- Reported net income attributable to Valero stockholders of $1.2
billion, or $3.55 per share, for the fourth quarter and $8.8
billion, or $24.92 per share, for the year
- Reported adjusted net income attributable to Valero
stockholders of $8.8 billion, or $24.90 per share, for the
year
- Returned $1.3 billion to stockholders through dividends and
stock buybacks in the fourth quarter and over $6.6 billion in the
year
- Increased quarterly cash dividend on common stock by 5 percent
to $1.07 per share on January 18
Valero Energy Corporation (NYSE: VLO, “Valero”) today reported
net income attributable to Valero stockholders of $1.2 billion, or
$3.55 per share, for the fourth quarter of 2023, compared to $3.1
billion, or $8.15 per share, for the fourth quarter of 2022.
Excluding the adjustments shown in the accompanying earnings
release tables, adjusted net income attributable to Valero
stockholders was $3.2 billion, or $8.45 per share, for the fourth
quarter of 2022.
For 2023, net income attributable to Valero stockholders was
$8.8 billion, or $24.92 per share, compared to $11.5 billion, or
$29.04 per share, in 2022. Excluding the adjustments shown in the
accompanying earnings release tables, adjusted net income
attributable to Valero stockholders was $8.8 billion, or $24.90 per
share, in 2023, compared to $11.6 billion, or $29.16 per share, in
2022.
Refining The Refining segment reported operating income
of $1.6 billion for the fourth quarter of 2023, compared to $4.3
billion for the fourth quarter of 2022. Refining throughput volumes
averaged 3.0 million barrels per day in the fourth quarter of
2023.
“Our operational achievements in health, safety and
environmental, mechanical availability and cost management
supported best-ever performance in several areas of our operations
and contributed to our second best-ever year in adjusted earnings,”
said Lane Riggs, Valero’s Chief Executive Officer and President.
“We also delivered on our commitment to return cash to
shareholders, invest with discipline, and advance our low-carbon
fuels strategy.”
Renewable Diesel The Renewable Diesel segment, which
consists of the Diamond Green Diesel joint venture (DGD), reported
$84 million of operating income for the fourth quarter of 2023,
compared to $261 million for the fourth quarter of 2022. Segment
sales volumes averaged 3.8 million gallons per day in the fourth
quarter of 2023, which was 1.3 million gallons per day higher than
the fourth quarter of 2022. The higher sales volumes were due to
the impact of additional volumes from the DGD Port Arthur plant,
which started up in the fourth quarter of 2022. Operating income
was lower than the fourth quarter of 2022 due to lower renewable
diesel margin in the fourth quarter of 2023.
Ethanol The Ethanol segment reported $190 million of
operating income for the fourth quarter of 2023, compared to $7
million for the fourth quarter of 2022. Adjusted operating income
was $205 million for the fourth quarter of 2023, compared to $69
million for the fourth quarter of 2022. Ethanol production volumes
averaged 4.5 million gallons per day in the fourth quarter of 2023,
which was 448 thousand gallons per day higher than the fourth
quarter of 2022. Adjusted operating income was higher than the
fourth quarter of 2022 primarily as a result of higher production
volumes and lower corn prices in the fourth quarter of 2023.
Corporate and Other General and administrative expenses
were $295 million in the fourth quarter of 2023 and $998 million
for the year. The effective tax rate for 2023 was 22 percent.
Investing and Financing Activities Net cash provided by
operating activities was $1.2 billion in the fourth quarter of
2023. Included in this amount was a $631 million unfavorable impact
from working capital and $65 million of adjusted net cash provided
by operating activities associated with the other joint venture
member’s share of DGD. Excluding these items, adjusted net cash
provided by operating activities was $1.8 billion in the fourth
quarter of 2023.
Net cash provided by operating activities in 2023 was $9.2
billion. Included in this amount was a $2.3 billion unfavorable
impact from working capital and $512 million of adjusted net cash
provided by operating activities associated with the other joint
venture member’s share of DGD. Excluding these items, adjusted net
cash provided by operating activities in 2023 was $11.0
billion.
Capital investments totaled $540 million in the fourth quarter
of 2023, of which $460 million was for sustaining the business,
including costs for turnarounds, catalysts and regulatory
compliance. Excluding capital investments attributable to the other
joint venture member’s share of DGD, capital investments
attributable to Valero were $506 million in the fourth quarter of
2023 and $1.8 billion in 2023.
Valero returned $1.3 billion to stockholders in the fourth
quarter of 2023, of which $346 million was paid as dividends and
$966 million was for the purchase of approximately 7.5 million
shares of common stock. In 2023, Valero returned over $6.6 billion
to stockholders, or 60 percent of adjusted net cash provided by
operating activities, consisting of $5.2 billion in stock buybacks
and $1.5 billion in dividends.
Valero defines payout ratio as the sum of dividends paid and the
total cost of stock buybacks divided by net cash provided by
operating activities adjusted for changes in working capital and
DGD’s net cash provided by operating activities, excluding changes
in its working capital, attributable to the other joint venture
member’s share of DGD.
On January 18, Valero announced an increase of its quarterly
cash dividend on common stock from $1.02 per share to $1.07 per
share.
Liquidity and Financial Position Valero ended 2023 with
$9.2 billion of total debt, $2.3 billion of finance lease
obligations and $5.4 billion of cash and cash equivalents. The debt
to capitalization ratio, net of cash and cash equivalents, was 18
percent as of December 31, 2023.
Strategic Update The Sustainable Aviation Fuel (SAF)
project at the DGD Port Arthur plant remains on schedule with
completion expected in the first quarter of 2025 for a total cost
of $315 million, with half of that attributable to Valero. The
project is expected to give the plant the optionality to upgrade
approximately 50 percent of its current 470 million gallon
renewable diesel annual production capacity to SAF. With the
completion of this project, DGD is expected to become one of the
largest manufacturers of SAF in the world.
“Our discipline on growth through return driven investments in
our core refining and low-carbon fuels businesses should continue
to strengthen our competitive advantage and drive long-term
shareholder returns,” said Riggs.
Conference Call Valero’s senior management will hold a
conference call at 10 a.m. ET today to discuss this earnings
release and to provide an update on operations and strategy.
