瓦萊羅能源 (VLO) 2002 Q2 法說會逐字稿

Good afternoon.

午安.

My name is Brian, and I will be your conference facilitator today.

我叫布萊恩，今天我將擔任你們的會議主持人。

At this time, I would like to welcome everyone to the Valero Energy Corporation, second quarter earnings release conference call.

此時此刻，我歡迎大家參加瓦萊羅能源公司第二季財報電話會議。

All lines have been placed on mute to prevent any background noise.

所有線路均已靜音，以防止任何背景噪音。

After the speaker's remarks, there will be a question and answer period.

演講者發言結束後，將進入問答環節。

If you would like to ask a question during this time, simply press star, then the number 1 on your telephone keypad.

如果您想在此期間提問，只需按星號，然後按電話鍵盤上的數字 1 即可。

If you would like to withdraw your question, press the pound key.

如果您想撤回問題，請按井號鍵。

I would now like to turn the call over to Mr. Lee Bailey, VP of Investor Relations.

我現在想將電話轉給投資者關係副總裁 Lee Bailey 先生。

Mr. Bailey, you may begin.

貝利先生，您可以開始了。

Thank you, Brian.

謝謝你，布萊恩。

Hello, everyone, and welcome to Valero's second quarter earnings conference call.

大家好，歡迎參加瓦萊羅第二季財報電話會議。

If you haven't received the earnings release and would like to receive a copy, obtain one at our website at Valero.com.

如果您尚未收到收益報告並希望收到副本，請從我們的網站 Valero.com 取得一份。

With me today is Bill Greehey, Valero's Chairman and Chief Executive Officer, and other members of Valero's senior management team.

今天與我在一起的還有 Valero 董事長兼執行長 Bill Greehey 以及 Valero 高階管理團隊的其他成員。

Before I turn it over to Bill, I would like to draw your attention to the forward-looking statement disclaimer in the press release.

在我將其交給比爾之前，我想提請您注意新聞稿中的前瞻性聲明免責聲明。

It says statements contained in the press release and company calls that state the Company's expectations or predictions for the future are forward-looking statements intended to be covered by the Securities act of 1933 and the Securities Exchange act of 1934.

該公司表示，新聞稿和公司電話會議中陳述公司對未來的期望或預測的聲明屬於前瞻性聲明，旨在受到 1933 年《證券法》和 1934 年《證券交易法》的管轄。

Factors that can cause actual results to be materially different -- with the S.E.C. Bill?

可能導致實際結果出現重大差異的因素－美國證券交易委員會 (S.E.C.)帳單？

Thank you, Lee.

謝謝你，李。

Before I talk about the second quarter, I'd like to make just a few comments about our accounting and corporate governance practices.

在談論第二季之前，我想對我們的會計和公司治理實務發表一些評論。

The New York Stock Exchange, the S.E.C. and the administration have all proposed some significant reforms dealing with the way that publicly trading companies are governed.

紐約證券交易所、S.E.C.政府都提出了一些涉及上市公司治理方式的重大改革。

I believe that these proposals will help improve the standards that public companies must abide by and ultimately restore confidence in all publicly traded companies.

我相信這些建議將有助於提高上市公司必須遵守的標準，並最終恢復對所有上市公司的信心。

Most of these proposals are already standard operating procedures at Valero.

這些建議中的大多數已經成為瓦萊羅的標準操作程序。

At Valero, we follow conservative accounting practices and are focused on the long-term profitability of our Company in safeguarding the interests of our shareholders and employees.

在瓦萊羅，我們遵循保守的會計慣例，注重公司的長期獲利能力，維護股東和員工的利益。

Our top executives also do not cash out on stock options, rather they convert the options to stock, which maintained to their alignment with the interests of our shareholders.

我們的高階主管也不會兌現股票選擇權，而是將選擇權轉換為股票，這與股東的利益一致。

Obviously, I'll personally certify our financial statements next month, as all CEOs of major corporations have been asked to do.

顯然，我將在下個月親自驗證我們的財務報表，就像所有大公司的執行長都被要求做的那樣。

Now, as you look at the information we've provided in the earnings release, what obviously jumps out at you are the comparisons to last year's second quarter results.

現在，當您查看我們在收益發布中提供的資訊時，您顯然會注意到與去年第二季業績的比較。

As you'll recall, last year, the refining industry was setting new records in terms of refine product margins for most products in nearly every region.

您還記得，去年，煉油業幾乎每個地區的大多數產品的煉油產品利潤率都創下了新紀錄。

In addition, we enjoyed some of the widest sour crude oil discounts in the last five years.

此外，我們也享有了過去五年來最廣泛的含硫原油折扣。

The second quarter this year was a very different picture.

今年第二季的情況截然不同。

Margins remained under extreme pressure due to the overhang of inventories that resulted from weak economic activity, record warm winter in the northeast and in Europe, and the lingering effect of 9/11 has had on jet fuel demand.

由於經濟活動疲軟、東北部和歐洲創紀錄的暖冬以及9/11事件對航空燃油需求的持續影響，導致庫存過剩，利潤率仍承受著極大的壓力。

OPEC production cuts and limited availability of Iraqi sour crudes on the world market resulted in sour crude discounts for the month of June narrowing to the lowest levels we've seen in five years.

歐佩克減產以及世界市場上伊拉克含硫原油供應有限，導致 6 月含硫原油折扣收窄至五年來的最低水準。

By comparison, the sour crude discount in the second quarter this year was $2.06 per barrel, versus $6.10 per barrel in the second quarter last year.

相比之下，今年第二季含硫原油折扣為每桶2.06美元，去年第二季為每桶6.10美元。

With our leverage to sour crude, we estimate the change in the sour crude discount alone represented over 190 million of the variants with last year's second quarter operating income.

憑藉我們對含硫原油的槓桿作用，我們估計僅含硫原油折扣的變化就代表了去年第二季度營業收入中超過 1.9 億的變體。

In California last year, we also experienced exceptionally high carb gasoline margins.

去年在加州，我們也經歷了異常高的碳水化合物汽油利潤。

For example, in the second quarter of 2001, carb margins were $20.57 per barrel, compared to $11.53 per barrel this year in the second quarter.

例如，2001 年第二季度，碳水化合物利潤為每桶 20.57 美元，而今年第二季度為每桶 11.53 美元。

That change accounted for a decline of roughly 170 million in operating income.

這項變更導致營業收入減少約 1.7 億美元。

Given this background, let me walk you through our financial results.

有鑑於此背景，讓我向您介紹一下我們的財務表現。

The second quarter of 2002, we earned 11.3 million, or 10 cents per share, versus earnings of nearly 275 million, or $4.23 per share in the second quarter of 2001.

2002 年第二季度，我們獲利 1,130 萬美元，即每股 10 美分，而 2001 年第二季度的獲利接近 2.75 億美元，即每股 4.23 美元。

Operating income for the quarter was 100 million versus 464 million in the second quarter of 2001.

該季度的營業收入為 1 億美元，而 2001 年第二季為 4.64 億美元。

Since the 2001 results do not include the operations of UDS for the second quarter, we have provided in the release some discussion of the key variances versus the first quarter, which is the first quarter where we've combined the operating results.

由於 2001 年業績不包括 UDS 第二季度的營運情況，因此我們在新聞稿中對與第一季（這是我們合併營運表現的第一季）的主要差異進行了一些討論。

We've also provided in the tables to the earnings release the first quarter operating highlights.

