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    Valero Energy Corp (VLO)

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    Valero Energy Corporation is a multinational company engaged in the manufacturing and marketing of petroleum-based and low-carbon liquid transportation fuels and petrochemical products . The company operates through three main segments: Refining, Renewable Diesel, and Ethanol, with a strong emphasis on petroleum-based products while also expanding into low-carbon fuel markets . Valero's product offerings include gasolines, blendstocks, distillates, renewable diesel, renewable naphtha, ethanol, and distillers grains .

    1. Refining Segment - Operates petroleum refineries that produce gasolines, blendstocks, distillates, and other products, serving as the largest contributor to Valero's revenues.
    2. Ethanol Segment - Operates ethanol plants that produce ethanol and distillers grains, contributing significantly to the company's revenue.
    3. Renewable Diesel Segment - Involves the operations of Diamond Green Diesel (DGD), a joint venture, producing renewable diesel and renewable naphtha.
    NamePositionExternal RolesShort Bio

    R. Lane Riggs

    ExecutiveBoard

    CEO and President

    None

    Joined Valero in 2011. Became CEO and President on July 1, 2023. Previously served as COO and EVP. Key achievements include leading renewable diesel expansion projects and improving safety, reliability, and cost management.

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    Gary K. Simmons

    Executive

    EVP and COO

    None

    Joined Valero in 2011. Became COO on July 20, 2023. Previously served as Chief Commercial Officer and held leadership roles in supply chain optimization and feedstock trading.

    Jason W. Fraser

    Executive

    EVP and CFO

    None

    Joined Valero in 2015. Became CFO on July 15, 2020. Previously served as General Counsel and VP of Europe. Key achievements include managing strategic planning, public policy, and investor relations.

    Richard J. Walsh

    Executive

    SVP, General Counsel, and Secretary

    None

    Joined Valero in 1999. Became General Counsel and Secretary on April 22, 2021. Oversees legal, compliance, ESG, and risk management functions.

    Fred M. Diaz

    Board

    Director

    Board member at SiteOne Landscape Supply, Smith & Wesson Brands, and Archer Aviation

    Joined Valero's board in 2021. Former CEO of Mitsubishi Motors North America and held leadership roles at Nissan and Fiat Chrysler. Expertise in governance, ESG, and global business leadership.

    H. Paulett Eberhart

    Board

    Director

    Board Chair and CEO of HMS Ventures; board member at LPL Financial, Fluor Corporation, and KORE Group Holdings

    Joined Valero's board in 2016. Former CEO of CDI Corp. and Invensys Process Systems. Expertise in IT, cybersecurity, finance, and accounting. Chairs Valero's Audit Committee.

    1. Given the increasing regulatory pressures in California and the mention of considering "all options are on the table," can you elaborate on the specific strategic alternatives Valero is evaluating for its West Coast operations, and what factors would trigger a potential exit from the California refining market?

    2. With inflation impacting maintenance costs and challenges in controlling operating expenses, how sustainable is your current cost structure, and what additional measures are you implementing to mitigate these cost pressures, especially if energy costs like natural gas begin to rise?

    3. Considering the expected net refining capacity additions and closures in 2025 and uncertainties around demand recovery, how confident are you in your forecast of tightening balances and improved refining margins, and what contingencies are in place if supply-demand dynamics do not materialize as anticipated?

    4. Despite reports that ethanol margins are "really crumbling on paper," Valero is guiding to record ethanol production volumes; can you explain how you justify increasing production in a low-margin environment, and what risks do you foresee if export markets do not absorb this additional volume as expected?

    5. In light of strong product exports appearing to be more of a push from the U.S. rather than a pull from international markets, and with falling frac spreads, how do you assess the sustainability of export premiums, and what strategies do you have if export markets become less favorable and domestic inventories begin to rise?

    Program DetailsProgram 1Program 2
    Approval DateFebruary 22, 2024 September 19, 2024
    End Date/DurationNo expiration date No expiration date
    Total additional amount$2.5 billion $2.5 billion
    Remaining authorization$2.1 billion $2.5 billion
    DetailsPart of capital allocation strategy New authorization
    YearAmount Due (in millions)Debt TypeInterest Rate% of Total Debt
    2024$1,016 Current Portion of DebtN/A9.4% = (1,016 / 10,806) * 100
    2024$329 IEnova Revolver9.2% 3.0% = (329 / 10,806) * 100
    2025$441 Fixed Rate Debt3.2% 4.1% = (441 / 10,806) * 100
    2026$672 Fixed Rate Debt4.2% 6.2% = (672 / 10,806) * 100
    2027$564 Fixed Rate Debt2.2% 5.2% = (564 / 10,806) * 100
    2028$1,047 Fixed Rate Debt4.4% 9.7% = (1,047 / 10,806) * 100
    Thereafter$5,374 Fixed Rate Debt5.5% 49.7% = (5,374 / 10,806) * 100

    Competitors mentioned in the company's latest 10K filing.

