Valero Energy (VLO) 8-K Regulation FD Disclosure

Investor Presentation

September 2015

Exhibit 99.01

2

Safe Harbor Statement

Statements

contained

in

this

presentation

that

state

the

company’s

or

management’s

expectations

or

predictions

of

the

future

are

forward–looking

statements

intended

to

be

covered

by

the

safe

harbor

provisions

of

the

Securities

Act

of

1933

and

the

Securities

Exchange

Act

of

1934.

The

words

“believe,”

“expect,”

“should,”

“estimates,”

“intend,”

and

other

similar

expressions

identify

forward–looking

statements.

It

is

important

to

note

that

actual

results

could

differ

materially

from

those

projected

in

such

forward–

looking

statements.

For

more

information

concerning

factors

that

could

cause

actual

results

to

differ

from

those

expressed

or

forecasted,

see

Valero’s

annual

reports

on

Form

10-K

and

quarterly

reports

on

Form

10-Q,

filed

with

the

Securities

and

Exchange

Commission,

and

available

on

Valero’s

website

at

www.valero.com.

3

Who We Are

World’s Largest

Independent Refiner

•

15 refineries, 2.9

million barrels per day

(BPD) of high-

complexity throughput

capacity

•

Greater than 70% of

refining capacity

located in U.S. Gulf

Coast and Mid-

Continent

•

Approximately 10,000

employees

Operator of

Liquids-Focused

Logistics Assets

•

General partner and

majority owner of

Valero Energy

Partners LP (NYSE:

VLP), a fee-based

master limited

partnership (MLP)

•

Significant inventory of

logistics assets within

Valero

Wholesale Fuels

Marketer

•

Approximately 7,400

marketing sites in

U.S., Canada, United

Kingdom and Ireland

•

Brands include Valero,

Ultramar, Texaco,

Shamrock, Diamond

Shamrock and

Beacon

One of North America’s

Largest Renewable

Fuels Producers

•

11 corn ethanol plants,

1.3 billion gallons per

year (85,000 BPD)

production capacity

•

Operator and 50%

owner of Diamond

Green Diesel joint

venture –

10,800 BPD

renewable diesel

production capacity

4

Strong Gulf Coast

and Mid-Continent Presence

Refineries and ethanol plants

are in advantaged locations

5

Current Macro Environment

Abundant

supply of crude

oil and natural

gas

1

Expected petroleum

demand increase,

with

highest growth

in China, India and

Middle East

countries

5

Forecasted

world GDP growth

3

Structural product

shortage in Latin

America, Europe,

Africa and Eastern

Canada

6

Demand response

to lower product

prices

4

COST

STRUCTURE

SUPPLY

DEMAND

North American

logistics

infrastructure

additions

2

See appendix for footnotes

6

Production Growth Provides Resource

Advantage to North American Refiners

58

74

U.S. Natural Gas

Production

(Bcf/day)

Source:

DOE, 2015 data through May

9,212

7,257

5,475

9,527

U.S. Crude Oil Production

and Imports

(MBPD)

Imports

Production

7

Safety and Reliability are

Imperative for Profitability

Mechanical Availability

Personnel Index

Maintenance Index

Non-Energy Cash

Opex

Energy Intensity Index

VLO’s Performance Versus Industry Benchmarks

2008

2010

2012

2014

4

th

Quartile

1

st

Quartile

3

rd

Quartile

2

nd

Quartile

See appendix for footnotes

Operate Safely and Reliably

8

Leader in Refinery Complexity

and Clean Product Yields

12.4

12.3

11.5

11.1

10.9

VLO

HFC

TSO

MPC

PSX

Nelson Complexity Index

91%

86%

84%

83%

78%

HFC

VLO

PSX

TSO

MPC

1H15 Clean Product Yields

(As Percentage of Total Products)

See appendix for footnotes

Expand Commercial and Operational Flexibility

9

Leader in Location-Advantaged CDU Capacity and

Our Gulf Coast Assets Have Flexible Feed Slates

26%

17%

12%

12%

4%

37%

34%

30%

23%

10%

Feedstock Ranges in Gulf Coast

(2010 –

2015)

See appendix for footnotes

1,948

1,731

1,230

443

129

VLO

MPC

PSX

HFC

TSO

Location-Advantaged CDU Capacity

(MBPD)

Eastern Canada

U.S. Gulf Coast

U.S. Mid-Continent

Expand Commercial and Operational Flexibility

10

Our System Enables Optimization

of Product Exports and Netbacks

69

86

255

308

164

221

412

472

2011

2012

2013

2014

1H15

Current

Capacity

Potential

Future

Capacity

VLO’s U.S. Product Exports

(MBPD)

Diesel

Gasoline

Expand Commercial and Operational Flexibility

Actual

export

volumes

for

2011

–

1H15.

