- Reported net income attributable to Valero stockholders of $281
million, or $0.88 per share, for the fourth quarter and $2.8
billion, or $8.58 per share, for the year
- Reported adjusted net income attributable to Valero
stockholders of $207 million, or $0.64 per share, for the fourth
quarter and $2.7 billion, or $8.48 per share, for the year
- Returned $601 million to stockholders through dividends and
stock buybacks in the fourth quarter and $4.3 billion in the
year
- Increased quarterly cash dividend on common stock by 6 percent
to $1.13 per share on January 16, 2025
- Progressing with a Fluid Catalytic Cracking (FCC) Unit
optimization project at the St. Charles Refinery
Valero Energy Corporation (NYSE: VLO, “Valero”) today reported
net income attributable to Valero stockholders of $281 million, or
$0.88 per share, for the fourth quarter of 2024, compared to $1.2
billion, or $3.55 per share, for the fourth quarter of 2023.
Excluding the adjustment shown in the accompanying earnings release
tables, adjusted net income attributable to Valero stockholders was
$207 million, or $0.64 per share, for the fourth quarter of 2024,
compared to $1.2 billion, or $3.57 per share, for the fourth
quarter of 2023.
For 2024, net income attributable to Valero stockholders was
$2.8 billion, or $8.58 per share, compared to $8.8 billion, or
$24.92 per share, in 2023. Excluding the adjustments shown in the
accompanying earnings release tables, adjusted net income
attributable to Valero stockholders was $2.7 billion, or $8.48 per
share, in 2024, compared to $8.9 billion, or $24.96 per share, in
2023.
Refining
The Refining segment reported operating income of $437 million
for the fourth quarter of 2024, compared to $1.6 billion for the
fourth quarter of 2023. Refining throughput volumes averaged 3.0
million barrels per day in the fourth quarter of 2024.
“2024 was our best year for personnel and process safety and one
of our best years for environmental performance,” said Lane Riggs,
Valero’s Chairman, Chief Executive Officer and President. “This is
a testament to our long-standing commitment to safe, reliable and
environmentally responsible operations.”
Renewable Diesel
The Renewable Diesel segment, which consists of the Diamond
Green Diesel joint venture (DGD), reported $170 million of
operating income for the fourth quarter of 2024, compared to $84
million for the fourth quarter of 2023. Segment sales volumes
averaged 3.4 million gallons per day in the fourth quarter of
2024.
Ethanol
The Ethanol segment reported $20 million of operating income for
the fourth quarter of 2024, compared to $190 million for the fourth
quarter of 2023. Ethanol production volumes averaged 4.6 million
gallons per day in the fourth quarter of 2024.
Corporate and Other
General and administrative expenses were $266 million in the
fourth quarter of 2024 and $961 million for the year. The effective
tax rate for 2024 was 19 percent.
Investing and Financing Activities
Net cash provided by operating activities was $1.1 billion in
the fourth quarter of 2024. Included in this amount was $119
million of adjusted net cash provided by operating activities
associated with the other joint venture member’s share of DGD.
Excluding this item, adjusted net cash provided by operating
activities was $951 million in the fourth quarter of 2024.
Net cash provided by operating activities in 2024 was $6.7
billion. Included in this amount was a $795 million favorable
impact from working capital and $371 million of adjusted net cash
provided by operating activities associated with the other joint
venture member’s share of DGD. Excluding these items, adjusted net
cash provided by operating activities in 2024 was $5.5 billion.
Capital investments totaled $547 million in the fourth quarter
of 2024, of which $452 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 $515
million in the fourth quarter of 2024 and $1.9 billion for the
year.
Valero returned $601 million to stockholders in the fourth
quarter of 2024, of which $339 million was paid as dividends and
$262 million was for the purchase of approximately 2.0 million
shares of common stock, resulting in a payout ratio of 63 percent
of adjusted net cash provided by operating activities. In 2024,
Valero returned $4.3 billion to stockholders, or 78 percent of
adjusted net cash provided by operating activities, consisting of
$2.9 billion in stock buybacks and $1.4 billion in dividends.
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 January 16, 2025, Valero announced an increase of its
quarterly cash dividend on common stock from $1.07 per share to
$1.13 per share, demonstrating its strong financial position.
“Our team continues to successfully execute a strategy
underpinned by operational excellence, deploying capital with an
uncompromising focus on returns, and honoring our commitment to
stockholders,” said Riggs.
Liquidity and Financial Position
Valero ended 2024 with $8.1 billion of total debt, $2.4 billion
of finance lease obligations, and $4.7 billion of cash and cash
equivalents. The debt to capitalization ratio, net of cash and cash
equivalents, was 17 percent as of December 31, 2024.
Strategic Update
The Sustainable Aviation Fuel (SAF) project at the DGD Port
Arthur plant was successfully completed in the fourth quarter of
2024 and is now fully operational, providing the plant the
optionality to upgrade approximately 50 percent of its current 470
million gallon renewable diesel annual production capacity to be
blended to SAF.
Valero is progressing with an FCC Unit optimization project at
the St. Charles Refinery that will enable the refinery to increase
the yield of high value products. The project is estimated to cost
$230 million and is expected to be completed in 2026.
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 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
produces low-carbon fuels including renewable diesel and
sustainable aviation fuel (SAF), with a production capacity of
approximately 1.2 billion gallons per year in the U.S. Gulf Coast
region. See our annual report on Form 10-K for more information on
SAF. Valero also owns 12 ethanol plants located in the U.S.
Mid-Continent region with a combined production capacity of
approximately 1.7 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 taxes or
penalties on profits, windfalls, or margins above a certain level,
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 (d) 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
December 31,
Year Ended December
31,
2024
2023
2024
2023
Statement of income data
Revenues
$
30,756
$
35,414
$
129,881
$
144,766
Cost of sales:
Cost of materials and other
27,926
31,267
116,516
123,087
Operating expenses (excluding depreciation
and amortization expense reflected below)
1,514
1,594
5,831
6,089
Depreciation and amortization expense
687
679
2,729
2,658
Total cost of sales
30,127
33,540
125,076
131,834
Other operating expenses (a)
4
15
44
33
General and administrative expenses
(excluding depreciation and amortization expense reflected
below)
266
295
961
998
Depreciation and amortization expense
11
11
45
43
Operating income
348
1,553
3,755
11,858
Other income, net (b)
110
145
499
502
Interest and debt expense, net of
capitalized interest
(135
)
(149
)
(556
)
(592
)
Income before income tax expense
(benefit)
323
1,549
3,698
11,768
Income tax expense (benefit) (c)
(34
)
331
692
2,619
Net income
357
1,218
3,006
9,149
Less: Net income attributable to
noncontrolling interests
76
16
236
314
Net income attributable to Valero Energy
Corporation stockholders
$
281
$
1,202
$
2,770
$
8,835
Earnings per common share
$
0.89
$
3.55
$
8.58
$
24.93
Weighted-average common shares outstanding
(in millions)
315
337
322
353
Earnings per common share – assuming
dilution
$
0.88
$
3.55
$
8.58
$
24.92
Weighted-average common shares outstanding
– assuming dilution (in millions)
316
338
322
353
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 December 31,
2024
Revenues:
Revenues from external customers
$
29,334
$
522
$
900
$
—
$
30,756
Intersegment revenues
2
724
214
(940
)
—
Total revenues
29,336
1,246
1,114
(940
)
30,756
Cost of sales:
Cost of materials and other
27,010
919
933
(936
)
27,926
Operating expenses (excluding depreciation
and amortization expense reflected below)
1,287
88
141
(2
)
1,514
Depreciation and amortization expense
598
69
20
—
687
Total cost of sales
28,895
1,076
1,094
(938
)
30,127
Other operating expenses
4
—
—
—
4
General and administrative expenses
(excluding depreciation and amortization expense reflected
below)
—
—
—
266
266
Depreciation and amortization expense
—
—
—
11
11
Operating income by segment
$
437
$
170
$
20
$
(279
)
$
348
Three months ended December 31,
2023
Revenues:
Revenues from external customers
$
33,546
$
833
$
1,035
$
—
$
35,414
Intersegment revenues
10
801
296
(1,107
)
—
Total revenues
33,556
1,634
1,331
(1,107
)
35,414
Cost of sales:
Cost of materials and other
30,003
1,407
973
(1,116
)
31,267
Operating expenses (excluding depreciation
and amortization expense reflected below)
1,376
84
132
2
1,594
Depreciation and amortization expense
600
59
21
(1
)
679
Total cost of sales
31,979
1,550
1,126
(1,115
)
33,540
Other operating expenses
—
—
15
—
15
General and administrative expenses
(excluding depreciation and amortization expense reflected
below)
—
—
—
295
295
Depreciation and amortization expense
—
—
—
11
11
Operating income by segment
$
1,577
$
84
$
190
$
(298
)
$
1,553
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
Year ended December 31, 2024
Revenues:
Revenues from external customers
$
123,853
$
2,410
$
3,618
$
—
$
129,881
Intersegment revenues
10
2,656
868
(3,534
)
—
Total revenues
123,863
5,066
4,486
(3,534
)
129,881
Cost of sales:
Cost of materials and other
112,538
3,944
3,558
(3,524
)
116,516
Operating expenses (excluding depreciation
and amortization expense reflected below)
4,946
350
536
(1
)
5,831
Depreciation and amortization expense
2,391
265
77
(4
)
2,729
Total cost of sales
119,875
4,559
4,171
(3,529
)
125,076
Other operating expenses (a)
17
—
27
—
44
General and administrative expenses
(excluding depreciation and amortization expense reflected
below)
—
—
—
961
961
Depreciation and amortization expense
—
—
—
45
45
Operating income by segment
$
3,971
$
507
$
288
$
(1,011
)
$
3,755
Year ended December 31, 2023
Revenues:
Revenues from external customers
$
136,470
$
3,823
$
4,473
$
—
$
144,766
Intersegment revenues
18
3,168
1,086
(4,272
)
—
Total revenues
136,488
6,991
5,559
(4,272
)
144,766
Cost of sales:
Cost of materials and other
117,401
5,550
4,395
(4,259
)
123,087
Operating expenses (excluding depreciation
and amortization expense reflected below)
5,208
358
515
8
6,089
Depreciation and amortization expense
2,351
231
80
(4
)
2,658
Total cost of sales
124,960
6,139
4,990
(4,255
)
131,834
Other operating expenses
17
—
16
—
33
General and administrative expenses
(excluding depreciation and amortization expense reflected
below)
—
—
—
998
998
Depreciation and amortization expense
—
—
—
43
43
Operating income by segment
$
11,511
$
852
$
553
$
(1,058
)
$
11,858
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
December 31,
Year Ended December
31,
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
$
281
$
1,202
$
2,770
$
8,835
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
)
Second-generation biofuel tax credit
(c)
(74
)
6
(53
)
24
Total adjustments
(74
)
6
(31
)
15
Adjusted net income attributable to Valero
Energy Corporation stockholders
$
207
$
1,208
$
2,739
$
8,850
Reconciliation of earnings per common
share – assuming dilution to adjusted earnings per
common share – assuming dilution
Earnings per common share – assuming
dilution
$
0.88
$
3.55
$
8.58
$
24.92
Adjustments:
Project liability adjustment (a)
—
—
0.07
—
Gain on early retirement of debt (b)
—
—
—
(0.02
)
Second-generation biofuel tax credit
(c)
(0.24
)
0.02
(0.17
)
0.06
Total adjustments
(0.24
)
0.02
(0.10
)
0.04
Adjusted earnings per common share –
assuming dilution
$
0.64
$
3.57
$
8.48
$
24.96
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
(d)
(millions of dollars)
(unaudited)
Three Months Ended
December 31,
Year Ended December
31,
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
$
437
$
1,577
$
3,971
$
11,511
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
1,287
1,376
4,946
5,208
Depreciation and amortization expense
598
600
2,391
2,351
Other operating expenses
4
—
17
17
Refining margin
$
2,326
$
3,553
$
11,325
$
19,087
Refining operating income
$
437
$
1,577
$
3,971
$
11,511
Adjustment: Other operating expenses
4
—
17
17
Adjusted Refining operating income
$
441
$
1,577
$
3,988
$
11,528
Renewable Diesel segment
Renewable Diesel operating income
$
170
$
84
$
507
$
852
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
88
84
350
358
Depreciation and amortization expense
69
59
265
231
Renewable Diesel margin
$
327
$
227
$
1,122
$
1,441
Ethanol segment
Ethanol operating income
$
20
$
190
$
288
$
553
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
141
132
536
515
