Valero News

Valero to Purchase 72 Retail Sites from Albertson's

WinNT://CORP/L00D15 — Mon, 05 May 2008 00:00:00 GMT

Valero announced today that it has signed an agreement to purchase 72 convenience stores and fueling kiosks from Albertson’s LLC. Once completed, the transaction will expand Valero’s company-owned retail presence in Texas, Colorado, Arizona and Louisiana, where Valero already operates approximately 950 company-owned Corner Store locations.

Terms of the deal were not disclosed. The transaction is expected to close in August 2008, subject to customary governmental approvals, after which the newly purchased sites will be reimaged to the Corner Store brand and will sell Valero-branded fuel.

“This transaction offers great synergies with our existing retail network and supply chain,” said Gary Arthur, President of Valero’s Retail Division. “All of these sites are relatively new and offer strong potential for merchandise growth.”

The greatest concentration of the newly acquired sites is in the Dallas-Fort Worth, greater Denver, Baton Rouge/Lafayette and Phoenix markets.

The transaction is part of recent enhancements Valero has made to its retail operations, which have included the addition of the new Cibolo Mountain coffee – made with 100 percent Colombian beans – and its proprietary Fresh Choices snacks, soft drinks, spring water, vitamin water, teas and fresh foods and pastries.

About Valero
Valero Energy Corporation is a Fortune 500 company based in San Antonio, with approximately 21,000 employees and 2007 revenues of more than $95 billion. The company owns and operates 17 refineries throughout the United States, Canada and the Caribbean with a combined throughput capacity of approximately 3.1 million barrels per day, making it the largest refiner in North America. Valero is also one of the nation’s largest retail operators with approximately 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean under various brand names including Valero, Diamond Shamrock, Shamrock, Ultramar, and Beacon. Please visit www.valero.com for more information.

Valero Increases Dividend on Common Stock by 25%

WinNT://CORP/L00D15 — Thu, 01 May 2008 00:00:00 GMT

The Board of Directors of Valero Energy Corporation (NYSE:VLO) has approved an increase in the company's regular quarterly cash dividend on common stock from $0.12 per share to $0.15 per share, effective with the quarterly dividend the Board has declared to be payable on June 18, 2008 to holders of record at the close of business on May 28, 2008. The increase in the dividend raises the annualized dividend rate on the company's common stock to $0.60 per common share.

"Increasing the dividend by 25 percent clearly shows that we are focused on our shareholders," said Bill Klesse, Valero's Chairman of the Board and Chief Executive Officer. "In fact, we've increased the quarterly dividend rate by 150% since early 2006. Today's increase also signifies Valero's continued financial strength and commitment to using a balanced approach to allocating cash flow."

About Valero
Valero Energy Corporation is a Fortune 500 company based in San Antonio, with approximately 22,000 employees and 2007 annual revenues of $95 billion. The company owns and operates 17 refineries throughout the United States, Canada and the Caribbean with a combined throughput capacity of approximately 3.1 million barrels per day, making it the largest refiner in North America. Valero is also one of the nation's largest retail operators with approximately 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean under various brand names including Valero, Diamond Shamrock, Shamrock, Ultramar, and Beacon. Please visit www.valero.com for more information.

Forward-Looking Statements
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," 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 www.valero.com.

Valero Reports First Quarter Earnings

WinNT://CORP/L00D15 — Tue, 29 Apr 2008 00:00:00 GMT

Valero Energy Corporation (NYSE: VLO) today reported first quarter 2008 income from continuing operations of $261 million, or $0.48 per share, which includes a pre-tax benefit of $101 million, or $0.12 per share, of business interruption insurance recovery related to the fire at the company’s McKee refinery in the first quarter of 2007. The company’s income from continuing operations in the first quarter of 2007 was $1.1 billion, or $1.77 per share. Income from discontinued operations for the three months ended March 31, 2007 reflected in the accompanying financial tables relates to the Lima, Ohio refinery, which the company sold effective July 1, 2007.

First quarter 2008 operating income was $472 million, or $371 million without the previously mentioned insurance recovery, versus $1.7 billion reported in the first quarter of 2007. The decline in operating income was primarily attributable to lower margins for many of the company’s products in the first quarter of 2008 compared to the same quarter last year. Refined product margins decreased as the cost of crude oil and other feedstocks increased more rapidly than the prices of gasoline and other products, such as asphalt, fuel oils, petroleum coke and petrochemical feedstocks. The average price of West Texas Intermediate (WTI) crude oil increased nearly $40 per barrel, whereas the average wholesale price of Gulf Coast conventional gasoline increased by about $34 per barrel, causing benchmark Gulf Coast gasoline margins to narrow by $6 per barrel, or 59 percent, in the first quarter of 2008 versus the first quarter of 2007. Partially offsetting these weaker margins were substantially higher margins on diesel and jet fuel as global demand for these products remained high.

