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<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b>1. BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">As used in this report, the terms “Valero,” “we,” “us,” or “our” may refer to Valero Energy
Corporation, one or more of its consolidated subsidiaries, or all of them taken as a whole.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">These unaudited consolidated financial statements include the accounts of Valero and subsidiaries
in which Valero has a controlling interest. Intercompany balances and transactions have been
eliminated in consolidation. Investments in significant non-controlled entities are accounted for
using the equity method.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">These unaudited consolidated financial statements have been prepared in accordance with United
States generally accepted accounting principles (GAAP) for interim financial information and with
the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of
1934. Accordingly, they do not include all of the information and notes required by GAAP for
complete consolidated financial statements. In the opinion of management, all adjustments
considered necessary for a fair presentation have been included. All such adjustments are of a
normal recurring nature unless disclosed otherwise. Financial information for the three and six
months ended June 30, 2009 and 2008 included in these Condensed Notes to Consolidated Financial
Statements is derived from our unaudited consolidated financial statements. Operating results for
the three and six months ended June 30, 2009 are not necessarily indicative of the results that may
be expected for the year ending December 31, 2009.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">The consolidated balance sheet as of December 31, 2008 has been derived from the audited financial
statements as of that date. For further information, refer to the consolidated financial
statements and notes thereto included in our annual report on <font style="white-space: nowrap">Form 10-K</font> for the year ended December
31, 2008.
</div>
<div align="left"><font size="1"><R></font>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">We have evaluated subsequent events that occurred after June 30, 2009 through the filing of this
Form 10-Q on August 7, 2009. Any material subsequent events that
occurred during this time have been properly recognized or disclosed in our financial statements.
</div>
<div align="left"><font size="1"></R></font>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>Use of Estimates</i></b><br />
The preparation of financial statements in conformity with GAAP requires our management to make
estimates and assumptions that affect the amounts reported in the consolidated financial statements
and accompanying notes. Actual results could differ from those estimates. On an ongoing basis,
management reviews its estimates based on currently available information. Changes in facts and
circumstances may result in revised estimates.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>Reclassifications</i></b><br />
Certain amounts previously reported for the three and six months ended June 30, 2008 have been
reclassified to conform to the 2009 presentation.
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<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b>2. ACCOUNTING PRONOUNCEMENTS</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>FSP No. FAS 157-2</i></b><br />
In February 2008, the Financial Accounting Standards Board (FASB) issued Staff Position
No. FAS 157-2 (FSP No. 157-2), which delayed the effective date of Statement No. 157, “Fair Value
Measurements,” for nonfinancial assets and nonfinancial liabilities, except for items that are
recognized
or disclosed at fair value in the financial statements on a recurring basis (at least annually),
until fiscal years beginning after November 15, 2008. The exceptions apply to the following:
nonfinancial assets and nonfinancial liabilities measured at fair value in a business combination;
impaired property, plant and equipment; goodwill; and the initial recognition of the fair value of
asset retirement obligations and restructuring costs. The implementation of Statement No. 157 for
these assets and liabilities effective January 1, 2009 did not affect our financial position or
results of operations but did result in additional disclosures, which are provided in Note 9.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>FASB Statement No. 141 (revised 2007)</i></b><br />
In December 2007, the FASB issued Statement No. 141 (revised 2007), “Business Combinations”
(Statement No. 141(R)). This statement improves the financial reporting of business combinations
and clarifies the accounting for these transactions. The provisions of Statement No. 141(R) are to
be applied prospectively to business combinations with acquisition dates on or after the beginning
of an entity’s fiscal year that begins on or after December 15, 2008, with early adoption
prohibited. Due to the adoption of Statement No. 141(R) effective January 1, 2009, the provisions
of this statement were applied to the acquisition of certain ethanol plants from VeraSun Energy
Corporation (VeraSun) in the second quarter of 2009, which is discussed in Note 3.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>FASB Statement No. 160</i></b><br />
In December 2007, the FASB issued Statement No. 160, “Noncontrolling Interests in Consolidated
Financial Statements – an amendment of ARB No. 51.” Statement No. 160 is effective for fiscal
years, and interim periods within those fiscal years, beginning on or after December 15, 2008.
This statement provides guidance for the accounting and reporting of noncontrolling interests,
changes in controlling interests, and the deconsolidation of subsidiaries. In addition, Statement
No. 160 amends FASB Statement No. 128, “Earnings per Share,” to specify the computation,
presentation, and disclosure requirements for earnings per share if an entity has one or more
noncontrolling interests. The adoption of Statement No. 160 effective January 1, 2009 has not
affected our financial position or results of operations.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>FASB Statement No. 161</i></b><br />
In March 2008, the FASB issued Statement No. 161, “Disclosures about Derivative Instruments and
Hedging Activities.” Statement No. 161 establishes, among other things, the disclosure
requirements for derivative instruments and for hedging activities. This statement requires
qualitative disclosures about objectives and strategies for using derivatives, quantitative
disclosures about fair value amounts of and gains and losses on derivative instruments, and
disclosures about contingent features related to credit risk in derivative agreements. Statement
No. 161 is effective for fiscal years, and interim periods within those fiscal years, beginning on
or after November 15, 2008. The adoption of Statement No. 161 effective January 1, 2009 did not
affect our financial position or results of operations but did result in additional disclosures,
which are provided in Note 10.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>FSP No. EITF 03-6-1</i></b><br />
In June 2008, the FASB issued Staff Position No. EITF 03-6-1, “Determining Whether Instruments
Granted in Share-Based Payment Transactions Are Participating Securities” (FSP No. EITF 03-6-1).
FSP No. EITF 03-6-1 addresses whether instruments granted in share-based payment transactions are
participating securities prior to vesting and, therefore, need to be included in the earnings
allocation in computing earnings per share under the two-class method described in Statement No.
128. FSP No. EITF 03-6-1 is effective for fiscal years, and interim periods within those fiscal
years, beginning
after December 15, 2008; early adoption is not permitted. Shares of restricted stock granted under
certain of our stock-based compensation plans represent participating securities covered by FSP No.
EITF 03-6-1. The adoption of FSP No. EITF 03-6-1 effective January 1, 2009 did not have any
effect on the calculation of basic earnings per common share for the three months ended June 30,
2009 and the six months ended June 30, 2009 and 2008, but did reduce basic earnings per common
share from the $1.40 amount originally reported for the three months ended June 30, 2008 to $1.39.
The calculation is provided in Note 7.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>EITF Issue No. 08-6</i></b><br />
In November 2008, the FASB ratified its consensus on EITF Issue No. 08-6, “Equity Method Investment
Accounting Considerations” (EITF No. 08-6). EITF No. 08-6 applies to all investments accounted for
under the equity method and provides guidance regarding (i) initial measurement of an equity
investment, (ii) recognition of an other-than-temporary impairment of an equity method investment,
including any impairment charge taken by the investee, and (iii) accounting for a change in
ownership level or degree of influence on an investee. The consensus is effective for fiscal years
beginning on or after December 15, 2008, and interim periods within those fiscal years. EITF
No. 08-6 is to be applied prospectively and earlier application is not permitted. Due to its
application to future equity method investments, the adoption of EITF No. 08-6 effective January 1,
2009 has not had any immediate effect on our financial position or results of operations.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>FSP No. FAS 132(R)-1</i></b><br />
In December 2008, the FASB issued Staff Position No. FAS 132(R)-1, “Employers’ Disclosures about
Postretirement Benefit Plan Assets” (FSP No. FAS 132(R)-1). FSP No. FAS 132(R)-1 amends FASB
Statement No. 132 (revised 2003), “Employers’ Disclosures about Pensions and Other Postretirement
Benefits,” to provide guidance on an employer’s disclosures about plan assets of a defined benefit
pension or other postretirement plan. The additional requirements of FSP No. FAS 132(R)-1 are
designed to enhance disclosures regarding (i) investment policies and strategies, (ii) categories
of plan assets, (iii) fair value measurements of plan assets, and (iv) significant concentrations
of risk. FSP No. FAS 132(R)-1 is effective for fiscal years ending after December 15, 2009, with
earlier application permitted. Since FSP No. FAS 132(R)-1 only affects disclosure requirements,
the adoption of FSP No. FAS 132(R)-1 will not affect our financial position or results of
operations.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>FSP No. FAS 141(R)-1</i></b><br />
In April 2009, the FASB issued Staff Position No. FAS 141(R)-1, “Accounting for Assets Acquired and
Liabilities Assumed in a Business Combination That Arise from Contingencies” (FSP No.
FAS 141(R)-1). FSP No. FAS 141(R)-1 amends and clarifies FASB Statement No. 141(R) to address
application issues raised related to (i) initial recognition and measurement, (ii) subsequent
measurement and accounting, and (iii) disclosure of assets and liabilities arising from
contingencies in a business combination. The provisions of FSP No. FAS 141(R)-1 are to be applied
to contingent assets or contingent liabilities acquired in business combinations for which the
acquisition date is on or after the beginning of an entity’s fiscal year that begins on or after
December 15, 2008. The adoption of FSP No. FAS 141(R)-1 effective January 1, 2009 has not had a
material effect on our financial position or results of operations.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>FSP No. FAS 107-1 and APB 28-1, FSP No. FAS 157-4, and FSP No. FAS 115-2 and FAS 124-2</i></b><br />
In April 2009, the FASB issued Staff Position No. FAS 107-1 and APB 28-1, “Interim Disclosures
about Fair Value of Financial Instruments” (FSP No. FAS 107-1 and APB 28-1). FSP No. FAS 107-1 and
APB 28-1 amends FASB Statement No. 107, “Disclosures about Fair Value of Financial Instruments,” to
require a publicly traded company to include disclosures about the fair value of its financial
instruments for interim reporting periods as well as in annual financial statements.
FSP No. FAS 107-1 and APB 28-1 is effective for interim reporting periods ending after June 15,
2009, with early adoption permitted for periods ending after March 15, 2009. The early adoption
provision of FSP No. FAS 107-1 and APB 28-1 is available only if an entity also elects to apply the
early adoption provisions of FASB Staff Position No. FAS 157-4, “Determining Fair Value When the
Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and
Identifying Transactions That Are Not Orderly” (FSP No. FAS 157-4), and FASB Staff
Position No. FAS 115-2 and FAS 124-2, “Recognition and Presentation of Other-Than-Temporary
Impairments” (FSP No. FAS 115-2 and FAS 124-2). We adopted these three FASB Staff Positions in the
first quarter of 2009, none of which has affected our financial position or results of operations.
However, the adoption of FSP No. FAS 107-1 and APB 28-1 resulted in additional interim disclosures
discussed below.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">Our financial instruments include cash and temporary cash investments, restricted cash,
receivables, payables, debt, capital lease obligations, commodity derivative contracts, and foreign
currency derivative contracts. The estimated fair values of these financial instruments
approximate their carrying amounts as reflected in the consolidated balance sheets, except for
certain debt as discussed in Note 5. The fair values of our debt, commodity derivative contracts,
and foreign currency derivative contracts were estimated primarily based on quoted market prices
and inputs other than quoted prices that are observable for the asset or liability.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>FASB Statement No. 165</i></b><br />
In May 2009, the FASB issued Statement No. 165, “Subsequent Events.” Statement No. 165 establishes
general standards of accounting for and disclosure of events that occur after the balance sheet
date but before financial statements are issued or are available to be issued. In particular,
Statement No. 165 provides guidance regarding (i) the period after the balance sheet date during
which management of a reporting entity should evaluate events or transactions that may occur for
potential recognition or disclosure in the financial statements, (ii) the circumstances under which
an entity should recognize events or transactions occurring after the balance sheet date in its
financial statements, and (iii) the disclosures that an entity should make about events or
transactions that occurred after the balance sheet date. The provisions of Statement No. 165 are
to be applied prospectively and are effective for interim or annual financial periods ending after
June 15, 2009. The adoption of Statement No. 165 in the second quarter of 2009 did not affect our
financial position or results of operations but did result in additional disclosures, which are
provided in Note 1.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>FASB Statement No. 166</i></b><br />
In June 2009, the FASB issued Statement No. 166, “Accounting for Transfers of Financial Assets – an
amendment of FASB Statement No. 140.” Statement No. 166 amends and clarifies the provisions of
Statement No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments
of Liabilities,” in order to address application and disclosure issues. In general, Statement
No. 166 clarifies the requirements for derecognizing transferred financial assets, removes the
concept of a qualifying special-purpose entity and related exceptions, and requires additional
disclosures related to transfers of financial assets. Statement No. 166 is effective for fiscal
years, and interim periods within those fiscal years, beginning after November 15, 2009, and
earlier application is prohibited. The adoption of Statement No. 166 effective January 1, 2010 is
not expected to materially affect our financial position or results of operations.
