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July 2022
Last10K.com | 8-K Material Event Thu Jan 26 2023
Exhibit 99.01
Valero Energy Reports 2022 Fourth Quarter and Full Year Results
•Reported net income attributable to Valero stockholders of $3.1 billion, or $8.15 per share, for the fourth quarter and $11.5 billion, or $29.04 per share, for the year
•Reported adjusted net income attributable to Valero stockholders of $3.2 billion, or $8.45 per share, for the fourth quarter and $11.6 billion, or $29.16 per share, for the year
•Reduced debt by $2.7 billion in 2022, bringing Valero’s aggregate debt reduction since the second half of 2021 to $4.0 billion
•Successfully commenced operations of the new DGD Port Arthur plant in the fourth quarter
SAN ANTONIO, January 26, 2023 – Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income attributable to Valero stockholders of $3.1 billion, or $8.15 per share, for the fourth quarter of 2022, compared to $1.0 billion, or $2.46 per share, for the fourth quarter of 2021. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders was $3.2 billion, or $8.45 per share, for the fourth quarter of 2022, compared to $988 million, or $2.41 per share, for the fourth quarter of 2021.
For 2022, net income attributable to Valero stockholders was $11.5 billion, or $29.04 per share, compared to $930 million, or $2.27 per share, in 2021. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders was $11.6 billion, or $29.16 per share, in 2022, compared to $1.2 billion, or $2.81 per share, in 2021.
Refining
The Refining segment reported operating income of $4.3 billion for the fourth quarter of 2022, compared to $1.3 billion for the fourth quarter of 2021. Adjusted operating income for the fourth quarter of 2022 was $4.4 billion, compared to $1.1 billion for the fourth quarter of 2021. Refining throughput volumes averaged 3.0 million barrels per day in the fourth quarter of 2022.
“Our refineries operated at a 97 percent capacity utilization rate in the fourth quarter, which is the highest utilization rate for our system since 2018,” said Joe Gorder, Valero’s Chairman and Chief Executive Officer, “I am also proud to report that 2022 was Valero’s best year ever for combined employee and contractor safety, which is a testament to our long-standing commitment to safe, reliable and environmentally responsible operations.”
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Renewable Diesel
The Renewable Diesel segment, which consists of the Diamond Green Diesel (DGD) joint venture, reported $261 million of operating income for the fourth quarter of 2022, compared to $150 million for the fourth quarter of 2021. Segment sales volumes averaged 2.4 million gallons per day in the fourth quarter of 2022, which was 851 thousand gallons per day higher than the fourth quarter of 2021. The higher sales volumes were due to the impact of additional volumes from the DGD St. Charles plant expansion and the fourth quarter 2022 startup of the DGD Port Arthur plant.
Ethanol
The Ethanol segment reported $7 million of operating income for the fourth quarter of 2022, compared to $474 million for the fourth quarter of 2021. Adjusted operating income for the fourth quarter of 2022 was $69 million, compared to $475 million for the fourth quarter of 2021. Ethanol production volumes averaged 4.1 million gallons per day in the fourth quarter of 2022, which was 340 thousand gallons per day lower than the fourth quarter of 2021. The higher operating income in the fourth quarter of 2021 was primarily attributed to high ethanol prices due to strong demand and low inventories.
Corporate and Other
General and administrative expenses were $282 million in the fourth quarter of 2022, compared to $286 million in the fourth quarter of 2021. General and administrative expenses were $934 million for the year. The effective tax rate for 2022 was 22 percent.
Investing and Financing Activities
Net cash provided by operating activities was $4.1 billion in the fourth quarter of 2022. Included in this amount was a $9 million unfavorable change in working capital and $142 million of net cash provided by operating activities associated with the other joint venture member’s share of DGD, excluding changes in DGD’s working capital. Excluding these items, adjusted net cash provided by operating activities was $4.0 billion in the fourth quarter of 2022.
Net cash provided by operating activities in 2022 was $12.6 billion. Included in this amount was a $1.6 billion unfavorable impact from working capital and $436 million of net cash provided by operating activities associated with the other joint venture member’s share of DGD, excluding changes in DGD’s working capital. Excluding these items, adjusted net cash provided by operating activities in 2022 was $13.8 billion.
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Capital investments totaled $640 million in the fourth quarter of 2022, of which $349 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance. Excluding capital investments attributable to the other joint venture member’s share of DGD and those related to other variable interest entities, capital investments attributable to Valero were $538 million in the fourth quarter of 2022 and $2.3 billion in 2022, which was higher than the annual guidance primarily due to spend timing on the Port Arthur Coker project and the accelerated completion of the DGD Port Arthur plant.
Valero returned 45 percent of adjusted net cash provided by operating activities to stockholders in 2022.
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 the other joint venture member’s share of DGD.
Valero further reduced its debt by $442 million in the fourth quarter. This reduction, combined with a series of debt reduction and refinancing transactions completed since the second half of 2021, have collectively reduced Valero’s debt by over $4.0 billion.
Liquidity and Financial Position
Valero ended 2022 with $9.2 billion of total debt, $2.4 billion of finance lease obligations and $4.9 billion of cash and cash equivalents, compared to $13.0 billion of total debt, $1.6 billion of finance lease obligations and $2.3 billion of cash and cash equivalents at the end of the first quarter of 2021. The debt to capitalization ratio, net of cash and cash equivalents, was approximately 21 percent as of December 31, 2022, down from the pandemic high of 40 percent as of March 31, 2021.
Strategic Update
The DGD project adjacent to the Port Arthur refinery (DGD Port Arthur plant), which has a production capacity of 470 million gallons per year of renewable diesel and 20 million gallons per year of renewable naphtha, was commissioned and started up in the fourth quarter. The project was completed under budget and ahead of the original schedule. Total annual DGD production capacity is now approximately 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha.
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Refinery optimization projects that are expected to reduce costs and improve margin capture are progressing on schedule. The Port Arthur Coker project is expected to be completed in the second quarter of 2023 and to increase the refinery’s throughput capacity, while also improving turnaround efficiency.
BlackRock and Navigator’s carbon sequestration project is still expected to begin startup activities in late 2024. Valero expects to be the anchor shipper with eight of its ethanol plants connected to this system, which is expected to result in the production of a lower carbon intensity ethanol product that should significantly improve the margin profile and competitive positioning of the ethanol business.
“We continue to advance other low-carbon opportunities, such as sustainable aviation fuel, renewable hydrogen, and additional renewable naphtha and carbon sequestration projects,” said Gorder. “Our gated process helps ensure these projects meet our minimum return threshold.”
