Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net
income attributable to Valero stockholders of $609 million, or
$1.48 per share, for the third quarter of 2019 compared to
$856 million, or $2.01 per share, for the third quarter
of 2018.
“We delivered another quarter of solid financial
results despite challenging market conditions,” said Joe Gorder,
Valero Chairman, President and Chief Executive Officer. “Our simple
strategy of striving to be the best operator in the business,
investing to drive earnings growth with lower volatility and
maintaining capital discipline with an uncompromising focus on
shareholder returns has proven to be successful and positions us
well for any market environment.”
RefiningThe refining segment
reported $1.1 billion of operating income for the third
quarter of 2019 compared to $1.4 billion for the third quarter
of 2018. The decrease was primarily driven by narrower crude oil
discounts to Brent crude oil.
“Fourth quarter market conditions look favorable
with improved gasoline and distillate cracks and wider discounts
for medium and heavy sour crude oils,” Gorder said. “We expect to
see continued product strength with inventories at lower levels and
sour crude weakness resulting from the IMO low sulfur fuel oil
mandate, which goes into effect on January 1, 2020.”
Refinery throughput capacity utilization was
94 percent, with throughput volumes averaging
2.95 million barrels per day in the third quarter of 2019. The
company processed 190 thousand barrels per day of Canadian heavy
crude oil and exported a total of 331 thousand barrels per day of
gasoline and distillate during the third quarter of 2019.
EthanolThe ethanol segment
reported a $43 million operating loss for the third quarter of
2019, compared to $21 million of operating income for the
third quarter of 2018. The decrease in operating income was
attributed primarily to higher corn prices. Ethanol production
volumes averaged 4.0 million gallons per day in the third
quarter of 2019.
Renewable DieselThe renewable
diesel segment reported $65 million of operating income for
the third quarter of 2019 compared to a $5 million operating
loss for the third quarter of 2018. Renewable diesel sales volumes
averaged 638 thousand gallons per day in the third quarter of
2019, an increase of 387 thousand gallons per day versus the
third quarter of 2018. The third quarter of 2018 operating results
and sales volumes were impacted by the planned downtime of the
Diamond Green Diesel plant as part of completing an expansion
project.
Corporate and OtherGeneral and
administrative expenses were $217 million in the third quarter
of 2019 compared to $209 million in the third quarter of
2018. The effective tax rate for the third quarter of 2019
was 21 percent, compared to 24 percent for the third
quarter of 2018.
Investing and Financing
ActivitiesCapital investments totaled $525 million in
the third quarter of 2019, of which $305 million was for
sustaining the business, including costs for turnarounds, catalysts
and regulatory compliance.
Valero returned $679 million to
stockholders in the third quarter of 2019, of which
$372 million was paid as dividends and $307 million was
for the purchase of approximately 3.9 million shares of common
stock, resulting in a total payout ratio of 61 percent of
adjusted net cash provided by operating activities.
Net cash provided by operating activities was
$1.4 billion in the third quarter of 2019. Included in this
amount is a $315 million favorable impact from working
capital. Excluding the change in working capital, adjusted net cash
provided by operating activities was $1.1 billion.
Valero continues to target a total payout ratio
between 40 and 50 percent of adjusted net cash provided by
operating activities for 2019. Valero defines total payout ratio as
the sum of dividends and stock buybacks divided by net cash
provided by operating activities adjusted for changes in working
capital.
Liquidity and Financial
PositionValero ended the third quarter of 2019 with
$9.6 billion of total debt and $2.1 billion of cash and
cash equivalents. The debt to capital ratio, net of $2 billion
in cash, was 26 percent.
Strategic UpdateThe Central
Texas Pipelines and Terminals project was successfully completed in
the third quarter of 2019. This project reduces secondary costs and
extends Valero’s supply chain from the Gulf Coast to a higher
demand market to maximize product margins. Other projects,
including the Pasadena terminal, St. Charles alkylation unit,
and Pembroke cogeneration unit, remain on track to be complete in
2020. The company expects the Diamond Green Diesel expansion and
Port Arthur Coker to be complete in 2021 and 2022,
respectively.
In September, Valero and its joint venture
partner announced that they have initiated an advanced engineering
and development cost review for a new renewable diesel plant at
Valero’s Port Arthur, Texas facility. If the project is approved,
construction would begin in 2021, with expected operations
commencing in 2024, which would result in Diamond Green Diesel
production capacity increasing to over 1.1 billion gallons
annually.
Valero continues to expect to invest
approximately $2.5 billion of capital in both 2019 and 2020,
of which approximately 60 percent is for sustaining the
business and approximately 40 percent is for growth
projects.
Conference CallValero’s senior
management will hold a conference call at 10 a.m. ET
today to discuss this earnings release and to provide an update on
operations and strategy.
About ValeroValero Energy
Corporation, through its subsidiaries (collectively, “Valero”), is
an international manufacturer and marketer of transportation fuels
and petrochemical products. Valero is a Fortune 50 company
based in San Antonio, Texas, and it operates 15 petroleum
refineries with a combined throughput capacity of approximately
3.1 million barrels per day and 14 ethanol plants with a
combined production capacity of approximately 1.73 billion
gallons per year. The petroleum refineries are located in the
United States (U.S.), Canada and the United Kingdom (U.K.), and the
ethanol plants are located in the Mid-Continent region of the U.S.
Valero also is a joint venture partner in Diamond Green Diesel,
which operates a renewable diesel plant in Norco, Louisiana.
Diamond Green Diesel is North America’s largest biomass-based
diesel plant. Valero sells its products in the wholesale rack or
bulk markets in the U.S., Canada, the U.K., Ireland and Latin
America. Approximately 7,000 outlets carry Valero’s brand
names. Please visit www.valero.com for more information.
Valero ContactsInvestors:Homer
Bhullar, Vice President – Investor Relations, 210-345-1982Gautam
Srivastava, Manager – Investor Relations, 210-345-3992Tom Mahrer,
Manager – Investor Relations, 210-345-1953
Media:Lillian Riojas, Executive Director – Media
Relations and Communications, 210-345-5002
Safe-Harbor StatementStatements
contained in this release that state the company’s or management’s
expectations or predictions of the future are forward-looking
statements intended to be covered by the safe harbor provisions of
the Securities Act of 1933 and the Securities Exchange Act of
1934. The words “believe,” “expect,” “should,” “estimates,”
“intend,” “target,” “will,” “plans,” and other similar expressions
identify forward-looking statements. It is important to note
that actual results could differ materially from those projected in
such forward-looking statements based on numerous factors,
including those outside of the company’s control, such as delays in
construction timing and other factors. For more information
concerning factors that could cause actual results to differ from
those expressed or forecasted, see Valero’s annual reports on
Form 10-K, quarterly reports on Form 10-Q, and other
reports filed with the Securities and Exchange Commission and on
Valero’s website at www.valero.com.
Use of Non-GAAP Financial
InformationThis earnings release and the accompanying
earnings release tables include references to financial measures
that are not defined under U.S. generally accepted accounting
principles (GAAP). These non-GAAP measures include adjusted
net income attributable to Valero stockholders, adjusted earnings
per common share – assuming dilution, refining margin, ethanol
margin, renewable diesel margin, adjusted refining operating
income, adjusted ethanol operating income, adjusted renewable
diesel operating income, and adjusted net cash provided by
operating activities. These non-GAAP financial measures have
been included to help facilitate the comparison of operating
results between periods. See the accompanying earnings
release tables for a reconciliation of non-GAAP measures to their
most directly comparable U.S. GAAP measures. Note (f) to
the earnings release tables provides reasons for the use of these
non-GAAP financial measures.
