Full Description

Valero Energy Corporation, incorporated in 1981, owns and operates 16 refineries located in the United States, Canada, and Aruba that produce conventional gasolines, 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). The Company markets refined products on a wholesale basis in the United States and Canada through bulk and rack marketing network. It also sells refined products through a network of about 5,800 retail and wholesale branded outlets in the United States, Canada, and Aruba. The Company operates through two segments: refining and retail.

The Company’s refining segment includes refining operations, wholesale marketing, product supply and distribution, and transportation operations. The refining segment is segregated geographically into the Gulf Coast, Mid-Continent, West Coast, and Northeast regions. Its 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. Its retail operations in eastern Canada are referred to as Retail - Canada, and retail operations in the United States are referred to as Retail - U.S.

Refining

During the year ended December 31, 2008, the Company’s refining operations included 16 refineries in the United States, Canada, and Aruba with a combined total throughput capacity of approximately 3.0 million barrels per day (BPD). The refineries are segmented geographically, which include Gulf Coast, West Coast, Mid-Continent and Northeast. Gulf Coast comprises of Corpus Christi, Port Arthur, St. Charles, Texas City, Aruba, Houston and Three Rivers. West Coast includes Benicia and Wilmington. Mid-Continent includes Memphis, McKee and Ardmore. Northeast includes Quebec City, Delaware City and Paulsboro. Refining segment includes sales of refined products in both the wholesale rack and bulk markets. The Company markets branded and unbranded transportation fuels on a wholesale basis in 44 states. The principal purchasers of its transportation fuels from terminal truck racks are wholesalers, distributors, retailers, and truck-delivered end users throughout the United States. The rack volume is sold through unbranded channels. The Company sells portion of its gasoline and distillate production through bulk sales channels in domestic and international markets. Bulk sales are transported primarily by pipeline, barges, and tankers to tank farms and trading hubs. The Company also, sells other products referred as, specialty products, which include asphalt, lube oils, natural gas liquids (NGL), petroleum coke, petrochemicals, and sulfur.

Retail

The Company’s retail segment operations include sales of transportation fuels at retail stores and unattended self-service cardlocks, sales of convenience store merchandise 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 through its company-operated retail sites. In addition, company-operated convenience stores sell snacks, candy, beer, fast foods, cigarettes, and fountain drinks. It is operated primarily under the brand name Corner Store. Retail - Canada includes retail operations in eastern Canada, which comprises of Quebec, Ontario, and the Atlantic Provinces of Newfoundland, Nova Scotia, New Brunswick, and Prince Edward Island. Transportation fuels are sold under the Ultramar brand through a network of 865 outlets throughout eastern Canada. During 2008, the Company owned or leased 412 retail stores in Retail - Canada and distributed gasoline to 453 dealers and independent jobbers. In addition, it operates 85 cardlocks, which are card- or key-activated, self-service, unattended stations.