Valero Energy Corporation

Greetings and welcome to Valero Energy Corp third quarter 2024 earnings conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Homer Buller, Vice President, Investor Relations and Finance. Thank you. You may begin.

Good morning, everyone, and welcome to Valero Energy Corporation's third quarter 2024 earnings conference call. With me today are Lane Riggs, our CEO and President, Jason Frazier, our Executive Vice President and CFO, Gary Simmons, our Executive Vice President and COO, and several other members of Valero's senior management team. If you have not received the earnings release and would like a copy, you can find one on our website at InvestorValero.com. Also attached to the earnings release are tables that provide additional financial information on our business segments and reconciliations and disclosures for adjusted financial metrics mentioned on this call. If you have any questions after reviewing these tables, please feel free to contact our investor relations team after the call. I would now like to direct your attention to the forward-looking statement disclaimer contained in the press release. In summary, it says that statements in the press release and on this conference call that state the company's or management's expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions under federal securities laws. There are many factors that could cause actual results to differ from our expectations, including those we've described in our earnings release and filings with the SEC. Now I'll turn the call over to Lane for opening remarks.

Thank you, Homer, and good morning, everyone. Our third quarter results reflect a period of heavy maintenance in our refining segment during a relatively weak margin environment. Our refineries operate at 90% throughput capacity utilization in line with our guidance for the quarter. Product demand across the system remains strong with our U.S. wholesale volumes exceeding 1 million barrels per day for the second consecutive quarter. On the strategic front, We remain committed to executing projects that continue to enhance the earnings capability of our business and expand our long-term competitive advantage. I'm proud to report that the Diamond Green Diesel Sustainable Aviation Fuel, or SAFT, project is now mechanically complete and is in the process of starting up. The project was completed on schedule and under budget and is a testament to the strength of our projects and operations teams. On the financial side, we continue to honor our commitment to shareholder returns, with a strong payout ratio of 84% for the quarter and a year-to-date payout of 81%. Looking ahead, improving diesel demand against a backdrop of low light product inventories should support refining margins. Increases in OPEC Plus crude supplies should widen our sour crude oil differentials and further increase margins. In longer term, we expect product demand to exceed supply with the announced refinery shutdowns next year. and limited capacity additions beyond 2025, supporting long-term refining fundamentals. In closing, our focus on operational excellence, capital discipline, and honoring our commitment to shareholder returns has served us well and will continue to anchor our strategy going forward. So with that, Homer, I'll hand the call back to you.