VALERO ENERGY
CORPORATIONEARNINGS RELEASE
TABLESFINANCIAL
HIGHLIGHTS(millions of dollars, except per share
amounts)(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Statement of income
data |
|
|
|
|
|
|
|
Revenues |
$ |
27,249 |
|
|
$ |
30,849 |
|
|
$ |
80,445 |
|
|
$ |
88,303 |
|
Cost of sales: |
|
|
|
|
|
|
|
Cost of materials and other (a) |
24,335 |
|
|
27,701 |
|
|
72,396 |
|
|
79,317 |
|
Operating expenses (excluding depreciation andamortization expense
reflected below) |
1,239 |
|
|
1,193 |
|
|
3,629 |
|
|
3,439 |
|
Depreciation and amortization expense |
556 |
|
|
504 |
|
|
1,645 |
|
|
1,499 |
|
Total cost of sales |
26,130 |
|
|
29,398 |
|
|
77,670 |
|
|
84,255 |
|
Other operating expenses (b) |
10 |
|
|
10 |
|
|
14 |
|
|
41 |
|
General and administrative expenses (excludingdepreciation and
amortization expense reflected below) (c) |
217 |
|
|
209 |
|
|
625 |
|
|
695 |
|
Depreciation and amortization expense |
11 |
|
|
13 |
|
|
39 |
|
|
39 |
|
Operating income |
881 |
|
|
1,219 |
|
|
2,097 |
|
|
3,273 |
|
Other income, net (d) |
34 |
|
|
42 |
|
|
68 |
|
|
88 |
|
Interest and debt expense, net of capitalized interest |
(111 |
) |
|
(111 |
) |
|
(335 |
) |
|
(356 |
) |
Income before income tax expense |
804 |
|
|
1,150 |
|
|
1,830 |
|
|
3,005 |
|
Income tax expense |
165 |
|
|
276 |
|
|
376 |
|
|
674 |
|
Net income |
639 |
|
|
874 |
|
|
1,454 |
|
|
2,331 |
|
Less: Net income attributable to noncontrolling interests (a) |
30 |
|
|
18 |
|
|
92 |
|
|
161 |
|
Net income attributable to Valero Energy Corporation
stockholders |
$ |
609 |
|
|
$ |
856 |
|
|
$ |
1,362 |
|
|
$ |
2,170 |
|
|
|
|
|
|
|
|
|
Earnings per common
share |
$ |
1.48 |
|
|
$ |
2.01 |
|
|
$ |
3.28 |
|
|
$ |
5.05 |
|
Weighted-average common shares outstanding (in millions) |
412 |
|
|
425 |
|
|
415 |
|
|
428 |
|
|
|
|
|
|
|
|
|
Earnings per common
share – assuming dilution |
$ |
1.48 |
|
|
$ |
2.01 |
|
|
$ |
3.28 |
|
|
$ |
5.05 |
|
Weighted-average common shares outstanding –assuming dilution (in
millions) |
413 |
|
|
427 |
|
|
416 |
|
|
430 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATIONEARNINGS RELEASE
TABLESFINANCIAL HIGHLIGHTS BY SEGMENT
(e)(millions of
dollars)(unaudited)
|
Refining |
|
Ethanol |
|
RenewableDiesel |
|
CorporateandEliminations |
|
Total |
Three months ended
September 30, 2019 |
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Revenues from external customers |
$ |
26,145 |
|
|
$ |
891 |
|
|
$ |
212 |
|
|
$ |
1 |
|
|
$ |
27,249 |
|
Intersegment revenues |
2 |
|
|
57 |
|
|
50 |
|
|
(109 |
) |
|
— |
|
Total revenues |
26,147 |
|
|
948 |
|
|
262 |
|
|
(108 |
) |
|
27,249 |
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
Cost of materials and other |
23,432 |
|
|
847 |
|
|
164 |
|
|
(108 |
) |
|
24,335 |
|
Operating expenses (excluding depreciation andamortization expense
reflected below) |
1,100 |
|
|
121 |
|
|
18 |
|
|
— |
|
|
1,239 |
|
Depreciation and amortization expense |
518 |
|
|
23 |
|
|
15 |
|
|
— |
|
|
556 |
|
Total cost of sales |
25,050 |
|
|
991 |
|
|
197 |
|
|
(108 |
) |
|
26,130 |
|
Other operating expenses (b) |
10 |
|
|
— |
|
|
— |
|
|
— |
|
|
10 |
|
General and administrative expenses (excludingdepreciation and
amortization expense reflectedbelow) |
— |
|
|
— |
|
|
— |
|
|
217 |
|
|
217 |
|
Depreciation and amortization expense |
— |
|
|
— |
|
|
— |
|
|
11 |
|
|
11 |
|
Operating income (loss) by segment |
$ |
1,087 |
|
|
$ |
(43 |
) |
|
$ |
65 |
|
|
$ |
(228 |
) |
|
$ |
881 |
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2018 |
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Revenues from external customers |
$ |
29,894 |
|
|
$ |
864 |
|
|
$ |
90 |
|
|
$ |
1 |
|
|
$ |
30,849 |
|
Intersegment revenues |
5 |
|
|
68 |
|
|
15 |
|
|
(88 |
) |
|
— |
|
Total revenues |
29,899 |
|
|
932 |
|
|
105 |
|
|
(87 |
) |
|
30,849 |
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
Cost of materials and other |
26,928 |
|
|
776 |
|
|
85 |
|
|
(88 |
) |
|
27,701 |
|
Operating expenses (excluding depreciation andamortization expense
reflected below) |
1,058 |
|
|
116 |
|
|
19 |
|
|
— |
|
|
1,193 |
|
Depreciation and amortization expense |
479 |
|
|
19 |
|
|
6 |
|
|
— |
|
|
504 |
|
Total cost of sales |
28,465 |
|
|
911 |
|
|
110 |
|
|
(88 |
) |
|
29,398 |
|
Other operating expenses (b) |
10 |
|
|
— |
|
|
— |
|
|
— |
|
|
10 |
|
General and administrative expenses (excludingdepreciation and
amortization expense reflectedbelow) |
— |
|
|
— |
|
|
— |
|
|
209 |
|
|
209 |
|
Depreciation and amortization expense |
— |
|
|
— |
|
|
— |
|
|
13 |
|
|
13 |
|
Operating income (loss) by segment |
$ |
1,424 |
|
|
$ |
21 |
|
|
$ |
(5 |
) |
|
$ |
(221 |
) |
|
$ |
1,219 |
|
See Operating Highlights by Segment.See Notes to
Earnings Release Tables.
VALERO ENERGY
CORPORATIONEARNINGS RELEASE
TABLESFINANCIAL HIGHLIGHTS BY SEGMENT
(e)(millions of
dollars)(unaudited)
|
Refining |
|
Ethanol |
|
RenewableDiesel |
|
CorporateandEliminations |
|
Total |
Nine months ended
September 30, 2019 |
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Revenues from external customers |
$ |
77,109 |
|
|
$ |
2,648 |
|
|
$ |
686 |
|
|
$ |
2 |
|
|
$ |
80,445 |
|
Intersegment revenues |
12 |
|
|
162 |
|
|
174 |
|
|
(348 |
) |
|
— |
|
Total revenues |
77,121 |
|
|
2,810 |
|
|
860 |
|
|
(346 |
) |
|
80,445 |
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
Cost of materials and other |
69,769 |
|
|
2,396 |
|
|
577 |
|
|
(346 |
) |
|
72,396 |
|
Operating expenses (excluding depreciation andamortization expense
reflected below) |
3,197 |
|
|
378 |
|
|
54 |
|
|
— |
|
|
3,629 |
|
Depreciation and amortization expense |
1,539 |
|
|
68 |
|
|
38 |
|
|
— |
|
|
1,645 |
|
Total cost of sales |
74,505 |
|
|
2,842 |
|
|
669 |
|
|
(346 |
) |
|
77,670 |
|
Other operating expenses (b) |
13 |
|
|
1 |
|
|
— |
|
|
— |
|
|
14 |
|
General and administrative expenses (excludingdepreciation and
amortization expense reflectedbelow) |
— |
|
|
— |
|
|
— |
|
|
625 |
|
|
625 |
|
Depreciation and amortization expense |
— |
|
|
— |
|
|
— |
|
|
39 |
|
|
39 |
|
Operating income (loss) by segment |
$ |
2,603 |
|
|
$ |
(33 |
) |
|
$ |
191 |
|
|
$ |
(664 |
) |
|
$ |
2,097 |
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2018 |
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Revenues from external customers |
$ |
85,371 |
|
|
$ |
2,625 |
|
|
$ |
304 |
|
|
$ |
3 |
|
|
$ |
88,303 |
|
Intersegment revenues |
20 |
|
|
156 |
|
|
103 |
|
|
(279 |
) |
|
— |
|
Total revenues |
85,391 |
|
|
2,781 |
|
|
407 |
|
|
(276 |
) |
|
88,303 |
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
Cost of materials and other (a) |
77,195 |
|
|
2,279 |
|
|
122 |
|
|
(279 |
) |
|
79,317 |
|
Operating expenses (excluding depreciation andamortization expense
reflected below) |
3,057 |
|
|
336 |
|
|
46 |
|
|
— |
|
|
3,439 |
|
Depreciation and amortization expense |
1,423 |
|
|
57 |
|
|
19 |
|
|
— |
|
|
1,499 |
|
Total cost of sales |
81,675 |
|
|
2,672 |
|
|
187 |
|
|
(279 |
) |
|
84,255 |
|
Other operating expenses (b) |
41 |
|
|
— |
|
|
— |
|
|
— |
|
|
41 |
|
General and administrative expenses (excludingdepreciation and
amortization expense reflectedbelow) (c) |
— |
|
|
— |
|
|
— |
|
|
695 |
|
|
695 |
|
Depreciation and amortization expense |
— |
|
|
— |
|
|
— |
|
|
39 |
|
|
39 |
|
Operating income by segment |
$ |
3,675 |
|
|
$ |
109 |
|
|
$ |
220 |
|
|
$ |
(731 |
) |
|
$ |
3,273 |
|
See Operating Highlights by Segment.See Notes to
Earnings Release Tables.
VALERO ENERGY
CORPORATIONEARNINGS RELEASE
TABLESRECONCILIATION OF NON-GAAP MEASURES TO MOST
COMPARABLE AMOUNTSREPORTED UNDER U.S. GAAP
(f)(millions of dollars, except per share
amounts)(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Reconciliation of net
income attributable to Valero EnergyCorporation
stockholders to adjusted net incomeattributable to
Valero Energy Corporation stockholders |
|
|
|
|
|
|
|
Net income attributable to Valero Energy
Corporationstockholders |
$ |
609 |
|
|
$ |
856 |
|
|
$ |
1,362 |
|
|
$ |
2,170 |
|
Exclude adjustments: |
|
|
|
|
|
|
|
2017 blender’s tax credit attributable to Valero EnergyCorporation
stockholders (a) |
— |
|
|
— |
|
|
— |
|
|
90 |
|
Income tax expense related to 2017 blender’s tax credit |
— |
|
|
— |
|
|
— |
|
|
(11 |
) |
2017 blender’s tax credit attributable to Valero EnergyCorporation
stockholders, net of taxes |
— |
|
|
— |
|
|
— |
|
|
79 |
|
Texas City Refinery fire expenses |
— |
|
|
— |
|
|
— |
|
|
(14 |
) |
Income tax benefit related to Texas City Refineryfire expenses |
— |
|
|
— |
|
|
— |
|
|
3 |
|
Texas City Refinery fire expenses, net of taxes |
— |
|
|
— |
|
|
— |
|
|
(11 |
) |
Environmental reserve adjustments (c) |
— |
|
|
— |
|
|
— |
|
|
(108 |
) |
Income tax benefit related to environmental reserveadjustments |
— |
|
|
— |
|
|
— |
|
|
24 |
|
Environmental reserve adjustments, net of taxes |
— |
|
|
— |
|
|
— |
|
|
(84 |
) |
Loss on early redemption of debt (d) |
— |
|
|
— |
|
|
(22 |
) |
|
(38 |
) |
Income tax benefit related to loss on earlyredemption of debt |
— |
|
|
— |
|
|
5 |
|
|
9 |
|
Loss on early redemption of debt, net of taxes |
— |
|
|
— |
|
|
(17 |
) |
|
(29 |
) |
Total adjustments |
— |
|
|
— |
|
|
(17 |
) |
|
(45 |
) |
Adjusted net income attributable toValero Energy Corporation
stockholders |
$ |
609 |
|
|
$ |
856 |
|
|
$ |
1,379 |
|
|
$ |
2,215 |
|
|
|
|
|
|
|
|
|
Reconciliation of
earnings per common share – assumingdilution to
adjusted earnings per common share –assuming
dilution |
|
|
|
|
|
|
|
Earnings per common share – assuming dilution |
$ |
1.48 |
|
|
$ |
2.01 |
|
|
$ |
3.28 |
|
|
$ |
5.05 |
|
Exclude adjustments: |
|
|
|
|
|
|
|
2017 blender’s tax credit attributable to Valero EnergyCorporation
stockholders (a) |
— |
|
|
— |
|
|
— |
|
|
0.18 |
|
Texas City Refinery fire expenses |
— |
|
|
— |
|
|
— |
|
|
(0.03 |
) |
Environmental reserve adjustments (c) |
— |
|
|
— |
|
|
— |
|
|
(0.19 |
) |
Loss on early redemption of debt (d) |
— |
|
|
— |
|
|
(0.04 |
) |
|
(0.07 |
) |
Total adjustments |
— |
|
|
— |
|
|
(0.04 |
) |
|
(0.11 |
) |
Adjusted earnings per common share – assuming dilution |
$ |
1.48 |
|
|
$ |
2.01 |
|
|
$ |
3.32 |
|
|
$ |
5.16 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATIONEARNINGS RELEASE
TABLESRECONCILIATION OF NON-GAAP MEASURES TO MOST
COMPARABLE AMOUNTSREPORTED UNDER U.S. GAAP
(f)(millions of
dollars)(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Reconciliation of
operating income by segment to segmentmargin, and
reconciliation of operating income bysegment to
adjusted operating income by segment |
|
|
|
|
|
|
|
Refining segment (e) |
|
|
|
|
|
|
|
Refining operating income |
$ |
1,087 |
|
|
$ |
1,424 |
|
|
$ |
2,603 |
|
|
$ |
3,675 |
|
Exclude: |
|
|
|
|
|
|
|
2017 blender’s tax credit (a) |
— |
|
|
— |
|
|
— |
|
|
10 |
|
Operating expenses (excluding depreciation andamortization expense
reflected below) |
(1,100 |
) |
|
(1,058 |
) |
|
(3,197 |
) |
|
(3,057 |
) |
Depreciation and amortization expense |
(518 |
) |
|
(479 |
) |
|
(1,539 |
) |
|
(1,423 |
) |
Other operating expenses (b) |
(10 |
) |
|
(10 |
) |
|
(13 |
) |
|
(41 |
) |
Refining margin |
$ |
2,715 |
|
|
$ |
2,971 |
|
|
$ |
7,352 |
|
|
$ |
8,186 |
|
|
|
|
|
|
|
|
|
Refining operating income |
$ |
1,087 |
|
|
$ |
1,424 |
|
|
$ |
2,603 |
|
|
$ |
3,675 |
|
Exclude: |
|
|
|
|
|
|
|
2017 blender’s tax credit (a) |
— |
|
|
— |
|
|
— |
|
|
10 |
|
Other operating expenses (b) |
(10 |
) |
|
(10 |
) |
|
(13 |
) |
|
(41 |
) |
Adjusted refining operating income |
$ |
1,097 |
|
|
$ |
1,434 |
|
|
$ |
2,616 |
|
|
$ |
3,706 |
|
|
|
|
|
|
|
|
|
Ethanol segment |
|
|
|
|
|
|
|
Ethanol operating income (loss) |
$ |
(43 |
) |
|
$ |
21 |
|
|
$ |
(33 |
) |
|
$ |
109 |
|
Exclude: |
|
|
|
|
|
|
|
Operating expenses (excluding depreciation andamortization expense
reflected below) |
(121 |
) |
|
(116 |
) |
|
(378 |
) |
|
(336 |
) |
Depreciation and amortization expense |
(23 |
) |
|
(19 |
) |
|
(68 |
) |
|
(57 |
) |
Other operating expenses (b) |
— |
|
|
— |
|
|
(1 |
) |
|
— |
|
Ethanol margin |
$ |
101 |
|
|
$ |
156 |
|
|
$ |
414 |
|
|
$ |
502 |
|
|
|
|
|
|
|
|
|
Ethanol operating income (loss) |
$ |
(43 |
) |
|
$ |
21 |
|
|
$ |
(33 |
) |
|
$ |
109 |
|
Exclude: Other operating expenses (b) |
— |
|
|
— |
|
|
(1 |
) |
|
— |
|
Adjusted ethanol operating income (loss) |
$ |
(43 |
) |
|
$ |
21 |
|
|
$ |
(32 |
) |
|
$ |
109 |
|
|
|
|
|
|
|
|
|
Renewable diesel segment (e) |
|
|
|
|
|
|
|
Renewable diesel operating income (loss) |
$ |
65 |
|
|
$ |
(5 |
) |
|
$ |
191 |
|
|
$ |
220 |
|
Exclude: |
|
|
|
|
|
|
|
2017 blender’s tax credit (a) |
— |
|
|
— |
|
|
— |
|
|
160 |
|
Operating expenses (excluding depreciation andamortization expense
reflected below) |
(18 |
) |
|
(19 |
) |
|
(54 |
) |
|
(46 |
) |
Depreciation and amortization expense |
(15 |
) |
|
(6 |
) |
|
(38 |
) |
|
(19 |
) |
Renewable diesel margin |
$ |
98 |
|
|
$ |
20 |
|
|
$ |
283 |
|
|
$ |
125 |
|
|
|
|
|
|
|
|
|
Renewable diesel operating income (loss) |
$ |
65 |
|
|
$ |
(5 |
) |
|
$ |
191 |
|
|
$ |
220 |
|
Exclude: 2017 blender’s tax credit (a) |
— |
|
|
— |
|
|
— |
|
|
160 |
|
Adjusted renewable diesel operating income (loss) |
$ |
65 |
|
|
$ |
(5 |
) |
|
$ |
191 |
|
|
$ |
60 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATIONEARNINGS RELEASE
TABLESRECONCILIATION OF NON-GAAP MEASURES TO MOST
COMPARABLE AMOUNTSREPORTED UNDER U.S. GAAP
(f)(millions of
dollars)(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Reconciliation of
refining segment operating income torefining
margin (by region), and reconciliation ofrefining
segment operating income to adjusted
refiningsegment operating income (by region)
(g) |
|
|
|
|
|
|
|
U.S. Gulf Coast region (e) |
|
|
|
|
|
|
|
Refining operating income |
$ |
388 |
|
|
$ |
664 |
|
|
$ |
779 |
|
|
$ |
1,829 |
|
Exclude: |
|
|
|
|
|
|
|
2017 blender’s tax credit (a) |
— |
|
|
— |
|
|
— |
|
|
7 |
|
Operating expenses (excluding depreciation andamortization expense
reflected below) |
(641 |
) |
|
(583 |
) |
|
(1,826 |
) |
|
(1,710 |
) |
Depreciation and amortization expense |
(326 |
) |
|
(296 |
) |
|
(954 |
) |
|
(865 |
) |
Other operating expenses (b) |
(6 |
) |
|
(9 |
) |
|
(8 |
) |
|
(39 |
) |
Refining margin |
$ |
1,361 |
|
|
$ |
1,552 |
|
|
$ |
3,567 |
|
|
$ |
4,436 |
|
|
|
|
|
|
|
|
|
Refining operating income |
$ |
388 |
|
|
$ |
664 |
|
|
$ |
779 |
|
|
$ |
1,829 |
|
Exclude: |
|
|
|
|
|
|
|
2017 blender’s tax credit (a) |
— |
|
|
— |
|
|
— |
|
|
7 |
|
Other operating expenses (b) |
(6 |
) |
|
(9 |
) |
|
(8 |
) |
|
(39 |
) |
Adjusted refining operating income |
$ |
394 |
|
|
$ |
673 |
|
|
$ |
787 |
|
|
$ |
1,861 |
|
|
|
|
|
|
|
|
|
U.S. Mid-Continent region (e) |
|
|
|
|
|
|
|
Refining operating income |
$ |
333 |
|
|
$ |
440 |
|
|
$ |
991 |
|
|
$ |
1,072 |
|
Exclude: |
|
|
|
|
|
|
|
2017 blender’s tax credit (a) |
— |
|
|
— |
|
|
— |
|
|
2 |
|
Operating expenses (excluding depreciation andamortization expense
reflected below) |
(156 |
) |
|
(156 |
) |
|
(468 |
) |
|
(468 |
) |
Depreciation and amortization expense |
(77 |
) |
|
(72 |
) |
|
(226 |
) |
|
(213 |
) |
Other operating expenses (b) |
(2 |
) |
|
— |
|
|
(2 |
) |
|
— |
|
Refining margin |
$ |
568 |
|
|
$ |
668 |
|
|
$ |
1,687 |
|
|
$ |
1,751 |
|
|
|
|
|
|
|
|
|
Refining operating income |
$ |
333 |
|
|
$ |
440 |
|
|
$ |
991 |
|
|
$ |
1,072 |
|
Exclude: |
|
|
|
|
|
|
|
2017 blender’s tax credit (a) |
— |
|
|
— |
|
|
— |
|
|
2 |
|
Other operating expenses (b) |
