Free Research Report as Valero's Revenue Surged 20% and EPS Soared 44%

Stock Monitor: NGL Energy Partners Post Earnings Reporting

LONDON, UK / ACCESSWIRE / November 29, 2017 / Active-Investors free earnings report on Valero Energy Corp. (NYSE: VLO) ("Valero") has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=VLO. The Company reported its third quarter fiscal 2017 operating results on October 26, 2017. The world's largest independent petroleum outperformed top- and bottom-line expectations. Register today and get free access to our complimentary member's area where many more reports are available:

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Active-Investors.com is currently working on the research report for NGL Energy Partners LP (NYSE: NGL), which also belongs to the Basic Materials sector as the Company Valero Energy. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=NGL

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Valero Energy most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:

www.active-investors.com/registration-sg/?symbol=VLO

Earnings Highlights and Summary

For the three months ended September 30, 2017, Valero reported operating revenues of $23.56 billion, up 20% compared to $19.65 billion in Q3 2016. The Company's revenue numbers exceeded analysts' expectations of $20.18 billion.

The Company reported net income attributable to Valero's stockholders of $841 million, or $1.91 per share, for Q3 2017, up 43.61% compared to $613 million, or $1.33 per share, for Q3 2016. For the reported quarter, the adjusted net income attributable to Valero's stockholders was $571 million, or $1.24 per share, excluding a $42 million income tax benefit from the disposition of Aruba assets. Valero's earnings beat Wall Street's estimates of $1.83 per share.

Segment Results

During Q3 2017, Valero's refining segment reported an operating income of $1.4 billion compared to $934 million for Q3 2016. The increase in the Company's operating income was driven primarily by higher gasoline and distillate margins, and wider discounts for domestic sweet crude oils relative to Brent crude oil.

In the reported quarter, Valero's refinery throughput capacity utilization was 92% and throughput volumes averaged 2.9 million barrels per day, which was 33,000 barrels per day higher on a y-o-y basis. The Company exported a total of 339,000 barrels per day of gasoline and diesel during the reported quarter.

During Q3 2017, Valero's Ethanol segment reported an operating income of $82 million compared to $106 million for Q3 2016. The decrease in operating income was attributed primarily to higher corn prices and lower distillers grain prices that pressured margins. Ethanol production volumes averaged 4.0 million gallons per day in Q3 2017, which was 217,000 gallons per day higher on a y-o-y basis.

For Q3 2017, Valero's VLP segment reported an operating income of $69 million versus $56 million for Q3 2016. The increase in operating income was driven primarily by contributions from the Meraux and Three Rivers terminals, which were acquired in September 2017, and the Red River Pipeline segment, which was acquired in January 2017.

Investing and Financing Activities

Valero's capital investments totaled $565 million for Q3 2017, of which $73 million was for turnarounds and catalyst. The Company returned $600 million to stockholders in the reported quarter, of which $309 million was paid as dividends and the balance was used to purchase 4.2 million shares of its common stock, resulting in a total payout ratio of 58% for the first nine months of 2017. Valero is targeting a total payout ratio between 40% and 50% of adjusted net cash provided by operating activities for 2017.

Valero generated approximately $1 billion of net cash from operating activities in Q3 2017, including the negative impact from a $315 million increase in working capital. Excluding the change in working capital, net cash generated was approximately $1.4 billion. Valero ended the reported quarter with $8.5 billion of total debt and $5.2 billion of cash and temporary cash investments. The Company's debt to capital ratio, net of $2.0 billion in cash, was 24%.

Strategic Update

Valero announced that it is targeting $2.7 billion of total capital investments in 2017, consisting of $1.1 billion for growth projects and $1.6 billion for sustaining the business. During the reported quarter, the Company announced the signing of long-term agreements with IEnova to use terminals to be constructed at the Port of Veracruz, and near the cities of Puebla and Mexico City to import refined products into central Mexico beginning in late 2018.

Stock Performance Snapshot

November 28, 2017 - At Tuesday's closing bell, Valero Energy's stock rose 1.36%, ending the trading session at $83.24.

Volume traded for the day: 3.01 million shares.

Stock performance in the last month ? up 7.06%; previous three-month period ? up 22.56%; past twelve-month period ? up 30.49%; and year-to-date ? up 21.84%

After yesterday's close, Valero Energy's market cap was at $36.81 billion.

Price to Earnings (P/E) ratio was at 18.06.

The stock has a dividend yield of 3.36%.

The stock is part of the Basic Materials sector, categorized under the Oil & Gas Refining & Marketing industry. This sector was up 0.8% at the end of the session.

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