Valero Energy Reports Third Quarter 2026 Results
• Reported net income attributable to Valero stockholders of $6.8 billion, or $23.89 per share
• Reported adjusted net income attributable to Valero stockholders of $6.8 billion, or $23.90 per share
• Repaid the outstanding principal balances of $100 million of 7.65% Debentures that matured in July and $426 million of 3.400% Senior Notes that matured in September
• The St. Charles FCC Unit optimization project was completed during the third quarter, on schedule and within budget
SAN ANTONIO, October 22, 2026 – Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income attributable to Valero stockholders of $6.8 billion, or $23.89 per share, for the third quarter of 2026, compared to $1.1 billion, or $3.53 per share, for the third quarter of 2025. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders for the third quarter of 2026 was $6.8 billion, or $23.90 per share, compared to $1.1 billion, or $3.66 per share, for the third quarter of 2025.
“Our refineries operated at near-record utilization rates, providing a reliable supply of critical transportation fuels during the quarter,” said Lane Riggs, Valero’s Chairman, Chief Executive Officer and President. “We also completed the St. Charles FCC Unit optimization project, which increases the production capacity of higher value products, including alkylate and gasoline, further strengthening our ability to supply transportation fuels to the market.”
The Refining segment reported operating income of $8.8 billion for the third quarter of 2026, compared to $1.6 billion for the third quarter of 2025. Adjusted operating income for the third quarter of 2026 was $8.8 billion, compared to $1.7 billion for the third quarter of 2025. Refining throughput volumes averaged 3.0 million barrels per day in the third quarter of 2026.
The Renewable Diesel segment, which consists of the Diamond Green Diesel joint venture (DGD), reported operating income of $353 million for the third quarter of 2026, compared to an 1 operating loss of $28 million for the third quarter of 2025. Segment sales volumes averaged 3.4 million gallons per day in the third quarter of 2026.
The Ethanol segment reported operating income of $272 million for the third quarter of 2026, compared to $183 million for the third quarter of 2025. Ethanol production volumes averaged 4.8 million gallons per day in the third quarter of 2026, setting a new quarterly record.
General and administrative expenses were $308 million in the third quarter of 2026. The effective tax rate for the third quarter of 2026 was 23 percent.
Net cash provided by operating activities was $6.9 billion in the third quarter of 2026. Included in this amount was a $526 million unfavorable impact from working capital and $205 million of adjusted net cash provided by operating activities associated with the other joint venture member’s share of DGD. Excluding these items, adjusted net cash provided by operating activities was $7.3 billion in the third quarter of 2026.
Capital investments totaled $432 million in the third quarter of 2026, of which $371 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance. Excluding capital investments attributable to the other joint venture member’s share of DGD and other variable interest entities, capital investments attributable to Valero were $429 million in the third quarter of 2026.
Valero stockholder cash returns resulted in a payout ratio of 52 percent of adjusted net cash provided by operating activities.
Valero repaid the outstanding principal balances of $100 million of its 7.65% Debentures that matured in July and $426 million of its 3.400% Senior Notes that matured in September. Valero ended the third quarter of 2026 with $8.6 billion of total debt, $2.4 billion of total finance lease obligations, and $9.8 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 4 percent as of September 30, 2026. 2 “Our third-quarter performance underscores the quality of our assets and our consistent operational, commercial, and financial performance,” said Riggs. “This is a result of the long-term strategy that we’ve been committed to for well over a decade.”
During the third quarter, Valero completed the FCC Unit optimization project at the St. Charles Refinery on schedule and within budget. The project is now operational and is expected to enhance the refinery’s ability to produce higher- value products.
Valero’s senior management will hold a conference call at 10 a.m. ET today to discuss this earnings release and to provide an update on operations and strategy.
Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland, and Latin America. Valero operates 14 petroleum refineries located in the U.S., Canada, and the U.K. with a combined throughput capacity of approximately 3.0 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which produces low-carbon fuels including renewable diesel and sustainable aviation fuel (SAF), with a production capacity of approximately 1.2 billion gallons per year in the U.S. Gulf Coast region. See the annual report on Form 10-K for more information on SAF. Valero also owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.7 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel, and Ethanol segments. Please visit investorvalero.com for more information.
Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002 3
Statements contained in this release and the accompanying earnings release tables, or made during the conference call, that state Valero’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,” “target,” “commitment,” “plans,” “forecast,” “guidance,” “evaluate,” “opportunity” and other similar expressions identify forward-looking statements. Forward-looking statements in this release and the accompanying earnings release tables include, and those made on the conference call may include, statements relating to Valero’s low-carbon fuels strategy, expected timing, cost and performance of projects, our plans, actions, assets and operations in California and expected timing and cost of obligations and other financial, operational, or strategic statement impacts, future market and industry conditions, future operating and financial performance, including future capital expenditures and capital investments attributable to Valero, future production and manufacturing ability and size, expectations regarding our sources and uses of cash, future legal and regulatory developments, including those with respect to tariffs and low-carbon fuels, expectations and ongoing uncertainties related to our Port Arthur Refinery, and management of future risks, among other matters. It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of Valero’s control, such as legislative or political changes or developments, market dynamics, cyberattacks, weather events, and other matters affecting Valero’s operations and financial performance or the demand for Valero’s products. These factors also include, but are not limited to, the uncertainties that remain with respect to current or contemplated legal, political, or regulatory developments that are adverse to tariffs, global geopolitical and other conflicts and tensions, the impact of inflation and crude oil and petroleum product market disruptions on margins and costs, economic activity levels, actions in response to supply and demand imbalances for refined petroleum products, and the adverse effects the foregoing may have on Valero’s business plan, strategy, operations and financial performance. For more information concerning these and other factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual report on Form 10-K, quarterly reports on Form 10‑Q, and other reports filed with the Securities and Exchange Commission and available on Valero’s website at www.valero.com.
This earnings release and the accompanying earnings release tables include references to financial measures that are not defined under U.S. generally accepted accounting principles (GAAP). These non-GAAP measures include adjusted net income attributable to Valero 4 stockholders, adjusted earnings per common share – assuming dilution, Refining margin, Renewable Diesel margin, Ethanol margin, adjusted Refining operating income, adjusted Refining operating expenses (excluding depreciation and amortization), adjusted net cash provided by operating activities, and capital investments attributable to Valero. These non-GAAP financial measures have been included to help facilitate the comparison of operating results between periods. See the accompanying earnings release tables for a definition of non-GAAP measures and a reconciliation to their most directly comparable GAAP measures. Note (h) to the earnings release tables provides reasons for the use of these non-GAAP financial measures. 5
Reconc… of net income attrib… to Valero Energy Corpor… stockh… to adjust… net income attrib… Three Nine to Months Months Valero Ended Ended Energy Septemb… Septemb… Corpor… 30, 30, stockh… 2026 2025 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income attrib… to $ 6,828 $ 1,095 $ 11,811 $ 1,214 Valero Energy Corpor… stockh… Adjust… Last-i… first-… (LIFO) — — -44 — liquid… adjust… (a) Income tax expense related — — 10 — to the LIFO liquid… adjust… LIFO liquid… adjust… — — -34 — net of taxes Employ… retent… and — 50 — 50 separa… costs (c) Income tax benefit related to — -11 — -11 employ… retent… and separa… costs Employ… retent… and separa… — 39 — 39 costs, net of taxes Asset impair… — — — 1,131 loss (d) Income tax benefit related — — — -254 to asset impair… loss Asset impair… loss, — — — 877 net of taxes Port Arthur Refine… 4 — 19 — fire expens… (e) Income tax benefit related to Port -1 — -5 — Arthur Refine… fire expens… Port Arthur Refine… fire 3 — 14 — expens… net of taxes Total 3 39 -20 916 adjust… Adjust… net income attrib… to $ 6,831 $ 1,134 $ 11,791 $ 2,130 Valero Energy Corpor… stockh…
Reconciliation of earnings per common share – assuming dilution to adjusted earnings per common share – assuming dilution ────────────────────────────────────────────────────────────────────────────── Earnings per common share – assuming $ 23.89 $ 3.53 $ 40.29 $ 3.89 dilution Adjustments: LIFO liquidation adjustment — — -0.12 — (a) Employee retention and separation costs — 0.13 — 0.12 (c) Asset impairment loss (d) — — — 2.81 Port Arthur Refinery fire 0.01 — 0.05 — expenses (e) Total adjustments 0.01 0.13 -0.07 2.93 Adjusted earnings per common share – $ 23.90 $ 3.66 $ 40.22 $ 6.82 assuming dilution
Reconci… of Refining segment operati… income (loss) to Refining margin (by region), and reconci… of Refining segment operati… income (loss) to adjusted Refining segment operati… income (by region) Three Nine (i) Months Months (contin… Ended Ended North September Septemb… Atlantic 30, 30, region 2026 2025 2026 2025 ────────────────────────────────────────────────────────────────────────────── Refining operati… $ 1,837 $ 532 $ 2,962 $ 967 income Adjustm… Operati… expenses (exclud… depreci… and 213 199 616 553 amortiz… expense reflect… below) Depreci… and 77 80 241 224 amortiz… expense Refining $ 2,127 $ 811 $ 3,819 $ 1,744 margin U.S. West Coast region (f) Refining operati… $ 305 $ -50 $ 425 $ -1,109 income (loss) Adjustm… LIFO liquida… — — -44 — adjustm… (a) Operati… expenses (exclud… depreci… and 100 239 348 631 amortiz… expense reflect… below) (c) Depreci… and amortiz… 20 173 263 413 expense (g) Asset impairm… — — — 1,131 loss (d) Other operati… — — 5 1 expenses Refining $ 425 $ 362 $ 997 $ 1,067 margin Refining operati… $ 305 $ -50 $ 425 $ -1,109 income (loss) Adjustm… LIFO liquida… — — -44 — adjustm… (a) Employee retenti… and — 50 — 50 separat… costs (c) Asset impairm… — — — 1,131 loss (d) Other operati… — — 5 1 expenses Adjusted Refining $ 305 $ — $ 386 $ 73 operati… income
