The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Energy sector dominated this year for the first time since 2008, with 28 companies featured on the list.

100 Fastest-Growing Companies

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are mining, oil and gas exploration and services, pipelines, refining, and utilities.

Fortune Sector Leaders: Energy

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

G500-2023-Marathon Petroleum

Oil and gas refiner Marathon Petroleum brought in $180 billion in revenue, a 27% increase from the previous year. The company made $14.5 billion in profits, an increase of almost 50%. 
<ul> 
 	<li>Marathon returned 86.5% to shareholders in 2022, making it the sixth-best-performing stock on the U.S. Fortune 500 for the year.</li> 
 	<li>In April 2023, Tesoro Refining and Marketing, which was acquired by Marathon Petroleum in 2018, paid a $27.5 million settlement for violating a court order to reduce pollution at its facility in Martinez, Calif.</li> 
</ul>

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500 2023-Marathon Petroleum

Oil and gas refiner Marathon Petroleum jumped three spots on this year’s list, bringing in $180 billion in revenue, a 27% increase from the previous year. The company made $14.5 billion in profits, an increase of almost 50%. 
<ul> 
 	<li>Marathon returned 86.5% to shareholders in 2022, making it the sixth-best-performing stock on the Fortune 500 for the year.</li> 
 	<li>In April 2023, Tesoro Refining and Marketing, which was acquired by Marathon Petroleum in 2018, paid a $27.5 million settlement for violating a court order to reduce pollution at its facility in Martinez, Calif.</li> 
</ul>

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

G500 2022-49-Marathon Oil

Like most energy companies, independent refiner Marathon Petroleum took a big hit from declining oil and gas prices at the start of the pandemic—and saw its fortunes rebound in 2021, climbing from No. 81 to No. 49 on this year’s Global 500. The company also sold gas-station and convenience-store chain Speedway to 7-Eleven for $21 billion in May 2021. Russia’s invasion of Ukraine created new challenges for Marathon in 2022: Prior to the invasion, Marathon was a major purchaser of Russian oil. Owing to sanctions against Russian products, the company has started looking for alternative suppliers; in particular, it has begun turning to Ecuador as a source of crude.

This year’s Fortune 500 marks the 68th running of the list.

F500 2022 Marathon Petroleum

Like most energy companies, independent refiner Marathon Petroleum took a big hit from declining oil and gas prices at the start of the pandemic—and saw its fortunes rebound in 2021, climbing from No. 32 to No. 19 on this year’s Fortune 500. The company also sold gas-station and convenience-store chain Speedway to 7-Eleven for $21 billion in May 2021. Russia’s invasion of Ukraine created new challenges for Marathon in 2022: Prior to the invasion, Marathon was a major purchaser of Russian oil. Owing to sanctions against Russian products, the company has started looking for alternative suppliers; in particular, it has begun turning to Ecuador as a source of crude.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500-2021-081-Marathon Petroleum

The country’s largest independent refiner wasn’t spared the ravages of COVID-19. Major disruptions to the transport fuels business saddled Marathon with a $9.8 billion loss in profits in 2020. To consolidate, the company announced it would sell its Speedway retail operations to 7-Eleven for $21 billion. The company also began widespread job cuts shortly after it announced in August the permanent closure of two refineries in New Mexico and California. Adding to its challenges, a devastating winter storm in Texas delayed the company’s 2020 results.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-32-Marathon Petroleum

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-048-Marathon-Petroleum

While much of the energy sector struggled with faltering oil prices, the U.S.’s largest independent refiner eked out gains by processing crude into industrial products.That pushed up revenue 28.5% in 2019 even as net income remained flat. Still, the Ohio-based business had a tumultuous year. It purchased Andeavor, a move that expanded its reach as a refiner, but failed to live up to Marathon's expectations. Activist investors, meanwhile, renewed demands for a management shakeup. They also pushed for a review of the company's pipeline and storage operations, as well as the planned spin-off of its retail Speedway business.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-022-Marathon-Refinery

