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# Marathon Petroleum Agrees To Sell Two Refineries For $4.2 Billion, Adds $5 Billion Buyback
- URL: https://www.bullished.co/marathon-petroleum-agrees-to-sell-two-refineries-for-4-2-billion-adds-5-billion-buyback-48ff958f/
- Published: 2026-11-03T18:10:52.000Z
- Updated: 2026-11-03T18:10:52.000Z
- Description: The refiner's third-quarter margin ran $34.15 per barrel as it agreed to sell its Mandan and St. Paul Park plants.
- Author: Matteo Parrino
- Tags: Deals, MPC, Industry: Energy

[Marathon Petroleum](https://www.bullished.co/tag/mpc/), which refines crude into gasoline and diesel and runs pipelines and terminals, agreed Monday to sell its refineries in St. Paul Park, Minnesota, and Mandan, North Dakota, along with associated midstream assets, for [$4.2 billion in cash](https://www.sec.gov/Archives/edgar/data/0001510295/000151029526000071/mpc-20260930.htm?ref=bullished.co). On Tuesday it announced a further $5.0 billion share buyback, according to its third-quarter 10-Q.

## Selling at the top of the margin cycle

The net assets being sold were carried at $1.8 billion as of September 30, the filing says. Closing is targeted for the fourth quarter of 2026, with the price subject to working capital, inventory and other adjustments and regulatory sign-off still needed.

Marathon said in its earnings release that it will receive $3.45 billion of the proceeds and intends to reinvest primarily in the Gulf Coast. Its MPLX partnership gets $750 million.

The sale follows a quarter in which Refining & Marketing adjusted EBITDA reached $34.15 per barrel, against $6.37 a year earlier. Net income attributable to the company was $7.45 billion, or $26.59 per diluted share, versus $1.37 billion, or $4.51, in the third quarter of 2025.

## Buybacks accelerate

The board's new authorization sits on top of the $5.0 billion approved May 5\. Third-quarter repurchases cost $3.005 billion, leaving $3.12 billion on the older program.

For the first nine months, cash paid for repurchases was $6.255 billion. Marathon's market value was $120.9 billion in Tuesday trading.

## A crude loan from the strategic reserve

The 10-Q also details crude exchanges with the Strategic Petroleum Reserve. Marathon received about 21 million barrels during the second and third quarters and must return about 26 million from April 2027 through July 2029.

The return obligation is carried as a derivative liability of $1.9 billion, compared with [$973 million](https://www.sec.gov/Archives/edgar/data/0001510295/000151029526000061/mpc-20260630.htm?ref=bullished.co) at June 30\. Letters of credit of $1.63 billion back Energy Department crude purchase contracts under the trade receivables facility.

## Fewer refineries, longer demand outlook

The company attributes its stronger refining results to supply disruptions from regional conflicts, particularly in the Middle East and Russia. It also says global demand growth should outpace net refining capacity additions through the end of the decade.

MPLX raised its 2026 growth capital outlook by $500 million to $2.9 billion, mainly for Gulf Coast fractionation and export facilities.

Marathon is targeting a close on the refinery sale by the end of 2026, with the company's own estimate of $3.45 billion in proceeds earmarked mainly for the Gulf Coast.

### Sources

- [10-Q Filing — Marathon Petroleum (MPC)](https://www.sec.gov/Archives/edgar/data/0001510295/000151029526000071/mpc-20260930.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — Marathon Petroleum (MPC), Q2 FY2026 filed 2026-08-04 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0001510295/000151029526000061/mpc-20260630.htm?ref=bullished.co) — SEC EDGAR
- [8-K Filing — Marathon Petroleum, filed 2026-10-29 (Items 5.02, 8.01, 9.01)](https://www.sec.gov/Archives/edgar/data/0001510295/000151029526000063/mpc-20261028.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, mpcq32026earningsrelease.htm) — Marathon Petroleum, filed 2026-11-03](https://www.sec.gov/Archives/edgar/data/0001510295/000151029526000069/mpcq32026earningsrelease.htm?ref=bullished.co) — SEC EDGAR

### More on Marathon Petroleum

- [Marathon Petroleum Says Refinery Sale Proceeds Go Mostly To Gulf Coast, With 2027 Spending Likely Above Normal](https://www.bullished.co/marathon-petroleum-says-refinery-sale-proceeds-go-mostly-to-gulf-coast-with-2027-spending-faba1b32/)
- [Marathon Petroleum's Refining Profit Per Barrel Hits $34.15, Up From $6.37, As Crack Spreads Surge](https://www.bullished.co/marathon-petroleums-refining-profit-per-barrel-hits-34-15-up-from-6-37-as-crack-spreads-40170e95/)
- [Marathon Petroleum Taps Ex-Fluor CEO David Constable For An 11th Board Seat](https://www.bullished.co/marathon-petroleum-taps-ex-fluor-ceo-david-constable-for-an-11th-board-seat-a3c56b36/)

[All Marathon Petroleum (MPC) coverage →](https://www.bullished.co/tag/mpc/)