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3 Refining & Marketing MLPs With Strong Industry Tailwinds
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The Zacks Oil and Gas - Refining & Marketing MLP industrybenefits from stable, fee-based businesses that include fuel storage, terminals and distribution assets. Tight refined-product inventories, firm export demand and disciplined fuel pricing continue to support margins, while operators have largely passed higher sourcing costs on to customers. The industry also carries a Zacks Industry Rank in the top 12% of all industries, reflecting improving earnings expectations. Although elevated gasoline prices may pressure fuel volumes and convenience-store traffic, strong infrastructure assets and resilient cash flows provide a solid foundation. The group has also outperformed both the broader energy sector and the S&P 500 over the past year, while still trading at an attractive valuation relative to the broader market. Investors seeking opportunities in the space may consider Suburban Propane Partners (SPH - Free Report) , NGL Energy Partners (NGL - Free Report) and Global Partners LP (GLP - Free Report) , which stand out for their strong operating positions and earnings growth potential.
Industry Overview
Master limited partnerships (or MLPs) differ from regular stocks since interests in them are referred to as units, and unitholders (not shareholders) are partners in the business. Importantly, these low-risk hybrid entities bring together the tax benefits of a limited partnership with the liquidity of publicly traded securities that earn a stable income. The assets owned by these partnerships are typically oil and natural gas pipelines and storage/infrastructure facilities. The Zacks Oil and Gas - Refining & Marketing MLP industry is a sub-sector of this business model. These firms operate refined product terminals, storage facilities and transportation services. They are involved in selling refined petroleum products (including heating oil, gasoline, residual oil, jet fuel, etc.) and a plethora of non-energy materials (like asphalt, road salt, clay and gypsum).
3 Trends Defining Oil and Gas - Refining & Marketing MLP Industry's Future
Current Supply Tightness is Supporting Refined-Product Margins: U.S. gasoline inventories entered the 2026 driving season at relatively low levels after several weeks of withdrawals. At the same time, exports remained strong, imports into the East Coast were limited and global supply disruptions reduced product availability. This is not merely a possible future scenario; these conditions were already visible during the latest reported period. Tight inventories can strengthen wholesale margins, raise the value of storage and terminal capacity, and improve pricing power across fuel-distribution networks. Even after geopolitical tensions ease, rebuilding depleted inventories may take time, keeping the industry backdrop supportive.
Fuel Retailers are Currently Passing Higher Costs: The 2026 rise in fuel prices has not produced the margin compression that often accompanies a rapidly increasing cost environment. Industry participants reported that retailers were adjusting pump prices quickly enough to recover higher sourcing costs, creating a practical floor under per-gallon margins. Volatility has also generated frequent pricing opportunities, allowing operators with strong systems and market knowledge to respond faster. Although volumes have weakened in some markets, stronger unit margins have partly offset the decline. This current pricing discipline is favorable for refining and marketing MLPs with large retail networks and flexible fuel-sourcing arrangements.
High Pump Prices are Already Reducing Fuel Volumes: During the latest reported period, industry operators observed lower gallons purchased per visit and weaker same-store fuel volumes as gasoline prices increased. The decline became more noticeable as market volatility intensified, suggesting that consumers are beginning to adjust their driving and spending habits. Stronger per-gallon margins have helped protect gross profit so far, but this offset may weaken if elevated prices persist. Refining and marketing MLPs remain vulnerable because sustained volume losses can also reduce convenience-store traffic, merchandise sales and the utilization of distribution assets.
Zacks Industry Rank Indicates Positive Outlook
The Zacks Oil and Gas – Refining & Marketing MLP is a seven-stock group within the broader Zacks Oil – Energy sector. The industry currently carries a Zacks Industry Rank #30, which places it in the top 12% of 247 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates fairly strong near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the top 50% of the Zacks-ranked industries is a result of improving earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are becoming optimistic about this group’s earnings growth potential. As a matter of fact, the industry’s earnings estimates for 2026 have gone up nearly 7.5% in the past year.
