UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission File Number 001-13175 VALERO ENERGY CORPORATION (Exact name of registrant as specified in its charter) Delaw ...

Financial Data and Key Metrics - Net income attributable to Valero stockholders was $364 million or $1 14 per share in Q3 2024 compared to $2 6 billion or $7 49 per share in Q3 2023 [6] - Refining segment operating income was $565 million in Q3 2024 compared to $3 4 billion in Q3 2023 [6] - Refining throughput volumes averaged 2 9 million barrels per day with 90% capacity utilization in Q3 2024 [6] - Renewable Diesel segment operating income was $35 million in Q3 2024 compared to $123 million in Q3 2023 [7] - Ethanol segment operating income was $153 million in Q3 2024 compared to $197 million in Q3 2023 [7] - Net cash provided by operating activities was $1 3 billion in Q3 2024 [8] - Capital investments were $429 million in Q3 2024 with $338 million allocated to sustaining the business [9] - The company returned $907 million to stockholders in Q3 2024 with a payout ratio of 84% [10] Business Segment Performance - Refining cash operating expenses were $4 73 per barrel in Q3 2024 [6] - Renewable diesel sales volumes averaged 3 5 million gallons per day in Q3 2024 up 552 000 gallons per day year-over-year [7] - Ethanol production volumes averaged 4 6 million gallons per day in Q3 2024 up 255 000 gallons per day year-over-year [7] - The Diamond Green Diesel Sustainable Aviation Fuel (SAF) project is mechanically complete and in the process of starting up [4] Market Data and Key Metrics - U S wholesale volumes exceeded 1 million barrels per day for the second consecutive quarter [4] - Gasoline sales were flat year-over-year while diesel sales increased year-over-year [16] - Gasoline exports in Q3 2024 were about 100 000 barrels per day primarily to Latin America and Canada [17] - Diesel exports in Q3 2024 were 260 000 barrels per day primarily to South America and Europe [17] Company Strategy and Industry Competition - The company remains committed to enhancing earnings capability and expanding long-term competitive advantage [4] - Improving diesel demand and low light product inventories are expected to support refining margins [5] - OPEC plus crude supply increases are expected to widen sour crude oil differentials and increase margins [5] - The company expects product demand to exceed supply due to announced refinery shutdowns and limited capacity additions beyond 2025 [5] Management Commentary on Operating Environment and Future Outlook - The third quarter reflected a period of heavy maintenance in the refining segment during a relatively weak margin environment [4] - The company expects refining throughput volumes to fall within specific ranges across different regions in Q4 2024 [12] - Renewable diesel sales volumes are expected to be approximately 1 2 billion gallons in 2024 [13] - Ethanol production is expected to average 4 7 million gallons per day in Q4 2024 [13] Other Important Information - The company ended Q3 2024 with $8 4 billion of total debt $2 5 billion of finance lease obligations and $5 2 billion of cash and cash equivalents [11] - The debt-to-capitalization ratio net of cash and cash equivalents was 17% as of September 30 2024 [11] - The company expects capital investments attributable to Valero for 2024 to be approximately $2 billion [11] Q&A Session Summary Question: Demand for key products and trends [15] - Demand for gasoline is flat to slightly up while diesel demand has increased year-over-year [16] - Total light products in the U S are flat to slightly down year-over-year [17] - Export demand for gasoline and diesel remains strong particularly in Latin America and Europe [17] Question: Capital allocation and buyback program [23] - The company has a minimum commitment of 40% to 50% for shareholder returns and has consistently exceeded this despite margin pullbacks [24] - Excess free cash flow will continue to go towards buybacks [25] Question: California refinery operations and regulatory pressures [26] - California regulatory environment is increasing pressure on operators and all options are on the table for the company's West Coast operations [30] - The company has minimized strategic CapEx in California and maintains reliable operations as a core call option on West Coast cracks [30] Question: Global product supply and trade flows [32] - Net capacity additions of 300 000 barrels per day are expected in 2025 with tightening balances anticipated [33] - The company expects an extended period of tighter refining margins due to limited capacity additions and growing product demand [33] Question: Renewable diesel and SAF operations [34] - The SAF project startup is progressing well with strong commercial interest and contracting [35] - The company expects the SAF project to exceed its minimum return threshold of 25% after tax [36] Question: Refinery utilization and potential closures [38] - The company expects additional refinery closures globally particularly in Europe and the Far East [41] - Refinery utilization rates are expected to align with historic levels but some capacity may require significant capital investment [39] Question: California refinery cost competitiveness [42] - The West Coast operations are the company's highest cost structure due to regulatory environment and crude supply challenges [42] - The company positions its West Coast assets as a call option for when supply imbalances occur [42] Question: California regulatory impact and political interference [44] - California policies have historically increased costs for consumers and impaired supply [29] - The company is monitoring regulatory developments and will react accordingly [45] Question: Diesel demand trends [46] - Diesel demand has shown a 5% year-over-year increase in the last two weeks with tightening inventories heading into winter [46] Question: Ethanol production and export opportunities [70] - Ethanol production guidance for Q4 2024 is at an all-time record due to expanded export markets and increased global interest in ethanol [70] - The company has grown its ethanol capacity in anticipation of global demand increases [70] Question: Financial framework and balance sheet usage [73] - The company targets a cash balance of $4 billion to $5 billion in a normalized environment and expects to trend down from current levels [73] - The $4 billion cash balance provides flexibility to continue buybacks during downturns [74] Question: Product exports and market dynamics [75] - Gasoline inventories are low indicating a pull rather than a push for exports [75] - The company is able to sell to international markets at a higher price than the U S Gulf Coast [76]

Valero Energy Corporation (VLO) reported third-quarter 2024 adjusted earnings of $1.14 per share, which missed the Zacks Consensus Estimate of $1.29. The bottom line also declined from $7.49 reported in the yearago quarter. Total quarterly revenues decreased from $38,404 million in the prior-year quarter to $32,876 million. The top line also missed the Zacks Consensus Estimate of $33,041 million. The weak quarterly results can be primarily attributed to a significant decline in refining throughput volumes. ...

Valero Energy (VLO) came out with quarterly earnings of $1.14 per share, missing the Zacks Consensus Estimate of $1.29 per share. This compares to earnings of $7.49 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -11.63%. A quarter ago, it was expected that this oil refiner would post earnings of $2.61 per share when it actually produced earnings of $2.71, delivering a surprise of 3.83%.Over the last four quarters, the company ...

[Valero Energy Q3 2024 Earnings Release](index=1&type=section&id=Valero%20Energy%20Reports%20Third%20Quarter%202024%20Results) [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Valero reported a significant decrease in Q3 2024 net income to $364 million, while returning $907 million to stockholders and completing its DGD Port Arthur SAF project Q3 2024 Key Financial Results | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net Income Attributable to Valero Stockholders | $364 million | $2.6 billion | | Earnings Per Share | $1.14 | $7.49 | - Returned **$907 million** to stockholders, comprising **$342 million** in dividends and **$565 million** in stock buybacks[1](index=1&type=chunk)[6](index=6&type=chunk) - Successfully completed the Diamond Green Diesel (DGD) Port Arthur Sustainable Aviation Fuel (SAF) project in October[1](index=1&type=chunk)[9](index=9&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) All primary business segments experienced a year-over-year decline in Q3 2024 operating income, with Refining, Renewable Diesel, and Ethanol segments reporting significant decreases Operating Income by Segment (Q3 2024 vs. Q3 2023) | Segment | Q3 2024 Operating Income | Q3 2023 Operating Income | | :--- | :--- | :--- | | Refining | $565 million | $3.4 billion | | Renewable Diesel | $35 million | $123 million | | Ethanol | $153 million | $197 million | [Refining](index=1&type=section&id=Refining) The Refining segment's Q3 2024 operating income sharply declined to $565 million, alongside decreased throughput volumes due to maintenance activities Refining Segment Performance | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Operating Income | $565 million | $3.4 billion | | Throughput Volumes (barrels/day) | 2.9 million | 3.022 million | Refining Margin per Barrel of Throughput | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Refining Margin per Barrel | $9.09 | $19.47 | | Adjusted Operating Income per Barrel | $2.14 | $12.41 | [Renewable Diesel](index=1&type=section&id=Renewable%20Diesel) Renewable Diesel operating income decreased to $35 million in Q3 2024 despite increased sales volumes, indicating significant margin compression Renewable Diesel Segment Performance | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Operating Income | $35 million | $123 million | | Sales Volumes (gallons/day) | 3.5 million | 2.992 million | Renewable Diesel Margin per Gallon of Sales | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Renewable Diesel Margin per Gallon | $0.60 | $0.95 | | Operating Income per Gallon | $0.11 | $0.45 | [Ethanol](index=1&type=section&id=Ethanol) The Ethanol segment's Q3 2024 operating income declined to $153 million despite an increase in production volumes Ethanol Segment Performance | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Operating Income | $153 million | $197 million | | Production Volumes (gallons/day) | 4.6 million | 4.329 