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Exhibit 99.01


Valero Energy Reports Second Quarter 2020 Results

Reported net income attributable to Valero stockholders of $1.3 billion, or $3.07 per share.
Reported adjusted net loss attributable to Valero stockholders of $504 million, or $1.25 per share.
Returned $400 million in cash to stockholders through dividends and declared a quarterly common stock dividend of $0.98 per share on July 16.

SAN ANTONIO, July 30, 2020 – Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income attributable to Valero stockholders of $1.3 billion, or $3.07 per share, for the second quarter of 2020 compared to net income of $612 million, or $1.47 per share, for the second quarter of 2019. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net loss attributable to Valero stockholders was $504 million, or $1.25 per share, for the second quarter of 2020, compared to second quarter 2019 adjusted net income attributable to Valero stockholders of $665 million, or $1.60 per share. Second quarter 2020 adjusted results exclude the benefit from an after-tax lower of cost or market, or LCM, inventory valuation adjustment of $1.8 billion.

Refining
The refining segment reported $1.8 billion of operating income for the second quarter of 2020 compared to $1.0 billion for the second quarter of 2019. Excluding the LCM inventory valuation adjustment, the second quarter 2020 adjusted operating loss was $383 million. Refinery throughput volumes averaged 2.3 million barrels per day in the second quarter of 2020, which was 647 thousand barrels per day lower than the second quarter of 2019.

“While the impact of the pandemic and the ensuing global economic downturn so far this year has been significant, we saw a rapid recovery in demand for refined products as we moved through the quarter,” said Joe Gorder, Valero Chairman and Chief Executive Officer.



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Renewable Diesel
The renewable diesel segment reported $129 million of operating income for the second quarter of 2020 compared to $77 million for the second quarter of 2019. After adjusting for the retroactive blender’s tax credit, renewable diesel operating income was $145 million for the second quarter of 2019. Renewable diesel sales volumes averaged 795 thousand gallons per day in the second quarter of 2020, an increase of 26 thousand gallons per day versus the second quarter of 2019.

Ethanol
The ethanol segment reported $91 million of operating income for the second quarter of 2020, compared to $7 million for the second quarter of 2019. Excluding the LCM inventory valuation adjustment, the second quarter 2020 adjusted operating loss was $20 million. Ethanol production volumes averaged 2.3 million gallons per day in the second quarter of 2020, which was 2.2 million gallons per day lower than the second quarter of 2019. The decrease in adjusted operating income was attributed primarily to lower margins resulting from lower ethanol prices and lower throughput.

Corporate and Other
General and administrative expenses were $169 million in the second quarter of 2020 compared to $199 million in the second quarter of 2019. The effective tax rate for the second quarter of 2020 was 20 percent, which was affected by the results of certain of our international operations that are taxed at rates that are lower than the U.S. statutory tax rate.

Investing and Financing Activities
Capital investments totaled $503 million in the second quarter of 2020, of which $240 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance. Excluding our partner’s 50 percent share of Diamond Green Diesel’s (DGD) capital investments, Valero’s capital investments were approximately $448 million.

Valero returned $400 million to stockholders through dividends in the second quarter of 2020, resulting in a year-to-date payout of 96 percent of adjusted net cash provided by operating activities.

Net cash provided by operating activities was $736 million in the second quarter of 2020. Included in this amount was a $629 million favorable impact from working capital, as well as our joint venture


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partner’s share of DGD’s net cash provided by operating activities, excluding changes in its working capital. Excluding these items, adjusted net cash provided by operating activities was $38 million.

Valero continues to target a long-term total payout ratio between 40 and 50 percent of adjusted net cash provided by operating activities. 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 and DGD’s net cash provided by operating activities, excluding changes in its working capital, attributable to our joint venture partner’s ownership interest in DGD.

Liquidity and Financial Position
Valero ended the second quarter of 2020 with $12.7 billion of total debt and finance lease obligations and $2.3 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 33 percent as of June 30, 2020.

Strategic Update
Valero expects to invest approximately $2.1 billion of capital in 2020, of which approximately 60 percent is for sustaining the business and approximately 40 percent is for growth projects. Approximately 30 percent of Valero’s 2020 growth capital is allocated to expanding the renewables business.

