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Exhibit 99.01

Valero Energy Reports Second Quarter 2018 Results

Reported net income attributable to Valero stockholders of $845 million, or $1.96 per share, and adjusted net income attributable to Valero stockholders of $928 million, or $2.15 per share, a 75 percent increase in adjusted per share results compared to the second quarter of 2017.
Invested $718 million of capital in the second quarter.
Returned $672 million in cash to stockholders through dividends and stock buybacks.

SAN ANTONIO, July 26, 2018 – Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income attributable to Valero stockholders of $845 million, or $1.96 per share, for the second quarter of 2018 compared to $548 million, or $1.23 per share, for the second quarter of 2017. Excluding the special items reflected in the accompanying earnings release tables, second quarter 2018 adjusted net income attributable to Valero stockholders was $928 million, or $2.15 per share, a 75 percent increase in adjusted per share results compared to the second quarter of 2017.

“We ran well while we completed refinery maintenance in the second quarter and delivered solid results,” said Joe Gorder, Valero Chairman, President and Chief Executive Officer. “We’re realizing the benefits of our prior investments in light crude processing and hydrocracking capacity.”

Refining
The refining segment reported $1.4 billion of operating income for the second quarter of 2018 compared to $945 million for the second quarter of 2017. Second quarter 2018 operating income includes $21 million of other operating expenses primarily related to costs incurred to respond to and assess the damage caused by a fire at the Texas City Refinery in April. Adjusted operating income, which excludes other operating expenses, was $463 million higher compared to second quarter 2017, driven mainly by higher distillate margins and wider discounts for sour and domestic sweet crude oils versus Brent.



1


Refinery throughput capacity utilization was 93 percent, and throughput volumes averaged 2.9 million barrels per day in the second quarter of 2018, which is 121,000 barrels per day lower than the second quarter of 2017 due to maintenance in the North Atlantic and U.S. Gulf Coast regions. The company exported a total of 409,000 barrels per day of gasoline and distillate during the second quarter of 2018.

Biofuel blending costs were $131 million in the second quarter of 2018, which is $124 million less than in the second quarter of 2017, mainly due to lower Renewable Identification Number (RIN) prices.

Ethanol
The ethanol segment reported $43 million of operating income for the second quarter of 2018 compared to $31 million for the second quarter of 2017. The increase in operating income is attributed primarily to higher distillers grain prices and stronger production volumes. Ethanol production volumes of 4 million gallons per day were 227,000 gallons per day higher than in the second quarter of 2017.

VLP
The VLP segment, which is composed of Valero Energy Partners LP (the “Partnership”), the company’s majority-owned midstream master limited partnership, reported $83 million of operating income for the second quarter of 2018 compared to $71 million for the second quarter of 2017. The increase in operating income is mostly driven by contributions from the Port Arthur terminal assets and Parkway Pipeline, which the Partnership acquired from Valero in November 2017. These assets were formerly a part of the refining segment.

Corporate and Other
General and administrative expenses were $248 million in the second quarter of 2018 compared to $175 million in the second quarter of 2017. The increase is mainly due to adjustments to our environmental liabilities. The effective tax rate was 22 percent for the second quarter of 2018.



2


Investing and Financing Activities
Capital investments in the second quarter of 2018 totaled $718 million. Included in this amount is $510 million associated with sustaining the business, such as turnaround, catalyst, and regulatory compliance expenditures, with the balance for growth.

Valero returned $672 million to stockholders in the second quarter, of which $345 million was paid as dividends and the balance was used to purchase 2.8 million shares of its common stock. The company also completed a $750 million public offering of 4.35 percent senior notes during the quarter and in June repaid $750 million of senior notes due in 2019.

Net cash provided by operating activities in the second quarter was $2.1 billion. Included in this amount is a $581 million benefit from working capital. Excluding working capital, adjusted net cash provided by operating activities was $1.5 billion.

The company continues to target a total payout ratio between 40 and 50 percent of adjusted net cash provided by operating activities for 2018. Valero defines total payout ratio as the sum of dividends and stock buybacks divided by adjusted net cash provided by operating activities.

Liquidity and Financial Position
Valero ended the second quarter of 2018 with $9.1 billion of total debt and $4.5 billion of cash and cash equivalents. The debt to capital ratio, net of $2.0 billion in cash, was 24 percent.

Strategic Update
Valero’s investment in Diamond Pipeline continued to pay out in the second quarter as discounts for WTI crude relative to Brent widened.

