BP Shuts Down Indiana's Whiting Refinery Units for Fire

BP plc BP shut down some of its units at the Whiting refinery in response to an electrical fire.

Located in northwest Indiana, the Whiting refinery is the company’s largest refinery in the world, with a crude processing capacity of 435,000 barrels per day.

BP shut down two crude units at the refinery, which include Pipestill 12 and the 70,000 barrel-a-day Pipestill 11A. Pipestill 12 is the largest crude unit in the region, with a capacity of 255,000 barrels per day. It processes as much as 90% heavy Canada crude derived from the oil sands.

The fire incident affected utilities to multiple units at the refinery. Restarting the impacted units could begin promptly if the fire damage is restricted to a control panel, with a return to normal operations expected as soon as early next week.

The fire took place in the power house and caused wastage of cooling water, resulting in faulty equipment. BP claimed that some refinery units were shut down by the electrical fire and the impacted units would restart. Yet, the timing of the restart had not been determined.

The fire incident at the refinery drove motor fuel prices in the Chicago market. The Whiting refinery supplies gasoline, diesel and jet fuel to the majority of the region’s key distribution centers. The demand for diesel fuel usually starts to increase this time of year as it is used to heat and fuel big machinery. Hence, a prolonged shutdown of the refinery could tighten fuel markets.

Company Profile & Price Performance

Headquartered in London, U.K., BP is a fully integrated energy company, with a strong focus on renewable energy.

Shares of the company have outperformed the industry in the past six months. The stock has gained 11.9% compared with the industry's 9.6% growth.

Image Source: Zacks Investment Research

Zacks Rank & Other Key Picks

BP currently flaunts a Zack Rank #1 (Strong Buy).

Investors interested in the energy sector might look at the following companies that also presently sport a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.

RPC, Inc. RES is among the leading providers of advanced oilfield services. With no debt load, RPC had cash and cash equivalents of $78.2 million at the second-quarter end. This reflects the company’s strong balance sheet that provides it with massive financial flexibility.

RPC has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth. RES is expected to see earnings growth of 1,733.3% for 2022.

Petrobras S.A. PBR is the largest integrated energy firm in Brazil. As the company focuses on regaining its financial footing by selling assets and curtailing debt load, it successfully managed to lower gross debt below its 2022 target of $60 billion in the third quarter of 2021, well ahead of time. Post the latest quarter earnings, the figure stands at $53.6 billion.

Petrobras has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value and Momentum, and B for Growth. PBR is expected to see earnings growth of 128.2% for 2022.

Exxon Mobil Corporation XOM is one of the leading integrated energy companies in the world. At the end of second-quarter 2022, XOM’s total cash and cash equivalents were $18.9 billion, and long-term debt amounted to $39.5 billion. The firm has significantly lower debt exposure than other integrated majors.

ExxonMobil has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth and Momentum, and B for Value. XOM is expected to see earnings growth of 135.7% for 2022.

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