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Valero Energy (NYSE: VLO) Q2 2026 profit reaches $3.7B

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Valero Energy Corporation reported very strong second-quarter 2026 results. Net income attributable to stockholders was $3.7 billion, or $12.62 per diluted share, for the quarter ended June 30, 2026, compared with $714 million, or $2.28 per share, a year earlier. Excluding specified items, adjusted net income was $3.697 billion, or $12.54 per share. Revenues were $44.476 billion versus $29.889 billion in the prior-year quarter, and the effective tax rate was 21 percent.

The Refining segment generated operating income of $4.47 billion versus $1.266 billion in 2025, with refining margin of $6.342 billion and margin per barrel of $23.62 on 2.95 million barrels per day of throughput. Renewable Diesel delivered $717 million of operating income, reversing a $79 million loss, while Ethanol operating income increased to $318 million from $54 million; both segments reported higher per-unit margins.

Net cash provided by operating activities was $5.58 billion, including a $706 million working-capital benefit and $389 million attributable to the other Diamond Green Diesel joint-venture member; adjusted operating cash flow was $4.485 billion. Capital investments were $350 million, and stockholder cash returns totaled $2.6 billion, a 59 percent payout of adjusted operating cash flow. Valero ended the quarter with $9.101 billion of debt, $2.248 billion of finance lease obligations, and $7.874 billion of cash, for a debt-to-capitalization ratio net of cash of 11 percent. The $230 million St. Charles FCC optimization project remains on track for completion and start-up in the third quarter of 2026.

Positive

  • Net income attributable to stockholders rose to $3.7 billion in Q2 2026 from $714 million a year earlier, with diluted EPS increasing to $12.62 from $2.28.
  • The Renewable Diesel segment swung from a $79 million operating loss to $717 million of operating income in Q2 2026, supported by stronger margins and higher sales volumes.
  • Net cash provided by operating activities reached $5.58 billion in Q2 2026, enabling $2.6 billion of stockholder cash returns, equal to 59 percent of adjusted operating cash flow.

Negative

  • None.

Filing Explained

Benicia refining operations ended in April 2026, shifting the site to decommissioning and redevelopment; the results remain furnished, not filed.

This Form 8-K, used to report specified material events within four business days, furnishes Valero’s second-quarter results under Item 2.02 rather than filing them; the release is not automatically incorporated into the company’s registration statements.

Valero’s plan to idle the Benicia Refinery and cease refining operations was completed in April 2026, so refining operations there have ended. Activities associated with decommissioning and redevelopment are now reported within Corporate and Other.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net income attributable to stockholders Q2 2026 $3,720 million Three months ended June 30, 2026
Diluted EPS Q2 2026 $12.62 Earnings per common share – assuming dilution, three months ended June 30, 2026
Revenues Q2 2026 $44,476 million Statement of income data, three months ended June 30, 2026
Refining margin Q2 2026 $6,342 million Refining segment operating statistics, three months ended June 30, 2026
Net cash provided by operating activities Q2 2026 $5,580 million Three months ended June 30, 2026, reconciliation of operating cash flow
Capital investments Q2 2026 $350 million Capital investments for the three months ended June 30, 2026
Stockholder cash returns Q2 2026 $2.6 billion Q2 2026 stockholder cash returns, payout ratio 59 percent of adjusted operating cash flow
Debt to capitalization ratio net of cash 11 percent As of June 30, 2026, net of cash and cash equivalents
Refining margin financial
"Refining margin (from Table Page 5) was $6,342 million in Q2 2026"
Refining margin is the difference between the price a refinery gets for selling finished fuels and the cost it paid for crude oil and processing those barrels. Think of it like the profit margin a baker earns after buying flour and paying oven time to sell bread; higher margins mean refineries can cover costs and earn more, while lower or negative margins warn of tighter profits and potential losses. Investors watch it as a direct indicator of refinery profitability and cash flow.
Renewable Diesel margin financial
"Renewable Diesel margin (from Table Page 5) was $879 million in Q2 2026"
LIFO liquidation adjustment financial
"includes a benefit of $44 million resulting from the liquidation of certain LIFO inventory layers"
Renewable volume obligation (RVO) regulatory
"The RVO cost represents the average market cost on a per barrel basis to comply"
deferred turnaround and catalyst cost expenditures financial
"Deferred turnaround and catalyst cost expenditures (excluding VIEs) were $120 million in Q2 2026"
noncontrolling interests financial
"Less: Net income (loss) attributable to noncontrolling interests was $353 million in Q2 2026"
The portion of a subsidiary’s equity and profits that belongs to outside owners rather than the parent company; when a parent reports consolidated results it includes the whole subsidiary but shows the noncontrolling slice separately. Think of a company’s subsidiary as a pie where the parent owns most slices but some are held by other investors — noncontrolling interests tell you how much of the pie and its future earnings don’t belong to the parent, which affects how much profit and net assets are truly attributable to the parent’s shareholders.
Net income attributable to stockholders $3.720 billion up from $714 million in the second quarter of 2025
Diluted earnings per share $12.62 up from $2.28 in the second quarter of 2025
Revenues $44.476 billion up from $29.889 billion in the second quarter of 2025

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FAQ

How much did Valero Energy (VLO) earn in the second quarter of 2026?
Valero reported net income of $3.7 billion, or $12.62 per diluted share, for Q2 2026. This compares with $714 million, or $2.28 per share, for the second quarter of 2025, reflecting significantly stronger profitability.

What were Valero Energy (VLO) revenues in Q2 2026?
Revenues for Q2 2026 were $44.476 billion, up from $29.889 billion in Q2 2025. Growth was driven primarily by the Refining segment, which generated $42.300 billion of external revenues and benefited from higher product margins.

How did Valero Energy’s (VLO) segments perform in Q2 2026?
Refining produced $4.47 billion of operating income, Renewable Diesel delivered $717 million (vs. a prior loss), and Ethanol generated $318 million. All three segments reported strong margins, with refining margin per barrel at $23.62 on 2.95 million barrels per day of throughput.

What was Valero Energy’s (VLO) cash flow and shareholder return in Q2 2026?
Net cash provided by operating activities was $5.58 billion in Q2 2026, with adjusted operating cash flow of $4.485 billion. Stockholder cash returns totaled $2.6 billion, representing 59 percent of adjusted net cash provided by operating activities for the quarter.