Depreciation and amortization expense
20
21
77
80
Other operating expenses (a)
—
15
27
16
Ethanol margin
$
181
$
358
$
928
$
1,164
Ethanol operating income
$
20
$
190
$
288
$
553
Adjustment: Other operating expenses
(a)
—
15
27
16
Adjusted Ethanol operating income
$
20
$
205
$
315
$
569
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
(d)
(millions of dollars)
(unaudited)
Three Months Ended
December 31,
Year Ended December
31,
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) (e)
U.S. Gulf Coast region
Refining operating income
$
314
$
858
$
2,426
$
6,853
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
719
716
2,744
2,837
Depreciation and amortization expense
375
377
1,495
1,459
Other operating expenses
4
—
12
11
Refining margin
$
1,412
$
1,951
$
6,677
$
11,160
Refining operating income
$
314
$
858
$
2,426
$
6,853
Adjustment: Other operating expenses
4
—
12
11
Adjusted Refining operating income
$
318
$
858
$
2,438
$
6,864
U.S. Mid-Continent region
Refining operating income
$
30
$
120
$
449
$
1,627
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
194
197
753
766
Depreciation and amortization expense
79
84
333
334
Other operating expenses
—
—
3
—
Refining margin
$
303
$
401
$
1,538
$
2,727
Refining operating income
$
30
$
120
$
449
$
1,627
Adjustment: Other operating expenses
—
—
3
—
Adjusted Refining operating income
$
30
$
120
$
452
$
1,627
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
(d)
(millions of dollars)
(unaudited)
Three Months Ended
December 31,
Year Ended December
31,
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) (e) (continued)
North Atlantic region
Refining operating income
$
233
$
579
$
1,162
$
2,131
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
169
204
698
751
Depreciation and amortization expense
70
63
268
255
Other operating expenses
—
—
1
1
Refining margin
$
472
$
846
$
2,129
$
3,138
Refining operating income
$
233
$
579
$
1,162
$
2,131
Adjustment: Other operating expenses
—
—
1
1
Adjusted Refining operating income
$
233
$
579
$
1,163
$
2,132
U.S. West Coast region
Refining operating income (loss)
$
(140
)
$
20
$
(66
)
$
900
Adjustments:
Operating expenses (excluding depreciation
and amortization expense reflected below)
205
259
751
854
Depreciation and amortization expense
74
76
295
303
Other operating expenses
—
—
1
5
Refining margin
$
139
$
355
$
981
$
2,062
Refining operating income (loss)
$
(140
)
$
20
$
(66
)
$
900
Adjustment: Other operating expenses
—
—
1
5
Adjusted Refining operating income
(loss)
$
(140
)
$
20
$
(65
)
$
905
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
December 31,
Year Ended December
31,
2024
2023
2024
2023
Throughput volumes (thousand barrels
per day)
Feedstocks:
Heavy sour crude oil
608
485
504
449
Medium/light sour crude oil
239
272
241
307
Sweet crude oil
1,508
1,517
1,501
1,496
Residuals
126
171
165
199
Other feedstocks
104
106
113
115
Total feedstocks
2,585
2,551
2,524
2,566
Blendstocks and other
410
444
388
413
Total throughput volumes
2,995
2,995
2,912
2,979
Yields (thousand barrels per
day)
Gasolines and blendstocks
1,494
1,489
1,433
1,461
Distillates
1,141
1,128
1,103
1,126
Other products (f)
393
404
406
420
Total yields
3,028
3,021
2,942
3,007
Operating statistics (d) (g)
Refining margin
$
2,326
$
3,553
$
11,325
$
19,087
Adjusted Refining operating income
$
441
$
1,577
$
3,988
$
11,528
Throughput volumes (thousand barrels per
day)
2,995
2,995
2,912
2,979
Refining margin per barrel of
throughput
$
8.44
$
12.89
$
10.62
$
17.55
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per barrel of
throughput
4.67
4.99
4.64
4.79
Depreciation and amortization expense per
barrel of throughput
2.17
2.18
2.24
2.16
Adjusted Refining operating income per
barrel of throughput
$
1.60
$
5.72
$
3.74
$
10.60
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
December 31,
Year Ended December
31,
2024
2023
2024
2023
Operating statistics (d) (g)
Renewable Diesel margin
$
327
$
227
$
1,122
$
1,441
Renewable Diesel operating income
$
170
$
84
$
507
$
852
Sales volumes (thousand gallons per
day)
3,356
3,773
3,530
3,539
