CST Brands, Inc. was an American publicly traded fuel and convenience retailer . It was the second-largest of its kind in North America, with 1,900 outlets in the U.S. and Canada. CST Brands had 2013 revenues of about $ 12.8 billion and made approximately $ 360 million in EBITDA . Stores were concentrated in the central and southwestern U.S. states and in eastern Canada. Corner Store was the firm's primary retail brand in the US and in Canada's English speaking provinces. In Canada's French speaking provinces, Dépanneur du Coin was the company's retail brand. In addition to convenience store retail sales, CST Brands also sold fuel under a number of licensed energy brands such as Valero , Exxon , Shell , and Phillips 66 .
58-493: The company was created on May 1, 2013, when Valero Energy Corporation decided to spin off its retail operations in an effort to focus on refining. On August 6, 2014, CST Brands agreed to buy Lehigh Gas GP LLC, the general partner of Lehigh Gas Partners LP (LGP), from Lehigh Gas Corp in a cash and stock deal. CST Brands also acquired the associated Incentive Distribution Rights of LGP. The deal closed on October 1, 2014 and LGP changed its name to CrossAmerica Partners LP, trading under
116-501: A discount gasoline brand to becoming a premium brand. As part of the shift, Valero began to rebrand its Ultramar, Beacon, Total, and Diamond Shamrock stations to the Valero brand. The Beacon and Shamrock brands are used by retailers as a low-cost alternative to the premium Valero brand. The Shamrock brand is based on the former Shamrock Oil and Gas Company, which merged with Diamond Alkali in 1967 to form Diamond Shamrock, thus declaring
174-580: A 14,000-barrel (2,200 m )-per-day aviation fuel business, and a network of more than 1,000 Texaco-branded wholesale sites. Valero has continued with the Texaco brand in these markets. Valero retails gasoline branded as Valero, Shamrock, Diamond Shamrock, Beacon, and Total, the last under license from TotalEnergies . While this arm of the company was the most visible to the public, it was, according to CEO Bill Greehey, "a very small part of [Valero's] operations". Valero attempted to shift its focus from being
232-519: A Corner Store - one Valero gas station in Euless, Texas east of Fort Worth was co-branded with a 7-Eleven convenience store. On July 31, 2012, during the 2nd Quarter Earnings Conference Call, Valero announced intentions to separate the retail business from the remainder of the company. CFO Mike Ciskowski stated "We believe the separation of our retail business by way of a tax-efficient distribution to our shareholders will create operational flexibility within
290-591: A day. Following the 2016 purchase of CST by Couche-Tard, most of its Ultramar operations were acquired by Parkland Corporation ; 36 locations were retained by Couche-Tard, and converted to Irving stations with Circle K. CST employed approximately 12,000 people throughout the Southwestern United States and Eastern Canada, including over 400 at the CST Headquarters in San Antonio, Texas and over 250 at
348-424: A fuel source. One major drawback with corn ethanol, is the energy returned on energy invested ( EROI ), meaning the energy outputted in comparison to the energy required to output that energy. Compared to oil, with an 11:1 EROI , corn ethanol has a much lower EROI of 1.5:1, which, in turn, also provides less mileage per gallon compared to gasoline. In the future, as technology advances and oil becomes less abundant,
406-825: A full year. Critics argued that because that had happened only three times over the last 40 years, the proposition would have had the practical effect of repealing the law. Valero owns two oil refineries in California. The Benicia Refinery is located on the Carquinez Strait , a tributary of the San Francisco Bay and the Wilmington Refinery, located 23 miles (37 km) south from downtown Los Angeles. The company's refineries in Wilmington (CA), Benicia (CA), and Port Arthur (TX) were noted for processing crude oil from
464-430: A highly competitive industry which included 7-Eleven , Casey's General Stores , The Pantry and future parent Couche-Tard, among the five largest chains. In 2014, CST had the third-largest chain with circa 1,900 sites. Valero Energy Corporation Valero Energy Corporation is an American-based fuels producer mostly involved in manufacturing and marketing transportation fuels and other related products. It
522-675: A major European purchase from Chevron Corp. , Chevron's Pembroke Refinery in Wales together with marketing and logistical assets throughout the United Kingdom and Ireland , which include 4 pipelines, 11 terminals, an aviation fuel business, about 1,000 retail outlets, inventory and other items. In 2013, Valero spun off its retail operations into a new publicly traded company, CST Brands . Under long-term supply agreements, Valero continues to supply fuel to more than 7,000 retail locations, many of which use brand names owned by Valero. That same year,
