Valero has invested $5.4 billion in low-carbon fuels businesses, including renewable diesel and ethanol, and expects further growth opportunities in this area.

The DGD Port Arthur Plant will have the option to upgrade 50% of its renewable diesel capacity to SAF, positioning DGD as a major SAF manufacturer.

Valero's participation in a planned carbon capture and sequestration pipeline with Navigator Energy Services was canceled by Navigator in October 2023.

Valero emphasizes safety, reliability, and environmental responsibility through programs like CTEMS and EERA, aiming to reduce unplanned shutdowns.

Management continues to evaluate investments in low-carbon projects such as carbon capture and sequestration, and alcohol-to-jet fuel despite recent project cancellation.

Valero has implemented LCAP to strengthen internal processes to comply with low-carbon fuel regulations, policies, and standards.

Valero's financial results are affected by volatile margins that depend on feedstock prices and market prices of products, which are influenced by global and regional factors.

The company faces risks from a potential transition to electric and hybrid vehicles, which could reduce demand for their petroleum-based products.

Valero is subject to increasing pressure regarding ESG and climate-related disclosures, which could negatively impact access to capital markets and insurance.

The refining and marketing industry is highly competitive, with many companies competing for feedstock supply and retail outlets.

Some competitors have advantages due to their own feedstock production and retail networks, which can help them offset losses in other areas.

With the completion of the Port Arthur Plant upgrade, DGD is expected to become one of the largest manufacturers of SAF in the world.

Refining segment operating expenses decreased by $301 million primarily due to lower natural gas costs, partially offset by increases in chemicals and catalyst costs and certain employee compensation expenses.

Renewable Diesel segment operating expenses increased by $103 million primarily due to increased costs resulting from the new DGD Port Arthur Plant.

Ethanol segment operating expenses decreased by $110 million primarily due to lower natural gas costs.

Valero continues to invest in low-carbon projects, including renewable diesel, SAF, and carbon capture, to lower the carbon intensity of its products.

DGD plants use a pre-treatment process and an advanced hydroprocessing-isomerization process to produce renewable diesel and renewable naphtha from waste and renewable feedstocks.

Valero is evaluating carbon capture and sequestration projects at certain ethanol plants to decrease the CI score of ethanol and generate Section 45Q tax credits.

Valero returned $6.6 billion to shareholders through share repurchases and dividend payments in 2023.

The board authorized an additional $2.5 billion share repurchase program in February 2024, in addition to the remaining amount under the September 2023 program.

Valero's capital investments include significant spending on low-carbon fuels businesses, with $5.4 billion invested as of December 31, 2023.

Valero has implemented environmental management systems, including CTEMS and EERA, to improve environmental performance and compliance.

Valero emphasizes safety and reliability through training programs and safety assessments at its facilities.

Valero is committed to equal employment opportunity and has implemented outreach and recruiting efforts to build diverse teams.

The company benefited from continued strong worldwide demand for petroleum-based transportation fuels in 2023.

The global supply and demand imbalance contributed to strong refining margins for the company in 2023.

The company's operations are subject to the effects of global geopolitical and other conflicts and tensions, which could impact trade flows and transportation costs.