About Valero Valero Energy Corporation, through its
subsidiaries (collectively, Valero), is a multinational
manufacturer and marketer of petroleum-based and low-carbon liquid
transportation fuels and petrochemical products, and it sells its
products primarily in the United States (U.S.), Canada, the United
Kingdom (U.K.), Ireland and Latin America. Valero owns 15 petroleum
refineries located in the U.S., Canada and the U.K. with a combined
throughput capacity of approximately 3.2 million barrels per day.
Valero is a joint venture member in Diamond Green Diesel Holdings
LLC, which owns two renewable diesel plants located in the U.S.
Gulf Coast region with a combined production capacity of
approximately 1.2 billion gallons per year, and Valero owns 12
ethanol plants located in the U.S. Mid-Continent region with a
combined production capacity of approximately 1.6 billion gallons
per year. Valero manages its operations through its Refining,
Renewable Diesel and Ethanol segments. Please visit
investorvalero.com for more information.
Valero Contacts Investors: Homer Bhullar, Vice President
– Investor Relations and Finance, 210-345-1982 Eric Herbort,
Director – Investor Relations and Finance, 210-345-3331 Gautam
Srivastava, Director – Investor Relations, 210-345-3992
Media: Lillian Riojas, Executive Director – Media Relations and
Communications, 210-345-5002
Safe-Harbor Statement Statements contained in this
release and the accompanying earnings release tables, or made
during the conference call, that state Valero’s or management’s
expectations or predictions of the future are forward-looking
statements intended to be covered by the safe harbor provisions of
the Securities Act of 1933 and the Securities Exchange Act of 1934.
The words “believe,” “expect,” “should,” “estimates,” “intend,”
“target,” “will,” “plans,” “forecast,” and other similar
expressions identify forward-looking statements. Forward-looking
statements in this release and the accompanying earnings release
tables include, and those made on the conference call may include,
statements relating to Valero’s low-carbon fuels strategy, expected
timing, cost and performance of projects, future market and
industry conditions, future operating and financial performance,
future production and manufacturing ability and size, and
management of future risks, among other matters. It is important to
note that actual results could differ materially from those
projected in such forward-looking statements based on numerous
factors, including those outside of Valero’s control, such as
legislative or political changes or developments, market dynamics,
cyberattacks, weather events, and other matters affecting Valero’s
operations or the demand for Valero’s products. These factors also
include, but are not limited to, the uncertainties that remain with
respect to current or contemplated legal, political or regulatory
developments that are adverse to or restrict refining and marketing
operations, or that impose profits, windfall or margin taxes or
penalties, global geopolitical and other conflicts and tensions,
the impact of inflation on margins and costs, economic activity
levels, and the adverse effects the foregoing may have on Valero’s
business plan, strategy, operations and financial performance. For
more information concerning these and other factors that could
cause actual results to differ from those expressed or forecasted,
see Valero’s annual report on Form 10-K, quarterly reports on Form
10‑Q, and other reports filed with the Securities and Exchange
Commission and available on Valero’s website at www.valero.com.
Use of Non-GAAP Financial Information This earnings
release and the accompanying earnings release tables include
references to financial measures that are not defined under U.S.
generally accepted accounting principles (GAAP). These non-GAAP
measures include adjusted net income attributable to Valero
stockholders, adjusted earnings per common share – assuming
dilution, Refining margin, Renewable Diesel margin, Ethanol margin,
adjusted Refining operating income, adjusted Ethanol operating
income, adjusted net cash provided by operating activities, and
capital investments attributable to Valero. These non-GAAP
financial measures have been included to help facilitate the
comparison of operating results between periods. See the
accompanying earnings release tables for a reconciliation of
non-GAAP measures to their most directly comparable GAAP measures.
Note (h) to the earnings release tables provides reasons for the
use of these non-GAAP financial measures.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
FINANCIAL HIGHLIGHTS
(millions of dollars, except
per share amounts)
(unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Statement of income data
Revenues
$
35,414
$
41,746
$
144,766
$
176,383
Cost of sales:
Cost of materials and other (a)
31,267
34,811
123,087
150,770
Operating expenses (excluding depreciation
and amortization expense reflected below)
1,594
1,638
6,089
6,389
Depreciation and amortization expense
(b)
679
622
2,658
2,428
Total cost of sales
33,540
37,071
131,834
159,587
Asset impairment loss (c)
—
61
—
61
Other operating expenses
15
26
33
66
General and administrative expenses
(excluding depreciation and amortization expense reflected below)
(d)
295
282
998
934
Depreciation and amortization expense
11
11
43
45
Operating income
1,553
4,295
11,858
15,690
Other income, net (e)
145
92
502
179
Interest and debt expense, net of
capitalized interest
(149
)
(137
)
(592
)
(562
)
Income before income tax expense
1,549
4,250
11,768
15,307
Income tax expense (f)
331
1,018
2,619
3,428
Net income
1,218
3,232
9,149
11,879
Less: Net income attributable to
noncontrolling interests
16
119
314
351
Net income attributable to Valero Energy
Corporation stockholders
$
1,202
$
3,113
$
8,835
$
11,528
Earnings per common share
$
3.55
$
8.15
$
24.93
$
29.05
Weighted-average common shares outstanding
(in millions)
337
380
353
395
Earnings per common share – assuming
dilution
$
3.55
$
8.15
$
24.92
$
29.04
Weighted-average common shares outstanding
– assuming dilution (in millions)
338
381
353
396
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
FINANCIAL HIGHLIGHTS BY
SEGMENT
(millions of dollars)
