Valero Energy Corporation (NYSE:VLO) (“Valero”) today reported net
income attributable to Valero stockholders of $841 million, or
$1.91 per share, for the third quarter of 2017 compared to $613
million, or $1.33 per share, for the third quarter of
2016. Third quarter 2016 adjusted net income attributable to
Valero stockholders of $571 million, or $1.24 per share,
excludes a $42 million income tax benefit from the disposition of
Aruba assets.
“Hurricane Harvey disrupted operations at five
of our refineries during the quarter,” said Joe Gorder, Valero
Chairman, President and Chief Executive Officer. “I’m proud
of our team’s response and commitment to the safety of our workers,
their families, and surrounding communities during the recovery
efforts.”
Valero worked closely with local, state, and
federal government entities to address storm impacts. The
company also provided millions of dollars of financial and other
assistance to employees, affected communities, and charitable
organizations.
“Despite the extent of the storm’s impact, we
are pleased with our financial performance for the quarter and
remain optimistic for the fourth quarter,” continued Gorder.
“We are encouraged by domestic and global economic growth, and we
expect low oil prices and solid product demand to continue into
2018.”
RefiningThe refining segment
reported $1.4 billion of operating income for the third quarter of
2017 compared to $934 million for the third quarter of 2016, which
has 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. The
increase in operating income was driven primarily by higher
gasoline and distillate margins and wider discounts for domestic
sweet crude oils relative to Brent crude oil, partly offset by
higher premiums for residual feedstocks and narrower discounts for
medium and heavy sour crude oils versus Brent.
Refinery throughput capacity utilization was 92
percent, and throughput volumes averaged 2.9 million barrels
per day in the third quarter of 2017, which was 33,000 barrels per
day higher than the third quarter of 2016.
The company exported a total of 339,000 barrels
per day of gasoline and diesel during the third quarter of
2017.
Biofuel blending costs of $230 million for the
third quarter of 2017 were $32 million higher than the third
quarter of 2016, mainly due to higher Renewable Identification
Number (RIN) expenses.
EthanolThe ethanol segment
reported $82 million of operating income for the third quarter of
2017 compared to $106 million for the third quarter of 2016.
The decrease in operating income is attributed primarily to higher
corn prices and lower distillers grain prices that pressured
margins. Ethanol production volumes averaged 4.0 million
gallons per day in the third quarter of 2017, which was 217,000
gallons per day higher than the third quarter of 2016.
VLPThe VLP segment reported $69
million of operating income for the third quarter of 2017 compared
to $56 million for the third quarter of 2016. The
increase in operating income was driven primarily by contributions
from the Meraux and Three Rivers terminals, which were acquired in
September of last year, and the Red River pipeline segment, which
was acquired in January 2017.
Earlier today, VLP announced the acquisition of
the Port Arthur terminal assets and Parkway Pipeline LLC from
Valero for $508 million. The transaction is expected to close
on November 1.
Corporate and OtherGeneral and
administrative expenses were $229 million, and the effective
tax rate was 30 percent for the third quarter of 2017.
Investing and Financing
ActivitiesCapital investments totaled $565 million
for the third quarter of 2017, of which $73 million was for
turnarounds and catalyst.
Valero returned $600 million to stockholders in
the third quarter, of which $309 million was paid as dividends
and the balance was used to purchase 4.2 million shares of its
common stock, resulting in a total payout ratio of 58 percent for
the first nine months of 2017. The company continues to
target a total payout ratio between 40 and 50 percent of adjusted
net cash provided by operating activities for 2017. Valero
defines total payout ratio as the sum of dividends and stock
buybacks divided by net cash provided by operating activities
adjusted for changes in working capital.
The company generated approximately $1 billion
of net cash from operating activities in the third quarter of
2017. Included in this amount is the negative impact from a
$315 million increase in working capital. Excluding the
change in working capital, net cash generated was approximately
$1.4 billion.
Liquidity and Financial
PositionValero ended the third 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 are making excellent progress on our growth
investments, with the Wilmington cogeneration plant and Diamond
Pipeline expected to be online in December,” said Gorder. “We
are also pleased with the progress of our investments in Texas and
expansion into Mexico, which will extend our product supply chain,
internalize secondary costs, and provide opportunities for
third-party revenue growth.”
During the quarter, the company announced the
signing of long-term agreements with IEnova to use terminals to be
constructed at the Port of Veracruz and near the cities of Puebla
and Mexico City to import refined products into central Mexico
beginning in late 2018. Additionally, Valero announced
investments in pipelines and terminals in central Texas and a
marine terminal in Pasadena, Texas, which are expected to be
completed in 2019.
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,
refining margin, and ethanol 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 (e) 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 September 30, |
|
Nine Months Ended September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Statement of
income data |
|
|
|
|
|
|
|
Operating
revenues |
$ |
23,562 |
|
|
$ |
19,649 |
|
|
$ |
67,588 |
|
|
$ |
54,947 |
|
Cost of
sales: |
|
|
|
|
|
|
|
Cost of
materials and other |
20,329 |
|
|
17,033 |
|
|
59,366 |
|
|
47,660 |
|
Operating
expenses (excluding depreciation andamortization expense reflected
below) |
1,125 |
|
|
1,062 |
|
|
3,339 |
|
|
3,093 |
|
Depreciation and amortization expense |
484 |
|
|
458 |
|
|
1,457 |
|
|
1,391 |
|
Lower of
cost or market inventory valuation adjustment (a) |
— |
|
|
— |
|
|
— |
|
|
(747 |
) |
Total
cost of sales |
21,938 |
|
|
18,553 |
|
|
64,162 |
|
|
51,397 |
|
Other
operating expenses (b) |
44 |
|
|
— |
|
|
44 |
|
|
— |
|
General
and administrative expenses (excludingdepreciation and amortization
expense reflected below) |
229 |
|
|
192 |
|
|
597 |
|
|
507 |
|
Depreciation and amortization expense |
13 |
|
|
12 |
|
|
39 |
|
|
35 |
|
Asset
impairment loss (c) |
— |
|
|
— |
|
|
— |
|
|
56 |
|
Operating
income |
1,338 |
|
|
892 |
|
|
2,746 |
|
|
2,952 |
|
Other
income, net |
17 |
|
|
12 |
|
|
50 |
|
|
35 |
|
Interest
and debt expense, net of capitalized interest |
(114 |
) |
|
(115 |
) |
|
(354 |
) |
|
(334 |
) |
Income
before income tax expense |
1,241 |
|
|
789 |
|
|
2,442 |
|
|
2,653 |
|
Income
tax expense (c) |
378 |
|
|
144 |
|
|
686 |
|
|
652 |
|
Net
income |
863 |
|
|
645 |
|
|
1,756 |
|
|
2,001 |
|
Less: Net
income attributable to noncontrolling interests |
22 |
|
|
32 |
|
|
62 |
|
|
79 |
|
Net
income attributable toValero Energy Corporation stockholders |
$ |
841 |
|
|
$ |
613 |
|
|
$ |
1,694 |
|
|
$ |
1,922 |
|
|
|
|
|
|
|
|
|
Earnings per
common share |
$ |
1.91 |
|
|
$ |
1.33 |
|
|
$ |
3.80 |
|
|
$ |
4.12 |
|
Weighted-average common shares outstanding (in millions) |
439 |
|
|
458 |
|
|
444 |
|
|
465 |
|
|
|
|
|
|
|
|
|
Earnings per
common share – assuming dilution |
$ |
1.91 |
|
|
$ |
1.33 |
|
|
$ |
3.80 |
|
|
$ |
4.12 |
|
Weighted-average common shares outstanding – assumingdilution (in
millions) |
441 |
|
|
460 |
|
|
446 |
|
|
467 |
|
|
|
|
|
|
|
|
|
Dividends per
common share |
$ |
0.70 |
|
|
$ |
0.60 |
|
|
$ |
2.10 |
|
|
$ |
1.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Earnings Release Tables. |
|
VALERO ENERGY CORPORATION AND
SUBSIDIARIES |
EARNINGS RELEASE TABLES |
FINANCIAL HIGHLIGHTS BY SEGMENT |
(millions of dollars) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Refining (d) |
|
Ethanol |
|
VLP (d) |
|
CorporateandEliminations |
|
Total |
Three months
ended September 30, 2017 |
|
|
|
|
|
|
|
|
|
Operating
revenues: |
|
|
|
|
|
|
|
|
|
Operating
revenues from external customers |
$ |
22,728 |
|
|
$ |
834 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
23,562 |
|
Intersegment revenues |
1 |
|
|
48 |
|
|
110 |
|
|
(159 |
) |
|
— |
|
Total
operating revenues |
22,729 |
|
|
882 |
|
|
110 |
|
|
(159 |
) |
|
23,562 |
|
Cost of
sales: |
|
|
|
|
|
|
|
|
|
Cost of
materials and other |
19,818 |
|
|
669 |
|
|
— |
|
|
(158 |
) |
|
20,329 |
|
Operating
expenses (excluding depreciation andamortization expense reflected
below) |
986 |
|
|
114 |
|
|
26 |
|
|
(1 |
) |
|
1,125 |
|
Depreciation and amortization expense |
455 |
|
|
17 |
|
|
12 |
|
|
— |
|
|
484 |
|
Total
cost of sales |
21,259 |
|
|
800 |
|
|
38 |
|
|
(159 |
) |
|
21,938 |
|
Other
operating expenses (b) |
41 |
|
|
— |
|
|
3 |
|
|
— |
|
|
44 |
|
General
and administrative expenses (excludingdepreciation and amortization
expense reflectedbelow) |
— |
|
|
— |
|
|
— |
|
|
229 |
|
|
229 |
|
Depreciation and amortization expense |
— |
|
|
— |
|
|
— |
|
|
13 |
|
|
13 |
|
Operating
income by segment |
$ |
1,429 |
|
|
$ |
82 |
|
|
$ |
69 |
|
|
$ |
(242 |
) |
|
$ |
1,338 |
|
|
|
|
|
|
|
|
|
|
|
Three months
ended September 30, 2016 |
|
|
|
|
|
|
|
|
|
Operating
revenues: |
|
|
|
|
|
|
|
|
|
Operating
revenues from external customers |
$ |
18,718 |
|
|
$ |
931 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
19,649 |
|
Intersegment revenues |
— |
