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Valero Energy Reports Third Quarter 2013 Results 
San Antonio, Texas 

Valero Energy Corporation (“Valero,” NYSE: VLO) today reported net income attributable to Valero stockholders of $312 million, or $0.57 per share, for the third quarter of 2013 compared to net income attributable to Valero stockholders of $674 million, or $1.21 per share, for the third quarter of 2012.  The third quarter 2012 results included a noncash asset impairment loss of $341 million after taxes, or $0.62 per share, and severance expense of $41 million after taxes, or $0.07 per share, primarily related to the Aruba refinery.  Excluding these items, Valero reported third quarter 2012 net income attributable to Valero stockholders of $1.1 billion, or $1.90 per share. 

Third quarter 2013 operating income was $532 million compared to operating income of $1.3 billion in the third quarter of 2012.  Excluding the items noted above, third quarter 2012 operating income was $1.7 billion.  The decrease in operating income was due to lower refining throughput margins caused by lower gasoline and diesel margins as well as lower light sweet and sour crude oil discounts.  Also contributing to the decline in operating income were higher costs for Renewable Identification Numbers to comply with the U.S. federal Renewable Fuel Standard.  Strong performance in the ethanol business partially offset the decline in operating income. 

Third quarter 2013 refining throughput volumes averaged 2.8 million barrels per day, an increase of 172,000 barrels per day from the third quarter of 2012.  Refining throughput volumes increased mainly due to less unplanned maintenance activity and less weather-related downtime.

“Third quarter refining margins were challenged, but our story remains intact,” said Valero Chairman and CEO Bill Klesse.  “Fourth quarter 2013 gasoline margins have started out seasonally weak, but distillate margins continue to be strong.  Fortunately for Valero, U.S. and Canadian light sweet crude oil discounts relative to Brent have been improving versus the third quarter, particularly for WTI in the U.S. Mid-Continent and LLS on the U.S. Gulf Coast.  Discounts for medium and heavy sour crudes on the U.S. Gulf Coast have also improved compared to the third quarter.  Valero has substantial capability to process these discounted crude oils, which provide cost advantages versus many of our global competitors.

“Part of our story that affects the refining and petrochemical industries is that significant supply growth of natural gas and natural gas liquids in North America has kept prices structurally low relative to world prices. This represents a cost advantage for refiners and petrochemicals manufacturers in the U.S. and Canada.”

Commenting on strategic initiatives, Klesse said, “As part of our strategy to leverage these natural resource advantages, we completed our rail unloading facility at the Quebec City refinery in August and began receiving U.S. and Canadian cost-advantaged crude oil by rail.  We also pursued value for our stockholders by increasing the quarterly dividend to $0.225 per share in July, and we filed a registration statement with the U.S. Securities and Exchange Commission for the proposed initial public offering of common units of Valero Energy Partners LP.”

Valero’s ethanol segment reported operating income of $113 million in the third quarter of 2013 compared to an operating loss of $73 million in the third quarter of 2012.  The increase in operating income was attributed to an improved gross margin per gallon and higher production volumes.  The improvement in gross margin per gallon was mainly due to low ethanol inventory levels in the U.S., and production volumes were higher in response to the improved gross margin per gallon.

Regarding cash flows in the third quarter of 2013, capital expenditures were $557 million, of which $78 million was for turnarounds and catalyst.  Valero paid $122 million in dividends on its common stock and $29 million to purchase approximately 800,000 shares of its common stock.  Valero ended the third quarter of 2013 with $1.9 billion of cash and temporary cash investments, $6.6 billion in total debt, and approximately $3 billion available under stock purchase authorizations.  Subsequent to the third quarter of 2013, Valero has spent approximately $90 million to purchase 2.6 million shares of its common stock, bringing the total year-to-date stock purchases to nearly 17 million shares for approximately $675 million. 

Valero expects full-year 2013 capital expenditures, including turnarounds and catalyst, to be approximately $2.85 billion, of which $1.30 billion is for growth investments.  For 2014, capital expenditures, including turnarounds and catalyst, are expected to be approximately $3 billion.

“Valero is executing on its strategy to create long-term stockholder value,” Klesse said.   “We believe that we have a great opportunity to unlock potential value in our assets via the formation of a logistics partnership.  We are also evaluating and pursuing investments that leverage the North American natural resource advantages, such as projects to process additional light sweet crude oil volumes and to upgrade natural gas and natural gas liquids.  Along with these opportunities, we intend to continue returning cash to stockholders through dividends and share buybacks.” 

Valero’s senior management will hold a conference call at 11 a.m. ET (10 a.m. CT) today to discuss this earnings release and provide an update on company operations.  A live broadcast of the conference call will be available on the company’s web site at

About Valero
Valero Energy Corporation, through its subsidiaries, is an international manufacturer and marketer of transportation fuels, other petrochemical products and power. Valero subsidiaries employ approximately 10,500 people, and assets include 16 petroleum refineries with a combined throughput capacity of approximately 3 million barrels per day, 10 ethanol plants with a combined production capacity of 1.2 billion gallons per year, a 50-megawatt wind farm, and renewable diesel production from a joint venture. More than 7,300 outlets carry the Valero, Diamond Shamrock, Shamrock and Beacon brands in the United States and the Caribbean; Ultramar in Canada; and Texaco in the United Kingdom and Ireland. Valero is a Fortune 500 company based in San Antonio. Please visit for more information.

Valero Contacts
Investors:  Ashley Smith, Vice President – Investor Relations, 210-345-2744
Media:  Bill Day, Vice President – Media and Community Relations, 210-345-2928

Safe-Harbor Statement
Statements contained in this release that state the company’s or management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “believe,” “expect,” “should,” “estimates,” “intend,” and other similar expressions identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual reports on Form 10-K and quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission and on Valero’s website at

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Corporate Communications
Director-Media Relations and Communications
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