Considering the encouraging dynamics of the industry, we will present a few stocks that you may want to consider for your portfolio. But it’s worth taking a look at the industry’s shareholder returns and current valuation first.
Industry Outperforms S&P 500 & Sector
The Zacks Oil and Gas – Refining & Marketing MLP industry has fared better than the Zacks S&P 500 composite and the broader Zacks Oil – Energy sector over the past year.
The industry has gained 45.7% over this period compared with the broader sector’s increase of 29%. Meanwhile, the S&P 500 has gone up 23.1%.
One-Year Price Performance
Industry's Current Valuation
Since midstream-focused oil and gas partnerships use fixed-rate debt for most of their borrowings, it makes sense to value them based on the EV/EBITDA (enterprise value/ earnings before interest, tax, depreciation and amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of non-cash expenses.
On the basis of the trailing 12-month enterprise value-to-EBITDA (EV/EBITDA), the industry is currently trading at 12.76X, significantly lower than the S&P 500’s 18.68X. It is, however, well above the sector’s trailing 12-month EV/EBITDA of 6.70X.
Over the past five years, the industry has traded as high as 13.33X and as low as 7.65X, with a median of 9.90X, as the chart below shows.
Trailing 12-Month Enterprise Value-to-EBITDA (EV/EBITDA) Ratio (Past Five Years)
3 Stocks to Focus On
Suburban Propane Partners, LP:It is one of the largest propane distributors in the United States, with operations dating back to 1928. The Zacks Rank #1 (Strong Buy) firm serves around one million customers across residential, commercial, industrial and agricultural segments through a wide network of locations nationwide. Suburban Propane Partners primarily focuses on coastal markets and offers both traditional fuels and newer renewable energy solutions, supported by its growing investments in low-carbon alternatives. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alongside its core propane business, SPH is expanding into renewable natural gas, hydrogen and blended fuels. Suburban Propane Partners generates steady cash flows and maintains a disciplined financial approach, enabling consistent distributions to unitholders with stable coverage levels over time.
The fiscal 2026 Zacks Consensus Estimate for Suburban Propane Partners indicates 34% year-over-year earnings per unit growth. It has a trailing four-quarter earnings surprise of roughly 24.3%, on average. SPH units have edged down 1.2% in a year.
Price and Consensus: SPH
NGL Energy Partners LP:It is a diversified midstream energy company that provides water solutions, crude oil logistics and liquids logistics services across the United States. Its Water Solutions business transports, treats, recycles and disposes of produced water for oil and gas producers, while its logistics operations handle crude oil, propane, butane and other energy products through pipelines, terminals, storage facilities and transportation assets.
The #1 Ranked firm has built a strong presence in the Delaware Basin with an extensive water infrastructure network supported by long-term customer contracts. It also operates crude oil pipelines, storage terminals and liquids logistics assets that serve refineries, industrial customers and energy markets across the United States and Canada, helping deliver stable and diversified operations.
The fiscal 2027 Zacks Consensus Estimate for NGL Energy Partners indicates 254.7% year-over-year earnings per unit growth. It has a market capitalization of nearly $2 billion. NGL units have gone up 256.6% in a year.
Price and Consensus: NGL
Global Partners LP:Global Partners is a U.S.-based partnership engaged in the sourcing, storage, distribution, and sale of energy products. It operates a large, integrated network that includes around 1,700 fueling stations, 54 liquid energy terminals, and convenience stores across key regions. Global Partners supplies gasoline, distillates, renewable fuels, and crude oil, serving both wholesale and retail customers through its logistics and marketing capabilities.
Its vertically integrated model supports stable operations and margin growth, while regular acquisitions help expand its footprint. GLP has shown a consistent focus on returning cash to investors, highlighted by a long track record of quarterly distribution increases, making distributions an important part of its overall investor appeal.
The 2026 Zacks Consensus Estimate for Global Partners indicates 113.1% year-over-year earnings per unit growth. The Zacks Rank #3 (Hold) operator has a trailing four-quarter earnings surprise of roughly 100.7%, on average. GLP units have gone down 6.2% in a year.