While much of the energy sector struggled with faltering oil prices, the U.S.’s largest independent refiner eked out gains by processing crude into industrial products.That pushed up revenue 28.4% in 2019 even as net income remained flat. Still, the Ohio-based business had a tumultuous year. It purchased Andeavor, a move that expanded its reach as a refiner, but failed to live up to Marathon's expectations. Activist investors, meanwhile, renewed demands for a management shakeup. They also pushed for a review of the company's pipeline and storage operations, as well as the planned spin-off of its retail Speedway business. Amid the turmoil, the company’s long-time CEO plans to retire this year.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Marathon Petroleum is a petroleum and energy refining, processing, and marketing company. Until 2011, it was a fully owned subsidiary of Marathon Oil. MPC operates the largest petroleum refining system in the U.S. as of 2026. The marketing arm includes Marathon-branded retail outlets—gas stations offering Marathon gasoline, plus car washing services and convenience store items. In addition to its refining and fuel businesses, the company makes ingredients for household items such as carpeting and PVC pipes. Through a partnership with MPLX, Marathon Petroleum provides fuel logistics and distribution services.

Q2 2026

Q1 2026

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Marathon Petroleum (MPC): Company Profile, Stock Price, News, Rankings

legacy

Marathon Petroleum

marathon petroleum

Welcome to the MPC Second Quarter twenty twenty five Earnings Call. My name is Ted, and I'll be your operator for today's call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session. Please note that this conference is being recorded.

I will now turn the call over to Kristina Kiserion. Kristina, you may begin.

Welcome to Marathon Petroleum Corporation's second quarter twenty twenty five earnings conference call. The slides that accompany this call can be found on our website at marathonpetroleum.com under the Investor tab. Joining me on the call today are Mary Anne Mannen, CEO John Quaid, CFO and other members of the executive team. We invite you to read the Safe Harbor statements on Slide two. We will be making forward looking statements today.

Actual results may differ. Factors that could cause actual results to differ are included there as well as in our SEC filings. With that, I will turn the call over to Mary

Anne. Thanks, Christina, and good morning, everyone. Our second quarter results reflect actions we have taken to create exceptional value. We delivered 97% utilization, achieving record rates at several refineries throughout the quarter. And we leveraged our fully integrated value chains across the West Coast, Gulf Coast and Mid Con to deliver 105% margin capture.

Current fundamentals, especially strong diesel demand coupled with tight inventory levels remain supportive of strong margins. U. S. Gasoline inventories are in line with five year averages and diesel inventories are at historically low levels. As anticipated, sequentially we saw steady growth across gasoline, diesel and jet.

Our system was ready to run. Higher OPEC plus production and more Canadian supply should lead to crude differentials widening later this year. Our longer term fundamental view supports an enhanced mid cycle environment for refining as we expect demand growth to exceed the net impact of capacity additions and rationalizations through the end of the decade. We expect The U. S.

Refining industry will remain structurally advantaged over the rest of the world. The flexibility of our refining assets and our domestic and international logistical and commercial capabilities further increase our global competitive advantage. We are steadfast in our commitment to safely operate our assets and protect the health and safety of our employees. We continue to advance our operational and commercial capabilities to enhance competitiveness, deliver incremental value and achieve peer leading profitability in each region in which we operate. In the 2025, our Midstream business delivered 5% year over year segment adjusted EBITDA growth.

MPLX is well positioned to support the development plans of its producer customers, especially as demand increases for natural gas powered electricity and LNG imports exports, excuse me. And with the development of its Gulf Coast fractionation facilities, MPLX is positioned to supply growing global demand for NGLs. MPLX's financial flexibility, its producer customer relationships and strategic roadmap for growth all place it in an excellent position to continue to significantly grow its distributions further enhancing the value of its strategic relationship with MPC. Given our highly advantaged refining and marketing business and the $2,500,000,000 annualized distribution from MPLX, we believe Marathon can lead industry in capital returns through all parts of the cycle. We announced two transactions to further our portfolio optimization for today and the future.