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 a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and it sells its products primarily in the United States (“U.S.”), Canada, the United Kingdom (“U.K.”), Ireland and Latin America. Valero owns 15 petroleum refineries located in the U.S., Canada and the U.K. with a combined throughput capacity of approximately 3.2 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which owns two renewable diesel plants located in the U.S. Gulf Coast region with a production capacity of approximately 1.2 billion gallons per year, and Valero owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.6 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel, and Ethanol segments. Please visit investorvalero.com for more information.
Valero Contacts
Investors:
Homer Bhullar, Vice President – Investor Relations and Finance, 210-345-1982
Eric Herbort, Director – Investor Relations, 210-345-3331
Gautam Srivastava, Senior Manager – Investor Relations, 210-345-3992
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Media:
Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002
Safe-Harbor Statement
Statements contained in this release and the accompanying tables that state Valero’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,” “forecast,” and other similar expressions identify forward-looking statements. Forward-looking statements in this release and the accompanying tables include those relating to Valero’s greenhouse gas emissions targets, expected timing of completion and performance of projects, future market and industry conditions, future operating and financial performance, and management of future risks. 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 Valero’s control, such as legislative or political changes or developments, market dynamics, cyberattacks, weather events, and other matters affecting Valero’s operations or the demand for Valero’s products. These factors also include, but are not limited to, the uncertainties that remain with respect to the Russia-Ukraine conflict, the impact of inflation on margins and costs, economic activity levels, the COVID-19 pandemic, variants of the COVID-19 virus, governmental and societal responses thereto, and the adverse effects the foregoing may have on Valero’s business or economic conditions generally. For more information concerning these and other factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual report 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.
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, Refining margin, Renewable Diesel margin, Ethanol margin, adjusted Refining operating income, adjusted Renewable Diesel operating income, adjusted Ethanol operating income, adjusted net cash provided by operating activities, and capital investments attributable to Valero. 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
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non-GAAP measures to their most directly comparable GAAP measures. Note (h) to the earnings release tables provides reasons for the use of these non-GAAP financial measures.
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VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
FINANCIAL HIGHLIGHTS
(millions of dollars, except per share amounts)
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Statement of income data | |||||||||||||||||||||||
| Revenues | $ | 41,746 | $ | 35,903 | $ | 176,383 | $ | 113,977 | |||||||||||||||
| Cost of sales: | |||||||||||||||||||||||
Cost of materials and other (a) (b) | 34,811 | 31,849 | 150,770 | 102,714 | |||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) (b) | 1,638 | 1,558 | 6,389 | 5,776 | |||||||||||||||||||
Depreciation and amortization expense (c) | 622 | 586 | 2,428 | 2,358 | |||||||||||||||||||
| Total cost of sales | 37,071 | 33,993 | 159,587 | 110,848 | |||||||||||||||||||
Asset impairment loss (d) | 61 | — | 61 | — | |||||||||||||||||||
| Other operating expenses | 26 | 18 | 66 | 87 | |||||||||||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) (e) | 282 | 286 | 934 | 865 | |||||||||||||||||||
| Depreciation and amortization expense | 11 | 12 | 45 | 47 | |||||||||||||||||||
| Operating income | 4,295 | 1,594 | 15,690 | 2,130 | |||||||||||||||||||
Other income (expense), net (f) | 92 | (163) | 179 | 16 | |||||||||||||||||||
| Interest and debt expense, net of capitalized interest | (137) | (152) | (562) | (603) | |||||||||||||||||||
| Income before income tax expense | 4,250 | 1,279 | 15,307 | 1,543 | |||||||||||||||||||
Income tax expense (g) | 1,018 | 169 | 3,428 | 255 | |||||||||||||||||||
| Net income | 3,232 | 1,110 | 11,879 | 1,288 | |||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | 119 | 101 | 351 | 358 | |||||||||||||||||||
Net income attributable to Valero Energy Corporation stockholders | $ | 3,113 | $ | 1,009 | $ | 11,528 | $ | 930 | |||||||||||||||
| Earnings per common share | $ | 8.15 | $ | 2.47 | $ | 29.05 | $ | 2.27 | |||||||||||||||
| Weighted-average common shares outstanding (in millions) | 380 | 408 | 395 | 407 | |||||||||||||||||||
| Earnings per common share – assuming dilution | $ | 8.15 | $ | 2.46 | $ | 29.04 | $ | 2.27 | |||||||||||||||
Weighted-average common shares outstanding – assuming dilution (in millions) | 381 | 408 | 396 | 407 | |||||||||||||||||||
See Notes to Earnings Release Tables beginning on Table Page 19.
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 December 31, 2022 | |||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||
| Revenues from external customers | $ | 39,566 | $ | 1,066 | $ | 1,114 | $ | — | $ | 41,746 | |||||||||||||||||||
| Intersegment revenues | 32 | 528 | 233 | (793) | — | ||||||||||||||||||||||||
| Total revenues | 39,598 | 1,594 | 1,347 | (793) | 41,746 | ||||||||||||||||||||||||
| Cost of sales: | |||||||||||||||||||||||||||||
Cost of materials and other | 33,280 | 1,221 | 1,095 | (785) | 34,811 | ||||||||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 1,398 | 77 | 161 | 2 | 1,638 | ||||||||||||||||||||||||
Depreciation and amortization expense | 565 | 35 | 22 | — | 622 | ||||||||||||||||||||||||
| Total cost of sales | 35,243 | 1,333 | 1,278 | (783) | 37,071 | ||||||||||||||||||||||||
Asset impairment loss (d) | — | — | 61 | — | 61 | ||||||||||||||||||||||||
| Other operating expenses | 25 | — | 1 | — | 26 | ||||||||||||||||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) | — | — | — | 282 | 282 | ||||||||||||||||||||||||
| Depreciation and amortization expense | — | — | — | 11 | 11 | ||||||||||||||||||||||||
| Operating income by segment | $ | 4,330 | $ | 261 | $ | 7 | $ | (303) | $ | 4,295 | |||||||||||||||||||
| Three months ended December 31, 2021 | |||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||
Revenues from external customers | $ | 33,521 | $ | 684 | $ | 1,698 | $ | — | $ | 35,903 | |||||||||||||||||||
Intersegment revenues | 7 | 253 | 174 | (434) | — | ||||||||||||||||||||||||
Total revenues | 33,528 | 937 | 1,872 | (434) | 35,903 | ||||||||||||||||||||||||
| Cost of sales: | |||||||||||||||||||||||||||||
Cost of materials and other (a) | 30,342 | 714 | 1,224 | (431) | 31,849 | ||||||||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 1,358 | 48 | 153 | (1) | 1,558 | ||||||||||||||||||||||||
Depreciation and amortization expense | 543 | 23 | 20 | — | 586 | ||||||||||||||||||||||||
Total cost of sales | 32,243 | 785 | 1,397 | (432) | 33,993 | ||||||||||||||||||||||||
| Other operating expenses | 15 | 2 | 1 | — | 18 | ||||||||||||||||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) | — | — | — | 286 | 286 | ||||||||||||||||||||||||
| Depreciation and amortization expense | — | — | — | 12 | 12 | ||||||||||||||||||||||||
| Operating income by segment | $ | 1,270 | $ | 150 | $ | 474 | $ | (300) | $ | 1,594 | |||||||||||||||||||
See Operating Highlights by Segment beginning on Table Page 10.
See Notes to Earnings Release Tables beginning on Table Page 19.
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 | |||||||||||||||||||||||||
| Year ended December 31, 2022 | |||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||
| Revenues from external customers | $ | 168,154 | $ | 3,483 | $ | 4,746 | $ | — | $ | 176,383 | |||||||||||||||||||
| Intersegment revenues | 56 | 2,018 | 740 | (2,814) | — | ||||||||||||||||||||||||
| Total revenues | 168,210 | 5,501 | 5,486 | (2,814) | 176,383 | ||||||||||||||||||||||||
| Cost of sales: | |||||||||||||||||||||||||||||
Cost of materials and other (a) | 144,588 | 4,350 | 4,628 | (2,796) | 150,770 | ||||||||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 5,509 | 255 | 625 | — | 6,389 | ||||||||||||||||||||||||
Depreciation and amortization expense (c) | 2,247 | 122 | 59 | — | 2,428 | ||||||||||||||||||||||||
| Total cost of sales | 152,344 | 4,727 | 5,312 | (2,796) | 159,587 | ||||||||||||||||||||||||
Asset impairment loss (d) | — | — | 61 | — | 61 | ||||||||||||||||||||||||
| Other operating expenses | 63 | — | 3 | — | 66 | ||||||||||||||||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) (e) | — | — | — | 934 | 934 | ||||||||||||||||||||||||
| Depreciation and amortization expense | — | — | — | 45 | 45 | ||||||||||||||||||||||||
| Operating income by segment | $ | 15,803 | $ | 774 | $ | 110 | $ | (997) | $ | 15,690 | |||||||||||||||||||
| Year ended December 31, 2021 | |||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||
Revenues from external customers | $ | 106,947 | $ | 1,874 | $ | 5,156 | $ | — | $ | 113,977 | |||||||||||||||||||
Intersegment revenues | 14 | 468 | 433 | (915) | — | ||||||||||||||||||||||||
Total revenues | 106,961 | 2,342 | 5,589 | (915) | 113,977 | ||||||||||||||||||||||||
| Cost of sales: | |||||||||||||||||||||||||||||
Cost of materials and other (a) (b) | 97,759 | 1,438 | 4,428 | (911) | 102,714 | ||||||||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) (b) | 5,088 | 134 | 556 | (2) | 5,776 | ||||||||||||||||||||||||
Depreciation and amortization expense (c) | 2,169 | 58 | 131 | — | 2,358 | ||||||||||||||||||||||||
Total cost of sales | 105,016 | 1,630 | 5,115 | (913) | 110,848 | ||||||||||||||||||||||||
| Other operating expenses | 83 | 3 | 1 | — | 87 | ||||||||||||||||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) | — | — | — | 865 | 865 | ||||||||||||||||||||||||
| Depreciation and amortization expense | — | — | — | 47 | 47 | ||||||||||||||||||||||||
| Operating income by segment | $ | 1,862 | $ | 709 | $ | 473 | $ | (914) | $ | 2,130 | |||||||||||||||||||
See Operating Highlights by Segment beginning on Table Page 10.
See Notes to Earnings Release Tables beginning on Table Page 19.
Table Page 3
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP (h)
(millions of dollars)
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
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 | $ | 3,113 | $ | 1,009 | $ | 11,528 | $ | 930 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
Modification of renewable volume obligation (RVO) (a) | — | (220) | (104) | (1) | |||||||||||||||||||
| Income tax expense related to modification of RVO | — | 49 | 23 | — | |||||||||||||||||||
Modification of RVO, net of taxes | — | (171) | (81) | (1) | |||||||||||||||||||
Gain on sale of ethanol plant (c) | — | — | (23) | — | |||||||||||||||||||
| Income tax expense related to gain on sale of ethanol plant | — | — | 5 | — | |||||||||||||||||||
| Gain on sale of ethanol plant, net of taxes | — | — | (18) | — | |||||||||||||||||||
Asset impairment loss (d) | 61 | — | 61 | — | |||||||||||||||||||
| Income tax benefit related to asset impairment loss | (14) | — | (14) | — | |||||||||||||||||||
Asset impairment loss, net of taxes | 47 | — | 47 | — | |||||||||||||||||||
Environmental reserve adjustment (e) | — | — | 20 | — | |||||||||||||||||||
| Income tax benefit related to environmental reserve adjustment | — | — | (5) | — | |||||||||||||||||||
Environmental reserve adjustment, net of taxes | — | — | 15 | — | |||||||||||||||||||
Pension settlement charge (f) | 58 | — | 58 | — | |||||||||||||||||||
| Income tax benefit related to pension settlement charge | (13) | — | (13) | — | |||||||||||||||||||
| Pension settlement charge, net of taxes | 45 | — | 45 | — | |||||||||||||||||||
Loss (gain) on early redemption and retirement of debt (f) | (38) | 193 | (14) | 193 | |||||||||||||||||||
Income tax (benefit) expense related to loss (gain) on early redemption and retirement of debt | 9 | (43) | 3 | (43) | |||||||||||||||||||
Loss (gain) on early redemption and retirement of debt, net of taxes | (29) | 150 | (11) | 150 | |||||||||||||||||||
Foreign withholding tax (g) | 51 | — | 51 | — | |||||||||||||||||||
Change in estimated useful life of ethanol plant (c) | — | — | — | 48 | |||||||||||||||||||
Income tax benefit related to the change in estimated useful life of ethanol plant | — | — | — | (11) | |||||||||||||||||||
Change in estimated useful life of ethanol plant, net of taxes | — | — | — | 37 | |||||||||||||||||||
Gain on sale of MVP interest (f) | — | — | — | (62) | |||||||||||||||||||
| Income tax expense related to gain on sale of MVP interest | — | — | — | 14 | |||||||||||||||||||
| Gain on sale of MVP interest, net of taxes | — | — | — | (48) | |||||||||||||||||||
Diamond Pipeline asset impairment loss (f) | — | — | — | 24 | |||||||||||||||||||
Income tax benefit related to Diamond Pipeline asset impairment loss | — | — | — | (5) | |||||||||||||||||||
| Diamond Pipeline asset impairment loss, net of taxes | — | — | — | 19 | |||||||||||||||||||
Income tax expense related to changes in statutory tax rates (g) | — | — | — | 64 | |||||||||||||||||||
| Total adjustments | 114 | (21) | 48 | 221 | |||||||||||||||||||
Adjusted net income attributable to Valero Energy Corporation stockholders | $ | 3,227 | $ | 988 | $ | 11,576 | $ | 1,151 | |||||||||||||||
See Notes to Earnings Release Tables beginning on Table Page 19.
Table Page 4
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP (h)
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Reconciliation of earnings per common share – assuming dilution to adjusted earnings per common share – assuming dilution | |||||||||||||||||||||||
| Earnings per common share – assuming dilution | $ | 8.15 | $ | 2.46 | $ | 29.04 | $ | 2.27 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
Modification of RVO (a) | — | (0.42) | (0.20) | — | |||||||||||||||||||
Gain on sale of ethanol plant (c) | — | — | (0.05) | — | |||||||||||||||||||
Asset impairment loss (d) | 0.13 | — | 0.12 | — | |||||||||||||||||||
Environmental reserve adjustment (e) | — | — | 0.04 | — | |||||||||||||||||||
Pension settlement charge (f) | 0.12 | — | 0.11 | — | |||||||||||||||||||
Loss (gain) on early redemption and retirement of debt (f) | (0.08) | 0.37 | (0.03) | 0.37 | |||||||||||||||||||
Foreign withholding tax (g) | 0.13 | — | 0.13 | — | |||||||||||||||||||
Change in estimated useful life of ethanol plant (c) | — | — | — | 0.09 | |||||||||||||||||||
Gain on sale of MVP interest (f) | — | — | — | (0.12) | |||||||||||||||||||
Diamond Pipeline asset impairment loss (f) | — | — | — | 0.04 | |||||||||||||||||||
Income tax expense related to changes in statutory tax rates (g) | — | — | — | 0.16 | |||||||||||||||||||
| Total adjustments | 0.30 | (0.05) | 0.12 | 0.54 | |||||||||||||||||||
| Adjusted earnings per common share – assuming dilution | $ | 8.45 | $ | 2.41 | $ | 29.16 | $ | 2.81 | |||||||||||||||
See Notes to Earnings Release Tables beginning on Table Page 19.
Table Page 5
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP (h)
(millions of dollars)
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
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 | $ | 4,330 | $ | 1,270 | $ | 15,803 | $ | 1,862 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
Modification of RVO (a) | — | (220) | (104) | (1) | |||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) (b) | 1,398 | 1,358 | 5,509 | 5,088 | |||||||||||||||||||
| Depreciation and amortization expense | 565 | 543 | 2,247 | 2,169 | |||||||||||||||||||
| Other operating expenses | 25 | 15 | 63 | 83 | |||||||||||||||||||
| Refining margin | $ | 6,318 | $ | 2,966 | $ | 23,518 | $ | 9,201 | |||||||||||||||
| Refining operating income | $ | 4,330 | $ | 1,270 | $ | 15,803 | $ | 1,862 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
Modification of RVO (a) | — | (220) | (104) | (1) | |||||||||||||||||||
| Other operating expenses | 25 | 15 | 63 | 83 | |||||||||||||||||||
| Adjusted Refining operating income | $ | 4,355 | $ | 1,065 | $ | 15,762 | $ | 1,944 | |||||||||||||||
| Renewable Diesel segment | |||||||||||||||||||||||
| Renewable Diesel operating income | $ | 261 | $ | 150 | $ | 774 | $ | 709 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 77 | 48 | 255 | 134 | |||||||||||||||||||
| Depreciation and amortization expense | 35 | 23 | 122 | 58 | |||||||||||||||||||
| Other operating expenses | — | 2 | — | 3 | |||||||||||||||||||
| Renewable Diesel margin | $ | 373 | $ | 223 | $ | 1,151 | $ | 904 | |||||||||||||||
| Renewable Diesel operating income | $ | 261 | $ | 150 | $ | 774 | $ | 709 | |||||||||||||||
| Adjustment: Other operating expenses | — | 2 | — | 3 | |||||||||||||||||||
| Adjusted Renewable Diesel operating income | $ | 261 | $ | 152 | $ | 774 | $ | 712 | |||||||||||||||
See Notes to Earnings Release Tables beginning on Table Page 19.
Table Page 6
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP (h)
(millions of dollars)
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Reconciliation of operating income by segment to segment margin, and reconciliation of operating income by segment to adjusted operating income by segment (continued) | |||||||||||||||||||||||
| Ethanol segment | |||||||||||||||||||||||
| Ethanol operating income | $ | 7 | $ | 474 | $ | 110 | $ | 473 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) (b) | 161 | 153 | 625 | 556 | |||||||||||||||||||
Depreciation and amortization expense (c) | 22 | 20 | 59 | 131 | |||||||||||||||||||
Asset impairment loss (d) | 61 | — | 61 | — | |||||||||||||||||||
| Other operating expenses | 1 | 1 | 3 | 1 | |||||||||||||||||||
| Ethanol margin | $ | 252 | $ | 648 | $ | 858 | $ | 1,161 | |||||||||||||||
| Ethanol operating income | $ | 7 | $ | 474 | $ | 110 | $ | 473 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
Gain on sale of ethanol plant (c) | — | — | (23) | — | |||||||||||||||||||
Asset impairment loss (d) | 61 | — | 61 | — | |||||||||||||||||||
Change in estimated useful life of ethanol plant (c) | — | — | — | 48 | |||||||||||||||||||
| Other operating expenses | 1 | 1 | 3 | 1 | |||||||||||||||||||
| Adjusted Ethanol operating income | $ | 69 | $ | 475 | $ | 151 | $ | 522 | |||||||||||||||
See Notes to Earnings Release Tables beginning on Table Page 19.