The new St. Charles Alkylation Unit, which is designed to convert low-value feedstocks into a premium alkylate product, is on track to be completed in the fourth quarter of this year. The Diamond Pipeline expansion and the Pembroke Cogen project are expected to be completed in 2021 and the Port Arthur Coker project is expected to be completed in 2023.

Valero and its joint venture partner in DGD continue to pursue growth in the low-carbon renewable fuel business. The DGD plant expansion is expected to be completed in 2021, subject to COVID-19 related delays, and as previously announced, DGD continues to make progress on the advanced engineering and development cost review for a potential new 400 million gallons per day renewable diesel plant at Valero’s Port Arthur, Texas facility. If the project is approved, operations are expected to commence in 2024, increasing DGD production capacity to over 1.1 billion gallons annually.



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“As we focus on the path to recovery with improving product demand, we remain steadfast in the execution of our strategy, pursuing excellence in our operations, investing for earnings growth with lower volatility and honoring our commitment to stockholder returns,” said Gorder. “This uncompromising focus on capital discipline and execution has served us well in the current pandemic-imposed downturn, and it should continue to position Valero well through the recovery and beyond.”

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 (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 3.2 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.



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Valero Contacts
Investors:
Homer Bhullar, Vice President – Investor Relations, 210-345-1982
Eric Herbort, Senior Manager – Investor Relations, 210-345-3331
Gautam Srivastava, Manager – Investor Relations, 210-345-3992

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. 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, including but not limited to the impacts of COVID-19. 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 available on Valero’s website at www.valero.com.

COVID-19 Disclosure
The global pandemic has significantly reduced global economic activity and resulted in airlines dramatically cutting back on flights and a decrease in motor vehicle use at a time when seasonal driving patterns typically result in an increase of consumer demand for gasoline. As a result, there has also been a decline in the demand for, and thus also the market prices of, crude oil and certain of our products, particularly our refined petroleum products. Many uncertainties remain with respect to COVID-19, including its resulting economic effects and any future recovery, and we are unable to predict the ultimate economic impacts from COVID-19, how quickly national economies can recover once the pandemic subsides, or whether any recovery will ultimately experience a reversal or other setbacks. However, the adverse impact of the economic effects on us has been and will


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likely continue to be significant. We believe we have proactively addressed many of the known impacts of COVID-19 to the extent possible and will strive to continue to do so, but there can be no guarantee that these measures will be fully effective. For more information, see our quarterly reports on Form 10-Q and other reports filed with the Securities and Exchange Commission.

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 (loss) attributable to Valero stockholders, adjusted earnings (loss) per common share – assuming dilution, refining margin, renewable diesel margin, ethanol margin, adjusted refining operating income (loss), adjusted renewable diesel operating income, adjusted ethanol operating income (loss), 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.




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,
 
2020
 
2019
 
2020
 
2019
Statement of income data
 
 
 
 
 
 
 
Revenues
$
10,397

 
$
28,933

 
$
32,499

 
$
53,196

Cost of sales:
 
 
 
 
 
 
 
Cost of materials and other (a)
9,079

 
26,083

 
29,031

 
48,061

Lower of cost or market (LCM) inventory valuation adjustment (b)
(2,248
)
 

 
294

 

Operating expenses (excluding depreciation and
amortization expense reflected below)
1,027

 
1,175

 
2,151

 
2,390

Depreciation and amortization expense
566

 
552

 
1,135

 
1,089

Total cost of sales
8,424

 
27,810

 
32,611

 
51,540

Other operating expenses
3

 
2

 
5

 
4

General and administrative expenses (excluding
depreciation and amortization expense reflected below)
169

 
199

 
346

 
408

Depreciation and amortization expense
12

 
14

 
25

 
28

Operating income (loss)
1,789

 
908

 
(488
)
 
1,216

Other income, net (c)
27

 
12

 
59

 
34

Interest and debt expense, net of capitalized interest
(142
)
 
(112
)
 
(267
)
 
(224
)
Income (loss) before income tax expense (benefit)
1,674

 
808

 
(696
)
 
1,026

Income tax expense (benefit)
339

 
160

 
(277
)
 
211

Net income (loss)
1,335

 
648

 
(419
)
 
