Marathon Petroleum third quarter 2026 earnings explained: refining margins, MPLX and valuation

Marathon Petroleum reported its third quarter 2026 results on November 3, 2026 and filed its quarterly report the same day. For the three months ended September 30, 2026, net income attributable to MPC, the company's own share of profit under GAAP, the standard US accounting rules, was $7,447 million against $5,138 million in the second quarter and $1,370 million in the third quarter of 2025, as reported by Marathon Petroleum. This article compares the quarter with the quarter before it and with the same quarter a year earlier. Every figure is sourced and dated, and every number worked out by us is labelled as a Dalsna Finance calculation. A separate Dalsna Finance article covers the second quarter. ^[1][2][3]

Marathon Petroleum in brief

Marathon Petroleum is a refining and midstream company based in Findlay, Ohio, and its common stock trades on the New York Stock Exchange under the ticker MPC. Its release describes its refining system as the largest in the United States. Its crude oil refining capacity was 2,986 thousand barrels per calendar day in the third quarter, and its refineries ran at 100% of that capacity. It also sells fuel through a marketing system that includes Marathon brand retail outlets. ^[1]

The company controls MPLX LP, a publicly traded midstream partnership, through its ownership of MPLX's general partner. At September 30, 2026 it owned about 64 percent of MPLX's outstanding common units, roughly 647 million units, which the quarterly report values at $36.46 billion at that day's closing price of $56.32 a unit. Because it controls MPLX, all of MPLX's results are consolidated into Marathon Petroleum's own statements. The share of consolidated profit that belongs to outside owners is shown as net income attributable to noncontrolling interests and is taken out before net income attributable to MPC. Earnings and EPS in this article mean Marathon Petroleum's share after noncontrolling interests, which is how the company itself uses those words. ^[2][1]

In the release chairman, president and chief executive officer Maryann Mannen said "Our value chain capabilities remain a defining advantage for us, capturing opportunities to enhance margins across dynamic market conditions." On November 2, 2026 the company agreed to sell its St. Paul Park, Minnesota and Mandan, North Dakota refineries and related midstream assets for $4.2 billion in cash, subject to closing adjustments. Of that, $3.45 billion goes to Marathon Petroleum and $750 million to MPLX, according to the release. The quarterly report puts the carrying value of the net assets being sold at $1.8 billion at September 30, 2026, and the company expects the sale to close in the fourth quarter of 2026 (company expectation, as reported). ^[1][2]

The three business segments

Marathon Petroleum reports three segments. Refining & Marketing runs refineries in three US regions, the Gulf Coast, the Mid Continent and the West Coast, that turn crude oil and other feedstocks into fuels, and sells refined products to wholesale buyers in the US and abroad, on the spot market and to independent entrepreneurs who run Marathon brand outlets. Midstream mainly reflects MPLX, which moves, stores and distributes crude oil and refined products and gathers, processes and transports natural gas and natural gas liquids. Renewable Diesel makes renewable diesel from renewable feedstocks. ^[2]

The company measures each segment by segment adjusted EBITDA, a non GAAP figure. EBITDA means earnings before interest, taxes, depreciation and amortization. The company also leaves out refining planned turnaround costs, the costs of scheduled maintenance shutdowns, and says it does so to make its figures easier to compare with competitors that spread those costs over time. ^[1]

Refining & Marketing drove the quarter again, with segment adjusted EBITDA of $9,895 million against $6,655 million in the second quarter and $1,762 million a year earlier. Against the third quarter of 2025 the release puts the gain primarily down to higher market crack spreads in all regions. A crack spread is the gap between the price of fuels and the price of the crude oil they are made from. Midstream rose to $1,882 million from $1,778 million, and against a year earlier the release credits higher rates and throughputs, more income from equity affiliates and growth from acquisitions, partly offset by the sale of non core gathering and processing assets and higher operating expenses. Renewable Diesel was little changed at $254 million, against a loss of $56 million a year earlier. Corporate expenses rose to $328 million from $256 million, and against $238 million a year earlier the release ties the rise mainly to higher incentive compensation. ^[1][3]

Refining by the barrel

Refining & Marketing margin is the company's non GAAP measure of what its refining business earns per barrel: sales revenue less the cost of refinery inputs and purchased products, divided by the barrels it refined. It rose to $45.70 a barrel from $36.33 in the second quarter and $17.60 a year earlier. Refining operating costs, which leave out turnaround costs and depreciation, were $5.60 a barrel against $5.72, and net refinery throughputs rose to 3,150 thousand barrels a day from 2,944 thousand. ^[1][3]

The second quarter release had given a third quarter outlook (company projection, as reported) of total refinery throughputs of 3,005 thousand barrels a day, refining operating costs of $5.60 a barrel and refining planned turnaround costs of $290 million. The quarter came in at 3,150 thousand barrels a day, $5.60 a barrel and $294 million. ^[3][1]