|
|
56 |
|
|
92 |
|
|
(148 |
) |
|
— |
|
Total
operating revenues |
18,718 |
|
|
987 |
|
|
92 |
|
|
(148 |
) |
|
19,649 |
|
Cost of
sales: |
|
|
|
|
|
|
|
|
|
Cost of
materials and other |
16,424 |
|
|
757 |
|
|
— |
|
|
(148 |
) |
|
17,033 |
|
Operating
expenses (excluding depreciation andamortization expense reflected
below) |
931 |
|
|
107 |
|
|
24 |
|
|
— |
|
|
1,062 |
|
Depreciation and amortization expense |
429 |
|
|
17 |
|
|
12 |
|
|
— |
|
|
458 |
|
Total
cost of sales |
17,784 |
|
|
881 |
|
|
36 |
|
|
(148 |
) |
|
18,553 |
|
General
and administrative expenses (excludingdepreciation and amortization
expense reflectedbelow) |
— |
|
|
— |
|
|
— |
|
|
192 |
|
|
192 |
|
Depreciation and amortization expense |
— |
|
|
— |
|
|
— |
|
|
12 |
|
|
12 |
|
Operating
income by segment |
$ |
934 |
|
|
$ |
106 |
|
|
$ |
56 |
|
|
$ |
(204 |
) |
|
$ |
892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (d) |
|
Ethanol |
|
VLP (d) |
|
CorporateandEliminations |
|
Total |
Nine months
ended September 30, 2017 |
|
|
|
|
|
|
|
|
|
Operating
revenues: |
|
|
|
|
|
|
|
|
|
Operating
revenues from external customers |
$ |
65,030 |
|
|
$ |
2,558 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
67,588 |
|
Intersegment revenues |
1 |
|
|
136 |
|
|
326 |
|
|
(463 |
) |
|
— |
|
Total
operating revenues |
65,031 |
|
|
2,694 |
|
|
326 |
|
|
(463 |
) |
|
67,588 |
|
Cost of
sales: |
|
|
|
|
|
|
|
|
|
Cost of
materials and other |
57,662 |
|
|
2,166 |
|
|
— |
|
|
(462 |
) |
|
59,366 |
|
Operating
expenses (excluding depreciation andamortization expense reflected
below) |
2,935 |
|
|
330 |
|
|
75 |
|
|
(1 |
) |
|
3,339 |
|
Depreciation and amortization expense |
1,358 |
|
|
63 |
|
|
36 |
|
|
— |
|
|
1,457 |
|
Total
cost of sales |
61,955 |
|
|
2,559 |
|
|
111 |
|
|
(463 |
) |
|
64,162 |
|
Other
operating expenses (b) |
41 |
|
|
— |
|
|
3 |
|
|
— |
|
|
44 |
|
General
and administrative expenses (excludingdepreciation and amortization
expense reflectedbelow) |
— |
|
|
— |
|
|
— |
|
|
597 |
|
|
597 |
|
Depreciation and amortization expense |
— |
|
|
— |
|
|
— |
|
|
39 |
|
|
39 |
|
Operating
income by segment |
$ |
3,035 |
|
|
$ |
135 |
|
|
$ |
212 |
|
|
$ |
(636 |
) |
|
$ |
2,746 |
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended September 30, 2016 |
|
|
|
|
|
|
|
|
|
Operating
revenues: |
|
|
|
|
|
|
|
|
|
Operating
revenues from external customers |
$ |
52,302 |
|
|
$ |
2,645 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
54,947 |
|
Intersegment revenues |
— |
|
|
135 |
|
|
258 |
|
|
(393 |
) |
|
— |
|
Total
operating revenues |
52,302 |
|
|
2,780 |
|
|
258 |
|
|
(393 |
) |
|
54,947 |
|
Cost of
sales: |
|
|
|
|
|
|
|
|
|
Cost of
materials and other |
45,790 |
|
|
2,263 |
|
|
— |
|
|
(393 |
) |
|
47,660 |
|
Operating
expenses (excluding depreciation andamortization expense reflected
below) |
2,716 |
|
|
305 |
|
|
72 |
|
|
— |
|
|
3,093 |
|
Depreciation and amortization expense |
1,308 |
|
|
48 |
|
|
35 |
|
|
— |
|
|
1,391 |
|
Lower of
cost or market inventory valuationadjustment (a) |
(697 |
) |
|
(50 |
) |
|
— |
|
|
— |
|
|
(747 |
) |
Total
cost of sales |
49,117 |
|
|
2,566 |
|
|
107 |
|
|
(393 |
) |
|
51,397 |
|
General
and administrative expenses (excludingdepreciation and amortization
expense reflectedbelow) |
— |
|
|
— |
|
|
— |
|
|
507 |
|
|
507 |
|
Depreciation and amortization expense |
— |
|
|
— |
|
|
— |
|
|
35 |
|
|
35 |
|
Asset
impairment loss (c) |
56 |
|
|
— |
|
|
— |
|
|
— |
|
|
56 |
|
Operating
income by segment |
$ |
3,129 |
|
|
$ |
214 |
|
|
$ |
151 |
|
|
$ |
(542 |
) |
|
$ |
2,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (e) |
(millions of dollars, except per share
amounts) |
(unaudited) |
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 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 |
$ |
841 |
|
|
$ |
613 |
|
|
$ |
1,694 |
|
|
$ |
1,922 |
|
Exclude
adjustments: |
|
|
|
|
|
|
|
Lower of
cost or market inventory valuationadjustment (a) |
— |
|
|
— |
|
|
— |
|
|
747 |
|
Income
tax expense related to the lower of cost ormarket inventory
valuation adjustment |
— |
|
|
— |
|
|
— |
|
|
(168 |
) |
Lower of
cost or market inventory valuationadjustment, net of taxes |
— |
|
|
— |
|
|
— |
|
|
579 |
|
Asset
impairment loss (c) |
— |
|
|
— |
|
|