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<b>
</b>
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<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>FASB Statement No. 167</i></b><br />
In June 2009, the FASB issued Statement No. 167, “Amendments to FASB Interpretation No. 46(R).”
Statement No. 167 amends the provisions of FASB Interpretation No. 46 (revised December 2003),
“Consolidation of Variable Interest Entities,” to include entities previously considered qualifying
special-purpose entities, as the concept of these entities was eliminated by Statement No. 166.
This statement also clarifies consolidation requirements and expands disclosure requirements
related to variable interest entities. Statement No. 167 is effective for fiscal years, and
interim periods within those fiscal years, beginning after November 15, 2009, and earlier
application is prohibited. The adoption of Statement No. 167 effective January 1, 2010 is not
expected to materially affect our financial position or results of operations.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>FASB Statement No. 168</i></b><br />
In June 2009, the FASB issued Statement No. 168, “The <i>FASB Accounting Standards Codification</i>™ and
the Hierarchy of Generally Accepted Accounting Principles – a
replacement of FASB Statement No. 162”
(Codification). Statement No. 168 replaces Statement No. 162, “The Hierarchy of Generally Accepted
Accounting Principles,” and establishes the Codification as the source of authoritative GAAP
recognized by the FASB, to be applied by nongovernmental entities in the preparation of financial
statements in conformity with GAAP. Rules and interpretive releases of the Securities and Exchange
Commission (SEC) under authority of federal securities laws are also sources of authoritative GAAP
for SEC registrants. On the effective date of Statement No. 168, the Codification will supersede
all then-existing non-SEC accounting and reporting standards. All other non-grandfathered non-SEC
accounting literature not included in the Codification will become nonauthoritative. Statement
No. 168 is effective for financial statements issued for interim and annual periods ending after
September 15, 2009. The adoption of Statement No. 168 in the third quarter of 2009 is not expected
to materially affect our financial position or results of operations. Commencing with the Form
10-Q for the third quarter of 2009, future filings with the SEC will reference the Codification
rather than prior accounting and reporting standards.
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<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b>3. ACQUISITION</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">In the second quarter of 2009, we acquired seven ethanol plants and a site under development from
VeraSun. Because VeraSun was subject to bankruptcy proceedings and different lenders were involved
with various plants, three separate closings were required to consummate the acquisition of these
ethanol plants. On April 1, 2009, we closed on the acquisition of ethanol plants located in
Charles City, Fort Dodge, and Hartley, Iowa; Aurora, South Dakota; and Welcome, Minnesota, and a
site under development located in Reynolds, Indiana for consideration of $350 million. Through
subsequent closings on April 9, 2009 and May 8, 2009, we acquired VeraSun’s ethanol plant in Albert
City, Iowa, for consideration of $72 million and VeraSun’s ethanol plant in Albion, Nebraska, for
consideration of $55 million, respectively. In conjunction with the acquisition of the seven
ethanol plants, we also paid $79 million primarily for inventory and certain other working capital.
We have elected to use the LIFO method of accounting for the commodity inventories related to the
acquired ethanol business. The acquisition of these ethanol plants is referred to as the VeraSun
Acquisition. We incurred approximately $10 million of acquisition-related costs that were
recognized as expense in “general and administrative expenses” in the consolidated statements of
income for the three and six months ended June 30, 2009.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">The acquired ethanol business involves the production and marketing of ethanol and its co-products,
including distillers grains. The ethanol operations are being reported as a new operating segment
in Note 11, the operations of which will complement our existing clean motor fuels business. The
acquisition cost was funded with part of the proceeds from a $1 billion issuance of notes in March
2009, which is discussed in Note 5.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">An independent appraisal of the assets acquired in the VeraSun Acquisition has been substantially
completed, and the assets acquired and the liabilities assumed have been recognized at their
acquisition-date fair values as determined by the appraisal and other evaluations as follows (in
millions):
</div>
<div align="center">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="90%"> </td>
<td width="6%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current assets, primarily inventory
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">77</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Property, plant and equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">491</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Identifiable intangible assets
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Current liabilities
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(10</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other long-term liabilities
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total consideration
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">556</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">Neither goodwill nor a gain from a bargain purchase was recognized in conjunction with the VeraSun
Acquisition, and no significant contingent assets or liabilities were acquired or assumed in the
acquisition.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">The consolidated statements of income include the results of operations of the various ethanol
plants commencing on their respective closing dates. The operating revenues and net income
associated with the acquired ethanol plants included in our consolidated statements of income for
the three and six months ended June 30, 2009, and the consolidated pro forma operating revenues,
net income (loss), and earnings (loss) per common share – assuming dilution of the combined entity
had the VeraSun Acquisition occurred on January 1, 2009 and 2008, are shown in the table below (in
millions, except per share amounts). The pro forma information assumes that the purchase price was
funded with proceeds from the issuance of $556 million of debt on January 1 of each respective
year. The pro forma amounts for the three months ended June 30, 2009 are the same as actual
consolidated results for that period because the two acquired plants with closing dates subsequent
to April 1, 2009 were not operating during the second quarter prior to our acquisition of those
facilities. The pro forma financial information is not necessarily indicative of the results of
future operations.
</div>
<div align="left"><font size="1"><R></font>
</div>
<div align="center">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="71%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
</tr>
<tr style="font-size: 5.5pt" valign="bottom">
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Actual amounts from acquired business
from<br />April 1 – June 30, 2009:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Operating revenues
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">263</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">N/A</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">263</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">N/A</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td> </td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">N/A</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">N/A</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Consolidated pro forma:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Operating revenues
</div></td>
<td> </td>
<td align="right"></td>
<td align="right">17,925</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">37,059</td>
<td> </td>
<td> </td>
<td align="right"></td>
<td align="right">31,972</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">65,327</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income (loss)
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(254</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">734</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">49</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,004</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Earnings (loss) per common share –<br />
assuming dilution
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"></td>
<td align="right">(0.48</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right"> </td>
<td align="right">1.37</td>
<td> </td>
<td> </td>
<td align="right"> </td>
<td align="right">0.09</td>
<td> </td>
<td> </td>
<td align="right"> </td>
<td align="right">1.87</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left"><font size="1"></R></font>
</div>
<!-- Folio -->
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</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b>4. INVENTORIES</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">Inventories consisted of the following (in millions):
</div>
<div align="center">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%" nowrap="nowrap">    </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">   <b>June 30,</b>   </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
</tr>
<tr style="font-size: 5.5pt" valign="bottom">
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Refinery feedstocks
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">2,065</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">2,140</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Refined products and blendstocks
</div></td>
<td> </td>
<td> </td>
<td align="right">2,105</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,224</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Ethanol feedstocks and products
</div></td>
<td> </td>
<td> </td>
<td align="right">100</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Convenience store merchandise
</div></td>
<td> </td>
<td> </td>
<td align="right">93</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">90</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Materials and supplies
</div></td>
<td> </td>
<td> </td>
<td align="right">198</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">183</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="0" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="0" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Inventories
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">4,561</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">4,637</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="0" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="0" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">As of June 30, 2009 and December 31, 2008, the replacement cost (market value) of LIFO inventories
exceeded their LIFO carrying amounts by approximately $3.0 billion and $686 million, respectively.
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b>5. DEBT</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>Non-Bank Debt</i></b><br />
On April 1, 2009, we made scheduled debt repayments of $200 million related to our 3.5% notes and
$9 million related to our 5.125% Series 1997D industrial revenue bonds.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">In March 2009, we issued $750 million of 9.375% notes due March 15, 2019 and $250 million of 10.5%
notes due March 15, 2039. Proceeds from the issuance of these notes totaled approximately
$998 million, before deducting underwriting discounts and other issuance costs of $8 million.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">On February 1, 2008, we redeemed our 9.50% senior notes for $367 million, or 104.75% of stated
value. These notes had a carrying amount of $381 million on the date of redemption, resulting in a
gain of $14 million that was included in “other income (expense), net” in the consolidated
statement of income. In addition, in March 2008, we made a scheduled debt repayment of $7 million
related to certain of our other debt.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">Under the indenture related to our $100 million of 6.75% senior notes with a maturity date of
October 15, 2037, on July 31, 2009, we notified the holders of such notes of our obligation to
purchase any of those notes for which a written notice of purchase (purchase notice) is received
from the holders prior to September 15, 2009. Any notes for which a purchase notice is received
will be purchased at 100% of their principal amount plus accrued and unpaid interest to October 15,
2009, the date of payment of the purchase price.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>Bank Credit Facilities</i></b><br />
During the six months ended June 30, 2009, we had no borrowings or repayments under our revolving
bank credit facilities. As of June 30, 2009, we had no borrowings outstanding under our revolving
bank credit facilities.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">As of June 30, 2009, we had $247 million of letters of credit outstanding under our uncommitted
short-term bank credit facilities and $249 million of letters of credit outstanding under our U.S.
committed
revolving credit facilities. Under our Canadian committed revolving credit facility, we had
Cdn. $19 million of letters of credit outstanding as of June 30, 2009.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">In June 2008, we entered into a one-year committed revolving letter of credit facility under which
we could obtain letters of credit of up to $300 million to support certain of our crude oil
purchases. In June 2009, we amended this agreement to extend the maturity date to June 2010. We
are being charged letter of credit issuance fees in connection with the letter of credit facility.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">During the six months ended June 30, 2008, we borrowed and repaid $296 million under our revolving
bank credit facility.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">In July 2008, we entered into a one-year committed revolving letter of credit facility under which
we could obtain letters of credit of up to $275 million. This credit facility expired in July
2009.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>Accounts Receivable Sales Facility</i></b><br />
We have an accounts receivable sales facility with a group of third-party entities and financial
institutions to sell on a revolving basis up to $1 billion of eligible trade receivables. We
amended our agreement in June 2009 to extend the maturity date to June 2010.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">As of December 31, 2008, the amount of eligible receivables sold to the third-party entities and
financial institutions was $100 million, which was repaid in February 2009. In March 2009, we sold
$100 million of eligible receivables to the third-party entities and financial institutions. In
April 2009, we sold an additional $400 million of eligible receivables under this program, which we
repaid in June 2009. As of June 30, 2009, the amount of eligible receivables sold to the
third-party entities and financial institutions was $100 million. Proceeds from the sale of
receivables under this facility are reflected as debt in our consolidated balance sheets.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>Other Disclosures</i></b><br />
The estimated fair value of our debt, including current portion, was as follows (in millions):
</div>
<div align="center">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="75%"> </td>
<td width="8%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">   <b>June 30,</b>   </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
</tr>
<tr style="font-size: 5.5pt" valign="bottom">
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Carrying amount
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">7,330</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">6,537</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Fair value
</div></td>
<td> </td>
<td> </td>
<td align="right">7,305</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,462</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b>6. STOCKHOLDERS’ EQUITY</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>Common Stock Offering</i></b><br />
On June 3, 2009, we sold in a public offering 46 million shares of our common stock, which included
6 million shares related to an overallotment option exercised by the underwriters, at a price of
$18.00 per share and received proceeds, net of underwriting discounts and commissions and other
issuance costs, of $799 million.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>Treasury Stock</i></b><br />
No significant purchases of our common stock were made during the six months ended June 30, 2009.
During the six months ended June 30, 2008, we purchased 12.6 million shares of our common stock at
a cost of $700 million in connection with the administration of our employee benefit plans and
common
stock purchase programs authorized by our board of directors. During the six months ended June 30,
2009 and 2008, we issued 0.5 million shares and 0.9 million shares, respectively, from treasury for
our employee benefit plans.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>Common Stock Dividends</i></b><br />
On July 30, 2009, our board of directors declared a regular quarterly cash dividend of $0.15 per
common share payable on September 16, 2009 to holders of record at the close of business on
August 12, 2009.
