Valero Energy Reports First Quarter 2025 Results

4/24/25 6:30:00 AM ET

Integrated oil Companies

Energy

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Reported a net loss attributable to Valero stockholders of $595 million, or $1.90 per share
Reported adjusted net income attributable to Valero stockholders of $282 million, or $0.89 per share
Issued $650 million aggregate principal amount of 5.15% Senior Notes due 2030 in February for debt repayment and general corporate purposes
Repaid the outstanding principal balances of $189 million of 3.65% Senior Notes that matured in March and $251 million of 2.85% Senior Notes that matured in April
Declared a regular quarterly cash dividend on common stock of $1.13 per share on January 16
Returned $633 million to stockholders through dividends and stock buybacks

Valero Energy Corporation (NYSE:VLO, "Valero")) today reported a net loss attributable to Valero stockholders of $595 million, or $1.90 per share, for the first quarter of 2025, compared to net income of $1.2 billion, or $3.75 per share, for the first quarter of 2024. Excluding the pre-tax $1.1 billion, or $877 million after-tax, asset impairment loss related to the West Coast assets, adjusted net income attributable to Valero stockholders was $282 million, or $0.89 per share, for the first quarter of 2025, compared to $1.3 billion, or $3.84 per share, for the first quarter of 2024.

"We delivered positive results for the first quarter despite heavy maintenance activity across our refining system and a challenging margin environment in the Renewable Diesel segment," said Lane Riggs, Valero's Chairman, Chief Executive Officer and President. "This is a credit to the strength and discipline of our operations, optimization, and commercial teams."

Refining

The Refining segment reported an operating loss of $530 million for the first quarter of 2025, compared to operating income of $1.7 billion for the first quarter of 2024. Adjusted operating income was $605 million for the first quarter of 2025, compared to $1.8 billion for the first quarter of 2024. Refining throughput volumes averaged 2.8 million barrels per day in the first quarter of 2025.

Renewable Diesel

The Renewable Diesel segment, which consists of the Diamond Green Diesel joint venture (DGD), reported an operating loss of $141 million for the first quarter of 2025, compared to operating income of $190 million for the first quarter of 2024. Segment sales volumes averaged 2.4 million gallons per day in the first quarter of 2025.

Ethanol

The Ethanol segment reported $20 million of operating income for the first quarter of 2025, compared to $10 million for the first quarter of 2024. Adjusted operating income was $39 million for the first quarter of 2024. Ethanol production volumes averaged 4.5 million gallons per day in the first quarter of 2025.

Corporate and Other

General and administrative expenses were $261 million in the first quarter of 2025, compared to $258 million in the first quarter of 2024. Income tax benefit was $265 million in the first quarter of 2025, compared to income tax expense of $353 million in the first quarter of 2024.

Investing and Financing Activities

Net cash provided by operating activities was $952 million in the first quarter of 2025. Included in this amount was a $157 million favorable change in working capital and $67 million of adjusted net cash used in operating activities associated with the other joint venture member's share of DGD. Excluding these items, adjusted net cash provided by operating activities was $862 million in the first quarter of 2025.

Capital investments totaled $660 million in the first quarter of 2025, of which $582 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 $611 million in the first quarter of 2025.

Valero returned $633 million to stockholders in the first quarter of 2025, of which $356 million was paid as dividends and $277 million was for the purchase of approximately 2.1 million shares of common stock, resulting in a payout ratio of 73 percent of adjusted net cash provided by operating activities.

On January 16, Valero announced a 6 percent increase in its quarterly cash dividend on common stock from $1.07 per share to $1.13 per share.

"We remain focused on the things that we can control: pursuing excellence in operations, deploying capital with an uncompromising focus on returns, and honoring our commitment to stockholder returns," said Riggs. "Our commitment remains underpinned by a strong balance sheet that provides us plenty of operational and financial flexibility."

