Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income attributable to Valero stockholders of $3.7 billion, or $12.62 per share, for the second quarter of 2026, compared to $714 million, or $2.28 per share, for the second quarter of 2025. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders for the second quarter of 2026 was $3.7 billion, or $12.54 per share.

“We are pleased to report a strong second quarter, driven by excellent operations and commercial execution across all three of our business segments,” said Lane Riggs, Valero’s Chairman, Chief Executive Officer and President. “Our refineries, renewable diesel plants, and ethanol plants operated safely and reliably, helping to meet resilient demand for transportation fuels.”

Refining

The Refining segment reported operating income of $4.5 billion for the second quarter of 2026, compared to $1.3 billion for the second quarter of 2025. Adjusted operating income for the second quarter of 2026 was $4.4 billion. Refining throughput volumes averaged 3.0 million barrels per day in the second quarter of 2026.

Renewable Diesel

The Renewable Diesel segment, which consists of the Diamond Green Diesel joint venture (DGD), reported $717 million of operating income for the second quarter of 2026, compared to an operating loss of $79 million for the second quarter of 2025. Segment sales volumes averaged 3.8 million gallons per day in the second quarter of 2026.

Ethanol

The Ethanol segment reported $318 million of operating income for the second quarter of 2026, compared to $54 million for the second quarter of 2025. Ethanol production volumes averaged 4.7 million gallons per day in the second quarter of 2026.

Corporate and Other

General and administrative expenses were $233 million in the second quarter of 2026. The effective tax rate for the second quarter of 2026 was 21 percent.

Investing and Financing Activities

Net cash provided by operating activities was $5.6 billion in the second quarter of 2026. Included in this amount was a $706 million favorable impact from working capital and $389 million of adjusted net cash provided by operating activities associated with the other joint venture member’s share of DGD. Excluding these items, adjusted net cash provided by operating activities was $4.5 billion in the second quarter of 2026.

Capital investments totaled $350 million in the second quarter of 2026, of which $290 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance. Excluding capital investments attributable to the other joint venture member’s share of DGD and other variable interest entities, capital investments attributable to Valero were $346 million in the second quarter of 2026.

Valero stockholder cash returns totaled $2.6 billion in the second quarter of 2026, resulting in a payout ratio of 59 percent of adjusted net cash provided by operating activities.

On July 16, 2026, Valero announced a quarterly cash dividend on common stock of $1.20 per share, demonstrating its strong financial position.

Liquidity and Financial Position

Valero ended the second quarter of 2026 with $9.1 billion of total debt, $2.2 billion of total finance lease obligations, and $7.9 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 11 percent as of June 30, 2026.

“Our strong results reflect the discipline and consistency of our operational and commercial execution,” said Riggs. “Coupled with our differentiated balance sheet, these strengths position us well and provide significant financial flexibility.”

Strategic Update

Valero continues to make progress on the FCC Unit optimization project at the St. Charles Refinery that will enhance the refinery’s ability to produce high-value products. This $230 million project is still expected to be completed and begin operations in the third quarter of 2026.

Conference Call

Valero’s senior management will hold a conference call at 10 a.m. ET today to discuss this earnings release and to provide an update on operations and strategy.

About Valero

Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland, and Latin America. Valero operates 14 petroleum refineries located in the U.S., Canada, and the U.K. with a combined throughput capacity of approximately 3.0 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which produces low-carbon fuels including renewable diesel and sustainable aviation fuel (SAF), with a production capacity of approximately 1.2 billion gallons per year in the U.S. Gulf Coast region. See the annual report on Form 10-K for more information on SAF. Valero also owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.7 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel, and Ethanol segments. Please visit investorvalero.com for more information.

Valero Contacts

Investors:

Brian Donovan, Vice President – Investor Relations, 210-345-1682

Eric Herbort, Director – Investor Relations and Finance, 210-345-3331

Gautam Srivastava, Director – Investor Relations, 210-345-3992

Media:

Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002

Safe-Harbor Statement

Statements contained in this release and the accompanying earnings release tables, or made during the conference call, that state Valero’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,” “intend,” “target,” “commitment,” “plans,” “forecast,” “guidance” and other similar expressions identify forward-looking statements. Forward-looking statements in this release and the accompanying earnings release tables include, and those made on the conference call may include, statements relating to Valero’s low-carbon fuels strategy, expected timing, cost and performance of projects, our plans, actions, assets and operations in California and expected timing and cost of obligations and other financial, operational, or strategic statement impacts, future market and industry conditions, future operating and financial performance, including future capital expenditures and capital investments attributable to Valero, future production and manufacturing ability and size, expectations regarding our sources and uses of cash, future legal and regulatory developments, including those with respect to tariffs and low-carbon fuels, expectations and ongoing uncertainties related to our Port Arthur Refinery, and management of future risks, among other matters. It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of Valero’s control, such as legislative or political changes or developments, market dynamics, cyberattacks, weather events, and other matters affecting Valero’s operations and financial performance or the demand for Valero’s products. These factors also include, but are not limited to, the uncertainties that remain with respect to current or contemplated legal, political, or regulatory developments that are adverse to tariffs, global geopolitical and other conflicts and tensions, the impact of inflation and crude oil and petroleum product market disruptions on margins and costs, economic activity levels, actions in response to supply and demand imbalances for refined petroleum products, and the adverse effects the foregoing may have on Valero’s business plan, strategy, operations and financial performance. For more information concerning these and other factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual report on Form 10-K, quarterly reports on Form 10‑Q, and other reports filed with the Securities and Exchange Commission and available on Valero’s website at www.valero.com.

Use of Non-GAAP Financial Information

This earnings release and the accompanying earnings release tables include references to financial measures that are not defined under U.S. generally accepted accounting principles (GAAP). These non-GAAP measures include adjusted net income attributable to Valero stockholders, adjusted earnings per common share – assuming dilution, Refining margin, Renewable Diesel margin, Ethanol margin, adjusted Refining operating income, adjusted net cash provided by operating activities, and capital investments attributable to Valero. These non-GAAP financial measures have been included to help facilitate the comparison of operating results between periods. See the accompanying earnings release tables for a definition of non-GAAP measures and a reconciliation to their most directly comparable GAAP measures. Note (h) to the earnings release tables provides reasons for the use of these non-GAAP financial measures.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

FINANCIAL HIGHLIGHTS

(millions of dollars, except per share amounts)

(unaudited)
 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2026

 

2025

 

2026

 

2025

Statement of income data

 

 

 

 

 

 

 

Revenues

$

44,476

 

 

$

29,889

 

 

$

76,857

 

 

$

60,147

 

Cost of sales:

 

 

 

 

 

 

 

Cost of materials and other (a)

 

35,130

 

 

 

24,678

 

 

 

61,315

 

 

 

50,726

 

Taxes other than income taxes (b)

 

1,648

 

 

 

1,654

 

 

 

3,369

 

 

 

3,154

 