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b>7. EARNINGS (LOSS) PER COMMON SHARE</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">Earnings (loss) per common share amounts were computed as follows (dollars and shares in millions,
except per share amounts):
</div>
<div align="center">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="15" style="border-bottom: 1px solid #000000"><b>Three Months Ended June 30,</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>2008</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Restricted</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Common</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Restricted</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Common</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Stock</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Stock</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Stock</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Stock</b></td>
</tr>
<tr style="font-size: 5.5pt" valign="bottom">
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Earnings (loss) per common share:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income (loss)
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">(254</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">734</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Less dividends paid:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Common stock
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">77</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">79</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Nonvested restricted stock
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Undistributed earnings (loss)
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">(332</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">655</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted-average common shares outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">525</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">526</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Earnings (loss) per common share:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Distributed earnings
</div></td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">0.15</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">0.15</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">0.15</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">0.15</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Undistributed earnings (loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(0.63</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1.24</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.24</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total earnings (loss) per common share (1)
</div></td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">0.15</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">(0.48</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">1.39</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">1.39</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Earnings (loss) per common share – assuming dilution:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income (loss)
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">(254</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">734</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted-average common shares outstanding
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">525</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">526</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Common equivalent shares (2):
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Stock options
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Performance awards and other benefit plans
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted-average common shares outstanding –
<br />
assuming dilution
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">525</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">534</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Earnings (loss) per common share – assuming dilution
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">(0.48</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">1.37</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<p>
</p>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 11pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>The basic earnings per common share amount originally reported for the three months ended
June 30, 2008 changed from $1.40 as a result of the adoption of FSP No. EITF 03-6-1 effective
January 1, 2009, as discussed in Note 2.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(2)</td>
<td> </td>
<td>Common equivalent shares were excluded from the computation of diluted earnings per share for
the three months ended June 30, 2009 because the effect of including such shares would be
anti-dilutive.</td>
</tr>
</table>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="15" style="border-bottom: 1px solid #000000"><b>Six Months Ended June 30,</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>2008</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Restricted</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Common</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Restricted</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Common</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Stock</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Stock</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Stock</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Stock</b></td>
</tr>
<tr style="font-size: 5.5pt" valign="bottom">
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Earnings per common share:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">55</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">995</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Less dividends paid:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Common stock
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">154</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">143</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Nonvested restricted stock
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Undistributed earnings (loss)
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">(100</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">852</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted-average common shares outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">520</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">529</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Earnings per common share:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Distributed earnings
</div></td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">0.30</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">0.30</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">0.26</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">0.27</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Undistributed earnings (loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(0.19</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1.61</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.61</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total earnings per common share
</div></td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">0.30</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">0.11</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">1.87</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">1.88</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Earnings per common share – assuming dilution:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">55</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">995</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted-average common shares outstanding
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">520</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">529</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Common equivalent shares:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Stock options
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Performance awards and other benefit plans
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted-average common shares outstanding –
<br />
assuming dilution
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">525</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">537</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Earnings per common share – assuming dilution
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">0.11</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">1.85</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">The following table reflects potentially dilutive securities that were excluded from the
calculation of “earnings (loss) per common share – assuming dilution” as the effect of including
such securities would have been anti-dilutive (in millions). As indicated above, for the three
months ended June 30, 2009, common equivalent shares, which represent primarily stock options, were
excluded as a result of the net loss reported for the second quarter of 2009. In addition, for all
periods, certain stock option amounts presented below were excluded, representing outstanding stock
options for which the exercise prices were greater than the average market price of the common
shares during each respective reporting period.
</div>
<div align="center">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%" nowrap="nowrap">     </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Three Months Ended June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Six Months Ended June 30,</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
</tr>
<tr style="font-size: 5.5pt">
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Common equivalent shares
</div></td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Stock options
</div></td>
<td> </td>
<td> </td>
<td align="right">11</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 8 - us-gaap:CashFlowSupplementalDisclosuresTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b>8. STATEMENTS OF CASH FLOWS</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">In order to determine net cash provided by operating activities, net income is adjusted by, among
other things, changes in current assets and current liabilities as follows (in millions):
</div>
<div align="center">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Six Months Ended June 30,</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
</tr>
<tr style="font-size: 5.5pt">
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Decrease (increase) in current assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Restricted cash
</div></td>
<td> </td>
<td nowrap="nowrap" align="center">$</td>
<td align="right">(10</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="center">$</td>
<td align="right">(69</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Receivables, net
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,286</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(54</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Inventories
</div></td>
<td> </td>
<td> </td>
<td align="right">172</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(865</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Income taxes receivable
</div></td>
<td> </td>
<td> </td>
<td align="right">181</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Prepaid expenses and other
</div></td>
<td> </td>
<td> </td>
<td align="right">11</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Increase (decrease) in current liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Accounts payable
</div></td>
<td> </td>
<td> </td>
<td align="right">1,592</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,466</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Accrued expenses
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(97</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(144</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Taxes other than income taxes
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(41</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(61</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Income taxes payable
</div></td>
<td> </td>
<td> </td>
<td align="right">35</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(88</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Changes in current assets and current liabilities
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">557</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">189</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- /xbrl,cf -->
<div align="justify" style="font-size: 11pt; margin-top: 11pt">The above changes in current assets and current liabilities differ from changes between amounts
reflected in the applicable consolidated balance sheets for the respective periods for the
following reasons:
</div>
<div style="margin-top: 0pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 11pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>
<div align="justify">the amounts shown above exclude changes in cash and temporary cash investments, deferred
income taxes, and current portion of debt and capital lease obligations;
</div></td>
</tr>
<tr valign="top" style="font-size: 11pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>
<div align="justify">the amounts shown above exclude the current assets and current liabilities acquired in
connection with the VeraSun Acquisition;
</div></td>
</tr>
<tr valign="top" style="font-size: 11pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>
<div align="justify">previously accrued capital expenditures, deferred turnaround and catalyst costs, and
contingent earn-out payments, as well as advance proceeds related to the sale of assets,
are reflected in investing activities in the consolidated statements of cash flows;
</div></td>
</tr>
<tr valign="top" style="font-size: 11pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>
<div align="justify">amounts accrued for common stock purchases in the open market that are not settled as of
the balance sheet date are reflected in financing activities in the consolidated statements
of cash flows when the purchases are settled and paid;
</div></td>
</tr>
<tr valign="top" style="font-size: 11pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>changes in assets held for sale and liabilities related to assets held for sale
pertaining to the operations of the Krotz Springs Refinery prior to its sale to Alon
Refining Krotz Springs, Inc. (Alon), a subsidiary of Alon USA Energy, Inc., in July 2008
are reflected in the line items to which the changes relate in the table above; and</td>
</tr>
<tr valign="top" style="font-size: 11pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>certain differences between consolidated balance sheet changes and consolidated
statement of cash flow changes reflected above result from translating foreign currency
denominated amounts at different exchange rates.</td>
</tr>
</table>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">There were no significant noncash investing or financing activities for the six months ended
June 30, 2009 and 2008.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">Cash flows related to interest and income taxes were as follows (in millions):
</div>
<div align="center">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Six Months Ended June 30,</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
</tr>
<tr style="font-size: 5.5pt">
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest paid in excess of amount capitalized
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">152</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">199</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income taxes paid (net of tax refunds received)
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(144</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">659</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 9 - us-gaap:FairValueDisclosuresTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b>9. FAIR VALUE MEASUREMENTS</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">Statement No. 157 establishes a fair value hierarchy (Level 1, Level 2, or Level 3) based on the
quality of inputs used to measure fair value. Pursuant to the provisions of Statement No. 157,
fair values determined by Level 1 inputs utilize quoted prices in active markets for identical
assets or liabilities. Fair values determined by Level 2 inputs are based on quoted prices for
similar assets and liabilities in active markets, and inputs other than quoted prices that are
observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or
liability, and include situations where there is little, if any, market activity for the asset or
liability. We use appropriate valuation techniques based on the available inputs to measure the
fair values of our applicable assets and liabilities. When available, we measure fair value using
Level 1 inputs because they generally provide the most reliable evidence of fair value.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">The table below presents information (dollars in millions) about our financial assets and
liabilities measured and recorded at fair value on a recurring basis and indicates the fair value
hierarchy of the inputs utilized by us to determine the fair values as of June 30, 2009 and
December 31, 2008.
</div>
<div align="center">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%" nowrap="nowrap">        </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000"><b>Fair Value Measurements Using</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Quoted</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Significant</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Prices</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Other</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Significant</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>in Active</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Observable</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Unobservable</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Markets</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Inputs</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Inputs</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Total as of</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Level 1)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Level 2)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Level 3)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td>
</tr>
<tr style="font-size: 5.5pt">
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Assets:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity derivative contracts
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">12</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">537</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">549</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Nonqualified benefit plans
</div></td>
<td> </td>
<td> </td>
<td align="right">99</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">99</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Alon earn-out agreement
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">38</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">38</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liabilities:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity derivative contracts
</div></td>
<td> </td>
<td> </td>
<td align="right">19</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Certain nonqualified benefit plans
</div></td>
<td> </td>
<td> </td>
<td align="right">29</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%" nowrap="nowrap">        </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000"><b>Fair Value Measurements Using</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Quoted</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Significant</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Prices</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Other</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Significant</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>in Active</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Observable</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Unobservable</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Total as of</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Markets</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Inputs</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Inputs</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Level 1)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Level 2)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Level 3)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
</tr>
<tr style="font-size: 5.5pt">
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Assets:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity derivative contracts
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">40</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">610</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">650</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Nonqualified benefit plans
</div></td>
<td> </td>
<td> </td>
<td align="right">98</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">98</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Alon earn-out agreement
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liabilities:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity derivative contracts
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Certain nonqualified benefit plans
</div></td>
<td> </td>
<td> </td>
<td align="right">26</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">The valuation methods used to measure our financial instruments at fair value are as follows:
</div>
<div style="margin-top: 0pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 11pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>
<div align="justify">Commodity derivative contracts, consisting primarily of exchange-traded futures and
swaps, are measured at fair value using the market approach pursuant to the provisions of
Statement No. 157. Exchange-traded futures are valued based on quoted prices from the
exchange and are categorized in Level 1 of the fair value hierarchy. Swaps are priced
using third-party broker quotes, industry pricing services, and exchange-traded curves,
with appropriate consideration of counterparty credit risk, but since they have contractual
terms that are not identical to exchange-traded futures instruments with a comparable
market price, these financial instruments are categorized in Level 2 of the fair value
hierarchy.
</div></td>
</tr>
<tr valign="top" style="font-size: 11pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>
<div align="justify">Nonqualified benefit plan assets and certain nonqualified benefit plan liabilities are
measured at fair value using a market approach based on quotations from national securities
exchanges and are categorized in Level 1 of the fair value hierarchy.
</div></td>
</tr>
<tr valign="top" style="font-size: 11pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>
<div align="justify">The Alon earn-out agreement, which we received as partial consideration for the sale of
our Krotz Springs Refinery in July 2008, is measured at fair value using a discounted cash
flow model and is categorized in Level 3 of the fair value hierarchy. Significant inputs
to the model include expected payments and discount rates that consider the effects of both
credit risk and the time value of money.
</div></td>
</tr>
</table>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">Deposits of $104 million in broker accounts covered by master netting arrangements are included in
the fair value of the commodity derivatives reflected in Level 1. Certain of our commodity
derivative contracts under master netting arrangements include both asset and liability positions.
Under the guidance of FASB Staff Position No. FIN 39-1, “Amendment of FASB Interpretation No. 39,”
we have elected to offset the fair value amounts recognized for multiple similar derivative
instruments executed with the same counterparty, including any related cash collateral asset or
obligation.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">The following is a reconciliation of the beginning and ending balances (in millions) for fair value
measurements developed using significant unobservable inputs for the three and six months ended
June 30, 2009. We did not have any fair value measurements using significant unobservable inputs
for the six months ended June 30, 2008.
</div>
<div align="center">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="88%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="73%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="8%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Three Months</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Six Months</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Ended June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Ended June 30,</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
</tr>
<tr style="font-size: 5.5pt">
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at beginning of period
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">24</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">13</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net unrealized gains included in earnings
</div></td>
<td> </td>
<td> </td>
<td align="right">14</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Transfers in and/or out of Level 3
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance as of June 30, 2009
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">38</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">38</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">Unrealized gains for the three and six months ended June 30, 2009, which are reported in “other
income (expense), net” in the consolidated statements of income, relate to the Alon earn-out
agreement that was still held at the reporting date. These unrealized gains were offset by the
recognition in “other income (expense), net” of losses on derivative instruments entered into to
hedge the risk of changes in the fair value of the Alon earn-out agreement. The derivative
instruments used to hedge the Alon earn-out agreement are included in the “commodity derivative
contracts” amounts reflected in the fair value table above.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">The table below presents information (dollars in millions) about our nonfinancial liabilities
measured and recorded at fair value on a nonrecurring basis that arose on or after January 1, 2009
(the date of adoption of FSP No. FAS 157-2), and indicates the fair value hierarchy of the inputs
utilized by us to determine the fair values as of June 30, 2009.
</div>
<div align="center">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="58%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="0%" style="border-right: 15pt solid #FFFFFF"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000"><b>Fair Value Measurements Using</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Quoted</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Significant</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Prices</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Other</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Significant</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>in Active</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Observable</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Unobservable</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Markets</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Inputs</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Inputs</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Total as of</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Level 1)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Level 2)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Level 3)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td>
</tr>
<tr style="font-size: 5.5pt">
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liabilities:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Asset retirement obligations
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right"></td>
<td align="right">$ 9</td>
<td> </td>
<td> </td>
<td align="right"></td>
<td align="right">$ 9</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">Asset retirement obligations in the table above are calculated based on the present value of
estimated removal and other closure costs using our internal risk-free rate of return or
appropriate equivalent.
</div>
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 10 - us-gaap:DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="justify" style="font-size: 10pt; margin-top: 12pt"><b>10. PRICE RISK MANAGEMENT ACTIVITIES</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">We enter into derivative instruments to manage our exposure to commodity price risk, interest rate
risk, and foreign currency risk, and to hedge price risk on other contractual derivatives that we
have entered into. In addition, we use derivative instruments for trading purposes based on our
fundamental and technical analysis of market conditions. All derivative instruments are recorded
on our balance sheet as either assets or liabilities measured at their fair values. When we enter
into a derivative instrument, it is designated as a fair value hedge, a cash flow hedge, an
economic hedge, or a trading activity. The gain or loss on a derivative instrument designated and
qualifying as a fair value hedge, as well as the offsetting loss or gain on the hedged item
attributable to the hedged risk, are recognized currently in income in the
same period. The effective portion of the gain or loss on a derivative instrument designated
and qualifying as a cash flow hedge is initially reported as a component of “other comprehensive
income” and is then recorded in income in the period or periods during which the hedged forecasted
transaction affects income. The ineffective portion of the gain or loss on the cash flow
derivative instrument, if any, is recognized in income as incurred. For our economic hedging
relationships (hedges not designated as fair value or cash flow hedges) and for derivative
instruments entered into by us for trading purposes, the derivative instrument is recorded at fair
value and changes in the fair value of the derivative instrument are recognized currently in
income.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>Commodity Price Risk</i></b><br />
We are exposed to market risks related to the volatility of crude oil and refined product prices,
as well as volatility in the price of natural gas used in our refining operations. To reduce the
impact of this price volatility on our results of operations and cash flows, we use derivative
commodity instruments, including swaps, futures, and options, to manage our exposure to commodity
price risks. For such risk management purposes, we use fair value hedges, cash flow hedges, and
economic hedges.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">In addition to the use of derivative instruments to manage commodity price risk, we also enter into
certain derivative commodity instruments for trading purposes. Our objectives for entering into
each of these types of derivative instruments and the level of activity of each as of June 30, 2009
are described below.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><u><b>Fair Value Hedges</b></u><br />
Fair value hedges are used to hedge certain refining inventories and firm commitments to purchase
inventories. The level of activity for our fair value hedges is based on the level of our
operating inventories, and normally represents the amount by which our inventories differ from our
previous year-end LIFO inventory levels.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">As of June 30, 2009, we had the following outstanding derivative commodity instruments that were
entered into to hedge crude oil and refined product inventories. The information presents the
volume of outstanding contracts by type of instrument and year of maturity (volumes in thousands of
barrels).
</div>
<div align="left" style="margin-left:7%">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="80%"> </td>
<td width="10%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td nowrap="nowrap" align="left">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Derivative Instrument / Maturity</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Contract Volumes</b>
</div></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 5.5pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Futures – short (2009)
</div></td>
<td> </td>
<td> </td>
<td align="right">5,178</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><u><b>Cash Flow Hedges</b></u><br />
Cash flow hedges are used to hedge certain forecasted feedstock and product purchases, refined
product sales, and natural gas purchases. The purpose of our cash flow hedges is to lock in the
price of forecasted feedstock or natural gas purchases or refined product sales at existing market
prices that are deemed favorable by management.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">As of June 30, 2009, we had the following outstanding derivative commodity instruments that were
entered into to hedge forecasted purchases or sales of crude oil and refined products. The
information presents the volume of outstanding contracts by type of instrument and year of maturity
(volumes in thousands of barrels).
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="margin-left:7%">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="80%"> </td>
<td width="10%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td nowrap="nowrap" align="left">
<div style="margin-top: 12pt; border-bottom: 1px solid #000000; width: 8%"><b>Derivative Instrument / Maturity</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Contract Volumes</b>
</div></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 5.5pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Swaps – long:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2009
</div></td>
<td> </td>
<td> </td>
<td align="right">14,157</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2010
</div></td>
<td> </td>
<td> </td>
<td align="right">15,900</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Swaps – short:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2009
</div></td>
<td> </td>
<td> </td>
<td align="right">14,157</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2010
</div></td>
<td> </td>
<td> </td>
<td align="right">15,900</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Futures – long (2009)
</div></td>
<td> </td>
<td> </td>
<td align="right">1,211</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><u><b>Economic Hedges</b></u><br />
Economic hedges are hedges not designated as fair value or cash flow hedges that are used to (i)
manage price volatility in certain refinery feedstock, refined product, and grain inventories, (ii)
manage price volatility in certain forecasted refinery feedstock, product, and grain purchases,
refined product sales, and natural gas purchases; and (iii) manage price volatility in the
referenced product margins associated with the Alon earn-out agreement, which is a separate
contractual derivative that we entered into with the sale of our Krotz Springs Refinery, as further
discussed in Note 9. Our objective in entering into economic hedges is consistent with the
objectives discussed above for fair value hedges and cash flow hedges. However, the economic
hedges are not designated as a fair value hedge or a cash flow hedge for accounting purposes,
usually due to the difficulty of establishing the required documentation at the date that the
derivative instrument is entered into that would allow us to achieve “hedge deferral accounting.”
As of June 30, 2009, we had the following outstanding derivative commodity instruments that were
entered into as economic hedges. The information presents the volume of outstanding contracts by
type of instrument and year of maturity (volumes in thousands of barrels, except those identified
as grain contracts that are presented in thousands of bushels).
</div>
<div align="left" style="margin-left:7%">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="80%"> </td>
<td width="10%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td nowrap="nowrap" align="left">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Derivative Instrument / Maturity</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Contract Volumes</b>
</div></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 5.5pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Swaps – long:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2009
</div></td>
<td> </td>
<td> </td>
<td align="right">52,625</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2010
</div></td>
<td> </td>
<td> </td>
<td align="right">51,514</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2011
</div></td>
<td> </td>
<td> </td>
<td align="right">11,750</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Swaps – short:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2009
</div></td>
<td> </td>
<td> </td>
<td align="right">36,233</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2010
</div></td>
<td> </td>
<td> </td>
<td align="right">47,878</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2011
</div></td>
<td> </td>
<td> </td>
<td align="right">8,850</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Futures – long:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2009
</div></td>
<td> </td>
<td> </td>
<td align="right">238,825</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2010
</div></td>
<td> </td>
<td> </td>
<td align="right">39,618</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2009 (grain)
</div></td>
<td> </td>
<td> </td>
<td align="right">7,605</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2010 (grain)
</div></td>
<td> </td>
<td> </td>
<td align="right">50</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Futures – short:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2009
</div></td>
<td> </td>
<td> </td>
<td align="right">231,332</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2010
</div></td>
<td> </td>
<td> </td>
<td align="right">39,174</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2009 (grain)
</div></td>
<td> </td>
<td> </td>
<td align="right">20,355</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2010 (grain)
</div></td>
<td> </td>
<td> </td>
<td align="right">3,405</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><u><b>Trading Activities</b></u><br />
These represent derivative commodity instruments held or issued for trading purposes. Our
objective in entering into derivative commodity instruments for trading purposes is to take
advantage of existing market conditions related to crude oil and refined products that management
perceives as opportunities to benefit our results of operations and cash flows, but for which there
are no related physical transactions. As of June 30, 2009, we had the following outstanding
derivative commodity instruments that were entered into for trading purposes. The information
presents the volume of outstanding contracts by type of instrument and year of maturity (volumes
represent thousands of barrels, except those identified as natural gas contracts that are presented
in billions of British thermal units).
</div>
<div align="left" style="margin-left:7%">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="80%"> </td>
<td width="10%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td nowrap="nowrap" align="left">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Derivative Instrument / Maturity</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Contract Volumes</b>
</div></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 5.5pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Swaps – long:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2009
</div></td>
<td> </td>
<td> </td>
<td align="right">10,413</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2010
</div></td>
<td> </td>
<td> </td>
<td align="right">18,780</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2011
</div></td>
<td> </td>
<td> </td>
<td align="right">3,000</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Swaps – short:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2009
</div></td>
<td> </td>
<td> </td>
<td align="right">12,455</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2010
</div></td>
<td> </td>
<td> </td>
<td align="right">22,008</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2011
</div></td>
<td> </td>
<td> </td>
<td align="right">3,900</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Futures – long:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2009
</div></td>
<td> </td>
<td> </td>
<td align="right">30,122</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2010
</div></td>
<td> </td>
<td> </td>
<td align="right">2,321</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2009 (natural gas)
</div></td>
<td> </td>
<td> </td>
<td align="right">5,350</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2010 (natural gas)
</div></td>
<td> </td>
<td> </td>
<td align="right">100</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Futures – short:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2009
</div></td>
<td> </td>
<td> </td>
<td align="right">30,214</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2010
</div></td>
<td> </td>
<td> </td>
<td align="right">2,346</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">2009 (natural gas)
</div></td>
<td> </td>
<td> </td>
<td align="right">5,100</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">2010 (natural gas)
</div></td>
<td> </td>
<td> </td>
<td align="right">100</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>Interest Rate Risk</i></b><br />
Our primary market risk exposure for changes in interest rates relates to our debt obligations. We
manage our exposure to changing interest rates through the use of a combination of fixed-rate and
floating-rate debt. In addition, we have at times used interest rate swap agreements to manage our
fixed to floating interest rate position by converting certain fixed-rate debt to floating-rate
debt. These interest rate swap agreements are generally accounted for as fair value hedges.
However, we have not had any outstanding interest rate swap agreements since 2006.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>Foreign Currency Risk</i></b><br />
We are exposed to exchange rate fluctuations on transactions related to our Canadian operations.
To manage our exposure to these exchange rate fluctuations, we use foreign currency exchange and
purchase contracts. These contracts are not designated as hedging instruments for accounting
purposes, and therefore they are classified as economic hedges. As of June 30, 2009, we had
commitments to purchase $301 million of U.S. dollars. These commitments matured on or before July
20, 2009, resulting in a $7 million loss in the third quarter of 2009.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>Fair Values of Derivative Instruments</i></b><br />
The following tables provide information about the fair values of our derivative instruments as of
June 30, 2009 (in millions) and the line items in the balance sheet in which the fair values are
reflected. See Note 9 for additional information related to the fair values of our derivative
instruments. As indicated in Note 9, we net fair value amounts recognized for multiple similar
derivative instruments executed with the same counterparty under master netting arrangements. The
table below, however, is presented on a gross asset and gross liability basis as required by
Statement No. 161, which results in the reflection of certain assets in liability accounts and
certain liabilities in asset accounts. In addition, in Note 9 we included cash collateral of $104
million in the fair value of the commodity derivatives; the cash collateral is not reflected in the
table below.
</div>
<div align="center">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="27%"> </td>
<td width="3%"> </td>
<td width="25%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="25%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="5">
<div style="border-bottom: 1px solid #000000; width: 100%"><b>Asset Derivatives</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="5">
<div style="border-bottom: 1px solid #000000; width: 100%"><b>Liability Derivatives</b>
</div></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Balance Sheet</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Balance Sheet</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Location</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Fair Value</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Location</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Fair Value</b>
</div></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 5.5pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:0px; text-indent:0px"><b>Derivatives designated as<br />
<u>hedging instruments</u></b>
</div></td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Commodity contracts:
</div></td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Futures
</div></td>
<td> </td>
<td nowrap="nowrap">
<div style="text-align: justify">Receivables, net
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td nowrap="nowrap">
<div style="text-align: justify">Receivables, net
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">1</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Futures
</div></td>
<td> </td>
<td nowrap="nowrap">
<div style="text-align: justify">Accrued expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">31</td>
<td> </td>
<td> </td>
<td nowrap="nowrap">
<div style="text-align: justify">Accrued expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">49</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:30px; text-indent:-15px">Swaps
</div></td>
<td> </td>
<td>
<div style="text-align: justify">Receivables, net
</div></td>
<td> </td>
<td> </td>
<td align="right">425</td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify">Receivables, net
</div></td>
<td> </td>
<td> </td>
<td align="right">385</td>
<td> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:30px; text-indent:-15px">Swaps
</div></td>
<td> </td>
<td>
<div style="text-align: left">Prepaid expenses and other current assets
</div></td>
<td> </td>
<td> </td>
<td align="right">1,409</td>
<td> </td>
<td> </td>
<td>
<div style="text-align: left">Prepaid expenses and other current assets
</div></td>
<td> </td>
<td> </td>
<td align="right">1,235</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:30px; text-indent:-15px">Swaps
</div></td>
<td> </td>
<td>
<div style="text-align: justify">Accrued expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">293</td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify">Accrued expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">293</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:0px; text-indent:0px">Total derivatives
designated as <br />
hedging
instruments
</div></td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">2,161</td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">1,963</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:0px; text-indent:-0px"><b>Derivatives not
designated as<br />
<u>hedging instruments</u></b>
</div></td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Commodity contracts:
</div></td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Futures
</div></td>
<td> </td>
<td>
<div style="text-align: justify">Receivables, net
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">28</td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify">Receivables, net
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">15</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Futures
</div></td>
<td> </td>
<td>
<div style="text-align: justify">Accrued expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">3,560</td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify">Accrued expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">3,668</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:30px; text-indent:-15px">Swaps
</div></td>
<td> </td>
<td>
<div style="text-align: justify">Receivables, net
</div></td>
<td> </td>
<td> </td>
<td align="right">671</td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify">Receivables, net
</div></td>
<td> </td>
<td> </td>
<td align="right">550</td>
<td> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:30px; text-indent:-15px">Swaps
</div></td>
<td> </td>
<td>
<div style="text-align: left">Prepaid expenses and other current assets
</div></td>
<td> </td>
<td> </td>
<td align="right">1,458</td>
<td> </td>
<td> </td>
<td>
<div style="text-align: left">Prepaid expenses and other current assets
</div></td>
<td> </td>
<td> </td>
<td align="right">1,256</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Swaps
</div></td>
<td> </td>
<td>
<div style="text-align: justify">Accrued expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">93</td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify">Accrued expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">100</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Alon earn-out agreement
</div></td>
<td> </td>
<td>
<div style="text-align: justify">Receivables, net
</div></td>
<td> </td>
<td> </td>
<td align="right">38</td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify">Accrued expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td>
<div style="text-align: justify">Receivables, net
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify">Accounts payable
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total derivatives not
designated
as hedging instruments
</div></td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">5,848</td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">5,589</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total derivatives
</div></td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">8,009</td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">7,552</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td>
<div style="text-align: justify"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>Market and Counterparty Risk</i></b><br />
Our price risk management activities involve the receipt or payment of fixed price commitments into
the future. These transactions give rise to market risk, the risk that future changes in market
conditions may make an instrument less valuable. We closely monitor and manage our exposure to
market risk on a daily basis in accordance with policies approved by our board of directors.
Market risks are monitored by a risk control group to ensure compliance with our stated risk
management policy. Concentrations of customers in the refining industry may impact our overall
exposure to counterparty risk, in that these customers may be similarly affected by changes in
economic or other conditions. In addition, financial services companies are the counterparties in
certain of our price risk management activities, and such financial services companies may be
adversely affected by periods of uncertainty and illiquidity in the credit and capital markets.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">As of June 30, 2009, we had net receivables related to derivative instruments of $32 million from
counterparties in the refining industry and $343 million from counterparties in the financial
services industry. These amounts represent the aggregate receivables from companies in those
industries, reduced by payables from us to those companies under master netting arrangements that
allow for the setoff of amounts receivable from and payable to the same party. We do not require
any collateral or other security to support derivative instruments that we enter into. We also do
not have any derivative instruments that require us to maintain a minimum investment-grade credit
rating.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 12pt"><b><i>Effect of Derivative Instruments on Statements of Income and Other Comprehensive Income</i></b><br />
The following tables provide information about the gain or loss recognized in income and other
comprehensive income on our derivative instruments for the three and six months ended June 30, 2009
(in millions), and the line items in the financial statements in which such gains and losses are
reflected.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="20%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Location</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Location</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Amount</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>of Gain or</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>of Gain or</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Amount</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>of Gain or</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>(Loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Amount of</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>(Loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>of Gain or</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>(Loss)</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Derivatives in</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Recognized</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Gain or (Loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Recognized</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>(Loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Recognized</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Fair Value</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>in Income</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Recognized in</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>in Income</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Recognized</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>in Income for</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Hedging</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>on</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Income</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>on</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>in Income</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Ineffective Portion</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td nowrap="nowrap" align="left">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Relationships</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Derivatives</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>on Derivatives</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Hedged Item</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>on Hedged Item</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>of Derivative (1)</b>
</div></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Three</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Six</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Three</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Six</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Three</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Six</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Months</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Months</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Months</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Months</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Months</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Months</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Ended</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Ended</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>2009</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>2009</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>2009</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>2009</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>2009</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>2009</b>
</div></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 5.5pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Commodity contracts
</div></td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="left">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">(74</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">(89</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td colspan="3" align="left" nowrap="nowrap">Cost of sales</td>
<td> </td>
<td align="right">$ </td>
<td align="right">75</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">90</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">1</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">(74</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">(89</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">75</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">90</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">1</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; text-align: left">
<tr valign="top" style="font-size: 9pt; color: #000000; background: transparent">
<td width="1%" nowrap="nowrap" align="left">(1)</td>
<td width="1%"> </td>
<td>
<div align="justify">For fair value hedges, no component of the derivative instruments’ gains or losses was
excluded from the assessment of hedge effectiveness. No amounts were recognized in income for
hedged firm commitments that no longer qualify as fair value hedges.
</div></td>
</tr>
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="20%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Amount of</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Location of</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Amount of</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Location of</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Amount of</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Gain or (Loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Gain or (Loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Gain or (Loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Gain or (Loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Gain or (Loss)</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Derivatives in</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Recognized in</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Reclassified from</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Reclassified from</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Recognized in</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Recognized in</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Cash Flow</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>OCI on</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Accumulated OCI</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Accumulated OCI</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Income on</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Income on</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Hedging</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Derivatives</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>into Income</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>into Income</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Derivatives</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Derivatives</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td nowrap="nowrap" align="left">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Relationships</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>(Effective Portion)</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>(Effective Portion)</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>(Effective Portion)</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>(Ineffective Portion)</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>(Ineffective Portion) (1)</b>
</div></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Three</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Six</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Three</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Six</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Three</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Six</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Months</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Months</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Months</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Months</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Months</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Months</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Ended</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Ended</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Ended</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>2009</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>2009</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>2009</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>2009</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>2009</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>2009</b>
</div></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 5.5pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Commodity contracts
(2)
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">97</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">Cost of sales</td>
<td> </td>
<td align="right">$ </td>
<td align="right">111</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">172</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">97</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">111</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">172</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 3pt; width: 18%; border-top: 0px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>
<div align="justify">No component of the derivative instruments’ gains or losses was excluded from the assessment
of hedge effectiveness.
</div></td>
</tr>
<tr style="font-size:1pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(2)</td>
<td> </td>
<td>
<div align="justify">For the three and six months ended June 30, 2009, cash flow hedges primarily related to
forward sales of distillates and associated forward purchases of crude oil, with $120 million
of cumulative after-tax gains on cash flow hedges remaining in “accumulated other
comprehensive loss” as of June 30, 2009. We expect that a significant amount of the deferred
gains at June 30, 2009 will be reclassified into “cost of sales” over the next 12 months as a
result of hedged transactions that are forecasted to occur. The amount ultimately realized in
income, however, will differ as commodity prices change. For the three and six months ended
June 30, 2009, there were no amounts reclassified from “accumulated other comprehensive loss”
into income as a result of the discontinuance of cash flow hedge accounting.
</div></td>
</tr>
</table>
<div align="center">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="44%"> </td>
<td width="5%"> </td>
<td width="22%"> </td>
<td width="10%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Location of</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Amount of</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Derivatives Designated as</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Gain or (Loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Gain or (Loss)</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Economic Hedges</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Recognized in</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Recognized in</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>and Other</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Income on</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Income on</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td nowrap="nowrap" align="left">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Derivative Instruments</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Derivatives</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Derivatives</b>
</div></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Three Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>June 30, 2009</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>June 30, 2009</b>
</div></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 5.5pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Commodity contracts
</div></td>
<td> </td>
<td align="left" valign="bottom">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">(58</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$ </td>
<td align="right">38</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency contracts
</div></td>
<td> </td>
<td align="left" valign="bottom">Cost of sales</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(22</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(16</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="bottom"> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="bottom"> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(80</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">22</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="bottom"> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Alon earn-out agreement
</div></td>
<td> </td>
<td align="left" valign="bottom">Other income (expense)</td>
<td> </td>
<td> </td>
<td align="right">14</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Alon earn-out hedge
(commodity contracts)
</div></td>
<td> </td>
<td align="left" valign="bottom">Other income (expense)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(48</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(63</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="bottom"> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="bottom"> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(34</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(38</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="bottom"> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left" valign="bottom"> </td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">(114</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right">$ </td>
<td align="right">(16</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="bottom"> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="44%"> </td>
<td width="5%"> </td>
<td width="17%"> </td>
<td width="15%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Location of</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Amount of</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Gain or (Loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Gain or (Loss)</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Recognized in</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Recognized in</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Derivatives Designated as</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Income on</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Income on</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td nowrap="nowrap" align="left">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Trading Activities</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Derivatives</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>Derivatives</b>
</div></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Three Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>June 30, 2009</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3">
<div style="border-bottom: 1px solid #000000; width: 8%"><b>June 30, 2009</b>
</div></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 5.5pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Commodity contracts
</div></td>
<td> </td>
<td align="left" valign="bottom">Cost of sales</td>
<td> </td>
<td align="right">$ </td>
<td align="right">25</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">116</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="bottom"> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left" valign="bottom"> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">25</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">116</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="bottom"> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 11 - us-gaap:SegmentReportingDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 11pt; margin-top: 6pt"><b>11. SEGMENT INFORMATION</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">Prior to the second quarter of 2009, we had two reportable segments, which were refining and
retail. As a result of our acquisition of seven ethanol plants from VeraSun during the second
quarter of 2009 (as discussed in Note 3), ethanol is now being presented as a third reportable
segment. Segment information for our three reportable segments was as follows (in millions):
</div>
<div align="center">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Refining</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Retail</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Ethanol</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Corporate</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Total</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 5.5pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Three months ended June 30, 2009:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating revenues from external
customers
</div></td>
<td> </td>
<td align="center">$ </td>
<td align="right">15,693</td>
<td> </td>
<td> </td>
<td align="center">$ </td>
<td align="right">1,969</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">263</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">17,925</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Intersegment revenues
</div></td>
<td> </td>
<td> </td>
<td align="right">1,281</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,310</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating income (loss)
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(268</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">65</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(136</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(317</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Three months ended June 30, 2008:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating revenues from external
customers
</div></td>
<td> </td>
<td> </td>
<td align="right">33,625</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,015</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36,640</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Intersegment revenues
</div></td>
<td> </td>
<td> </td>
<td align="right">2,367</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,367</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating income (loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">1,235</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">49</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(126</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,158</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Six months ended June 30, 2009:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating revenues from
external customers
</div></td>
<td> </td>
<td> </td>
<td align="right">27,885</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,601</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">263</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">31,749</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Intersegment revenues
</div></td>
<td> </td>
<td> </td>
<td align="right">2,288</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,317</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating income (loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">339</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">121</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(292</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">190</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Six months ended June 30, 2008:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating revenues from
external customers
</div></td>
<td> </td>
<td> </td>
<td align="right">59,055</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,530</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">64,585</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Intersegment revenues
</div></td>
<td> </td>
<td> </td>
<td align="right">4,267</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,267</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating income (loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">1,803</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">99</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(272</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,630</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">Total assets by reportable segment were as follows (in millions):
</div>
<div align="center">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="62%"> </td>
<td width="5%"> </td>
<td width="6%"> </td>
<td width="1%"> </td>
<td width="6%"> </td>
<td width="5%">     </td>
<td width="6%"> </td>
<td width="1%"> </td>
<td width="6%"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 5.5pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Refining
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">32,464</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">30,801</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Retail
</div></td>
<td> </td>
<td> </td>
<td align="right">1,843</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,818</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Ethanol
</div></td>
<td> </td>
<td> </td>
<td align="right">597</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Corporate
</div></td>
<td> </td>
<td> </td>
<td align="right">2,317</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,798</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total consolidated assets
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">37,221</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">34,417</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 12 - us-gaap:PensionAndOtherPostretirementBenefitsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="justify" style="font-size: 11pt; margin-top: 12pt"><b>12. EMPLOYEE BENEFIT PLANS</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">The components of net periodic benefit cost related to our defined benefit plans were as follows
for the three and six months ended June 30, 2009 and 2008 (in millions):
</div>
<div align="center">
<table style="font-size: 11pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Other Postretirement</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Pension Plans</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Benefit Plans</b></td>
</tr>
<tr style="font-size: 11pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
</tr>
<tr style="font-size: 5.5pt">
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Three months ended June 30:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Components of net periodic benefit cost:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Service cost
</div></td>
<td> </td>
<td align="center">$</td>
<td align="right">26</td>
<td> </td>
<td> </td>
<td align="center">$</td>
<td align="right">24</td>
<td> </td>
<td> </td>
<td align="center">$</td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td align="center">$</td>
<td align="right">4</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest cost
</div></td>
<td> </td>
<td> </td>
<td align="right">20</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">19</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Expected return on plan assets
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(27</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(26</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Amortization of:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Prior service cost (credit)
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Net loss
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Net periodic benefit cost
</div></td>
<td> </td>
<td align="center">$</td>
<td align="right">22</td>
<td> </td>
<td> </td>
<td align="center">$</td>
<td align="right">18</td>
<td> </td>
<td> </td>
<td align="center">$</td>
<td align="right">6</td>
<td> </td>
<td> </td>
<td align="center">$</td>
<td align="right">9</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Six months ended June 30:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Components of net periodic benefit cost:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Service cost
</div></td>
<td> </td>
<td align="center">$</td>
<td align="right">52</td>
<td> </td>
<td> </td>
<td align="center">$</td>
<td align="right">47</td>
<td> </td>
<td> </td>
<td align="center">$</td>
<td align="right">6</td>
<td> </td>
<td> </td>
<td align="center">$</td>
<td align="right">7</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest cost
</div></td>
<td> </td>
<td> </td>
<td align="right">40</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">38</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Expected return on plan assets
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(54</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(52</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Amortization of:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Prior service cost (credit)
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(9</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Net loss
</div></td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Net periodic benefit cost
</div></td>
<td> </td>
<td align="center">$</td>
<td align="right">44</td>
<td> </td>
<td> </td>
<td align="center">$</td>
<td align="right">35</td>
<td> </td>
<td> </td>
<td align="center">$</td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td align="center">$</td>
<td align="right">18</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">We expect to contribute a total of approximately $70 million to our qualified pension plans during
2009. In January 2009, we contributed $50 million of this amount to our main qualified pension
plan. There were no significant additional contributions made during the six months ended June 30,
2009.