— |
|
|
(56 |
) |
Income
tax benefit on Aruba Disposition (c) |
— |
|
|
42 |
|
|
— |
|
|
42 |
|
Total
adjustments |
— |
|
|
42 |
|
|
— |
|
|
565 |
|
Adjusted
net income attributable toValero Energy Corporation
stockholders |
$ |
841 |
|
|
$ |
571 |
|
|
$ |
1,694 |
|
|
$ |
1,357 |
|
|
|
|
|
|
|
|
|
Reconciliation
of earnings per common share – assumingdilution to
adjusted earnings per common share –assuming
dilution |
|
|
|
|
|
|
|
Earnings
per common share – assuming dilution |
$ |
1.91 |
|
|
$ |
1.33 |
|
|
$ |
3.80 |
|
|
$ |
4.12 |
|
Exclude
adjustments: |
|
|
|
|
|
|
|
Lower of
cost or market inventory valuationadjustment, net of taxes |
— |
|
|
— |
|
|
— |
|
|
1.24 |
|
Asset
impairment loss (c) |
— |
|
|
— |
|
|
— |
|
|
(0.12 |
) |
Income
tax benefit on Aruba Disposition (c) |
— |
|
|
0.09 |
|
|
— |
|
|
0.09 |
|
Total
adjustments |
— |
|
|
0.09 |
|
|
— |
|
|
1.21 |
|
Adjusted
earnings per common share – assuming dilution |
$ |
1.91 |
|
|
$ |
1.24 |
|
|
$ |
3.80 |
|
|
$ |
2.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (e) |
(millions of dollars) |
(unaudited) |
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Reconciliation
of operating income by segment to segmentmargin,
and reconciliation of operating income bysegment
to adjusted operating income by segment |
|
|
|
|
|
|
|
Refining segment (d) |
|
|
|
|
|
|
|
Refining
segment operating income |
$ |
1,429 |
|
|
$ |
934 |
|
|
$ |
3,035 |
|
|
$ |
3,129 |
|
Add
back: |
|
|
|
|
|
|
|
Operating
expenses (excluding depreciation andamortization expense reflected
below) |
986 |
|
|
931 |
|
|
2,935 |
|
|
2,716 |
|
Depreciation and amortization expense |
455 |
|
|
429 |
|
|
1,358 |
|
|
1,308 |
|
Other
operating expenses (b) |
41 |
|
|
— |
|
|
41 |
|
|
— |
|
Lower of
cost or market inventory valuation adjustment (a) |
— |
|
|
— |
|
|
— |
|
|
(697 |
) |
Asset
impairment loss (c) |
— |
|
|
— |
|
|
— |
|
|
56 |
|
Refining
margin |
$ |
2,911 |
|
|
$ |
2,294 |
|
|
$ |
7,369 |
|
|
$ |
6,512 |
|
|
|
|
|
|
|
|
|
Refining
segment operating income |
$ |
1,429 |
|
|
$ |
934 |
|
|
$ |
3,035 |
|
|
$ |
3,129 |
|
Exclude: |
|
|
|
|
|
|
|
Other
operating expenses (b) |
(41 |
) |
|
— |
|
|
(41 |
) |
|
— |
|
Lower of
cost or market inventory valuation adjustment (a) |
— |
|
|
— |
|
|
— |
|
|
697 |
|
Asset
impairment loss (c) |
— |
|
|
— |
|
|
— |
|
|
(56 |
) |
Adjusted
refining segment operating income |
$ |
1,470 |
|
|
$ |
934 |
|
|
$ |
3,076 |
|
|
$ |
2,488 |
|
|
|
|
|
|
|
|
|
Ethanol segment |
|
|
|
|
|
|
|
Ethanol
segment operating income |
$ |
82 |
|
|
$ |
106 |
|
|
$ |
135 |
|
|
$ |
214 |
|
Add
back: |
|
|
|
|
|
|
|
Operating
expenses (excluding depreciation andamortization expense reflected
below) |
114 |
|
|
107 |
|
|
330 |
|
|
305 |
|
Depreciation and amortization expense |
17 |
|
|
17 |
|
|
63 |
|
|
48 |
|
Lower of
cost or market inventory valuation adjustment (a) |
— |
|
|
— |
|
|
— |
|
|
(50 |
) |
Ethanol
margin |
$ |
213 |
|
|
$ |
230 |
|
|
$ |
528 |
|
|
$ |
517 |
|
|
|
|
|
|
|
|
|
Ethanol
segment operating income |
$ |
82 |
|
|
$ |
106 |
|
|
$ |
135 |
|
|
$ |
214 |
|
Exclude:
Lower of cost or market inventory valuationadjustment (a) |
— |
|
|
— |
|
|
— |
|
|
50 |
|
Adjusted
ethanol segment operating income |
$ |
82 |
|
|
$ |
106 |
|
|
$ |
135 |
|
|
$ |
164 |
|
|
|
|
|
|
|
|
|
VLP segment |
|
|
|
|
|
|
|
VLP
segment operating income |
$ |
69 |
|
|
$ |
56 |
|
|
$ |
212 |
|
|
$ |
151 |
|
Exclude:
Other operating expenses (b) |
(3 |
) |
|
— |
|
|
(3 |
) |
|
— |
|
Adjusted
VLP segment operating income |
$ |
72 |
|
|
$ |
56 |
|
|
$ |
215 |
|
|
$ |
151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (e) |
(millions of dollars) |
(unaudited) |
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Reconciliation
of refining segment operating income torefining
margin (by region), and reconciliation ofrefining
segment operating income to adjusted
refiningsegment operating income (by region)
(f) |
|
|
|
|
|
|
|
U.S. Gulf Coast region (d) |
|
|
|
|
|
|
|
Operating
income |
$ |
608 |
|
|
$ |
536 |
|
|
$ |
1,464 |
|
|
$ |
1,404 |
|
Add
back: |
|
|
|
|
|
|
|
Operating
expenses (excluding depreciation andamortization expense reflected
below) |
558 |
|
|
519 |
|
|
1,696 |
|
|
1,544 |
|
Depreciation and amortization expense |
281 |
|
|
