Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 26, 2023

VALERO ENERGY CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

001-13175

74-1828067

(State or other jurisdiction
of incorporation)

(Commission
File Number)

(I.R.S. Employer
Identification No.)

One Valero Way

San Antonio, Texas 78249

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (210) 345-2000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


☐						Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐						Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐						Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐						Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock,
par value $0.01 per share

VLO

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On October 26, 2023, Valero Energy Corporation (the “Company”) issued a press release announcing the Company’s financial and operating results for the third quarter ended September 30, 2023. A copy of the press release is furnished with this report as Exhibit 99.01 and is incorporated herein by reference.

The information in this report is being furnished, not filed, pursuant to Item 2.02 of Form 8-K. Accordingly, the information in this report, including the press release, will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.


Exhibit No.						Description

99.01						Press release dated October 26, 2023.













104						Cover Page Interactive Data File (formatted as Inline XBRL).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


		VALERO ENERGY CORPORATION


Date:	October 26, 2023	By:	/s/ Jason W. Fraser
			Jason W. Fraser
			Executive Vice President and
			Chief Financial Officer

Exhibit 99.01

Valero Energy Reports Third Quarter 2023 Results

•Reported net income attributable to Valero stockholders of $2.6 billion, or $7.49 per share

•Returned $2.2 billion to stockholders through dividends and stock buybacks

SAN ANTONIO, October 26, 2023 – Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income attributable to Valero stockholders of $2.6 billion, or $7.49 per share, for the third quarter of 2023, compared to $2.8 billion, or $7.19 per share, for the third quarter of 2022. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders was $2.8 billion, or $7.14 per share, for the third quarter of 2022.

Refining

The Refining segment reported operating income of $3.4 billion for the third quarter of 2023, compared to $3.8 billion for the third quarter of 2022. Refining throughput volumes averaged 3.0 million barrels per day in the third quarter of 2023.

“Our refineries operated well and achieved 95 percent throughput capacity utilization, which is a testament to our team’s relentless focus on operational excellence,” said Lane Riggs, Valero’s Chief Executive Officer and President. “Product demand remained strong in our U.S. wholesale system, which matched the second quarter record of over 1 million barrels per day of sales volume.”

Renewable Diesel

The Renewable Diesel segment, which consists of the Diamond Green Diesel joint venture (DGD), reported $123 million of operating income for the third quarter of 2023, compared to $212 million for the third quarter of 2022. Segment sales volumes averaged 3.0 million gallons per day in the third quarter of 2023, which was 761 thousand gallons per day higher than the third quarter of 2022. The higher sales volumes were due to the impact of additional volumes from the DGD Port Arthur plant, which started up in the fourth quarter of 2022. Operating income was lower than the third quarter of 2022 primarily due to lower renewable diesel margin in the third quarter of 2023.

Ethanol

The Ethanol segment reported $197 million of operating income for the third quarter of 2023, compared to $1 million for the third quarter of 2022. Ethanol production volumes averaged 4.3 million gallons per day in the third quarter of 2023, which was 831 thousand gallons per day higher than the third quarter of 2022. Operating income was higher than the third quarter of 2022 primarily as a result of higher production volumes and lower corn prices in the third quarter of 2023.

Corporate and Other

General and administrative expenses were $250 million in the third quarter of 2023, compared to $214 million in the third quarter of 2022. The effective tax rate for the third quarter of 2023 was 23 percent.

Investing and Financing Activities

Net cash provided by operating activities was $3.3 billion in the third quarter of 2023. Included in this amount was a $33 million favorable change in working capital and $82 million of adjusted net cash provided by operating activities associated with the other joint venture member’s share of DGD. Excluding these items, adjusted net cash provided by operating activities was $3.2 billion in the third quarter of 2023.

Capital investments totaled $394 million in the third quarter of 2023, of which $303 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance. Excluding capital investments attributable to the other joint venture member’s share of DGD, capital investments attributable to Valero were $352 million.

Valero returned $2.2 billion to stockholders in the third quarter of 2023, of which $360 million was paid as dividends and $1.8 billion was for the purchase of approximately 13 million shares of common stock, resulting in a payout ratio of 68 percent of adjusted net cash provided by operating activities.

Valero continues to target an annual payout ratio between 40 and 50 percent of adjusted net cash provided by operating activities. Valero defines payout ratio as the sum of dividends paid and the total cost of stock buybacks divided by net cash provided by operating activities adjusted for changes in working capital and DGD’s net cash provided by operating activities, excluding changes in its working capital, attributable to the other joint venture member’s share of DGD.

Liquidity and Financial Position

Valero ended the third quarter of 2023 with $9.2 billion of total debt, $2.3 billion of finance lease obligations and $5.8 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 17 percent as of September 30, 2023.

