Valero Energy Corporation (NYSE:VLO) (“Valero”) today reported net
income attributable to Valero stockholders of $548 million, or
$1.23 per share, for the second quarter of 2017 compared to $814
million, or $1.73 per share, for the second quarter of
2016. Second quarter 2016 adjusted net income attributable to
Valero stockholders was $503 million, or $1.07 per
share.
“With continued focus on safe and reliable
operations, we delivered another quarter of solid operating and
financial performance,” said Joe Gorder, Valero Chairman, President
and Chief Executive Officer. “We’re encouraged by resilient
product demand and the bullish trend in product inventory
draws.”
RefiningThe refining segment
reported $959 million of operating income for the second quarter of
2017 compared to $1.3 billion for the second quarter of 2016.
Second quarter 2017 operating income was in line with second
quarter 2016 adjusted operating income of $902 million. The
2016 refining segment results have been retrospectively revised to
reflect the operating results of Valero Energy Partners LP
(NYSE:VLP) as a separate segment consistent with Valero’s current
segment presentation, and those revised results have been adjusted
to exclude the lower of cost or market inventory valuation
adjustment and asset impairment loss, as shown in the accompanying
earnings release tables.
Refinery throughput capacity utilization was 96
percent, despite an external power failure at the Benicia refinery
that caused an abrupt shutdown and unplanned maintenance.
Throughput volumes averaged 3.0 million barrels per day in the
second quarter of 2017, which was 192,000 barrels per day higher
than the second quarter of 2016.
The company exported a total of 369,000 barrels
per day of gasoline and diesel during the second quarter.
Biofuel blending costs were $255 million in the
second quarter of 2017, which was $82 million higher than the
second quarter of 2016, mainly due to higher Renewable
Identification Number (RIN) expenses.
EthanolThe ethanol segment
reported $31 million of operating income for the second quarter of
2017 compared to $69 million for the second quarter of 2016.
Adjusted operating income for the second quarter of 2016 was $49
million. The decrease in operating income in the second
quarter of 2017 compared to the second quarter 2016 adjusted amount
is attributed primarily to higher energy costs and strong industry
ethanol production that pressured margins. Ethanol production
volumes averaged 3.8 million gallons per day in the second
quarter of 2017, which was in line with the second quarter of
2016.
VLPThe VLP segment reported $71
million of operating income for the second quarter of 2017 compared
to $52 million for the second quarter of 2016. The
increase in operating income was driven primarily by contributions
from the Meraux and Three Rivers terminals, which were acquired
subsequent to the second quarter of last year, and the Red River
pipeline segment, which was acquired in January 2017.
Corporate and OtherGeneral and
administrative expenses were $178 million in the second
quarter of 2017. The effective tax rate of 26 percent in
the second quarter of 2017 was lower than expected due primarily to
the favorable resolution of an income tax audit.
Investing and Financing
ActivitiesCapital investments totaled $461 million in
the second quarter of 2017, of which $63 million was for
turnarounds and catalyst.
Valero paid $312 million in dividends and
purchased 5.4 million shares of its common stock for
$346 million, resulting in total cash returned to stockholders
of $658 million in the second quarter of 2017. The
company continues to target a total payout ratio of at least 75
percent in 2017. Valero defines total payout ratio as the sum
of dividends and stock buybacks divided by adjusted net income from
continuing operations attributable to Valero
stockholders.
The company generated $1.8 billion of cash from
operating activities in the second quarter of 2017, of which
approximately $700 million was due to changes in working
capital.
Liquidity and Financial
PositionValero ended the second quarter of 2017 with
$8.5 billion of total debt and $5.2 billion of cash and
temporary cash investments. The debt to capital ratio, net of
$2.0 billion in cash, was 24 percent.
Strategic UpdateValero
continues to target $2.7 billion of total capital investments this
year, consisting of $1.1 billion for growth projects and $1.6
billion for sustaining the business.
“We’re pleased with the progress we’ve made on
our growth investments this year,” Gorder commented. “Before
year-end, we expect to see the Wilmington cogeneration plant
running and to have oil flowing through the Diamond
Pipeline.”
Valero expects the Diamond Green Diesel capacity
expansion and the Houston alkylation unit construction to be
completed in the first half of 2018 and 2019,
respectively.
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 ValeroValero Energy
Corporation, through its subsidiaries, is an international
manufacturer and marketer of transportation fuels and other
petrochemical products. Valero, a Fortune 50 company based in
San Antonio, Texas, with approximately 10,000 employees, is an
independent petroleum refiner and ethanol producer, and its assets
include 15 petroleum refineries with a combined throughput
capacity of approximately 3.1 million barrels per day and
11 ethanol plants with a combined production capacity of
1.4 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. In addition, Valero owns the
2 percent general partner interest and a majority limited partner
interest in Valero Energy Partners LP, a midstream master limited
partnership. Valero sells its products in both the wholesale
rack and bulk markets, and approximately 7,400 outlets carry
Valero’s brand names in the U.S., Canada, the U.K. and
Ireland. Please visit www.valero.com for more
information.
Valero ContactsInvestors:John
Locke, Vice President – Investor Relations, 210-345-3077Karen Ngo,
Senior Manager – Investor Relations, 210-345-4574Tom Mahrer,
Manager – Investor Relations, 210-345-1953
Media:Lillian Riojas, 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,” “targeting,” 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 our other reports filed
with the SEC and on Valero’s website at www.valero.com, and VLP’s
annual reports on Form 10-K and quarterly reports on Form 10-Q
filed with the SEC and on VLP’s website at
www.valeroenergypartners.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, adjusted operating income, and
gross margin. We have included these non-GAAP financial
measures to help facilitate the comparison of operating results
between periods. See the accompanying earnings release tables
for a reconciliation of these non-GAAP measures to their most
directly comparable U.S. GAAP measures. In note (d) to the earnings
release tables, we disclose the reasons why we believe our use of
these non-GAAP financial measures provides useful information.
