Skip to Main Content
Valero Energy Corporation logo

Valero Energy Corporation
Related Internships: 
Valero Energy Corporation Internship

 Save

2019 Vault Rankings

At a Glance

Uppers

Valero offers good benefits, especially at corporate headquarters.

Many employees have flexible work schedules.

Downers

Not a lot of diversity.

Employees feel forced to give to the United Way and to volunteer.

The Bottom Line

Many employees say the pros outweigh the cons, but some worry about working at an oil company that stresses refining over integrated services.

About Valero Energy Corporation

Valero Energy was not only named after a mission (the Mission San Antonio de Valero), it is on a mission to be the largest independent refiner in the US. Valero churns out about 3 million barrels per day, refining low-cost residual oil and heavy crude into cleaner-burning, higher-margin products, including low-sulfur diesels. It operates 15 refineries in the US, Canada, and the UK. It also has 11 ethanol plants with a combined production capacity of about 1.4 billion gallons per year. Once a more diversified company, Valero has exited the retail business in order to focus on its oil refining and ethanol operations.

Operations

Valero operates in three reportable segments: Refining, Ethanol and VLP. Refining accounts for almost 80% of sales. The Ethanol segment consists of sales of internally produced ethanol and distillers grains in the US. VLP provides transportation and terminaling services to the refining segment. Each of these two segments bring in around 5% of total sales.

Geographic Reach

Valero has refining and wholesale operations in Canada, Ireland, the UK, and the US. The US accounts for around 70% of the company's total revenue; Canada nearly 10%; the UK and Ireland nearly 15%; and other countries around 10%.

Sales and Marketing

The company markets branded and unbranded refined products on a wholesale basis through an extensive bulk and rack marketing network. Valero sells refined products through 5,700 branded sites in the US, 900 branded sites in the UK and Ireland, and 800 branded sites in Canada. The company sells ethanol to large customers (primarily refiners and gasoline blenders) under term and spot contracts, and in bulk markets such as New York, Chicago, the US Gulf Coast, Florida, and the US West Coast.

Valero markets branded and unbranded refined products on a wholesale basis through an extensive rack marketing network. The principal purchasers of refined products from terminal truck racks are wholesalers, distributors, retailers, and truck-delivered end users throughout the US, Canada, the UK, and Ireland.

The company delivers its product via tanker, pipeline, trucks, and rail cars.

Financial Performance

Valero's sales have taken a battering from the oil price crash, as have many of its peers. From a peak revenue of $138 billion in 2012, it reduced to $76 billion in 2016, before recovering some ground due to rising oil prices the following year. Net income, however, has almost doubled in the same time period from $2 billion in 2012.

Revenue increased 25% in 2017 to $94 billion, mostly due to a $942 million revenue increase year-over-year, due to higher margins on refined petroleum products and higher throughput volumes. The new VLP segment revenue increased by $74 million as well, stemming from incremental revenues generated from transportation and terminaling services.

Net income increased some 80%, from $2.3 billion in 2016 to $4 billion in 2017, the highest profits in a decade. This increase is primarily due to a $1.9 billion income tax benefit in 2017.

Cash holdings at Valero increased from $4.8 billion to $5.9 billion. Operations contributed $5.5 billion. Investment used some $2.4 billion, mostly in CAPEX ($1.4 billion); financing activities utilized a further $2.3 billion, majority of it for repurchase of stocks.

Strategy

Valero is pursuing a long-term strategy of ramping up its profitable businesses in the US while selling about a third of its high-cost North American refineries and other non-core US assets, in order to explore more cost-efficient projects elsewhere in the US and in faster-growing markets in Europe, the Middle East, and Asia. The company ventured into the retail fuel distribution market in Mexico in 2017, constructing three storage and distribution facilities in the country in a $200 million investment. The facilities will have total capacity of around 1.7 million barrels. It plans to construct further storage facilities across Mexico in the coming years.

Ethanol segment is a significant contributor to the company's revenue stream. In 2018, legislation was passed authorizing the extension of the $1 per gallon biodiesel blender's tax credit for biodiesel volumes, which will benefit Valero's refining segment (more than $150 million per quarter in 2018). Hedging its bets, Valero has also moved into the alternative fuel business more holistically. Given that ethanol is a requirement in many of the gasoline fuel mixes it sells, the company decided that it could cut costs by owning ethanol plants, rather than buying ethanol wholesale.