Balance Septemb… December sheet 30, 31, data 2026 2025 ────────────────────────────────────────────────────────────────────────────── Current $ 33,561 $ 23,210 assets Cash and cash equiva… 9,840 4,688 includ… in current assets Invent… includ… in 7,611 7,591 current assets Current 19,469 14,109 liabil… Valero Energy Corpor… 27,974 23,725 stockh… equity Total 31,084 26,605 equity Debt and finance lease obliga… Debt – Current portion of debt (exclu… $ 727 $ 672 variab… intere… entiti… (VIEs)) Debt, less current portion 7,849 7,566 of debt (exclu… VIEs) Total debt 8,576 8,238 (exclu… VIEs) Current portion of debt 3 23 attrib… to VIEs Total 8,579 8,261 debt Finance lease obliga… – Current portion of finance 233 228 lease obliga… (exclu… VIEs) Finance lease obliga… less 1,567 1,488 current portion (exclu… VIEs) Total finance lease 1,800 1,716 obliga… (exclu… VIEs) Current portion of finance 26 26 lease obliga… attrib… to VIEs Finance lease obliga… less 596 616 current portion attrib… to VIEs Total finance lease 622 642 obliga… attrib… to VIEs Total finance 2,422 2,358 lease obliga… Total debt and $ 11,001 $ 10,619 finance lease obliga…
Reconci… of capital investm… to capital Three Nine investm… Months Months attribu… Ended Ended to September September Valero 30, 30, (h) 2026 2025 2026 2025 ────────────────────────────────────────────────────────────────────────────── Capital expendi… $ 272 $ 171 $ 654 $ 504 (exclud… VIEs) Capital expendi… of VIEs: DGD -3 4 4 67 Other 1 2 3 5 VIEs Deferred turnaro… and catalyst 155 187 529 808 cost expendi… (exclud… VIEs) Deferred turnaro… and catalyst 7 45 40 91 cost expendi… of DGD Investm… in noncons… — — — 1 joint ventures Capital 432 409 1,230 1,476 investm… Adjustm… DGD’s capital investm… attribu… to the -2 -25 -22 -79 other joint venture member Capital expendi… -1 -2 -3 -5 of other VIEs Capital investm… attribu… $ 429 $ 382 $ 1,205 $ 1,392 to Valero Dividen… per $ 1.20 $ 1.13 $ 3.60 $ 3.39 common share
(a) Cost of materials and other for the nine months ended September 30, 2026 includes a benefit of $44 million resulting from the liquidation of certain LIFO inventory layers attributable to our Refining segment. Inventory levels for our West Coast refining operations decreased during 2026 due to the phased idling of processing units and cessation of refining operations at our Benicia Refinery, which was completed by the end of April 2026. Consequently, inventory levels at December 31, 2026 are expected to remain below those at December 31, 2025.
(b) Taxes other than income taxes includes excise taxes on sales by certain of our foreign operations.
(c) Operating expenses (excluding depreciation and amortization expense) for the three and nine months ended September 30, 2025 includes employee retention and separation costs of $50 million related to the Benicia Refinery. In connection with our plan to cease refining operations at the Benicia Refinery, we implemented a transition plan for eligible employees that included retention incentive payments and separation benefits.
(d) In March 2025, we approved a plan to idle the processing units and cease refining operations at our Benicia Refinery by the end of April 2026. In addition, we considered strategic alternatives for our remaining operations in California. As a result, we evaluated the assets of the Benicia and Wilmington refineries for impairment as of March 31, 2025 and concluded that the carrying values of these assets were not recoverable. Therefore, we reduced the carrying values of the Benicia and Wilmington refineries to their estimated fair values and recognized a combined asset impairment loss of $1.1 billion in the nine months ended September 30, 2025.
(e) Other operating expenses for the three and nine months ended September 30, 2026 includes $4 million and $19 million, respectively, of repair costs directly attributable to the March 2026 incident at our Port Arthur Refinery.
(f) During the first quarter of 2026, we began idling the processing units through a phased approach and ceased operation of the fuel production units at our Benicia Refinery. In accordance with our plan, full idling of all processing units was completed in April 2026. Effective in the second quarter of 2026, activities associated with the decommissioning and redevelopment of our Benicia Refinery are reported within Corporate and Other.
(g) Depreciation and amortization expense includes incremental depreciation expense of approximately $133 million in the nine months ended September 30, 2026 and approximately $100 million and $200 million in the three and nine months ended September 30, 2025, respectively, related to the Benicia Refinery. In connection with our phased plan to idle the processing units and cease refining operations at our Benicia Refinery, we shortened the estimated useful life of the refinery, and as a result, the revised carrying value of the refinery’s long-lived assets was depreciated to the estimated salvage value.
(h) We use certain financial measures (as noted below) in the earnings release tables and accompanying earnings release that are not defined under GAAP and are considered to be non-GAAP measures.
We have defined these non-GAAP measures and believe they are useful to the external users of our financial statements, including industry analysts, investors, lenders, and rating agencies. We believe these measures are useful to assess our ongoing financial performance because, when reconciled to their most comparable GAAP measures, they provide improved comparability between periods after adjusting for certain items that we believe are not indicative of our core operating performance and that may obscure our underlying business results and trends. These non-GAAP measures should not be considered as alternatives to their most comparable GAAP measures nor should they be considered in isolation or as a substitute for an analysis of our results of operations as reported under GAAP. In addition, these non-GAAP measures may not be comparable to similarly titled measures used by other companies because we may define them differently, which diminishes their utility.
is defined as net income attributable to Valero Energy Corporation stockholders adjusted to reflect the items noted below, along with their related income tax effect, as applicable. The income tax effect for the adjustments was calculated using a combined U.S. federal and state statutory rate of 22.5 percent. We have adjusted for these items because we believe that they are not indicative of our core operating performance and that their adjustment results in an important measure of Table Page 17
our ongoing financial performance to better assess our underlying business results and trends. The basis for our belief with respect to each adjustment is provided below.
– LIFO liquidation adjustment – Generally, the LIFO inventory valuation method provides for the matching of current costs with current revenues. However, a LIFO liquidation results in a portion of our current-year cost of sales being impacted by historical costs, which obscures our current-year financial performance. Therefore, we have excluded the historical cost impact from adjusted net income attributable to Valero Energy Corporation stockholders. See note (a) for additional details.
– Employee retention and separation costs – The employee retention and separation costs related to the Benicia Refinery (see note (c)) are not indicative of our ongoing operations.
– Asset impairment loss – The asset impairment loss attributable to our Benicia and Wilmington refineries (see note (d)) is not indicative of our ongoing operations or our expectations about the profitability of our refining business.
– Port Arthur Refinery fire expenses – The expenses directly attributable to the March 2026 incident at our Port Arthur Refinery (see note (e)) are specific to that incident and are not indicative of our ongoing operations.
Adjusted earnings per common share – assuming dilution is defined as adjusted net income attributable to Valero Energy Corporation stockholders divided by the number of weighted-average shares outstanding in the applicable period, assuming dilution.
is defined as Refining segment operating income (loss) excluding the LIFO liquidation adjustment (see note (a)), operating expenses (excluding depreciation and amortization expense), depreciation and amortization expense, the asset impairment loss (see note (d)), and other operating expenses. We believe Refining margin is an important measure of our Refining segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance.
is defined as Renewable Diesel segment operating income (loss) excluding operating expenses (excluding depreciation and amortization expense) and depreciation and amortization expense. We believe Renewable Diesel margin is an important measure of our Renewable Diesel segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance.
is defined as Ethanol segment operating income excluding operating expenses (excluding depreciation and amortization expense) and depreciation and amortization expense. We believe Ethanol margin is an important measure of our Ethanol segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance.
is defined as Refining segment operating income (loss) excluding the LIFO liquidation adjustment (see note (a)), employee retention and separation costs (see note (c)), the asset impairment loss (see note (d)), and other operating expenses. We believe adjusted Refining operating income is an important measure of our Refining segment’s operating and financial performance because it excludes items that are not indicative of that segment’s core operating performance. Table Page 18
Adjusted Refining operating expenses (excluding depreciation and amortization expense) is defined as Refining segment operating expenses (excluding depreciation and amortization expense) excluding employee retention and separation costs (see note (c)). We believe adjusted Refining operating expense (excluding depreciation and amortization expense) is an important measure of our Refining segment’s operating and financial performance because it excludes items that are not indicative of that segment’s core operating performance. Adjusted Refining operating expenses (excluding depreciation and amortization expense) for the Refining segment and the U.S. West Coast region is calculated as follows (in millions):
is defined as net cash provided by operating activities excluding the items noted be low. We believe adjusted net cash provided by operating activities is an important measure of our ongoing financial performance to better assess our ability to generate cash to fund our investing and financing activities. The basis for our belief with respect to each excluded item is provided below.
