Dallas, Texas 01/03/2014 (FINANCIALSTRENDS) –Valero Energy Corporation (NYSE:VLO), the country’s biggest independent refiner, was in the midst of a spinoff rage during 2013.
Initially, during the month of May, San Antonio-based firm detached CST Brands Inc., its $13.1 bln gas-and-groceries retail division, into a separate firm.
Then, in the month of December, it rolled out an IPO for Valero Energy Partners LP, a master limited affiliation with $600 million in pipeline as well as oil-storage assets.
The partitions were part of sequence of IPOs from well known energy firms this year — many establishing standalone biz operations as master limited joint ventures.
Refiners witness such spinoffs as an opportunity to lift up funds and enhance stock performance, professionals say. And since limited affiliations pay out the majority of their profits to investors, they hold lower business income tax liabilities.
Thus far, investors appear to be rewarding Valero’s approach.
Valero Partners’ scrips gained $28 on Dec. 11, the first day of its 15 million-share IPO. The scrip was valued at $23 per scrip.
The firm also announced proposals for new Corner Store outlets with superior, more productive floor proposals. An bettering Texas financial system and work in oil formations like the Eagle Ford Shale are driving convenience store traffic.
CST runs 1,900 retail locations crosswise the Southwest, U.S. as well as Canada.
Company Feels Stung Over Turkish Refinery Proposal
As per reports, Valero Energy Corporation (NYSE:VLO), a key exporter of diesel and gasoline to foreign nations, is offering an Istanbul firm $641 million to fabricate a new fuel-producing facility in Turkey.
Company’s Chief Executive Bill Klesse forwarded a pointed letter earlier this month to the bank’s president Fred Hochberg, lamenting the loaning sum that Star Rafineri A.S. wishes to assist set up a new 214,000 barrel-a-day refinery.
VLO Hits 52-week peak
Scrip of Valero Energy Corporation (NYSE:VLO) touched its new 52-week peak of $50.54 on Tuesday’s trading session.