Sky Quarry Confirms Production at Nevada Refinery Amid Strong Diesel Demand

Sky Quarry plans to increase throughput progressively and expand commercial sales following completed refinery repairs and upgrades.

Rhea-AI Summary

Sky Quarry (NASDAQ: SKYQ) has begun refined petroleum production at its Eagle Springs Refinery near Ely, Nevada, following its restart. Operated by wholly owned Foreland Refining, the refinery has nameplate capacity of approximately 5,000 barrels of crude oil per day. Production follows receipt of a Nevada air permit in September and completed repairs and upgrades.

Sky Quarry plans to increase throughput progressively, expand commercial sales and generate operating cash flow. It is also evaluating broader crude sourcing, including potential future integration with its PR Spring operations in Utah. Regional diesel pricing indicated a spread over the referenced crude benchmark of approximately $133 to $136 per barrel on October 21, 2026. That indicator is not Sky Quarry’s actual refining margin, which will depend on its costs, product yields and realized sales prices.

5 points · 1 major

PositiveiHow this balance works

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0 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointPetroleum production is underway at Eagle Springs following a successful refinery restart.
• Minor pointNevada air permit received in September preceded the start of production.
• Minor pointRefinery repairs and upgrades have been completed.
• Minor point. Forward-looking: it has not happened yet and may not happen.Throughput and commercial sales expansion are planned, alongside efforts to generate operating cash flow.
• Minor point. Forward-looking: it has not happened yet and may not happen.Broader crude sourcing is under evaluation, including potential future integration with PR Spring operations.

Negative

• Minor point$133 to $136 per barrel regional spread is not Sky Quarry’s actual margin; costs and realized prices matter.

Argus 15 min delay 36 alerts

+9.72% vs previous close $2.37 last price 71.1x rel. volume Open Argus

Details

Market Reaction – SKYQ

$2.18 – $2.67 Day Range

$20.94M Mkt Cap at Last Price

On Oct 22, the day this news came out, the latest delayed price for SKYQ is 9.72% above the previous close. Our momentum scanner has recorded 36 alerts for this stock so far that day. The latest delayed price is $2.37. Relative volume is exceptionally heavy at 71.1x the average.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Key Figures

Nameplate processing capacity: Approximately 5,000 barrels of crude oil per day Diesel crack spread: Approximately $133 to $136 per barrel Diesel crack spread increase: About 300% +1 more

Nameplate processing capacity

Approximately 5,000 barrels of crude oil per day

Eagle Springs Refinery

Diesel crack spread

Approximately $133 to $136 per barrel

Salt Lake City indicator as of October 21, 2026; regional benchmark, not Sky Quarry's realized margin

Diesel crack spread increase

About 300%

October comparison versus approximately $33 per barrel in January

Diesel crack spread outlook

Above historical averages through 2027

U.S. Energy Information Administration October 2026 Short-Term Energy Outlook

Historical Context

1 past event · Latest: Sep 24

1 event

1. Sep 24

   Refinery restart

   24h Move

   +14.6%

   Received the state air permit and restarted Eagle Springs after repairs; stated capacity of 5,000 barrels daily.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

crack spread, nameplate capacity, feedstock, wti futures

4 terms

crack spread financial

"Salt Lake City diesel rack prices indicated a crack spread of approximately $133 to $136 per barrel"

The crack spread is the difference between the price of crude oil and the combined wholesale prices of refined products made from that crude (commonly gasoline and diesel); it represents the gross margin a refinery can earn from processing oil into fuels. Traders and refiners use standard ratios (for example 3:2:1 meaning three barrels of crude yield two barrels of gasoline and one barrel of distillate) to compute the spread, and the figure changes with product mix, fuel quality, delivery location and timing. The crack spread measures processing margin before accounting for refinery operating costs, taxes, and transportation, and so does not equal a refinery’s actual profit per barrel.

nameplate capacity technical

"with a stated nameplate processing capacity of approximately 5,000 barrels of crude oil per day"