“We’re enjoying the benefits of lower crude costs and optionality at our Memphis refinery provided by the Diamond Pipeline,” said Gorder. “Our U.S. Mid-Continent refineries are also poised to capture additional margin opportunities from increased access to Permian Basin crude oils when the Sunrise Pipeline expansion starts up in early 2019.”



3


The company continued to advance its growth investments to increase refining margins, strategically expand its supply chain, and reduce secondary costs. The expansion of the Diamond Green Diesel plant to 18,000 barrels per day of capacity is expected to be completed in August. Work is also moving forward as scheduled on the Houston and St. Charles alkylation units, the Central Texas pipelines and terminals, the Pasadena products terminal, and the Pembroke cogeneration plant.

The company reaffirmed its 2018 capital investment plans of $2.7 billion, of which $1.0 billion is for growth projects and $1.7 billion is for sustaining the business.

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

About Valero
Valero Energy Corporation, through its subsidiaries, 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 1.45 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 (“VLP”), 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.



4


Valero Contacts
Investors:
John Locke, Vice President – Investor Relations, 210-345-3077
Karen Ngo, Senior Manager – Investor Relations, 210-345-4574
Tom Mahrer, Manager – Investor Relations, 210-345-1953

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

Safe-Harbor Statement
Statements contained in this release that state the company’s or management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “believe,” “expect,” “should,” “estimates,” “intend,” “target,” 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 Information
This earnings release and the accompanying earnings release tables include references to financial measures that are not defined under U.S. generally accepted accounting principles (GAAP). These non-GAAP measures include adjusted net income attributable to Valero stockholders, adjusted earnings per common share – assuming dilution, adjusted refining operating income, refining margin, ethanol margin, and adjusted net cash provided by operating activities. 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 non-GAAP measures to their most directly comparable U.S. GAAP measures. In note (g) to the earnings release tables,


5


we disclose the reasons why we believe our use of these non-GAAP financial measures provides useful information.


6



VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
FINANCIAL HIGHLIGHTS
(millions of dollars, except per share amounts)
(unaudited)

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2018
 
2017
 
2018
 
2017
Statement of income data
 
 
 
 
 
 
 
Revenues
$
31,015

 
$
22,254

 
$
57,454

 
$
44,026

Cost of sales:
 
 
 
 
 
 
 
Cost of materials and other (a)
27,860

 
19,609

 
51,616

 
39,037

Operating expenses (excluding depreciation and
amortization expense reflected below) (b)
1,110

 
1,111

 
2,246

 
2,235

Depreciation and amortization expense
510

 
485

 
995

 
973

Total cost of sales
29,480

 
21,205

 
54,857

 
42,245

Other operating expenses (c)
21

 

 
31

 

General and administrative expenses (excluding
depreciation and amortization expense reflected below) (b) (d)
248

 
175

 
486

 
367

Depreciation and amortization expense
13

 
14

 
26

 
26

Operating income
1,253

 
860

 
2,054

 
1,388

Other income (expense), net (b) (e)
(5
)
 
27

 
46

 
53

Interest and debt expense, net of capitalized interest
(124
)
 
(119
)
 
(245
)
 
(240
)
Income before income tax expense
1,124

 
768

 
1,855

 
1,201

Income tax expense (f)
249

 
196

 
398

 
308

Net income
875

 
572

 
1,457

 
893

Less: Net income attributable to noncontrolling interests (a)
30

 
24

 
143

 
40

Net income attributable to Valero Energy Corporation
stockholders
$
845

 
$
548

 
$
1,314

 
$
853

 
 
 
 
 
 
 
 
Earnings per common share
$
1.96

 
$
1.23

 
$
3.05

 
$
1.90

Weighted-average common shares outstanding (in millions)
429

 
444

 
430

 
446

 
 
 
 
 
 
 
 
Earnings per common share – assuming dilution
$
1.96

 
$
1.23

 
$
3.04

 
$
1.90

Weighted-average common shares outstanding –
assuming dilution (in millions)
431

 
446

 
432

 
448

 
 
 
 
 
 
 
 
Dividends per common share
$
0.80

 
$
0.70

 
$
1.60

 
$
1.40


See Notes to Earnings Release Tables on Table Page 15.


