Key Takeaways Enterprise Products offers stable, fee-based revenues with inflation-linked contracts.EPD has 50,000 miles of pipelines and $4.8B in projects boosting cash flow.Enterprise Products has returned $62B since IPO and raised distributions for 27 years.In the oil and energy sector, refining operations are highly vulnerable to fluctuations in oil and natural gas prices. In contrast, midstream activities, by their business model, generate stable fee-based revenues. This doesn’t mean that investors sho ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission file number 001-13175 VALERO ENERGY CORPORATION (Exact name of registrant as specified in its charter) (State or othe ...

Valero Energy Corp (NYSE:VLO) is among the best oil & gas refinery stocks to buy now. On February 13, Reuters reported that Valero Energy Corp (NYSE:VLO) was set to import up to 6.5 million barrels of crude from Venezuela in March. The report further said Valero would process the crude at its Gulf Coast refineries. Valero Energy (VLO): A Refining Giant With Earnings Momentum and Global Reach In its Q4 2025 earnings report released on January 29, Valero posted results that surpassed consensus expectations ...

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that me ...

Core Insights - Phillips 66 (PSX) is trading at a trailing 12-month EV/EBITDA multiple of 13.25x, significantly higher than the industry average of 5.13x, with Valero Energy Corporation (VLO) and Par Pacific Holdings, Inc. (PARR) valued at 7.87x and 5.06x respectively [1][8] Business Environment - Softer crude oil prices are expected to benefit PSX's refining business, as well as those of VLO and PARR [3] - The current West Texas Intermediate (WTI) oil price is around $63 per barrel, which is lower than the previous year, allowing PSX to purchase oil at a reduced cost [4][5] - The U.S. Energy Information Administration (EIA) anticipates that global oil inventories will continue to rise, contributing to a sustained soft pricing environment [5] - EIA projects the average WTI price for 2026 to be $53.42 per barrel, down from $65.40 per barrel in 2025, which is likely to enhance PSX's refining margins [6] Diversified Business Model - Unlike many of its peers, PSX has diversified its operations across midstream and chemicals, allocating $1,110 million for both refining and midstream activities in 2026 [7][8] - The midstream business is characterized by stable cash flows and reduced vulnerability to commodity price fluctuations, providing PSX with a buffer against market volatility [10] Stock Performance - Despite positive developments, PSX's stock has underperformed the industry over the past year, gaining 24.8% compared to the industry's 27.2% increase, while PARR and VLO saw gains of 170.6% and 47.9% respectively [11] - As of the end of Q4 2025, PSX's net debt to capital ratio was 38%, which is above the management's target of 30%, indicating elevated leverage [13]

Core Viewpoint - Valero Energy is poised to become the leading foreign refiner of Venezuelan crude oil, planning to purchase up to 6.5 million barrels in March for its Gulf Coast refineries, following the easing of U.S. sanctions on Venezuela [1] Group 1: Valero's Position and Actions - Valero was among the first U.S. refiners to resume Venezuelan crude imports after a $2 billion oil supply deal with Venezuela's interim government and the easing of sanctions [2] - If Valero successfully acquires 10 or more cargoes in March, it could process approximately 210,000 barrels per day, surpassing Chevron as the top U.S. refiner of Venezuelan crude [2] - This would mark the highest volume of Venezuelan crude processed by Valero since U.S. sanctions were imposed on Venezuela's oil industry in January 2019 [3] Group 2: Chevron's Role and Supply Dynamics - Chevron is expected to increase its Venezuelan crude exports to around 300,000 barrels per day in March, up from 220,000 barrels per day in January, with a significant portion likely going to Valero [3] - Valero is anticipated to receive most of its planned import volume from Chevron in March, highlighting the interdependence between the two companies [4] Group 3: Market Context and Future Expectations - Valero has engaged in negotiations with trading houses like Trafigura for additional cargoes, which were among the first authorized by the U.S. government to trade Venezuelan oil [4] - A Valero spokesperson indicated that Venezuelan crude is expected to constitute a significant portion of its heavy-crude purchases in February and March [6] - Valero has a historical long-term supply agreement with PDVSA for crude purchases prior to the sanctions, indicating established ties with Venezuela's state oil company [7]