|
VALERO ENERGY CORPORATION AND
SUBSIDIARIES |
EARNINGS RELEASE TABLES |
FINANCIAL HIGHLIGHTS |
(millions of dollars, except per share
amounts) |
(unaudited) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Statement of
income data |
|
|
|
|
|
|
|
Operating
revenues |
$ |
22,254 |
|
|
$ |
19,584 |
|
|
$ |
44,026 |
|
|
$ |
35,298 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
Cost of
sales (excluding the lower of cost or marketinventory valuation
adjustment) |
19,609 |
|
|
17,120 |
|
|
39,037 |
|
|
30,627 |
|
Lower of
cost or market inventory valuation adjustment (a) |
— |
|
|
(454 |
) |
|
— |
|
|
(747 |
) |
Operating
expenses |
1,097 |
|
|
1,001 |
|
|
2,214 |
|
|
2,031 |
|
General
and administrative expenses |
178 |
|
|
159 |
|
|
368 |
|
|
315 |
|
Depreciation and amortization expense |
499 |
|
|
471 |
|
|
999 |
|
|
956 |
|
Asset
impairment loss (b) |
— |
|
|
56 |
|
|
— |
|
|
56 |
|
Total
costs and expenses |
21,383 |
|
|
18,353 |
|
|
42,618 |
|
|
33,238 |
|
Operating
income |
871 |
|
|
1,231 |
|
|
1,408 |
|
|
2,060 |
|
Other
income, net |
16 |
|
|
14 |
|
|
33 |
|
|
23 |
|
Interest
and debt expense, net of capitalized interest |
(119 |
) |
|
(111 |
) |
|
(240 |
) |
|
(219 |
) |
Income
before income tax expense |
768 |
|
|
1,134 |
|
|
1,201 |
|
|
1,864 |
|
Income
tax expense |
196 |
|
|
291 |
|
|
308 |
|
|
508 |
|
Net
income |
572 |
|
|
843 |
|
|
893 |
|
|
1,356 |
|
Less: Net
income attributable to noncontrolling interests |
24 |
|
|
29 |
|
|
40 |
|
|
47 |
|
Net
income attributable toValero Energy Corporation stockholders |
$ |
548 |
|
|
$ |
814 |
|
|
$ |
853 |
|
|
$ |
1,309 |
|
|
|
|
|
|
|
|
|
Earnings per
common share |
$ |
1.23 |
|
|
$ |
1.74 |
|
|
$ |
1.90 |
|
|
$ |
2.79 |
|
Weighted-average common shares outstanding (in millions) |
444 |
|
|
467 |
|
|
446 |
|
|
468 |
|
|
|
|
|
|
|
|
|
Earnings per
common share – assuming dilution |
$ |
1.23 |
|
|
$ |
1.73 |
|
|
$ |
1.90 |
|
|
$ |
2.78 |
|
Weighted-average common shares outstanding – assumingdilution (in
millions) |
446 |
|
|
470 |
|
|
448 |
|
|
471 |
|
|
|
|
|
|
|
|
|
Dividends per
common share |
$ |
0.70 |
|
|
$ |
0.60 |
|
|
$ |
1.40 |
|
|
$ |
1.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Earnings Release Tables. |
VALERO ENERGY CORPORATION AND
SUBSIDIARIES |
EARNINGS RELEASE TABLES |
FINANCIAL HIGHLIGHTS BY SEGMENT |
(millions of dollars) |
(unaudited) |
|
|
Refining (c) |
|
Ethanol |
|
VLP (c) |
|
CorporateandEliminations |
|
Total |
Three Months
Ended June 30, 2017 |
|
|
|
|
|
|
|
|
|
Operating
revenues: |
|
|
|
|
|
|
|
|
|
Operating
revenues from external customers |
$ |
21,415 |
|
|
$ |
839 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
22,254 |
|
Intersegment revenues |
— |
|
|
28 |
|
|
110 |
|
|
(138 |
) |
|
— |
|
Total
operating revenues |
21,415 |
|
|
867 |
|
|
110 |
|
|
(138 |
) |
|
22,254 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
Cost of
sales: |
|
|
|
|
|
|
|
|
|
Cost of
sales from external customers |
18,899 |
|
|
710 |
|
|
— |
|
|
— |
|
|
19,609 |
|
Intersegment cost of sales |
138 |
|
|
— |
|
|
— |
|
|
(138 |
) |
|
— |
|
Total
cost of sales |
19,037 |
|
|
710 |
|
|
— |
|
|
(138 |
) |
|
19,609 |
|
Operating
expenses |
965 |
|
|
107 |
|
|
27 |
|
|
(2 |
) |
|
1,097 |
|
General
and administrative expenses |
— |
|
|
— |
|
|
— |
|
|
178 |
|
|
178 |
|
Depreciation and amortization expense |
454 |
|
|
19 |
|
|
12 |
|
|
14 |
|
|
499 |
|
Total
costs and expenses |
20,456 |
|
|
836 |
|
|
39 |
|
|
52 |
|
|
21,383 |
|
Operating
income |
$ |
959 |
|
|
$ |
31 |
|
|
$ |
71 |
|
|
$ |
(190 |
) |
|
$ |
871 |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended June 30, 2016 |
|
|
|
|
|
|
|
|
|
Operating
revenues: |
|
|
|
|
|
|
|
|
|
Operating
revenues from external customers |
$ |
18,664 |
|
|
$ |
920 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
19,584 |
|
Intersegment revenues |
— |
|
|
45 |
|
|
87 |
|
|
(132 |
) |
|
— |
|
Total
operating revenues |
18,664 |
|
|
965 |
|
|
87 |
|
|
(132 |
) |
|
19,584 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
Cost of
sales (excluding the lower of cost or marketinventory valuation
adjustment): |
|
|
|
|
|
|
|
|
|
Cost of
sales from external customers |
16,322 |
|
|
798 |
|
|
— |
|
|
— |
|
|
17,120 |
|
Intersegment cost of sales |
132 |
|
|
— |
|
|
— |
|
|
(132 |
) |
|
— |
|
Total
cost of sales (excluding the lower of cost ormarket inventory
valuation adjustment) |
16,454 |
|
|
798 |
|
|
— |
|
|
(132 |
) |
|
17,120 |
|
Lower of
cost or market inventory valuationadjustment (a) |
(434 |
) |
|
(20 |
) |
|
— |
|
|
— |
|
|
(454 |
) |
Operating
expenses |
878 |
|
|
99 |
|
|
24 |
|
|
— |
|
|
1,001 |
|
General
and administrative expenses |
— |
|
|
— |
|
|
— |
|
|
159 |
|
|
159 |
|
Depreciation and amortization expense |
430 |
|
|
19 |
|
|
11 |
|
|
11 |
|
|
471 |
|
Asset
impairment loss (b) |
56 |
|
|
— |
|
|
— |
|
|
— |
|
|
56 |
|
Total
costs and expenses |
17,384 |
|
|
896 |
|
|
35 |
|
|
38 |
|
|
18,353 |
|
Operating
income |
$ |
1,280 |
|
|
$ |
69 |
|
|
$ |
52 |
|
|
$ |
(170 |
) |
|
$ |
1,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Operating Highlights by Segment. |
See Notes to Earnings Release Tables. |
VALERO ENERGY CORPORATION AND
SUBSIDIARIES |
EARNINGS RELEASE TABLES |
FINANCIAL HIGHLIGHTS BY SEGMENT |
(millions of dollars) |
(unaudited) |
|
|
Refining (c) |
|
Ethanol |
|
VLP (c) |
|
CorporateandEliminations |
|
Total |
Six Months
Ended June 30, 2017 |
|
|
|
|
|
|
|
|
|
Operating
revenues: |
|
|
|
|
|
|
|
|
|
Operating
revenues from external customers |
$ |
42,302 |
|
|
$ |
1,724 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
44,026 |
|
Intersegment revenues |
— |
|
|
88 |
|
|
216 |
|
|
(304 |
) |
|
— |
|
Total
operating revenues |
42,302 |
|
|
1,812 |
|
|
216 |
|
|
(304 |
) |
|
44,026 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
Cost of
sales: |
|
|
|
|
|
|
|
|
|
Cost of
sales from external customers |
37,540 |
|
|
1,497 |
|
|
— |
|
|
— |
|
|
39,037 |
|
Intersegment cost of sales |
304 |
|
|
— |
|
|
— |
|
|
(304 |
) |
|
— |
|
Total
cost of sales |
37,844 |
|
|
1,497 |
|
|
— |
|
|
(304 |
) |
|
39,037 |
|
Operating
expenses |
1,949 |
|
|
216 |
|
|
51 |
|
|
(2 |
) |
|
2,214 |
|
General
and administrative expenses |
— |
|
|
— |
|
|
— |
|
|
368 |
|
|
368 |
|
Depreciation and amortization expense |
903 |
|
|
46 |
|
|
24 |
|
|
26 |
|
|
999 |
|
Total
costs and expenses |
40,696 |
|
|
1,759 |
|
|
75 |
|
|
88 |
|
|
42,618 |
|
Operating
income |
$ |
1,606 |
|
|
$ |
53 |
|
|
$ |
141 |
|
|
$ |
(392 |
) |
|
$ |
1,408 |
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended June 30, 2016 |
|
|
|
|
|
|
|
|
|
Operating
revenues: |
|
|
|
|
|
|
|
|
|
Operating
revenues from external customers |
$ |
33,584 |
|
|
$ |
1,714 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
35,298 |
|
Intersegment revenues |
— |
|
|
79 |
|
|
166 |
|
|
(245 |
) |
|
— |
|
Total
operating revenues |
33,584 |
|
|
1,793 |
|
|
166 |
|
|
(245 |
) |
|
35,298 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
Cost of
sales (excluding the lower of cost or marketinventory valuation
adjustment): |
|
|
|
|
|
|
|
|
|
Cost of
sales from external customers |
29,121 |
|
|
1,506 |
|
|
— |
|
|
— |
|
|
30,627 |
|
Intersegment cost of sales |
245 |
|
|
— |
|
|
— |
|
|
(245 |
) |
|
— |
|
Total
cost of sales (excluding the lower of cost ormarket inventory
valuation adjustment) |
29,366 |
|
|
1,506 |
|
|
— |
|
|
(245 |
) |
|
30,627 |
|
Lower of
cost or market inventory valuationadjustment (a) |
(697 |
) |
|
(50 |
) |
|
— |
|
|
— |
|
|
(747 |
) |
Operating
expenses |
1,785 |
|
|
198 |
|
|
48 |
|
|
— |
|
|
2,031 |
|
General
and administrative expenses |
— |
|
|
— |
|
|
— |
|
|
315 |
|
|
315 |
|
Depreciation and amortization expense |
879 |
|
|
31 |
|
|
23 |
|
|
23 |
|
|
956 |
|
Asset
impairment loss (b) |
56 |
|
|
— |
|
|
— |
|
|
— |
|
|
56 |
|
Total
costs and expenses |
31,389 |
|
|
1,685 |
|
|
71 |
|
|
93 |
|
|
33,238 |
|
Operating
income |
$ |
2,195 |
|
|
$ |
108 |
|
|
$ |
95 |
|
|
$ |
(338 |
) |
|
$ |
2,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Operating Highlights by Segment. |
See Notes to Earnings Release Tables. |
VALERO ENERGY CORPORATION AND
SUBSIDIARIES |
EARNINGS RELEASE TABLES |
RECONCILIATION OF NON-GAAP MEASURES TO MOST
COMPARABLE AMOUNTS |
REPORTED UNDER U.S. GAAP (d) |
(millions of dollars, except per share
amounts) |
(unaudited) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Reconciliation
of net income attributable to Valero
EnergyCorporation stockholders to adjusted net
incomeattributable to Valero Energy Corporation
stockholders |
|
|
|
|
|
|
|
Net
income attributable to Valero Energy Corporation stockholders |
$ |
548 |
|
|
$ |
814 |
|
|
$ |