Table Page 1



VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
FINANCIAL HIGHLIGHTS BY SEGMENT
(millions of dollars)
(unaudited)

 
Refining
 
Ethanol
 
VLP
 
Corporate
and
Eliminations
 
Total
Three months ended June 30, 2018
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
30,130

 
$
884

 
$

 
$
1

 
$
31,015

Intersegment revenues
1

 
42

 
135

 
(178
)
 

Total revenues
30,131

 
926

 
135

 
(177
)
 
31,015

Cost of sales:
 
 
 
 
 
 
 
 
 
Cost of materials and other
27,283

 
754

 

 
(177
)
 
27,860

Operating expenses (excluding depreciation and
amortization expense reflected below)
969

 
109

 
33

 
(1
)
 
1,110

Depreciation and amortization expense
471

 
20

 
19

 

 
510

Total cost of sales
28,723

 
883

 
52

 
(178
)
 
29,480

Other operating expenses (c)
21

 

 

 

 
21

General and administrative expenses (excluding
depreciation and amortization expense reflected
below) (d)

 

 

 
248

 
248

Depreciation and amortization expense

 

 

 
13

 
13

Operating income by segment
$
1,387

 
$
43

 
$
83

 
$
(260
)
 
$
1,253

 
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2017
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
21,415

 
$
839

 
$

 
$

 
$
22,254

Intersegment revenues

 
28

 
110

 
(138
)
 

Total revenues
21,415

 
867

 
110

 
(138
)
 
22,254

Cost of sales:
 
 
 
 
 
 
 
 
 
Cost of materials and other
19,037

 
710

 

 
(138
)
 
19,609

Operating expenses (excluding depreciation and
amortization expense reflected below) (b)
979

 
107

 
27

 
(2
)
 
1,111

Depreciation and amortization expense
454

 
19

 
12

 

 
485

Total cost of sales
20,470

 
836

 
39

 
(140
)
 
21,205

General and administrative expenses (excluding
depreciation and amortization expense reflected
below) (b)

 

 

 
175

 
175

Depreciation and amortization expense

 

 

 
14

 
14

Operating income by segment
$
945

 
$
31

 
$
71

 
$
(187
)
 
$
860


See Operating Highlights by Segment beginning on Table Page 8.
See Notes to Earnings Release Tables on Table Page 15.





Table Page 2



VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
FINANCIAL HIGHLIGHTS BY SEGMENT
(millions of dollars)
(unaudited)

 
Refining
 
Ethanol
 
VLP
 
Corporate
and
Eliminations
 
Total
Six months ended June 30, 2018
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
55,691

 
$
1,761

 
$

 
$
2

 
$
57,454

Intersegment revenues
5

 
88

 
267

 
(360
)
 

Total revenues
55,696

 
1,849

 
267

 
(358
)
 
57,454

Cost of sales:
 
 
 
 
 
 
 
 
 
Cost of materials and other (a)
50,471

 
1,503

 

 
(358
)
 
51,616

Operating expenses (excluding depreciation and
amortization expense reflected below)
1,966

 
220

 
62

 
(2
)
 
2,246

Depreciation and amortization expense
919

 
38

 
38

 

 
995

Total cost of sales
53,356

 
1,761

 
100

 
(360
)
 
54,857

Other operating expenses (c)
31

 

 

 

 
31

General and administrative expenses (excluding
depreciation and amortization expense reflected
below) (d)

 

 

 
486

 
486

Depreciation and amortization expense

 

 

 
26

 
26

Operating income by segment
$
2,309

 
$
88

 
$
167

 
$
(510
)
 
$
2,054

 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2017
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
42,302

 
$
1,724

 
$

 
$

 
$
44,026

Intersegment revenues

 
88

 
216

 
(304
)
 

Total revenues
42,302

 
1,812

 
216

 
(304
)
 
44,026

Cost of sales:
 
 
 
 
 
 
 
 
 
Cost of materials and other
37,844

 
1,497

 

 
(304
)
 
39,037

Operating expenses (excluding depreciation and
amortization expense reflected below) (b)
1,970

 
216

 
51

 
(2
)
 
2,235

Depreciation and amortization expense
903

 
46

 
24

 

 
973

Total cost of sales
40,717

 
1,759

 
75

 
(306
)
 
42,245

General and administrative expenses (excluding
depreciation and amortization expense reflected
below) (b)

 

 

 
367

 
367

Depreciation and amortization expense

 

 

 
26

 
26

Operating income by segment
$
1,585

 
$
53

 
$
141

 
$
(391
)
 
$
1,388


See Operating Highlights by Segment beginning on Table Page 8.
See Notes to Earnings Release Tables on Table Page 15.









