- Reported net income attributable to Valero stockholders of
$1 .1 billion, or$2 .58 per share, for the fourth quarter and$2.4 billion , or$5.84 per share, for the year. - Reported adjusted net income attributable to Valero stockholders of $873 million, or
$2 .13 per share, for the fourth quarter and$2.4 billion , or$5.70 per share, for the year. - Returned
$591 million in cash to stockholders through dividends and stock buybacks in the fourth quarter and$2.3 billion in the year. - Increased quarterly common stock dividend by nine percent to
$0.98 per share onJanuary 23 .
For the year ended
“We delivered another year of steady earnings despite a challenging environment for the refining business during 2019,” said
Refining
The refining segment reported
“Our refineries operated well at 96% utilization, allowing us to take advantage of wider sour crude oil differentials and weakness in high sulfur residual feedstocks in the fourth quarter,” Gorder said.
Refinery throughput volumes averaged 3.0 million barrels per day in the fourth quarter of 2019, which is in line with the fourth quarter of 2018. For the full year 2019, the company processed record volumes of approximately 180 thousand barrels per day of Canadian heavy crude oil and 1.4 million barrels per day of North American sweet crude oil. The company exported an average of 343,000 barrels per day of gasoline and distillate in 2019.
Ethanol
The ethanol segment reported $36 million of operating income for the fourth quarter of 2019, compared to a
Renewable Diesel
The renewable diesel segment reported $541 million of operating income for the fourth quarter of 2019, compared to $101 million for the fourth quarter of 2018. After adjusting for the retroactive blender’s tax credit recorded in the fourth quarter of 2019, adjusted renewable diesel operating income was
Corporate and Other
General and administrative expenses were $243 million in the fourth quarter of 2019 compared to
Investing and Financing Activities
Capital investments totaled $722 million in the fourth quarter of 2019, of which $445 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance.
Valero returned $591 million to stockholders in the fourth quarter of 2019, of which $369 million was paid as dividends and $222 million was for the purchase of approximately 2.3 million shares of common stock. In 2019, Valero returned
Net cash provided by operating activities in 2019 was
Valero continues to target a total payout ratio between 40 and 50 percent of adjusted net cash provided by operating activities for 2020. 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.
On
Liquidity and Financial Position
Valero ended the fourth quarter of 2019 with
Strategic Update
In 2019, Valero successfully started up the Houston Alkylation Unit, which upgrades lower value natural gas liquids and refinery olefins to a premium, high octane alkylate product. Valero also completed the Central Texas Pipelines and Terminals project, which reduces secondary costs and extends the supply chain from the
Several growth projects, including the
Valero, with its ethanol and renewable diesel businesses, is already the largest renewable fuels producer in
Valero continues to expect to invest approximately
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 Contacts
Investors:
Media:
Safe-Harbor Statement
Statements contained in this release that state the company’s or management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “believe,” “expect,” “should,” “estimates,” “intend,” “target,” “will,” “plans,” and other similar expressions identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of the company’s control, such as delays in construction timing and other factors. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual reports on Form 10-K, quarterly reports on Form 10-Q, and other reports filed with the
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
EARNINGS RELEASE TABLES
FINANCIAL HIGHLIGHTS
(millions of dollars, except per share amounts)
(unaudited)
Three Months Ended | Year Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Statement of income data | |||||||||||||||
Revenues | $ | 27,879 | $ | 28,730 | $ | 108,324 | $ | 117,033 | |||||||
Cost of sales: | |||||||||||||||
Cost of materials and other (a) | 24,080 | 25,415 | 96,476 | 104,732 | |||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 1,239 | 1,251 | 4,868 | 4,690 | |||||||||||
Depreciation and amortization expense | 557 | 518 | 2,202 | 2,017 | |||||||||||
Total cost of sales | 25,876 | 27,184 | 103,546 | 111,439 | |||||||||||
Other operating expenses (b) | 7 | 4 | 21 | 45 | |||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) (c) | 243 | 230 | 868 | 925 | |||||||||||
Depreciation and amortization expense | 14 | 13 | 53 | 52 | |||||||||||
Operating income | 1,739 | 1,299 | 3,836 | 4,572 | |||||||||||
Other income, net (d) | 36 | 42 | 104 | 130 | |||||||||||
Interest and debt expense, net of capitalized interest | (119 | ) | (114 | ) | (454 | ) | (470 | ) | |||||||
Income before income tax expense | 1,656 | 1,227 | 3,486 | 4,232 | |||||||||||
Income tax expense (e) (f) | 326 | 205 | 702 | 879 | |||||||||||
Net income | 1,330 | 1,022 | 2,784 | 3,353 | |||||||||||
Less: Net income attributable to noncontrolling interests (a) | 270 | 70 | 362 | 231 | |||||||||||
Net income attributable to | $ | 1,060 | $ | 952 | $ | 2,422 | $ | 3,122 | |||||||
Earnings per common share | $ | 2.58 | $ | 2.26 | $ | 5.84 | $ | 7.30 | |||||||
Weighted-average common shares outstanding (in millions) | 409 | 421 | 413 | 426 | |||||||||||
Earnings per common share – assuming dilution | $ | 2.58 | $ | 2.24 | $ | 5.84 | $ | 7.29 | |||||||
Weighted-average common shares outstanding – assuming dilution (in millions) | 410 | 422 | 414 | 428 | |||||||||||
See Notes to Earnings Release Tables.