First, MPC's $425,000,000 divestiture of its partial interest in ethanol production facilities. As the partner's strategic goals evolved and diverged, an opportunity came for MPC to exit the partnership. We were able to monetize our interest at a very compelling multiple. We were the largest blender of ethanol before and we are the largest blender after the sale. There will be no commercial impacts from the sale.

Second, MPLX announced the strategic acquisition of Northwind Midstream for under $2,400,000,000 Northwind provides sour gas gathering and treating services in the highly prolific Delaware Basin. Increased crude drilling activity in the eastern edge of the Northern Delaware Basin has been enabled by increased sour gas treating and AGL well capacity provided by these assets. The assets will provide prompt treatment solutions for existing and new producer customers. Our fee structure comprises gathering, compression, processing as well as more extensive CO2 and H2S treating. The higher levels of CO2 and H2S warrant a higher fee structure compared to other regions.

On average, this gets to an aggregated rate significantly above other regions. These assets are complementary and adjacent to our existing Delaware Basin natural gas system and will expand MPLX's treating and blending operations. The addition of 200,000 dedicated acres will increase MPLX's access to natural gas and NGL volumes. The optionality to direct these new volumes through our integrated system will accelerate our growth opportunities in the Permian. The transaction is expected to be immediately accretive to MPLX's distributable cash flow and represents a seven times multiple on forecasted 27 EBITDA after the treating system reaches full capacity.

MPLX's execution of its wellhead to water growth strategy and the ability to accelerate growth opportunities in the Permian extends the duration of its anticipated mid single digit EBITDA growth. We believe execution of our strategic commitments including portfolio optimization will position our integrated system to deliver industry leading capital returns and offer a compelling value proposition for our shareholders. Now I'll hand it over to John to discuss our financial performance.

Thanks, Mary Anne. Moving to second quarter highlights, slide five provides a summary of our financial results. This morning we reported second quarter net income of $3.96 per share and during the quarter we returned approximately $1,000,000,000 to shareholders through dividends and repurchases. Slide six shows the sequential change in adjusted EBITDA from first quarter to second quarter twenty twenty five and the reconciliation between adjusted EBITDA and our net results for the quarter. Adjusted EBITDA for the quarter was approximately $3,300,000,000 higher sequentially by $1,300,000,000 primarily due to increased results in our Refining and Marketing segment.

Moving to our R and M second quarter segment results on slide seven, our refineries ran at 97% utilization processing 2,900,000 barrels of crude per day. R and N segment adjusted EBITDA was $6.79 per barrel reflecting strong operational and commercial performance. Turning to Slide eight, second quarter capture of 105% was driven by our strategic execution to grow our product channels and favorable secondary product pricing relative to gasoline. Leveraging our integrated value chain, we achieved strong profitable growth through our product sales channels including brand, wholesale and export sales. We are committed to improving our commercial performance and believe we are building capabilities that will provide sustained incremental value and will produce results that can be seen in our financials.

We are also making investments in our refining and marketing segment targeted on growing our margins. The multi year projects at our Robinson and Galveston Bay refineries increase our ability to produce higher value products and the execution of smaller high return quick hit projects drive incremental yield and performance improvements. Slide nine shows our Midstream segment performance for the quarter. Our Midstream segment continues to deliver cash flow growth with year to date segment adjusted EBITDA increasing 5% over last year. In the 2025, MPC received distributions of $619,000,000 from MPLX, a 12.5% increase compared to the $550,000,000 received in the second quarter of last year.

MPLX remains a source of durable growth as it progresses its mid single digit adjusted EBITDA growth strategy. Slide 10 shows our Renewable Diesel segment performance for the quarter. Our Renewable Diesel facilities operated at 76% for the quarter, which included a planned full plant turnaround at our Dickinson facility. Margins improved as we realized incremental 45Z production tax credits in the second quarter and we will continue to focus on optimizing our renewable facilities, leveraging logistics and our pretreatment capabilities. Slide 11 presents the elements of change in our consolidated cash position for the second quarter.

