Financial Analysis

5. COMMITMENTS AND CONTINGENCIES Port Arthur Refinery Fire On March 23, 2026, our Port Arthur Refinery experienced a fire in one of the refinerys distillate hydrotreater units that prompted a full shut-down of the refinery. The refinery resumed operations in April 2026 at reduced throughput rates and returned to normal throughput rates during the second quarter. We have completed our assessment of the damages and efforts to complete necessary repairs and replacements are in progress. We expect that a substantial portion of the cost of repairs and capital expenditures in 2026 resulting from the incident will be covered by insurance, subject to our self-insured retention. Insurance proceeds may be received in periods different from those in which the related repair costs or capital expenditures are incurred. Uncertainties remain with respect to the ultimate outcomes from this incident and the resulting impact on our financial position, results of operations, and cash flows. During the three and six months ended June 30, 2026, we recorded an insurance recovery receivable of $78 million to offset losses that we believe are probable of recovery. Any insurance recoveries attributable to property damage in excess of recognized losses represent a gain contingency and will be recognized when realized or realizable. No insurance proceeds were received during the three and six months ended June 30, 2026. In addition, during the three and six months ended June 30, 2026, we incurred $15 m …

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4. DEBT Public Debt On March 10, 2026, we issued $850 million of 5.150 percent Senior Notes due March 10, 2036. Proceeds from this debt issuance totaled $850 million before deducting the underwriting discount and other debt issuance costs. In July 2026, we repaid the $100 million outstanding principal balance of our 7.65 percent Debentures that matured on July 1, 2026. In February 2025, we issued $650 million of 5.150 percent Senior Notes due February 15, 2030. Proceeds from this debt issuance totaled $649 million before deducting the underwriting discount and other debt issuance costs. We used a portion of the net proceeds to repay the $189 million outstanding principal balance of our 3.65 percent Senior Notes that matured on March 15, 2025 and the $251 million outstanding principal balance of our 2.850 percent Senior Notes that matured on April 15, 2025. Credit Facilities We had outstanding borrowings, letters of credit issued, and availability under our credit facilities as follows (in millions): June 30, 2026 Facility Amount Maturity Date Outstanding Borrowings Letters of Credit Issued (a) Availability Committed facilities: Valero Revolver $ 4,000 October 2030 $ $ 2 $ 3,998 Accounts receivable sales facility (b) 1,300 July 2026 n/a 1,300 Committed facilities of VIEs (c): DGD Revolver (d) 400 February 2029 143 257 DGD Loan Agreement (e) 100 June 2029 n/a 100 IEnova Revolver (f) 1,000 February 2028 2 n/a 998 Uncommitted facilities: Letter of credit facilities n/a n/a n/a 6 …

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12. FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements The following tables present information (in millions) about our assets and liabilities recognized at their fair values in our balance sheets categorized according to the fair value hierarchy of the inputs utilized by us to determine the fair values as of June 30, 2026 and December 31, 2025. We have elected to offset the fair value amounts recognized for multiple similar derivative contracts executed with the same counterparty, including any related cash collateral assets or obligations as shown below; however, fair value amounts by hierarchy level are presented in the following tables on a gross basis. We have no derivative contracts that are subject to master netting arrangements that are reflected gross in our balance sheets. June 30, 2026 Total Gross Fair Value Effect of Counter- party Netting Effect of Cash Collateral Netting Net Carrying Value on Balance Sheet Cash Collateral Paid or Received Not Offset Fair Value Hierarchy Level 1 Level 2 Level 3 Assets Commodity derivative contracts $ 2,182 $ $ $ 2,182 $ (2,114) $ (25) $ 43 $ Physical purchase contracts 2 2 n/a n/a 2 n/a Clean fuel production credits 157 157 n/a n/a 157 n/a Investments of certain benefit plans 94 4 98 n/a n/a 98 n/a Investments in AFS debt securities 28 28 n/a n/a 28 n/a Foreign currency contracts 5 5 n/a n/a 5 n/a Total $ 2,281 $ 30 $ 161 $ 2,472 $ (2,114) $ (25) $ 333 Liabilities Commodity derivative contracts $ 2,301 $ $ $ 2,301 $ (2,114 …