Table Page 3



VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP (g)
(millions of dollars, except per share amounts)
(unaudited)


 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2018
 
2017
 
2018
 
2017
Reconciliation of net income attributable to Valero Energy
Corporation stockholders to adjusted net income
attributable to Valero Energy Corporation stockholders
 
 
 
 
 
 
 
Net income attributable to Valero Energy Corporation
stockholders
$
845

 
$
548

 
$
1,314

 
$
853

Exclude adjustments:
 
 
 
 
 
 
 
Blender’s tax credit attributable to Valero Energy
Corporation stockholders (a)

 

 
90

 

Income tax expense related to the blender’s tax credit

 

 
(11
)
 

Blender’s tax credit attributable to Valero Energy
Corporation stockholders, net of taxes

 

 
79

 

Texas City Refinery fire expenses (c)
(14
)
 

 
(14
)
 

Income tax benefit related to Texas City Refinery
fire expenses
3

 

 
3

 

Texas City Refinery fire expenses, net of taxes
(11
)
 

 
(11
)
 

Environmental reserve adjustment (d)
(56
)
 

 
(108
)
 

Income tax benefit related to the environmental reserve
adjustment
13

 

 
24

 

Environmental reserve adjustment, net of taxes
(43
)
 

 
(84
)
 

Loss on early redemption of debt (e)
(38
)
 

 
(38
)
 

Income tax benefit related to the loss on early
redemption of debt
9

 

 
9

 

Loss on early redemption of debt, net of taxes
(29
)
 

 
(29
)
 

Total adjustments
(83
)
 

 
(45
)
 

Adjusted net income attributable to
Valero Energy Corporation stockholders
$
928

 
$
548

 
$
1,359

 
$
853

 
 
 
 
 
 
 
 
Reconciliation of earnings per common share – assuming
dilution to adjusted earnings per common share –
assuming dilution
 
 
 
 
 
 
 
Earnings per common share – assuming dilution
$
1.96

 
$
1.23

 
$
3.04

 
$
1.90

Exclude adjustments:
 
 
 
 
 
 
 
Blender’s tax credit attributable to Valero Energy
Corporation stockholders (a)

 

 
0.18

 

Texas City Refinery fire expenses (c)
(0.02
)
 

 
(0.03
)
 

Environmental reserve adjustment (d)
(0.10
)
 

 
(0.19
)
 

Loss on early redemption of debt (e)
(0.07
)
 

 
(0.07
)
 

Total adjustments
(0.19
)
 

 
(0.11
)
 

Adjusted earnings per common share – assuming dilution
$
2.15

 
$
1.23

 
$
3.15

 
$
1.90


See Notes to Earnings Release Tables on Table Page 15.


Table Page 4



VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP (g)
(millions of dollars)
(unaudited)

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2018
 
2017
 
2018
 
2017
Reconciliation of operating income by segment to segment
margin, and reconciliation of operating income by
segment to adjusted operating income by segment
 
 
 
 
 
 
 
Refining segment
 
 
 
 
 
 
 
Refining operating income
$
1,387

 
$
945

 
$
2,309

 
$
1,585

Exclude:
 
 
 
 
 
 
 
Blender’s tax credit (a)

 

 
170

 

Operating expenses (excluding depreciation and
amortization expense reflected below) (b)
(969
)
 
(979
)
 
(1,966
)
 
(1,970
)
Depreciation and amortization expense
(471
)
 
(454
)
 
(919
)
 
(903
)
Other operating expenses (c)
(21
)
 

 
(31
)
 

Refining margin
$
2,848

 
$
2,378

 
$
5,055

 
$
4,458

 
 
 
 
 
 
 
 
Refining operating income
$
1,387

 
$
945

 
$
2,309

 
$
1,585

Exclude:
 
 
 
 
 
 
 
Blender’s tax credit (a)

 

 
170

 

Other operating expenses (c)
(21
)
 

 
(31
)
 

Adjusted refining operating income
$
1,408

 
$
945

 
$
2,170

 
$
1,585

 
 
 
 
 
 
 
 
Ethanol segment
 
 
 
 
 
 
 
Ethanol operating income
$
43

 
$
31

 
$
88

 
$
53

Exclude:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below)
(109
)
 
(107
)
 
(220
)
 
(216
)
Depreciation and amortization expense
(20
)
 
(19
)
 
(38
)
 
(46
)
Ethanol margin
$
172

 
$
157

 
$
346

 
$
315


See Notes to Earnings Release Tables on Table Page 15.