What is Valero Energy’s (VLO) debt and liquidity position as of June 30, 2026?
As of June 30, 2026, Valero had $9.101 billion of total debt, $2.248 billion of finance lease obligations, and $7.874 billion of cash and cash equivalents. The debt-to-capitalization ratio, net of cash, was 11 percent, indicating a relatively conservative balance sheet.

What is the status of Valero Energy’s (VLO) St. Charles FCC optimization project?
Valero highlighted that the $230 million FCC Unit optimization project at the St. Charles Refinery is progressing and is still expected to be completed and begin operations in the third quarter of 2026, enhancing high-value product yields.

Did Valero Energy (VLO) declare a dividend in connection with Q2 2026 results?
On July 16, 2026, Valero declared a regular quarterly cash dividend of $1.20 per common share. For the first six months of 2026, dividends per share totaled $2.40, reflecting continued cash returns to stockholders alongside share repurchases.
VALERO ENERGY CORP/TX0001035002FALSE00010350022026-07-302026-07-30


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 30, 2026

VALERO ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
Delaware001-1317574-1828067
(State or other jurisdiction
of incorporation) 		(Commission
File Number)		(I.R.S. Employer
Identification No.)

One Valero Way
San Antonio, Texas 78249
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (210) 345-2000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock,
par value $0.01 per share		VLONew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).    Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02    Results of Operations and Financial Condition.

On July 30, 2026, Valero Energy Corporation (the “Company”) issued a press release announcing the Company’s financial and operating results for the second quarter ended June 30, 2026. A copy of the press release is furnished with this report as Exhibit 99.01 and is incorporated herein by reference.

The information in this report is being furnished, not filed, pursuant to Item 2.02 of Form 8-K. Accordingly, the information in this report, including the press release, will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

Item 9.01    Financial Statements and Exhibits.

(d)     Exhibits.
Exhibit No.Description
99.01
Press release dated July 30, 2026.
104Cover Page Interactive Data File (formatted as Inline XBRL).


2


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


VALERO ENERGY CORPORATION
(Registrant)
Date:July 30, 2026By:/s/ Homer S. Bhullar
Homer S. Bhullar
Senior Vice President and
Chief Financial Officer



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vlologoa06a.gif
Exhibit 99.01


Valero Energy Reports Second Quarter 2026 Results

•Reported net income attributable to Valero stockholders of $3.7 billion, or $12.62 per share
•Reported adjusted net income attributable to Valero stockholders of $3.7 billion, or $12.54 per share
•Stockholder cash returns totaled $2.6 billion
•Declared a regular quarterly cash dividend on common stock of $1.20 per share on July 16, 2026
•The St. Charles FCC Unit optimization project is still expected to be completed and begin operations in the third quarter of 2026

SAN ANTONIO, July 30, 2026 – Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income attributable to Valero stockholders of $3.7 billion, or $12.62 per share, for the second quarter of 2026, compared to $714 million, or $2.28 per share, for the second quarter of 2025. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders for the second quarter of 2026 was $3.7 billion, or $12.54 per share.

“We are pleased to report a strong second quarter, driven by excellent operations and commercial execution across all three of our business segments,” said Lane Riggs, Valero’s Chairman, Chief Executive Officer and President. “Our refineries, renewable diesel plants, and ethanol plants operated safely and reliably, helping to meet resilient demand for transportation fuels.”

Refining
The Refining segment reported operating income of $4.5 billion for the second quarter of 2026, compared to $1.3 billion for the second quarter of 2025. Adjusted operating income for the second quarter of 2026 was $4.4 billion. Refining throughput volumes averaged 3.0 million barrels per day in the second quarter of 2026.

Renewable Diesel
The Renewable Diesel segment, which consists of the Diamond Green Diesel joint venture (DGD), reported $717 million of operating income for the second quarter of 2026, compared to
1

an operating loss of $79 million for the second quarter of 2025. Segment sales volumes averaged 3.8 million gallons per day in the second quarter of 2026.

Ethanol
The Ethanol segment reported $318 million of operating income for the second quarter of 2026, compared to $54 million for the second quarter of 2025. Ethanol production volumes averaged 4.7 million gallons per day in the second quarter of 2026.

Corporate and Other
General and administrative expenses were $233 million in the second quarter of 2026. The effective tax rate for the second quarter of 2026 was 21 percent.

Investing and Financing Activities
Net cash provided by operating activities was $5.6 billion in the second quarter of 2026. Included in this amount was a $706 million favorable impact from working capital and $389 million of adjusted net cash provided by operating activities associated with the other joint venture member’s share of DGD. Excluding these items, adjusted net cash provided by operating activities was $4.5 billion in the second quarter of 2026.

Capital investments totaled $350 million in the second quarter of 2026, of which $290 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance. Excluding capital investments attributable to the other joint venture member’s share of DGD and other variable interest entities, capital investments attributable to Valero were $346 million in the second quarter of 2026.

Valero stockholder cash returns totaled $2.6 billion in the second quarter of 2026, resulting in a payout ratio of 59 percent of adjusted net cash provided by operating activities.

On July 16, 2026, Valero announced a quarterly cash dividend on common stock of $1.20 per share, demonstrating its strong financial position.

Liquidity and Financial Position
Valero ended the second quarter of 2026 with $9.1 billion of total debt, $2.2 billion of total finance lease obligations, and $7.9 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 11 percent as of June 30, 2026.
2

“Our strong results reflect the discipline and consistency of our operational and commercial execution,” said Riggs. “Coupled with our differentiated balance sheet, these strengths position us well and provide significant financial flexibility.”

Strategic Update
Valero continues to make progress on the FCC Unit optimization project at the St. Charles Refinery that will enhance the refinery’s ability to produce high-value products. This $230 million project is still expected to be completed and begin operations in the third quarter of 2026.

Conference Call
Valero’s senior management will hold a conference call at 10 a.m. ET today to discuss this earnings release and to provide an update on operations and strategy.

About Valero
Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland, and Latin America. Valero operates 14 petroleum refineries located in the U.S., Canada, and the U.K. with a combined throughput capacity of approximately 3.0 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which produces low-carbon fuels including renewable diesel and sustainable aviation fuel (SAF), with a production capacity of approximately 1.2 billion gallons per year in the U.S. Gulf Coast region. See the annual report on Form 10-K for more information on SAF. Valero also owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.7 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel, and Ethanol segments. Please visit investorvalero.com for more information.