View the Zacks #1 Rank List
Image: Bigstock
3 Refining & Marketing MLPs With Strong Industry Tailwinds
The Zacks Oil and Gas - Refining & Marketing MLP industrybenefits from stable, fee-based businesses that include fuel storage, terminals and distribution assets. Tight refined-product inventories, firm export demand and disciplined fuel pricing continue to support margins, while operators have largely passed higher sourcing costs on to customers. The industry also carries a Zacks Industry Rank in the top 12% of all industries, reflecting improving earnings expectations. Although elevated gasoline prices may pressure fuel volumes and convenience-store traffic, strong infrastructure assets and resilient cash flows provide a solid foundation. The group has also outperformed both the broader energy sector and the S&P 500 over the past year, while still trading at an attractive valuation relative to the broader market. Investors seeking opportunities in the space may consider Suburban Propane Partners (SPH - Free Report) , NGL Energy Partners (NGL - Free Report) and Global Partners LP (GLP - Free Report) , which stand out for their strong operating positions and earnings growth potential.
Industry Overview
Master limited partnerships (or MLPs) differ from regular stocks since interests in them are referred to as units, and unitholders (not shareholders) are partners in the business. Importantly, these low-risk hybrid entities bring together the tax benefits of a limited partnership with the liquidity of publicly traded securities that earn a stable income. The assets owned by these partnerships are typically oil and natural gas pipelines and storage/infrastructure facilities. The Zacks Oil and Gas - Refining & Marketing MLP industry is a sub-sector of this business model. These firms operate refined product terminals, storage facilities and transportation services. They are involved in selling refined petroleum products (including heating oil, gasoline, residual oil, jet fuel, etc.) and a plethora of non-energy materials (like asphalt, road salt, clay and gypsum).
3 Trends Defining Oil and Gas - Refining & Marketing MLP Industry's Future
Current Supply Tightness is Supporting Refined-Product Margins: U.S. gasoline inventories entered the 2026 driving season at relatively low levels after several weeks of withdrawals. At the same time, exports remained strong, imports into the East Coast were limited and global supply disruptions reduced product availability. This is not merely a possible future scenario; these conditions were already visible during the latest reported period. Tight inventories can strengthen wholesale margins, raise the value of storage and terminal capacity, and improve pricing power across fuel-distribution networks. Even after geopolitical tensions ease, rebuilding depleted inventories may take time, keeping the industry backdrop supportive.
Fuel Retailers are Currently Passing Higher Costs: The 2026 rise in fuel prices has not produced the margin compression that often accompanies a rapidly increasing cost environment. Industry participants reported that retailers were adjusting pump prices quickly enough to recover higher sourcing costs, creating a practical floor under per-gallon margins. Volatility has also generated frequent pricing opportunities, allowing operators with strong systems and market knowledge to respond faster. Although volumes have weakened in some markets, stronger unit margins have partly offset the decline. This current pricing discipline is favorable for refining and marketing MLPs with large retail networks and flexible fuel-sourcing arrangements.
High Pump Prices are Already Reducing Fuel Volumes: During the latest reported period, industry operators observed lower gallons purchased per visit and weaker same-store fuel volumes as gasoline prices increased. The decline became more noticeable as market volatility intensified, suggesting that consumers are beginning to adjust their driving and spending habits. Stronger per-gallon margins have helped protect gross profit so far, but this offset may weaken if elevated prices persist. Refining and marketing MLPs remain vulnerable because sustained volume losses can also reduce convenience-store traffic, merchandise sales and the utilization of distribution assets.
Zacks Industry Rank Indicates Positive Outlook
The Zacks Oil and Gas – Refining & Marketing MLP is a seven-stock group within the broader Zacks Oil – Energy sector. The industry currently carries a Zacks Industry Rank #30, which places it in the top 12% of 247 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates fairly strong near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the top 50% of the Zacks-ranked industries is a result of improving earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are becoming optimistic about this group’s earnings growth potential. As a matter of fact, the industry’s earnings estimates for 2026 have gone up nearly 7.5% in the past year.
