BP's Indiana Refinery Restarts After Severe Flooding Disruption

BP plc’s BP operations at the Whiting refinery in Indiana are steadily resuming after severe thunderstorms and flooding sent parts of the facility offline earlier this week. The 440,000-barrel-per-day refinery — the largest in the U.S. Midwest — is currently in the restart process, with units expected to take several days to fully ramp up, according to data from industry monitor IIR and Reuters.

Flooding that struck on Monday evening led to operational disruptions and visible flaring from the site. BP, in a social media update, stated that flaring will continue as necessary during the restart to keep systems running safely. Response and operation teams have been continuously on-site since the storm to manage recovery efforts.

While BP has not provided a specific timeline for a full return, IIR has indicated that the facility could be back at its typical operating rates by early next week.

The refinery supplies critical volumes of gasoline, diesel and jet fuel to the Midwest region. Energy analysts caution that until Whiting ramps back to full strength, fuel prices in the region are likely to feel the strain. Patrick De Haan, head of petroleum analysis at GasBuddy, told Reuters that retail gas prices in the Great Lakes states may rise between 10 and 20 cents per gallon, with Chicago drivers potentially seeing spikes of 15 to 30 cents in the short term.

Despite these challenges, BP emphasized that ensuring employee safety and maintaining reliable operations remain the company’s top priorities during the restart process.

BP’s Zacks Rank and Key Picks

BP currently carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at a couple of better-ranked stocks like Antero Midstream Corporation AM, Enbridge Inc. ENB and Precision Drilling Corporation PDS. While both Antero Midstream and Enbridge carry a Zacks Rank #2 (Buy) at present, Precision Drilling sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.

AM’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 1.13%.

Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term contracts that act as a protection against big oil price swings or changes in shipment. 

ENB’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 5.61%.

Precision Drilling is an oilfield services company. The company provides contract drilling, well servicing and strategic support services to the oil and gas industry in North America and internationally. It provides land drilling, directional drilling, turnkey drilling, camp and catering services, and procures and distributes oilfield supplies.

PDS’ earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average surprise of 977.7%. The Zacks Consensus Estimate for 2025 earnings indicates a 14.2% year-over-year decline.

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This article originally published on Zacks Investment Research (zacks.com).

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