UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 30, 2015
VALERO ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
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| | | | |
Delaware | | 1-13175 | | 74-1828067 |
(State or other jurisdiction of incorporation) | | (Commission File Number) | | (IRS Employer Identification No.) |
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| | |
One Valero Way San Antonio, Texas | | 78249 |
(Address of principal executive offices) | | (Zip Code) |
Registrant’s telephone number, including area code: (210) 345-2000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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| | |
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)) |
Item 2.02 Results of Operations and Financial Condition.
On July 30, 2015, Valero Energy Corporation (the “Company”) issued a press release announcing the Company’s financial and operating results for the second quarter ended June 30, 2015. A copy of the press release is furnished with this report as Exhibit 99.01 and is incorporated herein by reference.
The information in this report is being furnished, not filed, pursuant to Item 2.02 of Form 8-K. Accordingly, the information in this report, including the press release, will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.
Item 9.01 Financial Statements and Exhibits.
99.01 Press release dated July 30, 2015.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| | | |
| | VALERO ENERGY CORPORATION |
| | | |
| | | |
Date: | July 30, 2015 | By: | /s/ Michael S. Ciskowski |
| | | Michael S. Ciskowski |
| | | Executive Vice President and |
| | | Chief Financial Officer |
Exhibit 99.01
Valero Energy Reports Second Quarter 2015 Results
| |
• | Earnings per share from continuing operations of $2.66, versus $1.22 in the second quarter of 2014 |
| |
• | Refineries operated at 96 percent throughput capacity utilization |
| |
• | Increased targeted total payout ratio to approximately 75 percent of 2015 net income |
SAN ANTONIO, July 30, 2015 - Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income from continuing operations attributable to Valero stockholders of $1.4 billion, or $2.66 per share, in the second quarter of 2015 compared to $651 million, or $1.22 per share, in the second quarter of 2014.
“After completing a heavy planned maintenance period in the prior quarter, our refineries were ready and available to respond to improving market conditions in the second quarter,” said Joe Gorder, Valero Chairman, President and Chief Executive Officer. “Our plants operated safely and reliably, enabling us to generate strong results.”
Refining
The refining segment reported second quarter 2015 operating income of $2.2 billion versus $1.1 billion in the second quarter of 2014. The $1.1 billion increase in operating income primarily resulted from a $3.87 increase in throughput margin per barrel from $9.84 in the second quarter of 2014 to $13.71 in the second quarter of 2015, driven mainly by stronger gasoline and other product margins per barrel relative to Brent crude oil and lower natural gas costs. Lower discounts per barrel for most sweet and sour crude oils relative to Brent crude oil partially offset these factors.
Second quarter 2015 refining throughput volumes averaged 2.8 million barrels per day, an increase of 87,000 barrels per day from the second quarter of 2014 primarily attributed to less maintenance activity during the second quarter of 2015. Valero’s refineries operated at 96 percent throughput capacity utilization in the second quarter of 2015.
“Market conditions favored gasoline over distillate production in most regions,” said Gorder. “The crude oil price environment was at a level which continued to support upstream production while still stimulating consumer demand for refined products.”
Ethanol
The ethanol segment reported second quarter 2015 operating income of $108 million versus $187 million in the second quarter of 2014. The $79 million decrease in operating income was mainly due to lower gross margin per gallon driven by a decline in gasoline and ethanol prices, which more than offset a decrease in corn prices. Average ethanol production volumes were 3.8 million gallons per day in the second quarter of 2015, an increase of 517,000 gallons per day versus the second quarter of 2014, due to less weather-related rail disruptions and incremental production volumes from the Mount Vernon plant, which was acquired in March 2014 but did not begin operating until August 2014.
Corporate and Other
General and administrative expenses were $178 million in the second quarter of 2015 versus $170 million in the second quarter of 2014. The effective tax rate was 30.8 percent in the second quarter of 2015.
Capital Allocation
Capital spending was $530 million in the second quarter of 2015, of which $160 million was for turnarounds and catalyst. Valero also repaid $75 million of debt during the second quarter of 2015.
