Valero Energy Reports 2015 Fourth Quarter and Full Year Results

Corporate and Other
General and administrative expenses were $206 million in the fourth quarter of 2015 compared to $214 million in the fourth quarter of 2014.  The effective tax rate was 28 percent in the fourth quarter of 2015.

Capital Investments
In the fourth quarter of 2015, capital investment was $732 million, of which $164 million was for turnarounds and catalyst and $136 million was for joint venture investments.  In 2015, capital investment was $2.4 billion for turnarounds, catalyst, strategic, and joint venture investments consisting of $1.4 billion for stay-in-business capital and $1.0 billion to advance Valero's growth strategies.  Approximately 40 percent of the 2015 growth capital spending was allocated to investments in logistics assets that support Valero's operations and potential drop-down transactions to Valero Energy Partners LP ("VLP").

Stockholder Distributions
Valero paid $240 million in dividends and purchased 11.1 million shares of its common stock for $767 million, resulting in total cash returned to stockholders of $1 billion in the fourth quarter of 2015.  In 2015, Valero returned $3.7 billion to stockholders, or 80 percent of adjusted net income from continuing operations attributable to Valero stockholders, consisting of $848 million in dividends and $2.8 billion in stock buybacks.  The company is targeting a payout ratio of 75 percent of net income in 2016.  Valero defines total payout ratio as the sum of dividends plus stock buybacks divided by adjusted net income from continuing operations attributable to Valero stockholders.

On January 21, Valero announced a 20 percent increase in its quarterly common stock dividend from $0.50 per share to $0.60 per share, payable on March 3, 2016, to holders of record on February 9, 2016.

"This latest increase in our dividend further demonstrates our confidence in Valero's earnings power, which is anchored by our high quality portfolio concentrated in the U.S. Gulf Coast," said Gorder. "Having a dividend among the top of our peer group is an important part of our team's core objectives to deliver significant, sustainable value to our stockholders while maintaining safe and reliable operations and disciplined capital allocation."

Liquidity and Financial Position
Valero ended the fourth quarter of 2015 with $7.4 billion in total debt and $4.1 billion of cash and temporary cash investments, of which $81 million was held by VLP.  The company's debt to capital ratio, net of $2 billion in cash, was 20 percent.

Strategic Update
In the fourth quarter of 2015, the company commissioned its new crude unit at the Corpus Christi refinery, completed the hydrocracker expansion at the Port Arthur refinery, and completed the crude unit expansion at the McKee refinery.  Valero also acquired a 50 percent interest in the Diamond Pipeline that will connect Cushing, OK to Memphis, TN and began receiving crude oil at the Quebec City refinery from Enbridge's Line 9B pipeline.  The company expects the new crude unit under construction at the Houston refinery to be completed in the second quarter of 2016.

In January 2016, Valero's Board of Directors approved the construction of a 13,000 barrel per day alkylation unit at the Houston refinery.  The unit will upgrade low-cost natural gas liquids into premium priced alkylate.  Management expects the project to be completed in the first half of 2019 for an estimated cost of $300 million.

Valero expects 2016 capital investments, including turnarounds, catalyst, and joint venture investments, to be $2.6 billion, which includes $1.6 billion for stay-in-business capital and $1.0 billion for growth investments.  Approximately 55 percent of planned growth investment in 2016 is allocated for logistics projects and 45 percent for refining asset optimization.  The company believes that most of the logistics investments will be eligible for future drop-down transactions to VLP. 

Conference Call
Valero's senior management will hold a conference call at 11 a.m. ET today to discuss this earnings release and to provide an update on company operations and strategy.

About Valero
Valero Energy Corporation, through its subsidiaries, is an international manufacturer and marketer of transportation fuels, other petrochemical products and power.  Valero subsidiaries employ approximately 10,000 people, and its assets include 15 petroleum refineries with a combined throughput capacity of approximately 3.0 million barrels per day, 11 ethanol plants with a combined production capacity of 1.3 billion gallons per year, a 50-megawatt wind farm, and renewable diesel production from a joint venture. Through subsidiaries, Valero owns the general partner of Valero Energy Partners LP (NYSE: VLP), a midstream master limited partnership.  Approximately 7,500 outlets carry the Valero, Diamond Shamrock, Shamrock, and Beacon brands in the United States and the Caribbean; Ultramar in Canada; and Texaco in the United Kingdom and Ireland.  Valero is a Fortune 500 company based in San Antonio. Please visit www.valero.com for more information.

Valero Contacts
Investors:
John Locke, Vice President – Investor Relations, 210-345-3077
Karen Ngo, Manager – Investor Relations, 210-345-4574

Media:
Steve Lee, Manager – Corporate Communications, 210-345-4137

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Safe-Harbor Statement
Statements contained in this release 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 1934.  The words "believe," "expect," "should," "estimates," "intend," and other similar expressions identify forward-looking statements.  It is important to note that actual results could differ materially from those projected in such forward-looking statements.  For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see Valero's annual reports on Form 10-K and quarterly reports on Form 10-Q filed with the SEC and on Valero's website at www.valero.com, and VLP's annual reports on Form 10-K and quarterly reports on Form 10-Q filed with the SEC and on VLP's website at www.valeroenergypartners.com.

Use of Non-GAAP Financial Information
This earnings release includes references to financial measures that are not defined under U.S. generally accepted accounting principles ("GAAP"). These non-GAAP measures include adjusted net income, adjusted net income per share, adjusted refining segment operating income, and adjusted ethanol segment operating income.  However, these non-GAAP financial measures have been included in this earnings release to help facilitate the comparison of operating results between periods.  See the accompanying tables in this earnings release for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures.

VALERO ENERGY CORPORATION AND SUBSIDIARIES
EARNINGS RELEASE
(Millions of Dollars, Except per Share, per Barrel, and per Gallon Amounts)
(Unaudited)
		Three Months Ended								Year Ended
		December 31,								December 31,
		2015				2014				2015				2014
Statement of Income Data:
Operating revenues		$	18,777			$	27,859			$	87,804			$	130,844
Costs and expenses:
Cost of sales (excluding the lower of cost or market inventory valuation adjustment) (a) (b)		15,627				24,321				73,861				118,141
Lower of cost or market inventory valuation adjustment (c)		790				—				790				—
Operating expenses		1,014				1,103				4,243				4,387
General and administrative expenses		206				214				710				724
Depreciation and amortization expense		494				425				1,842				1,690
Total costs and expenses		18,131				26,063				81,446				124,942
Operating income		646				1,796				6,358				5,902
Other income, net		11				9				46				47
Interest and debt expense, net of capitalized interest		(107)				(101)				(433)				(397)
Income from continuing operations before income tax expense		550				1,704				5,971				5,552
Income tax expense (d) Werbung Mehr Nachrichten zur Valero Energy Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 27.04.24 - BTC-Echo Bitcoin-Marktsentiment kühlt ab: Dreht jetzt der BTC-Kurs? 27.04.24 - bullvestor Nurexone Biologic: Jetzt diese wirklich einzigartige Chance ergreifen? 27.04.24 - Boersia.de Microsoft Aktie: Künstliche Intelligenz treibt Wachstum Biotech-Einhorn!    FDA Zulassung für das CBD-Wunder?! weiterlesen» Anzeige wo-site-teaser-box-16773_site-teaser-box_2024-04-27_09%253A00%253A00_2024-04-28_09%253A00%253A59