Valero Energy Reports First Quarter 2021 Results
- Reported a net loss attributable to Valero stockholders of $704 million, or $1.73 per share, including estimated excess energy cost of $579 million, or $1.15 per share, related to impacts from Winter Storm Uri
- Returned $400 million in cash to stockholders through dividends and declared a regular quarterly cash dividend of $0.98 per share
- Announced the development of a large-scale carbon capture and storage project with BlackRock and Navigator
- Announced the sale of a partial interest in the Pasadena marine terminal joint venture (MVP Terminalling) for $270 million
SAN ANTONIO–(BUSINESS WIRE)–Valero Energy Corporation (NYSE: VLO, “Valero”) today reported a net loss attributable to Valero stockholders of $704 million, or $1.73 per share, for the first quarter of 2021, compared to a net loss of $1.9 billion, or $4.54 per share, for the first quarter of 2020. The operating loss in the first quarter of 2021 includes estimated excess energy costs of $579 million, or $1.15 per share, related to impacts from Winter Storm Uri. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders for the first quarter of 2020 was $140 million, or $0.34 per share. First quarter 2020 adjusted results exclude an after-tax lower of cost or market, or LCM, inventory valuation adjustment of approximately $2.0 billion.
“Winter Storm Uri impacted operations and operating costs of many facilities in the U.S. Gulf Coast and U.S. Mid-Continent regions, including our facilities,” said Joe Gorder, Valero Chairman and Chief Executive Officer. “I am very proud of our team for safely managing the utilities curtailments and the freeze by idling or shutting down the affected facilities and resuming operations without incident.”
Refining
The refining segment reported a $592 million operating loss for the first quarter of 2021, compared to an operating loss of $2.1 billion for the first quarter of 2020. The first quarter 2021 adjusted operating loss was $554 million, compared to adjusted operating income of $329 million in the first quarter of 2020, which excludes the LCM inventory valuation adjustment. The operating loss for the first quarter of 2021 includes estimated excess energy costs of $525 million related to impacts from Winter Storm Uri. Refinery throughput volumes averaged 2.4 million barrels per day in the first quarter of 2021, which was 414 thousand barrels per day lower than the first quarter of 2020.
“We are encouraged by the substantial increase in products demand and refining margins in the last three months,” said Gorder. “In fact, we achieved positive operating income and operating cash flow in March.”
Renewable Diesel
The renewable diesel segment, which consists of the Diamond Green Diesel (DGD) joint venture, reported $203 million of operating income for the first quarter of 2021, compared to $198 million for the first quarter of 2020. Renewable diesel sales volumes averaged 867 thousand gallons per day in the first quarter of 2021.
“We are leveraging our global liquid fuels platform to continue expanding our long-term competitive advantage in renewables,” said Gorder. “Valero’s operational expertise and commercial strength are demonstrated by the record operating income and renewable diesel margin by this segment in the first quarter of 2021.”
Ethanol
The ethanol segment reported a $56 million operating loss for the first quarter of 2021, compared to an operating loss of $197 million for the first quarter of 2020. The operating loss for the first quarter of 2021 includes estimated excess energy costs of $54 million related to impacts from Winter Storm Uri. First quarter 2020 adjusted operating loss was $69 million, which excludes the LCM inventory valuation adjustment. Ethanol production volumes averaged 3.6 million gallons per day in the first quarter of 2021, which was 541 thousand gallons per day lower than the first quarter of 2020.
Corporate and Other
General and administrative expenses were $208 million in the first quarter of 2021, compared to $177 million in the first quarter of 2020. The effective tax rate for the first quarter of 2021 was 19 percent.
Investing and Financing Activities
Capital investments totaled $582 million in the first quarter of 2021, of which $333 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance. Excluding capital investments attributable to our partner’s 50 percent share of DGD and those related to other variable interest entities, capital investments attributable to Valero were $479 million.
Net cash used in operating activities was $52 million in the first quarter of 2021. Included in this amount was a $184 million favorable impact from working capital and $108 million associated with our joint venture partner’s share of DGD’s net cash provided by operating activities, excluding changes in DGD’s working capital. Excluding these items, adjusted net cash used in operating activities was $344 million.
