27 Jul Valero Energy Reports Second Quarter 2023 Results
- Reported net income attributable to Valero stockholders of $1.9 billion, or $5.40 per share
- Returned over $1.3 billion to stockholders through dividends and stock buybacks
- Declared a regular quarterly cash dividend on common stock of $1.02 per share
SAN ANTONIO–(BUSINESS WIRE)–Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income attributable to Valero stockholders of $1.9 billion, or $5.40 per share, for the second quarter of 2023, compared to $4.7 billion, or $11.57 per share, for the second quarter of 2022. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders was $4.6 billion, or $11.36 per share, for the second quarter of 2022.
Refining
The Refining segment reported operating income of $2.4 billion for the second quarter of 2023, compared to $6.2 billion for the second quarter of 2022. Adjusted operating income was $6.1 billion for the second quarter of 2022. Refining throughput volumes averaged 3.0 million barrels per day in the second quarter of 2023.
“We are pleased to report solid financial results in the second quarter, underpinned by strong execution across all of our business segments,” said Lane Riggs, Valero’s Chief Executive Officer and President. “Our refineries ran well with throughput capacity utilization at 94 percent and our U.S. wholesale system set a sales record of over 1 million barrels per day in May and June.”
Renewable Diesel
The Renewable Diesel segment, which consists of the Diamond Green Diesel joint venture (DGD), reported $440 million of operating income for the second quarter of 2023, compared to $152 million for the second quarter of 2022. Segment sales volumes averaged 4.4 million gallons per day in the second quarter of 2023, which was 2.2 million gallons per day higher than the second quarter of 2022. The higher sales volumes were due to the impact of additional volumes from the startup of the DGD Port Arthur plant in the fourth quarter of 2022.
Ethanol
The Ethanol segment reported $127 million of operating income for the second quarter of 2023, compared to $101 million for the second quarter of 2022. Adjusted operating income for the second quarter of 2022 was $79 million. Ethanol production volumes averaged 4.4 million gallons per day in the second quarter of 2023, which was 582 thousand gallons per day higher than the second quarter of 2022.
Corporate and Other
General and administrative expenses were $209 million in the second quarter of 2023, compared to $233 million in the second quarter of 2022. The effective tax rate for the second quarter of 2023 was 22 percent.
Investing and Financing Activities
Net cash provided by operating activities was $1.5 billion in the second quarter of 2023. Included in this amount was a $1.2 billion unfavorable change in working capital and $242 million of adjusted net cash provided by operating activities associated with the other joint venture member’s share of DGD, excluding changes in DGD’s working capital. Excluding these items, adjusted net cash provided by operating activities was $2.5 billion in the second quarter of 2023.
Capital investments totaled $458 million in the second quarter of 2023, of which $382 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 $433 million.
Valero returned over $1.3 billion to stockholders in the second quarter of 2023, of which $367 million was paid as dividends and $951 million was for the purchase of approximately 8.4 million shares of common stock, resulting in a payout ratio of 53 percent of adjusted net cash provided by operating activities.
Valero continues to target an annual payout ratio between 40 and 50 percent of adjusted net cash provided by operating activities. 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 July 20, Valero announced a quarterly cash dividend on common stock of $1.02 per share, payable on September 5, 2023 to holders of record at the close of business on August 3, 2023.
Liquidity and Financial Position
Valero ended the second quarter of 2023 with $9.0 billion of total debt, $2.3 billion of finance lease obligations and $5.1 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 18 percent as of June 30, 2023.
Strategic Update
The Port Arthur Coker project, which successfully commenced operations in April, is operating well and at full capacity. The new coker has increased the refinery’s throughput capacity and enhanced its ability to process incremental volumes of heavy crudes and residual feedstocks, while also improving turnaround efficiency.
The Sustainable Aviation Fuel (SAF) project at the DGD Port Arthur plant is expected to be completed in 2025 and is estimated to cost $315 million, with half of that attributable to Valero. The project is expected to give the plant the ability to upgrade approximately 50 percent of its current 470 million gallon annual renewable diesel production capacity to SAF, which is expected to make DGD one of the largest manufacturers of SAF in the world.
“We remain committed to the core strategy that has been in place for nearly a decade,” said Riggs. “Our focus on operational excellence, capital discipline and honoring our commitment to shareholder returns has served us well and will continue to anchor our strategy going forward.”
