Valero 2004 Annual Report Download

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IT฀PAYS฀TO฀BE฀DIFFERENT
V A L E R O ฀ E N E R G Y ฀ C O R P O R A T I O N
                         

Table of contents

  • Page 1
    IT฀PAYS฀TO฀BE฀DIFFERENT VA L E RO ฀ E N E RG Y ฀ C O R P O R AT I O N ����฀�u��ar y฀Annual฀Re�ort

  • Page 2
    ... It฀Pays฀to฀be฀Different฀฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀฀6 Acquisition฀Strategy฀Paying฀Big฀Dividends฀.฀.฀.฀.฀.฀.฀฀8 Superior...

  • Page 3
    ... Share Amounts) 2004 54,619 $ 2,979 $ 1,804 $ 6.53 2003 $฀37 ,969 $฀ 1,222 $฀ 622 $฀ 2.55 $฀ 15,664 $฀ 5,735 $฀ 1,112 $ 19,392 $ 7,798 1,596 Summary฀Annual฀Report In฀an฀effort฀to฀provide฀shareholders฀with฀more฀effective฀communications,฀Valero฀Energy...

  • Page 4
    BILL฀GREEHEY CHAIRMAN฀&฀CEO

  • Page 5
    ...฀the฀refining฀ business,฀Valero฀decided฀to฀grow฀its฀refining฀business฀ in฀a฀big฀way! That's฀because฀we฀believed฀we...฀DISCOUNTS *2005฀PROJECTIONS฀AS฀OF฀MARCH฀7,฀2005฀ 3 Va l e r o ฀ E n e r g y ฀ C o r p o r a t i o n summary฀annual฀report

  • Page 6
    ...the฀United฀States฀today. Better฀yet,฀Valero฀ranked฀No.1฀on฀Forbes฀magazine's฀ list฀of฀America's฀Best฀Big฀Companies฀for฀our฀2004฀ earnings฀growth฀and฀shareholder฀return! 4 Va l e r o ฀ E n e r g y ฀ C o r p o r a t i o n summary฀annual฀report

  • Page 7
    ....฀฀We฀are฀thankful฀for฀his฀countless฀ contributions฀to฀Valero฀and฀to฀the฀community฀-฀฀ all฀of฀which฀helped฀make฀Valero฀the฀great฀company฀฀ that฀it฀is฀today. 5 Va l e r o ฀ E n e r g y ฀ C o r p o r a t i o n summary฀annual฀report

  • Page 8
    CORPUS฀CHRISTI฀ TEXAS

  • Page 9
    ...฀Valero฀apart฀from฀its฀peers! Valero's฀unique฀strategy฀and฀unique฀culture฀are฀the฀ primary฀reasons฀why฀being฀different฀has฀paid฀off฀for฀ Valero฀and฀its฀shareholders! 7 Va l e r o ฀ E n e r g y ฀ C o r p o r a t i o n summary฀annual฀report

  • Page 10
    ...acquisition฀strategy฀pays฀off฀in฀a฀big฀way.฀ The฀St.฀Charles฀and฀Aruba฀refineries฀have฀proven฀to฀be฀ two฀of฀the฀most฀successful฀acquisitions฀in฀Valero's฀history.฀ 8 Va l e r o ฀ E n e r g y ฀ C o r p o r a t i o n summary฀annual฀report

  • Page 11
    ...operating฀income฀than฀Valero฀paid฀for฀them! These฀acquisitions฀are฀proof฀positive฀that฀Valero's฀ acquisition฀strategy฀is฀paying฀big฀dividends฀for฀the฀ company's฀shareholders. 9 Va l e r o ฀ E n e r g y ฀ C o r p o r a t i o n summary฀annual฀report

  • Page 12
    ... AND UPGRADING ITS REFINERIES, CAPTURING SYNERGIES AMONG PLANTS AND IMPROVING ITS OPERATIONS, HAS PAID OFF IN MANY WAYS FOR VALERO AND ITS SHAREHOLDERS! n฀1997,฀Valero's฀plan฀was฀to฀acquire฀refineries฀at฀ deep฀discounts฀to฀replacement฀costs฀and฀make฀ strategic...

