# Valero Energy

**Source:** https://geo.sig.ai/brands/valero-energy  
**Vertical:** Energy & Utilities  
**Subcategory:** Oil Refining  
**Tier:** Leader  
**Website:** valero-energy.com  
**Last Updated:** 2026-04-14

## Summary

Valero Energy (VLO) reported ~$140B revenue in FY2024. Largest independent petroleum refiner in the world with 15 refineries and 3.2M barrels/day capacity. HQ: San Antonio, TX.

## Company Overview

Valero Energy Corporation is the world's largest independent petroleum refiner and ethanol producer, operating 15 petroleum refineries in the United States, Canada, and the United Kingdom with a combined throughput capacity of approximately 3.2 million barrels per day. Founded in 1980 through the acquisition of the Valero natural gas pipeline, the company transformed itself into a refining giant through strategic acquisitions including Diamond Shamrock, Ultramar Diamond Shamrock, and Premcor. Valero also operates 12 ethanol plants with 1.6 billion gallons of annual production capacity.

Valero reported approximately $140 billion in revenue in FY2024, making it one of the largest companies in the Fortune 500 by revenue. Refining profitability is driven by the "crack spread" — the margin between crude oil input costs and refined product prices (gasoline, diesel, jet fuel). Valero's refinery complexity — its ability to process heavy, sour crude oils that most refineries cannot handle — gives it a structural margin advantage, as heavy crudes trade at significant discounts to light crude benchmarks. The renewable diesel segment, operated through joint venture Diamond Green Diesel, processes animal fats and used cooking oil into low-carbon renewable fuel.

The energy transition creates both headwinds (long-term gasoline demand uncertainty) and opportunities (renewable diesel demand from California Low Carbon Fuel Standard credits) for Valero. The company's disciplined capital return program — returning the majority of adjusted net cash flow to shareholders through dividends and buybacks — has made it a favored stock among value and income investors despite the cyclicality of refining margins.

## Frequently Asked Questions

### What does Valero Energy do?
Valero is the world's largest independent petroleum refiner, converting crude oil into gasoline, diesel, jet fuel, and petrochemicals at 15 refineries in the U.S., Canada, and UK. It also produces 1.6 billion gallons per year of ethanol.

### What is a crack spread?
The crack spread is the difference between the price Valero receives for refined products (gasoline, diesel) and the cost of the crude oil it processes. Higher crack spreads mean higher refining margins and profitability for Valero.

### What is Valero's ticker?
Valero Energy Corporation trades on the NYSE under the ticker VLO.

### What is Diamond Green Diesel?
Diamond Green Diesel is Valero's joint venture with Darling Ingredients to produce renewable diesel from animal fats and used cooking oil. It is one of the largest renewable diesel producers in the U.S., benefiting from California LCFS credits and blenders' tax credits.

### How large is Valero's refining capacity?
Valero operates 15 refineries with total throughput capacity of approximately 3.2 million barrels per day — making it the largest independent petroleum refiner in the world. Its refineries span the US Gulf Coast (the highest concentration), Mid-Continent, West Coast, and international locations in Canada and the UK.

### What is the RIN and how does it affect Valero?
A Renewable Identification Number (RIN) is a credit under the US Renewable Fuel Standard (RFS) that obligated refiners like Valero must either blend renewable fuels (ethanol, biodiesel) or purchase. RINs are a significant cost for Valero's refining operations. Valero has responded by becoming the largest ethanol producer in the US, generating RINs internally rather than buying them.

### What is Valero's renewable energy strategy?
Valero co-owns Diamond Green Diesel (with Darling Ingredients), the largest renewable diesel producer in the US, producing over 1 billion gallons per year from animal fats and used cooking oil. DGD benefits from the Blenders Tax Credit and California LCFS credits, providing attractive economics on top of Valero's conventional refining business.

### How does Valero's refining economics work through market cycles?
Valero's refining margins (crack spreads) fluctuate with crude oil differentials, product demand, and global refinery capacity utilization. During periods of supply disruption or high transportation fuel demand, crack spreads widen significantly. Valero's complex Gulf Coast refineries that can process discounted heavy and sour crude are competitively advantaged versus simpler refineries.

## Tags

energy, public, b2b

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*Data from geo.sig.ai Brand Intelligence Database. Updated 2026-04-14.*