Valero Energy (VLO) Tops Q3 EPS by 43c

Valero Energy (NYSE: VLO) reported Q3 EPS of $2.00, $0.43 better than the analyst estimate of $1.57. Revenue for the quarter came in at $24.41 billion versus the consensus estimate of $31.58 billion.

"Our strong performance during the quarter reflects the capabilities of our team and our assets to capitalize on market opportunities," said Valero CEO and President Joe Gorder. "Our ability to do so has been enhanced by the capital invested in our refineries and logistics systems. In addition to solid operations, we increased our dividend for the second time in 2014, and so far this year, we have returned more cash via stock buybacks than we did in all of 2013.

"We continued to advance our refining and logistics capital investments, which enable us to process more North American crude oil. We completed a 70,000 barrels-per-day rail unloading facility at our Port Arthur refinery, and we received additional rail cars. We secured the option to purchase a 50 percent interest in the announced Diamond Pipeline, which when completed, will connect our Memphis refinery to the crude oil hub at Cushing, Oklahoma. We also completed our first drop-down sale to Valero Energy Partners LP in the third quarter of 2014."

"As we enter the fourth quarter, our business continues to perform well and our growth investments are progressing," Gorder said. "We have completed investments and are ready to receive advantaged crude at our Quebec refinery when the Enbridge Line 9B pipeline reversal starts up. Later this quarter, we expect to complete the hydrocracker revamp at our Meraux refinery, which will increase the refinery's yield of ultra low sulfur diesel and jet fuel. The two crude topping units at our Corpus Christi and Houston refineries are progressing as planned, and we expect these units will significantly reduce feedstock costs for both of these refineries when complete in 2016."

For earnings history and earnings-related data on Valero Energy (VLO) click here.

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