VALERO ENERGY CORP/TX (VLO)

Valero Energy Corporation is a Fortune 500, San Antonio, Texas-based multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, incorporated in Delaware in 1981 and trading on the NYSE under "VLO." The company operates through three reportable segments: Refining, Renewable Diesel, and Ethanol. Its Refining segment owns and operates 15 petroleum refineries located across the U.S. (California, Louisiana, Oklahoma, Tennessee, Texas), Canada (Quebec), and the U.K. (Wales), with a combined feedstock throughput capacity of approximately 3.2 million barrels per day, producing gasoline, diesel, jet fuel, asphalt, aromatics, heating oil, and other refined products from sweet, sour, and heavy crude oils; refineries receive feedstocks via pipelines, marine docks, rail, and barge, and distribute products through pipelines (including Colonial and Explorer), ships, barges, rail, and trucks. The Renewable Diesel segment operates through DGD, a consolidated joint venture with Darling Ingredients Inc., which owns two renewable diesel plants in the U.S. Gulf Coast with combined production capacity of approximately 1.2 billion gallons per year of renewable diesel and about 50 million gallons per year of renewable naphtha, with a large-scale sustainable aviation fuel (SAF) project under construction at the Port Arthur plant expected to complete in early 2025.

The Ethanol segment operates 12 ethanol plants in the U.S. Mid-Continent region (Iowa, Minnesota, Nebraska, South Dakota) with combined production capacity of approximately 1.6 billion gallons per year, producing ethanol and co-products. Valero sells refined petroleum products, renewable diesel, renewable naphtha, and ethanol in wholesale rack and bulk markets to wholesalers, distributors, retailers, and truck-delivered end users primarily in the U.S., Canada, the U.K., Ireland, and Latin America, with products sold through both unbranded channels and branded sites operating under the Valero family of brands in the U.S., Canada, the U.K., Ireland, and Mexico. The company's strategy centers on leveraging its refining expertise and marketing/distribution platform to expand low-carbon fuel businesses, positioning itself as the world's largest producer of low-carbon transportation fuels, while navigating regulatory programs such as the U.S. EPA Renewable Fuel Standard, California's Low Carbon Fuel Standard, and Canada's Clean Fuel Regulations, as well as pursuing federal tax incentives and low-carbon projects including carbon capture and sequestration initiatives at its ethanol plants.