Valero Energy Corporation · NYSE:VLO

Valero Energy — Investor Presentation (January 2015)

71 slides from Valero Energy's investor presentation, Jan 5, 2015

  1. Slide 1: Investor Presentation January 2015

    Investor Presentation January 2015 Exhibit 99.1

  2. Slide 2: Who We Are

    World’s Largest Independent Refiner Large Logistics Infrastructure with Focus on Growth • • Wholesale Fuels Marketer • • One of North America’s Largest Renewable Fuels Producers • • • 15 refineries, 2.9 million barrels per day (BPD) of high-complexity throughput capacity • Greater than 70% of refini

  3. Slide 3: Assets Concentrated in Advantaged Locations

    Assets Concentrated in Advantaged Locations Refinery Capacities (MBPD) Nelson Index Throughput Crude Oil Corpus Christi 19.9 Houston 15.1 Meraux 10.3 Port Arthur 12.6 St. Charles 17.5 Texas City 11.1 Three Rivers 12.4 Gulf Coast 1,605 1,270 14.1 Ardmore 12.1 McKee 9.5 Memphis 7.9 Mid-Con 9.3 Pembrok

  4. Slide 4: Strategy to Enhance Stockholder Returns

    Operations Excellence Capital Returns to Stockholders Disciplined Capital Investments Unlocking Asset Value Strategy to Enhance Stockholder Returns • Demonstrate commitment to safe and reliable operations • Continuously improve our top-tier operating performance • Optimize margins with refining syst

  5. Slide 5: 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 Global refined products demand growth is expected to continue Location-advantaged refiners in U.S. Gulf Coast, Mid-Continent, and Canada benefit from res

  6. Slide 6: Production Growth Provides Resource Advantage to North American Refiners

    Production Growth Provides Resource Advantage to North American Refiners Source: DOE (for 2014, data through September) Source: DOE (for 2014, data through September) U.S. Natural Gas Production (Bcf/day) 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000 8,500 9,000 6,500 7,000 7,500 8,000 8,500 9,000

  7. Slide 7: Operations Excellence

    Operations Excellence Persistent Focus Drives Results in Safety, Environmental, and Regulatory Compliance (1)Source: U.S. Bureau of Labor Statistics. All 2014 values are estimates. Statistics are for Refining only. 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 Personnel Safety Employees Contractors Indust

  8. Slide 8: Top-Tier Operating Performance through Continuous Improvements

    2012 2010 2008 • Reliability drives safe and profitable operations Seven of our refineries are first quartile in mechanical availability • Initiated new reliability programs beginning mid-2000s • Significant gains made in operations benchmarks since 2008 • Personnel committed to excellence 1 st Quar

  9. Slide 9: Reliability Programs and Commercial Optimization Drive Higher Utilization Rates

    88% 87% 92% 95% 96% Sustained high availability and favorable margin environment enable higher capacity utilization rates Reliability Programs and Commercial Optimization Drive Higher Utilization Rates System-wide mechanical availability near st Quartile since 2014 1Q-3Q Valero Refinery Utilization

  10. Slide 10: Optimizing Margins with Feedstock Flexibility in Our Complex Refinery System

    • Capability to adjust feedstocks and optimize margins as crude price environment shifts among grades: light, medium, heavy, sweet, sour • Focus on optimization activities • Expect additional light crude flexibility with completion of topper units in progress Optimizing Margins with Feedstock Flexib

  11. Slide 11: 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 natural gas Port Arthur and St. Charles Hydrocrackers Performing Better Than Expected (1) See Appendix for details and assumptions • Approx

  12. Slide 12: Disciplined Capital Allocation

    Dividend Growth • • Sustaining Capex • • Debt and Cash • • Stock Buybacks • • Growth Capex • Acquisitions • • Capital Returns to Stockholders Estimate $1.5 billion or lower annual “stay-in- business” spend • Key to safe and reliable operations Focus on sustainability Increase competition for cash fl

  13. Slide 13: Increasing Focus on Dividends and Stock Buybacks

    • Regular dividend increases over last three years • Significantly increased stock buybacks in 2013 and 2014 • Accelerated stock buybacks throughout 2014 with 10 million shares bought in 4Q14 • Approximately $2 billion of stock repurchase authorization at end of 3Q14 1Q 2Q Increasing Focus on Divide