Table Page 5



VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP (g)
(millions of dollars)
(unaudited)

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2018
 
2017
 
2018
 
2017
Reconciliation of refining segment operating income to
refining margin (by region), and reconciliation of
refining segment operating income to adjusted refining
segment operating income (by region) (h)
 
 
 
 
 
 
 
U.S. Gulf Coast region
 
 
 
 
 
 
 
Refining operating income
$
726

 
$
475

 
$
1,265

 
$
843

Exclude:
 
 
 
 
 
 
 
Blender’s tax credit (a)

 

 
167

 

Operating expenses (excluding depreciation and
amortization expense reflected below) (b)
(549
)
 
(574
)
 
(1,108
)
 
(1,151
)
Depreciation and amortization expense
(284
)
 
(279
)
 
(552
)
 
(558
)
Other operating expenses (c)
(20
)
 

 
(30
)
 

Refining margin
$
1,579

 
$
1,328

 
$
2,788

 
$
2,552

 
 
 
 
 
 
 
 
Refining operating income
$
726

 
$
475

 
$
1,265

 
$
843

Exclude:
 
 
 
 
 
 
 
Blender’s tax credit (a)

 

 
167

 

Other operating expenses (c)
(20
)
 

 
(30
)
 

Adjusted refining operating income
$
746

 
$
475

 
$
1,128

 
$
843

 
 
 
 
 
 
 
 
U.S. Mid-Continent region
 
 
 
 
 
 
 
Refining operating income
$
387

 
$
176

 
$
590

 
$
282

Exclude:
 
 
 
 
 
 
 
Blender’s tax credit (a)

 

 
2

 

Operating expenses (excluding depreciation and
amortization expense reflected below) (b)
(147
)
 
(149
)
 
(298
)
 
(296
)
Depreciation and amortization expense
(67
)
 
(66
)
 
(133
)
 
(132
)
Refining margin
$
601

 
$
391

 
$
1,019

 
$
710

 
 
 
 
 
 
 
 
Refining operating income
$
387

 
$
176

 
$
590

 
$
282

Exclude: blender’s tax credit (a)

 

 
2

 

Adjusted refining operating income
$
387

 
$
176

 
$
588

 
$
282


See Notes to Earnings Release Tables on Table Page 15.


Table Page 6



VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP (g)
(millions of dollars)
(unaudited)

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2018
 
2017
 
2018
 
2017
Reconciliation of refining segment operating income to
refining margin (by region), and reconciliation of
refining segment operating income to adjusted refining
segment operating income (by region) (h) (continued)
 
 
 
 
 
 
 
North Atlantic region
 
 
 
 
 
 
 
Refining operating income
$
137

 
$
261

 
$
298

 
$
458

Exclude:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below)
(138
)
 
(109
)
 
(283
)
 
(241
)
Depreciation and amortization expense
(62
)
 
(49
)
 
(115
)
 
(97
)
Refining margin
$
337

 
$
419

 
$
696

 
$
796

 
 
 
 
 
 
 
 
U.S. West Coast region
 
 
 
 
 
 
 
Refining operating income
$
137

 
$
33

 
$
156

 
$
2

Exclude:
 
 
 
 
 
 
 
Blender’s tax credit (a)

 

 
1

 

Operating expenses (excluding depreciation and
amortization expense reflected below) (b)
(135
)
 
(147
)
 
(277
)
 
(282
)
Depreciation and amortization expense
(58
)
 
(60
)
 
(119
)
 
(116
)
Other operating expenses (c)
(1
)
 

 
(1
)
 

Refining margin
$
331

 
$
240

 
$
552

 
$
400

 
 
 
 
 
 
 
 
Refining operating income
$
137

 
$
33

 
$
156

 
$
2

Exclude:
 
 
 
 
 
 
 
Blender’s tax credit (a)

 

 
1

 

Other operating expenses (c)
(1
)
 

 
(1
)
 

Adjusted refining operating income
$
138

 
$
33

 
$
156

 
$
2


See Notes to Earnings Release Tables on Table Page 15.


Table Page 7



VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
REFINING SEGMENT OPERATING HIGHLIGHTS
(millions of dollars, except per barrel amounts)
(unaudited)

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2018
 
2017
 
2018
 
2017
Throughput volumes (thousand barrels per day)
 
 
 
 
 
 
 
Feedstocks:
 
 
 
 
 
 
 
Heavy sour crude oil
482

 
517

 
482

 
483

Medium/light sour crude oil
434

 
508

 
421

 
482

Sweet crude oil
1,303

 
1,308

 
1,323

 
1,277

Residuals
231

 
228

 
226

 
231

Other feedstocks
121

 
142

 
121

 
145

Total feedstocks
2,571

 
2,703

 
2,573

 
2,618

Blendstocks and other
327

 
316

 
342

 
311

Total throughput volumes
2,898

 
3,019

 
2,915

 
2,929

 
 
 
 
 
 
 
 
Yields (thousand barrels per day)
 
 
 
 
 
 
 
Gasolines and blendstocks
1,407

 
1,458

 
1,404

 
1,409

Distillates
1,096

 
1,167

 
1,102

 
1,129

Other products (i)
434

 
434

 
446

 
429

Total yields
2,937

 
3,059

 
2,952

 
2,967

 
 
 
 
 
 
 
 
Operating statistics (g) (j)
 
 
 
 
 
 
 
Refining margin (from Table Page 5)
$
2,848

 
$
2,378

 
$
5,055

 
$
4,458

Adjusted refining operating income (from Table Page 5)
$
1,408

 
$
945

 
$
2,170

 
$
1,585

Throughput volumes (thousand barrels per day)
2,898

 
3,019

 
2,915

 
2,929

 
 
 
 
 
 
 
 
Refining margin per barrel of throughput
$
10.80

 
$
8.66

 
$
9.58

 
$
8.41

Less:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput (b)
3.67

 
3.56

 
3.73

 
3.72

Depreciation and amortization expense per barrel of
throughput
1.79

 
1.66

 
1.74

 
1.70

Adjusted refining operating income per barrel of throughput
$
5.34

 
$
3.44

 
$
4.11

 
$
2.99


See Notes to Earnings Release Tables on Table Page 15.


Table Page 8



VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
ETHANOL SEGMENT OPERATING HIGHLIGHTS
(millions of dollars, except per gallon amounts)
(unaudited)

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2018
 
2017
 
2018
 
2017
Operating statistics (g) (j)
 
 
 
 
 
 
 
Ethanol margin (from Table Page 5)
$
172

 
$
157

 
$
346

 
$
315

Ethanol operating income (from Table Page 5)
$
43

 
$
31

 
$
88

 
$
53

Production volumes (thousand gallons per day)
4,002

 
3,775

 
4,057

 
3,908

 
 
 
 
 
 
 
 
Ethanol margin per gallon of production
$
0.47

 
$
0.46

 
$
0.47

 
$
0.45

Less:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below) per gallon
of production
0.30

 
0.31

 
0.30

 
0.31

Depreciation and amortization expense per gallon of
production
0.05

 
0.06

 
0.05

 
0.06

Ethanol operating income per gallon of production
$
0.12

 
$
0.09

 
$
0.12

 
$
0.08


See Notes to Earnings Release Tables on Table Page 15.


Table Page 9



VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
VLP SEGMENT OPERATING HIGHLIGHTS
(millions of dollars, except per barrel amounts)
(unaudited)


 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2018
 
2017
 
2018
 
2017
Operating statistics (j)
 
 
 
 
 
 
 
Pipeline transportation revenue
$
31

 
$
25

 
$
62

 
$
48

Terminaling revenue
103

 
84

 
202

 
167

Storage and other revenue
1

 
1

 
3

 
1

Total VLP revenues
$
135

 
$
110

 
$
267

 
$
216

 
 
 
 
 
 
 
 
Pipeline transportation throughput (thousand barrels per day)
1,033

 
1,003

 
1,047

 
983

Pipeline transportation revenue per barrel of throughput
$
0.32

 
$
0.27

 
$
0.33

 
$
0.27

 
 
 
 
 
 
 
 
Terminaling throughput (thousand barrels per day)
3,562

 
2,853

 
3,479

 
2,794

Terminaling revenue per barrel of throughput
$
0.32

 
$
0.33

 
$
0.32

 
$
0.33


See Notes to Earnings Release Tables on Table Page 15.


