In this article, we’ll look at the 8 Best Oil & Gas Refinery Stocks to Buy Now.
Oil and gas stocks are on the move as a flare-up of tensions between the US and Iran threatens to disrupt shipping in the Strait of Hormuz. Heightened military activity in the key oil-producing region is the catalyst pushing oil and gas prices higher.
“Markets can tolerate headlines but won’t ignore lost supply,” said Haris Khurshid, chief investment officer at Karobaar Capital LP. “If exports out of Iran are hit or there’s credible interference in the Strait of Hormuz — highly likely if things go south — that’s when crude reprices fast.”
Brent futures have already powered through the $70-a-barrel level, heightening sentiment around oil and gas refinery stocks. The rally has come amid concerns that Saudi Arabia, Iraq, and Kuwait would struggle to get their oil supplies through Hormuz, therefore affecting global supplies. Likewise, military action in Iran would affect oil supplies from Iran, as the country accounts for about 3% of global production.
Oil prices have also remained resilient for the better part of the year despite broad expectations of a global glut. However, Goldman Sachs has raised its Brent and West Texas Intermediate (WTI) crude forecasts for the fourth quarter of 2026 by $6 each to $60 and $56, respectively. The bank is maintaining its 2026 surplus forecast of 2.3 million barrels per day (bpd).
Meanwhile, analysts at Barclays have warned that oil market fundamentals are at odds with the super glut narrative.
“A potential 1 mb/d supply disruption–which corresponds to half of Iran’s crude exports–for 12 months would boost the fair value of oil by $8,” Barclays said.
Tensions in the Middle East are not the only factor supporting oil and gas refinery stocks. Russian oil producers reduced drilling activity in 2025 to the lowest level in three years. The reduction has dimmed the outlook for output growth, also supporting the price outlook. Production out of Russia has already fallen for two consecutive months.
“Russian production is quite similar to the US shale, with output growth and decline looking like an echo of drilling amount several months prior,” said Sergey Vakulenko.
Amid skyrocketing tensions in the Middle East and the unending war between Russia and Ukraine, let’s take a look at some of the Best Oil & Gas Refinery Stocks to buy.
Our Methodology
For this article, we used the VanEck Oil Refiners ETF (CRAK) and the Yahoo screener to identify all companies in the Oil & Gas refining sector that are listed on the NASDAQ and NYSE. From that group, we selected stocks with positive upside potential based on Wall Street analyst ratings as of February 20, 2026. Finally, we ranked these stocks in ascending order by the number of hedge fund holders, using data from Insider Monkey’s Q4 2025 database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Best Oil & Gas Refinery Stocks to Buy
8. Delek US Holdings Inc (NYSE:DK)
Stock Upside Potential: 20.63%
Number of Hedge Fund Holders: 33
Delek US Holdings Inc (NYSE:DK) is among the best oil & gas refinery stocks to buy now. On February 18, Delek US Holdings Inc (NYSE:DK) announced that it plans to pay a quarterly dividend of $0.255 per share on March 9. This announcement came as the company prepares to release its Q4 2025 results on February 27.
In its Q3 2025 report, which was released in November, Delek posted adjusted EPS of $7.13. Wall Street was expecting it to report a loss per share of $0.09. Revenue of $2.89 billion rose from $3.04 billion in the same quarter in 2024 and surpassed $2.7 billion that was expected. The quarter was buoyed by $280.8 million in benefits tied to Small Refinery Exemptions granted by the U.S. Environmental Protection Agency.
On January 27, Morgan Stanley restated its Equal Weight rating on Delek stock but lowered the price target to $38 from $40. This action was driven by valuation reassessment as the firm pointed out that refining stocks had soared following the events in Venezuela. That said, Morgan Stanley remains constructive on the long-term outlook of refining companies.
Delek US Holdings Inc (NYSE:DK), based in Brentwood, TN, is a diversified energy company. Its specialties are petroleum refining, with operations strategically located in places like Krotz Springs, Louisiana, Tyler and Big Spring, Texas, and El Dorado, Arkansas. The company also runs renewable fuels, asphalt, and logistics businesses.
