Valero Energy Corporation · NYSE:VLO
Valero Energy — Investor Presentation (June 2009)
13 slides from Valero Energy's investor presentation, Jun 8, 2009
Slide 1: Management Presentation June 8, 2009
Management Presentation June 8, 2009
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements contained in this presentation 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
Slide 3: 2Q09 Interim Update
2Q09 Interim Update Valero announced on June 2, 2009 that it expects to report a net loss of approximately $0.50 per share for 2Q09 Extended downtime mainly at the Delaware City and McKee refineries Total impact to throughput margin of approximately $200 million Weak sour crude oil discounts and dis
Slide 4: Taking Actions to Improve Profitability
Taking Actions to Improve Profitability 3 Restarting from major turnarounds at McKee (FCC) and Delaware City (coker, gasifier) Adjusting crude diet to increase liquid volume yields Shifting endpoints and conversion to increase gasoline yields Shifting bottoms to higher-margin asphalt market and heav
Slide 5: Return of Economic Growth Increases Global Demand for Refined Products
Return of Economic Growth Increases Global Demand for Refined Products Direct relationship between personal income and employment for gasoline demand; and GDP for demand for distillates, petrochemicals, and other refined products Global project cancellations and delays to contribute to tightening ma
Slide 6: Optimistic on World Refined Product Demand Growth
Optimistic on World Refined Product Demand Growth 5 Oil / Capita (BPD/Thousand) Developed Nations (2007 Avg.) Developing Nations (2007 Avg.) China (2007) India (2007) Middle East (2007) GDP / Capita ($ PPP) Oil/Capita vs GDP/Capita Sources: IEA, IMF, U.S. Census Bureau As developing economies grow,
Slide 7: Investing in Key Long-Term Trends
Investing in Key Long-Term Trends Diesel outperforms gasoline Global fuel of choice, especially for developing markets Economic rebound grows diesel demand faster than gasoline But, gasoline still grows worldwide Diesel has fewer substitution threats than gasoline (ethanol) Biofuels are part of the
Slide 8: Ethanol Acquisition
Ethanol Acquisition Acquired 7 ethanol plants out of bankruptcy from VeraSun Energy plus a development site 780 million gallons per year of world-scale capacity $477 million purchase price is 30% of estimated replacement Ethanol will continue to be part of the motor fuels pool and this is our busine
Slide 9: TRN Acquisition: Entering European Diesel Market
TRN Acquisition: Entering European Diesel Market Recently announced agreement to acquire The Dow Chemical Company's 45% interest in Total Raffinaderij Nederland N.V. (TRN) for $600 million plus working capital estimated at $125 million Total throughput capacity of 190,000 barrels/day Purchase price
Slide 10: Prudently Investing in Internal Projects: Buy vs. Build
Prudently Investing in Internal Projects: Buy vs. Build In the current environment, we will continue to seek opportunities to buy high- quality assets at a discount to new-build price, as in the case of the TRN acquisition 9 Refinery Project Estimated Total Cost1 $mm Start-Up Description St. Charles
Slide 11: 2009 Capital Requirements for Strategic Growth Program
2009 Capital Requirements for Strategic Growth Program 10 millions Strategic growth program, including ethanol and TRN acquisitions, totals approximately $2 billion in 2009 Total 2009 capital spending estimated at $2.5 billion, including turnarounds, sustaining, and regulatory spending
Slide 12: Why an Equity Offering?
Why an Equity Offering? Strengthened balance sheet to manage business through volatile times Weak margin environment affected internally generated free cash flows Combined with March debt issuance of $1 billion, contributed to funding for internal growth projects and attractively priced acquisition
Slide 13: Committed to Creating Long-Term Shareholder Value
12 Committed to Creating Long-Term Shareholder Value