261 |
|
|
839 |
|
|
774 |
|
Other
operating expenses (b) |
41 |
|
|
— |
|
|
41 |
|
|
— |
|
Lower of
cost or market inventory valuation adjustment (a) |
— |
|
|
— |
|
|
— |
|
|
(37 |
) |
Asset
impairment loss (c) |
— |
|
|
— |
|
|
— |
|
|
56 |
|
Refining
margin |
$ |
1,488 |
|
|
$ |
1,316 |
|
|
$ |
4,040 |
|
|
$ |
3,741 |
|
|
|
|
|
|
|
|
|
Operating
income |
$ |
608 |
|
|
$ |
536 |
|
|
$ |
1,464 |
|
|
$ |
1,404 |
|
Exclude: |
|
|
|
|
|
|
|
Other
operating expenses (b) |
(41 |
) |
|
— |
|
|
(41 |
) |
|
— |
|
Lower of
cost or market inventory valuation adjustment (a) |
— |
|
|
— |
|
|
— |
|
|
37 |
|
Asset
impairment loss (c) |
— |
|
|
— |
|
|
— |
|
|
(56 |
) |
Adjusted
operating income |
$ |
649 |
|
|
$ |
536 |
|
|
$ |
1,505 |
|
|
$ |
1,423 |
|
|
|
|
|
|
|
|
|
U.S. Mid-Continent region (d) |
|
|
|
|
|
|
|
Operating
income |
$ |
361 |
|
|
$ |
150 |
|
|
$ |
647 |
|
|
$ |
346 |
|
Add
back: |
|
|
|
|
|
|
|
Operating
expenses (excluding depreciation andamortization expense reflected
below) |
144 |
|
|
151 |
|
|
436 |
|
|
422 |
|
Depreciation and amortization expense |
64 |
|
|
59 |
|
|
196 |
|
|
191 |
|
Lower of
cost or market inventory valuation adjustment (a) |
— |
|
|
— |
|
|
— |
|
|
(9 |
) |
Refining
margin |
$ |
569 |
|
|
$ |
360 |
|
|
$ |
1,279 |
|
|
$ |
950 |
|
|
|
|
|
|
|
|
|
Operating
income |
$ |
361 |
|
|
$ |
150 |
|
|
$ |
647 |
|
|
$ |
346 |
|
Exclude:
Lower of cost or market inventory valuationadjustment (a) |
— |
|
|
— |
|
|
— |
|
|
9 |
|
Adjusted
operating income |
$ |
361 |
|
|
$ |
150 |
|
|
$ |
647 |
|
|
$ |
337 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (e) |
(millions of dollars) |
(unaudited) |
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Reconciliation
of refining segment operating income torefining
margin (by region), and reconciliation ofrefining
segment operating income to adjusted
refiningsegment operating income (by region) (f)
(continued) |
|
|
|
|
|
|
|
North Atlantic region |
|
|
|
|
|
|
|
Operating
income |
$ |
328 |
|
|
$ |
179 |
|
|
$ |
786 |
|
|
$ |
1,148 |
|
Add
back: |
|
|
|
|
|
|
|
Operating
expenses (excluding depreciation andamortization expense reflected
below) |
137 |
|
|
119 |
|
|
378 |
|
|
363 |
|
Depreciation and amortization expense |
53 |
|
|
50 |
|
|
150 |
|
|
152 |
|
Lower of
cost or market inventory valuation adjustment (a) |
— |
|
|
— |
|
|
— |
|
|
(646 |
) |
Refining
margin |
$ |
518 |
|
|
$ |
348 |
|
|
$ |
1,314 |
|
|
$ |
1,017 |
|
|
|
|
|
|
|
|
|
Operating
income |
$ |
328 |
|
|
$ |
179 |
|
|
$ |
786 |
|
|
$ |
1,148 |
|
Exclude:
Lower of cost or market inventory valuationadjustment (a) |
— |
|
|
— |
|
|
— |
|
|
646 |
|
Adjusted
operating income |
$ |
328 |
|
|
$ |
179 |
|
|
$ |
786 |
|
|
$ |
502 |
|
|
|
|
|
|
|
|
|
U.S. West Coast region |
|
|
|
|
|
|
|
Operating
income |
$ |
132 |
|
|
$ |
69 |
|
|
$ |
138 |
|
|
$ |
231 |
|
Add
back: |
|
|
|
|
|
|
|
Operating
expenses (excluding depreciation andamortization expense reflected
below) |
147 |
|
|
142 |
|
|
425 |
|
|
387 |
|
Depreciation and amortization expense |
57 |
|
|
59 |
|
|
173 |
|
|
191 |
|
Lower of
cost or market inventory valuation adjustment (a) |
— |
|
|
— |
|
|
— |
|
|
(5 |
) |
Refining
margin |
$ |
336 |
|
|
$ |
270 |
|
|
$ |
736 |
|
|
$ |
804 |
|
|
|
|
|
|
|
|
|
Operating
income |
$ |
132 |
|
|
$ |
69 |
|
|
$ |
138 |
|
|
$ |
231 |
|
Exclude:
Lower of cost or market inventory valuationadjustment (a) |
— |
|
|
— |
|
|
— |
|
|
5 |
|
Adjusted
operating income |
$ |
132 |
|
|
$ |
69 |
|
|
$ |
138 |
|
|
$ |
226 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 September 30, |
|
Nine Months Ended September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Throughput
volumes (thousand barrels per day) |
|
|
|
|
|
|
|
Feedstocks: |
|
|
|
|
|
|
|
Heavy
sour crude oil |
446 |
|
|
394 |
|
|
470 |
|
|
401 |
|
Medium/light sour crude oil |
420 |
|
|
520 |
|
|
461 |
|
|
519 |
|
Sweet
crude oil |
1,348 |
|
|
1,218 |
|
|
1,301 |
|
|
1,195 |
|
Residuals |
215 |
|
|
282 |
|
|
226 |
|
|
281 |
|
Other
feedstocks |
147 |
|
|
166 |
|
|
146 |
|
|
157 |
|
Total
feedstocks |
2,576 |
|
|
2,580 |
|
|
2,604 |
|
|
2,553 |
|
Blendstocks and other |
317 |
|
|
280 |
|
|
313 |
|
|
302 |
|
Total
throughput volumes |
2,893 |
|
|
2,860 |
|
|
2,917 |
|
|
2,855 |
|
|
|
|
|
|
|
|
