- Reported net income attributable to Valero stockholders of $880
million, or $2.71 per share
- Declared a regular quarterly cash dividend on common stock of
$1.07 per share on July 18
- Returned $1.4 billion to stockholders through dividends and
stock buybacks
Valero Energy Corporation (NYSE: VLO, “Valero”) today reported
net income attributable to Valero stockholders of $880 million, or
$2.71 per share, for the second quarter of 2024, compared to $1.9
billion, or $5.40 per share, for the second quarter of 2023.
Refining The Refining segment reported operating income
of $1.2 billion for the second quarter of 2024, compared to $2.4
billion for the second quarter of 2023. Refining throughput volumes
averaged 3.0 million barrels per day in the second quarter of
2024.
“We see continued strength in our U.S. wholesale system with
sales exceeding one million barrels per day in the second quarter,”
said Lane Riggs, Valero’s Chief Executive Officer and
President.
Renewable Diesel The Renewable Diesel segment, which
consists of the Diamond Green Diesel joint venture (DGD), reported
$112 million of operating income for the second quarter of 2024,
compared to $440 million for the second quarter of 2023. Segment
sales volumes averaged 3.5 million gallons per day in the second
quarter of 2024, which was 908 thousand gallons per day lower than
the second quarter of 2023. Operating income in the second quarter
of 2024 was lower than the second quarter of 2023 due to lower
sales volumes resulting from planned maintenance activities and
lower renewable diesel margin.
Ethanol The Ethanol segment reported $105 million of
operating income for the second quarter of 2024, compared to $127
million for the second quarter of 2023. Ethanol production volumes
averaged 4.5 million gallons per day in the second quarter of 2024,
which was 31 thousand gallons per day higher than the second
quarter of 2023.
Corporate and Other General and administrative expenses
were $203 million in the second quarter of 2024, compared to $209
million in the second quarter of 2023. The effective tax rate for
the second quarter of 2024 was 23 percent.
Investing and Financing Activities Net cash provided by
operating activities was $2.5 billion in the second quarter of
2024. Included in this amount was a $789 million favorable change
in working capital and $83 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 $1.6 billion in the second
quarter of 2024.
Capital investments totaled $420 million in the second quarter
of 2024, of which $329 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 and other variable interest
entities, capital investments attributable to Valero were $360
million.
Valero returned $1.4 billion to stockholders in the second
quarter of 2024, of which $347 million was paid as dividends and
$1.0 billion was for the purchase of approximately 6.6 million
shares of common stock, resulting in a payout ratio of 87 percent
of adjusted net cash provided by operating activities.
Valero remains committed to a through-cycle minimum annual
payout ratio of 40 to 50 percent. Valero defines payout ratio as
the sum of dividends paid and the total cost of stock buybacks
divided by adjusted net cash provided by operating activities.
On July 18, Valero announced a quarterly cash dividend on common
stock of $1.07 per share, payable on September 3, 2024 to holders
of record at the close of business on August 1, 2024.
Liquidity and Financial Position Valero ended the second
quarter of 2024 with $8.4 billion of total debt, $2.4 billion of
finance lease obligations, and $5.2 billion of cash and cash
equivalents. The debt to capitalization ratio, net of cash and cash
equivalents, was 16 percent as of June 30, 2024.
