Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net
income attributable to Valero stockholders of $612 million, or
$1.47 per share, for the second quarter of 2019 compared to $845
million, or $1.96 per share, for the second quarter of 2018.
Excluding adjustments shown in the accompanying earnings release
tables, second quarter 2019 adjusted net income attributable to
Valero stockholders was $629 million, or $1.51 per share, compared
to second quarter 2018 adjusted net income attributable to Valero
stockholders of $928 million, or $2.15 per share.
“We had solid operating performance while also
completing major turnarounds at our Memphis, Houston and Benicia
refineries in the second quarter,” said Joe Gorder, Valero
Chairman, President and Chief Executive Officer. “In addition, we
successfully commissioned the new alkylation unit at the Houston
refinery to improve our margin capture going forward.”
RefiningThe refining segment
reported $1.0 billion of operating income for the second quarter of
2019 compared to $1.4 billion for the second quarter of 2018.
The decrease was primarily driven by narrower discounts for
medium and heavy sour crude oils relative to Brent crude oil.
“We saw a strong rebound in gasoline cracks in
all regions in the second quarter,” Gorder said. “We continue to
optimize our system with domestic, Canadian and Latin American
crudes, and we set a new record of over 190,000 barrels per day of
Canadian heavy crude oil processed during the quarter.”
Refinery throughput capacity utilization was 94
percent, with throughput volumes averaging 3.0 million barrels
per day in the second quarter of 2019, which was 70,000 barrels per
day higher than the second quarter of 2018. The company
exported a total of 344,000 barrels per day of gasoline and
distillate during the second quarter of 2019.
EthanolThe ethanol segment
reported $7 million of operating income for the second quarter of
2019 compared to $43 million for the second quarter of 2018.
The decrease in operating income was attributed primarily to higher
corn prices. Ethanol production volumes averaged
4.5 million gallons per day in the second quarter of 2019, an
increase of 531,000 gallons per day versus the second quarter of
2018, which was largely due to added production from the three
ethanol plants acquired in November 2018.
Renewable Diesel The renewable
diesel segment reported $77 million of operating income for the
second quarter of 2019 compared to $30 million for the second
quarter of 2018. Renewable diesel sales volumes averaged
769,000 gallons per day in the second quarter of 2019, an increase
of 387,000 gallons per day versus the second quarter of 2018. The
increases in operating income and sales volumes were attributed
primarily to the expansion of the Diamond Green Diesel plant in the
third quarter of 2018.
Corporate and OtherGeneral and
administrative expenses were $199 million in the second
quarter of 2019 compared to $248 million in the second quarter of
2018. The decrease was mainly due to environmental reserve
adjustments recorded in the second quarter of 2018. The
effective tax rate for the second quarter of 2019 was 20 percent,
compared to 22 percent for the second quarter of 2018.
Investing and Financing
ActivitiesCapital investments totaled $740 million in
the second quarter of 2019, of which $514 million was for
sustaining the business, including costs for turnarounds, catalysts
and regulatory compliance.
Valero returned $588 million to stockholders in
the second quarter of 2019, of which $376 million was paid as
dividends and $212 million was for the purchase of approximately
2.6 million shares of common stock, resulting in a year-to-date
return of $1.0 billion to stockholders and a total payout ratio of
50 percent of adjusted net cash provided by operating
activities.
Net cash provided by operating activities was
$1.5 billion in the second quarter of 2019. Included in this
amount is a $283 million favorable impact from working capital.
Excluding the change in working capital, adjusted net cash provided
by operating activities was $1.2 billion.
Valero continues to target a total payout ratio
between 40 and 50 percent of adjusted net cash provided by
operating activities for 2019. Valero defines total payout
ratio as the sum of dividends and stock buybacks divided by net
cash provided by operating activities adjusted for changes in
working capital.
Liquidity and Financial
PositionValero ended the second quarter of 2019 with
$9.5 billion of total debt and $2.0 billion of cash and
cash equivalents. The debt to capital ratio, net of $2.0
billion in cash, was 26 percent.
Strategic UpdateThe Houston
alkylation unit was successfully commissioned in the second quarter
of 2019. This project upgrades isobutane and refinery olefins
into high value alkylate product. The Central Texas pipelines
and terminals project is on target to be fully operational in the
third quarter. Other projects, including the Pasadena
terminal, St. Charles alkylation unit, and Pembroke cogeneration
unit, remain on track to be complete in 2020. The Diamond
Green Diesel expansion and Port Arthur Coker are expected to be
complete in late 2021 and 2022, respectively.
Valero continues to expect to invest
approximately $2.5 billion of capital in both 2019 and 2020, of
which approximately 60 percent is for sustaining the business and
approximately 40 percent is for growth projects.
Conference CallValero’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
an international manufacturer and marketer of transportation fuels
and petrochemical products. Valero is a Fortune 50 company
based in San Antonio, Texas, and it operates 15 petroleum
refineries with a combined throughput capacity of approximately 3.1
million barrels per day and 14 ethanol plants with a combined
production capacity of 1.73 billion gallons per year. The petroleum
refineries are located in the United States (U.S.), Canada and the
United Kingdom (U.K.), and the ethanol plants are located in the
Mid-Continent region of the U.S. Valero also is a joint venture
partner in Diamond Green Diesel, which operates a renewable diesel
plant in Norco, Louisiana. Diamond Green Diesel is North America’s
largest biomass-based diesel plant. Valero sells its products in
the wholesale rack or bulk markets in the U.S., Canada, the U.K.,
Ireland and Latin America. Approximately 7,000 outlets carry
Valero’s brand names. Please visit www.valero.com for more
information.
Valero ContactsInvestors:Homer
Bhullar, Vice President – Investor Relations, 210-345-1982Gautam
Srivastava, Manager – Investor Relations, 210-345-3992Tom Mahrer,
Manager – Investor Relations, 210-345-1953
Media:Lillian Riojas, Executive Director – Media
Relations and Communications, 210-345-5002
Safe-Harbor StatementStatements
contained in this release that state the company’s or management’s
expectations or predictions of the future are forward-looking
statements intended to be covered by the safe harbor provisions of
the Securities Act of 1933 and the Securities Exchange Act of
1934. The words “believe,” “expect,” “should,” “estimates,”
“intend,” “target,” “will,” “plans,” and other similar expressions
identify forward-looking statements. 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 the company’s control, such as delays in
construction timing and other factors. For more information
concerning factors that could cause actual results to differ from
those expressed or forecasted, see Valero’s annual reports on Form
10-K, quarterly reports on Form 10-Q, and other reports filed with
the Securities and Exchange Commission and on Valero’s website at
www.valero.com.
Use of Non-GAAP Financial
InformationThis 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, ethanol
margin, renewable diesel margin, adjusted refining operating
income, adjusted ethanol operating income, adjusted renewable
diesel operating income, and adjusted net cash provided by
operating activities. These non-GAAP financial measures have
been included to help facilitate the comparison of operating
results between periods. See the accompanying earnings
release tables for a reconciliation of non-GAAP measures to their
most directly comparable U.S. GAAP measures. Note (f) to the
earnings release tables provides reasons for the use of these
non-GAAP financial measures.
