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Valero Energy Corporation Message Board

  • vlono.1fan vlono.1fan May 3, 2013 11:26 AM Flag

    Why Own Valero Update?

    Reasons to own Valero:

    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.

    Good luck,


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