VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

FINANCIAL HIGHLIGHTS

(millions of dollars, except per share amounts)

(unaudited)

Three Months Ended

March 31,

2025

2024

Statement of income data

Revenues

$

30,258

$

31,759

Cost of sales:

Cost of materials and other

27,548

27,682

Operating expenses (excluding depreciation and

amortization expense reflected below)

1,523

1,411

Depreciation and amortization expense

680

683

Total cost of sales

29,751

29,776

Asset impairment loss (a)

1,131

—

Other operating expenses (b)

4

34

General and administrative expenses (excluding

depreciation and amortization expense reflected below)

261

258

Depreciation and amortization expense

11

12

Operating income (loss)

(900

)

1,679

Other income, net

120

144

Interest and debt expense, net of capitalized interest

(137

)

(140

)

Income (loss) before income tax expense (benefit)

(917

)

1,683

Income tax expense (benefit)

(265

)

353

Net income (loss)

(652

)

1,330

Less: Net income (loss) attributable to noncontrolling interests

(57

)

85

Net income (loss) attributable to Valero Energy Corporation

stockholders

$

(595

)

$

1,245

Earnings (loss) per common share

$

(1.90

)

$

3.75

Weighted-average common shares outstanding (in millions)

314

331

Earnings (loss) per common share – assuming dilution

$

(1.90

)

$

3.75

Weighted-average common shares outstanding –

assuming dilution (in millions) (c)

314

331

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

FINANCIAL HIGHLIGHTS BY SEGMENT

(millions of dollars)

(unaudited)

Refining

Renewable

Diesel

Ethanol

Corporate

and

Eliminations

Total

Three months ended March 31, 2025

Revenues:

Revenues from external customers

$

28,757

$

493

$

1,008

$

—

$

30,258

Intersegment revenues

2

407

217

(626

)

—

Total revenues

28,759

900

1,225

(626

)

30,258

Cost of sales:

Cost of materials and other

26,269

895

1,032

(648

)

27,548

Operating expenses (excluding depreciation and

amortization expense reflected below)

1,291

78

154

—

1,523

Depreciation and amortization expense

594

68

19

(1

)

680

Total cost of sales

28,154

1,041

1,205

(649

)

29,751

Asset impairment loss (a)

1,131

—

—

—

1,131

Other operating expenses

4

—

—

—

4

General and administrative expenses (excluding

depreciation and amortization expense reflected

below)

—

—

—

261

261

Depreciation and amortization expense

—

—

—

11

11

Operating income (loss) by segment

$

(530

)

$

(141

)

$

20

$

(249

)

$

(900

)

Three months ended March 31, 2024

Revenues:

Revenues from external customers

$

30,143

$

702

$

914

$

—

$

31,759

Intersegment revenues

2

709

190

(901

)

—

Total revenues

30,145

1,411

1,104

(901

)

31,759

Cost of sales:

Cost of materials and other

26,611

1,066

909

(904

)

27,682

Operating expenses (excluding depreciation and

amortization expense reflected below)

1,184

90

137

—

1,411

Depreciation and amortization expense

600

65

19

(1

)

683

Total cost of sales

28,395

1,221

1,065

(905

)

29,776

Other operating expenses (b)

5

—

29

—

34

General and administrative expenses (excluding

depreciation and amortization expense reflected

below)

—

—

—

258

258

Depreciation and amortization expense

—

—

—

12

12

Operating income by segment

$

1,745

$

190

$

10

$

(266

)

$

1,679

See Operating Highlights by Segment.

 See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS

REPORTED UNDER U.S. GAAP (h)

(millions of dollars)

(unaudited)

Three Months Ended

March 31,

2025

2024

Reconciliation of net income (loss) attributable to Valero Energy

Corporation stockholders to adjusted net income

attributable to Valero Energy Corporation stockholders

Net income (loss) attributable to Valero Energy Corporation

stockholders

$

(595

)

$

1,245

Adjustments:

Asset impairment loss (a)

1,131

—

Income tax benefit related to asset impairment loss

(254

)

—

Asset impairment loss, net of taxes

877

—

Project liability adjustment (b)

—

29

Income tax benefit related to project liability adjustment

—

(7

)