VALERO ENERGY CORPORATIONEARNINGS RELEASE
TABLESFINANCIAL
HIGHLIGHTS(millions of dollars, except per share
amounts)(unaudited) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Statement of income
data |
|
|
|
|
|
|
|
Revenues |
$ |
28,933 |
|
|
$ |
31,015 |
|
|
$ |
53,196 |
|
|
$ |
57,454 |
|
Cost of sales: |
|
|
|
|
|
|
|
Cost of materials and other (a) |
26,083 |
|
|
27,860 |
|
|
48,061 |
|
|
51,616 |
|
Operating expenses (excluding depreciation and amortization expense
reflected below) |
1,175 |
|
|
1,110 |
|
|
2,390 |
|
|
2,246 |
|
Depreciation and amortization expense |
552 |
|
|
510 |
|
|
1,089 |
|
|
995 |
|
Total cost of sales |
27,810 |
|
|
29,480 |
|
|
51,540 |
|
|
54,857 |
|
Other operating expenses (b) |
2 |
|
|
21 |
|
|
4 |
|
|
31 |
|
General and administrative expenses (excluding depreciation and
amortization expense reflected below) (c) |
199 |
|
|
248 |
|
|
408 |
|
|
486 |
|
Depreciation and amortization expense |
14 |
|
|
13 |
|
|
28 |
|
|
26 |
|
Operating income |
908 |
|
|
1,253 |
|
|
1,216 |
|
|
2,054 |
|
Other income (expense), net (d) |
12 |
|
|
(5 |
) |
|
34 |
|
|
46 |
|
Interest and debt expense, net of capitalized interest |
(112 |
) |
|
(124 |
) |
|
(224 |
) |
|
(245 |
) |
Income before income tax expense |
808 |
|
|
1,124 |
|
|
1,026 |
|
|
1,855 |
|
Income tax expense |
160 |
|
|
249 |
|
|
211 |
|
|
398 |
|
Net income |
648 |
|
|
875 |
|
|
815 |
|
|
1,457 |
|
Less: Net income attributable to noncontrolling interests (a) |
36 |
|
|
30 |
|
|
62 |
|
|
143 |
|
Net income attributable to Valero Energy Corporation
stockholders |
$ |
612 |
|
|
$ |
845 |
|
|
$ |
753 |
|
|
$ |
1,314 |
|
|
|
|
|
|
|
|
|
Earnings per common
share |
$ |
1.47 |
|
|
$ |
1.96 |
|
|
$ |
1.80 |
|
|
$ |
3.05 |
|
Weighted-average common shares outstanding (in millions) |
415 |
|
|
429 |
|
|
416 |
|
|
430 |
|
|
|
|
|
|
|
|
|
Earnings per common
share – assuming dilution |
$ |
1.47 |
|
|
$ |
1.96 |
|
|
$ |
1.80 |
|
|
$ |
3.04 |
|
Weighted-average common shares outstanding – assuming dilution (in
millions) |
417 |
|
|
431 |
|
|
417 |
|
|
432 |
|
See Notes to Earnings Release Tables.
VALERO
ENERGY CORPORATIONEARNINGS RELEASE
TABLESFINANCIAL HIGHLIGHTS BY SEGMENT
(e)(millions of
dollars)(unaudited) |
|
Refining |
|
Ethanol |
|
RenewableDiesel |
|
CorporateandEliminations |
|
Total |
Three months ended
June 30, 2019 |
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Revenues from external customers |
$ |
27,746 |
|
|
$ |
964 |
|
|
$ |
222 |
|
|
$ |
1 |
|
|
$ |
28,933 |
|
Intersegment revenues |
8 |
|
|
53 |
|
|
73 |
|
|
(134 |
) |
|
— |
|
Total revenues |
27,754 |
|
|
1,017 |
|
|
295 |
|
|
(133 |
) |
|
28,933 |
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
Cost of materials and other |
25,172 |
|
|
855 |
|
|
189 |
|
|
(133 |
) |
|
26,083 |
|
Operating expenses (excluding depreciation and amortization expense
reflected below) |
1,026 |
|
|
132 |
|
|
17 |
|
|
— |
|
|
1,175 |
|
Depreciation and amortization expense |
518 |
|
|
22 |
|
|
12 |
|
|
— |
|
|
552 |
|
Total cost of sales |
26,716 |
|
|
1,009 |
|
|
218 |
|
|
(133 |
) |
|
27,810 |
|
Other operating expenses |
1 |
|
|
1 |
|
|
— |
|
|
— |
|
|
2 |
|
General and administrative expenses (excluding depreciation and
amortization expense reflected below) |
— |
|
|
— |
|
|
— |
|
|
199 |
|
|
199 |
|
Depreciation and amortization expense |
— |
|
|
— |
|
|
— |
|
|
14 |
|
|
14 |
|
Operating income by segment |
$ |
1,037 |
|
|
$ |
7 |
|
|
$ |
77 |
|
|
$ |
(213 |
) |
|
$ |
908 |
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2018 |
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Revenues from external customers |
$ |
30,024 |
|
|
$ |
884 |
|
|
$ |
106 |
|
|
$ |
1 |
|
|
$ |
31,015 |
|
Intersegment revenues |
11 |
|
|
42 |
|
|
46 |
|
|
(99 |
) |
|
— |
|
Total revenues |
30,035 |
|
|
926 |
|
|
152 |
|
|
(98 |
) |
|
31,015 |
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
Cost of materials and other |
27,103 |
|
|
754 |
|
|
102 |
|
|
(99 |
) |
|
27,860 |
|
Operating expenses (excluding depreciation and amortization expense
reflected below) |
988 |
|
|
109 |
|
|
13 |
|
|
— |
|
|
1,110 |
|
Depreciation and amortization expense |
483 |
|
|
20 |
|
|
7 |
|
|
— |
|
|
510 |
|
Total cost of sales |
28,574 |
|
|
883 |
|
|
122 |
|
|
(99 |
) |
|
29,480 |
|
Other operating expenses (b) |
21 |
|
|
— |
|
|
— |
|
|
— |
|
|
21 |
|
General and administrative expenses (excluding depreciation and
amortization expense reflected below) (c) |
— |
|
|
— |
|
|
— |
|
|
248 |
|
|
248 |
|
Depreciation and amortization expense |
— |
|
|
— |
|
|
— |
|
|
13 |
|
|
13 |
|
Operating income by segment |
$ |
1,440 |
|
|
$ |
43 |
|
|
$ |
30 |
|
|
$ |
(260 |
) |
|
$ |
1,253 |
|
See Operating Highlights by Segment.See Notes to
Earnings Release Tables.
VALERO
ENERGY CORPORATIONEARNINGS RELEASE
TABLESFINANCIAL HIGHLIGHTS BY SEGMENT
(e)(millions of
dollars)(unaudited) |
|
Refining |
|
Ethanol |
|
RenewableDiesel |
|
CorporateandEliminations |
|
Total |
Six months ended June
30, 2019 |
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Revenues from external customers |
$ |
50,964 |
|
|
$ |
1,757 |
|
|
$ |
474 |
|
|
$ |
1 |
|
|
$ |
53,196 |
|
Intersegment revenues |
10 |
|
|
105 |
|
|
124 |
|
|
(239 |
) |
|
— |
|
Total revenues |
50,974 |
|
|
1,862 |
|
|
598 |
|
|
(238 |
) |
|
53,196 |
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
Cost of materials and other |
46,337 |
|
|
1,549 |
|
|
413 |
|
|
(238 |
) |
|
48,061 |
|
Operating expenses (excluding depreciation and amortization expense
reflected below) |
2,097 |
|
|
257 |
|
|
36 |
|
|
— |
|
|
2,390 |
|
Depreciation and amortization expense |
1,021 |
|
|
45 |
|
|
23 |
|
|
— |
|
|
1,089 |
|
Total cost of sales |
49,455 |
|
|
1,851 |
|
|
472 |
|
|
(238 |
) |
|
51,540 |
|
Other operating expenses |
3 |
|
|
1 |
|
|
— |
|
|
— |
|
|
4 |
|
General and administrative expenses (excluding depreciation and
amortization expense reflected below) |
— |
|
|
— |
|
|
— |
|
|
408 |
|
|
408 |
|
Depreciation and amortization expense |
— |
|
|
— |
|
|
— |
|
|
28 |
|
|
28 |
|
Operating income by segment |
$ |
1,516 |
|
|
$ |
10 |
|
|
$ |
126 |
|
|
$ |
(436 |
) |
|
$ |
1,216 |
|
|
|
|
|
|
|
|
|
|
|
Six months ended June
30, 2018 |
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Revenues from external customers |
$ |
55,477 |
|
|
$ |
1,761 |
|
|
$ |
214 |
|
|
$ |
2 |
|
|
$ |
57,454 |
|
Intersegment revenues |
15 |
|
|
88 |
|
|
88 |
|
|
(191 |
) |
|
— |
|
Total revenues |
55,492 |
|
|
1,849 |
|
|
302 |
|
|
(189 |
) |
|
57,454 |
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
Cost of materials and other (a) |
50,267 |
|
|
1,503 |
|
|
37 |
|
|
(191 |
) |
|
51,616 |
|
Operating expenses (excluding depreciation and amortization expense
reflected below) |
1,999 |
|
|
220 |
|
|
27 |
|
|
— |
|
|
2,246 |
|
Depreciation and amortization expense |
944 |
|
|
38 |
|
|
13 |
|
|
— |
|
|
995 |
|
Total cost of sales |
53,210 |
|
|
1,761 |
|
|
77 |
|
|
(191 |
) |
|
54,857 |
|
Other operating expenses (b) |
31 |
|
|
— |
|
|
— |
|
|
— |
|
|
31 |
|
General and administrative expenses (excluding depreciation and
amortization expense reflected below) (c) |
— |
|
|
— |
|
|
— |
|
|
486 |
|
|
486 |
|
Depreciation and amortization expense |
— |
|
|
— |
|
|
— |
|
|
26 |
|
|
26 |
|
Operating income by segment |
$ |
2,251 |
|
|
$ |
88 |
|
|
$ |
225 |
|
|
$ |
(510 |
) |
|
$ |
2,054 |
|
See Operating Highlights by Segment.See Notes to
Earnings Release Tables.
VALERO ENERGY CORPORATIONEARNINGS RELEASE
TABLESRECONCILIATION OF NON-GAAP MEASURES TO MOST
COMPARABLE AMOUNTSREPORTED UNDER U.S. GAAP
(f)(millions of dollars, except per share
amounts)(unaudited) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
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 |
$ |
612 |
|
|
$ |
845 |
|
|
$ |
753 |
|
|
$ |
1,314 |
|
Exclude adjustments: |
|
|
|
|
|
|
|
2017 blender’s tax credit attributable to Valero Energy Corporation
stockholders (a) |
— |
|
|
— |
|
|
— |
|
|
90 |
|
Income tax expense related to 2017 blender’s tax credit |
— |
|
|
— |
|
|
— |
|
|
(11 |
) |
2017 blender’s tax credit attributable to Valero Energy Corporation
stockholders, net of taxes |
— |
|
|
— |
|
|
— |
|
|
79 |
|
Texas City Refinery fire expenses (b) |
— |
|
|
(14 |
) |
|
— |
|
|
(14 |
) |
Income tax benefit related to Texas City Refinery fire
expenses |
— |
|
|
3 |
|
|
— |
|
|
3 |
|
Texas City Refinery fire expenses, net of taxes |
— |
|
|
(11 |
) |
|
— |
|
|
(11 |
) |
Environmental reserve adjustments (c) |
— |
|
|
(56 |
) |
|
— |
|
|
(108 |
) |
Income tax benefit related to environmental reserve
adjustments |
— |
|
|
13 |
|
|
— |
|
|
24 |
|
Environmental reserve adjustments, net of taxes |
— |
|
|
(43 |
) |
|
— |
|
|
(84 |
) |
Loss on early redemption of debt (d) |
(22 |
) |
|
(38 |
) |
|
(22 |
) |
|
(38 |
) |
Income tax benefit related to loss on early redemption of debt |
5 |
|
|
9 |
|
|
5 |
|
|
9 |
|
Loss on early redemption of debt, net of taxes |
(17 |
) |
|
(29 |
) |
|
(17 |
) |
|
(29 |
) |
Total adjustments |
(17 |
) |
|
(83 |
) |
|
(17 |
) |
|
(45 |
) |
Adjusted net income attributable to Valero Energy Corporation
stockholders |
$ |
629 |
|
|
$ |
928 |
|
|
$ |
770 |
|
|
$ |
1,359 |
|
|
|
|
|
|
|
|
|
Reconciliation of
earnings per common share – assuming dilution
to adjusted earnings per common share
– assuming dilution |
|
|
|
|
|
|
|
Earnings per common share – assuming dilution |
$ |
1.47 |
|
|
$ |
1.96 |
|
|
$ |
1.80 |
|
|
$ |
3.04 |
|
Exclude adjustments: |
|
|
|
|
|
|
|
2017 blender’s tax credit attributable to Valero Energy Corporation
stockholders (a) |
— |
|
|
— |
|
|
— |
|
|
0.18 |
|
Texas City Refinery fire expenses (b) |
— |
|
|
(0.02 |
) |
|
— |
|
|
(0.03 |
) |
Environmental reserve adjustments (c) |
— |
|
|
(0.10 |
) |
|
— |
|
|
(0.19 |
) |
Loss on early redemption of debt (d) |
(0.04 |
) |
|
(0.07 |
) |
|
(0.04 |
) |
|
(0.07 |
) |
Total adjustments |
(0.04 |
) |
|
(0.19 |
) |
|
(0.04 |
) |
|
(0.11 |
) |
Adjusted earnings per common share – assuming dilution |
$ |
1.51 |
|
|
$ |
2.15 |
|
|
$ |
1.84 |
|
|
$ |
3.15 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATIONEARNINGS RELEASE
TABLESRECONCILIATION OF NON-GAAP MEASURES TO MOST
COMPARABLE AMOUNTSREPORTED UNDER U.S. GAAP
(f)(millions of
dollars)(unaudited) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Reconciliation of
operating income by segment to
segment margin, and reconciliation of
operating income by segment to adjusted
operating income by segment |
|
|
|
|
|
|
|
Refining segment (e) |
|
|
|
|
|
|
|
Refining operating income |
$ |
1,037 |
|
|
$ |
1,440 |
|
|
$ |
1,516 |
|
|
$ |
2,251 |
|
Exclude: |
|
|
|
|
|
|
|
2017 blender’s tax credit (a) |
— |
|
|
— |
|
|
— |
|
|
10 |
|
Operating expenses (excluding depreciation and amortization expense
reflected below) |
(1,026 |
) |
|
(988 |
) |
|
(2,097 |
) |
|
(1,999 |
) |
Depreciation and amortization expense |
(518 |
) |
|
(483 |
) |
|
(1,021 |
) |
|
(944 |
) |
Other operating expenses (b) |
(1 |
) |
|
(21 |
) |
|
(3 |
) |
|
(31 |
) |
Refining margin |
$ |
2,582 |
|
|
$ |
2,932 |
|
|
$ |
4,637 |
|
|
$ |
5,215 |
|
|
|
|
|
|
|
|
|
Refining operating income |
$ |
1,037 |
|
|
$ |
1,440 |
|
|
$ |
1,516 |
|
|
$ |
2,251 |
|
Exclude: |
|
|
|
|
|
|
|
2017 blender’s tax credit (a) |
— |
|
|
— |
|
|
— |
|
|
10 |
|
Other operating expenses (b) |
(1 |
) |
|
(21 |
) |
|
(3 |
) |
|
(31 |
) |
Adjusted refining operating income |
$ |
1,038 |
|
|
$ |
1,461 |
|
|
$ |
1,519 |
|
|
$ |
2,272 |
|
|
|
|
|
|
|
|
|
Ethanol segment |
|
|
|
|
|
|
|
Ethanol operating income |
$ |
7 |
|
|
$ |
43 |
|
|
$ |
10 |
|
|
$ |
88 |
|
Exclude: |
|
|
|
|
|
|
|
Operating expenses (excluding depreciation and amortization expense
reflected below) |
(132 |
) |
|
(109 |
) |
|
(257 |
) |
|
(220 |
) |
Depreciation and amortization expense |
(22 |
) |
|
(20 |
) |
|
(45 |
) |
|
(38 |
) |
Other operating expenses |
(1 |
) |
|
— |
|
|
(1 |
) |
|
— |
|
Ethanol margin |
$ |
162 |
|
|
$ |
172 |
|
|
$ |
313 |
|
|
$ |
346 |
|
|
|
|
|
|
|
|
|
Ethanol operating income |
$ |
7 |
|
|
$ |
43 |
|
|
$ |
10 |
|
|
$ |
88 |
|
Exclude: Other operating expenses |
(1 |
) |
|
— |
|
|
(1 |
) |
|
— |
|
Adjusted ethanol operating income |
$ |
8 |
|
|
$ |
43 |
|
|
$ |
11 |
|
|
$ |
88 |
|
|
|
|
|
|
|
|
|
Renewable diesel segment (e) |
|
|
|
|
|
|
|
Renewable diesel operating income |
$ |
77 |
|
|
$ |
30 |
|
|
$ |
126 |
|
|
$ |
225 |
|
Exclude: |
|
|
|
|
|
|
|
2017 blender’s tax credit (a) |
— |
|
|
— |
|
|
— |
|
|
160 |
|
Operating expenses (excluding depreciation and amortization expense
reflected below) |
(17 |
) |
|
(13 |
) |
|
(36 |
) |
|
(27 |
) |
Depreciation and amortization expense |
(12 |
) |
|
(7 |
) |
|
(23 |
) |
|
(13 |
) |
Renewable diesel margin |
$ |
106 |
|
|
$ |
50 |
|
|
$ |
185 |
|
|
$ |
105 |
|
|
|
|
|
|
|
|
|
Renewable diesel operating income |
$ |
77 |
|
|
$ |
30 |
|
|
$ |
126 |
|
|
$ |
225 |
|
Exclude: 2017 blender’s tax credit (a) |
— |
|
|
— |
|
|
— |
|
|
160 |
|
Adjusted renewable diesel operating income |
$ |
77 |
|
|
$ |
30 |
|
|
$ |
126 |
|
|
$ |
65 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATIONEARNINGS RELEASE
TABLESRECONCILIATION OF NON-GAAP MEASURES TO MOST
COMPARABLE AMOUNTSREPORTED UNDER U.S. GAAP
(f)(millions of
dollars)(unaudited) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Reconciliation of
refining segment operating income to refining
margin (by region), and reconciliation
of refining segment operating income to
adjusted refining segment operating income
(by region) (g) |
|
|
|
|
|
|
|
U.S. Gulf Coast region (e) |
|
|
|
|
|
|
|
Refining operating income |
$ |
273 |
|
|
$ |
760 |
|
|
$ |
391 |
|
|
$ |
1,165 |
|
Exclude: |
|
|
|
|
|
|
|
2017 blender’s tax credit (a) |
— |
|
|
— |
|
|
— |
|
|
7 |
|
Operating expenses (excluding depreciation and amortization expense
reflected below) |
(586 |
) |
|
(559 |
) |
|
(1,185 |
) |
|
(1,127 |
) |
Depreciation and amortization expense |
(318 |
) |
|
(292 |
) |
|
(628 |
) |
|
(569 |
) |
Other operating expenses (b) |
(1 |
) |
|
(20 |
) |
|
(2 |
) |
|
(30 |
) |
Refining margin |
$ |
1,178 |
|
|
$ |
1,631 |
|
|
$ |
2,206 |
|
|
$ |
2,884 |
|
|
|
|
|
|
|
|
|
Refining operating income |
$ |
273 |
|
|
$ |
760 |
|
|
$ |
391 |
|
|
$ |
1,165 |
|
Exclude: |
|
|
|
|
|
|
|
2017 blender’s tax credit (a) |
— |
|
|
— |
|
|
— |
|
|
7 |
|
Other operating expenses (b) |
(1 |
) |
|
(20 |
) |
|
(2 |
) |
|
(30 |
) |
Adjusted refining operating income |
$ |
274 |
|
|
$ |
780 |
|
|
$ |
393 |
|
|
$ |
1,188 |
|
|
|
|
|
|
|
|
|
U.S. Mid-Continent region (e) |
|
|
|
|
|
|
|
Refining operating income |
$ |
422 |
|
|
$ |
406 |
|
|
$ |
658 |
|
|
$ |
632 |
|
Exclude: |
|
|
|
|
|
|
|
2017 blender’s tax credit (a) |
— |
|
|
— |
|
|
— |
|
|
2 |
|
Operating expenses (excluding depreciation and amortization expense
reflected below) |
(146 |
) |
|
(156 |
) |
|
(312 |
) |
|
(312 |
) |
Depreciation and amortization expense |
(74 |
) |
|
(71 |
) |
|
(149 |
) |
|
(141 |
) |
Refining margin |
$ |
642 |
|
|
$ |
633 |
|
|
$ |
1,119 |
|
|
$ |
1,083 |
|
|
|
|
|
|
|
|
|
Refining operating income |
$ |
422 |
|
|
$ |
406 |
|
|
$ |
658 |
|
|
$ |
632 |
|
Exclude: 2017 blender’s tax credit (a) |
— |
|
|
— |
|
|
— |
|
|
2 |
|
Adjusted refining operating income |
$ |
422 |
|
|
$ |
406 |
|
|
$ |
658 |
|
|
$ |
630 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATIONEARNINGS RELEASE
TABLESRECONCILIATION OF NON-GAAP MEASURES TO MOST
COMPARABLE AMOUNTSREPORTED UNDER U.S. GAAP
(f)(millions of
