While investors have spent the past few months almost reflexively focusing on anything even remotely related to AI, it has been easy to overlook that there have also been stock market winners in entirely different sectors. One of them is Valero Energy. Shares of the US refining company have gained around two-thirds since the beginning of the year, and over the past 12 months the stock has more than doubled. This impressive rally is no coincidence, but rather the result of a business model that provides significant operating leverage in an environment of high refining margins. The company operates 14 refineries across the United States, Canada and the United Kingdom, with a combined throughput capacity of approximately 3.0 million barrels per day. In addition, Valero owns a stake in the Diamond Green Diesel joint venture, which has an annual production capacity of around 1.2 billion gallons of renewable diesel and sustainable aviation fuel (SAF). The company also operates an ethanol business with 12 plants and an annual production capacity of approximately 1.7 billion gallons. Valero therefore has three earnings pillars: traditional refining margins, low-carbon fuels and biofuels.<\/p>\n\n