815

Less: Net income attributable to noncontrolling interests (a)
82

 
36

 
179

 
62

Net income (loss) attributable to Valero Energy Corporation
stockholders
$
1,253

 
$
612

 
$
(598
)
 
$
753

 
 
 
 
 
 
 
 
Earnings (loss) per common share
$
3.07

 
$
1.47

 
$
(1.48
)
 
$
1.80

Weighted-average common shares outstanding (in millions)
406

 
415

 
407

 
416

 
 
 
 
 
 
 
 
Earnings (loss) per common share – assuming dilution
$
3.07

 
$
1.47

 
$
(1.48
)
 
$
1.80

Weighted-average common shares outstanding –
assuming dilution (in millions) (d)
407

 
417

 
407

 
417


See Notes to Earnings Release Tables beginning on Table Page 17.


Table Page 1



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

 
Refining
 
Renewable
Diesel
 
Ethanol
 
Corporate
and
Eliminations
 
Total
Three months ended June 30, 2020
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
9,615

 
$
239

 
$
543

 
$

 
$
10,397

Intersegment revenues
2

 
57

 
38

 
(97
)
 

Total revenues
9,617

 
296

 
581

 
(97
)
 
10,397

Cost of sales:
 
 
 
 
 
 
 
 
 
Cost of materials and other (a)
8,539

 
135

 
501

 
(96
)
 
9,079

LCM inventory valuation adjustment (b)
(2,137
)
 

 
(111
)
 

 
(2,248
)
Operating expenses (excluding depreciation and
amortization expense reflected below)
928

 
20

 
79

 

 
1,027

Depreciation and amortization expense
533

 
12

 
21

 

 
566

Total cost of sales
7,863

 
167

 
490

 
(96
)
 
8,424

Other operating expenses
3

 

 

 

 
3

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

 

 

 
169

 
169

Depreciation and amortization expense

 

 

 
12

 
12

Operating income by segment
$
1,751

 
$
129

 
$
91

 
$
(182
)
 
$
1,789

 
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2019
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
27,746

 
$
222

 
$
964

 
$
1

 
$
28,933

Intersegment revenues
8

 
73

 
53

 
(134
)
 

Total revenues
27,754

 
295

 
1,017

 
(133
)
 
28,933

Cost of sales:
 
 
 
 
 
 
 
 
 
Cost of materials and other
25,172

 
189

 
855

 
(133
)
 
26,083

Operating expenses (excluding depreciation and
amortization expense reflected below)
1,026

 
17

 
132

 

 
1,175

Depreciation and amortization expense
518

 
12

 
22

 

 
552

Total cost of sales
26,716

 
218

 
1,009

 
(133
)
 
27,810

Other operating expenses
1

 

 
1

 

 
2

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

 

 

 
199

 
199

Depreciation and amortization expense

 

 

 
14

 
14

Operating income by segment
$
1,037

 
$
77

 
$
7

 
$
(213
)
 
$
908


See Operating Highlights by Segment beginning on Table Page 9.
See Notes to Earnings Release Tables beginning on Table Page 17.



Table Page 2



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

 
Refining
 
Renewable
Diesel
 
Ethanol
 
Corporate
and
Eliminations
 
Total
Six months ended June 30, 2020
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
30,600

 
$
545

 
$
1,354

 
$

 
$
32,499

Intersegment revenues
4

 
110

 
102

 
(216
)
 

Total revenues
30,604

 
655

 
1,456

 
(216
)
 
32,499

Cost of sales:
 
 
 
 
 
 
 
 


Cost of materials and other (a)
27,666

 
265

 
1,314

 
(214
)
 
29,031

LCM inventory valuation adjustment (b)
277

 

 
17

 

 
294

Operating expenses (excluding depreciation and
amortization expense reflected below)
1,923

 
40

 
188

 

 
2,151

Depreciation and amortization expense
1,069

 
23

 
43

 

 
1,135

Total cost of sales
30,935

 
328

 
1,562

 
(214
)
 
32,611

Other operating expenses
5

 

 

 

 
5

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

 

 

 
346

 
346

Depreciation and amortization expense

 

 

 
25

 
25

Operating income (loss) by segment
$
(336
)
 
$
327

 
$
(106
)
 
$
(373
)
 
