This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Refining Stocks With High Margins as Winter Winds Down

Stocks in this article: ACMP BPT HES PSXP REGI

James Dennin, Kapitall: Gas prices are about go to up, so we found 5 refining stocks that are primed for Summer. 

Gas prices are about to go up significantly as refineries shut down many of their facilities for routine maintenance. People drive a lot more in the summer than they do in the winter, and most gas companies use a lower-emission grade of fuel during warmer months. 

[Read more from Kapitall: Can These Highly Profitable Agriculture Stocks Survive California’s Drought?]

Businesses are used to this cycle. Gas prices fluctuate seasonally, so companies are used to factoring in a maintenance period with wider margins when the gasoline supply is squeezed. Maintenance is expected to peak in March when about 10% of the US oil supply is offline – just in time to turn the engines back on for the spring. 

Suncor (SU), which will keep its plants open throughout the first half of the year, stands to benefit from this trend.

Other beneficiaries include firms in the oil refining sector. Investors can reasonably expect companies that refine oil into gas will benefit disproportionately from higher gas prices. 

We decided to build a list of stocks in the refining and marketing industries that have high operating margins. Operating margins are the company's revenues left over after expenses but before things like fines and legal fees. Given that the margin on a barrel of gasoline is expected to rise by almost three fold between now and April, these companies are worth following in the coming months. 

​Click on the interactive chart below to view data over time. 

1.Access Midstream Partners, L.P. ( ACMP):Owns, operates, develops, and acquires natural gas, natural gas liquids and oil gathering systems, and other midstream energy assets in the United States. Market cap at $10.02B, most recent closing price at $56.22.

Operating Margin: 25.2%

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs