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BP's Whiting Refinery Hit by Flooding After Severe Midwest Storms

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Key Takeaways

  • Severe storms caused flooding that disrupted BP's 440,000 bpd Whiting refinery in Indiana.
  • Crude distillation, catalytic crackers, and hydrotreaters were among the units taken offline.
  • Emergency crews are on-site, with flaring used to stabilize operations during the disruption.

BP plc (BP - Free Report) confirmed on Tuesday that operations at its 440,000-barrel-per-day Whiting refinery in Indiana have been disrupted following severe thunderstorms that swept across Northwest Indiana overnight, causing widespread flooding in the area, per a Reuters report.

The Whiting facility, the largest refinery in the U.S. Midwest, saw several major processing units taken offline due to the flooding, according to consultancy Wood Mackenzie. Impacted units include crude distillation units, fluid catalytic crackers, vacuum distillation systems and multiple hydrotreaters. BP did not specify which facilities were affected but acknowledged that flaring activity is underway to maintain safe operations.

BP explained that the overnight thunderstorms in Northwest Indiana brought severe flooding to the area, which disrupted operations at the Whiting refinery. The company noted that flaring is being used on-site as part of standard safety measures to keep the facility stable during the disruption.

Emergency response and operations crew remain on-site to manage the effects of the storm, ensuring safety and stability across the refinery complex.

The Whiting refinery plays a critical role in regional and national fuel supply, producing gasoline, diesel and jet fuel. Any extended outage could ripple through Midwest energy markets, though immediate price impacts appeared limited on Tuesday. Traders reported Chicago-market CBOB gasoline at 4 cents per gallon, below the New York Mercantile Exchange futures benchmark, compared with a 9-cent discount in the prior session.

The disruption followed as BP continues reshaping its global energy portfolio. Despite operational pressures, the company announced a larger-than-expected final dividend, a move that buoyed investor sentiment and pushed shares higher.

The full extent of production losses at Whiting remains unclear, though analysts caution that prolonged downtime at such a vital facility could tighten fuel supplies heading into the late summer driving season.

BP’s Zacks Rank and Key Picks

BP currently carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at a couple of better-ranked stocks like Antero Midstream Corporation (AM - Free Report) , Enbridge Inc. (ENB - Free Report) and Precision Drilling Corporation (PDS - Free Report) . While both Antero Midstream and Enbridge carry a Zacks Rank #2 (Buy) at present, Precision Drilling sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.

AM’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 1.13%.

Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term contracts that act as a protection against big oil price swings or changes in shipment. 

ENB’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 5.61%.

Precision Drilling is an oilfield services company. The company provides contract drilling, well servicing and strategic support services to the oil and gas industry in North America and internationally. It provides land drilling, directional drilling, turnkey drilling, camp and catering services, and procures and distributes oilfield supplies.

PDS’ earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average surprise of 977.7%. The Zacks Consensus Estimate for 2025 earnings indicates a 14.2% year-over-year decline.

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