Liquidity and Financial Position

Valero issued $650 million aggregate principal amount of 5.15% Senior Notes due 2030 in February and repaid the outstanding principal balances of $189 million of its 3.65% Senior Notes that matured in March and $251 million of its 2.85% Senior Notes that matured in April. Valero ended the first quarter of 2025 with $8.5 billion of total debt, $2.3 billion of total finance lease obligations, and $4.6 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 19 percent as of March 31, 2025.

Strategic Update

Valero is progressing with an FCC Unit optimization project at the St. Charles Refinery that will enable the refinery to increase the yield of high value products. The project is estimated to cost $230 million and is expected to be completed in 2026.

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 owns 15 petroleum refineries located in the U.S., Canada and the U.K. with a combined throughput capacity of approximately 3.2 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 our 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:

Homer Bhullar, Vice President – Investor Relations and Finance, 210-345-1982

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

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" 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 statement impacts, future market and industry conditions, future operating and financial performance, future production and manufacturing ability and size, 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 or restrict refining and marketing operations, or that impose taxes or penalties on profits, windfalls, or margins above a certain level, tariffs and their effects on trading relationships, global geopolitical and other conflicts and tensions, the impact of inflation on margins and costs, economic activity levels, 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 stockholders, adjusted earnings per common share – assuming dilution, Refining margin, Renewable Diesel margin, Ethanol margin, adjusted Refining operating income (loss), adjusted Ethanol operating income, 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 (f) to the earnings release tables provides reasons for the use of these non-GAAP financial measures.

VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES FINANCIAL HIGHLIGHTS (millions of dollars, except per share amounts) (unaudited)

	Three Months Ended March 31,
		2025			2024
Statement of income data
Revenues	$	30,258		$	31,759
Cost of sales:
Cost of materials and other		27,548			27,682
Operating expenses (excluding depreciation and amortization expense reflected below)		1,523			1,411
Depreciation and amortization expense		680			683
Total cost of sales		29,751			29,776
Asset impairment loss (a)		1,131			—
Other operating expenses (b)		4			34
General and administrative expenses (excluding depreciation and amortization expense reflected below)		261			258
Depreciation and amortization expense		11			12
Operating income (loss)		(900	)		1,679
Other income, net		120			144
Interest and debt expense, net of capitalized interest		(137	)		(140	)
Income (loss) before income tax expense (benefit)		(917	)		1,683
Income tax expense (benefit)		(265	)		353
Net income (loss)		(652	)		1,330
Less: Net income (loss) attributable to noncontrolling interests		(57	)		85
Net income (loss) attributable to Valero Energy Corporation stockholders	$	(595	)	$	1,245

Earnings (loss) per common share	$	(1.90	)	$	3.75
Weighted-average common shares outstanding (in millions)		314			331

Earnings (loss) per common share – assuming dilution	$	(1.90	)	$	3.75
Weighted-average common shares outstanding – assuming dilution (in millions) (c)		314			331

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES FINANCIAL HIGHLIGHTS BY SEGMENT (millions of dollars) (unaudited)

	Refining			Renewable Diesel			Ethanol		Corporate and Eliminations			Total
Three months ended March 31, 2025
Revenues:
Revenues from external customers	$	28,757		$	493		$	1,008	$	—		$	30,258
Intersegment revenues		2			407			217		(626	)		—
Total revenues		28,759			900			1,225		(626	)		30,258
Cost of sales:
Cost of materials and other		26,269			895			1,032		(648	)		27,548
Operating expenses (excluding depreciation and amortization expense reflected below)		1,291			78			154		—			1,523
Depreciation and amortization expense		594			68			19		(1	)		680
Total cost of sales		28,154			1,041			1,205		(649	)		29,751
Asset impairment loss (a)		1,131			—			—		—			1,131
Other operating expenses		4			—			—		—			4
General and administrative expenses (excluding depreciation and amortization expense reflected below)		—			—			—		261			261
Depreciation and amortization expense		—			—			—		11			11
Operating income (loss) by segment	$	(530	)	$	(141	)	$	20	$	(249	)	$	(900	)