Project liability adjustment, net of taxes

—

22

Second-generation biofuel tax credit (e)

—

7

Total adjustments

877

29

Adjusted net income attributable to

Valero Energy Corporation stockholders

$

282

$

1,274

Reconciliation of earnings (loss) per common share –

assuming dilution to adjusted earnings per common

share – assuming dilution

Earnings (loss) per common share – assuming dilution (c)

$

(1.90

)

$

3.75

Adjustments:

Asset impairment loss (a)

2.79

—

Project liability adjustment (b)

—

0.07

Second-generation biofuel tax credit (e)

—

0.02

Total adjustments

2.79

0.09

Adjusted earnings per common share – assuming dilution (d)

$

0.89

$

3.84

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS

REPORTED UNDER U.S. GAAP (f)

(millions of dollars)

(unaudited)

Three Months Ended

March 31,

2025

2024

Reconciliation of operating income (loss) by segment to segment

margin, and reconciliation of operating income (loss) by

segment to adjusted operating income by segment

Refining segment

Refining operating income (loss)

$

(530

)

$

1,745

Adjustments:

Operating expenses (excluding depreciation and

amortization expense reflected below)

1,291

1,184

Depreciation and amortization expense

594

600

Asset impairment loss (a)

1,131

—

Other operating expenses

4

5

Refining margin

$

2,490

$

3,534

Refining operating income (loss)

$

(530

)

$

1,745

Adjustments:

Asset impairment loss (a)

1,131

—

Other operating expenses

4

5

Adjusted Refining operating income

$

605

$

1,750

Renewable Diesel segment

Renewable Diesel operating income (loss)

$

(141

)

$

190

Adjustments:

Operating expenses (excluding depreciation and

amortization expense reflected below)

78

90

Depreciation and amortization expense

68

65

Renewable Diesel margin

$

5

$

345

Ethanol segment

Ethanol operating income

$

20

$

10

Adjustments:

Operating expenses (excluding depreciation and

amortization expense reflected below)

154

137

Depreciation and amortization expense

19

19

Other operating expenses (b)

—

29

Ethanol margin

$

193

$

195

Ethanol operating income

$

20

$

10

Adjustment: Other operating expenses (b)

—

29

Adjusted Ethanol operating income

$

20

$

39

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS

REPORTED UNDER U.S. GAAP (f)

(millions of dollars)

(unaudited)

Three Months Ended

March 31,

2025

2024

Reconciliation of Refining segment operating income (loss) to

Refining margin (by region), and reconciliation of Refining

segment operating income (loss) to adjusted Refining segment

operating income (loss) (by region) (g)

U.S. Gulf Coast region

Refining operating income

$

337

$

1,007

Adjustments:

Operating expenses (excluding depreciation and

amortization expense reflected below)

720

664

Depreciation and amortization expense

376

373

Other operating expenses

4

3

Refining margin

$

1,437

$

2,047

Refining operating income

$

337

$

1,007

Adjustment: Other operating expenses

4

3

Adjusted Refining operating income

$

341

$

1,010

U.S. Mid-Continent region

Refining operating income

$

50

$

269

Adjustments:

Operating expenses (excluding depreciation and

amortization expense reflected below)

195

185

Depreciation and amortization expense

76

87

Other operating expenses

—

2

Refining margin

$

321

$

543

Refining operating income

$

50

$

269

Adjustment: Other operating expenses

—

2

Adjusted Refining operating income

$

50

$

271

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS

REPORTED UNDER U.S. GAAP (f)

(millions of dollars)

(unaudited)

Three Months Ended

March 31,

2025

2024

Reconciliation of Refining segment operating income (loss) to

Refining margin (by region), and reconciliation of Refining

segment operating income (loss) to adjusted Refining segment

operating income (loss) (by region) (g) (continued)

North Atlantic region

Refining operating income

$

216

$

398

Adjustments:

Operating expenses (excluding depreciation and

amortization expense reflected below)

172

179

Depreciation and amortization expense

69

63

Refining margin

$

457

$

640

U.S. West Coast region

Refining operating income (loss)

$

(1,133

)

$

71

Adjustments:

Operating expenses (excluding depreciation and

amortization expense reflected below)

