Valero Energy
This Wall Street favorite is a solid energy play for conservative investors looking for safer ideas. Valero Energy Corp. (NYSE: VLO) is one of the largest independent petroleum refining and marketing companies in the United States. It is based in San Antonio, Texas; owns 13 refineries in the United States, Canada and Europe; and has a total throughput capacity of around 2.5 million barrels per day.
The company also is a joint venture partner in Diamond Green Diesel, which operates a renewable diesel plant in Norco, Louisiana. Diamond Green Diesel is North America’s largest biomass-based diesel plant.
Valero sells its products in the wholesale rack or bulk markets in the United States, Canada, the United Kingdom, Ireland and Latin America. Approximately 7,400 outlets carry Valero’s brand names.
Investors receive a 4.69% dividend. The Wells Fargo analysts have a price target of $166. The consensus target for Valero Energy stock is $137.68, and shares closed on Thursday at $104.53. That was down almost 8% for the day.
These eight energy sector giants can continue to profit from elevated energy prices but offer investors who are more conservative a way to play the sector. With everything from the world’s largest integrated energy giants, to one of the biggest refining companies, these are ways to generate income and participate in the biggest rally in the energy and oil space since 2011.
Note that as we end the second quarter, portfolio and hedge fund managers who were killed over the past 90 days and since the beginning of the year may sell their winners in energy to match against losses in the other sectors. It is a solid bet they will reenter many of these top names when they can as demand still far outstrips supply overall.
Originally posted at 24/7 Wall St.
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