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.
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, the Russia-Ukraine conflict, 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 (e) 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, except per share amounts) (unaudited) |
|||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Statement of income data |
|
|
|
|
|
|
|
||||||||
|
Revenues |
$ |
34,509 |
|
|
$ |
51,641 |
|
|
$ |
70,948 |
|
|
$ |
90,183 |
|
|
Cost of sales: |
|
|
|
|
|
|
|
||||||||
|
Cost of materials and other (a) |
|
29,430 |
|
|
|
42,946 |
|
|
|
59,435 |
|
|
|
77,895 |
|
|
Operating expenses (excluding depreciation and amortization expense reflected below) |
|
1,440 |
|
|
|
1,626 |
|
|
|
2,917 |
|
|
|
3,005 |
|
|
Depreciation and amortization expense (b) |
|
658 |
|
|
|
590 |
|
|
|
1,308 |
|
|
|
1,185 |
|
|
Total cost of sales |
|
31,528 |
|
|
|
45,162 |
|
|
|
63,660 |
|
|
|
82,085 |
|
|
Other operating expenses |
|
2 |
|
|
|
15 |
|
|
|
12 |
|
|
|
34 |
|
|
General and administrative expenses (excluding depreciation and amortization expense reflected below) (c) |
|
209 |
|
|
|
233 |
|
|
|
453 |
|
|
|
438 |
|
|
Depreciation and amortization expense |
|
11 |
|
|
|
12 |
|
|
|
21 |
|
|
|
23 |
|
|
Operating income |
|
2,759 |
|
|
|
6,219 |
|
|
|
6,802 |
|
|
|
7,603 |
|
|
Other income, net (d) |
|
106 |
|
|
|
33 |
|
|
|
235 |
|
|
|
13 |
|
|
Interest and debt expense, net of capitalized interest |
|
(148 |
) |
|
|
(142 |
) |
|
|
(294 |
) |
|
|
(287 |
) |
|
Income before income tax expense |
|
2,717 |
|
|
|
6,110 |
|
|
|
6,743 |
|
|
|
7,329 |
|
|
Income tax expense |
|
595 |
|
|
|
1,342 |
|
|
|
1,475 |
|
|
|
1,594 |
|
|
Net income |
|
2,122 |
|
|
|
4,768 |
|
|
|
5,268 |
|
|
|
5,735 |
|
|
Less: Net income attributable to noncontrolling interests |
|
178 |
|
|
|
75 |
|
|
|
257 |
|
|
|
137 |
|
|
Net income attributable to Valero Energy Corporation stockholders |
$ |
1,944 |
|
|
$ |
4,693 |
|
|
$ |
5,011 |
|
|
$ |
5,598 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Earnings per common share |
$ |
5.41 |
|
|
$ |
11.58 |
|
|
$ |
13.75 |
|
|
$ |
13.75 |
|
|
Weighted-average common shares outstanding (in millions) |
|
358 |
|
|
|
404 |
|
|
|
363 |
|
|
|
406 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Earnings per common share – assuming dilution |
$ |
5.40 |
|
|
$ |
11.57 |
|
|
$ |
13.74 |
|
|
$ |
13.74 |
|
|
Weighted-average common shares outstanding – assuming dilution (in millions) |
|
358 |
|
|
|
404 |
|
|
|
363 |
|
|
|
406 |
|
|
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, 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 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three months ended June 30, 2022 |
|
|
|
|
|
|
|
|
|
||||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
||||||||
|
Revenues from external customers |
$ |
49,495 |
|
|
$ |
855 |
|
$ |
1,291 |
|
|
$ |
— |
|
|
$ |
51,641 |
|
Intersegment revenues |
|
11 |
|
|
|
596 |
|
|
201 |
|
|
|
(808 |
) |
|
|
— |
|
Total revenues |
|
49,506 |
|
|
|
1,451 |
|
|
1,492 |
|
|
|
(808 |
) |
