SAN ANTONIO, Nov. 4, 2014 /PRNewswire/ -- Valero Energy
Corporation (NYSE: VLO, "Valero") today reported net income
attributable to Valero stockholders of $1.1
billion, or $2.00 per share,
for the third quarter of 2014 compared to $312 million, or $0.57 per share, for the third quarter of
2013.
Operating income in the third quarter of 2014 was approximately
$1.7 billion versus $532 million
in the third quarter of 2013. The $1.1
billion increase in operating income resulted mainly from
wider discounts for sweet and sour crude oils relative to Brent
crude oil, stronger gasoline margins in most regions, and higher
refining throughput volumes. These positive drivers were
partially offset by weaker distillate margins relative to Brent
crude oil in most regions and higher natural gas costs in the third
quarter of 2014 versus the third quarter of 2013.
Third quarter 2014 refining throughput volumes averaged 2.8
million barrels per day, an increase of 42,000 barrels per day from
the third quarter of 2013. The increase in volumes was due
primarily to less turnaround activity and higher throughput
capacity utilization, which was supported by strong product exports
and increased availability of North American light crude oil on the
U.S. Gulf Coast. Valero's refineries operated at 98 percent
throughput capacity utilization in the third quarter of 2014.
"Our strong performance during the quarter reflects the
capabilities of our team and our assets to capitalize on market
opportunities," said Valero CEO and President Joe Gorder. "Our ability to do so has been
enhanced by the capital invested in our refineries and logistics
systems. In addition to solid operations, we increased our dividend
for the second time in 2014, and so far this year, we have returned
more cash via stock buybacks than we did in all of 2013.
"We continued to advance our refining and logistics capital
investments, which enable us to process more North American crude
oil. We completed a 70,000 barrels-per-day rail unloading facility
at our Port Arthur refinery, and
we received additional rail cars. We secured the option to purchase
a 50 percent interest in the announced Diamond Pipeline, which when
completed, will connect our Memphis refinery to the crude oil hub at
Cushing, Oklahoma. We also
completed our first drop-down sale to Valero Energy Partners LP in
the third quarter of 2014."
"As we enter the fourth quarter, our business continues to
perform well and our growth investments are progressing," Gorder
said. "We have completed investments and are ready to receive
advantaged crude at our Quebec
refinery when the Enbridge Line 9B pipeline reversal starts
up. Later this quarter, we expect to complete the
hydrocracker revamp at our Meraux refinery, which will increase the
refinery's yield of ultra low sulfur diesel and jet fuel. The two
crude topping units at our Corpus
Christi and Houston
refineries are progressing as planned, and we expect these units
will significantly reduce feedstock costs for both of these
refineries when complete in 2016."
The ethanol segment reported record third quarter operating
income of $198 million versus
$113 million in the third quarter of
2013. The $85 million increase
in operating income was mainly due to higher gross margin per
gallon driven by lower corn costs and increased volumes with the
start-up of Valero's eleventh ethanol plant in Mount Vernon, Indiana in August 2014.
"Our ethanol business continues to generate impressive returns
for Valero, delivering a record $628
million in operating income in the first three quarters of
2014," Gorder said. "We are also pleased with our Mount Vernon ethanol plant's safe and timely
start-up."
Regarding cash flows in the third quarter of 2014, capital
expenditures were $622 million, of
which $123 million was for
turnarounds and catalyst. Valero increased its quarterly
common stock dividend 10 percent to $0.275 per share, paid $145 million in dividends, and purchased 7
million shares of its common stock for $344
million. Subsequent to the third quarter of 2014,
Valero bought 3 million shares of its common stock for $138 million and announced a common stock
dividend of $0.275 per share for the
fourth quarter of 2014. Valero has purchased 18.4 million
shares for $937 million in 2014.
Valero ended the third quarter of 2014 with $6.4 billion in total debt and $4.2 billion of cash and temporary cash
investments, of which $231 million
was held by Valero Energy Partners LP.
Valero expects 2014 capital expenditures, including turnarounds
and catalyst, to be approximately $2.9
billion, including $1.4
billion for stay-in-business capital and $1.5 billion for growth investments. More
than 50 percent of the planned growth investments will be used to
strengthen and expand the company's logistics system.