Operating expenses (excluding depreciation

and amortization expense reflected below)

 

1,506

 

 

 

1,522

 

 

 

3,101

 

 

 

3,045

 

Depreciation and amortization expense

 

723

 

 

 

786

 

 

 

1,551

 

 

 

1,466

 

Total cost of sales

 

39,007

 

 

 

28,640

 

 

 

69,336

 

 

 

58,391

 

Asset impairment loss (c)

 

—

 

 

 

—

 

 

 

—

 

 

 

1,131

 

Other operating expenses (d)

 

26

 

 

 

4

 

 

 

50

 

 

 

8

 

General and administrative expenses (excluding

depreciation and amortization expense reflected below)

 

233

 

 

 

220

 

 

 

518

 

 

 

481

 

Depreciation and amortization expense

 

14

 

 

 

28

 

 

 

26

 

 

 

39

 

Operating income

 

5,196

 

 

 

997

 

 

 

6,927

 

 

 

97

 

Other income, net

 

116

 

 

 

86

 

 

 

248

 

 

 

206

 

Interest and debt expense, net of capitalized interest

 

(145

)

 

 

(141

)

 

 

(285

)

 

 

(278

)

Income before income tax expense

 

5,167

 

 

 

942

 

 

 

6,890

 

 

 

25

 

Income tax expense

 

1,094

 

 

 

279

 

 

 

1,495

 

 

 

14

 

Net income

 

4,073

 

 

 

663

 

 

 

5,395

 

 

 

11

 

Less: Net income (loss) attributable to noncontrolling interests

 

353

 

 

 

(51

)

 

 

412

 

 

 

(108

)

Net income attributable to Valero Energy Corporation

stockholders

$

3,720

 

 

$

714

 

 

$

4,983

 

 

$

119

 

 

 

 

 

 

 

 

 

Earnings per common share

$

12.62

 

 

$

2.28

 

 

$

16.79

 

 

$

0.37

 

Weighted-average common shares outstanding (in millions)

 

294

 

 

 

312

 

 

 

296

 

 

 

313

 

 

 

 

 

 

 

 

 

Earnings per common share – assuming dilution

$

12.62

 

 

$

2.28

 

 

$

16.78

 

 

$

0.37

 

Weighted-average common shares outstanding –

assuming dilution (in millions)

 

294

 

 

 

312

 

 

 

296

 

 

 

313

 

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

FINANCIAL HIGHLIGHTS BY SEGMENT

(millions of dollars)

(unaudited)
 

 

Refining

 

Renewable

Diesel

 

Ethanol

 

Corporate

and

Other (e)

 

Total

Three months ended June 30, 2026

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Revenues from external customers

$

42,300

 

$

1,176

 

 

$

1,000

 

$

—

 

 

$

44,476

Intersegment revenues

 

2

 

 

1,506

 

 

 

311

 

 

(1,819

)

 

 

—

Total revenues

 

42,302

 

 

2,682

 

 

 

1,311

 

 

(1,819

)

 

 

44,476

Cost of sales:

 

 

 

 

 

 

 

 

 

Cost of materials and other (a)

 

34,268

 

 

1,803

 

 

 

822

 

 

(1,763

)

 

 

35,130

Taxes other than income taxes (b)

 

1,648

 

 

—

 

 

 

—

 

 

—

 

 

 

1,648

Operating expenses (excluding depreciation and

amortization expense reflected below)

 

1,263

 

 

91

 

 

 

152

 

 

—

 

 

 

1,506

Depreciation and amortization expense

 

635

 

 

71

 

 

 

19

 

 

(2

)

 

 

723

Total cost of sales

 

37,814

 

 

1,965

 

 

 

993

 

 

(1,765

)

 

 

39,007

Other operating expenses (d)

 

18

 

 

—

 

 

 

—

 

 

8

 

 

 

26

General and administrative expenses (excluding

depreciation and amortization expense reflected

below)

 

—

 

 

—

 

 

 

—

 

 

233

 

 

 

233

Depreciation and amortization expense

 

—

 

 

—

 

 

 

—

 

 

14

 

 

 

14

Operating income by segment

$

4,470

 

$

717

 

 

$

318

 

$

(309

)

 

$

5,196

 

 

 

 

 

 

 

 

 

 

Three months ended June 30, 2025

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Revenues from external customers

$

28,324

 

$

565

 

 

$

1,000

 

$

—

 

 

$

29,889

Intersegment revenues

 

2

 

 

533

 

 

 

205

 

 

(740

)

 

 

—

Total revenues

 

28,326

 

 

1,098

 

 

 

1,205

 

 

(740

)

 

 

29,889

Cost of sales:

 

 

 

 

 

 

 

 

 

Cost of materials and other

 

23,388

 

 

1,044

 

 

 

988

 

 

(742

)

 

 

24,678

Taxes other than income taxes (b)

 

1,654

 

 

—

 

 

 

—

 

 

—

 

 

 

1,654

Operating expenses (excluding depreciation and

amortization expense reflected below)

 

1,307

 

 

72

 

 

 

144

 

 

(1

)

 

 

1,522

Depreciation and amortization expense

 

707

 

 

61

 

 

 

19

 

 

(1

)

 

 

786

Total cost of sales

 

27,056

 

 

1,177

 

 

 

1,151

 

 

(744

)

 

 

28,640

Other operating expenses

 

4

 

 

—

 

 

 

—

 

 

—

 

 

 

4

General and administrative expenses (excluding

depreciation and amortization expense reflected

below)

 

—

 

 

—

 

 

 

—

 

 

220

 

 

 

220

Depreciation and amortization expense

 

—

 

 

—

 

 

 

—

 

 

28

 

 

 

28

Operating income (loss) by segment

$

1,266

 

$

(79

)

 

$

54

 

$

(244

)

 

$

997

See Operating Highlights by Segment.

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

FINANCIAL HIGHLIGHTS BY SEGMENT

(millions of dollars)

(unaudited)
 

 

Refining

 

Renewable

Diesel

 

Ethanol

 

Corporate

and

Other (e)

 

Total

Six months ended June 30, 2026

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Revenues from external customers

$

73,105

 

$

1,887

 

 

$

1,865

 

$

—

 

 

$

76,857

Intersegment revenues

 

4

 

 

2,209

 

 

 

613

 

 

(2,826

)

 

 

—

Total revenues

 

73,109

 

 

4,096

 

 

 

2,478

 

 

(2,826

)

 

 

76,857

Cost of sales:

 

 

 

 

 

 

 

 

 

Cost of materials and other (a)

 

59,446

 

 

2,915

 

 

 

1,716

 

 

(2,762

)

 

 

61,315

Taxes other than income taxes (b)

 

3,369

 

 

—

 

 

 

—

 

 

—

 

 

 

3,369

Operating expenses (excluding depreciation and

amortization expense reflected below)

 

2,609

 

 

176

 

 

 

316

 

 

—

 

 

 

3,101

Depreciation and amortization expense

 