EARNINGS RELEASE TABLES
FINANCIAL HIGHLIGHTS BY SEGMENT (g)
(millions of dollars)
(unaudited)
Refining | Ethanol | Renewable Diesel | Corporate and Eliminations | Total | |||||||||||||||
Three months ended | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Revenues from external customers | $ | 26,637 | $ | 958 | $ | 284 | $ | — | $ | 27,879 | |||||||||
Intersegment revenues | 6 | 69 | 73 | (148 | ) | — | |||||||||||||
Total revenues | 26,643 | 1,027 | 357 | (148 | ) | 27,879 | |||||||||||||
Cost of sales: | |||||||||||||||||||
Cost of materials and other (a) | 23,602 | 843 | (217 | ) | (148 | ) | 24,080 | ||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 1,092 | 126 | 21 | — | 1,239 | ||||||||||||||
Depreciation and amortization expense | 523 | 22 | 12 | — | 557 | ||||||||||||||
Total cost of sales | 25,217 | 991 | (184 | ) | (148 | ) | 25,876 | ||||||||||||
Other operating expenses (b) | 7 | — | — | — | 7 | ||||||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) | — | — | — | 243 | 243 | ||||||||||||||
Depreciation and amortization expense | — | — | — | 14 | 14 | ||||||||||||||
Operating income by segment | $ | 1,419 | $ | 36 | $ | 541 | $ | (257 | ) | $ | 1,739 | ||||||||
Three months ended | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Revenues from external customers | $ | 27,722 | $ | 803 | $ | 204 | $ | 1 | $ | 28,730 | |||||||||
Intersegment revenues | 5 | 54 | 67 | (126 | ) | — | |||||||||||||
Total revenues | 27,727 | 857 | 271 | (125 | ) | 28,730 | |||||||||||||
Cost of sales: | |||||||||||||||||||
Cost of materials and other | 24,671 | 729 | 140 | (125 | ) | 25,415 | |||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 1,097 | 134 | 20 | — | 1,251 | ||||||||||||||
Depreciation and amortization expense | 487 | 21 | 10 | — | 518 | ||||||||||||||
Total cost of sales | 26,255 | 884 | 170 | (125 | ) | 27,184 | |||||||||||||
Other operating expenses (b) | 4 | — | — | — | 4 | ||||||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) | — | — | — | 230 | 230 | ||||||||||||||
Depreciation and amortization expense | — | — | — | 13 | 13 | ||||||||||||||
Operating income (loss) by segment | $ | 1,468 | $ | (27 | ) | $ | 101 | $ | (243 | ) | $ | 1,299 | |||||||
See Operating Highlights by Segment.
See Notes to Earnings Release Tables.
EARNINGS RELEASE TABLES
FINANCIAL HIGHLIGHTS BY SEGMENT (g)
(millions of dollars)
(unaudited)
Refining | Ethanol | Renewable Diesel | Corporate and Eliminations | Total | |||||||||||||||
Year ended | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Revenues from external customers | $ | 103,746 | $ | 3,606 | $ | 970 | $ | 2 | $ | 108,324 | |||||||||
Intersegment revenues | 18 | 231 | 247 | (496 | ) | — | |||||||||||||
Total revenues | 103,764 | 3,837 | 1,217 | (494 | ) | 108,324 | |||||||||||||
Cost of sales: | |||||||||||||||||||
Cost of materials and other (a) | 93,371 | 3,239 | 360 | (494 | ) | 96,476 | |||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 4,289 | 504 | 75 | — | 4,868 | ||||||||||||||
Depreciation and amortization expense | 2,062 | 90 | 50 | — | 2,202 | ||||||||||||||
Total cost of sales | 99,722 | 3,833 | 485 | (494 | ) | 103,546 | |||||||||||||
Other operating expenses (b) | 20 | 1 | — | — | 21 | ||||||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) | — | — | — | 868 | 868 | ||||||||||||||
Depreciation and amortization expense | — | — | — | 53 | 53 | ||||||||||||||
Operating income by segment | $ | 4,022 | $ | 3 | $ | 732 | $ | (921 | ) | $ | 3,836 | ||||||||
Year ended | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Revenues from external customers | $ | 113,093 | $ | 3,428 | $ | 508 | $ | 4 | $ | 117,033 | |||||||||
Intersegment revenues | 25 | 210 | 170 | (405 | ) | — | |||||||||||||
Total revenues | 113,118 | 3,638 | 678 | (401 | ) | 117,033 | |||||||||||||
Cost of sales: | |||||||||||||||||||
Cost of materials and other (a) | 101,866 | 3,008 | 262 | (404 | ) | 104,732 | |||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 4,154 | 470 | 66 | — | 4,690 | ||||||||||||||
Depreciation and amortization expense | 1,910 | 78 | 29 | — | 2,017 | ||||||||||||||
Total cost of sales | 107,930 | 3,556 | 357 | (404 | ) | 111,439 | |||||||||||||
Other operating expenses (b) | 45 | — | — | — | 45 | ||||||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) (c) | — | — | — | 925 | 925 | ||||||||||||||
Depreciation and amortization expense | — | — | — | 52 | 52 | ||||||||||||||
Operating income by segment | $ | 5,143 | $ | 82 | $ | 321 | $ | (974 | ) | $ | 4,572 | ||||||||
See Operating Highlights by Segment.
See Notes to Earnings Release Tables.
