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Valero (VLO) Q1 Earnings Beat Estimates, Revenues Miss
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Valero Energy Corporation (VLO - Free Report) reported first-quarter 2024 adjusted earnings of $3.82 per share, which beat the Zacks Consensus Estimate of $3.18. However, the bottom line declined from $8.27 reported in the year-ago quarter.
Total quarterly revenues decreased from $36,439 million in the prior-year quarter to $31,759 million. The top line also missed the Zacks Consensus Estimate of $32,826 million.
Better-than-expected quarterly earnings were primarily driven by a decline in total cost of sales.
Valero Energy Corporation Price, Consensus and EPS Surprise
Adjusted operating income in the Refining segment totaled $1,745 million, down from $4,057 million in the year-ago quarter. The figure also missed our estimate of $1,759.6 million. Declining refining throughput volumes and a lower refining margin per barrel of throughput affected the segment.
In the Ethanol segment, Valero reported an adjusted operating profit of $39 million, which was in line with the year-ago quarter’s figure. Higher ethanol production volumes aided the segment.
Operating income in the Renewable Diesel segment declined to $190 million from $205 million in the year-ago quarter. Renewable diesel sales volume increased to 3,729 thousand gallons per day from 2,988 a year ago. The figure also surpassed our estimate of 3,380 thousand gallons per day.
Throughput Volumes
In the first quarter, Valero’s refining throughput volumes totaled 2,760 thousand barrels per day (MBbls/d), down from 2,930 MBbls/d reported in the first quarter of 2023.
In terms of feedstock composition, sweet crude, medium/light sour crude and heavy sour crude accounted for 63.6%, 10.1% and 14.6%, respectively, of the total volume. The remaining volume came from residuals, other feedstock, and blendstocks and others.
The Gulf Coast contributed 57.7% to the total throughput volume. Mid-Continent, North Atlantic and West Coast regions accounted for 16.4%, 16.3% and 9.6%, respectively, of the total throughput volume.
Throughput Margins
The refining margin per barrel of throughput declined to $14.07 from the year-ago level of $22.37.
Refining operating expenses per barrel of throughput was $4.71 compared with $4.78 in the year-ago quarter.
Depreciation and amortization expenses increased to $2.39 per barrel from $2.17 in the prior-year quarter.
As such, Valero’s adjusted refining operating income was $6.97 per barrel of throughput compared with $15.42 in the prior-year quarter.
Cost of Sales
Valero’s total cost of sales declined to $29,776 million from the year-ago figure of $32,132 million. The figure is also below our estimate of $30,372 million, primarily due to lower material costs and operating expenses.
Capital Investment & Balance Sheet
The first-quarter capital investment totaled $661 million, of which $563 million was allotted for sustaining the business.
The company had cash and cash equivalents of $4,917 million at the end of the first quarter. As of Mar 31, 2024, it had total debt and finance lease obligations of $10,897 million.
SM Energy Company is an independent oil and gas company, engaged in the exploration, exploitation, development, acquisition, and production of oil and gas in North America. SM currently has a Value Score of B.
The Zacks Consensus Estimate for SM’s 2024 and 2025 EPS is pegged at $6.33 and $6.96, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
EOG Resources, an oil and gas exploration company, boasts attractive growth prospects, top-tier returns, and a disciplined management team, leveraging highly productive acreages in prime oil shale plays like the Permian and Eagle Ford.
The Zacks Consensus Estimate for EOG’s 2024 EPS is pegged at $12.29. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
PBF Energy operates with a diverse asset base of six refineries, boasting higher daily crude processing capacity and a complex refining system enabling the production of superior-grade refined products.
The Zacks Consensus Estimate for PBF’s 2024 and 2025 EPS is pegged at $7.39 and $5.87, respectively. PBF currently has a Zacks Style Score of A for Value and A for Momentum. Over the past seven days, PBF has witnessed upward earnings estimate revisions for 2024 and 2025.
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Valero (VLO) Q1 Earnings Beat Estimates, Revenues Miss
Valero Energy Corporation (VLO - Free Report) reported first-quarter 2024 adjusted earnings of $3.82 per share, which beat the Zacks Consensus Estimate of $3.18. However, the bottom line declined from $8.27 reported in the year-ago quarter.
