Excellence Refined - 30 Years - Valero

of 790,000 BPD more throughput capacity to its system
(3.3 million BPD companywide).
On July 14, 2005, the company found itself back at the
place where it all began – the New York Stock Exchange
to celebrate its 25 th Anniversary. But this time, Valero was
no industry youngster on uneasy legs. Valero had become
the continent’s largest independent refining company,
with strategic know-how to enjoy the “Golden Age” of
refining but a grounded perspective on an ever-changing
marketplace.
In 2003, Valero made a purchase that would single-handedly prove its ability
to turn an industry poor performer into a profitable, community-focused plant.
The St. Charles Refinery has become a source of pride in southern Louisiana.
embracing the company’s volunteer spirit. In lieu of a
United Way on the island, employees began an “Aruba
Way” campaign and gave more than $292,000 (with
company match) to worthy community groups on the
island. In the first year alone, Valero also invested $133
million in environmental improvements; committed
another $900 million in capital improvements over the
next five years; contributed $500,000 to needy nonprofit
groups; formed a Volunteer Council that worked more
than 5,000 volunteer hours in its first year; initiated a
scholarship program for the children of employees; and
provided enhanced benefits and employee programs to
the work force.
Premcor Deal Delivers
In 2005, Bill Greehey made the decision to retire again
as CEO but remain as company chairman. Bill Klesse
assumed the post on January 1, 2006, with a challenging
year ahead of him and gratitude for the work it took
to get the company where it was. “All of us at Valero
thank Bill for his leadership and commitment to our
success over the years,” Klesse wrote in his address to
shareholders that year. The future was uncertain, but
Klesse thanked his employees, shareholders and executive
team for their faith and investment in an outstanding
company. “In today’s rapidly changing world, companies
need every advantage to compete and succeed,” he said
in 2006. “At Valero, we have worked hard to recruit
employees, develop strategies and acquire assets
that … make us a world-class competitor.” While previous
leadership had helped the company grow, a new CEO
would help the company grow up.
In celebration of Valero’s remarkable rise, then Chairman and CEO Bill Greehey
rings the closing bell of the New York Stock Exchange on July 14, 2005 – 25
years after launching a company that no one expected to survive.
In April 2005, Valero surprised the industry and the
financial world yet again when it announced its largest
acquisition in company history – a $6.1 billion (plus debt
assumption) purchase of Premcor Inc. The Wall Street
Journal heralded the purchase in a front-page story, with
the headline: “Valero Energy to Buy Premcor as Refining
Sector Consolidates.” The closing date came sooner than
expected: September 1, 2005. Valero welcomed four
more sites to the fold – Port Arthur, Texas; Memphis,
Tenn; Delaware City, Del.; and Lima, Ohio – for a total
Strategy for Success
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