$
(488
)
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2019
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
50,964

 
$
474

 
$
1,757

 
$
1

 
$
53,196

Intersegment revenues
10

 
124

 
105

 
(239
)
 

Total revenues
50,974

 
598

 
1,862

 
(238
)
 
53,196

Cost of sales:
 
 
 
 
 
 
 
 
 
Cost of materials and other
46,337

 
413

 
1,549

 
(238
)
 
48,061

Operating expenses (excluding depreciation and
amortization expense reflected below)
2,097

 
36

 
257

 

 
2,390

Depreciation and amortization expense
1,021

 
23

 
45

 

 
1,089

Total cost of sales
49,455

 
472

 
1,851

 
(238
)
 
51,540

Other operating expenses
3

 

 
1

 

 
4

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

 

 

 
408

 
408

Depreciation and amortization expense

 

 

 
28

 
28

Operating income by segment
$
1,516

 
$
126

 
$
10

 
$
(436
)
 
$
1,216


See Operating Highlights by Segment beginning on Table Page 9.
See Notes to Earnings Release Tables beginning on Table Page 17.



Table Page 3



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


 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2020
 
2019
 
2020
 
2019
Reconciliation of net income (loss) attributable to Valero
Energy Corporation stockholders to adjusted net income
(loss) attributable to Valero Energy Corporation
stockholders
 
 
 
 
 
 
 
Net income (loss) attributable to Valero Energy Corporation
stockholders
$
1,253

 
$
612

 
$
(598
)
 
$
753

Adjustments:
 
 
 
 
 
 
 
LCM inventory valuation adjustment (b)
(2,248
)
 

 
294

 

Income tax expense (benefit) related to the LCM inventory
valuation adjustment
491

 

 
(60
)
 

LCM inventory valuation adjustment, net of taxes
(1,757
)
 

 
234

 

2019 blender’s tax credit attributable to Valero Energy
Corporation stockholders (a)

 
38

 

 
79

Income tax expense related to 2019 blender’s tax credit

 
(2
)
 

 
(3
)
2019 blender’s tax credit attributable to Valero Energy
Corporation stockholders, net of taxes

 
36

 

 
76

Loss on early redemption of debt (c)

 
22

 

 
22

Income tax benefit related to loss on early
redemption of debt

 
(5
)
 

 
(5
)
Loss on early redemption of debt, net of taxes

 
17

 

 
17

Total adjustments
(1,757
)
 
53

 
234

 
93

Adjusted net income (loss) attributable to
Valero Energy Corporation stockholders
$
(504
)
 
$
665

 
$
(364
)
 
$
846

 
 
 
 
 
 
 
 
Reconciliation of earnings (loss) per common share –
assuming dilution to adjusted earnings (loss) per common
share – assuming dilution
 
 
 
 
 
 
 
Earnings (loss) per common share – assuming dilution (d)
$
3.07

 
$
1.47

 
$
(1.48
)
 
$
1.80

Adjustments:
 
 
 
 
 
 
 
LCM inventory valuation adjustment (b)
(4.32
)
 

 
0.58

 

2019 blender’s tax credit attributable to Valero Energy
Corporation stockholders (a)

 
0.09

 

 
0.19

Loss on early redemption of debt (c)

 
0.04

 

 
0.04

Total adjustments
(4.32
)
 
0.13

 
0.58

 
0.23

Adjusted earnings (loss) per common share –
assuming dilution (e)
$
(1.25
)
 
$
1.60

 
$
(0.90
)
 
$
2.03


See Notes to Earnings Release Tables beginning on Table Page 17.


Table Page 4



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

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2020
 
2019
 
2020
 
2019
Reconciliation of operating income (loss) by segment to
segment margin, and reconciliation of operating income
(loss) by segment to adjusted operating income (loss) by
segment
 
 
 
 
 
 
 
Refining segment
 
 
 
 
 
 
 
Refining operating income (loss)
$
1,751

 
$
1,037

 
$
(336
)
 
$
1,516

Adjustments:
 
 
 
 
 
 
 
2019 blender’s tax credit (a)

 
4

 

 
9

LCM inventory valuation adjustment (b)
(2,137
)
 

 
277

 

Operating expenses (excluding depreciation and
amortization expense reflected below)
928

 
1,026

 
1,923

 
2,097

Depreciation and amortization expense
533

 
518

 
1,069

 
1,021

Other operating expenses
3

 
1

 
5

 
3

Refining margin
$
1,078

 
$
2,586

 
$
2,938

 
$
4,646

 
 
 
 
 
 
 
 
Refining operating income (loss)
$
1,751

 
$
1,037

 
$
(336
)
 
$
1,516

Adjustments:
 
 
 
 
 
 
 
2019 blender’s tax credit (a)

 
4

 

 
9

LCM inventory valuation adjustment (b)
(2,137
)
 

 
277

 

Other operating expenses
3

 
1

 
5

 
3

Adjusted refining operating income (loss)
$
(383
)
 
$
1,042

 
$
(54
)
 
$
1,528

 
 
 
 
 
 
 
 
Renewable diesel segment
 
 
 
 
 
 
 
Renewable diesel operating income
$
129

 
$
77

 
$
327

 
$
126

Adjustments:
 
 
 
 
 
 
 
2019 blender’s tax credit (a)

 
68

 

 
140

Operating expenses (excluding depreciation and
amortization expense reflected below)
20

 
17

 
40

 
36

Depreciation and amortization expense
12

 
12

 
23

 
23

Renewable diesel margin
$
161

 
$
174

 
$
390

 
$
325

 
 
 
 
 
 
 
 
Renewable diesel operating income
$
129

 
$
77

 
$
327

 
$
126

Adjustment: 2019 blender’s tax credit (a)

 
68

 

 
140

Adjusted renewable diesel operating income
$
129

 
$
145

 
$
327

 
$
266

 
 
 
 
 
 
 
 
See Notes to Earnings Release Tables beginning on Table Page 17.
 
 
 
 
 
 
 
 


Table Page 5



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

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2020
 
2019
 
2020
 
2019
Reconciliation of operating income (loss) by segment to
segment margin, and reconciliation of operating income
(loss) by segment to adjusted operating income (loss) by
segment (continued)
 
 
 
 
 
 
 
Ethanol segment
 
 
 
 
 
 
 
Ethanol operating income (loss)
$
91

 
$
7

 
$
(106
)
 
$
10

Adjustments:
 
 
 
 
 
 
 
LCM inventory valuation adjustment (b)
(111
)
 

 
17

 

Operating expenses (excluding depreciation and
amortization expense reflected below)
79

 
132

 
188

 
257

Depreciation and amortization expense
21

 
22

 
43

 
45

Other operating expenses

 
1

 

 
1

Ethanol margin
$
80

 
$
162

 
$
142

 
$
313

 
 
 
 
 
 
 
 
Ethanol operating income (loss)
$
91

 
$
7

 
$
(106
)
 
$
10

Adjustments:
 
 
 
 
 
 
 
LCM inventory valuation adjustment (b)
(111
)
 

 
17

 

Other operating expenses

 
1

 

 
1

Adjusted ethanol operating income (loss)
$
(20
)
 
$
8

 
$
(89
)
 
$
11


See Notes to Earnings Release Tables beginning on Table Page 17.


Table Page 6



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

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2020
 
2019
 
2020
 
2019
Reconciliation of refining segment operating income (loss) to
refining margin (by region), and reconciliation of refining
segment operating income (loss) to adjusted refining
segment operating income (loss) (by region) (g)
 
 
 
 
 
 
 
U.S. Gulf Coast region
 
 
 
 
 
 
 
Refining operating income (loss)
$
892

 
$
273

 
$
(50
)
 
$
391

Adjustments:
 
 
 
 
 
 
 
2019 blender’s tax credit (a)

 
3

 

 
6

LCM inventory valuation adjustment (b)
(1,109
)
 

 
4

 

Operating expenses (excluding depreciation and
amortization expense reflected below)
535

 
586

 
1,093

 
1,185

Depreciation and amortization expense
327

 
318

 
661

 
628

Other operating expenses
2

 
1

 
2

 
2

Refining margin
$
647

 
$
1,181

 
$
1,710

 
$
2,212

 
 
 
 
 
 
 
 
Refining operating income (loss)
$
892

 
$
273

 
$
(50
)
 
