VLO

Market Performance: The S&P 500 and Dow Jones closed higher, with the Dow reaching an all-time high, driven by optimism over a potential end to the government shutdown and strong semiconductor stock performance, particularly Advanced Micro Devices.

Interest Rates and Economic Indicators: Atlanta Fed President Raphael Bostic emphasized the importance of price stability, suggesting interest rates should remain steady. The markets are anticipating a 64% chance of a rate cut at the upcoming FOMC meeting.

Corporate Earnings: Q3 earnings reports show 82% of S&P 500 companies exceeded forecasts, with a 14.6% increase in earnings, significantly higher than the expected 7.2% growth, marking the best quarter since 2021.

Sector Movements: Chip stocks rallied, while the Magnificent Seven tech stocks faced declines. Energy producers fell due to a drop in crude oil prices, and several companies, including On Holding and Bill Holdings, saw significant stock price increases following positive news.

Earnings Performance: Pembina Pipeline Corporation reported Q3 2025 earnings per share of 31 cents, missing estimates and down from 44 cents a year ago, primarily due to weaker results in the Marketing & New Ventures segment and lower pipeline volumes.

Revenue and Cash Flow: Quarterly revenues decreased by 3.8% year-over-year to $1.3 billion, also missing estimates, while operating cash flow fell approximately 12.1% to C$810 million.

Growth Initiatives: The company made progress in growth initiatives, securing new transportation commitments and advancing over C$1 billion in proposed pipeline expansions, including a 20-year agreement with PETRONAS for the Cedar LNG facility.

Adjusted EBITDA and Dividends: Adjusted EBITDA increased slightly to C$1 billion, driven by higher revenues from the Peace Pipeline, and the board declared a quarterly cash dividend of 71 Canadian cents per share, payable on December 31, 2025.

Third-Quarter Earnings Performance: Delek US Holdings, Inc. reported adjusted earnings per share of $1.52 for Q3 2025, significantly surpassing the Zacks Consensus Estimate of 28 cents, and showing a notable recovery from a loss of $1.45 in the previous year, aided by a reduction in operating expenses.

Revenue and EBITDA Insights: Despite a 5.1% year-over-year decline in net revenues to $2.9 billion, the company achieved an adjusted EBITDA of $759.6 million, a substantial increase from $70.6 million a year earlier, exceeding estimates by $177 million.

Dividends and Share Repurchases: The board approved a quarterly dividend of 25.5 cents per share, to be paid on November 17, 2025, while also repurchasing approximately $15 million worth of its common shares during the quarter.

Future Outlook: Delek US anticipates a strong finish to Q4 2025, projecting healthy throughput and improved cash-flow visibility, with expectations of $400 million from the monetization of Small Refinery Exemption credits and a target of at least $180 million in annual run-rate improvement under its Enterprise Optimization Plan.