- Reported net income attributable to Valero stockholders of $364
million, or $1.14 per share
- Returned $907 million to stockholders through dividends and
stock buybacks
- Successfully completed the Diamond Green Diesel (DGD) Port
Arthur Sustainable Aviation Fuel (SAF) project in October
Valero Energy Corporation (NYSE: VLO, “Valero”) today reported
net income attributable to Valero stockholders of $364 million, or
$1.14 per share, for the third quarter of 2024, compared to $2.6
billion, or $7.49 per share, for the third quarter of 2023.
Refining
The Refining segment reported operating income of $565 million
for the third quarter of 2024, compared to $3.4 billion for the
third quarter of 2023. Refining throughput volumes averaged 2.9
million barrels per day during a period of heavy maintenance
activities in the third quarter of 2024.
Renewable Diesel
The Renewable Diesel segment, which consists of the DGD joint
venture, reported $35 million of operating income for the third
quarter of 2024, compared to $123 million for the third quarter of
2023. Segment sales volumes averaged 3.5 million gallons per day in
the third quarter of 2024, which was 552 thousand gallons per day
higher than the third quarter of 2023.
Ethanol
The Ethanol segment reported $153 million of operating income
for the third quarter of 2024, compared to $197 million for the
third quarter of 2023. Ethanol production volumes averaged 4.6
million gallons per day in the third quarter of 2024, which was 255
thousand gallons per day higher than the third quarter of 2023.
Corporate and Other
General and administrative expenses were $234 million in the
third quarter of 2024, compared to $250 million in the third
quarter of 2023. The effective tax rate for the third quarter of
2024 was 20 percent.
Investing and Financing Activities
Net cash provided by operating activities was $1.3 billion in
the third quarter of 2024. Included in this amount was a $166
million favorable change in working capital and $47 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 $1.1
billion in the third quarter of 2024.
Capital investments totaled $429 million in the third quarter of
2024, of which $338 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 $394
million.
Valero returned $907 million to stockholders in the third
quarter of 2024, of which $342 million was paid as dividends and
$565 million was for the purchase of approximately 3.8 million
shares of common stock, resulting in a payout ratio of 84 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.
“Our focus on operational excellence, capital discipline and
honoring our commitment to shareholder returns has served us well
through multiple commodity cycles and will continue to anchor our
strategy going forward,” said Lane Riggs, Valero’s Chief Executive
Officer and President.
Liquidity and Financial Position
Valero ended the third quarter of 2024 with $8.4 billion of
total debt, $2.5 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 17 percent as of
September 30, 2024.
Strategic Update
The SAF project at the DGD Port Arthur plant was successfully
completed in October. The project is expected to be fully
operational this year, providing the plant the optionality to
upgrade approximately 50 percent of its current 470 million gallon
renewable diesel annual production capacity to SAF.
“The DGD SAF project was completed on schedule and under budget
and is a testament to the strength of our project and operations
teams,” 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 (loss), 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
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Statement of income data
Revenues
$
32,876
$
38,404
$
99,125
$
109,352
Cost of sales:
Cost of materials and other
29,965
32,385
88,590
91,820
Operating expenses (excluding depreciation
and amortization expense reflected below)
1,482
1,578
4,317
4,495
Depreciation and amortization expense
675
671
2,042
1,979
Total cost of sales
32,122
34,634
94,949
98,294
Other operating expenses (a)
3
6
40
18
General and administrative expenses
(excluding depreciation and amortization expense reflected
below)
234
250
695
703
Depreciation and amortization expense
10
11
34
32
Operating income
507
3,503
3,407
10,305
