Marathon Petroleum Hits Record Highs, DAQO Energy Faces Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: NASDAQ.COM
- Marathon Petroleum's Strong Performance: Marathon Petroleum's stock has decisively broken above a multi-week consolidation, now trading at record highs, indicating robust market momentum that is likely to continue attracting institutional investors, thereby pushing the stock price higher.
- Earnings Forecast Upgrades: Analysts have significantly raised their earnings forecasts for Marathon over the past two months, with expectations for 2026 earnings per share to exceed $23.53, reflecting the company's enhanced profitability in a high oil price environment.
- DAQO Energy's Worsening Dilemma: Despite strong global solar demand, DAQO Energy faces declining profitability due to oversupply in the polysilicon market, with projections indicating substantial net losses over the next two years, highlighting increasingly challenging fundamentals.
- Energy Market Outlook: Amid geopolitical tensions, crude oil prices remain above $90, and while high prices increase input costs for refiners, companies like Marathon and Valero benefit from strong refining margins, demonstrating the resilience of the sector.
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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: 258.850
Low
149.00
Averages
186.56
High
223.00
Current: 258.850
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 (U.S.), Canada, the United Kingdom (U.K.), Ireland, and Latin America. It operates through three segments, which 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 low-carbon fuels, renewable diesel, renewable naphtha, and neat sustainable aviation fuel (SAF). The Ethanol segment includes the operations of its ethanol plants and the associated activities to market its ethanol and co-products.
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.
Marathon Petroleum Hits Record Highs, DAQO Energy Faces Challenges
- Marathon Petroleum's Strong Performance: Marathon Petroleum's stock has decisively broken above a multi-week consolidation, now trading at record highs, indicating robust market momentum that is likely to continue attracting institutional investors, thereby pushing the stock price higher.
- Earnings Forecast Upgrades: Analysts have significantly raised their earnings forecasts for Marathon over the past two months, with expectations for 2026 earnings per share to exceed $23.53, reflecting the company's enhanced profitability in a high oil price environment.
- DAQO Energy's Worsening Dilemma: Despite strong global solar demand, DAQO Energy faces declining profitability due to oversupply in the polysilicon market, with projections indicating substantial net losses over the next two years, highlighting increasingly challenging fundamentals.
- Energy Market Outlook: Amid geopolitical tensions, crude oil prices remain above $90, and while high prices increase input costs for refiners, companies like Marathon and Valero benefit from strong refining margins, demonstrating the resilience of the sector.
See More
Valero Energy to Host Q2 2026 Earnings Call
- Earnings Call Scheduled: Valero Energy Corporation will host a conference call on July 30, 2026, at 10:00 a.m. ET to discuss its financial and operational results for Q2 2026, with the earnings release expected to be issued earlier that morning, ensuring timely access to critical information for investors.
- Company Overview: Valero is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, primarily selling in the U.S., Canada, the U.K., Ireland, and Latin America, showcasing its extensive global market reach.
- Refining Capacity: Valero operates 14 refineries across the U.S., Canada, and the U.K., with a combined throughput capacity of approximately 3.0 million barrels per day, demonstrating its strong position and capabilities in the oil refining sector.
- Renewable Fuel Production: As a joint venture member in Diamond Green Diesel Holdings LLC, Valero produces low-carbon fuels, including renewable diesel and sustainable aviation fuel, with an annual production capacity of approximately 1.2 billion gallons in the U.S. Gulf Coast region, further advancing its strategic initiatives in renewable energy.
See More
California Carbon Market Changes Could Provide $4 Billion in Free Allowances
- New Carbon Market Regulations: The California Air Resources Board has approved revisions to its carbon market program, potentially providing up to $4 billion in additional free emissions allowances to oil refiners and industrial companies to help comply with greenhouse gas limits.
- Consumer Cost Mitigation: The revised plan includes approximately $800 million in support aimed at preventing additional costs from being passed on to consumers, particularly as policymakers face inflationary pressures amid rising gasoline prices due to Middle Eastern conflicts.
- Opposition from Environmental Groups: While CARB defends the changes as not undermining climate policy effectiveness, environmental groups and economists warn that the additional allowances could weaken incentives to reduce emissions and hinder California's goal of carbon neutrality by 2045.
- Projected Revenue Decline: The California Legislative Analyst's Office estimates that annual auction revenues could drop from about $4 billion to $2 billion, impacting funding for various state initiatives, including affordable housing and wildfire resilience projects.
See More
Sky Quarry Forms Strategic Partnership with Southern Energy
- Strategic Partnership: On May 7, 2026, Sky Quarry signed a non-binding MOU with Southern Energy Renewables and DevvStream for a three-year collaboration focused on low-carbon fuel development and refinery integration, marking a significant strategic positioning in the energy transition.
