Valero Energy (VLO) 10-K 2006 FY Annual report

Exhibit 12.01

VALERO ENERGY CORPORATION AND SUBSIDIARIES

STATEMENTS OF COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED

CHARGES AND RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED

STOCK DIVIDENDS

(Millions of Dollars)

	Year Ended December 31,
	2006			2005			2004			2003			2002
Ratio of Earnings to Fixed Charges:
Earnings:
Income from continuing operations before income tax expense, minority interest in net income of consolidated subsidiaries, distributions on preferred securities of subsidiary trusts and income from equity investees	$	8,163		$	5,206		$	2,726		$	981		$	191
Add:
Fixed charges		570			475			410			396			409
Amortization of capitalized interest		9			8			7			6			6
Distributions from equity investees		47			50			42			26			5
Less:
Interest capitalized		(168	)		(68	)		(37	)		(26	)		(16	)
Distributions on preferred securities of subsidiary trusts		—			—			—			(17	)		(30	)
Minority interest in net income of Valero L.P.		—			—			—			(2	)		(14	)
Total earnings	$	8,621		$	5,671		$	3,148		$	1,364		$	551
Fixed charges:
Interest expense, net	$	210		$	266		$	260		$	261		$	286
Interest capitalized		168			68			37			26			16
Rental expense interest factor (1)		192			141			113			92			77
Distributions on preferred securities of subsidiary trusts		—			—			—			17			30
Total fixed charges	$	570		$	475		$	410		$	396		$	409
Ratio of earnings to fixed charges		15.1	x		11.9	x		7.7	x		3.4	x		1.3	x
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends:
Total earnings	$	8,621		$	5,671		$	3,148		$	1,364		$	551
Total fixed charges	$	570		$	475		$	410		$	396		$	409
Preferred stock dividends		3			20			19			7			—
Total fixed charges and preferred stock dividends	$	573		$	495		$	429		$	403		$	409
Ratio of earnings to fixed charges and preferred stock dividends		15.0	x		11.5	x		7.3	x		3.4	x		1.3	x

(1) The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense.