Financial research concept

Refining Depreciation and Amortization per Barrel

Refining depreciation and amortization per barrel spreads refinery-segment depreciation and amortization expense across throughput barrels to show the noncash capital-cost layer in unit economics.

By Lee BaileyPublished Sep 25, 2026

Research context

See what supports this page, how current it is, and where comparable or historical context is available.

Research date: Sep 25, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context: 20 connected conceptsPart of the reviewed Integrated Refining & Renewable Fuels Economics; issuer definitions remain distinct where disclosed.
Company examples: 1 reviewed companyRelationships reflect supported examples, not a normalized cross-company KPI ranking.

D&A per barrel increased about 13.0%
D&A absorbed about 20.6% of refining margin per barrel
D&A is not maintenance capex
Part of the Integrated Refining & Renewable Fuels Economics
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Refining Depreciation and Amortization per Barrel spreads refinery-segment D&A expense across throughput barrels to isolate the noncash capital-cost layer in unit economics.

Valero reported $2.53 per barrel in 2025, up from $2.24 in 2024.

D&A per barrel increased about 13.0%

The $0.29 increase divided by the $2.24 prior-year base equals approximately 12.9%.

That change can reflect a larger depreciable asset base, lower throughput over a similar asset base, or other accounting and portfolio effects.

D&A absorbed about 20.6% of refining margin per barrel

Refining margin per barrel was $12.29.

Dividing $2.53 by $12.29 gives approximately 20.6%.

Together with $4.93 of adjusted operating expenses, D&A explains why only $4.83 per barrel remained as Refining Adjusted Operating Income per Barrel.

D&A is not maintenance capex

Accounting depreciation reflects historical capitalized assets and useful lives.

It does not estimate current replacement cost or the cash capital required to sustain refinery throughput.

Primary source: Valero 2025 earnings release.

Part of the Integrated Refining & Renewable Fuels Economics

Connect refinery capacity, throughput, utilization, yield, realized per-barrel economics, renewable-fuel compliance costs, and Renewable Diesel and Ethanol volume, margin, and profit conversion.

Browse the full operating model in Company Analysis →

Where this concept fits

Refining capacity, throughput, and per-barrel conversionCurrent relationship
Feedstock throughput capacity sets physical scale, while utilization and throughput show realized activity and product yield shows output mix. Refining margin per barrel is reduced by operating costs and depreciation and amortization to reach adjusted operating income per barrel, while RVO cost adds a separate compliance-cost benchmark whose treatment in realized margin must be checked.
Refinery Capacity Utilization Refinery Product Yield Refinery Throughput Adjusted Refining Operating Income Adjusted Refining Operating Income per BarrelRefining D&A per BarrelCurrent conceptFeedstock Throughput Capacity Refining Margin per Barrel Refining Operating Cost per Barrel RVO Cost per Barrel
Renewable diesel capacity, sales volume, and margin conversion
Production capacity defines potential physical output, sales volume is the period denominator Valero uses for unit economics, segment revenue preserves external and intersegment scope, and Renewable Diesel margin is reduced by operating expenses and depreciation and amortization to reach operating income or loss.
Renewable Diesel Margin Renewable Diesel Operating Income Renewable Diesel Production Capacity Renewable Diesel Sales Volume Renewable Diesel Segment Revenue
Ethanol capacity, production, and margin conversion
Production capacity defines the plant network's stated output capability and production volume measures realized output. Ethanol and co-product revenue feed an issuer-defined Ethanol margin, which is reduced by operating expenses, depreciation and amortization, and specified other operating expenses to reach segment operating income.
Ethanol Margin Ethanol Operating Income Ethanol Production Capacity Ethanol Production Volume Ethanol Segment Revenue

See It in Company Research

These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.

VLOOpen operating-model research →20 of 20 reviewed concepts in Integrated Refining & Renewable Fuels EconomicsRefining capacity, throughput, and per-barrel conversion10 of 10 bridge concepts supportedContinue through this bridge:Adjusted Refining Operating Income Adjusted Refining Operating Income per Barrel Feedstock Throughput Capacity Refinery Capacity Utilization Refinery Product Yield Refinery Throughput Refining Margin per Barrel Refining Operating Cost per Barrel RVO Cost per Barrel

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Compare the refinery capital-cost layer with margin per barrel and the remaining adjusted operating income.

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