Delaware | 1-13175 | 74-1828067 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
One Valero Way San Antonio, Texas | 78249 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits. |
VALERO ENERGY CORPORATION | |||
Date: | April 26, 2018 | By: | /s/ Michael S. Ciskowski |
Michael S. Ciskowski | |||
Executive Vice President and | |||
Chief Financial Officer |
• | Reported net income attributable to Valero stockholders of $469 million, or $1.09 per share, and adjusted net income attributable to Valero stockholders of $431 million, or $1.00 per share, an increase of 47 percent in adjusted per share results compared to the first quarter of 2017. |
• | Invested $631 million of capital in the first quarter. |
• | Returned $665 million in cash to stockholders through dividends and stock buybacks. |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Statement of income data | |||||||
Revenues | $ | 26,439 | $ | 21,772 | |||
Cost of sales: | |||||||
Cost of materials and other (a) | 23,756 | 19,428 | |||||
Operating expenses (excluding depreciation and amortization expense reflected below) (b) | 1,136 | 1,124 | |||||
Depreciation and amortization expense | 485 | 488 | |||||
Total cost of sales | 25,377 | 21,040 | |||||
Other operating expenses (c) | 10 | — | |||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) (b) (d) | 238 | 192 | |||||
Depreciation and amortization expense | 13 | 12 | |||||
Operating income | 801 | 528 | |||||
Other income, net (b) | 51 | 26 | |||||
Interest and debt expense, net of capitalized interest | (121 | ) | (121 | ) | |||
Income before income tax expense | 731 | 433 | |||||
Income tax expense (e) | 149 | 112 | |||||
Net income | 582 | 321 | |||||
Less: Net income attributable to noncontrolling interests (a) | 113 | 16 | |||||
Net income attributable to Valero Energy Corporation stockholders | $ | 469 | $ | 305 | |||
Earnings per common share | $ | 1.09 | $ | 0.68 | |||
Weighted-average common shares outstanding (in millions) | 431 | 448 | |||||
Earnings per common share – assuming dilution | $ | 1.09 | $ | 0.68 | |||
Weighted-average common shares outstanding – assuming dilution (in millions) | 432 | 451 | |||||
Dividends per common share | $ | 0.80 | $ | 0.70 |
Refining | Ethanol | VLP | Corporate and Eliminations | Total | |||||||||||||||
Three months ended March 31, 2018 | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Revenues from external customers | $ | 25,561 | $ | 877 | $ | — | $ | 1 | $ | 26,439 | |||||||||
Intersegment revenues | 4 | 46 | 132 | (182 | ) | — | |||||||||||||
Total revenues | 25,565 | 923 | 132 | (181 | ) | 26,439 | |||||||||||||
Cost of sales: | |||||||||||||||||||
Cost of materials and other (a) | 23,188 | 749 | — | (181 | ) | 23,756 | |||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 997 | 111 | 29 | (1 | ) | 1,136 | |||||||||||||
Depreciation and amortization expense | 448 | 18 | 19 | — | 485 | ||||||||||||||
Total cost of sales | 24,633 | 878 | 48 | (182 | ) | 25,377 | |||||||||||||
Other operating expenses (c) | 10 | — | — | — | 10 | ||||||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) (d) | — | — | — | 238 | 238 | ||||||||||||||
Depreciation and amortization expense | — | — | — | 13 | 13 | ||||||||||||||
Operating income by segment | $ | 922 | $ | 45 | $ | 84 | $ | (250 | ) | $ | 801 | ||||||||
Three months ended March 31, 2017 | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Revenues from external customers | $ | 20,887 | $ | 885 | $ | — | $ | — | $ | 21,772 | |||||||||
Intersegment revenues | — | 60 | 106 | (166 | ) | — | |||||||||||||
Total revenues | 20,887 | 945 | 106 | (166 | ) | 21,772 | |||||||||||||
Cost of sales: | |||||||||||||||||||
