Valero Energy Corp’s (VLO) Port Arthur, Texas refinery, which has refining throughput capacity of 287,000 barrels per day (bpd), will be running at full steam from this weekend.
Activity at the refinery had slowed since June 6 when the plant’s coking unit was badly damaged by lightning. This forced the closure of a crude unit at the refinery. Valero is currently in the process of replacing the damaged motor but expects the coking unit to return to operation after a compressor is repaired.
San Antonio, Texas-based Valero Energy is the largest independent refiner and marketer of petroleum products in the U.S. It has 14 refineries located throughout the U.S., Canada and the Caribbean. Valero is also a leading ethanol producer with 10 plants in the Midwest.
The company is also one of the largest independent retailers of refined petroleum products in the central and southwestern U.S. and in eastern Canada, with more than 5,800 retail outlets under various brand names, including Diamond Shamrock, Valero, Ultramar and Beacon.
On a separate note, Valero recently announced the acquisition of Chevron Corp's (CVX) Pembroke, Wales refinery, which is one of the largest and most complex facilities in Western Europe with a crude capacity of 220,000 bpd. Pembroke benefits from a sourcing advantage in the North Sea, along with its ability to run high-acid crudes. Valero expects to close the purchase of the refinery by August or September, 2011.
Through its recent transactions, the company aims to ride high on its yield and maintain leadership in the refining segment. Valero currently has a Zacks #3 Rank (Hold), implying that the stock is expected to perform in line with the broader U.S. equity market over the next one to three months.
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