Strategic Update

The Sustainable Aviation Fuel (SAF) project at the DGD Port Arthur plant remains on schedule and is expected to be completed in 2025 and cost $315 million, with half of that attributable to Valero. The project is expected to give the plant the optionality to upgrade approximately 50 percent of its current 470 million gallon renewable diesel annual production capacity to SAF. With the completion of this project, DGD is expected to become one of the largest manufacturers of SAF in the world.

“While there are broader factors that may drive market volatility, we remain focused on things we can control,” said Riggs, “including operating efficiently in a safe, reliable and environmentally responsible manner, maintaining capital discipline by adhering to a minimum return threshold on growth projects, and honoring our commitment to shareholder returns.”

Conference Call

Valero’s senior management will hold a conference call at 10 a.m. ET today to discuss this earnings release and to provide an update on operations and strategy.

About Valero

Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and it sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland and Latin America. Valero owns 15 petroleum refineries located in the U.S., Canada and the U.K. with a combined throughput capacity of approximately 3.2 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which owns two renewable diesel plants located in the U.S. Gulf Coast region with a combined production capacity of approximately 1.2 billion gallons per year, and Valero owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.6 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel and Ethanol segments. Please visit investorvalero.com for more information.

Valero Contacts

Investors:

Homer Bhullar, Vice President – Investor Relations and Finance, 210-345-1982

Eric Herbort, Director – Investor Relations and Finance, 210-345-3331

Gautam Srivastava, Director – Investor Relations, 210-345-3992

Media:

Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002

Safe-Harbor Statement

Statements contained in this release and the accompanying earnings release tables, or made during the conference call, that state Valero’s or management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “believe,” “expect,” “should,” “estimates,” “intend,” “target,” “will,” “plans,” “forecast,” and other similar expressions identify forward-looking statements. Forward-looking statements in this release and the accompanying earnings release tables include, and those made on the conference call may include, statements relating to Valero’s low-carbon fuels strategy, expected timing, cost and performance of projects, future market and industry conditions, future operating and financial performance, future production and manufacturing ability and size, and management of future risks, among other matters. It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of Valero’s control, such as legislative or political changes or developments, market dynamics, cyberattacks, weather events, and other matters affecting Valero’s operations or the demand for Valero’s products. These factors also include, but are not limited to, the uncertainties that remain with respect to current or contemplated legal, political or regulatory developments that are adverse to or restrict refining and marketing operations, or that impose profits, windfall or margin taxes or penalties, global geopolitical and other conflicts and tensions, the impact of inflation on margins and costs, economic activity levels, and the adverse effects the foregoing may have on Valero’s business plan, strategy, operations and financial performance. For more information concerning these and other factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual report on Form 10-K, quarterly reports on Form 10‑Q, and other reports filed with the Securities and Exchange Commission and available on Valero’s website at www.valero.com.

Use of Non-GAAP Financial Information

This earnings release and the accompanying earnings release tables include references to financial measures that are not defined under U.S. generally accepted accounting principles (GAAP). These non-GAAP measures include adjusted net income attributable to Valero stockholders, adjusted earnings per common share – assuming dilution, Refining margin, Renewable Diesel margin, Ethanol margin, adjusted Refining operating income, adjusted Ethanol operating income, adjusted net cash provided by operating activities, and capital investments attributable to Valero. These non-GAAP financial measures have been included to help facilitate the comparison of operating results between periods. See the accompanying earnings release tables for a reconciliation of non-GAAP measures to their most directly comparable GAAP measures. Note (e) to the earnings release tables provides reasons for the use of these non-GAAP financial measures.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

FINANCIAL HIGHLIGHTS

(millions of dollars, except per share amounts)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Statement of income data
Revenues	$	38,404	$	44,454	$	109,352	$	134,637
Cost of sales:
Cost of materials and other (a)	32,385		38,064		91,820		115,959

Operating expenses (excluding depreciation and amortization expense reflected below)	1,578		1,746		4,495		4,751
Depreciation and amortization expense (b)	671		621		1,979		1,806
Total cost of sales	34,634		40,431		98,294		122,516

Other operating expenses	6		6		18		40
General and administrative expenses (excluding depreciation and amortization expense reflected below) (c)	250		214		703		652
Depreciation and amortization expense	11		11		32		34


Operating income	3,503		3,792		10,305		11,395
Other income, net (d)	122		74		357		87
Interest and debt expense, net of capitalized interest	(149)		(138)		(443)		(425)
Income before income tax expense	3,476		3,728		10,219		11,057
Income tax expense	813		816		2,288		2,410


Net income	2,663		2,912		7,931		8,647
Less: Net income attributable to noncontrolling interests	41		95		298		232
Net income attributable to Valero Energy Corporation stockholders	$	2,622	$	2,817	$	7,633	$	8,415





Earnings per common share	$	7.49	$	7.20	$	21.22	$	20.94



Weighted-average common shares outstanding (in millions)	349		390		359		400

Earnings per common share – assuming dilution	$	7.49	$	7.19	$	21.21	$	20.93



Weighted-average common shares outstanding – assuming dilution (in millions)	349		390		359		401

See Notes to Earnings Release Tables beginning on Table Page 18.

