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Exhibit 99.01

Valero Energy Reports Third Quarter 2018 Results

Reported net income attributable to Valero stockholders of $856 million, or $2.01 per share.
Invested $604 million of capital in the third quarter.
Approved the construction of a new coker at the Port Arthur refinery.
Announced merger with Valero Energy Partners LP (NYSE: VLP, the “Partnership”).
Returned $775 million in cash to stockholders through dividends and stock buybacks.

SAN ANTONIO, October 25, 2018 – Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income attributable to Valero stockholders of $856 million, or $2.01 per share, for the third quarter of 2018 compared to $841 million, or $1.91 per share, for the third quarter of 2017.

“We operated well in the third quarter and delivered solid financial performance,” said Joe Gorder, Valero Chairman, President and Chief Executive Officer. “We continued to capture benefits from our investments in crude oil logistics and light crude processing. We also continued to deliver on our commitments to grow the earnings capability of the company through acquisitions and growth investments while delivering returns to our stockholders.”

Refining
The refining segment reported $1.3 billion of operating income for the third quarter of 2018 compared to $1.4 billion for the third quarter of 2017. The $90 million decrease is mainly due to lower gasoline and secondary products margins.

Refinery throughput capacity utilization was 99 percent, with throughput volumes averaging 3.1 million barrels per day in the third quarter of 2018. This compares to 2.9 million barrels per day in the third quarter of 2017, during which five of our refineries were impacted by Hurricane Harvey. The company exported a total of 421,000 barrels per day of gasoline and distillate during the third quarter of 2018.



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Biofuel blending costs were $94 million in the third quarter of 2018, which is $136 million less than in the third quarter of 2017, mainly due to lower Renewable Identification Number (RIN) prices.

Ethanol
The ethanol segment reported $21 million of operating income for the third quarter of 2018 compared to $82 million for the third quarter of 2017. The decrease in operating income is attributed primarily to lower ethanol prices. Ethanol production volumes of 4 million gallons per day were in line with the third quarter of 2017.

VLP
The VLP segment, which is composed of Valero Energy Partners LP, the company’s majority-owned midstream master limited partnership, reported $90 million of operating income for the third quarter of 2018 compared to $69 million for the third quarter of 2017. The $21 million increase 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 $209 million in the third quarter of 2018 compared to $225 million in the third quarter of 2017. The effective tax rate was 24 percent for the third quarter of 2018.

Investing and Financing Activities
Capital investments in the third quarter of 2018 totaled $604 million. Included in this amount is $435 million associated with sustaining the business, such as turnaround, catalyst, and regulatory compliance expenditures, with the balance for growth.

Valero returned $775 million to stockholders in the third quarter, of which $341 million was paid as dividends and the balance was used to purchase 3.8 million shares of its common stock.



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Net cash provided by operating activities in the third quarter was $496 million. Included in this amount is a $729 million use of cash to fund working capital. Excluding working capital, adjusted net cash provided by operating activities was $1.2 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 third quarter of 2018 with $9.1 billion of total debt and $3.6 billion of cash and cash equivalents. The debt to capital ratio, net of $2.0 billion in cash, was 24 percent.

Strategic Update
The expansion of the Diamond Green Diesel plant to 16,500 barrels per day of renewable diesel production capacity was completed in August 2018 and is running well. Development continues on a project to further expand the facility’s production capacity to a total of 44,000 barrels per day, with a final investment decision expected before year-end.

In September, Valero’s Board of Directors approved a project to construct a 55,000 barrel per day coker and a sulfur recovery unit at the Port Arthur refinery for a total cost of $975 million. When completed in 2022, the refinery is expected to benefit from improved turnaround efficiency, reduced feedstock costs, and increased crude oil throughput capacity.

“We’re excited that the coker project is moving forward,” commented Gorder. “The additional coker capacity will create two independent process trains and improve the Port Arthur refinery’s turnaround efficiency.”

In October, the company entered into an agreement to acquire three ethanol plants from Green Plains Renewable Energy with a total nameplate capacity of 280 million gallons per year at a cost of $300 million plus working capital estimated at $28 million. The plants are strategically located in the U.S. corn belt and utilize the same process technologies as Valero’s existing facilities, enabling


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the capture of commercial and operational synergies and the transfer of best practices. This transaction is expected to close in the fourth quarter of 2018.

