Profile: Valero Energy Corp (VLO.N)
6 Dec 2013
Valero Energy Corporation (Valero), incorporated June 8, 1981, is an independent petroleum refining and marketing company. Valero’s refineries can produce conventional gasoline’s, distillates, jet fuel, asphalt, petrochemicals, lubricants, and other refined products, as well as a slate of premium products, including conventional blendstock for oxygenate blending (CBOB)and reformulated gasoline blendstock for oxygenate blending (RBOB), gasoline meeting the specifications of the California Air Resources Board (CARB), CARB diesel fuel, and low-sulfur and ultra-low-sulfur diesel fuel. The Company also owns 10 ethanol plants in the central plains region of the United States with a combined ethanol nameplate production capacity of about 1.1 billion gallons per year. Valero operates in three business segments: refining, ethanol, and retail. On October 1, 2011, it acquired the Meraux Refinery and related logistics assets from Murphy Oil Corporation. On August 1, 2011, it acquired 100% interest of Chevron Limited from a subsidiary of Chevron Corporation. On August 1, 2011, it acquired Pembroke Refinery. In May 2013, CST Brands Inc announced that the Company which includes Corner Store and Depanneur du Coin, spun off from Valero Energy Corporation.
The Company markets its refined products through an bulk and rack marketing network and it sells refined products through a network of approximately 6,800 retail and wholesale branded outlets in the United States, Canada, the United Kingdom, Aruba, and Ireland under various brand names, including Valero, Diamond Shamrock, Shamrock, Ultramar, Beacon, and Texaco. The Company also produces ethanol and operates 10 ethanol plants in the United States with a combined nameplate production capacity of approximately 1.1 billion gallons per year as of December 31, 2011.
Valero’s refining segment includes refining operations, wholesale marketing, product supply and distribution, and transportation operations. The refining segment is segregated geographically into the United States Gulf Coast, United States Mid-Continent, North Atlantic, and United States West Coast regions. On December 31, 2011, the Company’s refining operations included 16 refineries in the United States, Canada, the United Kingdom, and Aruba, with a combined total throughput capacity of approximately 3.0 million barrels per day. During the year ended December 31, 2011, its total combined throughput volumes averaged 2.4 million barrels per day. The Company’s Corpus Christi East and West Refineries are located on the Texas Gulf Coast along the Corpus Christi Ship Channel. The East Refinery processes sour crude oil into conventional gasoline, diesel, jet fuel, asphalt, aromatics, and other light products. The West Refinery specializes in processing primarily sour crude oil and residual fuel oil into premium products, such as RBOB.
The Company’s Port Arthur Refinery is located on the Texas Gulf Coast approximately 90 miles east of Houston. The refinery processes primarily heavy sour crude oils and other feedstocks into gasoline, diesel, jet fuel, petrochemicals, intermediates, petroleum coke, and sulfur. The refinery receives crude oil over marine docks and through crude oil pipelines, and has access to the Sunoco and Oiltanking terminals at Nederland, Texas. Finished products are distributed into the Colonial, Explorer, and TEPPCO pipelines and across the refinery docks into ships or barges. The Company’s St. Charles Refinery is located approximately 15 miles from New Orleans along the Mississippi River. The refinery processes sour crude oils and other feedstocks into gasoline, distillates, and other light products. The refinery receives crude oil over five marine docks and has access to the Louisiana Offshore Oil Port where it can receive crude oil through a 24-inch pipeline. Finished products can be shipped over these docks or through the Colonial pipeline network for distribution to the eastern United States.
The Company’s Texas City Refinery is located southeast of Houston on the Texas City Ship Channel. The refinery processes sour crude oils into a wide slate of products. The refinery receives and delivers its feedstocks and products by ship and barge through deepwater docking facilities along the Texas City Ship Channel and uses the Colonial, Explorer, and TEPPCO pipelines for distribution of its products. The Company’s Aruba Refinery is located on the island of Aruba in the Caribbean Sea. It processes primarily heavy sour crude oil and produces intermediate feedstocks and finished distillate products. Significant amounts of the refinery’s intermediate feedstock production are transported and further processed in its other refineries in the United States Gulf Coast and United States West Coast regions. The refinery receives crude oil by ship at its two deepwater marine docks, which can berth ultra-large crude carriers. The refinery’s products are delivered by ship primarily into markets in the United States, the Caribbean, Europe, and South America.