Table Page 7
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP (h)
(millions of dollars)
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
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) (i) | |||||||||||||||||||||||
| U.S. Gulf Coast region | |||||||||||||||||||||||
| Refining operating income | $ | 2,629 | $ | 843 | $ | 9,096 | $ | 831 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
Modification of RVO (a) | — | (158) | (74) | (1) | |||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) (b) | 774 | 748 | 3,113 | 3,027 | |||||||||||||||||||
| Depreciation and amortization expense | 346 | 328 | 1,369 | 1,326 | |||||||||||||||||||
| Other operating expenses | 19 | 12 | 48 | 70 | |||||||||||||||||||
| Refining margin | $ | 3,768 | $ | 1,773 | $ | 13,552 | $ | 5,253 | |||||||||||||||
| Refining operating income | $ | 2,629 | $ | 843 | $ | 9,096 | $ | 831 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
Modification of RVO (a) | — | (158) | (74) | (1) | |||||||||||||||||||
| Other operating expenses | 19 | 12 | 48 | 70 | |||||||||||||||||||
| Adjusted Refining operating income | $ | 2,648 | $ | 697 | $ | 9,070 | $ | 900 | |||||||||||||||
| U.S. Mid-Continent region | |||||||||||||||||||||||
| Refining operating income | $ | 551 | $ | 204 | $ | 2,252 | $ | 528 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
Modification of RVO (a) | — | (39) | (19) | — | |||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) (b) | 191 | 190 | 772 | 713 | |||||||||||||||||||
| Depreciation and amortization expense | 84 | 82 | 335 | 335 | |||||||||||||||||||
| Other operating expenses | 1 | 1 | 1 | 11 | |||||||||||||||||||
| Refining margin | $ | 827 | $ | 438 | $ | 3,341 | $ | 1,587 | |||||||||||||||
| Refining operating income | $ | 551 | $ | 204 | $ | 2,252 | $ | 528 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
Modification of RVO (a) | — | (39) | (19) | — | |||||||||||||||||||
| Other operating expenses | 1 | 1 | 1 | 11 | |||||||||||||||||||
| Adjusted Refining operating income | $ | 552 | $ | 166 | $ | 2,234 | $ | 539 | |||||||||||||||
See Notes to Earnings Release Tables beginning on Table Page 19.
Table Page 8
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP (h)
(millions of dollars)
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
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) (i) (continued) | |||||||||||||||||||||||
| North Atlantic region | |||||||||||||||||||||||
| Refining operating income | $ | 1,091 | $ | 265 | $ | 3,384 | $ | 558 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 192 | 195 | 816 | 671 | |||||||||||||||||||
| Depreciation and amortization expense | 62 | 68 | 259 | 247 | |||||||||||||||||||
| Other operating expenses | 2 | 1 | 11 | 1 | |||||||||||||||||||
| Refining margin | $ | 1,347 | $ | 529 | $ | 4,470 | $ | 1,477 | |||||||||||||||
| Refining operating income | $ | 1,091 | $ | 265 | $ | 3,384 | $ | 558 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Other operating expenses | 2 | 1 | 11 | 1 | |||||||||||||||||||
| Adjusted Refining operating income | $ | 1,093 | $ | 266 | $ | 3,395 | $ | 559 | |||||||||||||||
| U.S. West Coast region | |||||||||||||||||||||||
| Refining operating income (loss) | $ | 59 | $ | (42) | $ | 1,071 | $ | (55) | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
Modification of RVO (a) | — | (23) | (11) | — | |||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 241 | 225 | 808 | 677 | |||||||||||||||||||
| Depreciation and amortization expense | 73 | 65 | 284 | 261 | |||||||||||||||||||
| Other operating expenses | 3 | 1 | 3 | 1 | |||||||||||||||||||
| Refining margin | $ | 376 | $ | 226 | $ | 2,155 | $ | 884 | |||||||||||||||
| Refining operating income (loss) | $ | 59 | $ | (42) | $ | 1,071 | $ | (55) | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
Modification of RVO (a) | — | (23) | (11) | — | |||||||||||||||||||
| Other operating expenses | 3 | 1 | 3 | 1 | |||||||||||||||||||
| Adjusted Refining operating income (loss) | $ | 62 | $ | (64) | $ | 1,063 | $ | (54) | |||||||||||||||
See Notes to Earnings Release Tables beginning on Table Page 19.
Table Page 9
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
REFINING SEGMENT OPERATING HIGHLIGHTS
(millions of dollars, except per barrel amounts)
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Throughput volumes (thousand barrels per day) | |||||||||||||||||||||||
| Feedstocks: | |||||||||||||||||||||||
| Heavy sour crude oil | 343 | 340 | 343 | 338 | |||||||||||||||||||
| Medium/light sour crude oil | 338 | 300 | 413 | 296 | |||||||||||||||||||
| Sweet crude oil | 1,578 | 1,621 | 1,474 | 1,448 | |||||||||||||||||||
| Residuals | 218 | 241 | 222 | 240 | |||||||||||||||||||
| Other feedstocks | 110 | 138 | 114 | 123 | |||||||||||||||||||
| Total feedstocks | 2,587 | 2,640 | 2,566 | 2,445 | |||||||||||||||||||
| Blendstocks and other | 455 | 393 | 387 | 342 | |||||||||||||||||||
| Total throughput volumes | 3,042 | 3,033 | 2,953 | 2,787 | |||||||||||||||||||
| Yields (thousand barrels per day) | |||||||||||||||||||||||
| Gasolines and blendstocks | 1,501 | 1,533 | 1,451 | 1,403 | |||||||||||||||||||
| Distillates | 1,153 | 1,126 | 1,118 | 1,028 | |||||||||||||||||||
Other products (j) | 410 | 403 | 409 | 387 | |||||||||||||||||||
| Total yields | 3,064 | 3,062 | 2,978 | 2,818 | |||||||||||||||||||
Operating statistics (b) (h) (k) | |||||||||||||||||||||||
| Refining margin (from Table Page 6) | $ | 6,318 | $ | 2,966 | $ | 23,518 | $ | 9,201 | |||||||||||||||
| Adjusted Refining operating income (from Table Page 6) | $ | 4,355 | $ | 1,065 | $ | 15,762 | $ | 1,944 | |||||||||||||||
| Throughput volumes (thousand barrels per day) | 3,042 | 3,033 | 2,953 | 2,787 | |||||||||||||||||||
| Refining margin per barrel of throughput | $ | 22.58 | $ | 10.63 | $ | 21.82 | $ | 9.04 | |||||||||||||||
| Less: | |||||||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput | 5.00 | 4.86 | 5.11 | 5.00 | |||||||||||||||||||
Depreciation and amortization expense per barrel of throughput | 2.02 | 1.95 | 2.09 | 2.13 | |||||||||||||||||||
Adjusted Refining operating income per barrel of throughput | $ | 15.56 | $ | 3.82 | $ | 14.62 | $ | 1.91 | |||||||||||||||
See Notes to Earnings Release Tables beginning on Table Page 19.
