Who We Are Worlds Largest Independent Refiner 15 refineries, 2.9 million barrels per day (BPD) of high-complexity throughput capacity Greater than 70% of refining capacity located in U.S. Gulf Coast and Mid-Continent Approximately…
Assets Concentrated in Advantaged Locations Capacities (MBPD) Nelson Refinery Throughput Crude Index Corpus Christi 325 205 19.9 Houston 175 90 15.4 Meraux 135 125 9.7 Port Arthur 375 335 12.4 St. Charles 290 215 16.0 Texas City 260…
Key Market Trends U.S. and Canadian crude oil, natural gas, and natural gas liquids (NGLs) production growth is providing cost advantages to North American refiners - Lower crude prices may temporarily constrain production growth…
Production Growth Provides Resource Advantage to North American Refiners U.S. Crude Oil Production and U.S. Natural Gas Production MBPD Imports (Bcf/day) 10,500 75 Imports 9,500 Production 70 65 8,500 60 7,500 55 6,500…
Global Petroleum Demand Projected to Grow Emerging markets in Latin America, Middle East, Africa, and Asia lead demand growth World Petroleum Demand Growth MMBPD 3.5 2.5 1.5 0.5 -0.5 -1.5 U.S. OECD (excl. U.S.)…
U.S. Is Growing Product Exports Market Share Refiners in U.S. Gulf Coast are the largest source of products exported to Latin America and countries in the Atlantic Basin U. S. Product Exports By Source U. S. Product Exports By…
Strategy to Enhance Stockholder Returns Demonstrate commitment to safe and reliable operations Operations Continuously improve our excellent operating performance Excellence Optimize margins with refining systems feedstock and…
Persistent Focus Drives Results in Safety, Environmental, and Regulatory Compliance Personnel Safety Tier 1 Process Safety Environmental Events 1.8 0.20 40 20 1.6 Employees Total Recordable Incident Rate (TRIR) Contractors…
Excellent Operating Performance through Continuous Improvements Reliability drives safe and 1st profitable operations Quartile 2012 Seven of our refineries are first 2010 quartile in mechanical availability 2nd Quartile 2008…
Investments, Operations Excellence, and Commercial Optimization Drive High Utilization Valero Refinery Utilization Rates System-wide mechanical availability near 1st quartile since 2011 96% 95% 92% 92% 88% 87% 2010…
Capital Allocation Framework Emphasizes Discipline and Stockholder Returns Non-Discretionary Sustaining Capex Dividend Growth Debt and Cash Estimate 1.5 billion or Focus on sustainability Maintain investment lower annual stay-in-…
Increasing Dividends and Stock Buybacks Dividend Per Share of Valero Increased dividend by 45% in 0.40 1Q15 versus 4Q14 0.35 0.30 Regular dividend increases over 0.25 0.20 last three years 0.15 Accelerated stock buybacks…
Advancing Growth Investments While Managing Capital Spending Lower millions 2,650 2,400 Logistics Growth 400 715 Refining, Renewables, & Other 790 Growth (1) 300 Turnarounds & Catalyst 695 655 Sustaining 765 730 2015E…
Logistics Investments Enhance Valeros Feedstock Flexibility and Export Capability Pipelines Connection to Centurion pipeline in Childress, TX and incremental 40 to 50 MBPD Midland-priced crude as substitute for Cushing-priced crude…
Crude Topper Investments Very Attractive 160 MBPD new topping capacity Combined Projects Estimates designed to process up to 50 API Total investment(1) 750 MM domestic sweet crude Annual EBITDA contribution(2) 500 MM Unlevered IRR…
Investments in Natural Gas and NGLs Upgrading Increase distillate yield partially from hydrogen via natural gas Completed Merauxs 20 MBPD capacity expansion in 4Q14; Hydrocracker expect approximately 90 million annual EBITDA…