Other income, net (b)
123
122
389
357
Interest and debt expense, net of
capitalized interest
(141
)
(149
)
(421
)
(443
)
Income before income tax expense
489
3,476
3,375
10,219
Income tax expense
96
813
726
2,288
Net income
393
2,663
2,649
7,931
Less: Net income attributable to
noncontrolling interests
29
41
160
298
Net income attributable to Valero Energy
Corporation stockholders
$
364
$
2,622
$
2,489
$
7,633
Earnings per common share
$
1.14
$
7.49
$
7.66
$
21.22
Weighted-average common shares outstanding
(in millions)
318
349
324
359
Earnings per common share – assuming
dilution
$
1.14
$
7.49
$
7.66
$
21.21
Weighted-average common shares outstanding
– assuming dilution (in millions)
318
349
324
359
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 September 30,
2024
Revenues:
Revenues from external customers
$
31,332
$
632
$
912
$
—
$
32,876
Intersegment revenues
3
593
235
(831
)
—
Total revenues
31,335
1,225
1,147
(831
)
32,876
Cost of sales:
Cost of materials and other
28,922
1,029
842
(828
)
29,965
Operating expenses (excluding depreciation
and amortization expense reflected below)
1,256
92
133
1
1,482
Depreciation and amortization expense
589
69
19
(2
)
675
Total cost of sales
30,767
1,190
994
(829
)
32,122
Other operating expenses
3
—
—
—
3
General and administrative expenses
(excluding depreciation and amortization expense reflected
below)
—
—
—
234
234
Depreciation and amortization expense
—
—
—
10
10
Operating income by segment
$
565
$
35
$
153
$
(246
)
$
507
Three months ended September 30,
2023
Revenues:
Revenues from external customers
$
36,521
$
759
$
1,124
$
—
$
38,404
Intersegment revenues
8
672
310
(990
)
—
Total revenues
36,529
1,431
1,434
(990
)
38,404
Cost of sales:
Cost of materials and other
31,115
1,169
1,092
(991
)
32,385
Operating expenses (excluding depreciation
and amortization expense reflected below)
1,366
84
125
3
1,578
Depreciation and amortization expense
597
55
20
(1
)
671
Total cost of sales
33,078
1,308
1,237
(989
)
34,634
Other operating expenses
6
—
—
—
6
General and administrative expenses
(excluding depreciation and amortization expense reflected
below)
—
—
—
250
250
Depreciation and amortization expense
—
—
—
11
11
Operating income by segment
$
3,445
$
123
$
197
$
(262
)
$
3,503
See Operating Highlights by Segment.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
FINANCIAL HIGHLIGHTS BY
SEGMENT
(millions of dollars)
(unaudited)
Refining
Renewable
Diesel
Ethanol
Corporate
and
Eliminations
Total
Nine months ended September 30,
2024
Revenues:
Revenues from external customers
$
94,519
$
1,888
$
2,718
$
—
$
99,125
Intersegment revenues
8
1,932
654
(2,594
)
—
Total revenues
94,527
3,820
3,372
(2,594
)
99,125
Cost of sales:
Cost of materials and other
85,528
3,025
2,625
(2,588
)
88,590
Operating expenses (excluding depreciation
and amortization expense reflected below)
3,659
262
395
1
4,317
Depreciation and amortization expense
1,793
196
57
(4
)
2,042
Total cost of sales
90,980
3,483
3,077
(2,591
)
94,949
Other operating expenses (a)
13
—
27
—
40
General and administrative expenses
(excluding depreciation and amortization expense reflected
below)
—
—
—
695
695
Depreciation and amortization expense
—
—
—
34
34
Operating income by segment
$
3,534
$
337
$
268
$
(732
)
$
3,407
Nine months ended September 30,
2023
Revenues:
Revenues from external customers
$
102,924
$
2,990
$
3,438
$
—
$
109,352
Intersegment revenues
8
2,367
790
(3,165
)
—
Total revenues
102,932
5,357
4,228
(3,165
)
109,352
Cost of sales:
Cost of materials and other
87,398
4,143
3,422
(3,143
)
91,820
Operating expenses (excluding depreciation
and amortization expense reflected below)
3,832
274
383
6
4,495
Depreciation and amortization expense
1,751
172
59
(3
)
1,979
Total cost of sales
92,981
4,589
3,864
(3,140
)
98,294
Other operating expenses
17
—
1
—
18
General and administrative expenses
(excluding depreciation and amortization expense reflected
below)
—
—
—
703
703
Depreciation and amortization expense
—
—
—
32
32
Operating income by segment
$
9,934
$
768
$
363
$
(760
)
$
10,305
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
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Reconciliation of net income
attributable to Valero Energy Corporation stockholders to
