Valero Energy Reports 2021 Fourth Quarter and Full Year Results
- Reported net income attributable to Valero stockholders of $1,009 million, or $2.46 per share, for the fourth quarter and $930 million, or $2.27 per share, for the year.
- Reported adjusted net income attributable to Valero stockholders of $1,012 million, or $2.47 per share, for the fourth quarter and $1,152 million, or $2.81 per share, for the year.
- Returned $401 million in cash to stockholders in the fourth quarter and $1.6 billion in the year through dividends.
- Reduced Valero’s long-term debt by $693 million in the fourth quarter and by $1.3 billion in 2021.
- Startup of the Diamond Green Diesel project at Port Arthur (DGD 3) is now expected to be in the first quarter of 2023.
SAN ANTONIO–(BUSINESS WIRE)–Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income attributable to Valero stockholders of $1,009 million, or $2.46 per share, for the fourth quarter of 2021, compared to a net loss of $359 million, or $0.88 per share, for the fourth quarter of 2020. Excluding the adjustments shown in the accompanying earnings release tables, fourth quarter 2021 adjusted net income attributable to Valero stockholders was $1,012 million, or $2.47 per share, compared to an adjusted net loss of $429 million, or $1.06 per share, for the fourth quarter of 2020.
For 2021, net income attributable to Valero stockholders was $930 million, or $2.27 per share, compared to a net loss of $1,421 million, or $3.50 per share, in 2020. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders was $1,152 million, or $2.81 per share, in 2021, compared to an adjusted net loss of $1,265 million, or $3.12 per share, in 2020.
“We saw continued improvement in our business during the fourth quarter with margins supported by strong product demand,” said Joe Gorder, Valero Chairman and Chief Executive Officer. “Looking ahead, we remain optimistic on refining margins with low global light product inventories, strong demand, global supply tightness due to significant refining capacity rationalization, and wider sour crude oil differentials.”
Refining
The refining segment reported $1.3 billion of operating income for the fourth quarter of 2021, compared to a $377 million operating loss for the fourth quarter of 2020. Fourth quarter 2021 adjusted operating income was $1.1 billion, compared to an adjusted operating loss of $476 million for the fourth quarter of 2020. Refinery throughput volumes averaged 3.0 million barrels per day in the fourth quarter of 2021, which was 483 thousand barrels per day higher than the fourth quarter of 2020. 2021 was Valero’s best year ever for Employee and Process Safety.
“The Employee and Process safety milestones set in 2021 are a testament to our long-standing commitment to safe, reliable and environmentally responsible operations,” said Gorder. “In fact, we have set records for Process Safety for three consecutive years.”
Renewable Diesel
The renewable diesel segment, which consists of the Diamond Green Diesel (DGD) joint venture, reported $150 million of operating income for the fourth quarter of 2021, compared to $127 million for the fourth quarter of 2020. Adjusted renewable diesel operating income was $152 million for the fourth quarter of 2021. Renewable diesel sales volumes averaged 1.6 million gallons per day in the fourth quarter of 2021, which was 974 thousand gallons per day higher than the fourth quarter of 2020. The higher operating income and sales volumes in the fourth quarter of 2021 were primarily attributable to the startup of the DGD expansion project (DGD 2) in the fourth quarter.
Ethanol
The ethanol segment reported $474 million of operating income for the fourth quarter of 2021, compared to $15 million for the fourth quarter of 2020. Fourth quarter 2021 adjusted operating income was $475 million, compared to $17 million for the fourth quarter of 2020. Ethanol production volumes averaged 4.4 million gallons per day in the fourth quarter of 2021, which was 278 thousand gallons per day higher than the fourth quarter of 2020. Higher operating income in the fourth quarter of 2021 was primarily attributed to higher ethanol product prices.
Corporate and Other
General and administrative expenses were $286 million in the fourth quarter of 2021, compared to $224 million in the fourth quarter of 2020. General and administrative expenses were $865 million for the year. The effective tax rate for 2021 was 17 percent, which reflects the benefit from the portion of DGD’s net income that is not taxable to Valero.