Table Page 1

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

FINANCIAL HIGHLIGHTS BY SEGMENT

(millions of dollars)

(unaudited)


	Refining		Renewable Diesel		Ethanol		Corporate and Eliminations		Total
Three months ended September 30, 2023
Revenues:
Revenues from external customers	$	36,521	$	759	$	1,124	$	—	$	38,404
Intersegment revenues	8		672		310		(990)		—
Total revenues	36,529		1,431		1,434		(990)		38,404
Cost of sales:


Cost of materials and other	31,115		1,169		1,092		(991)		32,385

Operating expenses (excluding depreciation and amortization expense reflected below)	1,366		84		125		3		1,578
Depreciation and amortization expense	597		55		20		(1)		671
Total cost of sales	33,078		1,308		1,237		(989)		34,634

Other operating expenses	6		—		—		—		6
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		250		250
Depreciation and amortization expense	—		—		—		11		11

Operating income by segment	$	3,445	$	123	$	197	$	(262)	$	3,503

Three months ended September 30, 2022
Revenues:
Revenues from external customers	$	42,280	$	967	$	1,207	$	—	$	44,454
Intersegment revenues	9		508		179		(696)		—
Total revenues	42,289		1,475		1,386		(696)		44,454
Cost of sales:


Cost of materials and other	36,389		1,161		1,203		(689)		38,064

Operating expenses (excluding depreciation and amortization expense reflected below)	1,516		69		162		(1)		1,746
Depreciation and amortization expense	568		33		20		—		621

Total cost of sales	38,473		1,263		1,385		(690)		40,431
Other operating expenses	6		—		—		—		6
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		214		214
Depreciation and amortization expense	—		—		—		11		11

Operating income by segment	$	3,810	$	212	$	1	$	(231)	$	3,792

See Operating Highlights by Segment beginning on Table Page 9.

See Notes to Earnings Release Tables beginning on Table Page 18.

Table Page 2

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

FINANCIAL HIGHLIGHTS BY SEGMENT

(millions of dollars)

(unaudited)


	Refining		Renewable Diesel		Ethanol		Corporate and Eliminations		Total
Nine months ended September 30, 2023
Revenues:
Revenues from external customers	$	102,924	$	2,990	$	3,438	$	—	$	109,352
Intersegment revenues	8		2,367		790		(3,165)		—
Total revenues	102,932		5,357		4,228		(3,165)		109,352
Cost of sales:


Cost of materials and other	87,398		4,143		3,422		(3,143)		91,820
Operating expenses (excluding depreciation and amortization expense reflected below)	3,832		274		383		6		4,495
Depreciation and amortization expense	1,751		172		59		(3)		1,979
Total cost of sales	92,981		4,589		3,864		(3,140)		98,294

Other operating expenses	17		—		1		—		18
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		703		703
Depreciation and amortization expense	—		—		—		32		32
Operating income by segment	$	9,934	$	768	$	363	$	(760)	$	10,305

Nine months ended September 30, 2022
Revenues:
Revenues from external customers	$	128,588	$	2,417	$	3,632	$	—	$	134,637
Intersegment revenues	24		1,490		507		(2,021)		—
Total revenues	128,612		3,907		4,139		(2,021)		134,637
Cost of sales:
Cost of materials and other (a)	111,308		3,129		3,533		(2,011)		115,959

Operating expenses (excluding depreciation and amortization expense reflected below)	4,111		178		464		(2)		4,751
Depreciation and amortization expense (b)	1,682		87		37		—		1,806
Total cost of sales	117,101		3,394		4,034		(2,013)		122,516
Other operating expenses	38		—		2		—		40
General and administrative expenses (excluding depreciation and amortization expense reflected below) (c)	—		—		—		652		652
Depreciation and amortization expense	—		—		—		34		34
Operating income by segment	$	11,473	$	513	$	103	$	(694)	$	11,395

See Operating Highlights by Segment beginning on Table Page 9.

See Notes to Earnings Release Tables beginning on Table Page 18.

