Visibility to Growth and Disciplined Capital Management slide image

Visibility to Growth and Disciplined Capital Management

Non-GAAP Disclosures: Adjusted EBITDA and Net Debt-to-Adjusted EBITDA 39 RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA AND NET DEBT-TO-ADJUSTED EBITDA (Unaudited, in Millions, Except Ratio Amount) Net income Nine Months Ended September 30, 2018 $ 2,331 Year Ended Nine Months Ended December 31, 2018 September 30, 2019 $ 3,353 $ 1,454 Less: Deferred turnaround and catalyst cost expenditures Less: Blender's tax credit 661 915 599 170 170 Plus: Loss on early redemption of debt 38 38 22 Plus: Texas City Refinery fire expenses 14 17 Plus: Environmental reserve adjustment 108 108 Plus: Depreciation and amortization expense 1,538 2,069 1,684 Plus: Interest and debt expense, net of capitalized interest 356 470 335 Plus: Income tax expense 674 879 376 Adjusted EBITDA 4,228 5,849 3,272 TTM adjusted EBITDA = $5,849 + $3,272 - $4,228 $ 4,893 September 30, 2019 Debt and finance lease obligations, less current portion Current portion of debt and finance lease obligations Cash and cash equivalents Total debt net of cash TTM net debt-to-adjusted EBITDA = $7,435 / $4,893: 9,170 402 (2,137) 7,435 1.5x Valero
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