s refining margin reached $6.34 billion in second-quarter 2026, compared with $3.28 billion a year earlier, reflecting the strength of the current refining environment. Therefore, if global product inventories remain tight and refining capacity stays constrained, Valero’s large refining system and access to export markets are well-positioned to capture attractive international fuel demand.

How MPC & PSX Are Responding to Tight Fuel SupplyMarathon Petroleum Corporation (MPC - Free Report) and Phillips 66 (PSX - Free Report) are two other major refiners navigating tight global fuel supplies and positioning their operations to capture opportunities arising from constrained product markets.

Marathon Petroleum noted in its latest earnings call that global gasoline and diesel supplies remain constrained, with refinery outages in Russia and the Middle East adding further pressure to already low inventories. To respond to these conditions, MPC is focusing production on products where demand is strongest. The company reported record distillate exports in the second quarter of 2026, supported by attractive export opportunities in Latin America and Europe. Marathon Petroleum is expanding its refining capabilities through a 90,000-barrel-per-day (Bbl/d) distillate hydrotreater at Galveston Bay and a Garyville project designed to add 10,000 Bbl/d of export-premium gasoline output by the end of 2027.

Phillips 66 highlighted increasingly tight global refining fundamentals, driven by low fuel inventories and significant refinery disruptions across Asia, the Middle East and Russia. To capitalize on these conditions, the company maintained 96% refinery utilization in second quarter of 2026 while leveraging its commercial and logistics network to move feedstocks and refined products toward higher-value markets. Its expanded marine fleet and logistics flexibility further strengthen its ability to respond to regional shortages and capture attractive margins.

VLO’s Price Performance, Valuation & EstimatesValero shares have risen 143% over the past year compared with the industry’s 84.5% growth.

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From a valuation standpoint, VLO trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 7.1X. This is above the broader industry average of 5.66X.

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The Zacks Consensus Estimate for VLO's 2026 earnings has remained constant over the past seven days.

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VLO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways VLO's Q2 earnings and sales topped estimates as all three reportable segments posted higher profits.VLO's refining margin rose to $6.34 billion as gasoline and distillate economics strengthened.VLO returned $2.6 billion to stockholders while ending Q2 with $7.87 billion in cash and equivalents. Valero Energy Corporation (VLO - Free Report) delivered a second-quarter 2026 beat that changed the shape of its near-term earnings story. Adjusted earnings reached $12.54 per share, while revenues increased 48.8% to $44.48 billion, with both measures topping the Zacks Consensus Estimate.

The result was not just a refining windfall. Renewable diesel and ethanol also posted sharp profit gains, giving Valero three meaningful earnings engines as it moves through 2026.

Valero’s Q2 Beat Was Broad-BasedAdjusted earnings rose from $2.28 per share a year earlier, and the 27.1% earnings surprise was paired with a 23.7% sales surprise. That combination shows the quarter’s strength extended beyond one margin or operating statistic.

Operating income reached $5.20 billion, up from $997 million. The mix matters because each reportable segment contributed more profit than in the prior-year quarter.

VLO’s Refining Margins Drove the UpsideRefining margin increased to $6.34 billion from $3.28 billion, while segment operating income rose to $4.47 billion from $1.27 billion. Stronger gasoline and distillate economics lifted refining margin per barrel to $23.62 from $12.35.

Throughput averaged about 3 million barrels per day, with the Gulf Coast supplying roughly 62% of the total. Marathon Petroleum Corporation (MPC - Free Report) , which also operates a refining system of about 3 million barrels per day, provides a useful peer reference for how scale and feedstock flexibility can amplify tight product markets.

Valero’s Renewable Diesel Business ReboundedRenewable Diesel swung to operating income of $717 million from a $79 million loss. Margin per gallon rose to $2.52 from 22 cents as renewable credit values increased faster than fat-based feedstock costs.

Management sees support through 2026 and 2027 from established renewable-volume obligations, but the segment remains sensitive to credit values and eligible-feedstock economics. Phillips 66 (PSX - Free Report) , which produces renewable diesel and sustainable aviation fuel at its Rodeo complex, faces similar policy and feedstock variables across its lower-carbon platform.

VLO’s Ethanol Segment Added Another Profit EngineEthanol operating income increased to $318 million from $54 million even though external revenues stayed flat at $1 billion. Ethanol margin increased to $489 million from $217 million, reflecting much better conversion economics.

Production credits added another structural benefit. Valero expects roughly 17 cents per gallon for 2026 and about 19 cents per gallon from 2027 through 2029, compared with a historical mid-cycle ethanol margin of about 25 cents.

Valero’s Cash Windfall Expands Its OptionsAdjusted operating cash flow totaled $4.49 billion, and Valero returned $2.6 billion, or 59%, to stockholders. Cash and cash equivalents ended the quarter at $7.87 billion, above the company’s long-term target of $4 billion to $5 billion.

