Leading Producer of Liquid
Transportation Fuels Advancing the Future of Energy• With Capital Discipline, Innovation and Unmatched Execution
C A P I TA L D I S C I P L I N E I N N OVAT I O N
U N M ATC H E D E X EC U T I O N
I N V E S T O R P R E S E N T A T I O N | A P R I L 2 0 2 6
REFINING
W O R L D ' S P R E M I E R I N D E P E N D E N T
R E F I N E R
LEADING PROFITABLE PRODUCER OF LOW-CARBON TRANSPORTATION FUELS
RENEWABLE DIESEL
D I V E R S I F Y I N G I N T O H I G H E R G R O W T H , H I G H E R M A R G I N S A F
ETHANOL
D E V E L O P I N G P R O J E C T S T O C R E A T E A H I G H E R V A L U E E T H A N O L P R O D U C T
GROWTH PROJECTS FOCUSED ON COST CONTROL, OPTIMIZATION AND MARGIN EXPANSION
14
refineries
lowest cost producer
3.0
million barrels per day of high-complexity throughput capacity
advantaged refining and logistics assets well positioned for feedstock and product optimization
ratable wholesale supply of
>1.5 million barrels per day or
over 50% of our light products
Renewable Diesel
Refining
PREMIER REFINING PORTFOLIO INDEPENDENTLY FOUND TO BE RESILIENT EVEN IN A CARBON-CONSTRAINED SCENARIO(1)
PROFITABLE, HIGH RETURN PROJECTS TARGETING GROWING LOW-CARBON MARKETS
Ethanol
Midstream
Wholesale
up to
billion gallons per
up to
million gallons
low-carbon intensity renewable products
up to
reduction in
1.2
year of liquid
renewable fuels
235
per year of SAF
produced primarily from recycled animal
fats, used cooking oil, and inedible corn oil
80% life cycle GHG
emissions
Best-in-class
DIAMOND GREEN DIESEL
(DGD)
SUSTAINABLE AVIATION FUEL (SAF) PROJECT COMPLETED IN 4Q 2024
producer of fuels
and products that
DEVELOPING ECONOMIC PROJECTS TO FURTHER REDUCE CARBON INTENSITY
are essential to
ethanol
billion gallons per year
high-octane renewable
at least
reduction in
existing logistics assets well
modern life
12 plants
1.7
production capacity
fuel with lower CO2emissions
30% life cycle GHG
emissions
positioned to support export growth
PURSUING REDUCTIONS IN CARBON INTENSITY THROUGH CARBON SEQUESTRATION
I N V E S T O R P R E S E N T A T I O N | A P R I L 2 0 2 6
(1) HSB Solomon Associates concluded that under the IEA's NZE 2050 Scenario, our overall refining portfolio would be resilient. Pages 4-5
3
and 29-30 of our 2022 TCFD Report contain additional information on Solomon's analysis.
Demonstrated commitment to capital discipline, innovation and unmatched execution
Operations
Earnings Growth
Capital Discipline
Unmatched Execution with a Proven History of Operations Excellence
The lowest cash operating cost among peer group while maintaining top quartile operating performance
Safe, reliable, environmentally responsible operations have driven higher profitability and lower volatility through multiple commodity cycles
Applying our liquid fuels manufacturing expertise to optimize our integrated low-carbon fuels businesses
Growth Through Innovation
Refining growth projects focused on operating cost control, optimization and margin improvement
Leveraging our global liquid fuels platform to expand our long-term competitive advantage with investments in economic low-carbon projects
25% after-tax IRR hurdle rate for growth projects
Demonstrated Commitment to Stockholders
Disciplined capital allocation delivering peer-leading free cash flow yield and returns to stockholders across margin cycles
Delivered on our annual payout ratio commitment every year under current management (since 2014)
Average payout ratio of 70% since 2014 (59% excluding 2020)
Reduced our shares outstanding by approximately 42% since 2014
15% average annual Return on
Invested Capital (ROIC) since 2014
Steadfast in the
execution of our strategy, pursuing
excellence in
operations,
investing for
earnings growth with lower volatility and honoring our
commitment to stockholder returns
Comprehensive liquid fuels strategy underpinned by excellence in operations, disciplined capital allocation and a commitment to shareholder returns
I N V E S T O R P R E S E N T A T I O N | A P R I L 2 0 2 6
See slides 41-43 for notes regarding this slide. See slides 44-59 for non-GAAP disclosures.
