Valero Energy Corp has priced a public offering of senior notes due 2036 with a total principal amount of $850 million to refinance existing debt.
The San Antonio, Texas-based refiner expects to close the issuance, which carries an interest of 5.15 percent, this Tuesday.
“Valero intends to use the net proceeds from the offering for general corporate purposes, including the repayment, repurchase or redemption of its outstanding 7.65 percent debentures due 2026 and 3.4 percent senior notes due 2026 and the outstanding 4.375 percent senior notes due 2026 issued by Valero Energy Partners LP and guaranteed by Valero”, it said in a press release.
Citigroup Global Markets Inc, MUFG Securities Americas Inc, SMBC Nikko Securities America Inc and Wells Fargo Securities LLC are joint book-running managers for the offering.
At yearend 2025 Valero had $8.3 billion in total debt, $2.4 billion in finance lease obligations and $4.7 billion in cash and cash equivalents. Current liabilities totaled $14.11 billion while current assets stood at $23.21 billion according to its quarterly report January 29, 2026.
Valero recorded its highest annual refining throughput last year at 2.99 million barrels per day (MMbpd), up from 2.91 MMbpd in 2024.
Valero affirmed that a $230-million “optimization” project to increase the production of “high-value products” at the St Charles refinery in Louisiana is on track to start operation in the second half of 2026.
Ethanol production in 2025 was also Valero’s highest at 4.61 MMbpd, compared to 4.54 MMbpd in 2024.
However, yearly revenue fell to $122.69 billion for 2025 from $129.88 billion for 2024 as operating expenses rose across segments – refining, renewable diesel and ethanol – and the renewable diesel sales volume dropped.
Refining and ethanol margins increased compared to 2024, while the renewable diesel margin decreased.
Net profit adjusted for nonrecurring or extraordinary items landed at $3.29 billion, up from $2.74 billion for 2024.
“Net cash provided by operating activities in 2025 was $5.8 billion. Included in this amount was a $192 million unfavorable impact from working capital and $30 million of adjusted net cash provided by operating activities associated with the other joint venture member’s share of DGD [Diamond Green Diesel]”, Valero said. “Excluding these items, adjusted net cash provided by operating activities in 2025 was $6.0 billion”.
“In 2025, Valero stockholder cash returns totaled $4.0 billion, resulting in a payout ratio of 67 percent for the year”, it said.
Valero raised its quarterly dividend to $1.2 per share from $1.13 per share.
“We remain committed to our capital allocation framework that prioritizes balance sheet strength, disciplined capital investments and shareholder returns”, said chair, chief executive and president Lane Riggs.
To contact the author, email jov.onsat@rigzone.com
What do you think? We’d love to hear from you, join the conversation on the
Rigzone Energy Network.
The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy.
element
var scriptTag = document.createElement(‘script’);
scriptTag.src = url;
scriptTag.async = true;
scriptTag.onload = implementationCode;
scriptTag.onreadystatechange = implementationCode;
location.appendChild(scriptTag);
};
var div = document.getElementById(‘rigzonelogo’);
div.innerHTML += ” +
‘
‘ +
”;
var initJobSearch = function () {
////console.log(“call back”);
}
var addMetaPixel = function () {
if (-1 > -1 || -1 > -1) {
/*Meta Pixel Code*/
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1517407191885185’);
fbq(‘track’, ‘PageView’);
/*End Meta Pixel Code*/
} else if (0 > -1 && 66 > -1)
{
/*Meta Pixel Code*/
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1517407191885185’);
fbq(‘track’, ‘PageView’);
/*End Meta Pixel Code*/
}
}
// function gtmFunctionForLayout()
// {
//loadJS(“https://www.googletagmanager.com/gtag/js?id=G-K6ZDLWV6VX”, initJobSearch, document.body);
//}
// window.onload = (e => {
// setTimeout(
// function () {
// document.addEventListener(“DOMContentLoaded”, function () {
// // Select all anchor elements with class ‘ui-tabs-anchor’
// const anchors = document.querySelectorAll(‘a .ui-tabs-anchor’);
// // Loop through each anchor and remove the role attribute if it is set to “presentation”
// anchors.forEach(anchor => {
// if (anchor.getAttribute(‘role’) === ‘presentation’) {
// anchor.removeAttribute(‘role’);
// }
// });
// });
// }
// , 200);
//});