adjusted net income attributable to Valero Energy
Corporation stockholders
Net income attributable to Valero Energy
Corporation stockholders
$
364
$
2,622
$
2,489
$
7,633
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
$
364
$
2,622
$
2,511
$
7,624
Reconciliation of earnings per common
share – assuming dilution to adjusted earnings per
common share – assuming dilution
Earnings per common share – assuming
dilution
$
1.14
$
7.49
$
7.66
$
21.21
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
$
1.14
$
7.49
$
7.73
$
21.19
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
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Reconciliation of operating income by
segment to segment margin, and reconciliation of operating
income by segment to adjusted operating income by
segment
Refining segment
Refining operating income
$
565
$
3,445
$
3,534
$
9,934
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
1,256
1,366
3,659
3,832
Depreciation and amortization expense
589
597
1,793
1,751
Other operating expenses
3
6
13
17
Refining margin
$
2,413
$
5,414
$
8,999
$
15,534
Refining operating income
$
565
$
3,445
$
3,534
$
9,934
Adjustment: Other operating expenses
3
6
13
17
Adjusted Refining operating income
$
568
$
3,451
$
3,547
$
9,951
Renewable Diesel segment
Renewable Diesel operating income
$
35
$
123
$
337
$
768
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
92
84
262
274
Depreciation and amortization expense
69
55
196
172
Renewable Diesel margin
$
196
$
262
$
795
$
1,214
Ethanol segment
Ethanol operating income
$
153
$
197
$
268
$
363
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
133
125
395
383
Depreciation and amortization expense
19
20
57
59
Other operating expenses (a)
—
—
27
1
Ethanol margin
$
305
$
342
$
747
$
806
Ethanol operating income
$
153
$
197
$
268
$
363
Adjustment: Other operating expenses
(a)
—
—
27
1
Adjusted Ethanol operating income
$
153
$
197
$
295
$
364
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
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Reconciliation of Refining segment
operating income (loss) to Refining margin (by region), and
reconciliation of Refining segment operating income (loss)
to adjusted Refining segment operating income (loss) (by
region) (d)
U.S. Gulf Coast region
Refining operating income
$
419
$
1,799
$
2,112
$
5,995
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
705
761
2,025
2,121
Depreciation and amortization expense
370
375
1,120
1,082
Other operating expenses
2
—
8
11
Refining margin
$
1,496
$
2,935
$
5,265
$
9,209
Refining operating income
$
419
$
1,799
$
2,112
$
5,995
Adjustment: Other operating expenses
2
—
8
11
Adjusted Refining operating income
$
421
$
1,799
$
2,120
$
6,006
U.S. Mid-Continent region
Refining operating income
$
39
$
582
$
419
$
1,507
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
186
194
559
569
Depreciation and amortization expense
79
85
254
250
Other operating expenses
1
—
3
—
Refining margin
$
305
$
861
$
1,235
$
2,326
Refining operating income
$
39
$
582
$
419
$
1,507
Adjustment: Other operating expenses
1
—
3
—
Adjusted Refining operating income
$
40
$
582
$
422
$
1,507
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
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Reconciliation of Refining segment
operating income (loss) to Refining margin (by region), and
reconciliation of Refining segment operating income (loss)
to adjusted Refining segment operating income (loss) (by
region) (d) (continued)
North Atlantic region
Refining operating income
$
206
$
612
$
929
$
1,552
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
174
189
529
547
Depreciation and amortization expense
68
63
198
192
Other operating expenses
—
1
1
1
Refining margin
$
448
$
865
$
1,657
$
2,292
Refining operating income
$
206
$
612
$
929
$
1,552
Adjustment: Other operating expenses
—
1
1
1
Adjusted Refining operating income
$
206
$
613
$
930
$
1,553
U.S. West Coast region
Refining operating income (loss)
$
(99
)
$
452
$
74
$
880
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
191
222
546
595
Depreciation and amortization expense
72
74
221
227
Other operating expenses
—
5
1
5
Refining margin
$
164
$
753
$
842
$
1,707
Refining operating income (loss)
$
(99
)
$
452
$
74
$
880
