2025 Valero Report on Guiding Principles - Flipbook - Page 74
Non-GAAP Disclosures
Capital Investments Attributable to Valero
Reconciliation of Capital Investments to
Capital Investments Attributable to Valero (in
millions)
Valero de昀椀nes capital investments attributable to Valero as
all capital expenditures, deferred turnaround and catalyst
cost expenditures, and investments in non-consolidated joint
ventures presented in Valero's consolidated statements of
cash 昀氀ows excluding the portion of DGD’s capital investments
attributable to the other joint venture member and all of the
capital expenditures of other variable interest entities (VIEs).
Capital investments attributable to Valero are allocated
between sustaining capital investments attributable to Valero
and growth capital investments attributable to Valero.
Year ended
December 31,
2024
$ 649
Capital expenditures (excluding VIEs)
Capital expenditures of VIEs:
250
DGD
8
Other VIEs
DGD’s members use DGD’s operating cash 昀氀ow (excluding
changes in its current assets and current liabilities) to fund its
capital investments rather than distribute all of that cash to
themselves. Because DGD’s operating cash 昀氀ow is effectively
attributable to each member, only 50% of DGD’s capital
investments should be attributed to Valero's net share of capital
investments. Valero also excludes the capital expenditures of
other consolidated VIEs because Valero does not operate those
VIEs. Valero believes that capital investments attributable to
Valero is an important measure because it more accurately
re昀氀ects capital investments of Valero.
Deferred turnaround and catalyst cost expenditures
(excluding VIEs)
1,079
Deferred turnaround and catalyst cost expenditures
of DGD
71
2,057
Total capital investments
Adjustments:
DGD's capital investments attributable to the other
joint venture member
(161)
Capital expenditures of other VIEs
(8)
$ 1,888
Capital investments attributable to Valero
Free Cash Flow
Valero de昀椀nes free cash 昀氀ow as net cash provided by operating activities less capital expenditures of Valero and DGD, deferred
turnaround and catalyst cost expenditures, investments in joint ventures, and changes in current assets and liabilities. Valero
believes that the presentation of free cash 昀氀ow provides useful information to investors in assessing Valero’s ability to cover
ongoing costs and to generate cash returns to stockholders. The GAAP measures most directly comparable to free cash 昀氀ow are
net cash provided by operating activities and net cash used in investing activities.
Reconciliation of Net Cash Provided by Operating Activities under GAAP to Free Cash Flow (in millions)
Year ended December 31,
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
$5,270
$5,564
$4,241
$5,611
$4,820
$5,482
$4,371
$5,531
$948
$5,859
$12,574
$9,229
$6,683
Less: Capital expenditures of
Valero and DGD
2,931
2,121
2,153
1,618
1,278
1,353
1,628
1,769
1,537
1,555
1,641
900
899
Less: Deferred turnaround and
catalyst cost expenditures
479
634
649
673
718
523
915
780
648
793
1,056
1,005
1,150
Less: Investments in joint
ventures
57
76
14
141
4
406
181
164
54
9
1
-
-
Less: Changes in current assets
and current liabilities
(302)
922
(1,810)
(1,306)
976
1,289
(1,297)
294
(345)
2,225
(1,626)
(2,326)
795
Free cash 昀氀ow
$2,105
$1,811
$3,235
$4,485
$1,844
$1,911
$2,944
$2,524
($ 946)
$1,277
$11,502
$9,650
$3,839
Net cash provided by operating
activities
Total free cash 昀氀ow, 2012-2024
Number of years
Average free cash 昀氀ow, 2012-2024
74
$46,181
13
$ 3,552