Renewable Diesel margin per gallon of
sales
$
1.06
$
0.65
$
0.87
$
1.12
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per gallon of sales
0.28
0.24
0.27
0.28
Depreciation and amortization expense per
gallon of sales
0.23
0.17
0.21
0.18
Renewable Diesel operating income per
gallon of sales
$
0.55
$
0.24
$
0.39
$
0.66
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
December 31,
Year Ended December
31,
2024
2023
2024
2023
Operating statistics (d) (g)
Ethanol margin
$
181
$
358
$
928
$
1,164
Adjusted Ethanol operating income
$
20
$
205
$
315
$
569
Production volumes (thousand gallons per
day)
4,627
4,510
4,538
4,367
Ethanol margin per gallon of
production
$
0.42
$
0.86
$
0.56
$
0.73
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per gallon of
production
0.33
0.32
0.32
0.32
Depreciation and amortization expense per
gallon of production
0.04
0.05
0.05
0.05
Adjusted Ethanol operating income per
gallon of production
$
0.05
$
0.49
$
0.19
$
0.36
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
December 31,
Year Ended December
31,
2024
2023
2024
2023
Operating statistics by region
(e)
U.S. Gulf Coast region (d) (g)
Refining margin
$
1,412
$
1,951
$
6,677
$
11,160
Adjusted Refining operating income
$
318
$
858
$
2,438
$
6,864
Throughput volumes (thousand barrels per
day)
1,829
1,816
1,763
1,791
Refining margin per barrel of
throughput
$
8.39
$
11.69
$
10.35
$
17.07
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per barrel of
throughput
4.27
4.29
4.25
4.34
Depreciation and amortization expense per
barrel of throughput
2.23
2.26
2.32
2.23
Adjusted Refining operating income per
barrel of throughput
$
1.89
$
5.14
$
3.78
$
10.50
U.S. Mid-Continent region (d)
(g)
Refining margin
$
303
$
401
$
1,538
$
2,727
Adjusted Refining operating income
$
30
$
120
$
452
$
1,627
Throughput volumes (thousand barrels per
day)
473
462
445
461
Refining margin per barrel of
throughput
$
6.97
$
9.42
$
9.44
$
16.20
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per barrel of
throughput
4.47
4.62
4.62
4.55
Depreciation and amortization expense per
barrel of throughput
1.81
1.99
2.05
1.98
Adjusted Refining operating income per
barrel of throughput
$
0.69
$
2.81
$
2.77
$
9.67
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
December 31,
Year Ended December
31,
2024
2023
2024
2023
Operating statistics by region (e)
(continued)
North Atlantic region (d) (g)
Refining margin
$
472
$
846
$
2,129
$
3,138
Adjusted Refining operating income
$
233
$
579
$
1,163
$
2,132
Throughput volumes (thousand barrels per
day)
434
452
443
460
Refining margin per barrel of
throughput
$
11.85
$
20.36
$
13.12
$
18.69
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per barrel of
throughput
4.24
4.90
4.30
4.47
Depreciation and amortization expense per
barrel of throughput
1.78
1.51
1.65
1.52
Adjusted Refining operating income per
barrel of throughput
$
5.83
$
13.95
$
7.17
$
12.70
U.S. West Coast region (d) (g)
Refining margin
$
139
$
355
$
981
$
2,062
Adjusted Refining operating income
(loss)
$
(140
)
$
20
$
(65
)
$
905
Throughput volumes (thousand barrels per
day)
259
265
261
267
Refining margin per barrel of
throughput
$
5.80
$
14.51
$
10.26
$
21.15
Less:
Operating expenses (excluding depreciation
and amortization expense reflected below) per barrel of
throughput
8.60
10.60
7.86
8.76
Depreciation and amortization expense per
barrel of throughput
3.09
3.10
3.08
3.11
Adjusted Refining operating income (loss)
per barrel of throughput
$
(5.89
)
$
0.81
$
(0.68
)
$
9.28
See Notes to Earnings Release
Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
AVERAGE MARKET REFERENCE
PRICES AND DIFFERENTIALS
(unaudited)
Three Months Ended
December 31,
Year Ended December
31,
2024
2023
2024
2023
Refining
Feedstocks (dollars per barrel)
Brent crude oil
$
73.98
$
82.72
$
79.79
$
82.27
Brent less West Texas Intermediate (WTI)
crude oil
3.62
4.36
3.95
4.60
Brent less WTI Houston crude oil
2.31
3.04
2.48
3.15
Brent less Dated Brent crude oil
(0.71
)
(1.43
)
(0.91
)
(0.44
)
Brent less Argus Sour Crude Index crude
oil
4.16
4.79
4.33
5.34
Brent less Maya crude oil