  14. Slide 14: Advancing Growth Investments While Managing Capital Spending Lower

    Disciplined Capital Investment $900 $400 $690 $790 $300 $715 Advancing Growth Investments While Managing Capital Spending Lower (1) Excludes estimated placeholder for methanol project of $150 million in 2015 and $300 million in 2016 as evaluation remains in progress • Focus on logistics growth after

  15. Slide 15: Logistics Investments Enhance Valero's Feedstock Flexibility and Export Capability

    • Completed tie-in to pipeline in Childress, TX and secured incremental 40 to 50 MBPD Midland-priced crude as substitute for Cushing-priced crude primarily at the McKee refinery • Expect Diamond Pipeline to supply Memphis refinery via Cushing and start up in 1H17 or earlier • Tanks and vessels to su

  16. Slide 16: Crude Topper Investments Very Attractive

    • 160 MBPD new topping capacity designed to process up to 50 API domestic sweet crude Lowers feedstock cost by generating 55 MBPD low sulfur resid Increases net throughput capacity by 105 MBPD • Expect startup in 1H16 • Expect 50% IRR on 2014 prices, >25% IRR with Brent and LLS even • Corpus Christi

  17. Slide 17: Hydrocracker Expansions, Methanol Plant and Houston Alkylation Evaluation

    Hydrocracker Expansions Evaluating Methanol Plant at St. Charles Evaluating Houston Alkylation Unit • 1.6 – 1.7 million tonnes per year production (36 – 38 MBPD) • Leverages existing assets to lower capital requirement compared to grassroots facility • In evaluation; estimated capital cost and proje

  18. Slide 18: Ethanol Investments Performing Well

    Outstanding Cash Generation Excellent Acquisitions Competitive Advantages • 11 plants acquired between 2Q09 and 1Q14 for $794MM, less than 35% of replacement value • 1.3 billion gallons total annual production • Scale and location in corn belt • Operational best practices transferred from refining •

  19. Slide 19: Our Sponsored MLP Valero Energy Partners

    Growth-oriented logistics MLP with 100% fee-based revenues Unlocking Asset Value Our Sponsored MLP Valero Energy Partners (NYSE: VLP) • Valero owns entire 2% general partner interest, all incentive distribution rights, and 68.6% LP interest • High-quality assets integrated with Valero’s refining sys

  20. Slide 20: Significant Growth Opportunity with Estimated Inventory of Eligible MLP Assets

    Significant Growth Opportunity with Estimated Inventory of Eligible MLP Assets EBITDA over $900 Million (1) Includes assets that have other joint venture or minority interests. Pipelines (1) Racks, Terminals, and Storage (1) Rail Marine (1) • 51 docks and two Panamax class vessels Fuels Marketing an

  21. Slide 21: We Believe Valero Is an Excellent Investment

    • Majority of capacity located in U.S. Gulf Coast and Mid- Continent with access to cost-advantaged crude, natural gas, NGLs, and corn • Proven operations excellence • Excellent investment and operations in ethanol • Emphasis on capital allocation to stockholders • Disciplined capital investment tha

  22. Slide 22: Topic Pages

    Topic Pages Appendix Valero 2014 Highlights and 2015 Goals 24-25 Valero Energy Partners LP and CST Brands Spinoff 26-28 Capital Spending and Key Investment Details 29-38 Other Valero Operations Highlights 39-44 Macro Outlook and Key Margin Drivers 45-51 Global Demand and Refining Capacity 52-56 U.S.

  23. Slide 23: Key 2014 Highlights

    Key 2014 Highlights Operations Excellence • Achieved record system refinery capacity utilization of approximately 96% in 2014 through 3Q • Increased consumption of price-advantaged North American light sweet crudes by 297 MBPD on average through 3Q14 compared to 2013 • Reduced Quebec refinery’s crud

  24. Slide 24: Key 2015 Goals

    Key 2015 Goals Operations Excellence • Start up Montreal crude terminal with startup of Enbridge Line 9B reversal and lower Quebec refinery’s crude costs versus Brent compared to 2014 • Grow product export market share and increase branded wholesale fuels volume Capital Returns to Stockholders • Inc

  25. Slide 25: Growth in Inventory of Estimated Eligible MLP EBITDA

    Growth in Inventory of Estimated Eligible MLP EBITDA Fuels distribution would provide incremental EBITDA if selected $800 ($15) $24 $46 $54 $909 Dec. 2013 Guidance (with base + 2014- projects) Drop -Downs - Logistics Additional Projects Diamond Pipeline Current Guidance - Logistics Projects millions

