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Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

<div><ul><li>VLO posted a beat across every operating segment. 1Q26 operating income of $1.73B exceeded $1.40B FactSet consensus: Refining $1.83B (vs. $1.49B), Ethanol $90MM (vs. $50.5MM), Renewable Diesel $139MM (vs. $89.7MM).</li><li>Refining throughput of 2.94 Mbbl/d topped 2.84 Mbbl/d at $14.9/bbl gross margin (vs. $13.5/bbl). Net income was $1.3B, or $4.22 per share.</li><li>Results were up Y/Y from loss in 1Q25 as Hormuz dislocations and heavy sour discounts powered the Gulf Coast. </li></ul></div>

VLO posted a beat across every operating segment. 1Q26 operating income of $1.73B exceeded $1.40B FactSet consensus: Refining $1.83B (vs. $1.49B), Ethanol $90MM (vs. $50.5MM), Renewable Diesel $139MM (vs. $89.7MM).Refining throughput of 2.94 Mbbl/d topped 2.84 Mbbl/d at $14.9/bbl gross margin (vs. $13.5/bbl). Net income was $1.3B, or $4.22 per share.Results were up Y/Y from loss in 1Q25 as Hormuz dislocations and heavy sour discounts powered the Gulf Coast. 

VLO: 1Q26 Results; Sweeping Beat as Hormuz Tightens Markets and Heavy Sour Powers Margins

Valero Energy

VLO: 1Q26 Results; Sweeping Beat as Hormuz Tightens Markets and Heavy Sour Powers Margins