Valero Energy Corp. shares reached an all-time high of $351.20 on Thursday, extending a rally that has pushed the stock up 149.7% over the past 12 months and 116% year-to-date.
The San Antonio-based refiner’s market capitalization now stands at $100.87 billion, with a trailing price-to-earnings ratio of 14.46. The stock’s advance comes as refining margins, renewable diesel and ethanol operations have strengthened, driving a sharp increase in profitability.
In the second quarter, Valero reported adjusted earnings per share of $12.54, exceeding Wall Street estimates of $10.03. Revenue totaled $44.48 billion, surpassing the $37.95 billion forecast. Net income rose to $3.7 billion from $714 million in the same period last year, reflecting improved refining margins and higher renewable diesel output.
Analysts at TD Cowen raised Valero’s price target to $350 from $338 while maintaining a Hold rating. The firm cited the company’s operational performance and favorable energy market conditions as key drivers. Barclays separately highlighted Neste’s second-quarter renewable products margin, which reached a record $1,223 per ton, with a third-quarter consensus estimate of $1,050 per ton.
The broader energy sector gained 3.1% as measured by the S&P 500 energy index, supported by rising oil prices amid escalating Middle East tensions. Brent crude futures climbed to $86.05 per barrel, while U.S. West Texas Intermediate crude advanced to $80.62 per barrel.