dollars)(unaudited) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Reconciliation of
refining segment operating income to refining
margin (by region), and reconciliation
of refining segment operating income to
adjusted refining segment operating income
(by region) (g) (continued) |
|
|
|
|
|
|
|
North Atlantic region |
|
|
|
|
|
|
|
Refining operating income |
$ |
278 |
|
|
$ |
137 |
|
|
$ |
454 |
|
|
$ |
298 |
|
Exclude: |
|
|
|
|
|
|
|
Operating expenses (excluding depreciation and amortization expense
reflected below) |
(146 |
) |
|
(138 |
) |
|
(293 |
) |
|
(283 |
) |
Depreciation and amortization expense |
(55 |
) |
|
(62 |
) |
|
(108 |
) |
|
(115 |
) |
Refining margin |
$ |
479 |
|
|
$ |
337 |
|
|
$ |
855 |
|
|
$ |
696 |
|
|
|
|
|
|
|
|
|
U.S. West Coast region |
|
|
|
|
|
|
|
Refining operating income |
$ |
64 |
|
|
$ |
137 |
|
|
$ |
13 |
|
|
$ |
156 |
|
Exclude: |
|
|
|
|
|
|
|
2017 blender’s tax credit (a) |
— |
|
|
— |
|
|
— |
|
|
1 |
|
Operating expenses (excluding depreciation and amortization expense
reflected below) |
(148 |
) |
|
(135 |
) |
|
(307 |
) |
|
(277 |
) |
Depreciation and amortization expense |
(71 |
) |
|
(58 |
) |
|
(136 |
) |
|
(119 |
) |
Other operating expenses |
— |
|
|
(1 |
) |
|
(1 |
) |
|
(1 |
) |
Refining margin |
$ |
283 |
|
|
$ |
331 |
|
|
$ |
457 |
|
|
$ |
552 |
|
|
|
|
|
|
|
|
|
Refining operating income |
$ |
64 |
|
|
$ |
137 |
|
|
$ |
13 |
|
|
$ |
156 |
|
Exclude: |
|
|
|
|
|
|
|
2017 blender’s tax credit (a) |
— |
|
|
— |
|
|
— |
|
|
1 |
|
Other operating expenses |
— |
|
|
(1 |
) |
|
(1 |
) |
|
(1 |
) |
Adjusted refining operating income |
$ |
64 |
|
|
$ |
138 |
|
|
$ |
14 |
|
|
$ |
156 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATIONEARNINGS RELEASE
TABLESREFINING SEGMENT OPERATING
HIGHLIGHTS(millions of dollars, except per barrel
amounts)(unaudited) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Throughput volumes
(thousand barrels per day) |
|
|
|
|
|
|
|
Feedstocks: |
|
|
|
|
|
|
|
Heavy sour crude oil |
419 |
|
|
482 |
|
|
415 |
|
|
482 |
|
Medium/light sour crude oil |
257 |
|
|
434 |
|
|
297 |
|
|
421 |
|
Sweet crude oil |
1,550 |
|
|
1,303 |
|
|
1,513 |
|
|
1,323 |
|
Residuals |
241 |
|
|
231 |
|
|
193 |
|
|
226 |
|
Other feedstocks |
171 |
|
|
121 |
|
|
162 |
|
|
121 |
|
Total feedstocks |
2,638 |
|
|
2,571 |
|
|
2,580 |
|
|
2,573 |
|
Blendstocks and other |
330 |
|
|
327 |
|
|
337 |
|
|
342 |
|
Total throughput volumes |
2,968 |
|
|
2,898 |
|
|
2,917 |
|
|
2,915 |
|
|
|
|
|
|
|
|
|
Yields (thousand
barrels per day) |
|
|
|
|
|
|
|
Gasolines and blendstocks |
1,378 |
|
|
1,407 |
|
|
1,387 |
|
|
1,404 |
|
Distillates |
1,141 |
|
|
1,096 |
|
|
1,115 |
|
|
1,102 |
|
Other products (h) |
483 |
|
|
434 |
|
|
445 |
|
|
446 |
|
Total yields |
3,002 |
|
|
2,937 |
|
|
2,947 |
|
|
2,952 |
|
|
|
|
|
|
|
|
|
Operating statistics
(e) (f) (i) |
|
|
|
|
|
|
|
Refining margin |
$ |
2,582 |
|
|
$ |
2,932 |
|
|
$ |
4,637 |
|
|
$ |
5,215 |
|
Adjusted refining operating income |
$ |
1,038 |
|
|
$ |
1,461 |
|
|
$ |
1,519 |
|
|
$ |
2,272 |
|
Throughput volumes (thousand barrels per day) |
2,968 |
|
|
2,898 |
|
|
2,917 |
|
|
2,915 |
|
|
|
|
|
|
|
|
|
Refining margin per barrel of throughput |
$ |
9.56 |
|
|
$ |
11.12 |
|
|
$ |
8.78 |
|
|
$ |
9.89 |
|
Less: |
|
|
|
|
|
|
|
Operating expenses (excluding depreciation and amortization expense
reflected below) per barrel of throughput |
3.80 |
|
|
3.75 |
|
|
3.97 |
|
|
3.79 |
|
Depreciation and amortization expense per barrel of throughput |
1.92 |
|
|
1.83 |
|
|
1.93 |
|
|
1.79 |
|
Adjusted refining operating income per barrel of throughput |
$ |
3.84 |
|
|
$ |
5.54 |
|
|
$ |
2.88 |
|
|
$ |
4.31 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATIONEARNINGS RELEASE
TABLESETHANOL SEGMENT OPERATING
HIGHLIGHTS(millions of dollars, except per gallon
amounts)(unaudited) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Operating statistics
(f) (i) |
|
|
|
|
|
|
|
Ethanol margin |
$ |
162 |
|
|
$ |
172 |
|
|
$ |
313 |
|
|
$ |
346 |
|
Adjusted ethanol operating income |
$ |
8 |
|
|
$ |
43 |
|
|
$ |
11 |
|
|
$ |
88 |
|
Production volumes (thousand gallons per day) |
4,533 |
|
|
4,002 |
|
|
4,376 |
|
|
4,057 |
|
|
|
|
|
|
|
|
|
Ethanol margin per gallon of production |
$ |
0.39 |
|
|
$ |
0.47 |
|
|
$ |
0.40 |
|
|
$ |
0.47 |
|
Less: |
|
|
|
|
|
|
|
Operating expenses (excluding depreciation and amortization expense
reflected below) per gallon of production |
0.32 |
|
|
0.30 |
|
|
0.32 |
|
|
0.30 |
|
Depreciation and amortization expense per gallon of production |
0.05 |
|
|
0.05 |
|
|
0.07 |
|
|
0.05 |
|
Ethanol operating income per gallon of production |
$ |
0.02 |
|
|
$ |
0.12 |
|
|
$ |
0.01 |
|
|
$ |
0.12 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATIONEARNINGS RELEASE
TABLESRENEWABLE DIESEL SEGMENT OPERATING
HIGHLIGHTS (e)(millions of dollars, except per
gallon amounts)(unaudited) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Operating statistics
(f) (i) |
|
|
|
|
|
|
|
Renewable diesel margin |
$ |
106 |
|
|
$ |
50 |
|
|
$ |
185 |
|
|
$ |
105 |
|
Adjusted renewable diesel operating income |
$ |
77 |
|
|
$ |
30 |
|
|
$ |
126 |
|
|
$ |
65 |
|
Sales volumes (thousand gallons per day) |
769 |
|
|
382 |
|
|
780 |
|
|
377 |
|
|
|
|
|
|
|
|
|
Renewable diesel margin per gallon of sales |
$ |
1.51 |
|
|
$ |
