Valero Energy Stock Price, News & Analysis

Valero Energy Corporation (NYSE: VLO) has priced a public offering of $650,000,000 aggregate principal amount of 4.000% Senior Notes due 2052. The offering is expected to close on February 7, 2022, pending customary closing conditions. Valero plans to use the net proceeds from this offering to finance cash tender offers to repurchase several outstanding Senior Notes and for general corporate purposes. J.P. Morgan Securities LLC, BofA Securities, Inc., Scotia Capital (USA) Inc., and Wells Fargo Securities, LLC acted as joint book-running managers for the offering.

Valero Energy Corporation (NYSE: VLO) has initiated tender offers to purchase up to $1,000,000,000 in cash for various outstanding Senior Notes, including those due in 2025, 2026, 2027, and 2028. The tender offers are set to expire at midnight on March 2, 2022, with an early tender date of February 15, 2022. Notably, the offers are subject to acceptance priority levels and a Series Tender Cap of $500,000,000 for certain notes. Valero’s commitment to this tender is contingent upon meeting specific conditions outlined in the Offer to Purchase.

Valero reported a strong performance for Q4 2021, with net income of $1,009 million ($2.46/share), compared to a net loss of $359 million in Q4 2020. Adjusted net income for the year reached $1,152 million, showcasing notable recovery from a loss of $1,421 million in 2020. Valero returned $401 million to shareholders through dividends in Q4 and $1.6 billion for the year. The company reduced its long-term debt by $693 million in Q4 and $1.3 billion for 2021. Valero's refining segment achieved $1.3 billion in Q4 operating income, and their renewable diesel segment saw a rise in sales volumes.

Valero Energy Corporation (NYSE: VLO) has announced a quarterly cash dividend of $0.98 per share, payable on March 3, 2022, to stockholders of record as of February 3, 2022. As a leading manufacturer and marketer of transportation fuels and petroleum products, Valero operates 15 refineries with a throughput capacity of approximately 3.2 million barrels per day and 12 ethanol plants producing about 1.6 billion gallons annually. The company is committed to sustaining its dividend amid its operational expansion.

Valero Energy Corporation (NYSE: VLO) has successfully completed debt reduction and refinancing transactions, reducing its long-term debt by approximately $1.3 billion. This includes issuing $500 million of 2.800% Senior Notes due 2031 and $950 million of 3.650% Senior Notes due 2051. The proceeds, along with cash reserves, were used to repurchase around $2.1 billion of various senior notes and redeem $575 million of Floating Rate Senior Notes due 2023.

Howard Energy Partners has successfully closed a series of strategic financing transactions, including a $400 million offering of 6.75% senior unsecured notes due 2027 and an extension of its $1 billion revolving credit facility. These transactions provide the company with over $600 million in available liquidity, aiding in the development of a renewable diesel logistics facility in Port Arthur, Texas. The facility, backed by a partnership with Valero Energy and Darling Ingredients, is expected to be operational by Q4 2022.

Valero Energy Corporation (NYSE: VLO) will host a conference call on January 27, 2022, at 10:00 a.m. ET, to discuss its 2021 fourth quarter and full year earnings, along with updates on company operations. The earnings results will be released earlier that day. Valero, based in San Antonio, Texas, operates 15 petroleum refineries with a throughput capacity of approximately 3.2 million barrels per day and 12 ethanol plants producing around 1.6 billion gallons per year.

Valero Energy (NYSE: VLO) has announced pricing for its Maximum Tender Offer for various Senior Notes, including 1.200% Notes due 2024 and 3.650% Notes due 2025. The Maximum Aggregate Purchase Price is sufficient for all validly tendered 2039 Notes. As of December 2, 2021, significant amounts of the 2024, 3.650% 2025, 2026, and 2039 Notes have been tendered, exceeding the purchase limit. Valero will not accept all tendered notes, particularly from 2.850% 2025 and other series. The offer expires December 16, 2021.

Valero Energy Corporation (NYSE: VLO) announced the early results of its cash tender offer, increasing its maximum purchase price to buy all validly tendered 2039 Notes. The company has eliminated the Series Tender Cap for certain notes, allowing for a broader acceptance of valid tendered notes. As of December 2, 2021, the aggregate principal amount tendered significantly exceeded the Maximum Aggregate Purchase Price, indicating strong demand. Valero plans to settle accepted notes by December 6, 2021, while the Maximum Tender Offer expires on December 16, 2021.