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Valero will close its Benicia refinery in 2026, contributing to a planned 20% reduction in California's refining capacity and raising concerns that gas prices could spike as high as $12 per gallon.
Par Pacific Holdings (PARR) stock has outperformed its peers with a 42.2% gain over the last six months, driven by a favorable refining environment and a strategic advantage in sourcing cheaper crude oil.
Valero Energy's strong stock rally has created a valuation conflict. A discounted cash flow (DCF) analysis suggests significant undervaluation, while its price-to-earnings (P/E) ratio indicates it may be overvalued, leading to investor uncertainty.