Barclays Maintains an 'Equalweight' on Valero Energy (VLO); 3Q11 Guidance Update, Lowering 2011 EPS
Tweet
Share
E-mailGet Alerts VLO Hot Sheet
Price: $347.19 +1.62%
Rating Summary:
16 Buy, 15 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
16 Buy, 15 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Join SI Premium – FREE
Barclays maintains an 'Equalweight' on Valero Energy (NYSE: VLO) price target of $30.00.
Barclays analyst, Paul Cheng, said, "Valero announced revised 3Q11 operating guidance as a result of the shutdown of its Memphis Refinery on August 5, 2011 due to a fire in a crude distillation unit...expects throughput volumes of 370-380 mb/d (000's barrels per day) in its Mid-Continent region versus our previous estimate of 425 mb/d and the company's original estimate of 420-430 mb/d. In addition, system-wide operating expense is now estimated at $4.05/b versus our previous estimate of $3.80/b."
"As a result of the revised guidance, we updated our 3Q11 operating metrics. We lower our 3Q11 EPS estimate to $1.21 from $1.29 and our 2011 EPS estimate down to $3.80 from $3.85. We maintain our rating and�price target, assuming that VLO should trade at $560 per daily b/d complexity, or 31% of the greenfield replacement cost of $1,800 per b/d complexity. At the bottom of the last two cyclical downturns in 2002 and 1999, the company traded at 33% and 27% of the greenfield replacement cost, respectively."
For more ratings news on Valero Energy click here and for the rating history of Valero Energy click here.
Shares of Valero Energy closed at $19.26 yesterday.
Barclays analyst, Paul Cheng, said, "Valero announced revised 3Q11 operating guidance as a result of the shutdown of its Memphis Refinery on August 5, 2011 due to a fire in a crude distillation unit...expects throughput volumes of 370-380 mb/d (000's barrels per day) in its Mid-Continent region versus our previous estimate of 425 mb/d and the company's original estimate of 420-430 mb/d. In addition, system-wide operating expense is now estimated at $4.05/b versus our previous estimate of $3.80/b."
"As a result of the revised guidance, we updated our 3Q11 operating metrics. We lower our 3Q11 EPS estimate to $1.21 from $1.29 and our 2011 EPS estimate down to $3.80 from $3.85. We maintain our rating and�price target, assuming that VLO should trade at $560 per daily b/d complexity, or 31% of the greenfield replacement cost of $1,800 per b/d complexity. At the bottom of the last two cyclical downturns in 2002 and 1999, the company traded at 33% and 27% of the greenfield replacement cost, respectively."
For more ratings news on Valero Energy click here and for the rating history of Valero Energy click here.
Shares of Valero Energy closed at $19.26 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Barclays Upgrades Schott Pharma AG (1SXP:GR) to Overweight
- Canaccord Starts Sunshine Silver Mining & Refining (SSMR) at Spec. Buy
- JPMorgan Downgrades Assicurazioni Generali SpA (G:IM) (ARZGY) to Neutral
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Barclays, Crude OilSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
