Valero 2011 Annual Report Download

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FINANCIAL HIGHLIGHTS
1
|
A LOOK AT OUR COMPANY
2
|
MAP OF OPERATIONS
3
|
LETTER TO STOCKHOLDERS
4
|
DELIVERING ON LONG-TERM VALUE
8
CONVERTING LOW-COST CRUDE INTO HIGH-VALUE PRODUCTS
10
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MAKING THE GRADE FOR COMPETITIVE OPERATIONS
12
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A CONSTANT FOCUS ON SAFETY, RELIABILITY, ENVIRONMENTAL STEWARDSHIP
14
SETTING NEW STANDARDS FOR RETAIL EXCELLENCE
16
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SETTING THE COURSE FOR NEXT-GENERATION FUELS
18
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TAKING A LEADERSHIP ROLE IN OUR COMMUNITIES
20
OUR EMPLOYEES ARE THE HEART OF OUR SUCCESS
22
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BOARD OF DIRECTORS/EXECUTIVE TEAM
24
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STOCKHOLDER INFORMATION
CONTENTS

Table of contents

  • Page 1
    ...AT OUR COMPANY 2 | MAP OF OPERATIONS 3 | LETTER TO STOCKHOLDERS 4 | DELIVERING ON LONG-TERM VALUE 8 CONVERTING LOW-COST CRUDE INTO HIGH-VALUE PRODUCTS 10 | MAKING THE GRADE FOR COMPETITIVE OPERATIONS 12 | A CONSTANT FOCUS ON SAFETY, RELIABILITY, ENVIRONMENTAL STEWARDSHIP 14 SETTING NEW STANDARDS FOR...

  • Page 2
    ... environmentally clean products, while striving to improve and enhance the environmental quality of our operations within our local communities. Commitment to our Communities We are committed to taking a leadership role in the communities in which we live and work by providing company support and...

  • Page 3
    ... financial statements are contained in its Annual Report on Form 10-K for the year ended December 31, 2011, which has been filed with the SEC and made available to all stockholders. This information is also available at www.valero.com. [Millions of dollars, except per-share amounts] OPERATING...

  • Page 4
    ...our Gulf Coast refineries are located in a key U.S. refining region, with large, complex plants that can readily serve export markets. Valero owns and operates some of the most complex refineries in the industry, efficiently processing lower-cost crude oil and other feedstocks into high-value fuels...

  • Page 5
    ... MCKEE ARDMORE SAN ANTONIO ST. CHARLES MERAUX THREE RIVERS BILL GREEHEY (EAST & WEST, CORPUS CHRISTI) MEMPHIS RETAIL AND BRANDED WHOLESALE PRESENCE WHOLESALE MARKETING PRESENCE VALERO REFINERIES VALERO ETHANOL PLANTS VALERO HEADQUARTERS ULTRAMAR - CANADIAN OPERATIONS CREDIT CARD CENTER PORT ARTHUR...

  • Page 6
    ... Houston, Three Rivers and Wilmington refineries, and our Corpus Christi Asphalt Terminal, were re-approved as Star Sites in the Voluntary Protection Programs of the federal Occupational Safety and Health Administration and the California Division We achieved our best annual of Occupational Safety...

  • Page 7
    ...major pipelines, 11 fuel terminals, a 14,000-barrel-per-day aviation fuels business and a wholesale marketing network of approximately 1,000 Texaco-branded wholesale sites. Also in 2011, Valero acquired the Meraux Refinery, plus related businesses, from Murphy Oil USA Inc. 2011 SUMMARY ANNUAL REPORT...

  • Page 8
    ... alternative energy. In our Diamond Green Diesel joint venture, we are partnering with Darling International to produce renewable diesel from recycled animal fat and used cooking oil. We expect this 10,000-barrel-perday facility next to our St. Charles refinery to be completed by the end of 2012. We...

  • Page 9
    ... as Latin permits for projects that could add America and Mexico, from our large, jobs and boost local economies. Bill Klesse competitive Gulf Coast refineries. Chairman of the Board, Chief Executive We feel strongly that we need a public The export markets are paying a Officer and President higher...

  • Page 10
    ... at McKee and Memphis should reduce the cost of hydrogen, using cheaper natural gas instead of more expensive crude oil, when started up in A substantial amount of our 2011 capital early 2012. The new Saint Laurent Pipeline connecting our Jean Gaulin Refinery in Quebec with a terminal in Montreal...

  • Page 11
    ... major pipelines and 11 fuel terminals, a 14,000 barrel-per-day aviation fuels business and a network of more than 1,000 Texaco-branded wholesale sites. Also in 2011, Valero acquired the Meraux Refinery outside New Orleans, plus related businesses. The refinery's location on the Mississippi River...

  • Page 12
    ... high crude oil prices. Rapid growth in the Eagle Ford shale formation in South Texas also has lowered crude costs, compared with imports. Valero's Three Rivers Refinery, Bill Greehey Refinery (Corpus Christi) East and West plants, and Houston Refinery are all positioned to process Continued global...

  • Page 13
    ... along the Gulf Coast with good export logistics and where new hydrocrackers - set to go online in 2012 at Port Arthur and St. Charles - will primarily produce diesel. Low-cost natural gas in the United States also is a competitive advantage compared with other global refiners. Valero represented 25...

  • Page 14
    ...1 in cash operating Associates study, our Bill Greehey expense and in maintenance cost, and Our ongoing cost-savings programs Refinery East and West plants in No. 2 in personnel efficiency. have contributed to Valero's Corpus Christi, as well as our Houston, competitiveness and improved Overall, our...

  • Page 15
    ...all competitive measures, with a constant focus on everything from safety and reliability to efficiency and cost-reduction. Our ongoing cost-savings programs have contributed to Valero's competitiveness and improved financial performance. 15 | VALERO ENERGY CORPORATION 2011 SUMMARY ANNUAL REPORT...

  • Page 16
    ... designations. Terminal were re-approved as Star Sites, under audits that are required every three years. Because safety is a team effort, 25 of our contractors also are Star-Site-approved. Our focus on safety extends beyond our refineries. At the end of 2011, our Valero Renewables ethanol plants...

  • Page 17
    ... of Valero's operations as the company is committed to being world-class in every way. We have undergone an array of improvements at our refineries, including new-generation scrubbers which dramatically reduce sulfur dioxide emissions. 17 | VALERO ENERGY CORPORATION 2011 SUMMARY ANNUAL REPORT...

  • Page 18
    ...-store sales up 1.3 percent. Fuel margins rose from the year before, and remain very strong. We continue to improve and transform the network in Canada. We're closing smaller companyoperated and dealer sites, and opening company-operated new sites - six this year - and adding new dealers. | VALERO...

  • Page 19
    ...industry stores, 85 remodels and 18 carwash upgrades, and acquired two stores ...We continued to invest in our Canadian operations, with a total of $32 million in capital spending on new sites, redevelopments, remodels and new dealers. 19 | VALERO ENERGY CORPORATION 2011 SUMMARY ANNUAL REPORT | 19

  • Page 20
    ... annually. at roughly 1.2 billion gallons investing in emerging biofuels per year. technologies. In a joint venture called Diamond Green Diesel, Valero is Ethanol is a clean-burning, highAt several of its company-owned partnering with Darling International octane renewable fuel produced by stores...

  • Page 21
    ... itself for the next generation of fuels production. Valero also operates 33 wind turbines in the Texas Panhandle that can produce 50 megawatts of electricity - capable of running the nearby McKee Refinery under peak wind conditions. 21 | VALERO ENERGY CORPORATION 2011 SUMMARY ANNUAL REPORT | 21

  • Page 22
    ... raise a record $9 million for in 2011 through Velo Valero, the children's charities in the U.S. through company's cycling team, as part of the Valero Texas Open and Benefit for the annual Bike MS: Valero Alamo Children Golf Classic. The contribution Ride to the River event. Velo Valero always is...

  • Page 23
    ... in community support wherever it operates. In 2011, our employees logged more than 143,000 volunteer hours for hundreds of community projects, including mentorships, shelter support, holiday events, emergency relief and other activities. 23 | VALERO ENERGY CORPORATION 2011 SUMMARY ANNUAL REPORT...

  • Page 24
    ... on-site wellness clinics at three locations, assisting employees with health emergencies as well as routine medical issues. A fitness center located at headquarters is available to employees, spouses and retirees at no charge. Our refineries at Corpus Christi, McKee, Port Arthur and Texas City also...

  • Page 25
    ...the Valero Texas Open and Benefit for Children Golf Classic, Bike MS: Valero Alamo Ride to the River, United Way Days of Caring and Habitat for Humanity. Through the years, employee Volunteer Councils have built strong bonds with many local charities, organizations and agencies where Valero operates...

  • Page 26
    ... & Company NOT PICTURED: Philip J. Pfeiffer, Of Counsel, Fulbright & Jaworski Bill Klesse Chairman of the Board, CEO and President Kim Bowers Executive Vice President and General Counsel Mike Ciskowski Executive Vice President and Chief Financial Officer Gene Edwards Executive Vice President...

  • 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 WEBSITE www.valero.com Investor Relations Department P.O. Box 696000 San Antonio, TX 78269-6000 (800) 531-7911 or...

  • Page 28
    Valero Energy Corporation P.O. Box 696000 • San Antonio, Texas 78269-6000 www.valero.com