Valero Energy Reports 2024 Fourth Quarter and Full Year Results

Published: 2025-01-30 06:32:04 ET VLO

Reported net income attributable to Valero stockholders of $281 million, or $0.88 per share, for the fourth quarter and $2.8 billion, or $8.58 per share, for the year Reported adjusted net income attributable to Valero stockholders of $207 million, or $0.64 per share, for the fourth quarter and $2.7 billion, or $8.48 per share, for the year Returned $601 million to stockholders through dividends and stock buybacks in the fourth quarter and $4.3 billion in the year Increased quarterly cash dividend on common stock by 6 percent to $1.13 per share on January 16, 2025 Progressing with a Fluid Catalytic Cracking (FCC) Unit optimization project at the St. Charles Refinery

Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income attributable to Valero stockholders of $281 million, or $0.88 per share, for the fourth quarter of 2024, compared to $1.2 billion, or $3.55 per share, for the fourth quarter of 2023. Excluding the adjustment shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders was $207 million, or $0.64 per share, for the fourth quarter of 2024, compared to $1.2 billion, or $3.57 per share, for the fourth quarter of 2023.

For 2024, net income attributable to Valero stockholders was $2.8 billion, or $8.58 per share, compared to $8.8 billion, or $24.92 per share, in 2023. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders was $2.7 billion, or $8.48 per share, in 2024, compared to $8.9 billion, or $24.96 per share, in 2023.

Refining

The Refining segment reported operating income of $437 million for the fourth quarter of 2024, compared to $1.6 billion for the fourth quarter of 2023. Refining throughput volumes averaged 3.0 million barrels per day in the fourth quarter of 2024.

“2024 was our best year for personnel and process safety and one of our best years for environmental performance,” said Lane Riggs, Valero’s Chairman, Chief Executive Officer and President. “This is a testament to our long-standing commitment to safe, reliable and environmentally responsible operations.”

Renewable Diesel

The Renewable Diesel segment, which consists of the Diamond Green Diesel joint venture (DGD), reported $170 million of operating income for the fourth quarter of 2024, compared to $84 million for the fourth quarter of 2023. Segment sales volumes averaged 3.4 million gallons per day in the fourth quarter of 2024.

Ethanol

The Ethanol segment reported $20 million of operating income for the fourth quarter of 2024, compared to $190 million for the fourth quarter of 2023. Ethanol production volumes averaged 4.6 million gallons per day in the fourth quarter of 2024.

Corporate and Other

General and administrative expenses were $266 million in the fourth quarter of 2024 and $961 million for the year. The effective tax rate for 2024 was 19 percent.

Investing and Financing Activities

Net cash provided by operating activities was $1.1 billion in the fourth quarter of 2024. Included in this amount was $119 million of adjusted net cash provided by operating activities associated with the other joint venture member’s share of DGD. Excluding this item, adjusted net cash provided by operating activities was $951 million in the fourth quarter of 2024.

Net cash provided by operating activities in 2024 was $6.7 billion. Included in this amount was a $795 million favorable impact from working capital and $371 million of adjusted net cash provided by operating activities associated with the other joint venture member’s share of DGD. Excluding these items, adjusted net cash provided by operating activities in 2024 was $5.5 billion.

Capital investments totaled $547 million in the fourth quarter of 2024, of which $452 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 other variable interest entities, capital investments attributable to Valero were $515 million in the fourth quarter of 2024 and $1.9 billion for the year.

Valero returned $601 million to stockholders in the fourth quarter of 2024, of which $339 million was paid as dividends and $262 million was for the purchase of approximately 2.0 million shares of common stock, resulting in a payout ratio of 63 percent of adjusted net cash provided by operating activities. In 2024, Valero returned $4.3 billion to stockholders, or 78 percent of adjusted net cash provided by operating activities, consisting of $2.9 billion in stock buybacks and $1.4 billion in dividends. Valero defines payout ratio as the sum of dividends paid and the total cost of stock buybacks divided by adjusted net cash provided by operating activities.

On January 16, 2025, Valero announced an increase of its quarterly cash dividend on common stock from $1.07 per share to $1.13 per share, demonstrating its strong financial position.

