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]

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 [8] - Refining segment reported operating income of $1.3 billion for Q2 2025, compared to $1.2 billion in Q2 2024 [9] - Net cash provided by operating activities was $936 million in Q2 2025, with adjusted net cash provided by operating activities at $1.3 billion [11] Business Line Data and Key Metrics Changes - Refining throughput volumes averaged 2.9 million barrels per day in Q2 2025, with a capacity utilization of 92% [9] - Renewable diesel segment reported an operating loss of $79 million in Q2 2025, compared to operating income of $112 million in Q2 2024 [10] - Ethanol segment reported operating income of $54 million in Q2 2025, down from $105 million in Q2 2024 [10] Market Data and Key Metrics Changes - Diesel sales volumes were up approximately 10% year-over-year, while gasoline sales remained flat compared to last year [5] - U.S. diesel inventories and days of supply were at their lowest level for July in almost 30 years [5] - The company expects refining throughput volumes in Q3 2025 to range from 1.76 million to 1.81 million barrels per day in the Gulf Coast region [14] 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 [6] - Valero remains committed to maintaining operational excellence and has a strong balance sheet providing financial flexibility [7] - The company anticipates limited capacity additions beyond 2025, which may support refining fundamentals [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding refining fundamentals due to planned refinery closures and limited capacity additions [6] - The company expects sour crude oil differentials to widen as OPEC plus and Canada increase production in the latter half of the year [7] - Management noted that while gasoline demand is expected to remain flat, distillate demand is anticipated to pick up due to seasonal factors [21] Other Important Information - The company returned $695 million to stockholders in Q2 2025, with a payout ratio of 52% [12] - Total debt at the end of Q2 2025 was $8.4 billion, with available liquidity of $5.3 billion excluding cash [12][13] - The company expects capital investments for 2025 to be approximately $2 billion, with $1.6 billion allocated to sustaining the business [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 sales trending about 3% above last year's level [18][19] Question: What is your outlook for light-heavy differentials? - Management expects improvements in differentials as OPEC unwinds production cuts and Canadian production continues to grow [26][28] 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 [32][34] Question: Can you discuss the sustainability of capital returns and share buybacks? - Management confirmed a commitment to return 40% to 50% of adjusted cash flow to shareholders and will use excess free cash flow for share buybacks [41][42] Question: What is the path back to mid-cycle for DGD? - Management highlighted the importance of EPA decisions on RINs and market dynamics, indicating a positive long-term outlook for DGD [45][48] Question: Can you explain the strong throughput in U.S. refining this year? - Management attributed high throughput to strong operational performance and favorable weather conditions, with expectations for below-average turnarounds in Q3 [83][88]

Core Insights - Valero Energy reported quarterly earnings of $2.28 per share, exceeding the Zacks Consensus Estimate of $1.73 per share, but down from $2.71 per share a year ago, resulting in an earnings surprise of +31.79% [1] - The company achieved revenues of $29.89 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 7.37%, although this is a decline from year-ago revenues of $34.49 billion [2] - Valero Energy's stock has increased by approximately 20.4% since the beginning of the year, outperforming the S&P 500's gain of 8.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.01 on revenues of $29.71 billion, and for the current fiscal year, it is $6.32 on revenues of $116.31 billion [7] - The estimate revisions trend for Valero Energy was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Oil and Gas - Refining and Marketing industry is currently ranked in the bottom 21% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8] - Another company in the same industry, CVR Energy, is expected to report a quarterly loss of $0.08 per share, reflecting a year-over-year change of -188.9%, with revenues projected at $1.91 billion, down 3.1% from the previous year [9]