Table Page 10



VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION
(millions of dollars, except per barrel amounts)
(unaudited)

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2018
 
2017
 
2018
 
2017
Operating statistics by region (h)
 
 
 
 
 
 
 
U.S. Gulf Coast region (g) (j)
 
 
 
 
 
 
 
Refining margin (from Table Page 6)
$
1,579

 
$
1,328

 
$
2,788

 
$
2,552

Adjusted refining operating income (from Table Page 6)
$
746

 
$
475

 
$
1,128

 
$
843

Throughput volumes (thousand barrels per day)
1,729

 
1,781

 
1,728

 
1,742

 
 
 
 
 
 
 
 
Refining margin per barrel of throughput
$
10.04

 
$
8.20

 
$
8.92

 
$
8.09

Less:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput (b)
3.49

 
3.54

 
3.55

 
3.66

Depreciation and amortization expense per barrel of
throughput
1.81

 
1.73

 
1.76

 
1.76

Adjusted refining operating income per barrel of throughput
$
4.74

 
$
2.93

 
$
3.61

 
$
2.67

 
 
 
 
 
 
 
 
U.S. Mid-Continent region (g) (j)
 
 
 
 
 
 
 
Refining margin (from Table Page 6)
$
601

 
$
391

 
$
1,019

 
$
710

Adjusted refining operating income (from Table Page 6)
$
387

 
$
176

 
$
588

 
$
282

Throughput volumes (thousand barrels per day)
473

 
481

 
477

 
463

 
 
 
 
 
 
 
 
Refining margin per barrel of throughput
$
13.95

 
$
8.91

 
$
11.80

 
$
8.47

Less:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput (b)
3.41

 
3.38

 
3.45

 
3.52

Depreciation and amortization expense per barrel of
throughput
1.56

 
1.50

 
1.54

 
1.58

Adjusted refining operating income per barrel of throughput
$
8.98

 
$
4.03

 
$
6.81

 
$
3.37


See Notes to Earnings Release Tables on Table Page 15.


Table Page 11



VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION
(millions of dollars, except per barrel amounts)
(unaudited)

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2018
 
2017
 
2018
 
2017
Operating statistics by region (h) (continued)
 
 
 
 
 
 
 
North Atlantic region (g) (j)
 
 
 
 
 
 
 
Refining margin (from Table Page 7)
$
337

 
$
419

 
$
696

 
$
796

Refining operating income (from Table Page 7)
$
137

 
$
261

 
$
298

 
$
458

Throughput volumes (thousand barrels per day)
398

 
491

 
428

 
490

 
 
 
 
 
 
 
 
Refining margin per barrel of throughput
$
9.33

 
$
9.39

 
$
8.99

 
$
8.97

Less:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput
3.81

 
2.44

 
3.66

 
2.71

Depreciation and amortization expense per barrel of
throughput
1.70

 
1.09

 
1.47

 
1.10

Refining operating income per barrel of throughput
$
3.82

 
$
5.86

 
$
3.86

 
$
5.16

 
 
 
 
 
 
 
 
U.S. West Coast region (g) (j)
 
 
 
 
 
 
 
Refining margin (from Table Page 7)
$
331

 
$
240

 
$
552

 
$
400

Adjusted refining operating income (from Table Page 7)
$
138

 
$
33

 
$
156

 
$
2

Throughput volumes (thousand barrels per day)
298

 
266

 
282

 
234

 
 
 
 
 
 
 
 
Refining margin per barrel of throughput
$
12.20

 
$
9.93

 
$
10.80

 
$
9.47

Less:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput (b)
4.96

 
6.09

 
5.42

 
6.68

Depreciation and amortization expense per barrel of
throughput
2.17

 
2.47

 
2.33

 
2.73

Adjusted refining operating income per barrel of throughput
$
5.07

 
$
1.37

 
$
3.05

 
$
0.06


See Notes to Earnings Release Tables on Table Page 15.


Table Page 12



VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS
(unaudited)

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2018
 
2017
 
2018
 
2017
Feedstocks (dollars per barrel)
 
 
 
 
 
 
 
Brent crude oil
$
74.93

 
$
50.91

 
$
71.05

 
$
52.78

Brent less West Texas Intermediate (WTI) crude oil
6.93

 
2.67

 
5.61

 
2.74

Brent less Alaska North Slope (ANS) crude oil
0.83

 
0.22

 
0.52

 
0.52

Brent less Louisiana Light Sweet (LLS) crude oil
1.93

 
0.60

 
1.66

 
0.86

Brent less Argus Sour Crude Index (ASCI) crude oil
5.63

 
3.94

 
5.26

 
4.50

Brent less Maya crude oil
12.90

 
7.03

 
11.18

 
8.48

LLS crude oil
73.00

 
50.31

 
69.39

 
51.92

LLS less ASCI crude oil
3.70

 
3.34

 
3.60

 
3.64

LLS less Maya crude oil
10.97

 
6.43

 
9.52

 
7.62

WTI crude oil
68.00

 
48.24

 
65.44

 
50.04

 
 