Table Page 3

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS

REPORTED UNDER U.S. GAAP (e)

(millions of dollars, except per share amounts)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Reconciliation of net income attributable to Valero Energy Corporation stockholders to adjusted net income attributable to Valero Energy Corporation stockholders
Net income attributable to Valero Energy Corporation stockholders	$	2,622	$	2,817	$	7,633	$	8,415
Adjustments:

Modification of renewable volume obligation (RVO) (a)	—		—		—		(104)
Income tax expense related to modification of RVO	—		—		—		23
Modification of RVO, net of taxes	—		—		—		(81)



Gain on sale of ethanol plant (b)	—		—		—		(23)
Income tax expense related to gain on sale of ethanol plant	—		—		—		5
Gain on sale of ethanol plant, net of taxes	—		—		—		(18)



Environmental reserve adjustment (c)	—		—		—		20
Income tax benefit related to environmental reserve adjustment	—		—		—		(5)
Environmental reserve adjustment, net of taxes	—		—		—		15
Loss (gain) on early retirement of debt (d)	—		(26)		(11)		24
Income tax (benefit) expense related to loss (gain) on early retirement of debt	—		5		2		(6)
Loss (gain) on early retirement of debt, net of taxes	—		(21)		(9)		18





















Total adjustments	—		(21)		(9)		(66)
Adjusted net income attributable to Valero Energy Corporation stockholders	$	2,622	$	2,796	$	7,624	$	8,349




Reconciliation of earnings per common share – assuming dilution to adjusted earnings per common share – assuming dilution
Earnings per common share – assuming dilution	$	7.49	$	7.19	$	21.21	$	20.93
Adjustments:
Modification of RVO (a)	—		—		—		(0.20)

Gain on sale of ethanol plant (b)	—		—		—		(0.05)

Environmental reserve adjustment (c)	—		—		—		0.04

Loss (gain) on early retirement of debt (d)	—		(0.05)		(0.02)		0.05




Total adjustments	—		(0.05)		(0.02)		(0.16)
Adjusted earnings per common share – assuming dilution	$	7.49	$	7.14	$	21.19	$	20.77

See Notes to Earnings Release Tables beginning on Table Page 18.

Table Page 4

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS

REPORTED UNDER U.S. GAAP (e)

(millions of dollars)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Reconciliation of operating income by segment to segment margin, and reconciliation of operating income by segment to adjusted operating income by segment
Refining segment
Refining operating income	$	3,445	$	3,810	$	9,934	$	11,473
Adjustments:
Modification of RVO (a)	—		—		—		(104)

Operating expenses (excluding depreciation and amortization expense reflected below)	1,366		1,516		3,832		4,111
Depreciation and amortization expense	597		568		1,751		1,682
Other operating expenses	6		6		17		38
Refining margin	$	5,414	$	5,900	$	15,534	$	17,200

Refining operating income	$	3,445	$	3,810	$	9,934	$	11,473
Adjustments:
Modification of RVO (a)	—		—		—		(104)

Other operating expenses	6		6		17		38
Adjusted Refining operating income	$	3,451	$	3,816	$	9,951	$	11,407

Renewable Diesel segment
Renewable Diesel operating income	$	123	$	212	$	768	$	513
Adjustments:
Operating expenses (excluding depreciation and amortization expense reflected below)	84		69		274		178
Depreciation and amortization expense	55		33		172		87

Renewable Diesel margin	$	262	$	314	$	1,214	$	778

See Notes to Earnings Release Tables beginning on Table Page 18.

Table Page 5

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS

REPORTED UNDER U.S. GAAP (e)

(millions of dollars)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Reconciliation of operating income by segment to segment margin, and reconciliation of operating income by segment to adjusted operating income by segment (continued)
Ethanol segment
Ethanol operating income	$	197	$	1	$	363	$	103
Adjustments:
Operating expenses (excluding depreciation and amortization expense reflected below)	125		162		383		464
Depreciation and amortization expense (b)	20		20		59		37
Other operating expenses	—		—		1		2
Ethanol margin	$	342	$	183	$	806	$	606

Ethanol operating income	$	197	$	1	$	363	$	103
Adjustments:
Gain on sale of ethanol plant (b)	—		—		—		(23)
Other operating expenses	—		—		1		2
Adjusted Ethanol operating income	$	197	$	1	$	364	$	82

See Notes to Earnings Release Tables beginning on Table Page 18.

Table Page 6

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS

REPORTED UNDER U.S. GAAP (e)

(millions of dollars)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Reconciliation of Refining segment operating income to Refining margin (by region), and reconciliation of Refining segment operating income to adjusted Refining segment operating income (by region) (f)
U.S. Gulf Coast region
Refining operating income	$	1,799	$	2,072	$	5,995	$	6,467
Adjustments:

Modification of RVO (a)	—		—		—		(74)


Operating expenses (excluding depreciation and amortization expense reflected below)	761		870		2,121		2,339
Depreciation and amortization expense	375		350		1,082		1,023
Other operating expenses	—		6		11		29


Refining margin	$	2,935	$	3,298	$	9,209	$	9,784

Refining operating income	$	1,799	$	2,072	$	5,995	$	6,467
Adjustments:

Modification of RVO (a)	—		—		—		(74)


Other operating expenses	—		6		11		29


Adjusted Refining operating income	$	1,799	$	2,078	$	6,006	$	6,422

U.S. Mid-Continent region
Refining operating income	$	582	$	600	$	1,507	$	1,701
Adjustments:

Modification of RVO (a)	—		—		—		(19)


Operating expenses (excluding depreciation and amortization expense reflected below)	194		210		569		581
Depreciation and amortization expense	85		85		250		251

Refining margin	$	861	$	895	$	2,326	$	2,514

Refining operating income	$	582	$	600	$	1,507	$	1,701

Adjustment: Modification of RVO (a)	—		—		—		(19)

Adjusted Refining operating income	$	582	$	600	$	1,507	$	1,682

See Notes to Earnings Release Tables beginning on Table Page 18.

Table Page 7

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS

REPORTED UNDER U.S. GAAP (e)

(millions of dollars)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Reconciliation of Refining segment operating income to Refining margin (by region), and reconciliation of Refining segment operating income to adjusted Refining segment operating income (by region) (f) (continued)
North Atlantic region
Refining operating income	$	612	$	785	$	1,552	$	2,293
Adjustments:
Operating expenses (excluding depreciation and amortization expense reflected below)	189		226		547		624
Depreciation and amortization expense	63		62		192		197
Other operating expenses	1		—		1		9
Refining margin	$	865	$	1,073	$	2,292	$	3,123

Refining operating income	$	612	$	785	$	1,552	$	2,293
Adjustment: Other operating expenses	1		—		1		9
Adjusted Refining operating income	$	613	$	785	$	1,553	$	2,302

U.S. West Coast region
Refining operating income	$	452	$	353	$	880	$	1,012
Adjustments:
Modification of RVO (a)	—		—		—		(11)
Operating expenses (excluding depreciation and amortization expense reflected below)	222		210		595		567
Depreciation and amortization expense	74		71		227		211
Other operating expenses	5		—		5		—
Refining margin	$	753	$	634	$	1,707	$	1,779

Refining operating income	$	452	$	353	$	880	$	1,012
Adjustments:


Modification of RVO (a)	—		—		—		(11)


Other operating expenses	5		—		5		—
Adjusted Refining operating income	$	457	$	353	$	885	$	1,001

See Notes to Earnings Release Tables beginning on Table Page 18.

Table Page 8

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

REFINING SEGMENT OPERATING HIGHLIGHTS

(millions of dollars, except per barrel amounts)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Throughput volumes (thousand barrels per day)
Feedstocks:
Heavy sour crude oil	496		325		437		342
Medium/light sour crude oil	312		497		319		438
Sweet crude oil	1,514		1,479		1,488		1,439
Residuals	192		214		209		223
Other feedstocks	119		123		118		117
Total feedstocks	2,633		2,638		2,571		2,559
Blendstocks and other	389		367		403		364
Total throughput volumes	3,022		3,005		2,974		2,923

Yields (thousand barrels per day)
Gasolines and blendstocks	1,473		1,457		1,452		1,434
Distillates	1,158		1,158		1,125		1,107
Other products (g)	428		418		425		409
Total yields	3,059		3,033		3,002		2,950

Operating statistics (e) (h)
Refining margin (from Table Page 5)	$	5,414	$	5,900	$	15,534	$	17,200
Adjusted Refining operating income (from Table Page 5)	$	3,451	$	3,816	$	9,951	$	11,407
Throughput volumes (thousand barrels per day)	3,022		3,005		2,974		2,923

Refining margin per barrel of throughput	$	19.47	$	21.34	$	19.13	$	21.55
Less:
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput	4.91		5.48		4.72		5.15
Depreciation and amortization expense per barrel of throughput	2.15		2.06		2.15		2.11
Adjusted Refining operating income per barrel of throughput	$	12.41	$	13.80	$	12.26	$	14.29

See Notes to Earnings Release Tables beginning on Table Page 18.

Table Page 9

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RENEWABLE DIESEL SEGMENT OPERATING HIGHLIGHTS

(millions of dollars, except per gallon amounts)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Operating statistics (e) (h)
Renewable Diesel margin (from Table Page 5)	$	262	$	314	$	1,214	$	778
Renewable Diesel operating income (from Table Page 5)	$	123	$	212	$	768	$	513
Sales volumes (thousand gallons per day)	2,992		2,231		3,460		2,084

Renewable Diesel margin per gallon of sales	$	0.95	$	1.53	$	1.29	$	1.37
Less:
Operating expenses (excluding depreciation and amortization expense reflected below) per gallon of sales	0.30		0.34		0.29		0.32
Depreciation and amortization expense per gallon of sales	0.20		0.15		0.19		0.15
Renewable Diesel operating income per gallon of sales	$	0.45	$	1.04	$	0.81	$	0.90

See Notes to Earnings Release Tables beginning on Table Page 18.