Strategic Update The Sustainable Aviation Fuel (SAF)
project at the DGD Port Arthur plant is still expected to be
operational in the fourth quarter of 2024, with a total cost of
$315 million, half of which is 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 team’s simple strategy of pursuing excellence in
operations, return driven discipline on growth projects, and a
demonstrated commitment to shareholder returns has underpinned our
success and positions us well for the future,” 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,” “commitment,” “plans,” “forecast, “guidance” 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 and financial performance 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 definition of non-GAAP
measures and a reconciliation to their most directly comparable
GAAP measures. Note (c) 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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Statement of income data
Revenues
$
34,490
$
34,509
$
66,249
$
70,948
Cost of sales:
Cost of materials and other
30,943
29,430
58,625
59,435
Operating expenses (excluding depreciation
and amortization expense reflected below)
1,424
1,440
2,835
2,917
Depreciation and amortization expense
684
658
1,367
1,308
Total cost of sales
33,051
31,528
62,827
63,660
Other operating expenses (a)
3
2
37
12
General and administrative expenses
(excluding depreciation and amortization expense reflected
below)
203
209
461
453
Depreciation and amortization expense
12
11
24
21
Operating income
1,221
2,759
2,900
6,802
Other income, net (b)
122
106
266
235
Interest and debt expense, net of
capitalized interest
(140
)
(148
)
(280
)
(294
)
Income before income tax expense
1,203
2,717
2,886
6,743
Income tax expense
277
595
630
1,475
Net income
926
2,122
2,256
5,268
Less: Net income attributable to
noncontrolling interests
46
178
131
257
Net income attributable to Valero Energy
Corporation stockholders
$
880
$
1,944
$
2,125
$
5,011
Earnings per common share
$
2.71
$
5.41
$
6.47
$
13.75
Weighted-average common shares outstanding
(in millions)
324
358
327
363
Earnings per common share – assuming
dilution
$
2.71
$
5.40
$
6.47
$
13.74
Weighted-average common shares outstanding
– assuming dilution (in millions)
324
358
327
363
See Notes to Earnings Release
Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
FINANCIAL HIGHLIGHTS BY
SEGMENT
(millions of dollars)
(unaudited)
Refining
Renewable
Diesel
Ethanol
Corporate and
Eliminations
Total
Three months ended June 30,
2024
Revenues:
Revenues from external customers
$
33,044
$
554
$
892
$
—
$
34,490
Intersegment revenues
3
630
229
(862
)
—
Total revenues
33,047
1,184
1,121
(862
)
34,490
Cost of sales:
Cost of materials and other
29,995
930
874
(856
)
30,943
Operating expenses (excluding depreciation
and amortization expense reflected below)
1,219
80
125
—
1,424
Depreciation and amortization expense
604
62
19
(1
)
684
Total cost of sales
31,818
1,072
1,018
(857
)
33,051
Other operating expenses
5
—
(2
)
—
3
General and administrative expenses
(excluding depreciation and amortization expense reflected
below)
—
—
—
203
203
Depreciation and amortization expense
—
—
—
12
12
Operating income by segment
$
1,224
$
112
$
105
$
(220
)
$
1,221
Three months ended June 30,
2023
Revenues:
Revenues from external customers
$
31,996
$
1,296
$
1,217
$
—
$
34,509
Intersegment revenues
(3
)
950
257
(1,204
)
—
Total revenues
31,993
2,246
1,474
(1,204
)
34,509
Cost of sales:
Cost of materials and other
27,773
1,643
1,199
(1,185
)
29,430
Operating expenses (excluding depreciation
and amortization expense reflected below)
1,205
104
128
3
1,440
Depreciation and amortization expense
582
59
19
(2
)
658
Total cost of sales
29,560
1,806
1,346
(1,184
)
31,528
Other operating expenses
1
—
1
—
2
General and administrative expenses
(excluding depreciation and amortization expense reflected
below)
—
—
—
209
209
Depreciation and amortization expense
—
—
—
11
11
Operating income by segment
$
2,432
$
440
$
127
$
(240
)
$
2,759
See Operating Highlights by Segment.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
FINANCIAL HIGHLIGHTS BY
SEGMENT
(millions of dollars)
(unaudited)
Refining
Renewable
Diesel
Ethanol
Corporate and
Eliminations
Total
Six months ended June 30, 2024
Revenues:
Revenues from external customers
$
63,187
$
1,256
$
1,806
$
—
$
66,249
Intersegment revenues
5
1,339
419
(1,763
)
—
Total revenues
63,192
2,595
2,225
(1,763
)
66,249
Cost of sales:
Cost of materials and other
56,606
1,996
1,783
(1,760
)
58,625
Operating expenses (excluding depreciation
and amortization expense reflected below)
