Valero, L.P.

NYSE: VLI

 

 

Valero, L.P. owns and operates most of the crude oil and refined product pipeline, terminaling and storage assets that support Valero Energy Corporation's McKee, Three Rivers and Ardmore refineries and its marketing operations located in Texas, Oklahoma, Colorado, New Mexico and Arizona. Valero has an ownership interest in nine crude oil pipelines with an aggregate length of approximately 783 miles and 23 refined product pipelines with an aggregate length of approximately 3,717 miles. Valero also owns a 25-mile-long crude hydrogen pipeline. Valero operates all but three of the pipelines. For the pipelines in which Valero has less than a 100% ownership interest, Valero funds capital expenditures in proportion to its respective ownership percentage.

Crude Oil Pipelines

Valero’s crude oil pipelines, which have an aggregate length of 783 miles, deliver crude oil and other feedstocks, such as gas and normal butane, from various points in Texas, Oklahoma, Kansas and Colorado to Valero Energy’s McKee, Three Rivers and Ardmore refineries.  Valero also owns five crude oil storage facilities in Texas and Oklahoma, which allow for crude oil to be stored and batched prior to shipment in the crude oil pipelines, and whose costs are included in setting the tariffs for transporting crude oil.  The crude oil pipelines delivered 355,008 barrels per day of crude during 2003.

Refined Product Pipelines

Valero’s 23 refined product pipelines transport refined products from Valero Energy’s McKee, Three Rivers, Corpus Christi (East and West), and Ardmore refineries to Valero’s terminals or to interconnections with third-party pipelines, for distribution in markets in Texas, Oklahoma, Colorado, New Mexico, Arizona and other mid-continent states. The refined products transported in these pipelines include gasoline, distillates (including diesel and jet fuel), natural gas liquids (such as propane and butane), blendstocks and petrochemical raw materials such as toluene, xylene and raffinate. During the year ended December 31, 2003, gasoline and distillates represented approximately 69% and 23%, respectively, of the total throughput in Valero’s refined product pipelines, and these pipelines transported 392,145 barrels per day.

Storage and Terminaling Operations

Valero L.P. owns 58 crude oil and intermediate feedstock storage tanks and related assets with aggregate storage capacity of approximately 11.0 million barrels. The tanks serve the needs of Valero Energy’s Benicia, Corpus Christi West and Texas City refineries.   Average throughput for these facilities was 366,986 barrels/day in 2003.

 Valero also owns 21 refined products terminals in Texas, Colorado, New Mexico, California, Oklahoma, and New Jersey.  These terminals have a total of 199 tanks with a combined capacity of 4.4 million barrels.  Aggregate throughput in 2003 was 225,426 barrels/day.

Since its initial public offering in 2001, Valero has pursued a growth strategy through a number of accretive acquisitions that have significantly increased its scope of operations and diversified its assets, growing its operations to include more than $827 million in assets.  Its net income has increased 51.7% and its revenues have increased 83.6% from 2001 to 2003.  Valero’s priority in coming years will be to continue to grow by acquiring third-party assets involved in transporting and storing energy products.  It also plans to expand its current system by increasing throughputs and utilization.

For additional information, contact Lee Bailey (Investor Relations) at 210-370-2139 or by email at [email protected].  You may also visit Valero’s website, www.valero.com/lpHome.php

Financial Information from 2003 10-K

(Dollar amounts in thousands, except per unit)

 

 

2003

2002

 

 

 

Market value*

 $     500,600

$188,887

Current assets

 $      38,134

$43,694

Net property, plant & equipment

 $     765,002

$349,276

Total assets

 $     827,557

$415,508

Current liabilities

 $      31,370

$12,677

Long-term debt

 $     353,257

$108,911

Partners’ equity

 $     438,163

$293,895

Revenues

 $     181,450

$118,458

Operating income

 $      83,037

$57,230

Net income

 $      69,593

$55,143

Net income/unit

 $          3.02

$2.72

Distribution/unit

 $          2.95

$2.75

High unit price

 $        50.25

$42.10

Low unit price

$35.00

$33.10

*As of  June 30, 2003 and June 28, 2002

 

 

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