Other factors also contributed to the decline in operating income in the first quarter of 2008. Refinery operating expenses increased by $180 million from the first quarter of 2007 to the first quarter of 2008, primarily due to higher energy costs and maintenance expenses. Additionally, throughput volumes decreased from the first quarter of 2007 to the first quarter of 2008 by an average of 138,000 barrels per day in large part due to operating issues at the Aruba, Port Arthur, and Delaware City refineries.

“Despite a difficult environment for gasoline margins, we reported positive results for the first quarter,” said Bill Klesse, Valero’s Chairman of the Board and Chief Executive Officer. “More recently, gasoline margins have shown moderate improvement as inventories have fallen and demand has increased as it normally does this time of year. We continue to benefit from a very solid on-road diesel market, with margins over $25 per barrel across our system. Concerning refinery inputs, differentials continue to be wide for the heavy and sour feedstocks that we can process, such as Maya crude oil, which has averaged $20 per barrel under WTI in April.”

“From a financial perspective, we ended the quarter with a healthy balance sheet,” said Klesse. “At the end of March, our debt-to-capitalization ratio stood at a relatively low 22 percent when adjusted for our $1.4 billion cash balance.”

The company’s capital spending in the first quarter of 2008 was about $640 million, of which about $100 million was for turnaround expenditures. Regarding other uses of cash, the company spent $518 million to purchase 8.8 million shares of its common stock and used approximately $375 million to redeem high-coupon debt during the first quarter.

“For the second quarter, average throughput rates for the Gulf Coast should increase by approximately 100,000 barrels per day as we complete the repairs on the coker drums at our Port Arthur refinery and the vacuum tower at our Aruba refinery in May. These refineries specialize in running heavy, sour feedstocks, so there should be noticeable improvement in our Gulf Coast performance.

“The strategic review of our refining portfolio continues. We are working closely with a prospective buyer for the Aruba refinery and expect to have an announcement this quarter. We are also evaluating bids that we received for our Memphis and Krotz Springs refineries. In addition, we recently initiated a process to explore strategic alternatives for our Ardmore refinery.

“The refining business has always been seasonal, volatile, and cyclical. We will continue working toward excellence in safety, environmental regulatory compliance, and reliability, while also striving to lower expenses and improve our effectiveness. Everyday, we are very focused on improving long-term returns and creating value for our shareholders,” Klesse said.

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 www.valero.com.

Click here to view Financial Tables.

About Valero
Valero Energy Corporation is a Fortune 500 company based in San Antonio, with approximately 22,000 employees and 2007 annual revenues of $95 billion. The company owns and operates 17 refineries throughout the United States, Canada and the Caribbean with a combined throughput capacity of approximately 3.1 million barrels per day, making it the largest refiner in North America. Valero is also one of the nation’s largest retail operators with approximately 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean under various brand names including Valero, Diamond Shamrock, Shamrock, Ultramar, and Beacon. Please visit www.valero.com for more information.

Forward-looking Statements

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,” 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 www.valero.com.

Valero Energy Corporation Announces Internet Availability of 2008 Annual Meeting Proxy Materials under New SEC Notice and Access Rule

WinNT://CORP/L00D15 — Thu, 20 Mar 2008 00:00:00 GMT

Valero Energy Corporation (NYSE: VLO) announced today the Internet availability of proxy materials for its 2008 Annual Meeting of Stockholders under the new Notice and Access rule of the U.S. Securities and Exchange Commission (SEC). This rule allows companies to furnish proxy materials to stockholders via the Internet as an alternative to the traditional approach of delivering a printed set to each stockholder.

Valero today began mailing its "Notice of Internet Availability of Proxy Materials" informing stockholders of where they can view the company's proxy statement for the 2008 Annual Meeting of Stockholders and 2007 Annual Report on Form 10-K, as filed with the SEC. In addition, stockholders may obtain free of charge a printed set of the proxy materials by mail or obtain a copy of the proxy materials by email by following the instructions provided in the notice. These proxy materials are also available in the Investor Relations section of the company's web site at www.valero.com.