4
Peer group includes PSX, MPC, DINO, and PBF.
SIZE, SCALE AND GLOBAL REACH
EXTENSIVE CONNECTIVITY AND GLOBAL OPTIMIZATION
LOWEST COST PRODUCER
RELIABLE TOP QUARTILE OPERATIONS
DISCIPLINED INVESTMENTS
GROWTH WITH LOWER VOLATILITY
PREMIER REFINING PORTFOLIO
INDEPENDENTLY FOUND TO BE RESILIENT EVEN IN A CARBON-CONSTRAINED SCENARIO(1)
SIZE, SCALE AND GLOBAL REACH
Long-term, sustainable competitive
high complexity coastal system with extensive connectivity to inland and imported crudes
operational flexibility to process a wide range of feedstocks
ratable wholesale supply of
>1.5 million barrels per day or over 50% of our light products
global operations support optimization of
product exports
one of the largest light products importers into Mexico
advantage
Free Cash Flow
Average Free Cash Flow 2012 - 2025
LOWEST COST PRODUCER WHILE ACHIEVING RELIABLE TOP QUARTILE OPERATIONS
Peer Range
$3,594 10%
safety and reliability are imperative
for profitability
2025 was our best year ever for Employee
and Contractor Safety, Environmental
Performance and Mechanical Availability
access to cheap natural gas and a deep pool
of skilled labor in the U.S. Gulf Coast
INVESTMENTS IN EFFICIENCY, MARKET EXPANSION AND HIGHER MARGIN CAPTURE
reducing cost and improving margin capture
Wilmington and Pembroke cogens
St. Charles and Port Arthur hydrocrackers
Port Arthur coker
Houston and St. Charles alkylation units
improving feedstock flexibility, cost and crude quality
Diamond, Sunrise and Red River pipelines
Connectivity in Corpus Christi
Line 9 into Quebec
Houston and Corpus Christi toppers
growing market share into higher netback markets
Central Texas pipelines and terminals
Pasadena terminal
Expansion into Latin America with investments in Mexico and Peru
$0
($ in millions)
0%
(% of Average
I N V E S T O R P R E S E N T A T I O N | A P R I L 2 0 2 6
Source: Bloomberg and company reports. See slides 41-43 for notes regarding this slide. See slides 44-59 for non-GAAP disclosures. Peer group includes PSX, MPC, DINO, and PBF.
(1) HSB Solomon Associates concluded that under the IEA's NZE 2050 Scenario, our overall refining portfolio would be resilient. Pages 4-5
and 29-30 of our 2022 TCFD Report contain additional information on Solomon's analysis.
Market Cap)
5
High operational and supply flexibility coupled with low cost operations are driving profitability through-cycle
$9.00
Refining Segment Cash Operating Expenses
Per Barrel of Throughput
(excludes turnaround and D&A expenses)
Peer Range
$18.00
Refining Segment Adjusted EBITDA
Per Barrel of Throughput
(excludes turnaround expenses)
Peer Range
$7.50
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
$3.00
-$4.00
$3.00
10-Year Average
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
I N V E S T O R P R E S E N T A T I O N | A P R I L 2 0 2 6
See slides 41-43 for notes regarding this slide.
See slides 44-59 for non-GAAP disclosures. 6
Peer group includes PSX, MPC, DINO, and PBF.
Improving the margin capability of our portfolio through disciplined refining optimization and strategic growth projects
St. Charles Fluid Catalytic Cracker (FCC) Optimization
Project is estimated to cost $230 million and expected to be completed in the second half of 2026
− Expected to return >25% after-tax IRR at mid-cycle pricing assumptions
Install a new compressor and upgrade existing equipment
− Incremental 15 mbpd FCC rate with residual feedstock
− Improves product yields to increase propylene production and fill downstream Alkylation unit capacity, producing an incremental 6 mbpd of high value alkylate
Select Refining Optimization and Strategic Growth Projects
($ in millions)
Optimization and Strategic Projects
(in-service date)
Project Description
Annual EBITDA Estimate
(at FID)
Large Capital Projects (≥$300, >25% unlevered after-tax IRR at FID)
Port Arthur Coker (2Q23)
See slide 26
$325
Houston Alky (4Q19)
See slide 27
$100
Small Capital Projects (≤$50, 30% to 65% unlevered after-tax IRR at FID)
Texas City Crude Flexibility (1Q17)
See slide 41
$30
St. Charles Alky (4Q20) See slide 27 $150
Incremental Feedstock & Products (MBPD)
Feedstocks
Low Sulfur Resid
15
Products
Gasoline
8
Alkylate
6
Propylene
3
Port Arthur Butane Rail Rack (3Q17)
See slide 41
$10
St. Charles Gasoline Blender (2Q17)
See slide 41
$15
I N V E S T O R P R E S E N T A T I O N | A P R I L 2 0 2 6 See slides 41-43 for notes regarding this slide. 7
Leadership in low-carbon renewable fuels underpinned by high economic returnsDGD Renewable Fuels Capacity
(million gallons per year)
20
Renewable Naphtha
Sustainable Aviation Fuel (SAF) Renewable Diesel
30
730
275
290
15
160
410
935
235
235
50
235
470
115
1,220
1,220
Renewable Diesel Realized Cash Flow Profile
($ in millions)
$2,071 million cumulative Capex(1)
Cumulative EBITDA
DGD 1 Cumulative Capex
DGD 2 Cumulative Capex
DGD 3 Cumulative Capex
Net Cumulative Cash Flow (EBITDA less Capex)
$3,005 million cumulative EBITDA(1)
$3,100
2013
DGD 1
2018
DGD 1
2020
DGD 1
2021
DGD 2
2022
DGD 3
4Q24 DGD
2023
4Q24
($2,100)
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
St. Charles
Expansion
Optimization St. Charles
Port Arthur Port Arthur
SAF
I N V E S T O R P R E S E N T A T I O N | A P R I L 2 0 2 6
See slides 44-59 for non-GAAP disclosures.
(1) Diamond Green Diesel EBITDA and Capex reflects Valero's 50% share.
8
Expanding our competitive advantage with sustainable aviation fuel (SAF) DGD Port Arthur SAF Project
Large-scale SAF project at the DGD Port Arthur plant was completed in the fourth quarter of 2024
− The plant has the capability to upgrade up to 50% of its current renewable diesel production capacity to SAF, or ~235 million gallons per year
− The project cost was $315 million, with half of that attributable to Valero
− Project included a heater, a fractionation unit to separate the SAF and renewable diesel product streams, and additional product tankage
Project is expected to exceed our minimum return threshold of an after-tax IRR of 25%
− SAF supports airlines' compliance with global mandates and reduces their offset obligations
I N V E S T O R P R E S E N T A T I O N | A P R I L 2 0 2 6
See slides 41-43 for notes regarding this slide.
9
Ethanol segment leverages low-cost operations and scale to capture margin upsideOperations Outlook
U.S. Fuel Ethanol Exports
(mbpd)
12 plants with 1.7 billion gallons annual production capacity
Efficient plants with scale, located in
the corn belt
Operational best practices transferred from refining
Increasing production of lower carbon intensity fiber cellulosic ethanol
Cost advantaged versus the industry
Strong free cash flow profile under VLO ownership
Ethanol will remain a significant part of the global fuel mix
Global renewable fuel mandates should drive export growth, such as Canada's new CFR regulation
Carbon reduction programs providing
economic incentives:
45Q Tax Credit provides economic incentive for CO2sequestration
LCFS and D3 RINS provide higher value
for the lower carbon intensity ethanol
Operational efficiency allows capture of 45Z Tax Credit through 2029
125
112
91
96
43
25
94
88
88
32
76
20
82
19
24
19
13
26
54
21
87
93
99
72
77
64
69
68
51
64
61
142
Average Ethanol Segment Adjusted EBITDA per gallon (2009-2025)
$0.02
$0.26
Average Sustaining Capex per gallon
(2009-2025)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
I N V E S T O R P R E S E N T A T I O N | A P R I L 2 0 2 6
Totals may not sum due to rounding.