1,367

 

 

149

 

 

 

38

 

 

(3

)

 

 

1,551

Total cost of sales

 

66,791

 

 

3,240

 

 

 

2,070

 

 

(2,765

)

 

 

69,336

Other operating expenses (d)

 

42

 

 

—

 

 

 

—

 

 

8

 

 

 

50

General and administrative expenses (excluding

depreciation and amortization expense reflected

below)

 

—

 

 

—

 

 

 

—

 

 

518

 

 

 

518

Depreciation and amortization expense

 

—

 

 

—

 

 

 

—

 

 

26

 

 

 

26

Operating income by segment

$

6,276

 

$

856

 

 

$

408

 

$

(613

)

 

$

6,927

 

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2025

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Revenues from external customers

$

57,081

 

$

1,058

 

 

$

2,008

 

$

—

 

 

$

60,147

Intersegment revenues

 

4

 

 

940

 

 

 

422

 

 

(1,366

)

 

 

—

Total revenues

 

57,085

 

 

1,998

 

 

 

2,430

 

 

(1,366

)

 

 

60,147

Cost of sales:

 

 

 

 

 

 

 

 

 

Cost of materials and other

 

48,157

 

 

1,939

 

 

 

2,020

 

 

(1,390

)

 

 

50,726

Taxes other than income taxes (b)

 

3,154

 

 

—

 

 

 

—

 

 

—

 

 

 

3,154

Operating expenses (excluding depreciation and

amortization expense reflected below)

 

2,598

 

 

150

 

 

 

298

 

 

(1

)

 

 

3,045

Depreciation and amortization expense

 

1,301

 

 

129

 

 

 

38

 

 

(2

)

 

 

1,466

Total cost of sales

 

55,210

 

 

2,218

 

 

 

2,356

 

 

(1,393

)

 

 

58,391

Asset impairment loss (c)

 

1,131

 

 

—

 

 

 

—

 

 

—

 

 

 

1,131

Other operating expenses

 

8

 

 

—

 

 

 

—

 

 

—

 

 

 

8

General and administrative expenses (excluding

depreciation and amortization expense reflected below)

 

—

 

 

—

 

 

 

—

 

 

481

 

 

 

481

Depreciation and amortization expense

 

—

 

 

—

 

 

 

—

 

 

39

 

 

 

39

Operating income (loss) by segment

$

736

 

$

(220

)

 

$

74

 

$

(493

)

 

$

97

See Operating Highlights by Segment.

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS

REPORTED UNDER U.S. GAAP (h)

(millions of dollars, except per share amount)

(unaudited)
 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2026

 

2025

 

2026

 

2025

Reconciliation of net income attributable to Valero Energy

Corporation stockholders to adjusted net income

attributable to Valero Energy Corporation stockholders

 

 

 

 

 

 

 

Net income attributable to Valero Energy Corporation

stockholders

$

3,720

 

 

$

714

 

$

4,983

 

 

$

119

 

Adjustments:

 

 

 

 

 

 

 

Last-in, first-out (LIFO) liquidation adjustment (a)

 

(44

)

 

 

—

 

 

(44

)

 

 

—

 

Income tax expense related to the LIFO liquidation adjustment

 

10

 

 

 

—

 

 

10

 

 

 

—

 

LIFO liquidation adjustment, net of taxes

 

(34

)

 

 

—

 

 

(34

)

 

 

—

 

Asset impairment loss (c)

 

—

 

 

 

—

 

 

—

 

 

 

1,131

 

Income tax benefit related to asset impairment loss

 

—

 

 

 

—

 

 

—

 

 

 

(254

)

Asset impairment loss, net of taxes

 

—

 

 

 

—

 

 

—

 

 

 

877

 

Port Arthur Refinery fire expenses (d)

 

15

 

 

 

—

 

 

15

 

 

 

—

 

Income tax benefit related to Port Arthur Refinery fire expenses

 

(4

)

 

 

—

 

 

(4

)

 

 

—

 

Port Arthur Refinery fire expenses, net of taxes

 

11

 

 

 

—

 

 

11

 

 

 

—

 

Total adjustments

 

(23

)

 

 

—

 

 

(23

)

 

 

877

 

Adjusted net income attributable to

Valero Energy Corporation stockholders

$

3,697

 

 

$

714

 

$

4,960

 

 

$

996

 

Reconciliation of earnings per common share –

assuming dilution to adjusted earnings per common

share – assuming dilution

 

 

 

 

 

 

 

Earnings per common share – assuming dilution

$

12.62

 

 

$

2.28

 

$

16.78

 

 

$

0.37

Adjustments:

 

 

 

 

 

 

 

LIFO liquidation adjustment (a)

 

(0.12

)

 

 

—

 

 

(0.11

)

 

 

—

Asset impairment loss (c)

 

—

 

 

 

—

 

 

—

 

 

 

2.80

Port Arthur Refinery fire expenses (d)

 

0.04

 

 

 

—

 

 

0.04

 

 

 

—

Total adjustments

 

(0.08

)

 

 

—

 

 

(0.07

)

 

 

2.80

Adjusted earnings per common share – assuming dilution

$

12.54

 

 

$

2.28

 

$

16.71

 

 

$

3.17

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS

REPORTED UNDER U.S. GAAP (h)

(millions of dollars)

(unaudited)
 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2026

 

2025

 

2026

 

2025

Reconciliation of operating income (loss) by segment

to segment margin, and reconciliation of operating income (loss) by

segment to adjusted operating income by segment

 

 

 

 

 

 

 

Refining segment

 

 

 

 

 

 

 

Refining operating income

$

4,470

 

 

$

1,266

 

 

$

6,276

 

 

$

736

 

Adjustments:

 

 

 

 

 

 

 

LIFO liquidation adjustment (a)

 

(44

)

 

 

—

 

 

 

(44

)

 

 

—

 

Operating expenses (excluding depreciation

and amortization expense reflected below)

 

1,263

 

 

 

1,307

 

 

 

2,609

 

 

 

2,598

 

Depreciation and amortization expense

 

635

 

 

 

707

 

 

 

1,367

 

 

 

1,301

 

Asset impairment loss (c)

 

—

 

 

 

—

 

 

 

—

 

 

 

1,131

 

Other operating expenses (d)

 

18

 

 

 

4

 

 

 

42

 

 

 

8

 

Refining margin

$

6,342

 

 

$

3,284

 

 

$

10,250

 

 

$

5,774

 

 

 

 

 

 

 

 

 

Refining operating income

$

4,470

 

 

$

1,266

 

 

$

6,276

 

 

$

736

 

Adjustments:

 

 

 

 

 

 

 

LIFO liquidation adjustment (a)

 

(44

)

 

 

—

 

 

 

(44

)

 

 

—

 

Asset impairment loss (c)

 

—

 

 

 

—

 

 

 

—

 

 

 

1,131

 

Other operating expenses (d)

 

18

 

 

 

