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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.
    NamePositionStart DateShort Bio
    R. Lane RiggsChief Executive Officer, President, and Chairman of the BoardCEO & President: June 30, 2023 <br> Chairman: December 31, 2024R. Lane Riggs is the CEO and President of Valero Energy Corporation. He has been with Valero for over two decades, holding various leadership positions. He will become Chairman of the Board on December 31, 2024 .
    Jason W. FraserExecutive Vice President and Chief Financial OfficerJuly 15, 2020Jason W. Fraser is the Executive Vice President and CFO at Valero. He has held various leadership roles, including Executive Vice President and General Counsel, and has been with Valero since 2015 .
    Gary K. SimmonsExecutive Vice President and Chief Operating OfficerJuly 20, 2023Gary K. Simmons is the Executive Vice President and COO at Valero. He has held various leadership positions, including Chief Commercial Officer, and has been with Valero for several years .
    Richard J. WalshSenior Vice President, General Counsel, and SecretaryApril 22, 2021Richard J. Walsh oversees Valero's legal and governmental affairs, health, safety, and environmental compliance. He has been with Valero since 1999 and has held various leadership roles within the legal department .
    Joseph W. GorderExecutive ChairmanJuly 1, 2023Joseph W. Gorder has been serving as the Executive Chairman since July 1, 2023, after retiring as CEO. He has been a member of Valero's board since 2014 and will retire on December 31, 2024 .
    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.

    • ConocoPhillips
    • CVR Energy, Inc.
    • Delek US Holdings, Inc.
    • Energy Select Sector SPDR Fund
    • EOG Resources, Inc.
    • HF Sinclair Corporation
    • LyondellBasell Industries N.V.
    • Marathon Petroleum Corporation
    • Occidental Petroleum Corporation
    • PBF Energy Inc.
    • Phillips 66
    NameStart DateEnd DateReason for Change
    KPMG LLP2004 PresentCurrent auditor