Investing and Financing Activities
Net cash provided by operating activities was $2.5 billion in the fourth quarter of 2021. Included in this amount was a $595 million favorable impact from working capital and $82 million associated with the other joint venture member’s share of DGD’s net cash provided by operating activities, excluding changes in DGD’s working capital. Excluding these items, adjusted net cash provided by operating activities was $1.8 billion in the fourth quarter of 2021.
Net cash provided by operating activities in 2021 was $5.9 billion. Included in this amount was a $2.2 billion favorable impact from working capital and $381 million associated with the other joint venture member’s share of DGD’s net cash provided by operating activities, excluding changes in DGD’s working capital. Excluding these items, adjusted net cash provided by operating activities in 2021 was $3.3 billion.
Capital investments totaled $752 million in the fourth quarter of 2021, of which $353 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 50 percent share of DGD and those related to other variable interest entities, capital investments attributable to Valero were $545 million in the fourth quarter of 2021 and $1.8 billion in 2021.
Valero returned $401 million to stockholders through dividends in the fourth quarter of 2021. In 2021, Valero returned $1.6 billion to stockholders, or 50 percent of adjusted net cash provided by operating activities.
Valero continues to target a long-term total payout ratio between 40 and 50 percent of adjusted net cash provided by operating activities. Valero defines total payout ratio as the sum of dividends and 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 ownership interest in DGD.
In the fourth quarter, Valero completed a series of debt reduction and refinancing transactions that together reduced Valero’s long-term debt by $693 million. These debt reduction and refinancing transactions, combined with the redemption of the $575 million Floating Rate Senior Notes due 2023 in the third quarter, collectively reduced Valero’s long-term debt by $1.3 billion in 2021.
Liquidity and Financial Position
Valero ended 2021 with $13.9 billion of total debt and finance lease obligations and $4.1 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 33 percent as of December 31, 2021.
Strategic Update
The DGD 2 expansion project at Valero’s St. Charles refinery commenced operations in the fourth quarter, on-budget and ahead of schedule. DGD 2’s annual renewable diesel production capacity has been increased as a result of process improvement and optimization and now stands at 410 million gallons per year, compared to the 400 million gallons per year design capacity. Total DGD renewable diesel production capacity is now 700 million gallons per year.
The DGD project at Valero’s Port Arthur refinery (DGD 3), which is expected to have a renewable diesel production capacity of 470 million gallons per year, is progressing ahead of schedule and is now expected to commence operations in the first quarter of 2023, increasing DGD’s total annual production capacity to approximately 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha.
BlackRock and Navigator’s large-scale carbon sequestration project is also progressing on schedule and is still expected to begin startup activities in late 2024. Valero is expected to be the anchor shipper with eight of Valero’s ethanol plants connected to this system, producing a lower carbon intensity ethanol product to be marketed in low-carbon fuel markets that is expected to result in a higher product margin.
Refinery optimization projects that are expected to reduce cost and improve margin capture are progressing on schedule. The Port Arthur Coker project, which is expected to increase the refinery’s utilization rate and improve turnaround efficiency, is expected to be completed in the first half of 2023.
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
We are an international manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and we sell our products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland, and Latin America. We own 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 (BPD). We are a joint venture member in Diamond Green Diesel Holdings LLC (DGD), which owns a renewable diesel plant in Norco, Louisiana with a production capacity of 700 million gallons per year, and we own 12 ethanol plants located in the Mid-Continent region of the U.S. with a combined production capacity of approximately 1.6 billion gallons per year. We manage our operations through our Refining, Renewable Diesel, and Ethanol segments. Please visit www.investorvalero.com for more information.