Cost of materials and other | 18,807 | 787 | — | (166 | ) | 19,428 | |||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) (b) | 991 | 109 | 24 | — | 1,124 | ||||||||||||||
Depreciation and amortization expense | 449 | 27 | 12 | — | 488 | ||||||||||||||
Total cost of sales | 20,247 | 923 | 36 | (166 | ) | 21,040 | |||||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) (b) | — | — | — | 192 | 192 | ||||||||||||||
Depreciation and amortization expense | — | — | — | 12 | 12 | ||||||||||||||
Operating income by segment | $ | 640 | $ | 22 | $ | 70 | $ | (204 | ) | $ | 528 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Reconciliation of net income attributable to Valero Energy Corporation stockholders to adjusted net income attributable to Valero Energy Corporation stockholders | |||||||
Net income attributable to Valero Energy Corporation stockholders | $ | 469 | $ | 305 | |||
Exclude: | |||||||
Blender’s tax credit attributable to Valero Energy Corporation stockholders (a) | 90 | — | |||||
Income tax expense related to the blender’s tax credit | (11 | ) | — | ||||
Blender’s tax credit attributable to Valero Energy Corporation stockholders, net of taxes | 79 | — | |||||
Environmental reserve adjustment (d) | (52 | ) | — | ||||
Income tax benefit related to the environmental reserve adjustment | 11 | — | |||||
Environmental reserve adjustment, net of taxes | (41 | ) | — | ||||
Total adjustments | 38 | — | |||||
Adjusted net income attributable to Valero Energy Corporation stockholders | $ | 431 | $ | 305 | |||
Reconciliation of earnings per common share – assuming dilution to adjusted earnings per common share – assuming dilution | |||||||
Earnings per common share – assuming dilution | $ | 1.09 | $ | 0.68 | |||
Exclude adjustments: | |||||||
Blender’s tax credit attributable to Valero Energy Corporation stockholders (a) | 0.18 | — | |||||
Environmental reserve adjustment (d) | (0.09 | ) | — | ||||
Total adjustments | 0.09 | — | |||||
Adjusted earnings per common share – assuming dilution | $ | 1.00 | $ | 0.68 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Reconciliation of operating income by segment to segment margin, and reconciliation of operating income by segment to adjusted operating income by segment | |||||||
Refining segment | |||||||
Refining operating income | $ | 922 | $ | 640 | |||
Exclude: | |||||||
Blender’s tax credit (a) | 170 | — | |||||
Operating expenses (excluding depreciation and amortization expense reflected below) (b) | (997 | ) | (991 | ) | |||
Depreciation and amortization expense | (448 | ) | (449 | ) | |||
Other operating expenses (c) | (10 | ) | — | ||||
Refining margin | $ | 2,207 | $ | 2,080 | |||
Refining operating income | $ | 922 | $ | 640 | |||
Exclude: | |||||||
Blender’s tax credit (a) | 170 | — | |||||
Other operating expenses (c) | (10 | ) | — | ||||
Adjusted refining operating income | $ | 762 | $ | 640 | |||
Ethanol segment | |||||||
Ethanol operating income | $ | 45 | $ | 22 | |||
Exclude: | |||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | (111 | ) | (109 | ) | |||
Depreciation and amortization expense | (18 | ) | (27 | ) | |||
Ethanol margin | $ | 174 | $ | 158 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Reconciliation of refining segment operating income to refining margin (by region), and reconciliation of refining segment operating income to adjusted refining segment operating income (by region) (g) | |||||||
U.S. Gulf Coast region | |||||||
Refining operating income | $ | 539 | $ | 368 | |||
Exclude: | |||||||
Blender’s tax credit (a) | 167 | — | |||||
Operating expenses (excluding depreciation and amortization expense reflected below) (b) | (559 | ) | (577 | ) | |||
Depreciation and amortization expense | (268 | ) | (279 | ) | |||
Other operating expenses (c) | (10 | ) | — | ||||