204

156

Depreciation and amortization expense

73

77

Asset impairment loss (a)

1,131

—

Refining margin

$

275

$

304

Refining operating income (loss)

$

(1,133

)

$

71

Adjustment: Asset impairment loss (a)

1,131

—

Adjusted Refining operating income (loss)

$

(2

)

$

71

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

REFINING SEGMENT OPERATING HIGHLIGHTS

(millions of dollars, except per barrel amounts)

(unaudited)

Three Months Ended

March 31,

2025

2024

Throughput volumes (thousand barrels per day)

Feedstocks:

Heavy sour crude oil

555

347

Medium/light sour crude oil

234

240

Sweet crude oil

1,560

1,507

Residuals

95

151

Other feedstocks

52

124

Total feedstocks

2,496

2,369

Blendstocks and other

332

391

Total throughput volumes

2,828

2,760

Yields (thousand barrels per day)

Gasolines and blendstocks

1,375

1,348

Distillates

1,078

991

Other products (h)

396

440

Total yields

2,849

2,779

Operating statistics (f) (i)

Refining margin

$

2,490

$

3,534

Adjusted Refining operating income

$

605

$

1,750

Throughput volumes (thousand barrels per day)

2,828

2,760

Refining margin per barrel of throughput

$

9.78

$

14.07

Less:

Operating expenses (excluding depreciation and

amortization expense reflected below) per barrel of

throughput

5.07

4.71

Depreciation and amortization expense per barrel of

throughput

2.33

2.39

Adjusted Refining operating income per barrel of

throughput

$

2.38

$

6.97

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

RENEWABLE DIESEL SEGMENT OPERATING HIGHLIGHTS

(millions of dollars, except per gallon amounts)

(unaudited)

Three Months Ended

March 31,

2025

2024

Operating statistics (f) (i)

Renewable Diesel margin

$

5

$

345

Renewable Diesel operating income (loss)

$

(141

)

$

190

Sales volumes (thousand gallons per day)

2,435

3,729

Renewable Diesel margin per gallon of sales

$

0.02

$

1.02

Less:

Operating expenses (excluding depreciation and

amortization expense reflected below) per gallon of sales

0.36

0.27

Depreciation and amortization expense per gallon of sales

0.30

0.19

Renewable Diesel operating income (loss) per gallon of sales

$

(0.64

)

$

0.56

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

ETHANOL SEGMENT OPERATING HIGHLIGHTS

(millions of dollars, except per gallon amounts)

(unaudited)

Three Months Ended

March 31,

2025

2024

Operating statistics (f) (i)

Ethanol margin

$

193

$

195

Adjusted Ethanol operating income

$

20

$

39

Production volumes (thousand gallons per day)

4,466

4,466

Ethanol margin per gallon of production

$

0.48

$

0.48

Less:

Operating expenses (excluding depreciation and

amortization expense reflected below) per gallon of production

0.38

0.34

Depreciation and amortization expense per gallon of production

0.05

0.05

Adjusted Ethanol operating income per gallon of production

$

0.05

$

0.09

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION

(millions of dollars, except per barrel amounts)

(unaudited)

Three Months Ended

March 31,

2025

2024

Operating statistics by region (g)

U.S. Gulf Coast region (f) (i)

Refining margin

$

1,437

$

2,047

Adjusted Refining operating income

$

341

$

1,010

Throughput volumes (thousand barrels per day)

1,671

1,594

Refining margin per barrel of throughput

$

9.56

$

14.11

Less:

Operating expenses (excluding depreciation and

amortization expense reflected below) per barrel of

throughput

4.79

4.58

Depreciation and amortization expense per barrel of

throughput

2.50

2.57

Adjusted Refining operating income per barrel of

throughput

$

2.27

$

6.96

U.S. Mid-Continent region (f) (i)

Refining margin

$

321

$

543

Adjusted Refining operating income

$

50

$

271

Throughput volumes (thousand barrels per day)

453

452

Refining margin per barrel of throughput

$

7.87

$

13.20

Less:

Operating expenses (excluding depreciation and

amortization expense reflected below) per barrel of

throughput

4.77

4.50

Depreciation and amortization expense per barrel of

throughput

1.87

2.10

Adjusted Refining operating income per barrel of

throughput

$

1.23

$

6.60

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION

(millions of dollars, except per barrel amounts)