Valero Contacts
Investors:
Homer Bhullar, Vice President – Investor Relations and Finance, 210-345-1982
Eric Herbort, Senior Manager – Investor Relations, 210-345-3331
Gautam Srivastava, Senior Manager – 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 tables that state the company’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 tables include those relating to our greenhouse gas emissions targets, expected timing of completion and performance of projects, future market and industry conditions, future operating and financial performance, and management of future risks. 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 the company’s control, such as legislative or political changes or developments, market dynamics, cyberattacks, weather events, and other matters affecting our operations or the demand for our products. These factors also include, but are not limited to, the uncertainties that remain with respect to the COVID-19 pandemic, variants of the virus, governmental and societal responses thereto, including requirements and mandates with respect to vaccines, vaccine distribution and administration levels, and the adverse effects the foregoing may have on our business or economic conditions generally. 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 (loss) attributable to Valero stockholders, adjusted earnings (loss) per common share – assuming dilution, refining margin, renewable diesel margin, ethanol margin, adjusted refining operating income (loss), adjusted renewable diesel operating income, adjusted ethanol operating income (loss), 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 U.S. GAAP measures. Note (g) to the earnings release tables provides reasons for the use of these non-GAAP financial measures.
|
VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES OTHER FINANCIAL DATA (millions of dollars) (unaudited) |
|||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
Statement of income data |
|
|
|
|
|
|
|
||||||||
|
Revenues |
$ |
35,903 |
|
|
$ |
16,604 |
|
|
$ |
113,977 |
|
|
$ |
64,912 |
|
|
Cost of sales: |
|
|
|
|
|
|
|
||||||||
|
Cost of materials and other (a) (b) (c) |
|
31,849 |
|
|
|
15,101 |
|
|
|
102,714 |
|
|
|
58,933 |
|
|
Lower of cost or market (LCM) inventory valuation adjustment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(19 |
) |
|
Operating expenses (excluding depreciation and |
|
1,558 |
|
|
|
1,167 |
|
|
|
5,776 |
|
|
|
4,435 |
|
|
Depreciation and amortization expense |
|
586 |
|
|
|
566 |
|
|
|
2,358 |
|
|
|
2,303 |
|
|
Total cost of sales |
|
33,993 |
|
|
|
16,834 |
|
|
|
110,848 |
|
|
|
65,652 |
|
|
Other operating expenses |
|
18 |
|
|
|
5 |
|
|
|
87 |
|
|
|
35 |
|
|
General and administrative expenses (excluding |
|
286 |
|
|
|
224 |
|
|
|
865 |
|
|
|
756 |
|
|
Depreciation and amortization expense |
|
12 |
|
|
|
11 |
|
|
|
47 |
|
|
|
48 |
|
|
Operating income (loss) |
|
1,594 |
|
|
|
(470 |
) |
|
|
2,130 |
|
|
|
(1,579 |
) |
|
Other income (loss), net (d) |
|
(163 |
) |
|
|
25 |
|
|
|
16 |
|
|
|
132 |
|
|
Interest and debt expense, net of capitalized interest |