1.43 |
|
|
$ |
1.31 |
|
|
$ |
1.53 |
|
Less: |
|
|
|
|
|
|
|
Operating expenses (excluding depreciation and amortization expense
reflected below) per gallon of sales |
0.25 |
|
|
0.37 |
|
|
0.26 |
|
|
0.40 |
|
Depreciation and amortization expense per gallon of sales |
0.17 |
|
|
0.18 |
|
|
0.16 |
|
|
0.18 |
|
Adjusted renewable diesel operating income per gallon of sales |
$ |
1.09 |
|
|
$ |
0.88 |
|
|
$ |
0.89 |
|
|
$ |
0.95 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATIONEARNINGS RELEASE
TABLESREFINING SEGMENT OPERATING HIGHLIGHTS BY
REGION(millions of dollars, except per barrel
amounts)(unaudited) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Operating statistics
by region (g) |
|
|
|
|
|
|
|
U.S. Gulf Coast region (e) (f) (i) |
|
|
|
|
|
|
|
Refining margin |
$ |
1,178 |
|
|
$ |
1,631 |
|
|
$ |
2,206 |
|
|
$ |
2,884 |
|
Adjusted refining operating income |
$ |
274 |
|
|
$ |
780 |
|
|
$ |
393 |
|
|
$ |
1,188 |
|
Throughput volumes (thousand barrels per day) |
1,779 |
|
|
1,729 |
|
|
1,725 |
|
|
1,728 |
|
|
|
|
|
|
|
|
|
Refining margin per barrel of throughput |
$ |
7.28 |
|
|
$ |
10.37 |
|
|
$ |
7.07 |
|
|
$ |
9.23 |
|
Less: |
|
|
|
|
|
|
|
Operating expenses (excluding depreciation and amortization expense
reflected below) per barrel of throughput |
3.63 |
|
|
3.56 |
|
|
3.80 |
|
|
3.61 |
|
Depreciation and amortization expense per barrel of throughput |
1.96 |
|
|
1.86 |
|
|
2.01 |
|
|
1.82 |
|
Adjusted refining operating income per barrel of throughput |
$ |
1.69 |
|
|
$ |
4.95 |
|
|
$ |
1.26 |
|
|
$ |
3.80 |
|
|
|
|
|
|
|
|
|
U.S. Mid-Continent region (e) (f) (i) |
|
|
|
|
|
|
|
Refining margin |
$ |
642 |
|
|
$ |
633 |
|
|
$ |
1,119 |
|
|
$ |
1,083 |
|
Adjusted refining operating income |
$ |
422 |
|
|
$ |
406 |
|
|
$ |
658 |
|
|
$ |
630 |
|
Throughput volumes (thousand barrels per day) |
462 |
|
|
473 |
|
|
452 |
|
|
477 |
|
|
|
|
|
|
|
|
|
Refining margin per barrel of throughput |
$ |
15.24 |
|
|
$ |
14.69 |
|
|
$ |
13.68 |
|
|
$ |
12.55 |
|
Less: |
|
|
|
|
|
|
|
Operating expenses (excluding depreciation and amortization expense
reflected below) per barrel of throughput |
3.45 |
|
|
3.60 |
|
|
3.81 |
|
|
3.61 |
|
Depreciation and amortization expense per barrel of throughput |
1.76 |
|
|
1.64 |
|
|
1.82 |
|
|
1.63 |
|
Adjusted refining operating income per barrel of throughput |
$ |
10.03 |
|
|
$ |
9.45 |
|
|
$ |
8.05 |
|
|
$ |
7.31 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATIONEARNINGS RELEASE
TABLESREFINING SEGMENT OPERATING HIGHLIGHTS BY
REGION(millions of dollars, except per barrel
amounts)(unaudited) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Operating statistics
by region (g) (continued) |
|
|
|
|
|
|
|
North Atlantic region (f) (i) |
|
|
|
|
|
|
|
Refining margin |
$ |
479 |
|
|
$ |
337 |
|
|
$ |
855 |
|
|
$ |
696 |
|
Refining operating income |
$ |
278 |
|
|
$ |
137 |
|
|
$ |
454 |
|
|
$ |
298 |
|
Throughput volumes (thousand barrels per day) |
493 |
|
|
398 |
|
|
491 |
|
|
428 |
|
|
|
|
|
|
|
|
|
Refining margin per barrel of throughput |
$ |
10.69 |
|
|
$ |
9.33 |
|
|
$ |
9.61 |
|
|
$ |
8.99 |
|
Less: |
|
|
|
|
|
|
|
Operating expenses (excluding depreciation and amortization expense
reflected below) per barrel of throughput |
3.26 |
|
|
3.81 |
|
|
3.30 |
|
|
3.66 |
|
Depreciation and amortization expense per barrel of throughput |
1.23 |
|
|
1.70 |
|
|
1.20 |
|
|
1.47 |
|
Refining operating income per barrel of throughput |
$ |
6.20 |
|
|
$ |
3.82 |
|
|
$ |
5.11 |
|
|
$ |
3.86 |
|
|
|
|
|
|
|
|
|
U.S. West Coast region (f) (i) |
|
|
|
|
|
|
|
Refining margin |
$ |
283 |
|
|
$ |
331 |
|
|
$ |
457 |
|
|
$ |
552 |
|
Adjusted refining operating income |
$ |
64 |
|
|
$ |
138 |
|
|
$ |
14 |
|
|
$ |
156 |
|
Throughput volumes (thousand barrels per day) |
234 |
|
|
298 |
|
|
249 |
|
|
282 |
|
|
|
|
|
|
|
|
|
Refining margin per barrel of throughput |
$ |
13.30 |
|
|
$ |
12.20 |
|
|
$ |
10.15 |
|
|
$ |
10.80 |
|
Less: |
|
|
|
|
|
|
|
Operating expenses (excluding depreciation and amortization expense
reflected below) per barrel of throughput |
6.97 |
|
|
4.96 |
|
|
6.83 |
|
|
5.42 |
|
Depreciation and amortization expense per barrel of throughput |
3.32 |
|
|
2.17 |
|
|
3.02 |
|
|
2.33 |
|
Adjusted refining operating income per barrel of throughput |
$ |
3.01 |
|
|
$ |
5.07 |
|
|
$ |
0.30 |
|
|
$ |
3.05 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATIONEARNINGS RELEASE
TABLESAVERAGE MARKET REFERENCE PRICES AND
DIFFERENTIALS(unaudited) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Refining |
|
|
|
|
|
|
|
Feedstocks (dollars per barrel) |
|
|
|
|
|
|
|
Brent crude oil |
$ |
68.33 |
|
|
$ |
74.93 |
|
|
$ |
66.08 |
|
|
$ |
71.05 |
|
Brent less West Texas Intermediate (WTI) crude oil |
8.53 |
|
|
6.93 |
|
|
8.73 |
|
|
5.61 |
|
Brent less Alaska North Slope (ANS) crude oil |
0.15 |
|
|
0.83 |
|
|
(0.27 |
) |
|
0.52 |
|
Brent less Louisiana Light Sweet (LLS) crude oil |
1.30 |
|
|
1.93 |
|
|
1.38 |
|
|
1.66 |
|
Brent less Argus Sour Crude Index (ASCI) crude oil |
3.44 |
|
|
5.63 |
|
|
3.17 |
|
|
5.26 |
|
Brent less Maya crude oil |
6.23 |
|
|
12.90 |
|
|
5.64 |
|
|
11.18 |
|
LLS crude oil |
67.03 |
|
|
73.00 |
|
|
64.70 |
|
|
69.39 |
|
LLS less ASCI crude oil |
2.14 |
|
|
3.70 |
|
|
1.79 |
|
|
3.60 |
|
LLS less Maya crude oil |
4.93 |
|
|
10.97 |
|
|
