Reported net income attributable to Valero stockholders of $1,009 million, or $2.46 per share, for the fourth quarter and $930 million, or $2.27 per share, for the year.
Reported adjusted net income attributable to Valero stockholders of $1,012 million, or $2.47 per share, for the fourth quarter and $1,152 million, or $2.81 per share, for the year.
Returned $401 million in cash to stockholders in the fourth quarter and $1.6 billion in the year through dividends.
Reduced Valero's long-term debt by $693 million in the fourth quarter and by $1.3 billion in 2021.
Startup of the Diamond Green Diesel project at Port Arthur (DGD 3) is now expected to be in the first quarter of 2023.

Valero Energy Corporation (NYSE:VLO, "Valero"))) today reported net income attributable to Valero stockholders of $1,009 million, or $2.46 per share, for the fourth quarter of 2021, compared to a net loss of $359 million, or $0.88 per share, for the fourth quarter of 2020. Excluding the adjustments shown in the accompanying earnings release tables, fourth quarter 2021 adjusted net income attributable to Valero stockholders was $1,012 million, or $2.47 per share, compared to an adjusted net loss of $429 million, or $1.06 per share, for the fourth quarter of 2020.

For 2021, net income attributable to Valero stockholders was $930 million, or $2.27 per share, compared to a net loss of $1,421 million, or $3.50 per share, in 2020. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders was $1,152 million, or $2.81 per share, in 2021, compared to an adjusted net loss of $1,265 million, or $3.12 per share, in 2020.

"We saw continued improvement in our business during the fourth quarter with margins supported by strong product demand," said Joe Gorder, Valero Chairman and Chief Executive Officer. "Looking ahead, we remain optimistic on refining margins with low global light product inventories, strong demand, global supply tightness due to significant refining capacity rationalization, and wider sour crude oil differentials."

Refining

The refining segment reported $1.3 billion of operating income for the fourth quarter of 2021, compared to a $377 million operating loss for the fourth quarter of 2020. Fourth quarter 2021 adjusted operating income was $1.1 billion, compared to an adjusted operating loss of $476 million for the fourth quarter of 2020. Refinery throughput volumes averaged 3.0 million barrels per day in the fourth quarter of 2021, which was 483 thousand barrels per day higher than the fourth quarter of 2020. 2021 was Valero's best year ever for Employee and Process Safety.

"The Employee and Process safety milestones set in 2021 are a testament to our long-standing commitment to safe, reliable and environmentally responsible operations," said Gorder. "In fact, we have set records for Process Safety for three consecutive years."

Renewable Diesel

The renewable diesel segment, which consists of the Diamond Green Diesel (DGD) joint venture, reported $150 million of operating income for the fourth quarter of 2021, compared to $127 million for the fourth quarter of 2020. Adjusted renewable diesel operating income was $152 million for the fourth quarter of 2021. Renewable diesel sales volumes averaged 1.6 million gallons per day in the fourth quarter of 2021, which was 974 thousand gallons per day higher than the fourth quarter of 2020. The higher operating income and sales volumes in the fourth quarter of 2021 were primarily attributable to the startup of the DGD expansion project (DGD 2) in the fourth quarter.

Ethanol

The ethanol segment reported $474 million of operating income for the fourth quarter of 2021, compared to $15 million for the fourth quarter of 2020. Fourth quarter 2021 adjusted operating income was $475 million, compared to $17 million for the fourth quarter of 2020. Ethanol production volumes averaged 4.4 million gallons per day in the fourth quarter of 2021, which was 278 thousand gallons per day higher than the fourth quarter of 2020. Higher operating income in the fourth quarter of 2021 was primarily attributed to higher ethanol product prices.

Corporate and Other

General and administrative expenses were $286 million in the fourth quarter of 2021, compared to $224 million in the fourth quarter of 2020. General and administrative expenses were $865 million for the year. The effective tax rate for 2021 was 17 percent, which reflects the benefit from the portion of DGD's net income that is not taxable to Valero.