Three months ended March 31, 2024
Revenues:
Revenues from external customers	$	30,143		$	702		$	914	$	—		$	31,759
Intersegment revenues		2			709			190		(901	)		—
Total revenues		30,145			1,411			1,104		(901	)		31,759
Cost of sales:
Cost of materials and other		26,611			1,066			909		(904	)		27,682
Operating expenses (excluding depreciation and amortization expense reflected below)		1,184			90			137		—			1,411
Depreciation and amortization expense		600			65			19		(1	)		683
Total cost of sales		28,395			1,221			1,065		(905	)		29,776
Other operating expenses (b)		5			—			29		—			34
General and administrative expenses (excluding depreciation and amortization expense reflected below)		—			—			—		258			258
Depreciation and amortization expense		—			—			—		12			12
Operating income by segment	$	1,745		$	190		$	10	$	(266	)	$	1,679

See Operating Highlights by Segment.
See Notes to Earnings Release Tables.

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)

	Three Months Ended March 31,
		2025			2024
Reconciliation of net income (loss) attributable to Valero Energy Corporation stockholders to adjusted net income attributable to Valero Energy Corporation stockholders
Net income (loss) attributable to Valero Energy Corporation stockholders	$	(595	)	$	1,245
Adjustments:
Asset impairment loss (a)		1,131			—
Income tax benefit related to asset impairment loss		(254	)		—
Asset impairment loss, net of taxes		877			—
Project liability adjustment (b)		—			29
Income tax benefit related to project liability adjustment		—			(7	)
Project liability adjustment, net of taxes		—			22
Second-generation biofuel tax credit (e)		—			7
Total adjustments		877			29
Adjusted net income attributable to Valero Energy Corporation stockholders	$	282		$	1,274

Reconciliation of earnings (loss) per common share – assuming dilution to adjusted earnings per common share – assuming dilution
Earnings (loss) per common share – assuming dilution (c)	$	(1.90	)	$	3.75
Adjustments:
Asset impairment loss (a)		2.79			—
Project liability adjustment (b)		—			0.07
Second-generation biofuel tax credit (e)		—			0.02
Total adjustments		2.79			0.09
Adjusted earnings per common share – assuming dilution (d)	$	0.89		$	3.84

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS REPORTED UNDER U.S. GAAP (f) (millions of dollars) (unaudited)

	Three Months Ended March 31,
		2025		2024
Reconciliation of operating income (loss) by segment to segment margin, and reconciliation of operating income (loss) by segment to adjusted operating income by segment
Refining segment
Refining operating income (loss)	$	(530	)	$	1,745
Adjustments:
Operating expenses (excluding depreciation and amortization expense reflected below)		1,291			1,184
Depreciation and amortization expense		594			600
Asset impairment loss (a)		1,131			—
Other operating expenses		4			5
Refining margin	$	2,490		$	3,534

Refining operating income (loss)	$	(530	)	$	1,745
Adjustments:
Asset impairment loss (a)		1,131			—
Other operating expenses		4			5
Adjusted Refining operating income	$	605		$	1,750

Renewable Diesel segment
Renewable Diesel operating income (loss)	$	(141	)	$	190
Adjustments:
Operating expenses (excluding depreciation and amortization expense reflected below)		78			90
Depreciation and amortization expense		68			65
Renewable Diesel margin	$	5		$	345

Ethanol segment
Ethanol operating income	$	20		$	10
Adjustments:
Operating expenses (excluding depreciation and amortization expense reflected below)		154			137
Depreciation and amortization expense		19			19
Other operating expenses (b)		—			29
Ethanol margin	$	193		$	195

Ethanol operating income	$	20		$	10
Adjustment: Other operating expenses (b)		—			29
Adjusted Ethanol operating income	$	20		$	39

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS REPORTED UNDER U.S. GAAP (f) (millions of dollars) (unaudited)

	Three Months Ended March 31,
	2025		2024
Reconciliation of Refining segment operating income (loss) to Refining margin (by region), and reconciliation of Refining segment operating income (loss) to adjusted Refining segment operating income (loss) (by region) (g)
U.S. Gulf Coast region
Refining operating income	$	337	$	1,007
Adjustments:
Operating expenses (excluding depreciation and amortization expense reflected below)		720		664
Depreciation and amortization expense		376		373
Other operating expenses		4		3
Refining margin	$	1,437	$	2,047