million | Adjusted Ethanol Operating Income per Gallon of Production | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Adjusted Operating Income per Gallon | $0.36 | $0.49 | [Corporate and Other](index=1&type=section&id=Corporate%20and%20Other) General and administrative expenses decreased in Q3 2024, with an effective tax rate of 20 percent for the quarter - General and administrative expenses decreased to **$234 million** in Q3 2024 from **$250 million** in Q3 2023[5](index=5&type=chunk) - The effective tax rate for Q3 2024 was **20 percent**[5](index=5&type=chunk) [Financial Position and Shareholder Returns](index=1&type=section&id=Financial%20Position%20and%20Shareholder%20Returns) Valero maintained a strong financial position with $5.2 billion in cash and a 17% net debt-to-capitalization ratio, returning $907 million to stockholders in Q3 2024 - Remains committed to a through-cycle minimum annual payout ratio of **40 to 50 percent** of adjusted net cash provided by operating activities[6](index=6&type=chunk) - The CEO emphasized a continued focus on operational excellence, capital discipline, and honoring the commitment to shareholder returns[7](index=7&type=chunk) [Investing and Financing Activities](index=1&type=section&id=Investing%20and%20Financing%20Activities) Q3 2024 net cash from operating activities was $1.3 billion, with $429 million in capital investments and $907 million returned to stockholders through dividends and buybacks Q3 2024 Cash Flow and Investments | Metric | Amount | | :--- | :--- | | Net Cash Provided by Operating Activities | $1.3 billion | | Adjusted Net Cash Provided by Operating Activities | $1.1 billion | | Capital Investments | $429 million | | Sustaining Capital Investments | $338 million | Q3 2024 Shareholder Returns | Type | Amount | | :--- | :--- | | Dividends Paid | $342 million | | Stock Buybacks | $565 million | | **Total Returns** | **$907 million** | [Liquidity and Financial Position](index=2&type=section&id=Liquidity%20and%20Financial%20Position) As of September 30, 2024, Valero maintained a strong financial position with $5.2 billion in cash and a 17% net debt-to-capitalization ratio Financial Position as of September 30, 2024 | Metric | Amount | | :--- | :--- | | Total Debt | $8.4 billion | | Finance Lease Obligations | $2.5 billion | | Cash and Cash Equivalents | $5.2 billion | | Debt to Capitalization Ratio (net of cash) | 17% | [Strategic Update](index=2&type=section&id=Strategic%20Update) Valero successfully completed its DGD Port Arthur Sustainable Aviation Fuel (SAF) project, enabling conversion of half its renewable diesel capacity to SAF and capitalizing on low-carbon fuel demand - The SAF project at the DGD Port Arthur plant was completed in October, on schedule and under budget[9](index=9&type=chunk)[11](index=11&type=chunk) - The project provides the plant the optionality to upgrade approximately **50%** of its current **470 million gallon** annual renewable diesel production capacity to SAF[9](index=9&type=chunk) [Detailed Financial Tables](index=5&type=section&id=Detailed%20Financial%20Tables) This section provides unaudited financial tables for Q3 and nine months ended September 30, 2024, including consolidated, segment, and other key financial data with GAAP to non-GAAP reconciliations [Consolidated Financial Highlights](index=5&type=section&id=Consolidated%20Financial%20Highlights) Q3 2024 consolidated revenues decreased to $32.9 billion, with net income attributable to Valero stockholders sharply declining to $364 million Consolidated Statement of Income Data (Three Months Ended Sep 30) | Metric (in millions) | 2024 | 2023 | | :--- | :--- | :--- | | Revenues | $32,876 | $38,404 | | Operating Income | $507 | $3,503 | | Net Income Attributable to Valero | $364 | $2,622 | | Earnings per Share - Diluted | $1.14 | $7.49 | [Segment Financial