853 |
|
|
$ |
1,309 |
|
Exclude
adjustments: |
|
|
|
|
|
|
|
Lower of
cost or market inventory valuationadjustment (a) |
— |
|
|
454 |
|
|
— |
|
|
747 |
|
Income
tax expense related to the lower of cost ormarket inventory
valuation adjustment |
— |
|
|
(87 |
) |
|
— |
|
|
(168 |
) |
Lower of
cost or market inventory valuationadjustment, net of taxes |
— |
|
|
367 |
|
|
— |
|
|
579 |
|
Asset
impairment loss (b) |
— |
|
|
(56 |
) |
|
— |
|
|
(56 |
) |
Total
adjustments |
— |
|
|
311 |
|
|
— |
|
|
523 |
|
Adjusted
net income attributable toValero Energy Corporation
stockholders |
$ |
548 |
|
|
$ |
503 |
|
|
$ |
853 |
|
|
$ |
786 |
|
|
|
|
|
|
|
|
|
Reconciliation
of earnings per common share – assumingdilution to
adjusted earnings per common share –assuming
dilution |
|
|
|
|
|
|
|
Earnings
per common share – assuming dilution |
$ |
1.23 |
|
|
$ |
1.73 |
|
|
$ |
1.90 |
|
|
$ |
2.78 |
|
Exclude
adjustments: |
|
|
|
|
|
|
|
Lower of
cost or market inventory valuationadjustment, net of taxes |
— |
|
|
0.78 |
|
|
— |
|
|
1.23 |
|
Asset
impairment loss (b) |
— |
|
|
(0.12 |
) |
|
— |
|
|
(0.12 |
) |
Total
adjustments |
— |
|
|
0.66 |
|
|
— |
|
|
1.11 |
|
Adjusted
earnings per common share – assuming dilution |
$ |
1.23 |
|
|
$ |
1.07 |
|
|
$ |
1.90 |
|
|
$ |
1.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Earnings Release Tables. |
VALERO ENERGY CORPORATION AND
SUBSIDIARIES |
EARNINGS RELEASE TABLES |
RECONCILIATION OF NON-GAAP MEASURES TO MOST
COMPARABLE AMOUNTS |
REPORTED UNDER U.S. GAAP (d) |
(millions of dollars) |
(unaudited) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Reconciliation
of operating income to gross marginand
reconciliation of operating income to
adjustedoperating income |
|
|
|
|
|
|
|
Refining segment (c) |
|
|
|
|
|
|
|
Operating
income |
$ |
959 |
|
|
$ |
1,280 |
|
|
$ |
1,606 |
|
|
$ |
2,195 |
|
Add
back: |
|
|
|
|
|
|
|
Lower of
cost or market inventory valuation adjustment (a) |
— |
|
|
(434 |
) |
|
— |
|
|
(697 |
) |
Operating
expenses |
965 |
|
|
878 |
|
|
1,949 |
|
|
1,785 |
|
Depreciation and amortization expense |
454 |
|
|
430 |
|
|
903 |
|
|
879 |
|
Asset
impairment loss (b) |
— |
|
|
56 |
|
|
— |
|
|
56 |
|
Gross
margin |
$ |
2,378 |
|
|
$ |
2,210 |
|
|
$ |
4,458 |
|
|
$ |
4,218 |
|
|
|
|
|
|
|
|
|
Operating
income |
$ |
959 |
|
|
$ |
1,280 |
|
|
$ |
1,606 |
|
|
$ |
2,195 |
|
Exclude
adjustments: |
|
|
|
|
|
|
|
Lower of
cost or market inventory valuation adjustment (a) |
— |
|
|
434 |
|
|
— |
|
|
697 |
|
Asset
impairment loss (b) |
— |
|
|
(56 |
) |
|
— |
|
|
(56 |
) |
Adjusted
operating income |
$ |
959 |
|
|
$ |
902 |
|
|
$ |
1,606 |
|
|
$ |
1,554 |
|
|
|
|
|
|
|
|
|
Ethanol segment |
|
|
|
|
|
|
|
Operating
income |
$ |
31 |
|
|
$ |
69 |
|
|
$ |
53 |
|
|
$ |
108 |
|
Add
back: |
|
|
|
|
|
|
|
Lower of
cost or market inventory valuation adjustment (a) |
— |
|
|
(20 |
) |
|
— |
|
|
(50 |
) |
Operating
expenses |
107 |
|
|
99 |
|
|
216 |
|
|
198 |
|
Depreciation and amortization expense |
19 |
|
|
19 |
|
|
46 |
|
|
31 |
|
Gross
margin |
$ |
157 |
|
|
$ |
167 |
|
|
$ |
315 |
|
|
$ |
287 |
|
|
|
|
|
|
|
|
|
Operating
income |
$ |
31 |
|
|
$ |
69 |
|
|
$ |
53 |
|
|
$ |
108 |
|
Exclude
adjustment: Lower of cost or market inventoryvaluation adjustment
(a) |
— |
|
|
20 |
|
|
— |
|
|
50 |
|
Adjusted
operating income |
$ |
31 |
|
|
$ |
49 |
|
|
$ |
53 |
|
|
$ |
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Earnings Release Tables. |
VALERO ENERGY CORPORATION AND
SUBSIDIARIES |
EARNINGS RELEASE TABLES |
RECONCILIATION OF NON-GAAP MEASURES TO MOST
COMPARABLE AMOUNTS |
REPORTED UNDER U.S. GAAP (d) |
(millions of dollars) |
(unaudited) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Reconciliation
of operating income to gross marginand
reconciliation of operating income to
adjustedoperating income by refining segment
region (e) |
|
|
|
|
|
|
|
U.S. Gulf Coast region (c) |
|
|
|
|
|
|
|
Operating
income |
$ |
483 |
|
|
$ |
449 |
|
|
$ |
856 |
|
|
$ |
868 |
|
Add
back: |
|
|
|
|
|
|
|
Lower of
cost or market inventory valuation adjustment (a) |
— |
|
|
(18 |
) |
|
— |
|
|
(37 |
) |
Operating
expenses |
566 |
|
|
506 |
|
|
1,138 |
|
|
1,025 |
|
Depreciation and amortization expense |
279 |
|
|
257 |
|
|
558 |
|
|
513 |
|
Asset
impairment loss (b) |
— |
|
|
56 |
|
|
— |
|
|
56 |
|
Gross
margin |
$ |
1,328 |
|
|
$ |