Refining margin | $ | 1,209 | $ | 1,224 | |||
Refining operating income | $ | 539 | $ | 368 | |||
Exclude: | |||||||
Blender’s tax credit (a) | 167 | — | |||||
Other operating expenses (c) | (10 | ) | — | ||||
Adjusted refining operating income | $ | 382 | $ | 368 | |||
U.S. Mid-Continent region | |||||||
Refining operating income | $ | 203 | $ | 106 | |||
Exclude: | |||||||
Blender’s tax credit (a) | 2 | — | |||||
Operating expenses (excluding depreciation and amortization expense reflected below) (b) | (151 | ) | (147 | ) | |||
Depreciation and amortization expense | (66 | ) | (66 | ) | |||
Refining margin | $ | 418 | $ | 319 | |||
Refining operating income | $ | 203 | $ | 106 | |||
Exclude: blender’s tax credit (a) | 2 | — | |||||
Adjusted refining operating income | $ | 201 | $ | 106 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Reconciliation of refining segment operating income to refining margin (by region), and reconciliation of refining segment operating income to adjusted refining segment operating income (by region) (g) (continued) | |||||||
North Atlantic region | |||||||
Refining operating income | $ | 161 | $ | 197 | |||
Exclude: | |||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | (145 | ) | (132 | ) | |||
Depreciation and amortization expense | (53 | ) | (48 | ) | |||
Refining margin | $ | 359 | $ | 377 | |||
U.S. West Coast region | |||||||
Refining operating income (loss) | $ | 19 | $ | (31 | ) | ||
Exclude: | |||||||
Blender’s tax credit (a) | 1 | — | |||||
Operating expenses (excluding depreciation and amortization expense reflected below) (b) | (142 | ) | (135 | ) | |||
Depreciation and amortization expense | (61 | ) | (56 | ) | |||
Refining margin | $ | 221 | $ | 160 | |||
Refining operating income (loss) | $ | 19 | $ | (31 | ) | ||
Exclude: Blender’s tax credit (a) | 1 | — | |||||
Adjusted refining operating income (loss) | $ | 18 | $ | (31 | ) |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Throughput volumes (thousand barrels per day) | |||||||
Feedstocks: | |||||||
Heavy sour crude oil | 482 | 448 | |||||
Medium/light sour crude oil | 408 | 455 | |||||
Sweet crude oil | 1,344 | 1,245 | |||||
Residuals | 222 | 235 | |||||
Other feedstocks | 119 | 149 | |||||
Total feedstocks | 2,575 | 2,532 | |||||
Blendstocks and other | 356 | 306 | |||||
Total throughput volumes | 2,931 | 2,838 | |||||
Yields (thousand barrels per day) | |||||||
Gasolines and blendstocks | 1,401 | 1,360 | |||||
Distillates | 1,109 | 1,090 | |||||
Other products (h) | 458 | 425 | |||||
Total yields | 2,968 | 2,875 | |||||
Operating statistics (f) (i) | |||||||
Refining margin (from Table Page 4) | $ | 2,207 | $ | 2,080 | |||
Adjusted refining operating income (from Table Page 4) | $ | 762 | $ | 640 | |||
Throughput volumes (thousand barrels per day) | 2,931 | 2,838 | |||||
Refining margin per barrel of throughput | $ | 8.36 | $ | 8.14 | |||
Less: | |||||||
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput (b) | 3.78 | 3.87 | |||||
Depreciation and amortization expense per barrel of throughput | 1.69 | 1.76 | |||||
Adjusted refining operating income per barrel of throughput | $ | 2.89 | $ | 2.51 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Operating statistics (f) (i) | |||||||
Ethanol margin (from Table Page 4) | $ | 174 | $ | 158 | |||
Ethanol operating income (from Table Page 2) | $ | 45 | $ | 22 | |||
Production volumes (thousand gallons per day) | 4,113 | 4,041 | |||||
Ethanol margin per gallon of production | $ | 0.47 | $ | 0.43 | |||
Less: | |||||||
Operating expenses (excluding depreciation and amortization expense reflected below) per gallon of production | 0.30 | 0.30 | |||||
Depreciation and amortization expense per gallon of production | 0.05 | 0.07 | |||||