Investing and Financing Activities

Net cash provided by operating activities was $2.5 billion in the fourth quarter of 2021. Included in this amount was a $595 million favorable impact from working capital and $82 million associated with the other joint venture member's share of DGD's net cash provided by operating activities, excluding changes in DGD's working capital. Excluding these items, adjusted net cash provided by operating activities was $1.8 billion in the fourth quarter of 2021.

Net cash provided by operating activities in 2021 was $5.9 billion. Included in this amount was a $2.2 billion favorable impact from working capital and $381 million associated with the other joint venture member's share of DGD's net cash provided by operating activities, excluding changes in DGD's working capital. Excluding these items, adjusted net cash provided by operating activities in 2021 was $3.3 billion.

Capital investments totaled $752 million in the fourth quarter of 2021, of which $353 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance. Excluding capital investments attributable to the other joint venture member's 50 percent share of DGD and those related to other variable interest entities, capital investments attributable to Valero were $545 million in the fourth quarter of 2021 and $1.8 billion in 2021.

Valero returned $401 million to stockholders through dividends in the fourth quarter of 2021. In 2021, Valero returned $1.6 billion to stockholders, or 50 percent of adjusted net cash provided by operating activities.

Valero continues to target a long-term total payout ratio between 40 and 50 percent of adjusted net cash provided by operating activities. Valero defines total payout ratio as the sum of dividends and stock buybacks divided by net cash provided by operating activities adjusted for changes in working capital and DGD's net cash provided by operating activities, excluding changes in its working capital, attributable to the other joint venture member's ownership interest in DGD.

In the fourth quarter, Valero completed a series of debt reduction and refinancing transactions that together reduced Valero's long-term debt by $693 million. These debt reduction and refinancing transactions, combined with the redemption of the $575 million Floating Rate Senior Notes due 2023 in the third quarter, collectively reduced Valero's long-term debt by $1.3 billion in 2021.

Liquidity and Financial Position

Valero ended 2021 with $13.9 billion of total debt and finance lease obligations and $4.1 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 33 percent as of December 31, 2021.

Strategic Update

The DGD 2 expansion project at Valero's St. Charles refinery commenced operations in the fourth quarter, on-budget and ahead of schedule. DGD 2's annual renewable diesel production capacity has been increased as a result of process improvement and optimization and now stands at 410 million gallons per year, compared to the 400 million gallons per year design capacity. Total DGD renewable diesel production capacity is now 700 million gallons per year.

The DGD project at Valero's Port Arthur refinery (DGD 3), which is expected to have a renewable diesel production capacity of 470 million gallons per year, is progressing ahead of schedule and is now expected to commence operations in the first quarter of 2023, increasing DGD's total annual production capacity to approximately 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha.

BlackRock and Navigator's large-scale carbon sequestration project is also progressing on schedule and is still expected to begin startup activities in late 2024. Valero is expected to be the anchor shipper with eight of Valero's ethanol plants connected to this system, producing a lower carbon intensity ethanol product to be marketed in low-carbon fuel markets that is expected to result in a higher product margin.

Refinery optimization projects that are expected to reduce cost and improve margin capture are progressing on schedule. The Port Arthur Coker project, which is expected to increase the refinery's utilization rate and improve turnaround efficiency, is expected to be completed in the first half of 2023.

Conference Call

Valero's senior management will hold a conference call at 10 a.m. ET today to discuss this earnings release and to provide an update on operations and strategy.

About Valero

We are an international manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and we sell our products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland, and Latin America. We own 15 petroleum refineries located in the U.S., Canada, and the U.K. with a combined throughput capacity of approximately 3.2 million barrels per day (BPD). We are a joint venture member in Diamond Green Diesel Holdings LLC (DGD), which owns a renewable diesel plant in Norco, Louisiana with a production capacity of 700 million gallons per year, and we own 12 ethanol plants located in the Mid-Continent region of the U.S. with a combined production capacity of approximately 1.6 billion gallons per year. We manage our operations through our Refining, Renewable Diesel, and Ethanol segments. Please visit www.investorvalero.com for more information.