[Executive Summary](index=1&type=section&id=1.%20Executive%20Summary) Valero's Q2 2025 net income fell to $714 million, with mixed segment results and $695 million returned to stockholders Key Financial Highlights (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :------------------------------------ | :------- | :------- | :---------- | | Net Income Attributable to Valero Stockholders | $714 million | $880 million | -18.86% | | Earnings Per Share (EPS) | $2.28 | $2.71 | -15.87% | | Refining Operating Income | $1.3 billion | $1.2 billion | +8.33% | | Renewable Diesel Operating Income (Loss) | ($79 million) | $112 million | -170.54% | | Ethanol Operating Income | $54 million | $105 million | -48.57% | | Returned to Stockholders | $695 million | N/A | N/A | [Company Overview](index=3&type=section&id=2.%20Company%20Overview) Valero is a multinational energy company operating refineries, renewable diesel, and ethanol plants across three core segments - Valero is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, selling primarily in the U.S., Canada, U.K., Ireland, and Latin America[15](index=15&type=chunk) - The company owns **15 petroleum refineries** with a combined throughput capacity of approximately **3.2 million barrels per day**[15](index=15&type=chunk) - Valero is a joint venture member in Diamond Green Diesel (DGD), which produces low-carbon fuels including renewable diesel and SAF, with a production capacity of approximately **1.2 billion gallons per year**[15](index=15&type=chunk) - Valero also owns **12 ethanol plants** with a combined production capacity of approximately **1.7 billion gallons per year**[15](index=15&type=chunk) - Operations are managed through its Refining, Renewable Diesel, and Ethanol segments[15](index=15&type=chunk) [Consolidated Financial Performance](index=6&type=section&id=3.%20Consolidated%20Financial%20Performance) Valero's Q2 2025 consolidated financial performance saw decreased net income and EPS, with total revenues declining year-over-year [Statement of Income Highlights](index=6&type=section&id=3.1%20Statement%20of%20Income%20Highlights) Q2 2025 revenues decreased to $29,889 million, with net income at $714 million and diluted EPS at $2.28, both down from Q2 2024 Consolidated Statement of Income Data (Millions of Dollars, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (%) | | :----------------------------------------------------------------- | :------------------------------- | :------------------------------- | :------------- | | Revenues | $29,889 | $34,490 | -13.34% | | Operating income | $997 | $1,221 | -18.35% | | Net income attributable to Valero Energy Corporation stockholders | $714 | $880 | -18.86% | | Earnings per common share | $2.28 | $2.71 | -15.87% | [Non-GAAP Financial Measures Reconciliation](index=9&type=section&id=3.2%20Non-GAAP%20Financial%20Measures%20Reconciliation) Non-GAAP measures adjust for non-core items like impairment losses, with Q2 2025 adjusted net income and EPS aligning with GAAP figures - Non-GAAP measures are used to facilitate comparison of operating results between periods by adjusting for certain items not indicative of core operating performance, such as asset impairment loss, project liability adjustment, and second-generation biofuel tax credit[19](index=19&type=chunk)[62](index=62&type=chunk)[64](index=64&type=chunk) Adjusted Net Income and EPS Reconciliation (Q2 2025 vs Q2 2024) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :----------------------------------------------------------------- | :------------------------------- | :------------------------------- | | Net income attributable to Valero Energy Corporation stockholders | $714 | $880 | | Total adjustments | — | $7 | | Adjusted net income attributable to Valero Energy Corporation stockholders | $714 | $887 | | Earnings per common share – assuming dilution | $2.28 | $2.71 | | Total adjustments | — | $0.02 | | Adjusted earnings per common share – assuming dilution | $2.28 | $2.73 | - For the six months ended June 30, 2025, a significant adjustment was a **$1.1 billion asset impairment loss** related to the Benicia and Wilmington refineries, net of taxes[29](index=29&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) [Segment Performance](index=1&type=section&id=4.