Table Page 10
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RENEWABLE DIESEL SEGMENT OPERATING HIGHLIGHTS
(millions of dollars, except per gallon amounts)
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Operating statistics (h) (k) | |||||||||||||||||||||||
| Renewable Diesel margin (from Table Page 6) | $ | 373 | $ | 223 | $ | 1,151 | $ | 904 | |||||||||||||||
| Adjusted Renewable Diesel operating income (from Table Page 6) | $ | 261 | $ | 152 | $ | 774 | $ | 712 | |||||||||||||||
| Sales volumes (thousand gallons per day) | 2,443 | 1,592 | 2,175 | 1,014 | |||||||||||||||||||
| Renewable Diesel margin per gallon of sales | $ | 1.66 | $ | 1.52 | $ | 1.45 | $ | 2.44 | |||||||||||||||
| Less: | |||||||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) per gallon of sales | 0.34 | 0.33 | 0.32 | 0.36 | |||||||||||||||||||
| Depreciation and amortization expense per gallon of sales | 0.16 | 0.15 | 0.15 | 0.16 | |||||||||||||||||||
| Adjusted Renewable Diesel operating income per gallon of sales | $ | 1.16 | $ | 1.04 | $ | 0.98 | $ | 1.92 | |||||||||||||||
See Notes to Earnings Release Tables beginning on Table Page 19.
Table Page 11
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
ETHANOL SEGMENT OPERATING HIGHLIGHTS
(millions of dollars, except per gallon amounts)
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Operating statistics (b) (h) (k) | |||||||||||||||||||||||
| Ethanol margin (from Table Page 7) | $ | 252 | $ | 648 | $ | 858 | $ | 1,161 | |||||||||||||||
| Adjusted Ethanol operating income (from Table Page 7) | $ | 69 | $ | 475 | $ | 151 | $ | 522 | |||||||||||||||
| Production volumes (thousand gallons per day) | 4,062 | 4,402 | 3,866 | 3,949 | |||||||||||||||||||
| Ethanol margin per gallon of production | $ | 0.67 | $ | 1.60 | $ | 0.61 | $ | 0.81 | |||||||||||||||
| Less: | |||||||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) per gallon of production | 0.43 | 0.38 | 0.44 | 0.39 | |||||||||||||||||||
Depreciation and amortization expense per gallon of production (c) | 0.05 | 0.05 | 0.04 | 0.09 | |||||||||||||||||||
Gain on sale of ethanol plant per gallon of production (c) | — | — | 0.02 | — | |||||||||||||||||||
Change in estimated useful life of ethanol plant per gallon of production (c) | — | — | — | (0.03) | |||||||||||||||||||
| Adjusted Ethanol operating income per gallon of production | $ | 0.19 | $ | 1.17 | $ | 0.11 | $ | 0.36 | |||||||||||||||
See Notes to Earnings Release Tables beginning on Table Page 19.
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 December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Operating statistics by region (i) | |||||||||||||||||||||||
U.S. Gulf Coast region (b) (h) (k) | |||||||||||||||||||||||
| Refining margin (from Table Page 8) | $ | 3,768 | $ | 1,773 | $ | 13,552 | $ | 5,253 | |||||||||||||||
| Adjusted Refining operating income (from Table Page 8) | $ | 2,648 | $ | 697 | $ | 9,070 | $ | 900 | |||||||||||||||
| Throughput volumes (thousand barrels per day) | 1,806 | 1,796 | 1,766 | 1,673 | |||||||||||||||||||
| Refining margin per barrel of throughput | $ | 22.68 | $ | 10.73 | $ | 21.02 | $ | 8.60 | |||||||||||||||
| Less: | |||||||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput | 4.66 | 4.53 | 4.83 | 4.96 | |||||||||||||||||||
Depreciation and amortization expense per barrel of throughput | 2.09 | 1.98 | 2.12 | 2.16 | |||||||||||||||||||
Adjusted Refining operating income per barrel of throughput | $ | 15.93 | $ | 4.22 | $ | 14.07 | $ | 1.48 | |||||||||||||||
U.S. Mid-Continent region (b) (h) (k) | |||||||||||||||||||||||
| Refining margin (from Table Page 8) | $ | 827 | $ | 438 | $ | 3,341 | $ | 1,587 | |||||||||||||||
| Adjusted Refining operating income (from Table Page 8) | $ | 552 | $ | 166 | $ | 2,234 | $ | 539 | |||||||||||||||
| Throughput volumes (thousand barrels per day) | 477 | 486 | 447 | 453 | |||||||||||||||||||
| Refining margin per barrel of throughput | $ | 18.84 | $ | 9.78 | $ | 20.49 | $ | 9.59 | |||||||||||||||
| Less: | |||||||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput | 4.35 | 4.25 | 4.74 | 4.31 | |||||||||||||||||||
Depreciation and amortization expense per barrel of throughput | 1.92 | 1.84 | 2.06 | 2.03 | |||||||||||||||||||
Adjusted Refining operating income per barrel of throughput | $ | 12.57 | $ | 3.69 | $ | 13.69 | $ | 3.25 | |||||||||||||||
See Notes to Earnings Release Tables beginning on Table Page 19.
Table Page 13
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION
(millions of dollars, except per barrel amounts)
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Operating statistics by region (i) (continued) | |||||||||||||||||||||||
North Atlantic region (h) (k) | |||||||||||||||||||||||
| Refining margin (from Table Page 9) | $ | 1,347 | $ | 529 | $ | 4,470 | $ | 1,477 | |||||||||||||||
| Adjusted Refining operating income (from Table Page 9) | $ | 1,093 | $ | 266 | $ | 3,395 | $ | 559 | |||||||||||||||
| Throughput volumes (thousand barrels per day) | 494 | 492 | 485 | 413 | |||||||||||||||||||
| Refining margin per barrel of throughput | $ | 29.66 | $ | 11.69 | $ | 25.25 | $ | 9.81 | |||||||||||||||
| Less: | |||||||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput | 4.23 | 4.29 | 4.61 | 4.46 | |||||||||||||||||||
Depreciation and amortization expense per barrel of throughput | 1.35 | 1.51 | 1.46 | 1.64 | |||||||||||||||||||
Adjusted Refining operating income per barrel of throughput | $ | 24.08 | $ | 5.89 | $ | 19.18 | $ | 3.71 | |||||||||||||||
U.S. West Coast region (h) (k) | |||||||||||||||||||||||
| Refining margin (from Table Page 9) | $ | 376 | $ | 226 | $ | 2,155 | $ | 884 | |||||||||||||||
| Adjusted Refining operating income (loss) (from Table Page 9) | $ | 62 | $ | (64) | $ | 1,063 | $ | (54) | |||||||||||||||
| Throughput volumes (thousand barrels per day) | 265 | 259 | 255 | 248 | |||||||||||||||||||
| Refining margin per barrel of throughput | $ | 15.43 | $ | 9.52 | $ | 23.15 | $ | 9.75 | |||||||||||||||
| Less: | |||||||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput | 9.87 | 9.45 | 8.68 | 7.46 | |||||||||||||||||||
Depreciation and amortization expense per barrel of throughput | 3.00 | 2.73 | 3.05 | 2.89 | |||||||||||||||||||
Adjusted Refining operating income (loss) per barrel of throughput | $ | 2.56 | $ | (2.66) | $ | 11.42 | $ | (0.60) | |||||||||||||||
See Notes to Earnings Release Tables beginning on Table Page 19.
