Summary
Valero Energy Corporation's 2018 10-K filing reveals a robust operational year with strong performance across its refining segment, driven by improved distillate margins and favorable crude oil discounts. Despite a slight decrease in net income compared to 2017, largely due to tax reform benefits in the prior year, the company's operational income saw a significant increase. Valero operates a vast network of 15 refineries and 14 ethanol plants, with significant assets also held through its consolidated subsidiary, Valero Energy Partners LP (VLP). The company's strategic focus in 2018 included completing the acquisition of three ethanol plants and continuing its share repurchase program. Valero's outlook for 2019 indicated expectations for refining and ethanol margins to remain near current levels. Key financial highlights include strong operational cash flow generation, supporting capital investments, dividend payments, and share repurchases. The company also completed the acquisition of all outstanding units of Valero Energy Partners LP (VLP) in early 2019, which is expected to simplify its structure and enhance financial flexibility.
Financial Highlights
50 data points| Revenue | $117.03B |
| Cost of Revenue | $111.44B |
| Gross Profit | $5.59B |
| Operating Income | $4.57B |
| Interest Expense | $470.00M |
| Net Income | $3.12B |
| EPS (Basic) | $7.30 |
| EPS (Diluted) | $7.29 |
| Shares Outstanding (Basic) | 426.00M |
| Shares Outstanding (Diluted) | 428.00M |
Key Highlights
- 1Valero operated 15 refineries with a total throughput capacity of approximately 3.1 million BPD and 14 ethanol plants with a capacity of 1.73 billion gallons per year.
- 2Refining segment adjusted operating income increased by $961 million in 2018 compared to 2017, primarily driven by improved distillate margins and favorable crude oil discounts.
- 3Net income attributable to Valero stockholders decreased to $3.1 billion in 2018 from $4.1 billion in 2017, mainly due to a $1.9 billion tax benefit in 2017 from Tax Reform.
- 4The company's total liquidity was $7.1 billion as of December 31, 2018, consisting of $2.7 billion in cash and cash equivalents and $4.4 billion in available borrowing capacity.
- 5Valero continued its common stock repurchase program, with $2.2 billion remaining available under its 2018 authorization as of December 31, 2018.
- 6The company completed the acquisition of all outstanding publicly held common units of Valero Energy Partners LP (VLP) on January 10, 2019, for approximately $950 million.
- 7Valero experienced a decrease in gasoline margins in 2018 compared to 2017, which unfavorably impacted its refining segment margin by an estimated $1.3 billion.