See

appendix

for

additional

footnotes.

11

Location Advantage, Feedstock Flexibility and

Low Opex Deliver Strong Operating Income

$5.50

$6.20

$7.20

$7.90

$8.90

VLO

MPC

HFC

PSX

TSO

1H15 Refining Operating Expenses

Per Barrel Throughput

(Includes Cash Costs and D&A)

$10.40

$7.50

$7.20

$6.60

$5.00

HFC

VLO

MPC

TSO

PSX

1H15 Refining Operating Income Per

Barrel of Product Yield

Rounded figures presented.  See appendix for additional footnotes.

Expand Commercial and Operational Flexibility

12

Current Capital Allocation Framework

Sustaining Capex

•

Estimate $1.5 billion or

lower annual spend

•

Key to safe and reliable

operations

Dividend Growth

•

Should be sustainable

•

Compete for cash flow

versus reinvestments

Debt and Cash

•

Maintain investment

grade credit rating and

strong balance sheet

•

Target 20% to 30% debt-

to-cap ratio

(1)

(1)

Debt-to-cap ratio based on total debt reduced by $2 billion of cash.

Growth Capex

•

Prioritize higher-value,

higher-growth, quicker

payback opportunities

Stock Buybacks

•

Flexibility to return cash

and manage capital

employed

Acquisitions

•

Evaluate versus

alternative uses of cash

Disciplined Capital Management to Unlock Value

13

Investing in Logistics and

Higher Margin Businesses

$765

$730

$695

$655

$790

$300

$400

$715

$2,650

$2,400

2015E

2016E

Capital Expenditures

(millions)

Logistics

Light Crude Processing, Natural

Gas and NGLs Upgrading

Turnarounds & Catalyst

Sustaining

(1)

Excludes

estimated

placeholder

for

potential

methanol

project

of

$150

million

in

2015

and

$300

million

in

2016,

as

evaluation

remains

in

progress

(1)

Disciplined Capital Management to Unlock Value

14

Investing in Feedstock Flexibility

Light Crude

•

160 MBPD total new topping

capacity at Corpus Christi

and Houston refineries to

process up to 50 API sweet

crude

•

Replaces approximately 55

MBPD of purchased low

sulfur resid for FCCs with

indigenous production

•

Net throughput capacity

increase of approximately

105 MBPD expected

•

Expect startup in 1H16 and

annual EBITDA contribution

of approximately $500 MM

See appendix for project details

Disciplined Capital Management to Unlock Value

15

Investing to Increase

High Value Product Yields

Distillate

•

Meraux’s hydrocracker

expansion

(1)

in 4Q14

increased distillate yields by

approximately 19 MBPD

•

30 MBPD total hydrocracker

capacity addition at Port

Arthur (4Q15) and

St. Charles (1Q16) expected

to increase distillate yields by

approximately 23 MBPD

Alkylate

•

New 13 MBPD alkylation unit

at Houston refinery

•

Upgrades low-cost NGLs to

premium-priced alkylate

•

In phase 3 of development

with investment decision

expected in 1Q16 and startup

in 2018 if approved

Methanol

•

1.6 –

1.7 million TPY

(36 –

38 MBPD) production

capacity at St. Charles

refinery

•

Leverages existing assets to

reduce capital requirement

compared to grassroots

facility

•

In phase 3 of development

with investment decision

expected in 4Q15 and startup

in 2018 if approved

(1)

See appendix for project details

Disciplined Capital Management to Unlock Value

16

Delivering High Cash Returns to

Stockholders is One of Our Priorities

75% total payout target for 2015

2015 YTD through September 2.  Payout ratio as percent of 2015 net income.

169

360

462

554

409

409

349

281

928

1,296

992

1,807

25%

31%

51%

51%

61% YTD

75% Target

2011

2012

2013

2014

1H15

2015 YTD

Buybacks ($MM)

Dividends ($MM)

Payout Ratio

Disciplined Capital Management to Unlock Value

17

Our Sponsored MLP

Valero Energy Partners (NYSE:VLP)