|
(152 |
) |
|
|
(153 |
) |
|
|
(603 |
) |
|
|
(563 |
) |
|
Income (loss) before income tax expense (benefit) |
|
1,279 |
|
|
|
(598 |
) |
|
|
1,543 |
|
|
|
(2,010 |
) |
|
Income tax expense (benefit) (e) |
|
169 |
|
|
|
(289 |
) |
|
|
255 |
|
|
|
(903 |
) |
|
Net income (loss) |
|
1,110 |
|
|
|
(309 |
) |
|
|
1,288 |
|
|
|
(1,107 |
) |
|
Less: Net income attributable to noncontrolling interests |
|
101 |
|
|
|
50 |
|
|
|
358 |
|
|
|
314 |
|
|
Net income (loss) attributable to Valero Energy Corporation stockholders |
$ |
1,009 |
|
|
$ |
(359 |
) |
|
$ |
930 |
|
|
$ |
(1,421 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Earnings (loss) per common share |
$ |
2.47 |
|
|
$ |
(0.88 |
) |
|
$ |
2.27 |
|
|
$ |
(3.50 |
) |
|
Weighted-average common shares outstanding (in millions) |
|
408 |
|
|
|
407 |
|
|
|
407 |
|
|
|
407 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Earnings (loss) per common share – assuming dilution |
$ |
2.46 |
|
|
$ |
(0.88 |
) |
|
$ |
2.27 |
|
|
$ |
(3.50 |
) |
|
Weighted-average common shares outstanding – |
|
408 |
|
|
|
407 |
|
|
|
407 |
|
|
|
407 |
|
|
See Notes to Earnings Release Tables. |
|||||||||||||||
|
VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES FINANCIAL HIGHLIGHTS BY SEGMENT (millions of dollars) (unaudited) |
|||||||||||||||||
|
|
Refining |
|
Renewable |
|
Ethanol |
|
Corporate |
|
Total |
||||||||
|
Three months ended December 31, 2021 |
|
|
|
|
|
|
|
|
|
||||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
||||||||
|
Revenues from external customers |
$ |
33,521 |
|
|
$ |
684 |
|
$ |
1,698 |
|
$ |
— |
|
|
$ |
35,903 |
|
|
Intersegment revenues |
|
7 |
|
|
|
253 |
|
|
174 |
|
|
(434 |
) |
|
|
— |
|
|
Total revenues |
|
33,528 |
|
|
|
937 |
|
|
1,872 |
|
|
(434 |
) |
|
|
35,903 |
|
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
||||||||
|
Cost of materials and other (c) |
|
30,342 |
|
|
|
714 |
|
|
1,224 |
|
|
(431 |
) |
|
|
31,849 |
|
|
Operating expenses (excluding depreciation and |
|
1,358 |
|
|
|
48 |
|
|
153 |
|
|
(1 |
) |
|
|
1,558 |
|
|
Depreciation and amortization expense |
|
543 |
|
|
|
23 |
|
|
20 |
|
|
— |
|
|
|
586 |
|
|
Total cost of sales |
|
32,243 |
|
|
|
785 |
|
|
1,397 |
|
|
(432 |
) |
|
|
33,993 |
|
|
Other operating expenses |
|
15 |
|
|
|
2 |
|
|
1 |
|
|
— |
|
|
|
18 |
|
|
General and administrative expenses (excluding |
|
— |
|
|
|
— |
|
|
— |
|
|
286 |
|
|
|
286 |
|
|
Depreciation and amortization expense |
|
— |
|
|
|
— |
|
|
— |
|
|
12 |
|
|
|
12 |
|
|
Operating income by segment |
$ |
1,270 |
|
|
$ |
150 |
|
$ |
474 |
|
$ |
(300 |
) |
|
$ |
1,594 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three months ended December 31, 2020 |
|
|
|
|
|
|
|
|
|
||||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
||||||||
|
Revenues from external customers |
$ |
15,513 |
|
|
$ |
205 |
|
$ |
886 |
|
$ |
— |
|
|
$ |
16,604 |
|
|
Intersegment revenues |
|
2 |
|
|
|
62 |
|
|
66 |
|
|
(130 |
) |
|
|
— |
|
|
Total revenues |
|
15,515 |
|
|
|
267 |
|
|
952 |
|
|
(130 |
) |
|
|
16,604 |
|
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