1,250 |
|
|
$ |
2,552 |
|
|
$ |
2,425 |
|
|
|
|
|
|
|
|
|
Operating
income |
$ |
483 |
|
|
$ |
449 |
|
|
$ |
856 |
|
|
$ |
868 |
|
Exclude
adjustments: |
|
|
|
|
|
|
|
Lower of
cost or market inventory valuation adjustment (a) |
— |
|
|
18 |
|
|
— |
|
|
37 |
|
Asset
impairment loss (b) |
— |
|
|
(56 |
) |
|
— |
|
|
(56 |
) |
Adjusted
operating income |
$ |
483 |
|
|
$ |
487 |
|
|
$ |
856 |
|
|
$ |
887 |
|
|
|
|
|
|
|
|
|
U.S. Mid-Continent region (c) |
|
|
|
|
|
|
|
Operating
income |
$ |
179 |
|
|
$ |
124 |
|
|
$ |
286 |
|
|
$ |
196 |
|
Add
back: |
|
|
|
|
|
|
|
Lower of
cost or market inventory valuation adjustment (a) |
— |
|
|
(4 |
) |
|
— |
|
|
(9 |
) |
Operating
expenses |
146 |
|
|
136 |
|
|
292 |
|
|
271 |
|
Depreciation and amortization expense |
66 |
|
|
63 |
|
|
132 |
|
|
132 |
|
Gross
margin |
$ |
391 |
|
|
$ |
319 |
|
|
$ |
710 |
|
|
$ |
590 |
|
|
|
|
|
|
|
|
|
Operating
income |
$ |
179 |
|
|
$ |
124 |
|
|
$ |
286 |
|
|
$ |
196 |
|
Exclude
adjustment: Lower of cost or market inventoryvaluation adjustment
(a) |
— |
|
|
4 |
|
|
— |
|
|
9 |
|
Adjusted
operating income |
$ |
179 |
|
|
$ |
120 |
|
|
$ |
286 |
|
|
$ |
187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Earnings Release Tables. |
VALERO ENERGY CORPORATION AND
SUBSIDIARIES |
EARNINGS RELEASE TABLES |
RECONCILIATION OF NON-GAAP MEASURES TO MOST
COMPARABLE AMOUNTS |
REPORTED UNDER U.S. GAAP (d) |
(millions of dollars) |
(unaudited) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Reconciliation
of operating income to gross marginand
reconciliation of operating income to
adjustedoperating income by refining segment
region (e)(continued) |
|
|
|
|
|
|
|
North Atlantic region |
|
|
|
|
|
|
|
Operating
income |
$ |
261 |
|
|
$ |
566 |
|
|
$ |
458 |
|
|
$ |
969 |
|
Add
back: |
|
|
|
|
|
|
|
Lower of
cost or market inventory valuation adjustment (a) |
— |
|
|
(410 |
) |
|
— |
|
|
(646 |
) |
Operating
expenses |
109 |
|
|
119 |
|
|
241 |
|
|
244 |
|
Depreciation and amortization expense |
49 |
|
|
52 |
|
|
97 |
|
|
102 |
|
Gross
margin |
$ |
419 |
|
|
$ |
327 |
|
|
$ |
796 |
|
|
$ |
669 |
|
|
|
|
|
|
|
|
|
Operating
income |
$ |
261 |
|
|
$ |
566 |
|
|
$ |
458 |
|
|
$ |
969 |
|
Exclude
adjustment: Lower of cost or market inventoryvaluation adjustment
(a) |
— |
|
|
410 |
|
|
— |
|
|
646 |
|
Adjusted
operating income |
$ |
261 |
|
|
$ |
156 |
|
|
$ |
458 |
|
|
$ |
323 |
|
|
|
|
|
|
|
|
|
U.S. West Coast region |
|
|
|
|
|
|
|
Operating
income |
$ |
36 |
|
|
$ |
141 |
|
|
$ |
6 |
|
|
$ |
162 |
|
Add
back: |
|
|
|
|
|
|
|
Lower of
cost or market inventory valuation adjustment (a) |
— |
|
|
(2 |
) |
|
— |
|
|
(5 |
) |
Operating
expenses |
144 |
|
|
117 |
|
|
278 |
|
|
245 |
|
Depreciation and amortization expense |
60 |
|
|
58 |
|
|
116 |
|
|
132 |
|
Gross
margin |
$ |
240 |
|
|
$ |
314 |
|
|
$ |
400 |
|
|
$ |
534 |
|
|
|
|
|
|
|
|
|
Operating
income |
$ |
36 |
|
|
$ |
141 |
|
|
$ |
6 |
|
|
$ |
162 |
|
Exclude
adjustment: Lower of cost or market inventoryvaluation adjustment
(a) |
— |
|
|
2 |
|
|
— |
|
|
5 |
|
Adjusted
operating income |
$ |
36 |
|
|
$ |
139 |
|
|
$ |
6 |
|
|
$ |
157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Earnings Release Tables. |
VALERO ENERGY CORPORATION AND
SUBSIDIARIES |
EARNINGS RELEASE TABLES |
REFINING SEGMENT OPERATING
HIGHLIGHTS |
(millions of dollars, except per barrel
amounts) |
(unaudited) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Throughput
volumes (thousand barrels per day) |
|
|
|
|
|
|
|
Feedstocks: |
|
|
|
|
|
|
|
Heavy
sour crude oil |
517 |
|
|
380 |
|
|
483 |
|
|
404 |
|
Medium/light sour crude oil |
508 |
|
|
505 |
|
|
482 |
|
|
519 |
|
Sweet
crude oil |
1,308 |
|
|
1,196 |
|
|
1,277 |
|
|
1,184 |
|
Residuals |
228 |
|
|
272 |
|
|
231 |
|
|
281 |
|
Other
feedstocks |
142 |
|
|
170 |
|
|
145 |
|
|
152 |
|
Total
feedstocks |
2,703 |
|
|
2,523 |
|
|
2,618 |
|
|
2,540 |
|
Blendstocks and other |
316 |
|
|
304 |
|
|
311 |
|
|
313 |
|
Total
throughput volumes |
3,019 |
|
|
2,827 |
|
|
2,929 |
|
|
2,853 |
|
|
|
|
|
|
|
|
|
Yields
(thousand barrels per day) |
|
|
|
|
|
|
|
Gasolines
and blendstocks |
1,458 |
|
|
1,408 |
|
|
1,409 |
|
|
1,393 |
|
Distillates |
1,167 |
|
|
1,071 |
|
|
1,129 |
|
|
1,069 |
|
Other
products (f) |
434 |
|
|
379 |
|
|
429 |
|
|
425 |
|
Total
yields |
3,059 |
|
|
2,858 |
|
|
2,967 |
|
|
2,887 |
|
|
|
|
|
|
|