Valero Contacts
Investors:
Brian Donovan, Vice President – Investor Relations, 210-345-1682
Eric Herbort, Director – Investor Relations and Finance, 210-345-3331
Gautam Srivastava, Director – Investor Relations, 210-345-3992

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Media:
Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002

Safe-Harbor Statement
Statements contained in this release and the accompanying earnings release tables, or made during the conference call, that state Valero’s or management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “believe,” “expect,” “should,” “estimates,” “intend,” “target,” “commitment,” “plans,” “forecast, “guidance” and other similar expressions identify forward-looking statements. Forward-looking statements in this release and the accompanying earnings release tables include, and those made on the conference call may include, statements relating to Valero’s low-carbon fuels strategy, expected timing, cost and performance of projects, our plans, actions, assets and operations in California and expected timing and cost of obligations and other financial, operational, or strategic statement impacts, future market and industry conditions, future operating and financial performance, including future capital expenditures and capital investments attributable to Valero, future production and manufacturing ability and size, expectations regarding our sources and uses of cash, future legal and regulatory developments, including those with respect to tariffs and low-carbon fuels, expectations and ongoing uncertainties related to our Port Arthur Refinery, and management of future risks, among other matters. It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of Valero’s control, such as legislative or political changes or developments, market dynamics, cyberattacks, weather events, and other matters affecting Valero’s operations and financial performance or the demand for Valero’s products. These factors also include, but are not limited to, the uncertainties that remain with respect to current or contemplated legal, political, or regulatory developments that are adverse to tariffs, global geopolitical and other conflicts and tensions, the impact of inflation and crude oil and petroleum product market disruptions on margins and costs, economic activity levels, actions in response to supply and demand imbalances for refined petroleum products, and the adverse effects the foregoing may have on Valero’s business plan, strategy, operations and financial performance. For more information concerning these and other factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual report on Form 10-K, quarterly reports on Form 10‑Q, and other reports filed with the Securities and Exchange Commission and available on Valero’s website at www.valero.com.

4

Use of Non-GAAP Financial Information
This earnings release and the accompanying earnings release tables include references to financial measures that are not defined under U.S. generally accepted accounting principles (GAAP). These non-GAAP measures include adjusted net income attributable to Valero stockholders, adjusted earnings per common share – assuming dilution, Refining margin, Renewable Diesel margin, Ethanol margin, adjusted Refining operating income, adjusted net cash provided by operating activities, and capital investments attributable to Valero. These non-GAAP financial measures have been included to help facilitate the comparison of operating results between periods. See the accompanying earnings release tables for a definition of non-GAAP measures and a reconciliation to their most directly comparable GAAP measures. Note (h) to the earnings release tables provides reasons for the use of these non-GAAP financial measures.
5


VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
FINANCIAL HIGHLIGHTS
(millions of dollars, except per share amounts)
(unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Statement of income data
Revenues$44,476 $29,889 $76,857 $60,147 
Cost of sales:
Cost of materials and other (a)
35,130 24,678 61,315 50,726 
Taxes other than income taxes (b)
1,648 1,654 3,369 3,154 
Operating expenses (excluding depreciation and
amortization expense reflected below) 
1,506 1,522 3,101 3,045 
Depreciation and amortization expense
723 786 1,551 1,466 
Total cost of sales39,007 28,640 69,336 58,391 
Asset impairment loss (c)
— — — 1,131 
Other operating expenses (d)
26 4 50 8 
General and administrative expenses (excluding
depreciation and amortization expense reflected below)
233 220 518 481 
Depreciation and amortization expense 14 28 26 39 
Operating income
5,196 997 6,927 97 
Other income, net
116 86 248 206 
Interest and debt expense, net of capitalized interest(145)(141)(285)(278)
Income before income tax expense
5,167 942 6,890 25 
Income tax expense 
1,094 279 1,495 14 
Net income
4,073 663 5,395 11 
Less: Net income (loss) attributable to noncontrolling interests
353 (51)412 (108)
Net income attributable to Valero Energy Corporation
stockholders
$3,720 $714 $4,983 $119 
Earnings per common share
$12.62 $2.28 $16.79 $0.37 
Weighted-average common shares outstanding (in millions)294 312 296 313 
Earnings per common share – assuming dilution
$12.62 $2.28 $16.78 $0.37 
Weighted-average common shares outstanding –
assuming dilution (in millions)
294 312 296 313 

See Notes to Earnings Release Tables beginning on Table Page 17.

Table Page 1


VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
FINANCIAL HIGHLIGHTS BY SEGMENT
(millions of dollars)
(unaudited)
RefiningRenewable
Diesel		Ethanol
Corporate
and
Other (e)
Total
Three months ended June 30, 2026
Revenues:
Revenues from external customers$42,300 $1,176 $1,000 $— $44,476 
Intersegment revenues2 1,506 311 (1,819)— 
Total revenues42,302 2,682 1,311 (1,819)44,476 
Cost of sales:
Cost of materials and other (a)
34,268 1,803 822 (1,763)35,130 
Taxes other than income taxes (b)
1,648 — — — 1,648 
Operating expenses (excluding depreciation and
amortization expense reflected below)
1,263 91 152 — 1,506 
Depreciation and amortization expense
635 71 19 (2)723 
Total cost of sales37,814 1,965 993 (1,765)39,007 
Other operating expenses (d)
18 — — 8 26 
General and administrative expenses (excluding
depreciation and amortization expense reflected
below)
— — — 233 233 
Depreciation and amortization expense — — — 14 14 
Operating income by segment
$4,470 $717 $318 $(309)$5,196 
Three months ended June 30, 2025
Revenues:
Revenues from external customers$28,324 $565 $1,000 $— $29,889 
Intersegment revenues2 533 205 (740)— 
Total revenues28,326 1,098 1,205 (740)29,889 
Cost of sales:
Cost of materials and other
23,388 1,044 988 (742)24,678 
Taxes other than income taxes (b)
1,654 — — — 1,654 
Operating expenses (excluding depreciation and
amortization expense reflected below)
1,307 72 144 (1)1,522 
Depreciation and amortization expense
707 61 19 (1)786 
Total cost of sales27,056 1,177 1,151 (744)28,640 
Other operating expenses4 — — — 4 
General and administrative expenses (excluding
depreciation and amortization expense reflected
below)
— — — 220 220 
Depreciation and amortization expense— — — 28 28 
Operating income (loss) by segment
$1,266 $(79)$54 $(244)$997 

See Operating Highlights by Segment beginning on Table Page 8.
See Notes to Earnings Release Tables beginning on Table Page 17.
Table Page 2


VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
FINANCIAL HIGHLIGHTS BY SEGMENT
(millions of dollars)
(unaudited)
RefiningRenewable
Diesel		Ethanol
Corporate
and
Other (e)
Total
Six months ended June 30, 2026
Revenues:
Revenues from external customers$73,105 $1,887 $1,865 $— $76,857 
Intersegment revenues4 2,209 613 (2,826)— 
Total revenues73,109 4,096 2,478 (2,826)76,857 
Cost of sales:
Cost of materials and other (a)
59,446 2,915 1,716 (2,762)61,315 
Taxes other than income taxes (b)
3,369 — — — 3,369 
Operating expenses (excluding depreciation and
amortization expense reflected below)
2,609 176 316 — 3,101 
Depreciation and amortization expense
1,367 149 38 (3)1,551 
Total cost of sales66,791 3,240 2,070 (2,765)69,336 
Other operating expenses (d)
42 — — 8 50 
General and administrative expenses (excluding
depreciation and amortization expense reflected
below)
— — — 518 518 
Depreciation and amortization expense — — — 26 26 
Operating income by segment
$6,276 $856 $408 $(613)$6,927 
Six months ended June 30, 2025
Revenues:
Revenues from external customers$57,081 $1,058 $2,008 $— $60,147 
Intersegment revenues4 940 422 (1,366)— 
Total revenues57,085 1,998 2,430 (1,366)60,147 
Cost of sales:
Cost of materials and other
48,157 1,939 2,020 (1,390)50,726 
Taxes other than income taxes (b)
3,154 — — — 3,154 
Operating expenses (excluding depreciation and
amortization expense reflected below)
2,598 150 298 (1)3,045 
Depreciation and amortization expense
1,301 129 38 (2)1,466 
Total cost of sales55,210 2,218 2,356 (1,393)58,391 
Asset impairment loss (c)
1,131 — — — 1,131 
Other operating expenses8 — — — 8 
General and administrative expenses (excluding
depreciation and amortization expense reflected
below)
— — — 481 481 
Depreciation and amortization expense— — — 39 39 
Operating income (loss) by segment
$736 $(220)$74 $(493)$97 

See Operating Highlights by Segment beginning on Table Page 8.
See Notes to Earnings Release Tables beginning on Table Page 17.
Table Page 3


VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP (h)
(millions of dollars, except per share amounts)
(unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Reconciliation of net income attributable to Valero Energy
Corporation stockholders to adjusted net income
attributable to Valero Energy Corporation stockholders
Net income attributable to Valero Energy Corporation
stockholders
$3,720 $714 $4,983 $119 
Adjustments:
Last-in, first-out (LIFO) liquidation adjustment (a)
(44)— (44)— 
Income tax expense related to the LIFO liquidation adjustment10 — 10 — 
LIFO liquidation adjustment, net of taxes(34)— (34)— 
Asset impairment loss (c)
— — — 1,131 
Income tax benefit related to asset impairment loss— — — (254)
Asset impairment loss, net of taxes— — — 877 
Port Arthur Refinery fire expenses (d)
15 — 15 — 
Income tax benefit related to Port Arthur Refinery fire expenses(4)— (4)— 
Port Arthur Refinery fire expenses, net of taxes11 — 11 — 
Total adjustments(23)— (23)877 
Adjusted net income attributable to
Valero Energy Corporation stockholders
$3,697 $714 $4,960 $996 


Reconciliation of earnings per common share –
assuming dilution to adjusted earnings per common
share – assuming dilution
Earnings per common share – assuming dilution
$12.62 $2.28 $16.78 $0.37 
Adjustments:
LIFO liquidation adjustment (a)
(0.12)— (0.11)— 
Asset impairment loss (c)
— — — 2.80 
Port Arthur Refinery fire expenses (d)
0.04 — 0.04 — 
Total adjustments(0.08)— (0.07)2.80 
Adjusted earnings per common share – assuming dilution
$12.54 $2.28 $16.71 $3.17 

See Notes to Earnings Release Tables beginning on Table Page 17.
Table Page 4


VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP (h)
(millions of dollars)
(unaudited)

Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Reconciliation of operating income (loss) by segment to segment
margin, and reconciliation of operating income (loss) by
segment to adjusted operating income by segment
Refining segment
Refining operating income
$4,470 $1,266 $6,276 $736 
Adjustments:
LIFO liquidation adjustment (a)
(44)— (44)— 
Operating expenses (excluding depreciation and
amortization expense reflected below) 
1,263 1,307 2,609 2,598 
Depreciation and amortization expense635 707 1,367 1,301 
Asset impairment loss (c)
— — — 1,131 
Other operating expenses (d)
18 4 42 8 
Refining margin$6,342 $3,284 $10,250 $5,774 
Refining operating income
$4,470 $1,266 $6,276 $736 
Adjustments:
LIFO liquidation adjustment (a)
(44)— (44)— 
Asset impairment loss (c)
— — — 1,131 
Other operating expenses (d)
18 4 42 8 
Adjusted Refining operating income
$4,444 $1,270 $6,274 $1,875 
Renewable Diesel segment
Renewable Diesel operating income (loss)
$717 $(79)$856 $(220)
Adjustments:
Operating expenses (excluding depreciation and
amortization expense reflected below)
91 72 176 150 
Depreciation and amortization expense71 61 149 129 
Renewable Diesel margin$879 $54 $1,181 $59 
Ethanol segment
Ethanol operating income
$318 $54 $408 $74 
Adjustments:
Operating expenses (excluding depreciation and
amortization expense reflected below)
152 144 316 298 
Depreciation and amortization expense
19 19 38 38 
Ethanol margin$489 $217 $762 $410 

See Notes to Earnings Release Tables beginning on Table Page 17.
Table Page 5


VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP (h)
(millions of dollars)
(unaudited)

Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Reconciliation of Refining segment operating income (loss) to
Refining margin (by region), and reconciliation of Refining
segment operating income (loss) to adjusted Refining segment
operating income (by region) (i)
U.S. Gulf Coast region
Refining operating income
$2,877 $846 $4,233 $1,183 
Adjustments:
Operating expenses (excluding depreciation and
amortization expense reflected below)
778 737 1,551 1,457 
Depreciation and amortization expense394 387 782 763 
Other operating expenses (d)
16 3 34 7 
Refining margin$4,065 $1,973 $6,600 $3,410 
Refining operating income
$2,877 $846 $4,233 $1,183 
Adjustment: Other operating expenses (d)
16 3 34 7 
Adjusted Refining operating income
$2,893 $849 $4,267 $1,190 
U.S. Mid-Continent region
Refining operating income
$608 $127 $798 $177 
Adjustments:
Operating expenses (excluding depreciation and
amortization expense reflected below)
204 200 407 395 
Depreciation and amortization expense89 78 178 154 
Other operating expenses2 — 3 — 
Refining margin$903 $405 $1,386 $726 
Refining operating income
$608 $127 $798 $177 
Adjustment: Other operating expenses2 — 3 — 
Adjusted Refining operating income
$610 $127 $801 $177 

See Notes to Earnings Release Tables beginning on Table Page 17.

Table Page 6


VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP (h)
(millions of dollars)
(unaudited)

Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Reconciliation of Refining segment operating income (loss) to
Refining margin (by region), and reconciliation of Refining
segment operating income (loss) to adjusted Refining segment
operating income (by region) (i) (continued)
North Atlantic region
Refining operating income
$742 $219 $1,125 $435 
Adjustments:
Operating expenses (excluding depreciation and
amortization expense reflected below)
192 182 403 354 
Depreciation and amortization expense80 75 164 144 
Refining margin$1,014 $476 $1,692 $933 
U.S. West Coast region (f)
Refining operating income (loss)
$243 $74 $120 $(1,059)
Adjustments:
LIFO liquidation adjustment (a)
(44)— (44)— 
Operating expenses (excluding depreciation and
amortization expense reflected below) 
89 188 248 392 
Depreciation and amortization expense (g)
72 167 243 240 
Asset impairment loss (c)
— — — 1,131 
Other operating expenses— 1 5 1 
Refining margin$360 $430 $572 $705 
Refining operating income (loss)
$243 $74 $120 $(1,059)
Adjustments:
LIFO liquidation adjustment (a)
(44)— (44)— 
Asset impairment loss (c)
— — — 1,131 
Other operating expenses— 1 5 1 
Adjusted Refining operating income
$199 $75 $81 $73 

See Notes to Earnings Release Tables beginning on Table Page 17.

Table Page 7


VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
REFINING SEGMENT OPERATING HIGHLIGHTS
(millions of dollars, except per barrel amounts)
(unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Throughput volumes (thousand barrels per day)
Feedstocks:
Heavy sour crude oil514 554 482 555 
Medium/light sour crude oil252 240 274 237 
Sweet crude oil1,599 1,509 1,560 1,535 
Residuals124 167 152 131 
Other feedstocks118 105 123 78 
Total feedstocks2,607 2,575 2,591 2,536 
Blendstocks and other343 347 341 339 
Total throughput volumes2,950 2,922 2,932 2,875 
Yields (thousand barrels per day)
Gasolines and blendstocks1,414 1,444 1,406 1,410 
Distillates1,167 1,111 1,138 1,094 
Other products (j)
400 392 418 394 
Total yields2,981 2,947 2,962 2,898 
Operating statistics (h) (k)
Refining margin (from Table Page 5)
$6,342 $3,284 $10,250 $5,774 
Adjusted Refining operating income (from Table Page 5)
$4,444 $1,270 $6,274 $1,875 
Throughput volumes (thousand barrels per day)2,950 2,922 2,932 2,875 
Refining margin per barrel of throughput$23.62 $12.35 $19.31 $11.09 
Less:
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput
4.70 4.91 4.92 4.99 
Depreciation and amortization expense per barrel of
throughput
2.36 2.66 2.57 2.50 
Adjusted Refining operating income per barrel of
throughput
$16.56 $4.78 $11.82 $3.60 

See Notes to Earnings Release Tables beginning on Table Page 17.

Table Page 8


VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RENEWABLE DIESEL SEGMENT OPERATING HIGHLIGHTS
(millions of dollars, except per gallon amounts)
(unaudited)

Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Operating statistics (h) (k)
Renewable Diesel margin (from Table Page 5)
$879 $54 $1,181 $59 
Renewable Diesel operating income (loss) (from Table Page 5)
$717 $(79)$856 $(220)
Sales volumes (thousand gallons per day)3,833 2,732 3,432 2,584 
Renewable Diesel margin per gallon of sales$2.52 $0.22 $1.90 $0.13 
Less:
Operating expenses (excluding depreciation and
amortization expense reflected below) per gallon of sales
0.26 0.29 0.28 0.32 
Depreciation and amortization expense per gallon of sales0.20 0.25 0.24 0.28 
Renewable Diesel operating income (loss) per gallon of sales
$2.06 $(0.32)$1.38 $(0.47)

See Notes to Earnings Release Tables beginning on Table Page 17.

Table Page 9


VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
ETHANOL SEGMENT OPERATING HIGHLIGHTS
(millions of dollars, except per gallon amounts)
(unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Operating statistics (h) (k)
Ethanol margin (from Table Page 5)
$489 $217 $762 $410 
Ethanol operating income (from Table Page 5)
$318 $54 $408 $74 
Production volumes (thousand gallons per day)4,666 4,583 4,643 4,525 
Ethanol margin per gallon of production$1.15 $0.52 $0.91 $0.50 
Less:
Operating expenses (excluding depreciation and
amortization expense reflected below) per gallon of production
0.36 0.34 0.38 0.36 
Depreciation and amortization expense per gallon of production
0.04 0.05 0.04 0.05 
Ethanol operating income per gallon of production
$0.75 $0.13 $0.49 $0.09 

See Notes to Earnings Release Tables beginning on Table Page 17.

