VLO Sep 2020 70.000 put

OPR - OPR Delayed Price. Currency in USD
-3.72 (-13.96%)
At close: 3:23PM EDT
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Previous Close26.65
Expire Date2020-09-18
Day's Range21.99 - 22.93
Contract RangeN/A
Open Interest247
  • Pandemic forces Valero Alamo Bowl into waiting game
    American City Business Journals

    Pandemic forces Valero Alamo Bowl into waiting game

    While the Alamo Bowl has changed title sponsors multiple times, the game has gone on uninterrupted since the event's inception in 1993. The pandemic has prompted the NFL to stage its popular April draft as a virtual event, with team executives making their picks from home. “The biggest impact of the pandemic is the unknown,” Valero Alamo Bowl President and CEO Derrick Fox told me.

  • 3 High-Powered Dividends Stocks With Over 7% Dividend Yield

    3 High-Powered Dividends Stocks With Over 7% Dividend Yield

    After weeks of historic uncertainty, global stock markets are quickly settling down from now what is now nearly a month of record share price volatility. It appears that social distancing is helping slow new cases of the coronavirus, and there is hope that the global economy will return back to normal. Many stocks have bounced significantly from their lows because of this hope, but there are still plenty of deals to be had.Some well capitalized energy firms, which are already operating in uncertain times as many economies around the world remain in standby mode from the social distancing required to keep covid-19 at bay, are also having to deal with a dramatic drop in oil prices. This was brought by production disagreements between major producing countries, including Russia and Saudi Arabia, and a major oversupply of oil. In many parts of the industry, the companies that generate strong cash flows also have generous dividend payouts.But not all energy companies are created equal. The below firms are not directly dependent on oil prices for their profits and cash flow that they use for dividend payments. The sudden (but temporary) drop demand is certainly a near-term concern, but should improve quickly as people return to work. A recent screen in TipRanks database helped uncover important details on these three high-powered dividend stocks. Let's take a closer look.Valero Energy Corp (VLO)Valero is a pure play refiner. In its words, it has “premiere assets and low cost operations.” As one of the largest refiners out there, it’s hard to argue with them. Its 15 refineries support 3.2 million barrels per day (BPD) and its has over 3,000 miles of pipelines to market and distribute the fuel it makes. It’s a disciplined capital allocator, and though the current environment is adversely affecting demand, conditions should soon return back to more normal conditions.RBC Capital's Brad Heffern has Valero on its “Global Energy Best Bets Ideas” list and believes that the firm is “positioned to take advantage of global crude oversupply and a low position on the cost curve.” It also cited the “high complexity” of Valero’s refining operations, which is a good thing as it allows it to tactically shift refining to areas seeing higher demand, and/or better margins.Speaking of the dividend, Heffern sees “less risk of a dividend cut” compared to the peer group. Indeed, in the previous three fiscal years Valero has generated average operating cash flow of around $5 billion. Subtracting out an average of $1.5 billion to grow and maintain its extensive refiner facilities has left about $3.5 billion annually to buy back stock and pay the dividend. The dividend requires $1.5 billion, which is right at its target to pay out 40% to 50% of that free cash flow. So, looking back there appears to be plenty of cushion to fund and support the dividend payout. Overall, annualized, Valero's dividend comes out to $3.92, giving a yield of 8.5%.Unsurprisingly, Heffern rates Valero shares a Buy along with a $59.00 price target -- 15% upside from current levels. (To watch Heffern's track record, click here)Wolfe Research said it even more succinctly in a recent research note on Valero. Lead analyst Sam Margolin sees “ample liquidity, no [debt] maturities near term, and upside leverage with dividend growth.” We like the vote of confidence, and patience in the current environment that should only continue to settle down.All in all, among of the 10 analysts who've ventured an opinion on Valero in the last month, each and every one of them put a "buy" rating on the stock. The overwhelming consensus is that Valero shares should be worth $75.44 per share over the next 12 months. So, the message is clear: Valero is a Strong Buy. (See Marathon Petroleum stock analysis on TipRanks)Kinder Morgan (KMI)Oil and gas pipeline operator Kinder Morgan stresses that its business is driven by fee-based arrangements that are “entitled to payment regardless of throughput.” This implies its business is not driven by the swings in commodity prices and should insulate it from the current dramatic drop in oil prices.Also importantly, UBS analyst Shneur Gershuni detailed in a recent report that 80% of Kinder’s business is tied to natural gas and refined products, not crude oil. Gershuni also cited Kinder’s balance sheet strength, which was relayed in a discussion with Kinder CEO Steven Kean. He noted that Kinder still plans to boost its dividend another 25% this year, continuing a trend to boost its annual payout. The dividend is currently $1 per share and will go up to $1.25 for a current dividend yield of 7%, based off the current share price of $14.72.It's not surprising, though, why Gershuni reiterated his Buy rating on KMI shares along with a $26 price target. Should the target be met, investors pockets will jingle with returns in the shape of 77%. (To watch Gershuni's track record, click here)Turning to Kinder’s cash flow statement, its bias toward self-funding its operations is apparent. Operating cash flow production has average just below $5 billion over the past three annual periods. Capital expenditure, or the investment to grow and maintain its pipeline operations, was $2.3 billion, leaving $2.7 billion in free cash flow. That suggests there is ample room to continue and expand the payout to shareholders. Kinder is also paying down its debt over time. All good signs.When looking at Wall Street’s stance, Gershuni is not the only bull, as TipRanks analytics showcase KMI as a Buy. Out of 12 analysts polled in the last 3 months, 8 rate KMI a Buy, while 4 suggest Hold. Meanwhile, the 12-month average price target stands at $18.58 marking a 26% upside from where the stock is currently trading. (See Kinder Morgan stock analysis on TipRanks)Marathon Petroleum (MPC)Marathon Petroleum has some diversification that, despite the past saber rattlings by activist investors, is helping it through the current economic woes brought by fighting covid-19. It is an oil refiner, energy pipeline owner and facilitator, and, best know to most consumers, operates gas stations under the Marathon and Speedway brand names.Refining operations make money based off the price differentials, or spreads, of various types of oil. For instance, heavier, dirtier oil (think Canadian oil sands or Venezuelan oil) can trade at a higher price, which can make it more profitable for refiners to, well, refine, compared to lighter (and sweeter) grades. Gasoline margins at gas stations also oscillate based off of market demand and supply. Diesel and regular gasoline spreads also impact what Marathon chooses to refine. Its complicated stuff, but Marathon has its hands around how to navigate the spreads.Income was enough to raise the dividend to 58 cents. The annual payment, $2.32, gives the stock a yield of 10%, far higher than the 2% average dividend yield found on the broader markets. Marathon has a reliable dividend history, and adjusts the payment when needed to ensure that the company can afford the dividend.Marathon had been mulling over caving to activist investor demands, but for now it is not selling its gas stations and looks to be keeping the structure of its pipelines (midstream assets) intact. In a report on March 18, research firm Jefferies sees the decision to keep its relationships with its pipeline entities as a “positive”, and noted the hiring of a new CEO (Michal Hennigan) as the removal of another overhang.Lead analyst Christopher Sighinolfi ended his most recent report by suggesting MPC is a “deeply discounted security[y] and sees catalysts in the spin out of the gas stations and stock buybacks as catalysts to push the stock back toward recent highs.As a result, Sighinolfi reiterated a Buy rating on MPC shares alongside a $74 price target, which implies nearly 200% upside from current levels. (To watch Sighinolfi's track record, click here)What does the rest of the Street have to say? As it turns out, other analysts are in agreement. 7 Buys and 3 Hold ratings add up to a Moderate Buy consensus rating. The $62.11 average price target puts the upside potential below Sighinolfi’s forecast at $62.11. (See Marathon Petroleum stock analysis on TipRanks)Disclosure: The author has a long position in MPC and KMI.To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