4.26 |
|
|
9.52 |
|
WTI crude oil |
59.80 |
|
|
68.00 |
|
|
57.35 |
|
|
65.44 |
|
|
|
|
|
|
|
|
|
Natural gas (dollars per million British Thermal
Units) |
2.46 |
|
|
2.89 |
|
|
2.66 |
|
|
3.04 |
|
|
|
|
|
|
|
|
|
Products (dollars per barrel, unless otherwise
noted) |
|
|
|
|
|
|
|
U.S. Gulf Coast: |
|
|
|
|
|
|
|
Conventional Blendstock of Oxygenate Blending (CBOB) gasoline less
Brent |
6.72 |
|
|
7.47 |
|
|
3.44 |
|
|
7.38 |
|
Ultra-low-sulfur (ULS) diesel less Brent |
12.88 |
|
|
13.46 |
|
|
13.94 |
|
|
13.62 |
|
Propylene less Brent |
(24.70 |
) |
|
(6.54 |
) |
|
(22.67 |
) |
|
(6.68 |
) |
CBOB gasoline less LLS |
8.02 |
|
|
9.40 |
|
|
4.82 |
|
|
9.04 |
|
ULS diesel less LLS |
14.18 |
|
|
15.39 |
|
|
15.32 |
|
|
15.28 |
|
Propylene less LLS |
(23.40 |
) |
|
(4.61 |
) |
|
(21.29 |
) |
|
(5.02 |
) |
U.S. Mid-Continent: |
|
|
|
|
|
|
|
CBOB gasoline less WTI |
18.76 |
|
|
16.05 |
|
|
14.23 |
|
|
14.76 |
|
ULS diesel less WTI |
22.51 |
|
|
22.02 |
|
|
23.70 |
|
|
20.93 |
|
North Atlantic: |
|
|
|
|
|
|
|
CBOB gasoline less Brent |
10.11 |
|
|
10.37 |
|
|
5.68 |
|
|
9.63 |
|
ULS diesel less Brent |
14.76 |
|
|
15.25 |
|
|
16.10 |
|
|
15.60 |
|
U.S. West Coast: |
|
|
|
|
|
|
|
California Reformulated Gasoline Blendstock of Oxygenate Blending
(CARBOB) 87 gasoline less ANS |
23.24 |
|
|
18.36 |
|
|
15.49 |
|
|
15.82 |
|
California Air Resources Board (CARB) diesel less ANS |
21.10 |
|
|
18.70 |
|
|
18.65 |
|
|
17.99 |
|
CARBOB 87 gasoline less WTI |
31.62 |
|
|
24.46 |
|
|
24.49 |
|
|
20.91 |
|
CARB diesel less WTI |
29.48 |
|
|
24.80 |
|
|
27.65 |
|
|
23.08 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATIONEARNINGS RELEASE
TABLESAVERAGE MARKET REFERENCE PRICES AND
DIFFERENTIALS(unaudited) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Ethanol |
|
|
|
|
|
|
|
New York Harbor (NYH) corn crush (dollars per gallon) |
$ |
0.12 |
|
|
$ |
0.17 |
|
|
$ |
0.11 |
|
|
$ |
0.18 |
|
Chicago Board of Trade (CBOT) corn (dollars per bushel) |
3.91 |
|
|
3.83 |
|
|
3.82 |
|
|
3.75 |
|
NYH ethanol (dollars per gallon) |
1.54 |
|
|
1.56 |
|
|
1.49 |
|
|
1.54 |
|
|
|
|
|
|
|
|
|
Renewable
diesel |
|
|
|
|
|
|
|
New York Mercantile Exchange ULS diesel (dollars per gallon) |
1.98 |
|
|
2.15 |
|
|
1.96 |
|
|
2.07 |
|
Biodiesel Renewable Identification Number (RIN) (dollars per
RIN) |
0.38 |
|
|
0.53 |
|
|
0.44 |
|
|
0.66 |
|
California Low-Carbon Fuel Standard (dollars per metric ton) |
188.77 |
|
|
161.57 |
|
|
191.49 |
|
|
148.85 |
|
CBOT soybean oil (dollars per pound) |
0.28 |
|
|
0.31 |
|
|
0.29 |
|
|
0.32 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATIONEARNINGS RELEASE
TABLESOTHER FINANCIAL
DATA(millions of dollars, except per share
amounts)(unaudited) |
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
|
2019 |
|
2018 |
Balance sheet
data |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
$ |
17,811 |
|
|
$ |
17,675 |
|
Cash and cash equivalents included in current assets |
|
2,033 |
|
|
2,982 |
|
Inventories included in current assets |
|
|
|
|
6,281 |
|
|
6,532 |
|
Current liabilities |
|
|
|
|
12,548 |
|
|
10,724 |
|
Current portion of debt and finance lease obligations included in
current liabilities |
|
323 |
|
|
238 |
|
Debt and finance lease obligations, less current portion |
|
|
|
9,167 |
|
|
8,871 |
|
Total debt and finance lease obligations |
|
|
|
|
9,490 |
|
|
9,109 |
|
Valero Energy Corporation stockholders’ equity |
|
|
|
21,345 |
|
|
21,667 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net cash provided by
operating activities and adjusted net cash
provided by operating activities (f) |
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
1,517 |
|
|
$ |
2,059 |
|
|
$ |
2,394 |
|
|
$ |
2,197 |
|
Exclude: changes in current assets and current liabilities |
283 |
|
|
581 |
|
|
413 |
|
|
(445 |
) |
Adjusted net cash provided by operating activities |
$ |
1,234 |
|
|
$ |
1,478 |
|
|
$ |
1,981 |
|
|
$ |
2,642 |
|
|
|
|
|
|
|
|
|
Dividends per common
share |
$ |
0.90 |
|
|
$ |
0.80 |
|
|
$ |
1.80 |
|
|
$ |
1.60 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATIONNOTES TO EARNINGS RELEASE
TABLES
(a) Cost of materials and other for the six
months ended June 30, 2018 includes a benefit of
$170 million for the biodiesel blender’s tax credit
attributable to volumes blended during 2017. The benefit was
recognized in February 2018 because the United States (U.S.)
legislation authorizing the credit was passed and signed into law
in that month. Of the $170 million pre-tax benefit,
$10 million and $160 million is included in our refining
and renewable diesel segments, respectively, and consequently,
$80 million is attributable to noncontrolling interest and
$90 million is attributable to Valero Energy Corporation
stockholders.
(b) Other operating expenses for the three and
six months ended June 30, 2018 includes $14 million of
costs to respond to and assess the damage caused by a fire in the
alkylation unit at our Texas City Refinery on April 19, 2018.
In addition, other operating expenses for the three and six months
ended June 30, 2018 includes repair costs incurred at certain
of our refineries due to damage associated with inclement weather
events in 2018 and Hurricane Harvey in 2017.
(c) General and administrative expenses
(excluding depreciation and amortization expense) for the three and
