Marathon Petroleum reported fourth-quarter net income attributable to the company of $1.5 billion, or $5.12 per diluted share, compared with $371 million, or $1.15 per diluted share, in Q4 2024. Adjusted net income reached $1.2 billion, or $4.07 per diluted share, up from $249 million, or $0.77 per diluted share, a year earlier. Adjusted EBITDA for the quarter was $3.5 billion, a 65% increase year-over-year, driven by a refining & marketing segment EBITDA of $2.0 billion—nearly quadruple the prior year’s result—and midstream EBITDA of $1.7 billion. Refinery utilization averaged 95% with throughput of 3.0 million barrels per day, while R&M margin widened to $18.65 per barrel, supported by robust crack spreads despite a modest rise in operating costs to $5.70 per barrel.

In 2025, Marathon returned $4.5 billion to shareholders through dividends and share repurchases, representing an 11.7% capital return yield. Cash from operations totaled $8.3 billion, enabling peer-leading returns. During Q4, the company repurchased approximately $1.3 billion of stock under its remaining $4.4 billion authorization and maintained a dividend coverage position supported by growing distributions from its midstream affiliate. MPLX distributions are expected to more than fund MPC’s 2026 dividend and standalone capital program, reinforcing the integrated model’s differentiation.

At the end of January, Marathon anticipated processing two cargoes of Venezuelan heavy crude at its U.S. refineries, targeting improved feedstock economics and margin capture. This marks a shift toward heavier slate utilization as specialized units at Garyville and Galveston Bay come online. The feedstock optimization project at Garyville will displace higher-cost intermediates with crude, with a $110 million investment in 2026 and $185 million in 2027, scheduled for completion by year-end 2027. Enhanced heavy feedstock handling is expected to lift R&M margin performance in the second half of 2026.

Marathon’s standalone capital budget for 2026 is $1.5 billion, allocated 65% to value-enhancing projects and 35% to sustaining work. Key investments include $350 million for a 90 thousand-barrel-per-day distillate hydrotreater at Galveston Bay and $50 million to enhance jet fuel output flexibility at Robinson. At El Paso, a $35 million yield improvement project on the fluid catalytic cracker and alkylation units will complete in Q2 2026, while Los Angeles utility modernization wraps up post-turnaround. The combined program aims to boost throughput, elevate product yields and strengthen margin resilience across MPC’s refinery network.