Marathon Petroleum (NYSE:MPC) reported second-quarter 2026 adjusted EBITDA of $8.5 billion and earnings per share of $17.73, as strong refining margins, high utilization and crude sourcing optimization lifted results across its operations.
Cash flow from operations, excluding working-capital changes, totaled $6.6 billion. The company returned $2.8 billion to shareholders during the quarter, including $2.5 billion in share repurchases, and ended the period with approximately $7.8 billion of consolidated cash.
Refining Results and Margin Capture
Marathon’s refining and marketing segment generated roughly $6.7 billion of adjusted EBITDA in the quarter. Refineries processed nearly 3 million barrels per day, with systemwide utilization of 94% following first-quarter turnaround activity.
- Gulf Coast utilization was 100%, with adjusted EBITDA of $27 per barrel.
- Mid-Continent utilization was 87%, with adjusted EBITDA of nearly $21 per barrel.
- West Coast utilization was 93%, with adjusted EBITDA of more than $27 per barrel.
The company reported second-quarter refining and marketing margin capture of 112%, while first-half capture was 108%. CFO Maria Khoury said second-quarter capture benefited from crude optimization, Strategic Petroleum Reserve barrels received from the Department of Energy, strong gasoline, diesel and jet fuel margins, and the physical offset of first-quarter derivative losses.
Mannen said the company’s approach relies on making faster, data-driven decisions around crude sourcing, logistics and refinery operations. Chief Commercial Officer Rick Hessling said the company purchased crude directly from the Strategic Petroleum Reserve, ran more than twice as much Venezuelan crude as in the first quarter, and processed record volumes of Canadian heavy crude on the Gulf Coast. On the West Coast, Marathon ran roughly twice its normal level of California-produced crude, which Hessling said had become more economically advantaged following regional refinery closures.
Julian Stoll, senior vice president of value chain optimization, said the company increased jet fuel yield by 3% year over year during the quarter. He said Marathon’s jet-yield capability has increased to 12% from 8% since 2024, supported by investments and the ability to shift production between jet fuel and diesel based on market conditions.
Market Outlook and Refining Investments
Mannen said the refining environment remains constructive, citing more than 9 million barrels per day of planned and unplanned global refining downtime, about 4 million barrels per day above historical norms. She attributed the elevated outages to disruptions in the Persian Gulf and increased attacks on Russian infrastructure during the Russia-Ukraine conflict.
The company said U.S. gasoline inventories remain below their five-year range and distillate inventories are at the bottom of their five-year range. Mannen said Marathon expects an enhanced mid-cycle refining environment through the end of 2026 and into 2027, although executives acknowledged that market volatility could continue.
During the quarter, Marathon completed two refining projects. A product-flexibility investment at its Robinson refinery is expected to add approximately 10,000 barrels per day of jet fuel production, while an El Paso yield-improvement project is intended to increase the refinery’s capability to produce specialty gasoline. Mannen said the projects were designed to meet the company’s targeted return threshold of 25% or more.
For the third quarter, Marathon forecast crude throughput of 2.8 million barrels per day and utilization of 94%. Khoury said turnaround expense is expected to be about $290 million, with work concentrated on conversion units in the Gulf Coast and Mid-Continent regions. The activity is expected to limit some upgrading capability and create a headwind to margin capture.
Midstream and Renewable Diesel
Midstream segment adjusted EBITDA increased $137 million from the second quarter of 2025, driven primarily by higher rates and throughput, equity affiliate growth and acquisitions. These gains were partly offset by the divestiture of non-core gathering and processing assets.
MPLX, Marathon’s affiliated midstream company, placed the Secretariat I processing plant into service in April and began commissioning the Blackcomb natural-gas pipeline in July. Blackcomb is expected to enter full commercial service in the fourth quarter. MPLX also began operations at the Harmon Creek III processing plant, bringing total processing capacity to 8.1 billion cubic feet per day and de-ethanization capacity to more than 800,000 barrels per day.
MPLX increased its 2026 growth capital spending outlook by $500 million to $2.9 billion, primarily because it accelerated spending on a Gulf Coast fractionation project previously expected in early 2027. Marathon said MPLX remains on track for mid-single-digit adjusted EBITDA growth in 2026, weighted toward the second half, and expects its investments to support 12.5% annual distribution growth in 2026 and 2027.
Renewable diesel adjusted EBITDA rose approximately $277 million year over year. Khoury said utilization reached 95% after the completion of the Martinez turnaround in the first quarter, while feedstock optimization and improved regulatory credit values supported results. Marathon said it remains focused on operating efficiency in renewable diesel rather than pursuing additional growth capital in the segment.
Capital Returns and Cash Position
Mannen said Marathon’s capital-allocation priorities remain unchanged, with share repurchases continuing to be the company’s preferred vehicle for returning capital. She said the company generally targets about $1 billion of cash to operate the business, while also accounting for obligations to repay Strategic Petroleum Reserve crude exchanges.
Khoury said second-quarter working capital provided a $3.8 billion source of cash, driven by higher payables, crude-exchange timing and inventory draws. She noted that Marathon has begun rebuilding inventory and that a $10-per-barrel change in crude prices affects working capital by approximately $550 million.
About Marathon Petroleum (NYSE:MPC)
Marathon Petroleum Corporation (NYSE: MPC) is a U.S.-based downstream energy company engaged principally in the refining, marketing, supply and transportation of petroleum products. The company was formed through a spin-off from Marathon Oil in 2011 and operates an integrated system of refining and logistics assets that support the production and distribution of transportation fuels and other refined petroleum products.
Marathon Petroleum’s operations include refining crude oil into gasoline, diesel, jet fuel, asphalt and other specialty products, as well as managing the distribution and storage infrastructure needed to move those products to market.