The 2008 Annual Meeting of Stockholders will be held on Thursday, May 1, 2008 at 10 a.m. Central Time at Valero's offices located at One Valero Way, San Antonio, Texas 78249.

About Valero:
Valero Energy Corporation is a Fortune 500 company based in San Antonio, with approximately 22,000 employees and 2007 annual revenues of $95 billion. The company owns and operates 17 refineries throughout the United States, Canada and the Caribbean with a combined throughput capacity of approximately 3.1 million barrels per day, making it the largest refiner in North America. Valero is also one of the nation's largest retail operators with approximately 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean under various brand names including Valero, Diamond Shamrock, Shamrock, Ultramar, and Beacon. Please visit www.valero.com for more information.

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," 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 www.valero.com.

Valero to Announce Second Quarter 2008 Earnings Release July 29

WinNT://CORP/L00D15 — Tue, 01 Jul 2008 00:00:00 GMT

Valero Energy Corporation (NYSE:VLO) today announced that it will host a conference call July 29, 2008 at 10:00 a.m. CT to discuss second quarter earnings results, which will be released earlier that day, and provide an update on company operations.

Persons interested in listening to the presentation live via the internet may log on to Valero's web site at www.valero.com.

About Valero
Valero Energy Corporation is a Fortune 500 company based in San Antonio, with approximately 22,000 employees and 2007 revenues of more than $95 billion. The company owns and operates 17 refineries throughout the United States, Canada and the Caribbean with a combined throughput capacity of approximately 3.1 million barrels per day, making it the largest refiner in North America. Valero is also one of the nation's largest retail operators with approximately 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean under various brand names including Valero, Diamond Shamrock, Shamrock, Ultramar, and Beacon. Please visit www.valero.com for more information.

Valero Energy Corp. to Sell Krotz Springs Refinery

WinNT://CORP/L00D15 — Thu, 08 May 2008 00:00:00 GMT

Valero Energy Corporation (NYSE: VLO) announced today that it has agreed to sell its 85,000 barrel-per-day refinery in Krotz Springs, Louisiana to Alon USA Energy Inc. (NYSE: ALJ), for $333 million plus an earn-out provision currently valued in excess of $100 million. Both companies' boards of directors have approved the transaction, and the sale is expected to close in July 2008, subject to regulatory approvals. The transaction will also include working capital at the refinery, which will be valued at market prices at closing.

"The Krotz Springs refinery is a good fit for Alon, and this transaction is a good deal for Valero's stockholders," said Bill Klesse, Valero's Chairman and Chief Executive Officer. "This transaction is consistent with our strategy to concentrate on our core refineries where we see higher returns for the long run. Alon is a high-quality company that will benefit the great group of dedicated employees at this refinery as well as the community of Krotz Springs."

Valero had announced earlier this year that it would explore strategic alternatives for the Krotz Springs refinery. It is also exploring options for its refineries in Aruba, Memphis, Tennessee and Ardmore, Oklahoma. J.P. Morgan Securities Inc. acted as exclusive financial adviser to Valero on this transaction.

About Valero Energy Corporation
Valero Energy Corporation is a Fortune 500 company based in San Antonio, with approximately 22,000 employees and 2007 annual revenues of $95 billion. The company owns and operates 17 refineries throughout the United States, Canada and the Caribbean with a combined throughput capacity of approximately 3.1 million barrels per day, making it the largest refiner in North America. Valero is also one of the nation's largest retail operators with approximately 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean under various brand names including Valero, Diamond Shamrock, Shamrock, Ultramar, and Beacon. Please visit www.valero.com for more information.

Forward-Looking Statements
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," 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 www.valero.com.

Valero Energy Corp. Reports Fourth Quarter and Annual Earnings

WinNT://CORP/L00D15 — Tue, 29 Jan 2008 00:00:00 GMT

Valero Energy Corporation (NYSE: VLO) today reported fourth quarter 2007 income from continuing operations of $567 million, or $1.02 per share, which compares to $1.1 billion, or $1.74 per share, in the fourth quarter of 2006. Fourth quarter 2006 results included a $196 million pre-tax gain, or $0.21 per share, on the sale of the company's remaining 59 percent ownership interest in NuStar GP Holdings, LLC. Excluding this gain, fourth quarter 2006 income from continuing operations was $954 million, or $1.53 per share.