(unaudited)
Corporate
Renewable
and
Refining
Diesel
Ethanol
Eliminations
Total
Three months ended December 31,
2023
Revenues:
Revenues from external customers
$
33,546
$
833
$
1,035
$
—
$
35,414
Intersegment revenues
10
801
296
(1,107
)
—
Total revenues
33,556
1,634
1,331
(1,107
)
35,414
Cost of sales:
Cost of materials and other
30,003
1,407
973
(1,116
)
31,267
Operating expenses (excluding depreciation
and amortization expense reflected below)
1,376
84
132
2
1,594
Depreciation and amortization expense
600
59
21
(1
)
679
Total cost of sales
31,979
1,550
1,126
(1,115
)
33,540
Other operating expenses
—
—
15
—
15
General and administrative expenses
(excluding depreciation and amortization expense reflected
below)
—
—
—
295
295
Depreciation and amortization expense
—
—
—
11
11
Operating income by segment
$
1,577
$
84
$
190
$
(298
)
$
1,553
Three months ended December 31,
2022
Revenues:
Revenues from external customers
$
39,566
$
1,066
$
1,114
$
—
$
41,746
Intersegment revenues
32
528
233
(793
)
—
Total revenues
39,598
1,594
1,347
(793
)
41,746
Cost of sales:
Cost of materials and other
33,280
1,221
1,095
(785
)
34,811
Operating expenses (excluding depreciation
and amortization expense reflected below)
1,398
77
161
2
1,638
Depreciation and amortization expense
565
35
22
—
622
Total cost of sales
35,243
1,333
1,278
(783
)
37,071
Asset impairment loss (c)
—
—
61
—
61
Other operating expenses
25
—
1
—
26
General and administrative expenses
(excluding depreciation and amortization expense reflected
below)
—
—
—
282
282
Depreciation and amortization expense
—
—
—
11
11
Operating income by segment
$
4,330
$
261
$
7
$
(303
)
$
4,295
See Operating Highlights by Segment. See Notes
to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
FINANCIAL HIGHLIGHTS BY
SEGMENT
(millions of dollars)
(unaudited)
Corporate
Renewable
and
Refining
Diesel
Ethanol
Eliminations
Total
Year ended December 31, 2023
Revenues:
Revenues from external customers
$
136,470
$
3,823
$
4,473
$
—
$
144,766
Intersegment revenues
18
3,168
1,086
(4,272
)
—
Total revenues
136,488
6,991
5,559
(4,272
)
144,766
Cost of sales:
Cost of materials and other
117,401
5,550
4,395
(4,259
)
123,087
Operating expenses (excluding depreciation
and amortization expense reflected below)
5,208
358
515
8
6,089
Depreciation and amortization expense
2,351
231
80
(4
)
2,658
Total cost of sales
124,960
6,139
4,990
(4,255
)
131,834
Other operating expenses
17
—
16
—
33
General and administrative expenses
(excluding depreciation and amortization expense reflected
below)
—
—
—
998
998
Depreciation and amortization expense
—
—
—
43
43
Operating income by segment
$
11,511
$
852
$
553
$
(1,058
)
$
11,858
Year ended December 31, 2022
Revenues:
Revenues from external customers
$
168,154
$
3,483
$
4,746
$
—
$
176,383
Intersegment revenues
56
2,018
740
(2,814
)
—
Total revenues
168,210
5,501
5,486
(2,814
)
176,383
Cost of sales:
Cost of materials and other (a)
144,588
4,350
4,628
(2,796
)
150,770
Operating expenses (excluding depreciation
and amortization expense reflected below)
5,509
255
625
—
6,389
Depreciation and amortization expense
(b)
2,247
122
59
—
2,428
Total cost of sales
152,344
4,727
5,312
(2,796
)
159,587
Asset impairment loss (c)
—
—
61
—
61
Other operating expenses
63
—
3
—
66
General and administrative expenses
(excluding depreciation and amortization expense reflected below)
(d)
—
—
—
934
934
Depreciation and amortization expense
—
—
—
45
45
Operating income by segment
$
15,803
$
774
$
110
$
(997
)
$
15,690
See Operating Highlights by Segment. See Notes
to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
RECONCILIATION OF NON-GAAP
MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S.
GAAP (h)
(millions of dollars)
(unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Reconciliation of net income
attributable to Valero Energy Corporation stockholders to
adjusted net income attributable to Valero Energy
Corporation stockholders
Net income attributable to Valero Energy
Corporation stockholders
$
1,202
$
3,113
$
8,835
$
11,528
Adjustments:
Modification of renewable volume
obligation (RVO) (a)
—
—
—
(104
)
Income tax expense related to modification
of RVO
—
—
—
23
Modification of RVO, net of taxes
—
—
—
(81
)
Gain on sale of ethanol plant (b)
—
—
—
(23
)
Income tax expense related to gain on sale
of ethanol plant
—
—
—
5
Gain on sale of ethanol plant, net of
taxes
—
—
—
(18
)
Asset impairment loss (c)
—
61
—
61
Income tax benefit related to asset
impairment loss
—
(14
)
—
(14
)
Asset impairment loss, net of taxes
—
47
—
47
Environmental reserve adjustment (d)
—
—
—
20
Income tax benefit related to
environmental reserve adjustment
—
—
—
(5
)
Environmental reserve adjustment, net of
taxes
—
—
—
15
Gain on early retirement of debt (e)
—
(38
)
(11
)
(14
)
Income tax expense related to gain on
early retirement of debt
—
9
2
3
Gain on early retirement of debt, net of
taxes
—
(29
)
(9
)
(11
)
Pension settlement charge (e)
—
58
—
58
Income tax benefit related to pension
settlement charge
—
(13
)
—
(13
)
Pension settlement charge, net of
taxes
—
45
—
45
Foreign withholding tax (f)
—
51
—
51
Total adjustments
—
114
(9
)
48
Adjusted net income attributable to Valero
Energy Corporation stockholders
$
1,202
$
3,227
$
8,826
$
11,576
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
RECONCILIATION OF NON-GAAP
MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S.
GAAP (h)
(unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Reconciliation of earnings per common
share – assuming dilution to adjusted earnings per
common share – assuming dilution
Earnings per common share – assuming
dilution
$
3.55
$
8.15
$
24.92
$
29.04
Adjustments:
Modification of RVO (a)
—
—
—
(0.20
)
Gain on sale of ethanol plant (b)
—
—
—
(0.05
)
Asset impairment loss (c)
—
0.13
—
0.12
Environmental reserve adjustment (d)
—
—
—
0.04
Gain on early retirement of debt (e)
—
(0.08
)
(0.02
)
(0.03
)
Pension settlement charge (e)
—
0.12
—
0.11
Foreign withholding tax (f)
—
0.13
—
0.13
Total adjustments
—
0.30
(0.02
)
0.12
Adjusted earnings per common share –
assuming dilution
$
3.55
$
8.45
$
24.90
$
29.16
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
RECONCILIATION OF NON-GAAP
MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S.
