Marathon Petroleum Corporation

What they do

Marathon Petroleum operates three reportable segments: Refining & Marketing, Midstream, and Renewable Diesel. Refining & Marketing refines crude oil and other feedstocks at refineries in the Gulf Coast, Mid-Continent, and West Coast, selling refined products to wholesale customers, spot buyers, and branded dealers. Midstream, primarily MPLX (64% owned), gathers, transports, stores, and processes crude oil, refined products, natural gas, and NGLs. Renewable Diesel processes renewable feedstocks into renewable diesel, marketed and distributed through Midstream and third parties.

Revenue drivers

• Refining & Marketing — Core refining and product sales; in Q2 2026 generated $6.7 billion adjusted EBITDA, $24.84 per barrel, driven by higher crack spreads across all regions.
• Midstream (MPLX) — Fee-based midstream logistics, gathering, processing, and NGL services; Q2 2026 adjusted EBITDA of $1.8 billion, up from $1.6 billion on higher rates and throughputs.
• Renewable Diesel — Produces and markets renewable diesel; Q2 2026 adjusted EBITDA of $258 million versus $(19) million, on stronger margins, higher throughputs, and improved regulatory credit values.

Recent performance

Second-quarter 2026 net income attributable to MPC was $5.1 billion, or $17.73 per diluted share, versus $1.2 billion ($3.96) in Q2 2025. Adjusted EBITDA was $8.5 billion versus $3.3 billion, with Refining & Marketing adjusted EBITDA per barrel at $24.84 versus $6.79. Crude capacity utilization was 94% with total throughput of 2.9 million bpd. The company returned over $2.8 billion to shareholders in the quarter.

Strategy

Management focuses on safely and reliably operating assets while structurally improving cost competitiveness. Investments are being made in yield-enhancing refining projects (El Paso and Robinson completed in Q2 2026) and in MPLX natural gas and NGL value chain growth, including Permian-to-Gulf Coast expansions. MPLX growth is expected to support 12.5% annual distribution growth in 2026 and 2027. The company prioritizes disciplined capital allocation, leading in capital return.

Risks

• Commodity price and crack spread volatility — Results depend heavily on crude oil, gasoline, and distillate prices, and Q2 2026 EBITDA was driven by higher crack spreads that can reverse.
• Tariffs and trade restrictions — The establishment or increase of tariffs on imported crude oil and feedstocks, or retaliatory actions, could raise costs and reduce margins.
• Demand shifts and alternative fuels — Changes in consumer demand for refined products and the price, availability, and acceptance of alternative fuels or electric vehicles could lower volumes.
• Regulatory and environmental compliance — Federal and state environmental, health, safety, and energy regulations, plus potential litigation, could increase costs and constrain operations.

Outlook

Management expects stable U.S. demand with gasoline and distillate inventories at or below five-year averages supporting realized refining margins. Longer term, global demand growth is expected to outpace net refining capacity additions, with U.S. refiners holding structural advantages. The company sees continued growth opportunities in its Midstream segment supporting producer development plans.