10.75
10.83
11.43
13.33
Brent less Western Canadian Select Houston
crude oil
8.34
12.01
10.36
12.15
WTI crude oil
70.36
78.36
75.84
77.67
Natural gas (dollars per million
British thermal units)
2.14
2.27
1.88
2.23
Renewable volume obligation (RVO)
(dollars per barrel) (h)
4.04
4.77
3.75
7.02
Product margins (RVO adjusted unless
otherwise noted) (dollars per barrel)
U.S. Gulf Coast:
Conventional Blendstock for Oxygenate
Blending (CBOB) gasoline less Brent
1.86
(2.41
)
6.06
8.83
Ultra-low-sulfur (ULS) diesel less
Brent
12.41
24.47
15.76
25.06
Propylene less Brent (not RVO
adjusted)
(29.18
)
(50.92
)
(37.42
)
(47.47
)
U.S. Mid-Continent:
CBOB gasoline less WTI
5.46
4.05
10.48
17.70
ULS diesel less WTI
14.63
33.10
17.87
32.37
North Atlantic:
CBOB gasoline less Brent
7.07
5.57
11.08
15.61
ULS diesel less Brent
15.10
33.31
18.32
29.47
U.S. West Coast:
California Reformulated Gasoline
Blendstock for Oxygenate Blending 87 gasoline less Brent
10.94
15.13
21.58
28.45
California Air Resources Board diesel less
Brent
16.61
36.88
18.89
32.79
See Notes to Earnings Release
Tables.
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
AVERAGE MARKET REFERENCE
PRICES AND DIFFERENTIALS
(unaudited)
Three Months Ended
December 31,
Year Ended December
31,
2024
2023
2024
2023
Renewable Diesel
New York Mercantile Exchange ULS diesel
(dollars per gallon)
$
2.23
$
2.85
$
2.44
$
2.81
Biodiesel Renewable Identification Number
(RIN) (dollars per RIN)
0.66
0.84
0.59
1.35
California Low-Carbon Fuel Standard carbon
credit (dollars per metric ton)
72.27
68.71
60.19
72.42
U.S. Gulf Coast (USGC) used cooking oil
(dollars per pound)
0.45
0.47
0.43
0.58
USGC distillers corn oil (dollars per
pound)
0.48
0.57
0.48
0.63
USGC fancy bleachable tallow (dollars per
pound)
0.45
0.52
0.44
0.59
Ethanol
Chicago Board of Trade corn (dollars per
bushel)
4.27
4.75
4.24
5.65
New York Harbor ethanol (dollars per
gallon)
1.70
2.12
1.79
2.34
VALERO ENERGY
CORPORATION
EARNINGS RELEASE
TABLES
OTHER FINANCIAL DATA
(millions of dollars)
(unaudited)
December 31,
2024
2023
Balance sheet data
Current assets
$
23,737
$
26,221
Cash and cash equivalents included in
current assets
4,657
5,424
Inventories included in current assets
7,761
7,583
Current liabilities
15,495
16,802
Valero Energy Corporation stockholders’
equity
24,512
26,346
Total equity
27,521
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)
7,586
8,021
Total debt (excluding VIEs)
8,027
8,188
Current portion of debt attributable to
VIEs
58
1,030
Debt, less current portion of debt
attributable to VIEs
—
—
Total debt attributable to VIEs
58
1,030
Total debt
8,085
9,218
Finance lease obligations –
Current portion of finance lease
obligations (excluding VIEs)
217
183
Finance lease obligations, less current
portion (excluding VIEs)
1,492
1,428
Total finance lease obligations (excluding
VIEs)
1,709
1,611
Current portion of finance lease
obligations attributable to VIEs
27
26
Finance lease obligations, less current
portion attributable to VIEs
642
669
Total finance lease obligations
attributable to VIEs
669
695
Total finance lease obligations
2,378
2,306
Total debt and finance lease
obligations
$
10,463
$
11,524
Three Months Ended
December 31,
Year Ended December
31,
2024
2023
2024
2023
Reconciliation of net cash provided by
operating activities to adjusted net cash provided by
operating activities (d)
Net cash provided by operating
activities
$
1,070
$
1,239
$
6,683
$
9,229
Exclude:
Changes in current assets and current
liabilities
—
(631
)
795
(2,326
)
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
119
65
371
512
Adjusted net cash provided by operating
activities
$
951
$
1,805
$
5,517
$
11,043
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
December 31,
Year Ended December
31,
2024
2023
2024
2023
Reconciliation of capital investments
to capital investments attributable to Valero (d)
Capital expenditures (excluding VIEs)
$
250
$
197
$
649
$
665
Capital expenditures of VIEs:
DGD
52
52
250
235
Other VIEs
1
7
8
11
Deferred turnaround and catalyst cost
expenditures (excluding VIEs)
235
281
1,079
946