That liquidity can cushion commodity-driven working-capital swings while supporting the $230 million St. Charles optimization project and Port Arthur repairs. Valero estimates the Port Arthur work at $250 million and expects a substantial portion to be covered by insurance.

Valero’s Earnings Outlook and Estimate TrendsThe Zacks Consensus Estimate calls for earnings of $12.31 per share in the current quarter and $6.90 in the next quarter. For 2026, the consensus mark is $36.95 per share, followed by $26.70 for 2027, implying a 27.7% year-over-year decline after this year’s surge.

The estimate range remains wide, underscoring the sensitivity of results to refining margins and renewable-fuel economics.

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VLO’s Strong Quarter Still Faces Durability TestsValero’s second-quarter performance broadened its 2026 earnings mix, but investors should not treat one exceptional period as a permanent run rate. Refining-margin normalization, renewable-policy changes and repair execution remain the main durability tests.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Valero has a Value Score of A, Growth Score of A, Momentum Score of B and VGM Score of A. That combination points to favorable estimate-revision trends and solid style characteristics over the near term, while the projected earnings decline in 2027 argues for continued attention to cyclicality.

Key Takeaways Valero Energy is expected to post sharply higher Q2 earnings and revenues from year-ago levels.Elevated crack spreads and resilient refined-product demand may support VLO's refining profits.Higher crude costs and renewable diesel policy exposure may temper Valero Energy's Q2 results. Valero Energy Corporation (VLO - Free Report) is set to report second-quarter 2026 results on July 30, before the market opens.

The Zacks Consensus Estimate for second-quarter earnings is pegged at $9.87 per share, implying an increase of 332.9% from the year-ago reported number. VLO has witnessed two upward and no downward earnings estimate revisions over the past seven days. The Zacks Consensus Estimate for second-quarter revenues is currently pinned at $35.95 billion, suggesting a 20.3% rise from the year-ago actuals.

VLO beat the consensus estimate for earnings in each of the trailing four quarters, delivering an average surprise of 27.99%. This is depicted in the graph below:  

Image Source: Zacks Investment Research

Valero’s Q2 Earnings WhispersOur proven model does not conclusively predict an earnings beat for VLO this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

The company has an Earnings ESP of -0.91% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Factors to Note for VLOValero Energy is expected to have sustained steady performance in the second quarter, driven by the resilient demand for refined products amid constrained global refining capacity, further amplified by the geopolitical situation in the Middle East.

Moreover, the current business environment looks supportive for refining players, including Valero. The 3-2-1 crack spread, widely recognized as an indicator of refining profitability, had risen significantly since the start of the conflict in the Middle East and remained at elevated levels throughout the second quarter. These factors are likely to have supported refining gains and aided VLO’s profitability in the to-be-reported quarter.

However, the company’s performance may have been tempered by elevated crude prices earlier in the quarter. Per the data from the U.S. Energy Information Administration, the West Texas Intermediate spot crude price averaged $100.32 per barrel in April and $102.13 per barrel in May before declining to $84.81 per barrel in June.

Notably, these figures are significantly higher than those recorded in the corresponding period of 2025. Higher crude prices may have raised input costs for its refining operations, thereby affecting its results. Its Renewable Diesel segment adds another source of earnings volatility, as its performance is highly dependent on government and environmental policy support, alongside demand factors.

These factors are likely to have affected demand and pricing dynamics, potentially hampering the company’s quarterly performance.

VLO’s Price Performance & ValuationVLO’s stock has soared 116.1% over the past year compared with the 59.4% rise of the composite stocks belonging to the industry. PBF Energy and Par Pacific Holdings, two other leading refining players, have gained 154.9% and 139.2%, respectively.

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VLO appears relatively overvalued, at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 9.36X, above the broader industry average of 6.25X, implying that the stock is currently trading at a premium.

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Investment Thesis of Valero EnergyValero Energy is among the largest independent refiners in the United States, with a combined high-complexity throughput capacity of nearly 3 million barrels per day across its refineries. Its refining footprint is heavily concentrated along the U.S. Gulf Coast, providing feedstock sourcing flexibility and access to high-demand growth markets to sell its refined products. Notably, VLO’s refineries have the operational flexibility to process various kinds of feedstock, including heavy sour, medium/light sour and sweet crude, and shift product yields based on market conditions to capture higher margins.  

Valero Energy also boasts a strong financial and liquidity position, with a low debt-to-capitalization ratio of 18%, as of March 31, 2026. Furthermore, its cash and cash equivalents, combined with the liquidity available under its bank facilities, totaled approximately $11 billion at the end of the March quarter. VLO’s healthy financial position also allows it to return excess cash to investors through share buybacks.

However, it should be noted that the refining industry is inherently cyclical and volatile. Margins and crack spreads depend largely on crude oil prices and the overall demand for refined petroleum products, which causes VLO’s earnings to be volatile as well.

