Valero 2Q13 Earnings Call Notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“Our second quarter 2013 refining throughput margin of $9.26 per barrel was over $1 per barrel lower versus the second quarter 2012 margin of $10.63 per barrel. The decrease was partly due to significantly lower discounts per heavy sour crude oil.”

“Production averaged 3.5 million gallons per day in the second quarter of 2013 for an increase of 156,000 gallons per day compared to the second quarter of 2012. The increase in production volumes was mainly due to the economic incentive of higher gross margins per gallon.”

“we are evaluating the formation of a master limited partnership for our logistic assets.”

“So [I’m] getting to be an old guy and I look at what management does, and I think part of management’s job is to take our cash flow and look at our alternatives. Do we have projects that will give our shareholders value, growth, over the long-term, and if we do and we look at our stock and how we think our stock is priced, but if we do have these, then we should presume for our shareholder, and if we don’t, we return cash.”

“what we have seen with WTI coming in so tight [to brent]…we expect that discount will open up again…we expect WTI discount to go back out to $7”

“cellulosic is not available. That is not on the EPA’s website, everyone says there is going to be a little cellulosic production this year, but it’s totally uneconomic as well. I think it was clearly, let’s pass the law and they will come, and it hasn’t happened.”

“And then on top of all of this, gasoline demand has not continued to grow. It’s actually down and now flat. So the whole thing is screwed up and that’s why, I said the other day it needs to be redone.”

“the realty, this is very unfair in the street, because you have winners and losers at retail and clearly in the refining segment, this is hurting the independent refiner, it is not hurting the majors.”

“Back couple of years ago, we made a decision. We weren’t going to buy any refineries, because we thought they were too high priced”

“I know it takes you guys a second to update your model, but it actually take years to get permit and construction and do all these things and to spend the money.”

“I am of the belief that United States can have a huge manufacturing and petrochemical resurgence here, our government will figure out how to get behind. But we’ve looked at the Gulf Coast plans, there are in the sense of our crown jewel assets. They give you access to the water, because some products would be exported”