$
391

Adjustments:
 
 
 
 
 
 
 
2019 blender’s tax credit (a)

 
3

 

 
6

LCM inventory valuation adjustment (b)
(1,109
)
 

 
4

 

Other operating expenses
2

 
1

 
2

 
2

Adjusted refining operating income (loss)
$
(215
)
 
$
277

 
$
(44
)
 
$
399

 
 
 
 
 
 
 
 
U.S. Mid-Continent region
 
 
 
 
 
 
 
Refining operating income
$
293

 
$
422

 
$
73

 
$
658

Adjustments:
 
 
 
 
 
 
 
2019 blender’s tax credit (a)

 
1

 

 
2

LCM inventory valuation adjustment (b)
(283
)
 

 

 

Operating expenses (excluding depreciation and
amortization expense reflected below)
148

 
146

 
312

 
312

Depreciation and amortization expense
83

 
74

 
166

 
149

Refining margin
$
241

 
$
643

 
$
551

 
$
1,121

 
 
 
 
 
 
 
 
Refining operating income
$
293

 
$
422

 
$
73

 
$
658

Adjustments:
 
 
 
 
 
 
 
2019 blender’s tax credit (a)

 
1

 

 
2

LCM inventory valuation adjustment (b)
(283
)
 

 

 

Adjusted refining operating income
$
10

 
$
423

 
$
73

 
$
660


See Notes to Earnings Release Tables beginning on Table Page 17.


Table Page 7



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

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2020
 
2019
 
2020
 
2019
Reconciliation of refining segment operating income (loss)
to refining margin (by region), and reconciliation of
refining segment operating income (loss) to adjusted
refining segment operating income (loss) (by region) (g)
(continued)
 
 
 
 
 
 
 
North Atlantic region
 
 
 
 
 
 
 
Refining operating income (loss)
$
597

 
$
278

 
$
(117
)
 
$
454

Adjustments:
 
 
 
 
 
 
 
LCM inventory valuation adjustment (b)
(657
)
 

 
217

 

Operating expenses (excluding depreciation and
amortization expense reflected below)
112

 
146

 
253

 
293

Depreciation and amortization expense
52

 
55

 
105

 
108

Other operating expenses
1

 

 
3

 

Refining margin
$
105

 
$
479

 
$
461

 
$
855

 
 
 
 
 
 
 
 
Refining operating income (loss)
$
597

 
$
278

 
$
(117
)
 
$
454

Adjustments:
 
 
 
 
 
 
 
LCM inventory valuation adjustment (b)
(657
)
 

 
217

 

Other operating expenses
1

 

 
3

 

Adjusted refining operating income (loss)
$
(59
)
 
$
278

 
$
103

 
$
454

 
 
 
 
 
 
 
 
U.S. West Coast region
 
 
 
 
 
 
 
Refining operating income (loss)
$
(31
)
 
$
64

 
$
(242
)
 
$
13

Adjustments:
 
 
 
 
 
 
 
2019 blender’s tax credit (a)

 

 

 
1

LCM inventory valuation adjustment (b)
(88
)
 

 
56

 

Operating expenses (excluding depreciation and
amortization expense reflected below)
133

 
148

 
265

 
307

Depreciation and amortization expense
71

 
71

 
137

 
136

Other operating expenses

 

 

 
1

Refining margin
$
85

 
$
283

 
$
216

 
$
458

 
 
 
 
 
 
 
 
Refining operating income (loss)
$
(31
)
 
$
64

 
$
(242
)
 
$
13

Adjustments:
 
 
 
 
 
 
 
2019 blender’s tax credit (a)

 

 

 
1

LCM inventory valuation adjustment (b)
(88
)
 

 
56

 

Other operating expenses

 

 

 
1

Adjusted refining operating income (loss)
$
(119
)
 
$
64

 
$
(186
)
 
$
15


See Notes to Earnings Release Tables beginning on Table Page 17.


Table Page 8



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,
 
2020
 
2019
 
2020
 
2019
Throughput volumes (thousand barrels per day)
 
 
 
 
 
 
 
Feedstocks:
 
 
 
 
 
 
 
Heavy sour crude oil
378

 
419

 
369

 
415

Medium/light sour crude oil
385

 
257

 
363

 
297

Sweet crude oil
1,018

 
1,550

 
1,234

 
1,513

Residuals
169

 
241

 
202

 
193

Other feedstocks
69

 
171

 
85

 
162

Total feedstocks
2,019

 
2,638

 
2,253

 
2,580

Blendstocks and other
302

 
330

 
320

 
337

Total throughput volumes
2,321

 
2,968

 
2,573

 
2,917

 
 
 
 
 
 
 
 
Yields (thousand barrels per day)
 
 
 
 
 
 
 
Gasolines and blendstocks
1,061

 
1,378

 
1,189

 
1,387

Distillates
835

 
1,141

 
940

 
1,115

Other products (h)
434

 
483

 
456

 
445

Total yields
2,330

 
3,002

 
2,585

 
2,947

 
 
 
 
 
 
 
 
Operating statistics (f) (i)
 
 
 
 
 
 
 
Refining margin (from Table Page 5)
$
1,078

 
$
2,586

 
$
2,938

 
$
4,646

Adjusted refining operating income (loss) (from Table Page 5)
$
(383
)
 
$
1,042

 
$
(54
)
 
$
1,528

Throughput volumes (thousand barrels per day)
2,321

 
2,968

 
2,573

 
2,917

 
 
 
 
 
 
 
 
Refining margin per barrel of throughput
$
5.10

 
$
9.58

 
$
6.27

 
$
8.79

Less:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput
4.39

 
3.80

 
4.10

 
3.97

Depreciation and amortization expense per barrel of
throughput
2.53

 
1.92

 
2.28

 
1.93

Adjusted refining operating income (loss) per barrel of
throughput
$
(1.82
)
 
$
3.86

 
$
(0.11
)
 
$
2.89


See Notes to Earnings Release Tables beginning on Table Page 17.


Table Page 9



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


 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2020
 
2019
 
2020
 
2019
Operating statistics (f) (i)
 
 
 
 
 
 
 
Renewable diesel margin (from Table Page 5)
$
161

 
$
174

 
$
390

 
$
325

Adjusted renewable diesel operating income
(from Table Page 5)
$
129

 
$
145

 
$
327

 
$
266

Sales volumes (thousand gallons per day)
795

 
769

 
831

 
780

 


 


 


 


Renewable diesel margin per gallon of sales
$
2.22

 
$
2.49

 
$
2.58

 
$
2.30

Less:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below) per gallon of sales
0.29

 
0.25

 
0.27

 
0.26

Depreciation and amortization expense per gallon of sales
0.15

 
0.17

 
0.15

 
0.16

Adjusted renewable diesel operating income per gallon
of sales
$
1.78

 
$
2.07

 
$
2.16

 
$
1.88


See Notes to Earnings Release Tables beginning on Table Page 17.


Table Page 10



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,
 
2020
 
2019
 
2020
 
2019
Operating statistics (f) (i)
 
 
 
 
 
 
 
Ethanol margin (from Table Page 6)
$
80

 
$
162

 
$
142

 
$
313

Adjusted ethanol operating income (loss) (from Table Page 6)
$
(20
)
 
$
8

 
$
(89
)
 
$
11

Production volumes (thousand gallons per day)
2,316

 
4,533

 
3,210

 
4,376

 
 
 
 
 
 
 
 
Ethanol margin per gallon of production
$
0.38

 
$
0.39

 
$
0.24

 
$
0.40

Less:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below) per gallon of production
0.38

 
0.32

 
0.32

 
0.32

Depreciation and amortization expense per gallon of production
0.10

 
0.05

 
0.07

 
0.07

Adjusted ethanol operating income (loss) per gallon of production
$
(0.10
)
 
$
0.02

 
$
(0.15
)
 
$
0.01


See Notes to Earnings Release Tables beginning on Table Page 17.