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER
(millions of dollars, except per share amounts)
(unaudited)
Three Months Ended | Year Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Reconciliation of net income attributable to Corporation stockholders to adjusted net income attributable to | |||||||||||||||
Net income attributable to stockholders | $ | 1,060 | $ | 952 | $ | 2,422 | $ | 3,122 | |||||||
Exclude adjustments: | |||||||||||||||
Blender’s tax credit attributable to Corporation | 192 | (33 | ) | 80 | 10 | ||||||||||
Income tax (expense) benefit related to blender’s tax credit | (5 | ) | 1 | (2 | ) | (9 | ) | ||||||||
Blender’s tax credit attributable to Corporation | 187 | (32 | ) | 78 | 1 | ||||||||||
— | (3 | ) | — | (17 | ) | ||||||||||
Income tax benefit related to fire expenses | — | 1 | — | 4 | |||||||||||
— | (2 | ) | — | (13 | ) | ||||||||||
Environmental reserve adjustments (c) | — | — | — | (108 | ) | ||||||||||
Income tax benefit related to environmental reserve adjustments | — | — | — | 24 | |||||||||||
Environmental reserve adjustments, net of taxes | — | — | — | (84 | ) | ||||||||||
Loss on early redemption of debt (d) | — | — | (22 | ) | (38 | ) | |||||||||
Income tax benefit related to loss on early redemption of debt | — | — | 5 | 9 | |||||||||||
Loss on early redemption of debt, net of taxes | — | — | (17 | ) | (29 | ) | |||||||||
Income tax benefit from Tax Reform (e) | — | 12 | — | 12 | |||||||||||
Foreign tax credit (f) | — | 42 | — | — | |||||||||||
Total adjustments | 187 | 20 | 61 | (113 | ) | ||||||||||
Adjusted net income attributable to | $ | 873 | $ | 932 | $ | 2,361 | $ | 3,235 | |||||||
Reconciliation of earnings per common share – assuming dilution to adjusted earnings per common share – assuming dilution | |||||||||||||||
Earnings per common share – assuming dilution | $ | 2.58 | $ | 2.24 | $ | 5.84 | $ | 7.29 | |||||||
Exclude adjustments: | |||||||||||||||
Blender’s tax credit attributable to Corporation | 0.45 | (0.07 | ) | 0.18 | — | ||||||||||
— | (0.01 | ) | — | (0.02 | ) | ||||||||||
Environmental reserve adjustments (c) | — | — | — | (0.20 | ) | ||||||||||
Loss on early redemption of debt (d) | — | — | (0.04 | ) | (0.07 | ) | |||||||||
Income tax benefit from Tax Reform (e) | — | 0.03 | — | 0.03 | |||||||||||
Foreign tax credit (f) | — | 0.10 | — | — | |||||||||||
Total adjustments | 0.45 | 0.05 | 0.14 | (0.26 | ) | ||||||||||
Adjusted earnings per common share – assuming dilution | $ | 2.13 | $ | 2.19 | $ | 5.70 | $ | 7.55 | |||||||
See Notes to Earnings Release Tables.
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER
(millions of dollars)
(unaudited)
Three Months Ended | Year Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Reconciliation of operating income by segment to segment margin, and reconciliation of operating income by segment to adjusted operating income by segment | |||||||||||||||
Refining segment (g) | |||||||||||||||
Refining operating income | $ | 1,419 | $ | 1,468 | $ | 4,022 | $ | 5,143 | |||||||
Exclude: | |||||||||||||||
Blender’s tax credit (a) | 15 | — | 2 | 8 | |||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | (1,092 | ) | (1,097 | ) | (4,289 | ) | (4,154 | ) | |||||||
Depreciation and amortization expense | (523 | ) | (487 | ) | (2,062 | ) | (1,910 | ) | |||||||
Other operating expenses (b) | (7 | ) | (4 | ) | (20 | ) | (45 | ) | |||||||
Refining margin | $ | 3,026 | $ | 3,056 | $ | 10,391 | $ | 11,244 | |||||||
Refining operating income | $ | 1,419 | $ | 1,468 | $ | 4,022 | $ | 5,143 | |||||||
Exclude: | |||||||||||||||
Blender’s tax credit (a) | 15 | — | 2 | 8 | |||||||||||
Other operating expenses (b) | (7 | ) | (4 | ) | (20 | ) | (45 | ) | |||||||
Adjusted refining operating income | $ | 1,411 | $ | 1,472 | $ | 4,040 | $ | 5,180 | |||||||
Ethanol segment | |||||||||||||||
Ethanol operating income (loss) | $ | 36 | $ | (27 | ) | $ | 3 | $ | 82 | ||||||
Exclude: | |||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | (126 | ) | (134 | ) | (504 | ) | (470 | ) | |||||||
Depreciation and amortization expense | (22 | ) | (21 | ) | (90 | ) | (78 | ) | |||||||
Other operating expenses (b) | — | — | (1 | ) | — | ||||||||||
Ethanol margin | $ | 184 | $ | 128 | $ | 598 | $ | 630 | |||||||
Ethanol operating income (loss) | $ | 36 | $ | (27 | ) | $ | 3 | $ | 82 | ||||||
Exclude: Other operating expenses (b) | — | — | (1 | ) | — | ||||||||||
Adjusted ethanol operating income (loss) | $ | 36 | $ | (27 | ) | $ | 4 | $ | 82 | ||||||
Renewable diesel segment (g) | |||||||||||||||
Renewable diesel operating income | $ | 541 | $ | 101 | $ | 732 | $ | 321 | |||||||
Exclude: | |||||||||||||||
Blender’s tax credit (a) | 354 | (66 | ) | 156 | 4 | ||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | (21 | ) | (20 | ) | (75 | ) | (66 | ) | |||||||
Depreciation and amortization expense | (12 | ) | (10 | ) | (50 | ) | (29 | ) | |||||||
Renewable diesel margin | $ | 220 | $ | 197 | $ | 701 | $ | 412 | |||||||
Renewable diesel operating income | $ | 541 | $ | 101 | $ | 732 | $ | 321 | |||||||
Exclude: Blender’s tax credit (a) | 354 | (66 | ) | 156 | 4 | ||||||||||
Adjusted renewable diesel operating income | $ | 187 | $ | 167 | $ | 576 | $ | 317 | |||||||
See Notes to Earnings Release Tables.