(unaudited)

Three Months Ended

March 31,

2025

2024

Operating statistics by region (g) (continued)

North Atlantic region (f) (i)

Refining margin

$

457

$

640

Refining operating income

$

216

$

398

Throughput volumes (thousand barrels per day)

492

449

Refining margin per barrel of throughput

$

10.32

$

15.67

Less:

Operating expenses (excluding depreciation and

amortization expense reflected below) per barrel of

throughput

3.89

4.37

Depreciation and amortization expense per barrel of

throughput

1.56

1.55

Refining operating income per barrel of throughput

$

4.87

$

9.75

U.S. West Coast region (f) (i)

Refining margin

$

275

$

304

Adjusted Refining operating income (loss)

$

(2

)

$

71

Throughput volumes (thousand barrels per day)

212

265

Refining margin per barrel of throughput

$

14.43

$

12.62

Less:

Operating expenses (excluding depreciation and

amortization expense reflected below) per barrel of

throughput

10.72

6.47

Depreciation and amortization expense per barrel of

throughput

3.82

3.19

Adjusted Refining operating income (loss) per barrel of

throughput

$

(0.11

)

$

2.96

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS

(unaudited)

Three Months Ended

March 31,

2025

2024

Refining

Feedstocks (dollars per barrel)

Brent crude oil

$

74.89

$

81.83

Brent less West Texas Intermediate (WTI) crude oil

3.43

4.76

Brent less WTI Houston crude oil

2.08

2.93

Brent less Dated Brent crude oil

(0.75

)

(1.38

)

Brent less Argus Sour Crude Index crude oil

2.56

4.96

Brent less Maya crude oil

9.79

12.29

Brent less Western Canadian Select Houston crude oil

7.24

11.58

WTI crude oil

71.46

77.07

Natural gas (dollars per million British thermal units)

3.38

1.79

Renewable volume obligation (RVO) (dollars per barrel) (j)

4.76

3.68

Product margins (RVO adjusted unless otherwise noted)

(dollars per barrel)

U.S. Gulf Coast:

Conventional Blendstock for Oxygenate Blending (CBOB)

gasoline less Brent

3.58

8.13

Ultra-low-sulfur (ULS) diesel less Brent

16.69

24.61

Propylene less Brent (not RVO adjusted)

(14.53

)

(47.26

)

U.S. Mid-Continent:

CBOB gasoline less WTI

9.26

9.11

ULS diesel less WTI

16.50

22.92

North Atlantic:

CBOB gasoline less Brent

4.90

8.85

ULS diesel less Brent

20.88

28.21

U.S. West Coast:

California Reformulated Gasoline Blendstock for

Oxygenate Blending 87 gasoline less Brent

23.14

19.94

California Air Resources Board diesel less Brent

20.37

26.60

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS

(unaudited)

Three Months Ended

March 31,

2025

2024

Renewable Diesel

New York Mercantile Exchange ULS diesel

(dollars per gallon)

$

2.38

$

2.71

Biodiesel Renewable Identification Number (RIN)

(dollars per RIN)

0.79

0.58

California Low-Carbon Fuel Standard carbon credit

(dollars per metric ton)

66.17

63.55

U.S. Gulf Coast (USGC) used cooking oil (dollars per pound)

0.50

0.40

USGC distillers corn oil (dollars per pound)

0.52

0.48

USGC fancy bleachable tallow (dollars per pound)

0.50

0.41

Ethanol

Chicago Board of Trade corn (dollars per bushel)

4.73

4.35

New York Harbor ethanol (dollars per gallon)

1.82

1.64

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

OTHER FINANCIAL DATA

(millions of dollars)

(unaudited)

March 31,

December 31,

2025

2024

Balance sheet data

Current assets

$

23,590

$

23,737

Cash and cash equivalents included in current assets

4,634

4,657

Inventories included in current assets

7,119

7,761

Current liabilities

15,143

15,495

Valero Energy Corporation stockholders’ equity

23,490

24,512

Total equity

26,315

27,521

Debt and finance lease obligations:

Debt –

Current portion of debt (excluding variable interest entities (VIEs))

$

251

$

441

Debt, less current portion of debt (excluding VIEs)

8,231

7,586

Total debt (excluding VIEs)

8,482

8,027

Current portion of debt attributable to VIEs

46

58

Debt, less current portion of debt attributable to VIEs

—

—

Total debt attributable to VIEs

46

58

Total debt

8,528

8,085

Finance lease obligations –

Current portion of finance lease obligations (excluding VIEs)

218

217

Finance lease obligations, less current portion (excluding VIEs)

1,446

1,492

Total finance lease obligations (excluding VIEs)

1,664

1,709

Current portion of finance lease obligations attributable to VIEs

27

27

Finance lease obligations, less current portion attributable to VIEs

635

642

Total finance lease obligations attributable to VIEs

662

669

Total finance lease obligations

2,326

2,378

Total debt and finance lease obligations

$

10,854

$

10,463

Three Months Ended

March 31,

2025

2024

Reconciliation of net cash provided by operating activities to

adjusted net cash provided by operating activities (f)

Net cash provided by operating activities

$

952

$

1,846

Exclude:

Changes in current assets and current liabilities

157

(160

)

Diamond Green Diesel LLC’s (DGD) adjusted net cash

provided by (used in) operating activities attributable to the

other joint venture member’s ownership interest in DGD

(67

)

122

Adjusted net cash provided by operating activities

$

862

$

1,884

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

EARNINGS RELEASE TABLES

OTHER FINANCIAL DATA

(millions of dollars, except per share amounts)

(unaudited)

Three Months Ended

March 31,

2025

2024

Reconciliation of capital investments to capital

investments attributable to Valero (f)

Capital expenditures (excluding VIEs)

$

189

$

128

Capital expenditures of VIEs:

DGD

59

69

Other VIEs

1

3

Deferred turnaround and catalyst cost expenditures

(excluding VIEs)

374

452

Deferred turnaround and catalyst cost expenditures

of DGD

36

9

Investments in nonconsolidated joint ventures

1

—

Capital investments

660

661

Adjustments:

DGD’s capital investments attributable to the other joint

venture member

(48

)

(39

)

Capital expenditures of other VIEs

(1

)

(3

)

Capital investments attributable to Valero

$

611

$

619

Dividends per common share

$

1.13

$

1.07

See Notes to Earnings Release Tables.

VALERO ENERGY CORPORATION

NOTES TO EARNINGS RELEASE TABLES

(a)

In late March 2025, we approved a plan with respect to the operations at our Benicia Refinery and currently intend to cease refining operations by the end of April 2026. In addition, we considered strategic alternatives for our remaining operations in California. As a result, we evaluated the assets of the Benicia and Wilmington refineries for impairment as of March 31, 2025 and concluded that the carrying values of these assets were not recoverable. Therefore, we reduced the carrying values of the Benicia and Wilmington refineries to their estimated fair values and recognized a combined asset impairment loss of $1.1 billion in the three months ended March 31, 2025.

(b)

In March 2021, we announced our participation in a then-proposed large-scale carbon capture and sequestration pipeline system with Navigator Energy Services (Navigator). In October 2023, Navigator announced that it decided to cancel this project. Under the terms of the agreements associated with the project, we had some rights from and obligations to Navigator, including a portion of the aggregate project costs. As a result, we recognized a charge of $29 million in the three months ended March 31, 2024 related to our obligation to Navigator.

(c)

Common equivalent shares have been excluded from the computation of loss per common share – assuming dilution for the three months ended March 31, 2025, as the effect of including such shares would be antidilutive.

(d)

Common equivalent shares have been included in the computation of adjusted earnings per common share – assuming dilution for the three months ended March 31, 2025, as the effect of including such shares is dilutive. Weighted-average shares outstanding – assuming dilution used to calculate adjusted earnings per common share – assuming dilution is 314 million shares.

(e)

In December 2024, the Internal Revenue Service approved our application for registration as a producer of second-generation biofuels with respect to the cellulosic ethanol produced at our ethanol plants. As a result, we recognized a current income tax benefit of $79 million in December 2024 for the tax credit attributable to volumes of cellulosic ethanol produced and sold by us in the U.S. from 2020 through 2024, of which $7 million is attributable to the three months ended March 31, 2024.