  26. Slide 26: VLP Nearing the High Splits

    Target Quarterly Distribution per Unit Marginal Percentage Interest in Distributions Unitholders GP VLP Nearing the “High Splits” • 3Q14 distribution at $0.24 per unit • Expect VLP to reach 25% split in 2015 and 50% split in 2016 based on existing growth guidance, but timing may change depending on

  27. Slide 27: Unlocked Value via Retail Spinoff in 2013

    CST Brands, Inc. (NYSE: CST) has traded at approximately double the earnings valuation of VLO VLO received nearly $1 billion in cash net of tax liability and working capital benefit to CST CST Brands is now Valero’s largest wholesale customer • Liquidated our 20% retained interest in CST common stoc

  28. Slide 28: Allocating Significant Growth Capital to Logistics

    $510 $175 $45 $220 $180 $665 Allocating Significant Growth Capital to Logistics • Railcars spending declines as receipt of railcars order concludes • Future spending focuses on pipelines $170 $45 $5 $900 $400 $715 2014E 2015E 2016E millions Marine, Docks, and Other Logistics Pipelines and Tanks Rail

  29. Slide 29: Refining & Renewables Capital Focused on Capturing Benefits of Key Long-Term Trends

    $345 $490 $180 $110 $30 $120 $150 $105 $50 Refining & Renewables Capital Focused on Capturing Benefits of Key Long-Term Trends $45 $40 $115 $690 $790 $300 2014E 2015E 2016E millions Nat Gas & Petchems Other Projects Hydrocracking Advantaged Crude Processing • Advantaged crude processing optimizes fe

  30. Slide 30: McKee Diesel Recovery Improvement and CDU Expansion

    Investment Highlights Status • Adding 25 MBPD crude unit capacity and parallel light ends processing train • Expect to improve yields and volume gain by recovering diesel from FCC and HCU feeds • Expect to increase diesel and gasoline production on price- advantaged crude • Expect to reduce energy c

  31. Slide 31: Meraux Hydrocracker Conversion Completed December 2014

    Investment Highlights Status • Converted hydrotreater into high- pressure hydrocracker and repurposed old FCC gas plant for additional LPG recovery • Expect to upgrade 23 MBPD gasoil and low-cost hydrogen (via natural gas) mainly into high quality diesel • Expect to increase refinery distillate yiel

  32. Slide 32: Houston and Corpus Christi Crude Topping Units

    Houston and Corpus Christi Crude Topping Units Expected Online in 1 st Half of 2016 Estimates Incremental Volume (MBPD) Feeds Eagle Ford crude Low sulfur atmos resid (24) Products LPG 2.5 Propylene 0.9 BTX 0.4 Naphtha Gasoline Jet Diesel Resid (3) Project Estimates Total investment $350 MM Annual EB

  33. Slide 33: Diamond Pipeline

    Investment Highlights • Increases Memphis refinery’s crude supply flexibility via connection to Cushing and economic crudes • Provides direct control over crude blend quality • Grows Valero’s inventory of assets eligible for VLP dropdown in capital- efficient manner • Valero holds option until Janua

  34. Slide 34: Estimated Key Price Sensitivities on Project Economics

    Change in Estimated EBITDA (1) Relative to 2014 (2) Prices ($millions/year) McKee Diesel Recovery & CDU Expansion Meraux HCU Expansion Corpus Christi Topper Houston Topper Estimated Key Price Sensitivities on Project Economics ICE Brent, +$1/bbl none $0.8 $0.4 none ICE Brent – WTI, +$1/bbl $5.5 none

  35. Slide 35: Project Price Set Assumptions

    Driver ($/bbl) 2014 (1) Project Price Set Assumptions ICE Brent 99.51 ICE Brent – WTI 6.43 ICE Brent – LLS 2.64 USGC CBOB – ICE Brent 3.70 G3 CBOB – WTI 12.45 USGC ULSD – ICE Brent 14.45 G3 ULSD – WTI 24.00 Natural gas (Houston Ship Channel, $/mmBtu) 4.36 Naphtha – ICE Brent -2.12 LSVGO – ICE Brent

  36. Slide 36: Port Arthur and St. Charles Hydrocrackers Performance Details

    Trailing 4 Quarters $mm, except /bbl amounts 4Q12 3Q14 Increase = EBITDA (estimated) $802 Port Arthur and St. Charles Hydrocrackers Performance Details Benefits Realized in Reported Results Gulf Coast Capture Rate 58.8% 63.2% 4.4% x Gulf Coast Indicator/bbl, trailing 4Q 3Q14 $19 = Extra margin captu

  37. Slide 37: Gated Investment Management Process

    PHASE 2 Lead Case Development • Select lead case and define project objectives • Improve cost estimate to +/- 30% PHASE 3 Refinement • Define project scope and execution plans • Prepare decision support package for final decision • Narrow cost estimate to +/-10% PHASE 1 Opportunity Evaluation • Iden

  38. Slide 38: Valero's Light Crude Processing Capacity in North America

    • 25 MBPD additional capacity expected in 2H15 • Distillate recovery improvements • 90 MBPD capacity expected 1H16 • Displaces 30 MBPD intermediate feedstock purchases • 70 MBPD capacity expected 1H16 • Displaces 25 MBPD intermediate feedstock purchases 1,395 McKee Crude Unit Expansion Corpus Christ

  39. Slide 39: Processing of Cost-Advantaged U.S. and Canadian Crude Continues to Grow

    Processing of Cost-Advantaged U.S. and Canadian Crude by Valero Continues to Grow Note: Non-U.S. and Canadian crude runs exclude Valero’s Pembroke Refinery. Cost-advantaged crudes exclude imports and historically discounted medium sour crudes, such as Mars/ASCI domestic; heavy sour crudes, such as M

  40. Slide 40: Valero Leads Peers in Total Location-Advantaged Crude Capacity

    Valero Leads Peers in Total Location- Advantaged Crude Capacity Source: Company 10-k reports. Crude distillation capacity based on geographic location. Access to lower cost North American crude benefits refiners in Mid-Continent, Gulf Coast, and Canada; product export opportunities for Gulf Coast an

  41. Slide 41: Quebec City Refinery Access to 100% North American Crude Slate in 2015

    Expect Quebec City Refinery to Have Cost-Advantaged Access to 100% North American Crude Slate in 2015 Shifted to cost-advantaged crudes via rail and foreign flagged ships from USGC, with additional savings expected from deliveries on Enbridge Line 9B beginning in 1H15 0% 20% 40% 60% 80% 100% 1Q13 2Q

  42. Slide 42: U.S. Natural Gas Provides Opex and Feedstock Cost Advantages

    Valero’s refining operations consume approximately 860,000 mmBtu/day of natural gas, split almost equally between operating expense and cost of goods sold Significant annual pre-tax cost savings compared to refiners in Europe or Asia $4/mmBtu $1.27/bbl U.S. Natural Gas Provides Opex and Feedstock Co

  43. Slide 43: Valero's Capacity for Additional Product Exports

    412 Valero’s Capacity for Additional Product Exports (1) YTD through September 30 Opportunities to expand U.S. Gulf Coast export capability for gasoline to 308 MBPD and diesel to 472 MBPD Export markets pull volume from U.S., enabling high refinery utilization and improved margins Supported by globa

  44. Slide 44: Long-Term Macro Market Expectations

    Global Outlook U.S. Economy and Petroleum Demand North American Resource Advantage International Export Markets Long-Term Macro Market Expectations • Economic activity and total petroleum demand increases • Transportation fuels demand grows • Refining capacity growth slows after 2015; utilization st

  45. Slide 45: U.S. and Canadian Production Growth Provides Crude Cost Advantage

    Production growth reduces imports Largest growth from U.S. shale crude and heavy Canadian crude U.S. and Canadian Production Growth Provides Crude Cost Advantage to North American Refiners Source: EIA, Consultants, company announcements and Valero estimates; 2014 U.S. Crude imports as of Sep 2014 20

  46. Slide 46: Estimated Crude Oil Transportation Costs

    to USEC Rail $12 to $15/bbl to St. James Rail $12/bbl to Cushing Rail $9/bbl Cushing to Houston Pipe $2 to $4/bbl Midland to Houston Pipe $4/bbl CC to Houston $1 to $2/bbl Houston to St. James $1 to $2 /bbl to West Coast Rail $13 to $15/bbl USGC to USEC U.S. Ship $5 to $7/bbl Alberta to Bakken $1 to

  47. Slide 47: Crude Oil Differentials Versus ICE Brent

    Crude Oil Differentials Versus ICE Brent Source: Argus; 4Q14 through Dec 12. LLS prices are roll adjusted -30% -25% -15% -10% -5% 0% 5% 10% 15% 1Q14 2Q14 3Q14 4Q14 Maya Mars ANS WTI LLS -20%

  48. Slide 48: Valero's Regional Refinery Indicator Margins

    Valero’s Regional Refinery Indicator Margins Source: Argus; 4Q14 through Dec 12 $5 $10 $15 $20 $25 1Q14 2Q14 3Q14 4Q14 $/bbl Midcontinent WTI Cracking West Coast ANS Medium Sour Coking North Atlantic Brent Cracking Gulf Coast Heavy Sour Coking

  49. Slide 49: Indicator Margin Definitions

    • 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 Indicator: [(Group 3 CBOB prompt - WTI Month 1) x 60% + (Group 3 ULSD 10ppm prompt - WTI Month 1) x

  50. Slide 50: 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 foreseeable future Source: Argus & Bloomberg; 2014 YTD Japan LNG through Oct 31, U.S. & Europe through Dec 15; natural gas price

  51. Slide 51: Global Petroleum Demand Projected to Grow

    Emerging markets in Latin America, Middle East, Africa, and Asia lead demand growth Global Petroleum Demand Projected to Grow Source: Consultant (EIA and IEA) and Valero estimates. Consultant annual estimates generally updated 6 to 12 months after year end. -3.5 -2.5 -1.5 -0.5 0.5 1.5 2.5 3.5 2014E

  52. Slide 52: U.S. Refining Capacity Is Globally Competitive

    Net imports Net exports • 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 structural cost advantages for crude oil and natural gas • Gulf Coast refineries have gained export market share in the Atlanti

  53. Slide 53: World Refinery Capacity Growth

    • New capacity additions expected in Asia and Middle East • Announced new capacity in Brazil, Mexico, and Colombia likely to be smaller and start later than planned • Expansions in Ecuador, Peru, Algeria, and Egypt unlikely due to cost and geopolitical pressures • Capacity rationalization expected t

  54. Slide 54: Capacity Rationalization in Atlantic Basin

    • Marginal refiners in U.S. East Coast, Caribbean and Western Europe are shutting capacity • Demand growth, poor reliability, and low utilization in Latin American refineries provide opportunities for competitive refineries to export products and meet supply needs Capacity Rationalization in Atlanti

  55. Slide 55: Refinery Closures by Location and Owner

    Location Owner CDU Capacity Closed (MBPD) Year Closed Location Owner CDU Capacity Closed (MBPD) Year Closed *Partial closure of refinery captured in capacity. Note: This data represents refineries currently closed, ownership may choose to restart or sell listed refinery. Sources: Industry and Consul

  56. Slide 56: Global Refining Capacity For Sale or Under Strategic Review

    Location Owner CDU Capacity (MBPD) Lytton, Australia Caltex Nishihara, Japan Petrobras/Sumitomo Inchon, Korea SK Energy Whitegate, Ireland Phillips 66 Barbers Point, HI Chevron Come-By-Chance, Canada North Atlantic Refining Pasadena, TX Petrobras Bahia Blanca, Argentina Petrobras Gothenburg, Sweden

  57. Slide 57: U.S. Crude Fundamentals

    U.S. Crude Fundamentals Source: DOE weekly data through December 5, 2014 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Cushing Crude Inventory (MB) 5 Yr High 5 Yr Low 140,000 150,000 160,000 170,000 180,000 190,000 200,000 210,000 220,

  58. Slide 58: U.S. Gasoline Fundamentals

    U.S. Gasoline Fundamentals USGC Brent Gasoline Crack (per bbl) U.S. Gasoline Demand (mmbpd) U.S. Net Imports of Gasoline and Blendstocks (mbpd) U.S. Gasoline Days of Supply Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 5 yr high 5 yr low 5 year avg -400 -200 Jan Feb Mar Apr May Jun Jul Aug Sep Oct

  59. Slide 59: U.S. Distillate Fundamentals

    U.S. Distillate Fundamentals USGC Brent ULSD Crack (per bbl) U.S. Distillate Demand (mmbpd) Source: Argus; 2014 data through Dec 12 Source: 2014 DOE monthly data through Sep; weekly data through Dec 5 Source: 2014 DOE monthly data through Sep; weekly data through Dec 5 Source: 2014 DOE monthly data

