Valero Energy Corporation · NYSE:VLO
Valero Energy — Investor Presentation (March 2015)
74 slides from Valero Energy's investor presentation, Mar 3, 2015
Slide 1: Investor Presentation
Exhibit 99.01 Investor Presentation March 2015
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 193
Slide 3: Who We Are
Who We Are World’s Largest Independent Refiner • 15 refineries, 2.9 million barrels per day (BPD) of high-complexity throughput capacity • Greater than 70% of refining capacity located in U.S. Gulf and Coast Mid-Continent • Approximately 10,000 employees Large Logistics Infrastructure with Focus on
Slide 4: Assets Concentrated in Advantaged Locations
Assets Concentrated in Advantaged Locations Capacities (MBPD)Nelson Refinery ThroughputCrude Oil Index Corpus Christi 325 205 19.9 Houston 175 90 15.4 Meraux 135 125 9.7 Port Arthur 375 335 12.4 St. Charles 290 215 16.0 Texas City 260 225 11.1 Three Rivers 100 89 13.2 Gulf Coast 1,660 1,284 14.0 Ard
Slide 5: Key Market Trends
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 - Lowercrudepricesmay temporarily constrainproduction growth rate Global refined products demand growth is expected to continue - Expec
Slide 6: Production Growth Provides Resource Advantage to North American Refiners
Production Growth Provides Resource Advantage to North American Refiners U.S. Crude Oil Production and U.S. Natural Gas Production MBPD Imports MBPD (Bcf/day) 10,500 9,000 70 Imports 10,000 8,500 Production 65 8,000 9,500 7,500 60 9,000 7,000 8,500 55 6,500 8,000 6,000 50 7,500 5,500 45 7,000 5,000
Slide 7: Global Petroleum Demand Projected to Grow
Global Petroleum Demand Projected to Grow Emerging markets in Latin America, Middle East, Africa, andlead Asiademand growth World Petroleum Demand Growth MMBPD 3.5 2.5 1.5 0.5 -0.5 -1.5 -2.5 Non-OECD OECD (excl. U.S.) U.S. -3.5 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E2015E20
Slide 8: U.S. Growing Market Share by Exports
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 MMBPD U. S. Product Exports By Source MMBPD U. S. Product Exports By Destination 4.5 4.5 12
Slide 9: Strategy to Enhance Stockholder Returns
Strategy to Enhance Stockholder Returns • Demonstrate commitment to safe and reliable operations Operations • Continuously improve our top-tier operating performance Excellence • Optimize margins with refining system’s feedstock and product markets flexibility • Disciplined capital allocation Capita
Slide 10: Persistent Focus Drives Results in Safety, Environmental, and Regulatory Compliance
Persistent Focus Drives Results in Safety, Operations Excellence Environmental, and Regulatory Compliance Personnel Safety Tier 1 Process Safety Environmental Events 1.8 40 20 0.20 1.6 Employees 1.4 Contractors 30 15 (1) 0.15 Industry 1.2 1.0 0.10 20 10 0.8 0.6 0.05 10 5 0.4 0.2 0.00 0 0 0.0 Total A
Slide 11: Top-Tier Operating Performance through Continuous Improvements
Top-Tier Operating Performance through Continuous Improvements • Reliability drives safe and profitable operations 1 st Quartile 2012 Seven of our refineries are first 2010 quartile in mechanical availability 2 nd Quartile 2008 • Initiated new reliability programs and investments beginning mid- 3 rd
Slide 12: Investments, Reliability Programs, and Commercial Optimization Drive Higher Utilization
Investments, Reliability Programs, and Commercial Optimization Drive Higher Utilization Valero Refinery Utilization Rates System-wide mechanical availability near 1st Quartile since 2011 95% 96% 92% 88% 87% 2010 2011 2012 2013 2014 Sustained high availability and favorable margin environment enable
Slide 13: Optimizing Margins with Feedstock Flexibility in Our Complex Refinery System
Optimizing Margins with Feedstock Flexibility in Our Complex Refinery System • Investments enhanced our Range of Flexibility in Valero’s Gulf Coast capability to adjust Region Quarterly Feedstock Mix 2010-2014 feedstocks and optimize 35% 34% margins Avg 28% • Focus on optimization 30% Avg 23% 26% ac
Slide 14: Port Arthur and St. Charles Hydrocrackers Performing Better Than Expected
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 • Realized annual EBITDA estimated at $800 million fo
Slide 15: Disciplined Capital Allocation Framework Emphasizes Returns to Stockholders