– Changes in current assets and current liabilities – Current assets net of current liabilities represents our operating liquidity. We believe that the change in our operating liquidity from period to period does not represent cash generated by our operations that is available to fund our investing and financing activities.
– DGD’s adjusted net cash provided by (used in) operating activities attributable to the other joint venture member’s ownership interest in DGD – We are a 50 percent joint venture member in DGD and we consolidate DGD’s financial statements. Our Renewable Diesel segment includes the operations of DGD and the associated activities to market its products. Because we consolidate DGD’s financial statements, all of DGD’s net cash provided by (used in) operating activities (or operating cash flow) is included in our consolidated net cash provided by operating activities.
In general, DGD’s members use DGD’s operating cash flow (excluding changes in its current assets and current liabilities) to fund its capital investments rather than distribute all of that cash to themselves. Nevertheless, DGD’s operating cash flow is effectively attributable to each member and only a portion of DGD’s operating cash flow should be attributed to our net cash provided by operating activities. Therefore, we have adjusted our net cash provided by operating activities for the portion of DGD’s operating cash flow attributable to the other joint venture member’s ownership interest because we believe Table Page 19
that it more accurately reflects the operating cash flow available to us to fund our investing and financing activities. The adjustment is calculated as follows (in millions):
is defined as all capital expenditures and deferred turnaround and catalyst cost expenditures presented in our consolidated statements of cash flows, excluding the portion of DGD’s capital investments attributable to the other joint venture member and all of the capital expenditures of VIEs other than DGD.
In general, DGD’s members use DGD’s operating cash flow (excluding changes in its current assets and current liabilities) to fund its capital investments rather than distribute all of that cash to themselves. Because DGD’s operating cash flow is effectively attributable to each member, only 50 percent of DGD’s capital investments should be attributed to our net share of total capital investments. We also exclude the capital expenditures of other VIEs that we consolidate because we do not operate those VIEs. We believe capital investments attributable to Valero is an important measure because it more accurately reflects our capital investments.
(i) The Refining segment regions reflected herein contain the following refineries:
Benicia and Wilmington Refineries. Effective in the second quarter of 2026, activities associated with the decommissioning and redevelopment of our Benicia Refinery are reflected within Corporate and Other.
(j) Primarily includes petrochemicals, gas oils, No. 6 fuel oil, petroleum coke, sulfur, and asphalt.
(k) We use certain operating statistics (as noted below) in the earnings release tables and the accompanying earnings release to evaluate performance between comparable periods. Different companies may calculate them in different ways.
All per barrel of throughput, per gallon of sales, and per gallon of production amounts are calculated by dividing the associated dollar amount by the throughput volumes, sales volumes, and production volumes for the period, as applicable.
Throughput volumes, sales volumes, and production volumes are calculated by multiplying throughput volumes per day, sales volumes per day, and production volumes per day (as provided in the accompanying tables), respectively, by the number of days in the applicable period. We use throughput volumes, sales volumes, and production volumes for the Refining segment, Renewable Diesel segment, and Ethanol segment, respectively, due to their general use by others who operate facilities similar to those included in our segments. We believe the use of such volumes results in per unit amounts that are most representative of the product margins generated and the operating costs incurred as a result of our operation of those facilities. Table Page 20
(l) The RVO cost represents the average market cost on a per barrel basis to comply with the Renewable Fuel Standard program. The RVO cost is calculated by multiplying (i) the average market price during the applicable period for the RINs associated with each class of renewable fuel (i.e., biomass-based diesel, cellulosic biofuel, advanced biofuel, and total renewable fuel) by (ii) the quotas for the volume of each class of renewable fuel that must be blended into petroleum-based transportation fuels consumed in the U.S., as set or proposed by the U.S. Environmental Protection Agency, on a percentage basis for each class of renewable fuel and adding together the results of each calculation. Table Page 21
Full text with the tables
Exhibit 99.01
Valero Energy Reports Third Quarter 2026 Results
• Reported net income attributable to Valero stockholders of $6.8 billion, or
$23.89 per share
• Reported adjusted net income attributable to Valero stockholders of $6.8
billion, or $23.90 per share
• Repaid the outstanding principal balances of $100 million of 7.65% Debentures
that matured in July and $426 million of 3.400% Senior Notes that matured in
September
• The St. Charles FCC Unit optimization project was completed during the third
quarter, on schedule and within budget
SAN ANTONIO, October 22, 2026 – Valero Energy Corporation (NYSE: VLO, “Valero”)
today reported net income attributable to Valero stockholders of $6.8 billion,
or $23.89 per share, for the third quarter of 2026, compared to $1.1 billion, or
$3.53 per share, for the third quarter of 2025. Excluding the adjustments shown
in the accompanying earnings release tables, adjusted net income attributable to
Valero stockholders for the third quarter of 2026 was $6.8 billion, or $23.90
per share, compared to $1.1 billion, or $3.66 per share, for the third quarter
of 2025.
“Our refineries operated at near-record utilization rates, providing a reliable
supply of critical transportation fuels during the quarter,” said Lane Riggs,
Valero’s Chairman, Chief Executive Officer and President. “We also completed the
St. Charles FCC Unit optimization project, which increases the production
capacity of higher value products, including alkylate and gasoline, further
strengthening our ability to supply transportation fuels to the market.”
Refining
The Refining segment reported operating income of $8.8 billion for the third
quarter of 2026, compared to $1.6 billion for the third quarter of 2025.
Adjusted operating income for the third quarter of 2026 was $8.8 billion,
compared to $1.7 billion for the third quarter of 2025. Refining throughput
volumes averaged 3.0 million barrels per day in the third quarter of 2026.
Renewable Diesel
The Renewable Diesel segment, which consists of the Diamond Green Diesel joint
venture (DGD), reported operating income of $353 million for the third quarter
of 2026, compared to an
1
operating loss of $28 million for the third quarter of 2025. Segment sales
volumes averaged 3.4 million gallons per day in the third quarter of 2026.
Ethanol
The Ethanol segment reported operating income of $272 million for the third
quarter of 2026, compared to $183 million for the third quarter of 2025. Ethanol
production volumes averaged 4.8 million gallons per day in the third quarter of
2026, setting a new quarterly record.
Corporate and Other
General and administrative expenses were $308 million in the third quarter of
2026. The effective tax rate for the third quarter of 2026 was 23 percent.
Investing and Financing Activities
Net cash provided by operating activities was $6.9 billion in the third quarter
of 2026. Included in this amount was a $526 million unfavorable impact from
working capital and $205 million of adjusted net cash provided by operating
activities associated with the other joint venture member’s share of DGD.
Excluding these items, adjusted net cash provided by operating activities was
$7.3 billion in the third quarter of 2026.
Capital investments totaled $432 million in the third quarter of 2026, of which
$371 million was for sustaining the business, including costs for turnarounds,
catalysts and regulatory compliance. Excluding capital investments attributable
to the other joint venture member’s share of DGD and other variable interest
entities, capital investments attributable to Valero were $429 million in the
third quarter of 2026.
Valero stockholder cash returns resulted in a payout ratio of 52 percent of
adjusted net cash provided by operating activities.
Liquidity and Financial Position
Valero repaid the outstanding principal balances of $100 million of its 7.65%
Debentures that matured in July and $426 million of its 3.400% Senior Notes that
matured in September. Valero ended the third quarter of 2026 with $8.6 billion
of total debt, $2.4 billion of total finance lease obligations, and $9.8 billion
of cash and cash equivalents. The debt to capitalization ratio, net of cash and
cash equivalents, was 4 percent as of September 30, 2026.
2
“Our third-quarter performance underscores the quality of our assets and our
consistent operational, commercial, and financial performance,” said Riggs.
“This is a result of the long-term strategy that we’ve been committed to for
well over a decade.”
Strategic Update
During the third quarter, Valero completed the FCC Unit optimization project at
the St. Charles Refinery on schedule and within budget. The project is now
operational and is expected to enhance the refinery’s ability to produce higher-
value products.
Conference Call
Valero’s senior management will hold a conference call at 10 a.m. ET today to
discuss this earnings release and to provide an update on operations and
strategy.
About Valero
Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a
multinational manufacturer and marketer of petroleum-based and low-carbon liquid
transportation fuels and petrochemical products, and sells its products
primarily in the United States (U.S.), Canada, the United Kingdom (U.K.),
Ireland, and Latin America. Valero operates 14 petroleum refineries located in
the U.S., Canada, and the U.K. with a combined throughput capacity of
approximately 3.0 million barrels per day. Valero is a joint venture member in
Diamond Green Diesel Holdings LLC, which produces low-carbon fuels including
renewable diesel and sustainable aviation fuel (SAF), with a production capacity
of approximately 1.2 billion gallons per year in the U.S. Gulf Coast region. See
the annual report on Form 10-K for more information on SAF. Valero also owns 12
ethanol plants located in the U.S. Mid-Continent region with a combined
production capacity of approximately 1.7 billion gallons per year. Valero
manages its operations through its Refining, Renewable Diesel, and Ethanol
segments. Please visit investorvalero.com for more information.
