Valero Energy is one of America’s top integrated oil and gas companies. That makes it one of the best stocks to buy in 2020. Here, we look at Valero’s business model, pros and cons, future outlook, and more.
What Is Valero Energy?
Valero Energy Corporation is an American multinational, independent oil and gas conglomerate. With a market capitalization of $44 billion, it is ranked as the second-largest US energy company. The company operates in 28 countries and employs more than 11,000 people worldwide
The firm was founded in 1980 by its chairman and CEO Bill Greehey who purchased two then struggling refineries after they were nationalized by the Venezuelan government under the late President Hugo Chavez. In 2007, Valero acquired Ultramar Diamond Shamrock Corporation for $6 billion—a deal that made it one of the largest petroleum refining companies in North America.
Key features of Valero Energy
Valero Energy is a Fortune 500 company that operates in the following areas:
- Global refining – Valero owns and operates 14 refineries with over 1 million barrel per day of capacity, making it the largest independent petroleum refiner in the United States.
- Global marketing – Valero has a network of more than 80 fueling stations located across the U.S., Canada, Mexico, Europe and Puerto Rico; these fuel stations offer E85 ethanol-blended fuels and biodiesel blends to consumers who choose to drive alternative fuel vehicles. A few select locations also offer compressed natural gas (CNG) for vehicles powered by CNG engines.
- Global distribution – By purchasing products from their own refineries as well as from other suppliers around the world, Valero distributes products through its logistics network into multiple countries through its subsidiaries or affiliates such as Ultramar Ltd., Diamond Gasoline International Inc., Western Petroleum Company (WPC), Bravo Fuels Inc., Houston Fuels Distribution LLC, Select Energy Services LP or SES Coop Limited Partnership which sell gasoline under various brand names including Phillips 66®, 76® & Conoco™ brands at various retail locations throughout North America and internationally
Pros of Valero Energy
Valero Energy is a good company. No matter what industry you’re looking to invest in, Valero Energy should be considered. It’s got a great track record and some of the best numbers in the business. Like I said before, it’s definitely worth considering as an investment option if you have money to put into something like this.
You may have heard that Valero Energy is one of those companies that has been around forever and will always be around forever—and that’s true! But there are also other reasons why people should consider investing in Valero Energy right now:
- The stock price has been steadily increasing over time, so there’s an opportunity for growth if you invest now. This means that if you invest today at $50 per share (as opposed to investing next year), then your investment will probably go up in value over time as well!
Cons of Valero Energy
Valero Energy is not a good stock. Valero Energy is a bad stock. Valero Energy is a good stock. The reason why this is the case has to do with where you’re investing your money and how much risk you’re willing to take on as an investor in that particular company’s future success or failure.
Future of Valero Energy
The future of the oil industry is up in the air. There are many factors that must be considered, such as:
- The future of the stock market
- The future of global economy
- The future of Valero Energy and other energy companies
- The US economy
Valero Energy is a good stock.
Valero Energy is a good company for many reasons. It is a leader in the energy industry, and it is a great investment. Valero Energy also has a reputation for paying well and providing job security for its employees.
Valero Energy is not a perfect company. While it has had some ups and downs, the overall trend is upward. Valero Energy stock price has risen steadily over the past year from $28 per share to $70 per share. This indicates that investors are confident in the strong future of this oil refining giant.