Sponsored MLP Valero Energy Partners (NYSE:VLP) Valero owns entire 2% general partner interest, all incentive Growth-oriented distribution rights, and 69.6% LP interest logistics MLP with High-quality assets integrated with Valeros…
VLP Delivering Growth 1st acquisition Texas Crude Adjusted EBITDA Attributable to VLP Systems Business in July 2014 (millions) for 154 million 200 2nd acquisition Houston and St. Charles Terminal Services Business in March 2015…
Significant Inventory of Estimated MLP Eligible EBITDA at Valero millions 46 814 800 (15) 34 24 (75) Dec 2013 July 2014 Drop March 2015 Drop 2014 - 2015 2016 - 2017 Diamond Pipeline Current Guidance Guidance (with Down…
Estimated Inventory of Eligible MLP Assets Pipelines(1) Over 1,200 miles of active pipelines Expect start-up of 440-mile Diamond Pipeline from Cushing to Memphis refinery in 1H17 Racks, Terminals, and Storage(1) Over 100 million…
We Believe VLO Is an Excellent Investment Majority of capacity has access to cost-advantaged crude, natural gas, NGLs, and corn Proven operations excellence Emphasis on capital allocation to stockholders Discipline and rigor in…
Appendix Topic Pages Valero 2014 Highlights and 2015 Goals 26-27 Ethanol Segment 28 Capital Spending and Key Investment Details 29-39 Valero Energy Partners LP 40-41 Refining Operations Highlights 42-46 Macro Outlook and Key Margin…
Key 2014 Highlights Operations Excellence Achieved record annual system refinery capacity utilization of approximately 96% in 2014 Increased average consumption of price-advantaged North American light sweet crudes in 2014 by…
Key Goals Expected in 2015 Operations Excellence Start up Montreal crude terminal with the Enbridge Line 9B reversal and lower Quebec refinerys crude costs versus Brent compared to 2014 Grow product export market share and increase…
Ethanol Investments Have Performed Well 11 plants acquired between Cumulative Capex and EBITDA 2Q09 and 1Q14 for 794MM, millions Excellent less than 35% of replacement 2,254 value Acquisitions 1.3 billion gallons total annual…
Refining & Renewables Capital Focused on Capturing Benefits of Key Long-Term Trends millions 790 40 150 Nat Gas & Petchems 110 Other Projects 300 Hydrocracking 490 115 Advantaged Crude Processing 105 30 50 2015E 2016E…
Allocating Significant Growth Capital to Logistics millions 715 5 Marine, Docks and Other Logistics Pipelines and Tanks 400 45 665 Railcars and Unloading 180 175 45 2015E 2016E Railcars spending declines as receipt of…
Gated Investment Management Process PHASE 1 PHASE 2 PHASE 3 PHASE 4 APPROVED Opportunity Lead Case Refinement Execution Startup and Evaluation Development Define project Detail Evaluate Identify Select lead case scope and engineering,…
McKee Diesel Recovery Improvement and CDU Expansion Startup Expected in 2H15 Project Estimates Investment Highlights Total investment 140 MM Adding 25 MBPD crude unit capacity Annual EBITDA contribution(1) 100 MM and parallel light…
Meraux Hydrocracker Conversion Completed December 2014 Project Estimates Investment Highlights Total investment 260 MM Converted hydrotreater into high- Annual EBITDA contribution(1) 90 MM pressure hydrocracker and Unlevered IRR…
Houston and Corpus Christi Crude Topping Units Expected Online in 1st Half of 2016 Houston Corpus Christi Houston Estimates Incremental Volume (MBPD) Estimates Incremental Volume (MBPD) Feeds Feeds Eagle Ford crude 90 Eagle Ford…
Diamond Pipeline Project Estimates Investment Highlights Total investment(1) 484 MM Valero holds option until January Cumulative spend through 2014 Zero 2016 to acquire 50% interest in Annual EBITDA contribution(2) 46 MM pipeline…