Valero returned $400 million to stockholders through dividends in the first quarter of 2021.
Valero continues to target a long-term total payout ratio between 40 and 50 percent of adjusted net cash provided by operating activities. Valero defines total payout ratio as the sum of dividends and stock buybacks divided by net cash provided by operating activities adjusted for changes in working capital and DGD’s net cash provided by operating activities, excluding changes in its working capital, attributable to our joint venture partner’s ownership interest in DGD.
Liquidity and Financial Position
Valero ended the first quarter of 2021 with $14.7 billion of total debt and finance lease obligations and $2.3 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 40 percent as of March 31, 2021.
Strategic Update
Valero continues to evaluate and pursue economic projects that lower the carbon intensity of its products. Valero announced that it is partnering with BlackRock and Navigator for a large-scale carbon capture and storage system in the U.S. Midwest that would capture and store carbon dioxide (CO2) from eight of Valero’s ethanol plants, making a lower carbon intensity ethanol product to be marketed in low carbon fuel markets. The system is expected to be capable of storing 5 million metric tonnes of CO2 per year.
In addition, Valero and its joint venture partner continue to steadily expand DGD’s capacity to produce low carbon intensity renewable diesel. The DGD plant expansion at St. Charles (DGD 2), which is expected to increase renewable diesel production by 400 million gallons per year, is on track to be completed and operational in the middle of the fourth quarter of 2021. The St. Charles expansion will also provide the capability to market 30 million gallons per year of renewable naphtha into low carbon fuel markets. The new DGD plant at Port Arthur (DGD 3), which is expected to produce 470 million gallons per year of renewable diesel, is expected to commence operations in the second half of 2023, increasing DGD’s total annual production capacity to approximately 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha.
Refinery optimization projects that are expected to reduce cost and improve margin capture, are progressing on schedule. The Pembroke Cogen project is on track to be completed in the third quarter of 2021 and the Port Arthur Coker project is expected to be completed in 2023.
On April 19, Valero sold a 24.99 percent membership interest in its Pasadena marine terminal joint venture for $270 million. Valero will retain a 25.01 percent interest in the joint venture.
Capital investments attributable to Valero are forecasted to be $2.0 billion in 2021, of which approximately 60 percent is for sustaining the business and approximately 40 percent is for growth projects. Over half of Valero’s 2021 growth capital is allocated to expanding the renewable diesel business.
“Continued improvement in product demand and refining margins supports a positive outlook for our refining business,” said Gorder. “Those improvements coupled with our growth strategy and operational expertise in low carbon renewable fuels, further strengthens Valero’s long-term competitive advantage.”
Conference Call
Valero’s senior management will hold a conference call at 10 a.m. ET today to discuss this earnings release and to provide an update on operations and strategy.
About Valero
Valero Energy Corporation, through its subsidiaries (collectively, “Valero”), is an international manufacturer and marketer of transportation fuels and petrochemical products. Valero is a Fortune 50 company based in San Antonio, Texas, and it operates 15 petroleum refineries with a combined throughput capacity of approximately 3.2 million barrels per day and 13 ethanol plants with a combined production capacity of approximately 1.69 billion gallons per year. The petroleum refineries are located in the United States (“U.S.”), Canada and the United Kingdom (“U.K.”), and the ethanol plants are located in the Mid-Continent region of the U.S. Valero is also a joint venture partner in Diamond Green Diesel, which owns and operates a renewable diesel plant in Norco, Louisiana. Diamond Green Diesel is North America’s largest biomass-based diesel plant. Valero sells its products in the wholesale rack or bulk markets in the U.S., Canada, the U.K., Ireland and Latin America. Approximately 7,000 outlets carry Valero’s brand names. Please visit www.investorvalero.com for more information.
Valero Contacts
Investors:
Homer Bhullar, Vice President – Investor Relations, 210-345-1982
Eric Herbort, Senior Manager – Investor Relations, 210-345-3331
Gautam Srivastava, Senior Manager – Investor Relations, 210-345-3992
Media:
Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002
Safe-Harbor Statement
Statements contained in this release that state the company’s or management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “believe,” “expect,” “should,” “estimates,” “intend,” “target,” “will,” “plans,” “forecast,” and other similar expressions identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of the company’s control, such as delays in construction timing and other factors, including but not limited to the impacts of COVID-19. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual 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.