“Our team continues to successfully execute a strategy underpinned by operational excellence, deploying capital with an uncompromising focus on returns, and honoring our commitment to stockholders,” said Riggs.

Liquidity and Financial Position

Valero ended 2024 with $8.1 billion of total debt, $2.4 billion of finance lease obligations, and $4.7 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 17 percent as of December 31, 2024.

Strategic Update

The Sustainable Aviation Fuel (SAF) project at the DGD Port Arthur plant was successfully completed in the fourth quarter of 2024 and is now fully operational, providing the plant the optionality to upgrade approximately 50 percent of its current 470 million gallon renewable diesel annual production capacity to be blended to SAF.

Valero is progressing with an FCC Unit optimization project at the St. Charles Refinery that will enable the refinery to increase the yield of high value products. The project is estimated to cost $230 million and is expected to be completed in 2026.

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 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 produces low-carbon fuels including renewable diesel and sustainable aviation fuel (SAF), with a production capacity of approximately 1.2 billion gallons per year in the U.S. Gulf Coast region. See our annual report on Form 10-K for more information on SAF. Valero also owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.7 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 and Finance, 210-345-3331 Gautam Srivastava, Director – 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 and the accompanying earnings release tables, or made during the conference call, 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,” “commitment,” “plans,” “forecast, “guidance” and other similar expressions identify forward-looking statements. Forward-looking statements in this release and the accompanying earnings release tables include, and those made on the conference call may include, statements relating to Valero’s low-carbon fuels strategy, expected timing, cost and performance of projects, future market and industry conditions, future operating and financial performance, future production and manufacturing ability and size, and management of future risks, among other matters. 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 and financial performance or the demand for Valero’s products. These factors also include, but are not limited to, the uncertainties that remain with respect to current or contemplated legal, political or regulatory developments that are adverse to or restrict refining and marketing operations, or that impose taxes or penalties on profits, windfalls, or margins above a certain level, global geopolitical and other conflicts and tensions, the impact of inflation on margins and costs, economic activity levels, and the adverse effects the foregoing may have on Valero’s business plan, strategy, operations and financial performance. 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 (loss), 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 definition of non-GAAP measures and a reconciliation to their most directly comparable GAAP measures. Note (d) to the earnings release tables provides reasons for the use of these non-GAAP financial measures.

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,

2024

2023

2024

2023

Statement of income data

Revenues

30,756

35,414

129,881

144,766

Cost of sales:

Cost of materials and other

27,926

31,267

116,516

123,087

Operating expenses (excluding depreciation and amortization expense reflected below)

1,514

1,594

5,831

6,089

Depreciation and amortization expense

687

679

2,729

2,658

Total cost of sales

30,127

33,540

125,076

131,834

Other operating expenses (a)

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

266

295

961

998

Depreciation and amortization expense

Operating income

348

1,553

3,755

11,858

Other income, net (b)

110

145

499

502

Interest and debt expense, net of capitalized interest

(135

)

(149

)

(556

)

(592

)

Income before income tax expense (benefit)

323

1,549

3,698

11,768

Income tax expense (benefit) (c)

(34

)

331

692

2,619

Net income

357

1,218

3,006

9,149

Less: Net income attributable to noncontrolling interests

236

314

Net income attributable to Valero Energy Corporation stockholders

281

1,202

2,770

8,835

Earnings per common share

0.89

3.55

8.58

24.93

Weighted-average common shares outstanding (in millions)

315

337

322

353

Earnings per common share – assuming dilution

0.88

3.55

8.58

24.92

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

316

338

322

353

See Notes to Earnings Release Tables.

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, 2024

Revenues:

Revenues from external customers

29,334

522

900

—

30,756

Intersegment revenues

724

214

(940

)

—

Total revenues

29,336

1,246

1,114

(940

)

30,756

Cost of sales:

Cost of materials and other

27,010

919

933

(936

)

27,926

Operating expenses (excluding depreciation and amortization expense reflected below)

1,287

141

)

1,514

Depreciation and amortization expense

598

—

687

Total cost of sales

28,895

1,076

1,094

(938

)

30,127

Other operating expenses

—

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

—

266

Depreciation and amortization expense

—

Operating income by segment

437

170

(279

)

348

Three months ended December 31, 2023

Revenues:

Revenues from external customers

33,546

833

1,035

—

35,414

Intersegment revenues

801

296

(1,107

)

—

Total revenues

33,556

1,634

1,331

(1,107

)

35,414

Cost of sales:

Cost of materials and other

30,003

1,407

973

(1,116

)

31,267

Operating expenses (excluding depreciation and amortization expense reflected below)

1,376

132

1,594

Depreciation and amortization expense

600

)

679

Total cost of sales

31,979

1,550

1,126

(1,115

)

33,540

Other operating expenses

—

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

—

295

Depreciation and amortization expense

—

Operating income by segment

1,577

190

(298

)

1,553

See Operating Highlights by Segment.

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, 2024

Revenues:

Revenues from external customers

123,853

2,410

3,618

—

129,881

Intersegment revenues

2,656

868

(3,534

)

—

Total revenues

123,863

5,066

4,486

(3,534

)

129,881

Cost of sales:

Cost of materials and other

112,538

3,944

3,558

(3,524

)

116,516

Operating expenses (excluding depreciation and amortization expense reflected below)

4,946

350

536

)

5,831

Depreciation and amortization expense

2,391

265

)

2,729

Total cost of sales

119,875

4,559

4,171

(3,529

)

125,076

Other operating expenses (a)

—

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

—

961

Depreciation and amortization expense

—

Operating income by segment

3,971

507

288

(1,011

)

3,755

Year ended December 31, 2023

Revenues:

Revenues from external customers

136,470

3,823

4,473

—

144,766

Intersegment revenues

3,168

1,086

(4,272

)

—

Total revenues

136,488

6,991

5,559

(4,272

)

144,766

Cost of sales:

Cost of materials and other

117,401

5,550

4,395

(4,259

)

123,087

Operating expenses (excluding depreciation and amortization expense reflected below)

5,208

358

515

6,089

Depreciation and amortization expense

2,351

231

)

2,658

Total cost of sales

124,960

6,139

4,990

(4,255

)

131,834

Other operating expenses

—

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

—

998

Depreciation and amortization expense

—

Operating income by segment

11,511

852

553

(1,058

)

11,858

See Operating Highlights by Segment.

See Notes to Earnings Release Tables.

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,

2024

2023

2024

2023

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

281

1,202

2,770

8,835

Adjustments:

Project liability adjustment (a)

—

Income tax benefit related to project liability adjustment

—

)

—

Project liability adjustment, net of taxes

—

Gain on early retirement of debt (b)

—

(11

)

Income tax expense related to gain on early retirement of debt

—

Gain on early retirement of debt, net of taxes

—

)

Second-generation biofuel tax credit (c)

(74

)

(53

)

Total adjustments

(74

)

(31

)

Adjusted net income attributable to Valero Energy Corporation stockholders

207

1,208

2,739

8,850

Reconciliation of earnings per common share – assuming dilution to adjusted earnings per common share – assuming dilution

Earnings per common share – assuming dilution

0.88

3.55

8.58

24.92

Adjustments:

Project liability adjustment (a)

—

0.07

—

Gain on early retirement of debt (b)

—

(0.02

)

Second-generation biofuel tax credit (c)

(0.24

)

0.02

(0.17

)

0.06

Total adjustments

(0.24

)

0.02

(0.10

)

0.04

Adjusted earnings per common share – assuming dilution

0.64

3.57

8.48

24.96

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS

REPORTED UNDER U.S. GAAP (d)

(millions of dollars)

(unaudited)

Three Months Ended December 31,

Year Ended December 31,

2024

2023

2024

2023

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

437

1,577

3,971

11,511

Adjustments:

Operating expenses (excluding depreciation and amortization expense reflected below)

1,287

1,376

4,946

5,208

Depreciation and amortization expense

598

600

2,391

2,351

Other operating expenses

—

Refining margin

2,326

3,553

11,325

19,087

Refining operating income

437

1,577

3,971

11,511

Adjustment: Other operating expenses

—

Adjusted Refining operating income

441

1,577

3,988

11,528

Renewable Diesel segment

Renewable Diesel operating income

170

507

852

Adjustments:

Operating expenses (excluding depreciation and amortization expense reflected below)

