Marathon Petroleum Profit Quadruples on Higher Refining Margins

Marathon Petroleum Profit Quadruples on Higher Refining Margins

Charles Kennedy

Wed, August 5, 2026 at 7:31 AM GMT+3 3 min read

• MPC -4.75%
• CL=F -0.03%

Marathon Petroleum reported net income attributable to the company of $5.1 billion for the second quarter of 2026, compared with $1.2 billion in the same period last year.

Diluted earnings rose to $17.73 per share from $3.96 per share, while adjusted earnings before interest, taxes, depreciation and amortization increased to $8.5 billion from $3.3 billion.

The improvement was led by Marathon's Refining and Marketing division, where adjusted EBITDA climbed to $6.7 billion from $1.9 billion. The segment's refining margin more than doubled to $36.33 per barrel from $17.58 per barrel, primarily because of higher crack spreads across all operating regions.

Marathon's refineries operated at 94% of crude-processing capacity and recorded total throughput of 2.9 million barrels per day. Refining operating costs increased to $5.72 per barrel from $5.34, partly because planned downtime reduced utilization in the Mid-Continent region.

The company also reported improved results from renewable diesel. The division generated adjusted EBITDA of $258 million, reversing a $19-million loss a year earlier, as margins, throughput and regulatory credit values improved.

Midstream adjusted EBITDA increased to $1.8 billion from $1.6 billion. Marathon attributed the gain to higher rates and volumes, contributions from acquisitions and growth at equity affiliates, partly offset by the sale of non-core gathering and processing assets.

Marathon completed refinery investments in El Paso, Texas, and Robinson, Illinois, during the quarter. The El Paso project expanded the refinery's ability to make specialty gasoline, while the Robinson investment added capacity to produce approximately 10,000 barrels per day of jet fuel.

The company maintained its 2026 capital-spending outlook, excluding MPLX, at $1.5 billion. About 65% is allocated to projects intended to improve returns, with the remainder directed toward sustaining existing operations.

Its majority-owned midstream subsidiary, MPLX, raised its 2026 growth-capital forecast by $500 million to $2.9 billion. The increase primarily reflects accelerated development of two planned natural gas liquids fractionators near Marathon's Galveston Bay refinery. MPLX expects the facilities to enter service in 2028 and 2029.

Marathon returned more than $2.8 billion to shareholders during the quarter and had $6.1 billion remaining under existing share-repurchase authorizations at the end of June. The company held $7.8 billion in cash and equivalents and had no outstanding borrowings under its $5-billion revolving credit facility.

For the third quarter, Marathon expects total refinery throughput of approximately 3 million barrels per day and planned turnaround expenses of $290 million.

By Charles Kennedy for Oilprice.com

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