COVID-19 Disclosure
The global pandemic has significantly reduced global economic activity and resulted in airlines dramatically cutting back on flights and a decrease in motor vehicle use. As a result, there has also been a decline in the demand for, and thus also the market prices of, crude oil and certain of our products, particularly our refined petroleum products. Many uncertainties remain with respect to COVID-19, including its resulting economic effects and any future recovery, and we are unable to predict the ultimate economic impacts from COVID-19, how quickly national economies can recover once the pandemic subsides, the timing or effectiveness of the vaccine distribution, or whether any recovery will ultimately experience a reversal or other setbacks. However, the adverse impact of the economic effects on us has been and will likely continue to be significant. We believe we have proactively addressed many of the known impacts of COVID-19 to the extent possible and will strive to continue to do so, but there can be no guarantee that these measures will be fully effective. For more information, see our annual report on Form 10-K, quarterly reports on Form 10-Q, and other reports filed with the Securities and Exchange Commission.
Use of Non-GAAP Financial Information
This earnings release and the accompanying earnings release tables include references to financial measures that are not defined under U.S. generally accepted accounting principles (GAAP). These non-GAAP measures include adjusted net income (loss) attributable to Valero stockholders, adjusted earnings (loss) per common share – assuming dilution, refining margin, renewable diesel margin, ethanol margin, adjusted refining operating income (loss), adjusted ethanol operating income (loss), 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 non-GAAP measures to their most directly comparable U.S. 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 |
||||||||
|
|
2021 |
|
|
2020 |
|
||||
|
Statement of income data |
|
|
|
||||||
|
Revenues |
$ |
20,806 |
|
|
|
$ |
22,102 |
|
|
|
Cost of sales: |
|
|
|
||||||
|
Cost of materials and other (a) |
18,992 |
|
|
|
19,952 |
|
|
||
|
Lower of cost or market (LCM) inventory valuation adjustment (b) |
— |
|
|
|
2,542 |
|
|
||
|
Operating expenses (excluding depreciation and amortization expense reflected below) (a) |
1,656 |
|
|
|
1,124 |
|
|
||
|
Depreciation and amortization expense |
566 |
|
|
|
569 |
|
|
||
|
Total cost of sales |
21,214 |
|
|
|
24,187 |
|
|
||
|
Other operating expenses |
38 |
|
|
|
2 |
|
|
||
|
General and administrative expenses (excluding depreciation and amortization expense reflected below) |
208 |
|
|
|
177 |
|
|
||
|
Depreciation and amortization expense |
12 |
|
|
|
13 |
|
|
||
|
Operating loss |
(666 |
) |
|
|
(2,277 |
) |
|
||
|
Other income, net |
45 |
|
|
|
32 |
|
|
||
|
Interest and debt expense, net of capitalized interest |
(149 |
) |
|
|
(125 |
) |
|
||
|
Loss before income tax benefit |
(770 |
) |
|
|
(2,370 |
) |
|
||
|
Income tax benefit |
(148 |
) |
|
|
(616 |
) |
|
||
|
Net loss |
(622 |
) |