The Company’s Houston Refinery is located on the Houston Ship Channel. It processes a mix of crude oils and low-sulfur residual fuel oil into reformulated gasoline and distillates. The refinery receives its feedstocks through tanker at deepwater docking facilities along the Houston Ship Channel and interconnecting pipelines with the Texas City Refinery. It delivers its products through major refined-product pipelines, including the Colonial, Explorer, Orion, and TEPPCO pipelines. The Company’s Meraux Refinery is located in St. Bernard Parish southeast of New Orleans. The refinery processes primarily medium sour crude oils into gasoline, distillates, and other light products. The refinery receives crude oil at its marine dock and has access to the Louisiana Offshore Oil Port where it can receive crude oil through the Clovelly-Alliance-Meraux pipeline system. Finished products can be shipped from the refinery’s dock or through the Colonial pipeline network for distribution to the eastern United States. The Meraux Refinery is located about 40 miles from its St. Charles Refinery, allowing for integration of feedstocks and refined product blending. The Company’s Three Rivers Refinery is located in South Texas between Corpus Christi and San Antonio. It processes sweet and medium sour crude oils into gasoline, distillates, and aromatics. The refinery has access to crude oil from sources outside the United States delivered to the Texas Gulf Coast at Corpus Christi, as well as crude oil from United States sources through third-party pipelines and trucks. A 70-mile pipeline transports crude oil through connections to the Three Rivers Refinery from Corpus Christi. The refinery distributes its refined products primarily through pipelines owned by NuStar Energy L.P.
The Company’s Benicia Refinery is located northeast of San Francisco on the Carquinez Straits of San Francisco Bay. It processes sour crude oils into premium products, primarily CARBOB gasoline. The refinery receives crude oil feedstocks through a marine dock that can berth crude oil carriers and a 20-inch crude oil pipeline connected to a southern California crude oil delivery system. Most of the refinery’s products are distributed through the Kinder Morgan pipeline system in California. The Company’s Wilmington Refinery is located near Los Angeles, California. The refinery processes a blend of lower-cost heavy and high-sulfur crude oils. The refinery can produce all of its gasoline as CARBOB gasoline and produces ultra-low-sulfur diesel, CARB diesel, and jet fuel. The refinery is connected by pipeline to marine terminals and associated dock facilities that can move and store crude oil and other feedstocks. Refined products are distributed through the Kinder Morgan pipeline system and various third-party terminals in southern California, Nevada, and Arizona.
The Company’s Memphis Refinery is located in Tennessee along the Mississippi River’s Lake McKellar. It processes primarily sweet crude oils. Most of its production is light products, including regular and premium gasoline, diesel, jet fuels, and petrochemicals. Crude oil is supplied to the refinery through the Capline pipeline and can also be received, along with other feedstocks, through barge. The refinery’s products are distributed through truck racks at its three product terminals, barges, and a pipeline network, including one pipeline directly to the Memphis airport. The Company’s McKee Refinery is located in the Texas Panhandle. It processes primarily sweet crude oils into conventional gasoline, RBOB, low-sulfur diesel, jet fuels, and asphalt. The refinery has access to crude oil from Texas, Oklahoma, Kansas, and Colorado through third-party pipelines. The refinery also has access at Wichita Falls, Texas to third-party pipelines that transport crude oil from West Texas to the United States Mid-Continent region. The refinery distributes its products primarily through NuStar Energy L.P.’s pipelines to markets in Texas, New Mexico, Arizona, Colorado, and Oklahoma.
The Company’s Ardmore Refinery is located in Ardmore, Oklahoma, approximately 100 miles south of Oklahoma City. It processes medium sour and sweet crude oils into conventional gasoline, ultra-low-sulfur diesel, liquefied petroleum gas products, and asphalt. Local crude oil is gathered by TEPPCO’s crude oil gathering/trunkline systems and trucking operations, and is then transported to the refinery through third-party crude oil pipelines. The refinery also receives crude oil from other locations through third-party pipelines. Refined products are transported to market through railcars, trucks, and the Magellan pipeline system. The Company’s Pembroke Refinery is located in the County of Pembrokeshire in southwest Wales, United Kingdom. The refinery processes primarily sweet crude oils into ultra-low sulfur gasoline and diesel, jet fuel, heating oil, and low sulfur fuel oil. The refinery receives all of its feedstocks and delivers the majority of its products by ship and barge through deepwater docking facilities along the Milford Haven Waterway with its remaining products being delivered by the Mainline pipeline system.
