Valero Energy Reports Second Quarter 2024 Results
- 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
SAN ANTONIO–(BUSINESS WIRE)–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 |
|
Six Months Ended |
||||||||||||
|
|
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 |
|
Ethanol |
|
Corporate |
|
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 |
|
Ethanol |
|
Corporate |
|
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 |
|
Six Months Ended |
||||||||||
|
|
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 |
|
Six Months Ended |
|||||||||
|
|
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 |
|
Six Months Ended |
||||||||
|
|
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 |
|
Six Months Ended |
||||||||
|
|
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 |
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