Valero Contacts

Investors:

Homer Bhullar, Vice President – Investor Relations and Finance, 210-345-1982

Eric Herbort, Senior Manager – Investor Relations, 210-345-3331

Gautam Srivastava, Senior Manager – Investor Relations, 210-345-3992

Media:

Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002

Safe-Harbor Statement

Statements contained in this release and the accompanying tables that state the company's or management's expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words "believe," "expect," "should," "estimates," "intend," "target," "will," "plans," "forecast," and other similar expressions identify forward-looking statements. Forward-looking statements in this release and the accompanying tables include those relating to our greenhouse gas emissions targets, expected timing of completion and performance of projects, future market and industry conditions, future operating and financial performance, and management of future risks. It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of the company's control, such as legislative or political changes or developments, market dynamics, cyberattacks, weather events, and other matters affecting our operations or the demand for our products. These factors also include, but are not limited to, the uncertainties that remain with respect to the COVID-19 pandemic, variants of the virus, governmental and societal responses thereto, including requirements and mandates with respect to vaccines, vaccine distribution and administration levels, and the adverse effects the foregoing may have on our business or economic conditions generally. For more information concerning these and other factors that could cause actual results to differ from those expressed or forecasted, see Valero's annual report on Form 10-K, quarterly reports on Form 10-Q, and other reports filed with the Securities and Exchange Commission and available on Valero's website at www.valero.com.

Use of Non-GAAP Financial Information

This earnings release and the accompanying earnings release tables include references to financial measures that are not defined under U.S. generally accepted accounting principles (GAAP). These non-GAAP measures include adjusted net income (loss) attributable to Valero stockholders, adjusted earnings (loss) per common share – assuming dilution, refining margin, renewable diesel margin, ethanol margin, adjusted refining operating income (loss), adjusted renewable diesel operating income, adjusted ethanol operating income (loss), adjusted net cash provided by operating activities, and capital investments attributable to Valero. These non-GAAP financial measures have been included to help facilitate the comparison of operating results between periods. See the accompanying earnings release tables for a reconciliation of non-GAAP measures to their most directly comparable U.S. GAAP measures. Note (g) to the earnings release tables provides reasons for the use of these non-GAAP financial measures.

VALERO ENERGY CORPORATION EARNINGS RELEASE TABLES OTHER FINANCIAL DATA (millions of dollars) (unaudited)

	Three Months Ended December 31,						Year Ended December 31,
	2021			2020			2021			2020
Statement of income data
Revenues	$	35,903		$	16,604		$	113,977		$	64,912
Cost of sales:
Cost of materials and other (a) (b) (c)		31,849			15,101			102,714			58,933
Lower of cost or market (LCM) inventory valuation adjustment		—			—			—			(19	)
Operating expenses (excluding depreciation and amortization expense reflected below) (a)		1,558			1,167			5,776			4,435
Depreciation and amortization expense		586			566			2,358			2,303
Total cost of sales		33,993			16,834			110,848			65,652
Other operating expenses		18			5			87			35
General and administrative expenses (excluding depreciation and amortization expense reflected below)		286			224			865			756
Depreciation and amortization expense		12			11			47			48
Operating income (loss)		1,594			(470	)		2,130			(1,579	)
Other income (loss), net (d)		(163	)		25			16			132
Interest and debt expense, net of capitalized interest		(152	)		(153	)		(603	)		(563	)
Income (loss) before income tax expense (benefit)		1,279			(598	)		1,543			(2,010	)
Income tax expense (benefit) (e)		169			(289	)		255			(903	)
Net income (loss)		1,110			(309	)		1,288			(1,107	)
Less: Net income attributable to noncontrolling interests		101			50			358			314
Net income (loss) attributable to Valero Energy Corporation stockholders	$	1,009		$	(359	)	$	930		$	(1,421	)