Valero returned a total of $870 million in cash to stockholders in the second quarter of 2015, of which $203 million was paid in dividends and $667 million was used to purchase 11.3 million shares of Valero common stock. Year to date, the company has purchased 19.5 million shares of its common stock for $1.2 billion. On July 13, Valero announced an incremental $2.5 billion share repurchase authorization. Combined with approximately $400 million of existing authorization, the company has $2.9 billion available for stock repurchases.
“We continue to focus on our key priorities of optimizing our operations, generating strong results, and returning cash to stockholders,” said Gorder. “We are operating within our $2.65 billion capital budget and we’ve doubled the buyback pace from the first six months of last year. We expect our total payout ratio for 2015 to be approximately 75 percent.”
The company defines total payout ratio as the sum of dividends plus stock buybacks divided by net income from continuing operations attributable to Valero stockholders.
Liquidity and Financial Position
Valero ended the second quarter of 2015 with $7.3 billion in total debt and $5.8 billion of cash and temporary cash investments, of which $52 million was held by Valero Energy Partners LP (“VLP”). Valero’s debt-to-capital ratio, net of $2 billion in cash, was approximately 20 percent.
Strategic Update
Valero is on track to complete its goal of $1 billion of drop-down transactions to VLP in 2015.
Valero continued to advance its capital investments, which are designed to increase its ability to access and process more North American crude oil. The construction of the two crude topping units at the Corpus Christi and Houston refineries is progressing as planned, with startup expected in the first quarter of 2016. Valero also continues to evaluate refining growth investments that upgrade low cost natural gas or natural gas liquids into higher value products, including the St. Charles methanol and the Houston alkylation projects.
Valero’s 2015 capital budget, including turnarounds and catalyst includes $1.5 billion for stay-in-business capital and $1.15 billion for growth investment, and excludes the St. Charles methanol project that remains under evaluation. Valero expects the majority of growth investments in 2015 will be for North American crude oil processing and logistics. The company believes that most of the logistics investments will be eligible for future drop-down transactions to VLP.
Conference Call
Valero’s senior management will hold a conference call at 11 a.m. ET today to discuss this earnings release and to provide an update on company operations and strategy.
About Valero
Valero Energy Corporation, through its subsidiaries, is an international manufacturer and marketer of transportation fuels, other petrochemical products and power. Valero subsidiaries employ approximately 10,000 people, and assets include 15 petroleum refineries with a combined throughput capacity of approximately 2.9 million barrels per day, 11 ethanol plants with a combined production capacity of 1.3 billion gallons per year, a 50-megawatt wind farm, and renewable diesel production from a joint venture. Through subsidiaries, Valero owns the general partner of Valero Energy Partners LP (NYSE: VLP), a midstream master limited partnership. Approximately 7,400 outlets carry the Valero, Diamond Shamrock, Shamrock, and Beacon brands in the United States and the Caribbean; Ultramar in Canada; and Texaco in the United Kingdom and Ireland. Valero is a Fortune 500 company based in San Antonio. Please visit www.valero.com for more information.
Valero Contacts
Investors:
John Locke, Executive Director – Investor Relations, 210-345-3077
Karen Ngo, Manager – Investor Relations, 210-345-4574
Media:
Bill Day, Vice President – Communications, 210-345-2928
To download our investor relations mobile app, which offers access to SEC filings, press releases, unit quotes, and upcoming events, please visit Apple’s iTunes App Store for your iPhone and iPad or Google’s Play Store for your Android mobile device.
Safe-Harbor Statement
Statements contained in this release that state the company’s or management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “believe,” “expect,” “should,” “estimates,” “intend,” and other similar expressions identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual reports on Form 10-K and quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission (“SEC”) and on Valero’s website at www.valero.com, and VLP’s annual reports on Form 10-K and quarterly reports on Form 10-Q, filed with the SEC and on VLP’s website at www.valeroenergypartners.com.
