Higher crack spreads driven by Strait of Hormuz supply disruptions pushed the refiner's quarterly net income to $5.1 billion
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Marathon $MPC Petroleum disclosed second-quarter net income of $5.1 billion, or $17.73 per diluted share, a level not reached in four years. The result compared with net income of $1.2 billion, or $3.96 per diluted share, in the same period last year.
The adjusted earnings beat analyst expectations of $13.73 per share, according to Reuters.
The company's refining and marketing margin doubled to $36.33 per barrel from $17.58 per barrel a year earlier, driven by higher crack spreads across all regions, the company said. Adjusted EBITDA for the quarter reached $8.5 billion, up from $3.3 billion in the second quarter of 2025.
Months of restricted crude flows through the Strait of Hormuz pushed refining margins sharply higher, and Iranian strikes on regional refining infrastructure compounded the tightness in fuel markets, according to Reuters.
Marathon's refining and marketing segment posted adjusted EBITDA of $6.7 billion, up from $1.9 billion a year earlier. Crude capacity utilization was 94%, with total throughput of 2.9 million barrels per day. Marathon's renewable diesel business generated adjusted EBITDA of $258 million for the quarter, swinging from a $19 million loss a year earlier, as the unit benefited from wider margins, greater volumes, and better regulatory credit pricing, the company said.
Marathon shares were up roughly 2.1% before the opening bell.
The earnings come after competitors Valero $VLO Energy and HF Sinclair each turned in their best quarterly results since 2022.
The company returned more than $2.8 billion of capital to shareholders during the quarter through buybacks and dividends. As of June 30, Marathon held $7.8 billion in cash and had $6.1 billion remaining under its share repurchase authorizations, the company said.
Looking ahead to the third quarter, the company has guided for refinery throughput of around 3 million barrels per day. The company also completed two yield-enhancing refining investments during the quarter — an upgrade to the fluid catalytic cracker and alkylation units at its El Paso refinery, and a product flexibility project at its Robinson refinery that adds approximately 10,000 barrels per day of incremental jet fuel production capacity, the company said.
Marathon's midstream segment posted adjusted EBITDA of $1.8 billion in the quarter, up from $1.6 billion a year ago, driven by increased rates and throughputs. The company's midstream subsidiary, MPLX, raised its 2026 growth capital spending outlook by $500 million to $2.9 billion to accelerate Gulf Coast fractionation projects.
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