|
|
51,641 |
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
||||||||
|
Cost of materials and other (a) |
|
41,313 |
|
|
|
1,213 |
|
|
1,226 |
|
|
|
(806 |
) |
|
|
42,946 |
|
Operating expenses (excluding depreciation and amortization expense reflected below) |
|
1,402 |
|
|
|
58 |
|
|
167 |
|
|
|
(1 |
) |
|
|
1,626 |
|
Depreciation and amortization expense (b) |
|
565 |
|
|
|
28 |
|
|
(3 |
) |
|
|
— |
|
|
|
590 |
|
Total cost of sales |
|
43,280 |
|
|
|
1,299 |
|
|
1,390 |
|
|
|
(807 |
) |
|
|
45,162 |
|
Other operating expenses |
|
14 |
|
|
|
— |
|
|
1 |
|
|
|
— |
|
|
|
15 |
|
General and administrative expenses (excluding depreciation and amortization expense reflected below) (c) |
|
— |
|
|
|
— |
|
|
— |
|
|
|
233 |
|
|
|
233 |
|
Depreciation and amortization expense |
|
— |
|
|
|
— |
|
|
— |
|
|
|
12 |
|
|
|
12 |
|
Operating income by segment |
$ |
6,212 |
|
|
$ |
152 |
|
$ |
101 |
|
|
$ |
(246 |
) |
|
$ |
6,219 |
|
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 (e) (millions of dollars) (unaudited) |
|||||||||||||||
|
|
Refining |
|
Renewable Diesel |
|
Ethanol |
|
Corporate and Eliminations |
|
Total |
||||||
|
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 |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Six months ended June 30, 2022 |
|
|
|
|
|
|
|
|
|
||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
||||||
|
Revenues from external customers |
$ |
86,308 |
|
$ |
1,450 |
|
$ |
2,425 |
|
$ |
— |
|
|
$ |
90,183 |
|
Intersegment revenues |
|
15 |
|
|
982 |
|
|
328 |
|
|
(1,325 |
) |
|
|
— |
|
Total revenues |
|
86,323 |
|
|
2,432 |
|
|
2,753 |
|
|
(1,325 |
) |
|
|
90,183 |
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
||||||
|
Cost of materials and other (a) |
|
74,919 |
|
|
1,968 |
|
|
2,330 |
|
|
(1,322 |
) |
|
|
77,895 |
|
Operating expenses (excluding depreciation and amortization expense reflected below) |
|
2,595 |
|
|
109 |
|
|
302 |
|
|
(1 |
) |
|
|
3,005 |
|
Depreciation and amortization expense (b) |
|
1,114 |
|
|
54 |
|
|
17 |
|
|
— |
|
|
|
1,185 |
|
Total cost of sales |
|
78,628 |
|
|
2,131 |
|
|
2,649 |
|
|
(1,323 |
) |
|
|
82,085 |
|
Other operating expenses |
|
32 |
|
|
— |
|
|
2 |
|
|
— |
|
|
|
34 |
|
General and administrative expenses (excluding depreciation and amortization expense reflected below) (c) |
|
— |
|
|
— |
|
|
— |
|
|
438 |
|
|
|
438 |
|
Depreciation and amortization expense |
|
— |
|
|
— |
|
|
— |
|
|
23 |
|
|
|
23 |
|
Operating income by segment |
$ |
7,663 |
|
$ |
301 |
|
$ |
102 |
|
$ |
(463 |
) |
|
$ |
7,603 |
|
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 (e) (millions of dollars) (unaudited) |
||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||
|
|
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 |
$ |
1,944 |
|
$ |
4,693 |
|
|
$ |
5,011 |
|
|
$ |
5,598 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|||||||
|
Modification of renewable volume obligation (RVO) (a) |
|
— |
|
|
(104 |
) |
|
|
— |
|
|
|
(104 |
) |
|
Income tax expense related to modification of RVO |
|
— |
|
|
23 |
|
|
|
— |
