Direct Answer
9 SEC filers are classified under the Standard Industrial Classification code that describes the refining & marketing industry, and their latest annual reports show $1.01 trillion of combined revenue and a median operating margin of 2.6%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Refining and marketing companies refine crude oil into fuels and sell them through wholesale networks and retail stations. They earn refining margins on processing and marketing margins on distribution and retail sales. The first numbers to compare across companies here are refinery throughput, refining margin and retail fuel margin.
Key Industry Metrics
- Refinery throughput: Barrels of crude processed per day. It shows how much of the plant's capacity earns margin, and outages or turnarounds lower the figure.
- Refining margin: Profit per barrel from turning crude into products. It varies with crack spreads and crude differentials, so compare through the cycle.
- Retail fuel margin: Cents earned per gallon sold through stations. It tends to be steadier than refining margin and can rise when wholesale prices fall faster than pump prices.
- Operating cost per barrel: Cost to run the refinery per barrel processed, including energy and labor. Lower costs raise margin; large plants with efficient energy use usually score better.
- Return on capital employed: Profit relative to the capital invested across refining and marketing. It is cyclical, so compare through a full cycle against the cost of capital.
Primary Macro Drivers
- Crack spreads and crude differentials: Refining margin is product price less crude cost, so wider spreads and cheaper crude lift margin per barrel.
- Fuel demand and inventories: Strong demand and low inventories support product prices and retail margins, while surplus stock reduces them.
- Refinery outages: Outages elsewhere tighten supply and lift margins for operating plants, but problems at the company's own sites cut throughput.
- Renewable fuel credit costs: Buying credits to meet blending rules adds to cost per barrel for refiners that do not blend enough, reducing margin.
Major Risks
- Margin cycles: Refining and retail margins move between strong and weak periods, so earnings fluctuate; watch refining margin and retail fuel margin trends.
- Plant incidents: Fires and explosions stop production, bring repair costs and fines; watch outage disclosures and safety records.
- Regulatory and environmental credit costs: Rising credit prices and emissions rules increase cost per barrel; watch compliance expense and credit purchases.
- Structural decline in fuel demand: Efficiency gains and electric vehicles reduce gasoline and diesel use over time; watch demand outlooks, plant closures and capital shifts.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | High |
| Regulatory Intensity | High |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Refining & Marketing Filers in the SEC Record
9 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 2911. Their latest fiscal years end in 2025, and together they reported $1.01 trillion of revenue. Median revenue growth over the prior year was -5.5%. Median operating margin was 2.6% and median net margin 3.0%. Median total liabilities were 58% of total assets, and 6 of 9 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Exxon Mobil Corp | $332.2 billion | -5.0% | n/a | 8.7% | FY 2025 |
| Chevron Corp | $189.0 billion | -6.8% | n/a | 6.5% | FY 2025 |
| Marathon Petroleum Corp | $132.7 billion | -4.4% | 6.2% | 3.0% | FY 2025 |
| Phillips 66 | $132.4 billion | -7.5% | n/a | 3.3% | FY 2025 |
| Valero Energy Corp | $122.7 billion | -5.5% | 2.6% | 1.9% | FY 2025 |
| Conocophillips | $58.9 billion | 7.7% | n/a | 13.6% | FY 2025 |
| Pbf Energy Inc. | $29.3 billion | -11.4% | -0.2% | -0.5% | FY 2025 |
| Delek Us Holdings, Inc. | $10.7 billion | -9.5% | 2.8% | -0.2% | FY 2025 |
The 8 largest of 9 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Refining & Marketing guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
More in Energy
- Energy sector overview
- Renewable Diesel
- Pressure Pumping
- Renewable Fuels Refining
- Oilfield Services
- Seismic Services
- Oilfield Equipment & Engineering
- Shale Oil & Gas Producers
- Oilfield Equipment
Put it to work
Frequently Asked Questions
What are the main KPIs for the Refining & Marketing industry?
Key performance indicators for the Refining & Marketing industry include: Refinery throughput, Refining margin, Retail fuel margin, Operating cost per barrel, Return on capital employed. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Refining & Marketing industry?
The Refining & Marketing industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Refining & Marketing industry?
The primary risks for Refining & Marketing companies include: Margin cycles, Plant incidents, Regulatory and environmental credit costs, Structural decline in fuel demand. Investors should assess each company's exposure to these factors and its track record of navigating them.