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Accounting Pronouncement Not Yet Adopted ASU 2026-02 In May 2026, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818) , which provides guidance on the accounting for environmental credit assets and related obligations. This ASU establishes recognition, measurement, presentation, and disclosure requirements for entities that generate, purchase, or receive environmental credits or have regulatory compliance obligations that may be settled with such credits. We expect to adopt this ASU effective January 1, 2028. We are currently evaluating the effect that adopting this ASU will have on our financial position, results of operations, and related disclosures.

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8. EMPLOYEE BENEFIT PLANS The components of net periodic benefit cost related to our defined benefit plans were as follows (in millions): Pension Plans Other Postretirement Benefit Plans 2026 2025 2026 2025 Three months ended June 30 Service cost $ 27 $ 27 $ 1 $ 1 Interest cost 33 34 2 3 Expected return on plan assets (57) (56) Amortization of: Net actuarial gain (2) (2) (1) (2) Prior service cost 1 1 Settlement loss 2 Net periodic benefit cost $ 2 $ 6 $ 2 $ 2 Six months ended June 30 Service cost $ 54 $ 54 $ 2 $ 2 Interest cost 65 68 5 6 Expected return on plan assets (115) (111) Amortization of: Net actuarial gain (4) (4) (3) (4) Prior service cost 3 3 Settlement loss 1 3 Net periodic benefit cost $ 4 $ 13 $ 4 $ 4 The components of net periodic benefit cost other than the service cost component (i.e., the non-service cost components) are included in other income, net. …

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10. REVENUES AND SEGMENT INFORMATION Revenue from Contracts with Customers Disaggregation of Revenue Revenue is presented in the table below under Segment Information disaggregated by product because this is the level of disaggregation that management has determined to be beneficial to users of our financial statements. Contract Balances Contract balances were as follows (in millions): June 30, 2026 December 31, 2025 Receivables from contracts with customers, included in receivables, net $ 8,112 $ 6,233 Contract liabilities, included in accrued expenses 102 60 Remaining Performance Obligations We have spot and term contracts with customers, the majority of which are spot contracts with no remaining performance obligations. We do not disclose remaining performance obligations for contracts that have terms of one year or less. The transaction price for our remaining term contracts includes a fixed component and variable consideration (i.e., a commodity price), both of which are allocated entirely to a wholly unsatisfied promise to transfer a distinct good that forms part of a single performance obligation. The fixed component is not material and the variable consideration is highly uncertain. Therefore, as of June 30, 2026, we have not disclosed the aggregate amount of the transaction price allocated to our remaining performance obligations. See Note 2 for additional information regarding contractual obligations related to our Benicia Refinery. Segment Information We have three …

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6. EQUITY Treasury Stock We purchase shares of our outstanding common stock as authorized by our board of directors (Board), including under share purchase programs (described in the table below) and with respect to our employee stock-based compensation plans. We purchased for treasury 9,011,171 shares and 2,567,930 shares for the three months ended June 30, 2026 and 2025, respectively, and 11,338,194 shares and 4,642,535 shares for the six months ended June 30, 2026 and 2025, respectively. Our Board authorized us to purchase shares of our outstanding common stock under various programs with no expiration dates as follows (in millions): Program Name Authorization Date Total Cost Authorized Completion of Authorized Share Purchases Remaining Available for Purchase as of June 30, 2026 September 2024 Program September 19, 2024 $ 2,500 Second quarter of 2026 $ February 2026 Program February 25, 2026 2,500 n/a 1,422 On July 16, 2026, our Board authorized us to purchase shares of our outstanding common stock for a total cost of up to $5.0 billion with no expiration date, which is in addition to the amount remaining under the February 2026 Program. Common Stock Dividends On July 16, 2026, our Board declared a quarterly cash dividend of $1.20 per common share payable on August 31, 2026 to holders of record at the close of business on July 31, 2026. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component, net of tax, were as follows (in million …

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