In 2016-17 period, the company spent $4 billion in capital investments, including capital expenditures, deferred turnaround and catalyst costs, and joint venture investments. This consists of $1.6 billion for stay-in-business capital and $1 billion for growth strategies, including its continued investment in Diamond Pipeline.

One area of concern is Valero's track record of running afoul with environmental legislation, for which the company expects to spend close to $ 300 million in 2018. In the November 2016, its Meraux refinery was fined by EPA. Two months earlier, the Quebec Refinery was slapped with $100,000 for violating Canadian Fisheries Act and Benicia Refinery was fined by San Francisco for $200,000. Its McKee Refinery and Ardmore Refinery cost a further $850 million combined.

Mergers and Acquisitions

In 2016 Valero acquired Parkway Pipeline from Kinder Morgan. The acquisition enhances the company's ability to grow and optimize its product supply to the eastern United States.

Valero Energy Corporation

1 VALERO WAY
San Antonio, TX 78249-1616
Phone: 1 (210) 345-2000

Stats

Employer Type: Publicly Owned
Stock Symbol: VLO
Stock Exchange: , NYSE
EVP and CFO: Michael S. Ciskowski
Chairman, President, and CEO: Joseph W. Gorder
VP and CIO: Cheryl Thomas
Employees (This Location): 550
Employees (All Locations): 10,261