six months ended June 30, 2018 includes a charge of
$56 million and $108 million, respectively, for
environmental reserve adjustments associated with certain
non-operating sites.
(d) “Other income (expense), net” for the three
and six months ended June 30, 2019 and 2018 includes a
$22 million charge from the early redemption of
$850 million of our 6.125 percent senior notes due
February 1, 2020 and a $38 million charge from the early
redemption of $750 million of our 9.375 percent senior
notes due March 15, 2019, respectively.
(e) Effective January 1, 2019, we revised
our reportable segments to align with certain changes in how our
chief operating decision maker manages and allocates resources to
our business. Accordingly, we created a new reportable segment —
renewable diesel. The results of the renewable diesel segment,
which includes the operations of our consolidated joint venture,
Diamond Green Diesel Holdings LLC, were transferred from the
refining segment. Also effective January 1, 2019, we no longer
have a VLP segment, and as a result, the operations previously
included in the VLP segment are included in our refining segment.
Our prior period segment information has been retrospectively
adjusted to reflect our current segment presentation.
(f) We use certain financial measures (as noted
below) in the earnings release tables and accompanying earnings
release that are not defined under U.S. 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 U.S. GAAP measures, they provide improved
comparability between periods through the exclusion of 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 U.S. GAAP measures nor
should they be considered in isolation or as a substitute for an
analysis of our results of operations as reported under
U.S. 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 excluding the items noted below, along with their
related income tax effect. We have excluded these items because we
believe that they are not indicative of our core operating
performance and that their exclusion 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 excluded item is provided below.
- 2017 blender’s tax credit attributable to Valero Energy
Corporation stockholders - The blender’s tax credit is attributable
to volumes blended during 2017 and is not related to 2018
activities, as described in note (a).
- Texas City Refinery fire expenses - The
costs incurred to respond to and assess the damage caused by the
fire that occurred at the Texas City Refinery (see note (b))
are specific to that event and are not ongoing costs incurred in
our operations.
- Environmental reserve adjustments - The environmental reserve
adjustments are attributable to sites that were shut down by prior
owners and subsequently acquired by us (referred to by us as
non-operating sites) (see note (c)).
- Loss on early redemption of debt - The
penalty and other expenses incurred in connection with the early
redemption of our 6.125 percent senior notes due
February 1, 2020 and 9.375 percent senior notes due
March 15, 2019 (see note (d)) 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 operating income excluding the 2017 blender’s
tax credit (see note (a)), 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.
- Ethanol margin is
defined as ethanol 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.
- Renewable diesel
margin is defined as renewable diesel operating income
excluding the 2017 blender’s tax credit (see note (a)),
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.
- Adjusted refining operating
income is defined as refining segment operating income
excluding the 2017 blender’s tax credit (see note (a)) and
other operating expenses. We believe adjusted refining operating
income 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 this 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 renewable diesel
operating income is defined as renewable diesel segment
operating income excluding the 2017 blender’s tax credit (see
note (a)). We believe this is an important measure of our
renewable diesel 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 changes in current assets and
current liabilities. 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.
(g) 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.
(h) Primarily includes petrochemicals, gas oils,
No. 6 fuel oil, petroleum coke, sulfur, and asphalt.
(i) 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
production, and per gallon of sales amounts are calculated by
dividing the associated dollar amount by the throughput volumes,
production volumes, and sales volumes for the period, as
applicable.
Throughput volumes, production volumes, and
sales volumes are calculated by multiplying throughput volumes per
day, production volumes per day, and sales volumes per day (as
provided in the accompanying tables), respectively, by the number
of days in the applicable period. We use throughput volumes,
production volumes, and sales volumes for the refining segment,
ethanol segment, and renewable diesel 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.
Valero Energy (NYSE:VLO)
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From Jun 2024 to Jul 2024
Valero Energy (NYSE:VLO)
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From Jul 2023 to Jul 2024