Valero Contacts
Investors:
Brian Donovan, Vice President – Investor Relations, 210-345-1682
Eric Herbort, Director – Investor Relations and Finance, 210-345-3331
Gautam Srivastava, Director – Investor Relations, 210-345-3992
Media:
Lillian Riojas, Executive Director – Media Relations and Communications,
210-345-5002
3
Safe-Harbor Statement
Statements contained in this release and the accompanying earnings release
tables, or made during the conference call, that state Valero’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,” “target,” “commitment,” “plans,” “forecast,”
“guidance,” “evaluate,” “opportunity” and other similar expressions identify
forward-looking statements. Forward-looking statements in this release and the
accompanying earnings release tables include, and those made on the conference
call may include, statements relating to Valero’s low-carbon fuels strategy,
expected timing, cost and performance of projects, our plans, actions, assets
and operations in California and expected timing and cost of obligations and
other financial, operational, or strategic statement impacts, future market and
industry conditions, future operating and financial performance, including
future capital expenditures and capital investments attributable to Valero,
future production and manufacturing ability and size, expectations regarding our
sources and uses of cash, future legal and regulatory developments, including
those with respect to tariffs and low-carbon fuels, expectations and ongoing
uncertainties related to our Port Arthur Refinery, and management of future
risks, among other matters. It is important to note that actual results could
differ materially from those projected in such forward-looking statements based
on numerous factors, including those outside of Valero’s control, such as
legislative or political changes or developments, market dynamics, cyberattacks,
weather events, and other matters affecting Valero’s operations and financial
performance or the demand for Valero’s products. These factors also include, but
are not limited to, the uncertainties that remain with respect to current or
contemplated legal, political, or regulatory developments that are adverse to
tariffs, global geopolitical and other conflicts and tensions, the impact of
inflation and crude oil and petroleum product market disruptions on margins and
costs, economic activity levels, actions in response to supply and demand
imbalances for refined petroleum products, and the adverse effects the foregoing
may have on Valero’s business plan, strategy, operations and financial
performance. For more information concerning these and other factors that could
cause actual results to differ from those expressed or forecasted, see Valero’s
annual report on Form 10-K, quarterly reports on Form 10‑Q, and other reports
filed with the Securities and Exchange Commission and available on Valero’s
website at www.valero.com.
Use of Non-GAAP Financial Information
This earnings release and the accompanying earnings release tables include
references to financial measures that are not defined under U.S. generally
accepted accounting principles (GAAP). These non-GAAP measures include adjusted
net income attributable to Valero
4
stockholders, adjusted earnings per common share – assuming dilution, Refining
margin, Renewable Diesel margin, Ethanol margin, adjusted Refining operating
income, adjusted Refining operating expenses (excluding depreciation and
amortization), adjusted net cash provided by operating activities, and capital
investments attributable to Valero. These non-GAAP financial measures have been
included to help facilitate the comparison of operating results between periods.
See the accompanying earnings release tables for a definition of non-GAAP
measures and a reconciliation to their most directly comparable GAAP measures.
Note (h) to the earnings release tables provides reasons for the use of these
non-GAAP financial measures.
5
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
FINANCIAL HIGHLIGHTS
(millions of dollars, except per share amounts)
(unaudited)
Three Nine
Months Months
State… Ended Ended
of Septem… Septem…
income 30, 30,
data 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Reven… $ 46,098 $ 32,168 $ 122,9… $ 92,315
Cost
of
sales:
Cost
of
mater… 32,741 26,132 94,056 76,858
and
other
(a)
Taxes
other
than 1,654 1,826 5,023 4,980
income
taxes
(b)
Opera…
expen…
(excl…
depre…
and 1,627 1,614 4,728 4,659
amort…
expen…
refle…
below)
(c)
Depre…
and 669 824 2,220 2,290
amort…
expen…
Total
cost 36,691 30,396 106,0… 88,787
of
sales
Asset
impai… — — — 1,131
loss
(d)
Other
opera… 11 5 61 13
expen…
(e)
Gener…
and
admin…
expen…
(excl…
depre… 308 246 826 727
and
amort…
expen…
refle…
below)
Depre…
and 15 12 41 51
amort…
expen…
Opera… 9,073 1,509 16,000 1,606
income
Other
incom… 127 86 375 292
net
Inter…
and
debt
expen… -144 -139 -429 -417
net of
capit…
inter…
Income
before
income 9,056 1,456 15,946 1,481
tax
expen…
Income
tax 2,067 390 3,562 404
expen…
Net 6,989 1,066 12,384 1,077
income
Less:
Net
income
(loss) 161 -29 573 -137
attri…
to
nonco…
inter…
Net
income
attri…
to $ 6,828 $ 1,095 $ 11,811 $ 1,214
Valero
Energy
Corpo…
stock…
Earni…
per $ 23.90 $ 3.54 $ 40.30 $ 3.89
common
share
Weigh…
common
shares 285 309 292 311
outst…
(in
milli…
Earni…
per
common
share $ 23.89 $ 3.53 $ 40.29 $ 3.89
–
assum…
dilut…
Weigh…
common
shares
outst…
– 285 309 292 312
assum…
dilut…
(in
milli…
See Notes to Earnings Release Tables beginning on Table Page 17.
Table Page 1
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
FINANCIAL HIGHLIGHTS BY SEGMENT
(millions of dollars)
(unaudited)
Th…
mo…
en… Corp…
Se… and
30, Ren… Other
20… Ref… Die… Etha… (f) Total
──────────────────────────────────────────────────────────────────────────────
Re…
Re…
fr… $ 44,… $ 664 $ 1,0… $ — $ 46,…
ex…
cu…
In… 3 1,7… 352 -2,… —
re…
To… 44,… 2,3… 1,4… -2,… 46,…
re…
Co…
of
sa…
Co…
of
ma… 31,… 1,8… 962 -2,… 32,…
and
ot…
Ta…
ot…
th… 1,6… — — — 1,6…
in…
ta…
(b)
Op…
ex…
(e…
de…
and 1,3… 86 165 — 1,6…
am…
ex…
re…
be…
De…
and 580 71 18 — 669
am…
ex…
To…
co… 35,… 2,0… 1,1… -2,… 36,…
of
sa…
Ot…
op… -8 — — 19 11
ex…
(e)
Ge…
and
ad…
ex…
(e…
de… — — — 308 308
and
am…
ex…
re…
be…
De…
and — — — 15 15
am…
ex…
Op…
in… $ 8,7… $ 353 $ 272 $ -334 $ 9,0…
by
se…
Th…
mo…
en…
Se…
30,
20…
Re…
Re…
fr… $ 30,… $ 719 $ 1,0… $ — $ 32,…
ex…
cu…
In… 1 484 259 -744 —
re…
To… 30,… 1,2… 1,2… -744 32,…
re…
Co…
of
sa…
Co…
of
ma… 24,… 1,0… 942 -745 26,…
and
ot…
Ta…
ot…
th… 1,8… — — — 1,8…
in…
ta…
(b)
Op…
ex…
(e…
de…
and 1,3… 78 148 — 1,6…
am…
ex…
re…
be…
(c)
De…
and 728 76 21 -1 824
am…
ex…
To…
co… 28,… 1,2… 1,1… -746 30,…
of
sa…
Ot…
op… 5 — — — 5
ex…
Ge…
and
ad…
ex…
(e…
de… — — — 246 246
and
am…
ex…
re…
be…
De…
and — — — 12 12
am…
ex…
Op…
in…
(l… $ 1,6… $ -28 $ 183 $ -256 $ 1,5…
by
se…
See Operating Highlights by Segment beginning on Table Page 8.
See Notes to Earnings Release Tables beginning on Table Page 17.
Table Page 2
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
FINANCIAL HIGHLIGHTS BY SEGMENT
(millions of dollars)
(unaudited)
Ni…
mo…
en… Corp…
Se… and
30, Ren… Other
20… Ref… Die… Etha… (f) Total
──────────────────────────────────────────────────────────────────────────────
Re…
Re…
fr… $ 117… $ 2,5… $ 2,9… $ — $ 122…
ex…
cu…
In… 7 3,9… 965 -4,… —
re…
To… 117… 6,4… 3,8… -4,… 122…
re…
Co…
of
sa…
Co…
of
ma… 91,… 4,7… 2,6… -4,… 94,…
and
ot…
(a)
Ta…
ot…
th… 5,0… — — — 5,0…
in…
ta…
(b)
Op…
ex…
(e…
de…
and 3,9… 262 481 — 4,7…
am…
ex…
re…
be…
De…
and 1,9… 220 56 -3 2,2…
am…
ex…
To…
co… 102… 5,2… 3,2… -4,… 106…
of
sa…
Ot…
op… 34 — — 27 61
ex…
(e)
Ge…
and
ad…
ex…
(e…
de… — — — 826 826
and
am…
ex…
re…
be…
De…
and — — — 41 41
am…
ex…
Op…
in… $ 15,… $ 1,2… $ 680 $ -947 $ 16,…
by
se…
Ni…
mo…
en…
Se…
30,
20…
Re…
Re…
fr… $ 87,… $ 1,7… $ 3,0… $ — $ 92,…
ex…
cu…
In… 5 1,4… 681 -2,… —
re…
To… 87,… 3,2… 3,7… -2,… 92,…
re…
Co…
of
sa…
Co…
of
ma… 73,… 3,0… 2,9… -2,… 76,…
and
ot…
Ta…
ot…
th… 4,9… — — — 4,9…
in…
ta…
(b)
Op…
ex…
(e…
de…
and 3,9… 228 446 -1 4,6…
am…
ex…
re…
be…
(c)
De…
and 2,0… 205 59 -3 2,2…
am…
ex…
To…
co… 84,… 3,4… 3,4… -2,… 88,…
of
sa…
As…
im… 1,1… — — — 1,1…
lo…
(d)
Ot…
op… 13 — — — 13
ex…
Ge…
and
ad…
ex…
(e…
de… — — — 727 727
and
am…
ex…
re…
be…
De…
and — — — 51 51
am…
ex…
Op…
in…
(l… $ 2,3… $ -248 $ 257 $ -749 $ 1,6…
by
se…
See Operating Highlights by Segment beginning on Table Page 8.
