Valero 2014 Annual Report Download - page 9

7
2014 Summary Annual Report
Unlocking Implicit Asset Value
Valero Energy Partners LP (“VLP”), our
sponsored master limited partnership, remains
our primary strategy to grow Valero’s logistics
business and unlock asset value.
yIn 2014, we executed our rst acquisition
(“drop-down”) of Valero pipeline and terminal
assets into the partnership since the initial
public oering in late 2013.
yIn March of 2015, we completed our second
drop-down to VLP of the Houston and St.
Charles Terminal Services Business for $671
million.
yWe are targeting approximately $1 billion of
drops into VLP in 2015. Several new projects
are also under evaluation for drops into VLP.
Service to Others
We are pleased that others recognize that Valero
is an admirable company and a great place
to work, and that our team is committed to
supporting our communities.
yIn 2014, Valero, its employees and charitable
organization – the Valero Energy Foundation
– generated more than $38 million for
worthy charities or causes, through direct
donations or fundraising. Our employees also
volunteered more than 136,000 hours in 2014
for hundreds of community projects.
Capital Allocation
yWe returned $1.9 billion in cash to you
through dividends and stock purchases.
That’s an increase of one-third compared
with 2013. Early in 2015, we further raised
our regular quarterly dividend by 45 percent,
to 40 cents per share, or $1.60 annualized.
This increase demonstrates our belief in
Valero’s earnings power and conrmation
of our desire to share our earned cash with
shareholders.
yWe are dedicated to maintaining our
investment-grade credit rating and continue
to govern our uses of cash accordingly.
Valero nished 2014 with cash and
temporary cash investments of $3.7 billion,
additional liquidity of $6.1 billion and a net
debt-to-capitalization ratio of 17.4 percent.
Disciplined Capital Investments
yWe expect our new crude units at the
Houston and Corpus Christi reneries to
optimize our crude and feedstock slates by
increasing our capability to process price-
advantaged light, sweet crude oils.
yOur new hydrocrackers at Port Arthur and St.
Charles have performed better than expected
to increase production of distillates.
yWe’re investing in logistics assets to increase
our feedstock exibility and our capability to
export products.
yOur ethanol plants achieved record operating
income of $786 million for the year. Since
2009, they have produced more than $2.2
billion of earnings before interest, taxes,
depreciation and amortization.
The rigor and discipline that our team applied
to project review and spending enabled us
to complete our 2014 capital program under
budget at approximately $2.8 billion.
We are dedicated to maintaining
our investment-grade credit
rating and continue to govern
our uses of cash accordingly.