|
|
Operating
statistics (c) |
|
|
|
|
|
|
|
Gross
margin (d) |
$ |
2,378 |
|
|
$ |
2,210 |
|
|
$ |
4,458 |
|
|
$ |
4,218 |
|
Adjusted
operating income (d) |
$ |
959 |
|
|
$ |
902 |
|
|
$ |
1,606 |
|
|
$ |
1,554 |
|
Throughput volumes (thousand barrels per day) |
3,019 |
|
|
2,827 |
|
|
2,929 |
|
|
2,853 |
|
|
|
|
|
|
|
|
|
Throughput margin per barrel (g) |
$ |
8.66 |
|
|
$ |
8.59 |
|
|
$ |
8.41 |
|
|
$ |
8.12 |
|
Operating
costs per barrel: |
|
|
|
|
|
|
|
Operating
expenses |
3.51 |
|
|
3.41 |
|
|
3.68 |
|
|
3.44 |
|
Depreciation and amortization expense |
1.66 |
|
|
1.67 |
|
|
1.70 |
|
|
1.69 |
|
Total
operating costs per barrel |
5.17 |
|
|
5.08 |
|
|
5.38 |
|
|
5.13 |
|
Adjusted
operating income per barrel (h) |
$ |
3.49 |
|
|
$ |
3.51 |
|
|
$ |
3.03 |
|
|
$ |
2.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Earnings Release Tables. |
VALERO ENERGY CORPORATION AND
SUBSIDIARIES |
EARNINGS RELEASE TABLES |
ETHANOL SEGMENT OPERATING
HIGHLIGHTS |
(millions of dollars, except per gallon
amounts) |
(unaudited) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Operating
statistics |
|
|
|
|
|
|
|
Gross
margin (d) |
$ |
157 |
|
|
$ |
167 |
|
|
$ |
315 |
|
|
$ |
287 |
|
Adjusted
operating income (d) |
$ |
31 |
|
|
$ |
49 |
|
|
$ |
53 |
|
|
$ |
58 |
|
Production volumes (thousand gallons per day) |
3,775 |
|
|
3,826 |
|
|
3,908 |
|
|
3,783 |
|
|
|
|
|
|
|
|
|
Gross
margin per gallon of production (g) |
$ |
0.46 |
|
|
$ |
0.48 |
|
|
$ |
0.45 |
|
|
$ |
0.42 |
|
Operating
costs per gallon of production: |
|
|
|
|
|
|
|
Operating
expenses |
0.31 |
|
|
0.28 |
|
|
0.31 |
|
|
0.29 |
|
Depreciation and amortization expense |
0.06 |
|
|
0.06 |
|
|
0.06 |
|
|
0.05 |
|
Total
operating costs per gallon of production |
0.37 |
|
|
0.34 |
|
|
0.37 |
|
|
0.34 |
|
Adjusted
operating income per gallon of production (h) |
$ |
0.09 |
|
|
$ |
0.14 |
|
|
$ |
0.08 |
|
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Earnings Release Tables. |
VALERO ENERGY CORPORATION AND
SUBSIDIARIES |
EARNINGS RELEASE TABLES |
VLP SEGMENT OPERATING HIGHLIGHTS
(c) |
(millions of dollars, except per barrel
amounts) |
(unaudited) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Volumes
(thousand barrels per day) |
|
|
|
|
|
|
|
Pipeline
transportation throughput |
1,003 |
|
|
851 |
|
|
983 |
|
|
885 |
|
Terminaling throughput |
2,853 |
|
|
2,146 |
|
|
2,794 |
|
|
1,998 |
|
|
|
|
|
|
|
|
|
Operating
statistics |
|
|
|
|
|
|
|
Pipeline
transportation revenue |
$ |
25 |
|
|
$ |
19 |
|
|
$ |
48 |
|
|
$ |
39 |
|
Pipeline
transportation revenue per barrel (g) |
$ |
0.27 |
|
|
$ |
0.25 |
|
|
$ |
0.27 |
|
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
Terminaling revenue |
$ |
84 |
|
|
$ |
68 |
|
|
$ |
167 |
|
|
$ |
127 |
|
Terminaling revenue per barrel (g) |
$ |
0.33 |
|
|
$ |
0.35 |
|
|
$ |
0.33 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
Storage
and other revenue |
$ |
1 |
|
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Total
operating revenues |
$ |
110 |
|
|
$ |
87 |
|
|
$ |
216 |
|
|
$ |
166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Earnings Release Tables. |
VALERO ENERGY CORPORATION AND
SUBSIDIARIES |
EARNINGS RELEASE TABLES |
REFINING SEGMENT OPERATING HIGHLIGHTS BY
REGION |
(millions of dollars, except per barrel
amounts) |
(unaudited) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Operating
statistics by region (e) |
|
|
|
|
|
|
|
U.S. Gulf Coast region (c) |
|
|
|
|
|
|
|
Gross
margin (d) |
$ |
1,328 |
|
|
$ |
1,250 |
|
|
$ |
2,552 |
|
|
$ |
2,425 |
|
Adjusted
operating income (d) |
$ |
483 |
|
|
$ |
487 |
|
|
$ |
856 |
|
|
$ |
887 |
|
Throughput volumes (thousand barrels per day) |
1,781 |
|
|
1,605 |
|
|
1,742 |
|
|
1,649 |
|
|
|
|
|
|
|
|
|
Throughput margin per barrel (g) |
$ |
8.20 |
|
|
$ |
8.55 |
|
|
$ |
8.09 |
|
|
$ |
8.08 |
|
Operating
costs per barrel: |
|
|
|
|
|
|
|
Operating
expenses |
3.49 |
|
|
3.46 |
|
|
3.61 |
|
|
3.41 |
|
Depreciation and amortization expense |
1.73 |
|
|
1.76 |
|
|
1.76 |
|
|
1.71 |
|
Total
operating costs per barrel |
5.22 |
|
|
5.22 |
|
|
5.37 |
|
|
5.12 |
|
Adjusted
operating income per barrel (h) |
$ |
2.98 |
|
|
$ |
3.33 |
|
|
$ |
2.72 |
|
|
$ |
2.96 |
|
|
|
|
|
|
|
|
|
U.S. Mid-Continent region (c) |
|
|
|
|
|
|
|
Gross
margin (d) |
$ |
391 |
|
|
$ |
319 |
|
|
$ |
710 |
|
|
$ |
590 |
|
Adjusted