Estimated Key Price Sensitivities on Project Economics McKee Diesel Corpus Change in Estimated EBITDA(1) Relative to 2014(2) Prices Recovery & CDU Meraux HCU Christi Houston (millions/year) Expansion Expansion Topper Topper ICE Brent,…
Port Arthur and St. Charles Hydrocrackers Performing Better Than Expected 120 MBPD of combined new capacity successfully started end of 2012 and mid-2013 Designed to produce high-quality distillates from low-quality feedstocks and…
Port Arthur and St. Charles Hydrocrackers Performance Details Benefits Realized in Reported Results Trailing 4 Quarters mm, except /bbl amounts 4Q12 3Q14 Increase Gulf Coast Capture Rate 58.8% 63.2% 4.4% x Gulf Coast Indicator/bbl,…
Drop Down of Houston and St. Charles Terminal Services Business to VLP Operations Financing Crude oil, intermediates, and refined 671 million transaction closed on petroleum product terminaling services March 1, 2015 in Houston,…
Valeros GP Interest in VLP Nearing the High Splits Marginal Percentage Interest in Distributions Target Quarterly Distribution per Unit Unitholders GP Minimum quarterly 0.2125 98% 2% First target above 0.2125 up to 0.244375 98%…
Valeros Light Crude Processing Capacity in North America MBPD McKee Crude Unit Expansion 25 MBPD additional capacity expected in 2H15 Distillate recovery improvements Houston Crude Topper 90 MBPD capacity expected 1H16 1,410…
Valero Leads Peers in Total Location-Advantaged Crude Capacity MBPD 1,948 1,714 Eastern Canada U.S. Gulf Coast 1,216 U.S. Midcontinent 443 129 VLO MPC PSX HFC TSO Source: Company 10-K reports. Crude distillation…
Expect Quebec City Refinery to Have Cost-Advantaged Access to 100% North American Crude in 2015 Quebec City Refinery Crude Slate 100% 80% Foreign 60% Imports 40% North American 20% 0% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14…
U.S. Natural Gas Provides Opex and Feedstock Cost Advantages Valeros refining operations consume approximately 864,000 mmBtu/day of natural gas, split almost equally between operating expense and cost of goods sold Significant…
Capacity to Export Additional Product Export markets pull volume from Valeros U.S. Product Exports (MBPD) U.S., enabling high refinery 700 utilization and improved margins 600 Gasoline Diesel Supported by global refined 500…
Long-Term Macro Market Expectations Economic activity and total petroleum demand increases Transportation fuels demand grows Global Outlook Refining capacity growth slows after 2015; utilization stabilizes then expected to increase…
U.S. and Canadian Production Growth Provides Crude Cost Advantage to North American Refiners U.S. and Canadian Crude Production vs. U.S. Crude Imports MMBPD 18 Largest growth from U.S. shale crude and heavy 16 Canadian crude 14…
Estimated Crude Oil Transportation Costs Alberta to Eastern Canada Rail 11 to 12/bbl Rail 9/bbl Alberta to Bakken 1 to 2/bbl U.S. Ship Bakken 4 to USGC to Canada 5/bbl Foreign Ship 2/bbl to USEC to West Coast Rail 12 to Rail…
Valeros Regional Refining Indicator Margins /bbl Midcontinent WTI Cracking West Coast ANS Medium Sour Coking 25 North Atlantic Brent Cracking Gulf Coast Heavy Sour Coking 20 15 10 5 2004 2005 2006 2007 2008 2009…
Regional Indicator Margins Defined Gulf Coast Indicator: (GC Colonial 85 CBOB A grade- LLS) x 60% + (GC ULSD 10ppm Colonial Pipeline prompt - LLS) x 40% + (LLS - Maya Formula Pricing) x 40% + (LLS - Mars Month 1) x 40% Midcontinent…