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER
(millions of dollars)
(unaudited)
Three Months Ended | Year Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Reconciliation of refining segment operating income to refining margin (by region), and reconciliation of refining segment operating income to adjusted refining segment operating income (by region) (i) | |||||||||||||||
Refining operating income | $ | 706 | $ | 499 | $ | 1,485 | $ | 2,328 | |||||||
Exclude: | |||||||||||||||
Blender’s tax credit (a) | 11 | — | 2 | 5 | |||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | (610 | ) | (616 | ) | (2,436 | ) | (2,326 | ) | |||||||
Depreciation and amortization expense | (325 | ) | (292 | ) | (1,279 | ) | (1,157 | ) | |||||||
Other operating expenses (b) | (5 | ) | (3 | ) | (13 | ) | (42 | ) | |||||||
Refining margin | $ | 1,635 | $ | 1,410 | $ | 5,211 | $ | 5,848 | |||||||
Refining operating income | $ | 706 | $ | 499 | $ | 1,485 | $ | 2,328 | |||||||
Exclude: | |||||||||||||||
Blender’s tax credit (a) | 11 | — | 2 | 5 | |||||||||||
Other operating expenses (b) | (5 | ) | (3 | ) | (13 | ) | (42 | ) | |||||||
Adjusted refining operating income | $ | 700 | $ | 502 | $ | 1,496 | $ | 2,365 | |||||||
Refining operating income | $ | 251 | $ | 416 | $ | 1,242 | $ | 1,488 | |||||||
Exclude: | |||||||||||||||
Blender’s tax credit (a) | 3 | — | — | 2 | |||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | (164 | ) | (164 | ) | (632 | ) | (632 | ) | |||||||
Depreciation and amortization expense | (82 | ) | (78 | ) | (308 | ) | (291 | ) | |||||||
Other operating expenses (b) | — | — | (2 | ) | — | ||||||||||
Refining margin | $ | 494 | $ | 658 | $ | 2,184 | $ | 2,409 | |||||||
Refining operating income | $ | 251 | $ | 416 | $ | 1,242 | $ | 1,488 | |||||||
Exclude: | |||||||||||||||
Blender’s tax credit (a) | 3 | — | — | 2 | |||||||||||
Other operating expenses (b) | — | — | (2 | ) | — | ||||||||||
Adjusted refining operating income | $ | 248 | $ | 416 | $ | 1,244 | $ | 1,486 | |||||||
See Notes to Earnings Release Tables.
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER
(millions of dollars)
(unaudited)
Three Months Ended | Year Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Reconciliation of refining segment operating income to refining margin (by region), and reconciliation of refining segment operating income to adjusted refining segment operating income (by region) (i) (continued) | |||||||||||||||
North | |||||||||||||||
Refining operating income | $ | 314 | $ | 516 | $ | 1,041 | $ | 1,136 | |||||||
Exclude: | |||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | (154 | ) | (163 | ) | (593 | ) | (595 | ) | |||||||
Depreciation and amortization expense | (53 | ) | (53 | ) | (213 | ) | (220 | ) | |||||||
Other operating expenses (b) | (2 | ) | — | (4 | ) | — | |||||||||
Refining margin | $ | 523 | $ | 732 | $ | 1,851 | $ | 1,951 | |||||||
Refining operating income | $ | 314 | $ | 516 | $ | 1,041 | $ | 1,136 | |||||||
Exclude: other operating expenses (b) | (2 | ) | — | (4 | ) | — | |||||||||
Adjusted refining operating income | $ | 316 | $ | 516 | $ | 1,045 | $ | 1,136 | |||||||
Refining operating income | $ | 148 | $ | 37 | $ | 254 | $ | 191 | |||||||
Exclude: | |||||||||||||||
Blender’s tax credit (a) | 1 | — | — | 1 | |||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | (164 | ) | (154 | ) | (628 | ) | (601 | ) | |||||||
Depreciation and amortization expense | (63 | ) | (64 | ) | (262 | ) | (242 | ) | |||||||
Other operating expenses (b) | — | (1 | ) | (1 | ) | (3 | ) | ||||||||
Refining margin | $ | 374 | $ | 256 | $ | 1,145 | $ | 1,036 | |||||||
Refining operating income | $ | 148 | $ | 37 | $ | 254 | $ | 191 | |||||||
Exclude: | |||||||||||||||
Blender’s tax credit (a) | 1 | — | — | 1 | |||||||||||
Other operating expenses (b) | — | (1 | ) | (1 | ) | (3 | ) | ||||||||
Adjusted refining operating income | $ | 147 | $ | 38 | $ | 255 | $ | 193 | |||||||
See Notes to Earnings Release Tables.