|
|
(1,754 |
) |
|
||
|
Less: Net income attributable to noncontrolling interests |
82 |
|
|
|
97 |
|
|
||
|
Net loss attributable to Valero Energy Corporation stockholders |
$ |
(704 |
) |
|
|
$ |
(1,851 |
) |
|
|
|
|
|
|
||||||
|
Loss per common share |
$ |
(1.73 |
) |
|
|
$ |
(4.54 |
) |
|
|
Weighted-average common shares outstanding (in millions) |
407 |
|
|
|
408 |
|
|
||
|
|
|
|
|
||||||
|
Loss per common share – assuming dilution |
$ |
(1.73 |
) |
|
|
$ |
(4.54 |
) |
|
|
Weighted-average common shares outstanding – assuming dilution (in millions) (c) |
407 |
|
|
|
408 |
|
|
||
|
See Notes to Earnings Release Tables. |
|||||||||
|
VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES FINANCIAL HIGHLIGHTS BY SEGMENT (millions of dollars) (unaudited) |
|||||||||||||||||||||||
|
|
Refining |
|
Renewable |
|
Ethanol |
|
Corporate |
|
Total |
||||||||||||||
|
Three months ended March 31, 2021 |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Revenues from external customers |
$ |
19,469 |
|
|
|
$ |
352 |
|
|
$ |
985 |
|
|
|
$ |
— |
|
|
|
$ |
20,806 |
|
|
|
Intersegment revenues |
3 |
|
|
|
79 |
|
|
60 |
|
|
|
(142 |
) |
|
|
— |
|
|
|||||
|
Total revenues |
19,472 |
|
|
|
431 |
|
|
1,045 |
|
|
|
(142 |
) |
|
|
20,806 |
|
|
|||||
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Cost of materials and other (a) |
18,022 |
|
|
|
187 |
|
|
924 |
|
|
|
(141 |
) |
|
|
18,992 |
|
|
|||||
|
Operating expenses (excluding depreciation and amortization expense reflected below) (a) |
1,471 |
|
|
|
29 |
|
|
156 |
|
|
|
— |
|
|
|
1,656 |
|
|
|||||
|
Depreciation and amortization expense |
533 |
|
|
|
12 |
|
|
21 |
|
|
|
— |
|
|
|
566 |
|
|
|||||
|
Total cost of sales |
20,026 |
|
|
|
228 |
|
|
1,101 |
|
|
|
(141 |
) |
|
|
21,214 |
|
|
|||||
|
Other operating expenses |
38 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
38 |
|
|
|||||
|
General and administrative expenses (excluding depreciation and amortization expense reflected below) |
— |
|
|
|
— |
|
|
— |
|
|
|
208 |
|
|
|
208 |
|
|
|||||
|
Depreciation and amortization expense |
— |
|
|
|
— |
|
|
— |
|
|
|
12 |
|
|
|
12 |
|
|
|||||
|
Operating income (loss) by segment |
$ |
(592 |
) |
|
|
$ |
203 |
|
|
$ |
(56 |
) |
|
|
$ |
(221 |
) |
|
|
$ |
(666 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Three months ended March 31, 2020 |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Revenues from external customers |
$ |
20,985 |
|
|
|
$ |
306 |
|
|
$ |
811 |
|
|
|
$ |
— |
|
|
|
$ |
22,102 |
|
|
|
Intersegment revenues |
2 |
|
|
|
53 |
|
|
64 |
|
|
|
(119 |
) |
|
|
— |
|
|
|||||
|
Total revenues |
20,987 |
|
|
|
359 |
|
|
875 |
|
|
|
(119 |
) |
|
|
22,102 |
|
|
|||||
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Cost of materials and other |
19,127 |
|
|
|
130 |
|
|
813 |
|
|
|
(118 |
) |
|
|
19,952 |
|
|
|||||
|
LCM inventory valuation adjustment (b) |
2,414 |
|
|
|
— |
|
|
128 |
|
|
|
— |
|
|
|
2,542 |
|
|
|||||
|
Operating expenses (excluding depreciation and amortization expense reflected below) |
995 |
|
|
|
20 |
|
|
109 |
|
|
|
— |
|
|
|
1,124 |
|
|
|||||
|