580-668: A much greater ethanol content, require significant modifications to be made before an engine can run on the mixture without damaging the engine. Some vehicles that currently use E85 fuel, also called flex fuel , include, the Ford Focus , Dodge Durango , and Toyota Tundra , among others. The future use of corn ethanol as a main gasoline replacement is unknown. Corn ethanol has yet to be proven to be as cost effective as gasoline due to corn ethanol being much more expensive to create compared to gasoline . Corn ethanol has to go through an extensive milling process before it can be used as
638-552: A number of estimates, Valero has become a major producer of corn ethanol and renewable diesel , both low-carbon liquid transportation fuels. Valero was established on January 1, 1980, as a spinoff of Coastal States Gas Corporation 's Subsidiary, LoVaca Gathering Company. The company took over the natural gas operations of the LoVaca Gathering Company, later renamed the Valero Transmission Company. In
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#1733086043695696-574: A small barge company in Corpus Christi, Texas , in April 1981 when it purchased a stake in Saber Energy Inc. of Houston. In May 1985, Valero Refining and Marketing Company was born from Valero's subsidiary, Saber Energy Inc. In 1997, Valero merged its natural gas service business with Pacific Gas and Electric Company and spun off its refining assets to form Valero Energy Corporation. At the same time,
754-465: Is a highly inefficient use of land. A solar farm generating electricity to power an electric vehicle would power around 85 times as much distance as corn ethanol grown on the same area. The Renewable Fuels Association (RFA), the ethanol industry's lobbying group, claims that ethanol production increases the price of corn by increasing demand. The RFA claims that ethanol production has positive economic effect for US farmers, but it does not elaborate on
812-560: Is headquartered in San Antonio , Texas , United States . Throughout the United States , Canada , and the U.K. , the company owns and operates 15 refineries with a combined throughput capacity of approximately 3.2 million barrels per day, two renewable diesel plants that produce approximately 1.2 billion gallons per year, and 12 ethanol plants with a combined production capacity of 1.6 billion gallons as its subsidiaries. According to
870-418: Is processed into a highly nutritious livestock feed known as distiller's dried grains and solubles (DDGS). The carbon dioxide released from the process is used to carbonate beverages and to manufacture dry ice . In wet milling , the corn grain is separated into components by steeping in dilute sulfurous acid for 24 to 48 hours. The slurry mix then goes through a series of grinders to separate out
928-596: Is produced by ethanol fermentation and distillation . It is debatable whether the production and use of corn ethanol results in lower greenhouse gas emissions than gasoline. Approximately 45% of U.S. corn croplands are used for ethanol production. Since 2001, corn ethanol production has increased by more than several times. Out of 9.50 billions of bushels of corn produced in 2001, 0.71 billions of bushels were used to produce corn ethanol. Compared to 2018, out of 14.62 billions of bushels of corn produced, 5.60 billion bushels were used to produce corn ethanol, reported by
986-463: Is sold to the livestock industry. The heavy steep water is also sold as a feed ingredient and used as an alternative to salt in the winter months. Corn oil is also extracted and sold. Corn ethanol results in lower greenhouse gas emissions than gasoline and is fully biodegradable , unlike some fuel additives such as MTBE . However, because energy to run many U.S. distilleries comes mainly from coal plants, there has been considerable debate on
1044-498: Is the necessity for arable cropland to grow the corn for ethanol, which is then not available to grow corn for human or animal consumption . In the United States, 40% of the acreage designated for corn grain is used for corn ethanol production, of which 25% was converted to ethanol after accounting for co-products, leaving only 60% of the crop yield for human or animal consumption. Growing corn to fuel internal combustion vehicles
1102-477: Is then slurried by adding water. Enzymes are added to the mash to hydrolyze the starch into simple sugars . Ammonia is added to control the pH and as a nutrient for the yeast , which is added later. The mixture is processed at high-temperatures to reduce the bacteria levels. The mash is transferred and cooled in fermenters . Yeast are added, which ferment the sugars into ethanol and carbon dioxide . The entire process takes 40 to 50 hours, during which time
1160-668: The Benicia, California , refinery and interest in 350 Exxon-branded service stations in California , mainly in the San Francisco Bay Area . The company also began retailing gasoline under the Valero brand. In June 2001, Valero acquired two asphalt plants on the West Coast . In 2001, Valero completed its acquisition of Ultramar Diamond Shamrock . With this acquisition, the company also received ownership of Shamrock Logistics L.P., which
1218-677: The Port of Paulsboro to PBF Holdings, a wholly owned subsidiary of PBF Energy, as well. The sale concluded Valero's refinery ownership on the East Coast. Through acquisitions in 2011, Valero entered the European market while strengthening its position in the United States, by reducing costs in supplying the Atlantic coast. On August 1, 2011, Valero acquired the Pembroke Refinery from Chevron, as well as
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#17330860436951276-546: The United States Department of Energy . Overall, 94% of ethanol in the United States is produced from corn. Currently, corn ethanol is mainly used in blends with gasoline to create mixtures such as E10 , E15 , and E85 . Ethanol is mixed into more than 98% of United States gasoline to reduce air pollution. Corn ethanol is used as an oxygenate when mixed with gasoline . E10 and E15 can be used in all engines without modification. However, blends like E85, with
1334-641: The sustainability of corn ethanol in replacing fossil fuels . Additional controversy relates to the large amount of arable land required for crops and its impact on grain supply and direct and indirect land use change effects . Other issues relate to pollution , water use for irrigation and processing, energy balance , and emission intensity for the full life cycle of ethanol production. Several full life cycle studies have found that corn ethanol reduces well-to-wheel greenhouse gas emissions by up to 50 percent compared to gasoline. However, more recent research based on an analysis of data from
1392-549: The 1970s, the Coastal company faced litigation due to its inability to honor contracts to supply utilities around Texas due to a natural gas shortage. After six years, Coastal agreed to a $ 1.6 billion settlement, which included the establishment of Valero as a new company. The name Valero comes from Mission San Antonio de Valero , the original name of the mission in the Alamo . The company acquired Corpus Christi Marine Services Company,
1450-536: The Amazon region of South America, raising environmental concerns regarding the protection of the Amazon rainforest. In 2015, the Wilmington and Benicia refineries processed approximately 13,000 and 7,200 barrels of Amazonian crude oil per day, respectively. In 2022, non-profit environmental group San Francisco Baykeeper sued Valero and Amports, a shipping operator, alleging that the companies had been dumping petroleum coke (or "petcoke") from Valero's Benicia Refinery into
1508-654: The CST Regional Office in Montreal, Canada. Corner Store offered a range of products, such as snack foods, tobacco products, beverages and fresh foods, including its own brands: Fresh Choices sandwiches, salads and packaged goods; U Force energy drinks ; Cibolo Mountain coffees (the United States); Transit Cafe coffee and bakery (Canada); FC bottled sodas, and Flavors 2 Go fountain sodas. Some of its Corner Store locations also provided in-store Subway sandwich shops. Inside
1566-503: The Circle K brand. CST operated over 1,000 Corner Store convenience store locations in the United States, including Texas, Louisiana, Arkansas, Oklahoma, New Mexico, Colorado, Wyoming, Arizona and California. On November 4, 2014 it was announced that CST Brands would acquire assets of Nice N Easy Grocery Shoppes, a New York-based company with over 30 company operated stores in its network. In November 2015, CST agreed to purchase Flash Foods from
1624-742: The Jones Company, a Waycross, Georgia -based convenience chain with 164 stores with retail fuel operations in Georgia and North Florida. In Canada, CST sold Ultramar fuels through over 840 retail sites in Quebec, the Atlantic provinces and eastern Ontario. Additionally, the company is one of the largest retail distributors of home heating oil in Eastern Canada. The network includes 80 card lock sites located along natural trucking routes or industrial parks that allow trucking and commercial fleets to buy fuel 24 hours
1682-592: The San Francisco Bay. The lawsuit was settled in October 2024 for $ 2.38 million, with the companies also agreeing to site cleanup and investment in equipment to reduce spills and dust. In 2024, the Bay Area Air Quality Management District and California Air Resources Board fined Valero $ 82 million over air pollution violations following a 2019 inspection at Valero's Benicia Refinery, with
1740-610: The U.S. EPA's principles of environmental justice. Valero Energy reported Total CO2e emissions (Direct + Indirect) for the twelve months ending 31 December 2020 at 27,500 Kt (-2,000 /-6.8% y-o-y). In the past years, Valero Energy Corp. has secured contracts worth several hundred millions of dollars from the United States Defense Logistics Agency Energy (DLA Energy) through the U.S. Defense Energy Support Center (DESC) to provide fuel for various defense needs. During 2010, Valero sold its operations on
1798-538: The United States Atlantic coast. In November 2009, Valero Energy closed its operations at Delaware City. Later, Valero Energy reached an agreement to sell the assets of its Delaware City Refining and Delaware Pipeline to a Petroplus Holdings subsidiary, PBF Energy Partners LP , for approximately $ 220 million in September 2010. Shortly after the divestiture of Delaware City , the company sold its refinery at
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1856-552: The United States, 5.05 billion bushels of corn were used for ethanol production out of 14.99 billion bushels produced in 2020, according to USDA data. According to the U.S. Department of Energy's Alternative Fuels Data Center, "The increased ethanol [production] seems to have come from the increase in overall corn production and a small decrease in corn used for animal feed and other residual uses. The amount of corn used for other uses, including human consumption, has stayed fairly consistent from year to year." This does not prove there
1914-413: The United States, offer ethanol refueling for E85 vehicles. There are two main types of corn ethanol production: dry milling and wet milling , which differ in the initial grain treatment method and co-products. The vast majority (≈90%) of corn ethanol in the United States is produced by dry milling . In the dry milling process, the entire corn kernel is ground into flour , or "mash," which
1972-521: The Valero brand at 3 service stations close to its refinery in Wales, United Kingdom. In 2020, the Valero brand was introduced in Mexico and as of 2024 is the branded fuel supplier for 260 gas stations across the country. Valero issues its own private label credit cards for its stations through its credit card-only subsidiary, DSRM National Bank. The initials stand for "Diamond Shamrock Refining & Marketing",
2030-542: The business and unlock value for our shareholders." In 2013, Valero completed the spinoff of the retail operations as CST Brands . Valero no longer owns retail operations using the Diamond Shamrock, Shamrock, Beacon, Ultramar, or Total names, but Valero continues to supply fuel. Valero also supplies fuel in the United Kingdom and Ireland under the Texaco and Valero brand, and in October 2023 started test marketing of
2088-532: The company reported earnings of US$ 9.149 billion, with an annual revenue of US$ 144.766 billion. Valero Energy's shares traded at $ 130 per share, and its market capitalization was valued at over US$ 44 billion. Valero is ranked No. 40 on the Fortune 500 rankings of United States corporations by total revenue as of 2022. The Political Economy Research Institute ranks Valero 28th among U.S. corporations based on their airborne pollutant emissions. This ranking considers both
2146-605: The company started renewable diesel production at the DGD joint venture plant next to Valero’s St. Charles refinery in Louisiana. In 2021, DGD began expansion of the DGD St. Charles plant in 2019 and increased its renewable diesel capacity. In 2022, the second DGD plant, located next to Valero’s refinery in Port Arthur, Texas, began its operations. A change to the logo, store canopy and facade
2204-410: The corn germ . The remaining components of fiber, gluten , and starch are segregated using screen, hydroclonic, and centrifugal separators. The corn starch and remaining water can be fermented into ethanol through a similar process as dry milling , dried and sold as modified corn starch , or made into corn syrup . The gluten protein and steeping liquor are dried to make a corn gluten meal that
2262-477: The effect for other populations where field corn is part of the staple diet. An RFA lobby document states that "In a January 2007 statement, the USDA Chief Economist stated that farm program payments were expected to be reduced by some $ 6 billion due to the higher value of a bushel of corn. Corn production in 2009 reached over 13.2 billion bushels, and a per acre yield jumped to over 165 bushels per acre. In
2320-706: The ethanol market by acquiring 7 ethanol plants in March, and another 3 ethanol plants, purchased in December, all located in the Midwest of the United States. In 2011, Valero Energy Corporation entered into a joint venture with a subsidiary of Darling Ingredients Inc. to establish Diamond Green Diesel Holdings (DGD). This venture resulted in the construction of a renewable diesel plant adjacent to Valero's refinery in St. Charles, Louisiana. On March 11, 2011, Valero announced that it had agreed to
2378-814: The fine being the largest in the District's history. In 2020, the United States Environmental Protection Agency (EPA) announced a settlement with Valero and its subsidiaries regarding alleged Clean Air Act violations related to fuel quality standards and compliance requirements at the company's refineries and an import facilities. The related consent decree requires Valero to implement a company-wide Fuels Management System to help ensure its production complies with regulations. In 2023, an audit by Montrose Environmental concluded that Valero has taken substantial actions to address environmental and health concerns in underserved communities, aligning with
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2436-474: The first eight years of the US Renewable Fuel Standard ’s implementation suggests that corn ethanol produces more carbon emissions per unit of energy than gasoline, when factoring in fertilizer use and land use change . Ethanol-blended fuels currently in the market – whether E10 or E85 – meet stringent tailpipe emission standards. One of the main controversies involving corn ethanol production
2494-547: The fiscal year 2017, Valero Energy reported earnings of US$ 4.065 billion, with an annual revenue of US$ 93.980 billion, an increase of 24.2% over the previous fiscal cycle. Valero Energy's shares traded at over $ 67 per share, and its market capitalization was valued at over US$ 39.2 billion in November 2018. Valero is ranked No. 31 on the Fortune 500 rankings of the largest United States corporations by total revenue as of 2018. For 2023,
2552-560: The hope to replace gasoline in the future, E85 , which contains 85% ethanol , requires engine modification before an engine can last while processing a high volume of ethanol for an extended period of time. Therefore, most older and modern day vehicles would become obsolete without proper engine modifications to handle the increase in corrosiveness from the high volume of ethanol . Also, most gas stations do not offer refueling of E85 vehicles. The United States Department of Energy reports that only 3,355 gas stations, out of 168,000, across
2610-492: The marketing and logistics assets, for $ 730 million, excluding working capital, which was valued at approximately $ 1 billion. The Pembroke plant is one of the largest and most complex refineries in Western Europe with a total throughput capacity of 270,000 barrels (43,000 m ) per day and a Nelson complexity index rating of 11.8. Valero also purchased ownership interest in four major pipelines and eleven fuel terminals,
2668-420: The mash is kept cool and agitated to promote yeast activity. The mash is then transferred to distillation columns , where the ethanol is removed from the silage . The ethanol is dehydrated to about 200 proof using a molecular sieve system. A denaturant such as gasoline is added to render the product undrinkable. The product is then ready to ship to gasoline retailers or terminals. The remaining silage
2726-685: The operations of Valero's 15 petroleum refineries. The segment also encompasses the marketing of refined petroleum products and the logistics assets supporting these operations. Valero operates this segment through Diamond Green Diesel (DGD), which has two plants in the Gulf Coast region of the United States. These plants have a combined annual production capacity of about 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha. Valero's ethanol segment includes 12 plants combined production capacity of around 4.1 million gallons per day or approximately 1.6 billion gallons annually. For
2784-419: The process of milling may require less energy, resulting in an EROI closer to that of oil. Another serious problem with corn ethanol as a replacement for gasoline , is the engine damage on standard vehicles. E10 contains ten percent ethanol and is acceptable for most vehicles on the road today, while E15 contains fifteen percent ethanol and is usually prohibited for cars built before 2001. However, with
