Investors are increasingly tuning into market experts for guidance amid a volatile economic landscape. Strategic picks from seasoned analysts can offer valuable insights into potential opportunities and risks.On CNBC's “Halftime Report Final Trades,” Jim Lebenthal, partner at Cerity Partners, named CRH plc CRH as his final trade.As per the recent news, CRH, on Sept. 9, elected Patrick Decker to its board of directors.Jason Snipe, founder and chief investment officer of Odyssey Capital Advisors, said he like ...

与此同时，共和党参议员迈克·李(Mike Lee)于周二提出一项法案，旨在阻止美国环境保护署(EPA)强制 大型炼油厂填补这一义务缺口。 此类举措将削弱市场对农作物基与废弃物基生物燃料的短期需求——这一变化无疑会冷却投资者对生物 燃料生产商的热情，而此前在今年6月，EPA刚提出大幅提高2026年和2027年生物燃料产量配额的方 案。目前，围绕特朗普拟议的生物燃料政策，农业游说团体与石油游说团体已就此展开激烈争论，成为 双方博弈的核心焦点。 周三，农作物加工企业邦吉集团(Bunge Global SA)与阿彻丹尼尔斯米德兰公司(Archer-Daniels-Midland Co.)的股价出现自4月以来的最大单日跌幅;乙醇供应商瓦莱罗能源公司(Valero Energy Corp.)与绿原公司 (Green Plains Inc.)的股价跌幅最高达5%左右。此外，生物燃料领域的关键价格指标——可再生能源识别 码(RINs)的交易价格也跌至6月以来的最低水平。 智通财经APP获悉，由于市场担忧特朗普政府的相关政策或无法完全抵消"炼油厂可再生燃料混合义务 豁免"带来的影响，美国生物燃料企业股价近日大幅下挫。 据外媒援 ...

California legislators are considering paying hundreds of millions of dollars to Valero Energy (NYSE:VLO), Bloomberg reported Tuesday, in an attempt to prevent the closure and maintain operations of its Benicia refinery near San Francisco, which the company plans to close by ...

SAN ANTONIO--(BUSINESS WIRE)--Valero Energy Corporation (NYSE: VLO) announced today that it will host a conference call on Thursday, October 23, 2025 at 10:00 a.m. ET to discuss its financial and operational results for the third quarter of 2025. The earnings release will be issued earlier that morning. A live webcast of the conference call will be accessible on Valero's Investor Relations website at investorvalero.com. About Valero Valero Energy Corporation, through its subsidiaries (collectiv. ...

Group 1 - Valero Energy's shares have remained flat over the past year, missing out on a market rally due to challenges in the refining sector during the fall and winter [1] - Since April, Valero Energy's shares have rebounded sharply as refining margins have returned towards normal levels [1] Group 2 - The article emphasizes the importance of macro views and stock-specific turnaround stories for achieving outsized returns with a favorable risk/reward profile [1]

Refiners Investment Strategy - The company is increasing exposure to refiners due to a seasonally strong period and the outperformance of reformulated gasoline and heating oil relative to crude oil [1][2] - Investment is spread across three refiner names: Phillips (PSX), Marathon Petroleum (MPC), and Valero (VLOO) to avoid isolating risk to a single company [3] Market Performance - Crude oil is down 5% year-to-date, while reformulated gasoline and heating oil prices are higher [2] - Baker Hughes' target price was raised by Morgan Stanley by $10, from $45 to $55 [3] - Baker Hughes is up 11% year-to-date [3] Baker Hughes' Strategy - Baker Hughes made an acquisition with Chart Industries to increase exposure to data centers and LNG [4] - Baker Hughes is diversifying away from oil and moving towards electricity [4]

Market Overview - The market capitalization of major US stocks shows varied performance, with Oracle at 762.30 billion, Mastercard at 321.36 billion, and Visa at 770.15 billion, reflecting increases of +0.66%, +0.86%, and +0.68% respectively [3] - Exxon Mobil's market cap is 679.53 billion, with a slight decrease of -0.98%, while Johnson & Johnson and Netflix show minor changes of -0.08% and -0.05% respectively [3] - Companies like Wells Fargo and Cisco have market caps of 270.15 billion and 279.59 billion, with respective increases of +0.98% and -0.58% [3] Notable Stock Movements - T-Mobile US Inc experienced a significant increase of +6.20%, reaching a market cap of 272.19 billion [3] - General Electric and Coca-Cola saw market caps of 285.05 billion and 298.76 billion, with increases of +0.37% and +0.91% respectively [3] - Companies like Disney and Goldman Sachs have market caps of 229.06 billion and 221.80 billion, with slight changes of +0.01% and -0.60% [3] Sector Performance - The technology sector shows mixed results, with Intel at 991.05 billion, down -3.28%, while AMD increased by +2.46% to 254.92 billion [5] - The consumer goods sector is represented by companies like Procter & Gamble and Coca-Cola, with market caps of 371.68 billion and 298.76 billion, showing slight increases [3][4] - The energy sector, represented by Exxon Mobil and Chevron, shows varied performance, with Exxon down -0.98% and Chevron up +0.66% [3] Summary of Key Companies - Oracle's market cap stands at 762.30 billion, reflecting a positive trend [3] - Mastercard and Visa show strong performance with market caps of 321.36 billion and 770.15 billion, both increasing [3] - Companies like Pfizer and Comcast have market caps of 1579.81 billion and 1332.00 billion, with Pfizer showing minimal change and Comcast down -3.16% [4][5]

Core Insights - Valero Energy Corporation (VLO) reported second-quarter 2025 adjusted earnings of $2.28 per share, exceeding the Zacks Consensus Estimate of $1.73, but down from $2.71 in the same quarter last year [1][9] - Total revenues for the quarter decreased to $29,889 million from $34,490 million year-over-year, although it surpassed the Zacks Consensus Estimate of $27,838 million [1][2] Financial Performance - The increase in refining margins per barrel and lower total cost of sales contributed to better-than-expected results, despite a decline in refining throughput and renewable diesel sales volumes [2] - Adjusted operating income in the Refining segment rose to $1,270 million from $1,229 million year-over-year, driven by higher refining margins [3] - The Ethanol segment reported an adjusted operating profit of $54 million, down from $103 million, impacted by decreased ethanol margins [3] - The Renewable Diesel segment experienced an operating loss of $79 million, compared to an operating income of $112 million in the prior year, due to a decline in sales volumes and margins [4] Throughput Volumes - Valero's refining throughput volumes totaled 2,922 thousand barrels per day, down from 3,010 thousand barrels per day year-over-year, but exceeded the estimate of 2,908.5 thousand barrels per day [5] - The Gulf Coast region contributed 63% to total throughput, with the Mid-Continent, North Atlantic, and West Coast regions accounting for 14.5%, 13.5%, and 9% respectively [6] Margins and Costs - Refining margin per barrel increased to $12.35 from $11.14 year-over-year, while refining operating expenses per barrel rose to $4.91 from $4.45 [7] - Total cost of sales decreased to $28,640 million from $33,051 million year-over-year, primarily due to lower material costs [8] Capital Investment and Balance Sheet - Capital investment for the second quarter totaled $407 million, with $371 million allocated for sustaining the business [10] - At the end of the second quarter, Valero had cash and cash equivalents of $4.5 billion, total debt of $8.4 billion, and finance-lease obligations of $2.3 billion [10]

