Safe Harbor Statement Statements contained in this presentation that state the companys or managements expectations or predictions of the future are forwardlooking statements intended to be covered by the safe harbor provisions of the…
Who We Are Operator of One of North Americas Worlds Largest Wholesale Fuels Liquids-Focused Largest Renewable Independent Refiner Marketer Logistics Assets Fuels Producers 15 refineries, 2.9 General partner and Approximately…
Strong Gulf Coast and Mid-Continent Presence Refineries and ethanol plants are in advantaged locations 4
Current Macro Environment COST SUPPLY DEMAND STRUCTURE 1 2 3 4 Abundant North American Forecasted Demand response supply of crude logistics world GDP growth to lower product oil and natural infrastructure prices gas…
Production Growth Provides Resource Advantage to North American Refiners U.S. Crude Oil Production U.S. Natural Gas and Imports Production (MBPD) (Bcf/day) Imports Production 74 9,527 9,212 7,257 58 5,475 Source: DOE,…
Safety and Reliability are Imperative for Profitability Personnel Safety Tier 1 Process Safety Process Safety Event 1.60 Total Recordable Incident Employees Contractors 0.19 0.97 Industry Rate (TRIR) 0.75 Rate…
Leader in Refinery Complexity and Clean Product Yields Nelson Complexity Index 1H15 Clean Product Yields (As Percentage of Total Products) 12.4 12.3 91% 86% 11.5 84% 83% 11.1 10.9 78% VLO HFC TSO MPC PSX HFC VLO PSX…
Leader in Location-Advantaged CDU Capacity and Our Gulf Coast Assets Have Flexible Feed Slates Location-Advantaged CDU Capacity Feedstock Ranges in Gulf Coast (MBPD) (2010 2015) 37% 1,948 Eastern Canada 34% 1,731 U.S. Gulf Coast…
Our System Enables Optimization of Product Exports and Netbacks VLOs U.S. Product Exports (MBPD) Diesel Gasoline 472 412 221 164 308 255 Distillate 69 86 Gasoline 2011 2012 2013 2014 1H15 Current Potential Capacity…
Location Advantage, Feedstock Flexibility and Low Opex Deliver Strong Operating Income 1H15 Refining Operating Expenses 1H15 Refining Operating Income Per Per Barrel Throughput Barrel of Product Yield (Includes Cash Costs and D&A)…
Current Capital Allocation Framework Non-Discretionary Sustaining Capex Dividend Growth Debt and Cash Estimate 1.5 billion or Should be sustainable Maintain investment lower annual spend Compete for cash flow grade credit rating…
Investing in Logistics and Higher Margin Businesses Capital Expenditures (millions) 2,650 Logistics 2,400 400 Light Crude Processing, Natural Gas and NGLs Upgrading (1) 715 790 Turnarounds & Catalyst 300 Sustaining 695…
Investing in Feedstock Flexibility Light Crude 160 MBPD total new topping capacity at Corpus Christi and Houston refineries to process up to 50 API sweet crude Replaces approximately 55 MBPD of purchased low sulfur resid for…
Investing to Increase High Value Product Yields Distillate Alkylate Methanol Merauxs hydrocracker New 13 MBPD alkylation unit 1.6 1.7 million TPY expansion (1) in 4Q14 at Houston refinery (36 38 MBPD) production increased…
Delivering High Cash Returns to Stockholders is One of Our Priorities 75% total payout target for 2015 75% Target 61% YTD 51% 51% Buybacks (MM) 31% Dividends (MM) 25% 1,807 Payout Ratio 1,296 928 992 281 349 554 360 462…
Our Sponsored MLP Valero Energy Partners (NYSE:VLP) Logistics MLP VLO owns entire 2% general partner interest, all incentive distribution rights and 69.6% LP interest High-quality assets integrated with Valeros refining system…
Expect 1 Billion of Drop-Down Transactions to VLP in 2015 Adjusted EBITDA Attributable to VLP (millions) 200 95 4Q14 4Q15E Annualized Annualized Sold Houston and St. Charles Terminals to VLP for 671 MM in March 2015…
More Than 1 Billion of Estimated MLP Eligible EBITDA Inventory Racks, Terminals, Fuels Pipelines(1) Rail Marine(1) and Storage(1) Distribution Over 1,200 miles Over 100 million Three crude 51 docks Approximately of active…
Renewables Business Has Performed Well Ethanol 11 plants with 1.3 billion gallons total annual production Low capital investment with scale and location in corn belt Operational best practices transferred from refining…
We Believe Valero is an Excellent Investment 2016E Price to Earnings Ratio Majority of capacity located in U.S. Gulf Coast and Mid-Continent with access to cost-advantaged crude, natural gas, NGLs Peer range and corn Median 8.1x…