Ethanol operating income per gallon of production | $ | 0.12 | $ | 0.06 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Operating statistics (i) | |||||||
Pipeline transportation revenue | $ | 31 | $ | 23 | |||
Terminaling revenue | 99 | 83 | |||||
Storage and other revenue | 2 | — | |||||
Total VLP revenues | $ | 132 | $ | 106 | |||
Pipeline transportation throughput (thousand barrels per day) | 1,062 | 962 | |||||
Pipeline transportation revenue per barrel of throughput | $ | 0.33 | $ | 0.27 | |||
Terminaling throughput (thousand barrels per day) | 3,396 | 2,734 | |||||
Terminaling revenue per barrel of throughput | $ | 0.32 | $ | 0.34 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Operating statistics by region (g) | |||||||
U.S. Gulf Coast region (f) (i) | |||||||
Refining margin (from Table Page 5) | $ | 1,209 | $ | 1,224 | |||
Adjusted refining operating income (from Table Page 5) | $ | 382 | $ | 368 | |||
Throughput volumes (thousand barrels per day) | 1,726 | 1,703 | |||||
Refining margin per barrel of throughput | $ | 7.78 | $ | 7.98 | |||
Less: | |||||||
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput (b) | 3.60 | 3.75 | |||||
Depreciation and amortization expense per barrel of throughput | 1.72 | 1.82 | |||||
Adjusted refining operating income per barrel of throughput | $ | 2.46 | $ | 2.41 | |||
U.S. Mid-Continent region (f) (i) | |||||||
Refining margin (from Table Page 5) | $ | 418 | $ | 319 | |||
Adjusted refining operating income (from Table Page 5) | $ | 201 | $ | 106 | |||
Throughput volumes (thousand barrels per day) | 481 | 445 | |||||
Refining margin per barrel of throughput | $ | 9.66 | $ | 7.98 | |||
Less: | |||||||
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput (b) | 3.48 | 3.68 | |||||
Depreciation and amortization expense per barrel of throughput | 1.53 | 1.66 | |||||
Adjusted refining operating income per barrel of throughput | $ | 4.65 | $ | 2.64 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Operating statistics by region (g) (continued) | |||||||
North Atlantic region (f) (i) | |||||||
Refining margin (from Table Page 6) | $ | 359 | $ | 377 | |||
Refining operating income (from Table Page 6) | $ | 161 | $ | 197 | |||
Throughput volumes (thousand barrels per day) | 458 | 490 | |||||
Refining margin per barrel of throughput | $ | 8.70 | $ | 8.55 | |||
Less: | |||||||
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput | 3.52 | 2.98 | |||||
Depreciation and amortization expense per barrel of throughput | 1.28 | 1.11 | |||||
Refining operating income per barrel of throughput | $ | 3.90 | $ | 4.46 | |||
U.S. West Coast region (f) (i) | |||||||
Refining margin (from Table Page 6) | $ | 221 | $ | 160 | |||
Adjusted refining operating income (loss) (from Table Page 6) | $ | 18 | $ | (31 | ) | ||
Throughput volumes (thousand barrels per day) | 266 | 200 | |||||
Refining margin per barrel of throughput | $ | 9.22 | $ | 8.86 | |||
Less: | |||||||
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput (b) | 5.93 | 7.47 | |||||
Depreciation and amortization expense per barrel of throughput | 2.51 | 3.10 | |||||
Adjusted refining operating income (loss) per barrel of throughput | $ | 0.78 | $ | (1.71 | ) |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Feedstocks (dollars per barrel) | |||||||
Brent crude oil | $ | 67.16 | $ | 54.65 | |||
Brent less West Texas Intermediate (WTI) crude oil | 4.29 | 2.82 | |||||
Brent less Alaska North Slope (ANS) crude oil | 0.20 | 0.82 | |||||
Brent less Louisiana Light Sweet (LLS) crude oil | 1.38 | 1.13 | |||||
Brent less Argus Sour Crude Index (ASCI) crude oil | 4.88 | 5.05 | |||||
Brent less Maya crude oil | 9.46 | 9.93 | |||||
LLS crude oil | 65.78 | 53.52 | |||||