</div>
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<head></head>
<body>
<!-- Begin Block Tagged Note 13 - us-gaap:CommitmentsAndContingenciesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="justify" style="font-size: 11pt; margin-top: 12pt"><b>13. COMMITMENTS AND CONTINGENCIES</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>Contingent Earn-Out Agreements</i></b><br />
In January 2008, we made a previously accrued earn-out payment of $25 million related to the
acquisition of the St. Charles Refinery, which was the final payment under that agreement. As of
June 30, 2009, we have no further commitments with respect to contingent earn-out agreements.
However, see Note 9 for a discussion of a contingent receivable from Alon related to a three-year
earn-out agreement received in July 2008 as partial consideration for the sale of our Krotz Springs
Refinery. Based on our calculations under the provisions of the agreement, we determined that $28
million was earned for the first year of this three-year agreement. Alon has calculated a
different amount, and we are in the process of reconciling the
different amounts. The resolution of this matter is not expected to
result in a material difference.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>Insurance Recoveries</i></b><br />
During the first quarter of 2007, our McKee Refinery was shut down due to a fire originating in its
propane deasphalting unit, resulting in business interruption losses for which we submitted claims
to our
insurance carriers under our insurance policies. We reached a settlement with the insurance
carriers on our claims, resulting in pre-tax income of approximately $100 million in the first
quarter of 2008 that was recorded as a reduction to “cost of sales.”
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>TRN Refinery Commitment</i></b><br />
On May 20, 2009, we entered into a Business Sale Agreement (Agreement) with Dow Chemical Company
and certain of its affiliates (Dow) under which we agreed to purchase Dow’s 45% equity interest in
Total Raffinaderij Nederland N.V. (TRN), which owns a refinery in the Netherlands, along with
related businesses of TRN owned by Dow. The Agreement extends through December 31, 2009 and
provides for a purchase price of $600 million plus an amount for related inventories. The closing
of the transaction was conditioned upon, among other things, the expiration of a right of first
refusal held by Total S.A. (Total) to purchase Dow’s equity interest in TRN or a waiver by Total of
such right of first refusal. In June 2009, Total exercised its right of first refusal. To our
knowledge, Total’s acquisition of Dow’s equity interest in TRN has not closed, and we and Dow have
not executed a formal termination of the Agreement.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>Tax Matters</i></b><br />
We are subject to extensive tax liabilities, including federal, state, and foreign income taxes and
transactional taxes such as excise, sales/use, payroll, franchise, withholding, and ad valorem
taxes. New tax laws and regulations and changes in existing tax laws and regulations are
continuously being enacted or proposed that could result in increased expenditures for tax
liabilities in the future. Many of these liabilities are subject to periodic audits by the
respective taxing authority. Subsequent changes to our tax liabilities as a result of these audits
may subject us to interest and penalties.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">Effective January 1, 2007, the Government of Aruba (GOA) enacted a turnover tax on revenues from
the sale of goods produced and services rendered in Aruba. The turnover tax, which is 3% for
on-island sales and services and 1% on export sales, is being assessed by the GOA on sales by our
Aruba Refinery. However, due to a previous tax holiday that was granted to our Aruba Refinery by
the GOA through December 31, 2010 as well as other reasons, we believe that exports by our Aruba
Refinery should not be subject to this turnover tax. We commenced arbitration proceedings with the
Netherlands Arbitration Institute pursuant to which we are seeking to enforce our rights under the
tax holiday and other agreements related to the refinery. The arbitration hearing was held on
February 3-4, 2009. We anticipate a decision sometime later this year. We have also filed
protests of these assessments through proceedings in Aruba. In April 2008, we entered into an
escrow agreement with the GOA and Caribbean Mercantile Bank NV (CMB), pursuant to which we agreed
to deposit an amount equal to the disputed turnover tax on exports into an escrow account with CMB,
pending resolution of the tax protest proceedings in Aruba. Under this escrow agreement, we are
required to continue to deposit an amount equal to the disputed tax on a monthly basis until the
tax dispute is resolved through the Aruba proceedings. On April 20, 2009, we were notified that
the Aruban tax court overruled our protests with respect to the turnover tax assessed in January
and February 2007, totaling $8 million. Under the escrow agreement, we expensed and paid <font style="white-space: nowrap">$8 million,</font> plus $1 million of interest, to the GOA in the second quarter of 2009. The tax protests
for the remaining periods remain outstanding, and no expense or liability has been recognized in
our consolidated financial statements with respect to these remaining periods. Amounts deposited
under the escrow agreement, which totaled $111 million and $102 million as of June 30, 2009 and
December 31, 2008, respectively, are reflected as “restricted cash” in our consolidated balance
sheets.
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">In addition to the turnover tax described above, the GOA has also asserted other tax amounts
aggregating approximately $25 million related to dividends and other tax items. The GOA, through
the arbitration, is also now questioning the validity of the tax holiday generally, although the
GOA has not issued any formal assessment for profit tax at any time during the tax holiday period.
We believe that the provisions of our tax holiday agreement exempt us from all of these taxes and,
accordingly, no expense or liability has been recognized in our consolidated financial statements.
We are also challenging approximately $30 million in foreign exchange payments made to the Central
Bank of Aruba as payments exempted under our tax holiday, as well as other reasons. These taxes
and assessments are also being addressed in the arbitration proceedings discussed above.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>American Clean Energy and Security Act of 2009</i></b><br />
On June 26, 2009, the U.S. House of Representatives narrowly approved the American Clean Energy and
Security Act of 2009 (ACESA), also known as the Waxman-Markey Bill. The ACESA, if passed by the
U.S. Senate, would establish a national “cap-and-trade” program beginning in 2012 to address
greenhouse gas emissions and climate change. The ACESA proposes to reduce carbon dioxide and other
greenhouse gas emissions by 3% below 2005 levels by 2012, 20% below 2005 levels by 2020, 42% below
2005 levels by 2030, and 83% below 2005 levels by 2050. The cap-and-trade program would require
businesses that emit greenhouse gases to acquire emission credits from the government, other
businesses, or through an auction process. In addition, refiners would be obligated to purchase
emission credits associated with the transportation fuels (gasoline, diesel, and jet fuel) sold and
consumed in the United States. As a result of such a program, we could be required to purchase
emission credits for greenhouse gas emissions resulting from our operations and from the fuels we
sell. Although it is not possible at this time to predict the final form of the ACESA (or whether
it will be passed by the U.S. Senate), any new federal restrictions on greenhouse gas emissions –
including a cap-and-trade program – could result in increased compliance costs, additional
operating restrictions for our business, and an increase in the cost of the products we produce,
which could have an adverse effect on our financial position, results of operations, and liquidity.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>Litigation</i></b><br />
<i>MTBE Litigation</i><br />
As of August 1, 2009, we were named as a defendant in 33 active cases alleging liability related to
MTBE contamination in groundwater. The plaintiffs are generally water providers, governmental
authorities, and private water companies alleging that refiners and marketers of MTBE and gasoline
containing MTBE are liable for manufacturing or distributing a defective product. We have been
named in these lawsuits together with many other refining industry companies. We are being sued
primarily as a refiner and marketer of MTBE and gasoline containing MTBE. We do not own or operate
gasoline station facilities in most of the geographic locations in which damage is alleged to have
occurred. The lawsuits generally seek individual, unquantified compensatory and punitive damages,
injunctive relief, and attorneys’ fees. Many of the cases are pending in federal court and are
consolidated for pre-trial proceedings in the U.S. District Court for the Southern District of New
York (Multi-District Litigation Docket No. 1358, <i>In re: Methyl-Tertiary Butyl Ether Products
Liability Litigation</i>). Thirteen cases are pending in state court. We recently settled the <i>City of
New York </i>case, which had been set for trial in June 2009. We expect that the <i>Village of Hempstead</i>
and <i>West Hempstead Water District </i>cases will be set for trial in February 2010. Discovery is open
in all cases. We believe that we have strong defenses to all claims and are vigorously defending
the lawsuits.
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">We have recorded a loss contingency liability with respect to our MTBE litigation portfolio in
accordance with FASB Statement No. 5, “Accounting for Contingencies.” However, due to the inherent
uncertainty of litigation, we believe that it is reasonably possible (as defined in Statement No.
5) that we may suffer a loss with respect to one or more of the lawsuits in excess of the amount
accrued. We believe that such an outcome in any one of these lawsuits would not have a material
adverse effect on our results of operations or financial position. However, we believe that an
adverse result in all or a substantial number of these cases could have a material effect on our
results of operations and financial position. An estimate of the possible loss or range of loss
from an adverse result in all or substantially all of these cases cannot reasonably be made.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><i>Retail Fuel Temperature Litigation</i><br />
As of August 1, 2009, we were named in 21 consumer class action lawsuits relating to fuel
temperature. We have been named in these lawsuits together with several other defendants in the
retail petroleum marketing business. The complaints, filed in federal courts in several states,
allege that because fuel volume increases with fuel temperature, the defendants have violated state
consumer protection laws by failing to adjust the volume of fuel when the fuel temperature exceeded
60 degrees Fahrenheit. The complaints seek to certify classes of retail consumers who purchased
fuel in various locations. The complaints seek an order compelling the installation of temperature
correction devices as well as monetary relief. The federal lawsuits are consolidated into a
multi-district litigation case in the U.S. District Court for the District of Kansas
(Multi-District Litigation Docket No. 1840, <i>In re: Motor Fuel Temperature Sales Practices
Litigation</i>). Discovery has commenced. The court is expected to rule on certain class
certification issues in 2009. We believe that we have several strong defenses to these lawsuits
and intend to contest them. We have not recorded a loss contingency liability with respect to this
matter, but due to the inherent uncertainty of litigation, we believe that it is reasonably
possible (as defined in Statement No. 5) that we may suffer a loss with respect to one or more of
the lawsuits. An estimate of the possible loss or range of loss from an adverse result in all or
substantially all of these cases cannot reasonably be made.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><i>Rosolowski<br />
Rosolowski v. Clark Refining & Marketing, Inc., et al</i>., Judicial Circuit Court, Cook County,
Illinois (Case No. 95-L 014703). We assumed this lawsuit in our acquisition of Premcor Inc. The
lawsuit relates in part to a 1994 release to the atmosphere of spent catalyst from the now-closed
Blue Island, Illinois refinery. The case was certified as a class action in 2000 with three
classes, two of which received nominal or no damages, and one of which received a sizeable jury
verdict. That class consisted of local residents who claimed property damage or loss of use and
enjoyment of their property over a period of several years. In 2005, the jury returned a verdict
for the plaintiffs of $80 million in compensatory damages and $40 million in punitive damages.
However, following our motions for new trial and judgment notwithstanding the verdict (citing,
among other things, misconduct by plaintiffs’ counsel and improper class certification), the trial
judge in 2006 vacated the jury’s award and decertified the class. Plaintiffs appealed, and in June
2008 the state appeals court reversed the trial judge’s decision to decertify the class and set
aside the judgment. Thereafter, the Illinois Supreme Court refused to hear the case and returned
it to the trial court. We have submitted renewed motions for judgment notwithstanding the verdict
or, alternatively, a new trial. While we do not believe that the ultimate resolution of this
matter will have a material effect on our financial position or results of operations, we have
recorded a loss contingency liability with respect to this matter in accordance with Statement No.