VALERO ENERGY CORPORATION AND SUBSIDIARIES
EARNINGS RELEASE
(Millions of Dollars, Except per Share, per Barrel, and per Gallon Amounts)
(Unaudited)
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended |
| | June 30, | | June 30, |
| | 2015 | | 2014 | | 2015 | | 2014 |
Statement of Income Data (a): | | | | | | | | |
Operating revenues | | $ | 25,118 |
| | $ | 34,914 |
| | $ | 46,448 |
| | $ | 68,577 |
|
Costs and expenses: | | | | | | | | |
Cost of sales | | 21,394 |
| | 32,167 |
| | 39,557 |
| | 62,797 |
|
Operating expenses: | | | | | | | | |
Refining | | 935 |
| | 967 |
| | 1,899 |
| | 1,939 |
|
Ethanol | | 108 |
| | 111 |
| | 228 |
| | 240 |
|
General and administrative expenses | | 178 |
| | 170 |
| | 325 |
| | 330 |
|
Depreciation and amortization expense | | 425 |
| | 414 |
| | 866 |
| | 835 |
|
Total costs and expenses | | 23,040 |
| | 33,829 |
| | 42,875 |
| | 66,141 |
|
Operating income | | 2,078 |
| | 1,085 |
| | 3,573 |
| | 2,436 |
|
Other income, net | | 8 |
| | 12 |
| | 32 |
| | 27 |
|
Interest and debt expense, net of capitalized interest | | (113 | ) | | (98 | ) | | (214 | ) | | (198 | ) |
Income from continuing operations before income tax expense | | 1,973 |
| | 999 |
| | 3,391 |
| | 2,265 |
|
Income tax expense | | 608 |
| | 343 |
| | 1,058 |
| | 772 |
|
Income from continuing operations | | 1,365 |
| | 656 |
| | 2,333 |
| | 1,493 |
|
Loss from discontinued operations (a) | | — |
| | (63 | ) | | — |
| | (64 | ) |
Net income | | 1,365 |
| | 593 |
| | 2,333 |
| | 1,429 |
|
Less: Net income attributable to noncontrolling interests | | 14 |
| | 5 |
| | 18 |
| | 13 |
|
Net income attributable to Valero Energy Corporation stockholders | | $ | 1,351 |
| | $ | 588 |
| | $ | 2,315 |
| | $ | 1,416 |
|
Net income attributable to Valero Energy Corporation stockholders: | | | | | | | | |
Continuing operations | | $ | 1,351 |
| | $ | 651 |
| | $ | 2,315 |
| | $ | 1,480 |
|
Discontinued operations | | — |
| | (63 | ) | | — |
| | (64 | ) |
Total | | $ | 1,351 |
| | $ | 588 |
| | $ | 2,315 |
| | $ | 1,416 |
|
Earnings per common share: | | | | | | | | |
Continuing operations | | $ | 2.67 |
| | $ | 1.23 |
| | $ | 4.53 |
| | $ | 2.78 |
|
Discontinued operations | | — |
| | (0.12 | ) | | — |
| | (0.12 | ) |
Total | | $ | 2.67 |
| | $ | 1.11 |
| | $ | 4.53 |
| | $ | 2.66 |
|
Weighted-average common shares outstanding (in millions) | | 505 |
| | 529 |
| | 509 |
| | 530 |
|
Earnings per common share – assuming dilution: | | | | | | | | |
Continuing operations | | $ | 2.66 |
| | $ | 1.22 |
| | $ | 4.52 |
| | $ | 2.77 |
|
Discontinued operations | | — |
| | (0.12 | ) | | — |
| | (0.12 | ) |
Total | | $ | 2.66 |
| | $ | 1.10 |
| | $ | 4.52 |
| | $ | 2.65 |
|
Weighted-average common shares outstanding - assuming dilution (in millions) | | 508 |
| | 534 |
| | 512 |
| | 535 |
|
| | | | | | | | |
Dividends per common share | | $ | 0.40 |
| | $ | 0.25 |
| | $ | 0.80 |
| | $ | 0.50 |
|
See Notes to Earnings Release on Table Page 6.
