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Marathon Petroleum reported stronger first-quarter 2026 results, citing improved refinery reliability, higher refining margins and a supply-demand backdrop influenced by geopolitical disruptions in the Middle East.
On the company’s earnings call, CEO Maryann Mannen said Marathon’s refineries ran at 89% utilization during the quarter, with “nearly 100% capture.” She added that the company completed roughly 40% of its planned full-year maintenance activity. Mannen said the quarter delivered the company’s strongest first-quarter process safety performance and the lowest level of unplanned downtime this decade.
CFO Maria Khoury said Marathon delivered adjusted earnings per share of $1.65 and adjusted EBITDA of $2.8 billion. Cash flow from operations, excluding working capital changes, was $1.7 billion. The company returned more than $1 billion to shareholders during the quarter, including $750 million in share repurchases, and announced an additional $5 billion share repurchase authorization.
Khoury said Marathon’s Refining & Marketing segment generated approximately $1.4 billion of adjusted EBITDA in the first quarter. Adjusted EBITDA per barrel was $5.37, and first-quarter capture was 99%.
Management reported total refinery throughput of nearly 3 million barrels per day. Regional utilization was 89% on the Gulf Coast, 88% in the MidCon and 92% on the West Coast.
Khoury attributed the year-over-year improvement in adjusted EBITDA largely to Refining & Marketing. She said adjusted EBITDA increased by nearly $800 million from the first quarter of 2025, primarily due to the segment.
On a regional basis, Khoury said stronger domestic and international demand lifted Gulf Coast margins, adding $596 million of adjusted EBITDA year over year. The West Coast contributed an additional $460 million of adjusted EBITDA, supported by strong market conditions and minimal plant turnaround activity. In the MidCon, higher margins were offset by lower volumes and costs related to maintenance activity.
Khoury also said the Los Angeles refinery benefited from completed investments in utility systems, improving reliability and efficiency. She said the improvements are expected to strengthen the refinery’s sustainability and competitive position in the region.
Mannen said geopolitical events late in the first quarter tightened global markets, disrupted trade flows and drove global cracks higher. She said Marathon believes about 6 million barrels per day—close to 6% of global refined products capacity—came offline during the Middle East conflict, though estimates vary.
Mannen said domestic demand for gasoline, diesel and jet fuel remained strong, with exports providing incremental upside.
She said Marathon is largely insulated from global crude supply disruptions because its crude sourcing comes mainly from the United States and Canada. Chief Commercial Officer Rick Hessling said the company used inland connectivity to purchase advantaged barrels rather than higher-priced waterborne crude. He said Marathon more than doubled Canadian volumes on the Gulf Coast in response to rising premiums and expected April to be a record month for Canadian volumes across the system.
Hessling said Marathon increased Bakken volumes in the MidCon and moved Bakken crude to the Pacific Northwest to displace higher-cost waterborne barrels. He noted Marathon purchased five advantaged Venezuelan cargoes in the first quarter, but said it would have bought more only if it did not have better alternatives in heavy Canadian crude.
Hessling also said Marathon purchased approximately 10 million barrels of advantaged Strategic Petroleum Reserve crude directly from the Department of Energy.
Mannen said Marathon invested nearly $330 million in its Refining & Marketing business during the quarter. She said near-term projects focus on increasing jet optionality and improving returns, with about 25% of 2026 refining value-enhancing capital directed to the Garyville refinery.
In March, Marathon brought more than 30,000 barrels per day of incremental jet production capacity online at Garyville. Mannen said the investment strengthens one of the company’s most competitive refining assets and positions Marathon to meet growing global jet demand.
Management also highlighted additional projects expected to come online this year. Mannen said an El Paso yield improvement investment is expected to enhance the refinery’s ability to produce specialty gasoline for the El Paso, Phoenix and Mexico markets in the second quarter. A Robinson jet flexibility investment is expected to come online in the third quarter, adding approximately 10,000 barrels per day of incremental jet fuel production.
In response to analyst questions, Mannen said refining capital projects must meet high return thresholds, citing a target of about 25% returns for refining projects. She said projects such as Garyville jet, Robinson jet and other yield improvements are intended to improve EBITDA per barrel in the regions where Marathon operates.
Mannen said MPLX remains a key differentiator for Marathon and continues to support cash flow durability. She said MPLX is investing more than $2.4 billion in 2026, with about 90% of growth capital focused on natural gas and NGL opportunities.
Several MPLX projects remain on schedule, including natural gas processing and treating expansions in the Permian and Northeast. Mannen said a processing plant in the Permian Secretariat entered service and is expected to ramp over the next nine to 12 months, increasing regional system processing capacity to 1.4 billion cubic feet per day. In the Northeast, Harmon Creek 3 remains on track for third-quarter startup, bringing regional system processing capacity to 8.1 billion cubic feet per day.
Mannen said MPLX expects to deliver 12.5% distribution growth for the next two years, supported by mid-single-digit adjusted EBITDA growth.
The company also discussed its growing international LPG business. Mannen said Marathon secured long-term delivered demand with South Korean customer E1 for up to 40% of the volumes MPC will purchase from MPLX’s new Gulf Coast fractionation facilities adjacent to the Galveston Bay refinery. She said the fractionators and a joint-venture export facility are expected to enter service in 2028 and 2029.
Hessling said Marathon plans to contract a significant additional portion of the remaining volumes before the project begins service, using a mix of delivered and FOB sales while leaving some exposure to spot markets.
Khoury said Marathon ended the quarter with roughly $2.2 billion of consolidated cash, including $645 million at MPC and more than $1.5 billion at MPLX. Working capital was a $573 million use of cash, primarily due to inventory build and lower throughput, partly offset by higher crude pricing.
During the Q&A session, Mannen said capital allocation priorities have not changed. She said MPLX’s distributions support MPC’s capital plan and dividend while allowing the company to lead in shareholder returns. When asked about buyback timing amid volatile market conditions, Mannen said Marathon would remain disciplined and monitor the balance sheet.
For the second quarter, management guided to refinery utilization of about 94%. Mannen said the outlook reflects the company’s decision to complete a significant portion of maintenance in the first quarter and its expectation for continued strong demand across the system.
Marathon Petroleum Corporation is a U.S.-based downstream energy company engaged principally in the refining, marketing, supply and transportation of petroleum products. The company was formed through a spin-off from Marathon Oil in 2011 and operates an integrated system of refining and logistics assets that support the production and distribution of transportation fuels and other refined petroleum products.
Marathon Petroleum’s operations include refining crude oil into gasoline, diesel, jet fuel, asphalt and other specialty products, as well as managing the distribution and storage infrastructure needed to move those products to market.
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