4

 

 

 

42

 

 

 

8

 

Adjusted Refining operating income

$

4,444

 

 

$

1,270

 

 

$

6,274

 

 

$

1,875

 

 

 

 

 

 

 

 

 

Renewable Diesel segment

 

 

 

 

 

 

 

Renewable Diesel operating income (loss)

$

717

 

 

$

(79

)

 

$

856

 

 

$

(220

)

Adjustments:

 

 

 

 

 

 

 

Operating expenses (excluding depreciation and

amortization expense reflected below)

 

91

 

 

 

72

 

 

 

176

 

 

 

150

 

Depreciation and amortization expense

 

71

 

 

 

61

 

 

 

149

 

 

 

129

 

Renewable Diesel margin

$

879

 

 

$

54

 

 

$

1,181

 

 

$

59

 

 

 

 

 

 

 

 

 

Ethanol segment

 

 

 

 

 

 

 

Ethanol operating income

$

318

 

 

$

54

 

 

$

408

 

 

$

74

 

Adjustments:

 

 

 

 

 

 

 

Operating expenses (excluding depreciation and

amortization expense reflected below)

 

152

 

 

 

144

 

 

 

316

 

 

 

298

 

Depreciation and amortization expense

 

19

 

 

 

19

 

 

 

38

 

 

 

38

 

Ethanol margin

$

489

 

 

$

217

 

 

$

762

 

 

$

410

 

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS

REPORTED UNDER U.S. GAAP (h)

(millions of dollars)

(unaudited)
 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2026

 

2025

 

2026

 

2025

Reconciliation of Refining segment operating income (loss) to

Refining margin (by region), and reconciliation of Refining

segment operating income (loss) to adjusted Refining segment

operating income (by region) (i)

 

 

 

 

 

 

 

U.S. Gulf Coast region

 

 

 

 

 

 

 

Refining operating income

$

2,877

 

$

846

 

$

4,233

 

$

1,183

Adjustments:

 

 

 

 

 

 

 

Operating expenses (excluding depreciation and

amortization expense reflected below)

 

778

 

 

737

 

 

1,551

 

 

1,457

Depreciation and amortization expense

 

394

 

 

387

 

 

782

 

 

763

Other operating expenses (d)

 

16

 

 

3

 

 

34

 

 

7

Refining margin

$

4,065

 

$

1,973

 

$

6,600

 

$

3,410

 

 

 

 

 

 

 

 

Refining operating income

$

2,877

 

$

846

 

$

4,233

 

$

1,183

Adjustment: Other operating expenses (d)

 

16

 

 

3

 

 

34

 

 

7

Adjusted Refining operating income

$

2,893

 

$

849

 

$

4,267

 

$

1,190

 

 

 

 

 

 

 

 

U.S. Mid-Continent region

 

 

 

 

 

 

 

Refining operating income

$

608

 

$

127

 

$

798

 

$

177

Adjustments:

 

 

 

 

 

 

 

Operating expenses (excluding depreciation and

amortization expense reflected below)

 

204

 

 

200

 

 

407

 

 

395

Depreciation and amortization expense

 

89

 

 

78

 

 

178

 

 

154

Other operating expenses

 

2

 

 

—

 

 

3

 

 

—

Refining margin

$

903

 

$

405

 

$

1,386

 

$

726

 

 

 

 

 

 

 

 

Refining operating income

$

608

 

$

127

 

$

798

 

$

177

Adjustment: Other operating expenses

 

2

 

 

—

 

 

3

 

 

—

Adjusted Refining operating income

$

610

 

$

127

 

$

801

 

$

177

See Notes to Earnings Release Tables.

 VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS

REPORTED UNDER U.S. GAAP (h)

(millions of dollars)

(unaudited)
 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2026

 

2025

 

2026

 

2025

Reconciliation of Refining segment operating income (loss) to

Refining margin (by region), and reconciliation of Refining

segment operating income (loss) to adjusted Refining segment

operating income (by region) (i) (continued)

 

 

 

 

 

 

 

North Atlantic region

 

 

 

 

 

 

 

Refining operating income

$

742

 

 

$

219

 

$

1,125

 

 

$

435

 

Adjustments:

 

 

 

 

 

 

 

Operating expenses (excluding depreciation and

amortization expense reflected below)

 

192

 

 

 

182

 

 

403

 

 

 

354

 

Depreciation and amortization expense

 

80

 

 

 

75

 

 

164

 

 

 

144

 

Refining margin

$

1,014

 

 

$

476

 

$

1,692

 

 

$

933

 

 

 

 

 

 

 

 

 

U.S. West Coast region (f)

 

 

 

 

 

 

 

Refining operating income (loss)

$

243

 

 

$

74

 

$

120

 

 

$

(1,059

)

Adjustments:

 

 

 

 

 

 

 

LIFO liquidation adjustment (a)

 

(44

)

 

 

—

 

 

(44

)

 

 

—

 

Operating expenses (excluding depreciation and amortization expense reflected below)

 

89

 

 

 

188

 

 

248

 

 

 

392

 

Depreciation and amortization expense (g)

 

72

 

 

 

167

 

 

243

 

 

 

240

 

Asset impairment loss (c)

 

—

 

 

 

—

 

 

—

 

 

 

1,131

 

Other operating expenses

 

—

 

 

 

1

 

 

5

 

 

 

1

 

Refining margin

$

360

 

 

$

430

 

$

572

 

 

$

705

 

 

 

 

 

 

 

 

 

Refining operating income (loss)

$

243

 

 

$

74

 

$

120

 

 

$

(1,059

)

Adjustments:

 

 

 

 

 

 

 

LIFO liquidation adjustment (a)

 

(44

)

 

 

—

 

 

(44

)

 

 

—

 

Asset impairment loss (c)

 

—

 

 

 

—

 

 

—

 

 

 

1,131

 

Other operating expenses

 

—

 

 

 

1

 

 

5

 

 

 

1

 

Adjusted Refining operating income

$

199

 

 

$

75

 

$

81

 

 

$

73

 

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

REFINING SEGMENT OPERATING HIGHLIGHTS

(millions of dollars, except per barrel amounts)

(unaudited)
 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2026

 

2025

 

2026

 

2025

Throughput volumes (thousand barrels per day)

 

 

 

 

 

 

 

Feedstocks:

 

 

 

 

 

 

 

Heavy sour crude oil

 

514

 

 

554

 

 

482

 

 

555

Medium/light sour crude oil

 

252

 

 

240

 

 

274

 

 

237

Sweet crude oil

 

1,599

 

 

1,509

 

 

1,560

 

 

1,535

Residuals

 

124

 

 

167

 

 

152

 

 

131

Other feedstocks

 

118

 

 

105

 

 

123

 

 

78

Total feedstocks

 

2,607

 

 

2,575

 

 

2,591

 

 

2,536

Blendstocks and other

 

343

 

 

347

 

 

341

 

 

339

Total throughput volumes

 