(f)

We use certain financial measures (as noted below) in the earnings release tables and accompanying earnings release that are not defined under GAAP and are considered to be non-GAAP measures.

We have defined these non-GAAP measures and believe they are useful to the external users of our financial statements, including industry analysts, investors, lenders, and rating agencies. We believe these measures are useful to assess our ongoing financial performance because, when reconciled to their most comparable GAAP measures, they provide improved comparability between periods after adjusting for certain items that we believe are not indicative of our core operating performance and that may obscure our underlying business results and trends. These non-GAAP measures should not be considered as alternatives to their most comparable GAAP measures nor should they be considered in isolation or as a substitute for an analysis of our results of operations as reported under GAAP. In addition, these non-GAAP measures may not be comparable to similarly titled measures used by other companies because we may define them differently, which diminishes their utility.

Non-GAAP measures are as follows:

• Adjusted net income attributable to Valero Energy Corporation stockholders is defined as net income (loss) attributable to Valero Energy Corporation stockholders adjusted to reflect the items noted below, along with their related income tax effect, as applicable. The income tax effect for the adjustments was calculated using a combined U.S. federal and state statutory rate of 22.5 percent. We have adjusted for these items because we believe that they are not indicative of our core operating performance and that their adjustment results in an important measure of our ongoing financial performance to better assess our underlying business results and trends. The basis for our belief with respect to each adjustment is provided below.

–

Asset impairment loss – The asset impairment loss attributable to our Benicia and Wilmington refineries (see note (a)) is not indicative of our ongoing operations or our expectations about the profitability of our refining business.

–

Project liability adjustment – The project liability adjustment related to the cancellation of Navigator’s project (see note (b)) is not indicative of our ongoing operations.

–

Second-generation biofuel tax credit – The income tax benefit from the second-generation biofuel tax credit recognized by us in December 2024 is attributable to volumes produced and sold from 2020 to 2024 (see note (e)). Therefore, the adjustment reflects the portion of the credit that is attributable to volumes produced and sold during the three months ended March 31, 2024.

• Adjusted earnings per common share – assuming dilution is defined as adjusted net income attributable to Valero Energy Corporation stockholders divided by the number of weighted-average shares outstanding in the applicable period, assuming dilution (see note (d)).

• Refining margin is defined as Refining segment operating income (loss) excluding operating expenses (excluding depreciation and amortization expense), depreciation and amortization expense, the asset impairment loss (see note (a)), and other operating expenses. We believe Refining margin is an important measure of our Refining segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance.

• Renewable Diesel margin is defined as Renewable Diesel segment operating income (loss) excluding operating expenses (excluding depreciation and amortization expense) and depreciation and amortization expense. We believe Renewable Diesel margin is an important measure of our Renewable Diesel segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance.

• Ethanol margin is defined as Ethanol segment operating income excluding operating expenses (excluding depreciation and amortization expense), depreciation and amortization expense, and other operating expenses. We believe Ethanol margin is an important measure of our Ethanol segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance.

• Adjusted Refining operating income (loss) is defined as Refining segment operating income (loss) excluding the asset impairment loss (see note (a)) and other operating expenses. We believe adjusted Refining operating income (loss) is an important measure of our Refining segment’s operating and financial performance because it excludes items that are not indicative of that segment’s core operating performance.

• Adjusted Ethanol operating income is defined as Ethanol segment operating income excluding other operating expenses. We believe adjusted Ethanol operating income is an important measure of our Ethanol segment’s operating and financial performance because it excludes items that are not indicative of that segment’s core operating performance.

• Adjusted net cash provided by operating activities is defined as net cash provided by operating activities excluding the items noted below. We believe adjusted net cash provided by operating activities is an important measure of our ongoing financial performance to better assess our ability to generate cash to fund our investing and financing activities. The basis for our belief with respect to each excluded item is provided below.

–

Changes in current assets and current liabilities – Current assets net of current liabilities represents our operating liquidity. We believe that the change in our operating liquidity from period to period does not represent cash generated by our operations that is available to fund our investing and financing activities.