%20Segment%20Performance) Valero's Q2 2025 segment performance was mixed, with Refining income up, Renewable Diesel reporting a loss, and Ethanol income declining [Refining Segment](index=1&type=section&id=4.1%20Refining%20Segment) Refining segment operating income rose to $1,266 million in Q2 2025, despite slightly lower throughput, due to improved refining margin per barrel Refining Segment Financials (Q2 2025 vs Q2 2024) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (%) | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------- | | Operating Income (Millions $) | $1,266 | $1,224 | 3.43% | | Refining Margin (Millions $) | $3,284 | $3,052 | 7.60% | | Throughput volumes (thousand bbl/day) | 2,922 | 3,010 | -2.92% | | Refining margin per barrel of throughput | $12.35 | $11.14 | 10.86% | [U.S. Gulf Coast Region](index=11&type=section&id=4.1.1%20U.S.%20Gulf%20Coast%20Region) U.S. Gulf Coast refining operating income increased to $846 million in Q2 2025, driven by higher throughput and improved margin per barrel - Set a record for refining throughput rate in the U.S. Gulf Coast region in the second quarter of 2025[4](index=4&type=chunk) U.S. Gulf Coast Refining Performance (Q2 2025 vs Q2 2024) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (%) | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------- | | Refining operating income (Millions $) | $846 | $686 | 23.32% | | Throughput volumes (thousand bbl/day) | 1,841 | 1,827 | 0.77% | | Refining margin per barrel of throughput | $11.78 | $10.36 | 13.71% | [U.S. Mid-Continent Region](index=11&type=section&id=4.1.2%20U.S.%20Mid-Continent%20Region) U.S. Mid-Continent refining operating income rose to $127 million in Q2 2025, with improved margin per barrel offsetting slightly lower throughput U.S. Mid-Continent Refining Performance (Q2 2025 vs Q2 2024) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (%) | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------- | | Refining operating income (Millions $) | $127 | $111 | 14.41% | | Throughput volumes (thousand bbl/day) | 423 | 438 | -3.39% | | Refining margin per barrel of throughput | $10.52 | $9.73 | 8.12% | [North Atlantic Region](index=12&type=section&id=4.1.3%20North%20Atlantic%20Region) North Atlantic refining operating income decreased to $219 million in Q2 2025 due to lower throughput volumes and a slight decline in margin per barrel North Atlantic Refining Performance (Q2 2025 vs Q2 2024) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (%) | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------- | | Refining operating income (Millions $) | $219 | $325 | -32.62% | | Throughput volumes (thousand bbl/day) | 396 | 469 | -15.56% | | Refining margin per barrel of throughput | $13.20 | $13.32 | -0.90% | [U.S. West Coast Region](index=12&type=section&id=4.1.4%20U.S.%20West%20Coast%20Region) U.S. West Coast refining income fell to $74 million in Q2 2025, impacted by a $1.1 billion impairment loss and planned Benicia refinery closure U.S. West Coast Refining Performance (Q2 2025 vs Q2 2024) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (%) | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------- | | Refining operating income (Millions $) | $74 | $102 | -27.45% | | Throughput volumes (thousand bbl/day) | 262 | 276 | -5.07% | | Refining margin per barrel of throughput | $18.02 | $14.86 | 21.26% | - Recognized a combined asset impairment loss of **$1.1 billion** in the six months ended June 30, 2025, related to the Benicia and Wilmington refineries[27](index=27&type=chunk)[63](index=63&type=chunk) - Valero intends to cease refining operations at its Benicia Refinery by the end of **April 2026**, leading to accelerated depreciation of its long-lived assets[63](index=63&type=chunk)[64](index=64&type=chunk) [Renewable Diesel Segment](index=1&type=section&id=4.2%20Renewable%20Diesel%20Segment) The Renewable Diesel segment reported a $79 million operating loss in Q2 2025, a significant decline driven by lower sales volumes and margin per gallon Renewable Diesel Segment Financials (Q2 2025 vs Q2 2024) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (%) | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------- | | Operating Income (Loss) (Millions $) | ($79) | $112 | -170.54% | | Renewable Diesel Margin (Millions $) | $54 | $254 | -78.74% | | Sales volumes (thousand gallons/day) | 2,732 | 3,492 | -21.76% | | Renewable Diesel margin per gallon of sales | $0.22 | $0.80 | -72.50% | [Ethanol Segment](index=2&type=section&id=4.3%20Ethanol%20Segment) Ethanol segment operating income decreased to $54 million in Q2 2025, as a significant decline in margin per gallon offset slightly increased production volumes Ethanol Segment Financials (Q2 2025 vs Q2 2024) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (%) | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------- | | Operating Income (Millions $) | $54 | $105 | -48.57% | | Ethanol Margin (Millions $) | $217 | $247 | -12.15% | | Production volumes (thousand gallons/day) | 4,583 | 4,474 | 2.44% | | Ethanol margin per gallon of production | $0.52 | $0.61 | -14.80% | [Liquidity, Capital Management & Shareholder Returns](index=1&type=section&id=5.%20Liquidity,%20Capital%20Management%20%26%20Shareholder%20Returns) Valero maintained a strong balance sheet with $4.5 billion cash, generated $936 million in operating cash, and returned $695 million to stockholders in Q2 2025 [Balance Sheet Data](index=3&type=section&id=5.1%20Balance%20Sheet%20Data) As of June 30, 2025, Valero reported $4.5 billion cash, $8.4 billion total debt, and a 19 percent net debt to capitalization ratio Balance Sheet Highlights (Millions of Dollars) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Cash and cash equivalents | $4,537 | $4,657 | | Total debt | $8,370 | $8,085 | | Total finance lease obligations | $2,277 | $2,378 | | Valero Energy Corporation stockholders' equity | $24,078 | $24,512 | - The debt to capitalization ratio, net of cash and cash equivalents, was **19 percent** as of June 30, 2025[12](index=12&type=chunk) - Valero repaid the **$251 million** outstanding principal balance of its 2.85% Senior Notes that matured in April 2025[5](index=5&type=chunk)[12](index=12&type=chunk) [Cash Flow and Capital Investments](index=2&type=section&id=5.2%20Cash%20Flow%20and%20Capital%20Investments) Q2 2025 net cash from operating activities was $936 million, with adjusted cash at $1.3 billion, and capital investments totaled $407 million Cash Flow and Capital Investments (Q2 2025 vs Q2 2024) | Metric | Three Months Ended June 30, 2025 (Millions $) | Three Months Ended June 30, 2024 (Millions $) | YoY Change (%) | | :----------------------------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------- | | Net cash provided by operating activities | $936 | $2,472 | -62.14% | | Adjusted net cash provided by operating activities | $1,347 | $1,600 | -15.81% | | Capital investments | $407 | $420 | -3.09% | | Capital investments attributable to Valero | $399 | $360 | 10.83% | - Included in net cash provided by operating activities was a **$325 million** unfavorable impact from working capital and **$86 million** of adjusted net cash used in operating activities associated with the other joint venture member's share of DGD[8](index=8&type=chunk) - Of the total capital investments, **$371 million** was for sustaining the business, including costs for turnarounds, catalysts, and regulatory compliance[9](index=9&type=chunk) [Shareholder Returns](index=1&type=section&id=5.3%20Shareholder%20Returns) Valero returned $695 million to stockholders in Q2 2025 through $354 million in dividends and $341 million in stock buybacks - Returned **$695 million** to stockholders in the second quarter of 2025[5](index=5&type=chunk)[10](index=10&type=chunk) Shareholder Returns (Q2 2025 vs Q2 2024) | Metric | Three Months Ended June 30, 2025 (Millions $) | Three Months Ended June 30, 2024 (Millions $) | YoY Change (%) | | :------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | :------------- | | Dividends paid | $354 | N/A | N/A | | Stock buybacks | $341 | N/A | N/A | | Dividends per common share | $1.13 | $1.07 | 5.61% | - The payout ratio was **52 percent** of adjusted net cash provided by operating activities[10](index=10&type=chunk) [Strategic Update](index=3&type=section&id=6.%20Strategic%20Update) Valero is advancing an FCC Unit optimization project at its St. Charles Refinery, costing $230 million, to boost high-value product yield by 2026 - Valero is progressing with an FCC Unit optimization project at the St. Charles Refinery[13](index=13&type=chunk) - The project aims to increase the yield of high-value products[13](index=13&type=chunk) - The project is estimated to cost **$230 million** and is expected to be completed in **2026**[13](index=13&type=chunk) [Market Reference Prices and Differentials](index=18&type=section&id=7.%20Market%20Reference%20Prices%20and%20Differentials) Q2 2025 market reference prices for crude, natural gas, and product margins, along with renewable diesel and ethanol indicators, showed varied changes impacting profitability [Refining Market Data](index=18&type=section&id=7.1%20Refining%20Market%20Data) Q2 2025 saw lower crude oil prices, higher natural gas and RVO costs, and varied regional product margins impacting refining profitability Key Refining Market Prices (Q2 2025 vs Q2 2024) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (%) | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------- | | Brent crude oil ($/barrel) | $66.59 | $84.96 | -21.62% | | WTI crude oil ($/barrel) | $63.87 | $80.74 | -20.90% | | Natural gas ($/million British thermal units) | $2.83 | $1.74 | 62.64% | | Renewable volume obligation (RVO) ($/barrel) | $6.14 | $3.39 | 81.12% | Selected Refining Product Margins (RVO adjusted, $/barrel) (Q2 2025 vs Q2 2024) | Region/Product | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (%) | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------- | | U.S. Gulf Coast CBOB gasoline less Brent | $8.99 | $7.95 | 13.08% | | U.S. Gulf Coast ULS diesel less Brent | $14.79 | $14.12 | 4.74% | | North Atlantic CBOB gasoline less Brent | $13.43 | $16.22 | -17.20% | | U.S. West Coast California Reformulated Gasoline Blendstock for Oxygenate Blending 87 gasoline less Brent | $36.98 | $31.88 | 16.00% | [Renewable Diesel Market Data](index=19&type=section&id=7.2%20Renewable%20Diesel%20Market%20Data) Renewable Diesel markets in Q2 2025 saw lower ULS diesel prices, significantly higher RIN prices, stable LCFS credits, and increased feedstock costs Key Renewable Diesel Market Prices (Q2 2025 vs Q2 2024) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (%) | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------- | | NYMEX ULS diesel ($/gallon) | $2.16 | $2.51 | -13.94% | | Biodiesel RIN ($/RIN) | $1.09 | $0.51 | 113.73% | | California LCFS carbon credit ($/metric ton) | $52.36 | $51.29 | 2.09% | | USGC used cooking oil ($/pound) | $0.56 | $0.42 | 33.33% | [Ethanol Market Data](index=19&type=section&id=7.3%20Ethanol%20Market%20Data) Q2 2025 ethanol market data indicated slightly higher corn prices and lower New York Harbor ethanol prices compared to the prior year Key Ethanol Market Prices (Q2 2025 vs Q2 2024) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (%) | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------- | | Chicago Board of Trade corn ($/bushel) | $4.52 | $4.43 | 2.03% | | New York Harbor ethanol ($/gallon) | $1.84 | $1.90 | -3.16% | [Notes to Earnings Release Tables](index=22&type=section&id=8.%20Notes%20to%20Earnings%20Release%20Tables) This section defines and reconciles non-GAAP measures, detailing adjustments for impairment losses, project liabilities, and biofuel tax credits, and clarifies cash flow and capital investment calculations - Non-GAAP measures are used to assess ongoing financial performance by adjusting for items not indicative of core operating performance, such as asset impairment loss, project liability adjustment, and second-generation biofuel tax credit[62](index=62&type=chunk)[64](index=64&type=chunk)[67](index=67&type=chunk) - Key adjustments include a **$1.1 billion asset impairment loss** for the Benicia and Wilmington refineries (six months ended June 30, 2025), a project liability adjustment related to the Navigator carbon capture project cancellation (six months ended June 30, 2024), and a second-generation biofuel tax credit (three and six months ended June 30, 2024)[63](index=63&type=chunk)[64](index=64&type=chunk) - Adjusted net cash provided by operating activities excludes changes in current assets and liabilities and the other joint venture member's share of DGD's operating cash flow to more accurately reflect cash available to Valero[67](index=67&type=chunk)[68](index=68&type=chunk) - Capital investments attributable to Valero exclude the portion of DGD's capital investments attributable to the other joint venture member and capital expenditures of other consolidated variable interest entities (VIEs)[68](index=68&type=chunk)