Earnings (loss) per common share	$	2.47		$	(0.88	)	$	2.27		$	(3.50	)
Weighted-average common shares outstanding (in millions)		408			407			407			407

Earnings (loss) per common share – assuming dilution	$	2.46		$	(0.88	)	$	2.27		$	(3.50	)
Weighted-average common shares outstanding – assuming dilution (in millions) (f)		408			407			407			407

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 December 31, 2021
Revenues:
Revenues from external customers	$	33,521		$	684	$	1,698	$	—		$	35,903
Intersegment revenues		7			253		174		(434	)		—
Total revenues		33,528			937		1,872		(434	)		35,903
Cost of sales:
Cost of materials and other (c)		30,342			714		1,224		(431	)		31,849
Operating expenses (excluding depreciation and amortization expense reflected below)		1,358			48		153		(1	)		1,558
Depreciation and amortization expense		543			23		20		—			586
Total cost of sales		32,243			785		1,397		(432	)		33,993
Other operating expenses		15			2		1		—			18
General and administrative expenses (excluding depreciation and amortization expense reflected below)		—			—		—		286			286
Depreciation and amortization expense		—			—		—		12			12
Operating income by segment	$	1,270		$	150	$	474	$	(300	)	$	1,594

Three months ended December 31, 2020
Revenues:
Revenues from external customers	$	15,513		$	205	$	886	$	—		$	16,604
Intersegment revenues		2			62		66		(130	)		—
Total revenues		15,515			267		952		(130	)		16,604
Cost of sales:
Cost of materials and other (b)		14,324			107		800		(130	)		15,101
Operating expenses (excluding depreciation and amortization expense reflected below)		1,032			22		113		—			1,167
Depreciation and amortization expense		531			11		24		—			566
Total cost of sales		15,887			140		937		(130	)		16,834
Other operating expenses		5			—		—		—			5
General and administrative expenses (excluding depreciation and amortization expense reflected below)		—			—		—		224			224
Depreciation and amortization expense		—			—		—		11			11
Operating income (loss) by segment	$	(377	)	$	127	$	15	$	(235	)	$	(470	)

See Operating Highlights by Segment. 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
Year ended December 31, 2021
Revenues:
Revenues from external customers	$	106,947		$	1,874	$	5,156		$	—		$	113,977
Intersegment revenues		14			468		433			(915	)		—
Total revenues		106,961			2,342		5,589			(915	)		113,977
Cost of sales:
Cost of materials and other (a) (c)		97,759			1,438		4,428			(911	)		102,714
Operating expenses (excluding depreciation and amortization expense reflected below) (a)		5,088			134		556			(2	)		5,776
Depreciation and amortization expense		2,169			58		131			—			2,358
Total cost of sales		105,016			1,630		5,115			(913	)		110,848
Other operating expenses		83			3		1			—			87
General and administrative expenses (excluding depreciation and amortization expense reflected below)		—			—		—			865			865
Depreciation and amortization expense		—			—		—			47			47
Operating income by segment	$	1,862		$	709	$	473		$	(914	)	$	2,130

Year ended December 31, 2020
Revenues:
Revenues from external customers	$	60,840		$	1,055	$	3,017		$	—		$	64,912
Intersegment revenues		8			212		226			(446	)		—
Total revenues		60,848			1,267		3,243			(446	)		64,912
Cost of sales:
Cost of materials and other (b)		56,093			500		2,784			(444	)		58,933
LCM inventory valuation adjustment		(19	)		—		—			—			(19	)
Operating expenses (excluding depreciation and amortization expense reflected below)		3,944			85		406			—			4,435
Depreciation and amortization expense		2,138			44		121			—			2,303
Total cost of sales		62,156			629		3,311			(444	)		65,652
Other operating expenses		34			—		1			—			35
General and administrative expenses (excluding depreciation and amortization expense reflected below)		—			—		—			756			756
Depreciation and amortization expense		—			—		—			48			48
Operating income (loss) by segment	$	(1,342	)	$	638	$	(69	)	$	(806	)	$	(1,579	)