Refining operating income	$	337	$	1,007
Adjustment: Other operating expenses		4		3
Adjusted Refining operating income	$	341	$	1,010

U.S. Mid-Continent region
Refining operating income	$	50	$	269
Adjustments:
Operating expenses (excluding depreciation and amortization expense reflected below)		195		185
Depreciation and amortization expense		76		87
Other operating expenses		—		2
Refining margin	$	321	$	543

Refining operating income	$	50	$	269
Adjustment: Other operating expenses		—		2
Adjusted Refining operating income	$	50	$	271

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS REPORTED UNDER U.S. GAAP (f) (millions of dollars) (unaudited)

	Three Months Ended March 31,
		2025		2024
Reconciliation of Refining segment operating income (loss) to Refining margin (by region), and reconciliation of Refining segment operating income (loss) to adjusted Refining segment operating income (loss) (by region) (g) (continued)
North Atlantic region
Refining operating income	$	216		$	398
Adjustments:
Operating expenses (excluding depreciation and amortization expense reflected below)		172			179
Depreciation and amortization expense		69			63
Refining margin	$	457		$	640

U.S. West Coast region
Refining operating income (loss)	$	(1,133	)	$	71
Adjustments:
Operating expenses (excluding depreciation and amortization expense reflected below)		204			156
Depreciation and amortization expense		73			77
Asset impairment loss (a)		1,131			—
Refining margin	$	275		$	304

Refining operating income (loss)	$	(1,133	)	$	71
Adjustment: Asset impairment loss (a)		1,131			—
Adjusted Refining operating income (loss)	$	(2	)	$	71

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES REFINING SEGMENT OPERATING HIGHLIGHTS (millions of dollars, except per barrel amounts) (unaudited)

	Three Months Ended March 31,
	2025		2024
Throughput volumes (thousand barrels per day)
Feedstocks:
Heavy sour crude oil		555		347
Medium/light sour crude oil		234		240
Sweet crude oil		1,560		1,507
Residuals		95		151
Other feedstocks		52		124
Total feedstocks		2,496		2,369
Blendstocks and other		332		391
Total throughput volumes		2,828		2,760

Yields (thousand barrels per day)
Gasolines and blendstocks		1,375		1,348
Distillates		1,078		991
Other products (h)		396		440
Total yields		2,849		2,779

Operating statistics (f) (i)
Refining margin	$	2,490	$	3,534
Adjusted Refining operating income	$	605	$	1,750
Throughput volumes (thousand barrels per day)		2,828		2,760

Refining margin per barrel of throughput	$	9.78	$	14.07
Less:
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput		5.07		4.71
Depreciation and amortization expense per barrel of throughput		2.33		2.39
Adjusted Refining operating income per barrel of throughput	$	2.38	$	6.97

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES RENEWABLE DIESEL SEGMENT OPERATING HIGHLIGHTS (millions of dollars, except per gallon amounts) (unaudited)

	Three Months Ended March 31,
		2025		2024
Operating statistics (f) (i)
Renewable Diesel margin	$	5		$	345
Renewable Diesel operating income (loss)	$	(141	)	$	190
Sales volumes (thousand gallons per day)		2,435			3,729

Renewable Diesel margin per gallon of sales	$	0.02		$	1.02
Less:
Operating expenses (excluding depreciation and amortization expense reflected below) per gallon of sales		0.36			0.27
Depreciation and amortization expense per gallon of sales		0.30			0.19
Renewable Diesel operating income (loss) per gallon of sales	$	(0.64	)	$	0.56

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES ETHANOL SEGMENT OPERATING HIGHLIGHTS (millions of dollars, except per gallon amounts) (unaudited)

	Three Months Ended March 31,
	2025		2024
Operating statistics (f) (i)
Ethanol margin	$	193	$	195
Adjusted Ethanol operating income	$	20	$	39
Production volumes (thousand gallons per day)		4,466		4,466