operating income (d) |
$ |
179 |
|
|
$ |
120 |
|
|
$ |
286 |
|
|
$ |
187 |
|
Throughput volumes (thousand barrels per day) |
481 |
|
|
462 |
|
|
463 |
|
|
458 |
|
|
|
|
|
|
|
|
|
Throughput margin per barrel (g) |
$ |
8.91 |
|
|
$ |
7.59 |
|
|
$ |
8.47 |
|
|
$ |
7.06 |
|
Operating
costs per barrel: |
|
|
|
|
|
|
|
Operating
expenses |
3.33 |
|
|
3.24 |
|
|
3.48 |
|
|
3.25 |
|
Depreciation and amortization expense |
1.50 |
|
|
1.48 |
|
|
1.58 |
|
|
1.57 |
|
Total
operating costs per barrel |
4.83 |
|
|
4.72 |
|
|
5.06 |
|
|
4.82 |
|
Adjusted
operating income per barrel (h) |
$ |
4.08 |
|
|
$ |
2.87 |
|
|
$ |
3.41 |
|
|
$ |
2.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Earnings Release Tables. |
VALERO ENERGY CORPORATION AND
SUBSIDIARIES |
EARNINGS RELEASE TABLES |
REFINING SEGMENT OPERATING HIGHLIGHTS BY
REGION |
(millions of dollars, except per barrel
amounts) |
(unaudited) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Operating
statistics by region (e) (continued) |
|
|
|
|
|
|
|
North Atlantic region |
|
|
|
|
|
|
|
Gross
margin (d) |
$ |
419 |
|
|
$ |
327 |
|
|
$ |
796 |
|
|
$ |
669 |
|
Adjusted
operating income (d) |
$ |
261 |
|
|
$ |
156 |
|
|
$ |
458 |
|
|
$ |
323 |
|
Throughput volumes (thousand barrels per day) |
491 |
|
|
487 |
|
|
490 |
|
|
480 |
|
|
|
|
|
|
|
|
|
Throughput margin per barrel (g) |
$ |
9.39 |
|
|
$ |
7.39 |
|
|
$ |
8.97 |
|
|
$ |
7.66 |
|
Operating
costs per barrel: |
|
|
|
|
|
|
|
Operating
expenses |
2.44 |
|
|
2.69 |
|
|
2.71 |
|
|
2.79 |
|
Depreciation and amortization expense |
1.09 |
|
|
1.17 |
|
|
1.10 |
|
|
1.17 |
|
Total
operating costs per barrel |
3.53 |
|
|
3.86 |
|
|
3.81 |
|
|
3.96 |
|
Adjusted
operating income per barrel (h) |
$ |
5.86 |
|
|
$ |
3.53 |
|
|
$ |
5.16 |
|
|
$ |
3.70 |
|
|
|
|
|
|
|
|
|
U.S. West Coast region |
|
|
|
|
|
|
|
Gross
margin (d) |
$ |
240 |
|
|
$ |
314 |
|
|
$ |
400 |
|
|
$ |
534 |
|
Adjusted
operating income (d) |
$ |
36 |
|
|
$ |
139 |
|
|
$ |
6 |
|
|
$ |
157 |
|
Throughput volumes (thousand barrels per day) |
266 |
|
|
273 |
|
|
234 |
|
|
266 |
|
|
|
|
|
|
|
|
|
Throughput margin per barrel (g) |
$ |
9.93 |
|
|
$ |
12.67 |
|
|
$ |
9.47 |
|
|
$ |
11.05 |
|
Operating
costs per barrel: |
|
|
|
|
|
|
|
Operating
expenses |
5.99 |
|
|
4.74 |
|
|
6.60 |
|
|
5.08 |
|
Depreciation and amortization expense |
2.47 |
|
|
2.33 |
|
|
2.73 |
|
|
2.73 |
|
Total
operating costs per barrel |
8.46 |
|
|
7.07 |
|
|
9.33 |
|
|
7.81 |
|
Adjusted
operating income per barrel (h) |
$ |
1.47 |
|
|
$ |
5.60 |
|
|
$ |
0.14 |
|
|
$ |
3.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Earnings Release Tables. |
VALERO ENERGY CORPORATION AND
SUBSIDIARIES |
EARNINGS RELEASE TABLES |
AVERAGE MARKET REFERENCE PRICES AND
DIFFERENTIALS |
(unaudited) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Feedstocks
(dollars per barrel) |
|
|
|
|
|
|
|
Brent
crude oil |
$ |
50.91 |
|
|
$ |
46.94 |
|
|
$ |
52.78 |
|
|
$ |
41.04 |
|
Brent
less West Texas Intermediate (WTI) crude oil |
2.67 |
|
|
1.47 |
|
|
2.74 |
|
|
1.68 |
|
Brent
less Alaska North Slope (ANS) crude oil |
0.22 |
|
|
1.22 |
|
|
0.52 |
|
|
0.96 |
|
Brent
less Louisiana Light Sweet (LLS) crude oil |
0.60 |
|
|
(0.39 |
) |
|
0.86 |
|
|
(0.17 |
) |
Brent
less Argus Sour Crude Index (ASCI) crude oil (i) |
3.94 |
|
|
5.01 |
|
|
4.50 |
|
|
5.19 |
|
Brent
less Maya crude oil |
7.03 |
|
|
9.21 |
|
|
8.48 |
|
|
9.15 |
|
LLS crude
oil |
50.31 |
|
|
47.33 |
|
|
51.92 |
|
|
41.21 |
|
LLS less
ASCI crude oil (i) |
3.34 |
|
|
5.40 |
|
|
3.64 |
|
|
5.36 |
|
LLS less
Maya crude oil |
6.43 |
|
|
9.60 |
|
|
7.62 |
|
|
9.32 |
|
WTI crude
oil |
48.24 |
|
|
45.47 |
|
|
50.04 |
|
|
39.36 |
|
|
|
|
|
|
|
|
|
Natural gas
(dollars per million British Thermal Units) |
3.14 |
|
|
2.08 |
|
|
3.05 |
|
|
2.01 |
|
|
|
|
|
|
|
|
|
Products
(dollars per barrel, unless otherwise noted) |
|
|
|
|
|
|
|
U.S. Gulf
Coast: |
|
|
|
|
|
|
|
CBOB
gasoline less Brent |
10.38 |
|
|
11.13 |
|
|
9.58 |
|
|
9.47 |
|
Ultra-low-sulfur diesel less Brent |
10.99 |
|
|
9.47 |
|
|
11.06 |
|
|
8.70 |
|
Propylene
less Brent |
0.04 |
|
|
(11.79 |
) |
|
0.63 |
|
|
(7.09 |
) |
CBOB
gasoline less LLS |
10.98 |
|
|
10.74 |
|
|
10.44 |
|
|
9.30 |
|
Ultra-low-sulfur diesel less LLS |
11.59 |
|
|
9.08 |
|
|
11.92 |
|
|
8.53 |
|
Propylene
less LLS |
0.64 |
|
|
(12.18 |
) |
|
1.49 |
|
|
(7.26 |
) |
U.S.