|
Yields
(thousand barrels per day) |
|
|
|
|
|
|
|
Gasolines
and blendstocks |
1,401 |
|
|
1,401 |
|
|
1,406 |
|
|
1,396 |
|
Distillates |
1,108 |
|
|
1,078 |
|
|
1,122 |
|
|
1,072 |
|
Other
products (g) |
420 |
|
|
426 |
|
|
426 |
|
|
425 |
|
Total
yields |
2,929 |
|
|
2,905 |
|
|
2,954 |
|
|
2,893 |
|
|
|
|
|
|
|
|
|
Operating
statistics (d) (e) (h) |
|
|
|
|
|
|
|
Refining
margin |
$ |
2,911 |
|
|
$ |
2,294 |
|
|
$ |
7,369 |
|
|
$ |
6,512 |
|
Adjusted
refining segment operating income |
$ |
1,470 |
|
|
$ |
934 |
|
|
$ |
3,076 |
|
|
$ |
2,488 |
|
Throughput volumes (thousand barrels per day) |
2,893 |
|
|
2,860 |
|
|
2,917 |
|
|
2,855 |
|
|
|
|
|
|
|
|
|
Throughput margin per barrel |
$ |
10.94 |
|
|
$ |
8.72 |
|
|
$ |
9.26 |
|
|
$ |
8.32 |
|
Less: |
|
|
|
|
|
|
|
Operating
expenses (excluding depreciation andamortization expense reflected
below) per barrel |
3.71 |
|
|
3.54 |
|
|
3.69 |
|
|
3.47 |
|
Depreciation and amortization expense per barrel |
1.71 |
|
|
1.63 |
|
|
1.71 |
|
|
1.67 |
|
Adjusted
refining segment operating income per barrel |
$ |
5.52 |
|
|
$ |
3.55 |
|
|
$ |
3.86 |
|
|
$ |
3.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 September 30, |
|
Nine Months Ended September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Operating
statistics (e) (h) |
|
|
|
|
|
|
|
Ethanol
margin |
$ |
213 |
|
|
$ |
230 |
|
|
$ |
528 |
|
|
$ |
517 |
|
Adjusted
ethanol segment operating income |
$ |
82 |
|
|
$ |
106 |
|
|
$ |
135 |
|
|
$ |
164 |
|
Production volumes (thousand gallons per day) |
4,032 |
|
|
3,815 |
|
|
3,949 |
|
|
3,794 |
|
|
|
|
|
|
|
|
|
Ethanol
margin per gallon of production |
$ |
0.57 |
|
|
$ |
0.66 |
|
|
$ |
0.49 |
|
|
$ |
0.50 |
|
Less: |
|
|
|
|
|
|
|
Operating
expenses (excluding depreciation andamortization expense reflected
below) per gallonof production |
0.30 |
|
|
0.31 |
|
|
0.31 |
|
|
0.29 |
|
Depreciation and amortization expense per gallon ofproduction |
0.05 |
|
|
0.05 |
|
|
0.05 |
|
|
0.05 |
|
Adjusted
ethanol segment operating income per gallonof production |
$ |
0.22 |
|
|
$ |
0.30 |
|
|
$ |
0.13 |
|
|
$ |
0.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Earnings Release Tables. |
|
VALERO ENERGY CORPORATION AND
SUBSIDIARIES |
EARNINGS RELEASE TABLES |
VLP SEGMENT OPERATING HIGHLIGHTS
(d) |
(millions of dollars, except per barrel
amounts) |
(unaudited) |
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Volumes
(thousand barrels per day) (h) |
|
|
|
|
|
|
|
Pipeline
transportation throughput |
859 |
|
|
778 |
|
|
941 |
|
|
849 |
|
Terminaling throughput |
2,694 |
|
|
2,394 |
|
|
2,760 |
|
|
2,131 |
|
|
|
|
|
|
|
|
|
Operating
statistics (h) |
|
|
|
|
|
|
|
Pipeline
transportation revenue |
$ |
23 |
|
|
$ |
19 |
|
|
$ |
71 |
|
|
$ |
58 |
|
Pipeline
transportation revenue per barrel |
$ |
0.29 |
|
|
$ |
0.26 |
|
|
$ |
0.28 |
|
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
Terminaling revenue |
$ |
86 |
|
|
$ |
73 |
|
|
$ |
253 |
|
|
$ |
200 |
|
Terminaling revenue per barrel |
$ |
0.34 |
|
|
$ |
0.33 |
|
|
$ |
0.34 |
|
|
$ |
0.34 |
|
|
|
|
|
|
|
|
|
Storage
and other revenue |
$ |
1 |
|
|
$ |
— |
|
|
$ |
2 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Total
operating revenues |
$ |
110 |
|
|
$ |
92 |
|
|
$ |
326 |
|
|
$ |
258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 September 30, |
|
Nine Months Ended September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Operating
statistics by region (f) |
|
|
|
|
|
|
|
U.S. Gulf Coast region (d) (e) (h) |
|
|
|
|
|
|
|
Refining
margin |
$ |
1,488 |
|
|
$ |
1,316 |
|
|
$ |
4,040 |
|
|
$ |
3,741 |
|
Adjusted
operating income |
$ |
649 |
|
|
$ |
536 |
|
|
$ |
1,505 |
|
|
$ |
1,423 |
|
Throughput volumes (thousand barrels per day) |
1,657 |
|
|
1,663 |
|
|
1,713 |
|
|
1,654 |
|
|
|
|
|
|
|
|
|
Throughput margin per barrel |
$ |
9.76 |
|
|
$ |
8.60 |
|
|
$ |
8.64 |
|
|
$ |
8.26 |
|
Less: |
|
|
|
|
|
|
|
Operating
expenses (excluding depreciation andamortization expense reflected
below) per barrel |
3.66 |
|
|
3.39 |
|
|
3.62 |
|
|
3.41 |
|
Depreciation and amortization expense per barrel |
1.84 |
|
|
1.71 |
|
|
1.80 |
|
|
1.71 |
|
Adjusted
operating income per barrel |
$ |
4.26 |
|
|
$ |
3.50 |
|
|
$ |
3.22 |
|
|
$ |
3.14 |
|
|
|
|
|
|
|
|
|
