3 Oil Refining Stocks That Gained More Than 30% in 2025

Despite a relatively muted year for the broader oil/energy sector, a few names have delivered standout gains. Several companies in the Zacks Oil and Gas - Refining & Marketing space, including Valero Energy (VLO), Par Pacific Holdings (PARR) and HF Sinclair (DINO), are up more than 30% year to date, far outpacing the sector’s modest advance, helped by favorable industry dynamics and strong execution.

Year-to Date Price Performance Comparison

Strong Refining Margins Backed by Tight Supply

Refining margins stayed firm through most of the year, supported by low global product inventories and steady demand for fuels, especially distillates like diesel and jet fuel. Industry capacity additions have lagged demand growth, while outages, maintenance issues and refinery closures in some regions kept supply in check. This imbalance helped refiners capture healthier margins even during periods of high utilization, creating a favorable earnings backdrop across the industry.

Better Operations and Higher Asset Utilization

Another tailwind has been improved operational reliability. Refiners ran plants harder and more consistently, keeping unplanned downtime low and throughput high. Investments in maintenance discipline, logistics optimization and better planning paid off, allowing companies to process more barrels at lower per-unit costs. When plants run more smoothly without pushing costs higher, profits can rise faster, which often helps support stock prices during favorable market conditions.

Flexibility in Product Mix and Market Access

Refiners have also benefited from being more flexible in what they produce and where they sell. The ability to shift yields toward higher-value products like diesel or jet fuel, depending on market signals, proved valuable in a volatile environment. In addition, access to advantaged crude supplies, strong trading capabilities and well-positioned logistics networks helped maximize margin capture. Retail and marketing segments added stability by providing steady outlets for refined products and incremental margins.

Outlook for 2026: Patience is Key

Looking ahead, the refining and marketing industry still appears supported by relatively tight supply-demand dynamics and limited new capacity additions. That said, forecasting stock performance a year out remains tricky. While it may be premature to expect a repeat of this year’s outsized gains in 2026, Valero Energy, Par Pacific and HF Sinclair are certainly worth keeping an eye on as industry fundamentals continue to evolve.

3 Stocks Worth Watching

Valero Energy: Valero Energy, founded in San Antonio in 1980, is one of the world’s largest independent refiners. The Zacks Rank #1 (Strong Buy) company operates 15 refineries across the United States, Canada and the United Kingdom, with a combined throughput of about 3.2 million barrels per day. Its facilities produce gasoline, diesel, jet fuel, heating oil and other refined products sold across North America, Europe and parts of Latin America.

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Beyond refining, Valero has a sizable renewables footprint. It owns 12 ethanol plants in the U.S. Midwest with a capacity of roughly 1.7 billion gallons per year. It holds a 50% stake in Diamond Green Diesel, North America’s largest renewable diesel producer, which also makes sustainable aviation fuel. The Zacks Consensus Estimate for 2026 earnings of Valero indicates 24.5% growth. It beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 138.8%.

Par Pacific: Houston-based Par Pacific runs an integrated energy business that includes refining, retail and logistics operations. The Zacks Rank #3 (Hold) company has 219,000 barrels per day of refining capacity, a broad network of storage and transport assets, and more than 100 fuel and convenience stores serving major western U.S. markets. Alongside its traditional fuel operations, Par Pacific is also pursuing decarbonization efforts and maintains a meaningful stake in natural gas production. Together, these pieces give the company a mix of steady cash-flow support and long-term growth potential.

Par Pacific beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other, with the average being 77.5%. It has a market capitalization of $1.9 billion. Over the past 60 days, the Zacks Consensus Estimate for the company’s 2026 earnings has gone up 19%.

HF Sinclair: It is an independent refiner headquartered in Dallas, TX, with a strong footprint across the United States. HF Sinclair operates seven refineries with a combined throughput of roughly 678 thousand barrels per day, serving markets in the Midwest, Rockies, Southwest and Pacific Northwest. The #3 Ranked operator produces gasoline, diesel, jet fuel and other light products, supported by a broad logistics and distribution network.

Beyond refining, HF Sinclair has built added diversification. It owns renewable diesel operations at several sites, runs a specialty lubricants and base oils business with global reach, and holds a significant interest in midstream partner Holly Energy Partners, which supports transportation, storage and terminal services. The Zacks Consensus Estimate for 2026 earnings of HF Sinclair indicates 6.5% growth. DINO beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other, with the average being 26%.

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

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