Also in October, Valero and the Partnership announced the execution of a merger agreement under which Valero plans to acquire all of the Partnership’s outstanding publicly held common units at a price of $42.25 per common unit in cash. This transaction is expected to be immediately accretive and to close as soon as possible following the satisfaction of certain customary closing conditions.

Construction continues on schedule for the Houston and St. Charles alkylation units, the Central Texas pipelines and terminals, the Pasadena products terminal, and the Pembroke cogeneration plant, with startups expected in 2019 and 2020.

Capital investment plans of $2.7 billion for 2018, of which $1.0 billion is for growth projects and $1.7 billion is for sustaining the business, remain unchanged.

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 the Partnership, 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.


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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,” “will,” “plans,” and other similar expressions identify forward-looking statements. The forward-looking statements contained herein include statements related to the proposed merger with the Partnership as described above. 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, other factors and, with respect to the proposed merger, include, but are not limited to, failure of closing conditions, delays in the consummation of the proposed merger and changes to business plans, as circumstances warrant. These factors may influence Valero’s and/or the Partnership’s ability to consummate the proposed merger on the expected time frame or at all. 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.

Important Information About the Proposed Merger
Valero has filed with the SEC a Current Report on Form 8-K, which contains, among other things, a copy of the merger agreement and the support agreement for the proposed merger with the Partnership. VLO’s stockholders may obtain, without charge, a copy of VLO’s Form 8-K


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announcing the execution of the merger agreement and the support agreement, and other relevant documents filed with the SEC from the SEC’s website at www.sec.gov. VLO’s stockholders will also be able to obtain, without charge, a copy of VLO’s Form 8-K announcing the execution of the merger agreement and the support agreement, and other documents relating to the proposed merger (when available) at www.valero.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, adjusted VLP operating income, 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, we disclose the reasons why we believe our use of these non-GAAP financial measures provides useful information.


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

 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2018
 
2017
 
2018
 
2017
Statement of income data
 
 
 
 
 
 
 
Revenues
$
30,849

 
$
23,562

 
$
88,303

 
$
67,588

Cost of sales:
 
 
 
 
 
 
 
Cost of materials and other (a)
27,701

 
20,329

 
79,317

 
59,366

Operating expenses (excluding depreciation and
amortization expense reflected below) (b)
1,193

 
1,135

 
3,439

 
3,370

Depreciation and amortization expense
504

 
484

 
1,499

 
1,457

Total cost of sales
29,398

 
21,948

 
84,255

 
64,193

Other operating expenses (c)
10

 
44

 
41

 
44

General and administrative expenses (excluding
depreciation and amortization expense reflected below) (b) (d)
209

 
225

 
695

 
592

Depreciation and amortization expense
13

 
13

 
39

 
39

Operating income
1,219

 
1,332

 
3,273

 
2,720

Other income, net (b) (e)
42

 
23

 
88

 
76

Interest and debt expense, net of capitalized interest
(111
)
 
(114
)
 
(356
)
 
(354
)
Income before income tax expense
1,150

 
1,241

 
3,005

 
2,442

Income tax expense (f)
276

 
378

 
674

 
686

Net income
874

 
863

 
2,331

 
1,756

Less: Net income attributable to noncontrolling interests (a)
18

 
22

 
161

 
62

Net income attributable to Valero Energy Corporation
stockholders
$
856

 
$
841

 
$
2,170

 
$
1,694

 
 
 
 
 
 
 
 
Earnings per common share
$
2.01

 
$
1.91

 
$
5.05

 
$
3.80

Weighted-average common shares outstanding (in millions)
425

 
439

 
428

 
444

 
 
 
 
 
 
 
 
Earnings per common share – assuming dilution
$
2.01

 
$
1.91

 
$
5.05

 
$
3.80

Weighted-average common shares outstanding –
assuming dilution (in millions)
427

 
441

 
430

 
446


See Notes to Earnings Release Tables beginning 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 September 30, 2018
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
29,984

 
$
864

 
$

 
$
1

 
$
30,849

Intersegment revenues
5

 
68

 
140

 
(213
)
 

Total revenues
29,989

 
932

 
140

 
(212
)
 
30,849

Cost of sales:
 
 
 
 
 
 
 
 
 
Cost of materials and other
27,137

 
776

 

 
(212
)
 
27,701

Operating expenses (excluding depreciation and
amortization expense reflected below)
1,047

 
116

 
31

 
(1
)
 