Operating cash flow excluding changes in working capital was 2,600,000,000 for the quarter. Working capital was a $34,000,000 source of cash for the quarter. Inventory drawdowns to normal operating levels were a source of cash, but they were offset by higher product receivables from increased sales volumes. Second quarter capital expenditures, investments and acquisitions were just over $1,000,000,000 approximately $350,000,000 for MPC on a standalone basis and almost $700,000,000 for MPLX. In the quarter MPC repaid $1,250,000,000 in senior notes which matured in May and MPLX redeemed $1,200,000,000 of senior notes which were scheduled to mature in June.

At the end of the quarter MPC had cash of nearly $300,000,000 and MPLX cash of approximately $1,400,000,000 We manage our balance sheet to an investment grade credit profile supported by the $2,500,000,000 and growing annual distribution from MPLX, our strong balance sheet provides us the financial flexibility to execute our strategy. Turning to guidance on slide 12, we provide our third quarter outlook. We are projecting crude throughput volumes of 2,700,000 barrels per day representing utilization of 92%. Turnaround expense is projected to be approximately $400,000,000 in the quarter with activity mainly focused in the Mid Con and West Coast regions. For the full year turnaround expenses are expected to be similar to last year at around 1,400,000,000 Operating costs are projected to be $5.7 per barrel, distribution costs are expected to be $1,500,000,000 and corporate costs are expected to be $240,000,000 With that, let me pass it back to Mary Anne.

Thanks John. Our strategic priorities and commitments have produced sustained structural advantages. Safe and reliable operations are foundational. Operational excellence is integral. And paired with strong commercial execution, we should deliver peer leading profitability.

We will continue to optimize our portfolio for today and the future through strategic investments and divestitures such as the sale of our partial interest in ethanol production facilities. We will execute our $1,250,000,000 standalone capital plan for 2025 with 70% targeted on high return projects designed to create optionality and improve our ability to capitalize on market opportunities. MPLX has announced $3,500,000,000 of acquisitions so far this year, enhancing the growth platform of its natural gas and NGL value chain strategy and remains on track to invest $1,700,000,000 on organic growth plans in 2025. MPLX differentiates MPC from peers, providing distributions that we expect to cover MPC's dividends, standalone capital spending and more. MPLX increased its distribution by 12.5% last year and expects to see similar increases for the next few years.

Our integrated value chain and diversified assets position us to lead in capital allocation. Let me turn the call back to Christina.

Thanks, Mary Anne. As we open the call for your questions, as a courtesy to other participants, we ask that you limit yourself to one question and a follow-up. If time permits, we will re prompt for additional questions. We will now open the call for questions. Operator?

Thank you. We'll now begin the question and answer session. The first question in the queue is from Manav Gupta with UBS. Your line is open.

Good morning, Mary Anne. Very strong quarter. I have to ask you this. I know you guys don't focus so much on it, but 105% capture. I know in the past there are times you go over 100% towards the fourth quarter where things are a little different, but I have never I don't remember seeing over 100% in the second quarter.

So could you talk about that 105% capture that you achieved in the second quarter?

Of course, and good morning. Thank you for your question. We've been prioritizing our commercial performance. It has been and will continue to be foundational for us, to deliver peer leading results. The commercial and the value chain optimization teams have been and will remain committed to improving commercial performance and we expect that these are sustainable and we'll be able to continue to deliver those results in the coming quarters.

We've got the scale of our fully integrated system across our three regions. We've increased commercial capabilities as you know and we think that those sustainable changes will continue to deliver value in the future. It's part of our commitment to excellence. And frankly, we expect this to lead to stronger cash flows and our ability to deliver the most cash flow per share. With that, let me pass it to Rick because I'm sure he's got a few other things that he would like to share with you as well on the performance in the quarter.

Yes. Hi Manav and thank you for the question. So Mary Anne used the word sustainable. I couldn't agree more, but I would also say, want to leave you with the fact that we have made and continue to make structural improvements to our organization to better our performance. So I think that's a key point that I want you to walk away with.