For the year ended December 31, 2007, income from continuing operations was $4.6 billion, or $7.72 per share, compared to the company's income from continuing operations of $5.3 billion, or $8.36 per share, for the year ended December 31, 2006. Excluding the special items discussed in Notes (4), (5) and (6) in the attached financial tables, income from continuing operations for 2007 was $4.5 billion or $7.79 per share versus income from continuing operations of $5.1 billion or $8.02 per share for 2006. For all periods shown in the accompanying financial tables, income from discontinued operations relates to the Lima, Ohio refinery, which the company sold effective July 1, 2007.

Fourth quarter 2007 operating income was $884 million versus $1.4 billion reported in the same period of 2006. Several factors combined to reduce operating income in the fourth quarter of 2007 versus the fourth quarter of 2006. Refined product margins were lower because the cost of crude oil and other feedstocks increased more than product prices. For example, the Gulf Coast gasoline margin was around 30 percent lower when compared to the fourth quarter of 2006. Margins for many of the company's secondary products, such as asphalt, fuel oils, and petrochemical feedstocks, were also lower than in the fourth quarter of 2006 as the prices for these products did not increase in proportion to the costs of the feedstocks used to produce them. Finally, refinery operating expenses increased by $123 million, primarily due to increases in maintenance expense and energy costs.

"We reported good results for the fourth quarter considering the dramatic increase in feedstock costs relative to product prices," said Bill Klesse, Valero's Chairman of the Board and Chief Executive Officer. "Our complex refineries were able to take advantage of the wide sour crude discounts in the fourth quarter when the Maya discount to WTI averaged about $15 per barrel, and the Mars discount averaged nearly $9 per barrel. We also benefited from having a large and geographically diverse refining system, which provides relatively more earnings stability through exposure to multiple refining regions."

Regarding uses of cash, capital spending in the fourth quarter was about $890 million, of which $180 million was for turnaround expenditures. For the full year 2007, capital spending was $2.8 billion, of which approximately $520 million was for turnaround expenditures. Concerning stock buybacks, the company spent $1.0 billion to purchase 15.4 million shares of its common stock during the fourth quarter. For the full year 2007, the company spent $5.8 billion to purchase 84.3 million shares of its common stock.

"2007 was another solid year for Valero," Klesse said. "During the year, we had strong earnings, sold the Lima, Ohio refinery, increased our dividend by 50 percent, and our retail and Canadian operations had their best years ever. Also in 2007, we purchased 14 percent of the company's outstanding shares. Combining stock purchases in 2006 and 2007, we have purchased nearly 120 million shares of our common stock which represents almost 20 percent of our outstanding shares at the end of 2005.

"Looking at market fundamentals, we continue to see wide discounts to WTI for the sour and heavy crude oils and other feedstocks that make up more than 60 percent of our throughput volumes. However, margins for some of our secondary products, such as asphalt, fuel oils, and petrochemical feedstocks, are still weak and will affect benchmark margin realization. On the other hand, we expect diesel margins to remain strong since inventories are well below the levels seen last year and on-road diesel demand remains good.

"For gasoline markets, we expect a repeat of the normal seasonal pattern in which supplies fall, demand grows, and margins rise as we head toward the summer driving season. Similar to previous years, winter-grade gasoline inventories have been building ahead of the industry-wide plant maintenance period that generally begins in late January. Due to lower production during maintenance, winter-grade gasoline stocks typically decline before the transition to summer-grade gasoline, which is much more difficult to produce because of tighter specifications. Another limitation on gasoline production is that the strong diesel margins create an incentive to maximize diesel production over gasoline. We think the combination of these supply constraints with seasonal demand growth will result in stronger gasoline margins this spring and summer.

"With regard to our strategy of optimizing our portfolio, we initiated a process to explore strategic alternatives for our Memphis and Krotz Springs refineries, and we have retained JPMorgan to assist us in that process. We are also continuing the strategic review of our Aruba refinery.

"Going forward, we are committed to delivering industry-leading returns to our shareholders. To do this, we have taken a balanced approach to allocating free cash flow, and we clearly delivered on that commitment in 2007. Looking into 2008, we plan to continue our balanced approach of investing in growth projects, improving our operating performance, paying off debt, buying back more stock, and increasing dividends, while maintaining our investment-grade credit rating. In doing so, we remain focused on increasing shareholder value and becoming a better positioned, better performing, and more valuable company for the long term," Klesse said.

Click here to view full Financial Tables

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 www.valero.com.

About Valero
Valero Energy Corporation is a Fortune 500 company based in San Antonio, with approximately 22,000 employees and 2007 annual revenues of $95 billion. The company owns and operates 17 refineries throughout the United States, Canada and the Caribbean with a combined throughput capacity of approximately 3.1 million barrels per day, making it the largest refiner in North America. Valero is also one of the nation's largest retail operators with approximately 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean under various brand names including Valero, Diamond Shamrock, Shamrock, Ultramar, and Beacon. Please visit www.valero.com for more information.

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," 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 www.valero.com.

Valero Unveils the Road Runner Store Concept

WinNT://CORP/L00D15 — Fri, 28 Dec 2007 00:00:00 GMT

Valero introduced its new Road Runner retail store concept today, opening the company’s first 5,500-square-foot Road Runner store in western San Antonio. The new concept is a further refinement of Valero’s retail efforts, which have grown in recent years to add more prepared foods as well as the Fresh Choices line of proprietary products.

The new Road Runner stores are larger and brighter than the current Valero Corner Stores, and offer more space for prepared foods and meals to go. The new Roadrunner store in San Antonio features:

-Prepared food offerings such as fresh/never frozen hot dogs and other transfat-free roller grill products; ready-to-eat salads, cheeses, dips and meat; breakfast tacos made with homemade tortillas; and fresh-baked kolaches, donuts, pastries and muffins.
-A self-serve “topping bar” for sandwiches, hot dogs, baked potatoes and tacos.
-New Cibolo Mountain premium roast coffee that’s available in several styles, from light roast decaffeinated to medium roasted Colombian to dark roasts of Espresso and French. The coffee is served in a triple-layer paper cup with a built-on sleeve and made with triple-filtered water for the highest quality.
-A variety of cappuccino flavors.
-A huge Flavors 2 Go fountain drink area with 30 dispensers of popular fountain drinks, fresh-brewed iced tea, ICEE brand carbonated drinks and a self-serve shake machine. The fountain features both cubed and “chewable” ice. Fountain drinks are made with triple-filtered water and served in cups that fit your cup holder and don’t “sweat” on hot days.
-A large icehouse walk-in cooler.
-Other general merchandise offerings such as greeting cards, ice chests and automotive goods.
-Expanded restrooms, ample parking and 14 fueling positions using new Gilbarco fuel pumps. These include a “Smart Merchandising” feature that allows for advertising in-store products and even printable coupons.

The Road Runner concept is Valero’s latest move to meet consumers’ demands for larger, brighter and more complete food stores. About 30 percent of the floor space is devoted to fresh and perishable foods. In addition to the introduction of the Road Runner brand, a new design of the stores’ Fresh Choices label was rolled out. The new Fresh Choices design now not only applies to snacks, soft drinks, spring water, vitamin water, teas and pastries, but also extends to the fresh foods offered in the Road Runner stores.

"Ever since Valero got into the retail business, our focus has been to invest in upgrading our network,” said Gary Arthur, Valero’s senior vice president of retail and specialty products marketing. “Because of this strategy, we have been able to develop items that customers really like, and we think the new Road Runner concept will be just as popular.”

The Road Runner stores feature an all-new design that incorporates bright colors and an open, spacious interior that will further differentiate Valero-owned locations as premium destinations for consumers. The 5,500-square-foot floor plan is much larger than the current 3,500-square-foot Valero Corner Stores, and provides for a wider selection and increased inventory of products. Eventually, as each of the nearly 1,000 Valero Corner Stores across the United States is remodeled and refurbished, they will take on the Road Runner name.

About Valero
Valero Energy Corporation is a Fortune 500 company based in San Antonio, with approximately 21,000 employees and 2006 revenues of more than $90 billion. The company owns and operates 17 refineries throughout the United States, Canada and the Caribbean with a combined throughput capacity of approximately 3.1 million barrels per day, making it the largest refiner in North America. Valero is also one of the nation’s largest retail operators with approximately 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean under various brand names including Valero, Diamond Shamrock, Shamrock, Ultramar, and Beacon. Please visit www.valero.com for more information.

Valero raises a company record $1.18 million for Children's Miracle Network

WinNT://CORP/L00D15 — Wed, 26 Dec 2007 00:00:00 GMT

Valero Energy Corp. (NYSE: VLO) announced today that it has raised a record $1,181,377 for Children's Miracle Network during the recent fundraising campaign held in its company-operated Diamond Shamrock and Valero Corner Stores. The campaign raised funds for 30 children's hospitals located in eight of the states where Valero has retail operations.

This is the 13th year Valero has participated in the campaign, and over that time, Valero's efforts have raised $7.6 million for the organization. Customers at Valero-operated stores who make donations to Children's Miracle Network add their names to paper balloons, which are then displayed in the stores throughout the campaign.