PART I – FINANCIAL INFORMATION This section provides Valero Energy Corporation's unaudited consolidated financial information, including financial statements, management's discussion, and market risk disclosures [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents Valero Energy Corporation's unaudited consolidated financial statements and condensed notes, highlighting a decline in net income and EPS for the period ended June 30, 2025, primarily due to an asset impairment loss [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20and%20December%2031%2C%202024) The consolidated balance sheets show a slight decrease in total assets and total equity for Valero Energy Corporation as of June 30, 2025, compared to December 31, 2024, while total liabilities also decreased Consolidated Balance Sheet Highlights (Millions of Dollars) | Metric | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :---------------- | | Total current assets | $23,804 | $23,737 | | Property, plant, and equipment, net | $28,236 | $29,314 | | Total assets | $59,433 | $60,143 | | Total current liabilities | $14,677 | $15,495 | | Total equity | $26,947 | $27,521 | | Total liabilities and equity | $59,433 | $60,143 | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Valero experienced a significant decline in net income and earnings per common share for both the three and six months ended June 30, 2025, compared to the same periods in 2024, largely impacted by an asset impairment loss in the six-month period Consolidated Statements of Income Highlights (Millions of Dollars, except per share) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $29,889 | $34,490 | $60,147 | $66,249 | | Total cost of sales | $28,640 | $33,051 | $58,391 | $62,827 | | Asset impairment loss | — | — | $1,131 | — | | Operating income | $997 | $1,221 | $97 | $2,900 | | Net income attributable to Valero Energy Corporation stockholders | $714 | $880 | $119 | $2,125 | | Earnings per common share | $2.28 | $2.71 | $0.37 | $6.47 | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Comprehensive income for Valero Energy Corporation stockholders increased for the three months ended June 30, 2025, but decreased significantly for the six months ended June 30, 2025, compared to the prior year, primarily influenced by foreign currency translation adjustments Consolidated Statements of Comprehensive Income Highlights (Millions of Dollars) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $663 | $926 | $11 | $2,256 | | Other comprehensive income (loss) | $556 | $(121) | $721 | $(349) | | Comprehensive income attributable to Valero Energy Corporation stockholders | $1,270 | $763 | $838 | $1,823 | [Consolidated Statements of Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Equity%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) The consolidated statements of equity show a decrease in total equity from December 31, 2024, to June 30, 2025, primarily due to common stock dividends and purchases of common stock for treasury, partially offset by other comprehensive income Consolidated Statements of Equity Highlights (Millions of Dollars) | Metric | Balance as of December 31, 2024 | Balance as of June 30, 2025 | | :------------------------------------ | :------------------------------ | :-------------------------- | | Total Valero Energy Corporation stockholders' equity | $24,512 | $24,078 | | Noncontrolling interests | $3,009 | $2,869 | | Total equity | $27,521 | $26,947 | - For the six months ended June 30, 2025, Valero reported **net income of $119 million**, paid **$710 million in common stock dividends** ($2.26 per share), and purchased **$613 million of common stock for treasury**[19](index=19&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Cash flows from operating activities significantly decreased for the six months ended June 30, 2025, compared to the same period in 2024, while cash used in financing activities also decreased due to lower share repurchases and debt repayments Consolidated Statements of Cash Flows Highlights (Millions of Dollars) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $1,888 | $4,318 | | Net cash used in investing activities | $(1,047) | $(1,029) | | Net cash used in financing activities | $(1,231) | $(3,191) | | Net decrease in cash, cash equivalents, and restricted cash | $(117) | $(10) | | Cash, cash equivalents, and restricted cash at end of period | $4,712 | $5,414 | [Condensed Notes to Consolidated Financial Statements](index=10&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) The condensed notes detail accounting policies, asset impairment, inventory, debt, equity, VIEs, employee benefits, income taxes, EPS, segment data, cash flow, fair value, and price risk management [1. Basis of Presentation and Significant Accounting Policies](index=10&type=section&id=1.%20BASIS%20OF%20PRESENTATION%20AND%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This section outlines the basis of presentation for interim financial statements and the adoption of new accounting standards, which primarily impact disclosures without affecting financial position or results - Valero adopted **ASU 2023-07 (Segment Reporting)** effective January 1, 2024, and **ASU 2023-09 (Income Taxes)** effective January 1, 2025, neither of which affected the company's financial position or results of operations, but both resulted in additional disclosures[28](index=28&type=chunk)[30](index=30&type=chunk) - **ASU 2024-03 (Expense Disaggregation)** is expected to be adopted effective January 1, 2027, and will not affect financial position or results of operations, but will result in additional disclosures[31](index=31&type=chunk) [2. Impairment](index=11&type=section&id=2.%20IMPAIRMENT) Valero recognized a combined asset impairment loss of $1.1 billion in its Refining segment in March 2025, related to its Benicia and Wilmington refineries in California. This decision followed a plan to cease refining operations at the Benicia Refinery by April 2026 due to increased operational restrictions and potential adverse effects from California legislation - Valero approved a plan to cease refining operations at its Benicia Refinery by the end of April 2026 due to California legislation imposing increased operational restrictions[32](index=32&type=chunk)[33](index=33&type=chunk)[35](index=35&type=chunk) - A combined **asset impairment loss of $1.1 billion** was recognized in the Refining segment in March 2025 for the Benicia and Wilmington refineries, reducing their carrying values to estimated fair values of **$722 million** and **$847 million**, respectively[33](index=33&type=chunk) - Expected **asset retirement obligations of $337 million** were recognized, primarily reflecting estimated decommissioning costs for the impaired assets[34](index=34&type=chunk) [3. Inventories](index=12&type=section&id=3.