U.S. Mid-Continent region (d) (e) (h) |
|
|
|
|
|
|
|
Refining
margin |
$ |
569 |
|
|
$ |
360 |
|
|
$ |
1,279 |
|
|
$ |
950 |
|
Adjusted
operating income |
$ |
361 |
|
|
$ |
150 |
|
|
$ |
647 |
|
|
$ |
337 |
|
Throughput volumes (thousand barrels per day) |
465 |
|
|
443 |
|
|
464 |
|
|
453 |
|
|
|
|
|
|
|
|
|
Throughput margin per barrel |
$ |
13.31 |
|
|
$ |
8.85 |
|
|
$ |
10.10 |
|
|
$ |
7.65 |
|
Less: |
|
|
|
|
|
|
|
Operating
expenses (excluding depreciation andamortization expense reflected
below) per barrel |
3.38 |
|
|
3.71 |
|
|
3.45 |
|
|
3.40 |
|
Depreciation and amortization expense per barrel |
1.48 |
|
|
1.45 |
|
|
1.54 |
|
|
1.53 |
|
Adjusted
operating income per barrel |
$ |
8.45 |
|
|
$ |
3.69 |
|
|
$ |
5.11 |
|
|
$ |
2.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 September 30, |
|
Nine Months Ended September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Operating
statistics by region (f) (continued) |
|
|
|
|
|
|
|
North Atlantic region (e) (h) |
|
|
|
|
|
|
|
Refining
margin |
$ |
518 |
|
|
$ |
348 |
|
|
$ |
1,314 |
|
|
$ |
1,017 |
|
Adjusted
operating income |
$ |
328 |
|
|
$ |
179 |
|
|
$ |
786 |
|
|
$ |
502 |
|
Throughput volumes (thousand barrels per day) |
489 |
|
|
489 |
|
|
490 |
|
|
482 |
|
|
|
|
|
|
|
|
|
Throughput margin per barrel |
$ |
11.51 |
|
|
$ |
7.74 |
|
|
$ |
9.83 |
|
|
$ |
7.69 |
|
Less: |
|
|
|
|
|
|
|
Operating
expenses (excluding depreciation andamortization expense reflected
below) per barrel |
3.06 |
|
|
2.65 |
|
|
2.83 |
|
|
2.75 |
|
Depreciation and amortization expense per barrel |
1.17 |
|
|
1.12 |
|
|
1.12 |
|
|
1.15 |
|
Adjusted
operating income per barrel |
$ |
7.28 |
|
|
$ |
3.97 |
|
|
$ |
5.88 |
|
|
$ |
3.79 |
|
|
|
|
|
|
|
|
|
U.S. West Coast region (e) (h) |
|
|
|
|
|
|
|
Refining
margin |
$ |
336 |
|
|
$ |
270 |
|
|
$ |
736 |
|
|
$ |
804 |
|
Adjusted
operating income |
$ |
132 |
|
|
$ |
69 |
|
|
$ |
138 |
|
|
$ |
226 |
|
Throughput volumes (thousand barrels per day) |
282 |
|
|
265 |
|
|
250 |
|
|
266 |
|
|
|
|
|
|
|
|
|
Throughput margin per barrel |
$ |
12.97 |
|
|
$ |
11.02 |
|
|
$ |
10.80 |
|
|
$ |
11.04 |
|
Less: |
|
|
|
|
|
|
|
Operating
expenses (excluding depreciation andamortization expense reflected
below) per barrel |
5.65 |
|
|
5.78 |
|
|
6.24 |
|
|
5.31 |
|
Depreciation and amortization expense per barrel |
2.22 |
|
|
2.43 |
|
|
2.53 |
|
|
2.63 |
|
Adjusted
operating income per barrel |
$ |
5.10 |
|
|
$ |
2.81 |
|
|
$ |
2.03 |
|
|
$ |
3.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Earnings Release Tables. |
|
VALERO ENERGY CORPORATION AND
SUBSIDIARIES |
EARNINGS RELEASE TABLES |
AVERAGE MARKET REFERENCE PRICES AND
DIFFERENTIALS |
(unaudited) |
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Feedstocks
(dollars per barrel) |
|
|
|
|
|
|
|
Brent
crude oil |
$ |
52.21 |
|
|
$ |
46.91 |
|
|
$ |
52.59 |
|
|
$ |
43.00 |
|
Brent
less West Texas Intermediate (WTI) crude oil |
4.05 |
|
|
2.03 |
|
|
3.18 |
|
|
1.80 |
|
Brent
less Alaska North Slope (ANS) crude oil |
0.02 |
|
|
2.13 |
|
|
0.35 |
|
|
1.35 |
|
Brent
less Louisiana Light Sweet (LLS) crude oil |
0.57 |
|
|
0.38 |
|
|
0.77 |
|
|
0.02 |
|
Brent
less Argus Sour Crude Index (ASCI) crude oil |
3.85 |
|
|
5.16 |
|
|
4.28 |
|
|
5.18 |
|
Brent
less Maya crude oil |
5.66 |
|
|
7.88 |
|
|
7.54 |
|
|
8.73 |
|
LLS crude
oil |
51.64 |
|
|
46.53 |
|
|
51.82 |
|
|
42.98 |
|
LLS less
ASCI crude oil |
3.28 |
|
|
4.78 |
|
|
3.51 |
|
|
5.16 |
|
LLS less
Maya crude oil |
5.09 |
|
|
7.50 |
|
|
6.77 |
|
|
8.71 |
|
WTI crude
oil |
48.16 |
|
|
44.88 |
|
|
49.41 |
|
|
41.20 |
|
|
|
|
|
|
|
|
|
Natural gas
(dollars per million British Thermal Units) |
2.91 |
|
|
2.80 |
|
|
3.00 |
|
|
2.27 |
|
|
|
|
|
|
|
|
|
Products
(dollars per barrel, unless otherwise noted) |
|
|
|
|
|
|
|
U.S. Gulf
Coast: |
|
|
|
|
|
|
|
CBOB
gasoline less Brent |
14.36 |
|
|
9.69 |
|
|
11.17 |
|
|
9.54 |
|
Ultra-low-sulfur diesel less Brent |
15.89 |
|
|
10.63 |
|
|
12.67 |
|
|
9.34 |
|
Propylene
less Brent |
(1.74 |
) |
|
(2.76 |
) |
|
(0.16 |
) |
|
(5.65 |
) |
CBOB
gasoline less LLS |
14.93 |
|
|
10.07 |
|
|
11.94 |
|
|
9.56 |
|
Ultra-low-sulfur diesel less LLS |
16.46 |
|
|
11.01 |
|
|
13.44 |
|
|
9.36 |
|
Propylene
less LLS |
(1.17 |
) |
|
(2.38 |
) |
|
0.61 |
|
|
(5.63 |
) |
U.S.