  • This Dayton-based ethanol company might repurpose its plants to make hand sanitizer
    American City Business Journals

    This Dayton-based ethanol company might repurpose its plants to make hand sanitizer

    A Dayton-based alternative energy investment company could become a valuable asset in the coming weeks as the nationwide demand for hand sanitizers and other medical disinfectants continues to surge.

  • Employees worried about Valero response to virus cases at Texas refinery: sources

    Employees worried about Valero response to virus cases at Texas refinery: sources

    Employees at Valero Energy Corp's Port Arthur, Texas, refinery expressed worries about the company's slow response to keep the coronavirus from spreading there after two workers tested positive, four people familiar with the matter said. Valero, the nation's second-largest refiner, started to cut non-essential work and related contractors only this week after starting temperature checks last week - much later than other major U.S. refiners, according to the people. Valero spokeswoman Lillian Riojas said the company maintains the privacy of employee health information and as such would "not publicize individual cases of COVID-19."

  • GlobeNewswire

    Valero Energy Corporation Announces Change of Location and Time for Annual Meeting of Stockholders to Be Held on April 30, 2020

    There will be no physical meeting, and stockholders will not be able to attend the Annual Meeting in person. Additionally, in order to accommodate the transition to a virtual meeting format, the time of the Annual Meeting has been changed to be 2:00 p.m., Central Time, on the previously scheduled date for the Annual Meeting of April 30, 2020. For additional information regarding accessing and participating in the virtual Annual Meeting, including how to submit questions and vote at the Annual Meeting, please refer to Valero’s additional proxy materials filed with the Securities and Exchange Commission on April 6, 2020, which are being sent on or about April 6, 2020, to stockholders of record as of the close of business on March 4, 2020.

