Marathon Petroleum Beats Profit Expectations as Refining Margins Surge

Direct answer: Marathon Petroleum, the largest independent refiner in the United States, beat profit expectations in the third quarter of 2026. Strong refining margins lifted its profit sharply, and the company also agreed to sell two refineries for $4.2 billion.

What happened

Marathon reported adjusted profit of $26.93 per share for the three months ended September 30, 2026. That topped the analysts estimate of $24.47 cited by Reuters from LSEG data. A year earlier, adjusted profit was $3.01 per share.

Net income attributable to Marathon was $7.447 billion, compared with $1.370 billion a year earlier. Diluted earnings per share were $26.59, compared with $4.51 a year earlier. Adjusted net income was $7.541 billion, compared with $915 million a year earlier.

The main driver was refining. The refining and marketing margin more than doubled to $45.70 per barrel, from $17.60 per barrel a year earlier. Refining and marketing adjusted EBITDA was $9.895 billion, compared with $1.762 billion a year earlier. Total adjusted EBITDA was $11.729 billion, compared with $3.206 billion a year earlier.

Marathon ran its refineries at 100 percent of crude capacity, up from 95 percent a year earlier. Throughput rose to 3.15 million barrels per day, from 3.005 million barrels per day a year earlier. The company said higher crack spreads, which are the gap between crude oil prices and refined fuel prices, were the main driver across all regions.

Marathon also returned $3.3 billion to shareholders during the quarter. It raised its quarterly dividend by 10 percent, and it increased its share buyback capacity to $8.1 billion with an additional $5 billion authorization. Shares rose about 2 percent in premarket trading after the results, Reuters reported.

In a separate deal announced the same day, Marathon agreed to sell two refineries and related midstream assets to CVR Energy for $4.2 billion. Marathon will receive $3.45 billion for the St. Paul Park refinery in Minnesota and the Mandan refinery in North Dakota, while its midstream subsidiary MPLX will receive $750 million for related infrastructure. The deal is expected to close by the end of 2026.

For the fourth quarter, Marathon expects total refinery throughput of 3.08 million barrels per day, below the third quarter level.

Why it matters for beginners

A refiner buys crude oil, turns it into gasoline, diesel and jet fuel, and sells those fuels. When the gap between crude prices and fuel prices widens, refiners can earn more on each barrel they process. That is what happened in this quarter, helped by supply disruptions linked to the Middle East conflict and the war in Ukraine, which Reuters said pushed refining margins to multi-year highs.

For beginners, this story is a useful reminder that energy profits do not move only with the oil price itself. They also move with refining capacity, fuel demand and the cost of turning crude into finished fuel. When fuel supplies tighten, drivers and airlines can face higher fuel costs even if crude prices do not rise by the same amount. You can see how oil supply shocks feed into prices in our earlier post on oil jumping above $117 after the Hormuz tanker attack.

What to watch next

Watch whether refining margins stay high or fall back as more supply returns. Watch fuel prices at the pump, which often follow refining margins with a lag. Watch the close of the $4.2 billion refinery sale by the end of 2026, and watch Marathon’s fourth quarter throughput, which it expects to be slightly lower than in the third quarter.

FAQ

What does Marathon Petroleum do?

Marathon Petroleum is an integrated downstream and midstream energy company based in Findlay, Ohio. It refines crude oil into fuels and moves and stores energy products.

Why did Marathon’s profit jump so much?

Its refining margin more than doubled to $45.70 per barrel, from $17.60 a year earlier, and it ran its refineries at full crude capacity. Higher crack spreads across all regions were the main driver.

What is the $4.2 billion deal?

Marathon agreed to sell the St. Paul Park and Mandan refineries, plus related midstream assets, to CVR Energy. Marathon gets $3.45 billion and MPLX gets $750 million, with the deal expected to close by the end of 2026.

Does a strong refiner profit mean fuel prices will fall?

Not necessarily. Strong refining profits can reflect tight fuel supply and wide margins, which can keep fuel prices high. Pump prices depend on crude costs, refining margins, taxes and local competition.