2,403
170
262
—
2,835
Depreciation and amortization expense
1,204
127
38
(2
)
1,367
Total cost of sales
60,213
2,293
2,083
(1,762
)
62,827
Other operating expenses (a)
10
—
27
—
37
General and administrative expenses
(excluding depreciation and amortization expense reflected
below)
—
—
—
461
461
Depreciation and amortization expense
—
—
—
24
24
Operating income by segment
$
2,969
$
302
$
115
$
(486
)
$
2,900
Six months ended June 30, 2023
Revenues:
Revenues from external customers
$
66,403
$
2,231
$
2,314
$
—
$
70,948
Intersegment revenues
—
1,695
480
(2,175
)
—
Total revenues
66,403
3,926
2,794
(2,175
)
70,948
Cost of sales:
Cost of materials and other
56,283
2,974
2,330
(2,152
)
59,435
Operating expenses (excluding depreciation
and amortization expense reflected below)
2,466
190
258
3
2,917
Depreciation and amortization expense
1,154
117
39
(2
)
1,308
Total cost of sales
59,903
3,281
2,627
(2,151
)
63,660
Other operating expenses
11
—
1
—
12
General and administrative expenses
(excluding depreciation and amortization expense reflected
below)
—
—
—
453
453
Depreciation and amortization expense
—
—
—
21
21
Operating income by segment
$
6,489
$
645
$
166
$
(498
)
$
6,802
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
(c)
(millions of dollars)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
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
$
880
$
1,944
$
2,125
$
5,011
Adjustments:
Project liability adjustment (a)
—
—
29
—
Income tax benefit related to project
liability adjustment
—
—
(7
)
—
Project liability adjustment, net of
taxes
—
—
22
—
Gain on early retirement of debt (b)
—
—
—
(11
)
Income tax expense related to gain on
early retirement of debt
—
—
—
2
Gain on early retirement of debt, net of
taxes
—
—
—
(9
)
Total adjustments
—
—
22
(9
)
Adjusted net income attributable to Valero
Energy Corporation stockholders
$
880
$
1,944
$
2,147
$
5,002
Reconciliation of earnings per common
share – assuming dilution to adjusted earnings per
common share – assuming dilution
Earnings per common share – assuming
dilution
$
2.71
$
5.40
$
6.47
$
13.74
Adjustments:
Project liability adjustment (a)
—
—
0.07
—
Gain on early retirement of debt (b)
—
—
—
(0.02
)
Total adjustments
—
—
0.07
(0.02
)
Adjusted earnings per common share –
assuming dilution
$
2.71
$
5.40
$
6.54
$
13.72
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
(c)
(millions of dollars)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
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
$
1,224
$
2,432
$
2,969
$
6,489
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
1,219
1,205
2,403
2,466
Depreciation and amortization expense
604
582
1,204
1,154
Other operating expenses
5
1
10
11
Refining margin
$
3,052
$
4,220
$
6,586
$
10,120
Refining operating income
$
1,224
$
2,432
$
2,969
$
6,489
Adjustment: Other operating expenses
5
1
10
11
Adjusted Refining operating income
$
1,229
$
2,433
$
2,979
$
6,500
Renewable Diesel segment
Renewable Diesel operating income
$
112
$
440
$
302
$
645
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
80
104
170
190
Depreciation and amortization expense
62
59
127
117
Renewable Diesel margin
$
254
$
603
$
599
$
952
Ethanol segment
Ethanol operating income
$
105
$
127
$
115
$
166
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
125
128
262
258
Depreciation and amortization expense
19
19
38
39
Other operating expenses (a)
(2
)
1
27
1
Ethanol margin
$
247
$
275
$
442
$
464
Ethanol operating income
$
105
$
127
$
115
$
166
Adjustment: Other operating expenses
(a)
(2
)
1
27
1
Adjusted Ethanol operating income
$
103
$
128
$
142
$
167
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
(c)
(millions of dollars)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
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)
(d)
U.S. Gulf Coast region
Refining operating income
$
686
$
1,529
$
1,693
$
4,196
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
656
674
1,320
1,360
Depreciation and amortization expense
377
358
750
707
Other operating expenses
3
1
6
11
Refining margin
$
1,722
$
2,562
$
3,769
$
6,274
Refining operating income
$
686
$
1,529
$
1,693
$
4,196
Adjustment: Other operating expenses
3
1
6
11
Adjusted Refining operating income
$
689
$
1,530
$
1,699
$
4,207
U.S. Mid-Continent region
Refining operating income
$
111
$
323
$
380
$
925
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
188
181
373
375
Depreciation and amortization expense
88
83
175
165
Other operating expenses
—
—
2
—
Refining margin
$
387
$
587
$
930
$
1,465
Refining operating income
$
111
$
323
$
380
$
925
