Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Valero Energy Corporation presented its financial outcomes for the second quarter of 2024, marking a period of both strengths and challenges.</li><li>The company achieved a net income of $880 million or $2.71 per share, which, while robust, is a decrease from the previous year's $1.9 billion or $5.40 per share.</li><li>This change underscores the fluctuating nature of market conditions affecting the sector.</li></ul>

Valero Energy Corporation presented its financial outcomes for the second quarter of 2024, marking a period of both strengths and challenges.The company achieved a net income of $880 million or $2.71 per share, which, while robust, is a decrease from the previous year's $1.9 billion or $5.40 per share.This change underscores the fluctuating nature of market conditions affecting the sector.

Valero Energy Corporation: Growth in Renewable Diesel & Sustainable Aviation Fuel & Other Critical Growth Levers! - Financial Forecasts

<ul><li>Valero Energy Corp had a strong Q1 2024, achieving a net income of $1.2 billion thanks to their team's ability to maximise output despite having extensive planned maintenance across their refining system.</li><li>A large part of their achievement was due to stable refining margins that were sustained by restricted product supplies, influenced by heavy seasonal refining turnarounds and geopolitical events.</li><li>Furthermore, their diesel demand was unseasonably high, and their gasoline demand was on par with last year's levels.</li></ul>

Valero Energy Corp had a strong Q1 2024, achieving a net income of $1.2 billion thanks to their team's ability to maximise output despite having extensive planned maintenance across their refining system.A large part of their achievement was due to stable refining margins that were sustained by restricted product supplies, influenced by heavy seasonal refining turnarounds and geopolitical events.Furthermore, their diesel demand was unseasonably high, and their gasoline demand was on par with last year's levels.

Valero Energy Corporation: Growth in Renewable Diesel and Ethanol A Major Growth Catalyst? - Major Drivers

<ul><li>Valero Energy Corporation recorded strong financial results for the fourth quarter of 2023 and the highest fourth quarter and full-year adjusted earnings in the company's history, excluding the results of 2022.</li><li>The refining system achieved a mechanical availability of 97.4%, the highest to date, highlighting the benefits from Valero's commitment to safe, reliable, and environmentally responsible operations.</li><li>Valero also set a record for sales volume in 2023, capturing around 1 million barrels per day, exemplifying the strength of its branded and wholesale marketing network.</li></ul>

Valero Energy Corporation recorded strong financial results for the fourth quarter of 2023 and the highest fourth quarter and full-year adjusted earnings in the company's history, excluding the results of 2022.The refining system achieved a mechanical availability of 97.4%, the highest to date, highlighting the benefits from Valero's commitment to safe, reliable, and environmentally responsible operations.Valero also set a record for sales volume in 2023, capturing around 1 million barrels per day, exemplifying the strength of its branded and wholesale marketing network.

Valero Energy Corporation: Can The Turnaround In Refinery Operations & The Focus On Renewables Be A Game Changer? - Major Drivers

Energy Transition | AI | Shifting World Order, Mint Finance

Suhas Reddy

Energy Transition | AI | Shifting World Order

Deep Fundamental Analysis

Mint Finance

Mint Finance's investment research blends deep fundamental analysis with technical & quant insights. Investment strategies straddle across multiple asset classes with risk management embedded into every trade to deliver an outsized reward-to-risk ratio.

Mint Finance's research is centered around three key themes. First, energy transition and climate change. Second, artificial intelligence. Third, shifting world order with its impact across politics and monetary economics.

Commodities

<ul>
<li>US crude inventories fell for the fifth consecutive week by 3.4 mb, exceeding the 1.6 mb decline expected by analysts. Gasoline stocks also decreased by 3.7 mb.</li>
<li>As of the week ending 26/Jul, US natural gas inventories were up 8.4% YoY and 15.7% above the 5-year seasonal average.</li>
<li>European oil majors beat Q2 profit estimates. BP’s Q2 underlying net profit beat estimates by 7.7%. Shell’s Q2 EPS beat estimates by 5.1%. </li>
</ul>


US crude inventories fell for the fifth consecutive week by 3.4 mb, exceeding the 1.6 mb decline expected by analysts. Gasoline stocks also decreased by 3.7 mb.
As of the week ending 26/Jul, US natural gas inventories were up 8.4% YoY and 15.7% above the 5-year seasonal average.
European oil majors beat Q2 profit estimates. BP’s Q2 underlying net profit beat estimates by 7.7%. Shell’s Q2 EPS beat estimates by 5.1%. 