||||||||
|
Cost of materials and other (b) |
|
14,324 |
|
|
|
107 |
|
|
800 |
|
|
(130 |
) |
|
|
15,101 |
|
|
Operating expenses (excluding depreciation and |
|
1,032 |
|
|
|
22 |
|
|
113 |
|
|
— |
|
|
|
1,167 |
|
|
Depreciation and amortization expense |
|
531 |
|
|
|
11 |
|
|
24 |
|
|
— |
|
|
|
566 |
|
|
Total cost of sales |
|
15,887 |
|
|
|
140 |
|
|
937 |
|
|
(130 |
) |
|
|
16,834 |
|
|
Other operating expenses |
|
5 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
5 |
|
|
General and administrative expenses (excluding |
|
— |
|
|
|
— |
|
|
— |
|
|
224 |
|
|
|
224 |
|
|
Depreciation and amortization expense |
|
— |
|
|
|
— |
|
|
— |
|
|
11 |
|
|
|
11 |
|
|
Operating income (loss) by segment |
$ |
(377 |
) |
|
$ |
127 |
|
$ |
15 |
|
$ |
(235 |
) |
|
$ |
(470 |
) |
|
See Operating Highlights by Segment. |
|||||||||||||||||
|
VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES FINANCIAL HIGHLIGHTS BY SEGMENT (millions of dollars) (unaudited) |
||||||||||||||||||
|
|
Refining |
|
Renewable |
|
Ethanol |
|
Corporate |
|
Total |
|||||||||
|
Year ended December 31, 2021 |
|
|
|
|
|
|
|
|
|
|||||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|||||||||
|
Revenues from external customers |
$ |
106,947 |
|
|
$ |
1,874 |
|
$ |
5,156 |
|
|
$ |
— |
|
|
$ |
113,977 |
|
|
Intersegment revenues |
|
14 |
|
|
|
468 |
|
|
433 |
|
|
|
(915 |
) |
|
|
— |
|
|
Total revenues |
|
106,961 |
|
|
|
2,342 |
|
|
5,589 |
|
|
|
(915 |
) |
|
|
113,977 |
|
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
|||||||||
|
Cost of materials and other (a) (c) |
|
97,759 |
|
|
|
1,438 |
|
|
4,428 |
|
|
|
(911 |
) |
|
|
102,714 |
|
|
Operating expenses (excluding depreciation and |
|
5,088 |
|
|
|
134 |
|
|
556 |
|
|
|
(2 |
) |
|
|
5,776 |
|
|
Depreciation and amortization expense |
|
2,169 |
|
|
|
58 |
|
|
131 |
|
|
|
— |
|
|
|
2,358 |
|
|
Total cost of sales |
|
105,016 |
|
|
|
1,630 |
|
|
5,115 |
|
|
|
(913 |
) |
|
|
110,848 |
|
|
Other operating expenses |
|
83 |
|
|
|
3 |
|
|
1 |
|
|
|
— |
|
|
|
87 |
|
|
General and administrative expenses (excluding |
|
— |
|
|
|
— |
|
|
— |
|
|
|
865 |
|
|
|
865 |
|
|
Depreciation and amortization expense |
|
— |
|
|
|
— |
|
|
— |
|
|
|
47 |
|
|
|
47 |
|
|
Operating income by segment |
$ |
1,862 |
|
|
$ |
709 |
|
$ |
473 |
|
|
$ |
(914 |
) |
|
$ |
2,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Year ended December 31, 2020 |
|
|
|
|
|
|
|
|
|
|||||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|||||||||
|
Revenues from external customers |
$ |
60,840 |
|
|
$ |
1,055 |
|
$ |
3,017 |
|
|
$ |
— |
|
|
$ |
64,912 |
|
|
Intersegment revenues |
|
8 |
|
|
|
212 |
|
|
226 |
|
|
|
(446 |
) |
|
|
— |
|
|
Total revenues |
|
60,848 |
|
|
|
1,267 |
|
|
3,243 |
|
|
|
(446 |
) |
|
|
64,912 |
|
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
|||||||||
|
Cost of materials and other (b) |
|
56,093 |
|
|
|
500 |
|
|
2,784 |
|
|
|
(444 |
) |
|
|
58,933 |
|
|
LCM inventory valuation adjustment |
|
(19 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(19 |
) |
|
Operating expenses (excluding depreciation and |