Adjustment: Other operating expenses
—
—
2
—
Adjusted Refining operating income
$
111
$
323
$
382
$
925
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
(c)
(millions of dollars)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
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) (d)
(continued)
North Atlantic region
Refining operating income
$
325
$
311
$
723
$
940
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
176
178
355
358
Depreciation and amortization expense
67
66
130
129
Other operating expenses
1
—
1
—
Refining margin
$
569
$
555
$
1,209
$
1,427
Refining operating income
$
325
$
311
$
723
$
940
Adjustment: Other operating expenses
1
—
1
—
Adjusted Refining operating income
$
326
$
311
$
724
$
940
U.S. West Coast region
Refining operating income
$
102
$
269
$
173
$
428
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
199
172
355
373
Depreciation and amortization expense
72
75
149
153
Other operating expenses
1
—
1
—
Refining margin
$
374
$
516
$
678
$
954
Refining operating income
$
102
$
269
$
173
$
428
Adjustment: Other operating expenses
1
—
1
—
Adjusted Refining operating income
$
103
$
269
$
174
$
428
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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Throughput volumes (thousand barrels
per day)
Feedstocks:
Heavy sour crude oil
520
469
434
407
Medium/light sour crude oil
265
321
253
322
Sweet crude oil
1,530
1,462
1,518
1,475
Residuals
201
212
176
218
Other feedstocks
109
96
116
118
Total feedstocks
2,625
2,560
2,497
2,540
Blendstocks and other
385
409
388
410
Total throughput volumes
3,010
2,969
2,885
2,950
Yields (thousand barrels per
day)
Gasolines and blendstocks
1,490
1,430
1,419
1,441
Distillates
1,144
1,119
1,068
1,109
Other products (e)
407
446
423
424
Total yields
3,041
2,995
2,910
2,974
Operating statistics (c) (f)
Refining margin
$
3,052
$
4,220
$
6,586
$
10,120
Adjusted Refining operating income
$
1,229
$
2,433
$
2,979
$
6,500
Throughput volumes (thousand barrels per
day)
3,010
2,969
2,885
2,950
Refining margin per barrel of
throughput
$
11.14
$
15.62
$
12.54
$
18.95
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per barrel of
throughput
4.45
4.46
4.58
4.62
Depreciation and amortization expense per
barrel of throughput
2.20
2.16
2.29
2.16
Adjusted Refining operating income per
barrel of throughput
$
4.49
$
9.00
$
5.67
$
12.17
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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Operating statistics (c) (f)
Renewable Diesel margin
$
254
$
603
$
599
$
952
Renewable Diesel operating income
$
112
$
440
$
302
$
645
Sales volumes (thousand gallons per
day)
3,492
4,400
3,610
3,698
Renewable Diesel margin per gallon of
sales
$
0.80
$
1.51
$
0.91
$
1.42
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per gallon of sales
0.25
0.26
0.26
0.28
Depreciation and amortization expense per
gallon of sales
0.20
0.15
0.19
0.18
Renewable Diesel operating income per
gallon of sales
$
0.35
$
1.10
$
0.46
$
0.96
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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Operating statistics (c) (f)
Ethanol margin
$
247
$
275
$
442
$
464
Adjusted Ethanol operating income
$
103
$
128
$
142
$
167
Production volumes (thousand gallons per
day)
4,474
4,443
4,470
4,314
Ethanol margin per gallon of
production
$
0.61
$
0.68
$
0.54
$
0.59
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per gallon of
production
0.31
0.32
0.32
0.33
Depreciation and amortization expense per
gallon of production
0.05
0.05
0.05
0.05
Adjusted Ethanol operating income per
gallon of production
$
0.25
$
0.31
$
0.17
$
0.21
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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Operating statistics by region
(d)
U.S. Gulf Coast region (c) (f)
Refining margin
$
1,722
$
2,562
$
3,769
$
6,274
Adjusted Refining operating income
$
689
$
1,530
$
1,699
$
4,207
Throughput volumes (thousand barrels per
day)
1,827
1,800
1,711
1,757
Refining margin per barrel of
throughput
$
10.36
$
15.64
$
12.11
$
19.73
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per barrel of
throughput
3.95
4.11
4.24
4.28
Depreciation and amortization expense per
barrel of throughput
2.27
2.19
2.41
2.22
Adjusted Refining operating income per
barrel of throughput
$
4.14
$
9.34
$
5.46
$
13.23
U.S. Mid-Continent region (c)
(f)
Refining margin
$
387
$
587
$
930
$
1,465
Adjusted Refining operating income
$
111
$
323
$
382
$
925
Throughput volumes (thousand barrels per
day)
438
434
444
463
Refining margin per barrel of
throughput
$
9.73
$
14.89
$
11.49
