CVX - Valero Energy DCF Model: Pure Fuel Pure Value
Investment thesis
Preeminent free cash flow and earnings growth of Valero Energy (NYSE: VLO) have beaten the estimates with new heights because of favorable refining margins. I feel incredibly bullish on the firm’s future because of substantially increasing diesel and kerosene demand, new IMO regulations on low-sulfur ship fuels which will sustain the firm’s revenue and FCF.
Introduction
As of September 12, 2018, Valero Energy operates across 3 segments: Refining, Ethanol, and VLP. VLP stands for Valero Energy Partners (NYSE: VLP). It is a publicly traded firm, as well as a subsidiary of