350

358

Depreciation and amortization expense

265

231

Renewable Diesel margin

327

227

1,122

1,441

Ethanol segment

Ethanol operating income

190

288

553

Adjustments:

Operating expenses (excluding depreciation and amortization expense reflected below)

141

132

536

515

Depreciation and amortization expense

Other operating expenses (a)

—

Ethanol margin

181

358

928

1,164

Ethanol operating income

190

288

553

Adjustment: Other operating expenses (a)

—

Adjusted Ethanol operating income

205

315

569

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS

REPORTED UNDER U.S. GAAP (d)

(millions of dollars)

(unaudited)

Three Months Ended December 31,

Year Ended December 31,

2024

2023

2024

2023

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) (e)

U.S. Gulf Coast region

Refining operating income

314

858

2,426

6,853

Adjustments:

Operating expenses (excluding depreciation and amortization expense reflected below)

719

716

2,744

2,837

Depreciation and amortization expense

375

377

1,495

1,459

Other operating expenses

—

Refining margin

1,412

1,951

6,677

11,160

Refining operating income

314

858

2,426

6,853

Adjustment: Other operating expenses

—

Adjusted Refining operating income

318

858

2,438

6,864

U.S. Mid-Continent region

Refining operating income

120

449

1,627

Adjustments:

Operating expenses (excluding depreciation and amortization expense reflected below)

194

197

753

766

Depreciation and amortization expense

333

334

Other operating expenses

—

Refining margin

303

401

1,538

2,727

Refining operating income

120

449

1,627

Adjustment: Other operating expenses

—

Adjusted Refining operating income

120

452

1,627

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS

REPORTED UNDER U.S. GAAP (d)

(millions of dollars)

(unaudited)

Three Months Ended December 31,

Year Ended December 31,

2024

2023

2024

2023

North Atlantic region

Refining operating income

233

579

1,162

2,131

Adjustments:

Operating expenses (excluding depreciation and amortization expense reflected below)

169

204

698

751

Depreciation and amortization expense

268

255

Other operating expenses

—

Refining margin

472

846

2,129

3,138

Refining operating income

233

579

1,162

2,131

Adjustment: Other operating expenses

—

Adjusted Refining operating income

233

579

1,163

2,132

U.S. West Coast region

Refining operating income (loss)

(140

)

(66

)

900

Adjustments:

Operating expenses (excluding depreciation and amortization expense reflected below)

205

259

751

854

Depreciation and amortization expense

295

303

Other operating expenses

—

Refining margin

139

355

981

2,062

Refining operating income (loss)

(140

)

(66

)

900

Adjustment: Other operating expenses

—

Adjusted Refining operating income (loss)

(140

)

(65

)

905

See Notes to Earnings Release Tables.

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,

2024

2023

2024

2023

Throughput volumes (thousand barrels per day)

Feedstocks:

Heavy sour crude oil

608

485

504

449

Medium/light sour crude oil

239

272

241

307

Sweet crude oil

1,508

1,517

1,501

1,496

Residuals

126

171

165

199

Other feedstocks

104

106

113

115

Total feedstocks

2,585

2,551

2,524

2,566

Blendstocks and other

410

444

388

413

Total throughput volumes

2,995

2,912

2,979

Yields (thousand barrels per day)

Gasolines and blendstocks

1,494

1,489

1,433

1,461

Distillates

1,141

1,128

1,103

1,126

Other products (f)

393

404

406

420

Total yields

3,028

3,021

2,942

3,007

Operating statistics (d) (g)

Refining margin

2,326

3,553

11,325

19,087

Adjusted Refining operating income

441

1,577

3,988

11,528

Throughput volumes (thousand barrels per day)

2,995

2,912

2,979

Refining margin per barrel of throughput

8.44

12.89

10.62

17.55

Less:

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

4.67

4.99

4.64

4.79

Depreciation and amortization expense per barrel of throughput

2.17

2.18

2.24

2.16

Adjusted Refining operating income per barrel of throughput

1.60

5.72

3.74

10.60

See Notes to Earnings Release Tables.