LLS less ASCI crude oil | 3.50 | 3.92 | |||||
LLS less Maya crude oil | 8.08 | 8.80 | |||||
WTI crude oil | 62.87 | 51.83 | |||||
Natural gas (dollars per million British Thermal Units) | 3.19 | 2.95 | |||||
Products (dollars per barrel, unless otherwise noted) | |||||||
U.S. Gulf Coast: | |||||||
CBOB gasoline less Brent | 7.28 | 8.78 | |||||
Ultra-low-sulfur diesel less Brent | 13.78 | 11.12 | |||||
Propylene less Brent | (6.82 | ) | 1.22 | ||||
CBOB gasoline less LLS | 8.66 | 9.91 | |||||
Ultra-low-sulfur diesel less LLS | 15.16 | 12.25 | |||||
Propylene less LLS | (5.44 | ) | 2.35 | ||||
U.S. Mid-Continent: | |||||||
CBOB gasoline less WTI | 13.47 | 12.71 | |||||
Ultra-low-sulfur diesel less WTI | 19.83 | 13.99 | |||||
North Atlantic: | |||||||
CBOB gasoline less Brent | 8.88 | 8.68 | |||||
Ultra-low-sulfur diesel less Brent | 15.95 | 12.06 | |||||
U.S. West Coast: | |||||||
CARBOB 87 gasoline less ANS | 13.27 | 16.77 | |||||
CARB diesel less ANS | 17.28 | 14.84 | |||||
CARBOB 87 gasoline less WTI | 17.36 | 18.77 | |||||
CARB diesel less WTI | 21.37 | 16.84 | |||||
New York Harbor corn crush (dollars per gallon) | 0.19 | 0.23 |
March 31, | December 31, | |||||||
2018 | 2017 | |||||||
Balance sheet data | ||||||||
Current assets | $ | 18,260 | $ | 19,312 | ||||
Cash and temporary cash investments included in current assets | 4,658 | 5,850 | ||||||
Inventories included in current assets | 6,555 | 6,384 | ||||||
Current liabilities | 10,752 | 11,071 | ||||||
Current portion of debt and capital lease obligations included in current liabilities | 871 | 122 | ||||||
Debt and capital lease obligations, less current portion | 8,086 | 8,750 | ||||||
Total debt and capital lease obligations | 8,957 | 8,872 | ||||||
Valero Energy Corporation stockholders’ equity | 21,877 | 21,991 | ||||||
Three Months Ended March 31, | ||||||||
2018 | 2017 | |||||||
Cash flow data | ||||||||
Net cash provided by operating activities | $ | 138 | $ | 988 |
(a) | Cost of materials and other for the three months ended March 31, 2018 includes a benefit of $170 million for the biodiesel blender’s tax credit attributable to volumes blended during 2017. The benefit was recognized during the three months ended March 31, 2018 because the legislation authorizing the credit was passed and signed into law in February 2018. The $170 million pre-tax benefit is included in the refining segment and includes $80 million attributable to noncontrolling interest and $90 million attributable to Valero Energy Corporation stockholders. |
(b) | Effective January 1, 2018, we adopted the provisions of Accounting Standards Update 2017-07, “Compensation—Retirement Benefits (Topic 715),” which resulted in the reclassification of the non-service component of net periodic pension cost and net periodic postretirement benefit cost from operating expenses (excluding depreciation and amortization expense) and general and administrative expenses (excluding depreciation and amortization expense) to “other income, net.” These new provisions are required to be applied retrospectively. Accordingly, for the three months ended March 31, 2017, we reclassified the non-service component out of operating expenses (excluding depreciation and amortization expense) and general and administrative expenses (excluding depreciation and amortization expense) of $7 million and $2 million, respectively, and into “other income, net.” |
(c) | Other operating expenses reflects expenses that are not associated with our cost of sales. Other operating expenses for the three months ended March 31, 2018 primarily includes repair costs incurred at certain of our refineries due to damage associated with inclement weather events in 2018 and Hurricane Harvey in 2017. |