Are PBF & PARR Poised to Gain From a Favorable Refining Backdrop?PBF Energy (PBF - Free Report) has a geographically diverse refining network with large-scale processing capacity and a highly complex refining system. It operates six refineries, Delaware City Refinery, Paulsboro Refinery, Toledo Refinery, Chalmette Refinery, Torrance Refinery and Martinez Refinery, which have a combined throughput capacity of 1 million barrels per day and can process a wide range of feedstocks.

Par Pacific Holdings (PARR - Free Report)  operates an integrated downstream energy business across the United States, with fuel retail operations in Hawaii, Washington and Idaho, refining operations in Hawaii, Wyoming, Washington and Montana, and a supporting logistics network. Its refineries have a combined crude oil throughput capacity of 219,000 barrels per day and produce gasoline, diesel, jet fuel, marine fuels, asphalt and other petroleum products.

PBF currently sports a Zacks Rank #1, while PARR carries a Zacks Rank #2. Both refiners are expected to benefit from strong refining fundamentals and elevated crack spreads, which are likely to support their bottom-line profitability.

Final VerdictVLO is expected to benefit from strong refining fundamentals, which are currently supported by the disruptions of energy flows through the Strait of Hormuz. Given the business environment and its healthy financial position, investors should consider buying the VLO stock, carrying a Zacks Rank #2, at present.

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SAN ANTONIO--(BUSINESS WIRE)--The Board of Directors of Valero Energy Corporation (NYSE: VLO, “Valero”) has declared a regular quarterly cash dividend of $1.20 per share on its common stock. The dividend will be payable on August 31, 2026, to stockholders of record as of the close of business on July 31, 2026.

About Valero

Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland, and Latin America. Valero operates 14 petroleum refineries located in the U.S., Canada, and the U.K. with a combined throughput capacity of approximately 3.0 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which produces low-carbon fuels including renewable diesel and sustainable aviation fuel (SAF), with a production capacity of approximately 1.2 billion gallons per year in the U.S. Gulf Coast region. See the annual report on Form 10-K for more information on SAF. Valero also owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.7 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel, and Ethanol segments. Please visit investorvalero.com for more information.

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Key Takeaways Valero Energy's complex refinery network boosts flexibility to maximize refining margins across markets.VLO may benefit from lower feedstock costs as energy prices ease amid U.S.-Iran peace talks progress.Valero Energy is expanding renewable fuels exposure through Diamond Green Diesel and a new SAF project. Valero Energy’s (VLO - Free Report) investment appeal is supported by its highly complex coastal refinery network, which can process a wide range of feedstocks into higher-value refined fuels. The flexibility of Valero’s refinery systems allows it to shift product yields between light products and distillates based on market signals, enabling more margin capture during periods of high volatility. Moreover, the Gulf Coast concentration enables VLO to optimize feedstock sourcing and export its products to high-demand markets, helping it capture better margins.

At present, energy prices have dropped significantly, reflecting progress in the United States-Iran peace talks. This could prove to be beneficial for Valero, as it implies cheaper feedstock costs for its refining operations, supporting refining gains. The company's operational flexibility, low-cost structure and advanced refining and logistics assets are expected to enhance its competitive position by maximizing margin capture across varying market conditions.

Further, Valero has gained meaningful exposure to renewable fuels, providing an additional revenue stream. Its ownership in the Diamond Green Diesel joint venture provides VLO with approximately 1.2 billion gallons of renewable fuels production capacity per year. Also, the recently completed Port Arthur sustainable aviation fuel (SAF) project can upgrade up to 50% of its current renewable diesel production capacity to SAF. Meanwhile, its low-cost ethanol operations are expected to benefit from global renewable fuel mandates driving exports. These initiatives position Valero to capitalize on the long-term growth of cleaner transportation fuels.

PARR & PBF Are Two Other Leading Downstream PlayersPar Pacific Holdings (PARR - Free Report) is a Houston-based refining player with a combined refining capacity of 219,000 barrels per day and operations across Hawaii and the Pacific Northwest. The company also operates 76 branded retail locations, along with a logistics business segment. It owns extensive energy infrastructure, which includes storage and transportation assets. PARR currently carries a Zacks Rank #2 (Buy).

PBF Energy (PBF - Free Report) has a geographically diverse refining network with large-scale processing capacity and a highly complex refining system. It operates six refineries - Delaware City Refinery, Paulsboro Refinery, Toledo Refinery, Chalmette Refinery, Torrance Refinery and Martinez Refinery— with a combined throughput capacity of 1 million barrels per day and the ability to process a wide range of feedstocks. PBF carries a Zacks Rank #3 (Hold) at present.

VLO’s Price Performance, Valuation & EstimatesValero Energy’s shares have jumped 85.2% over the past year compared with the 35.8% improvement of the composite stocks belonging to the industry.

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From a valuation standpoint, VLO trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 8.16X. This is above the broader industry average of 5.49X.

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The Zacks Consensus Estimate for VLO’s 2026 earnings has been revised upward over the past seven days.

Image Source: Zacks Investment Research

VLO currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.