5.
</div>
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<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><i>Other Litigation</i><br />
We are also a party to additional claims and legal proceedings arising in the ordinary course of
business. We believe that there is only a remote likelihood that future costs related to known
contingent liabilities related to these legal proceedings would have a material adverse impact on
our consolidated results of operations or financial position.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt"><b><i>Asset Impairments</i></b><br />
Under FASB Statement No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,”
long-lived assets must be tested for recoverability whenever events or changes in circumstances
indicate that the carrying amount of the long-lived assets may not be recoverable. A long-lived
asset is not recoverable if its carrying amount exceeds the sum of the undiscounted cash flows
expected to result from its use and eventual disposition. If a long-lived asset is not
recoverable, an impairment loss is recognized in an amount by which its carrying amount exceeds its
fair value, with fair value determined under Statement No. 157, generally based on discounted
estimated net cash flows.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">In order to test long-lived assets for recoverability, management must make estimates of projected
cash flows related to the asset being evaluated, which include, but are not limited to, assumptions
about the use or disposition of the asset, its estimated remaining life, and future expenditures
necessary to maintain its existing service potential. In order to determine fair value, management
must make certain estimates and assumptions including, among other things, an assessment of market
conditions, projected cash flows, investment rates, interest/equity rates, and growth rates, that
could significantly impact the fair value of the asset being tested for impairment.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">During the fourth quarter of 2008, there were severe disruptions in the capital and commodities
markets that contributed to a significant decline in our common stock price, thus causing our
market capitalization to decline to a level substantially below our net book value. Due to these
adverse changes in market conditions during the fourth quarter of 2008, we evaluated our
significant operating assets for potential impairment as of December 31, 2008, and we determined
that the carrying amount of each of these assets was recoverable. The economic slowdown that began
in 2008 continued throughout the first six months of 2009, thereby further reducing demand for
refined products and putting significant pressure on refined product margins. Due to these
economic conditions, in June 2009, we announced our plan to temporarily shut down the Aruba
Refinery, which had a net book value of approximately $1.0 billion as of June 30, 2009, for at
least two months as narrow heavy sour crude oil differentials currently make the refinery
uneconomical to operate. The Aruba Refinery was shut down in July 2009. We are continuing to
pursue potential transactions for this refinery, which may include the sale of the refinery. In
June 2009, the coker unit at the Corpus Christi East Refinery was also temporarily shut down,
partly due to economic reasons. As a result of these factors, we readdressed the potential
impairment of all of our significant operating assets as of June 30, 2009, incorporating updated
2009 price assumptions into our estimated cash flows. Based on this analysis, we determined that
the carrying amount of each of our significant operating assets continued to be recoverable as of
June 30, 2009.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">Also in the second quarter of 2009, due to the impact of the continuing economic slowdown on
refining industry fundamentals and in an effort to conserve cash, we evaluated all of our capital
projects currently in progress. As a result of this assessment, certain capital projects were
permanently cancelled, resulting in the write-off of $122 million of project costs in the second
quarter of 2009. We have also suspended continued construction activity on various other projects.
For example, our two hydrocracker projects on the Gulf Coast, one at the St. Charles Refinery and
the other at the Port Arthur Refinery, have been
suspended pending a reassessment of the demand for the additional refined product supply that would
result from these projects. As of June 30, 2009, approximately $915 million of costs had been
incurred on these two projects. In addition, various other projects with a total cost of
approximately $430 million as of June 30, 2009 have also been suspended.
</div>
<div align="left"><font size="1"><R></font>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">Due to the effect of the current unfavorable economic conditions on the refining industry, and our
expectations of a continuation of such conditions for the near term, we will continue to monitor
both our operating assets and our capital projects for potential asset impairments or project
write-offs until conditions improve. Our current evaluations are
focused on our Delaware City Refinery, which had a net book value of
approximately $2.0 billion as of June 30, 2009. Additional assessments will be performed in conjunction with our
annual strategic plan process in the third quarter of 2009. Changes in market conditions, as well
as changes in assumptions used to test for recoverability and to determine fair value, could result
in significant impairment charges or project write-offs in the future, thus affecting our earnings.
</div>
<div align="left"><font size="1"></R></font>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="justify" style="font-size: 10pt; margin-top: 12pt"><b>14. CONDENSED CONSOLIDATING FINANCIAL INFORMATION</b>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">In conjunction with the acquisition of Premcor Inc. on September 1, 2005, Valero Energy Corporation
has fully and unconditionally guaranteed the following debt of The Premcor Refining Group Inc.
(PRG), a wholly owned subsidiary of Valero Energy Corporation, that was outstanding as of June 30,
2009:
</div>
<div style="margin-top: 0pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 11pt; text-align: left">
<tr valign="top" style="font-size: 11pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>
<div style="text-align: justify">6.75% senior notes due February 2011,
</div></td>
</tr>
</table>
</div>
<div style="margin-top: 0pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 11pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>
<div style="text-align: justify">6.125% senior notes due May 2011,
</div></td>
</tr>
</table>
</div>
<div style="margin-top: 0pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 11pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>
<div style="text-align: justify">6.75% senior notes due May 2014, and
</div></td>
</tr>
</table>
</div>
<div style="margin-top: 0pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 11pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>
<div style="text-align: justify">7.5% senior notes due June 2015.
</div></td>
</tr>
</table>
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">In addition, PRG has fully and unconditionally guaranteed all of the outstanding debt issued by
Valero Energy Corporation.
</div>
<div align="justify" style="font-size: 11pt; margin-top: 11pt">The following condensed consolidating financial information is provided for Valero and PRG as an
alternative to providing separate financial statements for PRG. The accounts for all companies
reflected herein are presented using the equity method of accounting for investments in
subsidiaries.
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="Center" style="font-size: 11pt; margin-top: 10pt"><b>Condensed Consolidating Balance Sheet as of June 30, 2009<br />
(unaudited, in millions)</b>
</div>
<div align="center">
<table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="85%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Valero</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Other Non-</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Energy</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Guarantor</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Corporation</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>PRG</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Subsidiaries</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Eliminations</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Consolidated</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="line-height: 5.5pt"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="center">
<div style="margin-left:15px; text-indent:-15px"><b>ASSETS</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Current assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Cash and temporary cash investments
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">443</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">1,180</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">1,623</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Restricted cash
</div></td>
<td> </td>
<td> </td>
<td align="right">22</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">117</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">141</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Receivables, net
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">60</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,157</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,217</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Inventories
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">447</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,114</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,561</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Income taxes receivable
</div></td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">27</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Deferred income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">132</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">132</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Prepaid expenses and other
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">466</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">472</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total current assets
</div></td>
<td> </td>
<td> </td>
<td align="right">470</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">515</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,193</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">11,173</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Property, plant and equipment, at cost
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,129</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">23,559</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29,688</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Accumulated depreciation
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(575</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(4,829</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5,404</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Property, plant and equipment, net
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,554</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,730</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">24,284</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt">
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Intangible assets, net
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">221</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">221</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Investment in Valero Energy affiliates
</div></td>
<td> </td>
<td> </td>
<td align="right">6,194</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,052</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(296</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(8,950</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Long-term notes receivable from affiliates
</div></td>
<td> </td>
<td> </td>
<td align="right">16,659</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(16,659</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred income tax receivable
</div></td>
<td> </td>
<td> </td>
<td align="right">1,085</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,085</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred charges and other assets, net
</div></td>
<td> </td>
<td> </td>
<td align="right">127</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">123</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,293</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,543</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">24,535</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">9,244</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">30,141</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">(26,699</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$ </td>
<td align="right">37,221</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td align="center">
<div style="margin-left:15px; text-indent:-15px"><b>LIABILITIES AND STOCKHOLDERS’ EQUITY</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Current portion of debt and
capital lease obligations
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">33</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">104</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">137</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Accounts payable
</div></td>
<td> </td>
<td> </td>
<td align="right">31</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">190</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,619</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,840</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Accrued expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">110</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">33</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">207</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">350</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Taxes other than income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">539</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">557</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Income taxes payable
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">41</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">36</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Deferred income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">404</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">404</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total current liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">578</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">241</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,510</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">7,324</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Debt and capital lease obligations,
less current portion
</div></td>
<td> </td>
<td> </td>
<td align="right">6,299</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">897</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,231</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Long-term notes payable to affiliates
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,004</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,655</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(16,659</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,207</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,983</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,085</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">4,105</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other long-term liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">1,251</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">191</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">712</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,154</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Stockholders’ equity:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Common stock
</div></td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Additional paid-in capital
</div></td>
<td> </td>
<td> </td>
<td align="right">7,987</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,598</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,367</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5,965</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">7,987</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Treasury stock
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(6,856</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(6,856</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Retained earnings
</div></td>
<td> </td>
<td> </td>
<td align="right">15,384</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,884</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">4,767</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2,883</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">15,384</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Accumulated other comprehensive income (loss)
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(115</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(10</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">111</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(101</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(115</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total stockholders’ equity
</div></td>
<td> </td>
<td> </td>
<td align="right">16,407</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(296</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">9,246</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(8,950</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">16,407</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total liabilities and stockholders’ equity
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">24,535</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">9,244</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">30,141</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">(26,699</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$ </td>
<td align="right">37,221</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="Center" style="font-size: 11pt; margin-top: 10pt"><b>Condensed Consolidating Balance Sheet as of December 31, 2008<br />
(in millions)</b>
</div>
<div align="center">
<table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="85%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Valero</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Other Non-</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Energy</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Guarantor</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Corporation</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>PRG</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Subsidiaries</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Eliminations</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Consolidated</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="line-height: 5.5pt"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="center">
<div style="margin-left:15px; text-indent:-15px"><b>ASSETS</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Current assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Cash and temporary cash investments
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">215</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">725</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">940</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Restricted cash
</div></td>
<td> </td>
<td> </td>
<td align="right">23</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">106</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">131</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Receivables, net
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,861</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,897</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Inventories
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">360</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,277</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,637</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Income taxes receivable
</div></td>
<td> </td>
<td> </td>
<td align="right">76</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">197</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(76</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">197</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Deferred income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">98</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">98</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Prepaid expenses and other
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">542</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">550</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total current assets
</div></td>
<td> </td>
<td> </td>
<td align="right">314</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">406</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,806</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(76</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">9,450</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Property, plant and equipment, at cost
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,025</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22,078</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">28,103</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Accumulated depreciation
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(483</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(4,407</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(4,890</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Property, plant and equipment, net
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,542</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17,671</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">23,213</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt">
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Intangible assets, net
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">224</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">224</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Investment in Valero Energy affiliates
</div></td>
<td> </td>
<td> </td>
<td align="right">6,300</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,718</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">65</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(9,083</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Long-term notes receivable from affiliates
</div></td>
<td> </td>
<td> </td>
<td align="right">15,354</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(15,354</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred income tax receivable
</div></td>
<td> </td>
<td> </td>
<td align="right">883</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(883</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred charges and other assets, net
</div></td>
<td> </td>
<td> </td>
<td align="right">121</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">136</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,273</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,530</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">22,972</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">8,802</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">28,039</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">(25,396</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$ </td>
<td align="right">34,417</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px"><b>LIABILITIES AND STOCKHOLDERS’ EQUITY</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Current portion of debt and
capital lease obligations
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">209</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">103</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">312</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Accounts payable
</div></td>
<td> </td>
<td> </td>
<td align="right">43</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">414</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,989</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,446</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Accrued expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">82</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">258</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">374</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Taxes other than income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">23</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">569</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">592</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Income taxes payable
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">70</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(76</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Deferred income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">485</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">485</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total current liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">819</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">477</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,989</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(76</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">6,209</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Debt and capital lease obligations,
less current portion
</div></td>
<td> </td>
<td> </td>
<td align="right">5,329</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">899</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,264</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Long-term notes payable to affiliates
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,966</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,388</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(15,354</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,200</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,846</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(883</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">4,163</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other long-term liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">1,204</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">195</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">762</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,161</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Stockholders’ equity:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Common stock
</div></td>
<td> </td>
<td> </td>
<td align="right">6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">6</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Additional paid-in capital
</div></td>
<td> </td>
<td> </td>
<td align="right">7,190</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,598</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,349</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5,947</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">7,190</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Treasury stock
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(6,884</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(6,884</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Retained earnings
</div></td>
<td> </td>
<td> </td>
<td align="right">15,484</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,523</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">4,507</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2,984</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">15,484</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Accumulated other comprehensive income (loss)
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(176</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(10</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">161</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(151</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(176</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total stockholders’ equity
</div></td>
<td> </td>
<td> </td>
<td align="right">15,620</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">65</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,018</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(9,083</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">15,620</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total liabilities and stockholders’ equity
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">22,972</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">8,802</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">28,039</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">(25,396</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$ </td>
<td align="right">34,417</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="Center" style="font-size: 11pt; margin-top: 10pt"><b>Condensed Consolidating Statement of Income for the Three Months Ended June 30, 2009<br />
(unaudited, in millions)</b>
</div>
<div align="center">
<table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="85%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Valero</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Other Non-</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Energy</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Guarantor</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">  <b>Corporation</b>  </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>PRG</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Subsidiaries</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Eliminations</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Consolidated</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="line-height: 5.5pt"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating revenues
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">3,457</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">17,766</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">(3,298</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$ </td>
<td align="right">17,925</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Costs and expenses:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Cost of sales
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,726</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16,115</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3,298</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">16,543</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Operating expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">246</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">769</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,015</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Retail selling expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">171</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">171</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">General and administrative expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">120</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">124</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Depreciation and amortization expense
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">59</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">330</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">389</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total costs and expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,032</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17,505</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3,298</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">18,242</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating income (loss)
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(575</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">261</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(317</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity in earnings (losses) of subsidiaries
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(326</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">214</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(255</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">367</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other income (expense), net
</div></td>
<td> </td>
<td> </td>
<td align="right">289</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(28</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">152</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(437</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(24</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest and debt expense:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Incurred