Valero expects 2015 capital expenditures, including turnarounds
and catalyst, to be approximately $2.8
billion, including $1.5
billion for stay-in-business capital and $1.3 billion for growth investments.
Consistent with its strategy, Valero expects over
35 percent of its 2015 growth investments will be for light
crude oil processing and more than 30 percent will be for
logistics. The company believes that most of the logistics
investments will be eligible for future sales to Valero Energy
Partners LP.
Valero's senior management will hold a conference call at
11 a.m. ET today to discuss this
earnings release and provide an update on company operations.
A live broadcast of the conference call will be available on the
company's website at www.valero.com.
About Valero
Valero Energy Corporation, through its subsidiaries, is an
international manufacturer and marketer of transportation fuels,
other petrochemical products and power. Valero subsidiaries employ
approximately 10,000 people, and assets include 15 petroleum
refineries with a combined throughput capacity of approximately 2.9
million barrels per day, 11 ethanol plants with a combined
production capacity of 1.3 billion gallons per year, a 50-megawatt
wind farm, and renewable diesel production from a joint venture.
Through subsidiaries, Valero owns the general partner of Valero
Energy Partners LP (NYSE: VLP), a midstream master limited
partnership. Approximately 7,400 outlets carry the Valero,
Diamond Shamrock, Shamrock, and Beacon brands in the United States and the Caribbean; Ultramar in Canada; and Texaco in the United Kingdom and Ireland. Valero is a Fortune 500 company
based in San Antonio. Please visit
www.valero.com for more information.
Valero Contacts
Investors:
John Locke, Executive Director –
Investor Relations, 210-345-3077
Karen Ngo, Manager – Investor
Relations, 210-345-4574
Media:
Bill Day, Vice President – Media and
Community Relations, 210-345-2928
To download our investor relations mobile app, which offers
access to SEC filings, press releases, unit quotes, and upcoming
events, please visit Apple's iTunes App
Store for your iPhone and iPad or Google's Play Store for
your Android mobile device.
Safe-Harbor Statement
Statements 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," 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. 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 and quarterly reports on Form 10-Q, filed with the Securities
and Exchange Commission and on Valero's website at
www.valero.com.
VALERO ENERGY
CORPORATION AND SUBSIDIARIES
|
EARNINGS
RELEASE
|
(Millions of
Dollars, Except per Share, per Barrel, and per Gallon
Amounts)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Statement of
Income Data (a):
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
|
$
|
34,408
|
|
|
$
|
36,137
|
|
|
$
|
102,985
|
|
|
$
|
103,645
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
31,023
|
|
|
33,931
|
|
|
93,820
|
|
|
96,139
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining
|
|
987
|
|
|
954
|
|
|
2,926
|
|
|
2,742
|
|
Retail
|
|
—
|
|
|
—
|
|
|
—
|
|
|
226
|
|
Ethanol
|
|
118
|
|
|
102
|
|
|
358
|
|
|
281
|
|
General and
administrative expenses (b)
|
|
180
|
|
|
170
|
|
|
510
|
|
|
579
|
|
Depreciation
and amortization expense
|
|
430
|
|
|
448
|
|
|
1,265
|
|
|
1,283
|
|
Total costs
and expenses
|
|
32,738
|
|
|
35,605
|
|
|
98,879
|
|
|
101,250
|
|
Operating
income
|
|
1,670
|
|
|
532
|
|
|
4,106
|
|
|
2,395
|
|
Other income,
net
|
|
11
|
|
|
17
|
|
|
38
|
|
|
42
|
|
Interest and debt
expense, net of capitalized interest
|
|
(98)
|
|
|
(102)
|
|
|
(296)
|
|
|
(263)
|
|
Income from
continuing operations before income tax expense
|
|
1,583
|
|
|
447
|
|
|
3,848
|
|
|
2,174
|
|
Income tax
expense
|
|
521
|
|
|
123
|
|
|
1,293
|
|
|
739
|
|
Income from
continuing operations
|
|
1,062
|
|
|
324
|
|
|
2,555
|
|
|
1,435
|
|
Income (loss) from
discontinued operations (a)
|
|
—
|
|
|
—
|
|
|
(64)
|
|
|
6
|
|
Net income
|
|
1,062
|
|
|
324
|
|
|
2,491
|
|
|
1,441
|
|
Less: Net
income attributable to noncontrolling interests (c)
|
|
3
|
|
|
12
|
|
|
16
|
|
|
9
|
|
Net income
attributable to Valero Energy Corporation stockholders
|
|
$
|
1,059
|
|
|
$
|
312
|
|
|
$
|
2,475
|
|
|
$
|
1,432
|
|
Net income
attributable to Valero Energy Corporation
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
1,059
|
|
|
$
|
312
|
|
|
$
|
2,539
|
|
|
$
|
1,426
|
|
Discontinued
operations
|
|
—
|
|
|
—
|
|
|
(64)
|
|
|
6
|
|
Total
|
|
$
|
1,059
|
|
|
$
|
312
|
|
|
$
|
2,475
|
|
|
$
|
1,432
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
2.01
|
|
|
$
|
0.58
|
|
|
$
|
4.78
|
|
|
$
|
2.61
|
|
Discontinued
operations
|
|
—
|
|
|
—
|
|
|
(0.12)
|
|
|
0.01
|
|
Total
|
|
$
|
2.01
|
|
|
$
|
0.58
|
|
|
$
|
4.66
|
|
|
$
|
2.62
|
|
Weighted-average common shares outstanding (in millions)
|
|
526
|
|
|
540
|
|
|
529
|
|
|
544
|
|
Earnings per
common share – assuming dilution:
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
2.00
|
|
|
$
|
0.57
|
|
|
$
|
4.76
|
|
|
$
|
2.60
|
|
Discontinued
operations
|
|
—
|
|
|
—
|
|
|
(0.12)
|
|
|
0.01
|
|
Total
|
|
$
|
2.00
|
|
|
$
|
0.57
|
|
|
$
|
4.64
|
|
|
$
|
2.61
|
|
Weighted-average common shares outstanding - assuming dilution (in millions)
|
|
530
|
|
|
545
|
|
|
533
|
|
|
549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per
common share
|
|
$
|
0.275
|
|
|
$
|
0.225
|
|
|
$
|
0.775
|
|
|
$
|
0.625
|
|
See Notes to Earnings Release.
VALERO ENERGY
CORPORATION AND SUBSIDIARIES
|
EARNINGS
RELEASE
|
(Millions of
Dollars, Except per Share, per Barrel, and per Gallon
Amounts)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Operating income
by business segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining
(a)
|
|
$
|
1,664
|
|
|
$
|
600
|
|
|
$
|
4,023
|
|
|
$
|
2,727
|
|
Retail
|
|
—
|
|
|
—
|
|
|
—
|
|
|
81
|
|
Ethanol
|
|
198
|
|
|
113
|
|
|
628
|
|
|
222
|
|
Corporate
(b)
|
|
(192)
|
|
|
(181)
|
|
|
(545)
|
|
|
(635)
|
|
Total
|
|
$
|
1,670
|
|
|
$
|
532
|
|
|
$
|
4,106
|
|
