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Valero Energy Corporation Message Board

  • vlono.1fan vlono.1fan Apr 4, 2013 2:39 PM Flag

    Why Own Valero?

    Typing this list helps me remind myself why I should own Valero:

    1)$140,000,000,000.00 in sales company ($140 Billion in sales)
    2)Cheap US Crude oil input costs (US shale oil is game changer)
    3)Low natural gas prices (US shale natural gas in game changer)
    4)Almost all of Valero's refineries on the water enabling them to export refined products to anywhere in the world
    5)Retail spin-off coming to shareholders
    6)2% dividend yield and more coming
    7)Valero has the hardware to process heavy sour discounted crude
    8)Valero's $3.1 Billion 2 hydrocracker projects almost complete creating an additional $1 per share in earnings (one operating and one to start up by end of quarter).
    9)Closure of significant Altantic Basin refineries has occured
    10)Valero concentrates on the more profitable distillates where it intends to get to 50% of production
    11)Valero's reliablity of its refineries are on the increase
    12)Managable debt level and paying off debt
    13)Ended 2012 with $1.7 Billion in cash
    14)Ethanol margins starting to increase
    15)Central and South American countries continue to have troubles running refineries creating an export market for Valero
    16)US Economy improving and distillate demand is up from a year ago
    17)Valero finally getting in the train business of getting discounted crude
    18)Capital spending this year should drop by $500 million from last year
    19)Valero's refineries are run by hardworking US workers (except one in Canada and England)
    20) Valero has closed or sold under performing refineries
    21)Distillate inventories at very low levels

    Those are the positives. What are the headwinds. Three words: government, government, government.

    Government headwinds: RIN's, EPA's new low sulfur gasoline proposal, Keystone XL north not approved, California AB 32 carbon rules, and future US carbon Tax rules. The Obama administration wants to make gasoline so expensive so that alternate "green" energy can compete like electric, etc.

    Other headwinds: see separate post.


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