(2 |
) |
|
— |
|
|
(2 |
) |
|
— |
|
Adjusted refining operating income |
$ |
335 |
|
|
$ |
440 |
|
|
$ |
993 |
|
|
$ |
1,070 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATIONEARNINGS RELEASE
TABLESRECONCILIATION OF NON-GAAP MEASURES TO MOST
COMPARABLE AMOUNTSREPORTED UNDER U.S. GAAP
(f)(millions of
dollars)(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Reconciliation of
refining segment operating income torefining
margin (by region), and reconciliation ofrefining
segment operating income to adjusted
refiningsegment operating income (by region) (g)
(continued) |
|
|
|
|
|
|
|
North Atlantic region |
|
|
|
|
|
|
|
Refining operating income |
$ |
273 |
|
|
$ |
322 |
|
|
$ |
727 |
|
|
$ |
620 |
|
Exclude: |
|
|
|
|
|
|
|
Operating expenses (excluding depreciation andamortization expense
reflected below) |
(146 |
) |
|
(149 |
) |
|
(439 |
) |
|
(432 |
) |
Depreciation and amortization expense |
(52 |
) |
|
(52 |
) |
|
(160 |
) |
|
(167 |
) |
Other operating expenses (b) |
(2 |
) |
|
— |
|
|
(2 |
) |
|
— |
|
Refining margin |
$ |
473 |
|
|
$ |
523 |
|
|
$ |
1,328 |
|
|
$ |
1,219 |
|
|
|
|
|
|
|
|
|
Refining operating income |
$ |
273 |
|
|
$ |
322 |
|
|
$ |
727 |
|
|
$ |
620 |
|
Exclude: other operating expenses (b) |
(2 |
) |
|
|
— |
|
|
(2 |
) |
|
— |
|
Adjusted refining operating income |
$ |
275 |
|
|
$ |
322 |
|
|
$ |
729 |
|
|
$ |
620 |
|
|
|
|
|
|
|
|
|
U.S. West Coast region |
|
|
|
|
|
|
|
Refining operating income (loss) |
$ |
93 |
|
|
$ |
(2 |
) |
|
$ |
106 |
|
|
$ |
154 |
|
Exclude: |
|
|
|
|
|
|
|
2017 blender’s tax credit (a) |
— |
|
|
— |
|
|
— |
|
|
1 |
|
Operating expenses (excluding depreciation andamortization expense
reflected below) |
(157 |
) |
|
(170 |
) |
|
(464 |
) |
|
(447 |
) |
Depreciation and amortization expense |
(63 |
) |
|
(59 |
) |
|
(199 |
) |
|
(178 |
) |
Other operating expenses (b) |
— |
|
|
(1 |
) |
|
(1 |
) |
|
(2 |
) |
Refining margin |
$ |
313 |
|
|
$ |
228 |
|
|
$ |
770 |
|
|
$ |
780 |
|
|
|
|
|
|
|
|
|
Refining operating income (loss) |
$ |
93 |
|
|
$ |
(2 |
) |
|
$ |
106 |
|
|
$ |
154 |
|
Exclude: |
|
|
|
|
|
|
|
2017 blender’s tax credit (a) |
— |
|
|
— |
|
|
— |
|
|
1 |
|
Other operating expenses (b) |
— |
|
|
(1 |
) |
|
(1 |
) |
|
(2 |
) |
Adjusted refining operating income (loss) |
$ |
93 |
|
|
$ |
(1 |
) |
|
$ |
107 |
|
|
$ |
155 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATIONEARNINGS RELEASE
TABLESREFINING SEGMENT OPERATING
HIGHLIGHTS(millions of dollars, except per barrel
amounts)(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Throughput volumes
(thousand barrels per day) |
|
|
|
|
|
|
|
Feedstocks: |
|
|
|
|
|
|
|
Heavy sour crude oil |
418 |
|
|
466 |
|
|
416 |
|
|
476 |
|
Medium/light sour crude oil |
253 |
|
|
424 |
|
|
282 |
|
|
422 |
|
Sweet crude oil |
1,615 |
|
|
1,527 |
|
|
1,548 |
|
|
1,392 |
|
Residuals |
238 |
|
|
244 |
|
|
208 |
|
|
233 |
|
Other feedstocks |
132 |
|
|
144 |
|
|
152 |
|
|
128 |
|
Total feedstocks |
2,656 |
|
|
2,805 |
|
|
2,606 |
|
|
2,651 |
|
Blendstocks and other |
298 |
|
|
295 |
|
|
323 |
|
|
326 |
|
Total throughput volumes |
2,954 |
|
|
3,100 |
|
|
2,929 |
|
|
2,977 |
|
|
|
|
|
|
|
|
|
Yields (thousand
barrels per day) |
|
|
|
|
|
|
|
Gasolines and blendstocks |
1,406 |
|
|
1,478 |
|
|
1,393 |
|
|
1,429 |
|
Distillates |
1,137 |
|
|
1,201 |
|
|
1,123 |
|
|
1,135 |
|
Other products (h) |
438 |
|
|
460 |
|
|
442 |
|
|
451 |
|
Total yields |
2,981 |
|
|
3,139 |
|
|
2,958 |
|
|
3,015 |
|
|
|
|
|
|
|
|
|
Operating statistics
(e) (f) (i) |
|
|
|
|
|
|
|
Refining margin |
$ |
2,715 |
|
|
$ |
2,971 |
|
|
$ |
7,352 |
|
|
$ |
8,186 |
|
Adjusted refining operating income |
$ |
1,097 |
|
|
$ |
1,434 |
|
|
$ |
2,616 |
|
|
$ |
3,706 |
|
Throughput volumes (thousand barrels per day) |
2,954 |
|
|
3,100 |
|
|
2,929 |
|
|
2,977 |
|
|
|
|
|
|
|
|
|
Refining margin per barrel of throughput |
$ |
9.99 |
|
|
$ |
10.42 |
|
|
$ |
9.19 |
|
|
$ |
10.07 |
|
Less: |
|
|
|
|
|
|
|
Operating expenses (excluding depreciation andamortization expense
reflected below) per barrel ofthroughput |
4.05 |
|
|
3.72 |
|
|
4.00 |
|
|
3.76 |
|
Depreciation and amortization expense per barrel ofthroughput |
1.90 |
|
|
1.68 |
|
|
1.92 |
|
|
1.75 |
|
Adjusted refining operating income per barrel of throughput |
$ |
4.04 |
|
|
$ |
5.02 |
|
|
$ |
3.27 |
|
|
$ |
4.56 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATIONEARNINGS RELEASE
TABLESETHANOL SEGMENT OPERATING
HIGHLIGHTS(millions of dollars, except per gallon
amounts)(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Operating statistics
(f) (i) |
|
|
|
|
|
|
|
Ethanol margin |
$ |
101 |
|
|
$ |
156 |
|
|
$ |
414 |
|
|
$ |
502 |
|
Adjusted ethanol operating income (loss) |
$ |
(43 |
) |
|
$ |
21 |
|
|
$ |
(32 |
) |
|
$ |
109 |
|
Production volumes (thousand gallons per day) |
4,006 |
|
|
4,069 |
|
|
4,251 |
|
|
4,061 |
|
|
|
|
|
|
|
|
|
Ethanol margin per gallon of production |
$ |
0.27 |
|
|
$ |
0.42 |
|
|
$ |
0.36 |
|
|
$ |
0.45 |
|
Less: |
|
|
|
|
|
|
|
Operating expenses (excluding depreciation andamortization expense
reflected below) per gallon of production |
0.33 |
|
|
0.31 |
|
|
0.33 |
|
|
0.30 |
|
Depreciation and amortization expense per gallon of production |
0.06 |
|
|
0.05 |
|
|
0.06 |
|
|
0.05 |
|
Adjusted ethanol operating income (loss) per gallon of
production |
$ |