|
$
|
2,395
|
|
Depreciation and
amortization expense by business segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining
|
|
$
|
406
|
|
|
$
|
426
|
|
|
$
|
1,194
|
|
|
$
|
1,153
|
|
Retail
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41
|
|
Ethanol
|
|
12
|
|
|
11
|
|
|
36
|
|
|
33
|
|
Corporate
(d)
|
|
12
|
|
|
11
|
|
|
35
|
|
|
56
|
|
Total
|
|
$
|
430
|
|
|
$
|
448
|
|
|
$
|
1,265
|
|
|
$
|
1,283
|
|
Operating
highlights:
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining
(a):
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput margin per
barrel
|
|
$
|
11.81
|
|
|
$
|
7.76
|
|
|
$
|
10.86
|
|
|
$
|
9.16
|
|
Operating costs per
barrel:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
3.81
|
|
|
3.74
|
|
|
3.90
|
|
|
3.79
|
|
Depreciation
and amortization expense
|
|
1.57
|
|
|
1.67
|
|
|
1.59
|
|
|
1.60
|
|
Total
operating costs per barrel
|
|
5.38
|
|
|
5.41
|
|
|
5.49
|
|
|
5.39
|
|
Operating income per
barrel
|
|
$
|
6.43
|
|
|
$
|
2.35
|
|
|
$
|
5.37
|
|
|
$
|
3.77
|
|
Throughput volumes
(thousand barrels per day):
|
|
|
|
|
|
|
|
|
|
|
|
|
Feedstocks:
|
|
|
|
|
|
|
|
|
|
|
|
|
Heavy sour
crude oil
|
|
473
|
|
|
464
|
|
|
460
|
|
|
482
|
|
Medium/light
sour crude oil
|
|
465
|
|
|
453
|
|
|
482
|
|
|
445
|
|
Sweet crude
oil
|
|
1,208
|
|
|
1,096
|
|
|
1,119
|
|
|
1,027
|
|
Residuals
|
|
237
|
|
|
344
|
|
|
225
|
|
|
295
|
|
Other
feedstocks
|
|
123
|
|
|
107
|
|
|
134
|
|
|
103
|
|
Total
feedstocks
|
|
2,506
|
|
|
2,464
|
|
|
2,420
|
|
|
2,352
|
|
Blendstocks and
other
|
|
308
|
|
|
308
|
|
|
326
|
|
|
297
|
|
Total
throughput volumes
|
|
2,814
|
|
|
2,772
|
|
|
2,746
|
|
|
2,649
|
|
Yields (thousand
barrels per day):
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasolines and
blendstocks
|
|
1,338
|
|
|
1,328
|
|
|
1,317
|
|
|
1,269
|
|
Distillates
|
|
1,087
|
|
|
1,047
|
|
|
1,049
|
|
|
956
|
|
Other products
(e)
|
|
420
|
|
|
428
|
|
|
413
|
|
|
450
|
|
Total
yields
|
|
2,845
|
|
|
2,803
|
|
|
2,779
|
|
|
2,675
|
|
See Notes to Earnings Release.
VALERO ENERGY
CORPORATION AND SUBSIDIARIES
|
EARNINGS
RELEASE
|
(Millions of
Dollars, Except per Share, per Barrel, and per Gallon
Amounts)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Refining operating
highlights by region (f):
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Gulf Coast
(a):
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
927
|
|
|
$
|
350
|
|
|
$
|
2,470
|
|
|
$
|
1,349
|
|
Throughput
volumes (thousand barrels per day)
|
|
1,613
|
|
|
1,560
|
|
|
1,589
|
|
|
1,505
|
|
Throughput
margin per barrel
|
|
$
|
11.47
|
|
|
$
|
7.88
|
|
|
$
|
11.00
|
|
|
$
|
8.62
|
|
Operating
costs per barrel:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
3.63
|
|
|
3.69
|
|
|
3.69
|
|
|
3.70
|
|
Depreciation
and amortization expense
|
|
1.59
|
|
|
1.75
|
|
|
1.61
|
|
|
1.63
|
|
Total operating costs per barrel
|
|
5.22
|
|
|
5.44
|
|
|
5.30
|
|
|
5.33
|
|
Operating
income per barrel
|
|
$
|
6.25
|
|
|
$
|
2.44
|
|
|
$
|
5.70
|
|
|
$
|
3.29
|
|
U.S.