我們也在財報發布的表格中提供了第一季的營運亮點。

Looking at our results from the prospective of second quarter versus the first quarter, can you see that operating income for our refinery segment improved 124.8 million from 62.1 million in the first quarter.

從我們第二季與第一季的預期來看，您是否可以看到我們煉油部門的營業收入從第一季的 6,210 萬增加到 1.248 億。

The gross margin per barrel improved from 340 per barrel in the first quarter to $3.91 per barrel for the second quarter.

每桶毛利率從第一季的每桶340美元提高到第二季的每桶3.91美元。

Let me walk you through some of the key variances.

讓我帶您了解一些關鍵差異。

Part of the increase in our gross margin this quarter was attributable to inventory-related transactions.

本季毛利率的部分成長歸因於庫存相關交易。

During the quarter, we purchased certain crude oil and refined product inventories pursuant to a petroleum products purchase agreement entered into by UDS as part of an inventory modernization program in 1997.

本季度，我們根據 UDS 於 1997 年簽訂的石油產品採購協議購買了某些原油和成品油庫存，作為庫存現代化計劃的一部分。

Basically, UDS sold approximately 140 million of inventories to third party with an option to purchase equivalent volumes of petroleum products within five years.

基本上，UDS 向第三方出售了約 1.4 億庫存，並可選擇在五年內購買同等數量的石油產品。

At that time, UDS entered into a hedge transaction to lock in the then-current values of an equivalent volume of these petroleum products.

當時，UDS 進行了一項對沖交易，以鎖定這些石油產品等量的當時價值。

We exercised that option in June and acquired 6.3 million barrels of crude oil and refine products were of value, net of the hedge that was less than their current market value.

我們在 6 月行使了該選擇權，購買了 630 萬桶原油和煉油產品，扣除對沖後的價值低於其當前市場價值。

That resulted in a net pretax benefit of $14 million.

這帶來了 1400 萬美元的稅前淨收益。

One thing you'll notice when we file our form 10Q is that even with the 6.3 million barrel increase in inventories, our inventory levels this quarter remained relatively flat.

當我們提交 10Q 表格時，您會注意到的一件事是，即使庫存增加了 630 萬桶，本季我們的庫存水準仍然相對持平。

That's due to the fact we were able to reduce other inventories throughout our system by 5.7 million barrels this quarter as a result of our ongoing efforts to reduce inventories by over 7 million barrels by year end.

這是因為，由於我們持續努力到年底將庫存減少超過 700 萬桶，本季我們能夠將整個系統的其他庫存減少 570 萬桶。

Valero also entered into a similar inventory [monetazation] program in August 1997.

1997 年 8 月，Valero 也參與了類似的庫存[貨幣化]計畫。

This program was for 7.5 million barrels of crude and refine products, the value of which we hedged at the time of the transaction.

該計劃涉及 750 萬桶原油和煉油產品，我們在交易時對其價值進行了對沖。

In August, we expect to exercise our option to purchase these inventories, which based on the current market values, would result in a pretax benefit of about 50 million in the third quarter.

8月份，我們預計將行使購買這些庫存的選擇權，根據當前市場價值，這將在第三季帶來約5,000萬美元的稅前收益。

Looking at some of the other variances versus the first quarter, the biggest positive was the jump in gasoline margins, which is typical for this time of year.

看看與第一季相比的其他一些差異，最大的積極因素是汽油利潤率的躍升，這在一年中的這個時候很常見。

For example, gasoline margins improved on average by over 22% across our refining system, from the first quarter of this year.

例如，與今年第一季相比，我們煉油系統的汽油利潤率平均提高了 22% 以上。

While gasoline margins in the Gulf Coast, East Coast and Mid Continent were up from first-quarter levels, California carb gasoline margins were basically flat versus the first quarter.

雖然墨西哥灣沿岸、東海岸和中部大陸的汽油利潤率較第一季有所上升，但加州碳水化合物汽油利潤率與第一季基本持平。

Offsetting the improvements in gasoline margins was a tightening in sour crude oil discounts and the dramatic drop in this margin.

含硫原油折扣收緊和利潤率大幅下降抵消了汽油利潤率的改善。

If you look at our benchmark sour crude oil discounts, which is 50% Arab medium, 50% Arab light, the discount decline by over 20% from the first quarter.

如果你看我們的基準含硫原油折扣，即50%阿拉伯中質原油、50%阿拉伯輕原油，折扣較第一季下降了20%以上。

In fact, this discount reached the lowest point in over five years in June, averaging just $1.90 per barrel.

事實上，這項折扣在 6 月達到了五年多來的最低點，平均僅為每桶 1.90 美元。

The five-year average sour crude discount is around $3.25 per barrel.

五年平均含硫原油折扣約為每桶 3.25 美元。

The disolate margins declined from 40%.

孤立的利潤率從 40% 下降。

For example, the Gulf coast heat crack area averaged 40 cents per barrel.

例如，墨西哥灣沿岸熱裂區平均每桶 40 美分。

Even though it's typical to see a substantial decline in disolate margins from the first to the second quarter, disolate margins were still well below the five-year average level of $1.35 per barrel for the second quarter.

儘管通常情況下，從第一季到第二季度，獨立利潤率大幅下降，但第二季度獨立利潤率仍遠低於每桶 1.35 美元的五年平均值。

Another factor that impacted our result this quarter was our reduced refining utilization rates.

影響本季業績的另一個因素是煉油利用率下降。

During June in particular, refining crude across our refining system was down from 20% from normal operating levels, primarily due to the economic disolate margins, but the biggest impact was Texas City.

特別是在 6 月份，我們煉油系統的煉油量較正常運作水準下降了 20%，這主要是由於經濟利潤率下降，但影響最大的是德州城。

The impact of this turn-around on operating income is estimated at $23 million.

這一轉變對營業收入的影響估計為 2,300 萬美元。

Briefly, with respect to our cash operating expenses at the refineries in the second quarter, we were up about $24 million from the first quarter levels, primarily due to the higher energy and insurance costs.

簡而言之，就第二季煉油廠的現金營運支出而言，我們比第一季水準增加了約 2,400 萬美元，這主要是由於能源和保險成本上升。

The increase in energy costs was primarily related to the higher natural gas prices.

能源成本的增加主要與天然氣價格上漲有關。

The higher insurance costs reflect the increase in premiums, they went into effect this quarter.

較高的保險成本反映了保費的增加，它們於本季生效。

The increase is a reflection of the post-9/11 insurance market.

這一增長反映了 9/11 後的保險市場。

On the retail -- on the retail side of our business, we saw improvements in U.S. retail fuel margins of the very low margins realized in the first quarter.

在零售方面—在我們業務的零售方面，我們看到美國零售燃料利潤率比第一季實現的極低利潤率有所改善。

U.S. retail achieved a very respectable 13.7 cents per gallon, fuel margin in the second quarter after having only averaged 5.3 cents a gallon in the first quarter of this year.

美國零售業在第二季度實現了非常可觀的每加侖 13.7 美分的燃油利潤，而今年第一季的平均燃油利潤僅為每加侖 5.3 美分。

Currently, retail margins are averaging about 13 cents per gallon across our U.S. system.