(0.12 |
) |
|
$ |
0.06 |
|
|
$ |
(0.03 |
) |
|
$ |
0.10 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATIONEARNINGS RELEASE
TABLESRENEWABLE DIESEL SEGMENT OPERATING
HIGHLIGHTS (e)(millions of dollars, except per
gallon amounts)(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Operating statistics
(f) (i) |
|
|
|
|
|
|
|
Renewable diesel margin |
$ |
98 |
|
|
$ |
20 |
|
|
$ |
283 |
|
|
$ |
125 |
|
Adjusted renewable diesel operating income (loss) |
$ |
65 |
|
|
$ |
(5 |
) |
|
$ |
191 |
|
|
$ |
60 |
|
Sales volumes (thousand gallons per day) |
638 |
|
|
251 |
|
|
732 |
|
|
334 |
|
|
|
|
|
|
|
|
|
Renewable diesel margin per gallon of sales |
$ |
1.66 |
|
|
$ |
0.88 |
|
|
$ |
1.41 |
|
|
$ |
1.37 |
|
Less: |
|
|
|
|
|
|
|
Operating expenses (excluding depreciation andamortization expense
reflected below) per gallon of sales |
0.30 |
|
|
0.80 |
|
|
0.27 |
|
|
0.50 |
|
Depreciation and amortization expense per gallon of sales |
0.25 |
|
|
0.28 |
|
|
0.19 |
|
|
0.21 |
|
Adjusted renewable diesel operating income (loss) per gallonof
sales |
$ |
1.11 |
|
|
$ |
(0.20 |
) |
|
$ |
0.95 |
|
|
$ |
0.66 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATIONEARNINGS RELEASE
TABLESREFINING SEGMENT OPERATING HIGHLIGHTS BY
REGION(millions of dollars, except per barrel
amounts)(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Operating statistics
by region (g) |
|
|
|
|
|
|
|
U.S. Gulf Coast region (e) (f) (i) |
|
|
|
|
|
|
|
Refining margin |
$ |
1,361 |
|
|
$ |
1,552 |
|
|
$ |
3,567 |
|
|
$ |
4,436 |
|
Adjusted refining operating income |
$ |
394 |
|
|
$ |
673 |
|
|
$ |
787 |
|
|
$ |
1,861 |
|
Throughput volumes (thousand barrels per day) |
1,747 |
|
|
1,834 |
|
|
1,732 |
|
|
1,764 |
|
|
|
|
|
|
|
|
|
Refining margin per barrel of throughput |
$ |
8.47 |
|
|
$ |
9.20 |
|
|
$ |
7.54 |
|
|
$ |
9.22 |
|
Less: |
|
|
|
|
|
|
|
Operating expenses (excluding depreciation andamortization expense
reflected below) per barrel ofthroughput |
3.99 |
|
|
3.46 |
|
|
3.86 |
|
|
3.55 |
|
Depreciation and amortization expense per barrel ofthroughput |
2.02 |
|
|
1.75 |
|
|
2.02 |
|
|
1.81 |
|
Adjusted refining operating income per barrel of throughput |
$ |
2.46 |
|
|
$ |
3.99 |
|
|
$ |
1.66 |
|
|
$ |
3.86 |
|
|
|
|
|
|
|
|
|
U.S. Mid-Continent region (e) (f) (i) |
|
|
|
|
|
|
|
Refining margin |
$ |
568 |
|
|
$ |
668 |
|
|
$ |
1,687 |
|
|
$ |
1,751 |
|
Adjusted refining operating income |
$ |
335 |
|
|
$ |
440 |
|
|
$ |
993 |
|
|
$ |
1,070 |
|
Throughput volumes (thousand barrels per day) |
450 |
|
|
459 |
|
|
451 |
|
|
471 |
|
|
|
|
|
|
|
|
|
Refining margin per barrel of throughput |
$ |
13.73 |
|
|
$ |
15.80 |
|
|
$ |
13.70 |
|
|
$ |
13.62 |
|
Less: |
|
|
|
|
|
|
|
Operating expenses (excluding depreciation andamortization expense
reflected below) per barrel ofthroughput |
3.79 |
|
|
3.70 |
|
|
3.80 |
|
|
3.64 |
|
Depreciation and amortization expense per barrel ofthroughput |
1.86 |
|
|
1.70 |
|
|
1.84 |
|
|
1.66 |
|
Adjusted refining operating income per barrel of throughput |
$ |
8.08 |
|
|
$ |
10.40 |
|
|
$ |
8.06 |
|
|
$ |
8.32 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATIONEARNINGS RELEASE
TABLESREFINING SEGMENT OPERATING HIGHLIGHTS BY
REGION(millions of dollars, except per barrel
amounts)(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Operating statistics
by region (g) (continued) |
|
|
|
|
|
|
|
North Atlantic region (f) (i) |
|
|
|
|
|
|
|
Refining margin |
$ |
473 |
|
|
$ |
523 |
|
|
$ |
1,328 |
|
|
$ |
1,219 |
|
Adjusted refining operating income |
$ |
275 |
|
|
$ |
322 |
|
|
$ |
729 |
|
|
$ |
620 |
|
Throughput volumes (thousand barrels per day) |
474 |
|
|
509 |
|
|
486 |
|
|
455 |
|
|
|
|
|
|
|
|
|
Refining margin per barrel of throughput |
$ |
10.84 |
|
|
$ |
11.17 |
|
|
$ |
10.01 |
|
|
$ |
9.81 |
|
Less: |
|
|
|
|
|
|
|
Operating expenses (excluding depreciation andamortization expense
reflected below) per barrel ofthroughput |
3.33 |
|
|
3.18 |
|
|
3.31 |
|
|
3.48 |
|
Depreciation and amortization expense per barrel ofthroughput |
1.21 |
|
|
1.12 |
|
|
1.20 |
|
|
1.34 |
|
Adjusted refining operating income per barrel of throughput |
$ |
6.30 |
|
|
$ |
6.87 |
|
|
$ |
5.50 |
|
|
$ |
4.99 |
|
|
|
|
|
|
|
|
|
U.S. West Coast region (f) (i) |
|
|
|
|
|
|
|
Refining margin |
$ |
313 |
|
|
$ |
228 |
|
|
$ |
770 |
|
|
$ |
780 |
|
Adjusted refining operating income (loss) |
$ |
93 |
|
|
$ |
(1 |
) |
|
$ |
107 |
|
|
$ |
155 |
|
Throughput volumes (thousand barrels per day) |
283 |
|
|
298 |
|
|
260 |
|
|
287 |
|
|
|
|
|
|
|
|
|
Refining margin per barrel of throughput |
$ |
12.04 |
|
|
$ |
8.33 |
|
|
$ |
10.84 |
|
|
$ |
9.94 |
|
Less: |
|
|
|
|
|
|
|
Operating expenses (excluding depreciation andamortization expense
reflected below) per barrel ofthroughput |
6.03 |
|
|
6.22 |
|
|
6.54 |
|
|
5.70 |
|
Depreciation and amortization expense per barrel ofthroughput |
2.43 |
|
|
2.15 |
|
|
2.80 |
|
|
2.27 |
|
Adjusted refining operating income (loss) per barrel
ofthroughput |
$ |
3.58 |
|
|
$ |
(0.04 |
) |
|
$ |
1.50 |
|
|
$ |
1.97 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATIONEARNINGS RELEASE
TABLESAVERAGE MARKET REFERENCE PRICES AND
DIFFERENTIALS(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Refining |
|
|
|
|
|
|
|
Feedstocks (dollars per barrel) |
|
|
|
|
|
|
|
Brent crude oil |
$ |
62.08 |