2,950

 

 

2,922

 

 

2,932

 

 

2,875

 

 

 

 

 

 

 

 

Yields (thousand barrels per day)

 

 

 

 

 

 

 

Gasolines and blendstocks

 

1,414

 

 

1,444

 

 

1,406

 

 

1,410

Distillates

 

1,167

 

 

1,111

 

 

1,138

 

 

1,094

Other products (j)

 

400

 

 

392

 

 

418

 

 

394

Total yields

 

2,981

 

 

2,947

 

 

2,962

 

 

2,898

 

 

 

 

 

 

 

 

Operating statistics (h) (k)

 

 

 

 

 

 

 

Refining margin

$

6,342

 

$

3,284

 

$

10,250

 

$

5,774

Adjusted Refining operating income

$

4,444

 

$

1,270

 

$

6,274

 

$

1,875

Throughput volumes (thousand barrels per day)

 

2,950

 

 

2,922

 

 

2,932

 

 

2,875

 

 

 

 

 

 

 

 

Refining margin per barrel of throughput

$

23.62

 

$

12.35

 

$

19.31

 

$

11.09

Less:

 

 

 

 

 

 

 

Operating expenses (excluding depreciation and

amortization expense reflected below) per barrel of

throughput

 

4.70

 

 

4.91

 

 

4.92

 

 

4.99

Depreciation and amortization expense per barrel of

throughput

 

2.36

 

 

2.66

 

 

2.57

 

 

2.50

Adjusted Refining operating income per barrel of

throughput

$

16.56

 

$

4.78

 

$

11.82

 

$

3.60

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RENEWABLE DIESEL SEGMENT OPERATING HIGHLIGHTS

(millions of dollars, except per gallon amounts)

(unaudited)
 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2026

 

2025

 

2026

 

2025

Operating statistics (h) (k)

 

 

 

 

 

 

 

Renewable Diesel margin

$

879

 

$

54

 

 

$

1,181

 

$

59

 

Renewable Diesel operating income (loss)

$

717

 

$

(79

)

 

$

856

 

$

(220

)

Sales volumes (thousand gallons per day)

 

3,833

 

 

2,732

 

 

 

3,432

 

 

2,584

 

 

 

 

 

 

 

 

 

Renewable Diesel margin per gallon of sales

$

2.52

 

$

0.22

 

 

$

1.90

 

$

0.13

 

Less:

 

 

 

 

 

 

 

Operating expenses (excluding depreciation and

amortization expense reflected below) per gallon of sales

 

0.26

 

 

0.29

 

 

 

0.28

 

 

0.32

 

Depreciation and amortization expense per gallon of sales

 

0.20

 

 

0.25

 

 

 

0.24

 

 

0.28

 

Renewable Diesel operating income (loss) per gallon of sales

$

2.06

 

$

(0.32

)

 

$

1.38

 

$

(0.47

)

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

ETHANOL SEGMENT OPERATING HIGHLIGHTS

(millions of dollars, except per gallon amounts)

(unaudited)
 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2026

 

2025

 

2026

 

2025

Operating statistics (h) (k)

 

 

 

 

 

 

 

Ethanol margin

$

489

 

$

217

 

$

762

 

$

410

Ethanol operating income

$

318

 

$

54

 

$

408

 

$

74

Production volumes (thousand gallons per day)

 

4,666

 

 

4,583

 

 

4,643

 

 

4,525

 

 

 

 

 

 

 

 

Ethanol margin per gallon of production

$

1.15

 

$

0.52

 

$

0.91

 

$

0.50

Less:

 

 

 

 

 

 

 

Operating expenses (excluding depreciation and

amortization expense reflected below) per gallon of production

 

0.36

 

 

0.34

 

 

0.38

 

 

0.36

Depreciation and amortization expense per gallon of production

 

0.04

 

 

0.05

 

 

0.04

 

 

0.05

Ethanol operating income per gallon of production

$

0.75

 

$

0.13

 

$

0.49

 

$

0.09

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION

(millions of dollars, except per barrel amounts)

(unaudited)
 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2026

 

2025

 

2026

 

2025

Operating statistics by region (i)

 

 

 

 

 

 

 

U.S. Gulf Coast region (h) (k)

 

 

 

 

 

 

 

Refining margin

$

4,065

 

$

1,973

 

$

6,600

 

$

3,410

Adjusted Refining operating income

$

2,893

 

$

849

 

$

4,267

 

$

1,190

Throughput volumes (thousand barrels per day)

 

1,829

 

 

1,841

 

 

1,792

 

 

1,756

 

 

 

 

 

 

 

 

Refining margin per barrel of throughput

$

24.42

 

$

11.78

 

$

20.35

 

$

10.72

Less:

 

 

 

 

 

 

 

Operating expenses (excluding depreciation and

amortization expense reflected below) per barrel of

throughput

 

4.67

 

 

4.40

 

 

4.78

 

 

4.58

Depreciation and amortization expense per barrel of

throughput

 

2.37

 

 

2.31

 

 

2.41

 

 

2.40

Adjusted Refining operating income per barrel of throughput

$

17.38

 

$

5.07

 

$

13.16

 

$

3.74

 

 

 

 

 

 

 

 

U.S. Mid-Continent region (h) (k)

 

 

 

 

 

 

 

Refining margin

$

903

 

$

405

 

$

1,386

 

$

726

Adjusted refining operating income

$

610

 

$

127

 

$

801

 

$

177

Throughput volumes (thousand barrels per day)

 

485

 

 

423

 

 

469

 

 

438

 

 

 

 

 

 

 

 

Refining margin per barrel of throughput

$

20.46

 

$

10.52

 

$

16.31

 

$

9.16

Less:

 

 

 

 

 

 

 

Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput

 

4.63

 

 

5.20

 

 

4.79

 

 

4.98

Depreciation and amortization expense per barrel of throughput

 

2.01

 

 

2.01

 

 

2.09

 

 

1.94

Adjusted refining operating income per barrel of throughput

$

13.82

 

$

3.31

 

$

9.43

 

$

2.24

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION

(millions of dollars, except per barrel amounts)

(unaudited)
 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2026

 

2025

 

2026

 

2025

Operating statistics by region (i) (continued)

 

 

 

 

 

 

 

North Atlantic region (h) (k)

 

 

 

 

 

 

 

Refining margin

$

1,014

 

$

476

 

$

1,692

 

$

933

Refining operating income

$

742

 

$

219

 

$

1,125

 

$

435

Throughput volumes (thousand barrels per day)

 

506

 

 

396

 

 

506

 

 

444

 

 

 

 

 

 

 

 

Refining margin per barrel of throughput

$

22.02

 

$

13.20

 

$

18.48

 

$

11.61

Less:

 

 

 

 

 

 

 

Operating expenses (excluding depreciation and

amortization expense reflected below) per barrel of

throughput

 

4.17

 

 

5.04

 

 

4.40

 

 