1,193

Depreciation and amortization expense
466

 
19

 
19

 

 
504

Total cost of sales
28,650

 
911

 
50

 
(213
)
 
29,398

Other operating expenses (c)
10

 

 

 

 
10

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

 

 

 
209

 
209

Depreciation and amortization expense

 

 

 
13

 
13

Operating income by segment
$
1,329

 
$
21

 
$
90

 
$
(221
)
 
$
1,219

 
 
 
 
 
 
 
 
 
 
Three months ended September 30, 2017
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
22,728

 
$
834

 
$

 
$

 
$
23,562

Intersegment revenues
1

 
48

 
110

 
(159
)
 

Total 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 and
amortization expense reflected below) (b)
996

 
114

 
26

 
(1
)
 
1,135

Depreciation and amortization expense
455

 
17

 
12

 

 
484

Total cost of sales
21,269

 
800

 
38

 
(159
)
 
21,948

Other operating expenses (c)
41

 

 
3

 

 
44

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

 

 

 
225

 
225

Depreciation and amortization expense

 

 

 
13

 
13

Operating income by segment
$
1,419

 
$
82

 
$
69

 
$
(238
)
 
$
1,332


See Operating Highlights by Segment beginning on Table Page 8.
See Notes to Earnings Release Tables beginning 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
Nine months ended September 30, 2018
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
85,675

 
$
2,625

 
$

 
$
3

 
$
88,303

Intersegment revenues
10

 
156

 
407

 
(573
)
 

Total revenues
85,685

 
2,781

 
407

 
(570
)
 
88,303

Cost of sales:
 
 
 
 
 
 
 
 
 
Cost of materials and other (a)
77,608

 
2,279

 

 
(570
)
 
79,317

Operating expenses (excluding depreciation and
amortization expense reflected below)
3,013

 
336

 
93

 
(3
)
 
3,439

Depreciation and amortization expense
1,385

 
57

 
57

 

 
1,499

Total cost of sales
82,006

 
2,672

 
150

 
(573
)
 
84,255

Other operating expenses (c)
41

 

 

 

 
41

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

 

 

 
695

 
695

Depreciation and amortization expense

 

 

 
39

 
39

Operating income by segment
$
3,638

 
$
109

 
$
257

 
$
(731
)
 
$
3,273

 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2017
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
65,030

 
$
2,558

 
$

 
$

 
$
67,588

Intersegment revenues
1

 
136

 
326

 
(463
)
 

Total 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 and
amortization expense reflected below) (b)
2,966

 
330

 
75

 
(1
)
 
3,370

Depreciation and amortization expense
1,358

 
63

 
36

 

 
1,457

Total cost of sales
61,986

 
2,559

 
111

 
(463
)
 
64,193

Other operating expenses (c)
41

 

 
3

 

 
44

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

 

 

 
592

 
592

Depreciation and amortization expense

 

 

 
39

 
39

Operating income by segment
$
3,004

 
$
135

 
$
212

 
$
(631
)
 
$
2,720


See Operating Highlights by Segment beginning on Table Page 8.
See Notes to Earnings Release Tables beginning 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
September 30,
 
Nine Months Ended
September 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
$
856

 
$
841

 
$
2,170

 
$
1,694

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

 

 
(14
)
 

Income tax benefit related to Texas City Refinery
fire expenses

 

 
3

 

Texas City Refinery fire expenses, net of taxes

 

 
(11
)
 

Environmental reserve adjustments (d)

 

 
(108
)
 

Income tax benefit related to the environmental reserve
adjustments

 

 
24

 

Environmental reserve adjustments, net of taxes

 

 
(84
)
 

Loss on early redemption of debt (e)

 

 
(38
)
 

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

 

 
9

 

Loss on early redemption of debt, net of taxes

 

 
(29
)
 

Total adjustments

 

 
(45
)
 

Adjusted net income attributable to
Valero Energy Corporation stockholders
$
856

 
$
841

 
$
2,215

 
$
1,694

 
 
 
 
 
 
 
 
Reconciliation of earnings per common share – assuming
dilution to adjusted earnings per common share –
assuming dilution
 
 
 
 
 
 
 
Earnings per common share – assuming dilution
$
2.01

 
$
1.91

 
$
5.05

 
$
3.80

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

 

 
0.18

 

Texas City Refinery fire expenses

 

 
(0.03
)
 

Environmental reserve adjustments (d)

 

 
(0.19
)
 

Loss on early redemption of debt (e)

 

 
(0.07
)
 

Total adjustments

 

 
(0.11
)
 

Adjusted earnings per common share – assuming dilution
$
2.01

 
$
1.91

 
$
5.16

 
$
3.80


See Notes to Earnings Release Tables beginning 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
September 30,
 
Nine Months Ended
September 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
$
1,329

 
$
1,419

 
$
3,638

 
$
3,004

Exclude:
 
 
 
 
 
 
 
Blender’s tax credit (a)

 

 
170

 

Operating expenses (excluding depreciation and
amortization expense reflected below) (b)
(1,047
)
 
(996
)
 
(3,013
)
 
(2,966
)
Depreciation and amortization expense
(466
)
 
(455
)
 
(1,385
)
 
(1,358
)
Other operating expenses (c)
(10
)
 
(41
)
 
(41
)
 
(41
)
Refining margin
$
2,852

 
$
2,911

 
$
7,907

 
$
7,369

 
 
 
 
 
 
 
 
Refining operating income
$
1,329

 
$
1,419

 
$
3,638

 
$
3,004

Exclude:
 
 
 
 
 
 
 
Blender’s tax credit (a)

 

 
170

 

Other operating expenses (c)
(10
)
 
(41
)
 
(41
)
 
(41
)
Adjusted refining operating income
$
1,339

 
$
1,460

 
$
3,509

 
$
3,045

 
 
 
 
 
 
 
 
Ethanol segment
 
 
 
 
 
 
 
Ethanol operating income
$
21

 
$
82

 
$
109

 
$
135

Exclude:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below)
(116
)
 
(114
)
 
(336
)
 
(330
)
Depreciation and amortization expense
(19
)
 
(17
)
 
(57
)
 
(63
)
Ethanol margin
$
156

 
$
213

 
$
502

 
$
528

 
 
 
 
 
 
 
 
VLP segment
 
 
 
 
 
 
 
VLP operating income
$
90

 
$
69

 
$
257

 
$
212

Exclude: Other operating expenses (c)

 
(3
)
 

 
(3
)
Adjusted VLP operating income
$
90

 
$
72

 
$
257

 
$
215

 
 
 
 
 
 
 
 

See Notes to Earnings Release Tables beginning 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
September 30,
 
Nine Months Ended
September 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
$
591

 
$
602

 
$
1,856

 
$
1,445

Exclude:
 
 
 
 
 
 
 
Blender’s tax credit (a)

 

 
167

 

Operating expenses (excluding depreciation and
amortization expense reflected below) (b)
(579
)
 
(564
)
 
(1,687
)
 
(1,715
)
Depreciation and amortization expense
(287
)
 
(281
)
 
(839
)
 
(839
)
Other operating expenses (c)
(9
)
 
(41
)
 
(39
)
 
(41
)
Refining margin
$
1,466

 
$
1,488

 
$
4,254

 
$
4,040

 
 
 
 
 
 
 
 
Refining operating income
$
591

 
$
602

 
$
1,856

 
$
1,445

Exclude:
 
 
 
 
 
 
 
Blender’s tax credit (a)

 

 
167

 

Other operating expenses (c)
(9
)
 
(41
)
 
(39
)
 
(41
)
Adjusted refining operating income
$
600

 
$
643

 
$
1,728

 
$
1,486

 
 
 
 
 
 
 
 
U.S. Mid-Continent region
 
 
 
 
 
 
 
Refining operating income
$
418

 
$
359

 
$
1,008

 
$
641

Exclude:
 
 
 
 
 
 
 
Blender’s tax credit (a)

 

 
2

 

Operating expenses (excluding depreciation and
amortization expense reflected below) (b)
(149
)
 
(146
)
 
(447
)
 
(442
)
Depreciation and amortization expense
(68
)
 
(64
)
 
(201
)
 
(196
)
Refining margin
$
635

 
$
569

 
$
1,654

 
$
1,279

 
 
 
 
 
 
 
 
Refining operating income
$
418

 
$
359

 
$
1,008

 
$
641

Exclude: blender’s tax credit (a)

 

 
2

 

Adjusted refining operating income
$
418

 
$
359

 
$
1,006

 
$
641


See Notes to Earnings Release Tables beginning 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
September 30,
 
Nine Months Ended
September 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
$
322

 
$
327

 
$
620

 
$
785

Exclude:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below) (b)
(149
)
 
(138
)
 
(432
)
 
(379
)
Depreciation and amortization expense
(52
)
 
(53
)
 
(167
)
 
(150
)
Refining margin
$
523

 
$
518

 
$
1,219

 
$
1,314

 
 
 
 
 
 
 
 
U.S. West Coast region
 
 
 
 
 
 
 
Refining operating income (loss)
$
(2
)
 
$
131

 
$
154

 
$
133

Exclude:
 
 
 
 
 
 
 
Blender’s tax credit (a)

 

 
1

 

Operating expenses (excluding depreciation and
amortization expense reflected below) (b)
(170
)
 
(148
)
 
(447
)
 
(430
)
Depreciation and amortization expense
(59
)
 
(57
)
 
(178
)
 
(173
)
Other operating expenses (c)
(1
)
 

 
(2
)
 

Refining margin
$
228

 
$
336

 
$
780

 
$
736

 
 
 
 
 
 
 
 
Refining operating income (loss)
$
(2
)
 
$
131

 
$
154

 
$
133

Exclude:
 
 
 
 
 
 
 
Blender’s tax credit (a)

 

 
1

 

Other operating expenses (c)
(1
)
 

 
(2
)
 

Adjusted refining operating income (loss)
$
(1
)
 
$
131

 
$
155

 
$
133


See Notes to Earnings Release Tables beginning 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
September 30,
 
Nine Months Ended
September 30,
 
2018
 
2017
 
2018
 
2017
Throughput volumes (thousand barrels per day)
 
 
 
 
 
 
 
Feedstocks:
 
 
 
 
 
 
 
Heavy sour crude oil
466

 
446

 
476

 
470

Medium/light sour crude oil
424

 
420

 
422

 
461

Sweet crude oil
1,527

 
1,348

 
1,392

 
1,301

Residuals
244

 
215

 
233

 
226

Other feedstocks
144

 
147

 
128

 
146

Total feedstocks
2,805

 
2,576

 
2,651

 
2,604

Blendstocks and other
295

 
317

 
326

 
313

Total throughput volumes
3,100

 
2,893

 
2,977

 
2,917

 
 
 
 
 
 
 
 
Yields (thousand barrels per day)
 
 
 
 
 
 
 
Gasolines and blendstocks
1,478

 
1,401

 
1,429

 
1,406

Distillates
1,201

 
1,108

 
1,135

 
1,122

Other products (i)
460

 
420

 
451

 
426

Total yields
3,139

 
2,929

 
3,015

 
2,954

 
 
 
 
 
 
 
 
Operating statistics (g) (j)
 
 
 
 
 
 
 
Refining margin (from Table Page 5)
$
2,852

 
$
2,911

 
$
7,907

 
$
7,369

Adjusted refining operating income (from Table Page 5)
$
1,339

 
$
1,460

 
$
3,509

 
$
3,045

Throughput volumes (thousand barrels per day)
3,100

 
2,893

 
2,977

 
2,917

 
 
 
 
 
 
 
 
Refining margin per barrel of throughput
$
10.00

 
$
10.94

 
$
9.73

 
$
9.26

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

 
3.75

 
3.71

 
3.73

Depreciation and amortization expense per barrel of
throughput
1.64

 
1.71

 
1.70

 
1.71

Adjusted refining operating income per barrel of throughput
$
4.69

 
$
5.48

 
$
4.32

 
$
3.82


See Notes to Earnings Release Tables beginning 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
September 30,
 
Nine Months Ended
September 30,
 
2018
 
2017
 
2018
 
2017
Operating statistics (g) (j)
 
 
 
 
 
 
 
Ethanol margin (from Table Page 5)
$
156

 
$
213

 
$
502

 
$
528

Ethanol operating income (from Table Page 5)
$
21

 
$
82

 
$
109

 
$
135

Production volumes (thousand gallons per day)
4,069

 
4,032

 
4,061

 
3,949

 
 
 
 
 
 
 
 
Ethanol margin per gallon of production
$
0.42

 
$
0.57

 
$
0.45

 
$
0.49

Less:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below) per gallon
of production
0.31