  • Valero gets into hand sanitizer manufacturing
    American City Business Journals

    Valero gets into hand sanitizer manufacturing

    The sanitizer will be produced at one of its ethanol plants in Iowa and distributed throughout the country.

  • Revenue Downgrade: Here's What Analysts Forecast For Valero Energy Corporation (NYSE:VLO)
    Simply Wall St.

    Revenue Downgrade: Here's What Analysts Forecast For Valero Energy Corporation (NYSE:VLO)

    The latest analyst coverage could presage a bad day for Valero Energy Corporation (NYSE:VLO), with the analysts making...

  • How Does Valero Energy's (NYSE:VLO) P/E Compare To Its Industry, After The Share Price Drop?
    Simply Wall St.

    How Does Valero Energy's (NYSE:VLO) P/E Compare To Its Industry, After The Share Price Drop?

    To the annoyance of some shareholders, Valero Energy (NYSE:VLO) shares are down a considerable 33% in the last month...

  • 5 Energy Companies With the Strength to Weather the Coronavirus Storm

    5 Energy Companies With the Strength to Weather the Coronavirus Storm

    Energy sector Shiller price-earnings ratio dips into the single digits Continue reading...

  • Reuters

    Falling Latam fuel demand leaves U.S. refiners without favored export customers

    MEXICO CITY/NEW YORK, March 27 (Reuters) - Demand for refined products in Latin America is quickly drying up as the coronavirus pandemic worsens, leaving U.S. refiners without their primary export destination as the virus spreads. The crisis has nearly shut down worldwide air travel and is destroying fuel demand, which could fall by 15% to 20% globally in coming months. The virus had not hit Latin America with the same intensity as Europe or the United States, but it is increasingly spreading there, and a growing number of nations are imposing travel restrictions.

  • Barrons.com

    Oil-Refiner Stocks Jumped Because They Can Make Money Off Low Crude Prices

    The stocks have arguably already taken all of that into account and then some, Jefferies analyst Chritopher Sighinolfi argues.

  • Oil Resumes Plunge After IEA Warns That Demand Is in ‘Free Fall’

    Oil Resumes Plunge After IEA Warns That Demand Is in ‘Free Fall’

    (Bloomberg) -- Oil resumed its decline after the head of the International Energy Agency warned global demand was in ‘free fall’ as coronavirus lockdowns wreak havoc on consumption while major producers pump more.Futures in New York tumbled 7.7% in New York, dropping for the first time this week, after IEA executive director Fatih Birol said demand could drop as much as 20 million barrels a day. The gloomy outlook exacerbated investor pessimism driven by a U.S. decision to rescind a crude-buying offer after failing to win funding from Congress.Market gauges have been signaling weakness, with key swaps in the North Sea plummeting, and U.S. traders and consultant IHS Markit raising alarms about storage space running out. Goldman Sachs Group Inc. also warned of a massive contraction in demand that not even a supply freeze or cut from OPEC could rectify.“We’ve never seen something like this before,” said Mike Hiley, president of OTC Futures. “Oil is going to continue to be stuck in this rut given the simultaneous supply and demand shocks. Stimulus doesn’t really help these issues. Just because people have more money in their pockets, doesn’t mean they’re getting in their cars.”Falling crude prices were undeterred by the U.S. Senate approving a $2 trillion stimulus plan after days of intense negotiations. The House is under pressure to pass the bill quickly and send it to President Donald Trump for his signature as signs of weakness in the economy mount with American jobless claims surging to a record 3.28 million last week.The White House is urging Saudi Arabia to dial back its plan to flood the crude market. Still, any agreement to curtail supply among producers will be too little and too late in the face of an unprecedented shock for the world’s oil refining system, Goldman said.Refineries in India -- the world’s third-largest crude importer -- are preparing to slash processing rates by as much as half, according to estimates from one of the country’s biggest Middle Eastern suppliers.“We expect crude demand to now start declining, following products demand on its downwards path, and this is what will fundamentally drive prices lower,” said Per Magnus Nysveen, head of analysis at Rystad Energy AS.Producers are already showing signs of strain with Brazil’s Petrobras cutting output through the end of March, while some operators in Canada are shutting production altogether.The glut extends far beyond the U.S. The Brent Dated-to-frontline swap, which helps traders to cover the gap between the futures and physical market in the North Sea was at the weakest level in at least a decade on Thursday. Similarly, Russian Urals crude traded at a nine-year low, and the country plans to boost its eastern exports to a record in May.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Investing.com

    Stocks - Dow Keeps Rolling on Stimulus High

    By Yasin Ebrahim

  • Investopedia

    Is It Time to Buy Energy Stocks?