Mid-Continent: |
|
|
|
|
|
|
|
CBOB
gasoline less WTI |
19.28 |
|
|
14.15 |
|
|
15.38 |
|
|
12.64 |
|
Ultra-low-sulfur diesel less WTI |
21.99 |
|
|
15.36 |
|
|
16.86 |
|
|
12.70 |
|
North
Atlantic: |
|
|
|
|
|
|
|
CBOB
gasoline less Brent |
17.72 |
|
|
11.12 |
|
|
12.99 |
|
|
12.02 |
|
Ultra-low-sulfur diesel less Brent |
17.06 |
|
|
11.52 |
|
|
13.78 |
|
|
10.74 |
|
U.S. West
Coast: |
|
|
|
|
|
|
|
CARBOB 87
gasoline less ANS |
22.11 |
|
|
17.68 |
|
|
20.63 |
|
|
18.86 |
|
CARB
diesel less ANS |
20.46 |
|
|
14.83 |
|
|
16.54 |
|
|
13.58 |
|
CARBOB 87
gasoline less WTI |
26.14 |
|
|
17.58 |
|
|
23.46 |
|
|
19.31 |
|
CARB
diesel less WTI |
24.49 |
|
|
14.73 |
|
|
19.37 |
|
|
14.03 |
|
New York
Harbor corn crush (dollars per gallon) |
0.31 |
|
|
0.35 |
|
|
0.28 |
|
|
0.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Earnings Release Tables. |
|
VALERO ENERGY CORPORATION AND
SUBSIDIARIES |
EARNINGS RELEASE TABLES |
OTHER FINANCIAL DATA |
(millions of dollars) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|
|
2017 |
|
2016 |
Balance sheet
data |
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
$ |
17,442 |
|
|
$ |
16,800 |
|
Cash and temporary cash investments included in current
assets |
|
5,176 |
|
|
4,816 |
|
Inventories included in current assets |
|
|
|
|
6,137 |
|
|
5,709 |
|
Current
liabilities |
|
|
|
|
9,130 |
|
|
8,328 |
|
Current portion of debt and capital lease obligations
includedin current liabilities |
|
121 |
|
|
115 |
|
Debt and capital lease obligations, less current portion |
|
|
|
8,364 |
|
|
7,886 |
|
Total
debt and capital lease obligations |
|
|
|
|
8,485 |
|
|
8,001 |
|
Valero Energy Corporation stockholders’ equity |
|
|
|
20,370 |
|
|
20,024 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Cash flow
data |
|
|
|
|
|
|
|
Net cash
provided by operating activities |
$ |
1,037 |
|
|
$ |
863 |
|
|
$ |
3,822 |
|
|
$ |
3,822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Earnings Release Tables. |
|
VALERO ENERGY CORPORATION AND
SUBSIDIARIESNOTES TO EARNINGS RELEASE
TABLES
(a) During the nine months ended September 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 $747 million
($697 million and $50 million attributable to our
refining and ethanol segments, respectively).
(b) Other operating expenses reflect expenses
that are not associated with our cost of sales, which for the third
quarter of 2017, includes costs incurred at certain of our United
States (U.S.) Gulf Coast refineries and certain VLP assets due to
damage associated with Hurricane Harvey.
(c) Effective October 1, 2016, we
(i) transferred ownership of all of our assets in Aruba, other
than certain hydrocarbon inventories and working capital, to
Refineria di Aruba N.V., an entity wholly-owned by the Government
of Aruba (GOA), (ii) settled our obligations under various
agreements with the GOA, including agreements that required us to
dismantle our leasehold improvements under certain conditions, and
(iii) sold the working capital of our Aruba operations,
including hydrocarbon inventories, to the GOA, CITGO Aruba Refining
N.V., and CITGO Petroleum Corporation. We refer to this transaction
as the “Aruba Disposition.”
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.
In September 2016 and in connection with the
Aruba Disposition, our U.S. subsidiaries cancelled all outstanding
debt obligations owed to them by our Aruba subsidiaries, which
resulted in the recognition by us of an income tax benefit in the
U.S. of $42 million during the three and nine months ended
September 30, 2016.
(d) 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
U.S. Mid-Continent regions) and VLP segment has been
retrospectively adjusted to reflect our current segment
presentation.
(e) We use certain financial measures (as noted
below) in the earnings release tables and accompanying earnings
release that are not defined under 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, the asset impairment loss, and the
income tax benefit on the Aruba Disposition. We believe that these
items are not indicative of our core operating performance and that
their exclusion results in an important measure for our ongoing
financial performance to better assess our underlying business
results and trends.
- 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 lower of cost or market inventory
valuation adjustment, operating expenses (excluding depreciation
and amortization expense), other operating expenses, depreciation
and amortization expense, and the asset impairment loss. We believe
refining margin is an important measure of our refining segment’s
operating and financial performance as it is the most comparable
measure to the industry’s market reference product margins, which
are used by industry analysts, investors, and others to evaluate
our performance.
- Ethanol margin is defined as ethanol segment
operating income excluding the lower of cost or market inventory
valuation adjustment, operating expenses (excluding depreciation
and amortization expense), and depreciation and amortization
expense. 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 segment operating income is
defined as refining segment operating income excluding other
operating expenses, the lower of cost or market inventory valuation
adjustment, and the asset impairment loss. We believe adjusted
refining segment 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 segment operating income is
defined as ethanol segment operating income excluding the lower of
cost or market inventory valuation adjustment. We believe this is
an important measure of our ethanol segment’s operating and
financial performance because it excludes items that are not
indicative of that segment’s core operating performance.
- Adjusted VLP segment operating income is
defined as VLP segment operating income excluding other operating
expenses. We believe this is an important measure of our VLP
segment’s operating and financial performance because it excludes
items that are not indicative of that segment’s core operating
performance.
(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 and per gallon of production
amounts are calculated by dividing the associated dollar amount by
the throughout volumes, production volumes, pipeline transportation
throughput volumes, or terminaling throughput volumes for the
period, as applicable.
Throughput volumes, production volumes, pipeline
transportation throughput volumes, and terminaling throughput
volumes are calculated by multiplying throughput volumes per day,
production volumes per day, pipeline transportation throughput
volumes per day, and terminaling throughput volumes per day (as
provided in the accompanying tables), respectively, by the number
of days in the applicable period.
VALERO ENERGY PARTNERS LP (NYSE:VLP)
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