EARNINGS RELEASE TABLES
REFINING SEGMENT OPERATING HIGHLIGHTS
(millions of dollars, except per barrel amounts)
(unaudited)
Three Months Ended | Year Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Throughput volumes (thousand barrels per day) | |||||||||||||||
Feedstocks: | |||||||||||||||
Heavy sour crude oil | 329 | 445 | 394 | 469 | |||||||||||
Medium/light sour crude oil | 242 | 408 | 272 | 418 | |||||||||||
Sweet crude oil | 1,676 | 1,464 | 1,581 | 1,410 | |||||||||||
Residuals | 236 | 229 | 215 | 232 | |||||||||||
Other feedstocks | 157 | 124 | 153 | 127 | |||||||||||
Total feedstocks | 2,640 | 2,670 | 2,615 | 2,656 | |||||||||||
Blendstocks and other | 378 | 343 | 337 | 330 | |||||||||||
Total throughput volumes | 3,018 | 3,013 | 2,952 | 2,986 | |||||||||||
Yields (thousand barrels per day) | |||||||||||||||
Gasolines and blendstocks | 1,511 | 1,484 | 1,423 | 1,443 | |||||||||||
Distillates | 1,136 | 1,126 | 1,126 | 1,133 | |||||||||||
Other products (j) | 405 | 442 | 433 | 449 | |||||||||||
Total yields | 3,052 | 3,052 | 2,982 | 3,025 | |||||||||||
Operating statistics (g) (h) (k) | |||||||||||||||
Refining margin | $ | 3,026 | $ | 3,056 | $ | 10,391 | $ | 11,244 | |||||||
Adjusted refining operating income | $ | 1,411 | $ | 1,472 | $ | 4,040 | $ | 5,180 | |||||||
Throughput volumes (thousand barrels per day) | 3,018 | 3,013 | 2,952 | 2,986 | |||||||||||
Refining margin per barrel of throughput | $ | 10.90 | $ | 11.03 | $ | 9.65 | $ | 10.32 | |||||||
Less: | |||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput | 3.93 | 3.96 | 3.98 | 3.82 | |||||||||||
Depreciation and amortization expense per barrel of throughput | 1.89 | 1.76 | 1.92 | 1.75 | |||||||||||
Adjusted refining operating income per barrel of throughput | $ | 5.08 | $ | 5.31 | $ | 3.75 | $ | 4.75 | |||||||
See Notes to Earnings Release Tables.
EARNINGS RELEASE TABLES
ETHANOL SEGMENT OPERATING HIGHLIGHTS
(millions of dollars, except per gallon amounts)
(unaudited)
Three Months Ended | Year Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating statistics (h) (k) | |||||||||||||||
Ethanol margin | $ | 184 | $ | 128 | $ | 598 | $ | 630 | |||||||
Adjusted ethanol operating income (loss) | $ | 36 | $ | (27 | ) | $ | 4 | $ | 82 | ||||||
Production volumes (thousand gallons per day) | 4,321 | 4,251 | 4,269 | 4,109 | |||||||||||
Ethanol margin per gallon of production | $ | 0.46 | $ | 0.33 | $ | 0.38 | $ | 0.42 | |||||||
Less: | |||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) per gallon of production | 0.32 | 0.34 | 0.32 | 0.31 | |||||||||||
Depreciation and amortization expense per gallon of production | 0.06 | 0.06 | 0.06 | 0.06 | |||||||||||
Adjusted ethanol operating income (loss) per gallon of production | $ | 0.08 | $ | (0.07 | ) | $ | — | $ | 0.05 | ||||||
See Notes to Earnings Release Tables.
EARNINGS RELEASE TABLES
RENEWABLE DIESEL SEGMENT OPERATING HIGHLIGHTS (g)
(millions of dollars, except per gallon amounts)
(unaudited)
Three Months Ended | Year Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating statistics (h) (k) | |||||||||||||||
Renewable diesel margin | $ | 220 | $ | 197 | $ | 701 | $ | 412 | |||||||
Adjusted renewable diesel operating income | $ | 187 | $ | 167 | $ | 576 | $ | 317 | |||||||
Sales volumes (thousand gallons per day) | 844 | 720 | 760 | 431 | |||||||||||
Renewable diesel margin per gallon of sales | $ | 2.84 | $ | 2.96 | $ | 2.53 | $ | 2.60 | |||||||
Less: | |||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) per gallon of sales | 0.27 | 0.29 | 0.27 | 0.41 | |||||||||||
Depreciation and amortization expense per gallon of sales | 0.15 | 0.16 | 0.18 | 0.18 | |||||||||||
Adjusted renewable diesel operating income per gallon of sales | $ | 2.42 | $ | 2.51 | $ | 2.08 | $ | 2.01 | |||||||
See Notes to Earnings Release Tables.
EARNINGS RELEASE TABLES
REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION
(millions of dollars, except per barrel amounts)
(unaudited)
Three Months Ended | Year Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating statistics by region (i) | |||||||||||||||
Refining margin | $ | 1,635 | $ | 1,410 | $ | 5,211 | $ | 5,848 | |||||||
Adjusted refining operating income | $ | 700 | $ | 502 | $ | 1,496 | $ | 2,365 | |||||||
Throughput volumes (thousand barrels per day) | 1,762 | 1,797 | 1,740 | 1,772 | |||||||||||
Refining margin per barrel of throughput | $ | 10.08 | $ | 8.53 | $ | 8.21 | $ | 9.04 | |||||||
Less: | |||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput | 3.76 | 3.73 | 3.84 | 3.60 | |||||||||||
Depreciation and amortization expense per barrel of throughput | 2.01 | 1.76 | 2.01 | 1.79 | |||||||||||
Adjusted refining operating income per barrel of throughput | $ | 4.31 | $ | 3.04 | $ | 2.36 | $ | 3.65 | |||||||
Refining margin | $ | 494 | $ | 658 | $ | 2,184 | $ | 2,409 | |||||||
Adjusted refining operating income | $ | 248 | $ | 416 | $ | 1,244 | $ | 1,486 | |||||||
Throughput volumes (thousand barrels per day) | 463 | 450 | 454 | 466 | |||||||||||
Refining margin per barrel of throughput | $ | 11.60 | $ | 15.89 | $ | 13.17 | $ | 14.17 | |||||||
Less: | |||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput | 3.84 | 3.95 | 3.81 | 3.72 | |||||||||||
Depreciation and amortization expense per barrel of throughput | 1.90 | 1.89 | 1.85 | 1.71 | |||||||||||
Adjusted refining operating income per barrel of throughput | $ | 5.86 | $ | 10.05 | $ | 7.51 | $ | 8.74 | |||||||
See Notes to Earnings Release Tables.