Total quarterly revenues decreased from $36,439 million in the prior-year quarter to $31,759 million. The top line also missed the Zacks Consensus Estimate of $32,826 million.
Better-than-expected quarterly earnings were primarily driven by a decline in total cost of sales.
Valero Energy Corporation Price, Consensus and EPS Surprise
Valero Energy Corporation price-consensus-eps-surprise-chart | Valero Energy Corporation Quote
Segmental Performance
Adjusted operating income in the Refining segment totaled $1,745 million, down from $4,057 million in the year-ago quarter. The figure also missed our estimate of $1,759.6 million. Declining refining throughput volumes and a lower refining margin per barrel of throughput affected the segment.
In the Ethanol segment, Valero reported an adjusted operating profit of $39 million, which was in line with the year-ago quarter’s figure. Higher ethanol production volumes aided the segment.
Operating income in the Renewable Diesel segment declined to $190 million from $205 million in the year-ago quarter. Renewable diesel sales volume increased to 3,729 thousand gallons per day from 2,988 a year ago. The figure also surpassed our estimate of 3,380 thousand gallons per day.
Throughput Volumes
In the first quarter, Valero’s refining throughput volumes totaled 2,760 thousand barrels per day (MBbls/d), down from 2,930 MBbls/d reported in the first quarter of 2023.
In terms of feedstock composition, sweet crude, medium/light sour crude and heavy sour crude accounted for 63.6%, 10.1% and 14.6%, respectively, of the total volume. The remaining volume came from residuals, other feedstock, and blendstocks and others.
The Gulf Coast contributed 57.7% to the total throughput volume. Mid-Continent, North Atlantic and West Coast regions accounted for 16.4%, 16.3% and 9.6%, respectively, of the total throughput volume.
Throughput Margins
The refining margin per barrel of throughput declined to $14.07 from the year-ago level of $22.37.
Refining operating expenses per barrel of throughput was $4.71 compared with $4.78 in the year-ago quarter.
Depreciation and amortization expenses increased to $2.39 per barrel from $2.17 in the prior-year quarter.
As such, Valero’s adjusted refining operating income was $6.97 per barrel of throughput compared with $15.42 in the prior-year quarter.
Cost of Sales
Valero’s total cost of sales declined to $29,776 million from the year-ago figure of $32,132 million. The figure is also below our estimate of $30,372 million, primarily due to lower material costs and operating expenses.
Capital Investment & Balance Sheet
The first-quarter capital investment totaled $661 million, of which $563 million was allotted for sustaining the business.
The company had cash and cash equivalents of $4,917 million at the end of the first quarter. As of Mar 31, 2024, it had total debt and finance lease obligations of $10,897 million.
Zacks Rank & Other Stocks to Consider
Valero currently carries a Zacks Rank #2 (Buy).
Investors interested in the energy sector may look at some other top-ranked stocks like SM Energy Company (SM - Free Report) , EOG Resources Inc., (EOG - Free Report) and PBF Energy Inc. (PBF - Free Report) . While SM Energy sports a Zacks Rank #1 (Strong Buy), EOG Resources and PBF Energy carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy Company is an independent oil and gas company, engaged in the exploration, exploitation, development, acquisition, and production of oil and gas in North America. SM currently has a Value Score of B.
The Zacks Consensus Estimate for SM’s 2024 and 2025 EPS is pegged at $6.33 and $6.96, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
EOG Resources, an oil and gas exploration company, boasts attractive growth prospects, top-tier returns, and a disciplined management team, leveraging highly productive acreages in prime oil shale plays like the Permian and Eagle Ford.
The Zacks Consensus Estimate for EOG’s 2024 EPS is pegged at $12.29. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
PBF Energy operates with a diverse asset base of six refineries, boasting higher daily crude processing capacity and a complex refining system enabling the production of superior-grade refined products.
The Zacks Consensus Estimate for PBF’s 2024 and 2025 EPS is pegged at $7.39 and $5.87, respectively. PBF currently has a Zacks Style Score of A for Value and A for Momentum. Over the past seven days, PBF has witnessed upward earnings estimate revisions for 2024 and 2025.