Disciplined Capital Allocation Returns Capital to Framework Emphasizes Stockholders Stockholders “Non-Discretionary” Sustaining Capex Dividend Growth Debt and Cash • Estimate $1.5 billion or • Focus on sustainability • Maintain investment lower annual “stay-in- • Increase competition grade credit ra
Slide 16: Increasing Focus on Dividends and Stock Buybacks
Increasing Focus on Dividends and Stock Buybacks Dividend Per Share of Valero • Increased dividend by 45% in $0.40 $0.35 1Q15 versus 4Q14 $0.30 $0.25 • Regular dividend increases over $0.20 last three years $0.15 $0.10 • Accelerated stock buybacks in 2013 and 2014 • Approximately $1.5 billion of sto
Slide 17: Advancing Growth Investments While Managing Capital Spending Lower
Advancing Growth Investments While Disciplined Capital Managing Capital Spending Lower Investment millions $2,815 $2,650 $400 $2,400 $915 Logistics Growth $715 $790 $690 Refining, Renewables, & $300 (1) Other Growth $695 $655 Turnarounds & Catalyst $655 $765 $730 Sustaining $555 2014 2015E 2016E (1)
Slide 18: Logistics Investments Enhance Valero's Feedstock Flexibility and Export Capability
Logistics Investments Enhance Valero’s Feedstock Flexibility and Export Capability Pipelines • Completedtie-in to pipelinein Childress,TXand securedincremental 40 to 50 MBPD Midland-priced crude as substitute for Cushing-priced crude primarily at the McKee refinery • Expect Diamond Pipeline to suppl
Slide 19: Crude Topper Investments Very Attractive
Crude Topper Investments Very Attractive • 160 MBPD new topping capacity Combined Projects Estimates designed to process up to 50 API Total investment(1) $750MM domestic sweet crude (2) Annual EBITDA contribution $500 MM (2) Unlevered IRR on total spend 50% Lowers feedstock cost by (1) Excluding int
Slide 20: Key Natural Gas and NGLs Upgrading Investments
Key Natural Gas and NGLs Upgrading Investments • Increase distillate yield partially from hydrogen via natural gas • Completed Meraux’s 20 MBPD capacity expansion in 4Q14; Hydrocracker expect approximately $90 million annual EBITDA contribution Expansions at 2014(1) prices on total investment of app
Slide 21: Ethanol Investments Have Performed Well
Ethanol Investments Have Performed Well • 11 plants acquired between Cumulative Capex and EBITDA 2Q09 and 1Q14 for $794MM, millions Excellent less than 35% of replacement $2,229 Acquisitions value • 1.3 billion gallons total annual production • $2.2 billion cumulative EBITDA EBITDA generated since O
Slide 22: Our Sponsored MLP Valero Energy Partners (NYSE:VLP)
Our Sponsored MLP Unlocking Asset Value Valero Energy Partners (NYSE:VLP) • Valero owns entire 2% general partner interest, all incentive Growth-oriented distribution rights, and 69.6% LP interest logistics MLP with • High-quality assets integrated with Valero’s refining system 100% fee-based • Prim
Slide 23: VLP Delivering Growth
VLP Delivering Growth Adjusted EBITDA Attributable to VLP • 1st acquisition –Texas Crude (millions) Systems Business in July 2014 for $154 million $200 • 2nd acquisition –Houston and St. Charles Terminal Services Business in March 2015 for $671 million $95 • Plan to grow VLP’s 4Q15 annualized EBITDA
Slide 24: Drop Down of St. Charles and Houston Terminal Services Business to VLP
Drop Down of St. Charles and Houston Terminal Services Business to VLP Operations Financing • Crude oil, intermediates, and refined • $671 million transaction closed on petroleum product terminaling services March 1, 2015 in Houston, Texas and Norco, Louisiana • $411 million in cash to VLO 3.6 milli
Slide 25: Estimated EBITDA from Inventory of Eligible MLP Assets Total Approximately $800 Million
Estimated EBITDA from Inventory of Eligible MLP Assets Total Approximately $800 Million (1) Pipelines • Over1,200milesof activepipelines • Expect start-up of 440-mile Diamond Pipeline from Cushing to Memphis refinery in 1H17 (1) Racks, Terminals, and Storage • Over 100 million barrels of active shel
Slide 26: We Believe Valero Is an Excellent Investment
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 stoc
Slide 27: Appendix
Appendix Topic Pages Valero 2014 Highlights and 2015 Goals 28-29 Valero Energy Partners LP and CST Brands Spinoff 30-32 Capital Spending and Key Investment Details 33-42 Other Valero Operations Highlights 43-48 Macro Outlook and Key Margin Drivers 49-55 Global Demand and Refining Capacity 56-60 U.S.
Slide 28: Key 2014 Highlights
Key 2014 Highlights Operations Excellence • Achieved record annual system refinery capacity utilization of approximately 96% in 2014 • Increased average consumption of price-advantaged North American light sweet crudes in 2014 by approximately 200 MBPD compared to 2013 • Reduced Quebec refinery’s cr
Slide 29: Key 2015 Goals
Key 2015 Goals Operations Excellence • Start up Montreal crude terminal with the 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 • Increase t
Slide 30: Significant Inventory of Estimated MLP Eligible EBITDA at Valero
Significant Inventory of Estimated MLP Eligible EBITDA at Valero millions $46 $814 $800 ($15) $34 $24 ($75) Dec 2013 July 2014 DropMarch 2015 Drop 2014 -2015 2016 -2017 Diamond Pipeline Current Guidance Guidance (with Down Down Additional Logistics Projects Option base + 2014-2015 Logisitics Project
Slide 31: Valero's GP Interest in VLP Nearing the "High Splits"
Valero’s GP Interest in VLP Nearing the “High Splits” Marginal Percentage Interest in Distributions Target Quarterly Distribution per Unit Unitholders GP Minimum quarterly $0.2125 98% 2% First target above $0.2125 up to $0.244375 98% 2% Second target above $0.244375 up to $0.265625 85% 15% Third tar
Slide 32: Unlocked Value via Retail Spinoff in 2013
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 Liquidated our 20% retained interest in CST common stock, or 15 milli
Slide 33: Allocating Significant Growth Capital to Logistics
Allocating Significant Growth Capital to Logistics millions $915 $185 $715 $5 Marine, Docks, and Other Logistics $220 $400 Pipelines and Tanks $45 $665 $510 $180 $175 Railcars and Unloading $45 2014 2015E 2016E • Railcars spending declines as receipt of railcars order concludes • Future spending foc
Slide 34: Refining & Renewables Capital Focused on Capturing Benefits of Key Long-Term Trends
Refining & Renewables Capital Focused on Capturing Benefits of Key Long-Term Trends millions $790 $40 $690 $43 $150 Nat Gas & Petchems $141 $110 Other Projects $180 $300 Hydrocracking $490 $115 $326 $105 Advantaged Crude $30 Processing $50 2014 2015E 2016E • Advantaged crude processing optimizes fee
Slide 35: McKee Diesel Recovery Improvement and CDU Expansion Startup Expected in 2H15
McKee 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 ends processing Unlevered IRR on total spend (1) 45% train (1)
Slide 36: Meraux Hydrocracker Conversion Completed December 2014
Meraux Hydrocracker Conversion Completed December 2014 Investment Highlights Project Estimates • Converted hydrotreater into high- Total investment (1) $260 MM Annual EBITDA contribution pressure hydrocracker and (1) $90 MM Unlevered IRR on total spend 25% repurposed old FCC gas plant for (1) Estima
Slide 37: Houston and Corpus Christi Crude Topping Units Expected Online in 1H 2016
Houston and Corpus Christi Crude Topping st Units Expected Online inHalf 1 of 2016 Houston Corpus Christi Estimates Incremental Volume (MBPD) Estimates Incremental Volume (MBPD) Feeds Feeds Eagle Ford crude 90 Eagle Ford crude 70 Lowsulfur atmos resid (29) Lowsulfur atmos resid (24) Distillate (2) B
Slide 38: Diamond Pipeline
Diamond Pipeline Project Estimates Investment Highlights Total investment(1) $484MM • Valero holds option until January Cumulative spend through 2014 Zero 2016 to acquire 50% interest in (2) Annual EBITDA contribution $46 MM pipeline Unlevered IRR on total spend at least 12% (1) Includes additional
Slide 39: Estimated Key Price Sensitivities on Project Economics
Estimated Key Price Sensitivities on Project Economics McKee Diesel Corpus (2) (1) Relative to 2014 Change in Estimated EBITDA Prices Recovery & CDU Meraux HCU Christi Houston ($millions/year) Expansion Expansion Topper Topper ICE Brent, +$1/bbl none $0.8 $0.4 none ICE Brent – WTI, +$1/bbl $5.5 none