%20INVENTORIES) Total inventories decreased slightly from $7,761 million as of December 31, 2024, to $7,538 million as of June 30, 2025. The replacement cost of LIFO inventories exceeded their carrying amounts by $3.7 billion as of June 30, 2025 Inventories (Millions of Dollars) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Refinery feedstocks | $1,875 | $2,167 | | Refined petroleum products and blendstocks | $4,084 | $4,016 | | Renewable diesel feedstocks and products | $874 | $872 | | Ethanol feedstocks and products | $314 | $342 | | Materials and supplies | $391 | $364 | | Total Inventories | $7,538 | $7,761 | - As of June 30, 2025, the replacement cost (market value) of LIFO inventories exceeded their LIFO carrying amounts by **$3.7 billion**, a decrease from **$4.0 billion** at December 31, 2024[37](index=37&type=chunk) [4. Debt](index=12&type=section&id=4.%20DEBT) Valero issued $650 million of 5.150 percent Senior Notes due February 15, 2030, in February 2025, using a portion of the proceeds to repay maturing senior notes. The company maintains various committed and uncommitted credit facilities, with significant availability under its Valero Revolver and accounts receivable sales facility - On February 7, 2025, Valero issued **$650 million of 5.150 percent Senior Notes** due February 15, 2030, using net proceeds to repay **$189 million** and **$251 million** of maturing senior notes[38](index=38&type=chunk) Credit Facilities as of June 30, 2025 (Millions of Dollars) | Facility | Facility Amount | Outstanding Borrowings | Letters of Credit Issued | Availability | | :-------------------------------- | :-------------- | :--------------------- | :----------------------- | :----------- | | Valero Revolver | $4,000 | $— | $2 | $3,998 | | Accounts receivable sales facility | $1,300 | $— | n/a | $1,300 | | DGD Revolver | $400 | $100 | $23 | $277 | | IEnova Revolver | $830 | $37 | n/a | $793 | - The accounts receivable sales facility's maturity date was extended to July 2026 in July 2025[41](index=41&type=chunk) [5. Equity](index=14&type=section&id=5.%20EQUITY) Valero purchased 4,642,535 shares for treasury totaling $613 million during the six months ended June 30, 2025. The Board declared a quarterly cash dividend of $1.13 per common share payable on September 2, 2025. Accumulated other comprehensive loss significantly improved, moving from $(1,272) million at December 31, 2024, to $(553) million at June 30, 2025, primarily due to foreign currency translation adjustments - Valero purchased **2,567,930 shares for treasury** during the three months ended June 30, 2025, and **4,642,535 shares** during the six months ended June 30, 2025[47](index=47&type=chunk) - The Board authorized share purchase programs with **$1.2 billion remaining** under the February 2024 Program and **$2.5 billion** under the September 2024 Program as of June 30, 2025[48](index=48&type=chunk) - Accumulated other comprehensive loss improved from **$(1,272) million** at December 31, 2024, to **$(553) million** at June 30, 2025, driven by a **$726 million foreign currency translation adjustment gain** for the six months ended June 30, 2025[19](index=19&type=chunk)[50](index=50&type=chunk) [6. Variable Interest Entities](index=16&type=section&id=6.%20VARIABLE%20INTEREST%20ENTITIES) Valero consolidates key Variable Interest Entities like Diamond Green Diesel Holdings and Central Mexico Terminals, whose assets are restricted to their own obligations - Valero consolidates DGD, a joint venture producing renewable diesel, naphtha, and neat sustainable aviation fuel (SAF) from waste and renewable feedstocks[53](index=53&type=chunk) - Central Mexico Terminals, a group of IEnova subsidiaries, is also a consolidated VIE with which Valero has terminaling agreements but no ownership interest[53](index=53&type=chunk) - The assets of consolidated VIEs can only be used to settle their own obligations, and their creditors have no recourse to Valero's other assets[51](index=51&type=chunk) [7. Employee Benefit Plans](index=18&type=section&id=7.%20EMPLOYEE%20BENEFIT%20PLANS) Net periodic benefit cost for pension plans and other postretirement benefit plans for the three and six months ended June 30, 2025, remained relatively stable compared to the prior year, with pension plans showing a net cost of $6 million and $13 million for the respective periods Net Periodic Benefit Cost (Millions of Dollars) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Pension Plans | $6 | $2 | $13 | $4 | | Other Postretirement Benefit Plans | $2 | $3 | $4 | $6 | [8. Income Taxes](index=19&type=section&id=8.%20INCOME%20TAXES) Valero's effective tax rate increased due to an asset impairment loss, while the recently enacted OBBB is not expected to materially impact 2025 financial results - The effective tax rate for the three and six months ended June 30, 2025, was **higher than the U.S. federal statutory rate** due to lower U.S. income before income tax expense, primarily from the **$1.1 billion asset impairment loss** in California[58](index=58&type=chunk)[164](index=164&type=chunk) - The **One Big Beautiful Bill Act (OBBB)**, enacted July 4, 2025, extends clean fuel production credits, requires U.S./Mexico/Canada feedstocks for credits after 2025, eliminates special SAF credit rates after 2025, permanently reinstates 100% expensing of qualified property, and modifies international tax provisions[60](index=60&type=chunk)[61](index=61&type=chunk) - Valero does not expect the OBBB to have a material effect on its financial position, results of operations, or liquidity in 2025[60](index=60&type=chunk)[217](index=217&type=chunk) [9. Earnings Per Common Share](index=20&type=section&id=9.%20EARNINGS%20PER%20COMMON%20SHARE) Earnings per common share (EPS) significantly decreased for both basic and diluted measures for the three and six months ended June 30, 2025, compared to the prior year, reflecting lower net income attributable to Valero stockholders Earnings Per Common Share (Dollars and Shares in Millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income available to common stockholders | $712 | $877 | $117 | $2,119 | | Weighted-average common shares outstanding | 312 | 324 | 313 | 327 | | Earnings per common share | $2.28 | $2.71 | $0.37 | $6.47 | | Earnings per common share – assuming dilution | $2.28 | $2.71 | $0.37 | $6.47 | [10. Revenues and Segment Information](index=21&type=section&id=10.