Marathon Petroleum stock pivots toward Gulf Coast after refinery sale

Marathon Petroleum is reshaping its refining portfolio after reporting a powerful third quarter and announcing the sale of its St. Paul Park and Mandan refineries. The company said in its release carried by Morningstar on November 3 that the transaction is intended to redirect capital toward higher-return opportunities, primarily along the Gulf Coast.

For the third quarter ended September 30, Marathon Petroleum reported net income attributable to the company of 7.447 billion US dollars, compared with 1.370 billion US dollars a year earlier. Adjusted net income reached 7.541 billion US dollars, or 26.93 US dollars per diluted share, versus 915 million US dollars, or 3.01 US dollars per share, in the prior-year quarter.

Refining margins drove the rebound

Adjusted EBITDA rose to 11.729 billion US dollars from 3.206 billion US dollars. The Refining and Marketing segment contributed 9.895 billion US dollars, up from 1.762 billion US dollars, while adjusted EBITDA per barrel increased to 34.15 US dollars from 6.37 US dollars.

Refining and Marketing margin reached 45.70 US dollars per barrel, compared with 17.60 US dollars in the third quarter of 2025. Capacity utilization was 100 percent, with net refinery throughput of 3.150 million barrels per day. Marathon said higher market crack spreads in all regions were the primary driver.

The improvement was not limited to refining. Renewable Diesel segment adjusted EBITDA turned positive at 254 million US dollars, compared with a loss of 56 million US dollars in the prior-year quarter. Marathon also returned 3.3 billion US dollars to shareholders and announced a 10 percent increase in its quarterly dividend.

Sale funds Gulf Coast investments

The announced divestiture values the two refineries and related midstream assets at 4.2 billion US dollars. Marathon Petroleum expects to receive 3.45 billion US dollars, while MPLX is set to receive 750 million US dollars for associated logistics assets. The transaction is expected to close at the end of 2026.

Management's 2026 capital spending outlook for Marathon, excluding MPLX, is 1.5 billion US dollars. Planned projects include a 90,000-barrel-per-day distillate hydrotreater at Galveston Bay and projects at Garyville designed to improve feedstock flexibility, crude throughput and premium gasoline exports. The company expects these projects to enter service by the end of 2027.

Lower fourth-quarter throughput ahead

Marathon's fourth-quarter outlook calls for 2.830 million barrels per day of crude throughput and 230 million US dollars of planned refining turnaround costs. That implies a more restrained operating quarter than the record third-quarter utilization, even as management continues to emphasize Gulf Coast investment and capital returns.

Marathon Petroleum stock last traded at 342.20 euros on Lang and Schwarz at 14:38 CET on Tuesday, November 10. The quote is shown without a daily direction because a compatible dated Xetra closing comparison was not available.

The broader US equity market remains the relevant setting for Marathon Petroleum stock; see the S&P 500 market overview.

Investors will focus next on the closing timetable for the refinery sale, progress on the Gulf Coast projects and whether refining margins remain strong enough to support the company's elevated capital returns. More news and analyses on Marathon Petroleum stock.