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April was a very special month as San Antonio celebrated the 100th anniversary of the Valero Texas Open. As the oldest tournament on the PGA Tour to be played in the same city, the story of the Valero Texas Open is really the story of San Antonio in the 21st century. Among the many significant challenges over the last 100 years, it has survived a depression, a world war and a global pandemic. But 2022 is off to a strong start, providing a positive backdrop for our community and businesses, here in San Antonio and beyond.
Valero recently reported first-quarter 2022 adjusted net income attributable to stockholders of $944 million, or $2.31 per share, as a result of continued recovery in its refining business, which was supported by strong product demand, low global inventories and good operations.
On the strategic front, Valero continues to leverage its leading refining expertise to produce a new generation of transportation fuels that use renewable feedstocks and have lower emissions. This approach is steadily expanding the position Valero already holds as one of the world’s largest producers of low-carbon fuels.
Right now, construction is underway on a new 470 million-gallon-per-year renewable diesel plant located next to Valero’s Port Arthur Refinery, with an accelerated expected completion in the fourth quarter of 2022. Once operational, total annual production capacity of Valero’s Diamond Green Diesel joint venture is expected to be 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha, which can be blended to make renewable gasoline and renewable plastics.
Work continues on BlackRock and Navigator’s large-scale carbon sequestration project, with startup activities expected in late 2024. Valero expects to be the anchor shipper with eight of its ethanol plants, located in Iowa, Minnesota, Nebraska and South Dakota, connected to the 1,300-mile pipeline. Once completed, this project is expected to reduce the carbon intensity of the ethanol Valero produces while providing higher product margin. In addition to carbon sequestration, Valero continues to evaluate other low-carbon opportunities, such as sustainable aviation fuel and renewable hydrogen.
The refining outlook, coupled with Valero’s low-carbon fuels strategy, should further strengthen the company’s competitive advantage and drive long-term value for stockholders.
Valero’s culture and legacy of giving back here in San Antonio is certainly demonstrated through the Valero Texas Open and Valero Benefit for Children. The accomplishments since Valero became the tournament’s title sponsor in 2002 are numerous, such as elevating the tournament’s stature and showcasing San Antonio to a broader national audience, providing a reason for golf enthusiasts and tourists to visit the city and becoming a leader in charitable fundraising every year on the PGA Tour. All of this has created a tournament that gives San Antonio and all of Texas a platform to rally around.
None of this would be possible without the unwavering support of Valero’s sponsors and business partners, spectators, volunteers and an outstanding field of PGA Tour players. It was a centennial celebration to remember, with a record $22 million raised for charities through the incredible generosity of Valero’s partners. This brings the total amount raised to $209 million, with $205 million of that raised since Valero became the title sponsor. These funds support hundreds of charities and touch thousands of lives across the U.S. Imagine what a difference this makes.
