Analysis MPC
Marathon Petroleum's profits surged. What changed at its refineries?
Refining supplied about 95% of the increase in adjusted EBITDA. Our comparison tracks higher margins, stronger cash and the new room for share repurchases.
Marathon Petroleum added $5 billion to its share-repurchase authorization after a quarter in which refining margins more than doubled. It bought back $3 billion of shares during the quarter.
The source of the earnings jump is unusually concentrated. Research by Ticker Byline shows that refining and marketing supplied about 95% of the increase in Marathon's consolidated adjusted EBITDA, a profit measure that removes interest, taxes, depreciation, amortization and selected other items.
Refining's contribution rose by $8.13 billion, while the consolidated increase was $8.52 billion. Stronger midstream and renewable-diesel results added to the gain, partly offset by higher corporate expenses.
Higher margins, nearly unchanged costs per barrel
Refining and marketing adjusted EBITDA reached $9.9 billion, versus $1.8 billion a year earlier. This measure also excludes planned refinery maintenance, which cost $294 million during the quarter.
| Refining and marketing | Q3 2026 | Q3 2025 |
|---|---|---|
| Margin per barrel | $45.70 | $17.60 |
| Operating cost per barrel | $5.60 | $5.59 |
| Crude capacity utilization | 100% | 95% |
The margin measures sales less refinery inputs and purchased products, before operating and distribution costs. Marathon attributes the improvement primarily to wider crack spreads, the gap between market prices for refined fuels and crude oil.
Operating costs per barrel, which exclude planned maintenance and depreciation, were almost unchanged. Higher utilization helped: net refinery throughput reached 3.15 million barrels a day, about 4.8% above Marathon's original August forecast. Its $5.60 operating-cost forecast matched the actual result.
Stronger earnings reach cash flow
The improvement also appears in cash. Our comparison of the nine-month and first-half statements puts third-quarter consolidated operating cash flow at $10.73 billion, versus $2.61 billion a year earlier.
Five operating-balance and derivative adjustments added $2.26 billion to the cash-flow reconciliation, versus $222 million. That swing accounts for about a quarter of the operating-cash increase. Net income and other reconciling entries accounted for the remaining $6.09 billion.
These consolidated figures include pipeline and processing partnership MPLX, including its minority shareholders. Marathon's cash and short-term investments excluding MPLX stood at $12.31 billion at September 30. Marathon also redeemed $749 million of its own notes during September.
New room for buybacks
The new $5 billion authorization is additional to the $5 billion announced in May. It has no expiration date. The $3.12 billion of unused authority reported at September 30 predates the November expansion.
The pending sale of two refineries and logistics assets to CVR is expected to close at the end of 2026.
Read our Marathon Petroleum company profile for its earnings measures, debt and capital-spending plans.