See Notes to Earnings Release Tables beginning on Table Page 17.
Table Page 3
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP
(h)
(millions of dollars, except per share amounts)
(unaudited)
Reconc…
of net
income
attrib…
to
Valero
Energy
Corpor…
stockh…
to
adjust…
net
income
attrib… Three Nine
to Months Months
Valero Ended Ended
Energy Septemb… Septemb…
Corpor… 30, 30,
stockh… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net
income
attrib…
to $ 6,828 $ 1,095 $ 11,811 $ 1,214
Valero
Energy
Corpor…
stockh…
Adjust…
Last-i…
first-…
(LIFO) — — -44 —
liquid…
adjust…
(a)
Income
tax
expense
related — — 10 —
to the
LIFO
liquid…
adjust…
LIFO
liquid…
adjust… — — -34 —
net of
taxes
Employ…
retent…
and — 50 — 50
separa…
costs
(c)
Income
tax
benefit
related
to — -11 — -11
employ…
retent…
and
separa…
costs
Employ…
retent…
and
separa… — 39 — 39
costs,
net of
taxes
Asset
impair… — — — 1,131
loss
(d)
Income
tax
benefit
related — — — -254
to
asset
impair…
loss
Asset
impair…
loss, — — — 877
net of
taxes
Port
Arthur
Refine… 4 — 19 —
fire
expens…
(e)
Income
tax
benefit
related
to Port -1 — -5 —
Arthur
Refine…
fire
expens…
Port
Arthur
Refine…
fire 3 — 14 —
expens…
net
of
taxes
Total 3 39 -20 916
adjust…
Adjust…
net
income
attrib…
to $ 6,831 $ 1,134 $ 11,791 $ 2,130
Valero
Energy
Corpor…
stockh…
Reconciliation of earnings per
common share –
assuming dilution to adjusted
earnings per common
share – assuming dilution
──────────────────────────────────────────────────────────────────────────────
Earnings per common share –
assuming $ 23.89 $ 3.53 $ 40.29 $ 3.89
dilution
Adjustments:
LIFO liquidation adjustment — — -0.12 —
(a)
Employee retention and
separation costs — 0.13 — 0.12
(c)
Asset impairment loss (d) — — — 2.81
Port Arthur Refinery fire 0.01 — 0.05 —
expenses (e)
Total adjustments 0.01 0.13 -0.07 2.93
Adjusted earnings per common
share – $ 23.90 $ 3.66 $ 40.22 $ 6.82
assuming dilution
See Notes to Earnings Release Tables beginning on Table Page 17.
Table Page 4
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP
(h)
(millions of dollars)
(unaudited)
Reconc…
of
operat…
income
(loss)
by
segment
to
segment
margin,
and
reconc…
of
operat…
income
(loss)
by
segment
to
adjust…
operat… Three Nine
income Months Months
by Ended Ended
segment Septem… Septemb…
Refini… 30, 30,
segment 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Refini…
operat… $ 8,782 $ 1,610 $ 15,058 $ 2,346
income
Adjust…
LIFO
liquid… — — -44 —
adjust…
(a)
Operat…
expens…
(exclu…
deprec…
and 1,376 1,388 3,985 3,986
amorti…
expense
reflec…
below)
(c)
Deprec…
and 580 728 1,947 2,029
amorti…
expense
Asset
impair… — — — 1,131
loss
(d)
Other
operat… -8 5 34 13
expens…
(e)
Refini… $ 10,730 $ 3,731 $ 20,980 $ 9,505
margin
Refini…
operat… $ 8,782 $ 1,610 $ 15,058 $ 2,346
income
Adjust…
LIFO
liquid… — — -44 —
adjust…
(a)
Employ…
retent…
and — 50 — 50
separa…
costs
(c)
Asset
impair… — — — 1,131
loss
(d)
Other
operat… -8 5 34 13
expens…
(e)
Adjust…
Refini… $ 8,774 $ 1,665 $ 15,048 $ 3,540
operat…
income
Renewa…
Diesel
segment
Renewa…
Diesel
operat… $ 353 $ -28 $ 1,209 $ -248
income
(loss)
Adjust…
Operat…
expens…
(exclu…
deprec…
and 86 78 262 228
amorti…
expense
reflec…
below)
Deprec…
and 71 76 220 205
amorti…
expense
Renewa…
Diesel $ 510 $ 126 $ 1,691 $ 185
margin
Ethanol
segment
Ethanol
operat… $ 272 $ 183 $ 680 $ 257
income
Adjust…
Operat…
expens…
(exclu…
deprec…
and 165 148 481 446
amorti…
expense
reflec…
below)
Deprec…
and 18 21 56 59
amorti…
expense
Ethanol $ 455 $ 352 $ 1,217 $ 762
margin
See Notes to Earnings Release Tables beginning on Table Page 17.
Table Page 5
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP
(h)
(millions of dollars)
(unaudited)
Reconc…
of
Refini…
segment
operat…
income
(loss)
to
Refini…
margin
(by
region…
and
reconc…
of
Refini…
segment
operat…
income
(loss)
to
adjust…
Refini…
segment
operat…
income
(by
region) Three Nine
(i) Months Months
U.S. Ended Ended
Gulf Septemb… Septemb…
Coast 30, 30,
region 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Refini…
operat… $ 5,246 $ 940 $ 9,479 $ 2,123
income
Adjust…
Operat…
expens…
(exclu…
deprec…
and 838 740 2,389 2,197
amorti…
expense
reflec…
below)
Deprec…
and 397 391 1,179 1,154
amorti…
expense
Other
operat… -9 2 25 9
expens…
(e)
Refini… $ 6,472 $ 2,073 $ 13,072 $ 5,483
margin
Refini…
operat… $ 5,246 $ 940 $ 9,479 $ 2,123
income
Adjust…
Other
operat… -9 2 25 9
expens…
(e)
Adjust…
Refini… $ 5,237 $ 942 $ 9,504 $ 2,132
operat…
income
U.S.
Mid-Co…
region
Refini…
operat… $ 1,394 $ 188 $ 2,192 $ 365
income
Adjust…
Operat…
expens…
(exclu…
deprec…
and 225 210 632 605
amorti…
expense
reflec…
below)
Deprec…
and 86 84 264 238
amorti…
expense
Other
operat… 1 3 4 3
expens…
Refini… $ 1,706 $ 485 $ 3,092 $ 1,211
margin
Refini…
operat… $ 1,394 $ 188 $ 2,192 $ 365
income
Adjust…
Other 1 3 4 3
operat…
expens…
Adjust…
Refini… $ 1,395 $ 191 $ 2,196 $ 368
operat…
income
See Notes to Earnings Release Tables beginning on Table Page 17.
Table Page 6
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP
(h)
(millions of dollars)
(unaudited)
Reconci…
of
Refining
segment
operati…
income
(loss)
to
Refining
margin
(by
region),
and
reconci…
of
Refining
segment
operati…
income
(loss)
to
adjusted
Refining
segment
operati…
income
(by
region) Three Nine
(i) Months Months
(contin… Ended Ended
North September Septemb…
Atlantic 30, 30,
region 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Refining
operati… $ 1,837 $ 532 $ 2,962 $ 967
income
Adjustm…
Operati…
expenses
(exclud…
depreci…
and 213 199 616 553
amortiz…
expense
reflect…
below)
Depreci…
and 77 80 241 224
amortiz…
expense
Refining $ 2,127 $ 811 $ 3,819 $ 1,744
margin
U.S.
West
Coast
region
(f)
Refining
operati… $ 305 $ -50 $ 425 $ -1,109
income
(loss)
Adjustm…
LIFO
liquida… — — -44 —
adjustm…
(a)
Operati…
expenses
(exclud…
depreci…
and 100 239 348 631
amortiz…
expense
reflect…
below)
(c)
Depreci…
and
amortiz… 20 173 263 413
expense
(g)
Asset
impairm… — — — 1,131
loss (d)
Other
operati… — — 5 1
expenses
Refining $ 425 $ 362 $ 997 $ 1,067
margin
Refining
operati… $ 305 $ -50 $ 425 $ -1,109
income
(loss)
Adjustm…
LIFO
liquida… — — -44 —
adjustm…
(a)
Employee
retenti…
and — 50 — 50
separat…
costs
(c)
Asset
impairm… — — — 1,131
loss (d)
Other
operati… — — 5 1
expenses
Adjusted
Refining $ 305 $ — $ 386 $ 73
operati…
income
See Notes to Earnings Release Tables beginning on Table Page 17.