Highlights](index=6&type=section&id=Segment%20Financial%20Highlights) Q3 2024 operating income for Refining, Renewable Diesel, and Ethanol segments were $565 million, $35 million, and $153 million respectively, all lower than prior year Operating Income by Segment (Three Months Ended Sep 30, in millions) | Segment | 2024 | 2023 | | :--- | :--- | :--- | | Refining | $565 | $3,445 | | Renewable Diesel | $35 | $123 | | Ethanol | $153 | $197 | | Corporate and Eliminations | $(246) | $(262) | | **Total Operating Income** | **$507** | **$3,503** | [Segment Operating Highlights](index=11&type=section&id=Segment%20Operating%20Highlights) Q3 2024 operating statistics show Refining throughput at 2,884 thousand barrels per day, Renewable Diesel sales at 3,544 thousand gallons per day, and Ethanol production at 4,584 thousand gallons per day, with declining per-unit margins Key Operating Volumes (per day, Q3 2024 vs Q3 2023) | Segment | Unit | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Refining | Thousand Barrels | 2,884 | 3,022 | | Renewable Diesel | Thousand Gallons | 3,544 | 2,992 | | Ethanol | Thousand Gallons | 4,584 | 4,329 | [Other Financial Data](index=19&type=section&id=Other%20Financial%20Data) As of September 30, 2024, the balance sheet shows total equity of $28.0 billion and total debt of $10.8 billion, with adjusted net cash from operations at $4.6 billion for the first nine months Balance Sheet Data (in millions) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $5,184 | $5,424 | | Total debt and finance lease obligations | $10,806 | $11,524 | | Total equity | $28,000 | $28,524 | [Appendix](index=3&type=section&id=Appendix) This section provides corporate information, legal disclaimers, and detailed explanations of non-GAAP financial measures, including definitions and reconciliations to GAAP equivalents [About Valero](index=3&type=section&id=About%20Valero) Valero Energy Corporation is a multinational manufacturer and marketer of petroleum-based and low-carbon transportation fuels, operating through Refining, Renewable Diesel, and Ethanol segments - Valero owns **15 petroleum refineries** with a combined throughput capacity of approximately **3.2 million barrels per day**[13](index=13&type=chunk) - Valero is a joint venture partner in Diamond Green Diesel, which has a combined renewable diesel production capacity of **1.2 billion gallons per year**[13](index=13&type=chunk) - The company owns **12 ethanol plants** with a combined production capacity of approximately **1.6 billion gallons per year**[13](index=13&type=chunk) [Safe-Harbor Statement](index=3&type=section&id=Safe-Harbor%20Statement) This standard safe-harbor statement warns that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially due to various external factors - Forward-looking statements cover expectations for low-carbon fuels strategy, project performance, market conditions, and future financial performance[14](index=14&type=chunk)[16](index=16&type=chunk) - Actual results may differ due to factors including legislative changes, market dynamics, inflation, geopolitical conflicts, and other risks detailed in SEC filings[16](index=16&type=chunk) [Use of Non-GAAP Financial Information](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Information) Valero explains its use of non-GAAP financial measures, such as adjusted net income and segment margins, to facilitate period-over-period comparison by excluding non-core items, with reconciliations provided - The report uses non-GAAP measures including adjusted net income, adjusted EPS, segment margins (Refining, Renewable Diesel, Ethanol), and adjusted net cash provided by operating activities[17](index=17&type=chunk)[47](index=47&type=chunk) - Valero believes these non-GAAP measures provide improved comparability by adjusting for items not indicative of core operating performance[48](index=48&type=chunk)

Investors looking for the lowest cost refiner should look no further than Valero Energy (NYSE: VLO ). The company's operating structure provides a wide moat advantage that allows the company to produce strong financial results even inI am a Licensed Professional Engineer who works in the Nuclear Power industry. I use my professional working knowledge of the power/energy industries to aid in evaluating potential equities worthy of long-term investment. I invest in income producing equities and rental real es ...

Valero Energy Corporation (VLO) is set to report third-quarter 2024 results on Oct. 24, before the opening bell.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.In the last reported quarter, Valero Energy’s adjusted earnings of $2.71 per share beat the Zacks Consensus Estimate of $2.61, primarily due to an increase in refining throughput volumes. Earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 11.52%. This is depi ...

In the latest market close, Valero Energy (VLO) reached $137.04, with a +0.29% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 0.4%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.63%.The oil refiner's stock has dropped by 1.47% in the past month, exceeding the Oils-Energy sector's loss of 7.82% and lagging the S&P 500's gain of 3.76%.Investors will be eagerly watching for the performance of Valero Energy in its upcoming earnings disclosure. The ...

The latest trading session saw Valero Energy (VLO) ending at $142.34, denoting a -0.26% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.61%. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, added 0.33%.Coming into today, shares of the oil refiner had gained 6.4% in the past month. In that same time, the Oils-Energy sector lost 2.26%, while the S&P 500 gained 5.36%.The investment community will be closely monitoring the performance o ...

Company Performance - Valero Energy (VLO) closed at $137.47, with a daily increase of +1.81%, outperforming the S&P 500's loss of 0.93% [1] - Over the last month, Valero's shares decreased by 7.97%, underperforming the Oils-Energy sector's loss of 2.51% and the S&P 500's gain of 2.17% [1] - The upcoming earnings report on October 24, 2024, is projected to show earnings of $2.09 per share, reflecting a year-over-year decline of 72.1%, with expected quarterly revenue of $33.46 billion, down 12.87% from the previous year [1] Analyst Estimates - For the fiscal year, Zacks Consensus Estimates project earnings of $10.26 per share and revenue of $131.86 billion, indicating declines of -58.8% and -8.92% respectively from the prior year [2] - Recent changes in analyst estimates indicate a downward shift of 16.54% in the Zacks Consensus EPS estimate, leading to a Zacks Rank of 5 (Strong Sell) for Valero Energy [3] Valuation Metrics - Valero Energy has a Forward P/E ratio of 13.15, which is a discount compared to the industry's average Forward P/E of 15.35 [3] - The company also has a PEG ratio of 3.29, aligning with the average PEG ratio of the Oil and Gas - Refining and Marketing industry [3] Industry Context - The Oil and Gas - Refining and Marketing industry is currently ranked 236 in the Zacks Industry Rank, placing it in the bottom 7% of over 250 industries [4] - The Zacks Industry Rank measures the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [4]