Table Page 10


VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION
(millions of dollars, except per barrel amounts)
(unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Operating statistics by region (i)
U.S. Gulf Coast region (h) (k)
Refining margin (from Table Page 6)
$4,065 $1,973 $6,600 $3,410 
Adjusted Refining operating income (from Table Page 6)
$2,893 $849 $4,267 $1,190 
Throughput volumes (thousand barrels per day)1,829 1,841 1,792 1,756 
Refining margin per barrel of throughput$24.42 $11.78 $20.35 $10.72 
Less:
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput
4.67 4.40 4.78 4.58 
Depreciation and amortization expense per barrel of
throughput
2.37 2.31 2.41 2.40 
Adjusted Refining operating income per barrel of throughput
$17.38 $5.07 $13.16 $3.74 
U.S. Mid-Continent region (h) (k)
Refining margin (from Table Page 6)
$903 $405 $1,386 $726 
Adjusted refining operating income (from Table Page 6)
$610 $127 $801 $177 
Throughput volumes (thousand barrels per day)485 423 469 438 
Refining margin per barrel of throughput$20.46 $10.52 $16.31 $9.16 
Less:
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput
4.63 5.20 4.79 4.98 
Depreciation and amortization expense per barrel of
throughput
2.01 2.01 2.09 1.94 
Adjusted refining operating income per barrel of throughput
$13.82 $3.31 $9.43 $2.24 

See Notes to Earnings Release Tables beginning on Table Page 17.

Table Page 11


VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION
(millions of dollars, except per barrel amounts)
(unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Operating statistics by region (i) (continued)
North Atlantic region (h) (k)
Refining margin (from Table Page 7)
$1,014 $476 $1,692 $933 
Refining operating income (from Table Page 7)
$742 $219 $1,125 $435 
Throughput volumes (thousand barrels per day)506 396 506 444 
Refining margin per barrel of throughput$22.02 $13.20 $18.48 $11.61 
Less:
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput
4.17 5.04 4.40 4.40 
Depreciation and amortization expense per barrel of
throughput
1.73 2.07 1.79 1.79 
Refining operating income per barrel of throughput
$16.12 $6.09 $12.29 $5.42 
U.S. West Coast region (f) (h) (k)
Refining margin (from Table Page 7)
$360 $430 $572 $705 
Adjusted Refining operating income (from Table Page 7)
$199 $75 $81 $73 
Throughput volumes (thousand barrels per day)130 262 165 237 
Refining margin per barrel of throughput$30.36 $18.02 $19.12 $16.42 
Less:
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput
7.49 7.91 8.28 9.15 
Depreciation and amortization expense per barrel of
throughput (g)
6.06 6.99 8.12 5.59 
Adjusted Refining operating income per barrel of throughput
$16.81 $3.12 $2.72 $1.68 

See Notes to Earnings Release Tables beginning on Table Page 17.

Table Page 12


VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS
(unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Refining
Feedstocks (dollars per barrel)
Brent crude oil$97.06 $66.59 $87.49 $70.74 
Brent less West Texas Intermediate (WTI) crude oil3.85 2.72 4.90 3.08 
Brent less WTI Houston crude oil1.69 1.89 3.01 1.99 
Brent less Dated Brent crude oil(8.05)(1.08)(5.37)(0.92)
Brent less Argus Sour Crude Index crude oil3.11 2.02 4.03 2.29 
Brent less Maya crude oil8.05 8.11 9.77 8.95 
Brent less Western Canadian Select Houston crude oil13.92 6.25 13.75 6.75 
WTI crude oil93.20 63.87 82.59 67.67 
Natural gas (dollars per million British thermal units)2.46 2.83 2.79 3.11 
Renewable volume obligation (RVO) (dollars per barrel) (l)
13.78 6.14 11.60 5.45 
Product margins (RVO adjusted unless otherwise noted)
(dollars per barrel)
U.S. Gulf Coast:
Conventional Blendstock for Oxygenate Blending (CBOB)
gasoline less Brent
17.98 8.99 9.22 6.29 
Ultra-low-sulfur (ULS) diesel less Brent43.52 14.79 35.56 15.74 
Polymer Grade Propylene less Brent (not RVO adjusted)(10.61)(2.24)(11.32)(0.50)
U.S. Mid-Continent:
CBOB gasoline less WTI20.14 14.91 9.73 12.09 
ULS diesel less WTI41.48 20.60 32.97 18.55 
North Atlantic:
CBOB gasoline less Brent25.07 13.43 14.12 9.17 
ULS diesel less Brent47.50 18.79 42.02 19.84 
U.S. West Coast:
California Reformulated Gasoline Blendstock for
Oxygenate Blending 87 gasoline less Brent
46.68 36.98 35.49 30.06 
California Air Resources Board diesel less Brent56.11 20.22 44.56 20.30 

See Notes to Earnings Release Tables beginning on Table Page 17.

Table Page 13


VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS
(unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Renewable Diesel
New York Mercantile Exchange ULS diesel
(dollars per gallon)
$3.74 $2.16 $3.33 $2.27 
Biodiesel Renewable Identification Number (RIN)
(dollars per RIN)
2.12 1.09 1.78 0.94 
California Low-Carbon Fuel Standard carbon credit
(dollars per metric ton)
68.34 52.36 66.85 59.27 
U.S. Gulf Coast (USGC) used cooking oil (dollars per pound)
0.82 0.56 0.73 0.53 
USGC distillers corn oil (dollars per pound)0.86 0.59 0.76 0.56 
USGC fancy bleachable tallow (dollars per pound)0.84 0.56 0.72 0.53 
Ethanol
Chicago Board of Trade corn (dollars per bushel)4.43 4.52 4.40 4.62 
New York Harbor ethanol (dollars per gallon)2.00 1.84 1.91 1.83 

Table Page 14


VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
OTHER FINANCIAL DATA
(millions of dollars)
(unaudited)
June 30,December 31,
20262025
Balance sheet data
Current assets$30,670 $23,210 
Cash and cash equivalents included in current assets7,874 4,688 
Inventories included in current assets7,625 7,591 
Current liabilities18,742 14,109 
Valero Energy Corporation stockholders’ equity25,001 23,725 
Total equity28,268 26,605 
Debt and finance lease obligations:
Debt –
Current portion of debt (excluding variable interest entities (VIEs))
$688 $672 
Debt, less current portion of debt (excluding VIEs)8,411 7,566 
Total debt (excluding VIEs)9,099 8,238 
Current portion of debt attributable to VIEs2 23 
Total debt9,101 8,261 
Finance lease obligations –
Current portion of finance lease obligations (excluding VIEs)211 228 
Finance lease obligations, less current portion (excluding VIEs)1,409 1,488 
Total finance lease obligations (excluding VIEs)1,620 1,716 
Current portion of finance lease obligations attributable to VIEs26 26 
Finance lease obligations, less current portion attributable to VIEs602 616 
Total finance lease obligations attributable to VIEs628 642 
Total finance lease obligations 2,248 2,358 
Total debt and finance lease obligations$11,349 $10,619 


Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Reconciliation of net cash provided by operating activities to
adjusted net cash provided by operating activities (h)
Net cash provided by operating activities
$5,580 $936 $6,970 $1,888
Exclude:
Changes in current assets and current liabilities706 (325)403 (168)
Diamond Green Diesel LLC’s (DGD) adjusted net cash
provided by (used in) operating activities attributable to the
other joint venture member’s ownership interest in DGD
389 (86)491 (153)
Adjusted net cash provided by operating activities
$4,485 $1,347 $6,076 $2,209

See Notes to Earnings Release Tables beginning on Table Page 17.