Table Page 7
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
REFINING SEGMENT OPERATING HIGHLIGHTS
(millions of dollars, except per barrel amounts)
(unaudited)
Throug…
volumes
(thous…
barrels
per
day)
Feedst…
Heavy
sour
crude
oil
Medium…
sour
crude
oil
Sweet
crude
oil
Residu…
Other
feedst…
Total
feedst…
Blends…
and
other
Total
throug…
volumes
Yields
(thous…
barrels
per
day)
Gasoli… 512 506 492 538
and 274 281 274 252
blends… 1,594 1,661 1,572 1,577
Distil… 109 204 137 156
Other 117 89 121 82
produc… 2,606 2,741 2,596 2,605
(j) Three 366 346 Nine 350 342
Total Months 2,972 3,087 Months 2,946 2,947
yields Ended 1,402 1,517 Ended 1,405 1,446
Operat… Septem… 1,162 1,201 Septemb… 1,146 1,130
statis… 30, 430 399 30, 422 396
(h) (k) 2026 2,994 2025 3,117 2026 2,973 2025 2,972
──────────────────────────────────────────────────────────────────────────────
Refini…
margin
(from $ 10,730 $ 3,731 $ 20,980 $ 9,505
Table
Page 5)
Adjust…
Refini…
operat…
income $ 8,774 $ 1,665 $ 15,048 $ 3,540
(from
Table
Page 5)
Throug…
volumes
(thous… 2,972 3,087 2,946 2,947
barrels
per
day)
Refini…
margin
per $ 39.24 $ 13.14 $ 26.09 $ 11.82
barrel
of
throug…
Less:
Adjust…
operat…
expens…
(exclu…
deprec…
and
amorti… 5.03 4.71 4.96 4.89
expense
reflec…
below)
per
barrel
of
throug…
Deprec…
and
amorti…
expense 2.12 2.57 2.42 2.53
per
barrel
of
throug…
Adjust…
Refini…
operat…
income $ 32.09 $ 5.86 $ 18.71 $ 4.40
per
barrel
of
throug…
See Notes to Earnings Release Tables beginning on Table Page 17.
Table Page 8
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RENEWABLE DIESEL SEGMENT OPERATING HIGHLIGHTS
(millions of dollars, except per gallon amounts)
(unaudited)
Three Nine
Months Months
Ended Ended
Operat… September Septemb…
statis… 30, 30,
(h) (k) 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Renewa…
Diesel
margin
(from $ 510 $ 126 $ 1,691 $ 185
Table
Page
5)
Renewa…
Diesel
operat…
income $ 353 $ -28 $ 1,209 $ -248
(loss)
(from
Table
Page 5)
Sales
volumes
(thous… 3,423 2,717 3,429 2,629
gallons
per
day)
Renewa…
Diesel
margin
per $ 1.62 $ 0.50 $ 1.81 $ 0.26
gallon
of
sales
Less:
Operat…
expens…
(exclu…
deprec…
and
amorti…
expense 0.28 0.31 0.28 0.32
reflec…
below)
per
gallon
of
sales
Deprec…
and
amorti…
expense 0.22 0.30 0.24 0.28
per
gallon
of
sales
Renewa…
Diesel
operat…
income
(loss) $ 1.12 $ -0.11 $ 1.29 $ -0.34
per
gallon
of
sales
See Notes to Earnings Release Tables beginning on Table Page 17.
Table Page 9
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
ETHANOL SEGMENT OPERATING HIGHLIGHTS
(millions of dollars, except per gallon amounts)
(unaudited)
Three Nine
Months Months
Ended Ended
Operat… September Septemb…
statis… 30, 30,
(h) (k) 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Ethanol
margin
(from $ 455 $ 352 $ 1,217 $ 762
Table
Page 5)
Ethanol
operat…
income $ 272 $ 183 $ 680 $ 257
(from
Table
Page 5)
Produc…
volumes
(thous… 4,799 4,635 4,695 4,562
gallons
per
day)
Ethanol
margin
per $ 1.03 $ 0.83 $ 0.95 $ 0.62
gallon
of
produc…
Less:
Operat…
expens…
(exclu…
deprec…
and
amorti…
expense 0.37 0.35 0.38 0.36
reflec…
below)
per
gallon
of
produc…
Deprec…
and
amorti…
expense 0.04 0.05 0.04 0.05
per
gallon
of
produc…
Ethanol
operat…
income
per $ 0.62 $ 0.43 $ 0.53 $ 0.21
gallon
of
produc…
See Notes to Earnings Release Tables beginning on Table Page 17.
Table Page 10
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION
(millions of dollars, except per barrel amounts)
(unaudited)
Operat…
statis…
by
region
(i) Three Nine
U.S. Months Months
Gulf Ended Ended
Coast Septemb… Septemb…
region 30, 30,
(h) (k) 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Refini…
margin
(from $ 6,472 $ 2,073 $ 13,072 $ 5,483
Table
Page 6)
Adjust…
Refini…
operat…
income $ 5,237 $ 942 $ 9,504 $ 2,132
(from
Table
Page 6)
Throug…
volumes
(thous… 1,874 1,846 1,819 1,787
barrels
per
day)
Refini…
margin
per $ 37.55 $ 12.21 $ 26.32 $ 11.24
barrel
of
throug…
Less:
Operat…
expens…
(exclu…
deprec…
and
amorti…
expense 4.86 4.36 4.81 4.50
reflec…
below)
per
barrel
of
throug…
Deprec…
and
amorti…
expense 2.31 2.30 2.37 2.37
per
barrel
of
throug…
Adjust…
Refini…
operat…
income $ 30.38 $ 5.55 $ 19.14 $ 4.37
per
barrel
of
throug…
U.S.
Mid-Co…
region
(h) (k)
Refini…
margin
(from $ 1,706 $ 485 $ 3,092 $ 1,211
Table
Page 6)
Adjust…
refini…
operat…
income $ 1,395 $ 191 $ 2,196 $ 368
(from
Table
Page 6)
Throug…
volumes
(thous… 472 466 471 448
barrels
per
day)
Refini…
margin
per $ 39.27 $ 11.31 $ 24.08 $ 9.91
barrel
of
throug…
Less:
Operat…
expens…
(exclu…
deprec…
and
amorti…
expense 5.19 4.90 4.92 4.95
reflec…
below)
per
barrel
of
throug…
Deprec…
and
amorti…
expense 1.99 1.96 2.06 1.94
per
barrel
of
throug…
Adjust…
refini…
operat…
income $ 32.09 $ 4.45 $ 17.10 $ 3.02
per
barrel
of
throug…
See Notes to Earnings Release Tables beginning on Table Page 17.
Table Page 11
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION
(millions of dollars, except per barrel amounts)
(unaudited)
Operat…
statis…
by
region
(i) Three Nine
(conti… Months Months
North Ended Ended
Atlant… September Septemb…
region 30, 30,
(h) (k) 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Refini…
margin
(from $ 2,127 $ 811 $ 3,819 $ 1,744
Table
Page 7)
Refini…
operat…
income $ 1,837 $ 532 $ 2,962 $ 967
(from
Table
Page 7)
Throug…
volumes
(thous… 507 516 506 468
barrels
per
day)
Refini…
margin
per $ 45.58 $ 17.10 $ 27.64 $ 13.65
barrel
of
throug…
Less:
Operat…
expens…
(exclu…
deprec…
and
amorti…
expense 4.58 4.20 4.46 4.33
reflec…
below)
per
barrel
of
throug…
Deprec…
and
amorti…
expense 1.64 1.70 1.75 1.75
per
barrel
of
throug…
Refini…
operat…
income
per $ 39.36 $ 11.20 $ 21.43 $ 7.57
barrel
of
throug…
U.S.
West
Coast
region
(f) (h)
(k)
Refini…
margin
(from $ 425 $ 362 $ 997 $ 1,067
Table
Page 7)
Adjust…
Refini…
operat…
income $ 305 $ — $ 386 $ 73
(from
Table
Page 7)
Throug…
volumes
(thous… 119 259 150 244
barrels
per
day)
Refini…
margin
per $ 38.81 $ 15.22 $ 24.39 $ 16.00
barrel
of
throug…
Less:
Adjust…
operat…
expens…
(exclu…
deprec…
and
amorti… 9.10 7.94 8.50 8.72
expense
reflec…
below)
per
barrel
of
throug…
Deprec…
and
amorti…
expense
per 1.85 7.29 6.44 6.20
barrel
of
throug…
(g)
Adjust…
Refini…
operat…
income
(loss) $ 27.86 $ -0.01 $ 9.45 $ 1.08
per
barrel
of
throug…
See Notes to Earnings Release Tables beginning on Table Page 17.
Table Page 12
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS
(unaudited)
Three Nine
Refini… Months Months
Feedst… Ended Ended
(dolla… Septem… Septemb…
per 30, 30,
barrel) 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Brent
crude $ 91.61 $ 68.14 $ 88.87 $ 69.87
oil
Brent
less
West
Texas 5.37 3.11 5.06 3.08
Interm…
(WTI)
crude
oil
Brent
less
WTI 4.29 2.09 3.44 2.02
Houston
crude
oil
Brent
less
Dated -5.75 -0.91 -5.49 -0.91
Brent
crude
oil
Brent
less
Argus
Sour 6.07 3.46 4.71 2.68
Crude
Index
crude
oil
Brent
less
Maya 13.37 7.14 10.97 8.35
crude
oil
Brent
less
Western
Canadi… 16.49 6.93 14.66 6.81
Select
Houston
crude
oil
WTI
crude 86.24 65.03 83.81 66.79
oil
Natural
gas
(dolla…
per 2.47 2.70 2.68 2.97
million
British
thermal
units)
Renewa…
volume
obliga…
(RVO) 14.34 6.38 12.51 5.76
(dolla…
per
barrel)
(l)
Product
margins
(RVO
adjust…
unless
otherw…
noted)
(dolla…
per
barrel)
U.S.
Gulf
Coast:
Conven…
Blends…
for
Oxygen…
Blendi… 24.08 7.78 14.17 6.78
(CBOB)
gasoli…
less
Brent
Ultra-…
(ULS)
diesel 72.27 21.05 47.80 17.51
less
Brent
Polymer
Grade
Propyl…
less -17.02 -8.22 -13.22 -3.07
Brent
(not
RVO
adjust…
U.S.
