Valero Energy Corp. (NYSE:VLO)

Land

The value of land has shown a steady but modest increase over the five-year period, rising from $476 million in 2019 to $505 million in 2023. This indicates consistent acquisition or revaluation of land assets.

Crude oil processing facilities

This category exhibits a general upward trend, increasing from $31,419 million in 2019 to $34,043 million in 2023. Although there was a slight dip in 2022 compared to 2021, the overall trajectory is positive, reflecting ongoing investments or expansions in crude oil processing infrastructure.

Transportation and terminaling facilities

Values in this segment have gradually increased from $5,179 million in 2019 to $5,978 million in 2023. The growth, while moderate, is consistent, suggesting steady enhancements or maintenance of transportation and terminaling assets.

Waste and renewable feedstocks processing facilities

This item presents a notable upward trend, with a significant rise from $628 million in 2019 to $3,243 million in 2023. The sharp increase starting in 2021 indicates a strategic shift towards renewable feedstocks processing, which may reflect diversification efforts or regulatory compliance initiatives.

Corn processing facilities

Unlike other categories, corn processing facilities exhibit relative stability with minor fluctuations. The value moved from $1,201 million in 2019 to $1,069 million in 2023, showing a slight decrease overall. This could indicate reduced investment or divestment in this area.

Administrative buildings

Administrative buildings show a steady increase over the period, growing from $1,015 million in 2019 to $1,137 million in 2023. This reflects gradual investments in office and administrative infrastructure.

Finance lease right-of-use (ROU) assets

There is a strong upward trend in finance lease ROU assets, with values doubling from $944 million in 2019 to $3,062 million in 2023. This growth suggests an increasing reliance on leased assets, consistent with evolving asset management or financing strategies.

Other assets

The 'Other' category experiences steady growth from $1,701 million in 2019 to $1,942 million in 2023, indicating incremental additions or valuations in miscellaneous property, plant, and equipment components.

Construction in progress

This item peaks in 2020 at $2,399 million, followed by a declining trend to $689 million in 2023. The decrease likely reflects completion and capitalization of projects during the period, signaling a reduction in ongoing construction activities.

Property, plant, and equipment, at cost

Total cost increased steadily from $44,294 million in 2019 to $51,668 million in 2023. The continuous rise demonstrates ongoing acquisitions, improvements, or capital expenditures to expand or upgrade physical assets.

Accumulated depreciation

Accumulated depreciation grew negatively from -$15,030 million in 2019 to -$21,459 million in 2023. This consistent increase represents depreciation expense accumulation, reflecting asset aging and usage over time.

Property, plant, and equipment, net

The net value of property, plant, and equipment increased modestly from $29,264 million in 2019 to a peak of $30,978 million in 2022, followed by a slight decrease to $30,209 million in 2023. This pattern suggests that while capital investments have been made, depreciation and potential asset retirements have impacted the net asset base, resulting in a relatively stable net asset level with minor fluctuations.

Average Age Ratio

The average age ratio demonstrates a consistent upward trend over the analyzed periods, increasing from 34.3% in 2019 to 41.94% in 2023. This indicates that the property, plant, and equipment are becoming older on average relative to their estimated total useful life.

Estimated Total Useful Life

The estimated total useful life remains stable at 29 years from 2019 through 2022, with a slight reduction to 27 years in 2023. This reduction might suggest a reassessment of the asset lifespan, possibly reflecting changes in asset usage or technological obsolescence.

Estimated Age (Time Elapsed Since Purchase)

The estimated age of the assets increases progressively from 10 years in 2019 to 12 years in 2022, with a small decline to 11 years in 2023. This slight decrease in 2023 could be attributed to asset disposals or additions of newer assets.

Estimated Remaining Life

Estimated remaining life decreases from 19 years in 2019 and 2020 to 16 years by 2023, reflecting aging assets and the reduction in total useful life. This trend suggests increasing depreciation and possibly the need for future capital expenditures to maintain operational capacity.

Property, Plant, and Equipment at Cost

The total value has shown a steady increase from US$44,294 million in 2019 to US$51,668 million in 2023. This growth indicates ongoing investments or acquisitions in property, plant, and equipment over the analyzed period.

Accumulated Depreciation

Accumulated depreciation consistently rose each year, starting at US$15,030 million in 2019 and reaching US$21,459 million in 2023. The pattern reflects the company's aging assets and the periodic depreciation expense charged against these assets.

