Valero
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| Valero Energy Corp | |
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| Type of Company | Public(NYSE: VLO) |
|---|---|
| Founded | January 1, 1980 |
| Headquarters | San Antonio, TX, USA |
| Key people | Bill Klesse, CEO |
| Industry | Oil and Gasoline |
| Products | Petrochemical |
| Revenue | $80 billion USD (2004) |
| Employees | 22,000 |
| Slogan | The energy to take you anywhere |
| Website | www.valero.com |
Valero Energy Corporation (NYSE: VLO) is a Fortune 500 company based in San Antonio, Texas with approximately 22,000 employees and annual revenue of more than $80 billion. The company owns and operates 17 refineries throughout the United States, Canada and the Caribbean with a combined throughput capacity of approximately 3.3 million barrels per day, making it the largest refiner in North America. Valero is also one of the nation's largest retail operators with more than 5,000 retail and branded wholesale outlets in the United States, Canada and the Caribbean under various brand names, including Valero, Diamond Shamrock, Ultramar, Shamrock and Beacon. Valero Energy also is the majority owner of Valero GP Holdings, LLC, NYSE: VEH, though they intend to ultimately divest their entire ownership[1]. Valero GP Holdings owns the 2% general partner interest in Valero L.P. NYSE: VLI, 100% of the incentive distribution rights issued by Valero L.P. and approximately 10.2 million common units of Valero L.P., which represent a 21.4% limited partner interest in Valero L.P.
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[edit] Retail
Valero also retails gasoline branded as Valero, Shamrock, Diamond Shamrock, Ultramar, Beacon, and Total. While this arm of the company is the most visible to the public, it is, according to CEO Bill Klesse, "a very small part of [Valero's] operations"[2].
Valero is gradually shifting its focus from being a discount gasoline brand to becoming a premium brand. As part of that shift, Valero has begun to rebrand its Ultramar, Beacon, Total and Diamond Shamrock stations to the Valero brand. The Beacon and Shamrock brands are used by retailers as a low cost alternative to the premium Valero brand. (The Shamrock brand, in the Valero empire, is based on the former Shamrock Oil and Gas Company, which merged with Diamond Alkali in 1967 to form Diamond Shamrock.) The name Ultramar, while being eliminated in the U.S., will still be used as Valero's brand name in Canada.
[edit] History
Valero was created on January 1, 1980, as a spinoff from the Coastal States Gas Corporation. At the time, it was the largest corporate spinoff in U.S. history. Valero took over the natural gas operations of the LoVaca Gathering Company, a defunct subsidiary of Coastal States Gas. The name Valero comes from Mission San Antonio de Valero, the mission founded in 1718 from which the city of San Antonio started, which is better known worldwide as The Alamo.
The company acquired a small oil refinery in Corpus Christi, Texas in 1981, and began refining operations in 1984.
In 1997, Valero spun off its refining and retail divisions into a separate company, which kept the Valero name. At the same time, the remaining divisions, which consisted primarily of natural gas operations, were acquired by PG&E. Later that year, Valero acquired Basis Petroleum, which left it with four refineries in Texas and Louisiana.
Valero acquired a Paulsboro, New Jersey refinery in 1998. This was the company's first refinery outside of the Gulf Coast area.
In 2000, Valero purchased ExxonMobil's Benicia, California refinery and interests in 350 Exxon-branded service stations in California, mainly in the San Francisco Bay area. The company also began retailing gasoline under the Valero brand. In June 2001, the company acquired the Huntway Refining Company, along with two asphalt plants on the west coast.
On December 31, 2001, Valero completed its acquisition of Ultramar Diamond Shamrock. This merger left Valero with over 4,700 retail sites in the U.S., Canada, and the Caribbean. With this acquisition Valero also received ownership of Shamrock Logistics L.P., which was renamed Valero L.P. This limited partnership owns and operates a 7200 mile (11500 km) pipeline network and 57 refined product terminals in the U.S., and is publicly traded (Valero maintains a 13.6 percent indirect interest through Valero GP Holdings, LLC, also publicly traded, though they have announced their intention to ultimately divest of all their interests).
Starting in 2002, Valero has been expanding its marketing to the East Coast, specifically the Northeast and Florida, using the Valero brand.
On April 25, 2005 Valero agreed to buy Premcor Inc. for $6.9 billion in cash and stock to become the largest U.S. refiner, as record prices for gasoline and other fuels boost profits.
On June 30, 2005 Valero announced it was beginning a two-year process of converting Diamond Shamrock stations to the Valero brand.
Starting in 2007, Valero will takeover for Sunoco as the exclusive gas provider for the Ohio Turnpike service plazas[3].