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,

2024

2023

2024

2023

Operating statistics (d) (g)

Renewable Diesel margin

327

227

1,122

1,441

Renewable Diesel operating income

170

507

852

Sales volumes (thousand gallons per day)

3,356

3,773

3,530

3,539

Renewable Diesel margin per gallon of sales

1.06

0.65

0.87

1.12

Less:

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

0.28

0.24

0.27

0.28

Depreciation and amortization expense per gallon of sales

0.23

0.17

0.21

0.18

Renewable Diesel operating income per gallon of sales

0.55

0.24

0.39

0.66

See Notes to Earnings Release Tables.

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,

2024

2023

2024

2023

Operating statistics (d) (g)

Ethanol margin

181

358

928

1,164

Adjusted Ethanol operating income

205

315

569

Production volumes (thousand gallons per day)

4,627

4,510

4,538

4,367

Ethanol margin per gallon of production

0.42

0.86

0.56

0.73

Less:

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

0.33

0.32

Depreciation and amortization expense per gallon of production

0.04

0.05

Adjusted Ethanol operating income per gallon of production

0.05

0.49

0.19

0.36

See Notes to Earnings Release Tables.

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,

2024

2023

2024

2023

Operating statistics by region (e)

U.S. Gulf Coast region (d) (g)

Refining margin

1,412

1,951

6,677

11,160

Adjusted Refining operating income

318

858

2,438

6,864

Throughput volumes (thousand barrels per day)

1,829

1,816

1,763

1,791

Refining margin per barrel of throughput

8.39

11.69

10.35

17.07

Less:

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

4.27

4.29

4.25

4.34

Depreciation and amortization expense per barrel of throughput

2.23

2.26

2.32

2.23

Adjusted Refining operating income per barrel of throughput

1.89

5.14

3.78

10.50

U.S. Mid-Continent region (d) (g)

Refining margin

303

401

1,538

2,727

Adjusted Refining operating income

120

452

1,627

Throughput volumes (thousand barrels per day)

473

462

445

461

Refining margin per barrel of throughput

6.97

9.42

9.44

16.20

Less:

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

4.47

4.62

4.55

Depreciation and amortization expense per barrel of throughput

1.81

1.99

2.05

1.98

Adjusted Refining operating income per barrel of throughput

0.69

2.81

2.77

9.67

See Notes to Earnings Release Tables.

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,

2024

2023

2024

2023

Operating statistics by region (e) (continued)

North Atlantic region (d) (g)

Refining margin

472

846

2,129

3,138

Adjusted Refining operating income

233

579

1,163

2,132

Throughput volumes (thousand barrels per day)

434

452

443

460

Refining margin per barrel of throughput

11.85

20.36

13.12

18.69

Less:

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

4.24

4.90

4.30

4.47

Depreciation and amortization expense per barrel of throughput

1.78

1.51

1.65

1.52

Adjusted Refining operating income per barrel of throughput

5.83

13.95

7.17

12.70

U.S. West Coast region (d) (g)

Refining margin

139

355

981

2,062

Adjusted Refining operating income (loss)

(140

)

(65

)

905

Throughput volumes (thousand barrels per day)

259

265

261

267

Refining margin per barrel of throughput

5.80

14.51

10.26

21.15

Less:

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

8.60

10.60

7.86

8.76

Depreciation and amortization expense per barrel of throughput

3.09

3.10

3.08

3.11

Adjusted Refining operating income (loss) per barrel of throughput

(5.89

)

0.81

(0.68

)

9.28

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS

(unaudited)

Three Months Ended December 31,

Year Ended December 31,

2024

2023

2024

2023

Refining

Feedstocks (dollars per barrel)

Brent crude oil

73.98

82.72

79.79

82.27

Brent less West Texas Intermediate (WTI) crude oil

3.62

4.36

3.95

4.60

Brent less WTI Houston crude oil

2.31

3.04

2.48

3.15

Brent less Dated Brent crude oil

(0.71

)

(1.43

)

(0.91

)

(0.44

)

Brent less Argus Sour Crude Index crude oil

4.16

4.79

4.33

5.34

Brent less Maya crude oil

10.75

10.83

11.43

13.33

Brent less Western Canadian Select Houston crude oil

8.34

12.01

10.36

12.15

WTI crude oil

70.36

78.36

75.84

77.67

Natural gas (dollars per million British thermal units)