Disciplined Capital Management to Unlock Value

Logistics MLP

•

VLO owns entire 2% general partner interest, all incentive distribution rights and 69.6% LP

interest

•

High-quality assets integrated with Valero’s refining system

•

Fee-based, liquids-focused revenue generation with no direct commodity price exposure

18

$95

$200

4Q14

Annualized

4Q15E

Annualized

Adjusted EBITDA Attributable to VLP

(millions)

Expect $1 Billion of Drop-Down Transactions

to VLP in 2015

See appendix for reconciliation of estimated 2015 EBITDA to net income

Sold Houston and St. Charles Terminals to VLP for $671 MM in March 2015

Disciplined Capital Management to Unlock Value

19

More Than $1 Billion of Estimated MLP Eligible

EBITDA Inventory

Racks, Terminals,

and Storage

(1)

•

Over 100 million

barrels of active

shell capacity for

crude and

products

•

139 truck rack

bays

Rail

•

Three crude

unloading facilities

with estimated

total capacity of

150 MBPD

•

5,320 purchased

railcars, expected

to serve long-term

needs in ethanol

and asphalt

Pipelines

(1)

•

Over 1,200 miles

of active pipelines

•

440 mile Diamond

Pipeline

(2)

from

Cushing to

Memphis refinery

expected to be

commissioned in

1H17

Marine

(1)

•

51 docks

•

Two Panamax

class vessels

(1)

Includes assets that have other joint venture or minority interests.

(2)

VLO holds option until January 2016 to acquire 50 percent interest in Diamond Pipeline.

Disciplined Capital Management to Unlock Value

Fuels

Distribution

•

Approximately 

800 MBPD fuels

distribution

volume

20

Renewables Business Has Performed Well

Ethanol

•

11 plants with 1.3 billion gallons total annual

production

•

Low capital investment with scale and location in

corn belt

•

Operational best practices transferred from refining

Disciplined Capital Management to Unlock Value

Diamond Green Diesel

•

50-50 joint venture with Darling Ingredients

•

Approximately 11 MBPD production capacity

•

Renewable diesel prices at a premium versus

biodiesel due to higher quality

21

VLO

14.2%

Median

10.4%

2016E Return on Average Market

Capital Employed

VLO

5.9x

Median

8.1x

2016E Price to Earnings Ratio

We Believe Valero

is an Excellent Investment

•

Majority of capacity located in U.S. Gulf

Coast and Mid-Continent with access to

cost-advantaged crude, natural gas, NGLs

and corn

•

Proven operations excellence

•

Excellent investment and operations in

renewable fuels

•

Focus on expansion of valuation multiple

–

Disciplined capital investment to drive

earnings growth

–

Unlocking value through growth in MLP-able

assets and drop-downs to VLP

–

Capital allocation to stockholders

We believe VLO is undervalued. We have a disciplined management team, a

strong financial position and a favorable macro environment.

See appendix for footnotes

Peer range

Peer range

22

Appendix Contents

Topic

Pages

Footnotes

23

2015 Goals

24

Refining Operating Statistics

25 –

28

Capital Investment Details

29 –

34

Valero Energy Partners LP

35

Natural Gas Cost Sensitivity

36

Crude Oil Transportation

37 –

38

Global Fundamentals

39 –

43

Non-GAAP

Reconciliations

44

IR Contacts

45

23

Footnotes

Slide 5

Macro environment themes represent industry consult views, of which points 1, 2, 5, and 6 are supported by additional slides in the presentation. 

Slide 7

Contractor recordable incident rate from U.S. Bureau of Labor Statistics.  Tier 1 process safety event defined within API Recommended Practice 754.  Industry

benchmarking and VLO performance statistics from Solomon Associates and Valero.

Slide 8

Nelson Complexity Index for HFC, TSO, and MPC from company presentations.  PSX’s Nelson Complexity calculated per Oil and Gas Journal NCI formula based on crude

capacities in company 10-K report and process unit capacities in Oil and Gas Journal as of January 1, 2015.  Total company NCI is weighted average for refineries.

Product yields from company 10-Q reports and presentations for six months ended June 30, 2015.  Clean products defined as gasoline, jet fuel/kerosene, and distillates.

Slide 9

Crude distillation capacities from company 10-K reports and presentations, grouped by geographic location. 

Valero’s Gulf Coast feedstock ranges are based upon quarterly processing rates between 1Q10 and 2Q15.