  • Page 13
    ...AS฀OF฀JULY฀2004 who฀are฀experts฀in฀specific฀areas.฀For฀example,฀Valero฀ has฀an฀...fuels฀and฀other฀high-value฀products฀ makes฀the฀company's฀strategy฀a฀long-term฀winner. 11 Va l e r o ฀ E n e r g y ฀ C o r p o r a t i o n summary฀annual฀report

  • Page 14
    TEXAS฀CITY COKER

  • Page 15
    ... VALERO APART FROM ITS PEERS. AND CERTAINLY, VALERO'S SOUR CRUDE PROCESSING ADVANTAGE IS ONE OF THE MOST PROFITABLE! hen฀Valero฀...2004฀as฀ the฀company฀benefited฀from฀record฀sour฀crude฀discounts. 13 Va l e r o ฀ E n e r g y ฀ C o r p o r a t i o n summary฀annual฀report

  • Page 16
    ORLANDO FLORIDA

  • Page 17
    ...WAY WITH THE ULTRAMAR DIAMOND SHAMROCK ACQUISITION IN 2001, VALERO HAS IMPLEMENTED A STRATEGY THAT HAS PUMPED UP ITS RETAIL AND WHOLESALE PROFITS IN AN EVEN BIGGER WAY. I n฀its฀retail฀marketing฀division,฀Valero's฀strategy฀has฀ been฀to฀invest฀in฀its฀top-performing฀stores...

  • Page 18
    ARDMORE OK L A HOM A

  • Page 19
    ...฀to฀OSHA's฀Voluntary฀Protection฀ Program฀(VPP).฀In฀2004,฀Valero's฀ Wilmington฀and฀Ardmore฀refineries฀ joined฀the฀prestigious฀list฀of฀VPP฀Star฀ Sites,฀bringing฀the฀company's฀total฀to฀ seven฀VPP฀Star฀Sites.฀Only฀18฀of฀the฀฀ 149...

  • Page 20
    ....฀So฀it฀is฀no฀surprise฀that฀Valero฀ranked฀ No.฀1฀for฀earnings฀growth฀and฀shareholder฀return฀by฀ Forbes,฀as฀well฀as฀a฀top฀employer฀by฀Fortune฀Magazine.฀ 18 Va l e r o ฀ E n e r g y ฀ C o r p o r a t i o n summary฀annual฀report

  • Page 21
    ...;฀and฀ was฀selected฀as฀the฀"2004฀Oil฀Company฀of฀the฀ Year...Way's฀Spirit฀of฀America฀ award.฀Valero฀is฀only฀the฀second฀company฀to฀receive฀this฀ prestigious฀award฀twice. 19 Va l e r o ฀ E n e r g y ฀ C o r p o r a t i o n summary฀annual฀report

  • Page 22
    ....฀Valero's฀retail฀stores฀also฀ ฀ raised฀a฀record-breaking฀$1.2฀million฀for฀the฀฀ Muscular฀Dystrophy฀Association฀and฀$857,000฀฀ for฀Children's฀Miracle฀Network.฀฀ I 20 Va l e r o ฀ E n e r g y ฀ C o r p o r a t i o n summary฀annual฀report

  • Page 23
    ...Relations฀Department.฀ Address฀and฀contact฀information฀can฀be฀found฀on฀the฀inside฀back฀cover฀of฀this฀report.฀Valero's฀2004฀Annual฀Report฀on฀ Form฀10-K฀and฀the฀Proxy฀Statement฀also฀may฀be฀accessed฀via฀the฀Company's฀web฀site฀at...

  • Page 24
    ...฀Board฀of฀Directors฀and฀Stockholders฀฀ of฀Valero฀Energy฀Corporation We฀have฀audited,฀in฀accordance...2004฀ Annual฀Report฀on฀Form฀10-K฀(not฀presented฀herein).฀In฀our฀ report฀dated฀March฀11,฀2004,฀also฀appearing฀in฀that฀Annual฀ Report...

  • Page 25
    ...฀ DECEMBER฀31,฀ ASSETS millions฀of฀dollars) ฀ 2004฀ ฀ 2003฀ Current฀Assets฀ Property,฀Plant฀and...1,148฀ 7,798฀ 4,245฀ 1,605฀ 1,015฀ 5,735฀ $฀ 19,392฀ $฀ 15,664฀ 23 Va l e r o ฀ E n e r g y ฀ C o r p o r a t i o n summary฀annual฀report

  • Page 26
    ...฀ MINORITY฀INTEREST฀IN฀NET฀INCOME฀OF ฀฀฀VALERO฀L.P.฀ DISTRIBUTIONS฀ON฀PREFERRED฀SECURITIES OF฀SUBSIDIARY฀TRUSTS...of฀a฀stock฀dividend฀distributed฀on฀October฀7,฀2004.฀ ฀ 24 Va l e r o ฀ E n e r g y ฀ C o r p o r a t i o n summary฀annual฀report

  • Page 27
    ...Valero฀L.P.฀ Proceeds฀from฀Sale฀of฀Tesoro฀Notes฀ Proceeds฀from฀Disposition฀of฀Assets฀Held฀for฀Sale฀ Payments฀Related฀to฀the฀Golden฀Eagle฀Business฀ Acquisitions...2004... 269 379 25 Va l e r o ฀ E n e r g y ฀ C o r p o r a t i o n summary฀annual฀report

  • Page 28
    ...Interest฀in฀Valero฀L.P.฀ Stockholders'฀Equity฀ Total฀Liabilities฀and฀Stockholders'฀Equity฀ 2004(a)฀ 2003(b)฀ ... $฀ 19,392฀ $฀ 15,664฀ $฀ 14,465฀ $฀ 14,400฀฀ $฀ 4,308 26 Va l e r o ฀ E n e r g y ฀ C o r p o r a t i o n summary฀annual฀report

  • Page 29
    ...฀securities฀of฀subsidiary฀trust฀assumed฀in฀the฀UDS฀Acquisition฀was฀deemed฀฀ to฀be฀debt,฀and฀in฀2001฀the฀payable฀to฀UDS฀shareholders฀was฀included฀as฀debt.฀ 27 Va l e r o ฀ E n e r g y ฀ C o r p o r a t i o n summary฀annual฀report

  • Page 30
    ....฀and฀Argyle฀Communications,฀Inc.฀He฀also...฀Left฀to฀Right฀from฀Bottom Dr...University฀of฀Miami.฀Additionally,฀ she...Service,฀San฀Antonio's฀gas฀and฀electricity฀ utility฀company.฀ 28 Va l e r o ฀ E n e r g y ฀ C o r p o r a t i o n summary฀annual฀report

  • Page 31
    ...charge,฀a฀Form฀10-K฀by฀writing฀or฀calling฀Valero's฀Investor฀Relations฀Department.฀฀Valero's฀2004฀ Annual฀Report฀on฀Form฀10-K฀and฀the฀Proxy฀Statement฀also฀may฀be฀accessed฀via฀our฀web฀site฀at:฀www.valero.com. Printed฀in฀the฀U.S.A.

  • Page 32
    VA L E RO ฀ E N E RG Y ฀ C O R P O R AT I O N P. O . ฀ B o x ฀ 6 9 6 0 0 0 S a n ฀ A n t o n i o , ฀ Te x a s ฀ ฀ 7 8 2 6 9 - 6 0 0 0 w w w. v a l e r o . c o m