Ethanol margin per gallon of production	$	0.48	$	0.48
Less:
Operating expenses (excluding depreciation and amortization expense reflected below) per gallon of production		0.38		0.34
Depreciation and amortization expense per gallon of production		0.05		0.05
Adjusted Ethanol operating income per gallon of production	$	0.05	$	0.09

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION (millions of dollars, except per barrel amounts) (unaudited)

	Three Months Ended March 31,
	2025		2024
Operating statistics by region (g)
U.S. Gulf Coast region (f) (i)
Refining margin	$	1,437	$	2,047
Adjusted Refining operating income	$	341	$	1,010
Throughput volumes (thousand barrels per day)		1,671		1,594

Refining margin per barrel of throughput	$	9.56	$	14.11
Less:
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput		4.79		4.58
Depreciation and amortization expense per barrel of throughput		2.50		2.57
Adjusted Refining operating income per barrel of throughput	$	2.27	$	6.96

U.S. Mid-Continent region (f) (i)
Refining margin	$	321	$	543
Adjusted Refining operating income	$	50	$	271
Throughput volumes (thousand barrels per day)		453		452

Refining margin per barrel of throughput	$	7.87	$	13.20
Less:
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput		4.77		4.50
Depreciation and amortization expense per barrel of throughput		1.87		2.10
Adjusted Refining operating income per barrel of throughput	$	1.23	$	6.60

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION (millions of dollars, except per barrel amounts) (unaudited)

	Three Months Ended March 31,
		2025		2024
Operating statistics by region (g) (continued)
North Atlantic region (f) (i)
Refining margin	$	457		$	640
Refining operating income	$	216		$	398
Throughput volumes (thousand barrels per day)		492			449

Refining margin per barrel of throughput	$	10.32		$	15.67
Less:
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput		3.89			4.37
Depreciation and amortization expense per barrel of throughput		1.56			1.55
Refining operating income per barrel of throughput	$	4.87		$	9.75

U.S. West Coast region (f) (i)
Refining margin	$	275		$	304
Adjusted Refining operating income (loss)	$	(2	)	$	71
Throughput volumes (thousand barrels per day)		212			265

Refining margin per barrel of throughput	$	14.43		$	12.62
Less:
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput		10.72			6.47
Depreciation and amortization expense per barrel of throughput		3.82			3.19
Adjusted Refining operating income (loss) per barrel of throughput	$	(0.11	)	$	2.96

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS (unaudited)

	Three Months Ended March 31,
		2025			2024
Refining
Feedstocks (dollars per barrel)
Brent crude oil	$	74.89		$	81.83
Brent less West Texas Intermediate (WTI) crude oil		3.43			4.76
Brent less WTI Houston crude oil		2.08			2.93
Brent less Dated Brent crude oil		(0.75	)		(1.38	)
Brent less Argus Sour Crude Index crude oil		2.56			4.96
Brent less Maya crude oil		9.79			12.29
Brent less Western Canadian Select Houston crude oil		7.24			11.58
WTI crude oil		71.46			77.07

Natural gas (dollars per million British thermal units)		3.38			1.79

Renewable volume obligation (RVO) (dollars per barrel) (j)		4.76			3.68

Product margins (RVO adjusted unless otherwise noted) (dollars per barrel)
U.S. Gulf Coast:
Conventional Blendstock for Oxygenate Blending (CBOB) gasoline less Brent		3.58			8.13
Ultra-low-sulfur (ULS) diesel less Brent		16.69			24.61
Propylene less Brent (not RVO adjusted)		(14.53	)		(47.26	)
U.S. Mid-Continent:
CBOB gasoline less WTI		9.26			9.11
ULS diesel less WTI		16.50			22.92
North Atlantic:
CBOB gasoline less Brent		4.90			8.85
ULS diesel less Brent		20.88			28.21
U.S. West Coast:
California Reformulated Gasoline Blendstock for Oxygenate Blending 87 gasoline less Brent		23.14			19.94
California Air Resources Board diesel less Brent		20.37			26.60