Adjustment: Other operating expenses
—
5
1
5
Adjusted Refining operating income
(loss)
$
(99
)
$
457
$
75
$
885
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
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Throughput volumes (thousand barrels
per day)
Feedstocks:
Heavy sour crude oil
538
496
469
437
Medium/light sour crude oil
221
312
242
319
Sweet crude oil
1,461
1,514
1,499
1,488
Residuals
182
192
178
209
Other feedstocks
116
119
116
118
Total feedstocks
2,518
2,633
2,504
2,571
Blendstocks and other
366
389
381
403
Total throughput volumes
2,884
3,022
2,885
2,974
Yields (thousand barrels per
day)
Gasolines and blendstocks
1,400
1,473
1,413
1,452
Distillates
1,134
1,158
1,090
1,125
Other products (e)
384
428
410
425
Total yields
2,918
3,059
2,913
3,002
Operating statistics (c) (f)
Refining margin
$
2,413
$
5,414
$
8,999
$
15,534
Adjusted Refining operating income
$
568
$
3,451
$
3,547
$
9,951
Throughput volumes (thousand barrels per
day)
2,884
3,022
2,885
2,974
Refining margin per barrel of
throughput
$
9.09
$
19.47
$
11.39
$
19.13
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per barrel of
throughput
4.73
4.91
4.63
4.72
Depreciation and amortization expense per
barrel of throughput
2.22
2.15
2.27
2.15
Adjusted Refining operating income per
barrel of throughput
$
2.14
$
12.41
$
4.49
$
12.26
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
RENEWABLE DIESEL SEGMENT
OPERATING HIGHLIGHTS
(millions of dollars, except
per gallon amounts)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Operating statistics (c) (f)
Renewable Diesel margin
$
196
$
262
$
795
$
1,214
Renewable Diesel operating income
$
35
$
123
$
337
$
768
Sales volumes (thousand gallons per
day)
3,544
2,992
3,588
3,460
Renewable Diesel margin per gallon of
sales
$
0.60
$
0.95
$
0.81
$
1.29
Less:
Operating expenses (excluding depreciation
and
amortization expense reflected below) per
gallon of sales
0.28
0.30
0.27
0.29
Depreciation and amortization expense per
gallon of sales
0.21
0.20
0.20
0.19
Renewable Diesel operating income per
gallon of sales
$
0.11
$
0.45
$
0.34
$
0.81
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
ETHANOL SEGMENT OPERATING
HIGHLIGHTS
(millions of dollars, except
per gallon amounts)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Operating statistics (c) (f)
Ethanol margin
$
305
$
342
$
747
$
806
Adjusted Ethanol operating income
$
153
$
197
$
295
$
364
Production volumes (thousand gallons per
day)
4,584
4,329
4,508
4,319
Ethanol margin per gallon of
production
$
0.72
$
0.86
$
0.61
$
0.68
Less:
Operating expenses (excluding depreciation
and
amortization expense reflected below) per
gallon of production
0.31
0.32
0.32
0.32
Depreciation and amortization expense per
gallon of production
0.05
0.05
0.05
0.05
Adjusted Ethanol operating income per
gallon of production
$
0.36
$
0.49
$
0.24
$
0.31
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
REFINING SEGMENT OPERATING
HIGHLIGHTS BY REGION
(millions of dollars, except
per barrel amounts)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Operating statistics by region
(d)
U.S. Gulf Coast region (c) (f)
Refining margin
$
1,496
$
2,935
$
5,265
$
9,209
Adjusted Refining operating income
$
421
$
1,799
$
2,120
$
6,006
Throughput volumes (thousand barrels per
day)
1,799
1,834
1,741
1,783
Refining margin per barrel of
throughput
$
9.03
$
17.39
$
11.04
$
18.92
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per barrel of
throughput
4.25
4.51
4.25
4.36
Depreciation and amortization expense per
barrel of throughput
2.24
2.22
2.34
2.22
Adjusted Refining operating income per
barrel of throughput
$
2.54
$
10.66
$
4.45
$
12.34
U.S. Mid-Continent region (c)
(f)
Refining margin
$
305
$
861
$
1,235
$
2,326
Adjusted Refining operating income
$
40
$
582
$
422
$
1,507
Throughput volumes (thousand barrels per
day)
419
456
436
461
Refining margin per barrel of
throughput
$
7.92
$
20.53
$
10.34
$
18.49
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per barrel of
throughput
4.84
4.62
4.68
4.52
Depreciation and amortization expense per
barrel of throughput
2.07
2.02
2.13
1.98
Adjusted Refining operating income per
barrel of throughput
$
1.01
$
13.89
$
3.53
$
11.99
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
REFINING SEGMENT OPERATING