|
|
|
23 |
|
|
Modification of RVO, net of taxes |
|
— |
|
|
(81 |
) |
|
|
— |
|
|
|
(81 |
) |
|
Gain on sale of ethanol plant (b) |
|
— |
|
|
(23 |
) |
|
|
— |
|
|
|
(23 |
) |
|
Income tax expense related to gain on sale of ethanol plant |
|
— |
|
|
5 |
|
|
|
— |
|
|
|
5 |
|
|
Gain on sale of ethanol plant, net of taxes |
|
— |
|
|
(18 |
) |
|
|
— |
|
|
|
(18 |
) |
|
Environmental reserve adjustment (c) |
|
— |
|
|
20 |
|
|
|
— |
|
|
|
20 |
|
|
Income tax benefit related to environmental reserve adjustment |
|
— |
|
|
(5 |
) |
|
|
— |
|
|
|
(5 |
) |
|
Environmental reserve adjustment, net of taxes |
|
— |
|
|
15 |
|
|
|
— |
|
|
|
15 |
|
|
Loss (gain) on early retirement of debt (d) |
|
— |
|
|
— |
|
|
|
(11 |
) |
|
|
50 |
|
|
Income tax (benefit) expense related to loss (gain) on early retirement of debt |
|
— |
|
|
— |
|
|
|
2 |
|
|
|
(11 |
) |
|
Loss (gain) on early retirement of debt, net of taxes |
|
— |
|
|
— |
|
|
|
(9 |
) |
|
|
39 |
|
|
Total adjustments |
|
— |
|
|
(84 |
) |
|
|
(9 |
) |
|
|
(45 |
) |
|
Adjusted net income attributable to Valero Energy Corporation stockholders |
$ |
1,944 |
|
$ |
4,609 |
|
|
$ |
5,002 |
|
|
$ |
5,553 |
|
|
Reconciliation of earnings per common share – assuming dilution to adjusted earnings per common share – assuming dilution |
|
|
|
|
|
|
|
|||||||
|
Earnings per common share – assuming dilution |
$ |
5.40 |
|
$ |
11.57 |
|
|
$ |
13.74 |
|
|
$ |
13.74 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|||||||
|
Modification of RVO (a) |
|
— |
|
|
(0.20 |
) |
|
|
— |
|
|
|
(0.20 |
) |
|
Gain on sale of ethanol plant (b) |
|
— |
|
|
(0.05 |
) |
|
|
— |
|
|
|
(0.05 |
) |
|
Environmental reserve adjustment (c) |
|
— |
|
|
0.04 |
|
|
|
— |
|
|
|
0.04 |
|
|
Loss (gain) on early retirement of debt (d) |
|
— |
|
|
— |
|
|
|
(0.02 |
) |
|
|
0.10 |
|
|
Total adjustments |
|
— |
|
|
(0.21 |
) |
|
|
(0.02 |
) |
|
|
(0.11 |
) |
|
Adjusted earnings per common share – assuming dilution |
$ |
5.40 |
|
$ |
11.36 |
|
|
$ |
13.72 |
|
|
$ |
13.63 |
|
|
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 (e) (millions of dollars) (unaudited) |
|||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||
|
|
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 |
$ |
2,432 |
|
$ |
6,212 |
|
|
$ |
6,489 |
|
$ |
7,663 |
|
|
Adjustments: |
|
|
|
|
|
|
|
||||||
|
Modification of RVO (a) |
|
— |
|
|
(104 |
) |
|
|
— |
|
|
(104 |
) |
|
Operating expenses (excluding depreciation and amortization expense reflected below) |
|
1,205 |
|
|
1,402 |
|
|
|
2,466 |
|
|
2,595 |
|
|
Depreciation and amortization expense |
|
582 |
|
|
565 |
|
|
|
1,154 |
|
|
1,114 |
|
|
Other operating expenses |
|
1 |
|
|
14 |
|
|
|
11 |
|
|
32 |
|
|
Refining margin |
$ |
4,220 |
|
$ |
8,089 |
|
|
$ |
10,120 |
|
$ |
11,300 |
|
|
|
|
|
|
|
|
|
|
||||||
|
Refining operating income |
$ |
2,432 |
|
$ |
6,212 |
|
|
$ |
6,489 |
|
$ |
7,663 |
|
|
Adjustments: |
|
|
|
|
|
|
|
||||||
|
Modification of RVO (a) |
|
— |
|
|
(104 |
) |
|
|
— |
|
|
(104 |
) |
|
Other operating expenses |
|
1 |
|
|
14 |
|
|
|
11 |
|
|
32 |