    CompanyDescription

    The company is part of the selected peer group used for performance comparisons in a competitive operating environment characterized by U.S.-based companies with business models predominantly consisting of downstream refining operations, together with similarly sized energy companies that share operating similarities to Valero Energy Corporation.

    The company is part of the selected peer group used for performance comparisons in a competitive operating environment characterized by U.S.-based companies with business models predominantly consisting of downstream refining operations, together with similarly sized energy companies that share operating similarities to Valero Energy Corporation.

    The company is part of the selected peer group used for performance comparisons in a competitive operating environment characterized by U.S.-based companies with business models predominantly consisting of downstream refining operations, together with similarly sized energy companies that share operating similarities to Valero Energy Corporation.

    The company is part of the selected peer group used for performance comparisons in a competitive operating environment characterized by U.S.-based companies with business models predominantly consisting of downstream refining operations, together with similarly sized energy companies that share operating similarities to Valero Energy Corporation.

    The company is part of the selected peer group used for performance comparisons in a competitive operating environment characterized by U.S.-based companies with business models predominantly consisting of downstream refining operations, together with similarly sized energy companies that share operating similarities to Valero Energy Corporation.

    The company was added to the peer group because of its similarities to Valero Energy Corporation in size, complexity, and exposure to commodity pricing volatility for both its products and feedstocks. It helps balance the full portfolio of peers by ensuring accountability of performance both within the core downstream segment of the oil and gas industry, and also in adjacent segments that face similar challenges and opportunities.

    The company is part of the selected peer group used for performance comparisons in a competitive operating environment characterized by U.S.-based companies with business models predominantly consisting of downstream refining operations, together with similarly sized energy companies that share operating similarities to Valero Energy Corporation.

    The company is part of the selected peer group used for performance comparisons in a competitive operating environment characterized by U.S.-based companies with business models predominantly consisting of downstream refining operations, together with similarly sized energy companies that share operating similarities to Valero Energy Corporation.

    The company is part of the selected peer group used for performance comparisons in a competitive operating environment characterized by U.S.-based companies with business models predominantly consisting of downstream refining operations, together with similarly sized energy companies that share operating similarities to Valero Energy Corporation.

    The company is part of the selected peer group used for performance comparisons in a competitive operating environment characterized by U.S.-based companies with business models predominantly consisting of downstream refining operations, together with similarly sized energy companies that share operating similarities to Valero Energy Corporation.

    NameStart DateEnd DateReason for Change
    KPMG LLP2004 PresentCurrent auditor

    Recent press releases and 8-K filings for VLO.

    Valero Energy Corp Announces Q1 2025 Operational Restructuring Measures
    VLO
    • Valero Refining Company-California announced its intent to idle, restructure, or cease operations at the Benicia Refinery by the end of April 2026.
    • The company recorded a combined pre-tax impairment charge of $1.1 billion for the Benicia and Wilmington refineries, which includes $337 million in asset retirement obligations.
    • The 8-K filing, signed by Executive Vice President and CFO Jason W. Fraser on April 16, 2025, incorporates detailed financial statements and exhibits.
    8 days ago
    Valero Advances Capital Projects and Low-Carbon Strategy in Q4 2024 Update
    VLO
    New Projects/Investments
    Dividends
    • Capital Projects & Investments: The presentation highlights key strategic projects, including FCC optimization and low-carbon initiatives such as the SAF upgrade at the DGD Port Arthur plant with a project cost of $315 million, aimed at enhancing margin capabilities and expanding renewable fuel production.
    • Sustainable & Emissions Reduction Initiatives: It details a comprehensive roadmap to reduce GHG emissions through carbon capture, ethanol-to-jet technology exploration, and investments in renewable diesel, supporting Valero’s long-term environmental goals.
    • Disciplined Capital Allocation & Shareholder Returns: The update emphasizes robust capital discipline through sustaining and growth investments with a focus on maintaining strong free cash flow, dividend growth, and share buybacks as part of its overall financial strategy.
    Mar 18, 2025, 12:00 AM