Valero Energy Reports 2023 Full Year Results
- 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
SAN ANTONIO–(BUSINESS WIRE)–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 |
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|
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 |
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|
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 |
|
|
Contacts
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
