A refiner and transporter of fuels, Marathon Petroleum runs more than a dozen refineries turning crude into the gasoline and diesel sold at its Marathon® and ARCO® branded stations, while its MPLX arm gathers, moves, and stores oil and gas. It grew out of the Ohio Oil Company, founded in 1887 in Lima, Ohio, and part of Rockefeller's Standard Oil trust, becoming today's company in a 2011 spinoff. Its name and the 'long-distance Greek runner' logo came from buying the Transcontinental Oil Company in 1930.
Refining margin rose to $36.33/barrel, driving Q2 2026 net income to $5.14B
Refining margins rebounded to their highest level in two years. rose 53.8% to $52.0B and was $17.73 as Refining & Marketing margin climbed to $36.33 per barrel from $17.58, lifting to $7,322M. Marathon is generating cash again, with $10.3B of in the quarter against a $909M derivative loss in Q1.
Key takeaways
Refining & Marketing rose to $6.66B from $1.89B a year ago as margin increased to $36.33 per barrel from $17.58, driven by higher and favorable crude differentials, with an estimated $4B positive impact versus Q2 2025.
Renewable Diesel improved to $258M from a $19M loss, driven by improved .
Midstream rose $137M to $1.78B on increased rates and throughputs including growth from equity affiliates and acquisitions.
Section summaries
Management's Discussion and Analysis
Refining & Marketing segment adjusted EBITDA surged to $6.66B in Q2 2026 from $1.89B a year ago, driven by higher crack spreads and favorable crude differentials.
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Refining & Marketing margin increased to $36.33 per barrel from $17.58, primarily due to higher crack spreads, contributing an estimated $4B positive impact versus Q2 2025.
Midstream rose $137M to $1.78B, driven by increased rates and throughputs including growth from equity affiliates and acquisitions.
was $5,138M, up 322.5% and 905.5% from Q1 2026's $511M, with of $17.73 versus $3.96 a year earlier.
was $10.3B for the quarter, up 291.3% , and was $9,141M; the company repurchased $3.25B of stock in H1 2026 with $6.13B remaining under authorization.
produced a $584M net loss in H1 2026 versus $33M a year earlier, with none designated as so the loss hit earnings directly.
What changed
Q2 2026 Refining & Marketing margin per barrel: flagged to watch from Q1's $17.74; it rose to $36.33, more than doubling from the $17.58 Q2 2025 level.
Q2 2026 commodity derivative result: flagged after Q1's $909M net loss; H1 2026 was a $584M net loss, down from $33M a year earlier, with no .
Q2 2026 : flagged against $30.7B after the May $5.0B authorization; it held at $30.7B quarter over quarter, up 14.4% .
Renewable Diesel : flagged after Q1's $38M result as 2025 tax credits lap out; it reached $258M versus a $19M loss a year earlier on .
Risk factors showed no material change from the FY 2025 10-K, which had flagged California SB X1-2 and AB X2-1 effects on West Coast refining margins for 2026.
What to watch
Q3 2026 Refining & Marketing margin per barrel as move from the $36.33 Q2 level
Q3 2026 commodity derivative result after the $584M H1 2026 net loss with no
Q3 2026 against the $30.7B balance after H1 repurchases and the $5.0B authorization
Renewable Diesel trajectory after the $258M Q2 result as shift
Renewable Diesel improved to $258M from a loss of $19M, driven by improved regulatory credit values.
Net was $11.45B for the first six months of 2026, up $8.87B , aided by a $4.23B favorable change in .
The company repurchased $3.25B of its common stock in the first half of 2026 and had $6.13B remaining under its authorizations as of June 30.
MPLX increased its 2026 growth outlook by $500M to $2.9B, primarily for expanding Gulf Coast fractionation and export facilities.
Quantitative and Qualitative Disclosures About Market Risk
Commodity derivatives drove a $584M net loss in H1 2026, while fixed-rate debt fair value is sensitive to rate changes.
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Commodity derivatives are not designated as accounting hedges; net losses on these positions were $584M for the six months ended June 30, 2026, versus $33M a year earlier.
A 10% rise in crude prices would increase by $81M, while a 10% rise in refined products, blending products, and soybean oil would decrease IFO by $15M, $4M, and $23M, respectively.
The company states that market risk from commodity derivatives should be mitigated by offsetting price changes in the underlying physical commodities, which are excluded from the sensitivity analysis.
All as of June 30, 2026 is fixed-rate; a 100-basis-point decrease in rates would increase the of this debt by $2,540M.
Interest rate fluctuations do not impact from debt currently, but could unfavorably affect results if the company repurchases fixed-rate debt above .
We are the subject of, or a party to, a number of pending or threatened legal actions, contingencies and commitments involving a variety of matters, including laws and regulations relating to the environment. While it is possible that an adverse result in one or more of the laws…
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We are the subject of, or a party to, a number of pending or threatened legal actions, contingencies and commitments involving a variety of matters, including laws and regulations relating to the environment. While it is possible that an adverse result in one or more of the lawsuits or proceedings in which we are a defendant could be material to us, based upon current information and our experience as a defendant in other matters, we believe that these lawsuits and proceedings, individually or in the aggregate, will not have a material adverse effect on our consolidated results of operations, financial position or cash flows. See “Climate Change Litigation,” “Tesoro High Plains Pipeline,” and “Dakota Access Pipeline” of Note 22 in Item 1. Financial Statements for additional information regarding Legal Proceedings and other regulatory matters.