The numbers, quarter over quarter

Sales and other operating revenues rose to $56,032 million from $51,994 million, up 7.8% (Dalsna Finance calculation). Income from operations rose faster, to $10,450 million from $7,322 million. After interest and $2,285 million of income taxes, consolidated net income was $7,878 million. Of that, $431 million was attributable to noncontrolling interests, leaving $7,447 million for Marathon Petroleum's shareholders, against $5,138 million in the second quarter. ^[1][3]

Marathon Petroleum also reports adjusted net income attributable to MPC, a non GAAP measure that leaves out items the company does not see as part of its core operating performance, after their tax effect. The third quarter had one: $123 million before tax of tax and legal settlements, which the release says cover a municipal tax dispute with the City of Carson over several prior years and legal settlements from a single event in a prior year. Adding it back, net of $29 million of tax, gave adjusted net income of $7,541 million. The second quarter had no such items, so its adjusted and GAAP figures were the same. ^[1][3]

Profit margin here means profit divided by sales and other operating revenues. The operating margin uses income from operations, which comes before interest, taxes and noncontrolling interests, so it includes all of MPLX. The two net margins use Marathon Petroleum's share only. ^[1][3]

Against the third quarter of 2025

Against the same quarter a year earlier, the quarterly report says net income attributable to MPC rose $6.08 billion. It puts the revenue gain of $21.22 billion mainly down to average refined product sales prices that were $1.14 a gallon higher and refined product sales volumes that were 247 thousand barrels a day higher. Income from equity method investments fell $617 million, largely because the third quarter of 2025 included gains of $484 million on the BANGL acquisition and $254 million on the sale of an ethanol joint venture. ^[2]

On the cost side, the report says selling, general and administrative expenses rose $237 million, primarily from higher incentive compensation of about $150 million tied to company performance, and other taxes rose $74 million, mainly from resolving the City of Carson tax dispute. Net income attributable to noncontrolling interests fell $142 million, mainly because MPLX's net income in the year earlier quarter included gains on asset sales. The company took the $738 million of 2025 gains out of its adjusted figure, which is the main reason adjusted net income was below GAAP net income a year ago. ^[2][1]

Cash flow, debt and shareholder returns

Net cash provided by operating activities was $22,180 million in the first nine months of 2026, against $5,184 million a year earlier, according to the quarterly report. The report says the increase came primarily from stronger operating results and a favourable swing in working capital of $6.27 billion against the same period of 2025. ^[2]

The company returned $3.3 billion to shareholders in the third quarter, according to its release. The quarterly report shows $3,036 million of shares repurchased in the quarter, about 8 million shares, and a dividend of $1.00 a share. On October 28, 2026 the board declared a dividend of $1.10 a share, payable on December 10, 2026, which the release calls a 10% increase. At September 30, 2026 the company had $3.12 billion left under its repurchase authorization, and on November 3, 2026 it announced another $5.0 billion authorization. ^[1][2]

MPLX raised its quarterly distribution by 12.5%, and the release says that brings expected annual distributions to Marathon Petroleum to $3.1 billion (company projection, as reported). MPLX declared $1.2111 a unit on October 27, 2026, and the quarterly report puts Marathon Petroleum's portion at about $784 million. ^[1][2]

At September 30, 2026 Marathon Petroleum held $12,805 million of cash and cash equivalents and $804 million of short term investments, $13.6 billion in all including $1.3 billion at MPLX, and had no borrowings under its $5 billion bank revolving credit facility. Total consolidated debt was $33,022 million, of which $26,608 million was MPLX debt and $6,414 million MPC debt, against $32,816 million at June 30, 2026. On September 15, 2026 the company redeemed all $749 million of its senior notes due December 2026. ^[1]

Earnings per share

Earnings per share, or EPS, is profit divided by the number of shares. The diluted figure also counts shares that could be issued under items such as stock awards. Marathon Petroleum reported diluted EPS of $26.59 for the third quarter and $17.73 for the second, and adjusted diluted EPS of $26.93 and $17.73. Dividing net income attributable to MPC by the diluted share count the company publishes gives $26.60 and $17.72 (Dalsna Finance calculation). The one cent gaps are consistent with rounding, as the published share count is given to the nearest million, and the quarterly report says the company first allocates some income to participating securities, which are certain incentive compensation awards. ^[1][3][2]

In the third quarter the adjusted figure was above the GAAP figure because the tax and legal settlements were added back. In the second quarter there was nothing to adjust, so the two were equal. The diluted share count fell to 280 million from 290 million as the company bought back stock. ^[1][3]

What the market values Marathon Petroleum at

Market capitalization, or market cap, is what the stock market values the whole company at: the share price times the number of shares. Marathon Petroleum shares closed at $372.74 on Friday, November 6, 2026, as reported by StockAnalysis. The cover of the third quarter report lists 272,282,280 shares of Marathon Petroleum common stock outstanding as of October 29, 2026. That gives a market cap of about $101.49 billion (Dalsna Finance calculation). Every multiple and share price below uses this one share count. ^[4][2]