Mid-Continent: |
|
|
|
|
|
|
|
CBOB
gasoline less WTI |
14.16 |
|
|
13.77 |
|
|
13.44 |
|
|
11.89 |
|
Ultra-low-sulfur diesel less WTI |
14.60 |
|
|
11.72 |
|
|
14.30 |
|
|
11.38 |
|
North
Atlantic: |
|
|
|
|
|
|
|
CBOB
gasoline less Brent |
12.57 |
|
|
14.63 |
|
|
10.63 |
|
|
12.47 |
|
Ultra-low-sulfur diesel less Brent |
12.21 |
|
|
11.17 |
|
|
12.14 |
|
|
10.35 |
|
U.S. West
Coast: |
|
|
|
|
|
|
|
CARBOB 87
gasoline less ANS |
23.01 |
|
|
21.56 |
|
|
19.89 |
|
|
19.45 |
|
CARB
diesel less ANS |
14.32 |
|
|
14.71 |
|
|
14.58 |
|
|
12.95 |
|
CARBOB 87
gasoline less WTI |
25.46 |
|
|
21.81 |
|
|
22.11 |
|
|
20.17 |
|
CARB
diesel less WTI |
16.77 |
|
|
14.96 |
|
|
16.80 |
|
|
13.67 |
|
New York
Harbor corn crush (dollars per gallon) |
0.26 |
|
|
0.23 |
|
|
0.26 |
|
|
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Earnings Release Tables. |
VALERO ENERGY CORPORATION AND
SUBSIDIARIES |
EARNINGS RELEASE TABLES |
OTHER FINANCIAL DATA |
(millions of dollars) |
(unaudited) |
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
|
2017 |
|
2016 |
Balance sheet
data |
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
$ |
15,731 |
|
|
$ |
16,800 |
|
Cash and temporary cash investments included in current
assets |
|
5,207 |
|
|
4,816 |
|
Inventories included in current assets |
|
|
|
|
5,674 |
|
|
5,709 |
|
Current
liabilities |
|
|
|
|
7,683 |
|
|
8,328 |
|
Current portion of debt and capital lease obligations
includedin current liabilities |
|
121 |
|
|
115 |
|
Debt and capital lease obligations, less current portion |
|
|
|
8,366 |
|
|
7,886 |
|
Total
debt and capital lease obligations |
|
|
|
|
8,487 |
|
|
8,001 |
|
Valero Energy Corporation stockholders’ equity |
|
|
|
19,923 |
|
|
20,024 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Cash flow
data |
|
|
|
|
|
|
|
Net cash
provided by operating activities |
$ |
1,797 |
|
|
$ |
2,319 |
|
|
$ |
2,785 |
|
|
$ |
2,959 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Earnings Release Tables. |
VALERO ENERGY CORPORATION AND
SUBSIDIARIESNOTES TO EARNINGS RELEASE
TABLES
(a) During the three months ended June 30, 2016, we recorded a
change in our lower of cost or market inventory valuation reserve
that was established on December 31, 2015, resulting in a
noncash benefit of $454 million ($434 million and
$20 million attributable to our refining and ethanol segments,
respectively). During the six months ended June 30, 2016, we
recorded a change in our lower of cost or market inventory
valuation reserve that resulted in a noncash benefit of
$747 million ($697 million and $50 million
attributable to our refining and ethanol segments,
respectively).
(b) In June 2016, we recognized an asset impairment
loss of $56 million representing all of the remaining carrying
value of the long-lived assets of our crude oil and refined product
terminal and transshipment facility in Aruba.
(c) Effective January 1, 2017, 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 — VLP. The results of the VLP
segment, which include the results of our majority-owned master
limited partnership referred to by the same name, were transferred
from the refining segment. Comparable prior period information for
our refining segment (as well as that segment’s U.S. Gulf Coast and
Mid-Continent regions) and VLP segment has been retrospectively
adjusted to reflect our current segment presentation.
(d) We use certain financial measures (as noted below) in
the earnings release tables and accompanying earnings release that
are not defined under United States (U.S.) generally accepted
accounting principles (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 lower of cost or market inventory valuation adjustment, its
related income tax effect, and the asset impairment loss.
- 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.
- Gross margin is defined as operating income
excluding the lower of cost or market inventory valuation
adjustment, operating expenses, depreciation and amortization
expense, and the asset impairment loss.
- Adjusted operating income is defined as
operating income excluding the lower of cost or market inventory
valuation adjustment and the asset impairment loss.
(e) The refining segment regions reflected herein contain the
following refineries: U.S. Gulf Coast- Corpus
Christi East, Corpus Christi West, Houston, Meraux, Port Arthur,
St. Charles, Texas City, and Three Rivers Refineries; U.S.
Mid-Continent- Ardmore, McKee, and Memphis Refineries;
North Atlantic- Pembroke and Quebec City
Refineries; and U.S. West Coast-
Benicia and Wilmington Refineries.
(f) Primarily includes petrochemicals, gas oils, No. 6 fuel
oil, petroleum coke, sulfur, and asphalt.
(g) Throughput margin per barrel represents
gross margin (defined in (d) above) for our refining segment or
refining segment regions divided by the respective throughput
volumes. Gross margin per gallon of production represents gross
margin (defined in (d) above) for our ethanol segment divided by
production volumes. Pipeline transportation revenue per barrel and
terminaling revenue per barrel represents pipeline transportation
revenue and terminaling revenue for our VLP segment divided by
pipeline transportation throughput and terminaling throughput
volumes, respectively. Throughput and production volumes are
calculated by multiplying throughput and production volumes per day
(as provided in the accompanying tables) by the number of days in
the applicable period.
(h) Adjusted operating income per barrel
represents adjusted operating income (defined in (d) above) for our
refining segment or refining segment regions divided by the
respective throughput volumes. Adjusted operating income per gallon
of production represents adjusted operating income (defined in (d)
above) for our ethanol segment divided by production volumes.
Throughput and production volumes are calculated by multiplying
throughput and production volumes per day (as provided in the
accompanying tables) by the number of days in the applicable
period.
(i) Average market reference price differentials
to Mars crude oil have been replaced by average market reference
price differentials to Argus Sour Crude Index (ASCI) crude oil.
Mars crude oil is one of the three grades of sour crude oil used to
create ASCI crude oil, and therefore, ASCI crude oil is a more
comprehensive price marker for medium sour crude oil. Accordingly,
the price differentials for ASCI crude oil for the three and six
months ended June 30, 2016 are included to conform to the current
presentation.
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