Mid-Continent:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
470
|
|
|
$
|
153
|
|
|
$
|
950
|
|
|
$
|
973
|
|
Throughput
volumes (thousand barrels per day)
|
|
469
|
|
|
441
|
|
|
431
|
|
|
429
|
|
Throughput
margin per barrel
|
|
$
|
16.24
|
|
|
$
|
9.22
|
|
|
$
|
13.76
|
|
|
$
|
13.52
|
|
Operating
costs per barrel:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
3.80
|
|
|
3.67
|
|
|
4.03
|
|
|
3.58
|
|
Depreciation
and amortization expense
|
|
1.56
|
|
|
1.77
|
|
|
1.66
|
|
|
1.64
|
|
Total operating costs per barrel
|
|
5.36
|
|
|
5.44
|
|
|
5.69
|
|
|
5.22
|
|
Operating
income per barrel
|
|
$
|
10.88
|
|
|
$
|
3.78
|
|
|
$
|
8.07
|
|
|
$
|
8.30
|
|
North
Atlantic:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
239
|
|
|
$
|
175
|
|
|
$
|
582
|
|
|
$
|
431
|
|
Throughput
volumes (thousand barrels per day)
|
|
467
|
|
|
495
|
|
|
466
|
|
|
450
|
|
Throughput
margin per barrel
|
|
$
|
10.02
|
|
|
$
|
7.86
|
|
|
$
|
9.10
|
|
|
$
|
7.88
|
|
Operating
costs per barrel:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
3.29
|
|
|
3.06
|
|
|
3.40
|
|
|
3.38
|
|
Depreciation
and amortization expense
|
|
1.17
|
|
|
0.97
|
|
|
1.13
|
|
|
0.99
|
|
Total operating costs per barrel
|
|
4.46
|
|
|
4.03
|
|
|
4.53
|
|
|
4.37
|
|
Operating
income per barrel
|
|
$
|
5.56
|
|
|
$
|
3.83
|
|
|
$
|
4.57
|
|
|
$
|
3.51
|
|
U.S. West
Coast:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss)
|
|
$
|
28
|
|
|
$
|
(78)
|
|
|
$
|
21
|
|
|
$
|
(26)
|
|
Throughput
volumes (thousand barrels per day)
|
|
265
|
|
|
276
|
|
|
260
|
|
|
265
|
|
Throughput
margin per barrel
|
|
$
|
9.14
|
|
|
$
|
4.60
|
|
|
$
|
8.38
|
|
|
$
|
7.30
|
|
Operating
costs per barrel:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
5.84
|
|
|
5.39
|
|
|
5.91
|
|
|
5.31
|
|
Depreciation
and amortization expense
|
|
2.14
|
|
|
2.28
|
|
|
2.17
|
|
|
2.34
|
|
Total operating costs per barrel
|
|
7.98
|
|
|
7.67
|
|
|
8.08
|
|
|
7.65
|
|
Operating
income (loss) per barrel
|
|
$
|
1.16
|
|
|
$
|
(3.07)
|
|
|
$
|
0.30
|
|
|
$
|
(0.35)
|
|
See Notes to Earnings Release.
VALERO ENERGY
CORPORATION AND SUBSIDIARIES
|
EARNINGS
RELEASE
|
(Millions of
Dollars, Except per Share, per Barrel, and per Gallon
Amounts)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Average market
reference prices and differentials:
|
|
|
|
|
|
|
|
|
|
|
|
|
Feedstocks
(dollars per barrel):
|
|
|
|
|
|
|
|
|
|
|
|
|
Brent crude
oil
|
|
$
|
103.28
|
|
|
$
|
109.69
|
|
|
$
|
106.97
|
|
|
$
|
108.56
|
|
Brent less
West Texas Intermediate (WTI) crude oil
|
|
5.78
|
|
|
3.86
|
|
|
7.21
|
|
|
10.45
|
|
Brent less
Alaska North Slope (ANS) crude oil
|
|
1.77
|
|
|
(1.28)
|
|
|
1.44
|
|
|
0.04
|
|
Brent less
Louisiana Light Sweet (LLS) crude oil
|
|
3.07
|
|
|
(1.72)
|
|
|
3.12
|
|
|
(2.00)
|
|
Brent less
Mars crude oil
|
|
6.73
|
|
|
3.44
|
|
|
7.12
|
|
|
3.10
|
|
Brent less
Maya crude oil
|
|
12.45
|
|
|
10.21
|
|
|
14.95
|
|
|
8.45
|
|
LLS
crude oil
|
|
100.21
|
|
|
111.41
|
|
|
103.85
|
|
|
110.56
|
|
LLS less Mars
crude oil
|
|
3.66
|
|
|
5.16
|
|
|
4.00
|
|
|
5.10
|
|
LLS less Maya
crude oil
|
|
9.38
|
|
|
11.93
|
|
|
11.83
|
|
|
10.45
|
|
WTI crude
oil
|
|
97.50
|
|
|
105.83
|
|
|
99.76
|
|
|
98.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
(dollars per million British Thermal Units)
|
|
3.96
|
|
|
3.55
|
|
|
4.58
|
|
|
3.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products (dollars
per barrel, unless otherwise noted):
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Gulf
Coast:
|
|
|
|
|
|
|
|
|
|
|
|
|
CBOB gasoline
less Brent
|
|
6.04
|
|
|
3.97
|
|
|
5.05
|
|
|
5.39
|
|
Ultra-low-sulfur diesel less Brent
|
|
13.92
|
|
|
16.86
|
|
|
13.96
|
|
|
16.87
|
|
Propylene less
Brent
|
|
3.39
|
|
|
(5.18)
|
|
|
0.34
|
|
|
(1.82)
|
|
CBOB gasoline
less LLS
|
|
9.11
|
|
|
2.25
|
|
|
8.17
|
|
|
3.39
|
|
Ultra-low-sulfur diesel less LLS
|
|
16.99
|
|
|
15.14
|
|
|
17.08
|
|
|
14.87
|
|
Propylene less
LLS
|
|
6.46
|
|
|
(6.90)
|
|
|
3.46
|
|
|
(3.82)
|
|
U.S.