GAAP (h)
(millions of dollars)
(unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Reconciliation of operating income by
segment to segment margin, and reconciliation of operating
income by segment to adjusted operating income by
segment
Refining segment
Refining operating income
$
1,577
$
4,330
$
11,511
$
15,803
Adjustments:
Modification of RVO (a)
—
—
—
(104
)
Operating expenses (excluding depreciation
and amortization expense reflected below)
1,376
1,398
5,208
5,509
Depreciation and amortization expense
600
565
2,351
2,247
Other operating expenses
—
25
17
63
Refining margin
$
3,553
$
6,318
$
19,087
$
23,518
Refining operating income
$
1,577
$
4,330
$
11,511
$
15,803
Adjustments:
Modification of RVO (a)
—
—
—
(104
)
Other operating expenses
—
25
17
63
Adjusted Refining operating income
$
1,577
$
4,355
$
11,528
$
15,762
Renewable Diesel segment
Renewable Diesel operating income
$
84
$
261
$
852
$
774
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
84
77
358
255
Depreciation and amortization expense
59
35
231
122
Renewable Diesel margin
$
227
$
373
$
1,441
$
1,151
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
RECONCILIATION OF NON-GAAP
MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S.
GAAP (h)
(millions of dollars)
(unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Reconciliation of operating income by
segment to segment margin, and reconciliation of operating
income by segment to adjusted operating income by segment
(continued)
Ethanol segment
Ethanol operating income
$
190
$
7
$
553
$
110
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
132
161
515
625
Depreciation and amortization expense
(b)
21
22
80
59
Asset impairment loss (c)
—
61
—
61
Other operating expenses
15
1
16
3
Ethanol margin
$
358
$
252
$
1,164
$
858
Ethanol operating income
$
190
$
7
$
553
$
110
Adjustments:
Gain on sale of ethanol plant (b)
—
—
—
(23
)
Asset impairment loss (c)
—
61
—
61
Other operating expenses
15
1
16
3
Adjusted Ethanol operating income
$
205
$
69
$
569
$
151
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
RECONCILIATION OF NON-GAAP
MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S.
GAAP (h)
(millions of dollars)
(unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Reconciliation of Refining segment
operating income to Refining margin (by region), and
reconciliation of Refining segment operating income to
adjusted Refining segment operating income (by region)
(i)
U.S. Gulf Coast region
Refining operating income
$
858
$
2,629
$
6,853
$
9,096
Adjustments:
Modification of RVO (a)
—
—
—
(74
)
Operating expenses (excluding depreciation
and amortization expense reflected below)
716
774
2,837
3,113
Depreciation and amortization expense
377
346
1,459
1,369
Other operating expenses
—
19
11
48
Refining margin
$
1,951
$
3,768
$
11,160
$
13,552
Refining operating income
$
858
$
2,629
$
6,853
$
9,096
Adjustments:
Modification of RVO (a)
—
—
—
(74
)
Other operating expenses
—
19
11
48
Adjusted Refining operating income
$
858
$
2,648
$
6,864
$
9,070
U.S. Mid-Continent region
Refining operating income
$
120
$
551
$
1,627
$
2,252
Adjustments:
Modification of RVO (a)
—
—
—
(19
)
Operating expenses (excluding depreciation
and amortization expense reflected below)
197
191
766
772
Depreciation and amortization expense
84
84
334
335
Other operating expenses
—
1
—
1
Refining margin
$
401
$
827
$
2,727
$
3,341
Refining operating income
$
120
$
551
$
1,627
$
2,252
Adjustments:
Modification of RVO (a)
—
—
—
(19
)
Other operating expenses
—
1
—
1
Adjusted Refining operating income
$
120
$
552
$
1,627
$
2,234
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
RECONCILIATION OF NON-GAAP
MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S.
GAAP (h)
(millions of dollars)
(unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Reconciliation of Refining segment
operating income to Refining margin (by region), and
reconciliation of Refining segment operating income to
adjusted Refining segment operating income (by region) (i)
(continued)
North Atlantic region
Refining operating income
$
579
$
1,091
$
2,131
$
3,384
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
204
192
751
816
Depreciation and amortization expense
63
62
255
259
Other operating expenses
—
2
1
11
Refining margin
$
846
$
1,347
$
3,138
$
4,470
Refining operating income
$
579
$
1,091
$
2,131
$
3,384
Adjustment: Other operating expenses
—
2
1
11
Adjusted Refining operating income
$
579
$
1,093
$
2,132
$
3,395
U.S. West Coast region
Refining operating income
$
20
$
59
$
900
$
1,071
Adjustments:
Modification of RVO (a)
—
—
—
(11
)
Operating expenses (excluding depreciation
and amortization expense reflected below) (g)
259
241
854
808
Depreciation and amortization expense
76
73
303
284
Other operating expenses
—
3
5
3
Refining margin
$
355
$
376
$
2,062
$
2,155
Refining operating income
$
20
$
59
$
900
$
1,071
Adjustments:
Modification of RVO (a)
—
—
—
(11
)
Other operating expenses
—
3
5
3
Adjusted Refining operating income
$
20
$
62
$
905
$
1,063
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
REFINING SEGMENT OPERATING
HIGHLIGHTS
(millions of dollars, except
per barrel amounts)
(unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Throughput volumes (thousand barrels
per day)
Feedstocks:
Heavy sour crude oil
485
343
449
343
Medium/light sour crude oil
272
338
307
413
Sweet crude oil
1,517
1,578
1,496
1,474
Residuals
171
218
199
222
Other feedstocks
106
110
115
114
Total feedstocks
2,551
2,587
2,566
2,566
Blendstocks and other
444
455
413
387
Total throughput volumes
2,995
3,042
2,979
2,953
Yields (thousand barrels per
day)
Gasolines and blendstocks
1,489
1,501
1,461
1,451
Distillates
1,128
1,153
1,126
1,118
Other products (j)
404
410
420
409
Total yields
3,021
3,064
3,007
2,978
Operating statistics (h) (k)