Table Page 10

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

ETHANOL SEGMENT OPERATING HIGHLIGHTS

(millions of dollars, except per gallon amounts)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Operating statistics (e) (h)
Ethanol margin (from Table Page 6)	$	342	$	183	$	806	$	606
Adjusted Ethanol operating income (from Table Page 6)	$	197	$	1	$	364	$	82
Production volumes (thousand gallons per day)	4,329		3,498		4,319		3,799

Ethanol margin per gallon of production	$	0.86	$	0.57	$	0.68	$	0.59
Less:
Operating expenses (excluding depreciation and amortization expense reflected below) per gallon of production	0.32		0.50		0.32		0.45
Depreciation and amortization expense per gallon of production (b)	0.05		0.07		0.05		0.04
Gain on sale of ethanol plant per gallon of production (b)	—		—		—		0.02

Adjusted Ethanol operating income per gallon of production	$	0.49	$	—	$	0.31	$	0.08

See Notes to Earnings Release Tables beginning on Table Page 18.

Table Page 11

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION

(millions of dollars, except per barrel amounts)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Operating statistics by region (f)
U.S. Gulf Coast region (e) (h)
Refining margin (from Table Page 7)	$	2,935	$	3,298	$	9,209	$	9,784
Adjusted Refining operating income (from Table Page 7)	$	1,799	$	2,078	$	6,006	$	6,422
Throughput volumes (thousand barrels per day)	1,834		1,813		1,783		1,752

Refining margin per barrel of throughput	$	17.39	$	19.76	$	18.92	$	20.45
Less:
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput	4.51		5.21		4.36		4.89
Depreciation and amortization expense per barrel of throughput	2.22		2.09		2.22		2.14
Adjusted Refining operating income per barrel of throughput	$	10.66	$	12.46	$	12.34	$	13.42

U.S. Mid-Continent region (e) (h)
Refining margin (from Table Page 7)	$	861	$	895	$	2,326	$	2,514
Adjusted Refining operating income (from Table Page 7)	$	582	$	600	$	1,507	$	1,682
Throughput volumes (thousand barrels per day)	456		441		461		437

Refining margin per barrel of throughput	$	20.53	$	22.07	$	18.49	$	21.10
Less:
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput	4.62		5.19		4.52		4.88
Depreciation and amortization expense per barrel of throughput	2.02		2.10		1.98		2.11
Adjusted Refining operating income per barrel of throughput	$	13.89	$	14.78	$	11.99	$	14.11

See Notes to Earnings Release Tables beginning on Table Page 18.

Table Page 12

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION

(millions of dollars, except per barrel amounts)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Operating statistics by region (f) (continued)
North Atlantic region (e) (h)
Refining margin (from Table Page 8)	$	865	$	1,073	$	2,292	$	3,123
Adjusted Refining operating income (from Table Page 8)	$	613	$	785	$	1,553	$	2,302
Throughput volumes (thousand barrels per day)	461		479		463		482

Refining margin per barrel of throughput	$	20.39	$	24.34	$	18.14	$	23.72
Less:
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput	4.47		5.11		4.33		4.74
Depreciation and amortization expense per barrel of throughput	1.48		1.43		1.52		1.50
Adjusted Refining operating income per barrel of throughput	$	14.44	$	17.80	$	12.29	$	17.48

U.S. West Coast region (e) (h)
Refining margin (from Table Page 8)	$	753	$	634	$	1,707	$	1,779
Adjusted Refining operating income (from Table Page 8)	$	457	$	353	$	885	$	1,001
Throughput volumes (thousand barrels per day)	271		272		267		252

Refining margin per barrel of throughput	$	30.19	$	25.36	$	23.38	$	25.89
Less:
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput	8.89		8.39		8.15		8.26
Depreciation and amortization expense per barrel of throughput	2.97		2.84		3.11		3.07
Adjusted Refining operating income per barrel of throughput	$	18.33	$	14.13	$	12.12	$	14.56

See Notes to Earnings Release Tables beginning on Table Page 18.

Table Page 13

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Refining
Feedstocks (dollars per barrel)
Brent crude oil	$	86.18	$	97.59	$	82.12	$	102.21
Brent less West Texas Intermediate (WTI) crude oil	3.72		5.83		4.68		3.91
Brent less WTI Houston crude oil	2.21		3.69		3.19		2.28
Brent less Dated Brent crude oil	(0.78)		(2.97)		(0.10)		(2.92)

Brent less Argus Sour Crude Index crude oil	3.43		8.23		5.53		6.58
Brent less Maya crude oil	8.77		13.11		14.16		9.84
Brent less Western Canadian Select Houston crude oil	9.98		17.68		12.19		13.22
WTI crude oil	82.46		91.76		77.44		98.29