VALERO ENERGY CORPORATION AND SUBSIDIARIES
EARNINGS RELEASE
(Millions of Dollars, Except per Share, per Barrel, and per Gallon Amounts)
(Unaudited)
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended |
| | June 30, | | June 30, |
| | 2015 | | 2014 | | 2015 | | 2014 |
Operating income by business segment: | | | | | | | | |
Refining (a) | | $ | 2,161 |
| | $ | 1,079 |
| | $ | 3,802 |
| | $ | 2,359 |
|
Ethanol | | 108 |
| | 187 |
| | 120 |
| | 430 |
|
Corporate | | (191 | ) | | (181 | ) | | (349 | ) | | (353 | ) |
Total | | $ | 2,078 |
| | $ | 1,085 |
| | $ | 3,573 |
| | $ | 2,436 |
|
Depreciation and amortization expense by business segment: | | | | | | | | |
Refining | | $ | 408 |
| | $ | 391 |
| | $ | 825 |
| | $ | 788 |
|
Ethanol | | 4 |
| | 12 |
| | 17 |
| | 24 |
|
Corporate | | 13 |
| | 11 |
| | 24 |
| | 23 |
|
Total | | $ | 425 |
| | $ | 414 |
| | $ | 866 |
| | $ | 835 |
|
Operating highlights: | | | | | | | | |
Refining (a): | | | | | | | | |
Throughput margin per barrel | | $ | 13.71 |
| | $ | 9.84 |
| | $ | 13.07 |
| | $ | 10.36 |
|
Operating costs per barrel: | | | | | | | | |
Operating expenses | | 3.66 |
| | 3.90 |
| | 3.80 |
| | 3.95 |
|
Depreciation and amortization expense | | 1.59 |
| | 1.58 |
| | 1.66 |
| | 1.60 |
|
Total operating costs per barrel | | 5.25 |
| | 5.48 |
| | 5.46 |
| | 5.55 |
|
Operating income per barrel | | $ | 8.46 |
| | $ | 4.36 |
| | $ | 7.61 |
| | $ | 4.81 |
|
Throughput volumes (thousand barrels per day): | | | | | | | | |
Feedstocks: | | | | | | | | |
Heavy sour crude oil | | 448 |
| | 428 |
| | 439 |
| | 453 |
|
Medium/light sour crude oil | | 468 |
| | 472 |
| | 423 |
| | 491 |
|
Sweet crude oil | | 1,177 |
| | 1,084 |
| | 1,161 |
| | 1,074 |
|
Residuals | | 269 |
| | 235 |
| | 263 |
| | 219 |
|
Other feedstocks | | 131 |
| | 152 |
| | 153 |
| | 140 |
|
Total feedstocks | | 2,493 |
| | 2,371 |
| | 2,439 |
| | 2,377 |
|
Blendstocks and other | | 315 |
| | 350 |
| | 320 |
| | 334 |
|
Total throughput volumes | | 2,808 |
| | 2,721 |
| | 2,759 |
| | 2,711 |
|
Yields (thousand barrels per day): | | | | | | | | |
Gasolines and blendstocks | | 1,368 |
| | 1,318 |
| | 1,342 |
| | 1,307 |
|
Distillates | | 1,087 |
| | 1,034 |
| | 1,057 |
| | 1,029 |
|
Other products (b) | | 394 |
| | 405 |
| | 400 |
| | 410 |
|
Total yields | | 2,849 |
| | 2,757 |
| | 2,799 |
| | 2,746 |
|
See Notes to Earnings Release on Table Page 6.