 
 
 
 
 
 
Natural gas (dollars per million British Thermal Units)
2.89

 
3.14

 
3.04

 
3.05

 
 
 
 
 
 
 
 
Products (dollars per barrel, unless otherwise noted)
 
 
 
 
 
 
 
U.S. Gulf Coast:
 
 
 
 
 
 
 
CBOB gasoline less Brent
7.47

 
10.38

 
7.38

 
9.58

Ultra-low-sulfur diesel less Brent
13.46

 
10.99

 
13.62

 
11.06

Propylene less Brent
(6.54
)
 
0.04

 
(6.68
)
 
0.63

CBOB gasoline less LLS
9.40

 
10.98

 
9.04

 
10.44

Ultra-low-sulfur diesel less LLS
15.39

 
11.59

 
15.28

 
11.92

Propylene less LLS
(4.61
)
 
0.64

 
(5.02
)
 
1.49

U.S. Mid-Continent:

 

 
 
 
 
CBOB gasoline less WTI
16.05

 
14.16

 
14.76

 
13.44

Ultra-low-sulfur diesel less WTI
22.02

 
14.60

 
20.93

 
14.30

North Atlantic:

 

 
 
 
 
CBOB gasoline less Brent
10.37

 
12.57

 
9.63

 
10.63

Ultra-low-sulfur diesel less Brent
15.25

 
12.21

 
15.60

 
12.14

U.S. West Coast:
 
 
 
 
 
 
 
CARBOB 87 gasoline less ANS
18.36

 
23.01

 
15.82

 
19.89

CARB diesel less ANS
18.70

 
14.32

 
17.99

 
14.58

CARBOB 87 gasoline less WTI
24.46

 
25.46

 
20.91

 
22.11

CARB diesel less WTI
24.80

 
16.77

 
23.08

 
16.80

New York Harbor corn crush (dollars per gallon)
0.17

 
0.26

 
0.18

 
0.26


See Notes to Earnings Release Tables on Table Page 15.


Table Page 13



VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
OTHER FINANCIAL DATA
(millions of dollars)
(unaudited)

 
 
 
 
 
June 30,
 
December 31,
 
 
 
 
 
2018
 
2017
Balance sheet data
 
 
 
 
 
 
 
Current assets
 
 
 
 
$
18,948

 
$
19,312

Cash and cash equivalents included in current assets
 
4,451

 
5,850

Inventories included in current assets
 
 
 
 
6,420

 
6,384

Current liabilities
 
 
 
 
11,341

 
11,071

Current portion of debt and capital lease obligations included
in current liabilities
 
183

 
122

Debt and capital lease obligations, less current portion
 
 
 
8,876

 
8,750

Total debt and capital lease obligations
 
 
 
 
9,059

 
8,872

Valero Energy Corporation stockholders’ equity
 
 
 
21,769

 
21,991

 
 
 
 
 
 
 
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2018
 
2017
 
2018
 
2017
Net cash provided by operating activities and adjusted
net cash provided by operating activities (g)
 
 
 
 
 
 
 
Net cash provided by operating activities
$
2,059

 
$
1,797

 
$
2,197

 
$
2,785

Exclude:
 
 
 
 
 
 
 
Changes in current assets and current liabilities
581

 
708

 
(445
)
 
859

Adjusted net cash provided by operating activities
$
1,478

 
$
1,089

 
$
2,642

 
$
1,926



See Notes to Earnings Release Tables on Table Page 15.


Table Page 14





VALERO ENERGY CORPORATION
NOTES TO EARNINGS RELEASE TABLES



(a)
Cost of materials and other for the six months ended June 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 legislation authorizing the credit was passed and signed into law in that month. The $170 million pre-tax benefit is included in the refining segment and includes $80 million attributable to noncontrolling interest and $90 million attributable to Valero Energy Corporation stockholders.

(b)
Effective January 1, 2018, we adopted the provisions of Accounting Standards Update 2017-07, “Compensation—Retirement Benefits (Topic 715),” which resulted in the reclassification of the non-service component of net periodic pension cost and net periodic postretirement benefit cost from operating expenses (excluding depreciation and amortization expense) and general and administrative expenses (excluding depreciation and amortization expense) to “other income (expense), net.” This resulted in an increase of $14 million and $21 million in operating expenses (excluding depreciation and amortization expense) and a decrease of $3 million and $1 million in general and administrative expenses (excluding depreciation and amortization expense) for the three and six months ended June 30, 2017, respectively.

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