This isn't a one and done. We expect to maintain this and to continue to improve on our performance. Mary Anne also mentioned our regional optimization. So when you look at our fully integrated value chains within the Mid Con, the West Coast and the Gulf Coast, we believe we're unparalleled to take advantage of our assets and our connectivity within each region whether that's moving feedstocks, intermediates, products between one plant or one region to another, we have incredible flexibility. And then Manav, what was mentioned on the call in the second quarter, we certainly achieved strong profitable growth through our product channels, our Marathon brand, our wholesale channel and our international clean product exports.

As well as I'll leave you with, it's very well known that diesel cracks have been driving the market as well as jet has been very strong and we leaned in significantly to both of those product channels throughout the quarter. So I hope that helps to give you some color Manav.

No, that's very helpful. My quick follow-up here is we have seen OPEC put in some hikes, more hikes are on the table. We are not seeing still a material widening on the quality discounts. WCS has actually started to move. The last I checked was almost $13 discount to WTI, which does help you a lot. I'm just trying to understand your outlook for the quality discounts as OPEC comes forward with August and September hikes of additional barrels. How do you see those discounts trending into the year end? Thank you.

Yes. It's a really good call out Manav. I will tell you that we expect differentials flat out to widen out in the back of the second half this year. As everyone has seen OPEC recently accelerated increasing bringing barrels to market by 547,000 barrels a day by September. And I want to click double click on September for just a moment because that's key.

What you will find at least in our experience is it will take a month or two Manav for those barrels to impact the global flows and then ultimately impact the spreads. So continue to watch that as 3Q plays out here. And then I'd be remiss if I didn't chat about the Canadian production as well and where we see everything coming out of Canada. So with Canadian maintenance behind the producers, we're seeing bullish Canadian production as witnessed by recent apportionment on lines out of Canada for actually six out of the last eight months. And as you know turnarounds are increasing in The Gulf Coast this fall reducing demand for Canadian barrels.

And then here in the middle to end of 3Q, we're going to have diluent blending kicking in here shortly to swell the pool as well. So we see a lot of positive trends on the Canadian barrel that as you know comes into our system and we can use in a very dynamic way. In fact, there is no one in The United States that can consume more heavy Canadian than us. So we're looking forward to 3Q, 4Q. As you pointed out Manav, the signals and the differentials are already beginning to change.

The next question in the queue is from Paul Cheng with Scotiabank. Your line is now open.

Mary Anne, questions in here. One, maybe this is for Rick. With the two pending California refinery closure, for your system, how you think that is going to impact you? And I would imagine there's a lot of opportunity for you. Where do you see is the biggest opportunities?

The second question is that on the turnaround expense, you have back to back two years actually pretty heavy turnaround, about $1,400,000,000 spending. Is that considered the cycle high? And over the next several years, what would be a more normal level or average for the cycle? What is the more normal level for the turnaround expense that we can expect? Thank you.

Thanks, Paul. First on California, let me share a few thoughts and then I'll pass it to Rick and he can give you incremental color. On California, we've been studying this region as you well know for a long period of time. And one of the things that we've said is we believe that we have one of the most competitive regions on the West Coast. Frankly, we've shared over the last two years, we've put about $700,000,000 to work in our LA asset with a return that we expect in and about 20%.

It will improve efficiency. It will add reliability, obviously generate incremental EBITDA, all at the same time then complying with required NOx emission reductions. And so we think there's real advantages there as you well know. We think about the number of ICE vehicles remaining in that state, 28,000,000 vehicles. I think about 8,000,000 of those sit in LAR really in very close proximity to our asset as well.

So we've made commitments to the region. We continue to feel positive about those commitments we've made. And again, this project that I referred to you will be complete this year. I'm going to pass it to Rick and he can give you any incremental color on California.