Considering the encouraging dynamics of the industry, we will present a few stocks that you may want to consider for your portfolio. But it’s worth taking a look at the industry’s shareholder returns and current valuation first.
Industry Outperforms S&P 500 & Sector
The Zacks Oil and Gas – Refining & Marketing MLP industry has fared better than the Zacks S&P 500 composite and the broader Zacks Oil – Energy sector over the past year.
The industry has gained 45.7% over this period compared with the broader sector’s increase of 29%. Meanwhile, the S&P 500 has gone up 23.1%.
One-Year Price Performance
Industry's Current Valuation
Since midstream-focused oil and gas partnerships use fixed-rate debt for most of their borrowings, it makes sense to value them based on the EV/EBITDA (enterprise value/ earnings before interest, tax, depreciation and amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of non-cash expenses.
On the basis of the trailing 12-month enterprise value-to-EBITDA (EV/EBITDA), the industry is currently trading at 12.76X, significantly lower than the S&P 500’s 18.68X. It is, however, well above the sector’s trailing 12-month EV/EBITDA of 6.70X.
Over the past five years, the industry has traded as high as 13.33X and as low as 7.65X, with a median of 9.90X, as the chart below shows.
Trailing 12-Month Enterprise Value-to-EBITDA (EV/EBITDA) Ratio (Past Five Years)
3 Stocks to Focus On
Suburban Propane Partners, LP:It is one of the largest propane distributors in the United States, with operations dating back to 1928. The Zacks Rank #1 (Strong Buy) firm serves around one million customers across residential, commercial, industrial and agricultural segments through a wide network of locations nationwide. Suburban Propane Partners primarily focuses on coastal markets and offers both traditional fuels and newer renewable energy solutions, supported by its growing investments in low-carbon alternatives. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alongside its core propane business, SPH is expanding into renewable natural gas, hydrogen and blended fuels. Suburban Propane Partners generates steady cash flows and maintains a disciplined financial approach, enabling consistent distributions to unitholders with stable coverage levels over time.
The fiscal 2026 Zacks Consensus Estimate for Suburban Propane Partners indicates 34% year-over-year earnings per unit growth. It has a trailing four-quarter earnings surprise of roughly 24.3%, on average. SPH units have edged down 1.2% in a year.
Price and Consensus: SPH
NGL Energy Partners LP:It is a diversified midstream energy company that provides water solutions, crude oil logistics and liquids logistics services across the United States. Its Water Solutions business transports, treats, recycles and disposes of produced water for oil and gas producers, while its logistics operations handle crude oil, propane, butane and other energy products through pipelines, terminals, storage facilities and transportation assets.
The #1 Ranked firm has built a strong presence in the Delaware Basin with an extensive water infrastructure network supported by long-term customer contracts. It also operates crude oil pipelines, storage terminals and liquids logistics assets that serve refineries, industrial customers and energy markets across the United States and Canada, helping deliver stable and diversified operations.
The fiscal 2027 Zacks Consensus Estimate for NGL Energy Partners indicates 254.7% year-over-year earnings per unit growth. It has a market capitalization of nearly $2 billion. NGL units have gone up 256.6% in a year.
Price and Consensus: NGL
Global Partners LP:Global Partners is a U.S.-based partnership engaged in the sourcing, storage, distribution, and sale of energy products. It operates a large, integrated network that includes around 1,700 fueling stations, 54 liquid energy terminals, and convenience stores across key regions. Global Partners supplies gasoline, distillates, renewable fuels, and crude oil, serving both wholesale and retail customers through its logistics and marketing capabilities.
Its vertically integrated model supports stable operations and margin growth, while regular acquisitions help expand its footprint. GLP has shown a consistent focus on returning cash to investors, highlighted by a long track record of quarterly distribution increases, making distributions an important part of its overall investor appeal.
The 2026 Zacks Consensus Estimate for Global Partners indicates 113.1% year-over-year earnings per unit growth. The Zacks Rank #3 (Hold) operator has a trailing four-quarter earnings surprise of roughly 100.7%, on average. GLP units have gone down 6.2% in a year.
Price and Consensus: GLP