Depreciation and amortization expense |
536 |
|
|
|
11 |
|
|
22 |
|
|
|
— |
|
|
|
569 |
|
|
|||||
|
Total cost of sales |
23,072 |
|
|
|
161 |
|
|
1,072 |
|
|
|
(118 |
) |
|
|
24,187 |
|
|
|||||
|
Other operating expenses |
2 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|||||
|
General and administrative expenses (excluding depreciation and amortization expense reflected below) |
— |
|
|
|
— |
|
|
— |
|
|
|
177 |
|
|
|
177 |
|
|
|||||
|
Depreciation and amortization expense |
— |
|
|
|
— |
|
|
— |
|
|
|
13 |
|
|
|
13 |
|
|
|||||
|
Operating income (loss) by segment |
$ |
(2,087 |
) |
|
|
$ |
198 |
|
|
$ |
(197 |
) |
|
|
$ |
(191 |
) |
|
|
$ |
(2,277 |
) |
|
|
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 (d) (millions of dollars, except per share amounts) (unaudited) |
|||||||||
|
|
Three Months Ended |
||||||||
|
|
2021 |
|
|
2020 |
|
||||
|
Reconciliation of net loss attributable to Valero Energy Corporation stockholders to adjusted net income (loss) attributable to Valero Energy Corporation stockholders |
|
|
|
||||||
|
Net loss attributable to Valero Energy Corporation stockholders |
$ |
(704 |
) |
|
|
$ |
(1,851 |
) |
|
|
Adjustments: |
|
|
|
||||||
|
LCM inventory valuation adjustment (b) |
— |
|
|
|
2,542 |
|
|
||
|
Income tax benefit related to the LCM inventory valuation adjustment |
— |
|
|
|
(551 |
) |
|
||
|
LCM inventory valuation adjustment, net of taxes |
— |
|
|
|
1,991 |
|
|
||
|
Adjusted net income (loss) attributable to Valero Energy Corporation stockholders |
$ |
(704 |
) |
|
|
$ |
140 |
|
|
|
|
|
|
|
||||||
|
Reconciliation of loss per common share – assuming dilution to adjusted earnings (loss) per common share – assuming dilution |
|
|
|
||||||
|
Loss per common share – assuming dilution (c) |
$ |
(1.73 |
) |
|
|
$ |
(4.54 |
) |
|
|
Adjustments: |
|
|
|
||||||
|
LCM inventory valuation adjustment (b) |
— |
|
|
|
4.88 |
|
|
||
|
Adjusted earnings (loss) per common share – assuming dilution (c) |
$ |
(1.73 |
) |
|
|
$ |
0.34 |
|
|
|
|
|
|
|
||||||
|
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 |
||||||||
|
|
2021 |
|
|
2020 |
|
||||
|
Reconciliation of operating income (loss) by segment to segment margin, and reconciliation of operating income (loss) by segment to adjusted operating income (loss) by segment |
|
|
|
||||||
|
Refining segment |
|
|
|
||||||
|
Refining operating loss |
$ |
(592 |
) |
|
|
$ |
(2,087 |
) |
|
|
Adjustments: |
|
|
|
||||||
|
LCM inventory valuation adjustment (b) |
— |
|
|
|
2,414 |
|
|
||
|
Operating expenses (excluding depreciation and amortization expense reflected below) (a) |
1,471 |
|
|
|
995 |
|
|
||
|
Depreciation and amortization expense |
533 |
|
|
|
536 |
|
|
||
|
Other operating expenses |
38 |
|
|
|
2 |
|
|
||
|
Refining margin |
$ |
1,450 |
|
|
|
$ |
1,860 |
|
|
|
|
|
|
|
||||||
|
Refining operating loss |
$ |
(592 |
) |
|
|
$ |
(2,087 |
) |
|
|
Adjustments: |
|
|
|
||||||
|
LCM inventory valuation adjustment (b) |
— |
|
|
|
2,414 |
|
|
||
|
Other operating expenses |
38 |
|
|
|
2 |
|
|
||
|
Adjusted refining operating income (loss) |
$ |
(554 |
) |
|
|
$ |
329 |
|
|
|
|
|
|