目前，我們美國系統的零售利潤平均約為每加侖 13 美分。

The total contribution to income this quarter from our U.S. retail operations was 31.8 million for the second quarter versus a loss of 19.3 million in the first quarter.

本季我們美國零售業務對營收的貢獻總額為 3,180 萬美元，而第一季為虧損 1,930 萬美元。

Our northeast retail operations, which are Canadian retail outlets and the home heating oil business in Canada and northeastern United States, posted an operating profit of 15.6 million in the second quarter versus 22.7 million in the first quarter.

我們的東北零售業務，包括加拿大零售店以及加拿大和美國東北部的家庭暖氣油業務，第二季營業利潤為 1,560 萬美元，而第一季為 2,270 萬美元。

Combined retail contributed to over 47 million to the operating income this quarter versus 3.4 million last quarter.

本季零售業合計貢獻了超過 4,700 萬美元的營業收入，而上季為 340 萬美元。

Also I'll point out that our midcontinent refining operations contributed roughly 55 million to the operating income for the quarter.

我還要指出的是，我們的中部大陸煉油業務為本季的營業收入貢獻了約 5,500 萬美元。

These are both areas we lacked exposure to prior o our acquisition of UDS, which has helped to stabilize our earnings this quarter.

這些都是我們在收購 UDS 之前缺乏接觸的領域，這有助於穩定我們本季的收益。

A few other comments about the financial information outlined in the earnings table, you'll note that administrative expenses were 65 million for the quarter versus 58.3 in the first quarter.

關於收益表中概述的財務資訊的其他一些評論，您會注意到該季度的管理費用為 6500 萬美元，而第一季為 58.3 美元。

We expect 65 million to be a normal run rate going forward.

我們預計 6500 萬是未來的正常運作率。

Interest expense for the quarter was 72.3 million.

本季利息支出為 7,230 萬美元。

The main reason for the increase versus the first quarter is the fact that in mid-April we turned up 1.8 billion of the acquisition-related debt that had previously been financed at lower short-term floating rates.

與第一季相比增加的主要原因是，4 月中旬，我們發現了 18 億美元的收購相關債務，這些債務先前是以較低的短期浮動利率融資的。

The higher rates on the long-term notes accounted for about 8. million -- 8.7 million of the increase.

長期票據利率上升約佔增量的 800 萬至 870 萬。

Next, I'd like to comment on our efforts to capture the synergy opportunities presented by our acquisition of UDS, which is a top priority for the Company.

接下來，我想談談我們為抓住收購UDS帶來的協同機會所做的努力，這是公司的首要任務。

Here today, we estimate we've been able to capture approximately 100 million in recurring annualized synergies.

今天，我們估計我們已經能夠獲得大約 1 億的經常性年度協同效應。

Based upon our efforts thus far, and the fact that we continue to find good opportunities to reduce costs, we're well on our way to achieving our goal of capturing 200 million in synergies this year.

基於我們迄今為止的努力，以及我們不斷尋找降低成本的良好機會的事實，我們正在順利實現今年實現 2 億美元協同效應的目標。

Next, the observation about industry fundamentals.

其次，對產業基本面的觀察。

Gasoline demand has been strong all year.

全年汽油需求一直強勁。

API gasoline demand year to date is up almost 3.5%, believe the strong demand is attributable to relatively low pump prices, some travelers opting to travel rather than fly, and more SUV's on the road.

今年迄今為止，API 汽油需求成長了近 3.5%，相信強勁的需求歸因於相對較低的汽油價格、一些旅客選擇旅行而不是搭飛機，以及更多的 SUV 上路。

Going forward, these trends should continue to support good gasoline demand.

展望未來，這些趨勢應會繼續支持良好的汽油需求。

This strong demand is continued to sustain good gasoline margins in the third quarter.

這種強勁的需求持續維持了第三季良好的汽油利潤率。

For example, gasoline margins are averaging $4.80 per barrel on the Gulf coast, nearly $8 a barrel midcontinent and about $4.75 per barrel in the New York harbor.

例如，墨西哥灣沿岸的汽油利潤平均為每桶 4.80 美元，中部地區接近每桶 8 美元，紐約港每桶約 4.75 美元。

We're also seeing strong demand for petro chemical feed stocks.

我們也看到對石化原料的強勁需求。

Because there is hand incentive to maximize petro chemical stocks, these components -- by way of comparison, last year in July, propylene productions were negative by 8.50 a barrel, whereas this July they've averaged $4.75 per barrel.

由於最大化石化庫存的手動激勵，這些組成部分——相比之下，去年 7 月丙烯產量每桶負 8.50 美元，而今年 7 月平均每桶 4.75 美元。

I will point out, though, that west coast CARB gasoline margins are slightly below normal levels, averaging about $10 per barrel.

不過，我要指出的是，西海岸 CARB 汽油利潤率略低於正常水平，平均約為每桶 10 美元。

CARB gasoline margins have trended slightly below average for most of this summer, with ample inventories and increased production levels.

今年夏季大部分時間，由於庫存充足且產量水準增加，CARB 汽油利潤率略低於平均值。

We believe this situation could change dramatically in 2003 with roughly half of the CARB gasoline production goes down to ethanol instead of MTB.

我們相信，這種情況可能會在 2003 年發生巨大變化，CARB 汽油產量的大約一半將轉為乙醇而不是 MTB。

This will lead to a two-product system in an already tight California market, and likely create significant price spikes throughout the year.

這將導致本已緊張的加州市場出現兩種產品系統，並可能導致全年價格大幅上漲。

If you assume that 60% of the CARB gasoline is blended with ethanol next year, and even factoring in an anticipated carb capacity increases, such as those the the refinery, we believe that California's supply will be reduced by 40,000 barrels per day next year.

如果假設明年 60% 的 CARB 汽油與乙醇混合，甚至考慮到預期的碳水化合物產能增加（例如煉油廠的產能增加），我們認為明年加州的供應量將減少 40,000 桶/天。

We intend to continue blending MTB into CARB production until the point in time that the major terminal switch exclusively to ethanol blending.

我們打算繼續將 MTB 混合到 CARB 生產中，直到主要終端完全轉向乙醇混合。

Turning to dissolate margins, currently, around 70 cents per barrel at the Gulf coast.

說到利潤率，目前墨西哥灣沿岸的利潤率約為每桶 70 美分。

At these margin levels, we have the incentive to minimize production, and where possible to crack dissolate in our conversion units.

在這樣的利潤水平下，我們有動力最大限度地減少產量，並在可能的情況下消除我們的轉換單位的浪費。

By doing this, we're able to back out more expensive feed stocks, such as gas ols and process the internally processed dissolate to fully charge our conversion units.

透過這樣做，我們能夠淘汰更昂貴的原料，例如天然氣醇，並處理內部加工的離析物，為我們的轉換裝置充滿電。

Statistics indicate that other refiners are following suit.

統計數據顯示，其他煉油廠也正在效法。

This fact, along with good demand we've seen lately, should help hold down dissolate inventories.

這一事實，加上我們最近看到的良好需求，應該有助於抑制庫存過剩。

Over the last four weeks, demand is up about 2%.

過去四個星期，需求增加了約 2%。

In particular, we've seen demand for low sulfur diesel during June and July improve by about 150,000 barrels a day, or 5%, compared to the same period last year, which is a positive sign for the economic recovery.

特別是，我們看到6月和7月低硫柴油的需求比去年同期增加了約15萬桶/日，即5%，這是經濟復甦的正面跡象。

In looking at our feed stock, without question, the OPEC production cuts have kept things tight in the sour crude market.

從我們的原料來看，毫無疑問，歐佩克減產使含硫原油市場緊張。

A positive note is that our average discount on the Saudi Arabiaen sour crudes we run has expanded by about 50 cents per barrel from the June levels for our July and August deliveries.

一個積極的消息是，我們營運的沙烏地阿拉伯高硫原油的平均折扣比 7 月和 8 月交付的 6 月水準擴大了約 50 美分/桶。

For the third quarter, the contribution for that improvement for those two months alone will be in the range of 20 million versus the second quarter.

與第二季相比，第三季光是這兩個月的改善貢獻就將在 2,000 萬左右。

Given the current tightness in crude oil markets, strong refine product demand, we expect that more sour crude oil will come to market over the next several months, which should support wider sour crude oil discounts.

鑑於目前原油市場緊張，煉油產品需求強勁，我們預計未來幾個月將有更多含硫原油進入市場，這將支撐更大範圍的含硫原油折扣。

Few other points before I open the discussion up for Q&A.

在我開始問答討論之前，還有一些其他要點。

As to our expectations for this year's capital expenditures, we're now anticipating a total capital expenditures for the year to come in around $800 million.

至於我們對今年資本支出的預期，目前預計今年的資本支出總額約為8億美元。

This is down 100 million from our prior guidance of 900 million, and related primarily to reducing planned capital outlays in the retail and wholesale system, and also lower planned spending at the refineries.

這比我們之前指導的 9 億減少了 1 億，主要與減少零售和批發系統的計劃資本支出以及煉油廠的計劃支出有關。

With closing of the sale to the Golden Eagle refinery on May 17th, we received 925 million in cash from Tosoro petroleum and applied those proceeds to repayment of debt.

5 月 17 日完成金鷹煉油廠的出售後，我們從 Tosoro 石油公司收到了 9.25 億現金，並將這些收益用於償還債務。

At the end of the second quarter, our long-term debt balance was approximately 4.9 billion, putting our debt to capitallization ratio at approximately 52%.

截至第二季末，我們的長期債務餘額約為49億，債務與資本比率約為52%。

With the large capital investments being faced by our industry over the next several years, we believe it's critical to have good access to capital and financial flexibility.

鑑於我們的行業在未來幾年將面臨大量資本投資，我們認為獲得良好的資本和財務靈活性至關重要。

For that, we believe many in the industry are going to find it difficult to make the required investments to meet the upcoming tier two fuel specifications.

為此，我們相信業內許多人將發現很難進行所需的投資來滿足即將推出的二級燃料規範。

In addition, we're already starting to see an increasing number of refineries being put up for sale.

此外，我們已經開始看到越來越多的煉油廠被出售。

Our primary goal right now continues to be pay down debt, capture the synergy opportunities created by our acquisition of UDS, and then fully integrate our combined operations.

我們目前的首要目標仍然是償還債務，抓住收購 UDS 所創造的協同機會，然後全面整合我們的合併業務。

Again, with our size, geographic diversity, the good access to capital and strong balance sheet, Valero will be able to successfully weather the challenging times now facing the energy business, and be in an even better position as a leading U.S. refining and marketing company, once more normal conditions return.

同樣，憑藉我們的規模、地理多樣性、良好的資本獲取管道和強大的資產負債表，瓦萊羅將能夠成功度過能源行業目前面臨的挑戰時期，並作為美國領先的煉油和營銷公司處於更有利的地位，再次恢復正常狀態。

At this time, we'll open it up for Q&A.

此時，我們將開放問答。

At this time, I would like to remind everyone, in order to ask a question, please press star then the number 1 on your telephone keypad.

此時，我想提醒大家，要問，請按電話鍵盤上的星號，然後按數字1。

We'll pause for just a moment to compile the Q&A roster.

我們將暫停片刻來整理問答名單。

Your first question comes from Doug Harrison of Morgan Stanley.

你的第一個問題來自摩根士丹利的道格哈里森。

Hey, Bill and company.

嘿，比爾和他的同伴們。

How you guys doing?

你們怎麼樣？

Hey, Doug.

嘿，道格。

On Gulf coast, you mentioned the turn around at Texas City and higher insurance and energy costs drove the rise in operating expenses for the quarter, and while some of these factors are probably not going to recur, higher insurance costs may, and so my question is whether the ongoing operating costs number on the Gulf coast needs to be revised upwards, or projection in the 2 to 215, 220 per barrel range as still reasonable?

在墨西哥灣沿岸，您提到德克薩斯城的情況好轉，保險和能源成本上升推動了本季度運營費用的上升，雖然其中一些因素可能不會再次出現，但保險成本可能會上升，所以我的問題墨西哥灣沿岸的持續營運成本數字是否需要向上修正，或預測在每桶 2 至 215、220 範圍內是否仍然合理？

Hey, Doug, this is Lee.

嘿，道格，這是李。

I think based on what we have now, the projections for operating costs kind along the lines-of-the first quarter are slightly below 220 range are reasonable.

我認為，根據我們目前掌握的情況，第一季營運成本的預測略低於 220 的範圍是合理的。

Okay.

好的。

And secondly, Bill, if I heard you right, shareholder equity -- I backed into this number, around 4.5 billion at the end of the quarter, is that in the ballpark?

其次，比爾，如果我沒聽錯的話，股東權益——我支持這個數字，到季度末約為 45 億，這個數字是否合理？

That sounds right, Doug.

聽起來不錯，道格。

I haven't tried to compute that number.

我還沒有嘗試計算這個數字。

Okay.

好的。

So it should be right at $41 a share?

那麼每股 41 美元應該是正確的嗎？

Okay.

好的。

That should fix me up, guys.

夥計們，這應該能解決我的問題。

Thanks a lot.

多謝。

Thanks, Doug.

謝謝，道格。

Your next question comes from Paul Teen of Solomon Smith Barney.

您的下一個問題來自所羅門美邦的保羅·蒂恩。

Bill, Lee, how you doing?

比爾，李，你們好嗎？

Good.

好的。

A question on your comments regarding the switch over from MBTE to ethanol.

關於您對從 MBTE 轉向乙醇的評論的問題。

BP Royal Deutsche and Phillips has indicated they'll switch over perhaps by the end of the year, if not some of them already.

英國石油皇家德意志石油公司和菲利普斯公司已表示，他們可能會在今年年底之前進行轉換，如果其中一些還沒有的話。

You have indicated a desire to perhaps switch over until the terminals start to switch over to ethenol exclusively.

您已表示希望可能進行切換，直到終端開始專門切換到乙醇。

You have any sense of timing of when that might be, the first quarter, tail end of the year or any sense of timing at all?

您知道什麼時候可能是第一季、年底還是有任何時機？

The terminals, before we do a lot of our business, is probably going to be late 2003 for any -- to get ready for the 2004 requirement, January 1.

在我們開展大量業務之前，終端可能會在 2003 年稍後建成——為 2004 年 1 月 1 日的要求做好準備。

So probably start switching over once you go --

所以一旦你走，可能就開始切換——

The end of the year, huh?

年底了是嗎？

Yeah, the end of next year.

是的，明年年底。

Secondarily, you mentioned the fact that you had some run cuts in June.

其次，您提到了六月進行了一些減產的事實。

Do you have any run cuts in place right now?

你們現在有任何跑步削減嗎？

Yes, we do.

是的，我們願意。

Because of the heat crash, we're still minimizing crude around -- particularly in the Gulf coast -- to minimize having dissolute production.

由於熱浪的影響，我們仍在盡量減少周圍地區的原油產量，特別是在墨西哥灣沿岸，以盡量減少生產過剩的情況。

We're doing a lot of dislate crackling to keep the conversion units full -- maximize gasoline, maximize the units and minimize the production.

我們正在進行大量的液化裂解工作，以保持轉化裝置滿載——最大化汽油、最大化裝置並最小化產量。

I think you said you had a 20% cuts?

我想你說過要削減 20% 吧？

Can you quantify that?

你能量化一下嗎？

-- less than -- Hello?

-- 小於 -- 餵？

Just in comparison, this is Lee, we reported for the second quart 1.549 million barrels per day.

相比之下，這是Lee，我們報告的第二誇脫為每天154.9萬桶。

This is preliminary for the third quarter based on what John's talking about, we'll probably be north of that, but not much, probably in the range of 1.6 or so.

這是根據約翰所說的第三季的初步數據，我們可能會超出這個範圍，但不會太多，可能在 1.6 左右的範圍內。

Okay.

好的。

Total through put.

總吞吐量。

Great.

偉大的。

Thanks a lot, guys.

非常感謝，夥計們。

I appreciate it.

我很感激。

A follow-up on your question with equity, we think it's 4 billion, 224, so just to answer that question.

關於你的股權問題的後續問題，我們認為是 40 億，224，所以只是回答這個問題。

Sorry we didn't have it earlier.

抱歉我們沒有早點得到。

Your next question comes from Tyler Dan of Banc of America Securities.

您的下一個問題來自美國銀行證券公司的泰勒丹。

Gentlemen, how are you?

先生們，你們好嗎？

Good.

好的。

Just trying to piece together with the sale of Golden Eagle, my assumption is that you had the entire value for that lumped into the asset held for sale, but trying to figure out in terms of the goodwill that you had, both at the end of the quarter, whether it's still in the ballpark of $2.2 billion?

只是試圖將金鷹的出售拼湊在一起，我的假設是，您將其全部價值集中到待售資產中，但試圖根據您在年末所擁有的商譽來計算本季度是否仍在 22 億美元左右？

We'll give you the exact number. 2.369 billion.

我們會給你確切的數字。 23.69億。

2369, okay.

2369 好吧。

And my second question is, could you please comment on your retail optimization plan in terms of the divestitures?

我的第二個問題是，您能否評論一下您在資產剝離方面的零售優化計劃？

What the progress is there?

進展如何？

Sure.

當然。

As you know, we've been going through the process of looking at that network, and we had originally said we identified about 300 sites on the divestiture list.

如您所知，我們一直在審查該網絡，我們最初表示我們在剝離名單上確定了大約 300 個站點。

We've done an extensive evaluation of each of those sites now.

我們現在已經對每個站點進行了廣泛的評估。

We have a few left to look at, but right now we identified a total of 292 sites that we are going to divest.

我們還有一些要考慮的地方，但目前我們確定了總共 292 個要剝離的地點。

Thus far, we have sold or sublet 11 of those and closed 58 of them.

到目前為止，我們已出售或轉租其中 11 個，並關閉其中 58 個。

We have 223 -- for close or for sale.

我們有 223 個待關閉或出售。

Excellent.

出色的。

And I had, actually, one short question.

事實上，我有一個簡短的問題。

The $14 million that you booked in terms of the inventory purchase, where the volumes were hedged at a lower price, I believe, and that was the net benefit for the quarter, could you talk a little bit about how often you've done that in the past, and to what degree that's benefited or been a detriment to earnings in the past?

我相信，您在庫存採購方面預訂的 1400 萬美元，其中數量以較低的價格對沖，這是本季度的淨收益，您能談談您這樣做的頻率嗎過去的收入在多大程度上受益或受損？

We have not done it before.

我們以前沒有這樣做過。

This is the first time we've done the barrels, so, again, it was brought in at a lower price, and included in part of the inventory calculation, which amounted to 14 million for the second quarter.

這是我們第一次生產這些木桶，因此，我們再次以較低的價格引進，併計入庫存計算中，第二季度的庫存量為 1400 萬桶。

Okay.

好的。

And I guess to what extent should we be -- my assumption is I'm not planning on modeling that going forward.

我猜想我們應該做到什麼程度——我的假設是我不打算對此進行建模。

No.

不。

Without guidance from you all, obviously.

顯然，沒有你們所有人的指導。

Inventory will continue to show on our balance sheet, and, again, we're going to be doing the same thing with the Valero inventory that we've monotised in 37 and it will come on balance sheets, stay on balance sheets.

庫存將繼續顯示在我們的資產負債表上，並且我們將再次對我們在 37 中單一化的 Valero 庫存做同樣的事情，它將出現在資產負債表上，留在資產負債表上。

Okay.

好的。

Thank you.

謝謝。

Your next question comes from Fred Lefter of Bear Stearns.

您的下一個問題來自貝爾斯登的弗雷德·萊夫特。

Afternoon, guys.

下午好，夥計們。

Hello?

你好？

Hello.

你好。

Hello.

你好。

Hi.

你好。

Bill, you indicated you've achieved $100 million in synergies, at that kind of run rate.

比爾，您表示以這樣的運行速度，您已經實現了 1 億美元的協同效應。

Right.

正確的。

Do you have hand estimate for how much cost savings, or how much benefit, actually hit the bottom line in the second quarter, and what sort of rollout you would envision, you know, in terms of the synergies helping EPS or net income as we go through the third quarter and fourth quarter?

您是否對第二季度實際達到底線的成本節省量或收益有多少估算，以及您會設想什麼樣的推出，您知道，就幫助每股收益或淨利潤的協同效應而言，我們經歷第三季度和第四季嗎？

I'm going to let John Hohnholt answer, who's responsible for that.

我將讓約翰·霍恩霍特 (John Hohnholt) 來回答，他對此負責。

Fred, in the second quarter, we estimate recurrence energies to hit the bottom line on an annualized basis of 50 to 60 million.

Fred，我們預計第二季的循環能源年率將達到 5,000 至 6,000 萬的底線。

What, John?

什麼，約翰？

60 million in the second quarter is what we expected on synergy capture.

第二季 6 千萬是我們對綜效的預期。

The breakdown of that in terms of, you know, as you mentioned, run cuts and through-put production dishave an impact on solve the operating synergies and some of the cargo-sharing synergies that we -- we projected earlier in the year, but we captured some additional benefits in some of the other areas where we do our business, best practices, second quarter, 15.5 million from yield enhancements on some of the turn-arounds we took earlier in the year, also on some of the sharing of technical knowledge to improve the quality of some of the products we produce.

正如您所提到的，就運行削減和吞吐量生產而言，細分對解決營運協同效應和我們今年早些時候預測的一些貨物共享協同效應沒有影響，但是我們在我們開展業務的其他一些領域、最佳實踐中獲得了一些額外的好處，第二季度，我們在今年早些時候進行的一些週轉以及一些技術共享中，通過產量提高獲得了1550 萬美元的收益。品質的知識。

Crude supply primarily from plea side, reduce transportation costs in the Gulf, about 13.1 million for the quarter, energy savings, primarily from renegotiating gas and industrial gas contracts, 7.3 million, operating synergies have been reduced again because of the tightness of supplies in sour crude and intermediates, we were able to capture our gasoline blend synergies, total about 6 million in the quarter, primarily due to the fact that art because is at a premium and we're able to blend the resinate and able to blend that to produce 17,000 to 20,000 barrels a day of [inaudible].

原油供應主要來自認方，減少海灣運輸成本，本季約1310萬美元，節能主要來自重新談判天然氣和工業天然氣合同，730萬美元，由於酸性供應緊張，運營協同效應再次降低原油和中間體，我們能夠獲得汽油混合協同效應，本季度總計約600 萬美元，主要是因為藝術非常昂貴，我們能夠混合樹脂酸鹽並能夠將其混合以生產每天 17,000 至 20,000 桶 [聽不清楚]。

We're making great progress on our multisite contracts and a lot of those should be in place in the third and fourth quarter, where we'll start seeing some expense benefits.

我們在多站點合約方面取得了巨大進展，其中許多合約應該在第三季和第四季到位，我們將開始看到一些費用效益。

So overall, the process is going very well.

總的來說，這個過程進展順利。

We still expect to exceed our 200 million target this year.

我們仍然預計今年將超過 2 億的目標。

It's been slowed a little bit in the second quarter, mostly because of through-put reductionsand tightness in sour crude and intermediates, but we have -- we have uncovered other opportunities to, you know, to capture where we lost on the crude side.

第二季的成長速度有所放緩，主要是因為產量減少以及含硫原油和中間產品的緊張，但我們已經發現了其他機會，可以彌補我們在原油方面的損失。

All right, John, thanks.

好的，約翰，謝謝。

And you think you could -- you think you'd end up realizing the full hundred million in the third quarter, or do you think you could surpass that?

你認為你可以——你認為你最終會在第三季度實現整整一億美元，還是你認為你可以超越這個數字？

Well, 100 million today and the third quarter, I don't have the quarter in front of me.

嗯，今天一億，第三季度，我面前沒有這個季度。

We'll get that to you later.

我們稍後會將其發送給您。

If I could ask an unrelated question for accounting, the goodwill number from the UDS acquisition, where does the Company stand on this FAS-142, this impairment test on goodwill?

如果我可以問一個與會計無關的問題，即 UDS 收購的商譽數，公司在 FAS-142 上的商譽減損測試的立場如何？

Where does the company stand?

公司的地位如何？

We are going to, I guess, run that test in October for -- and the way to dot test -- it's not a problem.

我想，我們將在 10 月進行該測試——以及點測試的方式——這不是問題。

You know, one of the ways which we'll look at -- at goodwill impairment is look at interest rates and potentially what the values would be.

你知道，我們研究商譽減損的方法之一是研究利率以及潛在的價值。

So, I mean, I just don't ever inenvision we end up with a goodwill impairment.

所以，我的意思是，我從來沒有預見到我們最終會遭受商譽減損。

Okay, Danny.

好的，丹尼。

Thanks a lot.

多謝。

Your next question comes from John Malloy of Simmons.

您的下一個問題來自西蒙斯的約翰·馬洛伊。

Hey, guys.

大家好。

You spoke about the interest expense, the 8.7 of the increase coming from the 1.8 billion being turned out to higher rates, and about another $9 million increase in there, could you comment on that?

您談到了利息支出，其中 8.7 % 的成長來自於 18 億美元的利率上升，以及另外 900 萬美元的成長，您能對此發表評論嗎？

Yeah, you have higher borrowings to one thing.

是的，你對一件事有更高的借貸。

Higher borrowings, you have all of the higher interest rates, and we ended up writing off some deferred debt issue costs, related to close of a particular transaction, so, I mean, that's the rest of the difference.

借款越高，利率越高，我們最終沖銷了一些與特定交易結束相關的遞延債務發行成本，所以，我的意思是，這就是剩下的差異。

Could you break that out for me?

你能幫我解決一下嗎？

Yeah.

是的。

Yeah, John, it's Lee.

是的，約翰，我是李。

About 4 million related to the effect of the increase in borrowings, 2 million on the overhaul increase in interest rates, just marketing increase in interest rates, and then the third piece will be the writeoff of the amortized loan fee of about 2 million.

大概400萬跟借款增加的影響有關，200萬跟大修加息有關，只是行銷升息，然後第三塊就是沖銷約200萬的攤銷貸款費用。

So that's about eight of the remaining --

這大約是剩下的八個——

Okay.

好的。

That's good.

那挺好的。

Additionally, could you comment -- if I read right, there's about a $290 million pension fund, liability at the year end.

另外，您能否評論一下——如果我沒看錯的話，年底有大約 2.9 億美元的退休基金負債。

Could you comment on where that is now and if any adjustment fee will be made for that?

您能否評論一下現在的情況以及是否會為此收取任何調整費用？

Actually, it would be unfunded, projected benefit obligation at year end was $311 million.

實際上，該項目沒有資金支持，預計年底的福利義務為 3.11 億美元。

Obviously, that number changes from time to time.

顯然，這個數字會不時改變。

You can kind of look at it on an annual basis, I know the numbers obviously go up as the projected benefit obligation goes up, and plus, you know, considering the market value, it's been just this year, but we've got funding -- let's talk about funding for the rest of the year, fund about 32 million to the plan.

你可以每年查看一下，我知道隨著預計福利義務的增加，數字顯然會增加，而且，你知道，考慮到市場價值，這只是今年，但我們有資金——我們來談談今年剩餘時間的資金情況，為該計劃提供約3200萬資金。

Okay.

好的。

And we've already funded 18, so that makes -- that's a total of 15 for this year.

我們已經資助了 18 個項目，所以今年總共有 15 個項目。

Okay.

好的。

And are you guys offering any guidance for the third quarter?

你們對第三季有什麼指引嗎？

I see the estimates are around $1.24 for the third quarter.

我看到第三季的預估約為 1.24 美元。

Do you have any comments on that?

你對此有何評論？

I tell you with the volatility in the market we're seeing day to day, we're really not putting out any projections, but it's pretty obvious that if margins stay where they are today and discounts stay where they are, we're going to be way below first-call estimates.

我告訴你，鑑於我們每天看到的市場波動，我們確實沒有做出任何預測，但很明顯，如果利潤率保持在今天的水平，折扣保持在原來的水平，我們就會遠低於首次調用的估計。

Thanks for your time, guys.

謝謝你們抽出時間，夥伴們。

Your next question comes from Andrew Fairbanks of Merrill Lynch.

你的下一個問題來自美林證券的安德魯費爾班克斯。

Hey, good afternoon, guys.

嘿，下午好，夥計們。

Hey, Andrew.

嘿，安德魯。

Recognizing that the top priority for cash from asset sales and operating cash flow this year is every payment, as you do start to build up additional cash flow going forward, can you talk about the decision between share repurchases versus acquisitions?

認識到今年從資產出售和營運現金流中獲得現金的首要任務是每筆付款，因為您確實開始建立未來的額外現金流，您能談談股票回購與收購之間的決定嗎？

You mentioned there's a lot of, certainly, material out there on the market.

您提到市場上當然有很多材料。

How do you see that tradeoff at current share price levels?

您如何看待當前股價水準的這種權衡？

I wish we had that luxury right now.

我希望我們現在就擁有這種奢侈。

You know, we're just going to have to look on a return basis to the shareholders', short term versus long term.

你知道，我們只需要考慮股東的短期回報和長期回報。

I'll tell you, though, that as far as acquisitions go for refineries right now, with the stock market where it is and with the uncertainty in the capital market, we're not going to be aggressive at all.

不過，我會告訴你，就目前煉油廠的收購而言，鑑於股票市場的現狀以及資本市場的不確定性，我們根本不會採取激進的行動。

We've declined on the Williams refinery, so we're going to be very careful in what we do going forward.

我們已經拒絕了威廉斯煉油廠，因此我們將非常謹慎地對待未來的工作。

That sounds great.

聽起來不錯。

Thanks, guys.

多謝你們。

Your next question comes from Paul Chang of Lehman Brothers.

你的下一個問題來自雷曼兄弟的 Paul Chang。

Guys.

夥計們。

Hey, Paul.

嘿，保羅。

Several quick questions.

幾個簡單的問題。

Lee, you gave rough number for the through-put estimate for the third quarter.

Lee，您給出了第三季吞吐量估計的粗略數字。

Can you bring it down by your four different systems?

你能用四種不同的系統把它擊垮嗎？

Sure.

當然。

This is very preliminary, obviously, but, you know, really, every system on the west coast, midcontinent, northeast can be pretty much in line, slightly above second quarter perhaps.

顯然，這是非常初步的，但是，你知道，實際上，西海岸、中部大陸、東北部的每個系統都可以基本上保持一致，也許略高於第二季。

Gulf coast with the turn-around, Texas City completed, we'll be back up in the 675 or so range total for good.

墨西哥灣沿岸地區隨著德州城的逆轉完成，我們將永遠回到 675 左右的範圍內。

Okay.

好的。

Like I said, you know, earlier, a total of somewhere in the 1.6 per day range, but, again, that's preliminary based on the current market conditions.

就像我說的，您知道，早些時候，總計在每天 1.6 次的範圍內，但同樣，這只是基於當前市場狀況的初步數據。

Okay.

好的。

Also, I think that the deal earlier that you indicate that the Gulf coast refining system, part of the reason is because of the renewed insurance policy.

另外，我認為您之前指出的墨西哥灣沿岸煉油系統交易的部分原因是因為更新了保險單。

Is that any of the renewal coming up soon with the other system, and if so, when and what is the incremental costs may be?

其他系統是否即將更新？

You know, that was an annual policy that came up may 1st, so that's what we'll continue, you know, for the next 12 months.

您知道，這是 5 月 1 日出台的年度政策，因此我們將在接下來的 12 個月內繼續執行該政策。

I think our insurance costs increased 30 --

我認為我們的保險費用增加了 30 --

32%.

32%。

-- 32%.

——32%。

So, Bill, is that for the entire company, or just for the Gulf coast refineries?

那麼，比爾，這是針對整個公司，還是僅針對墨西哥灣沿岸煉油廠？

No, that was the entire company.

不，那是整個公司。

Oh, okay.

哦好的。

Yeah, I thought that you -- that is only for the Gulf coast, sorry.

是的，我以為你--這只適用於墨西哥灣沿岸，抱歉。

No, I'm sorry.

不，我很抱歉。

And can you give me what is the July -- the month of July and the month of August, the sour crude discount --

你能告訴我七月是多少嗎——七月和八月，含硫原油折扣——

Yeah, Paul, this is Lee, month of July, the sour crude marker is 243 per barrel, and August -- hold on just a moment, it's 230 per barrel, so down slightly.

是的，保羅，這是 Lee，7 月份，含硫原油標記為每桶 243，而 8 月份——稍等一下，每桶 230，所以略有下降。

Okay.

好的。

Okay.

好的。

Thank you.

謝謝。

Your next question comes from Mark Gillman of First Albany Corporation.

您的下一個問題來自第一奧爾巴尼公司的馬克吉爾曼。

Good afternoon, guys.

下午好，夥計們。

The $23 million in the earnings release on the Texas City turn, is that direct cost and opportunity costs?

德州城財報中公佈的 2,300 萬美元是直接成本和機會成本嗎？

Or one or the other?

或其中之一？

No, that's total gross margin loss from the down days.

不，這是低迷時期的總毛利率損失。

Also the opportunity loss from the expansion from when the plant was scheduled to be started up, so I guess it's 55,000 for the scheduled down days and lost opportunity from the down days, a higher rate.

還有從工廠計劃啟動時起的擴張帶來的機會損失，所以我猜預定的停機天數為 55,000，而因停機天數而失去的機會，比率更高。

And the direct expense portion of it is capitalized?

其中直接費用部分是否資本化？

As part of turn-around costs?

作為週轉成本的一部分？

That's correct.

這是正確的。

I noticed that maybe it's just an anomaly, the station through-puts in the U.S. retail down second quarter versus first, which is a little unusual seasonally?

我注意到，也許這只是一個反常現象，美國零售業第二季度的車站吞吐量比第一季有所下降，這在季節性上有點不尋常？

Is something occurring there?

那裡有什麼事情發生嗎？

Mark, we were really hit by the bad weather in south Texas.

馬克，德克薩斯州南部的惡劣天氣給我們帶來了巨大的打擊。

You may have seen the flooding.

您可能已經看到洪水氾濫。

That really impacted us in June and July.

這確實對我們六月和七月產生了影響。

We had a lot of really wet weather and that affected us the back part of the second quarter.

我們經歷了許多非常潮濕的天氣，這影響了我們第二季的後半段。

The other thing we have done is we've been more aggressive on our pricing policy than we were in the first quarter.

我們所做的另一件事是，我們的定價政策比第一季更積極。

You know, we took the lead in increasing prices where we had a pretty good market share.

你知道，我們帶頭漲價，我們擁有相當不錯的市佔率。

We lost some volume, but we made more money.

我們損失了一些銷量，但賺了更多錢。

Okay.

好的。

Finally, Bill, forgive me for asking this one, but in your opening remarks, I think you used the language, "most of the current proposals" regarding corporate governance are already standard operating procedure.

最後，比爾，請原諒我問這個問題，但在你的開場白中，我認為你使用了這樣的語言：「當前大多數關於公司治理的建議」已經是標準作業程序。

What isn't?

什麼不是？

Well, you know, for example, we meet with the audit committee on a quarterly basis.

嗯，你知道，例如，我們每季與審計委員會會面。

We don't always have the auditors there.

我們並不總是有審計員在場。

We don't review the press release with the -- you know, with them at that time.

我們不會與當時的人一起審查新聞稿。

So we're now scheduling the audit meetings with the board meetings so that, you know, the auditors and the press release can be reviewed.

因此，我們現在將審計會議與董事會會議安排在一起，以便可以審查審計員和新聞稿。

At one time.

一時間。

You know, we're doing everything they're asking us to do, but we're doing it in different committees.

你知道，我們正在做他們要求我們做的一切，但我們是在不同的委員會中所做的。

For example, they have this governance committee, which, you know, is going to look at board salaries and going to look at nominating stuff, and we have a nominating committee and we have a comp committee, so we're doing all these things.

例如，他們有一個治理委員會，你知道，該委員會將審查董事會薪資並審查提名內容，我們有一個提名委員會和一個薪酬委員會，所以我們正在做所有這些事情。

Again, I'm the only inside board member, all the outside board members are recruited through headhunters.