Mid-Continent:
|
|
|
|
|
|
|
|
|
|
|
|
|
CBOB gasoline
less WTI
|
|
13.96
|
|
|
14.46
|
|
|
14.35
|
|
|
21.47
|
|
Ultra-low-sulfur diesel less WTI
|
|
21.73
|
|
|
22.86
|
|
|
22.86
|
|
|
29.21
|
|
North Atlantic:
|
|
|
|
|
|
|
|
|
|
|
|
|
CBOB gasoline
less Brent
|
|
11.57
|
|
|
10.99
|
|
|
9.55
|
|
|
10.41
|
|
Ultra-low-sulfur diesel less Brent
|
|
15.20
|
|
|
18.11
|
|
|
17.33
|
|
|
18.33
|
|
U.S. West
Coast:
|
|
|
|
|
|
|
|
|
|
|
|
|
CARBOB 87
gasoline less ANS
|
|
17.48
|
|
|
10.70
|
|
|
15.80
|
|
|
15.33
|
|
CARB diesel
less ANS
|
|
20.19
|
|
|
17.98
|
|
|
18.26
|
|
|
18.81
|
|
CARBOB 87
gasoline less WTI
|
|
21.49
|
|
|
15.84
|
|
|
21.57
|
|
|
25.74
|
|
CARB diesel
less WTI
|
|
24.20
|
|
|
23.12
|
|
|
24.03
|
|
|
29.22
|
|
New York
Harbor corn crush (dollars per gallon)
|
|
0.81
|
|
|
0.64
|
|
|
0.90
|
|
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Earnings Release.
VALERO ENERGY
CORPORATION AND SUBSIDIARIES
|
EARNINGS
RELEASE
|
(Millions of
Dollars, Except per Share, per Barrel, and per Gallon
Amounts)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Ethanol:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
198
|
|
|
$
|
113
|
|
|
$
|
628
|
|
|
$
|
222
|
|
Production (thousand
gallons per day)
|
|
3,556
|
|
|
3,376
|
|
|
3,311
|
|
|
3,201
|
|
Gross margin per
gallon of production
|
|
$
|
1.00
|
|
|
$
|
0.73
|
|
|
$
|
1.13
|
|
|
$
|
0.61
|
|
Operating costs per
gallon of production:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
0.36
|
|
|
0.33
|
|
|
0.40
|
|
|
0.32
|
|
Depreciation
and amortization expense
|
|
0.04
|
|
|
0.04
|
|
|
0.04
|
|
|
0.04
|
|
Total
operating costs per gallon of production
|
|
0.40
|
|
|
0.37
|
|
|
0.44
|
|
|
0.36
|
|
Operating income per
gallon of production
|
|
$
|
0.60
|
|
|
$
|
0.36
|
|
|
$
|
0.69
|
|
|
$
|
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December 31,
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
Balance Sheet
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
$
|
19,666
|
|
|
$
|
19,277
|
|
Cash and temporary
cash investments, including $231 and $375, respectively, held by
Valero Energy Partners LP, included in current assets
|
|
4,191
|
|
|
4,292
|
|
Inventories included
in current assets
|
|
6,860
|
|
|
5,758
|
|
Replacement cost
(market value) of inventories in excess of LIFO carrying
amounts
|
|
5,773
|
|
|
6,851
|
|
Current
liabilities
|
|
13,460
|
|
|
13,123
|
|
Current portion of
debt and capital lease obligations included in current
liabilities
|
|
600
|
|
|
303
|
|
Debt and capital
lease obligations, less current portion
|
|
5,783
|
|
|
6,261
|
|
Total debt and
capital lease obligations
|
|
6,383
|
|
|
6,564
|
|
Valero Energy
Corporation stockholders' equity
|
|
20,554
|
|
|
19,460
|
|
See Notes to Earnings Release.