Table Page 14
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Refining | |||||||||||||||||||||||
| Feedstocks (dollars per barrel) | |||||||||||||||||||||||
| Brent crude oil | $ | 88.81 | $ | 79.85 | $ | 98.86 | $ | 70.79 | |||||||||||||||
| Brent less West Texas Intermediate (WTI) crude oil | 5.96 | 2.49 | 4.43 | 2.83 | |||||||||||||||||||
| Brent less WTI Houston crude oil | 4.45 | 1.55 | 2.82 | 1.91 | |||||||||||||||||||
| Brent less Dated Brent crude oil | (0.11) | (0.05) | (2.22) | 0.03 | |||||||||||||||||||
| Brent less Alaska North Slope (ANS) crude oil | 0.82 | 0.03 | 0.06 | 0.35 | |||||||||||||||||||
| Brent less Argus Sour Crude Index crude oil | 9.91 | 4.83 | 7.42 | 3.92 | |||||||||||||||||||
| Brent less Maya crude oil | 17.21 | 8.07 | 11.68 | 6.48 | |||||||||||||||||||
| Brent less Western Canadian Select Houston crude oil | 22.51 | 9.31 | 15.55 | 7.40 | |||||||||||||||||||
| WTI crude oil | 82.85 | 77.36 | 94.43 | 67.97 | |||||||||||||||||||
| Natural gas (dollars per million British Thermal Units) | 4.46 | 4.54 | 5.83 | 7.85 | |||||||||||||||||||
| Products (dollars per barrel) | |||||||||||||||||||||||
| U.S. Gulf Coast: | |||||||||||||||||||||||
Conventional Blendstock of Oxygenate Blending (CBOB) gasoline less Brent | 8.21 | 13.20 | 17.26 | 13.66 | |||||||||||||||||||
| Ultra-low-sulfur (ULS) diesel less Brent | 52.78 | 17.68 | 46.45 | 13.75 | |||||||||||||||||||
| Propylene less Brent | (56.82) | (18.59) | (42.73) | (6.43) | |||||||||||||||||||
| U.S. Mid-Continent: | |||||||||||||||||||||||
| CBOB gasoline less WTI | 14.92 | 13.86 | 23.60 | 17.36 | |||||||||||||||||||
| ULS diesel less WTI | 59.53 | 19.79 | 51.83 | 18.70 | |||||||||||||||||||
| North Atlantic: | |||||||||||||||||||||||
| CBOB gasoline less Brent | 20.29 | 17.80 | 26.96 | 16.89 | |||||||||||||||||||
| ULS diesel less Brent | 73.03 | 20.36 | 57.01 | 15.91 | |||||||||||||||||||
| U.S. West Coast: | |||||||||||||||||||||||
California Reformulated Gasoline Blendstock of Oxygenate Blending (CARBOB) 87 gasoline less ANS | 24.82 | 27.44 | 39.10 | 24.17 | |||||||||||||||||||
| California Air Resources Board (CARB) diesel less ANS | 54.10 | 22.44 | 48.75 | 17.60 | |||||||||||||||||||
| CARBOB 87 gasoline less WTI | 29.96 | 29.90 | 43.47 | 26.64 | |||||||||||||||||||
| CARB diesel less WTI | 59.24 | 24.90 | 53.12 | 20.08 | |||||||||||||||||||
See Notes to Earnings Release Tables beginning on Table Page 19.
Table Page 15
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Renewable Diesel | |||||||||||||||||||||||
New York Mercantile Exchange ULS diesel (dollars per gallon) | $ | 3.55 | $ | 2.39 | $ | 3.54 | $ | 2.07 | |||||||||||||||
Biodiesel Renewable Identification Number (RIN) (dollars per RIN) | 1.82 | 1.49 | 1.67 | 1.49 | |||||||||||||||||||
| California Low-Carbon Fuel Standard (dollars per metric ton) | 65.78 | 155.24 | 98.73 | 177.78 | |||||||||||||||||||
Chicago Board of Trade (CBOT) soybean oil (dollars per pound) | 0.70 | 0.58 | 0.71 | 0.58 | |||||||||||||||||||
| Ethanol | |||||||||||||||||||||||
| CBOT corn (dollars per bushel) | 6.69 | 5.67 | 6.94 | 5.80 | |||||||||||||||||||
| New York Harbor ethanol (dollars per gallon) | 2.48 | 3.43 | 2.57 | 2.49 | |||||||||||||||||||
See Notes to Earnings Release Tables beginning on Table Page 19.