Major Office Locations

San Antonio, TX

Other Locations

Mobile, AL
Clarksville, AR
Apache Junction, AZ
Chandler, AZ
Gilbert, AZ
Laveen, AZ
Mesa, AZ
Peoria, AZ
Phoenix, AZ
Surprise, AZ
Tempe, AZ
Tucson, AZ
Antioch, CA
Apple Valley, CA
Bell, CA
Benicia, CA
Brentwood, CA
Carpinteria, CA
Castroville, CA
Chico, CA
Chula Vista, CA
Clearlake, CA
Dixon, CA
El Cajon, CA
Fort Bragg, CA
Fresno, CA
Garden Grove, CA
Gilroy, CA
Half Moon Bay, CA
Hanford, CA
Livermore, CA
Lodi, CA
Lompoc, CA
Loomis, CA
Los Banos, CA
Madera, CA
Mendota, CA
Merced, CA
Monterey, CA
Moss Landing, CA
Napa, CA
North Highlands, CA
Orange, CA
Orland, CA
Pacheco, CA
Palmdale, CA
Palo Alto, CA
Petaluma, CA
Pittsburg, CA
Placerville, CA
Pleasant Hill, CA
Sacramento, CA
Salinas, CA
San Jose, CA
San Lorenzo, CA
San Marcos, CA
San Martin, CA
Santa Cruz, CA
Santa Rosa, CA
Selma, CA
Spring Valley, CA
Sunnyvale, CA
Tracy, CA
Van Nuys, CA
Ventura, CA
Visalia, CA
Walnut Creek, CA
Watsonville, CA
Wilmington, CA
Arvada, CO
Aurora, CO
Bennett, CO
Boulder, CO
Brighton, CO
Broomfield, CO
Castle Rock, CO
Centennial, CO
Colorado City, CO
Colorado Springs, CO
Commerce City, CO
Denver, CO
Englewood, CO
Fort Collins, CO
Fountain, CO
Georgetown, CO
Glenwood Springs, CO
Golden, CO
Grand Junction, CO
Greeley, CO
Greenwood Village, CO
Highlands Ranch, CO
Lakewood, CO
La Salle, CO
Leadville, CO
Littleton, CO
Longmont, CO
Louisville, CO
Loveland, CO
Lyons, CO
Morrison, CO
Parker, CO
Peyton, CO
Pueblo, CO
Thornton, CO
Westminster, CO
Wheat Ridge, CO
Woodland Park, CO
Holiday, FL
Fort Dodge, IA
Hartley, IA
Mount Vernon, IN
Wichita, KS
Lexington, KY
Louisville, KY
Bossier City, LA
Chalmette, LA
Crowley, LA
Dequincy, LA
Franklin, LA
Houma, LA
Lafayette, LA
Lake Charles, LA
Norco, LA
Opelousas, LA
Saint James, LA
Shreveport, LA
Vinton, LA
Grayling, MI
Welcome, MN
Kansas City, MO
Saint Joseph, MO
Albion, NE
Lancaster, NH
Paulsboro, NJ
Alamogordo, NM
Albuquerque, NM
Aztec, NM
Chaparral, NM
Deming, NM
Las Cruces, NM
Tularosa, NM
Queensbury, NY
Ada, OK
Ardmore, OK
Broken Bow, OK
Newcastle, OK
Okemah, OK
Oklahoma City, OK
Memphis, TN
Nashville, TN
Abernathy, TX
Alba, TX
Amarillo, TX
Aransas Pass, TX
Arlington, TX
Austin, TX
Azle, TX
Bacliff, TX
Baytown, TX
Beaumont, TX
Beeville, TX
Bellmead, TX
Belton, TX
Benbrook, TX
Brownsville, TX
Bryan, TX
Burleson, TX
Canton, TX
Carrollton, TX
Cedar Park, TX
Channelview, TX
Cleburne, TX
Cleveland, TX
Clyde, TX
College Station, TX
Conroe, TX
Converse, TX
Copperas Cove, TX
Corpus Christi, TX
Cypress, TX
Dallas, TX
Daly City, TX
Damon, TX
Dayton, TX
Deer Park, TX
El Paso, TX
Ennis, TX
Euless, TX
Falfurrias, TX
Flatonia, TX
Flower Mound, TX
Fort Worth, TX
Freeport, TX
Freer, TX
Friendswood, TX
Galveston, TX
Garland, TX
Georgetown, TX
George West, TX
Granbury, TX
Grand Prairie, TX
Granger, TX
Grapevine, TX
Groves, TX
Haltom City, TX
Helotes, TX
Hewitt, TX
Hillsboro, TX
Houston, TX
Huntsville, TX
Ingleside, TX
Irving, TX
Joshua, TX
Karnes City, TX
Katy, TX
Kenedy, TX
Kerrville, TX
Killeen, TX
Kingsville, TX
Kingwood, TX
Lake Jackson, TX
Lancaster, TX
Lane City, TX
La Porte, TX
Laredo, TX
League City, TX
Leander, TX
Lewisville, TX
Lockhart, TX
Los Fresnos, TX
Lubbock, TX
Luling, TX
Lumberton, TX
Matagorda, TX
Mcallen, TX
Mesquite, TX
Mission, TX
Missouri City, TX
New Braunfels, TX
New Caney, TX
New Waverly, TX
Nolanville, TX
North Richland Hills, TX
Orange, TX
Pasadena, TX
Pearsall, TX
Perryton, TX
Pflugerville, TX
Pharr, TX
Plano, TX
Port Arthur, TX
Portland, TX
Quinlan, TX
Refugio, TX
Richmond, TX
Richwood, TX
Riverside, TX
Roans Prairie, TX
Robinson, TX
Robstown, TX
Rockport, TX
Rocksprings, TX
Rosenberg, TX
Round Rock, TX
Rowlett, TX
San Antonio, TX
San Benito, TX
San Diego, TX
Santa Fe, TX
Schertz, TX
Seabrook, TX
South Houston, TX