Natural gas (dollars per million British Thermal Units)	2.38		7.31		2.21		6.29

RVO (dollars per barrel) (i)	7.42		8.11		7.77		7.45

Product margins (RVO adjusted unless otherwise noted) (dollars per barrel)
U.S. Gulf Coast:
Conventional Blendstock of Oxygenate Blending (CBOB) gasoline less Brent	14.70		5.70		12.57		12.82
Ultra-low-sulfur (ULS) diesel less Brent	30.87		41.01		25.26		36.89
Propylene less Brent (not RVO adjusted)	(57.98)		(46.73)		(46.32)		(38.04)
U.S. Mid-Continent:
CBOB gasoline less WTI	25.46		19.27		22.25		19.04
ULS diesel less WTI	37.10		52.25		32.12		41.81
North Atlantic:
CBOB gasoline less Brent	22.93		20.17		18.96		21.73
ULS diesel less Brent	33.91		44.19		28.19		44.22
U.S. West Coast:
California Reformulated Gasoline Blendstock of Oxygenate Blending 87 gasoline less Brent	43.33		41.48		32.89		36.59
California Air Resources Board diesel less Brent	47.66		43.68		31.43		39.70

See Notes to Earnings Release Tables beginning on Table Page 18.

Table Page 14

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Renewable Diesel
New York Mercantile Exchange ULS diesel (dollars per gallon)	$	3.03	$	3.55	$	2.80	$	3.54
Biodiesel Renewable Identification Number (RIN) (dollars per RIN)	1.40		1.71		1.51		1.61
California Low-Carbon Fuel Standard carbon credit (dollars per metric ton)	74.46		86.21		73.65		109.71

U.S. Gulf Coast (USGC) used cooking oil (dollars per pound)	0.64		0.73		0.61		0.77
USGC distillers corn oil (dollars per pound)	0.72		0.73		0.65		0.77
USGC fancy bleachable tallow (dollars per pound)	0.68		0.78		0.62		0.76

Ethanol

Chicago Board of Trade corn (dollars per bushel)	4.99		6.60		5.95		7.02
New York Harbor ethanol (dollars per gallon)	2.39		2.58		2.42		2.60

Table Page 15

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

OTHER FINANCIAL DATA

(millions of dollars)

(unaudited)


			September 30,			December 31,
			2023			2022
Balance sheet data
Current assets			$	26,577		$	24,133
Cash and cash equivalents included in current assets	5,831	4,862
Inventories included in current assets			7,513			6,752
Current liabilities			17,592			17,461
Valero Energy Corporation stockholders’ equity		25,975			23,561
Total equity		28,057			25,468
Debt and finance lease obligations:
Debt –
Current portion of debt (excluding variable interest entities (VIEs))			$	167		$	—
Debt, less current portion of debt (excluding VIEs)			8,020			8,380
Total debt (excluding VIEs)			8,187			8,380
Current portion of debt attributable to VIEs			963			861
Debt, less current portion of debt attributable to VIEs			—			—
Total debt attributable to VIEs			963			861
Total debt			9,150			9,241
Finance lease obligations –
Current portion of finance lease obligations (excluding VIEs)			179			184
Finance lease obligations, less current portion (excluding VIEs)			1,411			1,453
Total finance lease obligations (excluding VIEs)			1,590			1,637



Current portion of finance lease obligations attributable to VIEs			25			64
Finance lease obligations, less current portion attributable to VIEs			676			693
Total finance lease obligations attributable to VIEs			701			757
Total finance lease obligations			2,291			2,394
Total debt and finance lease obligations			$	11,441		$	11,635



	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Reconciliation of net cash provided by operating activities to adjusted net cash provided by operating activities (e)
Net cash provided by operating activities	$	3,308	$	2,045	$	7,990	$	8,478
Exclude:
Changes in current assets and current liabilities	33		(1,489)		(1,695)		(1,617)
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	82		119		447		294
Adjusted net cash provided by operating activities	$	3,193	$	3,415	$	9,238	$	9,801

See Notes to Earnings Release Tables beginning on Table Page 18.

Table Page 16

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

OTHER FINANCIAL DATA

(millions of dollars, except per share amounts)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Reconciliation of capital investments to capital investments attributable to Valero (e)
Capital expenditures (excluding VIEs)	$	157	$	228	$	468	$	552
Capital expenditures of VIEs:
DGD	61		224		183		682
Other VIEs	2		11		4		30
Deferred turnaround and catalyst cost expenditures (excluding VIEs)	157		139		665		820
Deferred turnaround and catalyst cost expenditures of DGD	17		—		56		13
Investments in nonconsolidated joint ventures	—		—		—		1
Capital investments	394		602		1,376		2,098
Adjustments:
DGD’s capital investments attributable to the other joint venture member	(40)		(112)		(120)		(347)
Capital expenditures of other VIEs	(2)		(11)		(4)		(30)
Capital investments attributable to Valero	$	352	$	479	$	1,252	$	1,721

Dividends per common share	$	1.02	$	0.98	$	3.06	$	2.94

See Notes to Earnings Release Tables beginning on Table Page 18.