$
17.48
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per barrel of
throughput
4.71
4.60
4.60
4.48
Depreciation and amortization expense per
barrel of throughput
2.22
2.10
2.16
1.97
Adjusted Refining operating income per
barrel of throughput
$
2.80
$
8.19
$
4.73
$
11.03
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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Operating statistics by region (d)
(continued)
North Atlantic region (c) (f)
Refining margin
$
569
$
555
$
1,209
$
1,427
Adjusted Refining operating income
$
326
$
311
$
724
$
940
Throughput volumes (thousand barrels per
day)
469
463
459
464
Refining margin per barrel of
throughput
$
13.32
$
13.15
$
14.47
$
17.00
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per barrel of
throughput
4.12
4.20
4.24
4.26
Depreciation and amortization expense per
barrel of throughput
1.56
1.56
1.56
1.54
Adjusted Refining operating income per
barrel of throughput
$
7.64
$
7.39
$
8.67
$
11.20
U.S. West Coast region (c) (f)
Refining margin
$
374
$
516
$
678
$
954
Adjusted Refining operating income
$
103
$
269
$
174
$
428
Throughput volumes (thousand barrels per
day)
276
272
271
266
Refining margin per barrel of
throughput
$
14.86
$
20.81
$
13.76
$
19.84
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per barrel of
throughput
7.92
6.97
7.21
7.77
Depreciation and amortization expense per
barrel of throughput
2.86
3.03
3.02
3.18
Adjusted Refining operating income per
barrel of throughput
$
4.08
$
10.81
$
3.53
$
8.89
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
AVERAGE MARKET REFERENCE
PRICES AND DIFFERENTIALS
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Refining
Feedstocks (dollars per barrel)
Brent crude oil
$
84.96
$
77.98
$
83.40
$
80.09
Brent less West Texas Intermediate (WTI)
crude oil
4.22
4.22
4.49
5.16
Brent less WTI Houston crude oil
2.73
3.07
2.83
3.68
Brent less Dated Brent crude oil
0.09
(0.45
)
(0.65
)
0.24
Brent less Argus Sour Crude Index crude
oil
3.90
4.74
4.43
6.58
Brent less Maya crude oil
11.49
14.31
11.89
16.85
Brent less Western Canadian Select Houston
crude oil
11.14
9.23
11.36
13.30
WTI crude oil
80.74
73.76
78.91
74.94
Natural gas (dollars per million
British thermal units)
1.74
2.00
1.77
2.13
Renewable volume obligation (RVO)
(dollars per barrel) (g)
3.39
7.69
3.54
7.95
Product margins (RVO adjusted unless
otherwise noted)
(dollars per barrel)
U.S. Gulf Coast:
Conventional Blendstock of Oxygenate
Blending (CBOB) gasoline less Brent
7.95
12.98
8.04
11.51
Ultra-low-sulfur (ULS) diesel less
Brent
14.12
14.64
19.37
22.46
Propylene less Brent (not RVO
adjusted)
(45.72
)
(38.78
)
(46.49
)
(40.50
)
U.S. Mid-Continent:
CBOB gasoline less WTI
13.28
23.60
11.20
20.65
ULS diesel less WTI
17.17
25.16
20.05
29.63
North Atlantic:
CBOB gasoline less Brent
16.22
22.63
12.54
16.98
ULS diesel less Brent
16.27
17.36
22.24
25.33
U.S. West Coast:
California Reformulated Gasoline
Blendstock of Oxygenate Blending 87 gasoline less Brent
31.88
30.63
25.91
27.67
California Air Resources Board diesel less
Brent
18.12
14.80
22.36
23.32
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
AVERAGE MARKET REFERENCE
PRICES AND DIFFERENTIALS
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Renewable Diesel
New York Mercantile Exchange ULS diesel
(dollars per gallon)
$
2.51
$
2.44
$
2.61
$
2.69
Biodiesel Renewable Identification Number
(RIN) (dollars per RIN)
0.51
1.51
0.55
1.57
California Low-Carbon Fuel Standard carbon
credit (dollars per metric ton)
51.29
80.81
57.42
73.25
U.S. Gulf Coast (USGC) used cooking oil
(dollars per pound)
0.42
0.57
0.41
0.60
USGC distillers corn oil (dollars per
pound)
0.46
0.60
0.47
0.62
USGC fancy bleachable tallow (dollars per
pound)
0.43
0.57
0.42
0.59
Ethanol
Chicago Board of Trade corn (dollars per
bushel)
4.43
6.27
4.39
6.44
New York Harbor ethanol (dollars per
gallon)
1.90
2.56
1.77
2.43
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
OTHER FINANCIAL DATA
(millions of dollars)
(unaudited)
June 30,
December 31,
2024
2023
Balance sheet data
Current assets
$
27,115
$
26,221
Cash and cash equivalents included in
current assets
5,246
5,424
Inventories included in current assets
8,028
7,583
Current liabilities
18,318
16,802
Valero Energy Corporation stockholders’
equity
25,443
26,346
Total equity
28,250
28,524
Debt and finance lease obligations:
Debt –
Current portion of debt (excluding
variable interest entities (VIEs))
$
441
$
167
Debt, less current portion of debt
(excluding VIEs)
7,583
8,021
Total debt (excluding VIEs)
8,024
8,188
Current portion of debt attributable to
VIEs
329
1,030