Refining margin
$
3,553
$
6,318
$
19,087
$
23,518
Adjusted Refining operating income
$
1,577
$
4,355
$
11,528
$
15,762
Throughput volumes (thousand barrels per
day)
2,995
3,042
2,979
2,953
Refining margin per barrel of
throughput
$
12.89
$
22.58
$
17.55
$
21.82
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per barrel of
throughput
4.99
5.00
4.79
5.11
Depreciation and amortization expense per
barrel of throughput
2.18
2.02
2.16
2.09
Adjusted Refining operating income per
barrel of throughput
$
5.72
$
15.56
$
10.60
$
14.62
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
RENEWABLE DIESEL SEGMENT
OPERATING HIGHLIGHTS
(millions of dollars, except
per gallon amounts)
(unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Operating statistics (h) (k)
Renewable Diesel margin
$
227
$
373
$
1,441
$
1,151
Renewable Diesel operating income
$
84
$
261
$
852
$
774
Sales volumes (thousand gallons per
day)
3,773
2,443
3,539
2,175
Renewable Diesel margin per gallon of
sales
$
0.65
$
1.66
$
1.12
$
1.45
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per gallon of sales
0.24
0.34
0.28
0.32
Depreciation and amortization expense per
gallon of sales
0.17
0.16
0.18
0.15
Renewable Diesel operating income per
gallon of sales
$
0.24
$
1.16
$
0.66
$
0.98
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
ETHANOL SEGMENT OPERATING
HIGHLIGHTS
(millions of dollars, except
per gallon amounts)
(unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Operating statistics (h) (k)
Ethanol margin
$
358
$
252
$
1,164
$
858
Adjusted Ethanol operating income
$
205
$
69
$
569
$
151
Production volumes (thousand gallons per
day)
4,510
4,062
4,367
3,866
Ethanol margin per gallon of
production
$
0.86
$
0.67
$
0.73
$
0.61
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per gallon of
production
0.32
0.43
0.32
0.44
Depreciation and amortization expense per
gallon of production (b)
0.05
0.05
0.05
0.04
Gain on sale of ethanol plant per gallon
of production (b)
—
—
—
0.02
Adjusted Ethanol operating income per
gallon of production
$
0.49
$
0.19
$
0.36
$
0.11
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
REFINING SEGMENT OPERATING
HIGHLIGHTS BY REGION
(millions of dollars, except
per barrel amounts)
(unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Operating statistics by region
(i)
U.S. Gulf Coast region (h) (k)
Refining margin
$
1,951
$
3,768
$
11,160
$
13,552
Adjusted Refining operating income
$
858
$
2,648
$
6,864
$
9,070
Throughput volumes (thousand barrels per
day)
1,816
1,806
1,791
1,766
Refining margin per barrel of
throughput
$
11.69
$
22.68
$
17.07
$
21.02
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per barrel of
throughput
4.29
4.66
4.34
4.83
Depreciation and amortization expense per
barrel of throughput
2.26
2.09
2.23
2.12
Adjusted Refining operating income per
barrel of throughput
$
5.14
$
15.93
$
10.50
$
14.07
U.S. Mid-Continent region (h)
(k)
Refining margin
$
401
$
827
$
2,727
$
3,341
Adjusted Refining operating income
$
120
$
552
$
1,627
$
2,234
Throughput volumes (thousand barrels per
day)
462
477
461
447
Refining margin per barrel of
throughput
$
9.42
$
18.84
$
16.20
$
20.49
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per barrel of
throughput
4.62
4.35
4.55
4.74
Depreciation and amortization expense per
barrel of throughput
1.99
1.92
1.98
2.06
Adjusted Refining operating income per
barrel of throughput
$
2.81
$
12.57
$
9.67
$
13.69
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
REFINING SEGMENT OPERATING
HIGHLIGHTS BY REGION
(millions of dollars, except
per barrel amounts)
(unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Operating statistics by region (i)
(continued)
North Atlantic region (h) (k)
Refining margin
$
846
$
1,347
$
3,138
$
4,470
Adjusted Refining operating income
$
579
$
1,093
$
2,132
$
3,395
Throughput volumes (thousand barrels per
day)
452
494
460
485
Refining margin per barrel of
throughput
$
20.36
$
29.66
$
18.69
$
25.25
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per barrel of
throughput
4.90
4.23
4.47
4.61
Depreciation and amortization expense per
barrel of throughput
1.51
1.35
1.52
1.46
Adjusted Refining operating income per
barrel of throughput
$
13.95
$
24.08
$
12.70
$
19.18
U.S. West Coast region (h) (k)
Refining margin
$
355
$
376
$
2,062
$
2,155
Adjusted Refining operating income
$
20
$
62
$
905
$
1,063
Throughput volumes (thousand barrels per
day)
265
265
267
255
Refining margin per barrel of
throughput
$
14.51
$
15.43
$
21.15
$
23.15
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per barrel of throughput
(g)
10.60
9.87
8.76
8.68
Depreciation and amortization expense per
barrel of throughput
3.10
3.00
3.11
3.05
Adjusted Refining operating income per
barrel of throughput
$
0.81
$
2.56
$
9.28
$
11.42
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
AVERAGE MARKET REFERENCE
PRICES AND DIFFERENTIALS
(unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Refining
Feedstocks (dollars per barrel)
Brent crude oil
$
82.72
$
88.81
$
82.27
$
98.86
Brent less West Texas Intermediate (WTI)
crude oil
4.36
5.96
4.60
4.43
Brent less WTI Houston crude oil
3.04
4.45
3.15
2.82
Brent less Dated Brent crude oil
(1.43
)
(0.11
)
(0.44
)
(2.22
)
Brent less Argus Sour Crude Index crude
oil
4.79
9.91
5.34
7.42
Brent less Maya crude oil
10.83
17.21
13.33
11.68
Brent less Western Canadian Select Houston
crude oil
12.01
22.51
12.15
15.55
WTI crude oil
78.36
82.85
77.67
94.43
Natural gas (dollars per million
British thermal units)
2.27
4.46
2.23
5.83
RVO (dollars per barrel) (l)
4.77
8.55
7.02
7.72
Product margins (RVO adjusted unless
otherwise noted) (dollars per barrel)
U.S. Gulf Coast:
Conventional Blendstock of Oxygenate
Blending (CBOB) gasoline less Brent
(2.41
)
(0.34
)
8.83
9.54
Ultra-low-sulfur (ULS) diesel less
Brent