VALERO ENERGY CORPORATION AND SUBSIDIARIES
EARNINGS RELEASE
(Millions of Dollars, Except per Share, per Barrel, and per Gallon Amounts)
(Unaudited)
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended |
| | June 30, | | June 30, |
| | 2015 | | 2014 | | 2015 | | 2014 |
Refining operating highlights by region (c): | | | | | | | | |
U.S. Gulf Coast (a): | | | | | | | | |
Operating income | | $ | 1,086 |
| | $ | 660 |
| | $ | 1,958 |
| | $ | 1,543 |
|
Throughput volumes (thousand barrels per day) | | 1,611 |
| | 1,567 |
| | 1,569 |
| | 1,576 |
|
Throughput margin per barrel | | $ | 12.62 |
| | $ | 10.03 |
| | $ | 12.31 |
| | $ | 10.75 |
|
Operating costs per barrel: | |
| |
| |
| |
|
Operating expenses | | 3.59 |
| | 3.82 |
| | 3.71 |
| | 3.72 |
|
Depreciation and amortization expense | | 1.62 |
| | 1.58 |
| | 1.71 |
| | 1.62 |
|
Total operating costs per barrel | | 5.21 |
| | 5.40 |
| | 5.42 |
| | 5.34 |
|
Operating income per barrel | | $ | 7.41 |
| | $ | 4.63 |
| | $ | 6.89 |
| | $ | 5.41 |
|
U.S. Mid-Continent: | |
| |
| | | | |
Operating income | | $ | 398 |
| | $ | 250 |
| | $ | 715 |
| | $ | 480 |
|
Throughput volumes (thousand barrels per day) | | 436 |
| | 426 |
| | 434 |
| | 412 |
|
Throughput margin per barrel | | $ | 15.27 |
| | $ | 12.07 |
| | $ | 14.55 |
| | $ | 12.33 |
|
Operating costs per barrel: | |
| |
| |
| |
|
Operating expenses | | 3.58 |
| | 3.91 |
| | 3.77 |
| | 4.17 |
|
Depreciation and amortization expense | | 1.66 |
| | 1.70 |
| | 1.68 |
| | 1.72 |
|
Total operating costs per barrel | | 5.24 |
| | 5.61 |
| | 5.45 |
| | 5.89 |
|
Operating income per barrel | | $ | 10.03 |
| | $ | 6.46 |
| | $ | 9.10 |
| | $ | 6.44 |
|
North Atlantic: | |
| |
| | | | |
Operating income | | $ | 382 |
| | $ | 145 |
| | $ | 752 |
| | $ | 343 |
|
Throughput volumes (thousand barrels per day) | | 473 |
| | 462 |
| | 484 |
| | 466 |
|
Throughput margin per barrel | | $ | 13.02 |
| | $ | 7.78 |
| | $ | 12.73 |
| | $ | 8.63 |
|
Operating costs per barrel: | |
| |
| |
| |
|
Operating expenses | | 2.93 |
| | 3.20 |
| | 2.95 |
| | 3.45 |
|
Depreciation and amortization expense | | 1.21 |
| | 1.13 |
| | 1.19 |
| | 1.11 |
|
Total operating costs per barrel | | 4.14 |
| | 4.33 |
| | 4.14 |
| | 4.56 |
|
Operating income per barrel | | $ | 8.88 |
| | $ | 3.45 |
| | $ | 8.59 |
| | $ | 4.07 |
|
U.S. West Coast: | |
| |
| | | | |
Operating income (loss) | | $ | 295 |
| | $ | 24 |
| | $ | 377 |
| | $ | (7 | ) |
Throughput volumes (thousand barrels per day) | | 288 |
| | 266 |
| | 272 |
| | 257 |
|
Throughput margin per barrel | | $ | 18.63 |
| | $ | 8.66 |
| | $ | 15.69 |
| | $ | 7.98 |
|
Operating costs per barrel: | |
| |
| |
| |
|
Operating expenses | | 5.35 |
| | 5.59 |
| | 5.92 |
| | 5.95 |
|
Depreciation and amortization expense | | 2.05 |
| | 2.08 |
| | 2.11 |
| | 2.18 |
|
Total operating costs per barrel | | 7.40 |
| | 7.67 |
| | 8.03 |
| | 8.13 |
|
Operating income (loss) per barrel | | $ | 11.23 |
| | $ | 0.99 |
| | $ | 7.66 |
| | $ | (0.15 | ) |
See Notes to Earnings Release on Table Page 6.
