5 Energy Stocks Capitalizing on the New Supply Crisis

The ongoing geopolitical conflict involving Iran has sparked a highly lucrative earnings season for U.S. oil refiners. Even as Brent crude prices declined to approximately $90 per barrel from a peak of $126, the global shortage of refined products has intensified. Reuters reports that global refinery throughput in July dropped by nearly 5 million barrels per day compared to the previous year, driven by operational constraints in Middle Eastern facilities and Ukrainian strikes on Russian refineries, which dragged Russian processing down to a near 20-year low.

U.S. refiners stepped in to fill this supply gap, operating at near-record capacity and boosting exports of diesel, gasoline, and jet fuel. Consequently, the U.S. diesel crack spread reached a record high of $102.20 per barrel. Shares of major domestic refiners Marathon Petroleum (NYSE:MPC), Valero Energy (NYSE:VLO), and Phillips 66 (NYSE:PSX) have surged by 110%, 98%, and 75% respectively, significantly outperforming the S&P 500 Energy sector’s average gain of 36%.

With the vast majority of S&P 500 companies having reported second-quarter results, the Energy sector led all 11 market sectors with 147% year-over-year earnings growth and a 42.5% increase in revenue. Within the sector, the Oil & Gas Refining & Marketing sub-industry posted the strongest performance with a 327% profit surge, followed by Integrated Oil & Gas at 177% and Exploration & Production at 117%.

Marathon Petroleum posted a massive revenue beat, bringing in $52.34 billion against Wall Street expectations of $40.87 billion. Phillips 66 reported revenue of $52.04 billion, while Chevron recorded $67.20 billion in sales and operating revenues.

Below are five energy stocks that emerged as the biggest beneficiaries of the second-quarter earnings season.

### 1. Marathon Petroleum (NYSE:MPC)
* **Market Cap:** $99.8B
* **YTD Returns:** 122.2%

Marathon Petroleum has capitalized heavily on the fuel shortages and elevated refining margins. The largest U.S. refiner posted a second-quarter profit of $5.14 billion—more than quadruple its $1.2 billion earnings from the same period last year—with diluted EPS rising to $17.73 on $52.34 billion in revenue.

The company’s Refining & Marketing segment generated $6.66 billion in adjusted EBITDA as refining margins more than doubled to $36.33 per barrel. Marathon ran its refining network at 94% capacity, processing 2.9 million barrels per day, with its Gulf Coast refineries running at 100%. Strategic crude sourcing, increased processing of discounted Canadian heavy crude, and higher jet-fuel yields allowed the company to capture 112% of the benchmark margin.

Year-to-date, Marathon’s stock has risen 116.89%. Wall Street analysts have responded by raising targets, with five analysts upgrading their 2026 earnings estimates to a consensus of $43.32 per share. Marathon also benefits from its majority stake in midstream operator MPLX (NYSE:MPLX), which plans to increase its distribution by 12.5% this year and next, providing Marathon with a steady stream of cash for dividends and buybacks.

### 2. Phillips 66 (NYSE:PSX)
* **Market Cap:** $93.2B
* **YTD Returns:** 85.3%

Phillips 66 reported a nearly 300% year-over-year jump in second-quarter adjusted earnings to $9.41 per share, beating consensus estimates of $7.68. The company’s refining margins more than doubled to $24.08 per barrel, while its midstream division recorded historic LPG export and fractionation volumes.

To expand its midstream footprint, Phillips 66 reached a final investment decision on the Western Gateway pipeline alongside partners Kinder Morgan (NYSE:KMI) and HF Sinclair (NYSE:DINO). The 1,300-mile joint-venture system will transport up to 230,000 barrels per day of refined products from the Midcontinent and Gulf Coast to markets in Arizona and California.

Phillips 66 utilized its strong cash flow to pay down $6.6 billion in debt during the quarter, aiming to lower net debt below $16 billion by the end of the year. The company also returned $887 million to shareholders through buybacks and dividends.

### 3. Chevron Corp. (NYSE:CVX)
* **Market Cap:** $392.3B
* **YTD Returns:** 33.3%

Chevron recorded its strongest quarterly performance in six years, with adjusted earnings reaching $12 billion ($6.06 per share), beating the $5.56 analyst consensus. The company benefited from elevated oil prices and its first full year of ownership of Hess.

Global production rose 20% to a record 4.07 million barrels of oil equivalent per day (boe/d), while domestic U.S. production hit an all-time high of 2.08 million boe/d. Chevron’s downstream segment saw profits jump to $4.9 billion from $737 million a year earlier due to higher refining margins.

The integration of Hess has generated $1.5 billion in annual run-rate synergies, ahead of schedule. Chevron returned $6.5 billion to shareholders during the quarter and maintained its annual buyback guidance of $10 billion to $20 billion. Additionally, Chevron announced a significant oil and gas condensate discovery offshore Angola at its 105-4X well, which it plans to tie back to existing infrastructure to speed up development.

### 4. Valero Energy (NYSE:VLO)
* **Market Cap:** $98.4B
* **YTD Returns:** 113.3%

Valero reported a record second-quarter profit of $3.7 billion, with adjusted earnings climbing to $12.54 per share from $2.28 in the prior-year period. Refining operating income tripled to $4.4 billion as margins nearly doubled to $23.62 per barrel. Throughput averaged 3 million barrels per day, and the company’s renewable diesel segment turned a $717 million profit, reversing a loss from the previous year.

Following the results, Barclays raised its price target on Valero to $323, while UBS and Wells Fargo adjusted their targets to $355 and $356, respectively. Valero returned $2.6 billion to investors via dividends and share repurchases during the quarter.

Operationally, the company is working to rebuild its 47,000-bpd diesel hydrotreater at its Port Arthur refinery, which was damaged in a March explosion. Valero expects the $250 million reconstruction project to be completed by the end of the year.

### 5. Bloom Energy (NYSE:BE)
* **Market Cap:** $67.7B
* **YTD Returns:** 166.3%

Bloom Energy has emerged as a key beneficiary of the artificial intelligence infrastructure buildout. The company manufactures on-site fuel-cell systems that allow data center developers to secure power quickly, bypassing lengthy utility grid connection queues. Bloom’s systems can be deployed in approximately 90 days.

For the second quarter, Bloom’s revenue rose 167% year-over-year to a record $1.07 billion, and adjusted EPS came in at $0.78. Product and installation revenues reached $888 million, leaving the company with a record backlog. Bloom subsequently raised its full-year 2026 revenue guidance to a range of $3.8 billion to $4.0 billion.

The company has secured major commercial agreements, including a $25 billion framework with Brookfield Asset Management (NYSE:BAM) to power AI infrastructure in Europe. Bloom also signed a deal to supply 328 MW of fuel cells to Nebius for an AI data center campus in New Jersey, marking one of its largest deployments to date.