Yes. Hi, Paul. So just a few additional items because Marion really covered it well. A couple of things to watch as the closures happen is we will have access to a lot of local California crudes that we don't have access to today or not as much access to. And we see those as being advantaged barrels.

So look for that to happen. We see that certainly as a tailwind for us being right there in L. A. With our facility. And then I'll also leave you with, don't just think of us as L.

A. And L. A. Only. Really think of us as our fully integrated system.

And what I mean by that is our Pacific Northwest. It's Anacortes and it's Kenai. So we have the optionality to use all three facilities to play off of one another whether that be providing carb gasoline into the state of California I. E. San Francisco when differentials blow out or to move intermediates between the three facilities.

So, we have a lot of optionality which we believe ultimately gives us a really strong competitive advantage in that region.

And Rick, can you also talk about how the impact on the Southwest market where you have the Paso refinery and also into the Rocky Mountain, given that LA is also sending barrel in theory that I mean, they are sending barrel to the Phoenix market. So in theory that those barrel will become lesser and how that you will be able to take advantage?

Yes, question Paul. I will tell you that El Paso can reach the Phoenix market very efficiently and effectively and we'll continue to lean into that market even more as all things play out within California. Because ultimately, it's fair to say that most people know that California is short, right? And it's going to be even shorter going forward. So that will continue to place more emphasis on our El Paso Refinery to cover the Arizona market.

And Paul, I wanted to come back to your second question, think which was around turnaround and whether or not this run rate is what we're expecting going forward. Just a couple of comments and I'll pass it to John to give you some of the details. But as you know, we've continued to prioritize our peer leading performance and our operational excellence to ensure one, safe and reliable operations and two, the ability to continue to improve profitability per barrel. And a lot of the work that we've been doing, quick hit projects, projects that I mentioned as well are all part objective of ensuring the most profitable results, for each of the regions. Let me pass it to John to address your turnaround question.

Yes. Thanks, Mary Anne, and thanks for the question, Paul. I think like you noted, I think we're still kind of coming out of the backlog from COVID, etcetera, still working through that. So we might be here at the peak as we continue to work through that backlog. And then, I think if you look out a little further beyond that, we'll see the numbers come back down, although I'm not going to give you a twenty twenty seven guidance on the call today.

But hopefully directionally that gives you a feel for where we are.

The next question in the queue is from Neil Mehta with Goldman Sachs. Your line is now open.

Yes. Good morning, Mary Anne and team. Thanks for all this. First question just around return of capital. Obviously, that's been a hallmark of MPC coming out of COVID, the amount of you've shrunk your share count. Buyback this quarter maybe a little bit lighter than where we've been trending.

I don't know if there was some specific dynamics there or just it's where we are at this point with the cash balances. But Miriam, maybe you could talk about how you're thinking about the return of capital specifically around the buyback?

Yes. Good morning, Neal. So no change in the way that we think about prioritizing the return of capital. One of the things that we've been trying to say is all of the work that we're doing improving commercial performance, our operational excellence should yield the strongest cash flow per share and therefore allow us to lead in capital return compared to our peers. I think the other thing that I would want to be sure, when we look at MPLX, we've been talking about that 12.5% distribution and the potential to continue to grow that over the next few years.

We raised that distribution last year as well. The benefit of that, at least right now is $2,500,000,000 on an annual basis coming to MPC. And as you know, that covers MPC's dividend to its shareholders and the capital that MPC was planning to put to work in 2025 with some right available for other elements. So as MPLX is able to grow that distribution and that 2.5% improves as well that should further support our ability right to continue to lead in capital return. But I think your statement is accurate.

When you look at the amount of cash flow that we have in terms of our results and how we prioritize that cash flow, these are reasonable ranges. We'll take a look each quarter at market dynamics, our cash flow expectation, etcetera. But we intend to return all free cash flow in the form of share buybacks. So no change to that at all, Neil. Hope that answers your question.

That's really helpful. Thanks, Mary Anne. And then the follow-up just on Galveston Bay. Looked like there was some downtime at the RU unit. Where are we in terms of starting that back up?

And I know you're working on some projects around the high sulfur distillate and trying to get that into ultra low sulfur diesel. And so where do we stand on that asset that project as well?

Yes, certainly, Neil. So really, as you saw in the second quarter, very minimal impact from GBR. I'm going to pass it to Mike here in a moment who will take you through what the plans are for 3Q and walk you through that coming back up, if you will, for GBR. And you're right, we are also prioritizing capital. Galveston Bay is one of them for the DHT, really trying to optimize that product slate.

We've got a couple of other projects Robinson being another one, where we can improve yield. And so we continue to try to put capital to work, very similar to what you say with respect to Galveston Bay. We think that's important for us from a reliability standpoint, particularly when you look at the level of returns that we can see on those major projects as we've shared in at about 20%, Our overall portfolio in at about 30% this year. But let me pass it to Mike and have him walk you through the plans for GBR restart.

Thank you, Mary Anne. In June, an incident occurred around one of our trains in the ReZED hydrocracker. The refinery team did a great job responding quickly and extinguished the fire with no injuries. We're roughly about halfway through our phase startup process. The 200 train is up and running and the downstream units are currently stable and we're working on the 300 train and plan to be operational soon.

Overall, we should be back at planned rates shortly. We are currently optimizing the remaining plant operations around resid containment and, this has been incorporated in our third quarter guidance and is expected to have a minor impact on our capture trends.

And the next question in the queue is from Doug Leggate with Wolfe Research. Your line is open.

Thanks. Good morning, everyone. Mariano, I wonder if I could come back to the issue, good morning, of capture please. You and I have had this conversation before about the danger of the perception that when you talk about commercial people think trading and you get a one times multiple. And what I really want to ask is obviously this capture trend has been getting better and it looks like it's more embedded in the go forward capture rate, which you've always talked about as being a kind of 100% target.

So wonder if I could put you on the spot a little bit and say well if this is repeatable what is the new capture rate? What is the new sustainable capture rate that you would expect out of your system or is it still too early to answer?

Yes, Doug, thanks. So a couple of things. One, and I hope you heard both from the earlier question around capture both Rick and myself speak about sustainable changes. As you mentioned, we've been talking about it for a period of time. We've continued to prioritize our commercial performance.

We've talked about some of the things that we've done, giving us greater visibility as we look at operations not only in Findlay, but in Houston, in London and in Singapore. We think those provide us sustainable change in visibility. It's an area where we continue to prioritize. I don't think you heard in Rick's response that he talked about, onetime results in trading. Now certainly, we look to optimize in the prompt as well.

But a lot of the work that we're doing is really quite different. And that is really sustainable looking at the way that we make our decisions, looking at the tools and the capabilities that we have to make decisions more rapidly. Those would be the things that I would point to. It's a challenge to call capture from quarter to quarter. And the reason for that obviously is some of those things are not within our control.

We'll use the phrase you've heard us say it, we're going to control the things we can. Obviously, as prices move up or down more rapidly, the impact on secondary. Rick talked about brand. Rick talked about across the value chains and the integrations there. These are the types of changes that he and the rest of the commercial team have been making.

So we prioritize commercial for a period of time and we will continue to do that and ensure that we can deliver results quarter after quarter. I'm going to pause Doug.

You know what I'm getting at right because when Shell and others talk about trading is kind of a one time is multiple business and I just want to make sure that we are interpreting it correctly. My follow-up, Marianne, you don't mind is on cash taxes. Some of the question we ask of the E and Ps, but it seems to us although you don't disclose the full detail of your cash flow statement, It seems to us that we're starting to see some benefit maybe of the One Big Beautiful Bill on some of the investments you made on the West Coast. I wonder if you could maybe offer some insight as to whether you are getting accelerated bonus depreciation not just in the West Coast, but your planned projects over the next year or so around the portfolio as well?