Core Insights - Valero Energy Corporation (VLO) stock is nearing its 52-week high of $206.77, closing at $196.91 on February 12, with a 50.3% increase compared to a 30.2% gain in the broader sub-industry [1][7] - Valero operates 15 refineries across the U.S., Canada, and Peru, with a combined throughput capacity of 3.2 million barrels per day, setting it apart from other independent refiners [2] - The current softness in crude oil prices is expected to benefit Valero by lowering input costs, as the West Texas Intermediate spot crude price is projected to drop from $65.40 per barrel in 2025 to $53.42 in 2026 [5] - Valero's refineries possess operational flexibility to process various feedstocks, allowing for adjustments in production based on market conditions, which enhances profitability [6] Financial Metrics - Valero's stock trades at a trailing 12-month EV/EBITDA of 7.73X, which is above the industry average of 5.06X [7][10] - Competitors Phillips 66 and HF Sinclair have trailing 12-month EV/EBITDA ratios of 13.03X and 6.82X, respectively [10] Market Position - The company is expected to benefit from strong refining margins due to lower crude prices, enabling it to convert cheaper feedstock into high-value products [9] - Despite the potential for profitability, Valero's current valuation suggests it may be overvalued, prompting a recommendation for investors to wait for a more favorable entry point [12]

Company Impact - A fire at Valero's Ardmore oil refinery in Oklahoma resulted in one death from injuries sustained during the incident [1] - Valero Energy Corp has not yet provided a comment regarding the situation [1] Industry Context - The incident highlights ongoing safety concerns within the oil refining industry, which may impact operational protocols and regulatory scrutiny [1]

Group 1: Company Overview - Valero Energy Corporation (NYSE:VLO) is recognized as the world's premier independent petroleum refiner and a leading producer of low-carbon transportation fuels [2]. Group 2: Financial Performance - Valero posted strong Q4 2025 results, with a refining margin growth of over 61% YoY to $13.61 per barrel and an average throughput volume of 3.1 million barrels per day, up from 2.9 million bpd a year earlier [3]. - The company reported adjusted earnings of $3.82 per share for Q4, exceeding estimates by $0.55, and revenue of $30.37 billion, which topped forecasts by over $2.4 billion [3]. Group 3: Market Position and Strategy - Valero is well-positioned to benefit from US actions in Venezuela, as its refineries are designed to process heavier crude from the country, and it has engaged three authorized sellers of Venezuelan crude for purchases [4]. Group 4: Analyst Ratings and Price Targets - Following the strong Q4 earnings, UBS analyst Manav Gupta raised the price target for Valero from $190 to $215 while maintaining a 'Buy' rating [5]. - Other analysts from Citi, Morgan Stanley, and Piper Sandler have also increased their price targets for Valero in recent days [5]. Group 5: Stock Performance - The share price of Valero surged by 11.74% between February 2 and February 9, 2026, making it one of the top-performing energy stocks for that week [1].

Core Insights - Several energy companies, including Valero and Phillips 66, have announced refinery closures in California due to regulatory challenges and operational losses [1][5][10] Refinery Closures - Valero Energy Corporation will close its Benicia refinery, which had a capacity of 170,000 barrels per day and employed over 400 people, and also evaluated its Wilmington refinery, which produced 15% of Southern California's asphalt supply [3][4] - Phillips 66 ended operations at its Los Angeles refineries, which spanned 650 acres and employed about 600 [5] - Chevron is relocating its headquarters from San Ramon to Houston, Texas, having operated in California since 1879 and employing over 2,000 people [6] Key Factors - Valero reported $1.1 billion in asset write-offs for its Benicia and Wilmington refineries in Q1 2025, while Chevron disclosed after-tax charges of $3.5 billion to $4 billion in Q4 2023, primarily due to asset impairments in California [8][9] - The regulatory environment in California has been cited as a significant factor for these closures, with policies aimed at reducing fossil fuel reliance over the past two decades [9][10] - California Assembly Bill AB X2-1, effective January 2025, allows the California Energy Commission to enforce minimum inventory levels for refiners, impacting profit margins [11][12] Potential Impact - The closure of Valero's Benicia refinery, which produced 4.5 to 4.7 million gallons of gasoline per day, could lead to fuel shortages and price spikes, especially if supply chains are disrupted [14][16] - California has the second-highest average gas prices in the U.S., with gasoline averaging $4.38 per gallon as of January 2025 [18] - Concerns have been raised about the impact of refinery closures on U.S. military installations in California, which may face jet fuel supply challenges [20][21] Legislative and Regulatory Considerations - Calls for legislative changes to support refiners and address the restrictive policies in California have been made, although success is uncertain [23]