Valero 2015 Annual Report Download - page 30
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Table of Contents
On July 13, 2015, our board of directors authorized us to purchase an additional $2.5 billion of our outstanding common stock, with no
expiration date to such authorization, and we had $1.3 billion remaining available under that authorization as of December 31, 2015.
Effective November 24, 2015, VLP completed a public offering of 4,250,000 common units at a price of $46.25 per unit and received
net proceeds from the offering of $189 million after deducting the underwriting discount and other offering costs. This transaction is
further described in Note 4 of Notes to Consolidated Financial Statements.
Energy markets and margins were volatile during 2015, and we expect them to continue to be volatile in the 2016. Below is a summary
of factors that have impacted or may impact our results of operations during the first quarter of 2016:
• Gasoline margins have been volatile, but are expected to recover from seasonal lows in the near term as domestic and export
demand is expected to increase. Distillate margins have been negatively impacted by mild winter temperatures and are also
expected to recover from their seasonal lows.
• Medium and heavy sour crude oil discounts are expected to remain wide as sour crude oil remains oversupplied. Fuel oil price
weakness has also put pressure on heavy sour crude oil discounts. Sweet crude oil discounts are expected to remain weak on
lower domestic sweet crude oil production and higher foreign sweet and sour crude oil imports.
• Ethanol margins are expected to remain depressed as long as gasoline prices remain low.
• A further decline in market prices of crude oil and refined products may negatively impact the carrying value of our inventories.
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