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 (g) (millions of dollars, except per share amounts) (unaudited)

	Three Months Ended December 31,						Year Ended December 31,
	2021			2020			2021			2020
Reconciliation of net income (loss) attributable to Valero Energy Corporation stockholders to adjusted net income (loss) attributable to Valero Energy Corporation stockholders
Net income (loss) attributable to Valero Energy Corporation stockholders	$	1,009		$	(359	)	$	930		$	(1,421	)
Adjustments:
Modification of renewable volume obligation (RVO) (c)		(190	)		—			—			—
Income tax expense related to modification of RVO		43			—			—			—
Modification of RVO, net of taxes		(147	)		—			—			—
Changes in estimated useful lives of two ethanol plants		—			—			48			30
Income tax benefit related to the changes in estimated useful lives of two ethanol plants		—			—			(11	)		(6	)
Changes in estimated useful lives of two ethanol plants, net of taxes		—			—			37			24
Gain on sale of MVP interest (d)		—			—			(62	)		—
Income tax expense related to gain on sale of MVP interest		—			—			14			—
Gain on sale of MVP interest, net of taxes		—			—			(48	)		—
Diamond Pipeline asset impairment (d)		—			—			24			—
Income tax benefit related to Diamond Pipeline asset impairment		—			—			(5	)		—
Diamond Pipeline asset impairment, net of taxes		—			—			19			—
Loss on early redemption and retirement of debt (d)		193			—			193			—
Income tax benefit related to loss on early redemption and retirement of debt		(43	)		—			(43	)		—
Loss on early redemption and retirement of debt, net of taxes		150			—			150			—
Income tax expense related to changes in statutory tax rates (e)		—			—			64			—
Last-in, first-out (LIFO) liquidation adjustment (b)		—			(102	)		—			224
Income tax expense (benefit) related to the LIFO liquidation adjustment		—			32			—			(76	)
LIFO liquidation adjustment, net of taxes		—			(70	)		—			148
LCM inventory valuation adjustment		—			—			—			(19	)
Income tax expense related to the LCM inventory valuation adjustment		—			—			—			3
LCM inventory valuation adjustment, net of taxes		—			—			—			(16	)
Total adjustments		3			(70	)		222			156
Adjusted net income (loss) attributable to Valero Energy Corporation stockholders	$	1,012		$	(429	)	$	1,152		$	(1,265	)


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 (g) (millions of dollars, except per share amounts) (unaudited)

	Three Months Ended December 31,						Year Ended December 31,
	2021			2020			2021			2020
Reconciliation of earnings (loss) per common share – assuming dilution to adjusted earnings (loss) per common share – assuming dilution
Earnings (loss) per common share – assuming dilution (f)	$	2.46		$	(0.88	)	$	2.27		$	(3.50	)
Adjustments:
Modification of RVO (c)		(0.36	)		—			—			—
Changes in estimated useful lives of two ethanol plants		—			—			0.09			0.06
Gain on sale of MVP interest (d)		—			—			(0.12	)		—
Diamond Pipeline asset impairment (d)		—			—			0.04			—
Loss on early redemption and retirement of debt (d)		0.37			—			0.37			—
Income tax expense related to changes in statutory tax rates (e)		—			—			0.16			—
LIFO liquidation adjustment (b)		—			(0.18	)		—			0.36
LCM inventory valuation adjustment		—			—			—			(0.04	)
Total adjustments		0.01			(0.18	)		0.54			0.38
Adjusted earnings (loss) per common share – assuming dilution (f)	$	2.47		$	(1.06	)	$	2.81		$	(3.12	)

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 (g) (millions of dollars) (unaudited)

