Where Valero is Making Money Now and Where it is Not
Recently, this is where Valero is making its money:
1)It's Mid-con refineries: WTI discount is about $14 a barrel lower than last year while LLS is only about $3 a barrel lower from last year at this time. (MPC and HFC should have fanastic quarters compared to a year ago)
2)It's West/Central Texas refineires (Three Rivers and Corpus Christy): West Texas Sour Discount is about $25 a barrel lower (huge!) than last year while LLS is only about $3 a barrel lower from last year at this time.
3)Retail is having a bang up quarter with gas margins averaging 34 cents a gallon.
4)North Atlanta Region (Quebec City, Canada and Pembroke, England): Making decent money this quarter on gasoline and more so on distillates.
5)Gulf Coast Heating Oil and Diesel.
6)West Coast Diesel
This is where they are not making money:
1)Ethanol still in the dumps
2)Gulf Coast Gasoline
3)West Coast Gasoline
All in all it is going to be a decent quarter and well above the losing quarter last year. Recently, estimates have been trailing up which is good. Also, heavy sour crude discounts have been good.
Wish Valero would give a special dividend this month like a bunch of companies are doing but I don't think it is in the cards.