7. CVR Energy, Inc. (NYSE:CVI)
Stock Upside Potential: 17.61%
Number of Hedge Fund Holders: 32
CVR Energy, Inc. (NYSE:CVI) is among the best oil & gas refinery stocks to buy now. CVR Energy, Inc. (NYSE:CVI) reported its Q4 2025 results on February 18. It posted a loss per share of $0.80, which missed the consensus forecast of a loss per share of $0.59. Revenue of $1.81 billion surpassed the consensus expectation of $1.76 billion.
During the quarter, the company completed the process of reverting its Wynnewood facility from renewable diesel back to hydrocarbon processing. While issuing its Q4 preliminary results on January 26, CVR Energy had warned that the facility reversion would push it to a loss because of accelerated depreciation.
“We remain optimistic about the intermediate term prospects for refining, with expected steady increases in global demand for refined products and fewer supply additions compared to the past few years,” commented Mark Pytosh, CEO of CVR Energy.
Regarding cash, the company finished 2025 with $511 million in cash and cash equivalents. CVR Energy plans to pay a quarterly dividend of $0.37 per common unit on March 9.
On January 29, CVR Energy priced $1 billion in senior unsecured notes. It said the offering consisted of $600 million notes maturing in 2031 and $400 million notes maturing in 2034. It plans to use the proceeds from the offering to redeem some existing notes.
CVR Energy, Inc. (NYSE:CVI) is headquartered in Sugar Land, Texas. It runs a diversified business but primarily engages in petroleum refining and marketing through its CVR Refining unit. Additionally, the company engages in nitrogen fertilizer production through CVR Partners, LP., where it owns a stake of 37%.
6. Par Pacific Holdings Inc (NYSE:PARR)
Stock Upside Potential: 23.66%
Number of Hedge Fund Holders: 39
Par Pacific Holdings Inc (NYSE:PARR) is among the best oil & gas refinery stocks to buy now. Par Pacific Holdings Inc (NYSE:PARR) is due to release its Q4 2025 results on February 24.
On January 12, Piper Sandler lowered its price target on Par Pacific to $57 from $59 while maintaining an Overweight rating. The firm noted that discussions in the energy sector remain focused on the potential impacts following the removal of President Maduro, with crude market dynamics expected to shift in the medium to long term.
In the near term, Piper believes U.S. refiners will feel the greatest impact. The firm expects that sanction relief and U.S. involvement could materially alter crude trade flows, redirecting between 200,000 and 400,000 barrels per day away from Asia and toward the U.S. Gulf.
Headquartered in Houston, Texas, Par Pacific Holdings, Inc. (NYSE:PARR) provides liquid fuels. It owns and operates 219,000 bpd of refining capacity. Additionally, it owns a large energy infrastructure network that includes 13 million barrels of storage, rail and pipeline assets.
5. BP PLC (NYSE:BP)
Stock Upside Potential: 2.36%
Number of Hedge Fund Holders: 50
BP PLC (NYSE:BP) is among the best oil & gas refinery stocks to buy now. On February 10, BP PLC (NYSE:BP) released its Q4 2025 results that showed underlying profit of $1.5 billion. However, the company posted a $3.4 billion IFRS loss after absorbing a $4 billion hit due to impairments.
In full-year 2025, BP’s capital expenditure was $14.5 billion, representing a 10% reduction compared to the 2024 level. It forecasts 2026 capex in the range of $13 billion to $13.5 billion. Moreover, it expects $9 billion – $10 billion in divestment proceeds in 2026.
As part of an effort to strengthen its balance sheet, BP has decided to suspend its share repurchase program. The management said this decision would create a stronger platform for BP to invest with discipline.