 
0.30

 
0.30

 
0.31

Depreciation and amortization expense per gallon of
production
0.05

 
0.05

 
0.05

 
0.05

Ethanol operating income per gallon of production
$
0.06

 
$
0.22

 
$
0.10

 
$
0.13


See Notes to Earnings Release Tables beginning 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
September 30,
 
Nine Months Ended
September 30,
 
2018
 
2017
 
2018
 
2017
Operating statistics (j)
 
 
 
 
 
 
 
Pipeline transportation revenue
$
31

 
$
23

 
$
93

 
$
71

Terminaling revenue
107

 
86

 
309

 
253

Storage and other revenue
2

 
1

 
5

 
2

Total VLP revenues
$
140

 
$
110

 
$
407

 
$
326

 
 
 
 
 
 
 
 
Pipeline transportation throughput (thousand barrels per day)
1,141

 
859

 
1,079

 
941

Pipeline transportation revenue per barrel of throughput
$
0.30

 
$
0.29

 
$
0.32

 
$
0.28

 
 
 
 
 
 
 
 
Terminaling throughput (thousand barrels per day)
3,767

 
2,694

 
3,576

 
2,760

Terminaling revenue per barrel of throughput
$
0.31

 
$
0.34

 
$
0.32

 
$
0.34


See Notes to Earnings Release Tables beginning 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
September 30,
 
Nine Months Ended
September 30,
 
2018
 
2017
 
2018
 
2017
Operating statistics by region (h)
 
 
 
 
 
 
 
U.S. Gulf Coast region (g) (j)
 
 
 
 
 
 
 
Refining margin (from Table Page 6)
$
1,466

 
$
1,488

 
$
4,254

 
$
4,040

Adjusted refining operating income (from Table Page 6)
$
600

 
$
643

 
$
1,728

 
$
1,486

Throughput volumes (thousand barrels per day)
1,834

 
1,657

 
1,764

 
1,713

 
 
 
 
 
 
 
 
Refining margin per barrel of throughput
$
8.69

 
$
9.76

 
$
8.84

 
$
8.64

Less:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput (b)
3.43

 
3.71

 
3.50

 
3.66

Depreciation and amortization expense per barrel of
throughput
1.71

 
1.84

 
1.75

 
1.80

Adjusted refining operating income per barrel of throughput
$
3.55

 
$
4.21

 
$
3.59

 
$
3.18

 
 
 
 
 
 
 
 
U.S. Mid-Continent region (g) (j)
 
 
 
 
 
 
 
Refining margin (from Table Page 6)
$
635

 
$
569

 
$
1,654

 
$
1,279

Adjusted refining operating income (from Table Page 6)
$
418

 
$
359

 
$
1,006

 
$
641

Throughput volumes (thousand barrels per day)
459

 
465

 
471

 
464

 
 
 
 
 
 
 
 
Refining margin per barrel of throughput
$
15.04

 
$
13.31

 
$
12.86

 
$
10.10

Less:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput (b)
3.53

 
3.42

 
3.47

 
3.49

Depreciation and amortization expense per barrel of
throughput
1.61

 
1.48

 
1.57

 
1.54

Adjusted refining operating income per barrel of throughput
$
9.90

 
$
8.41

 
$
7.82

 
$
5.07


See Notes to Earnings Release Tables beginning 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
September 30,
 
Nine Months Ended
September 30,
 
2018
 
2017
 
2018
 
2017
Operating statistics by region (h) (continued)
 
 
 
 
 
 
 
North Atlantic region (g) (j)
 
 
 
 
 
 
 
Refining margin (from Table Page 7)
$
523

 
$
518

 
$
1,219

 
$
1,314

Refining operating income (from Table Page 7)
$
322

 
$
327

 
$
620

 
$
785

Throughput volumes (thousand barrels per day)
509

 
489

 
455

 
490

 
 
 
 
 
 
 
 
Refining margin per barrel of throughput
$
11.17

 
$
11.51

 
$
9.81

 
$
9.83

Less:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput (b)
3.18

 
3.06

 
3.48

 
2.84

Depreciation and amortization expense per barrel of
throughput
1.12

 
1.17

 
1.34

 
1.12

Refining operating income per barrel of throughput
$
6.87

 
$
7.28

 
$
4.99

 
$
5.87

 
 
 
 
 
 
 
 
U.S. West Coast region (g) (j)
 
 
 
 
 
 
 
Refining margin (from Table Page 7)
$
228

 
$
336

 
$
780

 
$
736

Adjusted refining operating income (loss) (from Table
Page 7)
$
(1
)
 
