Valero Energy (VLO) risk factors, FY2025 10-K

Valero Energy's FY2025 10-K, filed Feb 25, 2026, lists 24 risk factors in 3 groups. Against the prior year's 25: 7 new, 8 dropped, 12 substantially reworded.

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Risk factors listed
243 groups
New this year
7vs 25 last year
Dropped
8since the prior 10-K
Substantially reworded
12of those kept
Section length
10k wordsItem 1A

What the changes say

  • Valero highlights rising pressures from sustainability advocacy groups, regulatory developments in low-carbon fuels, and operational risks across international and domestic facilities.

What changed since the prior 10-K

New

  • NewBUSINESS, INDUSTRY, AND OPERATIONS RISKS

    and other countries. In turn, the demand for and consumption of our products, and also our revenues, margins, growth prospects, and capital allocation decisions have been and could again be negatively impacted

    Profitability depends on purchasing discounted crude oil feedstocks, and past or future declines in these price differentials negatively impact operations.

  • NewBUSINESS, INDUSTRY, AND OPERATIONS RISKS

    Differences in competitors’ businesses or resources may at times provide them a competitive advantage

    Competitors with integrated crude oil production or retail networks have advantages during periods of reduced product margins or feedstock disruptions.

  • NewBUSINESS, INDUSTRY, AND OPERATIONS RISKS

    Our pursuit of capital and other strategic projects and actions exposes us to various risks

    Low-carbon and fossil fuel infrastructure projects face delays, inflation, and opposition that threaten expected returns.

  • NewBUSINESS, INDUSTRY, AND OPERATIONS RISKS

    costs and charges related thereto, a decreased market outlook, and/or impacts under our capital allocation framework

    Strategic portfolio optimization actions, such as those in California, carry risks of unforeseen delays, costs, and litigation.

  • NewBUSINESS, INDUSTRY, AND OPERATIONS RISKS

    We are subject to risks arising from climate- and other sustainability-related advocacy and pressure

    Climate advocacy campaigns and non-standardized GHG reporting frameworks subject the company to increased negative publicity and stockholder pressure.

  • NewCYBERSECURITY AND PRIVACY RELATED RISKS

    We do not maintain insurance coverage that fully protects against all potential losses and liabilities

    Insurance coverage does not fully protect against all industry hazards, including explosions, fires, toxic emissions, and earthquakes.

  • NewCYBERSECURITY AND PRIVACY RELATED RISKS

    We are exposed to risks arising from various labor-related matters

    Collective bargaining agreements cover employees at several refineries and terminals, exposing operations to potential strikes and labor disputes.

Dropped

  • DroppedRisks Related to Our Business, Industry, and Operations

    We are subject to risks arising from sentiment towards climate-related matters, fossil fuels, GHG emissions, and other sustainability-related matters

  • DroppedRisks Related to Our Business, Industry, and Operations

    exposure to political, geographic, regulatory, tax, and economic risks associated with international sourcing of supplies. Any such disruption to DGD’s feedstock supply could adversely impact its and our business, financial condition, results of operations, and liquidity

  • DroppedRisks Related to Our Business, Industry, and Operations

    Competitors that produce their own supply of feedstocks, own their own retail sites, operate in different regions, or have greater financial resources may have a competitive advantage

    Sentiment towards climate-related matters, fossil fuels, and sustainability initiatives.

  • DroppedRisks Related to Our Business, Industry, and Operations

    Large capital and other strategic projects can take many years to complete, and the legal regulatory, and political environments or other market conditions may change or deteriorate over time

  • DroppedLegal, Government, and Regulatory Risks

    and other U.S. states have also announced, adopted, or are considering, restrictions on the sale of new internal combustion engine vehicles, stricter tailpipe emissions standards, and/or limitations on or penalties on the use of certain petroleum-based products and biofuel feedstocks

  • DroppedCybersecurity and Privacy Related Risks

    We are subject to risks arising from severe weather events

    Weather and government policy risks affecting DGD and Ethanol corn feedstock supply.

  • DroppedCybersecurity and Privacy Related Risks

    Our business may be negatively affected by work stoppages, slowdowns, or strikes, as well as by new legislation or an inability to attract and retain sufficient labor, and increased costs related thereto

  • DroppedCybersecurity and Privacy Related Risks

    Our ability to adequately insure losses or liabilities arising from various hazards exposes us to risks

Reworded

  • 96% rewrittenLEGAL, GOVERNMENT, AND REGULATORY RISKS

    We are subject to risks arising from legal, regulatory, and political developments regarding climate- and environmental-related matters, or that are adverse to or restrict refining and marketing operations

    Expanded to include specific mentions of stricter tailpipe emissions standards and limitations on biofuel feedstocks.

    Was: We are subject to risks arising from legal, regulatory, and political developments regarding climate-related matters, GHG emissions, and the environment, or that are adverse to or restrict refining and marketing operations

  • 78% rewrittenLEGAL, GOVERNMENT, AND REGULATORY RISKS

    We are subject to risks arising from the Renewable and Low-Carbon Fuel Programs, and other regulations, policies, international certifications, and standards impacting low-carbon fuels

    Added the European Union to sales regions and incorporated details on the EPA's proposed RFS Set II rules for 2026 and 2027.

  • 77% rewrittenBUSINESS, INDUSTRY, AND OPERATIONS RISKS

    The availability and prices of our feedstocks and other critical supplies expose us to risks

    Added specific risks regarding contract terminations and the potential inability to secure alternative supplies at favorable prices.

    Was: We are subject to risks related to the costs and availability of our feedstocks and other critical supplies

  • 77% rewrittenBUSINESS, INDUSTRY, AND OPERATIONS RISKS

    We are subject to risks arising from our operations and business activities outside of the U.S

    Expanded international risks to explicitly include anti-corruption, anti-bribery, tariffs, duties, sanctions, and export controls.