Table Page 16
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
OTHER FINANCIAL DATA
(millions of dollars)
(unaudited)
| December 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| Balance sheet data | |||||||||||
| Current assets | $ | 24,133 | $ | 21,165 | |||||||
| Cash and cash equivalents included in current assets | 4,862 | 4,122 | |||||||||
| Inventories included in current assets | 6,752 | 6,265 | |||||||||
| Current liabilities | 17,461 | 16,851 | |||||||||
| Valero Energy Corporation stockholders’ equity | 23,561 | 18,430 | |||||||||
| Total equity | 25,468 | 19,817 | |||||||||
| Debt and finance lease obligations: | |||||||||||
| Debt – | |||||||||||
| Current portion of debt (excluding variable interest entities (VIEs)) | $ | — | $ | 300 | |||||||
| Debt, less current portion of debt (excluding VIEs) | 8,380 | 10,820 | |||||||||
| Total debt (excluding VIEs) | 8,380 | 11,120 | |||||||||
| Current portion of debt attributable to VIEs | 861 | 810 | |||||||||
| Debt, less current portion of debt attributable to VIEs | — | 20 | |||||||||
| Total debt attributable to VIEs | 861 | 830 | |||||||||
| Total debt | 9,241 | 11,950 | |||||||||
| Finance lease obligations – | |||||||||||
| Current portion of finance lease obligations (excluding VIEs) | 184 | 141 | |||||||||
| Finance lease obligations, less current portion (excluding VIEs) | 1,453 | 1,502 | |||||||||
| Total finance lease obligations (excluding VIEs) | 1,637 | 1,643 | |||||||||
| Current portion of finance lease obligations attributable to VIEs | 64 | 13 | |||||||||
| Finance lease obligations, less current portion attributable to VIEs | 693 | 264 | |||||||||
| Total finance lease obligations attributable to VIEs | 757 | 277 | |||||||||
| Total finance lease obligations | 2,394 | 1,920 | |||||||||
| Total debt and finance lease obligations | $ | 11,635 | $ | 13,870 | |||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Reconciliation of net cash provided by operating activities to adjusted net cash provided by operating activities (h) | |||||||||||||||||||||||
| Net cash provided by operating activities | $ | 4,096 | $ | 2,454 | $ | 12,574 | $ | 5,859 | |||||||||||||||
| Exclude: | |||||||||||||||||||||||
| Changes in current assets and current liabilities | (9) | 595 | (1,626) | 2,225 | |||||||||||||||||||
Diamond Green Diesel LLC’s (DGD) adjusted net cash provided by operating activities attributable to the other joint venture member’s ownership interest in DGD | 142 | 82 | 436 | 381 | |||||||||||||||||||
| Adjusted net cash provided by operating activities | $ | 3,963 | $ | 1,777 | $ | 13,764 | $ | 3,253 | |||||||||||||||
See Notes to Earnings Release Tables beginning on Table Page 19.
Table Page 17
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
OTHER FINANCIAL DATA
(millions of dollars, except per share amounts)
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Reconciliation of capital investments to capital investments attributable to Valero (h) | |||||||||||||||||||||||
| Capital expenditures (excluding VIEs) | $ | 236 | $ | 145 | $ | 788 | $ | 513 | |||||||||||||||
| Capital expenditures of VIEs: | |||||||||||||||||||||||
| DGD | 171 | 312 | 853 | 1,042 | |||||||||||||||||||
| Other VIEs | 10 | 51 | 40 | 110 | |||||||||||||||||||
Deferred turnaround and catalyst cost expenditures (excluding VIEs) | 210 | 243 | 1,030 | 787 | |||||||||||||||||||
Deferred turnaround and catalyst cost expenditures of DGD | 13 | — | 26 | 6 | |||||||||||||||||||
| Investments in nonconsolidated joint ventures | — | 1 | 1 | 9 | |||||||||||||||||||
| Capital investments | 640 | 752 | 2,738 | 2,467 | |||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
DGD’s capital investments attributable to the other joint venture member | (92) | (156) | (439) | (524) | |||||||||||||||||||
| Capital expenditures of other VIEs | (10) | (51) | (40) | (110) | |||||||||||||||||||
| Capital investments attributable to Valero | $ | 538 | $ | 545 | $ | 2,259 | $ | 1,833 | |||||||||||||||
| Dividends per common share | $ | 0.98 | $ | 0.98 | $ | 3.92 | $ | 3.92 | |||||||||||||||
| Year Ending December 31, 2023 | |||||
Reconciliation of expected total capital investments to expected capital investments attributable to Valero (h) | |||||
| Expected total capital investments | $ | 2,055 | |||
| Adjustment: | |||||
DGD’s capital investments attributable to the other joint venture member | (55) | ||||
| Expected capital investments attributable to Valero | $ | 2,000 | |||
See Notes to Earnings Release Tables beginning on Table Page 19.
Table Page 18
VALERO ENERGY CORPORATION
NOTES TO EARNINGS RELEASE TABLES
(a)Under the Renewable Fuel Standard program, the U.S. Environmental Protection Agency (EPA) is required to set annual quotas for the volume of renewable fuels that obligated parties, such as us, must blend into petroleum-based transportation fuels consumed in the U.S. The quotas are used to determine an obligated party’s renewable volume obligation (RVO). The EPA released a final rule on June 3, 2022 that, among other things, modified the volume standards for 2020 and, for the first time, established volume standards for 2021 and 2022.
In 2020, we recognized the cost of the RVO using the 2020 quotas set by the EPA at that time, and in 2021 and the three months ended March 31, 2022, we recognized the cost of the RVO using our estimates of the quotas. As a result of the final rule released by the EPA as noted above, we recognized a benefit of $104 million in June 2022 primarily related to the modification of the 2020 quotas. The impacts to the estimated cost of the RVO recognized by us in 2021 and the three months ended March 31, 2022 were not significant; however, there were impacts in the 2021 quarterly periods as follows: (i) benefit of $80 million for the three months ended March 31, 2021; (ii) benefit of $81 million for the three months ended June 30, 2021; (iii) benefit of $58 million for the three months ended September 30, 2021; and (iv) charge of $220 million related to the three months ended December 31, 2021, resulting in a charge of $1 million for the year ended December 31, 2021.
(b)In mid-February 2021, many of our refineries and plants were impacted to varying extents by the severe cold, utility disruptions, and higher energy costs arising out of Winter Storm Uri. The higher energy costs resulted from an increase in the prices of natural gas and electricity that significantly exceeded rates that we consider normal, such as the average rates we incurred the month preceding the storm. As a result, our operating income for the year ended December 31, 2021 includes estimated excess energy costs of $579 million ($1.15 per share).
The above-mentioned pre-tax estimated excess energy charge is reflected in our statement of income line items and attributable to our reportable segments for the year ended December 31, 2021 as follows (in millions):
| Refining | Renewable Diesel | Ethanol | Total | ||||||||||||||||||||
| Cost of materials and other | $ | 47 | $ | — | $ | — | $ | 47 | |||||||||||||||
Operating expenses (excluding depreciation and amortization expense) | 478 | — | 54 | 532 | |||||||||||||||||||
| Total estimated excess energy costs | $ | 525 | $ | — | $ | 54 | $ | 579 | |||||||||||||||
The estimated excess energy costs attributable to our Refining segment for the year ended December 31, 2021 are associated with the Refining segment regions as follows (in millions, except per barrel amounts):
| U.S. Gulf Coast | U.S. Mid- Continent | Other Regions Combined | Refining Segment | ||||||||||||||||||||
| Cost of materials and other | $ | 45 | $ | 2 | $ | — | $ | 47 | |||||||||||||||
Operating expenses (excluding depreciation and amortization expense) | 437 | ||||||||||||||||||||||