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS (unaudited)

	Three Months Ended March 31,
	2025		2024
Renewable Diesel
New York Mercantile Exchange ULS diesel (dollars per gallon)	$	2.38	$	2.71
Biodiesel Renewable Identification Number (RIN) (dollars per RIN)		0.79		0.58
California Low-Carbon Fuel Standard carbon credit (dollars per metric ton)		66.17		63.55
U.S. Gulf Coast (USGC) used cooking oil (dollars per pound)		0.50		0.40
USGC distillers corn oil (dollars per pound)		0.52		0.48
USGC fancy bleachable tallow (dollars per pound)		0.50		0.41

Ethanol
Chicago Board of Trade corn (dollars per bushel)		4.73		4.35
New York Harbor ethanol (dollars per gallon)		1.82		1.64

VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES OTHER FINANCIAL DATA (millions of dollars) (unaudited)

	March 31,		December 31,
	2025		2024
Balance sheet data
Current assets	$	23,590	$	23,737
Cash and cash equivalents included in current assets		4,634		4,657
Inventories included in current assets		7,119		7,761
Current liabilities		15,143		15,495
Valero Energy Corporation stockholders' equity		23,490		24,512
Total equity		26,315		27,521
Debt and finance lease obligations:
Debt –
Current portion of debt (excluding variable interest entities (VIEs))	$	251	$	441
Debt, less current portion of debt (excluding VIEs)		8,231		7,586
Total debt (excluding VIEs)		8,482		8,027
Current portion of debt attributable to VIEs		46		58
Debt, less current portion of debt attributable to VIEs		—		—
Total debt attributable to VIEs		46		58
Total debt		8,528		8,085
Finance lease obligations –
Current portion of finance lease obligations (excluding VIEs)		218		217
Finance lease obligations, less current portion (excluding VIEs)		1,446		1,492
Total finance lease obligations (excluding VIEs)		1,664		1,709
Current portion of finance lease obligations attributable to VIEs		27		27
Finance lease obligations, less current portion attributable to VIEs		635		642
Total finance lease obligations attributable to VIEs		662		669
Total finance lease obligations		2,326		2,378
Total debt and finance lease obligations	$	10,854	$	10,463

	Three Months Ended March 31,
		2025			2024
Reconciliation of net cash provided by operating activities to adjusted net cash provided by operating activities (f)
Net cash provided by operating activities	$	952		$	1,846
Exclude:
Changes in current assets and current liabilities		157			(160	)
Diamond Green Diesel LLC's (DGD) adjusted net cash provided by (used in) operating activities attributable to the other joint venture member's ownership interest in DGD		(67	)		122
Adjusted net cash provided by operating activities	$	862		$	1,884

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES OTHER FINANCIAL DATA (millions of dollars, except per share amounts) (unaudited)

	Three Months Ended March 31,
		2025			2024
Reconciliation of capital investments to capital investments attributable to Valero (f)
Capital expenditures (excluding VIEs)	$	189		$	128
Capital expenditures of VIEs:
DGD		59			69
Other VIEs		1			3
Deferred turnaround and catalyst cost expenditures (excluding VIEs)		374			452
Deferred turnaround and catalyst cost expenditures of DGD		36			9
Investments in nonconsolidated joint ventures		1			—
Capital investments		660			661
Adjustments:
DGD's capital investments attributable to the other joint venture member		(48	)		(39	)
Capital expenditures of other VIEs		(1	)		(3	)
Capital investments attributable to Valero	$	611		$	619

Dividends per common share	$	1.13		$	1.07

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION NOTES TO EARNINGS RELEASE TABLES

(a)		In late March 2025, we approved a plan with respect to the operations at our Benicia Refinery and currently intend to cease refining operations 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 three months ended March 31, 2025.