Two points on what that number covers. MPLX units held by outside investors trade separately and are not part of Marathon Petroleum's market cap, and the profit that belongs to those investors is also left out of net income attributable to MPC, so the multiples below set MPC's market cap against MPC's own share of profit. And the price is from November 6, 2026 while the earnings stop at September 30, 2026, so the multiples set that day's price against reported results, not against results still to come. ^[2][1][4]

Six valuation multiples

The price to earnings ratio, or P/E, is market cap divided by a year of earnings. It shows how many dollars the market is paying for each dollar of yearly profit. Annualised means one quarter multiplied by four, so it assumes the third quarter's conditions lasted a full year. Net income attributable to MPC of $7,447 million times 4 is $29,788 million, which gives an annualised P/E of 3.4. Adjusted net income of $7,541 million times 4 is $30,164 million, which gives an annualised adjusted P/E of 3.4 as well (Dalsna Finance calculation). ^[1][4][2]

A forward P/E uses an estimate of future earnings. Marathon Petroleum's release gives no earnings guidance, only operating outlook items for the next quarter. We found no dated full year analyst estimate published after the third quarter results that we could check against its original report, so both forward P/E values are not calculated. ^[1]

A trailing P/E, sometimes called a historical P/E, uses the last four reported quarters, here the twelve months to September 30, 2026. Net income attributable to MPC over that period added up to $14,631 million, which gives a trailing P/E of 6.9. Adjusted net income added up to $14,386 million, which gives a trailing adjusted P/E of 7.1 (Dalsna Finance calculation). Both sit well above the annualised multiples because the third quarter earned more than any of the three before it. ^{[5][6][3][1][4][2]}

The last four quarters

Each quarter's net income attributable to MPC and adjusted net income comes from Marathon Petroleum's own release for that quarter. Net income added up to $14,631 million and adjusted net income to $14,386 million (Dalsna Finance calculation for the sums). The first three quarters of 2026 add up to $13,096 million and $13,166 million, the same as the nine month totals in the third quarter release. In the fourth quarter of 2025 adjusted net income was below GAAP net income, while the third quarter of 2026 was the largest of the four on both measures. ^[5][6][3][1]

Two base cases: the third quarter held flat for a year

Suppose sales and other operating revenues stayed at the third quarter's level for a full year, with no growth and no decline: $56,032 million times 4, or $224,128 million. At the third quarter's GAAP net margin that gives $29,788 million of earnings, or $109.40 per share on the cover share count. At the adjusted net margin, which adds back the tax and legal settlements as the company's adjusted figure does, it gives $30,164 million, or $110.78 per share (Dalsna Finance calculation). ^[1][2]

Both cases are simply the third quarter annualised, so at its own annualised P/E each returns the November 6, 2026 close of $372.74 by construction. The other cells only show how the price moves when the same earnings are given a different multiple. The GAAP case meets the GAAP multiples and the adjusted case the adjusted ones. The forward P/E values were not calculated, so they have no column. ^[1][4]

There is no separate operating margin case. Net income was not lifted by items below the operating line, as only net interest and other financial costs of $287 million sit there, and income from operations is a consolidated figure that includes the profit belonging to MPLX's outside unitholders, so spreading it over Marathon Petroleum's shares alone would overstate what belongs to them. The one item the company quantified, the $123 million of settlements, is already handled by the adjusted case. ^[1][2]

The adjusted base case in a chart

What management said

Marathon Petroleum's release gives no revenue or earnings outlook, only operating outlook items for the fourth quarter, and we found no full year revenue figure from management in a dated public source that could be used as a scenario, so this article has no management revenue scenarios. The release says the company intends to reinvest its share of the refinery sale proceeds mainly in the Gulf Coast, and gives a 2026 capital spending outlook, excluding MPLX, of $1.5 billion (company projection, as reported). ^[1]

What to watch

The release gives a fourth quarter outlook (company projection, as reported): total refinery throughputs of 3,080 thousand barrels a day, refining operating costs of $5.60 a barrel and refining planned turnaround costs of $230 million. The fourth quarter report will show whether the refining margin per barrel stayed near the third quarter's $45.70 and whether the St. Paul Park and Mandan sale closed. ^[1][2]

One legal matter is worth following. The quarterly report describes climate related lawsuits that governmental and other entities have brought against a number of energy companies, including Marathon Petroleum, which faces such a case in Delaware. The company says that at this early stage neither the likelihood of an unfavourable outcome nor any liability can be determined. ^[2]

How these figures were made: inputs come from Marathon Petroleum's releases for the fourth quarter of 2025 and the first, second and third quarters of 2026 and from its third quarter 2026 report on SEC EDGAR, plus the dated closing price named above. Calculations use the figures as filed and are rounded only at the end, with percentages and multiples to one decimal, per share figures and prices to the cent and dollar amounts in millions. ^{[5][6][3][1][2][4]}