2.14

2.27

1.88

2.23

Renewable volume obligation (RVO) (dollars per barrel) (h)

4.04

4.77

3.75

7.02

Product margins (RVO adjusted unless otherwise noted) (dollars per barrel)

U.S. Gulf Coast:

Conventional Blendstock for Oxygenate Blending (CBOB) gasoline less Brent

1.86

(2.41

)

6.06

8.83

Ultra-low-sulfur (ULS) diesel less Brent

12.41

24.47

15.76

25.06

Propylene less Brent (not RVO adjusted)

(29.18

)

(50.92

)

(37.42

)

(47.47

)

U.S. Mid-Continent:

CBOB gasoline less WTI

5.46

4.05

10.48

17.70

ULS diesel less WTI

14.63

33.10

17.87

32.37

North Atlantic:

CBOB gasoline less Brent

7.07

5.57

11.08

15.61

ULS diesel less Brent

15.10

33.31

18.32

29.47

U.S. West Coast:

California Reformulated Gasoline Blendstock for Oxygenate Blending 87 gasoline less Brent

10.94

15.13

21.58

28.45

California Air Resources Board diesel less Brent

16.61

36.88

18.89

32.79

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS

(unaudited)

Three Months Ended December 31,

Year Ended December 31,

2024

2023

2024

2023

Renewable Diesel

New York Mercantile Exchange ULS diesel (dollars per gallon)

2.23

2.85

2.44

2.81

Biodiesel Renewable Identification Number (RIN) (dollars per RIN)

0.66

0.84

0.59

1.35

California Low-Carbon Fuel Standard carbon credit (dollars per metric ton)

72.27

68.71

60.19

72.42

U.S. Gulf Coast (USGC) used cooking oil (dollars per pound)

0.45

0.47

0.43

0.58

USGC distillers corn oil (dollars per pound)

0.48

0.57

0.48

0.63

USGC fancy bleachable tallow (dollars per pound)

0.45

0.52

0.44

0.59

Ethanol

Chicago Board of Trade corn (dollars per bushel)

4.27

4.75

4.24

5.65

New York Harbor ethanol (dollars per gallon)

1.70

2.12

1.79

2.34

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

OTHER FINANCIAL DATA

(millions of dollars)

(unaudited)

December 31,

2024

2023

Balance sheet data

Current assets

23,737

26,221

Cash and cash equivalents included in current assets

4,657

5,424

Inventories included in current assets

7,761

7,583

Current liabilities

15,495

16,802

Valero Energy Corporation stockholders’ equity

24,512

26,346

Total equity

27,521

28,524

Debt and finance lease obligations:

Debt –

Current portion of debt (excluding variable interest entities (VIEs))

441

167

Debt, less current portion of debt (excluding VIEs)

7,586

8,021

Total debt (excluding VIEs)

8,027

8,188

Current portion of debt attributable to VIEs

1,030

Debt, less current portion of debt attributable to VIEs

—

Total debt attributable to VIEs

1,030

Total debt

8,085

9,218

Finance lease obligations –

Current portion of finance lease obligations (excluding VIEs)

217

183

Finance lease obligations, less current portion (excluding VIEs)

1,492

1,428

Total finance lease obligations (excluding VIEs)

1,709

1,611

Current portion of finance lease obligations attributable to VIEs

Finance lease obligations, less current portion attributable to VIEs

642

669

Total finance lease obligations attributable to VIEs

669

695

Total finance lease obligations

2,378

2,306

Total debt and finance lease obligations

10,463

11,524

Three Months Ended December 31,

Year Ended December 31,

2024

2023

2024

2023

Reconciliation of net cash provided by operating activities to adjusted net cash provided by operating activities (d)

Net cash provided by operating activities

1,070

1,239

6,683

9,229

Exclude:

Changes in current assets and current liabilities

—

(631

)

795

(2,326

)

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

119

371

512

Adjusted net cash provided by operating activities

951

1,805

5,517

11,043

See Notes to Earnings Release Tables.