Land

The value of land increased slightly from US$476 million in 2019 to US$505 million in 2023. This relatively minor change suggests limited acquisition or disposition of land assets during the period.

Average Age Ratio

The average age ratio, representing the proportion of accumulated depreciation to the total property, plant, and equipment at cost, increased steadily from 34.3% in 2019 to 41.94% in 2023. This trend indicates an aging asset base, with a growing share of the assets nearing or having reached the end of their useful lives.

Overall Insights

The data reveals a consistent pattern of capital investment accompanied by steady depreciation. The gradual rise in accumulated depreciation and the average age ratio suggest the company is managing an increasingly mature asset portfolio, with implications for future capital expenditure requirements to maintain or upgrade operational capacity.

Property, Plant, and Equipment, at Cost

The cost of property, plant, and equipment shows a consistent increase over the five-year period. Starting at $44,294 million at the end of 2019, the value rose steadily each year, reaching $51,668 million by the end of 2023. This reflects ongoing investment or acquisition of assets.

Land

The value of land exhibits a modest but consistent upward trend from $476 million in 2019 to $505 million in 2023. The incremental increases each year are relatively small compared to the overall asset base, suggesting limited land acquisition or revaluation effects.

Depreciation Expense

Depreciation expense demonstrates an upward trend, increasing from $1,500 million in 2019 to $1,900 million in 2023. The expense rose steadily with a notable acceleration between 2022 and 2023, which may indicate either accelerated depreciation methods, asset aging, or increased depreciation due to new asset additions.

Estimated Total Useful Life

The estimated total useful life remained constant at 29 years from 2019 through 2022. However, in 2023, it decreased to 27 years. This reduction suggests a reassessment of asset lifespan, potentially due to changing operational conditions, asset usage patterns, or technological obsolescence.

The accumulated depreciation for the property, plant, and equipment shows a consistent and steady increase over the five-year period analyzed. Starting at US$ 15,030 million at the end of 2019, it rose each year, reaching US$ 21,459 million by the end of 2023. This indicates ongoing depreciation of assets, likely due to continued usage and aging of the company's capital assets.

Depreciation expense, which reflects the annual charge for asset depreciation, also exhibits an overall upward trend. From US$ 1,500 million in 2019, it grew incrementally to US$ 1,900 million by 2023, with a notable stabilization between 2021 and 2022 where the expense remained constant at US$ 1,700 million. The increase in depreciation expense in 2023 suggests either newer assets being depreciated on a different schedule or adjustments in the depreciation policy or asset base.

The time elapsed since purchase shows minimal variation, remaining around 10 to 12 years throughout the period. This stable range suggests the asset base's average age is relatively consistent, with a slight reduction from 12 years in 2022 to 11 years in 2023. This slight decrease may imply the acquisition of newer assets or replacement of older ones, aligning with the increase in depreciation expense.

Summary of Trends

Accumulated depreciation consistently increased, reflecting ongoing asset consumption over time.

Depreciation expense rose gradually, peaking in 2023 after a period of stability, indicating potential changes in asset additions or depreciation methods.

Average asset age remained relatively stable, with a minor reduction in the last year, possibly due to new asset acquisitions.

Property, Plant, and Equipment, Net

The net value of property, plant, and equipment showed a moderate increase from 2019 through 2022, rising from approximately 29,264 million US dollars to 30,978 million US dollars. However, in 2023, there was a slight decline to 30,209 million US dollars. This pattern suggests stabilization followed by a modest reduction, which may indicate asset disposals, impairments, or slower capital investment in the most recent year.

Land

The book value of land demonstrated a consistent, gradual increase over the five-year period, moving from 476 million US dollars in 2019 to 505 million US dollars in 2023. This steady growth indicates ongoing acquisitions or revaluations contributing to an expanding land base.

Depreciation Expense

Depreciation expense exhibited a rising trend over the analyzed timeframe. Starting at 1,500 million US dollars in 2019, it increased annually to reach 1,900 million US dollars in 2023, with a notable jump in the final year. The increased depreciation may reflect additions to depreciable assets, changes in depreciation methods, or asset aging effects.

Estimated Remaining Life

The estimated remaining life of property, plant, and equipment decreased gradually from 19 years in 2019 and 2020 to 16 years in 2023. This reduction suggests that the asset base is aging, or the company is revising its useful life estimates downward, which aligns with the observed increase in depreciation expense.