	Three Months Ended December 31,						Year Ended December 31,
	2021			2020			2021		2020
Reconciliation of operating income (loss) by segment to segment margin, and reconciliation of operating income (loss) by segment to adjusted operating income (loss) by segment
Refining segment
Refining operating income (loss)	$	1,270		$	(377	)	$	1,862	$	(1,342	)
Adjustments:
Modification of RVO (c)		(190	)		—			—		—
LIFO liquidation adjustment (b)		—			(104	)		—		222
LCM inventory valuation adjustment		—			—			—		(19	)
Operating expenses (excluding depreciation and amortization expense reflected below) (a)		1,358			1,032			5,088		3,944
Depreciation and amortization expense		543			531			2,169		2,138
Other operating expenses		15			5			83		34
Refining margin	$	2,996		$	1,087		$	9,202	$	4,977

Refining operating income (loss)	$	1,270		$	(377	)	$	1,862	$	(1,342	)
Adjustments:
Modification of RVO (c)		(190	)		—			—		—
LIFO liquidation adjustment (b)		—			(104	)		—		222
LCM inventory valuation adjustment		—			—			—		(19	)
Other operating expenses		15			5			83		34
Adjusted refining operating income (loss)	$	1,095		$	(476	)	$	1,945	$	(1,105	)

Renewable diesel segment
Renewable diesel operating income	$	150		$	127		$	709	$	638
Adjustments:
Operating expenses (excluding depreciation and amortization expense reflected below)		48			22			134		85
Depreciation and amortization expense		23			11			58		44
Other operating expenses		2			—			3		—
Renewable diesel margin	$	223		$	160		$	904	$	767

Renewable diesel operating income	$	150		$	127		$	709	$	638
Adjustment: Other operating expenses		2			—			3		—
Adjusted renewable diesel operating income	$	152		$	127		$	712	$	638

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 (g) (millions of dollars) (unaudited)

	Three Months Ended December 31,						Year Ended December 31,
	2021			2020			2021		2020
Reconciliation of operating income (loss) by segment to segment margin, and reconciliation of operating income (loss) by segment to adjusted operating income (loss) by segment (continued)
Ethanol segment
Ethanol operating income (loss)	$	474		$	15		$	473	$	(69	)
Adjustments:
LIFO liquidation adjustment (b)		—			2			—		2
Operating expenses (excluding depreciation and amortization expense reflected below) (a)		153			113			556		406
Depreciation and amortization expense		20			24			131		121
Other operating expenses		1			—			1		1
Ethanol margin	$	648		$	154		$	1,161	$	461

Ethanol operating income (loss)	$	474		$	15		$	473	$	(69	)
Adjustments:
Changes in estimated useful lives of two ethanol plants		—			—			48		30
LIFO liquidation adjustment (b)		—			2			—		2
Other operating expenses		1			—			1		1
Adjusted ethanol operating income (loss)	$	475		$	17		$	522	$	(36	)

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 (g) (millions of dollars) (unaudited)

	Three Months Ended December 31,						Year Ended December 31,
	2021			2020			2021		2020
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) (j)
U.S. Gulf Coast region
Refining operating income (loss)	$	843		$	(276	)	$	831	$	(979	)
Adjustments:
Modification of RVO (c)		(137	)		—			—		—
LIFO liquidation adjustment (b)		—			(68	)		—		132
Operating expenses (excluding depreciation and amortization expense reflected below) (a)		748			571			3,027		2,220
Depreciation and amortization expense		328			327			1,326		1,317
Other operating expenses		12			—			70		20
Refining margin	$	1,794		$	554		$	5,254	$	2,710

Refining operating income (loss)	$	843		$	(276	)	$	831	$	(979	)
Adjustments:
Modification of RVO (c)		(137	)		—			—		—
LIFO liquidation adjustment (b)		—			(68	)		—		132
Other operating expenses		12			—			70		20
Adjusted refining operating income (loss)	$	718		$	(344	)	$	901	$	(827	)