Core Insights - The California Energy Commission is seeking buyers for Valero's Benicia refinery to prevent its closure in April 2026 [1] Group 1 - The Benicia refinery is at risk of shutting down if a buyer is not found [1] - The closure of the refinery could have significant implications for local fuel supply and prices [1] - The California Energy Commission's intervention highlights the importance of maintaining refining capacity in the state [1]

Core Viewpoint - Valero Energy (VLO) is expected to report a significant decline in quarterly earnings and revenues compared to the previous year, with analysts predicting earnings of $1.76 per share and revenues of $27.84 billion, reflecting decreases of 35.1% and 19.3% respectively [1]. Earnings Projections - The consensus EPS estimate for the quarter has been revised upward by 11.2% over the past 30 days, indicating a collective reassessment by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are strongly correlated with short-term stock price performance [3]. Revenue Estimates - Analysts forecast 'Total operating revenues - Renewable diesel' to be $783.18 million, down 33.9% year-over-year [5]. - The estimate for 'Total operating revenues - Ethanol' is $1.10 billion, suggesting a decrease of 2% from the previous year [5]. - 'Total operating revenues - Refining' is expected to reach $26.94 billion, indicating an 18.5% decline from the prior-year quarter [5]. Refining Margins - The 'U.S. Mid-Continent region - Refining margin per barrel of throughput' is projected at $10.39, up from $9.73 in the same quarter last year [6]. - The 'U.S. West Coast region - Refining margin per barrel of throughput' is estimated at $16.18, compared to $14.86 in the previous year [6]. - The 'U.S. Gulf Coast region - Refining margin per barrel of throughput' is expected to be $10.80, slightly up from $10.36 year-over-year [7]. Throughput Volumes - 'Refining - Throughput volumes per day' is projected to be 2,797.77 thousand barrels, down from 3,010.00 thousand barrels in the previous year [7]. - The 'U.S. Gulf Coast region - Throughput volumes per day' is estimated at 1,787.60 thousand barrels, compared to 1,827.00 thousand barrels last year [8]. - The 'U.S. Mid-Continent region - Throughput volumes per day' is expected to be 399.23 thousand barrels, down from 438.00 thousand barrels year-over-year [9]. - The 'North Atlantic region - Throughput volumes per day' is projected at 334.68 thousand barrels, down from 469.00 thousand barrels in the previous year [10]. Stock Performance - Over the past month, Valero Energy shares have increased by 6.7%, outperforming the Zacks S&P 500 composite's increase of 5.9% [11].

A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive to provide readers with ample research and investment opportunities.Analyst’s Disclosure:I/we have a beneficial long position in the shares of VLO either through stock ownership, options, or other derivatives. I wrote this a ...

Core Viewpoint - The market anticipates a year-over-year decline in Valero Energy's earnings due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Valero Energy is expected to report quarterly earnings of $1.76 per share, reflecting a year-over-year decrease of 35.1% [3]. - Revenues are projected to be $27.84 billion, down 19.3% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 3.01% higher in the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +1.22% suggests analysts have recently become more optimistic about Valero's earnings prospects [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Valero currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Valero was expected to post earnings of $0.43 per share but delivered $0.89, resulting in a surprise of +106.98% [13]. - Over the past four quarters, Valero has beaten consensus EPS estimates three times [14]. Conclusion - Valero Energy is positioned as a compelling earnings-beat candidate, but investors should consider other factors influencing stock performance beyond earnings results [17].

Group 1 - Analyst has been writing on Seeking Alpha since 2018 and has over a decade of market experience [1] - Analyst has professional experience in private equity, real estate, and economic research [1] - Analyst possesses an academic background in financial econometrics, economic forecasting, and global monetary economics [1]