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,

2024

2023

2024

2023

Reconciliation of capital investments to capital investments attributable to Valero (d)

Capital expenditures (excluding VIEs)

250

197

649

665

Capital expenditures of VIEs:

DGD

250

235

Other VIEs

Deferred turnaround and catalyst cost expenditures (excluding VIEs)

235

281

1,079

946

Deferred turnaround and catalyst cost expenditures of DGD

Capital investments

547

540

2,057

1,916

Adjustments:

DGD’s capital investments attributable to the other joint venture member

(31

)

(27

)

(161

)

(147

)

Capital expenditures of other VIEs

)

(11

)

Capital investments attributable to Valero

515

506

1,888

1,758

Dividends per common share

1.07

1.02

4.28

4.08

Year Ending December 31, 2025

Reconciliation of expected capital investments to

expected capital investments attributable to Valero (d)

Expected capital investments

2,060

Adjustment: DGD’s capital investments attributable to the

other joint venture member

(110

)

Expected capital investments attributable to Valero

1,950

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

NOTES TO EARNINGS RELEASE TABLES

In March 2021, we announced our participation in a then-proposed large-scale carbon capture and sequestration pipeline system with Navigator Energy Services (Navigator). In October 2023, Navigator announced that it decided to cancel this project. Under the terms of the agreements associated with the project, we had some rights from and obligations to Navigator, including a portion of the aggregate project costs. As a result, we recognized a charge of $29 million in the year ended December 31, 2024 related to our obligation to Navigator.

“Other income, net” includes a net gain of $11 million in the year ended December 31, 2023 related to the early retirement of $199 million aggregate principal amount of various series of our senior notes.

Under current tax law, producers of second-generation biofuels that are registered with the Internal Revenue Service (IRS) are eligible for an income tax credit of up to $1.01 per gallon of qualified biofuel that was produced and sold in the U.S. through December 31, 2024. The benefit of the tax credit is recognized as a reduction of the producer’s income tax expense.

In December 2024, the IRS approved our application for registration as a producer of second-generation biofuels with respect to the cellulosic ethanol produced at our ethanol plants. As a result, “income tax expense (benefit)” for the three months and year ended December 31, 2024 includes a current income tax benefit of $79 million for the tax credit attributable to volumes of cellulosic ethanol produced and sold by us in the U.S. from 2020 through 2024. The $79 million income tax benefit recognized in December 2024 is attributable to the following periods (in millions):

Periods to which second-generation biofuel tax credit is attributable

2024 tax credit:

Nine months ended September 30, 2024

Three months ended December 31, 2024

Total 2024 tax credit

2023 tax credit:

Nine months ended September 30, 2023

Three months ended December 31, 2023

Total 2023 tax credit

2020 through 2022 tax credits

Total recognized in 2024

We use certain financial measures (as noted below) in the earnings release tables and accompanying earnings release that are not defined under GAAP and are considered to be non-GAAP measures.

We have defined these non-GAAP measures and believe they are useful to the external users of our financial statements, including industry analysts, investors, lenders, and rating agencies. We believe these measures are useful to assess our ongoing financial performance because, when reconciled to their most comparable GAAP measures, they provide improved comparability between periods after adjusting for certain items that we believe are not indicative of our core operating performance and that may obscure our underlying business results and trends. These non-GAAP measures should not be considered as alternatives to their most comparable GAAP measures nor should they be considered in isolation or as a substitute for an analysis of our results of operations as reported under GAAP. In addition, these non-GAAP measures may not be comparable to similarly titled measures used by other companies because we may define them differently, which diminishes their utility.

Non-GAAP measures are as follows:

– Project liability adjustment – The project liability adjustment related to the cancellation of Navigator’s project (see note (a)) is not indicative of our ongoing operations.

– Gain on early retirement of debt – Discounts, premiums, and other expenses recognized in connection with the early retirement of various series of our senior notes (see note (b)) are not associated with the ongoing costs of our borrowing and financing activities.

– Second-generation biofuel tax credit – The income tax benefit from the second-generation biofuel tax credit recognized by us in December 2024 is attributable to volumes produced and sold from 2020 through 2024 (see note (c)). Therefore, the adjustment reflects the portion of the credit that is attributable to volumes produced and sold in other periods as follows (in millions):

Three Months Ended December 31,

Year Ended December 31,

2024

2023

2024

2023

Tax credit attributable to volumes produced and sold during the period

Less:

Total recognized in 2024

—

Adjustment to reflect tax credit in the proper period

(74

)

(53

)

– Changes in current assets and current liabilities – Current assets net of current liabilities represents our operating liquidity. We believe that the change in our operating liquidity from period to period does not represent cash generated by our operations that is available to fund our investing and financing activities.

