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Valero Energy (VLO) Q1 Earnings Beat Estimates, Increase Y/Y
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Oil refining and marketing player Valero Energy Corporation (VLO - Free Report) posted adjusted first-quarter 2017 income of 68 cents per share that surpassed the Zacks Consensus Estimate as well as the year-ago adjusted profit of 60 cents.
Total revenue for the quarter grew 39% year over year to $21,772 million from $15,714 million. The top line was also above the Zacks Consensus Estimate of $20,100 million.
Higher throughput margin due to 91% throughput capacity utilization supported Valero Energy’s strong first-quarter results.
Throughput Volumes
During the quarter, refining throughput volumes were approximately 2.84 million barrels per day, almost in line with the year-earlier level.
By feedstock composition, sweet crude, medium/light sour crude and heavy sour crude accounted for 49.2%, 17.9% and 17.7%, respectively. The remaining volumes came from residuals, other feedstock as well as blendstocks and others.
The Gulf Coast accounted for approximately 60% of the total throughput volume. The Mid-Continent, North Atlantic and West Coast regions contributed 16%, 17% and 7%, respectively.
Throughput Margins
Company-wide throughput margins increased to $8.14 per barrel from the year-ago level of $7.66 per barrel. Throughput capacity utilization of 91% during the first quarter of this year supported the outperformance.
Average throughput margin realized was $7.98 per barrel in the U.S. Gulf Coast as against $7.63 per barrel in the year-earlier period. The metric was $7.98 per barrel in the U.S. Mid-Continent as against $6.53 a year ago. Throughput margin realized was $8.55 per barrel in the North Atlantic compared with $7.94 last year and $8.86 per barrel in the U.S. West Coast compared with $9.34 in the prior-year quarter.
Total operating cost per barrel was $5.61 during the quarter, up 8.5% from the year-earlier figure of $5.17. Refining operating expense per barrel was $3.85 compared with $3.46 in the year-ago quarter. Depreciation and amortization expenses increased 3% year over year to $1.76 per barrel.
Capital Expenditure & Balance Sheet
First-quarter capital expenditure was $641 million, including $245 million for turnarounds and catalyst expenditures. At the end of the quarter, the company had cash and temporary cash investments of $4.5 billion and debt of $8.5 billion. Valero also rewarded shareholders with dividends and share buybacks worth $629 million.
Q1 Price Performance
During the first three months of 2017, Valero Energy’s shares underperformed the Zacks categorized Oil Refining & Marketing industry. During the aforesaid period, the stock lost almost 3% compared with 10.8% decrease for the broader industry.
Guidance
For 2017, Valero reaffirmed its capital expenditure at $2.7 billion.
Some better-ranked players from the energy sector include Antero Resources Corp. (AR - Free Report) , W&T Offshore Inc. (WTI - Free Report) and Diamond Offshore Drilling Inc. (DO - Free Report) . Antero Resources and W&T Offshore sport a Zacks Rank #1 (Strong Buy), while Concho carries a Zacks Rank #2 (Buy).
Antero Resources beat the Zacks Consensus Estimate in each of the trailing four quarters with an average positive surprise of 239.10%.
W&T Offshore had an average positive earnings surprise of 50.53% for the last four quarters.
Diamond Offshore surpassed the Zacks Consensus Estimate in all the prior four quarters with an average positive earnings surprise of 353.3%.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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Valero Energy (VLO) Q1 Earnings Beat Estimates, Increase Y/Y
Oil refining and marketing player Valero Energy Corporation (VLO - Free Report) posted adjusted first-quarter 2017 income of 68 cents per share that surpassed the Zacks Consensus Estimate as well as the year-ago adjusted profit of 60 cents.
Total revenue for the quarter grew 39% year over year to $21,772 million from $15,714 million. The top line was also above the Zacks Consensus Estimate of $20,100 million.
Higher throughput margin due to 91% throughput capacity utilization supported Valero Energy’s strong first-quarter results.
Throughput Volumes
During the quarter, refining throughput volumes were approximately 2.84 million barrels per day, almost in line with the year-earlier level.
By feedstock composition, sweet crude, medium/light sour crude and heavy sour crude accounted for 49.2%, 17.9% and 17.7%, respectively. The remaining volumes came from residuals, other feedstock as well as blendstocks and others.
The Gulf Coast accounted for approximately 60% of the total throughput volume. The Mid-Continent, North Atlantic and West Coast regions contributed 16%, 17% and 7%, respectively.
Throughput Margins
Company-wide throughput margins increased to $8.14 per barrel from the year-ago level of $7.66 per barrel. Throughput capacity utilization of 91% during the first quarter of this year supported the outperformance.
Average throughput margin realized was $7.98 per barrel in the U.S. Gulf Coast as against $7.63 per barrel in the year-earlier period. The metric was $7.98 per barrel in the U.S. Mid-Continent as against $6.53 a year ago. Throughput margin realized was $8.55 per barrel in the North Atlantic compared with $7.94 last year and $8.86 per barrel in the U.S. West Coast compared with $9.34 in the prior-year quarter.
Total operating cost per barrel was $5.61 during the quarter, up 8.5% from the year-earlier figure of $5.17. Refining operating expense per barrel was $3.85 compared with $3.46 in the year-ago quarter. Depreciation and amortization expenses increased 3% year over year to $1.76 per barrel.
Capital Expenditure & Balance Sheet
First-quarter capital expenditure was $641 million, including $245 million for turnarounds and catalyst expenditures. At the end of the quarter, the company had cash and temporary cash investments of $4.5 billion and debt of $8.5 billion. Valero also rewarded shareholders with dividends and share buybacks worth $629 million.
Q1 Price Performance
During the first three months of 2017, Valero Energy’s shares underperformed the Zacks categorized Oil Refining & Marketing industry. During the aforesaid period, the stock lost almost 3% compared with 10.8% decrease for the broader industry.
Guidance
For 2017, Valero reaffirmed its capital expenditure at $2.7 billion.
Zacks Rank
Valero Energy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked players from the energy sector include Antero Resources Corp. (AR - Free Report) , W&T Offshore Inc. (WTI - Free Report) and Diamond Offshore Drilling Inc. (DO - Free Report) . Antero Resources and W&T Offshore sport a Zacks Rank #1 (Strong Buy), while Concho carries a Zacks Rank #2 (Buy).
Antero Resources beat the Zacks Consensus Estimate in each of the trailing four quarters with an average positive surprise of 239.10%.
W&T Offshore had an average positive earnings surprise of 50.53% for the last four quarters.
Diamond Offshore surpassed the Zacks Consensus Estimate in all the prior four quarters with an average positive earnings surprise of 353.3%.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>