Footnotes Slide 5 Macro environment themes represent industry consult views, of which points 1, 2, 5, and 6 are supported by additional slides in the presentation. Slide 7 Contractor recordable incident rate from U.S. Bureau of Labor…
Key Goals Expected in 2015 Operations Excellence Disciplined Capital Investments Start up Montreal crude terminal Complete construction of Houston and Corpus Christi with the Enbridge Line 9B reversal crude topping units and lower…
Our Refining Capacity and Nelson Complexity Capacities (MBPD) Nelson Complexity Refinery Throughput Crude Index Corpus Christi(1) 325 205 19.9 Houston 175 90 15.4 Meraux 135 125 9.7 Port Arthur 375 335 12.4 St. Charles 290 215…
Reliability Initiatives Have Improved Refinery Availability and Enabled Higher Utilization Valero Refinery Availability and Utilization Rates Solomon 96% 96% 95% availability 92% 92% 88% 87% 86% 82% 26
Valero Is Currently Utilizing 84 Percent of Its Available Light Crude Capacity in North America MBPD McKee Refinery Crude Unit Expansion 25 MBPD additional capacity expected in 2H15 Distillate recovery improvements Houston Refinery…
Expect Quebec City Refinery to Have Access to 100% North American Crude in 2015 Quebec City Refinery Crude Slate 100% Foreign Imports 50% North American 0% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Processing…
Meraux Hydrocracker Conversion Completed December 2014 Project Estimates Investment Highlights Total investment 260 MM Converted hydrotreater into high-pressure Annual EBITDA contribution(1) 90 MM hydrocracker and repurposed old FCC…
McKee Refinery 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 Crude Processing Investments 160 MBPD new topping capacity Combined Project Estimates designed to process up to 50 API Total investment(1) 750 MM domestic sweet crude Annual EBITDA contribution(2) 500 MM Estimated 55 MBPD low…
Houston and Corpus Christi Crude Topping Project Economics Houston Refinery Corpus Christi Refinery Incremental Volume Incremental Volume Estimates Estimates (MBPD) (MBPD) Feeds Feeds Eagle Ford crude 90 Eagle Ford crude 70 Low…
Estimated Key Price Sensitivities on Project Economics McKee Diesel Meraux Corpus Change in Estimated EBITDA(1) Relative to 2014(2) Recovery & HCU Christi Houston Prices (millions/year) CDU Expansion Expansion Topper Topper ICE Brent,…
Valeros GP Interest in VLP Nearing the High Splits Marginal Percentage Target Quarterly Interest in Distributions Distribution per Unit Unitholders GP Minimum quarterly 0.2125 98% 2% First target above 0.2125 up to 0.244375 98%…
U.S. Natural Gas Provides Opex and Feedstock Cost Advantages Our refining operations consume approximately 864,000 mmBtu/day of natural gas, split almost equally between operating expense and cost of goods sold Significant annual…
Estimated Crude Oil Transportation Costs Alberta to Eastern Canada Alberta to Bakken Rail 11 to 12/bbl Rail 9/bbl 1 to 2/bbl Bakken U.S. Ship 4 to 5/bbl USGC to Canada to Cushing Foreign Ship Pipe 5 to 6/bbl to USEC 2/bbl to…
New Crude Oil Pipeline Capacities Alberta Bakken Niobrara Anadarko Cushing Permian KEY Recently Completed 2015 Startup Eagle 2015 Est. Startup Ford Capacities in MBPD. 38
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 Net Net Net 1.5 1.4 1.5 0.8 0.5 -0.5 -1.5 U.S.…
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…
U.S. Gasoline Exports 800 12 Month Moving Average Other (MBPD) 700 Europe 600 Other Latin America Mexico 500 Canada 400 Latest 4 Wk avg estimate (Finished only) 300 200 100 0 2005 2006 2007 2008 2009 2010 2011 2012…
U.S. Diesel Exports 1400 12 Month Moving Average (MBPD) 1200 Other Europe 1000 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 2015…
Net Exports of Products from the U.S. Net refined products exports increased from 335 MBPD in 2010 to 3 MMBPD in 2015 Diesel net exports averaged 919 MBPD in 2014; 817 MBPD in 2015 (Jan-May) Gasoline net exports averaged 66 MBPD in…
Non-GAAP Reconciliations Reconciliation of VLP Forecasted Net Income to EBITDA Reconciliation of VLP Net Income Under GAAP to EBITDA Full Year Beginning Three Months Ended Three Months Ended March 1, 2015 Valero December 31, 2014…
Investor Relations Contacts For more information, please contact: John Locke Karen Ngo Vice President, Investor Relations Manager, Investor Relations 210.345.3077 210.345.4574 john.lockevalero.com karen.ngovalero.com 45
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