Valero Energy announces $850 million senior notes offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2025
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Should l Buy VLO?
Valero Energy Corp's stock rose 3.08% and reached a 52-week high amid a challenging market environment where the Nasdaq-100 and S&P 500 are down 1.30% and 1.08%, respectively.
The company announced the pricing of $850 million in senior notes at a 5.150% interest rate, maturing in 2036. The net proceeds will be used for general corporate purposes, including the repayment of outstanding debentures and senior notes, which optimizes Valero's capital structure. This bond offering is conducted under an effective shelf registration statement, ensuring compliance and enhancing investor confidence.
The positive market reaction to the bond offering reflects investor confidence in Valero's financial health, despite the broader market weakness.
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Analyst Views on VLO
Wall Street analysts forecast VLO stock price to fall
17 Analyst Rating
11 Buy
6 Hold
0 Sell
Moderate Buy
Current: 254.320
Low
149.00
Averages
186.56
High
223.00
Current: 254.320
Low
149.00
Averages
186.56
High
223.00
About VLO
Valero Energy Corporation, through its subsidiaries, is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products. The Company sells its products primarily in the United States, Canada, the United Kingdom, Ireland and Latin America. Its segments include Refining, Renewable Diesel, and Ethanol. The Refining segment includes the operations of its petroleum refineries, the associated activities to market its refined petroleum products, and the logistics assets that support its refining operations. The Renewable Diesel segment represents the operations of Diamond Green Diesel (DGD), and the associated activities to market renewable diesel, renewable naphtha, and neat SAF. The Ethanol segment includes the operations of its ethanol plants and the associated activities to market its ethanol and co-products. It owns 15 petroleum refineries located in the United States, Canada and the United Kingdom.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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