2026 Valero Report on Guiding Principles - Report - Page 57
Introduction
Safety
Environment
Employees
Community
Governance
Appendix
Cautionary Statements Regarding Forward-Looking Statements
This report contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange
Act, including, but not limited to, statements about Policies and Procedures. You can identify forward-looking statements by words such
as “should,” “strive,” “pursue,” “intend,” “anticipate,” “forecast,” “on track,” “would,” “continue,” “poised,” “focused,” “opportunity,” “scheduled,”
“believe,” “estimate,” “expect,” “seek,” “could,” “may,” “potential,” “committed,” “advancing,” “developing,” “evaluating,” “target,” “goal,”
“ambition,” “aspiration,” “plan,” “aimed,” “considering” or other similar expressions that convey the uncertainty of future events or outcomes.
Forward-looking statements in this report include those relating to Valero’s publicly disclosed GHG emissions reduction/displacement
targets, statements relating to Valero’s low-carbon fuels strategy, current or future low-carbon projects, expected timing of completion, cost
and performance of projects, future market, regulatory and industry conditions, future and potential low-carbon fuel policies, standards and
programs, future operating and 昀椀nancial performance, expected timing or issuance of future reports and other disclosures, future production
and manufacturing ability and size, our plans, actions, assets and operations in California and management of future risks, among other
matters. It is important to note that actual results could differ materially from those expressed, suggested or forecasted in any such forwardlooking statements based on numerous factors, including those outside of Valero’s control, such as legislative or political changes or
developments, market dynamics, cyberattacks, weather events, and other matters affecting Valero’s operations, 昀椀nancial performance or
the demand for Valero’s products. These factors also include, but are not limited to, the uncertainties that remain with respect to current or
contemplated legal, political or regulatory developments that are adverse to or restrict re昀椀ning and marketing operations, or that impose
taxes or penalties on pro昀椀ts, windfalls or margins, or that require certain disclosures, global geopolitical and other con昀氀icts and tensions, the
impact of in昀氀ation on margins and costs, economic activity levels, tariffs, duties or trade restrictions and the adverse effects the foregoing
may have on Valero’s business plan, strategy, operations and 昀椀nancial performance. Valero based these forward-looking statements on
its current expectations, estimates and projections about the company, current and potential counterparties, Valero’s industry, the legal,
political and regularly environment and the global economy and 昀椀nancial markets generally. Valero cautions that these statements are not
guarantees of future performance or results and involve known and unknown risks and uncertainties, the ultimate outcomes of which Valero
cannot predict with certainty. In addition, many of these forward-looking statements were based on assumptions about future events, the
ultimate outcomes of which Valero cannot predict with certainty and which may prove to be inaccurate. Although Valero believes that the
assumptions were reasonable when made, because assumptions are inherently subject to signi昀椀cant uncertainties and contingencies,
which are dif昀椀cult or impossible to predict and are beyond its control, Valero cannot give assurance that it will achieve or accomplish its
expectations, beliefs or intentions, or that any forward-looking statements will ultimately prove to be accurate. When considering these
forward-looking statements, you should also consider the risk factors and other cautionary statements contained in Valero’s annual report
on Form 10-K, quarterly reports on Form 10-Q and other reports 昀椀led with the SEC and available on Valero’s website at www.valero.com.
These risks could cause actual performance, results, actions and Policies and Procedures of Valero to differ materially from those expressed,
suggested or forecasted in any forward-looking statement. Such forward-looking statements speak only as of the date of this report and we
do not intend to update these statements unless we are required by applicable securities laws to do so. Results or metrics in this report as
of any date, or for any period, ending on or prior to the date of this report are not necessarily indicative of the results that may be expected
as of any date, or for any period, ending after the date of this report. Neither the future distribution of this report or the information included
or referenced herein, nor the continued availability thereof in archive form on our website, should be deemed to constitute an update or
reaf昀椀rmation of these 昀椀gures or statements as of any future date.
Non-GAAP Disclosures
Capital Investments Attributable to Valero
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. 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.
Reconciliation of Capital Investments to
Capital Investments Attributable to Valero (in
millions)
Capital expenditures (excluding VIEs)
Year ended
December 31,
2025
$ 719
Capital expenditures of VIEs:
DGD
71
Other VIEs
6
Deferred turnaround and catalyst cost expenditures
(excluding VIEs)
990
Deferred turnaround and catalyst cost expenditures
of DGD
99
Investments in nonconsolidated joint ventures
3
Total capital investments
1,888
Adjustments:
DGD's capital investments attributable to the other
joint venture member
(85)
Capital expenditures of other VIEs
(6)
Capital investments attributable to Valero
$ 1,797
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