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VALERO ENERGY CORP/TX

8-K

06/20/2005



NO TITLE









Delaware 1-13175 74-1828067

(State or other jurisdiction (Commission File Number) (IRS Employer

of incorporation) Identification No.)



One Valero Way

San Antonio, Texas 78,249

(Address of principal executive offices) (Zip Code)



Registrant s telephone number, including

area code: ( 210) 345-2000





____________________________

Created by Morningstar Document Research.

http://documentresearch.morningstar.com/

VALERO ENERGY CORP/TX

8-K

06/20/2005



NO TITLE









VALERO ENERGY CORPORATION





Date: June 20, 2005 By: /s/ Jay D. Browning

Jay D. Browning

Vice President and Secretary







____________________________

Created by Morningstar Document Research.

http://documentresearch.morningstar.com/

VALERO ENERGY CORP/TX

8-K

06/20/2005



NO TITLE









[LOGO] [LOGO] [LOGO] [LOGO] [LOGO] [LOGO] [LOGO]

Houston Paulsboro Benicia Corpus Christi Ardmore St. Charles Aruba

Krotz Springs (East) Denver

Texas City McKee

Quebec

Three Rivers

Wilmington





____________________________

Created by Morningstar Document Research.

http://documentresearch.morningstar.com/

[LOGO]

Delaware City

Lima

Memphis

Port Arthur

VALERO ENERGY CORP/TX

8-K

06/20/2005



NO TITLE









2006 Earnings Per Share 2006 Free Cash Flow ($MM)



[CHART] [CHART]



2006 Free Cash Flow / Debt 2006 Year-End Net Debt / Capitalization



[CHART] [CHART]





____________________________

Created by Morningstar Document Research.

http://documentresearch.morningstar.com/

VALERO ENERGY CORP/TX

8-K

06/20/2005



NO TITLE









Estimated Quality of Reserves (2005) Estimated World Crude Demand by

Quality Type (2005)



[CHART] [CHART]



Source: Oil & Gas Journal, Company Information





____________________________

Created by Morningstar Document Research.

http://documentresearch.morningstar.com/

VALERO ENERGY CORP/TX

8-K

06/20/2005



NO TITLE









PADD I % of

PADD

Sunoco 655,000 #### %

ConocoPhillips 423,000 #### %

Valero - Premcor 341,000 #### %

Premcor 175,000 #### %

Valero 166,000 #### %

United Refining 66,700 4.20 %

Total PADD I 1,574,000 *





____________________________

Created by Morningstar Document Research.

http://documentresearch.morningstar.com/

VALERO ENERGY CORP/TX

8-K

06/20/2005



NO TITLE









PADD II % of

PADD

MAP 631,000 #### %

BP 546,250 #### %

ConocoPhillips 493,000 #### %

Valero - Premcor 431,750 #### %

Premcor 346,750 9.90 %

Flint Hills 257,213 7.40 %

Valero 85,000 2.40 %

Total PADD II 3,492,613





____________________________

Created by Morningstar Document Research.

http://documentresearch.morningstar.com/

VALERO ENERGY CORP/TX

8-K

06/20/2005



NO TITLE









PADD III % of

PADD

ExxonMobil 1,586,000 #### %

Valero - Premcor 1,239,000 #### %

Royal Dutch Shell 1,203,700 #### %

Valero 989,000 #### %

ConocoPhillips 851,700 #### %

CITGO 575,064 7.10 %

Premcor 250,000 3.10 %

Total PADD III 8,052,965





____________________________

Created by Morningstar Document Research.

http://documentresearch.morningstar.com/

VALERO ENERGY CORP/TX

8-K

06/20/2005



NO TITLE









PADD IV % of

PADD

Sinclair 94,500 #### %

Suncor Energy 60,000 #### %

ExxonMobil 60,000 #### %

Tesoro 60,000 #### %

ConocoPhillips 58,000 9.80 %

Valero - Premcor 28,000 4.70 %

Valero 28,000 4.70 %

Premcor 0.00 %

Total PADD IV 590,700





____________________________

Created by Morningstar Document Research.

http://documentresearch.morningstar.com/

VALERO ENERGY CORP/TX

8-K

06/20/2005



NO TITLE









PADD V % of

PADD

ChevronTexaco 539,000 #### %

BP 496,900 #### %

Tesoro 441,200 #### %

Royal Dutch Shell 406,200 #### %

ConocoPhillips 337,700 #### %

Valero - Premcor 217,500 7.30 %

Valero 217,500 7.30 %

Premcor 0.00 %

Total PADD V 2,999,600





____________________________

Created by Morningstar Document Research.

http://documentresearch.morningstar.com/

VALERO ENERGY CORP/TX

8-K

06/20/2005



NO TITLE









($ per barrel) 2004.00 2005.00 2006.00





WTI 41.45 53.15 52.00

USGC Gas Crack 7.69 6.91 7.50

USGC High Sulfur Heat Crack 3.95 7.46 8.00

Arab Medium crude vs. WTI (6.36) (9.06) (8.25)

Maya crude vs. WTI (11.47) (16.44) (15.00)





____________________________

Created by Morningstar Document Research.

http://documentresearch.morningstar.com/

Mid-Cycle

01- 05 Avg.



35.55

5.87

3.73

(5.60)

(9.78)

VALERO ENERGY CORP/TX

8-K

06/20/2005



NO TITLE









Synergies and Other Savings/Improvements $MM/year



Corporate SG&A Savings $70





Incentive Compensation $60





Crude Financing Cost $15





Strategic Sourcing - Refineries $15



Crude Supply Savings $15





Coker/FCC/Gasifier Reliability Delaware $100

City





Delaware City integration with Valero $10









Memphis FCC Revamp/ Discounted crude $50









Memphis Integration with Krotz Springs $5





Energy Conservation - All Refineries $10





Total achievable in 2007 $350





____________________________

Created by Morningstar Document Research.

http://documentresearch.morningstar.com/

Comments



Headquarters and other administrative

expenses



Premcor vs. Valero bonus, stock option

expense



Letter of credit savings, Morgan Stanley

financing facility



Catalyst, chemicals, operating supplies



Cargo sharing & flexibility - Delaware

City & Port Arthur



Improved rates, feedstock optimization

(Gasifier from 1200 to 1800 st/d, coker

from 38-48 Mbpd, slurry feed to coker, oxygen

enrichment of FCC, heavier crude slate)

Isobutane, propylene, benzene production

(utilize spare Butamer capacity for Paulsboro

isobutane, spare extraction capacity

for Quebec benzene concentrate, propylene

recovery)

Catalyst cooler and oxygen enrichment

improves refinery utilization (FCC expansion

from 68 to 78 Mbpd, better utilization of

crude and downstream capacity - crude from

165 to 180 Mbpd; high-TAN crude slate)



Process Krotz Springs high sulfur distillate

at Memphis



Miscellaneous projects utilizing Valero

best practices.


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