Operating Revenues (a)

 

 

Costs and Expenses:

Cost of Sales

Operating Expenses:

Refining

Retail

Ethanol

General and Administrative Expenses (3)

Depreciation and Amortization Expense

Asset Impairment Loss (4)

 

Total Costs and Expenses

 

 

Operating Income (Loss)

 

Other Income (Expense), Net

 

Interest and Debt Expense:

Incurred

Capitalized

 

Income (Loss) from Continuing Operations Before Income Tax Expense (Benefit)

Income Tax Expense (Benefit)

 

Income (Loss) from Continuing Operations

Income (Loss) from Discontinued Operations, Net of Income Taxes

 

 

Net Income (Loss)

 

 

Earnings (Loss) per Common Share:

Continuing Operations

Discontinued Operations

 

Total

 

 

Weighted Average Common Shares Outstanding (in millions)

 

Earnings (Loss) per Common Share — Assuming Dilution:

Continuing Operations

Discontinued Operations

 

Total

 

Weighted Average Common Shares Outstanding — Assuming Dilution (in millions) (5)

 

Supplemental Information:

(a) Includes excise taxes on sales by our U.S. retail system

Cash and Temporary Cash Investments

 

Total Debt

Refining

 

Retail:

U.S.

Canada

 

Total Retail

 

Ethanol

 

Total Before Corporate

Corporate

 

Total

 

 

Refining

 

Retail:

U.S.

Canada

 

Total Retail

 

Ethanol

 

Total Before Corporate

Corporate

 

Total

 

 

Throughput Margin per Barrel

 

Operating Costs per Barrel:

Operating Expenses

Depreciation and Amortization

 

Total Operating Costs per Barrel

 

 

Throughput Volumes (Mbbls per Day):

Feedstocks:

Heavy Sour Crude

Medium/Light Sour Crude

Acidic Sweet Crude

Sweet Crude

Residuals

Other Feedstocks

 

Total Feedstocks

Blendstocks and Other

 

Total Throughput Volumes

 

 

Yields (Mbbls per Day):

Gasolines and Blendstocks

Distillates

Petrochemicals

Other Products (6)

 

Total Yields

 

Operating Income (Loss)

Throughput Volumes (Mbbls per Day)

Throughput Margin per Barrel

Operating Costs per Barrel:

Operating Expenses

Depreciation and Amortization

 

Total Operating Costs per Barrel

 

 

Operating Income

Throughput Volumes (Mbbls per Day)

Throughput Margin per Barrel

Operating Costs per Barrel:

Operating Expenses

Depreciation and Amortization

 

Total Operating Costs per Barrel

 

 

Operating Income (Loss)

Throughput Volumes (Mbbls per Day)

Throughput Margin per Barrel

Operating Costs per Barrel:

Operating Expenses

Depreciation and Amortization

 

Total Operating Costs per Barrel

 

 

Operating Income

Throughput Volumes (Mbbls per Day)

Throughput Margin per Barrel

Operating Costs per Barrel:

Operating Expenses

Depreciation and Amortization

 

Total Operating Costs per Barrel

 

 

Operating Income (Loss) for Regions Above

Asset Impairment Loss Applicable to Refining

Loss Contingency Accrual Related to Aruba Tax Matter (8)

 

Total Refining Operating Income (Loss)

 

Company-Operated Fuel Sites (Average)

Fuel Volumes (Gallons per Day per Site)

Fuel Margin per Gallon

Merchandise Sales

Merchandise Margin (Percentage of Sales)

Margin on Miscellaneous Sales

Operating Expenses

 

Fuel Volumes (Thousand Gallons per Day)

Fuel Margin per Gallon

Merchandise Sales

Merchandise Margin (Percentage of Sales)

Margin on Miscellaneous Sales

Operating Expenses

 

Production (Thousand Gallons per Day)

Gross Margin per Gallon of Production

Operating Costs per Gallon of Production:

Operating Expenses

Depreciation and Amortization

 

Total Operating Costs per Gallon of Production

 

 

Feedstocks (at U.S. Gulf Coast):

West Texas Intermediate (WTI) Crude Oil

WTI Less Sour Crude Oil (9)

WTI Less Mars Crude Oil

WTI Less Maya Crude Oil

 