Slide 40: Project Price Set Assumptions
Project Price Set Assumptions Driver ($/bbl) 2014 Average ICE Brent 99.49 ICE Brent – WTI 6.35 ICE Brent – LLS 2.75 USGC CBOBICE – Brent 3.52 G3 CBOB WTI – 12.27 USGC ULSDICE – Brent 14.25 G3 ULSD WTI – 23.88 Natural gas (Houston Ship Channel, $/mmBtu) 4.34 Naphtha –ICE Brent -0.67 LSVGO ICE – Brent
Slide 41: Port Arthur and St. Charles Hydrocrackers Performance Details
Port Arthur and St. Charles Hydrocrackers Performance Details Benefits Realized in Reported Results Trailing 4 Quarters $mm, except /bbl amounts 4Q12 3Q14 Increase Gulf Coast Capture Rate 58.8% 63.2% 4.4% x Gulf Coast Indicator/bbl, trailing 4Q 3Q14 $19 = Extra margin captured/bbl $0.83 x Gulf Coast
Slide 42: Gated Investment Management Process
Gated Investment Management Process PHASE 1 PHASE 2 PHASE 3 PHASE 4 APPROVED Opportunity Lead Case Refinement Execution Startup and Evaluation Development • Define project • Detail Evaluate • Identify • Select lead case scope and engineering, • Post-audit back- opportunities and define execution pla
Slide 43: Valero's Light Crude Processing Capacity in North America
Valero’s Light Crude Processing Capacity in North America MBPD McKee Crude Unit Expansion • 25 MBPD additional capacity expected in 2H15 • Distillate recovery improvements Houston Crude Topper • 90 MBPD capacity expected 1H16 1,410 1,220 • Displaces 30 MBPD intermediate 1,060 feedstock purchases Cor
Slide 44: Valero Continues to Process Cost-Advantaged U.S. and Canadian Crude
Valero Continues to Process Cost-Advantaged U.S. and Canadian Crude MBPD MBPD 1,200 1,600 1,400 1,000 1,200 800 1,000 600 800 600 400 400 200 200 0 0 2010 2011 2012 2013 1Q14 2Q14 3Q14 4Q14 Gulf Coast Mid-Con West Coast Quebec Non-U.S. & Canadian Note: Non-U.S. and Canadian crude runs exclude Valero
Slide 45: Valero Leads Peers in Total Location-Advantaged Crude Capacity
Valero Leads Peers in Total Location- Advantaged Crude Capacity MBPD 1,948 1,714 Canada U.S. Gulf Coast 1,211 U.S. Midcontinent 443 129 VLO MPC PSX HFC TSO Source: Company 10-K reports. Crude distillation capacity based on geographic location. Access to lower cost North American crude benefits refin
Slide 46: Expect Quebec City Refinery to Have Cost-Advantaged Access to 100% North American Crude Slate
Expect Quebec City Refinery to Have Cost-Advantaged Access to 100% North American Crude Slate in 2015 Quebec City Refinery Crude Slate 100% 80% Foreign Imports 60% North American 40% 20% 0% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Shifted to cost-advantaged crudes via rail and foreign flagged ships f
Slide 47: U.S. Natural Gas Provides Opex and Feedstock Cost Advantages
U.S. Natural Gas Provides Opex and Feedstock Cost Advantages Valero’srefiningoperationsconsumeapproximately864,000mmBtu/dayof 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 Natural Gas
Slide 48: Valero's Capacity for Additional Product Exports
Valero’s Capacity for Additional Product Exports Export markets pull volume from Valero’s U.S. Product Exports U.S., enabling high refinery (MBPD) 700 utilization and improved margins 600 Gasoline Diesel Supported by global refined 500 products demand growth 412 400 300 Logistics investments also su
Slide 49: Long-Term Macro Market Expectations
Long-Term Macro Market Expectations • Economic activity and total petroleum demand increases • Transportation fuels demand grows Global Outlook • Refining capacity growth slows after 2015; utilization stabilizes then expected to increase • Refinery rationalization pressure continues in Europe, Japan