Deferred turnaround and catalyst cost
expenditures of DGD
9
3
71
59
Capital investments
547
540
2,057
1,916
Adjustments:
DGD’s capital investments attributable to
the other joint venture member
(31
)
(27
)
(161
)
(147
)
Capital expenditures of other VIEs
(1
)
(7
)
(8
)
(11
)
Capital investments attributable to
Valero
$
515
$
506
$
1,888
$
1,758
Dividends per common share
$
1.07
$
1.02
$
4.28
$
4.08
Year Ending December
31, 2025
Reconciliation of expected capital
investments to
expected capital investments
attributable to Valero (d)
Expected capital investments
$
2,060
Adjustment: DGD’s capital investments
attributable to the
other joint venture member
(110
)
Expected capital investments attributable
to Valero
$
1,950
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 year ended December 31, 2024 related to our obligation to
Navigator.
(b)
“Other income, net” includes a net gain of
$11 million in the year ended December 31, 2023 related to the
early retirement of $199 million aggregate principal amount of
various series of our senior notes.
(c)
Under current tax law, producers of
second-generation biofuels that are registered with the Internal
Revenue Service (IRS) are eligible for an income tax credit of up
to $1.01 per gallon of qualified biofuel that was produced and sold
in the U.S. through December 31, 2024. The benefit of the tax
credit is recognized as a reduction of the producer’s income tax
expense.
In December 2024, the IRS approved our
application for registration as a producer of second-generation
biofuels with respect to the cellulosic ethanol produced at our
ethanol plants. As a result, “income tax expense (benefit)” for the
three months and year ended December 31, 2024 includes a current
income tax benefit of $79 million for the tax credit attributable
to volumes of cellulosic ethanol produced and sold by us in the
U.S. from 2020 through 2024. The $79 million income tax benefit
recognized in December 2024 is attributable to the following
periods (in millions):
Periods to which second-generation
biofuel tax credit is attributable
2024 tax credit:
Nine months ended September 30, 2024
$
21
Three months ended December 31, 2024
5
Total 2024 tax credit
26
2023 tax credit:
Nine months ended September 30, 2023
18
Three months ended December 31, 2023
6
Total 2023 tax credit
24
2020 through 2022 tax credits
29
Total recognized in 2024
$
79
(d)
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.
– Second-generation biofuel tax
credit – The income tax benefit from the second-generation biofuel
tax credit recognized by us in December 2024 is attributable to
volumes produced and sold from 2020 through 2024 (see note (c)).
Therefore, the adjustment reflects the portion of the credit that
is attributable to volumes produced and sold in other periods as
follows (in millions):
Three Months Ended
December 31,
Year Ended December
31,
2024
2023
2024
2023
Tax credit attributable to volumes
produced and sold during the period
$
5
$
6
$
26
$
24
Less:
Total recognized in 2024
79
—
79
—
Adjustment to reflect tax credit in the
proper period
$
(74
)
$
6
$
(53
)
$
24
- 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 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
December 31,
Year Ended December
31,
2024
2023
2024
2023
DGD operating cash flow data
Net cash provided by operating
activities
$
352
$
50
$
889
$
537
Exclude: Changes in current assets and
current liabilities
116
(80
)
148
(488
)
Adjusted net cash provided by operating
activities
236
130
741
1,025
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
$
119
$
65
$
371
$
512
- 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.
(e)
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.
(f)
Primarily includes petrochemicals, gas
oils, No. 6 fuel oil, petroleum coke, sulfur, and asphalt.
(g)
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.
(h)
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/20250129852767/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
Valero Energy (NYSE:VLO)
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