    Was: We are subject to risks arising from our refining and marketing operations outside of the U.S

  • 63% rewrittenLEGAL, GOVERNMENT, AND REGULATORY RISKS

    We are subject to risks arising from litigation, government action, and mandatory disclosure rules related to climate- and other sustainability-related matters, or aimed at the fossil fuel industry

    Included non-governmental organizations as plaintiffs initiating lawsuits against fossil fuel companies alongside governments and private parties.

    Was: We are subject to risks arising from litigation, government action, and mandatory disclosure rules related to climate-related and other sustainability-related matters, or aimed at the fossil fuel industry

  • 53% rewrittenBUSINESS, INDUSTRY, AND OPERATIONS RISKS

    Our financial results are affected by volatile margins, which are dependent upon factors beyond our control, including the prices we pay to acquire feedstocks and the market prices at which we can sell our products

    Refined wording regarding feedstock acquisitions and product sales without altering core margin volatility concepts.

    Was: Our financial results are affected by volatile margins, which are dependent upon factors beyond our control, including the price of feedstocks and the market price at which we can sell our products

  • 53% rewrittenBUSINESS, INDUSTRY, AND OPERATIONS RISKS

    We are subject to risks arising from the availability and prices of natural gas, electricity, and water

    Added water availability and pricing as an operational cost alongside natural gas and electricity.

    Was: We are subject to risks arising from the cost and availability of natural gas and electricity

  • 49% rewrittenBUSINESS, INDUSTRY, AND OPERATIONS RISKS

    Industry, market, and other developments could decrease the demand for our products

    Added foreign dumping as a potential driver for reduced demand alongside government mandates and incentives.

  • 37% rewrittenCYBERSECURITY AND PRIVACY RELATED RISKS

    Data privacy and security issues expose us to increased liability and operational changes and costs

    Was: Increasing legal and regulatory focus on data privacy and security issues could expose us to increased liability and operational changes and costs

  • 36% rewrittenLEGAL, GOVERNMENT, AND REGULATORY RISKS

    Applicable environmental, health, and safety laws and regulations expose us to various other risks

    Was: Other applicable environmental, health, and safety laws and regulations expose us to various risks

  • 26% rewrittenCYBERSECURITY AND PRIVACY RELATED RISKS

    We are subject to risks arising from a significant breach of our information systems

  • 21% rewrittenBUSINESS, INDUSTRY, AND OPERATIONS RISKS

    We are subject to risks arising from an interruption in any of our refineries or plants

All 24 risk factors

Headings as the filing states them, in filing order.

BUSINESS, INDUSTRY, AND OPERATIONS RISKS

  1. 01Our financial results are affected by volatile margins, which are dependent upon factors beyond our control, including the prices we pay to acquire feedstocks and the market prices at which we can sell our products53% rewritten
  2. 02and other countries. In turn, the demand for and consumption of our products, and also our revenues, margins, growth prospects, and capital allocation decisions have been and could again be negatively impactedNew
  3. 03We are subject to risks arising from the availability and prices of natural gas, electricity, and water53% rewritten
  4. 04The availability and prices of our feedstocks and other critical supplies expose us to risks77% rewritten
  5. 05We are subject to risks arising from our operations and business activities outside of the U.S77% rewritten
  6. 06We are subject to risks arising from transportation and logistics disruptions and availability
  7. 07Differences in competitors’ businesses or resources may at times provide them a competitive advantageNew
  8. 08We are subject to risks arising from an interruption in any of our refineries or plants21% rewritten
  9. 09Our pursuit of capital and other strategic projects and actions exposes us to various risksNew
  10. 10costs and charges related thereto, a decreased market outlook, and/or impacts under our capital allocation frameworkNew
  11. 11Our investments in joint ventures and other entities limit our ability to manage risk
  12. 12Industry, market, and other developments could decrease the demand for our products49% rewritten
  13. 13We are subject to risks arising from climate- and other sustainability-related advocacy and pressureNew
  14. 14We may incur losses and additional costs as a result of our hedging transactions

LEGAL, GOVERNMENT, AND REGULATORY RISKS

  1. 15We are subject to risks arising from legal, regulatory, and political developments regarding climate- and environmental-related matters, or that are adverse to or restrict refining and marketing operations96% rewritten
  2. 16We are subject to risks arising from the Renewable and Low-Carbon Fuel Programs, and other regulations, policies, international certifications, and standards impacting low-carbon fuels78% rewritten
  3. 17Applicable environmental, health, and safety laws and regulations expose us to various other risks36% rewritten
  4. 18We are subject to risks arising from litigation, government action, and mandatory disclosure rules related to climate- and other sustainability-related matters, or aimed at the fossil fuel industry63% rewritten
  5. 19We are subject to risks arising from compliance with and changes in tax laws

CYBERSECURITY AND PRIVACY RELATED RISKS

  1. 20We are subject to risks arising from a significant breach of our information systems26% rewritten
  2. 21Data privacy and security issues expose us to increased liability and operational changes and costs37% rewritten
  3. 22Uncertainty and illiquidity in financial markets, or changes in our credit profile or ratings, can adversely affect our ability to obtain credit and capital, increase our costs, and limit our flexibility
  4. 23We do not maintain insurance coverage that fully protects against all potential losses and liabilitiesNew
  5. 24We are exposed to risks arising from various labor-related mattersNew

Other Valero Energy 10-Ks

  • FY2024 10-K risk factors
    25 risks

    Valero faces major financial risks from commodity price volatility, EV adoption, climate regulations, and operational plant interruptions.

    Filed Feb 26, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.