EARNINGS RELEASE TABLES
REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION
(millions of dollars, except per barrel amounts)
(unaudited)
Three Months Ended | Year Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating statistics by region (i) (continued) | |||||||||||||||
North | |||||||||||||||
Refining margin | $ | 523 | $ | 732 | $ | 1,851 | $ | 1,951 | |||||||
Adjusted refining operating income | $ | 316 | $ | 516 | $ | 1,045 | $ | 1,136 | |||||||
Throughput volumes (thousand barrels per day) | 510 | 500 | 492 | 466 | |||||||||||
Refining margin per barrel of throughput | $ | 11.14 | $ | 15.91 | $ | 10.31 | $ | 11.46 | |||||||
Less: | |||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput | 3.29 | 3.53 | 3.30 | 3.49 | |||||||||||
Depreciation and amortization expense per barrel of throughput | 1.12 | 1.15 | 1.19 | 1.29 | |||||||||||
Adjusted refining operating income per barrel of throughput | $ | 6.73 | $ | 11.23 | $ | 5.82 | $ | 6.68 | |||||||
Refining margin | $ | 374 | $ | 256 | $ | 1,145 | $ | 1,036 | |||||||
Adjusted refining operating income | $ | 147 | $ | 38 | $ | 255 | $ | 193 | |||||||
Throughput volumes (thousand barrels per day) | 283 | 266 | 266 | 282 | |||||||||||
Refining margin per barrel of throughput | $ | 14.37 | $ | 10.47 | $ | 11.80 | $ | 10.06 | |||||||
Less: | |||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput | 6.30 | 6.30 | 6.47 | 5.84 | |||||||||||
Depreciation and amortization expense per barrel of throughput | 2.45 | 2.60 | 2.71 | 2.34 | |||||||||||
Adjusted refining operating income per barrel of throughput | $ | 5.62 | $ | 1.57 | $ | 2.62 | $ | 1.88 | |||||||
See Notes to Earnings Release Tables.
EARNINGS RELEASE TABLES
AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS
(unaudited)
Three Months Ended | Year Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Refining | |||||||||||||||
Feedstocks (dollars per barrel) | |||||||||||||||
Brent crude oil | $ | 62.49 | $ | 68.46 | $ | 64.18 | $ | 71.62 | |||||||
Brent less West Texas Intermediate (WTI) crude oil | 5.51 | 9.38 | 7.15 | 6.71 | |||||||||||
Brent less Alaska North Slope (ANS) crude oil | (1.92 | ) | (0.18 | ) | (0.86 | ) | 0.31 | ||||||||
Brent less Louisiana | 1.67 | 1.94 | 1.47 | 1.72 | |||||||||||
Brent less Argus Sour Crude Index (ASCI) crude oil | 4.72 | 5.15 | 3.56 | 5.20 | |||||||||||
Brent less Maya crude oil | 9.56 | 4.76 | 6.57 | 9.22 | |||||||||||
LLS crude oil | 60.82 | 66.52 | 62.71 | 69.90 | |||||||||||
LLS less ASCI crude oil | 3.05 | 3.21 | 2.09 | 3.48 | |||||||||||
LLS less Maya crude oil | 7.89 | 2.82 | 5.10 | 7.50 | |||||||||||
WTI crude oil | 56.98 | 59.08 | 57.03 | 64.91 | |||||||||||
Natural gas (dollars per million British Thermal Units) | 2.26 | 3.86 | 2.47 | 3.23 | |||||||||||
Products (dollars per barrel, unless otherwise noted) | |||||||||||||||
Conventional Blendstock of Oxygenate Blending (CBOB) gasoline less Brent | 3.79 | (2.60 | ) | 4.37 | 4.81 | ||||||||||
Ultra-low-sulfur (ULS) diesel less Brent | 15.92 | 14.91 | 14.90 | 14.02 | |||||||||||
Propylene less Brent | (24.54 | ) | (3.55 | ) | (22.31 | ) | (2.86 | ) | |||||||
CBOB gasoline less LLS | 5.46 | (0.66 | ) | 5.84 | 6.53 | ||||||||||
ULS diesel less LLS | 17.59 | 16.85 | 16.37 | 15.74 | |||||||||||
Propylene less LLS | (22.87 | ) | (1.61 | ) | (20.84 | ) | (1.14 | ) | |||||||
CBOB gasoline less WTI | 10.73 | 8.60 | 13.62 | 13.70 | |||||||||||
ULS diesel less WTI | 22.31 | 26.66 | 22.77 | 22.82 | |||||||||||
North | |||||||||||||||
CBOB gasoline less Brent | 7.33 | 0.68 | 7.20 | 7.59 | |||||||||||
ULS diesel less Brent | 19.42 | 18.43 | 17.22 | 16.29 | |||||||||||
California Reformulated Gasoline Blendstock of Oxygenate Blending (CARBOB) 87 gasoline less ANS | 14.84 | 7.05 | 16.28 | 13.05 | |||||||||||
21.50 | 18.69 | 19.30 | 18.13 | ||||||||||||
CARBOB 87 gasoline less WTI | 22.27 | 16.61 | 24.29 | 19.45 | |||||||||||
CARB diesel less WTI | 28.93 | 28.25 | 27.31 | 24.53 | |||||||||||
See Notes to Earnings Release Tables.