Slide 10

Valero’s potential future gasoline and distillate export capacities are based upon potential expansion opportunities at the St. Charles and Port Arthur refineries.

Slide 11

Refining operating expenses include cash costs and depreciation and amortization from company 10-Q reports for six months ended June 30, 2015.  PSX’s refining

operating expense per barrel of throughput from analyst reports. 

Refining

operating

income

and

total

product

yields

from

company

10-Q

reports

for

six

months

ended

June

30,

2015.

PSX’s

refining

operating

income

approximated

as

segment net income from company 10-Q with a 50% allocation of interest and debt expense and an assumed income tax of 35%.

Slide 21

Source for price to earnings ratios and returns on average market capital employed (ROMC) is Barclays.  2016 estimated ROMC defined as (tax effected operating and

other income) / (average of 2016 and 2015 market capital employed), where market capital employed is calculated as (year-end share price * shares outstanding) + total

debt.  Prices as of August 28, 2015 market close.

24

Key Goals Expected in 2015

Operations Excellence

Start up Montreal crude terminal

with the Enbridge Line 9B reversal

and lower Quebec City refinery’s

crude costs versus Brent

compared to 2014

Grow product export market share

and increase branded wholesale

fuels volume

Capital Returns to Stockholders

Increase total payout ratio of

earnings over 2014’s 50% payout

level

Disciplined Capital Investments

Complete construction of Houston and Corpus Christi

crude topping units

Make final investment decisions on methanol plant at

St. Charles refinery and alkylation unit at Houston

refinery

Complete 25 MBPD McKee refinery CDU capacity

expansion

Complete 30 MBPD total hydrocracker capacity

expansions at Port Arthur and St. Charles refineries

Gain permit approval to construct Benicia crude rail

unloading facility

Unlocking Asset Value

Increase the identified MLP-able EBITDA available

for drop-downs to VLP

Execute $1 billion of drop-down transactions to VLP

25

Our Refining Capacity and Nelson Complexity

Refinery

Capacities (MBPD)

Nelson Complexity

Index

Throughput

Crude

Corpus Christi

(1)

325

205

19.9

Houston

175

90

15.4

Meraux

135

125

9.7

Port Arthur

375

335

12.4

St. Charles

290

215

16.0

Texas City

260

225

11.1

Three

Rivers

100

89

13.2

Gulf Coast

1,660

1,284

14.0

Ardmore

90

86

12.1

McKee

180

168

9.5

Memphis

195

180

7.9

Mid-Con

465

434

9.3

Pembroke

270

210

10.1

Quebec

City

235

230

7.7

North

Atlantic

505

440

8.9

Benicia

170

145

16.1

Wilmington

135

85

15.9

West Coast

305

230

16.0

Total or Average

2,935

2,388

12.4

(1)

Represents the combined capacities of two refineries—Corpus Christi East and Corpus Christi West.

26

Reliability Initiatives Have Improved Refinery

Availability and Enabled Higher Utilization

27

Valero Is Currently Utilizing 84 Percent of Its

Available Light Crude Capacity in North America

McKee Refinery Crude Unit Expansion

•

25 MBPD additional capacity

expected in 2H15

•

Distillate recovery improvements

Houston Refinery Crude Topping Unit

•

90 MBPD capacity expected 1H16

•

Displaces 30 MBPD intermediate

feedstock purchases

Corpus Christi Refinery Crude

Topping Unit

•

70 MBPD capacity expected 1H16

•

Displaces 25 MBPD intermediate

feedstock purchases

Actual light crude consumption less than capacity due to turnaround

maintenance and economics. Includes imported foreign sweet crudes.

1,030

1,220

1,410

2Q15 Actual

Utilization

Current

Capacity

Estimate

Future

Capacity (with

Projects)

MBPD

28

0%

50%

100%

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

Quebec City Refinery Crude Slate

Foreign Imports

North American

Expect Quebec City Refinery to Have Access

to 100% North American Crude in 2015

Processing advantaged crudes delivered by rail and foreign flagged ships from U.S. Gulf Coast,

with additional transportation cost savings expected after reversal of Enbridge Line 9B in 4Q15

29

Meraux Hydrocracker Conversion

Completed December 2014

Investment Highlights

•

Converted hydrotreater into high-pressure

hydrocracker and repurposed old FCC gas

plant for additional LPG recovery

•

Expect to upgrade 23 MBPD gasoil and

low-cost hydrogen (via natural gas) mainly

into high quality diesel

•

Expect to increase refinery distillate yield

versus gasoline (Gas/Diesel ratio drops

from 0.72 to 0.59)