Low Cost U.S. Natural Gas Provides Competitive Advantage U.S. natural gas is significantly discounted to Brent on an energy equivalent basis Prices expected to remain low and disconnected from global oil and gas markets for…
U.S. Refining Capacity Is Globally Competitive and Continues to Take Market Share U.S. flipped from importer to exporter on lower local product demand and higher refinery utilization, particularly in PADDS 2, 3, and 4, driven by…
World Refinery Capacity Growth New capacity additions expected in Asia and the Middle East Announced new capacity in Latin America likely to be smaller and start later than planned Capacity rationalization expected to continue in…
Capacity Rationalization in Atlantic Basin Marginal refiners continue to rationalize capacity Closures in the last few years have been focused in Japan, Australia, and Europe MPBD Annual Global CDU Capacity MBPD Cumulative Global…
Global Refining Capacity Rationalization CDU Capacity Year CDU Capacity Year Location Owner Closed (MBPD) Closed Location Owner Closed (MBPD) Closed Perth Amboy, NJ Chevron 80 2008 Rome, Italy Total/Erg 88 2012 Bakersfield, CA Big West…
Global Refining Capacity For Sale or Under Strategic Review Location Owner CDU Capacity (MBPD) Lytton, Australia Caltex 109 Nishihara, Japan Petrobras/Sumitomo 95 Inchon, Korea SK Energy 270 Whitegate, Ireland Phillips 66 71 Barbers…
U.S. Crude Fundamentals U.S. Crude Inventory (MB) 500,000 480,000 460,000 440,000 420,000 400,000 380,000 360,000 340,000 5 Yr Range 5 Yr Low 2013 2014 2015 2010 - 2014 Avg. 320,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec…
U.S. Gasoline Fundamentals USGC Brent Gasoline Crack (per bbl) 9.4 U.S. Gasoline Demand (mmbpd) 24 20 9.2 16 12 9.0 8 8.8 4 0 8.6 -4 8.4 -8 -12 8.2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul…
U.S. Distillate Fundamentals USGC Brent ULSD Crack (per bbl) U.S. Distillate Demand (mmbpd) 25 4.6 4.4 20 4.2 4.0 15 3.8 3.6 10 3.4 5 3.2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov…
U.S. Transport Indicators U.S. VMT Growth vs. Gasoline Demand Growth Airline Traffic Indicators U.S. Gasoline Demand Growth 3.5 International U.S. VMT Growth 3.0 Domestic 85% Source: U.S. DOE PSM / U.S. DOT FHA 5.0% Most recent…
U.S. Transport Indicators: Trucking ATA Seasonally Adj Truck Tonnage Index ATA Non-Seasonally Adj Truck Tonnage Index 140 145 Current Year Current Year 135 12-Mth Moving Avg 12-Mth Moving Avg 135 130 125 125 Index, 2000 = 100…
Increase in U.S. Gasoline Exports 800 12 Month Moving Average, MBPD 700 Other Europe 600 Other Latin America 500 Mexico Canada 400 Latest 4 Wk avg estimate (Finished only) 300 200 100 0 2005 2006 2007 2008 2009 2010 2011…
Decrease in U.S. Gasoline Imports 12 Month Moving Average, MBPD Other 1400 Europe 1200 Other Latin America Canada 1000 Latest 4 Wk avg estimate (Fin+Blendstock) 800 600 400 200 0 2005 2006 2007 2008 2009 2010 2011 2012 2013…
Increase in U.S. Diesel Exports 1400 12 Month Moving Average, MBPD 1200 Other 1000 Europe Other Latin America 800 Mexico Canada 600 Latest 4 Wk avg estimate 400 200 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014…
U.S. Is Net Refined Products Exporter Valeros share of U.S. exports has averaged 20% to 25% over the past few years MMBPD 21 U.S. Demand for Refined Products and Net Trade 20 U.S. Petroleum Demand Excluding Ethanol and Non-Refinery…
U.S. Shifted to Net Exporter Net refined products exports increased from 335 MBPD in 2010 to 2,504 MBPD in 2015 Diesel net exports averaged 919 MBPD in 2014; 651 MBPD in 2015 (Jan-Feb) Gasoline net exports averaged 66 MBPD in 2014;…
Loading...