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(162</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(127</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(266</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">437</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(118</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Capitalized
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Loss before income tax expense (benefit)
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(202</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(509</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(79</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">367</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(423</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income tax expense (benefit) (1)
</div></td>
<td> </td>
<td> </td>
<td align="right">52</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(254</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">33</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(169</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net loss
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">(254</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$ </td>
<td align="right">(255</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$ </td>
<td align="right">(112</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$ </td>
<td align="right">367</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">(254</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 10pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>The income tax expense (benefit) reflected in each column does not include any tax effect of
the equity in earnings (losses) of subsidiaries.</td>
</tr>
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="Center" style="font-size: 11pt; margin-top: 10pt"><b>Condensed Consolidating Statement of Income for the Three Months Ended June 30, 2008<br />
(unaudited, in millions)</b>
</div>
<div align="center">
<table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="85%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Valero</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Other Non-</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Energy</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Guarantor</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">  <b>Corporation</b>  </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>PRG</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Subsidiaries</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Eliminations</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Consolidated</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="line-height: 5.5pt"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating revenues
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">8,065</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">36,073</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">(7,498</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$ </td>
<td align="right">36,640</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Costs and expenses:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Cost of sales
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,849</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">33,322</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(7,498</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">33,673</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Operating expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">207</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">926</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,133</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Retail selling expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">190</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">190</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">General and administrative expenses
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">118</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">117</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Depreciation and amortization expense
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">60</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">309</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">369</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total costs and expenses
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">8,117</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34,865</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(7,498</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">35,482</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating income (loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(52</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,208</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,158</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity in earnings of subsidiaries
</div></td>
<td> </td>
<td> </td>
<td align="right">651</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">137</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(817</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other income (expense), net
</div></td>
<td> </td>
<td> </td>
<td align="right">281</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(18</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">190</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(438</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">15</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest and debt expense:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Incurred
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(135</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(132</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(278</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">438</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(107</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Capitalized
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">19</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">24</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) before income tax expense
(benefit)
</div></td>
<td> </td>
<td> </td>
<td align="right">799</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(60</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,168</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(817</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,090</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income tax expense (benefit) (1)
</div></td>
<td> </td>
<td> </td>
<td align="right">65</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(89</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">380</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">356</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">734</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">29</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">788</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">(817</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$ </td>
<td align="right">734</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 10pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>The income tax expense (benefit) reflected in each column does not include any tax effect of
the equity in earnings of subsidiaries.</td>
</tr>
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="Center" style="font-size: 11pt; margin-top: 10pt"><b>Condensed Consolidating Statement of Income for the Six Months Ended June 30, 2009<br />
(unaudited, in millions)</b>
</div>
<div align="center">
<table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="85%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Valero</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Other Non-</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Energy</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Guarantor</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">  <b>Corporation</b>  </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>PRG</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Subsidiaries</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Eliminations</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Consolidated</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="line-height: 5.5pt"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating revenues
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">6,191</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">31,470</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">(5,912</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$ </td>
<td align="right">31,749</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Costs and expenses:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Cost of sales
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,432</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27,651</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5,912</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">28,171</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Operating expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">485</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,527</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,012</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Retail selling expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">340</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">340</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">General and administrative expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">266</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">269</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Depreciation and amortization expense
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">123</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">644</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">767</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total costs and expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,042</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">30,428</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5,912</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">31,559</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating income (loss)
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(851</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,042</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">190</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity in earnings (losses) of subsidiaries
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(78</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">334</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(360</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">104</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other income (expense), net
</div></td>
<td> </td>
<td> </td>
<td align="right">544</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(42</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">313</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(840</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(25</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest and debt expense:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Incurred
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(305</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(242</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(530</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">840</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(237</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Capitalized
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">62</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">76</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) before income tax expense
(benefit)
</div></td>
<td> </td>
<td> </td>
<td align="right">160</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(787</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">527</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">104</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income tax expense (benefit) (1)
</div></td>
<td> </td>
<td> </td>
<td align="right">105</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(427</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">271</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(51</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income (loss)
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">55</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">(360</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$ </td>
<td align="right">256</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">104</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">55</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 10pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>The income tax expense (benefit) reflected in each column does not include any tax
effect of the equity in earnings (losses) of subsidiaries.</td>
</tr>
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="Center" style="font-size: 11pt; margin-top: 10pt"><b>Condensed Consolidating Statement of Income for the Six Months Ended June 30, 2008<br />
(unaudited, in millions)</b>
</div>
<div align="center">
<table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="85%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Valero</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Other Non-</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Energy</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Guarantor</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">  <b>Corporation</b>  </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>PRG</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Subsidiaries</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Eliminations</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Consolidated</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="line-height: 5.5pt"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating revenues
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">15,739</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">63,678</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">(14,832</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$ </td>
<td align="right">64,585</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Costs and expenses:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Cost of sales
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,268</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">58,906</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(14,832</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">59,342</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Operating expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">441</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,806</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,247</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Retail selling expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">378</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">378</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">General and administrative expenses
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">14</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">241</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">252</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Depreciation and amortization expense
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">138</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">598</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">736</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total costs and expenses
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">15,861</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">61,929</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(14,832</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">62,955</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating income (loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(122</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,749</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,630</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity in earnings (losses) of subsidiaries
</div></td>
<td> </td>
<td> </td>
<td align="right">787</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">176</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(92</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(871</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other income (expense), net
</div></td>
<td> </td>
<td> </td>
<td align="right">573</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(26</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">382</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(894</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">35</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest and debt expense:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Incurred
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(272</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(280</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(565</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">894</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(223</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Capitalized
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">43</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) before income tax expense
(benefit)
</div></td>
<td> </td>
<td> </td>
<td align="right">1,091</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(243</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,508</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(871</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,485</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income tax expense (benefit) (1)
</div></td>
<td> </td>
<td> </td>
<td align="right">96</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(151</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">545</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">490</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income (loss)
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">995</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">(92</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$ </td>
<td align="right">963</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">(871</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$ </td>
<td align="right">995</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 10pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>The income tax expense (benefit) reflected in each column does not include any tax
effect of the equity in earnings (losses) of subsidiaries.</td>
</tr>
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="Center" style="font-size: 11pt; margin-top: 10pt"><b>Condensed Consolidating Statement of Cash Flows for the Six Months Ended June 30, 2009<br />
(unaudited, in millions)</b>
</div>
<div align="center">
<table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="85%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Valero</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Other Non-</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Energy</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Guarantor</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Corporation</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>PRG</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Subsidiaries</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Eliminations</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Consolidated</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="line-height: 5.5pt"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net cash provided by (used in) operating activities
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">(8</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$ </td>
<td align="right">(819</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$ </td>
<td align="right">2,234</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">1,407</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash flows from investing activities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Capital expenditures
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(197</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,154</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,351</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Deferred turnaround and catalyst costs
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(20</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(229</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(249</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Acquisition of certain VeraSun Energy Corporation
facilities
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(556</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(556</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Return of investment in Cameron Highway Oil
Pipeline Company
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Minor acquisitions
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(29</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(29</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net intercompany loans
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,194</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,194</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other investing activities, net
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Net cash used in investing activities
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,194</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(217</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,957</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,194</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2,174</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash flows from financing activities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Proceeds from the sale of common stock, net of
issuance costs
</div></td>
<td> </td>
<td> </td>
<td align="right">799</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">799</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Non-bank debt:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Borrowings
</div></td>
<td> </td>
<td> </td>
<td align="right">998</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">998</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Repayments
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(209</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(209</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Accounts receivable sales program:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Proceeds from sale of receivables
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">500</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">500</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Repayments
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(500</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(500</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Common stock dividends
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(155</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(155</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net intercompany borrowings
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,036</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">158</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,194</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other financing activities, net
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Net cash provided by financing activities
</div></td>
<td> </td>
<td> </td>
<td align="right">1,430</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,036</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">156</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,194</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,428</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Effect of foreign exchange rate changes on cash
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net increase in cash and temporary cash investments
</div></td>
<td> </td>
<td> </td>
<td align="right">228</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">455</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">683</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash and temporary cash investments
at beginning of period
</div></td>
<td> </td>
<td> </td>
<td align="right">215</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">725</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">940</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash and temporary cash investments at end of period
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">443</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">1,180</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">1,623</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 11pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="Center" style="font-size: 11pt; margin-top: 10pt"><b>Condensed Consolidating Statement of Cash Flows for the Six Months Ended June 30, 2008<br />
(unaudited, in millions)</b>
</div>
<div align="center">
<table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="85%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="0%" style="border-right: 12pt solid #FFFFFF"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Valero</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Other Non-</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Energy</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Guarantor</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 9pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Corporation</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>PRG (1)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Subsidiaries (1)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Eliminations</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Consolidated</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="line-height: 5.5pt"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net cash provided by operating activities
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">274</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">65</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">1,463</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">1,802</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash flows from investing activities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Capital expenditures
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(247</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(931</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,178</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Deferred turnaround and catalyst costs
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(50</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(153</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(203</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Return of investment in Cameron Highway Oil
Pipeline Company
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Advance proceeds related to sale of assets
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Contingent payment in connection with acquisition
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(25</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(25</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Investments in subsidiaries
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(215</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">215</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Net intercompany loans
</div></td>
<td> </td>
<td> </td>
<td align="right">210</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(210</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Minor acquisition
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(57</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(57</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other investing activities, net
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Net cash used in investing activities
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(297</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,123</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,420</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt">
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash flows from financing activities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Non-bank debt repayments
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(368</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(374</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Bank credit agreements:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Borrowings
</div></td>
<td> </td>
<td> </td>
<td align="right">296</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">296</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Repayments
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(296</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(296</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Purchase of common stock for treasury
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(700</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(700</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Common stock dividends
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(143</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(143</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net intercompany borrowings (repayments)
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">600</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(810</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">210</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Capital contributions from parent
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">215</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(215</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other financing activities
</div></td>
<td> </td>
<td> </td>
<td align="right">24</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Net cash provided by (used in) financing activities
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(825</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">232</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(597</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,195</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Effect of foreign exchange rate changes on cash
</div></td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(7</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(7</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net decrease in cash and temporary cash investments
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(556</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(264</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(820</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash and temporary cash investments
at beginning of period
</div></td>
<td> </td>
<td> </td>
<td align="right">1,414</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,050</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,464</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash and temporary cash investments at end of period
</div></td>
<td> </td>
<td align="right">$ </td>
<td align="right">858</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">786</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">–</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">1,644</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 10pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>The information presented herein excludes a $918 million noncash capital contribution of
property and other assets, net of certain liabilities, from PRG to Valero Refining
Company–Tennessee, L.L.C. (included in “Other Non-Guarantor Subsidiaries”) on April 1, 2008.</td>
</tr>
</table>
</div>
</div>
</body>
</html>
false
--12-31
2009-06-30
10-Q
0001035002
562761441
Yes
Large Accelerated Filer
21600000000
VALERO ENERGY CORPORATION
No
Yes
4446000000
5840000000
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11173000000
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0.15
0.01
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1200000000
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4163000000
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1.88
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0.11
-0.48
1.85
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-0.48
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556000000
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1178000000
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799000000
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998000000
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500000000
-2000000
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28103000000
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500000000
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340000000
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525000000
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0
25000000
0
398000000
204000000
433000000
229000000
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