•

Expect to increase refinery liquid volume

yield by 1.8%

•

Avoided compliance capex on FCC

Status

•

Project started up in Dec 2014 and is

operating well

Incremental Volume

(MBPD)

Feeds

Purchased hydrogen

(MMSCFD)

13

Products (MBPD)

Gasoline

5

Jet

-

Diesel

19

HSVGO

2

Unconverted gasoil

(23)

Fuel oil

-

Project Estimates

Total investment

$260 MM

Annual EBITDA contribution

(1)

$90 MM

Unlevered IRR on total spend

(1)

25%

(1)

Estimates based on 2014 full year average prices; EBITDA = operating income

before deduction for depreciation and amortization expense

30

McKee Refinery Diesel Recovery Improvement

and CDU Expansion Startup Expected in 2H15

Investment Highlights

•

Adding 25 MBPD crude unit capacity

and parallel light ends processing train

•

Expect to improve yields and volume

gain by recovering diesel from FCC and

HCU feeds

•

Expect to increase diesel and gasoline

production on price-advantaged crude

•

Expect to reduce energy consumption

via heat integration

Status

•

Diesel recovery and benefits started in

mid-2014; expect crude expansion start-

up in 2H15

Incremental Volume

(MBPD)

Feeds

WTI

25

Products (MBPD)

LPG

0.4

Benzene concentrate

0.3

Gasoline

12

Jet

-

Diesel

12

Resid

0.6

Project Estimates

Total investment

$140 MM

Annual EBITDA contribution

(1)

$100 MM

Unlevered IRR on total spend

(1)

45%

(1)

Estimates based on 2014 full year average prices; EBITDA = operating income

before deduction for depreciation and amortization expense

31

Light Crude Processing Investments

•

160 MBPD new topping capacity

designed to process up to 50 API

domestic sweet crude

–

Estimated 55 MBPD low sulfur resid

yield should lower feedstock costs

–

Net throughput capacity increase of

approximately 105 MBPD, with

startup expected in 1H16

•

Expect 50% IRR on 2014 prices,

>25% IRR with Brent and LLS even

•

Corpus Christi Refinery:

Estimated

$350 MM capex for 70 MBPD

capacity

•

Houston Refinery:

Estimated $400

MM capex for 90 MBPD capacity

Estimate $500 million annual EBITDA for

combined projects in 2014 price environment

Incremental Volume

(MBPD)

Feeds

Eagle Ford crude

160

Low

sulfur atmos resid

(55)

Products

LPG

3.3

Propylene

1.3

BTX

0.4

Naphtha (at

export prices)

40

Gasoline

12

Jet

39

Diesel

13

Resid

(3)

Combined Project Estimates

Total investment

(1)

$750

MM

Annual EBITDA contribution

(2)

$500 MM

Unlevered IRR on total spend

(2)

50%

(1)

Excluding interest and overhead allocation

(2)

Estimates based on 2014 full year average prices; EBITDA = operating income

before deduction for depreciation and amortization expense

32

Houston and Corpus Christi Crude

Topping Project Economics

Corpus Christi Refinery

Houston Refinery

(1)

Estimates based on 2014 full year average prices; EBITDA = operating income before deduction for depreciation and amortization expense

Project Estimates

Total investment

$400 MM

Annual EBITDA contribution

(1)

$240 MM

Unlevered IRR on total spend

(1)

45%

Project Estimates

Total investment

$350 MM

Annual EBITDA contribution

(1)

$260 MM

Unlevered IRR on total spend

(1)

55%

Estimates

Incremental Volume

(MBPD)

Feeds

Eagle Ford crude

90

Low

sulfur atmos resid

(29)

Distillate

(2)

Butane

(2)

Hydrogen (MMSCFD)

3

Products

LPG

0.8

Propylene

0.4

Naphtha

24

Gasoline

5

Jet

23

Diesel

4

Slurry

0.2

LPG

0.8

Estimates

Incremental Volume

(MBPD)

Feeds

Eagle Ford crude

70

Low

sulfur atmos resid

(24)

Products

LPG

2.5

Propylene

0.9

BTX

0.4

Naphtha

16

Gasoline

7

Jet

16

Diesel

9

Resid

(3)

33

Project Price Set Assumptions

Driver ($/bbl)