%20REVENUES%20AND%20SEGMENT%20INFORMATION) Valero's three segments, Refining, Renewable Diesel, and Ethanol, saw overall revenue decrease for the three and six months ended June 30, 2025, with varied segment performance - Valero has three reportable segments: **Refining, Renewable Diesel, and Ethanol**, each with distinct products, technologies, and marketing strategies[67](index=67&type=chunk) Revenues from External Customers by Segment (Millions of Dollars) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Refining | $28,324 | $33,044 | $57,081 | $63,187 | | Renewable Diesel | $565 | $554 | $1,058 | $1,256 | | Ethanol | $1,000 | $892 | $2,008 | $1,806 | | Total Revenues | $29,889 | $34,490 | $60,147 | $66,249 | Total Assets by Reportable Segment (Millions of Dollars) | Segment | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Refining | $46,223 | $46,729 | | Renewable Diesel | $5,402 | $5,680 | | Ethanol | $1,496 | $1,545 | | Corporate and eliminations | $6,312 | $6,189 | | Total assets | $59,433 | $60,143 | [11. Supplemental Cash Flow Information](index=28&type=section&id=11.%20SUPPLEMENTAL%20CASH%20FLOW%20INFORMATION) Changes in current assets and liabilities for the six months ended June 30, 2025, resulted in a net decrease of $168 million, primarily due to a decrease in accounts payable and inventories, partially offset by an increase in receivables. Interest paid was $263 million, and income taxes paid, net, were $283 million for the six months ended June 30, 2025 Changes in Current Assets and Liabilities (Millions of Dollars) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Receivables, net | $(112) | $(801) | | Inventories | $418 | $(503) | | Accounts payable | $(613) | $2,021 | | Changes in current assets and current liabilities | $(168) | $629 | - For the six months ended June 30, 2025, the decrease in accounts payable was primarily due to lower crude oil and other feedstock prices, while the decrease in inventories was due to lower inventory levels[82](index=82&type=chunk) Cash Flows Related to Interest and Income Taxes (Millions of Dollars) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Interest paid in excess of amount capitalized | $263 | $283 | | Income taxes paid, net | $283 | $659 | [12. Fair Value Measurements](index=30&type=section&id=12.%20FAIR%20VALUE%20MEASUREMENTS) Valero measures assets and liabilities at fair value, including commodity derivatives and impaired refinery assets, with fair values determined using market approaches and Level 3 inputs Recurring Fair Value Measurements (Millions of Dollars) - Assets as of June 30, 2025 | Asset Category | Level 1 | Level 2 | Level 3 | Total Gross Fair Value | | :-------------------------- | :------ | :------ | :------ | :--------------------- | | Commodity derivative contracts | $867 | $— | $— | $867 | | Physical purchase contracts | $— | $1 | $— | $1 | | Investments of certain benefit plans | $84 | $— | $4 | $88 | | Investments in AFS debt securities | $4 | $23 | $— | $27 | | Total | $955 | $24 | $4 | $983 | Recurring Fair Value Measurements (Millions of Dollars) - Liabilities as of June 30, 2025 | Liability Category | Level 1 | Level 2 | Level 3 | Total Gross Fair Value | | :-------------------------- | :------ | :------ | :------ | :--------------------- | | Commodity derivative contracts | $881 | $— | $— | $881 | | Physical purchase contracts | $— | $8 | $— | $8 | | Blending program obligations | $— | $140 | $— | $140 | | Foreign currency contracts | $4 | $— | $— | $4 | | Total | $885 | $148 | $— | $1,033 | - The fair values of the Benicia and Wilmington refineries, impaired as of March 31, 2025, were determined using a market approach based on recent property sales and market data, categorized as **Level 3 inputs**, totaling **$1,569 million**[92](index=92&type=chunk)[95](index=95&type=chunk) [13. Price Risk Management Activities](index=34&type=section&id=13.%20PRICE%20RISK%20MANAGEMENT%20ACTIVITIES) Valero uses derivative instruments, including commodity futures and options, and foreign currency contracts, to manage exposure to price volatility in commodities, foreign exchange rates, and compliance credits for Renewable and Low-Carbon Fuel Programs. The cost of meeting compliance credit obligations for Renewable and Low-Carbon Fuel Programs was $740 million for the six months ended June 30, 2025, a significant increase from $377 million in the prior year - Valero uses commodity derivative instruments (futures and options) as cash flow hedges to lock in prices for forecasted purchases/sales and as economic hedges to manage price volatility in inventories and forecasted transactions[102](index=102&type=chunk)[103](index=103&type=chunk) - As of June 30, 2025, Valero had foreign currency contracts to purchase **$628 million of U.S. dollars**, with **$453 million maturing by July 21, 2025**, and the remainder by July 30, 2025[106](index=106&type=chunk) - The cost of meeting compliance credit obligations under Renewable and Low-Carbon Fuel Programs was **$408 million** for the three months and **$740 million** for the six months ended June 30, 2025, significantly higher than **$173 million** and **$377 million**, respectively, in 2024[107](index=107&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=38&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section analyzes Valero's financial condition and results, highlighting the impact of strong demand and a significant asset impairment loss on operating and net income for Q2 and 6M 2025 [Cautionary Statement Regarding Forward-Looking Statements](index=38&type=section&id=CAUTIONARY%20STATEMENT%20FOR%20THE%20PURPOSE%20OF%20SAFE%20HARBOR%20PROVISIONS%20OF%20THE%20PRIVATE%20SECURITIES%20LITIGATION%20REFORM%20ACT%20OF%201995) This section highlights that the report contains forward-looking statements regarding future performance, market conditions, operational plans, and regulatory impacts. These statements are based on current expectations and involve known and unknown risks and uncertainties, including geopolitical conflicts, market volatility, regulatory changes, and operational disruptions, which could cause actual results to differ materially - Forward-looking statements cover future Refining, Renewable Diesel, and Ethanol segment margins, feedstock costs, product prices, capital investments, liquidity, and regulatory matters[114](index=114&type=chunk)[116](index=116&type=chunk) - Risks include global geopolitical conflicts, demand/supply imbalances, public health threats, acts of terrorism, severe weather events, and legislative/regulatory actions (e.g., environmental regulations, tax changes, low-carbon fuel programs)[117](index=117&type=chunk)[118](index=118&type=chunk) [Non-GAAP Financial Measures](index=42&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) Valero uses non-GAAP financial measures such as adjusted operating income (for total company and segments), Refining, Renewable Diesel, and Ethanol segment margin, and capital investments attributable to Valero. These measures are provided to facilitate