4.40

Depreciation and amortization expense per barrel of

throughput

 

1.73

 

 

2.07

 

 

1.79

 

 

1.79

Refining operating income per barrel of throughput

$

16.12

 

$

6.09

 

$

12.29

 

$

5.42

 

 

 

 

 

 

 

 

U.S. West Coast region (f) (h) (k)

 

 

 

 

 

 

 

Refining margin

$

360

 

$

430

 

$

572

 

$

705

Adjusted Refining operating income

$

199

 

$

75

 

$

81

 

$

73

Throughput volumes (thousand barrels per day)

 

130

 

 

262

 

 

165

 

 

237

 

 

 

 

 

 

 

 

Refining margin per barrel of throughput

$

30.36

 

$

18.02

 

$

19.12

 

$

16.42

Less:

 

 

 

 

 

 

 

Operating expenses (excluding depreciation and

amortization expense reflected below) per barrel of

throughput

 

7.49

 

 

7.91

 

 

8.28

 

 

9.15

Depreciation and amortization expense per barrel of

throughput (g)

 

6.06

 

 

6.99

 

 

8.12

 

 

5.59

Adjusted Refining operating income per barrel of throughput

$

16.81

 

$

3.12

 

$

2.72

 

$

1.68

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS

(unaudited)
 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2026

 

2025

 

2026

 

2025

Refining

 

 

 

 

 

 

 

Feedstocks (dollars per barrel)

 

 

 

 

 

 

 

Brent crude oil

$

97.06

 

 

$

66.59

 

 

$

87.49

 

 

$

70.74

 

Brent less West Texas Intermediate (WTI) crude oil

 

3.85

 

 

 

2.72

 

 

 

4.90

 

 

 

3.08

 

Brent less WTI Houston crude oil

 

1.69

 

 

 

1.89

 

 

 

3.01

 

 

 

1.99

 

Brent less Dated Brent crude oil

 

(8.05

)

 

 

(1.08

)

 

 

(5.37

)

 

 

(0.92

)

Brent less Argus Sour Crude Index crude oil

 

3.11

 

 

 

2.02

 

 

 

4.03

 

 

 

2.29

 

Brent less Maya crude oil

 

8.05

 

 

 

8.11

 

 

 

9.77

 

 

 

8.95

 

Brent less Western Canadian Select Houston crude oil

 

13.92

 

 

 

6.25

 

 

 

13.75

 

 

 

6.75

 

WTI crude oil

 

93.20

 

 

 

63.87

 

 

 

82.59

 

 

 

67.67

 

 

 

 

 

 

 

 

 

Natural gas (dollars per million British thermal units)

 

2.46

 

 

 

2.83

 

 

 

2.79

 

 

 

3.11

 

 

 

 

 

 

 

 

 

Renewable volume obligation (RVO) (dollars per barrel) (l)

 

13.78

 

 

 

6.14

 

 

 

11.60

 

 

 

5.45

 

 

 

 

 

 

 

 

 

Product margins (RVO adjusted unless otherwise noted) (dollars per barrel)

 

 

 

 

 

 

 

U.S. Gulf Coast:

 

 

 

 

 

 

 

Conventional Blendstock for Oxygenate Blending (CBOB)

gasoline less Brent

 

17.98

 

 

 

8.99

 

 

 

9.22

 

 

 

6.29

 

Ultra-low-sulfur (ULS) diesel less Brent

 

43.52

 

 

 

14.79

 

 

 

35.56

 

 

 

15.74

 

Polymer Grade Propylene less Brent (not RVO adjusted)

 

(10.61

)

 

 

(2.24

)

 

 

(11.32

)

 

 

(0.50

)

U.S. Mid-Continent:

 

 

 

 

 

 

 

CBOB gasoline less WTI

 

20.14

 

 

 

14.91

 

 

 

9.73

 

 

 

12.09

 

ULS diesel less WTI

 

41.48

 

 

 

20.60

 

 

 

32.97

 

 

 

18.55

 

North Atlantic:

 

 

 

 

 

 

 

CBOB gasoline less Brent

 

25.07

 

 

 

13.43

 

 

 

14.12

 

 

 

9.17

 

ULS diesel less Brent

 

47.50

 

 

 

18.79

 

 

 

42.02

 

 

 

19.84

 

U.S. West Coast:

 

 

 

 

 

 

 

California Reformulated Gasoline Blendstock for

Oxygenate Blending 87 gasoline less Brent

 

46.68

 

 

 

36.98

 

 

 

35.49

 

 

 

30.06

 

California Air Resources Board diesel less Brent

 

56.11

 

 

 

20.22

 

 

 

44.56

 

 

 

20.30

 

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS

(unaudited)
 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2026

 

2025

 

2026

 

2025

Renewable Diesel

 

 

 

 

 

 

 

New York Mercantile Exchange ULS diesel

(dollars per gallon)

$

3.74

 

$

2.16

 

$

3.33

 

$

2.27

Biodiesel Renewable Identification Number (RIN)

(dollars per RIN)

 

2.12

 

 

1.09

 

 

1.78

 

 

0.94

California Low-Carbon Fuel Standard carbon credit

(dollars per metric ton)

 

68.34

 

 

52.36

 

 

66.85

 

 

59.27

U.S. Gulf Coast (USGC) used cooking oil (dollars per pound)

 

0.82

 

 

0.56

 

 

0.73

 

 

0.53

USGC distillers corn oil (dollars per pound)

 

0.86

 

 

0.59

 

 

0.76

 

 

0.56

USGC fancy bleachable tallow (dollars per pound)

 

0.84

 

 

0.56

 

 

0.72

 

 

0.53

 

 

 

 

 

 

 

 

Ethanol

 

 

 

 

 

 

 

Chicago Board of Trade corn (dollars per bushel)

 

4.43

 

 

4.52

 

 

4.40

 

 

4.62

New York Harbor ethanol (dollars per gallon)

 

2.00

 

 

1.84

 

 

1.91

 

 

1.83

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

OTHER FINANCIAL DATA

(millions of dollars)

(unaudited)
 

 

June 30,

 

December 31,

 

2026

 

2025

Balance sheet data

 

 

 

Current assets

$

30,670

 

$

23,210

Cash and cash equivalents included in current assets

 

7,874

 

 

4,688

Inventories included in current assets

 

7,625

 

 

7,591

Current liabilities

 

18,742

 

 

14,109

Valero Energy Corporation stockholders’ equity

 

25,001

 

 

23,725

Total equity

 

28,268

 

 

26,605

Debt and finance lease obligations:

 

 

 

Debt –

 

 

 

Current portion of debt (excluding variable interest entities (VIEs))

$

688

 

$

672

Debt, less current portion of debt (excluding VIEs)

 

8,411

 

 

7,566

Total debt (excluding VIEs)

 

9,099

 

 

8,238

Current portion of debt attributable to VIEs

 

2

 

 

23

Total debt

 

9,101

 

 

8,261

Finance lease obligations –

 