2842-400: The quantity (3.4 million pounds in 2005) and the toxicity of the emissions. In 2010, Valero was reportedly the largest financial supporter of California Proposition 23 , contributing over $ 4 million by August of that year. Proposition 23 aimed to delay the implementation of California's Global Warming Solutions Act of 2006 until the state achieved an unemployment rate of 5.5% or lower for
2900-526: The remaining divisions, which consisted of natural gas operations, merged with a wholly owned subsidiary of PG&E. In May of that year, Valero Energy acquired three refineries from Bassis Petroleum. The following year, the company expanded its operations by purchasing the Paulsboro Refinery in New Jersey from Mobil, making it the second-largest independent refiner in the U.S. In 2000, Valero purchased
2958-481: The stores, CST added 14 new items to its line of signature, private-label products, while also growing sales in Corner Store's popular, fresh-baked goods, selling over 1.2 million whoopie pies and 4.6 million kolaches in 2013. Capitalizing on the popularity of its whoopie pies, the company outfitted a food truck to introduce more fans to the sweet treats at festivals and events in the markets CST serves. CST operated in
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#17330860436953016-466: The ticker symbol "CAPL". On August 22, 2016, Alimentation Couche-Tard , parent company of Circle K , entered a merger agreement with CST to acquire over 2,000 of its locations in an all cash deal worth $ 4.4 billion (~$ 5.48 billion in 2023), including net debt assumed. The transaction officially closed on June 28, 2017. Stores under the former CST brands including Corner Store, Flash Foods, and Nice N Easy Grocery Shoppes were converted and remodeled to
3074-536: The trademark from official abandonment. The name Ultramar, while being eliminated in the United States, continued as Valero's brand name in Canada. Valero introduced its updated "Corner Store" retail concept on December 28, 2007, opening the company's first 5,500-square-foot (510 m ) prototype in western San Antonio. The Corner Store retail division, originally part of Diamond Shamrock, was absorbed into Valero's business portfolio in 2001. Not all Valero gas stations included
3132-545: The unit of Diamond Shamrock which created it before being purchased by Valero. The credit card operations are based in Amarillo, Texas , a city where Diamond Shamrock was once previously based. Corn ethanol Corn ethanol is ethanol produced from corn biomass and is the main source of ethanol fuel in the United States , mandated to be blended with gasoline in the Renewable Fuel Standard . Corn ethanol
3190-585: Was announced in April 2018. Known as "Vanguard", with various hues of blue, white, and yellow, Valero explained that applying the new design to all its stores would take several months to complete. In January 2023, Valero and Darling Ingredients Inc. announced an investment decision on a Sustainable Aviation Fuel (“SAF”) project at the Diamond Green Diesel Port Arthur plant. Valero's operations are managed through three main segments: refining, renewable diesel, and ethanol. This segment includes
3248-532: Was beginning a two-year process of converting Diamond Shamrock stations to the Valero brand. And in 2008, the company bought 72 Albertsons gas stations. In 2009, it was reported that Valero lost an average $ 1 million per day since the beginning of the year. In November of that year, the company was forced to lay off 500 employees, and subsequently began to permanently shut down its refinery in Delaware City, Delaware . In 2009, Valero Energy Corporation entered
3306-759: Was not an impact on food supplies: Since U.S. corn production doubled (approximately) between 1987 and 2018, it is probable that some cropland previously used to grow other food crops is now used to grow corn. It is also possible or probable that some marginal land has been converted or returned to agricultural use. That may have negative environmental impacts. Remnants from food production such as corn stover could be used to produce ethanol instead of food corn. Ethanol derived from sugar-beet as used in Europe or sugar-cane in Brazil has up to 80% reduction in well-to-wheel carbon dioxide . The use of cellulosic biomass to produce ethanol
3364-650: Was renamed Valero L.P. In 2006, Valero L.P. was spun off and renamed NuStar Energy . Starting in 2002, Valero has expanded its marketing to the East Coast , specifically the Northeast and Florida , using the Valero brand. By 2003, Valero completed its acquisition of El Paso Corp's refineries, pipeline system and terminal assets in Corpus Christi and South Texas. On April 25, 2005, the company purchased Premcor , Inc., for $ 8 billion. In June 2005, Valero announced that it
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