Mid-Co…
CBOB
gasoli… 34.16 12.79 17.87 12.32
less
WTI
ULS
diesel 73.54 26.16 46.49 21.09
less
WTI
North
Atlant…
CBOB
gasoli… 33.46 14.58 20.56 10.97
less
Brent
ULS
diesel 77.12 24.64 53.72 21.44
less
Brent
U.S.
West
Coast:
Califo…
Reform…
Gasoli…
Blends…
for
Oxygen… 50.89 26.69 40.62 28.94
Blendi…
87
gasoli…
less
Brent
Califo…
Air
Resour…
Board 81.83 29.83 56.98 23.47
diesel
less
Brent
See Notes to Earnings Release Tables beginning on Table Page 17.
Table Page 13
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS
(unaudited)
Three Nine
Months Months
Ended Ended
September Septemb…
Renewa… 30, 30,
Diesel 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
New
York
Mercan…
Exchan…
ULS $ 4.33 $ 2.35 $ 3.66 $ 2.30
diesel
(dolla…
per
gallon)
Biodie…
Renewa…
Identi…
Number 2.23 1.13 1.93 1.00
(RIN)
(dolla…
per
RIN)
Califo…
Low-Ca…
Fuel
Standa…
carbon 80.60 53.36 71.43 57.30
credit
(dolla…
per
metric
ton)
U.S.
Gulf
Coast
(USGC)
used 0.76 0.62 0.74 0.56
cooking
oil
(dolla…
per
pound)
USGC
distil…
corn
oil 0.77 0.64 0.76 0.58
(dolla…
per
pound)
USGC
fancy
bleach…
tallow 0.75 0.62 0.73 0.56
(dolla…
per
pound)
Ethanol
Chicago
Board
of
Trade 4.78 4.02 4.53 4.42
corn
(dolla…
per
bushel)
New
York
Harbor
ethanol 2.10 1.96 1.97 1.87
(dolla…
per
gallon)
Table Page 14
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
OTHER FINANCIAL DATA
(millions of dollars)
(unaudited)
Balance Septemb… December
sheet 30, 31,
data 2026 2025
──────────────────────────────────────────────────────────────────────────────
Current $ 33,561 $ 23,210
assets
Cash
and
cash
equiva… 9,840 4,688
includ…
in
current
assets
Invent…
includ…
in 7,611 7,591
current
assets
Current 19,469 14,109
liabil…
Valero
Energy
Corpor… 27,974 23,725
stockh…
equity
Total 31,084 26,605
equity
Debt
and
finance
lease
obliga…
Debt –
Current
portion
of debt
(exclu… $ 727 $ 672
variab…
intere…
entiti…
(VIEs))
Debt,
less
current
portion 7,849 7,566
of debt
(exclu…
VIEs)
Total
debt 8,576 8,238
(exclu…
VIEs)
Current
portion
of debt 3 23
attrib…
to
VIEs
Total 8,579 8,261
debt
Finance
lease
obliga…
–
Current
portion
of
finance 233 228
lease
obliga…
(exclu…
VIEs)
Finance
lease
obliga…
less 1,567 1,488
current
portion
(exclu…
VIEs)
Total
finance
lease 1,800 1,716
obliga…
(exclu…
VIEs)
Current
portion
of
finance 26 26
lease
obliga…
attrib…
to VIEs
Finance
lease
obliga…
less 596 616
current
portion
attrib…
to VIEs
Total
finance
lease 622 642
obliga…
attrib…
to VIEs
Total
finance 2,422 2,358
lease
obliga…
Total
debt
and $ 11,001 $ 10,619
finance
lease
obliga…
Recon…
of net
cash
provi…
by
opera…
activ…
to
adjus…
net
cash Three Nine
provi… Months Months
by Ended Ended
opera… Septem… Septemb…
activ… 30, 30,
(h) 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net
cash
provi… $ 6,932 $ 1,881 $ 13,902 $ 3,769
by
opera…
activ…
Exclu…
Chang…
in
curre…
assets -526 325 -123 157
and
curre…
liabi…
Diamo…
Green
Diesel
LLC’s
(DGD)
adjus…
net
cash
provi…
by
(used
in) 205 -86 696 -239
opera…
activ…
attri…
to the
other
joint
ventu…
membe…
owner…
inter…
in DGD
Adjus…
net
cash
provi… $ 7,253 $ 1,642 $ 13,329 $ 3,851
by
opera…
activ…
See Notes to Earnings Release Tables beginning on Table Page 17.
Table Page 15
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
OTHER FINANCIAL DATA
(millions of dollars, except per share amounts)
(unaudited)
Reconci…
of
capital
investm…
to
capital Three Nine
investm… Months Months
attribu… Ended Ended
to September September
Valero 30, 30,
(h) 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Capital
expendi… $ 272 $ 171 $ 654 $ 504
(exclud…
VIEs)
Capital
expendi…
of VIEs:
DGD -3 4 4 67
Other 1 2 3 5
VIEs
Deferred
turnaro…
and
catalyst 155 187 529 808
cost
expendi…
(exclud…
VIEs)
Deferred
turnaro…
and
catalyst 7 45 40 91
cost
expendi…
of DGD
Investm…
in
noncons… — — — 1
joint
ventures
Capital 432 409 1,230 1,476
investm…
Adjustm…
DGD’s
capital
investm…
attribu…
to the -2 -25 -22 -79
other
joint
venture
member
Capital
expendi… -1 -2 -3 -5
of other
VIEs
Capital
investm…
attribu… $ 429 $ 382 $ 1,205 $ 1,392
to
Valero
Dividen…
per $ 1.20 $ 1.13 $ 3.60 $ 3.39
common
share
See Notes to Earnings Release Tables beginning on Table Page 17.
Table Page 16
VALERO ENERGY CORPORATION
NOTES TO EARNINGS RELEASE TABLES
(a) Cost of materials and other for the nine months ended September 30, 2026
includes a benefit of $44 million resulting from the liquidation of certain LIFO
inventory layers attributable to our Refining segment. Inventory levels for our
West Coast refining operations decreased during 2026 due to the phased idling of
processing units and cessation of refining operations at our Benicia Refinery,
which was completed by the end of April 2026. Consequently, inventory levels at
December 31, 2026 are expected to remain below those at December 31, 2025.
(b) Taxes other than income taxes includes excise taxes on sales by certain of
our foreign operations.
(c) Operating expenses (excluding depreciation and amortization expense) for the
three and nine months ended September 30, 2025 includes employee retention and
separation costs of $50 million related to the Benicia Refinery. In connection
with our plan to cease refining operations at the Benicia Refinery, we
implemented a transition plan for eligible employees that included retention
incentive payments and separation benefits.
(d) In March 2025, we approved a plan to idle the processing units and cease
refining operations at our Benicia Refinery by the end of April 2026. In
addition, we considered strategic alternatives for our remaining operations in
California. As a result, we evaluated the assets of the Benicia and Wilmington
refineries for impairment as of March 31, 2025 and concluded that the carrying
values of these assets were not recoverable. Therefore, we reduced the carrying
values of the Benicia and Wilmington refineries to their estimated fair values
and recognized a combined asset impairment loss of $1.1 billion in the nine
months ended September 30, 2025.
(e) Other operating expenses for the three and nine months ended September 30,
2026 includes $4 million and $19 million, respectively, of repair costs directly
attributable to the March 2026 incident at our Port Arthur Refinery.
(f) During the first quarter of 2026, we began idling the processing units
through a phased approach and ceased operation of the fuel production units at
our Benicia Refinery. In accordance with our plan, full idling of all processing
units was completed in April 2026. Effective in the second quarter of 2026,
activities associated with the decommissioning and redevelopment of our Benicia
Refinery are reported within Corporate and Other.
(g) Depreciation and amortization expense includes incremental depreciation
expense of approximately $133 million in the nine months ended September 30,
2026 and approximately $100 million and $200 million in the three and nine
months ended September 30, 2025, respectively, related to the Benicia Refinery.
In connection with our phased plan to idle the processing units and cease
refining operations at our Benicia Refinery, we shortened the estimated useful
life of the refinery, and as a result, the revised carrying value of the
refinery’s long-lived assets was depreciated to the estimated salvage value.
(h) We use certain financial measures (as noted below) in the earnings release
tables and accompanying earnings release that are not defined under GAAP and are
considered to be non-GAAP measures.
We have defined these non-GAAP measures and believe they are useful to the
external users of our financial statements, including industry analysts,
investors, lenders, and rating agencies. We believe these measures are useful to
assess our ongoing financial performance because, when reconciled to their most
comparable GAAP measures, they provide improved comparability between periods
after adjusting for certain items that we believe are not indicative of our core
operating performance and that may obscure our underlying business results and
trends. These non-GAAP measures should not be considered as alternatives to
their most comparable GAAP measures nor should they be considered in isolation
or as a substitute for an analysis of our results of operations as reported
under GAAP. In addition, these non-GAAP measures may not be comparable to
similarly titled measures used by other companies because we may define them
differently, which diminishes their utility.
Non-GAAP measures are as follows:
◦
Adjusted net income attributable to Valero
Energy Corporation stockholders
is defined as net income attributable to Valero Energy Corporation stockholders
adjusted to reflect the items noted below, along with their related income tax
effect, as applicable. The income tax effect for the adjustments was calculated
using a combined U.S. federal and state statutory rate of 22.5 percent. We have
adjusted for these items because we believe that they are not indicative of our
core operating performance and that their adjustment results in an important
measure of
Table Page 17
VALERO ENERGY CORPORATION
NOTES TO EARNINGS RELEASE TABLES (continued)
our ongoing financial performance to better assess our underlying business
results and trends. The basis for our belief with respect to each adjustment is
provided below.