Table Page 15


VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
OTHER FINANCIAL DATA
(millions of dollars, except per share amounts)
(unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Reconciliation of capital investments to capital
investments attributable to Valero (h)
Capital expenditures (excluding VIEs)
$222 $144 $382 $333 
Capital expenditures of VIEs:
DGD3 4 7 63 
Other VIEs1 2 2 3 
Deferred turnaround and catalyst cost expenditures
(excluding VIEs)
120 247 374 621 
Deferred turnaround and catalyst cost expenditures
of DGD
4 10 33 46 
Investments in nonconsolidated joint ventures— — — 1 
Capital investments350 407 798 1,067 
Adjustments:
DGD’s capital investments attributable to the other joint
venture member
(3)(6)(20)(54)
Capital expenditures of other VIEs(1)(2)(2)(3)
Capital investments attributable to Valero$346 $399 $776 $1,010 
Dividends per common share$1.20 $1.13 $2.40 $2.26 

See Notes to Earnings Release Tables beginning on Table Page 17.

Table Page 16




VALERO ENERGY CORPORATION
NOTES TO EARNINGS RELEASE TABLES

(a)Cost of materials and other for the three and six months ended June 30, 2026 includes a benefit of $44 million resulting from the liquidation of certain LIFO inventory layers attributable to our Refining segment. Inventory levels for our West Coast refining operations decreased during the six months ended June 30, 2026 due to the phased idling of processing units and cessation of refining operations at our Benicia Refinery, which was completed by the end of April 2026. As a result, inventory levels at December 31, 2026 are expected to remain below those at December 31, 2025.

(b)Taxes other than income taxes includes excise taxes on sales by certain of our foreign operations.
(c)In March 2025, we approved a plan to idle the processing units and cease refining operations at our Benicia Refinery by the end of April 2026. In addition, we considered strategic alternatives for our remaining operations in California. As a result, we evaluated the assets of the Benicia and Wilmington refineries for impairment as of March 31, 2025 and concluded that the carrying values of these assets were not recoverable. Therefore, we reduced the carrying values of the Benicia and Wilmington refineries to their estimated fair values and recognized a combined asset impairment loss of $1.1 billion in the six months ended June 30, 2025.

(d)Other operating expenses for the three and six months ended June 30, 2026 includes $15 million of repair costs directly attributable to the March 2026 incident at our Port Arthur Refinery.

(e)Effective in the second quarter of 2026, activities associated with the decommissioning and redevelopment of our Benicia Refinery are reported within Corporate and Other.

(f)During the first quarter of 2026, we began idling the processing units through a phased approach and ceased operation of the fuel production units at our Benicia Refinery. In accordance with our plan, full idling of all processing units was completed in April 2026.

(g)Depreciation and amortization expense includes incremental depreciation related to the Benicia Refinery of approximately $33 million and $133 million in the three and six months ended June 30, 2026, respectively, and approximately $100 million in the three and six months ended June 30, 2025. In connection with our phased plan to idle the processing units and cease refining operations at our Benicia Refinery, we shortened the estimated useful life of the refinery, and as a result, the revised carrying value of the refinery’s long-lived assets was depreciated to the estimated salvage value.

(h)We use certain financial measures (as noted below) in the earnings release tables and accompanying earnings release that are not defined under GAAP and are considered to be non-GAAP measures.

We have defined these non-GAAP measures and believe they are useful to the external users of our financial statements, including industry analysts, investors, lenders, and rating agencies. We believe these measures are useful to assess our ongoing financial performance because, when reconciled to their most comparable GAAP measures, they provide improved comparability between periods after adjusting for certain items that we believe are not indicative of our core operating performance and that may obscure our underlying business results and trends. These non-GAAP measures should not be considered as alternatives to their most comparable GAAP measures nor should they be considered in isolation or as a substitute for an analysis of our results of operations as reported under GAAP. In addition, these non-GAAP measures may not be comparable to similarly titled measures used by other companies because we may define them differently, which diminishes their utility.

Non-GAAP measures are as follows:

◦Adjusted net income attributable to Valero Energy Corporation stockholders is defined as net income attributable to Valero Energy Corporation stockholders adjusted to reflect the items noted below, along with their related income tax effect, as applicable. The income tax effect for the adjustments was calculated using a combined U.S. federal and state statutory rate of 22.5 percent. We have adjusted for these items because we believe that they are not indicative of our core operating performance and that their adjustment results in an important measure of
Table Page 17




VALERO ENERGY CORPORATION
NOTES TO EARNINGS RELEASE TABLES (continued)

our ongoing financial performance to better assess our underlying business results and trends. The basis for our belief with respect to each adjustment is provided below.

–LIFO liquidation adjustment – Generally, the LIFO inventory valuation method provides for the matching of current costs with current revenues. However, a LIFO liquidation results in a portion of our current-year cost of sales being impacted by historical costs, which obscures our current-year financial performance. Therefore, we have excluded the historical cost impact from adjusted net income attributable to Valero Energy Corporation stockholders. See note (a) for additional details.

–Asset impairment loss – The asset impairment loss attributable to our Benicia and Wilmington refineries (see note (c)) is not indicative of our ongoing operations or our expectations about the profitability of our refining business.

–Port Arthur Refinery fire expenses – The expenses directly attributable to the March 2026 incident at our Port Arthur Refinery (see note (d)) are specific to that incident and are not indicative of our ongoing operations.

◦Adjusted earnings per common share – assuming dilution is defined as adjusted net income attributable to Valero Energy Corporation stockholders divided by the number of weighted-average shares outstanding in the applicable period, assuming dilution.

