Profit more than quadrupled
In the second quarter of 2026, Marathon Petroleum reported sales and other operating revenues of $51.994 billion, representing growth of approximately 54% compared to $33.799 billion in the same period last year. Total revenue, including income from equity investments and other items, rose from $34.101 billion to $52.337 billion. Profitability improved even more significantly. Operating income reached $7.322 billion, compared to $2.197 billion a year ago, and net income attributable to shareholders increased from $1.216 billion to $5.138 billion. Diluted earnings per share rose from $3.96 to $17.73. Adjusted EBITDA, which represents earnings before interest, taxes, depreciation, and amortization, reached $8.460 billion, compared to $3.286 billion a year ago. The results show that earnings grew significantly faster than revenue, as Marathon Petroleum was able to translate more favorable refining margins into a substantial increase in operating income.
Marathon Petroleum’s stock price performance over the past five years*
Refining has become the main driver of results
The refining and marketing segment generated adjusted EBITDA of $6.655 billion, compared to just $1.890 billion a year ago. The segment’s profitability per barrel processed rose from $6.79 to $24.84. The refining and marketing margin itself more than doubled from $17.58 to $36.33 per barrel. The company stated that the main factor was wider spreads between the purchase price of crude oil and the selling prices of finished fuels across all regions. Refineries operated at 94% of capacity and processed approximately 2.9 million barrels per day. The high utilization rate was important because it allowed the company to sell a larger volume of products during a period of exceptionally strong margins. Although refinery operating costs rose from $5.34 to $5.72 per barrel and scheduled maintenance cost $275 million, these costs were relatively small compared to the growth in margins. The Gulf Coast refineries made the largest contribution to segment EBITDA at $2.595 billion, followed by the U.S. Midwest at $1.238 billion and the West Coast at $932 million.
Renewable diesel is no longer a drag, and midstream continued to grow
A significant change was the marked improvement in the renewable diesel segment, which had previously dragged down the company’s overall profitability. Its adjusted EBITDA reached $258 million, compared to a loss of $19 million a year ago. The segment operated at 95% capacity and was bolstered by higher margins, increased production volumes, and a more favorable value of regulatory credits. The operating margin contributed $272 million to the segment’s results. The midstream segment, which includes the transportation, processing, and storage of crude oil, natural gas, and other energy commodities, also recorded steady growth. Its adjusted EBITDA rose from $1.641 billion to $1.778 billion. This growth was driven by higher transportation volumes, increased rates, new acquisitions, and improved results from associated companies. Marathon Petroleum also completed investments in the El Paso and Robinson refineries. The El Paso project expands the production of specialty gasoline for local markets, while upgrades to the Robinson refinery enable an increase in jet fuel production of approximately 10,000 barrels per day.
Strong Cash Flow Returned to Shareholders
These results also translated into significant cash generation. Operating cash flow, excluding changes in working capital, reached $6.564 billion, and positive changes in working capital contributed an additional $3.763 billion. The company spent $1.391 billion on capital expenditures, investments, and acquisitions, yet still increased its cash balance from $2.151 billion at the end of March to $7.768 billion at the end of June. It returned a total of $2.790 billion to shareholders, of which approximately $2.533 billion went toward share buybacks and $290 million toward dividends. At the end of the quarter, Marathon Petroleum still had $6.1 billion available under its approved buyback programs. For the third quarter, management expects total processing volume of approximately 3.005 million barrels per day and a refinery utilization rate of 94%. Expected operating costs are $5.60 per barrel, and planned maintenance costs are approximately $290 million. The results are therefore exceptionally strong, but their continued performance will depend primarily on refining margins, global fuel availability, and the company’s ability to maintain high utilization of its facilities. [1]
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which is subject to change. Such statements do not guarantee future results. They involve risks and other uncertainties that are difficult to predict. Actual results may differ materially from those expressed or implied in any forward-looking statements.
* Past performance is no guarantee of future results.
Sources:
https://s2.q4cdn.com/142437514/files/doc_financials/2026/q2/MPC-2Q-2026-Slides.pdf