24.47
44.23
25.06
38.73
Propylene less Brent (not RVO
adjusted)
(50.92
)
(56.82
)
(47.47
)
(42.73
)
U.S. Mid-Continent:
CBOB gasoline less WTI
4.05
6.37
17.70
15.88
ULS diesel less WTI
33.10
50.98
32.37
44.11
North Atlantic:
CBOB gasoline less Brent
5.57
11.74
15.61
19.24
ULS diesel less Brent
33.31
64.48
29.47
49.29
U.S. West Coast:
California Reformulated Gasoline
Blendstock of Oxygenate Blending 87 gasoline less Brent
15.13
15.45
28.45
31.32
California Air Resources Board diesel less
Brent
36.88
44.73
32.79
40.97
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
AVERAGE MARKET REFERENCE
PRICES AND DIFFERENTIALS
(unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Renewable Diesel
New York Mercantile Exchange ULS diesel
(dollars per gallon)
$
2.85
$
3.55
$
2.81
$
3.54
Biodiesel Renewable Identification Number
(RIN) (dollars per RIN)
0.84
1.82
1.35
1.67
California Low-Carbon Fuel Standard carbon
credit (dollars per metric ton)
68.71
65.78
72.42
98.73
U.S. Gulf Coast (USGC) used cooking oil
(dollars per pound)
0.47
0.75
0.58
0.77
USGC distillers corn oil (dollars per
pound)
0.57
0.76
0.63
0.77
USGC fancy bleachable tallow (dollars per
pound)
0.52
0.73
0.59
0.75
Ethanol
Chicago Board of Trade corn (dollars per
bushel)
4.75
6.69
5.65
6.94
New York Harbor ethanol (dollars per
gallon)
2.12
2.48
2.34
2.57
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
OTHER FINANCIAL DATA
(millions of dollars)
(unaudited)
December 31,
2023
2022
Balance sheet data
Current assets
$
26,221
$
24,133
Cash and cash equivalents included in
current assets
5,424
4,862
Inventories included in current assets
7,583
6,752
Current liabilities
16,802
17,461
Valero Energy Corporation stockholders’
equity
26,346
23,561
Total equity
28,524
25,468
Debt and finance lease obligations:
Debt –
Current portion of debt (excluding
variable interest entities (VIEs))
$
167
$
—
Debt, less current portion of debt
(excluding VIEs)
8,021
8,380
Total debt (excluding VIEs)
8,188
8,380
Current portion of debt attributable to
VIEs
1,030
861
Debt, less current portion of debt
attributable to VIEs
—
—
Total debt attributable to VIEs
1,030
861
Total debt
9,218
9,241
Finance lease obligations –
Current portion of finance lease
obligations (excluding VIEs)
183
184
Finance lease obligations, less current
portion (excluding VIEs)
1,428
1,453
Total finance lease obligations (excluding
VIEs)
1,611
1,637
Current portion of finance lease
obligations attributable to VIEs
26
64
Finance lease obligations, less current
portion attributable to VIEs
669
693
Total finance lease obligations
attributable to VIEs
695
757
Total finance lease obligations
2,306
2,394
Total debt and finance lease
obligations
$
11,524
$
11,635
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Reconciliation of net cash provided by
operating activities to adjusted net cash provided by
operating activities (h)
Net cash provided by operating
activities
$
1,239
$
4,096
$
9,229
$
12,574
Exclude:
Changes in current assets and current
liabilities
(631
)
(9
)
(2,326
)
(1,626
)
Diamond Green Diesel LLC’s (DGD) adjusted
net cash provided by operating activities attributable to the other
joint venture member’s ownership interest in DGD
65
142
512
436
Adjusted net cash provided by operating
activities
$
1,805
$
3,963
$
11,043
$
13,764
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
OTHER FINANCIAL DATA
(millions of dollars, except
per share amounts)
(unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Reconciliation of capital investments
to capital investments attributable to Valero (h)
Capital expenditures (excluding VIEs)
$
197
$
236
$
665
$
788
Capital expenditures of VIEs:
DGD
52
171
235
853
Other VIEs
7
10
11
40
Deferred turnaround and catalyst cost
expenditures (excluding VIEs)
281
210
946
1,030
Deferred turnaround and catalyst cost
expenditures of DGD
3
13
59
26
Investments in nonconsolidated joint
ventures
—
—
—
1
Capital investments
540
640
1,916
2,738
Adjustments:
DGD’s capital investments attributable to
the other joint venture member
(27
)
(92
)
(147
)
(439
)
Capital expenditures of other VIEs
(7
)
(10
)
(11
)
(40
)
Capital investments attributable to
Valero
$
506
$
538
$
1,758
$
2,259
Dividends per common share
$
1.02
$
0.98
$
4.08
$
3.92
Year Ending
December 31, 2024
Reconciliation of expected capital
investments to expected capital investments attributable to
Valero (h)
Expected capital investments
$
2,165
Adjustment: DGD’s capital investments
attributable to the other joint venture member
(215
)
Expected capital investments attributable
to Valero
$
1,950
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
NOTES TO EARNINGS RELEASE
TABLES
(a)
Under the Renewable Fuel Standard (RFS) program, the U.S.
Environmental Protection Agency (EPA) is required to set
annual quotas for the volume of renewable fuels that obligated
parties, such as us, must blend into petroleum-based transportation
fuels consumed in the U.S. The quotas are used to determine an
obligated party’s RVO. The EPA released a final rule on
June 3, 2022 that, among other things, modified the volume
standards for 2020 and, for the first time, established volume
standards for 2021 and 2022.
In 2020, we recognized the cost of the RVO
using the 2020 quotas set by the EPA at that time, and in 2021 and
the three months ended March 31, 2022, we recognized the
cost of the RVO using our estimates of the quotas. As a result of
the final rule released by the EPA as noted above, we recognized a
benefit of $104 million in the year ended December 31,
2022 primarily related to the modification of the 2020 quotas.
(b)
Depreciation and amortization expense for the year ended
December 31, 2022 includes a gain of $23 million on the
sale of our ethanol plant located in Jefferson,
Wisconsin (Jefferson ethanol plant).