|
|
Adjusted Refining operating income |
$ |
2,433 |
|
$ |
6,122 |
|
|
$ |
6,500 |
|
$ |
7,591 |
|
|
|
|
|
|
|
|
|
|
||||||
|
Renewable Diesel segment |
|
|
|
|
|
|
|
||||||
|
Renewable Diesel operating income |
$ |
440 |
|
$ |
152 |
|
|
$ |
645 |
|
$ |
301 |
|
|
Adjustments: |
|
|
|
|
|
|
|
||||||
|
Operating expenses (excluding depreciation and amortization expense reflected below) |
|
104 |
|
|
58 |
|
|
|
190 |
|
|
109 |
|
|
Depreciation and amortization expense |
|
59 |
|
|
28 |
|
|
|
117 |
|
|
54 |
|
|
Renewable Diesel margin |
$ |
603 |
|
$ |
238 |
|
|
$ |
952 |
|
$ |
464 |
|
|
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 (e) (millions of dollars) (unaudited) |
|||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||
|
|
|
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 |
$ |
127 |
|
$ |
101 |
|
|
$ |
166 |
|
$ |
102 |
|
|
Adjustments: |
|
|
|
|
|
|
|
||||||
|
Operating expenses (excluding depreciation and amortization expense reflected below) |
|
128 |
|
|
167 |
|
|
|
258 |
|
|
302 |
|
|
Depreciation and amortization expense (b) |
|
19 |
|
|
(3 |
) |
|
|
39 |
|
|
17 |
|
|
Other operating expenses |
|
1 |
|
|
1 |
|
|
|
1 |
|
|
2 |
|
|
Ethanol margin |
$ |
275 |
|
$ |
266 |
|
|
$ |
464 |
|
$ |
423 |
|
|
|
|
|
|
|
|
|
|
||||||
|
Ethanol operating income |
$ |
127 |
|
$ |
101 |
|
|
$ |
166 |
|
$ |
102 |
|
|
Adjustments: |
|
|
|
|
|
|
|
||||||
|
Gain on sale of ethanol plant (b) |
|
— |
|
|
(23 |
) |
|
|
— |
|
|
(23 |
) |
|
Other operating expenses |
|
1 |
|
|
1 |
|
|
|
1 |
|
|
2 |
|
|
Adjusted Ethanol operating income |
$ |
128 |
|
$ |
79 |
|
|
$ |
167 |
|
$ |
81 |
|
|
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 (e) (millions of dollars) (unaudited) |
|||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||
|
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
Reconciliation of Refining segment operating income to Refining margin (by region), and reconciliation of Refining segment operating income to adjusted Refining segment operating income (by region) (f) |
|
|
|
|
|
|
|
||||||
|
U.S. Gulf Coast region |
|
|
|
|
|
|
|
||||||
|
Refining operating income |
$ |
1,529 |
|
$ |
3,399 |
|
|
$ |
4,196 |
|
$ |
4,395 |
|
|
Adjustments: |
|
|
|
|
|
|
|
||||||
|
Modification of RVO (a) |
|
— |
|
|
(74 |
) |
|
|
— |
|
|
(74 |
) |
|
Operating expenses (excluding depreciation and amortization expense reflected below) |
|
674 |
|
|
814 |
|
|
|
1,360 |
|
|
1,469 |
|
|
Depreciation and amortization expense |
|
358 |
|
|
341 |
|
|
|
707 |
|
|
673 |
|
|
Other operating expenses |
|
1 |
|
|
5 |
|
|
|
11 |
|
|
23 |
|
|
Refining margin |
$ |
2,562 |
|
$ |
4,485 |
|
|
$ |
6,274 |
|
$ |
6,486 |
|
|
|
|
|
|
|
|
|
|
||||||
|
Refining operating income |
$ |
1,529 |
|
$ |
3,399 |
|
|
$ |
4,196 |
|
$ |
4,395 |
|
|
Adjustments: |
|
|
|
|
|
|
|
||||||
|
Modification of RVO (a) |
|
— |
|
|
(74 |
) |
|
|
— |
|
|
(74 |
) |
|
Other operating expenses |
|
1 |
|
|
5 |
|
|
|
11 |
|
|
23 |
|
|
Adjusted Refining operating income |
$ |
1,530 |
|
$ |
3,330 |
|
|
$ |
4,207 |
|
$ |
4,344 |
|
|
|
|
|
|
|
|