(b)		In March 2021, we announced our participation in a then-proposed large-scale carbon capture and sequestration pipeline system with Navigator Energy Services (Navigator). In October 2023, Navigator announced that it decided to cancel this project. Under the terms of the agreements associated with the project, we had some rights from and obligations to Navigator, including a portion of the aggregate project costs. As a result, we recognized a charge of $29 million in the three months ended March 31, 2024 related to our obligation to Navigator.

(c)		Common equivalent shares have been excluded from the computation of loss per common share – assuming dilution for the three months ended March 31, 2025, as the effect of including such shares would be antidilutive.

(d)		Common equivalent shares have been included in the computation of adjusted earnings per common share – assuming dilution for the three months ended March 31, 2025, as the effect of including such shares is dilutive. Weighted-average shares outstanding – assuming dilution used to calculate adjusted earnings per common share – assuming dilution is 314 million shares.

(e)		In December 2024, the Internal Revenue Service approved our application for registration as a producer of second-generation biofuels with respect to the cellulosic ethanol produced at our ethanol plants. As a result, we recognized a current income tax benefit of $79 million in December 2024 for the tax credit attributable to volumes of cellulosic ethanol produced and sold by us in the U.S. from 2020 through 2024, of which $7 million is attributable to the three months ended March 31, 2024.

(f)		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 (loss) 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 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.

	–		Asset impairment loss – The asset impairment loss attributable to our Benicia and Wilmington refineries (see note (a)) is not indicative of our ongoing operations or our expectations about the profitability of our refining business.

	–		Project liability adjustment – The project liability adjustment related to the cancellation of Navigator's project (see note (b)) is not indicative of our ongoing operations.

	–		Second-generation biofuel tax credit – The income tax benefit from the second-generation biofuel tax credit recognized by us in December 2024 is attributable to volumes produced and sold from 2020 to 2024 (see note (e)). Therefore, the adjustment reflects the portion of the credit that is attributable to volumes produced and sold during the three months ended March 31, 2024.

		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 (see note (d)).

		Refining margin is defined as Refining segment operating income (loss) excluding operating expenses (excluding depreciation and amortization expense), depreciation and amortization expense, the asset impairment loss (see note (a)), 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), depreciation and amortization expense, and other operating expenses. 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 (loss) is defined as Refining segment operating income (loss) excluding the asset impairment loss (see note (a)) and other operating expenses. We believe adjusted Refining operating income (loss) 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 Ethanol operating income is defined as Ethanol segment operating income excluding other operating expenses. We believe adjusted Ethanol operating income is an important measure of our Ethanol segment's operating and financial performance because it excludes items that are not indicative of that segment's core operating performance.

		Adjusted net cash provided by operating activities is defined as net cash provided by operating activities excluding the items noted below. 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 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 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 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):

	Three Months Ended March 31,
		2025			2024
DGD operating cash flow data
Net cash provided by (used in) operating activities	$	161		$	(6	)
Exclude: Changes in current assets and current liabilities		294			(250	)
Adjusted net cash provided by (used in) operating activities		(133	)		244
Other joint venture member's ownership interest		50	%		50	%
DGD's adjusted net cash provided by (used in) operating activities attributable to the other joint venture member's ownership interest in DGD	$	(67	)	$	122

		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.

(g)		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.

(h)		Primarily includes petrochemicals, gas oils, No. 6 fuel oil, petroleum coke, sulfur, and asphalt.

(i)		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.

(j)		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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250423108527/en/

Media:

Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002

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Date	Price Target	Rating	Analyst
5/13/2025	$154.00	Neutral → Buy	Goldman
4/28/2025	$127.00	Sell → Neutral	Goldman
4/25/2025	$121.00 → $118.00	Buy	TD Cowen
10/25/2024	$145.00 → $140.00	Buy	TD Cowen
10/17/2024	$150.00	Neutral	BofA Securities
10/9/2024	$172.00 → $165.00	Equal Weight → Overweight	Wells Fargo
9/20/2024	$169.00 → $123.00	Overweight → Neutral	Piper Sandler
7/18/2024	$177.00	Outperform	Wolfe Research

Valero Energy Reports First Quarter 2025 Results

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Valero Energy Corporation Declares Regular Cash Dividend on Common Stock