Oil refining and marketing player Valero Energy Corporation (VLO - Free Report) posted adjusted third-quarter 2017 income of $1.91 per share that surpassed the Zacks Consensus Estimate of $1.83 and the year-ago adjusted profit of $1.24.
Total revenues in the quarter grew 20.4% year over year to $23,562 million from $19,649 million. The top line also surpassed the Zacks Consensus Estimate of $20,183 million.
Higher throughput margin owing to 92% throughput capacity utilization supported Valero Energy’s strong third-quarter results.
Throughput Volumes
During the quarter, refining throughput volumes were nearly 3 million barrels a day, almost in line with the year-earlier level.
By feedstock composition, sweet crude, medium/light sour crude and heavy sour crude accounted for 52.4%, 16.3% and 17.3%, respectively. Residuals, other feedstock as well as blendstocks and others accounted for the remaining.
The Gulf Coast accounted for approximately 57% of the total throughput volume. The Mid-Continent, North Atlantic and West Coast regions contributed 16%, 17% and 10%, respectively.
Throughput Margins
Company-wide throughput margins increased to $10.94 per barrel from the year-ago level of $8.72. Throughput capacity utilization of 92% during this quarter supported the outperformance.
Average throughput margin realized was $9.76 per barrel in the U.S. Gulf Coast as against $8.60 in the year-earlier period. The metric was $13.31 per barrel in the U.S. Mid-Continent versus $8.85 a year ago. Throughput margin realized was $11.51 a barrel in the North Atlantic compared with $7.74 last year.
Refining operating expense per barrel was $3.71 compared with $3.54 in the year-ago quarter. Depreciation and amortization expenses increased year over year to $1.71 a barrel from $1.63.
Capital Expenditure & Balance Sheet
Third-quarter capital expenditure totaled $565 million, including $73 million for turnarounds and catalyst expenditure. At the end of the quarter under review, the company had cash and temporary cash investments of $5.2 billion and debt of $8.5 billion. Valero Energy also rewarded shareholders with dividends and share buybacks worth $600 million.
Q3 Price Performance
During the July-to-September quarter, Valero Energy gained 14% as compared with the industry’s10.5% rally.
Zacks Rank & Key Picks
Valero Energy currently carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector are Par Pacific Holdings Inc. (PARR - Free Report) , Northern Oil and Gas, Inc. (NOG - Free Report) and Canadian Natural Resources Ltd. (CNQ - Free Report) . Par Pacific sports a Zacks Rank #1 (Strong Buy) while Northern Oil and Gas and Canadian Natural carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Houston, TX, Par Pacific managed to beat the Zacks Consensus Estimate in three of the last four quarters, the average earnings surprise being 195.26%.
Based in Minnetonka, MN, Northern Oil and Gas is an upstream energy player. The company’s 2017 revenues are estimated to grow 44.1%.
Canadian Natural, headquartered in Calgary, Alberta, Canada, is primarily an upstream energy firm. The firm will likely witness year-over-year earnings growth of 234.8% in 2017.
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Oil refining and marketing player Valero Energy Corporation (VLO - Free Report) posted adjusted third-quarter 2017 income of $1.91 per share that surpassed the Zacks Consensus Estimate of $1.83 and the year-ago adjusted profit of $1.24.
Total revenues in the quarter grew 20.4% year over year to $23,562 million from $19,649 million. The top line also surpassed the Zacks Consensus Estimate of $20,183 million.
Higher throughput margin owing to 92% throughput capacity utilization supported Valero Energy’s strong third-quarter results.
Throughput Volumes
During the quarter, refining throughput volumes were nearly 3 million barrels a day, almost in line with the year-earlier level.
By feedstock composition, sweet crude, medium/light sour crude and heavy sour crude accounted for 52.4%, 16.3% and 17.3%, respectively. Residuals, other feedstock as well as blendstocks and others accounted for the remaining.
The Gulf Coast accounted for approximately 57% of the total throughput volume. The Mid-Continent, North Atlantic and West Coast regions contributed 16%, 17% and 10%, respectively.
Throughput Margins
Company-wide throughput margins increased to $10.94 per barrel from the year-ago level of $8.72. Throughput capacity utilization of 92% during this quarter supported the outperformance.
Average throughput margin realized was $9.76 per barrel in the U.S. Gulf Coast as against $8.60 in the year-earlier period. The metric was $13.31 per barrel in the U.S. Mid-Continent versus $8.85 a year ago. Throughput margin realized was $11.51 a barrel in the North Atlantic compared with $7.74 last year.
Refining operating expense per barrel was $3.71 compared with $3.54 in the year-ago quarter. Depreciation and amortization expenses increased year over year to $1.71 a barrel from $1.63.
Capital Expenditure & Balance Sheet
Third-quarter capital expenditure totaled $565 million, including $73 million for turnarounds and catalyst expenditure. At the end of the quarter under review, the company had cash and temporary cash investments of $5.2 billion and debt of $8.5 billion. Valero Energy also rewarded shareholders with dividends and share buybacks worth $600 million.
Q3 Price Performance
During the July-to-September quarter, Valero Energy gained 14% as compared with the industry’s10.5% rally.
Zacks Rank & Key Picks
Valero Energy currently carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector are Par Pacific Holdings Inc. (PARR - Free Report) , Northern Oil and Gas, Inc. (NOG - Free Report) and Canadian Natural Resources Ltd. (CNQ - Free Report) . Par Pacific sports a Zacks Rank #1 (Strong Buy) while Northern Oil and Gas and Canadian Natural carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Houston, TX, Par Pacific managed to beat the Zacks Consensus Estimate in three of the last four quarters, the average earnings surprise being 195.26%.
Based in Minnetonka, MN, Northern Oil and Gas is an upstream energy player. The company’s 2017 revenues are estimated to grow 44.1%.
Canadian Natural, headquartered in Calgary, Alberta, Canada, is primarily an upstream energy firm. The firm will likely witness year-over-year earnings growth of 234.8% in 2017.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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