On February 11, Piper Sandler hiked its price target on BP stock to $44 from $43 while reiterating a Neutral rating. For raising the price target, the research firm pointed to BP’s decision to pause share buybacks and reduce capital expenditures. According to Piper Sandler, these actions should provide flexibility for the company to develop its resource pipeline while positioning for future shareholder returns. On maintaining the Neutral rating, the firm cited valuation concerns and balance sheet headwinds.
Headquartered in London, England, BP PLC (NYSE:BP) is a multinational oil and gas company. In the US, BP operates refineries in Whiting, Indiana and Cherry Point, Washington. The US refineries account for 40% of the company’s global refining capacity.
4. HF Sinclair Corp (NYSE:DINO)
Stock Upside Potential: 11.01%
Number of Hedge Fund Holders: 53
HF Sinclair Corp (NYSE:DINO) is among the best oil & gas refinery stocks to buy now. HF Sinclair Corp (NYSE:DINO) released its Q4 2025 earnings results on February 18. It posted adjusted EPS of $1.20, which beat the consensus estimate of $0.63. Revenue of $6.46 billion also surpassed the consensus estimate of $6.2 billion. The quarter was buoyed by strong refining margins.
During the quarter, HF Sinclair Corp returned $230 million to shareholders in dividends and share buybacks. The company finished 2025 with $978 million in cash and cash equivalents, representing an increase of $178 million from the end of 2024. The company plans to pay a quarterly dividend of $0.50 per share on March 12.
In other news, HF Sinclair announced on February 18 that it had formed a joint venture with UPOP Holdings. The joint venture is called Green Trail Fuels, and will house 30 retail sites in New Mexico and Colorado. HF Sinclair owns a 50% stake in the joint venture.
On January 16, Piper Sandler cut its price target on HF Sinclair stock slightly to $67 from $68 but maintained a Buy rating on it. For lowering the price target, Piper Sandler cited challenges in HF Sinclair’s West Coast operations. It noted issues like reduced throughput and lower refining capture rates. These concerns also led Piper Sandler to slash its earnings projections for HF Sinclair’s Q4 2025.
However, Piper Sandler remains bullish on HF Sinclair’s outlook heading into 2026 because it believes the West Coast issues are temporary. Looking ahead, the firm sees HF Sinclair benefiting from a tightening West Coast market and widening crude differentials. Additionally, the firm sees underappreciated potential from HF Sinclair’s Sustainable Aviation Fuel (SRE) monetization.
Dallas-based HF Sinclair Corp (NYSE:DINO) manufactures and markets a range of petroleum products, including gasoline, diesel, jet fuel, and lubricants. Moreover, the company produces renewable diesel, specialty chemicals, and asphalt. HF Sinclair was founded in 1947.
3. Phillips 66 (NYSE:PSX)
Stock Upside Potential: 0.10%
Number of Hedge Fund Holders: 60
Phillips 66 (NYSE:PSX) is among the best oil & gas refinery stocks to buy now. On February 18, Reuters reported that U.S. refiner Phillips 66 (NYSE:PSX) is seeking approval to buy heavy crude directly from Venezuela’s state oil company PDVSA starting in April, aiming to boost profits by avoiding middlemen like Chevron and trading houses.
The company recently purchased Venezuelan oil from Vitol at about $9 per barrel below Brent and says its Gulf Coast refineries can process a wide range of crude, making access to heavy Venezuelan oil a valuable opportunity. However, Reuters noted that refiners face challenges, as PDVSA requires special U.S. Treasury licenses and banks remain cautious about financing Venezuelan oil trades.
On February 11, Phillips 66 announced a quarterly dividend of $1.27 per share, up $0.07 from the prior payout. The dividend will be paid on March 4, 2026 to shareholders of record on February 23, 2026.
CEO Mark Lashier said the increase reflects confidence in the company’s ability to generate steady cash flows. He noted that Phillips 66 has raised its dividend every year since 2012, achieving a 15% compound annual growth rate.
On February 6, TD Cowen raised its price target on Phillips 66 to $155 from $151 while keeping a Buy rating. The firm said lower refining costs and Phillips 66’s ability to add 45,000 barrels per day of refining capacity were key reasons for the upgrade.