HIGHLIGHTS BY REGION
(millions of dollars, except
per barrel amounts)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Operating statistics by region (d)
(continued)
North Atlantic region (c) (f)
Refining margin
$
448
$
865
$
1,657
$
2,292
Adjusted Refining operating income
$
206
$
613
$
930
$
1,553
Throughput volumes (thousand barrels per
day)
422
461
446
463
Refining margin per barrel of
throughput
$
11.55
$
20.39
$
13.54
$
18.14
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per barrel of
throughput
4.49
4.47
4.32
4.33
Depreciation and amortization expense per
barrel of throughput
1.74
1.48
1.61
1.52
Adjusted Refining operating income per
barrel of throughput
$
5.32
$
14.44
$
7.61
$
12.29
U.S. West Coast region (c) (f)
Refining margin
$
164
$
753
$
842
$
1,707
Adjusted Refining operating income
(loss)
$
(99
)
$
457
$
75
$
885
Throughput volumes (thousand barrels per
day)
244
271
262
267
Refining margin per barrel of
throughput
$
7.31
$
30.19
$
11.75
$
23.38
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per barrel of
throughput
8.49
8.89
7.61
8.15
Depreciation and amortization expense per
barrel of throughput
3.20
2.97
3.08
3.11
Adjusted Refining operating income (loss)
per barrel of throughput
$
(4.38
)
$
18.33
$
1.06
$
12.12
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
AVERAGE MARKET REFERENCE
PRICES AND DIFFERENTIALS
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Refining
Feedstocks (dollars per barrel)
Brent crude oil
$
78.37
$
86.18
$
81.72
$
82.12
Brent less West Texas Intermediate (WTI)
crude oil
3.18
3.72
4.05
4.68
Brent less WTI Houston crude oil
1.94
2.21
2.53
3.19
Brent less Dated Brent crude oil
(1.63
)
(0.78
)
(0.97
)
(0.10
)
Brent less Argus Sour Crude Index crude
oil
4.30
3.43
4.39
5.53
Brent less Maya crude oil
11.19
8.77
11.66
14.16
Brent less Western Canadian Select Houston
crude oil
10.36
9.98
11.03
12.19
WTI crude oil
75.19
82.46
77.67
77.44
Natural gas (dollars per million
British thermal units)
1.83
2.38
1.79
2.21
Renewable volume obligation (RVO)
(dollars per barrel) (g)
3.89
7.42
3.65
7.77
Product margins (RVO adjusted unless
otherwise noted)
(dollars per barrel)
U.S. Gulf Coast:
Conventional Blendstock of Oxygenate
Blending (CBOB) gasoline less Brent
6.28
14.70
7.45
12.57
Ultra-low-sulfur (ULS) diesel less
Brent
11.89
30.87
16.87
25.26
Propylene less Brent (not RVO
adjusted)
(27.50
)
(57.98
)
(40.16
)
(46.32
)
U.S. Mid-Continent:
CBOB gasoline less WTI
14.08
25.46
12.16
22.25
ULS diesel less WTI
16.74
37.10
18.94
32.12
North Atlantic:
CBOB gasoline less Brent
12.16
22.93
12.41
18.96
ULS diesel less Brent
13.68
33.91
19.39
28.19
U.S. West Coast:
California Reformulated Gasoline
Blendstock of Oxygenate Blending 87 gasoline less Brent
23.56
43.33
25.13
32.89
California Air Resources Board diesel less
Brent
14.22
47.66
19.65
31.43
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
AVERAGE MARKET REFERENCE
PRICES AND DIFFERENTIALS
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Renewable Diesel
New York Mercantile Exchange ULS diesel
(dollars per gallon)
$
2.31
$
3.03
$
2.51
$
2.80
Biodiesel Renewable Identification Number
(RIN) (dollars per RIN)
0.60
1.40
0.56
1.51
California Low-Carbon Fuel Standard carbon
credit (dollars per metric ton)
53.65
74.46
56.16
73.65
U.S. Gulf Coast (USGC) used cooking oil
(dollars per pound)
0.46
0.64
0.43
0.61
USGC distillers corn oil (dollars per
pound)
0.48
0.72
0.47
0.65
USGC fancy bleachable tallow (dollars per
pound)
0.47
0.68
0.44
0.62
Ethanol
Chicago Board of Trade corn (dollars per
bushel)
3.92
4.99
4.23
5.95
New York Harbor ethanol (dollars per
gallon)
1.92
2.39
1.82
2.42
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
OTHER FINANCIAL DATA
(millions of dollars)
(unaudited)
September 30,
December 31,
2024
2023
Balance sheet data
Current assets
$
23,976
$
26,221
Cash and cash equivalents included in
current assets
5,184
5,424
Inventories included in current assets
7,048
7,583
Current liabilities
15,298
16,802
Valero Energy Corporation stockholders’
equity
25,253
26,346
Total equity
28,000
28,524
Debt and finance lease obligations:
Debt –
Current portion of debt (excluding
variable interest entities (VIEs))
$
441
$
167
Debt, less current portion of debt
(excluding VIEs)
7,585
8,021
