Valero 2011 Annual Report Download - page 15

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15 | VALERO ENERGY CORPORATION
Our ongoing cost-savings programs have contributed to Valero’s
competitiveness and improved financial performance.
We will optimize our portfolio by continuing the “high-
grading” strategy of the past several years – successfully
integrating new acquisitions into our portfolio and
capturing synergies, evaluating dispositions of lesser-
performing assets, and evaluating attractively priced
acquisitions that improve competitiveness.
For example, we continue to receive a strong contribution
in earnings from our Valero Renewables ethanol plants. e
large, efficient plants in great locations have a competitive
advantage in costs. We acquired 10 world-class plants at an
average of 35 percent of estimated replacement cost. In less
than three years, cumulative earnings before interest, taxes,
depreciation and amortization (EBITDA) was $863 million,
surpassing the total purchase price of the plants of
$760 million. e plants additionally provide platforms for
future production of advanced biofuels.
Valero wants to go to the head of the class in all competitive
measures, with a constant focus on everything from safety
and reliability to efficiency and cost-reduction.
2011 SUMMARY ANNUAL REPORT | 15
MAKING THE GRADE
FOR COMPETITIVE OPERATIONS