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    Jean Salisbury • Bank of America

    Jean Salisbury's questions to Valero Energy Corp (VLO) leadership

    Jean Salisbury's questions to Valero Energy Corp (VLO) leadership • Q1 2025

    Question

    Jean Salisbury of Bank of America asked about the expected onetime cash impact from the Benicia refinery closure and the potential effect of Chinese tariffs on U.S. LPG on feedstock costs.

    Answer

    Jason Fraser, EVP and CFO, clarified that cash from inventory will be realized quickly, while other costs and potential real estate proceeds are longer-term. Regarding tariffs, an executive named Greg noted minimal disruption so far, while Gary Simmons, EVP and COO, suggested that weaker naphtha prices could emerge from other market factors.

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    Jean Salisbury's questions to Valero Energy Corp (VLO) leadership • Q1 2025

    Question

    Jean Salisbury inquired about the expected onetime overall cash impact from closing the Benicia refinery, including inventory liquidation and closure costs, and asked if Chinese tariffs on U.S. LPG could materially impact feedstock costs.

    Answer

    Jason Fraser, EVP and CFO, explained that the cash from inventory liquidation would be received fairly quickly, but other costs related to cleanup and dismantling would be extended over several years. Regarding LPG, an executive named Greg noted no significant market disruption yet, while Gary Simmons, EVP and COO, added that naphtha could weaken once flows to Venezuela as a diluent cease.

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