Valero 2003 Annual Report Download

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Table of contents

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    ...฀Amounts) Year฀Ended฀December฀31,฀฀฀ ฀ 2003฀ ฀ 2002 Operating฀Revenues฀ Operating฀Income...communications,฀Valero฀Energy฀ Corporation฀has฀adopted฀a฀summary฀annual฀report฀format,฀which฀provides฀condensed฀ financial฀disclosure.฀The฀company...

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    ...to฀ double฀ our฀ network฀ to฀ 5,000฀locations฀by฀the฀end฀of฀2007. 9 7 5 3 1 -1 1992 Over $5.00/bbl 2% of time 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Source: Simmons & Company Chairman and CEO Bill Greehey at the Newly Acquired Valero Aruba Refinery 3

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    ...฀may฀very฀well฀turn฀out฀to฀be฀one฀of฀the฀ greatest฀acquisitions฀in฀Valero's฀history.฀When฀you฀consider฀the฀fact฀that฀we฀purchased฀the฀St.฀Charles฀refinery฀for฀ $400฀million฀and฀the฀fact฀that฀more฀than฀$2฀billion฀had...

  • Page 7
    ...diverse฀and฀complex฀ refining฀system฀in฀North฀America,฀complemented฀by฀a฀highly฀profitable฀and฀growing฀wholesale฀and฀retail฀network฀ and฀ a฀ major฀ stake฀ in฀ 4,500฀ miles฀ of฀ crude฀ oil฀ and฀ refined฀ product฀ pipelines฀ as฀ well...

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    ...฀earning฀annual฀revenues฀of฀$38฀billion.฀฀ With฀15฀refineries฀throughout฀the฀U.S.฀and฀in฀Canada฀and฀the฀Caribbean,฀Valero฀ has฀the฀most฀geographically฀diverse฀refining฀system฀among฀its฀peers.฀The฀company's฀ system฀has฀a฀combined...

  • Page 10
    ...any฀layoffs. In฀2003,฀Valero฀had฀its฀busiest฀year฀in฀terms฀of฀the฀number฀of฀transactions฀completed.฀The฀ company฀acquired฀its฀St.฀Charles฀refinery฀for฀less฀than฀20฀cents-on-the-dollar฀replacement฀cost,฀ and฀purchased฀a฀natural฀gas...

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    TOTAL ASSETS as of December 31 2003 2002 2001 2000 1999 $15.7 $14.5 $14.4 $4.3 $3.0 in฀billions฀of฀dollars

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    ...฀and฀procurement.฀฀In฀addition,฀the฀recently฀acquired฀St.฀Charles฀and฀ Aruba฀refineries฀present฀Valero฀with฀an฀opportunity฀to฀capture฀significant฀synergies฀going฀forward.฀ Valero฀ clearly฀ has฀ a฀ very฀ profitable฀ refining฀ system...

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    REFINERY CAPACITIES Corpus Christi (East & West) 340,000 BPD Aruba Texas City St. Charles Quebec (Jean Gaulin) Paulsboro McKee 315,000 BPD 243,000 BPD 215,000 BPD 215,000 BPD 195,000 BPD 170,000 BPD Benicia Wilmington Houston Three Rivers Krotz Springs Ardmore Denver 175,000 BPD 140,000 BPD 135,000 ...

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    ... Klesse, Executive Vice President & Chief Operating Officer, oversees a geographically diverse network of operations stretching from the Jean Gaulin refinery in Quebec to the U.S. Gulf Coast and West Coast. Valero's geographic diversity strengthens the company's competitive position, while adding...

  • Page 15
    ... Energy has a 46% ownership interest in Valero L.P., which owns and operates crude oil and refined product pipelines, refined product terminals and refinery crude oil tank assets predominantly in Texas, New Mexico, Colorado, Oklahoma, California and New Jersey. Its pipelines and storage facilities...

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    as of March, 2004 Million Bbls/day (Crude) 13

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    ...blendstocks.฀ And,฀ 75%฀of฀the฀company's฀distillates฀are฀low-sulfur฀diesel฀and฀jet฀fuel.฀In฀fact,฀Valero฀was฀one฀of฀ the฀first฀refiners฀in฀the฀U.S.฀Southwest฀and฀California฀to฀introduce฀ultra฀low-sulfur฀diesel฀ well฀ahead฀of฀the...