Products:

U.S. Gulf Coast:

Conventional 87 Gasoline Less WTI

Ultra-Low-Sulfur Diesel Less WTI

Propylene Less WTI

U.S. Mid-Continent:

Conventional 87 Gasoline Less WTI

Ultra-Low-Sulfur Diesel Less WTI

U.S. Northeast:

Conventional 87 Gasoline Less WTI

No. 2 Fuel Oil Less WTI

Lube Oils Less WTI

U.S. West Coast:

CARBOB 87 Gasoline Less WTI

CARB Diesel Less WTI

New York Harbor Corn Crush (Dollars per Gallon)

Valero acquired seven ethanol plants in the second quarter of 2009 and three ethanol plants in the first quarter of 2010. The Statement of Income Data includes the results of operations of those plants commencing on their respective acquisition or closing dates. The ethanol plants acquired in 2009 were purchased from VeraSun Energy Corporation. Of the three plants acquired in the first quarter of 2010, two were purchased from ASA Ethanol Holdings, LLC and the third was purchased from Renew Energy LLC. Ethanol production volumes reflected herein are based on total production during each period divided by actual calendar days per period.

During the fourth quarter of 2009, Valero permanently shut down its refinery in Delaware City, Delaware, and wrote down the book value of the refinery assets to net realizable value. On June 1, 2010, Valero sold the shutdown refinery assets and the terminal and pipeline assets also located in Delaware City to PBF Energy Partners LP for $220 million in proceeds. The results of operations of the shutdown refinery are reflected as discontinued operations for all periods presented. For the nine months ended September 30, 2010, those results include a gain of $92 million ($58 million after taxes) on the sale of the refinery assets. The gain primarily resulted from the scrap value of the refinery assets and the reversal of certain liabilities recorded in the fourth quarter of 2009 associated with the shutdown of the refinery, which will not be incurred because of the sale. The terminal and pipeline assets previously associated with the refinery were not shut down and continued to be operated until the date of their sale. The results of operations of those assets, including an insignificant gain on the sale, are reflected in continuing operations for all periods presented. The refining segment and Northeast Region operating highlights presented in this earnings release exclude the Delaware City Refinery for all periods.

General and administrative expenses for the nine months ended September 30, 2010 includes the recognition of a favorable settlement with one of Valero’s third-party insurers for $40 million. The settlement relates to Valero’s claim of insurance coverage in connection with losses incurred in prior periods, including a $40 million charge to general and administrative expenses in the third quarter of 2009, related to certain litigation.

The asset impairment loss for all periods presented relates primarily to the permanent cancellation of certain capital projects classified as “construction in progress” as a result of the unfavorable impact of the economic slowdown on refining industry fundamentals. The asset impairment loss applicable to the refining business segment has been excluded from refining operating expenses in determining operating costs per barrel. The after-tax amounts pertaining to the asset impairment loss reflected in the Statement of Income Data are $- million and $43 million for the three months ended September 30, 2010 and 2009, respectively, and $1 million and $135 million for the nine months ended September 30, 2010 and 2009, respectively.

Common equivalent shares have been excluded from the computation of diluted loss per common share for the three and nine months ended September 30, 2009 as the effect of including such shares would be antidilutive.

Primarily includes gas oils, No. 6 fuel oil, petroleum coke, and asphalt.

The regions reflected herein contain the following refineries: Gulf Coast- Corpus Christi East, Corpus Christi West, Texas City, Houston, Three Rivers, St. Charles, Aruba, and Port Arthur Refineries; Mid-Continent- McKee, Ardmore, and Memphis Refineries; Northeast- Quebec City and Paulsboro Refineries; and West Coast- Benicia and Wilmington Refineries.

A loss contingency accrual of $140 million ($.25 per share) was recorded in the third quarter of 2009 related to Valero’s dispute with the Government of Aruba regarding a turnover tax on export sales as well as other tax matters. The portion of the loss contingency accrual that relates to the turnover tax ($114 million) was recorded in cost of sales for the three and nine months ended September 30, 2009, and therefore is included in refining operating income (loss) but has been excluded in determining throughput margin per barrel.

The market reference differential for sour crude oil is based on 50% Arab Medium and 50% Arab Light posted prices.