EARNINGS RELEASE TABLES
AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS
(unaudited)
Three Months Ended | Year Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Ethanol | |||||||||||||||
$ | 3.81 | $ | 3.70 | $ | 3.84 | $ | 3.68 | ||||||||
1.62 | 1.38 | 1.53 | 1.48 | ||||||||||||
Renewable diesel | |||||||||||||||
New York Mercantile Exchange ULS diesel (dollars per gallon) | 1.95 | 2.06 | 1.94 | 2.09 | |||||||||||
Biodiesel Renewable Identification Number (RIN) (dollars per RIN) | 0.56 | 0.40 | 0.48 | 0.53 | |||||||||||
California Low-Carbon Fuel Standard (dollars per metric ton) | 206.04 | 191.63 | 196.82 | 168.24 | |||||||||||
CBOT soybean oil (dollars per pound) | 0.31 | 0.28 | 0.29 | 0.30 |
See Notes to Earnings Release Tables.
EARNINGS RELEASE TABLES
OTHER FINANCIAL DATA
(millions of dollars, except per share amounts)
(unaudited)
2019 | 2018 | ||||||
Balance sheet data | |||||||
Current assets | $ | 18,969 | $ | 17,675 | |||
Cash and cash equivalents included in current assets | 2,583 | 2,982 | |||||
Inventories included in current assets | 7,013 | 6,532 | |||||
Current liabilities | 13,160 | 10,724 | |||||
Current portion of debt and finance lease obligations included in current liabilities | 494 | 238 | |||||
Debt and finance lease obligations, less current portion | 9,178 | 8,871 | |||||
Total debt and finance lease obligations | 9,672 | 9,109 | |||||
21,803 | 21,667 | ||||||
Three Months Ended | Year Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Reconciliation of net cash provided by operating activities to adjusted net cash provided by operating activities (h) | |||||||||||||||
Net cash provided by operating activities | $ | 1,708 | $ | 1,678 | $ | 5,531 | $ | 4,371 | |||||||
Exclude: | |||||||||||||||
Changes in current assets and current liabilities | (434 | ) | (123 | ) | 294 | (1,297 | ) | ||||||||
Diamond Green Diesel LLC’s (DGD) adjusted net cash provided by operating activities attributable to our joint venture partner’s ownership interest in DGD | 277 | 56 | 390 | 175 | |||||||||||
Adjusted net cash provided by operating activities | $ | 1,865 | $ | 1,745 | $ | 4,847 | $ | 5,493 | |||||||
Dividends per common share | $ | 0.90 | $ | 0.80 | $ | 3.60 | $ | 3.20 | |||||||
See Notes to Earnings Release Tables.
NOTES TO EARNINGS RELEASE TABLES
(a) Cost of materials and other for the three months and year ended
Refining | Renewable Diesel | Total | |||||||||
Periods to which blender’s tax credit is attributable | |||||||||||
2019 blender’s tax credit: | |||||||||||
Nine months ended | $ | 13 | $ | 198 | $ | 211 | |||||
Three months ended | 3 | 77 | 80 | ||||||||
Total 2019 blender’s tax credit | 16 | 275 | 291 | ||||||||
2018 blender’s tax credit: | |||||||||||
Nine months ended | 2 | 90 | 92 | ||||||||
Three months ended | — | 66 | 66 | ||||||||
Total 2018 blender’s tax credit | 2 | 156 | 158 | ||||||||
Total recognized in 2019 | $ | 18 | $ | 431 | $ | 449 |
Of the $449 million pre-tax benefit, $215 million is attributable to noncontrolling interest and $234 million is attributable to
Cost of materials and other for the year ended
(b) Other operating expenses reflects expenses that are not associated with our cost of sales and primarily includes costs to repair, remediate, and restore our facilities to normal operations following a non-operating event such as a natural disaster or a major unplanned outage.
(c) General and administrative expenses (excluding depreciation and amortization expense) for the year ended
(d) “Other income, net” for the year ended
(e) On
(f) Income tax expense for the three months and year ended
(g) Effective
(h) We use certain financial measures (as noted below) in the earnings release tables and accompanying earnings release that are not defined under U.S. 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 U.S. GAAP measures, they provide improved comparability between periods through the exclusion of 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 U.S. GAAP measures nor should they be considered in isolation or as a substitute for an analysis of our results of operations as reported under U.S. 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:
- Adjusted net income attributable to
Valero Energy Corporation stockholders is defined as net income attributable toValero Energy Corporation stockholders excluding the items noted below, along with their related income tax effect. We have excluded these items because we believe that they are not indicative of our core operating performance and that their exclusion results in an important measure of our ongoing financial performance to better assess our underlying business results and trends. The basis for our belief with respect to each excluded item is provided below.