- Resource Development Plan: Sky Quarry issued a Request for Proposals for its PR Spring oil sands asset, targeting the development of approximately 180 million barrels of oil and integrating heavy oil production directly into the Foreland Refinery, creating a vertically integrated pathway that enhances market competitiveness.
- Refinery Capacity Enhancement: The Foreland Refinery operates at a capacity of 5,000 barrels per day and has recently completed high-impact system upgrades, unlocking strategic value and supporting Sky Quarry's goal of 800,000 barrels of annual production, thereby strengthening its operational capabilities in the Western market.
- Policy Support Environment: The Trump administration's Defense Production Act prioritizes U.S. refining infrastructure, and Sky Quarry's multi-party collaboration aligns with this policy, ensuring the company maintains a competitive edge in the currently constrained domestic refining market.
See More
Sky Quarry Forms Strategic Collaboration with Southern Energy
- Strategic Collaboration: On May 7, 2026, Sky Quarry signed a non-binding Memorandum of Understanding with Southern Energy and DevvStream for a three-year term, focusing on low-carbon fuel development and refinery integration, marking a significant advancement in the company's low-carbon fuel pathways.
- Resource Development Plan: On April 29, 2026, Sky Quarry issued a Request for Proposals for its PR Spring oil sands asset, aiming to integrate approximately 180 million barrels of heavy oil production directly into the Foreland Refinery, creating a vertically integrated pathway that enhances overall operational efficiency.
- Refinery Capacity Enhancement: The Foreland Refinery operates at a capacity of 5,000 barrels per day, and following high-impact system upgrades, Sky Quarry's strategic growth plan targets up to 800,000 barrels of annual sustained production, further solidifying its position in the U.S. refining market.
- Policy Support Environment: Sky Quarry's operations are bolstered by the Trump administration's policy support under the Defense Production Act, combined with its 180 million barrels of feedstock and multi-party collaborations, creating a structural framework conducive to the company's growth and enhancing its strategic value within domestic refining capacity.
See More
Mixed US Stock Market with Energy Stocks Under Pressure
- Divergent Market Performance: The S&P 500 index fell by 0.07% while the Dow Jones Industrial Average rose by 0.54%, indicating a divergence in market trends, particularly with the Dow reaching a new high, reflecting increased investor confidence in certain sectors.
- Impact of Falling Oil Prices: Crude oil prices dropped over 3% amid optimism for a normalization of oil flows from the Middle East, which not only eased inflation expectations but also pushed the 10-year Treasury yield down to a 1.5-week low of 4.45%, positively affecting the bond market.
- Decline in Mortgage Applications: US MBA mortgage applications fell by 8.5% for the week ending May 22, with the purchase mortgage sub-index down 0.4% and the refinancing sub-index plunging 18.1%, indicating the suppressive effect of high interest rates on the housing market.
- Corporate Earnings Overview: As of now, 83% of the 475 S&P 500 companies that reported Q1 earnings have exceeded expectations, with overall earnings projected to rise by 12% year-on-year, but excluding the tech sector, the growth is only 3%, highlighting disparities across industries.
See More
Marathon Petroleum Hits Record Highs, DAQO Energy Faces Challenges
- Marathon Petroleum's Strong Performance: Marathon Petroleum's stock has decisively broken above a multi-week consolidation, now trading at record highs, indicating robust market momentum that is likely to continue attracting institutional investors, thereby pushing the stock price higher.
- Earnings Forecast Upgrades: Analysts have significantly raised their earnings forecasts for Marathon over the past two months, with expectations for 2026 earnings per share to exceed $23.53, reflecting the company's enhanced profitability in a high oil price environment.
- DAQO Energy's Worsening Dilemma: Despite strong global solar demand, DAQO Energy faces declining profitability due to oversupply in the polysilicon market, with projections indicating substantial net losses over the next two years, highlighting increasingly challenging fundamentals.
- Energy Market Outlook: Amid geopolitical tensions, crude oil prices remain above $90, and while high prices increase input costs for refiners, companies like Marathon and Valero benefit from strong refining margins, demonstrating the resilience of the sector.
See More
Valero Energy to Host Q2 2026 Earnings Call
- Earnings Call Scheduled: Valero Energy Corporation will host a conference call on July 30, 2026, at 10:00 a.m. ET to discuss its financial and operational results for Q2 2026, with the earnings release expected to be issued earlier that morning, ensuring timely access to critical information for investors.
- Company Overview: Valero is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, primarily selling in the U.S., Canada, the U.K., Ireland, and Latin America, showcasing its extensive global market reach.
- Refining Capacity: Valero operates 14 refineries across the U.S., Canada, and the U.K., with a combined throughput capacity of approximately 3.0 million barrels per day, demonstrating its strong position and capabilities in the oil refining sector.