– DGD’s adjusted net cash provided by operating activities attributable to the other joint venture member’s ownership interest in DGD – We are a 50 percent joint venture member in DGD and we consolidate DGD’s financial statements. Our Renewable Diesel segment includes the operations of DGD and the associated activities to market its products. Because we consolidate DGD’s financial statements, all of DGD’s net cash provided by operating activities (or operating cash flow) is included in our consolidated net cash provided by operating activities.

DGD’s members use DGD’s operating cash flow (excluding changes in its current assets and current liabilities) to fund its capital investments rather than distribute all of that cash to themselves. Nevertheless, DGD’s operating cash flow is effectively attributable to each member and only 50 percent of DGD’s operating cash flow should be attributed to our net cash provided by operating activities. Therefore, we have adjusted our net cash provided by operating activities for the portion of DGD’s operating cash flow attributable to the other joint venture member’s ownership interest because we believe that it more accurately reflects the operating cash flow available to us to fund our investing and financing activities. The adjustment is calculated as follows (in millions):

Three Months Ended December 31,

Year Ended December 31,

2024

2023

2024

2023

DGD operating cash flow data

Net cash provided by operating activities

352

889

537

Exclude: Changes in current assets and current liabilities

116

(80

)

148

(488

)

Adjusted net cash provided by operating activities

236

130

741

1,025

Other joint venture member’s ownership interest

DGD’s adjusted net cash provided by operating activities attributable to the other joint venture member’s ownership interest in DGD

119

371

512

DGD’s members use DGD’s operating cash flow (excluding changes in its current assets and current liabilities) to fund its capital investments rather than distribute all of that cash to themselves. Because DGD’s operating cash flow is effectively attributable to each member, only 50 percent of DGD’s capital investments should be attributed to our net share of total capital investments. We also exclude the capital expenditures of other VIEs that we consolidate because we do not operate those VIEs. We believe capital investments attributable to Valero is an important measure because it more accurately reflects our capital investments.

The Refining segment regions reflected herein contain the following refineries: U.S. Gulf Coast- Corpus Christi East, Corpus Christi West, Houston, Meraux, Port Arthur, St. Charles, Texas City, and Three Rivers Refineries; U.S. Mid Continent- Ardmore, McKee, and Memphis Refineries; North Atlantic- Pembroke and Quebec City Refineries; and U.S. West Coast- Benicia and Wilmington Refineries.

Primarily includes petrochemicals, gas oils, No. 6 fuel oil, petroleum coke, sulfur, and asphalt.

Valero uses certain operating statistics (as noted below) in the earnings release tables and the accompanying earnings release to evaluate performance between comparable periods. Different companies may calculate them in different ways.

All per barrel of throughput, per gallon of sales, and per gallon of production amounts are calculated by dividing the associated dollar amount by the throughput volumes, sales volumes, and production volumes for the period, as applicable.

Throughput volumes, sales volumes, and production volumes are calculated by multiplying throughput volumes per day, sales volumes per day, and production volumes per day (as provided in the accompanying tables), respectively, by the number of days in the applicable period. We use throughput volumes, sales volumes, and production volumes for the Refining segment, Renewable Diesel segment, and Ethanol segment, respectively, due to their general use by others who operate facilities similar to those included in our segments. We believe the use of such volumes results in per unit amounts that are most representative of the product margins generated and the operating costs incurred as a result of our operation of those facilities.

The RVO cost represents the average market cost on a per barrel basis to comply with the Renewable Fuel Standard program. The RVO cost is calculated by multiplying (i) the average market price during the applicable period for the RINs associated with each class of renewable fuel (i.e., biomass-based diesel, cellulosic biofuel, advanced biofuel, and total renewable fuel) by (ii) the quotas for the volume of each class of renewable fuel that must be blended into petroleum-based transportation fuels consumed in the U.S., as set or proposed by the U.S. Environmental Protection Agency, on a percentage basis for each class of renewable fuel and adding together the results of each calculation.

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