Source: U.S. Energy Information Agency (EIA) through December 2025. 10
See slides 41-43 for notes regarding this slide. See slides 44-59 for non-GAAP disclosures.
Refining business generates significant cash to support growth and stockholder returns
Sources and Uses of Cash - Cumulative: December 31, 2014 to December 31, 2025
($ in billions)
$3.7 | Sources of Cash | Uses of Cash | $4.7 | |
$66.9 | ($24.6) Sustaining capital ($16.1) Growth capital ($7.3) Acquisitions ($1.2) ($38.6) Dividends ($15.1) Share Repurchases ($23.5) ($2.7) | |||
Cash and Cash Equivalents December 31, 2014 | Net Cash Provided by Operating Activities | Capital Investments Stockholder Returns Other Attributable to Valero and Acquisitions | Cash and Cash Equivalents December 31, 2025 |
I N V E S T O R P R E S E N T A T I O N | A P R I L 2 0 2 6
See slides 44-59 for non-GAAP disclosures. Totals may not sum due to rounding.
11
Disciplined capital allocation is a constant in our strategy
1 Maintain a Strong Balance Sheet
2 Non-discretionary
3 Discretionary
Share Repurchases
Commitment to a through-cycle minimum annual payout ratio of 40% to 50% of adjusted net cash provided by operating activities
Share repurchase program consists of ratable and opportunistic purchases
•
•
Acquisitions
Evaluate versus alternative uses of cash
Growth Capex
25% after-tax IRR hurdle rate for projects
Refining projects focused on operating cost control, market expansion and margin improvement
Economic low-carbon fuels expansion
•
•
Dividend
Commitment to stockholders
Targeting a sustainable and growing dividend with a dividend yield that is at the high end of our peer group
Sustaining Capex
Targeting approximately $1.4 billion in 2026
Key to safe and reliable operations
Target 20% to 30% net debt-to-cap ratio
Maintain an investment grade credit rating
I N V E S T O R P R E S E N T A T I O N | A P R I L 2 0 2 6
See slides 41-43 for notes regarding this slide.
12
Steady investments to maintain our asset base and enhance the margin capability of our portfolio
Growth capital
investments underpinned by a 25% unlevered
after-tax IRR hurdle rate
$3.4
Annual Capital Investments Attributable to Valero
($ in billions)
$2.8 $2.7
$2.6 $2.6
$2.4
~100%
Sustaining Capex as a percentage of Depreciation and Amortization
Executing
FCC Optimization
project at St. Charles
Completed
Port Arthur Coker
$1.5
$1.8
$1.4
$1.5
$1.0
$2.0
$2.2
$0.9
$0.7
$0.9
$2.0 $1.8
$2.3
$0.9
$1.8
$1.9
$1.8
$1.7
Completed
Alkylation Units
at St. Charles & Houston
$1.4
$1.2
$1.5
$0.6
$1.4
$1.3
$1.9
$1.7
$0.9
$1.1
$0.7
$1.1
$1.3
$0.3
$1.4
$0.3
$1.6
$0.2
$1.6
$1.4
$0.3
2012
Steady investments to improve portfolio efficiency
53%
2025
Completed
Topping Capacity
at Corpus Christi & Houston
Completed
Hydrocracking Units
at St. Charles & Port Arthur
Completed Renewable Diesel production
Completed
Sustainable Aviation
Sustaining capital investments includes costs for turnarounds and catalysts and projects to comply with regulatory compliance. Growth capital investments includes joint-venture investments but excludes acquisitions. Sustaining
and growth excludes 50% of DGD's sustaining and growth capex attributable to the other joint venture member and those related to other variable interest entities. See slides 44-59 for non-GAAP disclosures. Totals may not sum due to rounding.
