Marathon Petroleum NYSE: MPC reported third-quarter 2026 earnings per share of $26.93 and adjusted EBITDA of $11.7 billion, supported by record refinery utilization and a stronger refining margin environment. The company also announced agreements to sell its St. Paul Park and Mandan refineries, along with associated midstream assets, to CVR Energy for $4.2 billion.
Chief Executive Officer Maryann Mannen said MPC expects to receive $3.4 billion from the transaction, while MPLX will sell related midstream assets. The company expects the transaction to close by the end of the fourth quarter and intends to reinvest proceeds in opportunities that meet its return thresholds, primarily along the U.S. Gulf Coast.
“We acted on an opportunity to align our portfolio with our strategy at valuations that I think we deem to be very attractive,” Mannen said. She said the company is not seeking to shrink its refining footprint and views the Gulf Coast as a region with strong long-term potential for growth and value creation.
Record Utilization Supports Refining Results
MPC’s refining and marketing segment generated adjusted EBITDA of $9.9 billion during the quarter, with total throughput of nearly 3.2 million barrels per day and systemwide utilization of 100%. The company said it achieved the record utilization level while carrying out planned turnaround activity.
Refining and marketing adjusted EBITDA was $34.15 per barrel. Regional results included:
- Gulf Coast utilization of 99%, with nearly $33 per barrel of adjusted EBITDA.
- Mid-Continent utilization of 101%, a record level, with $36 per barrel of adjusted EBITDA.
- West Coast utilization of 98%, also a regional record, with more than $33 per barrel of adjusted EBITDA.
Chief Financial Officer Maria Khoury said adjusted EBITDA increased by $8.5 billion from the third quarter of 2025, led by the refining and marketing business. The company reported third-quarter capture of 93%, which it said was affected by a significant headwind from secondary products as benchmark clean-product prices rose faster than secondary-product prices. Weaker jet margins and seasonal inventory builds also weighed on capture.
Mannen said the company’s year-to-date capture through the third quarter was 101%. Chief Commercial Officer Rick Hessling added that MPC’s market indicator includes crude differentials and backwardation, unlike the capture calculations used by some other refiners.
Constructive Outlook and Gulf Coast Investment
MPC said the refining environment remains constructive, citing approximately 10 million barrels per day of planned and unplanned global refining capacity offline, including disruptions in the Persian Gulf and attacks on Russian infrastructure. Mannen said U.S. diesel inventories were below their five-year range, while gasoline inventories were near the bottom of that range.
Management said it expects an enhanced mid-cycle refining environment to continue through the end of the decade, with elevated margins through at least mid-2027. Hessling said demand across MPC’s system has remained resilient for gasoline, diesel and jet fuel, both domestically and internationally. He characterized the recent gasoline-market pullback as a typical seasonal development following the summer driving season.
The company is advancing several Gulf Coast projects expected to enter service by the end of 2027. These include a 90,000-barrel-per-day distillate hydrotreater at the Galveston Bay refinery designed to convert high-sulfur diesel into ultra-low-sulfur diesel. MPC also plans to increase Garyville crude throughput by 30,000 barrels per day, reduce purchases of higher-cost intermediates, and add capacity to produce an incremental 10,000 barrels per day of export-premium gasoline.
Hessling said MPC expects to set records for heavy Canadian crude processing in the fourth quarter, as Western Canadian Select differentials have widened. He said roughly 90% of MPC’s crude sourcing comes from the U.S. and Canada.
Midstream Growth and Capital Returns
MPLX’s segment adjusted EBITDA increased by $173 million from the year-earlier quarter, driven by higher rates and volumes, income from equity affiliates and acquisitions. Harmon Creek III began operating during the quarter, adding 300 million cubic feet per day of gas processing capacity and 40,000 barrels per day of de-ethanization capacity.
MPLX and its partners also reached a final investment decision on the Solitude Pipeline System, which is expected to provide 4.5 billion cubic feet per day of additional natural-gas egress from the Permian Basin when completed. The partnership increased its quarterly distribution by 12.5% for the third consecutive year. MPC said it now expects to receive $3.1 billion in annual distributions from MPLX, exceeding its annual dividend and capital expenditures.
Operating cash flow excluding working-capital changes was $8.5 billion, while working capital provided a further $2.3 billion of cash. MPC ended the quarter with approximately $13.6 billion in consolidated cash and short-term investments, including nearly $1.3 billion held by MPLX.
The company returned $3.3 billion to shareholders in the quarter, including $3 billion of share repurchases, and increased its quarterly dividend by 10%. It also redeemed all $749 million of senior notes due in December 2026.
Fourth-Quarter Guidance
For the fourth quarter, MPC expects refining and marketing crude throughput of 2.8 million barrels per day, representing 95% utilization. The company projected $230 million in turnaround expenses, primarily related to conversion-unit work on the Gulf Coast and West Coast, which it said will limit its ability to upgrade certain products and pressure capture.
Renewable diesel utilization is expected to be 85% in the fourth quarter, with planned turnaround costs of $65 million, primarily tied to work at Dickinson. MPC said renewable diesel adjusted EBITDA increased $310 million year over year in the third quarter, aided by improved regulatory credit values, higher throughput and a more constructive margin environment.
About Marathon Petroleum (NYSE:MPC)
Marathon Petroleum Corporation NYSE: MPC is an American downstream energy company engaged in refining, marketing, and transporting petroleum products. Its operations include converting crude oil into gasoline, diesel, jet fuel, asphalt, propane, and other refined products used by transportation, industrial, and commercial customers.
The company markets fuel under the Marathon brand and supplies products to independent marketers, commercial businesses, and other wholesale customers. Marathon Petroleum also owns a general-partner interest and significant limited-partner interest in MPLX Inc, a midstream company that operates pipelines, storage facilities, terminals, and gathering and processing assets supporting the movement of crude oil and natural gas liquids.
Marathon Petroleum’s refining and midstream activities are concentrated in the United States, with assets serving regions across the Midwest, Gulf Coast, and West Coast.
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