|
|
||||||
|
U.S. Mid-Continent region |
|
|
|
|
|
|
|
||||||
|
Refining operating income |
$ |
323 |
|
$ |
959 |
|
|
$ |
925 |
|
$ |
1,101 |
|
|
Adjustments: |
|
|
|
|
|
|
|
||||||
|
Modification of RVO (a) |
|
— |
|
|
(19 |
) |
|
|
— |
|
|
(19 |
) |
|
Operating expenses (excluding depreciation and amortization expense reflected below) |
|
181 |
|
|
199 |
|
|
|
375 |
|
|
371 |
|
|
Depreciation and amortization expense |
|
83 |
|
|
85 |
|
|
|
165 |
|
|
166 |
|
|
Refining margin |
$ |
587 |
|
$ |
1,224 |
|
|
$ |
1,465 |
|
$ |
1,619 |
|
|
|
|
|
|
|
|
|
|
||||||
|
Refining operating income |
$ |
323 |
|
$ |
959 |
|
|
$ |
925 |
|
$ |
1,101 |
|
|
Adjustment: Modification of RVO (a) |
|
— |
|
|
(19 |
) |
|
|
— |
|
|
(19 |
) |
|
Adjusted Refining operating income |
$ |
323 |
|
$ |
940 |
|
|
$ |
925 |
|
$ |
1,082 |
|
|
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 (e) (millions of dollars) (unaudited) |
|||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||
|
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
Reconciliation of Refining segment operating income to Refining margin (by region), and reconciliation of Refining segment operating income to adjusted Refining segment operating income (by region) (f) (continued) |
|
|
|
|
|
|
|
||||||
|
North Atlantic region |
|
|
|
|
|
|
|
||||||
|
Refining operating income |
$ |
311 |
|
$ |
1,222 |
|
|
$ |
940 |
|
$ |
1,508 |
|
|
Adjustments: |
|
|
|
|
|
|
|
||||||
|
Operating expenses (excluding depreciation and amortization expense reflected below) |
|
178 |
|
|
192 |
|
|
|
358 |
|
|
398 |
|
|
Depreciation and amortization expense |
|
66 |
|
|
66 |
|
|
|
129 |
|
|
135 |
|
|
Other operating expenses |
|
— |
|
|
9 |
|
|
|
— |
|
|
9 |
|
|
Refining margin |
$ |
555 |
|
$ |
1,489 |
|
|
$ |
1,427 |
|
$ |
2,050 |
|
|
|
|
|
|
|
|
|
|
||||||
|
Refining operating income |
$ |
311 |
|
$ |
1,222 |
|
|
$ |
940 |
|
$ |
1,508 |
|
|
Adjustment: Other operating expenses |
|
— |
|
|
9 |
|
|
|
— |
|
|
9 |
|
|
Adjusted Refining operating income |
$ |
311 |
|
$ |
1,231 |
|
|
$ |
940 |
|
$ |
1,517 |
|
|
|
|
|
|
|
|
|
|
||||||
|
U.S. West Coast region |
|
|
|
|
|
|
|
||||||
|
Refining operating income |
$ |
269 |
|
$ |
632 |
|
|
$ |
428 |
|
$ |
659 |
|
|
Adjustments: |
|
|
|
|
|
|
|
||||||
|
Modification of RVO (a) |
|
— |
|
|
(11 |
) |
|
|
— |
|
|
(11 |
) |
|
Operating expenses (excluding depreciation and amortization expense reflected below) |
|
172 |
|
|
197 |
|
|
|
373 |
|
|
357 |
|
|
Depreciation and amortization expense |
|
75 |
|
|
73 |
|
|
|
153 |
|
|
140 |
|
|
Refining margin |
$ |
516 |
|
$ |
891 |
|
|
$ |
954 |
|
$ |
1,145 |
|
|
|
|
|
|
|
|
|
|
||||||
|
Refining operating income |
$ |
269 |
|
$ |
632 |
|
|
$ |
428 |
|
$ |
659 |
|
|
Adjustment: Modification of RVO (a) |
|
— |
|
|
(11 |
) |
|
|
— |
|
|
(11 |
) |
|
Adjusted Refining operating income |
$ |
269 |
|
$ |
621 |
|
|
$ |
428 |
|
$ |
648 |
|
|
See Notes to Earnings Release Tables. |
|||||||||||||
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
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