Valero OKs Buyback of $2 Billion in Stock

Valero Energy Corp.'s board of directors authorized the purchase of $2 billion worth of common stock.

So far this year, the San Antonio-based oil refining company has purchased approximately 33 million shares for $1.9 billion, a move which reduced outstanding shares by more than 5%.

"As a result of the strong cash flows, we have been able to return a significant amount of cash to our shareholders, reduce our debt levels, and invest in our assets," said CEO Bill Klesse. "As we continue to purchase shares under the new authorization, we remain committed to enhancing shareholder value, maintaining a strong balance sheet and improving our returns. Given that our shares continue to be undervalued, we believe purchasing shares represents an excellent use of our free cash flow."