Total debt (excluding VIEs)
8,026
8,188
Current portion of debt attributable to
VIEs
329
1,030
Debt, less current portion of debt
attributable to VIEs
—
—
Total debt attributable to VIEs
329
1,030
Total debt
8,355
9,218
Finance lease obligations –
Current portion of finance lease
obligations (excluding VIEs)
220
183
Finance lease obligations, less current
portion (excluding VIEs)
1,556
1,428
Total finance lease obligations (excluding
VIEs)
1,776
1,611
Current portion of finance lease
obligations attributable to VIEs
26
26
Finance lease obligations, less current
portion attributable to VIEs
649
669
Total finance lease obligations
attributable to VIEs
675
695
Total finance lease obligations
2,451
2,306
Total debt and finance lease
obligations
$
10,806
$
11,524
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Reconciliation of net cash provided by
operating activities to adjusted net cash provided by
operating activities (c)
Net cash provided by operating
activities
$
1,295
$
3,308
$
5,613
$
7,990
Exclude:
Changes in current assets and current
liabilities
166
33
795
(1,695
)
Diamond Green Diesel LLC’s (DGD) adjusted
net cash provided by operating activities attributable to the other
joint venture member’s ownership interest in DGD
47
82
252
447
Adjusted net cash provided by operating
activities
$
1,082
$
3,193
$
4,566
$
9,238
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
OTHER FINANCIAL DATA
(millions of dollars, except
per share amounts)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Reconciliation of capital investments
to capital investments attributable to Valero (c)
Capital expenditures (excluding VIEs)
$
152
$
157
$
399
$
468
Capital expenditures of VIEs:
DGD
56
61
198
183
Other VIEs
2
2
7
4
Deferred turnaround and catalyst cost
expenditures (excluding VIEs)
208
157
844
665
Deferred turnaround and catalyst cost
expenditures of DGD
11
17
62
56
Capital investments
429
394
1,510
1,376
Adjustments:
DGD’s capital investments attributable to
the other joint venture member
(33
)
(40
)
(130
)
(120
)
Capital expenditures of other VIEs
(2
)
(2
)
(7
)
(4
)
Capital investments attributable to
Valero
$
394
$
352
$
1,373
$
1,252
Dividends per common share
$
1.07
$
1.02
$
3.21
$
3.06
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATION
NOTES TO EARNINGS RELEASE
TABLES
(a)
In March 2021, we announced our
participation in a then-proposed large-scale carbon capture and
sequestration pipeline system with Navigator Energy Services
(Navigator). In October 2023, Navigator announced that it decided
to cancel this project. Under the terms of the agreements
associated with the project, we had some rights from and
obligations to Navigator, including a portion of the aggregate
project costs. As a result, we recognized a charge of $29 million
in the nine months ended September 30, 2024 related to our
obligation to Navigator.
(b)
“Other income, net” includes a net gain of
$11 million in the nine months ended September 30, 2023 related to
the early retirement of $199 million aggregate principal amount of
various series of our senior notes.
(c)
We use certain financial measures (as
noted below) in the earnings release tables and accompanying
earnings release that are not defined under GAAP and are considered
to be non-GAAP measures.
We have defined these non-GAAP measures
and believe they are useful to the external users of our financial
statements, including industry analysts, investors, lenders, and
rating agencies. We believe these measures are useful to assess our
ongoing financial performance because, when reconciled to their
most comparable GAAP measures, they provide improved comparability
between periods after adjusting for certain items that we believe
are not indicative of our core operating performance and that may
obscure our underlying business results and trends. These non-GAAP
measures should not be considered as alternatives to their most
comparable GAAP measures nor should they be considered in isolation
or as a substitute for an analysis of our results of operations as
reported under GAAP. In addition, these non-GAAP measures may not
be comparable to similarly titled measures used by other companies
because we may define them differently, which diminishes their
utility.
