3 Top Refining & Marketing MLPs to Buy for Growth Ahead

Why It Matters

The spotlight on these MLPs underscores a rare blend of stable cash flow, growth potential, and relative cheapness, making them compelling for income‑focused investors amid a volatile energy market.

Key Takeaways

• Zacks ranks Refining & Marketing MLPs in top 10% of industries
• Industry EV/EBITDA 12.76×, below S&P 500, indicating cheap valuation
• Global Partners projects 44.3% earnings growth, Zacks Rank #2
• CrossAmerica holds Zacks Rank #1, expanding retail fuel footprint
• Suburban Propane adds renewable fuels, targeting low‑carbon market

Pulse Analysis

The refining and marketing segment of master limited partnerships occupies a niche where steady cash generation meets the essential nature of fuel consumption. By operating terminals, storage facilities, and retail networks, these MLPs smooth earnings across commodity cycles and benefit from seasonal demand spikes for heating and transportation fuels. Zacks’ Industry Rank of #24 places the group in the top decile, reinforcing the view that the sector’s fundamentals—diversified operations, essential product demand, and tax‑advantaged structures—remain resilient even when broader energy markets wobble.

Valuation metrics further enhance the investment case. An industry‑wide EV/EBITDA of 12.76× sits well below the S&P 500 average of 18.66×, suggesting a discount to broader equity markets while still delivering a respectable 22.4% one‑year price gain. The capital‑intensive nature of terminal upgrades and logistics expansion does pressure free cash flow, yet disciplined reinvestment and fixed‑rate debt structures keep distributions stable. For investors seeking yield, the combination of reasonable multiples, solid coverage ratios, and a track record of distribution growth creates an appealing risk‑adjusted profile.

Within this backdrop, Global Partners, CrossAmerica, and Suburban Propane stand out for distinct growth levers. Global Partners leverages vertical integration and an aggressive acquisition pipeline, projecting a 44.3% earnings‑per‑unit surge and earning a Zacks Rank #2. CrossAmerica, the only Zacks #1 pick, is expanding its retail fuel footprint to capture higher margins in a fragmented market. Suburban Propane differentiates itself by investing in renewable natural gas, hydrogen blends, and other low‑carbon solutions, aligning with the energy transition while preserving its core propane distribution strength. Together, these MLPs offer a blend of income stability, upside potential, and strategic positioning that makes them attractive additions to a diversified, income‑oriented portfolio.