Marathon Petroleum's Refining Profit Per Barrel Hits $34.15, Up From $6.37, As Crack Spreads Surge
The refiner also raised its dividend 10%, added a $5 billion buyback and agreed to sell two refineries for $4.2 billion.
Marathon Petroleum, which refines crude into gasoline and diesel and runs pipelines and terminals, earned $7.4 billion in the third quarter, up from $1.4 billion a year earlier, as refining margins widened sharply, the company said Tuesday in an 8-K filing.
Margins did the work
Net income attributable to the company came to $26.59 per diluted share, versus $4.51 a year earlier. Adjusted net income was $7.5 billion, or $26.93 per share, against $915 million, or $3.01.
Adjusted EBITDA, a cash-earnings measure that excludes interest, taxes, depreciation and turnaround costs, reached $11.7 billion, compared with $3.2 billion in the third quarter of 2025.
Refining and marketing adjusted EBITDA was $9.9 billion, or $34.15 per barrel, versus $6.37 a year ago. The company said results were driven primarily by higher crack spreads, the price gaps between refined products and crude, in all regions.
Refineries ran at 100% of crude capacity, against 95% a year earlier, with total throughput of 3.2 million barrels per day. Midstream adjusted EBITDA rose to $1.9 billion from $1.7 billion, and renewable diesel earned $254 million after a $56 million loss.
Cash returns and a refinery sale
The company returned $3.3 billion to shareholders in the quarter and announced a 10% increase in its quarterly dividend. Its board approved an additional $5 billion share repurchase authorization, on top of $3.1 billion remaining at September 30.
Marathon also agreed to sell its St. Paul Park and Mandan refineries, with related midstream assets, for $4.2 billion. It will receive $3.45 billion and intends to reinvest primarily in the Gulf Coast; its MPLX midstream partnership gets $750 million. The deal is expected to close at the end of 2026.
Chief Executive Maryann Mannen said the company's value chain capabilities "remain a defining advantage for us."
A $13.6 billion cash pile
At September 30, the company held $13.6 billion in cash, cash equivalents and short-term investments, with no borrowings under its $5 billion revolving credit facility. On September 15 it redeemed all $749 million of its senior notes due December 2026.
Its 2026 capital spending outlook, excluding MPLX, is $1.5 billion. A conference call was set for 11:00 a.m. ET on Tuesday.
For the fourth quarter, the company guided to crude throughput of 2,830 thousand barrels per day and refining operating costs of $5.60 a barrel.
Sources
- 8-K Filing — Marathon Petroleum Corp (MPC) — SEC EDGAR
- Exhibit mpcq32026earningsrelease.htm — Marathon Petroleum Corp 8-K exhibit — SEC EDGAR
- Marathon Petroleum Corp. Reports Third-Quarter 2026 Results — prnewswire.com
