Valero's Earnings: How Did Investors React? Share Prices Surge 13% After-Hours

Update

Later, 8:20 pm: be sure to note the first comment -- back in 1997, "they" were concerned with a glut of oil from Canada, when they noted that the WTI/WCS spread had doubled to $7. That was back in 1997. They were concerned about adequate pipelines back in 1997. Fast forward to 2013: the WTI/WCS is now as much as $40. And the Keystone XL is still not approved.

Original Post

I was so busy, I completely missed the news when the Valero earnings came out. I was taking my granddaughter to gymnastics. A huge "thank you" to a reader for reminding me.

I think this article says it all: http://www.cnbc.com/id/100417697?__source=yahoo|headline|quote|text|&par=yahoo

"In other words, because of the Bakken and the Eagle Ford shales and so many other terrific domestic prospects, one of our major refinery powers no longer needs to import expensive oil from other countries to feed its refineries, and this trend is only going to get stronger," Cramer explained.

I thought the easy money had been made in the Bakken but it looks like for investors, still opportunities. I'm thinking of Hess, as another example.

Anyway, back to Valero, this from their press release:

Valero reported net income attributable to Valero stockholders of $1.0 billion, or $1.82 per share, for the fourth quarter of 2012 compared to net income attributable to Valero stockholders of $45 million, or $0.08 per share, for the fourth quarter of 2011.  Included in the fourth quarter 2012 results was a noncash asset impairment loss of $37 million after taxes, or $0.06 per share. For the year ended December 31, 2012, net income attributable to Valero stockholders was $2.1 billion, or $3.75 per share.

So, how did investors react to the news?

Up a whopping 13% in after-hours and continuing to rise.