Valero Cuts Run Rates
Company Idles Gasoline, Ethanol Output
OAKHURST, N.J. (DTN) -- Valero Energy Corp. in a federal filing on Monday, April 13, said it began reducing crude runs "at most of its refineries, temporarily idled various-gasoline making units at certain refineries" and reduced jet fuel production in late March and early April in response to lower product demand as a result of the collapse in oil prices and the coronavirus pandemic.
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"We also temporarily idled eight of our ethanol plants, and we reduced the amount of corn feedstock processed at our remaining six ethanol plants to address the decreased demand for ethanol," the filing read.
Valero operates 15 petroleum refineries with a combined throughput capacity of approximately 3.2 million barrels per day (bpd) and 14 ethanol plants with a combined production capacity of 1.73 billion gallons per year.
To address liquidity, the company reported it expects to delay certain capital expenditures it expected to make this year related to its refining and ethanol segments. Valero also deferred approximately $100 million of direct and indirect tax payments due in the first quarter and plans to defer certain other direct and indirect tax payments in 2020.
In a separate filing, the company announced it entered into a new $875 million 364-day revolving credit agreement.
Valero Energy through its subsidiaries, manufactures and markets transportation fuels and petrochemical products.
(BM/AG)
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