Nameplate capacity is the maximum output a power plant, factory, or piece of equipment can produce under ideal conditions, as specified by the manufacturer. Investors care because it sets the upper limit on potential revenue and growth—actual earnings depend on how often and efficiently that capacity is used, similar to a car’s top speed versus how fast you actually drive in daily traffic.

feedstock technical

"actual refining margins will reflect its own feedstock acquisition costs"

Feedstock is the raw material—such as crude oil, natural gas, agricultural crops, or recycled plastics—used as the primary input to make fuels, chemicals, plastics, or other industrial products; think of it as the ingredients you put into a factory recipe. For investors, feedstock matters because its price, supply stability and quality directly shape producers’ costs, profit margins and ability to meet demand, so shifts in feedstock markets can alter company earnings and valuations.

wti futures financial

"less a delayed December WTI futures quote of $97.86 per barrel"

WTI futures are standardized exchange-traded contracts that commit the buyer to purchase and the seller to deliver West Texas Intermediate crude oil at a specified future date and price, with prices quoted in U.S. dollars per barrel. They trade on U.S. futures exchanges (commonly the NYMEX contract) and settle by physical delivery into the Cushing, Oklahoma hub or by cash settlement for some contract types; participants post margin and can close positions before expiration to avoid delivery. They represent a forward price for the specific WTI grade and delivery location and therefore can differ from other crude benchmarks or nearby spot prices because of quality, transport and storage factors.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Company targets higher throughput and sales at Eagle Springs with nameplate capacity of approximately 5,000 barrels of crude oil per day

WOODS CROSS, Utah, Oct. 22, 2026 (GLOBE NEWSWIRE) -- Sky Quarry Inc. (NASDAQ: SKYQ) ("Sky Quarry" or the "Company"), an energy infrastructure company focused on domestic refining and resource development, today announced that refined petroleum production is underway at its Eagle Springs Refinery near Ely, Nevada. Operated by wholly owned subsidiary Foreland Refining Corporation, the refinery produces diesel and distillate fuels, vacuum gas oil, naphtha, and liquid paving asphalt.

Production follows the Company’s receipt of its Nevada air permit in September, completion of refinery repairs and upgrades, and successful restart. With production underway, Sky Quarry is focused on increasing throughput, expanding product sales, and generating operating cash flow.

"Moving from a refinery restart to actual petroleum production is a tremendous milestone for Sky Quarry and our shareholders," said Marcus Laun, interim Chief Executive Officer of Sky Quarry. "The plant is operating as expected. We are excited by the support we are getting from our community of suppliers and customers. The refinery operates in a niche within the larger regional petroleum market."

Laun continued, "Our refinery produces the products that keep the economy moving — diesel for transportation and industry, vacuum gas oil and naphtha for downstream markets, and asphalt for roads and infrastructure. We now have the opportunity to turn those products into meaningful revenue and cash flow while steadily increasing production."

Diesel Market Opportunity

Salt Lake City diesel rack prices indicated a crack spread of approximately $133 to $136 per barrel as of October 21, 2026, compared with approximately $33 per barrel in January, which represents an increase of about 300%.

The lower wholesale diesel price used in the October comparison was approximately $231 per barrel. Strong regional diesel pricing presents an opportunity for Sky Quarry as refinery throughput increases.

Production begins against a favorable diesel market backdrop. In its October 2026 Short-Term Energy Outlook, the U.S. Energy Information Administration forecasted diesel crack spreads remaining above historical averages through 2027.

The $133 to $136 range is a regional pricing indicator calculated from market benchmarks. Sky Quarry’s actual refining margins will reflect its own feedstock acquisition costs, transportation, operating expenses, product yields, and realized sales prices.

Pricing basis: The calculation uses October 21 Salt Lake City OPIS Low Rack GROSS and Rack Average GROSS diesel prices displayed by Flyers Energy of $5.4991 and $5.5633 per gallon, respectively, multiplied by 42 gallons per barrel, less a delayed December WTI futures quote of $97.86 per barrel observed at 2:35 p.m. Central time on October 21. The resulting differences of $133.10 and $135.80 per barrel are rounded. The rack postings and futures quote are as of different times.

Increasing Throughput and Commercial Sales

Eagle Springs is Nevada’s only crude oil refinery, with a stated nameplate processing capacity of approximately 5,000 barrels of crude oil per day. The facility includes crude oil processing, product handling, and storage infrastructure designed to support a range of feedstocks and refined products.

The refinery’s eastern Nevada location provides access to crude supplies from Nevada, Utah, and surrounding producing regions, with proximity to petroleum product markets throughout the Intermountain West. Sky Quarry intends to increase throughput progressively while strengthening operating reliability, securing additional crude supplies, optimizing product yields, and expanding commercial sales arrangements.

The Company is also evaluating opportunities to broaden its crude sourcing network, including increased use of regional supplies and potential future integration with its PR Spring resource development operations in Utah. Management expects to provide additional updates as production volumes increase and commercial operations develop.

Products Serving Western U.S. Energy Markets

Diesel and distillate fuels. Products for regional transportation, agriculture, mining, and industrial fuel markets.

Vacuum gas oil. An intermediate product marketed to refiners and industrial customers for further processing into transportation fuels and other petroleum products.

Naphtha. A light petroleum fraction used as feedstock for gasoline blending, further refining, and other industrial applications.

Liquid paving asphalt. Products for road construction, paving, and infrastructure maintenance.

These products provide multiple revenue opportunities and are expected to allow the Company to optimize its product mix based on feedstock characteristics, operating conditions, and regional commodity prices.

About Sky Quarry Inc.

Sky Quarry Inc. (NASDAQ: SKYQ) is an energy infrastructure company focused on domestic refining and resource development.

Through its wholly owned subsidiary, Foreland Refining Corporation, the Company operates the Eagle Springs Refinery near Ely, Nevada, the state's only crude oil refinery, producing diesel, vacuum gas oil, naphtha and liquid paving asphalt.

Sky Quarry is also developing its PR Spring facility in Utah, where the Company is advancing technologies for hydrocarbon recovery from oil-bearing resources and waste asphalt shingles.

For more information, visit www.skyquarry.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor provisions created by the U.S. Private Securities Litigation Reform Act of 1995. These statements include, among other things, expectations, beliefs and plans concerning the Company’s operations, strategy, refinery throughput, production growth, future revenue and cash flow, product sales, operating margins, feedstock availability and pricing, customer demand and market conditions, financing activities and development of the Company's other assets. Forward-looking statements are not guarantees of future performance and can be identified by words such as “aim,” “could,” “evaluate,” “expect,” “intend,” “may,” “plan,” “potential,” “target,” “will” and other similar expressions.

Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied, including operational interruptions, equipment reliability, regulatory compliance, crude oil supply and pricing, refining margins, transportation costs, access to capital, market demand, competition, general economic conditions and other risks identified in the Company's filings with the U.S. Securities and Exchange Commission. The forward-looking statements contained in this press release are made as of the date hereof, and except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.

Investor Relations Contact

Sky Quarry Inc.
Email: ir@skyquarry.com
Website: www.skyquarry.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

Has Sky Quarry started production at Eagle Springs, and what is its capacity?

Refined petroleum production is underway at Eagle Springs, which has stated nameplate processing capacity of approximately 5,000 barrels of crude oil per day. Nameplate capacity describes the facility’s processing capacity, not a disclosed current production rate.

How was the diesel pricing spread cited by Sky Quarry calculated?

The regional indicator subtracts a delayed December WTI futures quote of $97.86 per barrel from Salt Lake City diesel rack prices converted to barrels. The calculation used October 21 prices of $5.4991 and $5.5633 per gallon, multiplied by 42 gallons per barrel, producing rounded differences of $133.10 and $135.80 per barrel. The rack postings and futures quote were observed at different times.