[ETP 31/2024] Oil Prices Surge on Middle East Tensions; BP and Shell Beat Earnings Expectations

Thematic (Sector/Industry)

<ul>
<li>This paper contrasts performance of integrated oil exploration and refining firms ("Explorers") with oil refineries ("Refiners").</li>
<li>Hypothesis is that Refiners outperform Explorers when the crack spread widens. Back testing based on select firms proves the hypothesis.</li>
<li>This paper posits that Refiners will outdo Explorers when crack spreads tear based on historical performance.</li>
</ul>


This paper contrasts performance of integrated oil exploration and refining firms ("Explorers") with oil refineries ("Refiners").
Hypothesis is that Refiners outperform Explorers when the crack spread widens. Back testing based on select firms proves the hypothesis.
This paper posits that Refiners will outdo Explorers when crack spreads tear based on historical performance.


Widening Crack Spreads Enable Oil Refiners to Outdo Oil Explorers

United States

Valero Energy Corporation is an independent petroleum refining and marketing company that owns and operates refineries in the United States, Canada, and Aruba.  The Company produces conventional gasolines, distillates, jet fuel, asphalt, petrochemicals, lubricants, and other refined products as well as diesel fuel, low-sulfur and ultra-low-sulfur diesel fuel, and oxygenates.

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Valero Energy (VLO US)

Valero Energy Corporation: Growth in Renewable Diesel & Sustainable Aviation Fuel & Other Critical Growth Levers! - Financial Forecasts

Valero Energy Corporation presented its financial outcomes for the second quarter of 2024, marking a period of both strengths and challenges. The...

Baptista Research

Valero Energy Corporation: Growth in Renewable Diesel and Ethanol A Major Growth Catalyst? - Major Drivers

Valero Energy Corp had a strong Q1 2024, achieving a net income of $1.2 billion thanks to their team's ability to maximise output despite having...

Baptista Research

Valero Energy Corporation: Can The Turnaround In Refinery Operations & The Focus On Renewables Be A Game Changer? - Major Drivers

Valero Energy Corporation recorded strong financial results for the fourth quarter of 2023 and the highest fourth quarter and full-year adjusted...

Baptista Research

[ETP 31/2024] Oil Prices Surge on Middle East Tensions; BP and Shell Beat Earnings Expectations

US crude inventories and gasoline stocks continue to decline, while US natural gas inventories are up YoY. European oil majors surpass Q2 profit...

Mint Finance

Widening Crack Spreads Enable Oil Refiners to Outdo Oil Explorers

Pure play crude oil refining and marketing firms outperformed integrated oil E&P companies during times of widening crack oil spreads.

Mint Finance

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52-week Range

Market Cap (USDm)

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Valero Energy Corporation: Growth in Renewable Diesel & Sustainable Aviation Fuel & Other Critical Growth Levers! - Financial Forecasts

Valero Energy Corporation presented its financial outcomes for the second quarter of 2024, marking a period of both strengths and challenges. The...

Baptista Research

Valero Energy Corporation: Growth in Renewable Diesel and Ethanol A Major Growth Catalyst? - Major Drivers

Valero Energy Corp had a strong Q1 2024, achieving a net income of $1.2 billion thanks to their team's ability to maximise output despite having...

Baptista Research

Valero Energy Corporation: Can The Turnaround In Refinery Operations & The Focus On Renewables Be A Game Changer? - Major Drivers

Valero Energy Corporation recorded strong financial results for the fourth quarter of 2023 and the highest fourth quarter and full-year adjusted...

Baptista Research

[ETP 31/2024] Oil Prices Surge on Middle East Tensions; BP and Shell Beat Earnings Expectations

​US crude inventories and gasoline stocks continue to decline, while US natural gas inventories are up YoY. European oil majors surpass Q2 profit...

Mint Finance

Widening Crack Spreads Enable Oil Refiners to Outdo Oil Explorers

Pure play crude oil refining and marketing firms outperformed integrated oil E&P companies during times of widening crack oil spreads.

Mint Finance

US crude inventories and gasoline stocks continue to decline, while US natural gas inventories are up YoY. European oil majors surpass Q2 profit...