comparison of operating results, assess cash flows, and offer useful information by excluding items not indicative of core operating performance, but should not be considered alternatives to GAAP measures - Non-GAAP financial measures include **adjusted operating income** (total and by segment), **Refining, Renewable Diesel, and Ethanol segment margin**, and **capital investments attributable to Valero**[122](index=122&type=chunk) - These measures are used to facilitate comparison of operating results, assess cash flows, and provide useful information by adjusting for items not indicative of core operating performance[122](index=122&type=chunk)[179](index=179&type=chunk) [Overview and Outlook](index=42&type=section&id=OVERVIEW%20AND%20OUTLOOK) Valero's Q2 and 6M 2025 results were influenced by strong fuel demand and a $1.1 billion asset impairment, with cash from operations funding investments and returns, and a stable but potentially volatile outlook [Second Quarter Results](index=43&type=section&id=Second%20Quarter%20Results) For the second quarter of 2025, net income attributable to Valero stockholders decreased by $166 million to $714 million compared to $880 million in Q2 2024. This was primarily due to a $224 million decrease in operating income, partially offset by a $97 million decrease in net income (loss) attributable to noncontrolling interest. Adjusted operating income decreased by $223 million, driven by lower Renewable Diesel and Ethanol segment performance, partially offset by an increase in Refining segment adjusted operating income Second Quarter Operating Income (Millions of Dollars) | Segment | Q2 2025 Operating Income | Q2 2024 Operating Income | Change | | :-------------------- | :----------------------- | :----------------------- | :----- | | Refining | $1,266 | $1,224 | $42 | | Renewable Diesel | $(79) | $112 | $(191) | | Ethanol | $54 | $105 | $(51) | | Total Company | $997 | $1,221 | $(224) | - Refining segment adjusted operating income increased by **$41 million** due to higher gasoline and distillate margins, partially offset by declining crude oil differentials and increased operating expenses[129](index=129&type=chunk) - Renewable Diesel segment operating income decreased by **$191 million** due to higher feedstock costs and decreased sales volumes, partially offset by higher product prices[129](index=129&type=chunk) [First Six Months Results](index=44&type=section&id=First%20Six%20Months%20Results) For the first six months of 2025, net income attributable to Valero stockholders significantly decreased by $2.0 billion to $119 million compared to $2.1 billion in the prior year. This substantial decline was primarily due to a $2.8 billion decrease in operating income, partially offset by a $616 million decrease in income tax expense and a $239 million decrease in net income (loss) attributable to noncontrolling interest. Adjusted operating income decreased by $1.7 billion, largely driven by a decline in the Refining segment's adjusted operating income and a significant decrease in the Renewable Diesel segment's operating income First Six Months Operating Income (Millions of Dollars) | Segment | 6M 2025 Operating Income | 6M 2024 Operating Income | Change | | :-------------------- | :----------------------- | :----------------------- | :----- | | Refining | $736 | $2,969 | $(2,233) | | Renewable Diesel | $(220) | $302 | $(522) | | Ethanol | $74 | $115 | $(41) | | Total Company | $97 | $2,900 | $(2,803) | - Refining segment adjusted operating income decreased by **$1.1 billion** primarily due to a decline in crude oil and other feedstock differentials, lower distillate margins, and increased operating and depreciation expenses[133](index=133&type=chunk) - Renewable Diesel segment operating income decreased by **$522 million** due to higher feedstock costs and decreased sales volumes, partially offset by higher product prices[133](index=133&type=chunk) - Second quarter and first six months of 2025 results were supported by strong worldwide demand for petroleum-based transportation fuels but impacted by a **$1.1 billion asset impairment loss** in California[123](index=123&type=chunk) - Valero generated **$1.9 billion of cash from operations** in the first six months of 2025, used for **$1.1 billion in capital investments**, **$1.3 billion returned to stockholders**, and **$440 million in public debt repayment**[125](index=125&type=chunk) - Outlook for Q3 2025: Gasoline and diesel demand expected to follow seasonal patterns, jet fuel demand improving, combined light product inventories low, and crude oil differentials expected to remain relatively stable with potential for volatility from geopolitical factors[134](index=134&type=chunk) [Results of Operations](index=46&type=section&id=RESULTS%20OF%20OPERATIONS) This section details Valero's segment-specific financial and operating performance for Q2 and 6M 2025, highlighting varied revenue, cost, and operating income trends influenced by market prices and differentials [Second Quarter Results - Financial Highlights](index=46&type=section&id=Second%20Quarter%20Results%20-%20Financial%20Highlights%20by%20Segment%20and%20Total%20Company) For the second quarter of 2025, total revenues decreased by $4.6 billion to $29.9 billion, primarily due to lower product prices in the Refining segment, partially offset by a $4.4 billion decrease in cost of sales. Net income attributable to Valero stockholders was $714 million, down from $880 million in Q2 2024. The Renewable Diesel segment reported an operating loss of $79 million, a significant decline from $112 million operating income in Q2 2024 Q2 2025 Financial Highlights by Segment (Millions of Dollars) | Metric | Refining | Renewable Diesel | Ethanol | Corporate and Eliminations | Total | | :--------------------------------------- | :------- | :--------------- | :------ | :------------------------- | :---- | | Revenues from external customers | $28,324 | $565 | $1,000 | $— | $29,889 | | Total cost of sales | $27,056 | $1,177 | $1,151 | $(744) | $28,640 | | Operating income (loss) by segment | $1,266 | $(79) | $54 | $(244) | $997 | | Net income attributable to Valero Energy Corporation stockholders | | | | | $714 | - Total revenues decreased by **$4.6 billion** in Q2 2025 compared to Q2 2024, primarily due to lower product prices for petroleum-based transportation fuels in the Refining segment[142](index=142&type=chunk) - Net income attributable to noncontrolling interests decreased by **$97 million** in Q2 2025, mainly due to lower earnings from DGD (Renewable Diesel segment)[144](index=144&type=chunk) [Second Quarter Results - Average Market Reference Prices and Differentials](index=48&type=section&id=Second%20Quarter%20Results%20-%20Average%20Market%20Reference%20Prices%20and%20Differentials) Q2 2025 saw decreased Brent crude prices, increased