Debt, less current portion of debt
attributable to VIEs
—
—
Total debt attributable to VIEs
329
1,030
Total debt
8,353
9,218
Finance lease obligations –
Current portion of finance lease
obligations (excluding VIEs)
199
183
Finance lease obligations, less current
portion (excluding VIEs)
1,507
1,428
Total finance lease obligations (excluding
VIEs)
1,706
1,611
Current portion of finance lease
obligations attributable to VIEs
26
26
Finance lease obligations, less current
portion attributable to VIEs
656
669
Total finance lease obligations
attributable to VIEs
682
695
Total finance lease obligations
2,388
2,306
Total debt and finance lease
obligations
$
10,741
$
11,524
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Reconciliation of net cash provided by
operating activities to adjusted net cash provided by
operating activities (c)
Net cash provided by operating
activities
$
2,472
$
1,512
$
4,318
$
4,682
Exclude:
Changes in current assets and current
liabilities
789
(1,194
)
629
(1,728
)
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
83
242
205
365
Adjusted net cash provided by operating
activities
$
1,600
$
2,464
$
3,484
$
6,045
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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Reconciliation of capital investments
to capital investments attributable to Valero (c)
Capital expenditures (excluding VIEs)
$
119
$
136
$
247
$
311
Capital expenditures of VIEs:
DGD
73
32
142
122
Other VIEs
2
2
5
2
Deferred turnaround and catalyst cost
expenditures (excluding VIEs)
184
273
636
508
Deferred turnaround and catalyst cost
expenditures of DGD
42
15
51
39
Capital investments
420
458
1,081
982
Adjustments:
DGD’s capital investments attributable to
the other joint venture member
(58
)
(23
)
(97
)
(80
)
Capital expenditures of other VIEs
(2
)
(2
)
(5
)
(2
)
Capital investments attributable to
Valero
$
360
$
433
$
979
$
900
Dividends per common share
$
1.07
$
1.02
$
2.14
$
2.04
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
NOTES TO EARNINGS RELEASE
TABLES
(a)
In March 2021, we announced our participation in a then-proposed
large-scale carbon capture and sequestration pipeline system with
Navigator Energy Services (Navigator). In October 2023, Navigator
announced that it decided to cancel this project. Under the terms
of the agreements associated with the project, we had some rights
from and obligations to Navigator, including a portion of the
aggregate project costs. As a result, we recognized a charge of $29
million in the six months ended June 30, 2024 related to our
obligation to Navigator.
(b)
“Other income, net” includes a net gain of $11 million in the
six months ended June 30, 2023 related to the early retirement of
$199 million aggregate principal amount of various series of our
senior notes.
(c)
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 U.S. federal and state statutory rate of 22.5 percent. 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.
– Project liability adjustment – The
project liability adjustment related to the cancellation of
Navigator’s project (see note (a)) is not indicative of our ongoing
operations.
– 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 (b)) are not associated with the ongoing costs of our
borrowing and financing activities.
- 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 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, 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 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 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
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
DGD operating cash flow data
Net cash provided by operating
activities
$
451
$
586
$
445
$
515
Exclude: Changes in current assets and
current
liabilities
285
102
35
(216
)
Adjusted net cash provided by operating
activities
166
484
410
731
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
$
83
$
242
$
205
$
365
- 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.
(d)
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.
(e)
Primarily includes petrochemicals, gas oils, No. 6 fuel oil,
petroleum coke, sulfur, and asphalt.
(f)
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.
(g)
The RVO cost represents the average market cost on a per barrel
basis to comply with the Renewable Fuel Standard 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 U.S. Environmental Protection
Agency, 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/20240724847754/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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