Marathon Petroleum Corp. (NYSE:MPC) shares are trading higher on Tuesday after the company reported first-quarter 2026 earnings results.
• Marathon Petroleum stock is at critical resistance. What’s behind MPC new highs?
Earnings Snapshot
The company reported revenue of $34.57 billion, versus $31.85 billion in the prior-year period. Sales exceeded the analyst estimate of $32.75 billion.
Adjusted EPS improved significantly to $1.65 from a loss of 24 cents a year ago, exceeding the 75 cents analyst estimate.
Adjusted EBITDA came in at $2.76 billion, higher than $2 billion a year ago.
As of March 31, 2026, the company reported $2.2 billion in cash and cash equivalents. It includes $1.5 billion at its subsidiary, MPLX LP (NYSE:MPLX).
The company disclosed that tighter global markets, due to Middle East tensions, have disrupted supply chains but also strengthened advantages from U.S. and Canadian crude sourcing.
Buyback Boost
The company returned over $1 billion to shareholders in share repurchases. As of March 31, $3.6 billion remained available under existing share repurchase authorizations.
The board approved an additional $5 billion share repurchase authorization, increasing total available buyback capacity to $8.6 billion as of March 31, 2026.
Segment Performance
In the Refining & Marketing segment, crude capacity utilization reached 89%, with throughput volumes of approximately 2.9 million barrels per day.
Segment adjusted EBITDA excludes refining planned turnaround costs, which stood at $530 million in the first quarter of 2026 and $454 million in the first quarter of 2025.
The R&M margin was $17.74 per barrel, up from $13.38 a year ago.
Refining operating costs rose to $6.23 per barrel from $5.74 a year ago quarter.
The Midstream segment reported adjusted EBITDA of $1.6 billion, versus $1.7 billion a year ago quarter. The decline was mainly driven by $77 million in derivative losses on economic hedges in the first quarter of 2026, along with a $37 million one-time benefit from a customer agreement recorded in the first quarter of 2025.
Renewable Diesel operations’ adjusted EBITDA improved to $38 million from a loss of $42 million a year earlier. Stronger margins and the recognition of clean fuel tax credits following clarity on 45Z regulations drive this.
Management Commentary
President and CEO Maryann Mannen stated, “Accelerating our planned turnaround activity in the quarter enhances our operational readiness to supply the elevated levels of current market demand. MPLX progressed its mid-single digit growth strategy through expansions across its Natural Gas and NGL value chains, underpinning distribution growth and strengthening cash flow stability to MPC, positioning us to lead in capital return.”
Outlook
For the second quarter of 2026, the company expects a total refinery throughput of 2.99 million barrels per day, including 2.80 million barrels of crude oil.
Projected refining operating costs are $5.65 per barrel, with planned turnaround costs of $300 million, distribution costs of $1.625 billion, and depreciation and amortization of $390 million.
Conference Call Key Takeaway
Late in the quarter, geopolitical disruptions tightened global energy markets, taking roughly six million barrels per day of refined product capacity offline — about 6% of global supply. The company noted that restoration timing remains uncertain and depends on damage evaluation and the normalization of crude flows.
Despite this volatility, domestic demand for gasoline, diesel and jet fuel stayed resilient, while export markets provided additional support. The business remains relatively insulated from global crude disruptions due to its strong reliance on U.S. and Canadian supply and its integrated refining system.
Key expansions include Permian processing capacity rising to 1.4 Bcf/d, sour gas treating capacity exceeding 400 MMcf/d by 2026, and the Harmon Creek 3 project, which will lift total capacity to about 8.1 Bcf/d.
MPLX LP plans over $2.4 billion in capital investment in 2026, with ~90% allocated to natural gas and NGL infrastructure. Several projects are expected to start generating cash in the second half of the year.
MPC Price Action: Marathon Petroleum shares were up 1.88% at $257.928 at publication on Tuesday, according to Benzinga Pro data.
Photo by Jonathan Weiss via Shutterstock
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