Spring, TX
Stafford, TX
Sunray, TX
Sweeny, TX
Temple, TX
Terrell, TX
Texas City, TX
The Colony, TX
Three Rivers, TX
Tomball, TX
Universal City, TX
Uvalde, TX
Waco, TX
Waxahachie, TX
Wichita Falls, TX
Wimberley, TX
Burlington, VT
Manchester Center, VT
Delavan, WI
Jefferson, WI
Sun Prairie, WI
Laramie, WY
Alma, Canada
Almonte, Canada
Anjou, Canada
Arnprior, Canada
Asbestos, Canada
Baie-Comeau, Canada
Bairdsville, Canada
Barrie, Canada
Bathurst, Canada
Bay Roberts, Canada
Beaupré, Canada
Beaverton, Canada
Bedford, Canada
Belleville, Canada
Black Duck Cove, Canada
Blainville, Canada
Boisbriand, Canada
Bois-Des-Filion, Canada
Bracebridge, Canada
Brockville, Canada
Bromont, Canada
Brossard, Canada
Brownsburg-Chatham, Canada
Campbellton, Canada
Candiac, Canada
Cayuga, Canada
Charlemagne, Canada
Charlottetown, Canada
Chicoutimi, Canada
Châteauguay, Canada
Cobourg, Canada
Conception Bay South, Canada
Cookstown, Canada
Corner Brook, Canada
Cornwall, Canada
Côte Saint-Luc, Canada
Dartmouth, Canada
Deep River, Canada
Deer Lake, Canada
Deschambault, Canada
Dieppe, Canada
Dolbeau-Mistassini, Canada
Dollard-Des-Ormeaux, Canada
Drummondville, Canada
Eastern Passage, Canada
Englehart, Canada
English Harbour West, Canada
Fabreville, Canada
Fredericton, Canada
Gananoque, Canada
Gander, Canada
Gaspé, Canada
Gatineau, Canada
Glace Bay, Canada
Granby, Canada
Grand Falls-Windsor, Canada
Gravenhurst, Canada
Greenwood, Canada
Halifax, Canada
Hamilton, Canada
Happy Valley-Goose Bay, Canada
Hebbville, Canada
Holyrood, Canada
Hornby, Canada
Joliette, Canada
Kanata, Canada
Kentville, Canada
Kingston, Canada
Kirkland, Canada
Labrador City, Canada
Lachine, Canada
Lakefield, Canada
L'Ancienne-Lorette, Canada
L'Ange Gardien, Canada
L'Anse Au Loup, Canada
La Pocatière, Canada
Lasalle, Canada
Les Hauteurs, Canada
L'Île-Perrot, Canada
Longueuil, Canada
Lower Sackville, Canada
Lévis, Canada
Mactaquac, Canada
Mascouche, Canada
Miramichi, Canada
Mississauga, Canada
Moncton, Canada
Mont-Joli, Canada
Mont-Laurier, Canada
Montréal, Canada
Montreal-Est, Canada
Montreal-Nord, Canada
Mont-Royal, Canada
Mont-Saint-Hilaire, Canada
Mont-Tremblant, Canada
Mount Albert, Canada
Mount Pearl, Canada
Nepean, Canada
New Minas, Canada
North York, Canada
Orangeville, Canada
Orillia, Canada
Ottawa, Canada
Peterborough, Canada
Pickering, Canada
Pictou, Canada
Pointe-Aux-Trembles, Canada
Pointe-Claire, Canada
Pont-Rouge, Canada
Port-Cartier, Canada
Port Elgin, Canada
Porters Lake, Canada
Port Hawkesbury, Canada
Port Perry, Canada
Prescott, Canada
Québec, Canada
Repentigny, Canada
River Glade, Canada
Riverview, Canada
Riviere-Verte, Canada
Sackville, Canada
Saint-Alphonse-De-Granby, Canada
Saint-Anselme, Canada
Saint-Bruno, Canada
Saint-Constant, Canada
Saint-Damien-De-Buckland, Canada
Sainte-Agathe-Des-Monts, Canada
Sainte-Anne-Des-Plaines, Canada
Sainte-Dorothée, Canada
Sainte-Hélène-De-Bagot, Canada
Sainte-Julie, Canada
Sainte-Marthe-Sur-Le-Lac, Canada
Sainte-Sophie, Canada
Saint-Eustache, Canada
Saint-Georges, Canada
Saint-Hubert, Canada
Saint-Hyacinthe, Canada
Saint-Jean-Sur-Richelieu, Canada
Saint-Jérôme, Canada
Saint-Lambert, Canada
Saint-Laurent, Canada
Saint-Lazare, Canada
Saint-Leonard, Canada
Saint-Raymond, Canada
Saint-Étienne-Des-Grès, Canada
Salaberry-De-Valleyfield, Canada
Salisbury, Canada
Sherbrooke, Canada
South River, Canada
Stewiacke, Canada
St. John'S, Canada
Stouffville, Canada
St Thomas, Canada
Summerside, Canada
Sussex, Canada
Sutton West, Canada
Sydney, Canada
Terrebonne, Canada
Thetford Mines, Canada
Thornbury, Canada
Timberlea, Canada
Toronto, Canada
Trois-Rivières, Canada
Truro, Canada
Val-D'Or, Canada
Vanier, Canada
Vars, Canada
Vaudreuil-Dorion, Canada
Victoriaville, Canada
Wesleyville, Canada
Whitby, Canada
Woodstock, Canada