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Valero (VLO) Cheers Investors With $2.5B Buyback Approvals

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Valero Energy Corporation (VLO - Free Report) recently received the board of directors' nod for a new stock repurchase authorization of $2.5 billion.

With this, Valero Energy has replaced the prior authorization declared in January 2018. It has already repurchased roughly 45.4 million shares of its common stock since the prior authorization. This reflects the strong focus of Valero Energy to return capital to shareholders. Apart from stock repurchases, it has been paying higher dividend yields over the past two years than the composite stocks belonging to the industry. VLO is targeting a payout that will continue to be lucrative in the same business space.

Currently, Valero Energy, a well-known fuel producer that is a good fit for the modern world, sports a Zacks Rank #1 (Strong Buy). Other prospective players in the energy space include Antero Resources (AR - Free Report) , BP plc (BP - Free Report) andContinental Resources, Inc. . While Antero and BP sport a Zacks Rank #1, Continental Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources is a leading upstream energy player with a strong presence in the gas-rich prolific Appalachian Basin in West Virginia and Ohio. In the past 60 days, Antero Resources has witnessed upward earnings estimate revisions for 2022 and 2023.

The substantial exposure to improving commodity price is a huge positive for Antero Resources.

High oil prices are aiding BP’s upstream operations. The sizable refining and marketing operations of BP will protect it if crude pricing scenario turns unfavorable again.  For 2022, it is likely to witness earnings growth of almost 77%. Over the past few quarters, BP has successfully been reducing long-term debt.

Continental Resources is also a leading upstream energy company with proven reserves in North Dakota and Oklahoma. The oil inventories of the firm are among the best in the industry.

Headquartered in Oklahoma City, Continental Resources has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. It has gained 73.2% in the past year, outpacing the 26.4% rise of the composite stocks belonging to the sector.


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