- Renewable Fuel Production: As a joint venture member in Diamond Green Diesel Holdings LLC, Valero produces low-carbon fuels, including renewable diesel and sustainable aviation fuel, with an annual production capacity of approximately 1.2 billion gallons in the U.S. Gulf Coast region, further advancing its strategic initiatives in renewable energy.
See More
California Carbon Market Changes Could Provide $4 Billion in Free Allowances
- New Carbon Market Regulations: The California Air Resources Board has approved revisions to its carbon market program, potentially providing up to $4 billion in additional free emissions allowances to oil refiners and industrial companies to help comply with greenhouse gas limits.
- Consumer Cost Mitigation: The revised plan includes approximately $800 million in support aimed at preventing additional costs from being passed on to consumers, particularly as policymakers face inflationary pressures amid rising gasoline prices due to Middle Eastern conflicts.
- Opposition from Environmental Groups: While CARB defends the changes as not undermining climate policy effectiveness, environmental groups and economists warn that the additional allowances could weaken incentives to reduce emissions and hinder California's goal of carbon neutrality by 2045.
- Projected Revenue Decline: The California Legislative Analyst's Office estimates that annual auction revenues could drop from about $4 billion to $2 billion, impacting funding for various state initiatives, including affordable housing and wildfire resilience projects.
See More
Sky Quarry Forms Strategic Partnership with Southern Energy
- Strategic Partnership: On May 7, 2026, Sky Quarry signed a non-binding MOU with Southern Energy Renewables and DevvStream for a three-year collaboration focused on low-carbon fuel development and refinery integration, marking a significant strategic positioning in the energy transition.
- Resource Development Plan: Sky Quarry issued a Request for Proposals for its PR Spring oil sands asset, targeting the development of approximately 180 million barrels of oil and integrating heavy oil production directly into the Foreland Refinery, creating a vertically integrated pathway that enhances market competitiveness.
- Refinery Capacity Enhancement: The Foreland Refinery operates at a capacity of 5,000 barrels per day and has recently completed high-impact system upgrades, unlocking strategic value and supporting Sky Quarry's goal of 800,000 barrels of annual production, thereby strengthening its operational capabilities in the Western market.
- Policy Support Environment: The Trump administration's Defense Production Act prioritizes U.S. refining infrastructure, and Sky Quarry's multi-party collaboration aligns with this policy, ensuring the company maintains a competitive edge in the currently constrained domestic refining market.
See More
Sky Quarry Forms Strategic Collaboration with Southern Energy
- Strategic Collaboration: On May 7, 2026, Sky Quarry signed a non-binding Memorandum of Understanding with Southern Energy and DevvStream for a three-year term, focusing on low-carbon fuel development and refinery integration, marking a significant advancement in the company's low-carbon fuel pathways.
- Resource Development Plan: On April 29, 2026, Sky Quarry issued a Request for Proposals for its PR Spring oil sands asset, aiming to integrate approximately 180 million barrels of heavy oil production directly into the Foreland Refinery, creating a vertically integrated pathway that enhances overall operational efficiency.
- Refinery Capacity Enhancement: The Foreland Refinery operates at a capacity of 5,000 barrels per day, and following high-impact system upgrades, Sky Quarry's strategic growth plan targets up to 800,000 barrels of annual sustained production, further solidifying its position in the U.S. refining market.
- Policy Support Environment: Sky Quarry's operations are bolstered by the Trump administration's policy support under the Defense Production Act, combined with its 180 million barrels of feedstock and multi-party collaborations, creating a structural framework conducive to the company's growth and enhancing its strategic value within domestic refining capacity.
See More
Mixed US Stock Market with Energy Stocks Under Pressure
- Divergent Market Performance: The S&P 500 index fell by 0.07% while the Dow Jones Industrial Average rose by 0.54%, indicating a divergence in market trends, particularly with the Dow reaching a new high, reflecting increased investor confidence in certain sectors.
- Impact of Falling Oil Prices: Crude oil prices dropped over 3% amid optimism for a normalization of oil flows from the Middle East, which not only eased inflation expectations but also pushed the 10-year Treasury yield down to a 1.5-week low of 4.45%, positively affecting the bond market.
- Decline in Mortgage Applications: US MBA mortgage applications fell by 8.5% for the week ending May 22, with the purchase mortgage sub-index down 0.4% and the refinancing sub-index plunging 18.1%, indicating the suppressive effect of high interest rates on the housing market.
- Corporate Earnings Overview: As of now, 83% of the 475 S&P 500 companies that reported Q1 earnings have exceeded expectations, with overall earnings projected to rise by 12% year-on-year, but excluding the tech sector, the growth is only 3%, highlighting disparities across industries.
See More