|
||||||
|
Renewable diesel segment |
|
|
|
||||||
|
Renewable diesel operating income |
$ |
203 |
|
|
|
$ |
198 |
|
|
|
Adjustments: |
|
|
|
||||||
|
Operating expenses (excluding depreciation and amortization expense reflected below) |
29 |
|
|
|
20 |
|
|
||
|
Depreciation and amortization expense |
12 |
|
|
|
11 |
|
|
||
|
Renewable diesel margin |
$ |
244 |
|
|
|
$ |
229 |
|
|
|
|
|
|
|
||||||
|
Ethanol segment |
|
|
|
||||||
|
Ethanol operating loss |
$ |
(56 |
) |
|
|
$ |
(197 |
) |
|
|
Adjustments: |
|
|
|
||||||
|
LCM inventory valuation adjustment (b) |
— |
|
|
|
128 |
|
|
||
|
Operating expenses (excluding depreciation and amortization expense reflected below) (a) |
156 |
|
|
|
109 |
|
|
||
|
Depreciation and amortization expense |
21 |
|
|
|
22 |
|
|
||
|
Ethanol margin |
$ |
121 |
|
|
|
$ |
62 |
|
|
|
|
|
|
|
||||||
|
Ethanol operating loss |
$ |
(56 |
) |
|
|
$ |
(197 |
) |
|
|
Adjustment: LCM inventory valuation adjustment (b) |
— |
|
|
|
128 |
|
|
||
|
Adjusted ethanol operating loss |
$ |
(56 |
) |
|
|
$ |
(69 |
) |
|
|
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 |
||||||||
|
|
2021 |
|
|
2020 |
|
||||
|
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 loss |
$ |
(508 |
) |
|
|
$ |
(942 |
) |
|
|
Adjustments: |
|
|
|
||||||
|
LCM inventory valuation adjustment (b) |
— |
|
|
|
1,113 |
|
|
||
|
Operating expenses (excluding depreciation and amortization expense reflected below) (a) |
994 |
|
|
|
558 |
|
|
||
|
Depreciation and amortization expense |
332 |
|
|
|
334 |
|
|
||
|
Other operating expenses |
31 |
|
|
|
— |
|
|
||
|
Refining margin |
$ |
849 |
|
|
|
$ |
1,063 |
|
|
|
|
|
|
|
||||||
|
Refining operating loss |
$ |
(508 |
) |
|
|
$ |
(942 |
) |
|
|
Adjustments: |
|
|
|
||||||
|
LCM inventory valuation adjustment (b) |
— |
|
|
|
1,113 |
|
|
||
|
Other operating expenses |
31 |
|
|
|
— |
|
|
||
|
Adjusted refining operating income (loss) |
$ |
(477 |
) |
|
|
$ |
171 |
|
|
|
|
|
|
|
||||||
|
U.S. Mid-Continent region |
|
|
|
||||||
|
Refining operating loss |
$ |
(10 |
) |
|
|
$ |
(220 |
) |
|
|
Adjustments: |
|
|
|
||||||
|
LCM inventory valuation adjustment (b) |
— |
|
|
|
283 |
|
|
||
|
Operating expenses (excluding depreciation and amortization expense reflected below) (a) |
190 |
|
|
|
164 |
|
|
||
|
Depreciation and amortization expense |
84 |
|
|
|
83 |
|
|
||
|
Other operating expenses |
7 |
|
|
|
— |
|
|
||
|
Refining margin |
$ |
271 |
|
|
|
$ |
310 |
|
|
|
|
|
|
|
||||||
|
Refining operating loss |
$ |
(10 |
) |
|
|
$ |
(220 |
) |
|
|
Adjustments: |
|
|
|
||||||
|
LCM inventory valuation adjustment (b) |
— |
|
|
|
283 |
|
|
||
|
Other operating expenses |
7 |
|
|
|
— |
|
|
||
|
Adjusted refining operating income (loss) |
$ |
(3 |
) |
|
|
$ |
63 |
|
|
|
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 |
||||||||
|
|
2021 |
|
|
2020 |
|
||||
|
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) (continued) |
|
|
|
||||||
|
North Atlantic region |
|
|
|
||||||
|
Refining operating income (loss) |
$ |
55 |
|
|
|
$ |
(714 |
) |
|
|
Adjustments: |
|
|
|
||||||
|
LCM inventory valuation adjustment (b) |
