Valero 2010 Annual Report Download

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VALERO ENERGY CORPORATION 2010 SUMMARY ANNUAL REPORT
EXCELLENCE
Doing Ordinary Things Extraordinarily Well

Table of contents

  • Page 1
    EXCELLENCE Doing Ordinary Things Extraordinarily Well VALERO ENERGY CORPORATION 2010 SUMMARY ANNUAL REPORT

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    ... Contents 1 Map of opEratioNs 2 fiNaNCiaL suMMary 3 - 5 to our sharEhoLdErs 6 - 7 safEty 8 - 9 opEratioNaL EXCELLENCE 10 - 11 high-gradiNg our systEM 12 - 13 Cost-saviNgs iNitiativEs 14 - 15 rENEwabLEs 16 - 17 rEtaiL 18 - 23 our pEopLE aNd our CoMMuNitiEs 24 board of dirECtors aNd EXECutivE tEaM 25...

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    ... RIVERS BILL GREEHEY (EAST & WEST) MEMPHIS SAN ANTONIO ST. CHARLES PORT ARTHUR HOUSTON TEXAS CITY ARUBA RETAIL AND BRANDED WHOLESALE PRESENCE WHOLESALE MARKETING PRESENCE VALERO REFINERIES VALERO ETHANOL PLANTS VALERO HEADQUARTERS ULTRAMAR-CANADIAN OPERATIONS CREDIT CARD CENTER valero Energy...

  • Page 4
    ... a financial summary. The company's full, audited financial statements are contained in its Annual Report on Form 10-K for the year ended December 31, 2010, which has been filed with the SEC and made available to all stockholders. This information is also available at www.valero.com [Millions of...

  • Page 5
    ... major capital projects, significant cost reductions, the acquisition of three more world-class ethanol plants and our best operational performance in five years. For 2010, Valero reported income from continuing operations of $923 million, or $1.62 per share. As we look to an even better 2011, here...

  • Page 6
    ... productive, and we make our communities a better place to live and work. I want to thank our employees for a very dedicated effort to make our company successful and you for your support, interest, and investment in Valero. bill Klesse Chairman of the board, Chief Executive Officer and President

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    to our sharEhoLdErs 5

  • Page 8
    ... per 200,000 working hours was second-lowest in company history. In all, Valero has reduced injury rates by 46 percent since 2001. 6 safEty We also work closely with our contractors to ensure they adopt high safety standards. In 2010, Valero refinery contractors recorded the company's lowest-ever...

  • Page 9
    ... the plant in Fort Dodge, Iowa, had operated more than 12 months without an OSHA-recordable injury. In rail safety, five major rail companies - CSx Transportation, Union Pacific, burlington Northern Santa Fe, Norfolk Southern and Canadian National - have recognized Valero refineries with prestigious...

  • Page 10
    ..., Valero's continuing U.S. refinery operations cut unscheduled shutdowns by nearly 8 opEratioNaL EXCELLENCE 70 percent from 2007 through 2010. The progress is the result of intense process safety and reliability assessments to identify areas and issues that could keep a unit, process or plant out...

  • Page 11
    ... 25 percent. Fixing fewer pumps drives cost out of our business and ensures our units are running reliably when market conditions are favorable. There has also been steady improvement in electrical reliability at Valero refineries since 2007 under stringent Electrical Safety and Reliability Network...

  • Page 12
    ... (FCC) unit revamps at our St. Charles and Memphis refineries, new hydrocrackers at Port Arthur and St. Charles, new hydrogen plants at McKee and Memphis, and a new Lévis to Montreal products pipeline. These projects alone, with expected completion in 2011 and 2012, are projected to generate annual...

  • Page 13
    ... hydrocracker projects at Port Arthur and St. Charles, due for completion during the second half of 2012, should create high-value products from low-cost feedstocks plus hydrogen sourced from relatively inexpensive natural gas. both will be 50,000 barrel-per-day hydrocrackers, and the Port Arthur...

  • Page 14
    ...to help the company reduce costs through targeted programs, from effective energy stewardship to more strategic procurement of 12 Cost-saviNgs iNitiativEs refinery equipment and focused retail initiatives. Through the fourth quarter of 2010, Valero's refining cash operating expenses per barrel from...

  • Page 15
    and other production processes, which have reduced our energy consumption. The facilities cut energy use by more than 30 million british thermal units (btu), or approximately 8 percent, from 2008 through 2010. While the company in 2011 will continue to focus on safety, reliability, executing on ...

  • Page 16
    ... 2009, located in Albert City, Charles City, Fort Dodge and Hartley, Iowa; Albion, Nebraska; Aurora, South Dakota and Welcome, Minnesota. We closed on the three additional high-quality plants in bloomingburg, Ohio; Jefferson, Wisconsin; and Linden, Indiana, in first-quarter 2010. The plants have...

  • Page 17
    .... Plant employees additionally support their local communities, pledging more than $175,000 to United Way for 2011 and logging thousands of volunteer hours. Valero is also active in wind electrical power, under its Sunray Wind subsidiary, and investments in new bio-fuels processes. We operate a 50...

  • Page 18
    ... percent. Despite having 10 fewer stores in 2010, inside gross profit dollars actually rose by $13.6 million. Valero's company-owned stores in the U.S. served 865,000 customers per day. Fuel profitability improved over 2009, with sales of 120,000 barrels per day at 994 stores in the U.S. Average per...

  • Page 19
    ... sales, at $9.1 million, up $1.5 million from 2009. Our Ultramar network has 252 company-operated stores, 87 sites representing our new image, and 70 sites with touchless carwashes. We're looking at all options to grow our highly successful network, through acquisitions, dealers, and new builds...

  • Page 20
    ...annual health screenings and access to fitness programs continue to be worthy investments. As an industry leader and visible community partner, Valero embraces the challenge to create measurable change in the communities where our employees live and work. Above all, Valero's goal is to improve lives...

  • Page 21
    ... financial support, community leadership and outreach for efforts such as Habitat for Humanity, the Valero Texas Open benefit for Children Golf Classic, the National MS Society fundraising bike rides, local area food banks and the United Way. In a majority of locations, child- and education-related...

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    our pEopLE 20 our pEopLE aNd our CoMMuNitiEs

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    our CoMMuNitiEs our pEopLE aNd our CoMMuNitiEs 21

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    our pEopLE 22 our pEopLE aNd our CoMMuNitiEs

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    our CoMMuNitiEs our pEopLE aNd our CoMMuNitiEs 23

  • Page 26
    ... Klesse Chairman of the board, CEO and President Jean Bernier Executive Vice President, Corporate Communications, Information Services & Supply Chain Management Kim Bowers Executive Vice President and General Counsel Mike Ciskowski Executive Vice President and Chief Financial Officer Gene Edwards...

  • Page 27
    ....com to learn more about our company. CoNtaCt iNforMatioN VALERO CORPORATE HEADQUARTERS INVESTOR INQUIRIES MEDIA INQUIRIES One Valero Way San Antonio, TX 78249-1616 (210) 345-2000 WEB SITE www.valero.com Investor Relations Department P.O. Box 696000 San Antonio, TX 78269-6000 (800) 531-7911 or...

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    valero Energy Corporation one valero way san antonio, texas 78249 www.valero.com