Companies / VLO
NYSEValero Energy (VLO) in our theses
Valero Energy appears in one of our theses. Below is why it entered the basket and how it has done since publication.
Ukraine is hitting refineries, not wellheads: Russian crude gets cheaper while diesel margins balloon for refiners outside Russia
By destroying Russian refineries, Ukraine pushes crude onto the market and takes diesel off it: that drags down the price of crude and blows out margins for refiners outside Russia.
Why this company: The largest independent refiner in the US and a huge exporter of diesel across the Atlantic. High plant complexity and a large middle-distillate yield mean a wider diesel margin feeds straight through to earnings.
Where these numbers come from
The reference price is recorded on the thesis publication date and never changed afterwards. The current price is refreshed several times a day. Returns are in the listing currency and exclude dividends, so for dividend payers the real total return was somewhat higher.
This is not a recommendation to buy or sell. A company enters a basket as a beneficiary of the mechanism described in the thesis, and the full argument is on each thesis page.
See all of our theses
Each with a publication date, a causal map and a score assigned before the market ruled.
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