Marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 231 words changed in this paragraph; it is 33% similar to last year's version.
The Refining & Marketing segment’s forecasted 2025 2026 capital spending and investments is approximately $1.20 $1.41 billion. This amount includes approximately $100 $710 million of for Refining value enhancing capital projects and $250 million for Marketing investments to strengthen our retail portfolio. Our capital investment outlook for Refining includes continued high-return investments at its Galveston Bay, Robinson, El Paso, and Garyville refineries. In addition to these multi-year low carbon initiatives. At our Los Angeles refinery, investments, we are advancing improvements to enhance the competitiveness of the refinery by improving reliability and lowering costs. The improvements focus on integrating and modernizing utility systems and increasing energy efficiency, with the added benefit of addressing upcoming regulation mandating further reductions in emissions. The improvements are expected to be completed by the end of 2025. There is also $750 million of value enhancing capital, which includes a multi-year project to upgrade high sulfur distillate to ULSD and maximize distillate volume expansion at our Galveston Bay refinery, which is expected to be completed by the end of 2027, a project at our Robinson refinery to shift yields to higher value products including the flexibility to maximize jet production to meet growing demand, which is expected to be completed by the end of 2026, and other traditional executing shorter-term projects that will enhance offer high returns through margin enhancement and cost reduction. Our capital investment outlook for Marketing includes continuing to expand the yields reach and presence of our refineries, improve energy efficiency, and lower our costs as well as investments branded stations in our branded marketing footprint. Maintenance support of strong value capture. Refining maintenance capital is expected to be approximately $350 $450 million, which is essential to maintain the safety, integrity and reliability of our assets.
Source: Item 7, 10-K 0001510295-26-000009 vs Item 7, 10-K 0001510295-25-000012
Risk Factors 174 words changed in this paragraph; it is 36% similar to last year's version.
Developments aimed at reducing vehicle emissions, increasing vehicle efficiency or reducing the sale of new internal combustion engine vehicles may decrease the demand and may increase the cost for our liquid transportation fuels. EPA Government mandates or incentives, industry and NHTSA have promulgated separate rules setting technological developments and consumer sentiment with respect to liquid transportation fuels may alter fuels or energy preferences or make alternative fuel vehicles more stringent requirements for vehicles. NHTSA’s current CAFE standards increase in stringency from model year 2023 levels by eight percent annually for model years 2024-2025 desirable and ten percent annually for model year 2026. EPA’s model year 2023-2026 CO2 emission standards result in average fuel economy greater market penetration of 40 mpg in model year 2026. In addition, such vehicles or otherwise decrease demand for our liquid transportation fuels. For example, the federal government through NHTSA and the EPA finalized new promulgate rules setting even more stringent requirements for model years 2027-2032. NHTSA’s standards would that require an vehicle manufacturers to increase in the fuel efficiency standards of two percent annually. EPA’s liquid transportation fuels vehicles. The EPA has finalized a rule that reduces its current vehicle standards would require a significant increase by eliminating regulation of GHG emissions. The new, reduced standards have been challenged in electric vehicle production to meet the standards. court.
Source: Item 1A, 10-K 0001510295-26-000009 vs Item 1A, 10-K 0001510295-25-000012
Accounting Policies 120 words changed in this paragraph; it is 70% similar to last year's version.
In order to comply with certain regulations, specifically the RFS2 RFS requirements implemented by the EPA and the cap-and-trade emission reduction program and low carbon fuel standard implemented by state programs, we are required to reduce our emissions, blend certain levels of biofuels or obtain allowances or credits to offset the obligations created by our operations. In regard to each program, we record an asset, included in other current assets or other noncurrent assets on the consolidated balance sheets, for allowances or credits owned in excess of our anticipated current period compliance requirements. The asset value is based on the product of the excess allowances or credits as of the balance sheet date, if any, and the weighted average cost of those allowances or credits. We record a liability, included in other current liabilities or deferred credits and other liabilities on the consolidated balance sheets, when we are deficient allowances or credits based on the product of the deficient amount as of the balance sheet date, if any, and either the fixed contract price or the market price of the allowances or credits at the balance sheet date. The cost of allowances or credits used for compliance is reflected in cost of revenues on the consolidated statements of income. Any gains or losses on the sale or expiration of allowances or credits are classified as other income on the consolidated statements of income. Proceeds from the sale of allowances or credits are reported in investing activities - all other, net on the consolidated statements of cash flows.
Source: Item 8, Note 2 – Summary of Principal Accounting Policies, 10-K 0001510295-26-000009 vs Item 8, Note 2 – Summary of Principal Accounting Policies, 10-K 0001510295-25-000012
Legal Proceedings 33 words changed in this paragraph; it is 86% similar to last year's version.
We are the subject of, or a party to, a number of pending or threatened legal actions, contingencies and commitments involving a variety of matters, including laws and regulations relating to the environment. While it is possible that an adverse result in one or more of the lawsuits or proceedings in which we are a defendant could be material to us, based upon current information and our experience as a defendant in other matters, we believe that these lawsuits and proceedings, individually or in the aggregate, will not have a material adverse effect on our consolidated results of operations, financial position or cash flows. See “Climate Change Litigation,” “Tesoro High Plains Pipeline,” and “Dakota Access Pipeline” of Note 27 in Item 8. Financial Statements and Supplementary Data for additional information regarding Legal Proceedings and other regulatory matters.
Source: Item 3, 10-K 0001510295-26-000009 vs Item 3, 10-K 0001510295-25-000012