    Many energy companies could get bought out or go bankrupt in coming months, but these blue chips are well positioned to weather the storm.

  • GlobeNewswire

    Valero Energy Corporation to Announce First Quarter 2020 Earnings Results on April 29, 2020

    It will now host a conference call on April 29, 2020, at 10:00 a.m. ET to discuss first quarter earnings results, which will be released earlier that day, and provide an update on company operations. Valero Energy Corporation, through its subsidiaries (collectively, “Valero”), is an international manufacturer and marketer of transportation fuels and petrochemical products. Valero is a Fortune 50 company based in San Antonio, Texas, and it operates 15 petroleum refineries with a combined throughput capacity of approximately 3.2 million barrels per day and 14 ethanol plants with a combined production capacity of 1.73 billion gallons per year.

  • Here are the organizations Valero is supporting during the coronavirus pandemic
    American City Business Journals

    Here are the organizations Valero is supporting during the coronavirus pandemic

    Valero is donating to eight local charities providing critical support services during the coronavirus pandemic.

  • GlobeNewswire

    Valero Energy Corporation Announces $1.8 million Commitment to Communities in Response to the COVID-19 Pandemic

    Valero Energy Corporation (NYSE: VLO, “Valero”) announced that the Valero Energy Foundation has committed $1.8 million to support organizations on the front-lines helping people most in need primarily in cities where the company operates. In addition, Valero is also providing gas cards to the selected charitable organizations to provide access to essential fuels and products for their operations. “The health and the safety of our employees, our families, and our communities are critically important,” said Joe Gorder, Valero Chairman and Chief Executive Officer.

  • EDF overhauling recruitment strategy to combat uneasy pandemic climate
    American City Business Journals

    EDF overhauling recruitment strategy to combat uneasy pandemic climate

    Alamo City leaders will have to be more creative in their wooing of companies and jobs as recruiting assets are cancelled or postponed. Here's how they plan to maintain the momentum.

  • Investopedia

    Top Energy Stocks for April 2020

    The energy sector is comprised of companies focused on the exploration, production, and marketing of oil, gas, and renewable resources around the world. Popular energy sector stocks include upstream companies that are primarily engaged in the exploration of oil or gas reserves. Well-known companies in the sector are Hess Corp. (HES) and Diamondback Energy Inc. (FANG).

  • The Independent Director of Valero Energy Corporation (NYSE:VLO), Randall Weisenburger, Just Bought 81% More Shares
    Simply Wall St.

    The Independent Director of Valero Energy Corporation (NYSE:VLO), Randall Weisenburger, Just Bought 81% More Shares

    Valero Energy Corporation (NYSE:VLO) shareholders (or potential shareholders) will be happy to see that the...

  • Barrons.com

    7 Stocks That Could Ride Out the Turmoil in Energy Markets

    Russia and Saudi Arabia are battling each other and America’s shale producers. There will be casualties, but some U.S. drillers, shippers, and refiners will survive to fight another day.

  • The Zacks Analyst Blog Highlights: Cenovus, Matador, Valero, Phillips 66 and Exxon Mobil

    The Zacks Analyst Blog Highlights: Cenovus, Matador, Valero, Phillips 66 and Exxon Mobil

    The Zacks Analyst Blog Highlights: Cenovus, Matador, Valero, Phillips 66 and Exxon Mobil

  • Texas Open, SA Missions the latest pro sports affected by coronavirus
    American City Business Journals

    Texas Open, SA Missions the latest pro sports affected by coronavirus

    The PGA Tour has determined that its events, including the 2020 Valero Texas Open, will be played as scheduled — without spectators. The Texas Open is scheduled for March 30 through April 5 at TPC San Antonio. The tournament will be conducted with essential personnel only to protect the safety of fans, players, sponsors and volunteers.

  • Valero Energy Corporation (VLO): Hedge Funds Caught Wrong Footed
    Insider Monkey

    Valero Energy Corporation (VLO): Hedge Funds Caught Wrong Footed

    Coronavirus is probably the 1 concern in investors' minds right now. It should be. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW. We predicted that a US recession is imminent and US stocks will go down by at least 20% in the next 3-6 […]

  • What Is Valero Energy's (NYSE:VLO) P/E Ratio After Its Share Price Tanked?
    Simply Wall St.

    What Is Valero Energy's (NYSE:VLO) P/E Ratio After Its Share Price Tanked?

    To the annoyance of some shareholders, Valero Energy (NYSE:VLO) shares are down a considerable 35% in the last month...