Marathon Petroleum Q3 Adjusted EPS Soars to $26.93; Dividend Raised 10%, $5 Billion Buyback Added
Marathon Petroleum's third-quarter profit jumped more than fivefold as fatter refining margins lifted its Refining & Marketing business, and the company paired the results with a 10% dividend increase and a new $5 billion buyback authorization.
Net income attributable to MPC was $7.45 billion, or $26.59 per diluted share, compared with $1.37 billion, or $4.51 per share, a year earlier, according to the earnings release the refiner filed with an 8-K on Tuesday. Adjusted net income was $7.54 billion, or $26.93 per share, up from $915 million, or $3.01 per share.
Sales and other operating revenues rose 61.0% to $56.03 billion from $34.81 billion. Adjusted EBITDA reached $11.73 billion, compared with $3.21 billion.
"Our value chain capabilities remain a defining advantage for us, capturing opportunities to enhance margins across dynamic market conditions," Chairman, President and CEO Maryann Mannen said in the release.
Refining drives the quarter
Refining & Marketing segment adjusted EBITDA climbed to $9.90 billion from $1.76 billion, or $34.15 per barrel versus $6.37. The company attributed the gain primarily to higher market crack spreads in all regions.
R&M margin widened to $45.70 per barrel from $17.60. Crude capacity utilization was 100%, for total throughput of 3.2 million barrels per day, compared with 95% utilization a year earlier. Refining operating costs were $5.60 per barrel versus $5.59.
The Midstream segment, anchored by MPLX, grew adjusted EBITDA 10.1% to $1.88 billion on higher rates and throughputs, equity affiliate income and acquisitions. Renewable Diesel swung to $254 million of segment adjusted EBITDA from a $56 million loss.
Mid-Con exit
MPC announced the divestiture of its St. Paul Park and Mandan refineries, including related midstream assets, for $4.2 billion. MPC will receive $3.45 billion of the proceeds and intends to reinvest primarily in the Gulf Coast, while MPLX will receive $750 million. The deal is expected to close at the end of 2026.
Cash returned
The company returned $3.3 billion to shareholders in the quarter and had $3.1 billion left under its buyback authorizations at Sept. 30. The board approved an incremental $5 billion authorization, which would have brought the total available to $8.1 billion as of that date. Shares outstanding fell to 275 million from 283 million at June 30.
MPLX raised its quarterly distribution by 12.5%, resulting in $3.1 billion of expected annual distributions to MPC, the company said.
MPC ended the quarter with $13.6 billion of cash, cash equivalents and short-term investments, including $1.3 billion at MPLX, and redeemed all $749 million of its senior notes due December 2026 on Sept. 15.
Fourth-quarter outlook
For the fourth quarter, MPC expects total refinery throughput of 3,080 thousand barrels per day, refining operating costs of $5.60 per barrel and $230 million of planned turnaround costs. Its 2026 capital spending outlook, excluding MPLX, is $1.5 billion.
By the numbers
- Net income attributable to MPC: $7.45 billion, or $26.59 per share
- Adjusted EPS: $26.93, up from $3.01
- Adjusted EBITDA: $11.73 billion
- R&M margin: $45.70 per barrel
- New buyback authorization: $5 billion
- Refinery sale price: $4.2 billion
Sources
- Marathon Petroleum Form 8-K with third-quarter 2026 earnings release, filed Nov. 3, 2026 (accession 0001510295-26-000069)
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