Hey, morning Doug, it's John. I'll just step in and take that one. I think you're spot on, right? We're capital intensive business and going back to full expensing on a permanent basis and rolling that back to January, there's a nice cash tax benefit that we're going to be expecting to see versus where those rates had lowered under the previous legislation. We don't mind the federal rates staying at 21 as well, but certainly a nice cash flow benefit from bonus depreciation.

No, don't know if I want to do that here today. I think you'll see that as we start to report in our quarterly results and we'll speak to it then.

And the next question in the queue is from Jason Gabelman with TD Cowen. Your line is open.

Start on the balance sheet and it seems like you leaned on it a bit more this quarter to support buybacks. If I think about prior guidance, I think it included $7,000,000,000 gross debt at the parent and $1,000,000,000 of cash. So $6,000,000,000 of net debt and I think you're closer to $7,500,000,000 now. So can you talk about if your targets for net debt have changed or if there are one offs in the quarter that impact in net debt that you'd expect to reverse?

Yes. Hey, Jason, it's John. I'll take that one. Yes, I think, look, I don't know that I'd look too much this quarter and I'll try and walk you through some pieces because our targets have not changed of being around $1,000,000,000 on the cash and the debt targets you mentioned from a gross debt standpoint. I think here, you heard us talk about the sale of this interest in our ethanol JV, which closed last week.

That cash is in the bank. We knew kind of where we were with that as we went into the end of the quarter. And again, from quarter end to quarter end, you're going to get some timing things that come through. I guess the clearest way I can kind of maybe put you at ease is we just closed here the month of July. We're pretty much right back to our $1,000,000,000 of cash on the balance sheet.

Got it. That's helpful. And then my other question is kind of strategic initiatives. And at the June investor event you held, you talked about a few things that I was hoping you could update us on. One of them being targeting moving more barrels from kind of Eastern pad to further East, one on interest in Petchem bolt ons and then the last on kind of organic Gulf Coast capacity growth.

And I'm not sure if any of those really were had more fully baked plans behind them or if those were things you were initially exploring, but was just hoping to get any additional color on those if you have any to share?

Sure, Jason. Maybe just a couple of comments and I'll pass it to Rick, to address a few of them that you had embedded in there that we shared, when we were together in June. Certainly portfolio optimization, is a strategic priority for us. As an example, we talked about the Andersons today. So, we continue to ensure that the portfolio that we have for today as well as the portfolio we see necessary to carry out our strategic objectives both at MPC and MPLX are where they need to be.

Ensuring the competitive nature of all of those assets and optimizing our profitability across all three regions that we operate is one of the key tenets of our strategic opportunities. So, just wanted to be sure, we'll continue to look for those, and ensure that the portfolio is appropriate for now and for the long term. I'll pass it to Rick and he can address some of the specifics that you mentioned.

Yes, Jason. Maybe the one item I can give you a brief update on from the last time we spoke is clearing Mid Con barrels. So that's a focus of ours every day all day long, but especially in the wintertime when demand shrinks in the Midwest. So we continue to push, look for opportunities to push East. There is a third party pipeline that is supposed to come online, I would call it early to mid 4Q, which we would certainly take advantage of and push barrels east on it as well as we push barrels towards the Gulf Coast into the Nashville market and other markets.

So we've been doing that for years, but there's a more concentrated effort to push into those markets today more than ever. And then the East Coast will truly be an incremental barrel that we look to clear here by the end of 4Q.

And the next question in the queue is from Theresa Chen with Barclays. Your line is now open.

Thank you for taking my questions. Maybe turning back on the macro. As we see the evolution of capacity curtailments and limited additions, How do you view the net capacity outlook for the global refining kit between the near to medium term and its relative impact on your assets?

Hey, Theresa. Thank you. Look, overall, as you well know, we've been very constructive in the long term on our refining space. As you well know, we've seen capacity reductions coming offline in the beginning of this year. When you add in total that which has been announced and that which needs to still come offline, I think we're approaching over 1,000,000 barrels a day granted some of that will happen into next year.

Marathon Petroleum (MPC) Q2 2025 Earnings Call Transcript

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