Valero Energy's strong quarterly results

What happened: Valero Energy reported strong first-quarter results, swinging to a net income of $1.3 billion ($4.22 per share) from a loss a year ago. This was driven by robust refining margins, improved operational performance, and profitability in its renewable diesel and ethanol businesses. The company generated $1.4 billion in operating cash flow and returned $938 million to shareholders. Piper Sandler lifted its price target on Valero Energy stock to $263, citing strong quarterly results.

Market impact: The positive results have pushed Valero Energy's stock up, along with other refining companies like Phillips 66. This is due to increased demand and higher prices for diesel, which has surged by 50% in recent weeks. Both companies have expanded into renewable fuels and offer above-average dividends, making them attractive to investors.

What to watch next: Valero Energy's next earnings report, scheduled for May 2, will provide further insight into the company's performance. Additionally, investors will be watching for any updates on Valero's renewable diesel projects, as the company aims to expand its production capacity. Lastly, changes in diesel prices and refining margins will continue to influence Valero's stock performance.