— |
|
|
|
874 |
|
|
||
|
Operating expenses (excluding depreciation and amortization expense reflected below) |
140 |
|
|
|
141 |
|
|
||
|
Depreciation and amortization expense |
52 |
|
|
|
53 |
|
|
||
|
Other operating expenses |
— |
|
|
|
2 |
|
|
||
|
Refining margin |
$ |
247 |
|
|
|
$ |
356 |
|
|
|
|
|
|
|
||||||
|
Refining operating income (loss) |
$ |
55 |
|
|
|
$ |
(714 |
) |
|
|
Adjustments: |
|
|
|
||||||
|
LCM inventory valuation adjustment (b) |
— |
|
|
|
874 |
|
|
||
|
Other operating expenses |
— |
|
|
|
2 |
|
|
||
|
Adjusted refining operating income |
$ |
55 |
|
|
|
$ |
162 |
|
|
|
|
|
|
|
||||||
|
U.S. West Coast region |
|
|
|
||||||
|
Refining operating loss |
$ |
(129 |
) |
|
|
$ |
(211 |
) |
|
|
Adjustments: |
|
|
|
||||||
|
LCM inventory valuation adjustment (b) |
— |
|
|
|
144 |
|
|
||
|
Operating expenses (excluding depreciation and amortization expense reflected below) |
147 |
|
|
|
132 |
|
|
||
|
Depreciation and amortization expense |
65 |
|
|
|
66 |
|
|
||
|
Refining margin |
$ |
83 |
|
|
|
$ |
131 |
|
|
|
|
|
|
|
||||||
|
Refining operating loss |
$ |
(129 |
) |
|
|
$ |
(211 |
) |
|
|
Adjustment: LCM inventory valuation adjustment (b) |
— |
|
|
|
144 |
|
|
||
|
Adjusted refining operating loss |
$ |
(129 |
) |
|
|
$ |
(67 |
) |
|
|
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 |
|||||||
|
|
2021 |
|
|
2020 |
||||
|
Throughput volumes (thousand barrels per day) |
|
|
|
|||||
|
Feedstocks: |
|
|
|
|||||
|
Heavy sour crude oil |
354 |
|
|
|
360 |
|
||
|
Medium/light sour crude oil |
275 |
|
|
|
252 |
|
||
|
Sweet crude oil |
1,143 |
|
|
|
1,538 |
|
||
|
Residuals |
192 |
|
|
|
235 |
|
||
|
Other feedstocks |
102 |
|
|
|
100 |
|
||
|
Total feedstocks |
2,066 |
|
|
|
2,485 |
|
||
|
Blendstocks and other |
344 |
|
|
|
339 |
|
||
|
Total throughput volumes |
2,410 |
|
|
|
2,824 |
|
||
|
|
|
|
|
|||||
|
Yields (thousand barrels per day) |
|
|
|
|||||
|
Gasolines and blendstocks |
1,191 |
|
|
|
1,317 |
|
||
|
Distillates |
894 |
|
|
|
1,046 |
|
||
|
Other products (f) |
352 |
|
|
|
478 |
|
||
|
Total yields |
2,437 |
|
|
|
2,841 |
|
||
|
|
|
|
|
|||||
|
Operating statistics (a) (d) (g) |
|
|
|
|||||
|
Refining margin |
$ |
1,450 |
|
|
|
$ |
1,860 |
|
|
Adjusted refining operating income (loss) |
$ |
(554 |
) |
|
|
$ |
329 |
|
|
Throughput volumes (thousand barrels per day) |
2,410 |
|
|
|
2,824 |
|
||
|
|
|
|
|
|||||
|
Refining margin per barrel of throughput |
$ |
6.68 |
|
|
|
$ |
7.24 |
|
|
Less: |
|
|
|
|||||
|
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput |
6.78 |
|
|
|
3.87 |
|
||
|
Depreciation and amortization expense per barrel of throughput |
2.46 |
|
|
|
2.09 |
|
||
|
Adjusted refining operating income (loss) per barrel of throughput |
$ |
(2.56 |
) |
|
|
$ |
1.28 |
|
|
See Notes to Earnings Release Tables. |
||||||||
Contacts
Investors:
Homer Bhullar, Vice President – Investor Relations, 210-345-1982
Eric Herbort, Senior Manager – Investor Relations, 210-345-3331
Gautam Srivastava, Senior Manager – Investor Relations, 210-345-3992
Media:
Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002