2014 Average

ICE Brent

99.49

ICE Brent –

WTI

6.35

ICE Brent –

LLS

2.75

USGC CBOB

–

ICE Brent

3.52

G3 CBOB

–

WTI

12.27

USGC ULSD –

ICE

Brent

14.25

G3

ULSD –

WTI

23.88

Natural

gas (Houston Ship Channel, $/mmBtu)

4.34

Naphtha

–

ICE Brent

-0.67

LSVGO

–

ICE Brent

8.86

34

Estimated Key Price Sensitivities

on Project Economics

Change in Estimated

EBITDA

(1)

Relative to 2014

(2)

Prices ($millions/year)

McKee Diesel

Recovery &

CDU Expansion

Meraux

HCU

Expansion

Corpus

Christi

Topper

Houston

Topper

ICE Brent, +$1/bbl

none

$0.8

$0.4

none

ICE Brent –

WTI, +$1/bbl

$5.5

none

None

none

ICE Brent –

LLS, +$1/bbl

N/A

none

$25.6

$32.9

Group 3 CBOB –

ICE

Brent, +$1/bbl

$2.0

N/A

N/A

N/A

Group 3 ULSD –

ICE Brent, +$1/bbl

$5.5

N/A

N/A

N/A

USGC CBOB

–

ICE Brent, +$1/bbl

N/A

$1.7

$2.4

$2.4

USGC ULSD –

ICE

Brent, +$1/bbl

N/A

$6.8

$9.0

$9.9

Natural

gas (Houston Ship Channel), +$1/mmBtu

-$0.7

-$1.9

-$4.3

-$3.2

Naphtha –

ICE Brent, +$1/bbl

N/A

none

$5.8

$8.8

LSVGO

–

ICE Brent, + $1/bbl

N/A

-$7.3

$3.1

$5.2

Total investment IRR, +10% cost

-6%

N/A

-5%

-4%

(1)

Operating income before deduction for depreciation and amortization expense

(2)

2014 full year average

Margin drivers shown are not inclusive of all feedstocks and products in economic models. Estimated economic sensitivities can not be accurately interpolated or extrapolated

solely from the estimated key price sensitivities shown above.

35

Valero’s GP Interest in

VLP Nearing the “High Splits”

Target Quarterly

Distribution per Unit

Marginal Percentage

Interest in Distributions

Unitholders

GP

Minimum quarterly

$0.2125

98%

2%

First target

above $0.2125 up to $0.244375

98%

2%

Second target

above $0.244375 up to $0.265625

85%

15%

Third target

above $0.265625 up to $0.31875

75%

25%

Thereafter

above $0.31875

50%

50%

•

2Q15 distribution at $0.2925 per unit

•

Valero’s GP interest in VLP expected to reach 50% split in 4Q15, payable

in 2016, based on accelerated drop-down strategy

36

$3/mmBtu

U.S.

$0.90/bbl

$7/mmBtu

Europe

$2.20/bbl

$11/mmBtu

Asian LNG

$3.65/bbl

Natural Gas Cost Sensitivity for Valero’s Refineries

U.S. Natural Gas Provides Opex

and Feedstock Cost Advantages

Estimated per barrel cost of 864,000 mmBtu/day of natural gas consumption at 92% refinery throughput capacity utilization, or 2.7 MMBPD.

$1.3 billion

higher pre-tax

annual costs

$1.5 billion

higher pre-tax

annual costs

•

Our refining operations consume approximately 864,000 mmBtu/day of natural gas, split

almost equally between operating expense and cost of goods sold

•

Significant annual pre-tax cost savings compared to refiners in Europe or Asia

•

Prices expected to remain low and disconnected from global oil and gas markets

37

Estimated Crude Oil Transportation Costs

to Houston

Pipe

$2

to

$4/bbl

USGC to USEC

U.S. Ship $3 to

$5/bbl

USGC to Canada

Foreign Ship

$2/bbl

U.S. Ship $4

to $5/bbl

Brent to

USEC

$2/bbl

to USEC

Rail $11 to $13/bbl

to St. James

Rail $11/bbl

Cushing

Midland

to Houston

Pipe $3/bbl

CC to Houston

$1 to $2/bbl

Houston to St. James

$1 to $2 /bbl

to West Coast

Rail $13 to $15/bbl

Alberta to Bakken

$1 to $2/bbl

Rail $9/bbl

Alberta

to Eastern Canada

Rail $11 to $12/bbl

Bakken

to Cushing

Rail $9/bbl

to Cushing

Pipe $5 to $6/bbl

38

KEY

New Crude Oil Pipeline Capacities

Niobrara

Eagle

Ford

Cushing

Bakken

Recently Completed

2015 Startup

> 2015 Est. Startup

Capacities in MBPD.