VALERO ENERGY CORPORATION AND SUBSIDIARIES
EARNINGS RELEASE
(Millions of Dollars, Except per Share, per Barrel, and per Gallon Amounts)
(Unaudited)
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended |
| | June 30, | | June 30, |
| | 2015 | | 2014 | | 2015 | | 2014 |
Average market reference prices and differentials: | | | | | | | | |
Feedstocks (dollars per barrel): | | | | | | | | |
Brent crude oil | | $ | 63.50 |
| | $ | 109.74 |
| | $ | 59.32 |
| | $ | 108.82 |
|
Brent less West Texas Intermediate (WTI) crude oil | | 5.66 |
| | 6.68 |
| | 6.12 |
| | 7.93 |
|
Brent less Alaska North Slope (ANS) crude oil | | 0.60 |
| | 0.51 |
| | 1.02 |
| | 1.28 |
|
Brent less Louisiana Light Sweet (LLS) crude oil | | 1.60 |
| | 3.41 |
| | 2.68 |
| | 3.15 |
|
Brent less Mars crude oil | | 4.95 |
| | 8.22 |
| | 6.19 |
| | 7.32 |
|
Brent less Maya crude oil | | 8.25 |
| | 13.95 |
| | 9.63 |
| | 16.20 |
|
LLS crude oil | | 61.90 |
| | 106.33 |
| | 56.64 |
| | 105.67 |
|
LLS less Mars crude oil | | 3.35 |
| | 4.81 |
| | 3.51 |
| | 4.17 |
|
LLS less Maya crude oil | | 6.65 |
| | 10.54 |
| | 6.95 |
| | 13.05 |
|
WTI crude oil | | 57.84 |
| | 103.06 |
| | 53.20 |
| | 100.89 |
|
| | | | | | | | |
Natural gas (dollars per million British Thermal Units) | | 2.69 |
| | 4.56 |
| | 2.73 |
| | 4.90 |
|
| | | | | | | | |
Products (dollars per barrel, unless otherwise noted): | | | | | | | | |
U.S. Gulf Coast: | | | | | | | | |
CBOB gasoline less Brent | | 12.76 |
| | 7.33 |
| | 10.23 |
| | 4.56 |
|
Ultra-low-sulfur diesel less Brent | | 13.41 |
| | 12.81 |
| | 14.58 |
| | 13.99 |
|
Propylene less Brent | | (11.10 | ) | | (5.00 | ) | | 1.00 |
| | (1.19 | ) |
CBOB gasoline less LLS | | 14.36 |
| | 10.74 |
| | 12.91 |
| | 7.71 |
|
Ultra-low-sulfur diesel less LLS | | 15.01 |
| | 16.22 |
| | 17.26 |
| | 17.14 |
|
Propylene less LLS | | (9.50 | ) | | (1.59 | ) | | 3.68 |
| | 1.96 |
|
U.S. Mid-Continent: | |
| |
| | | | |
CBOB gasoline less WTI | | 19.87 |
| | 16.00 |
| | 17.29 |
| | 14.55 |
|
Ultra-low-sulfur diesel less WTI | | 18.18 |
| | 20.99 |
| | 20.36 |
| | 23.43 |
|
North Atlantic: | |
| |
| | | | |
CBOB gasoline less Brent | | 16.13 |
| | 11.69 |
| | 12.09 |
| | 8.54 |
|
Ultra-low-sulfur diesel less Brent | | 16.17 |
| | 14.19 |
| | 19.11 |
| | 18.40 |
|
U.S. West Coast: | | | | | | | | |
CARBOB 87 gasoline less ANS | | 30.63 |
| | 19.72 |
| | 25.02 |
| | 14.96 |
|
CARB diesel less ANS | | 18.16 |
| | 17.16 |
| | 18.66 |
| | 17.30 |
|
CARBOB 87 gasoline less WTI | | 35.69 |
| | 25.89 |
| | 30.12 |
| | 21.61 |
|
CARB diesel less WTI | | 23.22 |
| | 23.33 |
| | 23.76 |
| | 23.95 |
|
New York Harbor corn crush (dollars per gallon) | | 0.33 |
| | 0.68 |
| | 0.23 |
| | 0.94 |
|
See Notes to Earnings Release on Table Page 6.