(d) | General and administrative expenses (excluding depreciation and amortization expense) for the three months ended March 31, 2018 includes a charge of $52 million for an environmental reserve adjustment associated with certain non-operating sites. |
(e) | As a result of the Tax Cut and Jobs Act of 2017 enacted on December 22, 2017, the U.S. statutory income tax rate was reduced from 35 percent to 21 percent. Therefore, earnings from our U.S. operations for the three months ended March 31, 2018 are now taxed at 21 percent, resulting in a lower effective tax rate compared to the three months ended March 31, 2017. |
(f) | We use certain financial measures (as noted below) in the earnings release tables and accompanying earnings release that are not defined under U.S. GAAP and are considered to be non-GAAP measures. |
◦ | Adjusted net income attributable to Valero Energy Corporation stockholders is defined as net income attributable to Valero Energy Corporation stockholders excluding the blender’s tax credit, the environmental reserve adjustment, and their related income tax effect. Because the blender’s tax credit is attributable to volumes blended during 2017 and is not related to 2018 activities (see note (a)) and the environmental reserve adjustment is attributable to sites that were shutdown by prior owners and subsequently acquired by us (referred to by us as non-operating sites) (see note (d)), we believe that these items are not indicative of our core operating performance in 2018 and that their exclusion results in an important measure for our ongoing financial performance to better assess our underlying business results and trends. |
◦ | Adjusted earnings per common share – assuming dilution is defined as adjusted net income attributable to Valero Energy Corporation stockholders divided by the number of weighted-average shares outstanding in the applicable period, assuming dilution. |
◦ | Refining margin is defined as refining operating income excluding the blender’s tax credit, operating expenses (excluding depreciation and amortization expense), other operating expenses, and depreciation and amortization expense. We believe refining margin is an important measure of our refining segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance. |
◦ | Ethanol margin is defined as ethanol operating income excluding operating expenses (excluding depreciation and amortization expense) and depreciation and amortization expense. We believe ethanol margin is an important measure of our ethanol segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance. |
◦ | Adjusted refining operating income is defined as refining segment operating income excluding the 2017 blender’s tax credit received in 2018 (see note (a)) and other operating expenses. We believe adjusted refining operating income is an important measure of our refining segment’s operating and financial performance because it excludes items that are not indicative of that segment’s core operating performance. |
(g) | The refining segment regions reflected herein contain the following refineries: U.S. Gulf Coast- Corpus Christi East, Corpus Christi West, Houston, Meraux, Port Arthur, St. Charles, Texas City, and Three Rivers Refineries; U.S. Mid-Continent- Ardmore, McKee, and Memphis Refineries; North Atlantic- Pembroke and Quebec City Refineries; and U.S. West Coast- Benicia and Wilmington Refineries. |
(h) | Primarily includes petrochemicals, gas oils, No. 6 fuel oil, petroleum coke, sulfur, and asphalt. |
(i) | Valero uses certain operating statistics (as noted below) in the earnings release tables and the accompanying earnings release to evaluate performance between comparable periods. Different companies may calculate them in different ways. |