VALERO ENERGY CORPORATION AND
SUBSIDIARIES
NOTES TO EARNINGS RELEASE
(a)
|
In May 2014, we
decided to abandon our Aruba Refinery, except for the associated
crude oil and refined products terminal assets that we continue to
operate. As a result of our decision, the results attributable to
the Aruba Refinery operations have been presented as discontinued
operations and the operating highlights for the refining segment
and the U.S. Gulf Coast region exclude the Aruba Refinery for all
periods presented. Even though we suspended refining operations in
2012, we continued to maintain the refining assets to allow them to
be restarted and did not abandon them until our recent decision to
no longer pursue options to restart refining operations.
|
|
|
|
Because of our
decision to abandon the refining assets, we believe the Government
of Aruba (GOA) will enforce certain land lease provisions requiring
us to dismantle the refinery assets. As a result, "Income (loss)
from discontinued operations" for the nine months ended September
30, 2014 includes a charge of $59 million for an asset retirement
obligation and a charge of $4 million for other contractual
obligations. We had not recognized an asset retirement obligation
previously due to our belief that the GOA would not enforce the
lease provision as long as we intended to operate the refining
assets.
|
|
|
(b)
|
The decrease in
general and administrative expenses for the nine months ended
September 30, 2014 compared to the nine months ended September 30,
2013 is due primarily to administrative expenses in 2013 associated
with our former retail business that did not recur due to the
separation of that business in May 2013, including costs incurred
to effect that separation, and costs related to various
environmental and legal matters.
|
|
|
(c)
|
We consolidate the
financial statements of the entities described below due to our
controlling interests. The earnings (losses) incurred by these
entities that are attributable to the owners of the noncontrolling
interests are subtracted from (added back to) net income to arrive
at net income attributable to Valero stockholders.
|
|
|
|
•
|
Valero Energy
Partners LP (VLP) - On December 16, 2013, VLP, a master limited
partnership formed by us, completed its initial public offering of
17,250,000 common units representing a 29.4 percent limited partner
interest in VLP. We own a 2 percent general partner interest and a
68.6 percent limited partner interest. VLP's assets include crude
oil and refined petroleum products pipeline and terminal systems in
the U.S. Gulf Coast and U.S. Mid-Continent regions that are
integral to the operations of our Ardmore, McKee, Memphis, Port
Arthur, and Three Rivers Refineries.
|
|
|
|
•
|
Diamond Green Diesel
Holdings LLC (DGD) - We own a 50 percent interest in DGD and have
lent DGD $221 million to finance approximately 60 percent of the
construction costs of a plant built by DGD that processes animal
fats, used cooking oils, and other vegetable oils into renewable
green diesel. The plant began operations at the end of June 2013
and is located next to our St. Charles Refinery in Norco,
Louisiana.
|
|
|
|
•
|
PI Dock Facilities
LLC (PI Dock) - We own a 50 percent interest in PI Dock and have
agreed to lend PI Dock up to $90 million to finance construction
costs of a crude dock and certain shared facilities. PI Dock has
agreed to construct and operate the crude dock and related
facilities to be located on Pleasure Island, Texas, which is near
our Port Arthur Refinery.
|
|
|
|
•
|
Transport
Maritime St-Laurent Inc. (TMSL) - We own a 50 percent interest in
TMSL. TMSL owns and charters two vessels to us for the
transportation of crude oil from our Montreal East Terminal to our
Quebec City Refinery.
|
|
|
(d)
|
The decrease in
depreciation and amortization expense for the nine months ended
September 30, 2014 compared to the nine months ended September 30,
2013 is due primarily to the loss on the sale of certain corporate
property in 2013.
|
|
|
(e)
|
Primarily includes
petrochemicals, gas oils, No. 6 fuel oil, petroleum coke, sulfur,
and asphalt.
|
|
|
(f)
|
The 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.
|
SOURCE Valero Energy Corporation