Non-GAAP measures are as follows:
- Adjusted net income attributable to Valero Energy
Corporation stockholders is defined as net income attributable
to Valero Energy Corporation stockholders adjusted to reflect the
items noted below, along with their related income tax effect. The
income tax effect for the adjustments was calculated using a
combined U.S. federal and state statutory rate of 22.5 percent. We
have adjusted for these items because we believe that they are not
indicative of our core operating performance and that their
adjustment results in an important measure of our ongoing financial
performance to better assess our underlying business results and
trends. The basis for our belief with respect to each adjustment is
provided below.
– Project liability adjustment – The
project liability adjustment related to the cancellation of
Navigator’s project (see note (a)) is not indicative of our ongoing
operations.
– Gain on early retirement of debt –
Discounts, premiums, and other expenses recognized in connection
with the early retirement of various series of our senior notes
(see note (b)) are not associated with the ongoing costs of our
borrowing and financing activities.
- Adjusted earnings per common share – assuming dilution
is defined as adjusted net income attributable to Valero Energy
Corporation stockholders divided by the number of weighted-average
shares outstanding in the applicable period, assuming
dilution.
- Refining margin is defined as Refining segment operating
income (loss) excluding operating expenses (excluding depreciation
and amortization expense), depreciation and amortization expense,
and other operating expenses. We believe Refining margin is an
important measure of our Refining segment’s operating and financial
performance as it is the most comparable measure to the industry’s
market reference product margins, which are used by industry
analysts, investors, and others to evaluate our performance.
- Renewable Diesel margin is defined as Renewable Diesel
segment operating income excluding operating expenses (excluding
depreciation and amortization expense) and depreciation and
amortization expense. We believe Renewable Diesel margin is an
important measure of our Renewable Diesel segment’s operating and
financial performance as it is the most comparable measure to the
industry’s market reference product margins, which are used by
industry analysts, investors, and others to evaluate our
performance.
- Ethanol margin is defined as Ethanol segment operating
income excluding operating expenses (excluding depreciation and
amortization expense), depreciation and amortization expense, and
other operating expenses. We believe Ethanol margin is an important
measure of our Ethanol segment’s operating and financial
performance as it is the most comparable measure to the industry’s
market reference product margins, which are used by industry
analysts, investors, and others to evaluate our performance.
- Adjusted Refining operating income (loss) is defined as
Refining segment operating income (loss) excluding other operating
expenses. We believe adjusted Refining operating income (loss) is
an important measure of our Refining segment’s operating and
financial performance because it excludes items that are not
indicative of that segment’s core operating performance.
- Adjusted Ethanol operating income is defined as Ethanol
segment operating income excluding other operating expenses. We
believe adjusted Ethanol operating income is an important measure
of our Ethanol segment’s operating and financial performance
because it excludes items that are not indicative of that segment’s
core operating performance.
- Adjusted net cash provided by operating activities is
defined as net cash provided by operating activities excluding the
items noted below. We believe adjusted net cash provided by
operating activities is an important measure of our ongoing
financial performance to better assess our ability to generate cash
to fund our investing and financing activities. The basis for our
belief with respect to each excluded item is provided below.
– Changes in current assets and current
liabilities – Current assets net of current liabilities represents
our operating liquidity. We believe that the change in our
operating liquidity from period to period does not represent cash
generated by our operations that is available to fund our investing
and financing activities.
– DGD’s adjusted net cash provided by
operating activities attributable to the other joint venture
member’s ownership interest in DGD – We are a 50 percent joint
venture member in DGD and we consolidate DGD’s financial
statements. Our Renewable Diesel segment includes the operations of
DGD and the associated activities to market its products. Because
we consolidate DGD’s financial statements, all of DGD’s net cash
provided by or used in operating activities (or operating cash
flow) is included in our consolidated net cash provided by
operating activities.