–

DGD’s adjusted net cash provided by operating activities attributable to the other joint venture member’s ownership interest in DGD – We are a 50 percent joint venture member in DGD and we consolidate DGD’s financial statements. Our Renewable Diesel segment includes the operations of DGD and the associated activities to market its products. Because we consolidate DGD’s financial statements, all of DGD’s net cash provided by operating activities (or operating cash flow) is included in our consolidated net cash provided by operating activities.

In general, DGD’s members use DGD’s operating cash flow (excluding changes in its current assets and current liabilities) to fund its capital investments rather than distribute all of that cash to themselves. Nevertheless, DGD’s operating cash flow is effectively attributable to each member and only a portion of DGD’s operating cash flow should be attributed to our net cash provided by operating activities. Therefore, we have adjusted our net cash provided by operating activities for the portion of DGD’s operating cash flow attributable to the other joint venture member’s ownership interest because we believe that it more accurately reflects the operating cash flow available to us to fund our investing and financing activities. The adjustment is calculated as follows (in millions):

Three Months Ended

March 31,

2025

2024

DGD operating cash flow data

Net cash provided by (used in) operating activities

$

161

$

(6

)

Exclude: Changes in current assets and current liabilities

294

(250

)

Adjusted net cash provided by (used in) operating activities

(133

)

244

Other joint venture member’s ownership interest

50

%

50

%

DGD’s adjusted net cash provided by (used in) operating activities

attributable to the other joint venture member’s ownership interest in DGD

$

(67

)

$

122

• Capital investments attributable to Valero is defined as all capital expenditures and deferred turnaround and catalyst cost expenditures presented in our consolidated statements of cash flows, excluding the portion of DGD’s capital investments attributable to the other joint venture member and all of the capital expenditures of VIEs other than DGD.

In general, DGD’s members use DGD’s operating cash flow (excluding changes in its current assets and current liabilities) to fund its capital investments rather than distribute all of that cash to themselves. Because DGD’s operating cash flow is effectively attributable to each member, only 50 percent of DGD’s capital investments should be attributed to our net share of total capital investments. We also exclude the capital expenditures of other VIEs that we consolidate because we do not operate those VIEs. We believe capital investments attributable to Valero is an important measure because it more accurately reflects our capital investments.

(g)

The Refining segment regions reflected herein contain the following refineries: U.S. Gulf Coast- Corpus Christi East, Corpus Christi West, Houston, Meraux, Port Arthur, St. Charles, Texas City, and Three Rivers Refineries; U.S. Mid Continent- Ardmore, McKee, and Memphis Refineries; North Atlantic- Pembroke and Quebec City Refineries; and U.S. West Coast- Benicia and Wilmington Refineries.

(h)

Primarily includes petrochemicals, gas oils, No. 6 fuel oil, petroleum coke, sulfur, and asphalt.

(i)

We use certain operating statistics (as noted below) in the earnings release tables and the accompanying earnings release to evaluate performance between comparable periods. Different companies may calculate them in different ways.

All per barrel of throughput, per gallon of sales, and per gallon of production amounts are calculated by dividing the associated dollar amount by the throughput volumes, sales volumes, and production volumes for the period, as applicable.

Throughput volumes, sales volumes, and production volumes are calculated by multiplying throughput volumes per day, sales volumes per day, and production volumes per day (as provided in the accompanying tables), respectively, by the number of days in the applicable period. We use throughput volumes, sales volumes, and production volumes for the Refining segment, Renewable Diesel segment, and Ethanol segment, respectively, due to their general use by others who operate facilities similar to those included in our segments. We believe the use of such volumes results in per unit amounts that are most representative of the product margins generated and the operating costs incurred as a result of our operation of those facilities.

(j)

The RVO cost represents the average market cost on a per barrel basis to comply with the Renewable Fuel Standard program. The RVO cost is calculated by multiplying (i) the average market price during the applicable period for the RINs associated with each class of renewable fuel (i.e., biomass-based diesel, cellulosic biofuel, advanced biofuel, and total renewable fuel) by (ii) the quotas for the volume of each class of renewable fuel that must be blended into petroleum-based transportation fuels consumed in the U.S., as set or proposed by the U.S. Environmental Protection Agency, on a percentage basis for each class of renewable fuel and adding together the results of each calculation.