  60. Slide 60: U.S. Demand Indicators

    VALERO so.e4 peor a8ueyD A/A ‘aBeuUoL x 228 | 08:29 punogui v1 + yoeeg 8u01 8 eR 8 ¥# eee LEER ERS a Bes seeaekeges woe os u arto 2x < e Prune sk 36 2 i Maes Ge 23 e0 5 $2 rune 8 ane £2 eta 8 orm 8B gi zo u we $8 cpun g CHO A 32 aq 2 Be && 110 € Oe 8 8 8 rune Loto a Tt-994 . OES He sotos Sw ot-unr e

  61. Slide 61: U.S. Transport Indicators: Trucking

    U.S. Transport Indicators: Trucking

  62. Slide 62: Increase in U.S. Gasoline Exports

    Increase in U.S. Gasoline Exports Other Europe Other Latin America Mexico Canada Latest 4 Wk avg estimate (Finished only) 12 Month Moving Average, MBPD Note: Gasoline represents all finished gasoline plus all blendstocks (including ethanol, MTBE, and other oxygenates) Source: DOE Petroleum Supply Mo

  63. Slide 63: Decrease in U.S. Gasoline Imports

    Decrease in U.S. Gasoline Imports Other Europe Other Latin America Canada Latest 4 Wk avg estimate (Fin+Blendstock) 12 Month Moving Average, MBPD Note: Gasoline represents all finished gasoline plus all blendstocks (including ethanol, MTBE, and other oxygenates) Source: DOE Petroleum Supply Monthly

  64. Slide 64: Increase in U.S. Diesel Exports

    Source: DOE Petroleum Supply Monthly with data as of September 2014. 4 Week Average estimate from Weekly Petroleum Statistics Report Increase in U.S. Diesel Exports 12 Month Moving Average, MBPD Other Europe Other Latin America Mexico Canada Latest 4 Wk avg estimate

  65. Slide 65: U.S. Is Net Refined Products Exporter

    Net Imports Net Exports Implied Production of U.S. Refined Products for Domestic Use Valero’s share of U.S. exports has averaged 20% to 25% over the past few years U.S. Is Net Refined Products Exporter U.S. Demand for Refined Products and Net Trade MMBPD U.S. Petroleum Demand Excluding Ethanol and N

  66. Slide 66: U.S. Shifted to Net Exporter

    • Net refined products exports increased from 335 MBPD in 2010 to 2,426 MBPD in 2014 • Diesel net exports averaged 917 MBPD in 2014 (Jan-Sep) • Gasoline net imports averaged -31 MBPD in 2014 (Jan – Sep) • Gasoline and blendstocks have shifted to net exports U.S. Shifted to Net Exporter -3,000 -2,500

  67. Slide 67: U.S. Growing Market Share by Exports

    • Refined products demand is growing in developing countries and Atlantic Basin (capacity closures) • U.S. Gulf Coast (PADD III) is the largest source of exported products PADD V PADD I PADD II PADD III (Gulf Coast) U.S. Growing Market Share by Exports U. S. Product Exports By Destination U. S. Prod

  68. Slide 68: Mexico

    Mexico Statistics Diesel Gross Imports (MBPD) Gasoline Gross Imports (MBPD) Crude Unit Throughput (MBPD) Crude Unit Utilization 60% 65% 70% 75% 80% 85% 90% 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 Source: PEMEX, latest data Oct 2014

  69. Slide 69: Decrease in Venezuelan Exports to the U.S.

    Decrease in Venezuelan Exports to the U.S. Source: EIA, September 2014 MBPD Total Products Gasoline and Gasoline Blending Components Diesel

  70. Slide 70: Reconciliation of Operating Income to EBITDA

    Ethanol (millions) 2Q09 – 4Q09 2010 2011 2012 2013 2014* Cumulative Reconciliation of Operating Income to EBITDA Operating income $165 $209 $396 $(47) $491 $628 $1,842 + Depreciation and amortization expense $18 $36 $39 $42 $45 $36 $216 = EBITDA $183 $245 $435 $(5) $536 $664 $2,058 *2014 Ethanol ear

  71. Slide 71: Investor Relations Contacts

    Investor Relations Contacts For more information, please contact: John Locke Executive Director, Investor Relations 210-345-3077 john.locke@valero.com Karen Ngo Manager, Investor Relations 210-345-4574 karen.ngo@valero.com

Valero Energy — Investor Presentation (January 2015) on 6ix