Slide 50: U.S. and Canadian Production Growth Provides Crude Cost Advantage to North American Refiners
U.S. and Canadian Production Growth Provides Crude Cost Advantage to North American Refiners U.S. and Canadian Crude Production vs. U.S. Crude Imports MMBPD 18 Largest growth from U.S. shale crude and heavy 16 Canadian crude 14 U.S. Shale Crude 12 Heavy Canadian 10 Light Canadian/ 8 Syncrude Other U
Slide 51: Estimated Crude Oil Transportation Costs
Estimated Crude Oil Transportation Costs Alberta to Eastern Canada Rail $11 to $12/bbl Rail $9/bbl Alberta to Bakken $1 to $2/bbl U.S. Ship Bakken $4 to USGC to Canada $5/bbl Foreign Ship $2/bbl to USEC to West Coast Rail $12 to Rail $13 to $15/bbl to Cushing $15/bbl Rail $9/bbl to St. James Rail $1
Slide 52: Crude Oil Differentials Versus ICE Brent
Crude Oil Differentials Versus ICE Brent 15% Maya Mars ANS WTI LLS 10% 5% 0% -5% -10% -15% -20% -25% -30% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1Q15 Source: Argus; 1Q15 through February 20. LLS prices are roll adjusted. 52
Slide 53: Valero's Regional Refinery Indicator Margins
Valero’s Regional Refinery Indicator Margins $/bbl Midcontinent WTI Cracking $25 West Coast ANS Medium Sour Coking North Atlantic Brent Cracking Gulf Coast Heavy Sour Coking $20 $15 $10 $5 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1Q15 Source: Argus; 1Q15 through February 20 53
Slide 54: Valero's Regional Indicator Margins Defined
Valero’s Regional Indicator Margins Defined • Gulf Coast Indicator: (GC Colonial 85 CBOB A grade- LLS) x 60% + (GC ULSD 10ppm Colonial Pipeline promptLLS) - 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% + (
Slide 55: Low Cost U.S. Natural Gas Provides Competitive Advantage
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 $/bbl Brent and Natural Gas Prices 120 Brent U.S. $99
Slide 56: U.S. Refining Capacity Is Globally Competitive and Continues to Take Market Share
U.S. Refining Capacity Is Globally Competitive and Continues to Take Market Share • 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
Slide 57: World Refinery Capacity Growth
World Refinery Capacity Growth • New capacity additions expected in Asia and Middle East • Announcednew capacityin Brazil,Mexico,andColombialikely to be smallerandstart later than planned • Expansions in Ecuador, Peru, Algeria, and Egypt unlikely due to cost and geopolitical pressures • Capacity rat
Slide 58: Capacity Rationalization in Atlantic Basin
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 suppl
Slide 59: Global Refining Capacity Rationalization
Global Refining Capacity Rationalization CDU Capacity Year CDU Capacity Year Location Owner Closed (MBPD) Closed Location Owner Closed (MBPD) Closed Perth Amboy, NJ Chevron 80 2008 Coryton, U.K. Petroplus 175 2012 Bakersfield,CA Big West 65 2008 Petit Couronne, France Petroplus 160 2012 Ingolstadt,
Slide 60: Global Refining Capacity For Sale or Under Strategic Review
Global Refining Capacity For Sale or Under Strategic Review Location Owner CDU Capacity (MBPD) Lytton, Australia Caltex 109 Nishihara, Japan Petrobras/Sumitomo 95 Inchon, Korea SK Energy 270 Whitegate, Ireland Phillips 66 71 Barbers Point, HI Chevron 54 Pasadena, TX Petrobras 100 Bahia Blanca, Argen
Slide 61: U.S. Crude Fundamentals
U.S. Crude Fundamentals U.S. Crude Inventory (MB) 420,000 410,000 400,000 390,000 380,000 370,000 360,000 350,000 340,000 330,000 320,000 5 Yr Range 5 Yr Low 2013 2014 2015 2010 -2014 Avg. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Cushing Crude Inventory (MB) PADD 3 Crude Inventory (MB) 55,000
Slide 62: U.S. Gasoline Fundamentals
U.S. Gasoline Fundamentals USGC Brent Gasoline Crack (per bbl) 9.4 U.S. Gasoline Demand (mmbpd) $24 $20 9.2 $16 $12 9.0 $8 8.8 $4 $0 8.6 -$4 8.4 -$8 -$12 8.2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 5 yr high 5 yr low 2014 2015 5 year avg 5 yr h
Slide 63: U.S. Distillate Fundamentals
U.S. Distillate Fundamentals USGC Brent ULSD Crack (per bbl) U.S. Distillate Demand (mmbpd) $25 4.4 4.2 $20 4.0 $15 3.8 3.6 $10 3.4 $5 3.2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 5 yr high 5 yr low 2014 2015 5 year avg 5 yr high 5 yr low 2015 2
Slide 64: U.S. Transport Indicators
U.S. Transport Indicators U.S. VMT Growth vs. Gasoline Demand Growth Airline Traffic Indicators U.S. Gasoline Demand Growth 3.5 International U.S. VMT Growth Domestic Source: U.S. DOE PSM / U.S. DOT FHA 3.0 85% 5.0% Most recent data includes Nov 2014 Load Factor 3.0% 2.5 80% 1.0% 2.0 75% -1.0% -3.0%
Slide 65: U.S. Transport Indicators: Trucking
U.S. Transport Indicators: Trucking ATA Seasonally Adj Truck Tonnage Index ATA Non-Seasonally Adj Truck Tonnage Index 140 145 Current Year Current Year 135 12-Mth Moving Avg 12-Mth Moving Avg 135 130 125 125 120 115 115 110 105 105 95 100 Data Through Dec-14 Data Through Dec-14 95 85 Source: ATA Sou
Slide 66: Increase in U.S. Gasoline Exports
Increase in U.S. Gasoline Exports 700 12 Month MovingAverage, MBPD Other 600 Europe 500 Other Latin America Mexico 400 Canada 300 Latest 4 Wk avg estimate (Finished only) 200 100 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Note: Gasoline represents all finished gasoline plus all blendstocks
Slide 67: Decrease in U.S. Gasoline Imports
Decrease in U.S. Gasoline Imports 12 Month Moving Average, MBPD Other 1400 Europe 1200 Other Latin America Canada 1000 Latest 4 Wk avg estimate (Fin+Blendstock) 800 600 400 200 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Note: Gasoline represents all finished gasoline plus all blendstocks (i
Slide 68: Increase in U.S. Diesel Exports
Increase in U.S. Diesel Exports 1400 12 Month Moving Average, MBPD 1200 Other 1000 Europe 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 Source: DOE Petroleum Supply Monthly with data through November 2014. 4 Week Averag
Slide 69: U.S. Is Net Refined Products Exporter
U.S. Is Net Refined Products Exporter Valero’s share of U.S. exports has averaged 20% to 25% over the past few years MMBPD 21 U.S. Demand for Refined Products and Net Trade 20 U.S. Petroleum Demand Excluding Ethanol and Non-Refinery NGL’s (Refined Product Demand) Implied Total Production of U.S. Ref
Slide 70: U.S. Shifted to Net Exporter
U.S. Shifted to Net Exporter • Net refined products exports increased from 335 MBPD in 2010 to 2,450 MBPD in 2014 • Diesel net exports averaged 917 MBPD in 2014 (Jan-Nov) • Gasolinenet exportsaveraged50 MBPDin 2014 (Jan– Nov) • Gasoline and blendstocks have shifted to net exports MBPD 2,000 1,500 1,
Slide 71: Mexico Statistics
Mexico Statistics Crude Unit Throughput (MBPD) Crude Unit Utilization 1,350 90% 1,300 85% 1,250 80% 1,200 1,150 75% 1,100 70% 1,050 1,000 65% 950 60% 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014 Gasoline Gross Imports (MBPD) Diesel Gross Imports (MBPD) 550 200 500
Slide 72: Decrease in Venezuelan Exports to the U.S.
Decrease in Venezuelan Exports to the U.S. MBPD 350 300 Total Products Gasoline and Gasoline Blending 250 Components Diesel 200 150 100 50 0 Source: EIA, November 2014 72
Slide 73: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of VLO Ethanol Operating Income to EBITDA Ethanol (millions) 2Q09 –4Q09 2010 2011 2012 2013 2014 Cumulative Operating income $165 $209 $396 $(47) $491 $786 $2,000 + Depreciation and amortization expense $18 $36 $39 $42 $45 $49 $229 = EBITDA $183 $245 $435 $(5)
Slide 74: 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 74