The Company’s Quebec City Refinery is located in Levis, Canada. It processes sweet, high mercaptan crude oils and lower-quality, sweet acidic crude oils into conventional gasoline, low-sulfur diesel, jet fuel, heating oil, and propane. The refinery receives crude oil by ship at its deepwater dock on the St. Lawrence River. It charters large ice-strengthened, double-hulled crude oil tankers that can navigate the St. Lawrence River year-round. The refinery transports its products to its terminals in Quebec and Ontario primarily by train, and also uses ships and trucks throughout eastern Canada. The Company’s Specialty Products include asphalt, lube oils, natural gas liquids (NGLs), petroleum coke, petrochemicals, and sulfur. It produces asphalt at five of its refineries. Its asphalt products are sold for use in road construction, road repair, and roofing applications through a network of refinery and terminal loading racks. It produces napthenic oils at one of its refineries suitable for a range of lubricant and process applications. NGLs produced at its refineries include butane, isobutane, and propane. These products can be used for gasoline blending, home heating, and petrochemical plant feedstocks. It is a producer of petroleum coke, supplying primarily power generation customers and cement manufacturers. It produces and market a number of commodity petrochemicals, including aromatic solvents (benzene, toluene, and xylene) and two grades of propylene. Aromatic solvents and propylenes are sold to customers in the chemical industry for further processing, into such products as paints, plastics, and adhesives. It is a producer of sulfur with sales primarily to customers in the agricultural sector.
Valero’s ethanol segment includes sales of internally produced ethanol and distillers grains. The Company’s ethanol operations are geographically located in the central plains region of the United States. As of December 31, 2011, it owned 10 ethanol plants with a combined ethanol nameplate production capacity of about 1.1 billion gallons per year. Its ethanol plants are dry mill facilities1 that process corn to produce ethanol and distillers grains. It sources its corn supply from local farmers and commercial elevators. The Company sells its ethanol to customers, primarily refiners and gasoline blenders, under term and spot contracts, and in bulk markets, such as New York, Chicago, Dallas, Florida, and the United States West Coast. It also uses its ethanol for its own needs in blending gasoline. It ships its dry distillers grains (DDG) by truck or rail primarily to animal feed customers in the United States and Mexico, with some sales into the Far East. It also sells modified distillers grains locally at its plant sites.
Valero’s retail segment includes company-operated convenience stores, Canadian dealers/jobbers, truckstop facilities, cardlock facilities, and home heating oil operations. The retail segment is segregated into two geographic regions. The Company’s retail operations in the United States are referred to as Retail-U.S. The Company’s retail operations in Canada are referred to as Retail-Canada. Its retail segment operations include sales of transportation fuels at retail stores and unattended self-service cardlocks; sales of convenience store merchandise and services in retail stores, and sales of home heating oil to residential customers.
Sales in Retail-U.S. represent sales of transportation fuels and convenience store merchandise and services through its company-operated retail sites. During 2011, total sales of transportation fuels through Retail-U.S.’s sites averaged 119,780 barrels per day. In addition to transportation fuels, its company-operated stores sell convenience-type items, such as tobacco products, beer, snacks and beverages, and fast foods. Its stores also offers services, such as automated teller machine (ATM) access, money orders, lottery tickets, car wash facilities, air and water, and video rentals. On December 31, 2011, it had 998 company-operated sites in Retail-U.S. (of which 80% were owned and 20% were leased). The Company's company-operated stores are operated primarily under the Corner Store brand name. Transportation fuels sold in its Retail-U.S. stores are sold primarily under the Valero brand. Sales in Retail-Canada include sales of transportation fuels and convenience store merchandise through its company-operated retail sites and cardlocks; sales of transportation fuels through sites owned by independent dealers and jobbers, and sales of home heating oil to residential customers.
Retail-Canada includes retail operations in eastern Canada where the Company is a supplier of transportation fuels serving Quebec, Ontario, Newfoundland, Nova Scotia, New Brunswick, and Prince Edward Island. During, 2011, total retail sales of transportation fuels through Retail-Canada averaged approximately 76,100 barrels per day. Transportation fuels are sold under the Ultramar brand through a network of 791 outlets throughout eastern Canada. On December 31, 2011, it owned or leased 381 retail stores in Retail-Canada and distributed gasoline to 410 dealers and independent jobbers. In addition, Retail-Canada operates 82 cardlocks, which are card- or key-activated, self-service, unattended stations that allow commercial, trucking, and governmental fleets to buy transportation fuel around-the-clock. Retail-Canada operations also include a home heating oil business that provides home heating oil to approximately 133,000 households in eastern Canada.
Valero Energy Corp
P.O. Box 696000
SAN ANTONIO TX 78269-6000
Company Web Links
- PDVSA's oil exports to Citgo decline, U.S. oil firms buy more -EIA
- UPDATE 1-US Gulf gasoline differentials up on talk of refinery woes
- UPDATE 1-Valero profit beats estimates as it refines more crude
- Valero lands Latam's biggest fuel deal of year
- UPDATE 2-Valero lands Latam's biggest fuel deal of year