(c)
Our ethanol plant located in Lakota, Iowa (Lakota ethanol plant)
was previously configured to produce USP-grade ethanol, a higher
grade ethanol suitable for hand sanitizer blending that has a
higher market value than fuel-grade ethanol. During 2022, demand
for USP-grade ethanol declined and had a negative impact on the
profitability of the plant. As a result, we tested the
recoverability of the carrying value of the Lakota ethanol plant
and concluded that it was impaired. Therefore, we reduced the
carrying value of the plant to its estimated fair value and
recognized an asset impairment loss of $61 million in the
three months and year ended December 31, 2022.
(d)
General and administrative expenses (excluding depreciation and
amortization expense) for the year ended December 31, 2022
includes a charge of $20 million for an environmental reserve
adjustment associated with a non-operating site.
(e)
“Other income, net” includes the following:
- a net gain of $11 million in the year ended
December 31, 2023 related to the early retirement of
$199 million aggregate principal amount of various series of
our senior notes;
- a net gain of $38 million and $14 million in the
three months and year ended December 31, 2022, respectively,
related to the early retirement of $442 million and
approximately $3.1 billion aggregate principal amount,
respectively, of various series of our senior notes; and
- a pension settlement charge of $58 million in the
three months and year ended December 31, 2022 resulting
from a greater number of employees that retired in 2022 who elected
lump sum benefit payments from our defined benefit pension plans
than estimated.
(f)
Income tax expense for the three months and year ended
December 31, 2022 includes deferred income tax expense of
$51 million associated with the recognition of a deferred tax
liability for foreign withholding tax on the repatriation of cash
held by one of our international subsidiaries that we considered no
longer permanently reinvested in our operations in that
country.
(g)
Operating expenses (excluding depreciation and amortization
expense) for the three months and year ended December 31, 2023
includes an environmental regulatory reserve adjustment.
(h)
We use certain financial measures (as noted below) in the
earnings release tables and accompanying earnings release that are
not defined under GAAP and are considered to be non-GAAP
measures.
We have defined these non-GAAP measures
and believe they are useful to the external users of our financial
statements, including industry analysts, investors, lenders, and
rating agencies. We believe these measures are useful to assess our
ongoing financial performance because, when reconciled to their
most comparable GAAP measures, they provide improved comparability
between periods after adjusting for certain items that we believe
are not indicative of our core operating performance and that may
obscure our underlying business results and trends. These non-GAAP
measures should not be considered as alternatives to their most
comparable GAAP measures nor should they be considered in isolation
or as a substitute for an analysis of our results of operations as
reported under GAAP. In addition, these non-GAAP measures may not
be comparable to similarly titled measures used by other companies
because we may define them differently, which diminishes their
utility.
Non-GAAP measures are as follows:
- Adjusted net income attributable to Valero Energy
Corporation stockholders is defined as net income attributable
to Valero Energy Corporation stockholders adjusted to reflect the
items noted below, along with their related income tax effect. The
income tax effect for the adjustments was calculated using a
combined federal and state statutory rate for the U.S.-based
adjustments of 22.5 percent and a local statutory income tax
rate for foreign-based adjustments. We have adjusted for these
items because we believe that they are not indicative of our core
operating performance and that their adjustment results in an
important measure of our ongoing financial performance to better
assess our underlying business results and trends. The basis for
our belief with respect to each adjustment is provided below.
– Modification of RVO – The net benefit
resulting from the modification of our RVO for 2020 and 2021 that
was recognized by us in June 2022 is not associated with the cost
of the RVO generated by our operations during the year ended
December 31, 2022. See note (a) for additional
details.
– Gain on sale of ethanol plant – The gain
on the sale of our Jefferson ethanol plant (see note (b)) is
not indicative of our ongoing operations.
– Asset impairment loss – The asset
impairment loss attributable to our Lakota ethanol plant (see
note (c)) is not indicative of our ongoing operations or our
expectations about the profitability of our ethanol business.
– Environmental reserve adjustment – The
environmental reserve adjustment (see note (d)) is
attributable to a site that was shut down by prior owners and
subsequently acquired by us (referred to by us as a non-operating
site).
– Gain on early retirement of debt –
Discounts, premiums, and other expenses recognized in connection
with the early retirement of various series of our senior notes
(see note (e)) are not associated with the ongoing costs of
our borrowing and financing activities.
– Pension settlement charge – The
settlement charge (see note (e)) is largely the result of the
rising interest rate environment in 2022 and the impact of higher
interest rates on lump sum pension benefits that affected employee
retirement decisions. Therefore, the settlement charge is not
indicative of the ongoing costs associated with our pension
plans.
– Foreign withholding tax – The deferred
income tax expense associated with the recognition of a deferred
tax liability for foreign withholding tax (see note (f)) is
the result of a change in the three months and year ended
December 31, 2022 in the manner in which cash generated by the
company’s business in international jurisdictions is deployed in
the U.S.
- Adjusted earnings per common share – assuming dilution
is defined as adjusted net income attributable to Valero Energy
Corporation stockholders divided by the number of weighted-average
shares outstanding in the applicable period, assuming
dilution.
- Refining margin is defined as Refining segment operating
income excluding the modification of RVO adjustment (see
note (a)), operating expenses (excluding depreciation and
amortization expense), depreciation and amortization expense, and
other operating expenses. We believe Refining margin is an
important measure of our Refining segment’s operating and financial
performance as it is the most comparable measure to the industry’s
market reference product margins, which are used by industry
analysts, investors, and others to evaluate our performance.
- Renewable Diesel margin is defined as Renewable Diesel
segment operating income excluding operating expenses (excluding
depreciation and amortization expense) and depreciation and
amortization expense. We believe Renewable Diesel margin is an
important measure of our Renewable Diesel segment’s operating and
financial performance as it is the most comparable measure to the
industry’s market reference product margins, which are used by
industry analysts, investors, and others to evaluate our
performance.
- Ethanol margin is defined as Ethanol segment operating
income excluding operating expenses (excluding depreciation and
amortization expense), depreciation and amortization expense, the
asset impairment loss (see note (c)), and other operating
expenses. We believe Ethanol margin is an important measure of our
Ethanol segment’s operating and financial performance as it is the
most comparable measure to the industry’s market reference product
margins, which are used by industry analysts, investors, and others
to evaluate our performance.