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    ... Oils, No. 6 Fuel Oil Petroleum Coke Anhydrous Ammonia Propane Octene Low-Sulfur Vacuum Gas Oil High-Sulfur Vacuum Gas Oil Iso-Butane REFINERY COMPLEXITY COMPARISON as of December 31, 2003 VALERO MARATHON-ASHLAND 9.4 10.6 11.6 PREMCOR SUNOCO TESORO 1 3 5 7 Nelson Complexity Scale 8.1 8.7 9 11

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    ...its฀network,฀wholesale฀has฀been฀aggressively฀growing฀its฀ branded฀distributor฀network฀across฀the฀country.฀฀In฀2003,฀Valero฀added฀more฀than฀600฀new฀branded฀ sites฀ and฀ re-imaged฀ over฀ 800฀ new฀ and฀ existing฀ locations.฀ ฀ A฀ big...

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    ���������������������������� ��� �������������� ��� ���������������� .5 1 1.5 2 2.5 ...

  • Page 22
    ...commitment฀to฀safety฀and฀environmental฀excellence,฀Valero฀is฀a฀step฀ahead฀of฀ other฀refiners.฀ In฀2003,฀Valero฀achieved฀the฀best฀safety฀record฀in฀the฀company's฀history.฀Its฀refining฀system฀reduced฀ the฀total฀recordable฀injury฀rate...

  • Page 23
    ... Brown, Senior Vice President of Corporate Communications, help oversee Valero's award-winning employee and community relations programs. These initiatives help countless individuals throughout North America, including young people like Amanda who lives in the "Valero House" as she transitions from...

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    ...฀Relations฀Department.฀Address฀and฀contact฀information฀can฀be฀found฀ on฀the฀inside฀back฀cover฀of฀this฀report.฀฀Valero's฀2003฀Annual฀Report฀on฀Form฀10-K฀and฀the฀ Proxy฀Statement฀also฀may฀be฀accessed฀via฀the฀Company's฀website...

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    ... balance sheets (millions of dollars) DECEMBER 31, ASSETS 2003 2002 Current Assets Property, Plant and Equipment, Net Goodwill...Liabilities Other Long-Term Liabilities Company-Obligated Preferred Securities of Subsidiary Trusts Minority Interest in Valero L.P. Stockholders' Equity TOTAL...

  • Page 27
    ...COSTS AND EXPENSES: Cost of Sales Refining Operating Expenses Retail ...IN NET INCOME OF VALERO L.P. DISTRIBUTIONS ON PREFERRED SECURITIES OF SUBSIDIARY TRUSTS INCOME ...Shares Outstanding (in millions) DIVIDENDS PER COMMON SHARE $ $ $ $ $ 2003 37,969 $ 2002 29,048 $ 2001 14,988 33,587 1,656 694...

  • Page 28
    ... Exercise of Purchase Options Under Leases Proceeds from Sale of Assets to Valero L.P. Proceeds from Disposition of Assets Held for Sale Payments Related to the Golden Eagle Business UDS Acquisition, Including Related Advance Other Acquisitions and Investments Earn-out Payments in Connection with...

  • Page 29
    ... Portion Deferred Income Tax Liabilities Other Long-Term Liabilities Company-Obligated Preferred Securities of Subsidiary Trusts Minority Interest in Valero L.P. Stockholders' Equity Total Liabilities and Stockholders' Equity $ 2003(a) 2002(b) 2001(c) 2000(d) 1999 $ 37,969 $ $ $ $ 1,222 622...

  • Page 30
    ... ratios and employees include the effect of UDS, which was acquired by Valero on December 31, 2001. (d) Includes the operations related to the Benicia Refinery and the California distribution assets beginning May 16, 2000 and the operations related to the California service stations beginning June...

  • Page 31
    ... of฀ the฀ Council฀ of฀ the฀ Americas.฀In฀addition฀to฀these฀positions,฀she฀serves฀as฀a฀director฀of฀ The฀Brazil฀Fund,฀Inc.,฀Scudder฀Global฀High฀Income฀Fund,฀Inc.,฀The฀ Korea฀Fund,฀Inc.฀and฀Scudder฀New฀Asia฀Fund,฀Inc.฀฀ JERRY...

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    ...,฀without฀charge,฀a฀Form฀10-K฀by฀writing฀or฀ calling฀Valero's฀Investor฀Relations฀Department.฀฀Valero's฀2003฀Annual฀Report฀on฀Form฀10-K฀and฀the฀Proxy฀ Statement฀also฀may฀be฀accessed฀via฀our฀Internet฀website฀at:฀www.valero.com.

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