|
3,944 |
|
|
|
85 |
|
|
406 |
|
|
|
— |
|
|
|
4,435 |
|
|
Depreciation and amortization expense |
|
2,138 |
|
|
|
44 |
|
|
121 |
|
|
|
— |
|
|
|
2,303 |
|
|
Total cost of sales |
|
62,156 |
|
|
|
629 |
|
|
3,311 |
|
|
|
(444 |
) |
|
|
65,652 |
|
|
Other operating expenses |
|
34 |
|
|
|
— |
|
|
1 |
|
|
|
— |
|
|
|
35 |
|
|
General and administrative expenses (excluding |
|
— |
|
|
|
— |
|
|
— |
|
|
|
756 |
|
|
|
756 |
|
|
Depreciation and amortization expense |
|
— |
|
|
|
— |
|
|
— |
|
|
|
48 |
|
|
|
48 |
|
|
Operating income (loss) by segment |
$ |
(1,342 |
) |
|
$ |
638 |
|
$ |
(69 |
) |
|
$ |
(806 |
) |
|
$ |
(1,579 |
) |
|
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 (g) (millions of dollars, except per share amounts) (unaudited) |
|||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
Reconciliation of net income (loss) attributable to Valero |
|
|
|
|
|
|
|
||||||||
|
Net income (loss) attributable to Valero Energy Corporation |
$ |
1,009 |
|
|
$ |
(359 |
) |
|
$ |
930 |
|
|
$ |
(1,421 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
|
Modification of renewable volume obligation (RVO) (c) |
|
(190 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Income tax expense related to modification of RVO |
|
43 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Modification of RVO, net of taxes |
|
(147 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Changes in estimated useful lives of two ethanol plants |
|
— |
|
|
|
— |
|
|
|
48 |
|
|
|
30 |
|
|
Income tax benefit related to the changes in estimated |
|
— |
|
|
|
— |
|
|
|
(11 |
) |
|
|
(6 |
) |
|
Changes in estimated useful lives of two ethanol plants, |
|
— |
|
|
|
— |
|
|
|
37 |
|
|
|
24 |
|
|
Gain on sale of MVP interest (d) |
|
— |
|
|
|
— |
|
|
|
(62 |
) |
|
|
— |
|
|
Income tax expense related to gain on sale of MVP interest |
|
— |
|
|
|
— |
|
|
|
14 |
|
|
|
— |
|
|
Gain on sale of MVP interest, net of taxes |
|
— |
|
|
|
— |
|
|
|
(48 |
) |
|
|
— |
|
|
Diamond Pipeline asset impairment (d) |
|
— |
|
|
|
— |
|
|
|
24 |
|
|
|
— |
|
|
Income tax benefit related to Diamond Pipeline asset |
|
— |
|
|
|
— |
|
|
|
(5 |
) |
|
|
— |
|
|
Diamond Pipeline asset impairment, net of taxes |
|
— |
|
|
|
— |
|
|
|
19 |
|
|
|
— |
|
|
Loss on early redemption and retirement of debt (d) |
|
193 |
|
|
|
— |
|
|
|
193 |
|
|
|
— |
|
|
Income tax benefit related to loss on early redemption and |
|
(43 |
) |
|
|
— |
|
|
|
(43 |
) |
|
|
— |
|
|
Loss on early redemption and retirement of debt, net of taxes |
|
150 |
|
|
|
— |
|
|
|
150 |
|
|
|
— |
|
|
Income tax expense related to changes in statutory tax rates (e) |
|
— |
|
|
|
— |
|
|
|
64 |
|
|
|
— |
|
|
Last-in, first-out (LIFO) liquidation adjustment (b) |
|
— |
|
|
|
(102 |
) |
|
|
— |
|
|
|
224 |
|
|
Income tax expense (benefit) related to the LIFO liquidation |
|
— |
|
|
|
32 |
|
|
|
— |
|
|
|
(76 |
) |
|
LIFO liquidation adjustment, net of taxes |
|
— |
|
|
|
(70 |
) |
|
|
— |
|
|
|
148 |
|
|
LCM inventory valuation adjustment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(19 |
) |
|
Income tax expense related to the LCM inventory |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
LCM inventory valuation adjustment, net of taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(16 |
) |
|
Total adjustments |
|
3 |
|
|
|
(70 |
) |
|
|
222 |
|
|
|
156 |
|
|
Adjusted net income (loss) attributable to |
$ |
1,012 |
|
|
$ |
(429 |
) |
|
$ |
1,152 |
|
|
$ |
(1,265 |
) |
|
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 (g) (millions of dollars, except per share amounts) (unaudited) |
|||||||||||||||
|
Three Months Ended |
Year Ended |
||||||||||||||
|
2021 |
2020 |
2021 |
2020 |
||||||||||||
|
Reconciliation of earnings (loss) per common share – |
|
|
|
|
|
|
|
||||||||
|
Earnings (loss) per common share – assuming dilution (f) |
$ |
2.46 |
|
|
$ |
(0.88 |
) |
|
$ |
2.27 |
|
|
$ |
(3.50 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
|
Modification of RVO (c) |
|
(0.36 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Changes in estimated useful lives of two ethanol plants |
|
— |
|
|
|
— |
|
|
|
0.09 |
|
|
|
0.06 |
|
|
Gain on sale of MVP interest (d) |
|
— |
|
|
|
— |
|
|
|
(0.12 |
) |
|
|
— |
|
|
Diamond Pipeline asset impairment (d) |
|
— |
|
|
|
— |
|
|
|
0.04 |
|
|
|
— |
|
|
Loss on early redemption and retirement of debt (d) |
|
0.37 |
|
|
|
— |
|
|
|
0.37 |
|
|
|
— |
|
|
Income tax expense related to changes in statutory tax rates (e) |
|
— |
|
|
|
— |
|
|
|
0.16 |
|
|
|
— |
|
|
LIFO liquidation adjustment (b) |
|
— |
|
|
|
(0.18 |
) |
|
|
— |
|
|
|
0.36 |
|
|
LCM inventory valuation adjustment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.04 |
) |
|
Total adjustments |
|
0.01 |
|
|
|
(0.18 |
) |
|
|
0.54 |
|
|
|
0.38 |
|
|
Adjusted earnings (loss) per common share – |
$ |
2.47 |
|
|
$ |
(1.06 |
) |
|
$ |
2.81 |
|
|
$ |
(3.12 |
) |
|
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 (g) (millions of dollars) (unaudited) |
||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
|||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||
|
Reconciliation of operating income (loss) by segment to |
|
|
|
|
|
|
|
|||||||
|
Refining segment |
|
|
|
|
|
|
|
|||||||
|
Refining operating income (loss) |
$ |
1,270 |
|
|
$ |
(377 |
) |
|
$ |
1,862 |
|
$ |
(1,342 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|||||||
|
Modification of RVO (c) |
|
(190 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
|
LIFO liquidation adjustment (b) |
|
— |
|
|
|
(104 |
) |
|
|
— |
|
|
222 |
|
|
LCM inventory valuation adjustment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
(19 |
) |
|
Operating expenses (excluding depreciation and |
|
1,358 |
|
|
|
1,032 |
|
|
|
5,088 |
|
|
3,944 |
|
|
Depreciation and amortization expense |
|
543 |
|
|
|
531 |
|
|
|
2,169 |
|
|
2,138 |
|
|
Other operating expenses |
|
15 |
|
|
|
5 |
|
|
|
83 |
|
|
34 |
|
|
Refining margin |
$ |
2,996 |
|
|
$ |
1,087 |
|
|
$ |
9,202 |
|
$ |
4,977 |
|
|
|
|
|
|
|
|
|
|
|||||||
|
Refining operating income (loss) |
$ |
1,270 |
|
|
$ |
(377 |
) |
|
$ |
1,862 |
|
$ |
(1,342 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|||||||
|