– Blender’s tax credit attributable to
Valero Energy Corporation stockholders - We regularly blend renewable diesel with petroleum-based diesel even when there is noU.S. federal tax credit associated with such blending activity. From time to time, the legislation authorizing the blender’s tax credit has been applied retroactively, and we recognize the credit associated with volumes blended during the retroactive period at the time the legislation is signed into law (see note (a)). Therefore, when the period in which the blender’s tax credit is recognized differs from the period in which the blending occurred, we exclude the credit associated with prior-period blending from the period in which it was recognized. Accordingly, the adjustment to reflect the blender’s tax credit attributable toValero Energy Corporation stockholders that was recognized in 2019 and 2018 but associated with volumes blended in other periods is calculated as follows (in millions):
Three Months Ended | Year Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
2019 and 2018 credits recognized in 2019 | $ | 449 | $ | — | $ | 449 | $ | — | |||||||
Less: | |||||||||||||||
Amount related to noncontrolling interest | 215 | — | 215 | — | |||||||||||
Amount related to | 42 | 33 | 154 | 80 | |||||||||||
Adjustment related to 2019 and 2018 blender’s tax credits recognized in 2019 | 192 | (33 | ) | 80 | (80 | ) | |||||||||
2017 credits recognized in 2018 | — | — | — | 170 | |||||||||||
Less: Amount related to noncontrolling interest | — | — | — | 80 | |||||||||||
Adjustment related to 2017 blender’s tax credit recognized in 2018 | — | — | — | 90 | |||||||||||
Total adjustment to reflect blender’s tax credit in proper period | $ | 192 | $ | (33 | ) | $ | 80 | $ | 10 | ||||||
–
Texas City Refinery fire expenses - The costs incurred to respond to and assess the damage caused by the fire that occurred at theTexas City Refinery are specific to that event and are not ongoing costs incurred in our operations.
– Environmental reserve adjustments - The environmental reserve adjustments are attributable to sites that were shut down by prior owners and subsequently acquired by us (referred to by us as non-operating sites) (see note (c)).
– Loss on early redemption of debt - The penalty and other expenses incurred in connection with the early redemption of our 6.125 percent senior notes dueFebruary 1, 2020 and 9.375 percent senior notes dueMarch 15, 2019 (see note (d)) are not associated with the ongoing costs of our borrowing and financing activities.
– Income tax benefit from Tax Reform - The income tax benefit from Tax Reform (see note (e)) is associated with changes inU.S. tax legislation and is not indicative of our core performance.
– Foreign tax credit - The income tax benefit from the foreign tax credit (see note (f)) is attributable to the nine months endedSeptember 30, 2018 and is not indicative of our core performance during the three months endedDecember 31, 2018 .
- Adjusted earnings per common share – assuming dilution is defined as adjusted net income attributable to
Valero Energy Corporation stockholders divided by the number of weighted-average shares outstanding in the applicable period, assuming dilution. - Refining margin is defined as refining operating income excluding the blender’s tax credit (see note (a)), operating expenses (excluding depreciation and amortization expense), depreciation and amortization expense, and other operating expenses. We believe refining margin is an important measure of our refining segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance.
- Ethanol margin is defined as ethanol operating income (loss) excluding operating expenses (excluding depreciation and amortization expense), depreciation and amortization expense, and other operating expenses. We believe ethanol margin is an important measure of our ethanol segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance.
- Renewable diesel margin is defined as renewable diesel operating income excluding the blender’s tax credit (see note (a)), operating expenses (excluding depreciation and amortization expense), and depreciation and amortization expense. We believe renewable diesel margin is an important measure of our renewable diesel segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance.
- Adjusted refining operating income is defined as refining segment operating income excluding the blender’s tax credit (see note (a)) and other operating expenses. We believe adjusted refining operating income is an important measure of our refining segment’s operating and financial performance because it excludes items that are not indicative of that segment’s core operating performance.
- Adjusted ethanol operating income (loss) is defined as ethanol segment operating income (loss) excluding other operating expenses. We believe this is an important measure of our ethanol segment’s operating and financial performance because it excludes items that are not indicative of that segment’s core operating performance.
- Adjusted renewable diesel operating income is defined as renewable diesel segment operating income excluding the blender’s tax credit (see note (a)). We believe this is an important measure of our renewable diesel segment’s operating and financial performance because it excludes items that are not indicative of that segment’s core operating performance.
- Adjusted net cash provided by operating activities is defined as net cash provided by operating activities excluding the items noted below. We believe adjusted net cash provided by operating activities is an important measure of our ongoing financial performance to better assess our ability to generate cash to fund our investing and financing activities. The basis for our belief with respect to each excluded item is provided below.
– 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 our joint venture partner’s ownership interest in DGD - We are a 50/50 joint venture partner in DGD and consolidate DGD’s financial statements; as a result, 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 partners 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 partner 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 our joint venture partner’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 | Year Ended | ||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||
DGD operating cash flow data | |||||||||||||||||||
Net cash provided by operating activities | $ | 88 | $ | 92 | $ | 315 | $ | 319 | |||||||||||
Less: changes in current assets and current liabilities | (465 | ) | (19 | ) | (465 | ) | (30 | ) | |||||||||||
Adjusted net cash provided by operating activities | 553 | 111 | 780 | 349 | |||||||||||||||
Our partner’s ownership interest | 50 | % | 50 | % | 50 | % | 50 | % | |||||||||||
DGD’s adjusted net cash provided by operating activities attributable to our joint venture partner’s ownership interest in DGD | $ | 277 | $ | 56 | $ | 390 | $ | 175 | |||||||||||
(i) The refining segment regions reflected herein contain the following refineries:
(j) Primarily includes petrochemicals, gas oils, No. 6 fuel oil, petroleum coke, sulfur, and asphalt.
(k) 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 production, and per gallon of sales amounts are calculated by dividing the associated dollar amount by the throughput volumes, production volumes, and sales volumes for the period, as applicable.
Throughput volumes, production volumes, and sales volumes are calculated by multiplying throughput volumes per day, production volumes per day, and sales volumes per day (as provided in the accompanying tables), respectively, by the number of days in the applicable period. We use throughput volumes, production volumes, and sales volumes for the refining segment, ethanol segment, and renewable diesel 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.
Source:
2020 GlobeNewswire, Inc., source