- Adjusted Refining operating income is defined as
Refining segment operating income excluding the modification of RVO
adjustment (see note (a)) and other operating expenses. We
believe adjusted Refining operating income is an important measure
of our Refining segment’s operating and financial performance
because it excludes items that are not indicative of that segment’s
core operating performance.
- Adjusted Ethanol operating income is defined as Ethanol
segment operating income excluding the gain on sale of ethanol
plant (see note (b)), the asset impairment loss (see note
(c)), and other operating expenses. We believe adjusted Ethanol
operating income is an important measure of our Ethanol segment’s
operating and financial performance because it excludes items that
are not indicative of that segment’s core operating
performance.
- Adjusted net cash provided by operating activities is
defined as net cash provided by operating activities excluding the
items noted below. We believe adjusted net cash provided by
operating activities is an important measure of our ongoing
financial performance to better assess our ability to generate cash
to fund our investing and financing activities. The basis for our
belief with respect to each excluded item is provided below.
– Changes in current assets and current
liabilities – Current assets net of current liabilities represents
our operating liquidity. We believe that the change in our
operating liquidity from period to period does not represent cash
generated by our operations that is available to fund our investing
and financing activities.
– DGD’s adjusted net cash provided by
operating activities attributable to the other joint venture
member’s ownership interest in DGD – We are a 50 percent joint
venture member in DGD and we consolidate DGD’s financial
statements. Our Renewable Diesel segment includes the operations of
DGD and the associated activities to market its products. Because
we consolidate DGD’s financial statements, all of DGD’s net cash
provided by operating activities (or operating cash flow) is
included in our consolidated net cash provided by operating
activities.
DGD’s members use DGD’s operating cash
flow (excluding changes in its current assets and current
liabilities) to fund its capital investments rather than distribute
all of that cash to themselves. Nevertheless, DGD’s operating cash
flow is effectively attributable to each member and only
50 percent of DGD’s operating cash flow should be attributed
to our net cash provided by operating activities. Therefore, we
have adjusted our net cash provided by operating activities for the
portion of DGD’s operating cash flow attributable to the other
joint venture member’s ownership interest because we believe that
it more accurately reflects the operating cash flow available to us
to fund our investing and financing activities. The adjustment is
calculated as follows (in millions):
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
DGD operating cash flow data
Net cash provided by operating
activities
$
50
$
—
$
537
$
661
Exclude: Changes in current assets and
current liabilities
(80
)
(283
)
(488
)
(210
)
Adjusted net cash provided by operating
activities
130
283
1,025
871
Other joint venture member’s ownership
interest
50
%
50
%
50
%
50
%
DGD’s adjusted net cash provided by
operating activities attributable to the other joint venture
member’s ownership interest in DGD
$
65
$
142
$
512
$
436
- Capital investments attributable to Valero is defined as
all capital expenditures and deferred turnaround and catalyst cost
expenditures presented in our consolidated statements of cash
flows, excluding the portion of DGD’s capital investments
attributable to the other joint venture member and all of the
capital expenditures of VIEs other than DGD.
DGD’s members use DGD’s operating cash
flow (excluding changes in its current assets and current
liabilities) to fund its capital investments rather than distribute
all of that cash to themselves. Because DGD’s operating cash flow
is effectively attributable to each member, only 50 percent of
DGD’s capital investments should be attributed to our net share of
total capital investments. We also exclude the capital expenditures
of other VIEs that we consolidate because we do not operate those
VIEs. We believe capital investments attributable to Valero is an
important measure because it more accurately reflects our capital
investments.
(i)
The Refining segment regions reflected herein contain the
following refineries: U.S. Gulf Coast- Corpus
Christi East, Corpus Christi West, Houston, Meraux, Port Arthur,
St. Charles, Texas City, and Three Rivers Refineries;
U.S. Mid Continent- Ardmore, McKee,
and Memphis Refineries; North Atlantic- Pembroke and Quebec
City Refineries; and U.S. West Coast- Benicia
and Wilmington Refineries.
(j)
Primarily includes petrochemicals, gas oils,
No. 6 fuel oil, petroleum coke, sulfur, and asphalt.
(k)
Valero uses certain operating statistics (as noted below) in the
earnings release tables and the accompanying earnings release to
evaluate performance between comparable periods. Different
companies may calculate them in different ways.
All per barrel of throughput, per gallon
of sales, and per gallon of production amounts are calculated by
dividing the associated dollar amount by the throughput volumes,
sales volumes, and production volumes for the period, as
applicable.
Throughput volumes, sales volumes, and
production volumes are calculated by multiplying throughput volumes
per day, sales volumes per day, and production volumes per day (as
provided in the accompanying tables), respectively, by the number
of days in the applicable period. We use throughput volumes, sales
volumes, and production volumes for the Refining segment, Renewable
Diesel segment, and Ethanol segment, respectively, due to their
general use by others who operate facilities similar to those
included in our segments. We believe the use of such volumes
results in per unit amounts that are most representative of the
product margins generated and the operating costs incurred as a
result of our operation of those facilities.
(l)
The RVO cost represents the average market cost on a per barrel
basis to comply with the RFS program. The RVO cost is calculated by
multiplying (i) the average market price during the applicable
period for the RINs associated with each class of renewable fuel
(i.e., biomass-based diesel, cellulosic biofuel, advanced biofuel,
and total renewable fuel) by (ii) the quotas for the volume of
each class of renewable fuel that must be blended into
petroleum-based transportation fuels consumed in the U.S., as set
or proposed by the EPA, on a percentage basis for each class of
renewable fuel and adding together the results of each
calculation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240124867362/en/
Valero Contacts Investors: Homer Bhullar, Vice President
– Investor Relations and Finance, 210-345-1982 Eric Herbort,
Director – Investor Relations and Finance, 210-345-3331 Gautam
Srivastava, Director – Investor Relations, 210-345-3992
Media: Lillian Riojas, Executive Director – Media Relations and
Communications, 210-345-5002
Valero Energy (NYSE:VLO)
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