Table Page 17

VALERO ENERGY CORPORATION

NOTES TO EARNINGS RELEASE TABLES

(a)Under the Renewable Fuel Standard (RFS) program, the U.S. Environmental Protection Agency (EPA) is required to set annual quotas for the volume of renewable fuels that obligated parties, such as us, must blend into petroleum-based transportation fuels consumed in the U.S. The quotas are used to determine an obligated party’s RVO. The EPA released a final rule on June 3, 2022 that, among other things, modified the volume standards for 2020 and, for the first time, established volume standards for 2021 and 2022.

In 2020, we recognized the cost of the RVO using the 2020 quotas set by the EPA at that time, and in 2021 and the three months ended March 31, 2022, we recognized the cost of the RVO using our estimates of the quotas. As a result of the final rule released by the EPA as noted above, we recognized a benefit of $104 million in the nine months ended September 30, 2022 primarily related to the modification of the 2020 quotas.

(b)Depreciation and amortization expense for the nine months ended September 30, 2022 includes a gain of $23 million on the sale of our ethanol plant located in Jefferson, Wisconsin (Jefferson ethanol plant).

(c)General and administrative expenses (excluding depreciation and amortization expense) for the nine months ended September 30, 2022 includes a charge of $20 million for an environmental reserve adjustment associated with a non-operating site.

(d)“Other income, net” includes the following:

◦a net gain of $11 million in the nine months ended September 30, 2023 related to the early retirement of $199 million aggregate principal amount of various series of our senior notes; and

◦a gain of $26 million in the three months ended September 30, 2022 and a net charge of $24 million in the nine months ended September 30, 2022 related to the early retirement of $1.25 billion and $2.65 billion, respectively, aggregate principal amount of various series of our senior notes.

(e)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 federal and state statutory rate for the U.S.-based adjustments of 22.5 percent and a local statutory income tax rate for foreign-based adjustments. 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.

–Modification of RVO – The net benefit resulting from the modification of our RVO for 2020 and 2021 that was recognized by us in June 2022 is not associated with the cost of the RVO generated by our operations during the nine months ended September 30, 2022. See note (a) for additional details.

–Gain on sale of ethanol plant – The gain on the sale of our Jefferson ethanol plant (see note (b)) is not indicative of our ongoing operations.

Table Page 18

VALERO ENERGY CORPORATION

NOTES TO EARNINGS RELEASE TABLES (Continued)

–Environmental reserve adjustment – The environmental reserve adjustment (see note (c)) is attributable to a site that was shut down by prior owners and subsequently acquired by us (referred to by us as a non-operating site).

–Loss (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 (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 segment operating income excluding the modification of RVO adjustment (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.

◦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 is defined as Refining segment operating income excluding the modification of RVO adjustment (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 the gain on sale of ethanol plant (see note (b)) and 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.

Table Page 19

VALERO ENERGY CORPORATION

NOTES TO EARNINGS RELEASE TABLES (Continued)

DGD’s members use DGD’s operating cash flow (excluding changes in its current assets and current liabilities) to fund its capital investments rather than distribute all of that cash to themselves. Nevertheless, DGD’s operating cash flow is effectively attributable to each member and only 50 percent of DGD’s operating cash flow should be attributed to our net cash provided by operating activities. Therefore, we have adjusted our net cash provided by operating activities for the portion of DGD’s operating cash flow attributable to the other joint venture member’s ownership interest because we believe that it more accurately reflects the operating cash flow available to us to fund our investing and financing activities. The adjustment is calculated as follows (in millions):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
DGD operating cash flow data
Net cash provided by (used in) operating activities	$	(28)	$	512	$	487	$	661
Exclude: Changes in current assets and current liabilities	(192)		273		(408)		73
Adjusted net cash provided by operating activities	164		239		895		588
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	$	82	$	119	$	447	$	294

◦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.

(f)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.

(g)Primarily includes petrochemicals, gas oils, No. 6 fuel oil, petroleum coke, sulfur, and asphalt.

(h)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.

Table Page 20

VALERO ENERGY CORPORATION

NOTES TO EARNINGS RELEASE TABLES (Continued)

(i)The RVO cost represents the average market cost on a per barrel basis to comply with the RFS 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 EPA, on a percentage basis for each class of renewable fuel and adding together the results of each calculation.

Table Page 21

Document and Entity Information	Oct. 26, 2023
Cover [Abstract]
Document type	8-K
Document period end date	Oct. 26, 2023
Entity registrant name	VALERO ENERGY CORP/TX
Entity incorporation, state or country code	DE
Entity file number	001-13175
Entity tax identification number	74-1828067
Entity address, address line one	One Valero Way
Entity address, city or town	San Antonio
Entity address, state or province	TX
Entity address, postal zip code	78249
City area code	210
Local phone number	345-2000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) security	Common Stock, par value $0.01 per share
Trading symbol	VLO
Security exchange name	NYSE
Entity emerging growth company	false
Entity central index key	0001035002
Amendment flag	false