The spin-off of the company's retail arm generated an immediate net cash benefit of $500 million, after shelling out $220 million in taxes. We feel the move would help the company to concentrate on its industry-specific strategies. Also, the company plans to sell out the remaining 20% stake over the next 18 months which will infuse more liquidity in the books of the company. However, being the largest independent refiner in the country, Valero remains exposed to the ongoing tepid macro backdrop. Refiners in the U.S. generally face uncertainty regarding future regulations pertaining to greenhouse gas emissions and the potential for higher requirement of biofuels. Other threats include government regulations, weather conditions, crude oil and natural gas prices as well as renewable fuel prices. These can result in increased costs, reduced growth and fines or other sanctions. Other Stocks to Consider There are other stocks in the sector that however appear more rewarding.