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,
 
2020
 
2019
 
2020
 
2019
Operating statistics by region (g)
 
 
 
 
 
 
 
U.S. Gulf Coast region (f) (i)
 
 
 
 
 
 
 
Refining margin (from Table Page 7)
$
647

 
$
1,181

 
$
1,710

 
$
2,212

Adjusted refining operating income (loss) (from Table Page 7)
$
(215
)
 
$
277

 
$
(44
)
 
$
399

Throughput volumes (thousand barrels per day)
1,385

 
1,779

 
1,527

 
1,725

 
 
 
 
 
 
 
 
Refining margin per barrel of throughput
$
5.13

 
$
7.30

 
$
6.15

 
$
7.09

Less:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput
4.23

 
3.63

 
3.93

 
3.80

Depreciation and amortization expense per barrel of
throughput
2.60

 
1.96

 
2.37

 
2.01

Adjusted refining operating income (loss) per barrel of
throughput
$
(1.70
)
 
$
1.71

 
$
(0.15
)
 
$
1.28

 
 
 
 
 
 
 
 
U.S. Mid-Continent region (f) (i)
 
 
 
 
 
 
 
Refining margin (from Table Page 7)
$
241

 
$
643

 
$
551

 
$
1,121

Adjusted refining operating income (from Table Page 7)
$
10

 
$
423

 
$
73

 
$
660

Throughput volumes (thousand barrels per day)
364

 
462

 
398

 
452

 
 
 
 
 
 
 
 
Refining margin per barrel of throughput
$
7.28

 
$
15.25

 
$
7.61

 
$
13.70

Less:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput
4.47

 
3.45

 
4.32

 
3.81

Depreciation and amortization expense per barrel of
throughput
2.51

 
1.76

 
2.29

 
1.82

Adjusted refining operating income per barrel of throughput
$
0.30

 
$
10.04

 
$
1.00

 
$
8.07


See Notes to Earnings Release Tables beginning on Table Page 17.


Table Page 12



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,
 
2020
 
2019
 
2020
 
2019
Operating statistics by region (g) (continued)
 
 
 
 
 
 
 
North Atlantic region (f) (i)
 
 
 
 
 
 
 
Refining margin (from Table Page 8)
$
105

 
$
479

 
$
461

 
$
855

Adjusted refining operating income (loss) (from Table Page 8)
$
(59
)
 
$
278

 
$
103

 
$
454

Throughput volumes (thousand barrels per day)
340

 
493

 
414

 
491

 
 
 
 
 
 
 
 
Refining margin per barrel of throughput
$
3.40

 
$
10.69

 
$
6.12

 
$
9.61

Less:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput
3.64

 
3.26

 
3.36

 
3.30

Depreciation and amortization expense per barrel of
throughput
1.67

 
1.23

 
1.39

 
1.20

Adjusted refining operating income (loss) per barrel of
throughput
$
(1.91
)
 
$
6.20

 
$
1.37

 
$
5.11

 
 
 
 
 
 
 
 
U.S. West Coast region (f) (i)
 
 
 
 
 
 
 
Refining margin (from Table Page 8)
$
85

 
$
283

 
$
216

 
$
458

Adjusted refining operating income (loss) (from Table Page 8)
$
(119
)
 
$
64

 
$
(186
)
 
$
15

Throughput volumes (thousand barrels per day)
232

 
234

 
234

 
249

 
 
 
 
 
 
 
 
Refining margin per barrel of throughput
$
3.98

 
$
13.32

 
$
5.06

 
$
10.17

Less:
 
 
 
 
 
 
 
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput
6.26

 
6.97

 
6.21

 
6.83

Depreciation and amortization expense per barrel of
throughput
3.37

 
3.32

 
3.22

 
3.02

Adjusted refining operating income (loss) per barrel of
throughput
$
(5.65
)
 
$
3.03

 
$
(4.37
)
 
$
0.32


See Notes to Earnings Release Tables beginning on Table Page 17.


Table Page 13



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

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2020
 
2019
 
2020
 
2019
Refining
 
 
 
 
 
 
 
Feedstocks (dollars per barrel)
 
 
 
 
 
 
 
Brent crude oil
$
33.22

 
$
68.33

 
$
42.06

 
$
66.08

Brent less West Texas Intermediate (WTI) crude oil
5.42

 
8.53

 
5.17

 
8.73

Brent less Alaska North Slope (ANS) crude oil
2.85

 
0.15

 
1.18

 
(0.27
)
Brent less Louisiana Light Sweet (LLS) crude oil
2.95

 
1.30

 
2.85

 
1.38

Brent less Argus Sour Crude Index (ASCI) crude oil