When crude prices surge on geopolitical shock, refiners do not all respond equally. The death of Iranian Supreme Leader Ayatollah Ali Khamenei on February 28, 2026, per NPR reporting, sent immediate shockwaves through energy markets. WTI crude climbed from $61.60 on February 2 to $71.13 by March 2, and prediction markets now assign 97% probability to crude reaching $75 by end of March, with 81% confidence in a move to $80. For refiners, higher crude with a lag in refined product pricing can expand crack spreads and margins sharply. Four U.S. refiners stand out in this environment, ranked by EPS beat magnitude, refining margin expansion, throughput performance, dividend strength, and balance sheet resilience.
#4: Phillips 66
Phillips 66 (NYSE:PSX) posted a strong Q4 2025, with shares up 16.75% over the past month as the Iran catalyst took hold. The company delivered adjusted EPS of $2.47 against an estimate of $1.65, a meaningful beat, and achieved a record 88% clean product yield with 99% crude utilization. Its acquisition of the remaining 50% of WRB Refining LP and the sale of 65% of its Germany/Austria retail business for a $1.98B net gain signal a sharper focus on core refining. The drag: a $403M West Coast refining loss and weak chemicals margins limit the upside case. PSX lands at #4 primarily because its dividend yield of 2.97% and diversified portfolio make it less of a pure-play crude spike beneficiary than peers. CEO Mark Lashier called 2025 “a transformative year” for the company, but execution risk remains elevated.
#3: Valero Energy
Valero Energy (NYSE:VLO) has been one of the strongest performers in the group, with shares up 25.95% over the past month. The company reported record refining throughput of 3.1 million barrels per day in Q4 and refining segment operating income of $1.69B versus $437M year-over-year. Valero raised its quarterly dividend 6% to $1.20 per share, extending a multi-year growth streak, and holds $4.69 billion in cash. The Benicia Refinery closure in April 2026 removes a $1.1B impairment drag and exits California’s difficult regulatory environment. Valero ranks #3 because full-year 2025 net income declined 15.23% year-over-year and the renewable diesel segment remains a headwind. CEO Lane Riggs noted ‘Record refining throughput and ethanol production in both Q4 and full year.’ as the headline achievement.
#2: PBF Energy
PBF Energy (NYSE:PBF) is the highest-beta name in this group: shares are up 39.06% over the past month and up 12.68% from the prior close this morning. The Q4 EPS beat was extraordinary: adjusted EPS of $0.49 versus an estimate of -$0.20, a 345% beat. Gross refining margin expanded to $11.16 per barrel from $4.89 year-over-year. The Martinez refinery, damaged by fire, completed construction on February 16, 2026 with catalytic cracking restart targeted for the first week of March, adding meaningful throughput capacity at precisely the right moment in the crude cycle. PBF’s RBI cost reduction program delivered $230M+ in run-rate savings with a $350M target by year-end 2026. The risks are real: net debt rose to $1.62 billion from $921 million year-over-year, and the full-year 2025 operating loss ex-special items was -$479.5 million. CEO Matthew Lucey framed the shift clearly: ‘Many recent headwinds are now converting to tailwinds for refiners, particularly for PBF.’ PBF earns the #2 spot on turnaround momentum and leverage to a crude spike, but the balance sheet and FY loss keep it from the top.
#1: Marathon Petroleum
Marathon Petroleum (NYSE:MPC) leads this group on nearly every metric that matters in a crude spike environment. Q4 2025 adjusted EPS came in at $4.07 versus an estimate of $2.71, a 50% beat, while Refining and Marketing segment adjusted EBITDA hit $2.00 billion versus $559 million year-over-year. Refining margins reached $18.65 per barrel, the highest in this peer group. Marathon returned $4.5 billion to shareholders, including $1.3 billion in Q4, and maintains a $4.4 billion share repurchase authorization. Its MPLX midstream partnership contributes $2.8 billion in annualized distributions to MPC, providing a durable cash flow floor regardless of refining margin volatility. Shares have gained 25.42% over the past month. CEO Maryann Mannen credited ‘Strong refining operational performance and commercial execution drove cash flow generation.’ for the cash flow results.
The Verdict
When crude surges on geopolitical shock, refiners with the widest margins, strongest throughput, and most durable capital return frameworks capitalize most. Among the four refiners examined, Marathon Petroleum posted the highest refining margins, the largest EPS beat, and the most shareholder capital returned in Q4 2025. The Iran-driven crude spike continues to develop, with prediction markets pricing in further upside through March. How each refiner performs will depend on how crack spreads, throughput, and balance sheet strength hold up as the geopolitical situation evolves.