"We're proud of the fact that through the Children's Miracle Network campaign, we're helping children in the communities were we do business," said Gary Arthur, Valero's Senior Vice President of Retail and Specialty Products Marketing. "One hundred percent of the money we raise supports children's hospitals in our areas, helping to ensure that kids have access to the best health care, latest technology and most advanced medical facilities available. Thanks to the tremendous generosity of our customers, we raised more money than ever."

Valero's donation of more than $1.18 million represents a 4.4 percent increase over the amount raised last year, and the average amount raised per store increased by 7.4 percent compared with 2006's campaign.

About Valero
Valero Energy Corporation is a Fortune 500 company based in San Antonio, with approximately 21,000 employees and 2006 annual revenues of more than $90 billion. The company owns and operates 17 refineries throughout the United States, Canada and the Caribbean with a combined throughput capacity of approximately 3.1 million barrels per day, making it the largest refiner in North America. Valero is also one of the nation's largest retail operators with approximately 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean under various brand names including Valero, Diamond Shamrock, Shamrock, Ultramar, and Beacon. Please visit www.valero.com for more information.

Greg King Resigns as President of Valero Energy Corporation

WinNT://CORP/L00D15 — Tue, 11 Dec 2007 00:00:00 GMT

Valero Energy Corporation (NYSE:VLO) announced today that Greg King has decided to resign as President of Valero Energy Corporation and to leave the company effective December 31, 2007.

"This was unexpected, but I want to thank Greg for his dedication to Valero's success over his more than 14 years with the company," said Bill Klesse, Chairman of the Board and Chief Executive Officer of Valero Energy Corporation. "I would also like to personally thank him for his support and loyalty over the last two years. We wish Greg and his family much success and happiness in the future."

Update on Port Arthur Refinery

WinNT://CORP/L00D15 — Thu, 08 Nov 2007 00:00:00 GMT

There was a power outage at about 7 a.m. today at the Valero Port Arthur Refinery with a subsequent fire in a heater at a diesel hydrotreater unit. The fire was quickly contained, and Valero officials immediately notified all appropriate regulatory agencies. All Valero employees are accounted for and there were no reports of employee injuries, although there is a report of a contractor being transported to a local hospital due to anxiety. Power was out in some areas of the plant but most process units are in operation. Valero emergency response officials have monitored air quality and there are no indications of any concerns to the community.

The cause of the incident is under investigation.

Valero Energy Reports 3rd Quarter Earnings

WinNT://CORP/L00D15 — Tue, 06 Nov 2007 00:00:00 GMT

Valero Energy Corporation (NYSE:VLO) today reported third quarter 2007 income from continuing operations of $848 million, or $1.34 per share, which compares to $1.6 billion, or $2.48 per share, in the third quarter of 2006. The third quarter 2007 results include the effect on diluted earnings per share related to the company's settlement payment of $94 million, or $0.16 per share, for the accelerated share repurchase program that was completed on July 23, 2007, and a pre-tax gain of $91 million, or $0.10 per share, resulting from the repayment of a loan by a foreign subsidiary. Excluding these special items, third quarter 2007 income from continuing operations was $1.40 per share. The third quarter 2006 results include a $132 million pre-tax gain on the sale of 41 percent of the company's ownership interest in NuStar GP Holdings, LLC on July 19, 2006. Excluding this gain, third quarter 2006 diluted earnings per share from continuing operations were $2.35.

Third quarter 2007 income from discontinued operations of $426 million, or $0.75 per share, represents the company's after-tax gain on the sale of its Lima, Ohio refinery, which was effective July 1, 2007. Income from discontinued operations for periods prior to the third quarter 2007 reflects the operating results of the Lima, Ohio refinery prior to its sale.

For the nine months ended September 30, 2007, income from continuing operations was $4.0 billion, or $6.66 per share, compared to the company's income from continuing operations of $4.2 billion, or $6.61 per share, for the same period last year. Excluding the special items noted above, income from continuing operations was $6.72 per share for the nine months ended September 30, 2007 compared to $6.47 per share for the same period in 2006.

Third quarter 2007 operating income was $1.2 billion versus $2.3 billion reported in the same period last year. The $1.1 billion reduction in operating income was mainly due to higher prices for light sweet crude oils and narrower discounts for sour crude oils. Relative to the price of West Texas Intermediate crude oil, the company's feedstocks were approximately $3 per barrel more expensive in the third quarter of 2007 compared to the third quarter of 2006, which resulted in more than a $700 million unfavorable impact to operating income.

Several other factors also contributed to the reduction in operating income in the third quarter of 2007. Industry refining margins in the West Coast region were substantially lower, as CARB gasoline and diesel margins fell 29 percent and 17 percent, respectively, compared to the third quarter of last year. Margins for many of the company's other products, such as asphalt, lube oils, and petrochemical feedstocks, were considerably lower than last year. Finally, the impact of Hurricane Humberto on the company's Port Arthur refinery, as well as operational issues at the company's Port Arthur, Aruba, and Ardmore refineries, limited the company's performance.

With regard to uses of cash in the third quarter, capital spending was $619 million, of which $108 million was for turnaround expenditures. Concerning stock buybacks, the company purchased approximately seven million shares of its common stock during the third quarter. So far in the fourth quarter, the company has purchased an additional one million shares of its common stock. Since the beginning of the year, the company has returned approximately $5 billion to its stockholders through the purchase of 70 million shares with $4.8 billion and the payment of $205 million in common stock dividends. Cumulative stock purchases in 2007 represent approximately 11 percent of the company's outstanding shares at the end of 2006, and since the beginning of 2006, the company has purchased over 100 million shares of its stock.

As to operating highlights in the third quarter, the company commissioned a 16,000 barrel-per-day distillate hydrotreater at its Benicia refinery and a 50,000 barrel-per-day mild hydrocracker at its St. Charles refinery. Additionally, at its October meeting, the company's Board of Directors approved a major growth project at the St. Charles refinery. This project, which is scheduled to be commissioned in 2010, includes a new 50,000 barrel-per-day hydrocracker plus 45,000 and 10,000 barrel-per-day expansions to the crude and coker units, respectively. This project was designed to maximize production of ultra-low-sulfur distillates.

"So far in the fourth quarter, the margin environment has been difficult as prices for refined products have failed to keep pace with the increase in feedstock costs," said Bill Klesse, Valero's Chairman of the Board and Chief Executive Officer. "In particular, the seasonal supply and demand patterns and higher feedstock prices have squeezed gasoline margins. However, industry fundamentals are intact with gasoline inventories near five-year lows and diesel stocks considerably below last year's levels. And, unlike the third quarter, we're seeing more favorable discounts for the sour and heavy feedstocks that Valero's complex refining system processes.

"As part of our strategy to improve returns, we are upgrading our portfolio by investing in growth projects at competitively advantaged refineries and considering alternatives for assets that may be more valuable to others. In particular, we are pleased to be moving ahead with one of the largest growth projects in Valero's history at our St. Charles refinery. Also, consistent with our strategy, we have decided to explore strategic alternatives for our Aruba refinery. We have retained UBS Investment Bank to assist us with this process.

"As we have stated many times, we are taking a balanced approach to allocating free cash flow, and we have delivered on that commitment. By the end of 2007, we expect to have purchased $6 billion of our shares. To reach our goal, we plan to purchase approximately $1.2 billion of our shares by the end of this quarter. As we move into next year, we plan to continue our balanced approach by investing in growth projects, improving our operating performance, buying back more stock, and increasing dividends, while maintaining our investment-grade credit rating," said Klesse.

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 website at www.valero.com.

About Valero:
Valero Energy Corporation is a Fortune 500 company based in San Antonio, with approximately 21,000 employees and 2006 annual revenues of more than $90 billion. The company owns and operates 17 refineries throughout the United States, Canada and the Caribbean with a combined throughput capacity of approximately 3.1 million barrels per day, making it the largest refiner in North America. Valero is also one of the nation's largest retail operators with approximately 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean under various brand names including Valero, Diamond Shamrock, Shamrock, Ultramar, and Beacon. Please visit www.valero.com for more information.

Forward-Looking Statements:
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," 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 www.valero.com.

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Valero Promotes Rich Marcogliese to Chief Operating Officer

WinNT://CORP/L00D15 — Mon, 29 Oct 2007 00:00:00 GMT

Valero Energy Corporation (NYSE: VLO) announced today that Rich Marcogliese, Executive Vice President-Operations, has been promoted to Executive Vice President and Chief Operating Officer by the company’s Board of Directors. In addition to refining operations, Mr. Marcogliese will be responsible for the company’s commercial operations, including marketing, supply and transportation. Accordingly, Joe Gorder, Executive Vice President-Marketing and Supply, will report to Mr. Marcogliese. Also, as part of the company’s realignment of duties, Valero’s retail store operations and Ultramar, Ltd., the company’s Canadian subsidiary, will report to Valero President Greg King. Mike Ciskowski, the company’s Executive Vice President and Chief Financial Officer, will continue to report to Mr. King.

About Valero
Valero Energy Corporation is a Fortune 500 company based in San Antonio, with approximately 21,000 employees and 2006 annual revenues of more than $90 billion. The company owns and operates 17 refineries throughout the United States, Canada and the Caribbean with a combined throughput capacity of approximately 3.1 million barrels per day, making it the largest refiner in North America. Valero is also one of the nation’s largest retail operators with approximately 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean under various brand names including Valero, Diamond Shamrock, Shamrock, Ultramar, and Beacon. Please visit www.valero.com for more information.

Valero Declares Regular Cash Dividend on Common Stock

WinNT://CORP/L00D15 — Thu, 25 Oct 2007 00:00:00 GMT

On October 25, 2007, the Board of Directors of Valero Energy Corporation (NYSE:VLO) declared a regular quarterly cash dividend on the company's common stock of $0.12 per share. The dividend is payable December 12, 2007 to holders of record at the close of business on November 7, 2007.

Valero Energy Corporation is a Fortune 500 company based in San Antonio, with approximately 22,000 employees and 2006 revenues of more than $90 billion. The company owns and operates 17 refineries throughout the United States, Canada and the Caribbean with a combined throughput capacity of approximately 3.1 million barrels per day, making it the largest refiner in North America. Valero is also one of the nation's largest retail operators with approximately 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean under various brand names including Valero, Diamond Shamrock, Shamrock, Ultramar, and Beacon. Please visit www.valero.com for more information.

Valero Energy Corp. Provides Third Quarter 2007 Interim Update

WinNT://CORP/L00D15 — Wed, 10 Oct 2007 00:00:00 GMT

Valero Energy Corporation (NYSE:VLO) announced today that it expects to report third quarter earnings from continuing operations excluding special items in the range of $1.30 to $1.40 per share. The special items consist of a $91 million pre-tax gain on repayment of a loan by a foreign subsidiary and the effects on the computation of diluted earnings per share related to the company's $94.5 million final payment for the accelerated stock repurchase program that was completed on July 23, 2007. Including these special items, third quarter earnings from continuing operations are expected to be in the range of $1.25 to $1.35 per share. The company also expects to report third quarter earnings from discontinued operations of approximately $0.75 per share related to the $827 million pre-tax gain on the sale of the Lima refinery.

The company expects to report lower throughput margins for the third quarter of 2007 as compared to the third quarter of 2006, primarily due to substantially higher feedstock costs resulting from increased premiums for light sweet crude oils and narrower discounts for sour crude oils and other feedstocks. In total, higher feedstock costs are expected to reduce the company's throughput margins by approximately $700 million in the third quarter versus the same quarter of last year.

On the products side, many of the company's products, such as asphalt, lube oils, and petrochemical feedstocks, sold at much lower margins in the third quarter of 2007 than in the third quarter of 2006 as prices for those products did not increase as much as prices for crude oil.

In addition, industry refining margins in the company's West Coast region were substantially lower than in the third quarter of last year.

As to operations, the impact of Hurricane Humberto on the company's Port Arthur refinery as well as operating issues at the company's Port Arthur, St. Charles, and Ardmore refineries during the third quarter of 2007 are expected to contribute to lower throughput margins. In addition, the McKee refinery continued to operate slightly below capacity as the de-asphalting unit is expected to remain offline through the end of the year.

During the third quarter, the company purchased approximately seven million shares of its common stock. From the beginning of the year through September, the company has returned approximately $4.8 billion to its stockholders through the purchase of 68.9 million shares, representing approximately 11 percent of its outstanding shares at the end of 2006. As a result, the company expects to report weighted-average diluted shares outstanding for the third quarter to range between 560 million and 565 million.

Valero's senior management will hold a conference call at 11 a.m. ET (10 a.m. CT) November 6, 2007 to discuss third quarter earnings, which will be released earlier that day and provide an update on company operations. A live broadcast of the conference call will be available on the company's website at www.valero.com.

CONTACT: Valero Energy Corporation, San Antonio
Investors, Ashley Smith, Director,
Investor Relations: 210-345-2744
or
Media, Bill Day, Director, Corporate Communications:
210-345-2928
Website: http://www.valero.com

SOURCE: Valero Energy Corporation