Marathon Petroleum (MPC.US) Q3 profit nearly quintuples year-over-year, sells two refineries to Icahn for $4.2 billion

On November 3, before the U.S. market opened, Marathon Petroleum (MPC.US), the largest independent refiner in the United States, reported its third-quarter 2026 results. The report showed total revenues and other income of $56.487 billion, of which sales and operating revenues were $56.032 billion, up about 61% year-over-year and significantly beating market expectations of about $43.81 billion; diluted earnings per share were $26.59, and adjusted earnings per share were $26.93, compared with $4.51 in the year-ago period, also above market expectations of about $25.59 to $26.00. The earnings surge was mainly driven by the refining business. Since the Iran war, about 10% of global refining capacity has been taken offline, and combined with Russian export restrictions, gasoline, diesel and jet fuel prices are near record highs. The International Energy Agency (IEA) expects the diesel supply shortage may last until 2027. In the quarter, the company's refining margin was $45.70 per barrel, compared with $17.60 in the year-ago period; adjusted EBITDA reached $11.729 billion, compared with $3.206 billion in the year-ago period. The company's crude oil capacity utilization rate reached 100% in the third quarter, with total throughput of 3.2 million barrels per day. The Refining & Marketing segment's adjusted EBITDA reached $9.895 billion, 5.6 times that of the year-ago period. The Midstream segment's adjusted EBITDA was $1.882 billion, up 10% year-over-year; the Renewable Diesel segment turned profitable, with EBITDA of $254 million. In terms of capital allocation, the company returned $3.3 billion to shareholders in the quarter and announced a 10% increase in its quarterly dividend to $1.10 per share; the board added a $5 billion buyback authorization, bringing total available repurchase capacity to $8.1 billion as of September 30. The company announced the same day that it would sell its St. Paul Park and Mandan refineries and related marketing businesses to refiner CVR Energy (CVI.US), controlled by billionaire investor Carl Icahn, for about $4.2 billion (plus net working capital). Of that, MPC will receive $3.45 billion, which it plans to mainly reinvest in the Gulf Coast; its MPLX unit will receive $750 million. The transaction is expected to be completed by the end of 2026. Against the backdrop of conflicts related to the Persian Gulf and Russia shrinking global fuel processing capacity and refining margins remaining high, CVR Energy's move is a contrarian capacity expansion. Chairman and Chief Executive Officer Maryann Mannen said that value chain capabilities are the company's decisive advantage, and that strong planning, commercial and operational execution generated significant cash flow.