Marathon Petroleum earns $7.4bn in Q3 and agrees to sell two refineries for $4.2bn

Marathon Petroleum reported third-quarter net income attributable to the company of $7.4 billion, or $26.59 per diluted share, in results issued on Nov. 3, 2026. A year earlier it earned $1.4 billion, or $4.51 per share. Adjusted net income was $7.5 billion, or $26.93 per diluted share, against $915 million, or $3.01 per share, in the third quarter of 2025.

The company also announced the divestiture of its St. Paul Park and Mandan refineries, including related midstream assets, for $4.2 billion.

Refining drove the quarter

Adjusted EBITDA was $11.7 billion, compared with $3.2 billion a year earlier. The Refining & Marketing segment supplied most of it at $9.9 billion, up from $1.8 billion. On a per-barrel basis, segment adjusted EBITDA was $34.15, versus $6.37 in the third quarter of 2025. Refining margin was $45.70 per barrel, versus $17.60.

Marathon said higher market crack spreads in all regions drove the result. Crude capacity utilization was 100%, for total throughput of 3.2 million barrels per day, compared with 95% utilization a year earlier. Refining operating costs were $5.60 per barrel, essentially flat against $5.59.

Chairman, President and Chief Executive Officer Maryann Mannen said the company's "value chain capabilities remain a defining advantage."

Midstream and renewable diesel

The Midstream segment posted adjusted EBITDA of $1.9 billion, up from $1.7 billion. Marathon pointed to increased rates and throughputs, higher income from equity affiliates and growth from acquisitions. Those gains were partly offset by the sale of non-core gathering and processing assets and higher operating expenses, including incentive compensation.

Renewable Diesel adjusted EBITDA was $254 million, compared with a loss of $56 million a year earlier. The company cited a stronger margin environment, improved regulatory credit values and higher throughputs.

The refinery sale

Of the $4.2 billion, Marathon will receive $3.45 billion and intends to reinvest it in opportunities that meet its return thresholds, primarily on the Gulf Coast. MPLX LP will receive $750 million, which Marathon described as a 9x multiple on forecast 2027 adjusted EBITDA of the associated logistics assets. MPLX expects to redeploy that money in support of growth plans anchored in the Permian and Marcellus basins. The transaction is expected to close at the end of 2026.

Capital returns and balance sheet

Marathon returned $3.3 billion to shareholders in the quarter and announced a 10% increase in its quarterly dividend. MPLX raised its quarterly distribution by 12.5%, the third consecutive year of an increase, which results in $3.1 billion of expected annual distributions to Marathon.

The board approved an incremental $5 billion share repurchase authorization. At Sept. 30, 2026, $3.1 billion remained under existing authorizations, which would have been $8.1 billion with the new one included. Cash, cash equivalents and short-term investments totaled $13.6 billion, including $1.3 billion at MPLX, and nothing was drawn on the $5 billion five-year revolving credit facility. On Sept. 15, 2026, Marathon redeemed all of its $749 million senior notes due December 2026.

Spending plans

Marathon's 2026 capital spending outlook, excluding MPLX, is $1.5 billion, with about 65% going to value-enhancing investments and 35% to sustaining operations. Projects at the Galveston Bay, Robinson, El Paso and Garyville refineries are in the plan. The Garyville jet flexibility project was completed in the first quarter of 2026, and the El Paso yield improvement and Robinson product flexibility projects in the second quarter. A 90,000 bpd distillate hydrotreater at Galveston Bay is expected in service by year-end 2027, as are two Garyville projects: a feedstock optimization that adds 30,000 bpd of crude throughput and an export flexibility project that yields an incremental 10,000 bpd of export premium gasoline.

MPLX is investing $2.9 billion of organic growth capital, with over 90% allocated to natural gas and NGL infrastructure. The projects are concentrated in the Permian and Marcellus, and MPLX expects mid-teens returns. Its Secretariat I plant, a 200 MMcf/d gas processing facility in the Delaware Basin, was placed in service in April 2026. The Harmon Creek III plant in the Marcellus, at 300 MMcf/d with a 40,000 bpd de-ethanizer, entered service in August 2026.