Marathon Petroleum Q3 2026 EBITDA Jumps on Refining Strength

Marathon Petroleum (MPC) reported a sharp increase in third-quarter 2026 earnings as stronger refining economics and full refinery utilization lifted adjusted EBITDA to $11.73 billion from $3.21 billion a year earlier. The Refining & Marketing segment accounted for most of the increase, while Midstream and Renewable Diesel also delivered year-over-year growth.

Net income attributable to MPC was $7.45 billion, or $26.59 per diluted share, compared with $1.37 billion in the third quarter of 2025. Excluding $123 million of pre-tax adjustments related to a municipal tax dispute and legal settlements, adjusted net income was $7.54 billion, or $26.93 per diluted share.

Cash provided by operating activities totaled $10.73 billion. Excluding changes in working capital, operating cash flow was $8.48 billion. MPC returned $3.28 billion to shareholders during the quarter, consisting of $3.01 billion in share repurchases and $279 million in dividends.

Refining drives earnings increase

Refining & Marketing adjusted EBITDA rose to $9.90 billion from $1.76 billion a year earlier, supported by 100% utilization and substantially stronger refining margins. Adjusted EBITDA per barrel increased to $34.15 from $6.37, with regional results of $32.77 per barrel on the Gulf Coast, $36.00 in the Mid-Continent and $33.30 on the West Coast.

The segment generated a Refining & Marketing margin of $13.24 billion and captured 93% of its $14.17 billion margin indicator. MPC said secondary products were a headwind, partly offset by clean-product optimization.

The blended crack spread contributed $9.22 billion to the segment’s year-over-year adjusted EBITDA increase. Higher volume added $257 million, while weaker product and crude effects reduced results by $641 million and $340 million, respectively. Higher operating and distribution costs were additional offsets.

Regional adjusted EBITDA was $3.53 billion on the Gulf Coast, $3.17 billion in the Mid-Continent and $1.43 billion on the West Coast.

Midstream and renewable diesel add growth

Midstream adjusted EBITDA increased to $1.88 billion from $1.71 billion. The company attributed the gain primarily to higher rates and throughput, increased income from equity affiliates and acquisition-related growth. MPC said the business is positioned to deliver mid-single-digit adjusted EBITDA growth.

Renewable Diesel adjusted EBITDA improved to $254 million from a loss of $56 million a year earlier. The change reflected a stronger margin environment and improved regulatory credit values, with utilization at 89%. Renewable Diesel margin reached $304 million, up from $8 million in the prior-year quarter.

Capital returns and portfolio priorities

MPC ended September with $13.61 billion of consolidated cash, cash equivalents and short-term investments, including $12.31 billion attributable to MPC excluding MPLX. MPC excluding MPLX had $6.41 billion of debt and a net cash position of $5.90 billion, resulting in a net debt-to-capital ratio below zero. The company also redeemed all $749 million of senior notes due in December 2026.

MPC highlighted its announced $4.2 billion divestiture of the St. Paul Park and Mandan refineries and associated midstream assets. The company intends to reinvest the capital in its highest-return opportunities and advance strategic priorities, primarily on the Gulf Coast.

Management expects approximately $3.1 billion of annualized distributions from MPLX, based on the distribution declared for the third quarter. MPC said that amount is expected to more than fund its standalone capital spending and dividend. Its capital-allocation framework calls for returning excess capital through share repurchases after funding sustaining investments, dividends and growth projects.

Fourth-quarter outlook

For the fourth quarter, MPC expects total refinery throughput of 3.08 million barrels per day and overall utilization of 95%. Regional utilization is projected at 94% on the Gulf Coast, 97% in the Mid-Continent and 92% on the West Coast.

Refining operating costs are expected to average $5.60 per barrel, with $230 million of turnaround costs and $390 million of depreciation and amortization. Refining & Marketing distribution costs are projected at $1.73 billion.

Renewable Diesel utilization is expected to be 85%, with $65 million of turnaround costs. Corporate costs are projected at $300 million, including about $60 million of depreciation and amortization.

The outlook remains subject to refining and renewable-fuel demand and margins, feedstock pricing and availability, regulatory and tax changes, operational disruptions, project costs and timing, and the completion and expected benefits of planned transactions. MPC also identified geopolitical conflict, tariffs, inflation, interest rates and extreme weather among the factors that could affect future results.