Valero Energy (VLO) Q3 2026 Earnings Report

The call was strongly positive overall. Valero reported substantially higher net income, strong operating income across refining, renewable diesel, and ethanol, record or near-record operating performance, robust cash generation, low net leverage, resilient fuel demand, and favorable Gulf Coast refining fundamentals. The main cautions were market volatility, elevated freight costs, DGD-specific third-quarter disruptions, deferred industry maintenance, lower U.K. home-heating-oil sales, and the potential for crack compression if crude prices rise further.

Valero still expects capital investments attributable to Valero for 2026 to be approximately $2 billion, with approximately $1.7 billion allocated to sustaining the business and the remainder directed toward growth projects; Port Arthur DHT repairs remain on track for completion by year end, with total repair costs still estimated to be approximately $250 million, and a substantial portion of the cost expected to be covered by insurance. For modeling our fourth quarter operations, refining throughput is expected at Gulf Coast at 1.855 to 1.91 million barrels per day, Mid Continent at 440 thousand to 460 thousand barrels per day, West Coast at 100 to 110 thousand barrels per day, and North Atlantic at 480 thousand to 500 thousand barrels per day, with refining cash operating expenses of $4.85 per barrel. Renewable diesel sales volumes are expected to be approximately 25 million gallons, with operating expenses of 53 cents per gallon, including 23 cents per gallon for non cash costs such as depreciation and amortization; ethanol production is expected to be 4.9 million gallons per day, with operating expenses averaging 38 cents per gallon, including 4 cents per gallon for non cash costs such as depreciation and amortization. Fourth-quarter net interest expense should be about $135 million, total depreciation and amortization expense should be approximately $700 million, and G&A expenses for 2026 are expected to be approximately $1.1 billion; the long term $4 billion to $5 billion cash target remains unchanged.