 

 

Current portion of finance lease obligations (excluding VIEs)

 

211

 

 

228

Finance lease obligations, less current portion (excluding VIEs)

 

1,409

 

 

1,488

Total finance lease obligations (excluding VIEs)

 

1,620

 

 

1,716

Current portion of finance lease obligations attributable to VIEs

 

26

 

 

26

Finance lease obligations, less current portion attributable to VIEs

 

602

 

 

616

Total finance lease obligations attributable to VIEs

 

628

 

 

642

Total finance lease obligations

 

2,248

 

 

2,358

Total debt and finance lease obligations

$

11,349

 

$

10,619

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2026

 

2025

 

2026

 

2025

Reconciliation of net cash provided by operating activities to

adjusted net cash provided by operating activities (h)

 

 

 

 

 

 

 

Net cash provided by operating activities

$

5,580

 

$

936

 

 

$

6,970

 

$

1,888

 

Exclude:

 

 

 

 

 

 

 

Changes in current assets and current liabilities

 

706

 

 

(325

)

 

 

403

 

 

(168

)

Diamond Green Diesel LLC’s (DGD) adjusted net cash

provided by (used in) operating activities attributable to the

other joint venture member’s ownership interest in DGD

 

389

 

 

(86

)

 

 

491

 

 

(153

)

Adjusted net cash provided by operating activities

$

4,485

 

$

1,347

 

 

$

6,076

 

$

2,209

 

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

OTHER FINANCIAL DATA

(millions of dollars, except per share amounts)

(unaudited)
 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2026

 

2025

 

2026

 

2025

Reconciliation of capital investments to capital

investments attributable to Valero (h)

 

 

 

 

 

 

 

Capital expenditures (excluding VIEs)

$

222

 

 

$

144

 

 

$

382

 

 

$

333

 

Capital expenditures of VIEs:

 

 

 

 

 

 

 

DGD

 

3

 

 

 

4

 

 

 

7

 

 

 

63

 

Other VIEs

 

1

 

 

 

2

 

 

 

2

 

 

 

3

 

Deferred turnaround and catalyst cost expenditures

(excluding VIEs)

 

120

 

 

 

247

 

 

 

374

 

 

 

621

 

Deferred turnaround and catalyst cost expenditures

of DGD

 

4

 

 

 

10

 

 

 

33

 

 

 

46

 

Investments in nonconsolidated joint ventures

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

Capital investments

 

350

 

 

 

407

 

 

 

798

 

 

 

1,067

 

Adjustments:

 

 

 

 

 

 

 

DGD’s capital investments attributable to the other joint

venture member

 

(3

)

 

 

(6

)

 

 

(20

)

 

 

(54

)

Capital expenditures of other VIEs

 

(1

)

 

 

(2

)

 

 

(2

)

 

 

(3

)

Capital investments attributable to Valero

$

346

 

 

$

399

 

 

$

776

 

 

$

1,010

 

 

 

 

 

 

 

 

 

Dividends per common share

$

1.20

 

 

$

1.13

 

 

$

2.40

 

 

$

2.26

 

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

NOTES TO EARNINGS RELEASE TABLES

(a)

  

Cost of materials and other for the three and six months ended June 30, 2026 includes a benefit of $44 million resulting from the liquidation of certain LIFO inventory layers attributable to our Refining segment. Inventory levels for our West Coast refining operations decreased during the six months ended June 30, 2026 due to the phased idling of processing units and cessation of refining operations at our Benicia Refinery, which was completed by the end of April 2026. As a result, inventory levels at December 31, 2026 are expected to remain below those at December 31, 2025.

(b)

  

Taxes other than income taxes includes excise taxes on sales by certain of our foreign operations.

(c) 

  

In March 2025, we approved a plan to idle the processing units and cease refining operations at our Benicia Refinery by the end of April 2026. In addition, we considered strategic alternatives for our remaining operations in California. As a result, we evaluated the assets of the Benicia and Wilmington refineries for impairment as of March 31, 2025 and concluded that the carrying values of these assets were not recoverable. Therefore, we reduced the carrying values of the Benicia and Wilmington refineries to their estimated fair values and recognized a combined asset impairment loss of $1.1 billion in the six months ended June 30, 2025.

(d)

  

Other operating expenses for the three and six months ended June 30, 2026 includes $15 million of repair costs directly attributable to the March 2026 incident at our Port Arthur Refinery.

(e)

  

Effective in the second quarter of 2026, activities associated with the decommissioning and redevelopment of our Benicia Refinery are reported within Corporate and Other.

(f)

  

During the first quarter of 2026, we began idling the processing units through a phased approach and ceased operation of the fuel production units at our Benicia Refinery. In accordance with our plan, full idling of all processing units was completed in April 2026.

(g) 

  

Depreciation and amortization expense includes incremental depreciation related to the Benicia Refinery of approximately $33 million and $133 million in the three and six months ended June 30, 2026, respectively, and approximately $100 million in the three and six months ended June 30, 2025. In connection with our phased plan to idle the processing units and cease refining operations at our Benicia Refinery, we shortened the estimated useful life of the refinery, and as a result, the revised carrying value of the refinery’s long-lived assets was depreciated to the estimated salvage value.

(h)

  

We use certain financial measures (as noted below) in the earnings release tables and accompanying earnings release that are not defined under GAAP and are considered to be non-GAAP measures.
 

We have defined these non-GAAP measures and believe they are useful to the external users of our financial statements, including industry analysts, investors, lenders, and rating agencies. We believe these measures are useful to assess our ongoing financial performance because, when reconciled to their most comparable GAAP measures, they provide improved comparability between periods after adjusting for certain items that we believe are not indicative of our core operating performance and that may obscure our underlying business results and trends. These non-GAAP measures should not be considered as alternatives to their most comparable GAAP measures nor should they be considered in isolation or as a substitute for an analysis of our results of operations as reported under GAAP. In addition, these non-GAAP measures may not be comparable to similarly titled measures used by other companies because we may define them differently, which diminishes their utility.
 

Non-GAAP measures are as follows:

 

  • Adjusted net income attributable to Valero Energy Corporation stockholders is defined as net income attributable to Valero Energy Corporation stockholders adjusted to reflect the items noted below, along with their related income tax effect, as applicable. The income tax effect for the adjustments was calculated using a combined U.S. federal and state statutory rate of 22.5 percent. We have adjusted for these items because we believe that they are not indicative of our core operating performance and that their adjustment results in an important measure of our ongoing financial performance to better assess our underlying business results and trends. The basis for our belief with respect to each adjustment is provided below.

    • LIFO liquidation adjustment – Generally, the LIFO inventory valuation method provides for the matching of current costs with current revenues. However, a LIFO liquidation results in a portion of our current-year cost of sales being impacted by historical costs, which obscures our current-year financial performance. Therefore, we have excluded the historical cost impact from adjusted net income attributable to Valero Energy Corporation stockholders. See note (a) for additional details.

    • Asset impairment loss – The asset impairment loss attributable to our Benicia and Wilmington refineries (see note (c)) is not indicative of our ongoing operations or our expectations about the profitability of our refining business.

    • Port Arthur Refinery fire expenses – The expenses directly attributable to the March 2026 incident at our Port Arthur Refinery (see note (d)) are specific to that incident and are not indicative of our ongoing operations.

  • Adjusted earnings per common share – assuming dilution is defined as adjusted net income attributable to Valero Energy Corporation stockholders divided by the number of weighted-average shares outstanding in the applicable period, assuming dilution.

  • Refining margin is defined as Refining segment operating income (loss) excluding the LIFO liquidation adjustment (see note (a)), operating expenses (excluding depreciation and amortization expense), depreciation and amortization expense, the asset impairment loss (see note (c)), and other operating expenses. We believe Refining margin is an important measure of our Refining segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance.

  • Renewable Diesel margin is defined as Renewable Diesel segment operating income (loss) excluding operating expenses (excluding depreciation and amortization expense) and depreciation and amortization expense. We believe Renewable Diesel margin is an important measure of our Renewable Diesel segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance.

  • Ethanol margin is defined as Ethanol segment operating income excluding operating expenses (excluding depreciation and amortization expense) and depreciation and amortization expense. We believe Ethanol margin is an important measure of our Ethanol segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance.

  • Adjusted Refining operating income is defined as Refining segment operating income (loss) excluding the LIFO liquidation adjustment (see note (a)), the asset impairment loss (see note (c)), and other operating expenses. We believe adjusted Refining operating income is an important measure of our Refining segment’s operating and financial performance because it excludes items that are not indicative of that segment’s core operating performance.

  • Adjusted net cash provided by operating activities is defined as net cash provided by operating activities excluding the items noted below. We believe adjusted net cash provided by operating activities is an important measure of our ongoing financial performance to better assess our ability to generate cash to fund our investing and financing activities. The basis for our belief with respect to each excluded item is provided below.

    • Changes in current assets and current liabilities – Current assets net of current liabilities represents our operating liquidity. We believe that the change in our operating liquidity from period to period does not represent cash generated by our operations that is available to fund our investing and financing activities.

    • DGD’s adjusted net cash provided by (used in) operating activities attributable to the other joint venture member’s ownership interest in DGD – We are a 50 percent joint venture member in DGD and we consolidate DGD’s financial statements. Our Renewable Diesel segment includes the operations of DGD and the associated activities to market its products. Because we consolidate DGD’s financial statements, all of DGD’s net cash provided by (used in) operating activities (or operating cash flow) is included in our consolidated net cash provided by operating activities.

      In general, DGD’s members use DGD’s operating cash flow (excluding changes in its current assets and current liabilities) to fund its capital investments rather than distribute all of that cash to themselves. Nevertheless, DGD’s operating cash flow is effectively attributable to each member and only a portion of DGD’s operating cash flow should be attributed to our net cash provided by operating activities. Therefore, we have adjusted our net cash provided by operating activities for the portion of DGD’s operating cash flow attributable to the other joint venture member’s ownership interest because we believe that it more accurately reflects the operating cash flow available to us to fund our investing and financing activities. The adjustment is calculated as follows (in millions):

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2026

 

2025

 

2026

 

2025

DGD operating cash flow data

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

$

711

 

 

$

(262

)

 

$

239

 

 

$

(101

)

Exclude: Changes in current assets and current liabilities

 

(67

)

 

 

(89

)

 

 

(742

)

 

 

205

 

Adjusted net cash provided by (used in) operating activities

 

778

 

 

 

(173

)

 

 

981

 

 

 

(306

)

Other joint venture member’s ownership interest

 

50

%

 

 

50

%

 

 

50

%

 

 

50

%

DGD’s adjusted net cash provided by (used in) operating activities attributable to the other joint venture member’s ownership interest in DGD

$

389

 

 

$

(86

)

 

$

491

 

 

$

(153

)
°

Capital investments attributable to Valero is defined as all capital expenditures and deferred turnaround and catalyst cost expenditures presented in our consolidated statements of cash flows, excluding the portion of DGD’s capital investments attributable to the other joint venture member and all of the capital expenditures of VIEs other than DGD.

In general, DGD’s members use DGD’s operating cash flow (excluding changes in its current assets and current liabilities) to fund its capital investments rather than distribute all of that cash to themselves. Because DGD’s operating cash flow is effectively attributable to each member, only 50 percent of DGD’s capital investments should be attributed to our net share of total capital investments. We also exclude the capital expenditures of other VIEs that we consolidate because we do not operate those VIEs. We believe capital investments attributable to Valero is an important measure because it more accurately reflects our capital investments.

 

  

(i)

  

The Refining segment regions reflected herein contain the following refineries: U.S. Gulf Coast- Corpus Christi East, Corpus Christi West, Houston, Meraux, Port Arthur, St. Charles, Texas City, and Three Rivers Refineries; U.S. Mid Continent- Ardmore, McKee, and Memphis Refineries; North Atlantic- Pembroke and Quebec City Refineries; and U.S. West Coast- Benicia and Wilmington Refineries. Effective in the second quarter of 2026, activities associated with the decommissioning and redevelopment of our Benicia Refinery are reflected within Corporate and Other.

(j)

  

Primarily includes petrochemicals, gas oils, No. 6 fuel oil, petroleum coke, sulfur, and asphalt.

(k)

  

We use certain operating statistics (as noted below) in the earnings release tables and the accompanying earnings release to evaluate performance between comparable periods. Different companies may calculate them in different ways.
 

 

All per barrel of throughput, per gallon of sales, and per gallon of production amounts are calculated by dividing the associated dollar amount by the throughput volumes, sales volumes, and production volumes for the period, as applicable.
 

 

Throughput volumes, sales volumes, and production volumes are calculated by multiplying throughput volumes per day, sales volumes per day, and production volumes per day (as provided in the accompanying tables), respectively, by the number of days in the applicable period. We use throughput volumes, sales volumes, and production volumes for the Refining segment, Renewable Diesel segment, and Ethanol segment, respectively, due to their general use by others who operate facilities similar to those included in our segments. We believe the use of such volumes results in per unit amounts that are most representative of the product margins generated and the operating costs incurred as a result of our operation of those facilities.
 
(l)  

The RVO cost represents the average market cost on a per barrel basis to comply with the Renewable Fuel Standard program. The RVO cost is calculated by multiplying (i) the average market price during the applicable period for the RINs associated with each class of renewable fuel (i.e., biomass-based diesel, cellulosic biofuel, advanced biofuel, and total renewable fuel) by (ii) the quotas for the volume of each class of renewable fuel that must be blended into petroleum-based transportation fuels consumed in the U.S., as set or proposed by the U.S. Environmental Protection Agency, on a percentage basis for each class of renewable fuel and adding together the results of each calculation.

 

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