Permian

Alberta

39

Net

0.8

Net

1.5

Net

1.4

-2.5

-1.5

-0.5

0.5

1.5

2.5

3.5

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015E

2016E

MMBPD

World Petroleum Demand Growth

U.S.

OECD (excl. U.S.)

Non-OECD

Global Petroleum Demand

Projected to Grow

Source:  Consultant (EIA and IEA) and Valero estimates. Consultant annual estimates generally updated 6 to 12 months after year end. 

Emerging markets in Latin America, Middle East, Africa, and Asia lead demand growth

40

0.85

0.70

0.98

0.91

0.96

-0.4

0.0

0.4

0.8

1.2

2015

2016

2017

2018

2019

MMBPD

Estimated Net Global Refinery Crude Distillation Changes

Europe

China

Middle East

Other (incl. U.S. and Latin America)

Total

World Refinery Capacity Growth

•

New capacity additions expected in Asia and the Middle East

•

Announced new capacity in Latin America likely to be smaller and start later than planned

•

Capacity rationalization expected to continue in Europe

Source: Consultant and Valero estimates;  Net Global Refinery Additions =

New

Capacity

+

Restarts

–

Announced

Closures

41

0

100

200

300

400

500

600

700

800

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Other

Europe

Other Latin America

Mexico

Canada

Latest 4 Wk avg estimate

(Finished only)

12 Month Moving Average

(MBPD)

Gasoline represents all finished gasoline plus all blendstocks (including ethanol, MTBE, and other oxygenates)

Source:

DOE Petroleum Supply Monthly data through May 2015.   4 Week Average estimate from Weekly Petroleum Statistics Report and Valero estimates.

U.S. Gasoline Exports

42

Source: DOE Petroleum Supply Monthly with data through May 2015. 4 Week Average estimate from Weekly Petroleum Statistics Report

U.S. Diesel Exports

0

200

400

600

800

1000

1200

1400

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Other

Europe

Other Latin America

Mexico

Canada

Latest 4 Wk avg

estimate

12 Month Moving Average

(MBPD)

43

-3,000

-2,500

-2,000

-1,500

-1,000

-500

0

500

1,000

1,500

2,000

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Other

Diesel

Gasoline

Total

MBPD

Net Exports of Products from the U.S.

Source:  DOE Petroleum Supply Monthly data through May 2015.

Gasoline represents all finished gasoline plus all blendstocks (including ethanol, MTBE, and other oxygenates)

•

Net refined products exports increased from 335 MBPD in 2010 to 3 MMBPD in 2015

•

Diesel net exports averaged 919 MBPD in 2014; 817 MBPD in 2015 (Jan-May)

•

Gasoline

net

exports

averaged

66

MBPD

in

2014;

67

MBPD

in

2015

(Jan

–

May)

44

Non-GAAP Reconciliations

Forecasted

(thousands)

Full Year Beginning

March 1, 2015 Valero

Partners Houston

and

Louisiana

Net

income

$37,300

+

Interest expenses

18,100

+ Income tax expense

400

+ Depreciation expense

$20,000

= EBITDA

$75,800

Reconciliation of VLP Forecasted

Net Income to EBITDA

Three Months Ended

December 31, 2014

Three Months Ended

December 31, 2015

(millions)

As Reported

Annualized

(x4)

Forecasted

Annualized

(x4)

Net income

$19

$76

$32

$128

Plus:

Depreciation expense

5

18

11

44

Interest expense

(1)

-

1

7

28

Income tax expense

-

-

-

-

EBITDA

$24

$95

$50

$200

Reconciliation of VLP Net Income Under GAAP to EBITDA

(1)

Interest expense and cash interest paid both include commitment fees to be paid on VLP’s revolving credit facility. Interest

expense also includes the amortization of estimated deferred issuance costs to be incurred in connection with establishing

VLP’s revolving credit facility.

45

Investor Relations Contacts

For more information, please contact:

John Locke

Vice President, Investor Relations

210.345.3077

john.locke@valero.com

Karen Ngo

Manager, Investor Relations

210.345.4574

karen.ngo@valero.com