refining product margins, higher renewable diesel feedstock costs, and mixed trends in ethanol prices and corn prices Q2 Average Market Reference Prices (Dollars per Barrel/Gallon/Pound/Bushel) | Metric | Q2 2025 | Q2 2024 | | :--------------------------------------- | :------ | :------ | | Brent crude oil | $66.59 | $84.96 | | U.S. Gulf Coast CBOB gasoline less Brent | $8.99 | $7.95 | | U.S. Gulf Coast ULS diesel less Brent | $14.79 | $14.12 | | USGC used cooking oil (UCO) | $0.56 | $0.42 | | New York Harbor ethanol | $1.84 | $1.90 | | CBOT corn | $4.52 | $4.43 | [Refining Segment Results (Q2)](index=50&type=section&id=Refining%20Segment%20Results%20(Q2)) Refining segment adjusted operating income increased by $41 million in Q2 2025 to $1,270 million, driven by a $232 million increase in Refining segment margin. This margin improvement was primarily due to higher gasoline and distillate margins (approx. $390 million each), partially offset by a $450 million decline in crude oil differentials and a $100 million unfavorable impact from decreased throughput volumes. Operating expenses and depreciation also increased Refining Segment Q2 Financial & Operating Data (Millions of Dollars, Thousand Barrels/Day) | Metric | Q2 2025 | Q2 2024 | Change | | :--------------------------------------- | :------ | :------ | :----- | | Operating income | $1,266 | $1,224 | $42 | | Adjusted operating income | $1,270 | $1,229 | $41 | | Refining margin | $3,284 | $3,052 | $232 | | Throughput volumes | 2,922 | 3,010 | $(88) | - Refining segment margin increased by **$232 million**, primarily due to a **$390 million favorable impact from increased gasoline margins** and a **$390 million favorable impact from increased distillate margins**[147](index=147&type=chunk) - Offsetting factors included a **$450 million unfavorable impact from declining crude oil differentials** and a **$100 million unfavorable impact from decreased throughput volumes** (88,000 barrels per day)[147](index=147&type=chunk) [Renewable Diesel Segment Results (Q2)](index=51&type=section&id=Renewable%20Diesel%20Segment%20Results%20(Q2)) Renewable Diesel segment operating income decreased by $191 million in Q2 2025, resulting in a loss of $79 million, primarily due to a $200 million decrease in Renewable Diesel segment margin. This margin decline was driven by a $260 million unfavorable impact from higher feedstock costs and a $110 million unfavorable impact from decreased sales volumes (760,000 gallons per day), partially offset by a $180 million favorable impact from higher product prices Renewable Diesel Segment Q2 Financial & Operating Data (Millions of Dollars, Thousand Gallons/Day) | Metric | Q2 2025 | Q2 2024 | Change | | :--------------------------------------- | :------ | :------ | :----- | | Operating income (loss) | $(79) | $112 | $(191) | | Renewable Diesel margin | $54 | $254 | $(200) | | Sales volumes | 2,732 | 3,492 | $(760) | - Renewable Diesel segment margin decreased by **$200 million**, primarily due to a **$260 million unfavorable impact from higher feedstock costs** and a **$110 million unfavorable impact from decreased sales volumes** (760,000 gallons per day)[151](index=151&type=chunk) - The decrease in sales volumes was primarily due to reduced production driven by unfavorable economic conditions[151](index=151&type=chunk) [Ethanol Segment Results (Q2)](index=52&type=section&id=Ethanol%20Segment%20Results%20(Q2)) Ethanol segment adjusted operating income decreased by $49 million in Q2 2025 to $54 million, primarily due to a $30 million decrease in Ethanol segment margin. This margin decline was driven by a $30 million unfavorable impact from lower ethanol prices and a $10 million unfavorable impact from higher corn prices, partially offset by a $10 million favorable impact from increased production volumes (109,000 gallons per day). Operating expenses also increased by $19 million due to higher energy costs Ethanol Segment Q2 Financial & Operating Data (Millions of Dollars, Thousand Gallons/Day) | Metric | Q2 2025 | Q2 2024 | Change | | :--------------------------------------- | :------ | :------ | :----- | | Operating income | $54 | $105 | $(51) | | Adjusted operating income | $54 | $103 | $(49) | | Ethanol margin | $217 | $247 | $(30) | | Production volumes | 4,583 | 4,474 | $109 | - Ethanol segment margin decreased by **$30 million**, primarily due to a **$30 million unfavorable impact from lower ethanol prices** and a **$10 million unfavorable impact from higher corn prices**[154](index=154&type=chunk) - Operating expenses increased by **$19 million**, primarily due to higher energy costs[154](index=154&type=chunk) [First Six Months Results - Financial Highlights](index=53&type=section&id=First%20Six%20Months%20Results%20-%20Financial%20Highlights%20by%20Segment%20and%20Total%20Company) For the first six months of 2025, total revenues decreased by $6.1 billion to $60.1 billion, primarily due to lower product prices in the Refining segment. The company recognized a $1.1 billion asset impairment loss. Net income attributable to Valero stockholders was $119 million, a significant decrease from $2.1 billion in the prior year. The Refining segment's operating income decreased by $2.2 billion, and the Renewable Diesel segment reported an operating loss of $220 million 6M 2025 Financial Highlights by Segment (Millions of Dollars) | Metric | Refining | Renewable Diesel | Ethanol | Corporate and Eliminations | Total | | :--------------------------------------- | :------- | :--------------- | :------ | :------------------------- | :---- | | Revenues from external customers | $57,081 | $1,058 | $2,008 | $— | $60,147 | | Total cost of sales | $55,210 | $2,218 | $2,356 | $(1,393) | $58,391 | | Asset impairment loss | $1,131 | $— | $— | $— | $1,131 | | Operating income (loss) by segment | $736 | $(220) | $74 | $(493) | $97 | | Net income attributable to Valero Energy Corporation stockholders | | | | | $119 | - Total revenues decreased by **$6.1 billion** in the first six months of 2025 compared to 2024, primarily due to lower product prices in the Refining segment[161](index=161&type=chunk) - Income tax expense decreased by **$616 million** due to lower income before income tax expense, but the effective tax rate increased to **56%** (from 22%) due to the California asset impairment loss[163](index=163&type=chunk)[164](index=164&type=chunk) [First Six Months Results - Average Market Reference Prices and Differentials](index=55&type=section&id=First%20Six%20Months%20Results%20-%20Average%20Market%20Reference%20Prices%20and%20Differentials) 6M 2025 saw decreased Brent crude prices, generally lower refining product margins, increased renewable diesel feedstock costs, and mixed trends in ethanol and corn prices 6M Average Market Reference Prices (Dollars per Barrel/Gallon/Pound/Bushel) | Metric | 6M 2025 | 6M 2024 | | :--------------------------------------- | :------ | :------ | | Brent crude oil | $70.74 | $83.40 | | U.S. Gulf Coast CBOB gasoline less Brent | $6.29 | $8.04 | | U.S. Gulf Coast ULS diesel less Brent | $15.74 | $19.37 | | USGC used cooking oil (UCO) | $0.53 | $0.41 | | New York Harbor ethanol | $1.83 | $1.77 | | CBOT corn | $4.62 | $4.39 | [Refining Segment Results (6M)](index=57&type=section&id=Refining%20Segment%20Results%20(6M)) Refining segment adjusted operating income decreased by $1.1 billion in the first six months of 2025 to $1,875 million. This was primarily due to an $812 million decrease in Refining segment margin, driven by a $770 million unfavorable impact from declining crude oil differentials, a $410 million unfavorable impact from lower distillate margins, and a $270 million unfavorable impact from other feedstock differentials. These were partially offset by a $570 million favorable impact from increased margins on other products. Operating expenses and depreciation also increased Refining Segment 6M Financial & Operating Data (Millions of Dollars, Thousand Barrels/Day) | Metric | 6M 2025 | 6M 2024 | Change | | :--------------------------------------- | :------ | :------ | :----- | | Operating income | $736 | $2,969 | $(2,233) | | Adjusted operating income | $1,875 | $2,979 | $(1,104) | | Refining margin | $5,774 | $6,586 | $(812) | | Asset impairment loss | $1,131 | $— | $1,131 | | Throughput volumes | 2,875 | 2,885 | $(10) | - Refining segment margin decreased by **$812 million**, primarily due to a **$770 million unfavorable impact from declining crude oil differentials**, a **$410 million unfavorable impact from lower distillate margins**, and a **$270 million unfavorable impact from other feedstock differentials**[168](index=168&type=chunk)[173](index=173&type=chunk) - Operating expenses increased by **$195 million** due to higher energy costs (**$96 million**) and maintenance expenses (**$57 million**), and the effect of a favorable property tax settlement in 2024[173](index=173&type=chunk) [Renewable Diesel Segment Results (6M)](index=58&type=section&id=Renewable%20Diesel%20Segment%20Results%20(6M)) Renewable Diesel segment operating income decreased by $522 million in the first six months of 2025, resulting in a loss of $220 million, primarily due to a $540 million decrease in Renewable Diesel segment margin. This margin decline was driven by a $360 million unfavorable impact from higher feedstock costs and a $290 million unfavorable impact from decreased sales volumes (1.0 million gallons per day), partially offset by a $140 million favorable impact from higher product prices Renewable Diesel Segment 6M Financial & Operating Data (Millions of Dollars, Thousand Gallons/Day) | Metric | 6M 2025 | 6M 2024 | Change | | :--------------------------------------- | :------ | :------ | :----- | | Operating income (loss) | $(220) | $302 | $(522) | | Renewable Diesel margin | $59 | $599 | $(540) | | Sales volumes | 2,584 | 3,610 | $(1,026) | - Renewable Diesel segment margin decreased by **$540 million**, primarily due to a **$360 million unfavorable impact from higher feedstock costs** and a **$290 million unfavorable impact from decreased sales volumes** (1.0 million gallons per day)[172](index=172&type=chunk)[176](index=176&type=chunk) - The decrease in sales volumes was primarily due to reduced production driven by unfavorable economic conditions and planned maintenance activities at the DGD St. Charles Plant[176](index=176&type=chunk) [Ethanol Segment Results (6M)](index=59&type=section&id=Ethanol%20Segment%20Results%20(6M)) Ethanol segment adjusted operating income decreased by $68 million in the first six months of 2025 to $74 million, primarily due to a $32 million decrease in Ethanol segment margin. This margin decline was driven by a $55 million unfavorable impact from higher corn prices and a $30 million unfavorable impact from lower co-product prices, partially offset by a $35 million favorable impact from higher ethanol prices. Operating expenses also increased by $36 million due to higher energy costs Ethanol Segment 6M Financial & Operating Data (Millions of Dollars, Thousand Gallons/Day) | Metric | 6M 2025 | 6M 2024 | Change | | :--------------------------------------- | :------ | :------ | :----- | | Operating income | $74 | $115 | $(41) | | Adjusted operating income | $74 | $142 | $(68) | | Ethanol margin | $410 | $442 | $(32) | | Production volumes | 4,525 | 4,470 | $55 | - Ethanol segment margin decreased by **$32 million**, primarily due to a **$55 million unfavorable impact from higher corn prices** and a **$30 million unfavorable impact from lower co-product prices** (DDGs)[177](index=177&type=chunk) - Operating expenses increased by **$36 million**, primarily due to higher energy costs[182](index=182&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=68&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Valero is exposed to market risks related to commodity price volatility, foreign currency exchange rates, and the price of compliance credits for Renewable and Low-Carbon Fuel Programs. The company manages these risks through derivative instruments and closely monitors its exposure. There have been no material changes to these market risks since the last annual report - Valero is exposed to market risks from **commodity price volatility, foreign currency exchange rates**, and the price of **compliance credits for Renewable and Low-Carbon Fuel Programs**[227](index=227&type=chunk) - A **10 percent increase or decrease in floating interest rates** would not materially affect Valero's results of operations[224](index=224&type=chunk) Debt Instruments by Expected Maturity (Millions of Dollars) as of June 30, 2025 | Type | Remainder of 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter | Total | Fair Value | | :--------- | :---------------- | :--- | :--- | :--- | :--- | :--------- | :---- | :--------- | | Fixed rate | $— | $672 | $564 | $1,047 | $439 | $5,585 | $8,307 | $8,054 | | Floating rate | $137 | $— | $— | $— | $— | $— | $137 | $137 | [ITEM 4. CONTROLS AND PROCEDURES](index=69&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, with the participation of the principal executive and financial officers, concluded that Valero's disclosure controls and procedures were effective as of June 30, 2025. There have been no material changes in internal control over financial reporting during the last fiscal quarter - Valero's **disclosure controls and procedures were effective** as of June 30, 2025[228](index=228&type=chunk) - There has been **no material change in internal control over financial reporting** during the last fiscal quarter[229](index=229&type=chunk) PART II – OTHER INFORMATION This section covers other information including legal proceedings, risk factors, equity security sales, and exhibits [ITEM 1. LEGAL PROCEEDINGS](index=69&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section reports material developments in legal proceedings. The previously reported environmental enforcement matter with the Texas Attorney General against Valero's Port Arthur Refinery for alleged Clean Air Act violations has been resolved. No new proceedings requiring disclosure under SEC regulations occurred during the three months ended June 30, 2025 - The environmental enforcement matter with the Texas Attorney General against the Port Arthur Refinery for alleged Clean Air Act violations, previously reported, has been **resolved**[233](index=233&type=chunk) - No new legal proceedings requiring disclosure occurred during the three months ended June 30, 2025[231](index=231&type=chunk) [ITEM 1A. RISK FACTORS](index=70&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors disclosed in Valero's annual report on Form 10-K for the year ended December 31, 2024 - No material changes to risk factors were reported since the annual report on Form 10-K for the year ended December 31, 2024[234](index=234&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=70&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During the second quarter of 2025, Valero purchased 2,567,930 shares of its common stock for treasury at an average price of $131.64 per share, totaling approximately $338 million. As of June 30, 2025, $1.2 billion remained available for purchase under the February 2024 Program and $2.5 billion under the September 2024 Program Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :----- | :------------------------------- | :--------------------------- | | April 2025 | 57,866 | $115.45 | | May 2025 | 796,850 | $127.56 | | June 2025 | 1,713,214 | $134.09 | | Total | 2,567,930 | $131.64 | - As of June 30, 2025, **$1.2 billion remained available for purchase** under the February 2024 Program and **$2.5 billion** under the September 2024 Program[237](index=237&type=chunk) [ITEM 5. OTHER INFORMATION](index=70&type=section&id=ITEM%205.%20OTHER%20INFORMATION) This item states that there is no other information to report under sub-sections (a) and (b). Additionally, no director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025 - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[239](index=239&type=chunk) [ITEM 6. EXHIBITS](index=71&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed with the Form 10-Q, including indentures, agreements, subsidiary information, certifications, and Inline XBRL documents - Exhibits include Second Supplemental Indenture, Form of Amended and Restated Performance Share Agreement, Subsidiary Issuer of Guaranteed Securities, Rule 13a-14(a) Certifications, Section 1350 Certifications, and Inline XBRL documents[240](index=240&type=chunk)[242](index=242&type=chunk) [SIGNATURE](index=72&type=section&id=SIGNATURE) The report is duly signed on behalf of Valero Energy Corporation by Jason W. Fraser, Executive Vice President and Chief Financial Officer, on July 24, 2025 - The report was signed by **Jason W. Fraser, Executive Vice President and Chief Financial Officer**, on July 24, 2025[245](index=245&type=chunk)

Financial Data and Key Metrics Changes - For Q2 2025, net income attributable to Valero stockholders was $714 million or $2.28 per share, down from $880 million or $2.71 per share in Q2 2024 [10] - Refining segment reported operating income of $1.3 billion for Q2 2025, compared to $1.2 billion in Q2 2024 [10] - Refining throughput volumes averaged 2.9 million barrels per day with a 92% capacity utilization rate [10] - Cash operating expenses for refining were $4.91 per barrel in Q2 2025 [10] Business Line Data and Key Metrics Changes - Renewable diesel segment reported an operating loss of $79 million in Q2 2025, down from operating income of $112 million in Q2 2024, with sales volumes averaging 2.7 million gallons per day [11] - Ethanol segment reported operating income of $54 million in Q2 2025, down from $105 million in Q2 2024, with production volumes averaging 4.6 million gallons per day [11] Market Data and Key Metrics Changes - Diesel sales volumes increased approximately 10% year-over-year, while gasoline sales remained flat compared to the previous year [7] - U.S. diesel inventories were at their lowest level for July in almost 30 years, indicating strong demand [7] Company Strategy and Development Direction - The company is progressing with FCC unit optimization projects at St. Charles, expected to cost $230 million and start up in 2026, aimed at increasing the yield of high-value products [8] - The company remains optimistic about refining fundamentals due to planned refinery closures and limited capacity additions beyond 2025 [8] Management's Comments on Operating Environment and Future Outlook - Management noted strong operational and commercial execution, setting a record for refining throughput in the U.S. Gulf Coast region [6] - The outlook for refining margins is positive due to strong product demand and low inventories globally [7] - Management expects sour crude oil differentials to widen as OPEC plus and Canada increase production in the latter half of the year [9] Other Important Information - The company returned $695 million to stockholders in Q2 2025, with a payout ratio of 52% [13] - Total debt at the end of Q2 2025 was $8.4 billion, with $4.5 billion in cash and cash equivalents [13] Q&A Session Summary Question: How is refined product demand trending across your footprint? - Management indicated that refining fundamentals remain supportive, with gasoline demand relatively flat and diesel demand trending above last year's levels [20][21] Question: What is your outlook for light-heavy differentials? - Management expects improvements in differentials as Canadian production recovers and OPEC unwinds cuts, but uncertainties remain regarding Russian sanctions [28][30] Question: What's your outlook for net capacity additions for the remaining part of this year and for 2026? - Management noted limited new capacity coming online, primarily geared towards petrochemical production rather than transportation fuels [35][36] Question: Can you explain the strong capture rates in the Gulf Coast? - Strong operating performance and commercial success in the Gulf Coast region contributed to high capture rates, despite heavy-light differentials [37][39] Question: What is the sustainability of capital returns and buybacks? - The company maintains a commitment to return 40%-50% of adjusted cash flow to shareholders and plans to use excess free cash flow for share buybacks [42][44] Question: Can you discuss the renewable diesel segment's performance? - The segment improved quarter-over-quarter due to better volume and full PTC capture on eligible feedstocks, despite ongoing challenges [105][108]