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Valero Energy (VLO) Q4 Earnings & Revenues Beat Estimates
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Valero Energy Corporation (VLO - Free Report) reported fourth-quarter 2022 adjusted earnings of $8.45 per share, significantly improving from $2.41 in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of $7.45 per share.
Total quarterly revenues increased from $35,903 million in the prior-year quarter to $41,746 million. The top line surpassed the Zacks Consensus Estimate of $40,911 million.
The strong quarterly results have been driven by increased refinery throughput volumes and a higher refining margin.
Segmental Performance
Adjusted operating income in the Refining segment amounted to $4,355 million, improving from $1,065 million in the year-ago quarter. Higher refinery throughput volumes aided the segment.
In the Ethanol segment, Valero reported an adjusted operating profit of $69 million, down from $475 million in the year-ago quarter. Lower ethanol production volumes hurt the segment.
Operating income in the Renewable Diesel segment increased to $261 million from $152 million in the year-ago quarter. Renewable diesel sales volumes increased to 2,443 thousand gallons per day from 1,592 thousand gallons per day a year ago.
Throughput Volumes
In the quarter, Valero’s refining throughput volumes were 3,042 thousand barrels per day (MBbls/d), up from 3,033 MBbls/d reported in the fourth quarter of 2021.
In terms of feedstock composition, sweet crude, medium/light sour crude and heavy sour crude accounted for 51.9%, 11.1% and 11.3%, respectively, of the total volume. The remaining volume came from residuals, other feedstock, and blendstocks and others.
The Gulf Coast contributed 59.4% to the total throughput volume. Mid-Continent, North Atlantic and West Coast regions accounted for 15.7%, 16.2% and 8.7%, respectively, of the total throughput volume.
Throughput Margins
The refining margin per barrel of throughput significantly increased to $22.58 from the year-ago level of $10.63. Refining operating expenses per barrel of throughput was $5.00 compared with $4.86 in the year-ago quarter.
Depreciation and amortization expenses rose to $2.02 a barrel from $1.95 in the prior-year quarter. As such, Valero’s adjusted refining operating income was $15.56 per barrel of throughput compared with $3.82 in the prior-year quarter.
Cost of Sales
Valero’s total cost of sales surged to $37,071 million in the fourth quarter from the year-ago figure of $33,993 million, primarily due to higher material costs and operating expenses.
Capital Investment & Balance Sheet
The fourth-quarter capital investment was $640 million. Of the total, $349 million was allotted for sustaining the business.
At the fourth-quarter end, the company had cash and cash equivalents of $4,862 million. As of Dec 31, 2022, it had total debt and finance lease obligations of $11,635 million.
Halliburton is well known for providing products and services to energy companies. Over the past 30 days, HAL has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.
Eni is also leading the energy transition. The integrated energy player has been building a full set of decarbonized products and services for clients to achieve carbon neutrality by mid-century. Even though the energy business scenario is challenging, Eni’s efficient exploration keeps it highly competitive.
Antero Midstream generates stable cashflows, banking on its midstream assets involved in gathering, compression, processing and fractionation activities. The properties are centered around the prolific Appalachian Basin. Over the past seven days, Antero Midstream has witnessed upward earnings estimate revisions for 2023.
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Valero Energy (VLO) Q4 Earnings & Revenues Beat Estimates
Valero Energy Corporation (VLO - Free Report) reported fourth-quarter 2022 adjusted earnings of $8.45 per share, significantly improving from $2.41 in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of $7.45 per share.
Total quarterly revenues increased from $35,903 million in the prior-year quarter to $41,746 million. The top line surpassed the Zacks Consensus Estimate of $40,911 million.
The strong quarterly results have been driven by increased refinery throughput volumes and a higher refining margin.
Segmental Performance
Adjusted operating income in the Refining segment amounted to $4,355 million, improving from $1,065 million in the year-ago quarter. Higher refinery throughput volumes aided the segment.
In the Ethanol segment, Valero reported an adjusted operating profit of $69 million, down from $475 million in the year-ago quarter. Lower ethanol production volumes hurt the segment.
Operating income in the Renewable Diesel segment increased to $261 million from $152 million in the year-ago quarter. Renewable diesel sales volumes increased to 2,443 thousand gallons per day from 1,592 thousand gallons per day a year ago.
Throughput Volumes
In the quarter, Valero’s refining throughput volumes were 3,042 thousand barrels per day (MBbls/d), up from 3,033 MBbls/d reported in the fourth quarter of 2021.
In terms of feedstock composition, sweet crude, medium/light sour crude and heavy sour crude accounted for 51.9%, 11.1% and 11.3%, respectively, of the total volume. The remaining volume came from residuals, other feedstock, and blendstocks and others.
The Gulf Coast contributed 59.4% to the total throughput volume. Mid-Continent, North Atlantic and West Coast regions accounted for 15.7%, 16.2% and 8.7%, respectively, of the total throughput volume.
Throughput Margins
The refining margin per barrel of throughput significantly increased to $22.58 from the year-ago level of $10.63. Refining operating expenses per barrel of throughput was $5.00 compared with $4.86 in the year-ago quarter.
Depreciation and amortization expenses rose to $2.02 a barrel from $1.95 in the prior-year quarter. As such, Valero’s adjusted refining operating income was $15.56 per barrel of throughput compared with $3.82 in the prior-year quarter.
Cost of Sales
Valero’s total cost of sales surged to $37,071 million in the fourth quarter from the year-ago figure of $33,993 million, primarily due to higher material costs and operating expenses.
Capital Investment & Balance Sheet
The fourth-quarter capital investment was $640 million. Of the total, $349 million was allotted for sustaining the business.
At the fourth-quarter end, the company had cash and cash equivalents of $4,862 million. As of Dec 31, 2022, it had total debt and finance lease obligations of $11,635 million.
Zacks Rank & Stocks to Consider
Valero currently carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include HalliburtonCompany (HAL - Free Report) , Eni SpA (E - Free Report) and Antero Midstream Corporation (AM - Free Report) . While Eni and Antero Midstream carry a Zacks Rank #2 (Buy), Halliburton sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Halliburton is well known for providing products and services to energy companies. Over the past 30 days, HAL has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.
Eni is also leading the energy transition. The integrated energy player has been building a full set of decarbonized products and services for clients to achieve carbon neutrality by mid-century. Even though the energy business scenario is challenging, Eni’s efficient exploration keeps it highly competitive.
Antero Midstream generates stable cashflows, banking on its midstream assets involved in gathering, compression, processing and fractionation activities. The properties are centered around the prolific Appalachian Basin. Over the past seven days, Antero Midstream has witnessed upward earnings estimate revisions for 2023.