– LIFO liquidation adjustment – Generally, the LIFO inventory valuation method
provides for the matching of current costs with current revenues. However, a
LIFO liquidation results in a portion of our current-year cost of sales being
impacted by historical costs, which obscures our current-year financial
performance. Therefore, we have excluded the historical cost impact from
adjusted net income attributable to Valero Energy Corporation stockholders. See
note (a) for additional details.
– Employee retention and separation costs – The employee retention and
separation costs related to the Benicia Refinery (see note (c)) are not
indicative of our ongoing operations.
– Asset impairment loss – The asset impairment loss attributable to our Benicia
and Wilmington refineries (see note (d)) is not indicative of our ongoing
operations or our expectations about the profitability of our refining business.
– Port Arthur Refinery fire expenses – The expenses directly attributable to the
March 2026 incident at our Port Arthur Refinery (see note (e)) are specific to
that incident and are not indicative of our ongoing operations.
◦
Adjusted earnings per common share – assuming dilution is defined as adjusted
net income attributable to Valero Energy Corporation stockholders divided by the
number of weighted-average shares outstanding in the applicable period, assuming
dilution.
◦
Refining margin
is defined as Refining segment operating income (loss) excluding the LIFO
liquidation adjustment (see note (a)), operating expenses (excluding
depreciation and amortization expense), depreciation and amortization expense,
the asset impairment loss (see note (d)), and other operating expenses. We
believe Refining margin is an important measure of our Refining segment’s
operating and financial performance as it is the most comparable measure to the
industry’s market reference product margins, which are used by industry
analysts, investors, and others to evaluate our performance.
◦
Renewable Diesel margin
is defined as Renewable Diesel segment operating income (loss) excluding
operating expenses (excluding depreciation and amortization expense) and
depreciation and amortization expense. We believe Renewable Diesel margin is an
important measure of our Renewable Diesel segment’s operating and financial
performance as it is the most comparable measure to the industry’s market
reference product margins, which are used by industry analysts, investors, and
others to evaluate our performance.
◦
Ethanol margin
is defined as Ethanol segment operating income excluding operating expenses
(excluding depreciation and amortization expense) and depreciation and
amortization expense. We believe Ethanol margin is an important measure of our
Ethanol segment’s operating and financial performance as it is the most
comparable measure to the industry’s market reference product margins, which are
used by industry analysts, investors, and others to evaluate our performance.
◦
Adjusted Refining operating income
is defined as Refining segment operating income (loss) excluding the LIFO
liquidation adjustment (see note (a)), employee retention and separation costs
(see note (c)), the asset impairment loss (see note (d)), and other operating
expenses. We believe adjusted Refining operating income is an important measure
of our Refining segment’s operating and financial performance because it
excludes items that are not indicative of that segment’s core operating
performance.
Table Page 18
VALERO ENERGY CORPORATION
NOTES TO EARNINGS RELEASE TABLES (continued)
◦
Adjusted Refining operating expenses (excluding depreciation and amortization
expense) is defined as Refining segment operating expenses (excluding
depreciation and amortization expense) excluding employee retention and
separation costs (see note (c)). We believe adjusted Refining operating expense
(excluding depreciation and amortization expense) is an important measure of our
Refining segment’s operating and financial performance because it excludes items
that are not indicative of that segment’s core operating performance. Adjusted
Refining operating expenses (excluding depreciation and amortization expense)
for the Refining segment and the U.S. West Coast region is calculated as follows
(in millions):
Three Nine
Months Months
Ended Ended
September Septemb…
Refini… 30, 30,
segment 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Operat…
expens…
(exclu…
deprec… $ 1,376 $ 1,388 $ 3,985 $ 3,986
and
amorti…
expens…
Adjust…
Employ…
retent… — -50 — -50
and
separa…
costs
Adjust…
operat…
expens…
(exclu… $ 1,376 $ 1,338 $ 3,985 $ 3,936
deprec…
and
amorti…
expens…
U.S.
West
Coast
region
Operat…
expens…
(exclu…
deprec… $ 100 $ 239 $ 348 $ 631
and
amorti…
expens…
Adjust…
Employ…
retent… — -50 — -50
and
separa…
costs
Adjust…
operat…
expens…
(exclu… $ 100 $ 189 $ 348 $ 581
deprec…
and
amorti…
expens…
◦
Adjusted net cash
provided by
operating activities
is defined as net cash provided by operating activities excluding the items
noted be low. We believe adjusted net cash provided by operating activities is
an important measure of our ongoing financial performance to better assess our
ability to generate cash to fund our investing and financing activities. The
basis for our belief with respect to each excluded item is provided below.
– Changes in current assets and current liabilities – Current assets net of
current liabilities represents our operating liquidity. We believe that the
change in our operating liquidity from period to period does not represent cash
generated by our operations that is available to fund our investing and
financing activities.
– DGD’s adjusted net cash provided by (used in) operating activities
attributable to the other joint venture member’s ownership interest in DGD – We
are a 50 percent joint venture member in DGD and we consolidate DGD’s financial
statements. Our Renewable Diesel segment includes the operations of DGD and the
associated activities to market its products. Because we consolidate DGD’s
financial statements, all of DGD’s net cash provided by (used in) operating
activities (or operating cash flow) is included in our consolidated net cash
provided by operating activities.
In general, DGD’s members use DGD’s operating cash flow (excluding changes in
its current assets and current liabilities) to fund its capital investments
rather than distribute all of that cash to themselves. Nevertheless, DGD’s
operating cash flow is effectively attributable to each member and only a
portion of DGD’s operating cash flow should be attributed to our net cash
provided by operating activities. Therefore, we have adjusted our net cash
provided by operating activities for the portion of DGD’s operating cash flow
attributable to the other joint venture member’s ownership interest because we
believe
Table Page 19
VALERO ENERGY CORPORATION
NOTES TO EARNINGS RELEASE TABLES (continued)
that it more accurately reflects the operating cash flow available to us to fund
our investing and financing activities. The adjustment is calculated as follows
(in millions):
Thr… Nine
DGD Mon… Mon…
op… End… End…
ca… Sep… Sep…
fl… 30, 30,
da… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net
ca…
pr…
by $ 312 $ -263 $ 551 $ -3…
(u…
in)
op…
ac…
Ex…
Ch…
in
cu… -99 -90 -8… 115
as…
and
cu…
li…
Ad…
net
ca…
pr…
by 411 -173 1,… -4…
(u…
in)
op…
ac…
Ot…
jo…
ve… 50% 50% 50% 50%
me…
ow…
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◦
Capital investments attributable to Valero
is defined as all capital expenditures and deferred turnaround and catalyst cost
expenditures presented in our consolidated statements of cash flows, excluding
the portion of DGD’s capital investments attributable to the other joint venture
member and all of the capital expenditures of VIEs other than DGD.
In general, DGD’s members use DGD’s operating cash flow (excluding changes in
its current assets and current liabilities) to fund its capital investments
rather than distribute all of that cash to themselves. Because DGD’s operating
cash flow is effectively attributable to each member, only 50 percent of DGD’s
capital investments should be attributed to our net share of total capital
investments. We also exclude the capital expenditures of other VIEs that we
consolidate because we do not operate those VIEs. We believe capital investments
attributable to Valero is an important measure because it more accurately
reflects our capital investments.
(i) The Refining segment 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. Effective in the second quarter of 2026,
activities associated with the decommissioning and redevelopment of our Benicia
Refinery are reflected within Corporate and Other.
(j) Primarily includes petrochemicals, gas oils, No. 6 fuel oil, petroleum coke,
sulfur, and asphalt.
(k) We use certain operating statistics (as noted below) in the earnings release
tables and the accompanying earnings release to evaluate performance between
comparable periods. Different companies may calculate them in different ways.
All per barrel of throughput, per gallon of sales, and per gallon of production
amounts are calculated by dividing the associated dollar amount by the
throughput volumes, sales volumes, and production volumes for the period, as
applicable.
Throughput volumes, sales volumes, and production volumes are calculated by
multiplying throughput volumes per day, sales volumes per day, and production
volumes per day (as provided in the accompanying tables), respectively, by the
number of days in the applicable period. We use throughput volumes, sales
volumes, and production volumes for the Refining segment, Renewable Diesel
segment, and Ethanol segment, respectively, due to their general use by others
who operate facilities similar to those included in our segments. We believe the
use of such volumes results in per unit amounts that are most representative of
the product margins generated and the operating costs incurred as a result of
our operation of those facilities.
Table Page 20
VALERO ENERGY CORPORATION
NOTES TO EARNINGS RELEASE TABLES (continued)
(l) The RVO cost represents the average market cost on a per barrel basis to
comply with the Renewable Fuel Standard program. The RVO cost is calculated by
multiplying (i) the average market price during the applicable period for the
RINs associated with each class of renewable fuel (i.e., biomass-based diesel,
cellulosic biofuel, advanced biofuel, and total renewable fuel) by (ii) the
quotas for the volume of each class of renewable fuel that must be blended into
petroleum-based transportation fuels consumed in the U.S., as set or proposed by
the U.S. Environmental Protection Agency, on a percentage basis for each class
of renewable fuel and adding together the results of each calculation.
Table Page 21