What High Diesel Prices Mean for These 5 Energy Stocks

Source The Motley Fool

Key Points

  • Marathon Petroleum is the most direct beneficiary of elevated diesel crack spreads since refining is its entire business.

  • Chevron and ExxonMobil both posted much higher downstream earnings this year.

  • Energy Transfer and Enterprise Products Partners are fee-based pipeline operators with minimal direct exposure to diesel prices.

  • Motley Fool Issues Rare "Total Conviction" Buy Alert ›

Fill up a diesel truck right now and you'll feel it. The national average on-highway diesel price sat at $6.199 a gallon for the week of Oct. 5, according to the U.S. Energy Information Administration, down a touch from a 2026 peak of $6.529 in late September but still more than two and a half dollars above where it stood a year ago. The reason traces back to a supply shock most drivers never think about: A disruption to Strait of Hormuz shipping earlier this year choked off a chunk of the world's refined fuel exports, and global diesel supplies still haven't caught up.

That's bad news at the pump, but it's not bad news for everyone who touches a barrel of oil. Diesel is refined from crude, not pumped straight out of the ground, so the companies that profit here aren't always the ones hurt when gas prices rise. Here's how five energy stocks line up, from the one cashing in hardest to the ones along for the ride.

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An energy plant, with two floodlit hyperbolic cooling towers in front of smokestacks, distillation columns, and a flare stack.

Image source: Getty Images.

Marathon Petroleum: the purest bet on the crack spread

Marathon Petroleum (NYSE: MPC) buys crude and turns it into diesel, gasoline, and jet fuel. That makes it the most direct play on what traders call the crack spread, the gap between what a refiner pays for crude and what it sells the finished fuel for. Marathon's refining margin doubled to $36.33 a barrel in the second quarter of 2026, up from $17.58 a barrel a year earlier, per Quartz. Its refining segment posted adjusted earnings before interest, taxes, depreciation, and amortization of $6.7 billion, up from $1.9 billion.

One caveat worth knowing: Marathon has been public since 2011 and has lived through a real down cycle before, including the brutal refining crash of 2020. But the company has changed shape since then, selling its Speedway gas stations to 7-Eleven in 2021 and spinning off its pipeline business as MPLX (NYSE: MPLX). Today's Marathon is a leaner, more refining-heavy business than the one that weathered those past downturns, so its old track record only tells you so much about how this version holds up once margins cool off. Still, no stock on this list cashes in on high diesel prices more directly than this one.

Chevron and ExxonMobil: refining is the smaller half of a bigger machine

Chevron (NYSE: CVX) and ExxonMobil (NYSE: XOM) get hit by the same tailwind, just with more padding around it. Both are integrated majors, meaning they pull oil out of the ground and refine it too, so a spike in diesel margins shows up as a real but smaller slice of a much bigger business. Chevron's downstream earnings jumped to $4.9 billion in the second quarter of 2026 from $737 million a year earlier, on the back of stronger margins on gasoline and diesel. Exxon's Energy Products segment, its refining and fuels business, posted adjusted earnings of $4.1 billion for the quarter, nearly double from a year earlier, with the company highlighting record second-quarter diesel production. Both companies benefit from the same crack spread Marathon rides, but oil production, chemicals, and other segments cushion the swings, for better or worse, depending on which direction crude and refining margins move next.

Energy Transfer and Enterprise Products Partners: paid to move it, not to sell it

Energy Transfer (TXSE: ET) and Enterprise Products Partners (NYSE: EPD) own the pipelines, storage tanks, and terminals that move diesel and other fuels around the country. Neither company buys crude low and sells diesel high. They get paid a fee for moving volume through their systems, and both lean on long-term, take-or-pay contracts, meaning a customer pays whether or not barrels ship. Energy Transfer says roughly 90% of its business is fee-based; Enterprise puts a similar share of its profit in that same category. That structure means neither company gets a direct lift just because diesel crack spreads hit a record. What they do offer is a steady toll-collector role in a system running flat out to meet diesel demand, plus the high distribution yields both are known for among income investors, a separate reason to own these stocks that has nothing to do with today's diesel prices.

What this means for your money

None of this is permanent. The EIA itself expects diesel prices to stay elevated through October before easing as crude supply and refinery output catch up, and crack spreads this wide don't tend to last. Marathon has the most to lose if margins snap back, since refining is its entire business. Chevron and Exxon have more built-in cushion. Energy Transfer and Enterprise were never playing this game to begin with; their appeal is the steady toll income, not a diesel bet.

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Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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