Visibility to Growth and Disciplined Capital Management
Notes
Slide 9
Contractor total recordable incident rate from U.S. Bureau of Labor Statistics. Tier 1 three-year rolling averages of process safety events per 20,000 work
hours. Tier 1 defined within API Recommended Practice 754. Industry benchmarking and Valero's performance statistics from Solomon Associates and
Valero.
Slide 10
Industry benchmarking and Valero's performance statistics from Solomon Associates and Valero.
Slide 11
Crude distillation capacities by geographic location from 10-K filings and company reports. U.S. Gulf Coast region is consistent with EIA's PADD 3; U.S.
Mid-Continent region represents PADDS 2 and 4.
Slide 12
Valero's actual U.S. gasoline and distillate export volumes and current and potential future gasoline and distillate export capacities are shown in the chart.
Potential future gasoline and distillate export capacities are based upon expansion opportunities identified at the
St. Charles (gasoline and distillate), Port Arthur (gasoline and distillate), Corpus Christi (gasoline), and Texas City (distillate) refineries. Potential capacity
also includes Pasadena terminal currently under construction. Map shows destinations for products exported from Valero's refineries in the U.S., Canada
and the U.K.
Slide 13
Amounts shown represent targeted EBITDA growth. We are unable to provide a reconciliation of such forward-looking targets because certain information
needed to make a reasonable forward-looking estimate is difficult to estimate and dependent on future events, which are uncertain or outside of our
control, including with respect to unknown financing terms, project timing and costs, and other potential variables. Accordingly, a reconciliation is not
available without unreasonable effort.
Slide 18
Refining EBITDA per barrel of throughput is defined as refining margin less operating expenses (excluding depreciation and amortization expenses)
divided by total throughput volumes. VLO defines refining margin as refining operating income excluding operating expenses (excluding depreciation and
amortization expense), depreciation and amortization expense, lower cost or market inventory valuation adjustment, and asset impairment loss. Earnings
per share adjusted to exclude special or nonrecurring items. Free cash flow is defined as net cash provided by operating activities less capital
expenditures, deferred turnaround and catalyst cost expenditures, investments in joint ventures, and changes in current assets and liabilities. Average free
cash flow for PBF reflects years 2013 to 2018 due to its December 2012 IPO.
Slide 19
Volatility expressed as coefficient of variance, or the standard deviation divided by the mean, of the respective metric on a quarterly basis from the first
quarter of 2012 through the third quarter of 2019. EBITDA is defined as net income plus income tax, net interest and depreciation and amortization. TSR
from December 31, 2012 through October 31, 2019. TSR includes stock price appreciation and dividends paid.
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