I N V E S T O R P R E S E N T A T I O N | A P R I L 2 0 2 6
Fuel (SAF)
13
5-year average:
(2021-2025)
Sustaining
$1.4
Growth
$0.5
Delivering on our commitment of cash returns to stockholders
Share Repurchases Dividends
Share Repurchases Dividends
Stockholder Returns(1) ($ in billions)
$1.5
$5.2
$4.6
$6.1
$6.6
Payout Ratio(1)
78%
65% 63%
54%
56%
60%
67%
47%
50%
45%
30% 31%
11%
184%
$0.6
$0.3
$0.5
$0.9
$1.4
$0.6
$1.3
$1.9
$0.8
$2.8
$3.7
$1.1
$1.3
$2.4
$1.2
$1.4
$2.6
$3.1
$1.7
$1.4
$1.5
$0.8
$2.3
$1.6
$0.2
$1.8
$1.6
$1.6
$1.6
$4.3
$4.0
$0.4
$1.4
$1.4
$2.6
$2.9
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
I N V E S T O R P R E S E N T A T I O N | A P R I L 2 0 2 6
See slides 41-43 for notes regarding this slide. See slides 44-59 for non-GAAP disclosures. Totals may not sum due to rounding.
(1) Effective 2023, share repurchases include a 1% excise tax. Accordingly, 2023, 2024 and 2025 include $52 million, $28 million and $26 14
million of excise tax, respectively.
Delivering cash returns through sustainable dividend growth and discretionary share repurchases
552
536
514
473
452
434
46% reduction in shares outstanding since 2012
418
409 408
409
372
333
27% reduction in shares outstanding since 2021
315
299
Shares Outstanding (in millions)
Annual Dividend Per Share
$4.52
$4.28
$4.08
$3.92 $3.92 $3.92
$3.60
$3.20
$2.80
$2.40
$1.70
$1.05
$0.85
$0.65
Dividend Per Share CAGR since 2012 vs.
Peers(2)(3)
Peer Range(3)
15%
0%
$4.80
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 (1)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026(2)
I N V E S T O R P R E S E N T A T I O N | A P R I L 2 0 2 6
(1) 2025 shares outstanding as of December 31, 2025.
(2) 2026 dividend per share annualized based on most recent quarterly dividend. 15
(3) Peer group includes PSX, MPC, DINO, and PBF.
Demonstrated lower volatility in earnings and free cash flow
Average Free Cash Flow 2012 - 2025
Peer Range10%
Volatility 2012 - 2025
S&P 500 Free Cash Return Profile 2012 - 2025
VLO
Financials 6%
10%
Valero has demonstrated
higher
$3,594
$0 0%
Health Care Information Technology
Refining Peers Communication Services
Industrials Consumer Staples Consumer Discretionary
Materials
5% average free
5% cash flow and
5% lower
5% volatility in
5% earnings
5%
4%
4%
110% 113%
72%
$ in Millions % of Average
Market Cap
Free Cash
Flow
Adjusted EPS
EBITDA
16
Oil Majors | 4% | ||||
Energy | 4% | ||||
Real Estate | 1% | ||||
Utilities | -3% | ||||
Average TTM Free Cash Flow as a % of Average Market Cap
I N V E S T O R P R E S E N T A T I O N | A P R I L 2 0 2 6
Source: Bloomberg and company reports. Refining peers include PSX, MPC, DINO, and PBF. See slides 41-43 for notes regarding this slide. See slides 44-59 for non-GAAP disclosures.