|
|
$ |
75.93 |
|
|
$ |
64.74 |
|
|
$ |
72.67 |
|
Brent less West Texas Intermediate (WTI) crude oil |
5.64 |
|
|
6.23 |
|
|
7.70 |
|
|
5.81 |
|
Brent less Alaska North Slope (ANS) crude oil |
(0.99 |
) |
|
0.38 |
|
|
(0.51 |
) |
|
0.47 |
|
Brent less Louisiana Light Sweet (LLS) crude oil |
1.46 |
|
|
1.63 |
|
|
1.40 |
|
|
1.64 |
|
Brent less Argus Sour Crude Index (ASCI) crude oil |
3.18 |
|
|
5.12 |
|
|
3.17 |
|
|
5.21 |
|
Brent less Maya crude oil |
5.45 |
|
|
9.74 |
|
|
5.57 |
|
|
10.70 |
|
LLS crude oil |
60.62 |
|
|
74.30 |
|
|
63.34 |
|
|
71.03 |
|
LLS less ASCI crude oil |
1.72 |
|
|
3.49 |
|
|
1.77 |
|
|
3.57 |
|
LLS less Maya crude oil |
3.99 |
|
|
8.11 |
|
|
4.17 |
|
|
9.06 |
|
WTI crude oil |
56.44 |
|
|
69.70 |
|
|
57.04 |
|
|
66.86 |
|
|
|
|
|
|
|
|
|
Natural gas (dollars per million British Thermal
Units) |
2.28 |
|
|
2.96 |
|
|
2.53 |
|
|
3.01 |
|
|
|
|
|
|
|
|
|
Products (dollars per barrel, unless otherwise
noted) |
|
|
|
|
|
|
|
U.S. Gulf Coast: |
|
|
|
|
|
|
|
Conventional Blendstock of Oxygenate Blending (CBOB)gasoline less
Brent |
6.82 |
|
|
7.08 |
|
|
4.57 |
|
|
7.28 |
|
Ultra-low-sulfur (ULS) diesel less Brent |
15.79 |
|
|
13.91 |
|
|
14.55 |
|
|
13.72 |
|
Propylene less Brent |
(19.36 |
) |
|
5.49 |
|
|
(21.57 |
) |
|
(2.62 |
) |
CBOB gasoline less LLS |
8.28 |
|
|
8.71 |
|
|
5.97 |
|
|
8.92 |
|
ULS diesel less LLS |
17.25 |
|
|
15.54 |
|
|
15.95 |
|
|
15.36 |
|
Propylene less LLS |
(17.90 |
) |
|
7.12 |
|
|
(20.17 |
) |
|
(0.98 |
) |
U.S. Mid-Continent: |
|
|
|
|
|
|
|
CBOB gasoline less WTI |
15.28 |
|
|
16.68 |
|
|
14.58 |
|
|
15.40 |
|
ULS diesel less WTI |
21.38 |
|
|
22.77 |
|
|
22.93 |
|
|
21.54 |
|
North Atlantic: |
|
|
|
|
|
|
|
CBOB gasoline less Brent |
10.11 |
|
|
10.43 |
|
|
7.16 |
|
|
9.89 |
|
ULS diesel less Brent |
17.28 |
|
|
15.54 |
|
|
16.49 |
|
|
15.58 |
|
U.S. West Coast: |
|
|
|
|
|
|
|
California Reformulated Gasoline Blendstock ofOxygenate Blending
(CARBOB) 87 gasoline less ANS |
19.31 |
|
|
13.52 |
|
|
16.76 |
|
|
15.05 |
|
California Air Resources Board (CARB) diesel less ANS |
18.38 |
|
|
17.85 |
|
|
18.56 |
|
|
17.94 |
|
CARBOB 87 gasoline less WTI |
25.94 |
|
|
19.37 |
|
|
24.97 |
|
|
20.39 |
|
CARB diesel less WTI |
25.01 |
|
|
23.70 |
|
|
26.77 |
|
|
23.28 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATIONEARNINGS RELEASE
TABLESAVERAGE MARKET REFERENCE PRICES AND
DIFFERENTIALS(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Ethanol |
|
|
|
|
|
|
|
Chicago Board of Trade (CBOT) corn (dollars per bushel) |
$ |
3.90 |
|
|
$ |
3.53 |
|
|
$ |
3.85 |
|
|
$ |
3.68 |
|
New York Harbor ethanol (dollars per gallon) |
1.53 |
|
|
1.47 |
|
|
1.50 |
|
|
1.52 |
|
|
|
|
|
|
|
|
|
Renewable
diesel |
|
|
|
|
|
|
|
New York Mercantile Exchange ULS diesel(dollars per gallon) |
1.90 |
|
|
2.18 |
|
|
1.94 |
|
|
2.10 |
|
Biodiesel Renewable Identification Number (RIN)(dollars per
RIN) |
0.46 |
|
|
0.41 |
|
|
0.45 |
|
|
0.58 |
|
California Low-Carbon Fuel Standard (dollars per metric ton) |
198.24 |
|
|
183.62 |
|
|
193.74 |
|
|
160.44 |
|
CBOT soybean oil (dollars per pound) |
0.29 |
|
|
0.28 |
|
|
0.29 |
|
|
0.30 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATIONEARNINGS RELEASE
TABLESOTHER FINANCIAL
DATA(millions of dollars, except per share
amounts)(unaudited)
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|
|
2019 |
|
2018 |
Balance sheet
data |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
$ |
17,033 |
|
|
$ |
17,675 |
|
Cash and cash equivalents included in current assets |
|
2,137 |
|
|
2,982 |
|
Inventories included in current assets |
|
|
|
|
6,376 |
|
|
6,532 |
|
Current liabilities |
|
|
|
|
12,130 |
|
|
10,724 |
|
Current portion of debt and finance lease obligations includedin
current liabilities |
|
402 |
|
|
238 |
|
Debt and finance lease obligations, less current portion |
|
|
|
9,170 |
|
|
8,871 |
|
Total debt and finance lease obligations |
|
|
|
|
9,572 |
|
|
9,109 |
|
Valero Energy Corporation stockholders’ equity |
|
|
|
21,107 |
|
|
21,667 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net cash provided by
operating activities and adjustednet cash provided
by operating activities (f) |
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
1,429 |
|
|
$ |
496 |
|
|
$ |
3,823 |
|
|
$ |
2,693 |
|
Exclude: changes in current assets and current liabilities |
315 |
|
|
(729 |
) |
|
728 |
|
|
(1,174 |
) |
Adjusted net cash provided by operating activities |
$ |
1,114 |
|
|
$ |
1,225 |
|
|
$ |
3,095 |
|
|
$ |
3,867 |
|
|
|
|
|
|
|
|
|
Dividends per common
share |
$ |
0.90 |
|
|
$ |
0.80 |
|
|
$ |
2.70 |
|
|
$ |
2.40 |
|
See Notes to Earnings Release Tables.
VALERO ENERGY
CORPORATIONNOTES TO EARNINGS RELEASE
TABLES
(a) Cost of materials and other for the nine months
ended September 30, 2018 includes a benefit of $170 million
for the biodiesel blender’s tax credit attributable to volumes
blended during 2017. The benefit was recognized in February 2018
because the U.S. legislation authorizing the credit was passed and
signed into law in that month. Of the $170 million pre-tax
benefit, $10 million and $160 million is included in our
refining and renewable diesel segments, respectively, and
consequently, $80 million is attributable to noncontrolling
interest and $90 million is attributable to Valero Energy
Corporation stockholders.
(b) Other operating expenses reflects expenses that are not
associated with our cost of sales and primarily includes costs to
repair, remediate, and restore our facilities to normal operations
following a non-operating event such as a natural disaster or a
major unplanned outage.
(c) General and administrative expenses (excluding depreciation
and amortization expense) for the nine months ended
September 30, 2018 includes a charge of $108 million for
environmental reserve adjustments associated with certain
non-operating sites.
(d) “Other income, net” for the nine months ended September 30,
2019 and 2018 includes a $22 million charge from the early
redemption of $850 million of our 6.125 percent senior
notes due February 1, 2020 and a $38 million charge from
the early redemption of $750 million of our 9.375 percent
senior notes due March 15, 2019, respectively.
(e) Effective January 1, 2019, we revised our reportable
segments to align with certain changes in how our chief operating
decision maker manages and allocates resources to our business.
Accordingly, we created a new reportable segment — renewable
diesel. The results of the renewable diesel segment, which includes
the operations of our consolidated joint venture, Diamond Green
Diesel Holdings LLC, were transferred from the refining
segment. Also effective January 1, 2019, we no longer have a
VLP segment, and as a result, the operations previously included in
the VLP segment are included in our refining segment. Our prior
period segment information has been retrospectively adjusted to
reflect our current segment presentation.
(f) We use certain financial measures (as noted below) in the
earnings release tables and accompanying earnings release that are
not defined under U.S. GAAP and are considered to be non-GAAP
measures.We have defined these non-GAAP measures and believe they
are useful to the external users of our financial statements,
including industry analysts, investors, lenders, and rating
agencies. We believe these measures are useful to assess our
ongoing financial performance because, when reconciled to their
most comparable U.S. GAAP measures, they provide improved
comparability between periods through the exclusion of certain
items that we believe are not indicative of our core operating
performance and that may obscure our underlying business results
and trends. These non-GAAP measures should not be considered as
alternatives to their most comparable U.S. GAAP measures nor
should they be considered in isolation or as a substitute for an
analysis of our results of operations as reported under
U.S. GAAP. In addition, these non-GAAP measures may not be
comparable to similarly titled measures used by other companies
because we may define them differently, which diminishes their
utility.
Non-GAAP measures are as follows:
- Adjusted net income attributable to Valero Energy
Corporation stockholders is defined as net income
attributable to Valero Energy Corporation stockholders excluding
the items noted below, along with their related income tax effect.
We have excluded these items because we believe that they are not
indicative of our core operating performance and that their
exclusion results in an important measure of our ongoing financial
performance to better assess our underlying business results and
trends. The basis for our belief with respect to each excluded item
is provided below.
- 2017 blender’s tax credit attributable to Valero Energy
Corporation stockholders - The blender’s tax credit is attributable
to volumes blended during 2017 and is not related to 2018
activities, as described in note (a).
- Texas City Refinery fire expenses - The costs incurred to
respond to and assess the damage caused by the fire that occurred
at the Texas City Refinery are specific to that event and are not
ongoing costs incurred in our operations.
- Environmental reserve adjustments - The environmental reserve
adjustments are attributable to sites that were shut down by prior
owners and subsequently acquired by us (referred to by us as
non-operating sites) (see note (c)).
- Loss on early redemption of debt - The penalty and other
expenses incurred in connection with the early redemption of our
6.125 percent senior notes due February 1, 2020 and
9.375 percent senior notes due March 15, 2019 (see
note (d)) are not associated with the ongoing costs of our
borrowing and financing activities.
- Adjusted earnings per common share – assuming
dilution is defined as adjusted net income attributable to
Valero Energy Corporation stockholders divided by the number of
weighted-average shares outstanding in the applicable period,
assuming dilution.
- Refining margin is defined as refining
operating income excluding the 2017 blender’s tax credit (see
note (a)), operating expenses (excluding depreciation and
amortization expense), depreciation and amortization expense, and
other operating expenses. We believe refining margin is an
important measure of our refining segment’s operating and financial
performance as it is the most comparable measure to the industry’s
market reference product margins, which are used by industry
analysts, investors, and others to evaluate our performance.
- Ethanol margin is defined as ethanol operating
income (loss) excluding operating expenses (excluding depreciation
and amortization expense), depreciation and amortization expense,
and other operating expenses. We believe ethanol margin is an
important measure of our ethanol segment’s operating and financial
performance as it is the most comparable measure to the industry’s
market reference product margins, which are used by industry
analysts, investors, and others to evaluate our performance.
- Renewable diesel margin is defined as
renewable diesel operating income (loss) excluding the 2017
blender’s tax credit (see note (a)), operating expenses
(excluding depreciation and amortization expense), and depreciation
and amortization expense. We believe renewable diesel margin is an
important measure of our renewable diesel segment’s operating and
financial performance as it is the most comparable measure to the
industry’s market reference product margins, which are used by
industry analysts, investors, and others to evaluate our
performance.
- Adjusted refining operating income is defined
as refining segment operating income excluding the 2017 blender’s
tax credit (see note (a)) and other operating expenses. We
believe adjusted refining operating income is an important measure
of our refining segment’s operating and financial performance
because it excludes items that are not indicative of that segment’s
core operating performance.
- Adjusted ethanol operating income (loss) is
defined as ethanol segment operating income (loss) excluding other
operating expenses. We believe this is an important measure of our
ethanol segment’s operating and financial performance because it
excludes items that are not indicative of that segment’s core
operating performance.
- Adjusted renewable diesel operating income
(loss) is defined as renewable diesel segment operating
income (loss) excluding the 2017 blender’s tax credit (see
note (a)). We believe this is an important measure of our
renewable diesel segment’s operating and financial performance
because it excludes items that are not indicative of that segment’s
core operating performance.
- Adjusted net cash provided by operating
activities is defined as net cash provided by operating
activities excluding changes in current assets and current
liabilities. We believe adjusted net cash provided by operating
activities is an important measure of our ongoing financial
performance to better assess our ability to generate cash to fund
our investing and financing activities.
(g) The refining segment regions reflected
herein contain the following refineries: U.S. Gulf
Coast- Corpus Christi East, Corpus Christi West, Houston,
Meraux, Port Arthur, St. Charles, Texas City, and Three Rivers
Refineries; U.S. Mid-Continent- Ardmore, McKee,
and Memphis Refineries; North Atlantic- Pembroke
and Quebec City Refineries; and U.S. West
Coast- Benicia and Wilmington Refineries.
(h) Primarily includes petrochemicals, gas oils,
No. 6 fuel oil, petroleum coke, sulfur, and asphalt.
(i) Valero uses certain operating statistics (as
noted below) in the earnings release tables and the accompanying
earnings release to evaluate performance between comparable
periods. Different companies may calculate them in different
ways.All per barrel of throughput, per gallon of production, and
per gallon of sales amounts are calculated by dividing the
associated dollar amount by the throughput volumes, production
volumes, and sales volumes for the period, as applicable.
Throughput volumes, production volumes, and
sales volumes are calculated by multiplying throughput volumes per
day, production volumes per day, and sales volumes per day (as
provided in the accompanying tables), respectively, by the number
of days in the applicable period. We use throughput volumes,
production volumes, and sales volumes for the refining segment,
ethanol segment, and renewable diesel segment, respectively, due to
their general use by others who operate facilities similar to those
included in our segments. We believe the use of such volumes
results in per unit amounts that are most representative of the
product margins generated and the operating costs incurred as a
result of our operation of those facilities.
Valero Energy (NYSE:VLO)
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Valero Energy (NYSE:VLO)
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から 7 2023 まで 7 2024