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Valero Energy Corporation
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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 more than 3 million barrels per day, refining conventional and premium gasoline, diesel, low-cost diesel, ultra-low-sulfur diesel and other refined petroleum products.. It operates 15 refineries in the US, Canada, and the UK. It also has about 15 ethanol plants with a combined production capacity of about 1.7 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. The US accounts for 70% of sales.

Operations

Valero operates in three reportable segments: Refining, Ethanol, and Renewable Diesel.

Refining accounts for approximately 95% of Valero's total sales. It produces gasoline and blendstock, distillates, and other products. The Ethanol segment consists of sales of internally produced ethanol and distillers grains. Renewable Diesel includes the operations of DGD. The principal product manufactured by DGD and sold by this segment is renewable diesel. Ethanol and Renewable Diesel account for about 5% of sales combined.

Geographic Reach

Texas-based 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; the UK and Ireland nearly 15%; Canada more than 5%; and other countries around 10%.

Iowa is home to five of Valero's 15 refineries, accounting for nearly 40% of refining capacity.

Sales and Marketing

Valero markets branded and unbranded refined products on a wholesale basis through an extensive bulk and rack marketing network. Valero sells refined products through 5,200 branded sites in the US, about 900 branded sites in the UK and Ireland, and roughly 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.

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, Ireland, and Latin America.

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

Financial Performance

Valero's sales took a battering from the oil price crash, as have many of its peers. The company's revenue has been continuously increasing over the past few years since its 14% decrease in 2016 compared to $87.8 billion in 2015. Between 2015 and 2019, the company's revenue increased by 23%.

The company's revenue decreased by about 7% in 2019 to $108.3 million compared to $117.0 million in 2018. The decrease was primarily due to the decrease in refined petroleum product prices associated with sales made by the company's refining segment. This decline in revenues was partially offset by lower cost of sales primarily due to the decrease in crude oil and other feedstock costs and a decrease in general and administrative expenses (excluding depreciation and amortization expense), resulting in a decrease in operating income in 2019 compared to 2018.

Net income in 2019 fell 22% to $2.4 billion compared to $3.1 billion in 2018. This decrease in net income was primarily due to a decrease in operating income and a decrease in income tax expense.

Valero's cash on hand fell 13% billion during 2019, ending the year at $2.6 billion. The company's operating activities provided $5.5 billion while investing activities used $3.0 billion. Financing activities used $3.0 billion. Valero's main cash used in 2019 were for capital expenditure, repayments of debt and finance lease, and common stock dividends.

Strategy

With the oil and gas environment stabilizing, Valero is taking the chance to regroup and reward its patient shareholders. In 2019 in brought Valero Energy Partners LP, its former midstream (logistics and transportation) arm, back into the fold for $950 million. 

Projects coming online in the near-term include an alkylation unit in Houston, pipelines and terminals in central Texas, an alkylation unit in St Charles, a cogeneration unit in Pembroke, UK, further work at the Diamond Green Diesel renewable diesel plant.

A wholly-owned subsidiary of the company signed long-term agreements for the use of three new refined product terminals located in Guadalajara, Monterrey, and Altamira, Mexico. These terminals will support Valero's strategy to expand its product supply chain into high growth markets and are expected to start operations in 2021.

Reflecting on the increasing importance of renewable fuels, Valero created a new reportable segment in 2019, Renewable Diesel. The segment includes its Diamond Green Diesel plant, a JV with Darling Ingredients.

Valero Energy and Darling Ingredients are initiating an advanced engineering and development cost review for a new plant in Port Arthur, Texas, by addressing the growing demand for renewable diesel in global, low-carbon markets. The proposed facility under review would be designed to produce 400 million gallons of renewable diesel annually as well as 40 million gallons of renewable naphtha, which will be own and operated by DGD, the 50/50 joint venture between Valero and Darling.

Mergers and Acquisitions

In 2019, Valero acquired Valero Energy Partners LP, it's former midstream business spun off in 2013. Valero Energy Partners owns, operates, develops and acquires pipelines, terminals, and other transportation and logistics assets. The acquisition follows similar moves by rival companies to bring their midstream partners in-house. Upon completion of the Merger Transaction, each outstanding publicly held common unit was converted into the right to receive $42.25 per common unit in cash without any interest thereon, and all such publicly traded common units were automatically canceled and ceased to exist. The company paid aggregate merger consideration of $950 million, which was funded with available cash on hand.

Company Background

Valero Energy was incorporated in Delaware in 1981 under the name Valero Refining and Marketing Company. The company changed its name to Valero Energy Corporation in 1997. Its common stock trades on the New York Stock Exchange under the trading symbol "VLO".

Valero Energy Corporation

1 Valero Way
San Antonio, TX 78249-1616
Phone: 1 (210) 345-2000

Firm 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): 10,222

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