Disciplined allocation of capital and execution of our strategy is delivering higher return on investment
ROIC Including Amounts Attributable to the Other Joint Venture Members
Adjusted Return on Equity (ROE) Attributable to Valero
20%
14%
Peer Range
19%
30%
16%
Peer Range
24%
Premier Refining portfolio independently found to be resilient even in a carbon-constrained scenario
Lowest cost producer
Growth capital investments underpinned by a 25% unlevered after-tax IRR hurdle rate
5%
10-Year Average 5-Year Average
0%
10-Year Average 5-Year Average
Commitment to a through-cycle minimum annual payout ratio of 40% to 50%
I N V E S T O R P R E S E N T A T I O N | A P R I L 2 0 2 6
See slides 44-59 for non-GAAP disclosures. Peers include PSX, MPC, DINO, and PBF. 17
Appendix contents
Topic | Slide |
Global scale with concentration in advantaged U.S. Gulf Coast | 19 |
Crude supply advantage in the U.S. Gulf Coast and Mid-Continent | 20 |
Global optimization of operations, ratable global wholesale supply and product exports | 21-24 |
Completed projects | 25-28 |
U.S. natural gas cost advantages | 29 |
Reliability and safety | 30 |
Low-carbon fuels | 31-33 |
Refining capacity and Nelson Complexity Index | 34 |
Valero's logistics assets | 35 |
Governance and engagement | 36-38 |
Electric vehicle (EV) emissions | 39-40 |
Notes | 41-43 |
Non-GAAP disclosures | 44-59 |
I N V E S T O R P R E S E N T A T I O N | A P R I L 2 0 2 6 | 18 |
Global scale with concentration in advantaged U.S. Gulf Coast
2.5 mmbpd Refining Capacity
(mbpd, % of overall crude capacity)
U.S. West Coast
CANADA
North Atlantic
U.S. Mid-Continent
440
18%
461
18%
1,534
61%
85, 3%
U.S. Gulf Coast
UNITED
STATES
IRELAND
UNITED KINGDOM
1,534
Gulf Coast Refining Capacity(1)
(mbpd, % of overall crude capacity)
PERU
61%
1,248
42%
541
27%
185
18%
0
WHOLESALE MARKETING PRESENCE BRANDED WHOLESALE PRESENCE
VALERO REFINERIES
VLO MPC PSX PBF DINO
I N V E S T O R P R E S E N T A T I O N | A P R I L 2 0 2 6
MEXICO
(1) CDU capacity from EIA data and company reports.
See slide 35 for Valero's capacity and Nelson
complexity by refinery.
(1) CDU capacity from EIA data and company reports. See slide 34 for Valero's capacity and Nelson complexity by refinery.
VALERO ETHANOL PLANTS VALERO TERMINALS DIAMOND GREEN DIESEL
U.S. RENEWABLE DIESEL WHOLESALE PRESENCE
PIPELINES
19
Crude supply advantage in the U.S. Gulf Coast and Mid-Continent
Local Crude Gathering
McKee
Cushing-McKee Connection
Childress Station
To St. James
Hewitt
Cushing
Ardmore
Diamond Pipeline
Collierville
Crude System
Memphis
Valero U.S. Gulf Coast Feedstock Ranges
(quarterly averages)
54%
McCamey
Midland
Colorado City
Eagle Ford:
Harvest Pipeline EOGPipeline Permian:
Cactus Pipeline
Gray Oak
Local Crude Gathering
Wichita Falls
Wasson
To Nederland
Three Rivers
34% 34%
17%
17%
Sunoco
Oakville Terminal
23%
Taking advantage of Permian crude with investments in Corpus Christi
Corpus Christi West and East
Cactus Cactus II
Gray Oak
6%
Heavy Sour Medium / Light
Sour
6%
Sweet Residuals
Sunoco North Beach
EPIC
Blue lines and terminals represent Valero ownership interest.
I N V E S T O R P R E S E N T A T I O N | A P R I L 2 0 2 6
Valero's refineries have operational flexibility to process a wide range of feedstocks, along with access to a deep pool of skilled labor on the U.S. Gulf Coast
Crude Export Dock
Crude Export Tankage
Source: VLO quarterly data from 2012 through 2025. See slides 41-43 for notes regarding this slide.
20
I N V E S T O R P R E S E N TAT I O N | A P R I L 2 0 2 6
| Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |