Valero Energy (VLO)
Valero Energy Corporation (NYSE:VLO) is a major player in the energy sector and recently announced its financial results for the second quarter of 2023. Although its earnings were lower compared to the same period in 2022, it is important to note the adjustments in these figures. Valero operates mainly in refining and renewables.
In the second quarter of 2023, it posted solid financial results in several business segments. Its Refining segment processed millions of barrels of crude oil per day, showing its vital role in the industry. The Renewable Diesel segment, including the Diamond Green Diesel business, stood out with notable growth in operating income due to increased sales volumes, and the Ethanol segment also showed good results.
Moreover, they are managing their finances effectively. They have a low general and administrative expenses and a reasonable tax rate. Plus, its commitment to sustainability is notable, with investments in sustainable aviation fuel (SAF) projects. This includes a major SAF project at the Port Arthur DGD plant, which is expected to be one of the largest SAF manufacturers globally upon completion in 2025.
Overall, Valero maintains a strong financial position, focuses on sustainable practices, and is committed to returning value to its investors through regular dividends. It is well-prepared to navigate an evolving energy landscape.
Diamondback Energy (FANG)
Diamondback Energy (NASDAQ:FANG), a Texas-based independent oil and gas company, stands out as an attractive option in the energy investment world. In the second quarter of 2023, they achieved significant milestones, including maintaining solid oil production and an impressive cash inflow.
The company also demonstrated its financial strength by increasing its annual dividend by 5% and repurchasing many shares, which benefits investors. In addition, they focused on reducing their debt by acquiring their senior notes at attractive prices.
Partnering with Five Point Energy to form the Deep Blue Midland Basin has allowed them to expand into water infrastructure, becoming the largest independent platform in the region. This diversifies their business and strengthens their position in the energy sector.
Diamondback’s priority is environmental responsibility, as evidenced by its participation in the United Nations-backed Oil and Gas Methane Partnership 2.0 program. They are committed to reducing methane emissions and contributing to the fight against climate change.
EQT (EQT)
EQT Corporation (NYSE:EQT) is a company deeply involved in the energy sector. It is primarily engaged in natural gas production and related activities. They are definitely one to watch if you are considering an energy stock for your investment portfolio.
In the recent second quarter of 2023, EQT has proven to be quite efficient, drilling at an impressive rate and completing major lateral projects. They have also been responsible for managing their debt, showing a solid financial position. What is encouraging is their commitment to the environment, with a 20% reduction in greenhouse gas emissions compared to the previous year, and plans to further improve this by 2023.
EQT is no longer just in natural gas; it is exploring the LNG market, positioning itself for the future. It has signed agreements with Commonwealth LNG for significant LNG production. This strategic move suggests that they have a vision for the future.
In addition, EQT offers a promising dividend for investors, increasing it by 5% to $0.1575 per share, demonstrating its commitment to delivering shareholder value. In addition, its ongoing acquisition and growth efforts underscore its dedication to expanding its operations and market presence.
As of this writing, Gabriel Osorio-Mazzilli did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Gabriel Osorio is a former Goldman Sachs and Citigroup employee. He possesses discipline in bottom-up value investing and volatility-based long/short equities trading.