U.S. Mid-Continent region
Refining operating income (loss)	$	204		$	(61	)	$	528	$	(128	)
Adjustments:
Modification of RVO (c)		(34	)		—			—		—
LIFO liquidation adjustment (b)		—			(18	)		—		40
Operating expenses (excluding depreciation and amortization expense reflected below) (a)		190			163			713		628
Depreciation and amortization expense		82			83			335		333
Other operating expenses		1			1			11		1
Refining margin	$	443		$	168		$	1,587	$	874

Refining operating income (loss)	$	204		$	(61	)	$	528	$	(128	)
Adjustments:
Modification of RVO (c)		(34	)		—			—		—
LIFO liquidation adjustment (b)		—			(18	)		—		40
Other operating expenses		1			1			11		1
Adjusted refining operating income (loss)	$	171		$	(78	)	$	539	$	(87	)

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 (g) (millions of dollars) (unaudited)

	Three Months Ended December 31,						Year Ended December 31,
	2021			2020			2021			2020
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) (j) (continued)
North Atlantic region
Refining operating income	$	265		$	31		$	558		$	115
Adjustments:
LIFO liquidation adjustment (b)		—			(8	)		—			25
LCM inventory valuation adjustment		—			—			—			(19	)
Operating expenses (excluding depreciation and amortization expense reflected below)		195			153			671			536
Depreciation and amortization expense		68			53			247			211
Other operating expenses		1			—			1			8
Refining margin	$	529		$	229		$	1,477		$	876

Refining operating income	$	265		$	31		$	558		$	115
Adjustments:
LIFO liquidation adjustment (b)		—			(8	)		—			25
LCM inventory valuation adjustment		—			—			—			(19	)
Other operating expenses		1			—			1			8
Adjusted refining operating income	$	266		$	23		$	559		$	129

U.S. West Coast region
Refining operating loss	$	(42	)	$	(71	)	$	(55	)	$	(350	)
Adjustments:
Modification of RVO (c)		(19	)		—			—			—
LIFO liquidation adjustment (b)		—			(10	)		—			25
Operating expenses (excluding depreciation and amortization expense reflected below)		225			145			677			560
Depreciation and amortization expense		65			68			261			277
Other operating expenses		1			4			1			5
Refining margin	$	230		$	136		$	884		$	517

Refining operating loss	$	(42	)	$	(71	)	$	(55	)	$	(350	)
Adjustments:
Modification of RVO (c)		(19	)		—			—			—
LIFO liquidation adjustment (b)		—			(10	)		—			25
Other operating expenses		1			4			1			5
Adjusted refining operating loss	$	(60	)	$	(77	)	$	(54	)	$	(320	)

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 December 31,					Year Ended December 31,
	2021		2020			2021		2020
Throughput volumes (thousand barrels per day)
Feedstocks:
Heavy sour crude oil		340		368			338		356
Medium/light sour crude oil		300		317			296		347
Sweet crude oil		1,621		1,258			1,448		1,245
Residuals		241		184			240		202
Other feedstocks		138		82			123		81
Total feedstocks		2,640		2,209			2,445		2,231
Blendstocks and other		393		341			342		324
Total throughput volumes		3,033		2,550			2,787		2,555

Yields (thousand barrels per day)
Gasolines and blendstocks		1,533		1,338			1,403		1,248
Distillates		1,126		886			1,028		928
Other products (i)		403		351			387		397
Total yields		3,062		2,575			2,818		2,573

Operating statistics (a) (g) (j)
Refining margin	$	2,996	$	1,087		$	9,202	$	4,977
Adjusted refining operating income (loss)	$	1,095	$	(476	)	$	1,945	$	(1,105	)
Throughput volumes (thousand barrels per day)		3,033		2,550			2,787		2,555

Refining margin per barrel of throughput	$	10.73	$	4.64		$	9.04	$	5.32
Less:
Operating expenses (excluding depreciation and amortization expense reflected below) per barrel of throughput		4.86		4.40			5.00		4.22
Depreciation and amortization expense per barrel of throughput		1.95		2.27

Valero Energy Reports 2021 Fourth Quarter and Full Year Results