DGD’s members use DGD’s operating cash
flow (excluding changes in its current assets and current
liabilities) to fund its capital investments rather than distribute
all of that cash to themselves. Nevertheless, DGD’s operating cash
flow is effectively attributable to each member and only 50 percent
of DGD’s operating cash flow should be attributed to our net cash
provided by operating activities. Therefore, we have adjusted our
net cash provided by operating activities for the portion of DGD’s
operating cash flow attributable to the other joint venture
member’s ownership interest because we believe that it more
accurately reflects the operating cash flow available to us to fund
our investing and financing activities. The adjustment is
calculated as follows (in millions):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
DGD operating cash flow data
Net cash provided by (used in) operating
activities
$
92
$
(28
)
$
537
$
487
Exclude: Changes in current assets and
current
liabilities
(3
)
(192
)
32
(408
)
Adjusted net cash provided by operating
activities
95
164
505
895
Other joint venture member’s ownership
interest
50
%
50
%
50
%
50
%
DGD’s adjusted net cash provided by
operating
activities attributable to the other joint
venture
member’s ownership interest in DGD
$
47
$
82
$
252
$
447
- Capital investments attributable to Valero is defined as
all capital expenditures and deferred turnaround and catalyst cost
expenditures presented in our consolidated statements of cash
flows, excluding the portion of DGD’s capital investments
attributable to the other joint venture member and all of the
capital expenditures of VIEs other than DGD.
DGD’s members use DGD’s operating cash
flow (excluding changes in its current assets and current
liabilities) to fund its capital investments rather than distribute
all of that cash to themselves. Because DGD’s operating cash flow
is effectively attributable to each member, only 50 percent of
DGD’s capital investments should be attributed to our net share of
total capital investments. We also exclude the capital expenditures
of other VIEs that we consolidate because we do not operate those
VIEs. We believe capital investments attributable to Valero is an
important measure because it more accurately reflects our capital
investments.
(d)
The Refining segment regions reflected herein contain the
following refineries: U.S. Gulf Coast- Corpus Christi
East, Corpus Christi West, Houston, Meraux, Port Arthur, St.
Charles, Texas City, and Three Rivers Refineries; U.S.
Mid Continent- Ardmore, McKee, and Memphis
Refineries; North Atlantic- Pembroke and Quebec City
Refineries; and U.S. West Coast- Benicia and
Wilmington Refineries.
(e)
Primarily includes petrochemicals, gas oils, No. 6 fuel oil,
petroleum coke, sulfur, and asphalt.
(f)
Valero uses certain operating statistics (as noted below) in the
earnings release tables and the accompanying earnings release to
evaluate performance between comparable periods. Different
companies may calculate them in different ways.
All per barrel of throughput, per gallon
of sales, and per gallon of production amounts are calculated by
dividing the associated dollar amount by the throughput volumes,
sales volumes, and production volumes for the period, as
applicable.
Throughput volumes, sales volumes, and
production volumes are calculated by multiplying throughput volumes
per day, sales volumes per day, and production volumes per day (as
provided in the accompanying tables), respectively, by the number
of days in the applicable period. We use throughput volumes, sales
volumes, and production volumes for the Refining segment, Renewable
Diesel segment, and Ethanol segment, respectively, due to their
general use by others who operate facilities similar to those
included in our segments. We believe the use of such volumes
results in per unit amounts that are most representative of the
product margins generated and the operating costs incurred as a
result of our operation of those facilities.
(g)
The RVO cost represents the average market cost on a per barrel
basis to comply with the Renewable Fuel Standard program. The RVO
cost is calculated by multiplying (i) the average market price
during the applicable period for the RINs associated with each
class of renewable fuel (i.e., biomass-based diesel, cellulosic
biofuel, advanced biofuel, and total renewable fuel) by (ii) the
quotas for the volume of each class of renewable fuel that must be
blended into petroleum-based transportation fuels consumed in the
U.S., as set or proposed by the U.S. Environmental Protection
Agency, on a percentage basis for each class of renewable fuel and
adding together the results of each calculation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241023908536/en/
Valero Contacts Investors: Homer Bhullar, Vice President
– Investor Relations and Finance, 210-345-1982 Eric Herbort,
Director – Investor Relations and Finance, 210-345-3331 Gautam
Srivastava, Director – Investor Relations, 210-345-3992
Media: Lillian Riojas, Executive Director – Media Relations and
Communications, 210-345-5002
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