◦Refining margin is defined as Refining segment operating income (loss) excluding the LIFO liquidation adjustment (see note (a)), operating expenses (excluding depreciation and amortization expense), depreciation and amortization expense, the asset impairment loss (see note (c)), and other operating expenses. We believe Refining margin is an important measure of our Refining segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance.
◦Renewable Diesel margin is defined as Renewable Diesel segment operating income (loss) excluding operating expenses (excluding depreciation and amortization expense) and depreciation and amortization expense. We believe Renewable Diesel margin is an important measure of our Renewable Diesel segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance.

◦Ethanol margin is defined as Ethanol segment operating income excluding operating expenses (excluding depreciation and amortization expense) and depreciation and amortization expense. We believe Ethanol margin is an important measure of our Ethanol segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance.

◦Adjusted Refining operating income is defined as Refining segment operating income (loss) excluding the LIFO liquidation adjustment (see note (a)), the asset impairment loss (see note (c)), and other operating expenses. We believe adjusted Refining operating income is an important measure of our Refining segment’s operating and financial performance because it excludes items that are not indicative of that segment’s core operating performance.
◦Adjusted net cash provided by operating activities is defined as net cash provided by operating activities excluding the items noted below. We believe adjusted net cash provided by operating activities is an important measure of our ongoing financial performance to better assess our ability to generate cash to fund our investing and financing activities. The basis for our belief with respect to each excluded item is provided below.
–Changes in current assets and current liabilities – Current assets net of current liabilities represents our operating liquidity. We believe that the change in our operating liquidity from period to period does not represent cash generated by our operations that is available to fund our investing and financing activities.

Table Page 18




VALERO ENERGY CORPORATION
NOTES TO EARNINGS RELEASE TABLES (continued)

–DGD’s adjusted net cash provided by (used in) operating activities attributable to the other joint venture member’s ownership interest in DGD – We are a 50 percent joint venture member in DGD and we consolidate DGD’s financial statements. Our Renewable Diesel segment includes the operations of DGD and the associated activities to market its products. Because we consolidate DGD’s financial statements, all of DGD’s net cash provided by (used in) operating activities (or operating cash flow) is included in our consolidated net cash provided by operating activities.

In general, DGD’s members use DGD’s operating cash flow (excluding changes in its current assets and current liabilities) to fund its capital investments rather than distribute all of that cash to themselves. Nevertheless, DGD’s operating cash flow is effectively attributable to each member and only a portion of DGD’s operating cash flow should be attributed to our net cash provided by operating activities. Therefore, we have adjusted our net cash provided by operating activities for the portion of DGD’s operating cash flow attributable to the other joint venture member’s ownership interest because we believe that it more accurately reflects the operating cash flow available to us to fund our investing and financing activities. The adjustment is calculated as follows (in millions):

Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
DGD operating cash flow data
Net cash provided by (used in) operating activities
$711 $(262)$239 $(101)
Exclude: Changes in current assets and current
liabilities
(67)(89)(742)205 
Adjusted net cash provided by (used in) operating
activities
778 (173)981 (306)
Other joint venture member’s ownership interest50%50%50%50%
DGD’s adjusted net cash provided by (used in)
operating activities attributable to the other joint
venture member’s ownership interest in DGD
$389 $(86)$491 $(153)

◦Capital investments attributable to Valero is defined as all capital expenditures and deferred turnaround and catalyst cost expenditures presented in our consolidated statements of cash flows, excluding the portion of DGD’s capital investments attributable to the other joint venture member and all of the capital expenditures of VIEs other than DGD.
In general, DGD’s members use DGD’s operating cash flow (excluding changes in its current assets and current liabilities) to fund its capital investments rather than distribute all of that cash to themselves. Because DGD’s operating cash flow is effectively attributable to each member, only 50 percent of DGD’s capital investments should be attributed to our net share of total capital investments. We also exclude the capital expenditures of other VIEs that we consolidate because we do not operate those VIEs. We believe capital investments attributable to Valero is an important measure because it more accurately reflects our capital investments.

(i)The Refining segment regions reflected herein contain the following refineries: U.S. Gulf Coast- Corpus Christi East, Corpus Christi West, Houston, Meraux, Port Arthur, St. Charles, Texas City, and Three Rivers Refineries; U.S. Mid Continent- Ardmore, McKee, and Memphis Refineries; North Atlantic- Pembroke and Quebec City Refineries; and U.S. West Coast- Benicia and Wilmington Refineries. Effective in the second quarter of 2026, activities associated with the decommissioning and redevelopment of our Benicia Refinery are reflected within Corporate and Other.

(j)Primarily includes petrochemicals, gas oils, No. 6 fuel oil, petroleum coke, sulfur, and asphalt.
(k)We use certain operating statistics (as noted below) in the earnings release tables and the accompanying earnings release to evaluate performance between comparable periods. Different companies may calculate them in different ways.

All per barrel of throughput, per gallon of sales, and per gallon of production amounts are calculated by dividing the associated dollar amount by the throughput volumes, sales volumes, and production volumes for the period, as applicable.

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VALERO ENERGY CORPORATION
NOTES TO EARNINGS RELEASE TABLES (continued)

Throughput volumes, sales volumes, and production volumes are calculated by multiplying throughput volumes per day, sales volumes per day, and production volumes per day (as provided in the accompanying tables), respectively, by the number of days in the applicable period. We use throughput volumes, sales volumes, and production volumes for the Refining segment, Renewable Diesel segment, and Ethanol segment, respectively, due to their general use by others who operate facilities similar to those included in our segments. We believe the use of such volumes results in per unit amounts that are most representative of the product margins generated and the operating costs incurred as a result of our operation of those facilities.
(l)The RVO cost represents the average market cost on a per barrel basis to comply with the Renewable Fuel Standard program. The RVO cost is calculated by multiplying (i) the average market price during the applicable period for the RINs associated with each class of renewable fuel (i.e., biomass-based diesel, cellulosic biofuel, advanced biofuel, and total renewable fuel) by (ii) the quotas for the volume of each class of renewable fuel that must be blended into petroleum-based transportation fuels consumed in the U.S., as set or proposed by the U.S. Environmental Protection Agency, on a percentage basis for each class of renewable fuel and adding together the results of each calculation.
Table Page 20

Source: View Original Filing on SEC EDGAR

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