1)Not spending any more capital on retail business and got rid of 12,000 employees
2)Start up next month of second hydrocracker (St. Charles) while initial one is performing well
3)Start up of bio-diesel JV next month
4)Low Natural Gas Prices
5)Low US Crude Discounts
6)Valero has the flexiblity to process both sour and sweet crude allowing it to change its feedstocks based on what is best to run.
7)Valero finally getting into the logistics business of getting more discounted crude to its refineries
8)Valero is going to creat an MLP for all its logistics businesses
9)Major starts up of pipelines to the Gulf of Mexico this year whereby making LLS trade at a discount to Brent
10)Valero processing more profitable distillates and getting close to a production level of 1:1 on gasoline and distillates.
11)Valero has raised the dividend from the low of 20 cents per year to 80 cents per year and will continue to raise the dividend
12)Valero is buying back stock. Year to date it has bought back almost 10 million shares.
13)Valero will receive another $500 Million in cash (or hopefully more) once it sells its 15.2 million shares of
CST it owns
14)Valero is paying down debt
15)Valero is going to expand its two hydrocracker projects and has has two other projects that will allow it to process more cheap sweet US crude
16)Gasoline prices are reasonable generating demand
17)Economy slowing improving generating demand for its products
18)Major hurricane season coming creating the potential for margins to spike
19)Valero's reliablity of its operations of its refineries is increasing
20)This summer/fall the Keystone pipeline will finally get approved.
-The Gulf Coast crack last week was the highest in weeks (and maybe months)
-The West Coast crack this quarter has been very strong
-Ethanol year to date is making an additional 25 cents a gallon compared to the average last year and second quarter so far has been very strong.
-Heavy sour crudes discounts finally starting to tick upwards.