再說一次，我是唯一的內部董事會成員，所有外部董事會成員都是透過獵人頭招募的。

None of the board members are on each other's boards, so we have a complete independent board.

董事會成員均不在對方的董事會中，因此我們擁有完全獨立的董事會。

We have a CPA, the heads up our audit committee, which they're recommending a financial person.

我們有一名註冊會計師，領導我們的審計委員會，他們推薦一名財務人員。

You know, the audit committee does hire the auditors, the consultation committee does hire the outside consultants we use, so when you look at what they're proposing, we're right down the line, even from the standpoint of having a meeting strictly of the board members once a year to talk about management, performance and other issues.

你知道，審計委員會確實聘請了審計師，諮詢委員會確實聘請了我們使用的外部顧問，所以當你看看他們的提議時，我們就在這條線上，即使從嚴格召開會議的角度來看也是如此董事會成員每年一次討論管理、績效等議題。

That's done through the chairman of the comp committee, but we'll formalize that and have a separate committee to make it more formal, but basically, we're doing all those things.

這是透過薪酬委員會主席完成的，但我們會將其正式化，並成立一個單獨的委員會以使其更加正式，但基本上，我們正​​在做所有這些事情。

We've even gone one step further in our recommendation to the New York Stock Exchange, especially on stock options, we feel that what we're doing at Valero with management, pyramiding up, keeping stock is a proper way.

我們甚至更進一步向紐約證券交易所提出建議，特別是在股票期權方面，我們認為我們在瓦萊羅與管理層所做的事情，金字塔式增長，保留庫存是一種正確的方式。

It's long-term compensation, and if you do that, then the existing accounts, which is equity of accounting, you know, is fine.

這是長期補償，如果你這樣做，那麼現有的帳戶，也就是會計權益，你知道，就可以了。

If you're going to cash out options, which, as you know, can you earn options in three years, you cash them out and take your profits, that short-term compensation, and that should be expensed.

如果你要兌現期權，正如你所知，你可以在三年內賺取期權，你就把它們兌現並拿走你的利潤，短期補償，應該費用化。

So that was the recommendation we made.

這就是我們提出的建議。

We also made the recommendations with regard to CEOs.

我們也提出了有關執行長的建議。

We don't think CEOs should be more than one outside board and CEO z should not have board members where he's on their board and he's on his board.

我們認為 CEO 不應該是多個外部董事會成員，而 CEO z 不應該有董事會成員，因為他是他們的董事會成員，而他又是他的董事會成員。

And I think those things should be considered, and they haven't even been brought up.

我認為這些事情應該被考慮，但它們甚至還沒有被提出來。

Okay, thanks a lot.

好的，非常感謝。

As a reminder, if you would like to ask a question, please press star, then the number 1 on your telephone keypad.

提醒一下，如果您想提問，請按星號，然後按電話鍵盤上的數字 1。

You have a follow-up question from John Malloy of Simmons.

西蒙斯公司的約翰·馬洛伊向您提出了後續問題。

Hey, guy, real quickly.

嘿，夥計，真快。

The pension costs, do they show up on the SG&A line?

退休金費用是否顯示在 SG&A 行？

Is that where they flow --

那是它們流動的地方嗎——

Some of it fits right into the refineries, as an operating cost.

其中一些直接適合煉油廠作為營運成本。

Related to the corporate, general administrative, so it just depends.

與公司、一般行政相關，所以這要看情況。

Okay.

好的。

And, also, you commented that you turned down the Williams refinery.

而且，您也評論說您拒絕了威廉斯煉油廠。

Was it the Memphis or the Alaska?

是孟菲斯號還是阿拉斯加號？

Both.

兩個都。

Both, okay.

兩者都好。

Thank you.

謝謝。

Your next question comes from Jim Bersone of Delphi Management.

您的下一個問題來自德爾福管理公司的 Jim Bersone。

Good afternoon.

午安.

Hi.

你好。

You mentioned about buying down the debt or paying down debt over time.

您提到了購買債務或隨著時間的推移償還債務。

What is your target optimum debt to cap that you're looking for long term?

您所尋求的長期目標最佳債務上限是多少？

We're looking by the end of the year to be below 50%.

我們預計到今年年底這一比例將低於 50%。

And then will you be taking it down further from this year, or is that pretty much where you're going to run at, going forward?

然後你會從今年開始進一步降低它，還是說這就是你今後要努力的方向？

I think it would be more comfortable 40%, 45%, that range.

我認為 40%、45% 這個範圍會比較舒服。

Okay.

好的。

Great, thank you.

太好了謝謝。

Your next question comes from Marilyn Boss of States Street Research.

您的下一個問題來自國街研究公司的 Marilyn Boss。

Good afternoon.

午安.

My question is a follow-on to the question just asked about the leverage ratio.

我的問題是剛才關於槓桿率問題的後續問題。

What would your commitment be, then, to the credit rating?

那麼，您對信用評級的承諾是什麼？

Where would you like to see yourselves?

您想在哪裡見到自己？

As you mentioned, if you move into the 40% to 45% area, where do you see yourself in terms of a credit rating?

正如您所提到的，如果您進入 40% 到 45% 的區域，您對自己的信用評級有何看法？

I think that, you know, we'd like the triple-B level rating that we currently have.

我認為，您知道，我們希望獲得目前的 3B 級評級。

We think even a mid-40s, I think refing industry, I think we're still going to be -- we're going to have difficulty moving up to a triple-B plus.

我們認為，即使是 40 多歲，我認為煉油行業，我認為我們仍然會 - 我們將很難達到 3B+。

I think it will probably take 40% debt to cap to move up to BAA-1 and better cover ratios.

我認為可能需要 40% 的債務上限才能達到 BAA-1 和更好的覆蓋率。

What are your target cover ratios, then for interest and EBITDA interest?

那麼，利息和 EBITDA 利息的目標覆蓋率是多少？

Do you have any targets for those?

您對這些有什麼目標嗎？

Not necessarily, just maintain at least a 2.75 EBITDA interest.

不一定，只要維持至少 2.75 的 EBITDA 利息即可。

Thank you.

謝謝。

You have a follow-up question from Fred Lefter of Bear Stearns.

貝爾斯登公司的弗雷德·萊夫特 (Fred Lefter) 向您提出了後續問題。

Hi, guys.

嗨，大家好。

In the Golden Eagle transaction, you accepted some TASORO bonds with payment.

在金鷹交易中，您已付款並接受了一些TASORO債券。

What's the carrying value on that debt?

該債務的帳面價值是多少？

We recorded that at about $53 million.

我們記錄的金額約為 5300 萬美元。

Great, thank you.

太好了謝謝。

At this time, there are no further questions.

目前，沒有其他問題了。

I'd like to thank everybody for listening today.

我要感謝大家今天的聆聽。

If you have any follow-up questions or comments, please contact Eric Fisher or myself here at Valero.

如果您有任何後續問題或意見，請聯絡 Eric Fisher 或我自己在 Valero。

Appreciate it.

欣賞它。

Thanks.

謝謝。

This concludes today's Valero Energy Corporation's second quarter earnings release conference call.

今天瓦萊羅能源公司第二季財報電話會議到此結束。

You may now all disconnect.

你們現在可以斷開連結了。