Valero(VLO) - 2023 Q1 - Quarterly Report

Financial Performance - Net income attributable to Valero stockholders for Q1 2023 was $3.1 billion, a$2.2 billion increase from $905 million in Q1 2022, driven by a$2.7 billion increase in operating income[121] - Total company operating income grew by $2.659 billion to$4.043 billion in Q1 2023 compared to $1.384 billion in Q1 2022[122] - Operating income increased by$2.7 billion in Q1 2023 compared to Q1 2022, with refining segment contributing $2.6 billion due to higher gasoline and diesel margins, crude oil discounts, and throughput volumes[123] - Net income attributable to Valero Energy Corporation stockholders was$3.067 billion in Q1 2023, compared to $905 million in Q1 2022[130][133] - Operating income increased by$2.7 billion (195%) to $4.0 billion in Q1 2023, driven by a$4.8 billion decrease in cost of sales[141] - Total company operating income reached $4,043 million in Q1 2023, compared to$1,384 million in Q1 2022[167] Segment Performance - Refining segment operating income increased by $2.6 billion to$4.057 billion in Q1 2023 compared to $1.451 billion in Q1 2022[122] - Renewable Diesel segment operating income rose by$56 million to $205 million in Q1 2023 from$149 million in Q1 2022[122] - Ethanol segment operating income increased by $38 million to$39 million in Q1 2023 from $1 million in Q1 2022[122] - Renewable Diesel segment operating income increased by$56 million in Q1 2023, driven by higher sales volumes despite lower renewable diesel prices and higher operating expenses[123] - Ethanol segment adjusted operating income increased by $37 million in Q1 2023, primarily due to higher corn-related co-product prices and production volumes, partially offset by lower ethanol prices[124] - Refining segment operating income increased by$2.6 billion (180%) to $4.1 billion in Q1 2023, with refining margin up$2.7 billion (84%)[146][147] - Renewable Diesel segment operating income increased by $56 million (38$205 million in Q1 2023, with sales volumes up 1.3 million gallons per day (72%)[150][151] - Ethanol segment operating income increased by $38 million to$39 million in Q1 2023, driven by a $32 million (20$4,057 million in Q1 2023, up from $1,451 million in Q1 2022[161] - Renewable Diesel operating income rose to$205 million in Q1 2023, compared to $149 million in Q1 2022[162] - Ethanol operating income surged to$39 million in Q1 2023, up from $1 million in Q1 2022[163] Cash Flow and Liquidity - Operations generated$3.2 billion of cash in Q1 2023, with $524 million used for capital investments and$1.8 billion returned to stockholders through stock buybacks and dividends[120] - Cash and cash equivalents increased by $659 million to$5.5 billion as of March 31, 2023, from $4.9 billion as of December 31, 2022[120] - Liquidity stood at$10.8 billion as of March 31, 2023[120] - Cash and cash equivalents totaled $5,403 million as of March 31, 2023[170] - Operating activities generated$3,170 million in cash flow for Q1 2023, up from $588 million in Q1 2022[174] - Net increase in cash and cash equivalents was$659 million for Q1 2023[174] Capital Investments and Debt Management - The company purchased approximately $199 million of its public debt during Q1 2023, contributing to debt reduction efforts[120] - Capital investments for Q1 2023 amounted to$549 million, including $114 million related to DGD[175] - Debt repayments and finance lease obligations totaled$1,156 million in Q1 2023[174] - Return to stockholders through stock repurchases and dividends was $1,830 million in Q1 2023[174] - Capital investments attributable to Valero for the three months ended March 31, 2023, totaled$467 million, compared to $718 million in the same period in 2022[186] - Valero expects to incur approximately$2.0 billion in capital investments for 2023, with $1.5 billion allocated to sustaining the business and the remainder towards growth strategies, including over 40$199 million of its public debt[188] - Valero repurchased 10,993,341 shares for $1.5 billion during the three months ended March 31, 2023, with$899 million remaining under the October 2022 Program and $2.5 billion available under the 2023 Program[189] - Valero's fixed-rate debt as of March 31, 2023, totaled$8.265 billion, with an average interest rate of 4.8%, while floating-rate debt stood at $852 million with an average interest rate of 8.1$82.20 per barrel in Q1 2023, down from $97.34 per barrel in Q1 2022[136] - Total company revenues decreased by$2.1 billion (5.5%) in Q1 2023 compared to Q1 2022, primarily due to lower petroleum-based transportation fuel prices[141] Production and Throughput - Throughput volumes in the Refining segment increased by 130,000 barrels per day (4.6%) in Q1 2023 compared to Q1 2022[146] - Renewable Diesel segment margin increased by $123 million (54$149 million in Q1 2023, including a $61 million gain from early retirement of debt[143][144] - Income tax expense increased by$628 million (249%) in Q1 2023 due to higher pre-tax income[144] - As of March 31, 2023, Valero held $4.3 billion in cash and cash equivalents in foreign subsidiaries, which can be repatriated with potential tax implications[191] - Valero plans to contribute$108 million to its pension plans and $21 million to other postretirement benefit plans during 2023[190] Environmental and Regulatory Matters - Valero resolved an environmental enforcement matter with the EPA related to a 2019 emissions event at its Benicia Refinery through a Consent Agreement and Final Order on March 30, 2023[203]