Investor Materials Library

- **Benicia is out**: buried in a slide-34 footnote — the Benicia refinery's processing units were idled in April 2026, leaving Wilmington (85 kbpd crude) as Valero's only California refinery. Portfolio now stands at 14 refineries, 3.0 MMbpd throughput / 2.5 MMbpd crude capacity, 61% concentrated on the Gulf Coast. - **SAF is live at scale**: DGD Port Arthur SAF project (completed 4Q24) can upgrade up to 235M gal/yr — half the plant's renewable diesel output — to SAF for $315M total cost, expected to clear the 25% after-tax IRR hurdle. Total DGD platform: 1.22B gal/yr. - **Renewable diesel is self-funded and best-in-class**: DGD cumulative EBITDA of $3,005M (VLO share) now exceeds cumulative capex of $2,071M. 2025 adjusted EBITDA of $0.59/gal led all RD peers ($0.21 peer average; some peers negative) — though well below the $2+/gal LCFS-era peaks of 2021–22. - **Refining discipline over growth**: no new capacity — capital goes to optimization (St. Charles FCC project, $230M, 2H26 completion, +15 kbpd resid processing and +6 kbpd alkylate) at a 25% IRR hurdle. Lowest cash opex/bbl vs PSX/MPC/DINO/PBF; 2025 was their best-ever year for safety and mechanical availability. - **Cash returned, not reinvested in barrels**: $4.0B returned in 2025 (67% payout), share count down 46% since 2012, dividend at $4.80 annualized for 2026, ~$1.4B sustaining capex. - **Export lean**: >1.5 MMbpd ratable wholesale supply (>50% of light products), 349 kbpd exports in 2025, with Latin America taking 75% of US product exports as regional refining runs decline. **Signal for fuels markets**: America's largest independent refiner is shrinking West Coast supply, capping domestic capacity growth in favor of buybacks, and steering its renewables platform toward mandated SAF markets — a structurally tightening posture for US refined product supply, especially California gasoline and diesel/jet.