TD Cowen noted that Phillips 66’s refining business should benefit in the near term from seasonal demand and favorable Canadian crude price differentials. The firm expects the Midstream segment to stay steady until late 2026, but by 2027 its earnings could fall slightly below company guidance.
The analysts also suggested Phillips 66 could perform better in the second half of 2026 if Midstream ramps up and chemicals improve, though the Marketing segment’s outlook is less certain. In recent results, Phillips 66 reported Q4 2025 EPS of $2.47, beating forecasts of $2.25. However, revenue of $32.14 billion missed expectations of $34.14 billion, showing mixed performance.
Phillips 66 (NYSE:PSX) is a large downstream energy company with global operations in the U.S., U.K., Germany, and other countries. It runs five main businesses: Midstream (pipelines and transport), Chemicals, Refining (turning crude oil into fuels), Marketing & Specialties (fuel sales and lubricants), and Renewable Fuels.
2. Marathon Petroleum Corporation (NYSE:MPC)
Stock Upside Potential: 3.06%
Number of Hedge Fund Holders: 63
Marathon Petroleum Corporation (NYSE:MPC) is among the best oil & gas refinery stocks to buy now. On February 9, BMO Capital raised its price target on Marathon Petroleum (NYSE:MPC) to $225 from $200, while keeping an Outperform rating. The upgrade came as shares traded near a 52‑week high after strong gains, supported by better‑than‑expected Q4 2025 results and positive Q1 2026 guidance.
BMO highlighted Marathon’s strong refining performance, noting that earnings per share over the past year reached $13.22 with a P/E ratio of 15.42. The firm lifted its long‑term forecasts, raising 2026 EBITDA by 3% and cash flow estimates by 2%, mainly driven by refining strength.
Midstream estimates were trimmed slightly, but BMO remains positive on MPLX’s pipeline projects, which are expected to deliver 5% EBITDA growth and double‑digit distribution growth. Overall, BMO values Marathon between $215 and $235, citing its advantaged refining footprint across key U.S. regions.
Marathon Petroleum Corporation (NYSE:MPC) is a U.S. energy company that works in the downstream part of the oil business. It has three main areas: Refining & Marketing, where crude oil is turned into fuels and sold. The second is Midstream, which covers pipelines and storage to move oil and fuel. The third is Renewable Diesel, focused on cleaner fuel made from renewable sources.
1. Valero Energy Corp (NYSE:VLO)
Stock Upside Potential: 0.72%
Number of Hedge Fund Holders: 64
Valero Energy Corp (NYSE:VLO) is among the best oil & gas refinery stocks to buy now. On February 13, Reuters reported that Valero Energy Corp (NYSE:VLO) was set to import up to 6.5 million barrels of crude from Venezuela in March. The report further said Valero would process the crude at its Gulf Coast refineries.
In its Q4 2025 earnings report released on January 29, Valero posted results that surpassed consensus expectations. EPS of $3.82 exceeded the $3.11 that was forecast. Revenue of $30.4 billion also surpassed the expected $29 billion. In the company’s refining business, operating income soared to $1.7 billion from $437 million in the same quarter in 2024.
The quarter was bolstered by improvements in margins throughput volumes. Valero ended 2025 with $4.7 billion in cash and cash equivalents. The company returned $1.4 billion in cash to shareholders in Q4 2025 and $4 billion in the full-year 2025.
Following Valero’s solid Q4 results, Citi analyst Vikram Bagri boosted the firm’s price target on Valero stock to $212 from $190 while maintaining a Neutral rating.
Valero Energy Corp (NYSE:VLO) is a multinational manufacturer and marketer of fuels and petrochemical products. The company has a portfolio of 15 refineries across the US, Canada, and the UK. Its refining capacity is about 3.2 million barrels per day. Valero has a stake in Diamond Green Diesel Holdings, a joint venture that produces low-carbon fuels.
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