$
131

 
$
155

 
$
133

Throughput volumes (thousand barrels per day)
298

 
282

 
287

 
250

 
 
 
 
 
 
 
 
Refining margin per barrel of throughput
$
8.33

 
$
12.97

 
$
9.94

 
$
10.80

Less:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput (b)
6.22

 
5.72

 
5.70

 
6.32

Depreciation and amortization expense per barrel of
throughput
2.15

 
2.22

 
2.27

 
2.53

Adjusted refining operating income (loss) per barrel of
throughput
$
(0.04
)
 
$
5.03

 
$
1.97

 
$
1.95


See Notes to Earnings Release Tables beginning on Table Page 15.


Table Page 12



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

 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2018
 
2017
 
2018
 
2017
Feedstocks (dollars per barrel)
 
 
 
 
 
 
 
Brent crude oil
$
75.93

 
$
52.21

 
$
72.67

 
$
52.59

Brent less West Texas Intermediate (WTI) crude oil
6.23

 
4.05

 
5.81

 
3.18

Brent less Alaska North Slope (ANS) crude oil
0.38

 
0.02

 
0.47

 
0.35

Brent less Louisiana Light Sweet (LLS) crude oil
1.63

 
0.57

 
1.64

 
0.77

Brent less Argus Sour Crude Index (ASCI) crude oil
5.12

 
3.85

 
5.21

 
4.28

Brent less Maya crude oil
9.74

 
5.66

 
10.70

 
7.54

LLS crude oil
74.30

 
51.64

 
71.03

 
51.82

LLS less ASCI crude oil
3.49

 
3.28

 
3.57

 
3.51

LLS less Maya crude oil
8.11

 
5.09

 
9.06

 
6.77

WTI crude oil
69.70

 
48.16

 
66.86

 
49.41

 
 
 
 
 
 
 
 
Natural gas (dollars per million British Thermal Units)
2.96

 
2.91

 
3.01

 
3.00

 
 
 
 
 
 
 
 
Products (dollars per barrel, unless otherwise noted)
 
 
 
 
 
 
 
U.S. Gulf Coast:
 
 
 
 
 
 
 
CBOB gasoline less Brent
7.08

 
14.36

 
7.28

 
11.17

Ultra-low-sulfur diesel less Brent
13.91

 
15.89

 
13.72

 
12.67

Propylene less Brent
5.49

 
(1.74
)
 
(2.62
)
 
(0.16
)
CBOB gasoline less LLS
8.71

 
14.93

 
8.92

 
11.94

Ultra-low-sulfur diesel less LLS
15.54

 
16.46

 
15.36

 
13.44

Propylene less LLS
7.12

 
(1.17
)
 
(0.98
)
 
0.61

U.S. Mid-Continent:

 

 
 
 
 
CBOB gasoline less WTI
16.68

 
19.28

 
15.40

 
15.38

Ultra-low-sulfur diesel less WTI
22.77

 
21.99

 
21.54

 
16.86

North Atlantic:

 

 
 
 
 
CBOB gasoline less Brent
10.43

 
17.72

 
9.89

 
12.99

Ultra-low-sulfur diesel less Brent
15.54

 
17.06

 
15.58

 
13.78

U.S. West Coast:
 
 
 
 
 
 
 
CARBOB 87 gasoline less ANS
13.52

 
22.11

 
15.05

 
20.63

CARB diesel less ANS
17.85

 
20.46

 
17.94

 
16.54

CARBOB 87 gasoline less WTI
19.37

 
26.14

 
20.39

 
23.46

CARB diesel less WTI
23.70

 
24.49

 
23.28

 
19.37

New York Harbor corn crush (dollars per gallon)
0.18

 
0.31

 
0.18

 
0.28


See Notes to Earnings Release Tables beginning on Table Page 15.


Table Page 13



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

 
 
 
 
 
September 30,
 
December 31,
 
 
 
 
 
2018
 
2017
Balance sheet data
 
 
 
 
 
 
 
Current assets
 
 
 
 
$
19,891

 
$
19,312

Cash and cash equivalents included in current assets
 
3,551

 
5,850

Inventories included in current assets
 
 
 
 
7,501

 
6,384

Current liabilities
 
 
 
 
12,482

 
11,071

Current portion of debt and capital lease obligations included
in current liabilities
 
199

 
122