VALERO ENERGY CORPORATION AND SUBSIDIARIES
EARNINGS RELEASE
(Millions of Dollars, Except per Share, per Barrel, and per Gallon Amounts)
(Unaudited)
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended |
| | June 30, | | June 30, |
| | 2015 | | 2014 | | 2015 | | 2014 |
Ethanol: | |
| |
| | | | |
Operating income | | $ | 108 |
| | $ | 187 |
| | $ | 120 |
| | $ | 430 |
|
Production (thousand gallons per day) | | 3,793 |
| | 3,276 |
| | 3,785 |
| | 3,186 |
|
Gross margin per gallon of production | | $ | 0.64 |
| | $ | 1.04 |
| | $ | 0.53 |
| | $ | 1.20 |
|
Operating costs per gallon of production: | |
| |
| |
| |
|
Operating expenses | | 0.31 |
| | 0.37 |
| | 0.33 |
| | 0.41 |
|
Depreciation and amortization expense | | 0.02 |
| | 0.04 |
| | 0.03 |
| | 0.04 |
|
Total operating costs per gallon of production | | 0.33 |
| | 0.41 |
| | 0.36 |
| | 0.45 |
|
Operating income per gallon of production | | $ | 0.31 |
| | $ | 0.63 |
| | $ | 0.17 |
| | $ | 0.75 |
|
| | | | | | | | |
| | | | | | June 30, | | December 31, |
| | | | | | 2015 | | 2014 |
Balance Sheet Data: | | | | | | | | |
Current assets | | $ | 18,492 |
| | $ | 16,614 |
|
Cash and temporary cash investments, including $52 and $237, respectively, held by Valero Energy Partners LP, included in current assets | | 5,764 |
| | 3,689 |
|
Inventories included in current assets | | 6,618 |
| | 6,623 |
|
Replacement cost (market value) of LIFO inventories in excess of LIFO carrying amounts | | 2,982 |
| | 857 |
|
Current liabilities | | 9,865 |
| | 9,980 |
|
Current portion of debt and capital lease obligations included in current liabilities | | 150 |
| | 606 |
|
Debt and capital lease obligations, less current portion | | 7,199 |
| | 5,780 |
|
Total debt and capital lease obligations | | 7,349 |
| | 6,386 |
|
Valero Energy Corporation stockholders’ equity | | 21,453 |
| | 20,677 |
|
| | | | | | | | |
| | Three Months Ended | | Six Months Ended |
| | June 30, | | June 30, |
| | 2015 | | 2014 | | 2015 | | 2014 |
Valero Energy Partners LP: | | | | | | | | |
Weighted-average limited partner units outstanding: | | | | | | | |
Common units - public (basic and diluted) | | 17 |
| | 17 |
| | 17 |
| | 17 |
|
Common units - Valero (basic and diluted) | | 13 |
| | 12 |
| | 13 |
| | 12 |
|
Subordinated units - Valero (basic and diluted) | | 29 |
| | 29 |
| | 29 |
| | 29 |
|
Distributions declared: | | | | | | | |
Limited partner units - public | | $ | 5 |
| | $ | 4 |
| | $ | 10 |
| | $ | 8 |
|
Limited partner units - Valero | | 13 |
| | 10 |
| | 24 |
| | 18 |
|
General partner units - Valero | | 1 |
| | — |
| | 2 |
| | — |
|
Total distribution declared | | $ | 19 |
| | $ | 14 |
| | $ | 36 |
| | $ | 26 |
|
See Notes to Earnings Release on Table Page 6.
VALERO ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO EARNINGS RELEASE
| |
(a) | In May 2014, we abandoned our Aruba Refinery, except for the associated crude oil and refined products terminal assets that we continue to operate. As a result, the refinery’s results of operations have been presented as discontinued operations, and the operating highlights for the refining segment and the U.S. Gulf Coast region exclude the Aruba Refinery for the three and six months ended June 30, 2014. |
| |
(b) | Primarily includes petrochemicals, gas oils, No. 6 fuel oil, petroleum coke, sulfur, and asphalt. |
| |
(c) | The 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. |
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