Modification of RVO (c) |
|
(190 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
|
LIFO liquidation adjustment (b) |
|
— |
|
|
|
(104 |
) |
|
|
— |
|
|
222 |
|
|
LCM inventory valuation adjustment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
(19 |
) |
|
Other operating expenses |
|
15 |
|
|
|
5 |
|
|
|
83 |
|
|
34 |
|
|
Adjusted refining operating income (loss) |
$ |
1,095 |
|
|
$ |
(476 |
) |
|
$ |
1,945 |
|
$ |
(1,105 |
) |
|
|
|
|
|
|
|
|
|
|||||||
|
Renewable diesel segment |
|
|
|
|
|
|
|
|||||||
|
Renewable diesel operating income |
$ |
150 |
|
|
$ |
127 |
|
|
$ |
709 |
|
$ |
638 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|||||||
|
Operating expenses (excluding depreciation and |
|
48 |
|
|
|
22 |
|
|
|
134 |
|
|
85 |
|
|
Depreciation and amortization expense |
|
23 |
|
|
|
11 |
|
|
|
58 |
|
|
44 |
|
|
Other operating expenses |
|
2 |
|
|
|
— |
|
|
|
3 |
|
|
— |
|
|
Renewable diesel margin |
$ |
223 |
|
|
$ |
160 |
|
|
$ |
904 |
|
$ |
767 |
|
|
|
|
|
|
|
|
|
|
|||||||
|
Renewable diesel operating income |
$ |
150 |
|
|
$ |
127 |
|
|
$ |
709 |
|
$ |
638 |
|
|
Adjustment: Other operating expenses |
|
2 |
|
|
|
— |
|
|
|
3 |
|
|
— |
|
|
Adjusted renewable diesel operating income |
$ |
152 |
|
|
$ |
127 |
|
|
$ |
712 |
|
$ |
638 |
|
|
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 (g) (millions of dollars) (unaudited) |
||||||||||||||
|
Three Months Ended |
Year Ended |
|||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
Reconciliation of operating income (loss) by segment to |
|
|
|
|
|
|
|
|||||||
|
Ethanol segment |
|
|
|
|
|
|
|
|||||||
|
Ethanol operating income (loss) |
$ |
474 |
|
|
$ |
15 |
|
|
$ |
473 |
|
$ |
(69 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|||||||
|
LIFO liquidation adjustment (b) |
|
— |
|
|
|
2 |
|
|
|
— |
|
|
2 |
|
|
Operating expenses (excluding depreciation and amortization expense reflected below) (a) |
|
153 |
|
|
|
113 |
|
|
|
556 |
|
|
406 |
|
|
Depreciation and amortization expense |
|
20 |
|
|
|
24 |
|
|
|
131 |
|
|
121 |
|
|
Other operating expenses |
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
1 |
|
|
Ethanol margin |
$ |
648 |
|
|
$ |
154 |
|
|
$ |
1,161 |
|
$ |
461 |
|
|
|
|
|
|
|
|
|
|
|||||||
|
Ethanol operating income (loss) |
$ |
474 |
|
|
$ |
15 |
|
|
$ |
473 |
|
$ |
(69 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|||||||
|
Changes in estimated useful lives of two ethanol plants |
|
— |
|
|
|
— |
|
|
|
48 |
|
|
30 |
|
|
LIFO liquidation adjustment (b) |
|
— |
|
|
|
2 |
|
|
|
— |
|
|
2 |
|
|
Other operating expenses |
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
1 |
|
|
Adjusted ethanol operating income (loss) |
$ |
475 |
|
|
$ |
17 |
|
|
$ |
522 |
|
$ |
(36 |
) |
|
See Notes to Earnings Release Tables. |
||||||||||||||
Contacts
Valero Contacts
Investors:
Homer Bhullar, Vice President – Investor Relations and Finance, 210-345-1982
Eric Herbort, Senior Manager – Investor Relations, 210-345-3331
Gautam Srivastava, Senior Manager – Investor Relations, 210-345-3992
Media:
Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002
