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. 

Fastest-growing Companies

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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 2026 earnings call. My name is Julie, and I will 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. Press star one on your touch-tone phone to enter the queue. Please note that this conference is being recorded. I will now turn the call over to Brian Worthington. Brian, you may begin.

Welcome to Marathon Petroleum Corporation's second quarter 2026 earnings conference call. The slides that accompany this call can be found on our website at marathonpetroleum.com under the Investors tab. Joining me today on the call are Maryann Mannen, CEO, Maria Khoury, 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 Maryann.

Thank you, Brian. Good morning. In the second quarter, we delivered $8.5 billion of adjusted EBITDA. Safety and reliability are fundamental. This performance reflects more than market strength. It demonstrates our planning, commercial, and operational capabilities, which enable safe and reliable operations to meet resilient consumer demand. Our results reflect the differentiated capabilities of our value chains and the execution of our optimization strategies.

Year to date, we have operated with our lowest level of unplanned downtime this decade. On the U.S. Gulf Coast, we ran at 100% utilization in the second quarter. Across the system, we achieved R&M margin capture of over $1 billion, the strongest on an absolute basis. Through the first half of 2026, we achieved capture of 108%. We are sourcing economically advantaged barrels, optimizing our feedstock to improve clean product yields, increasing margins in all markets we participate in.

Our ability to run advantage crude and optimize yields to meet consumer demand remains a core strength. Extensive pipelines and logistics provide abundant access to crude, limiting our exposure to Brent-priced crudes, which were more significantly impacted by the Persian Gulf conflict. In the second quarter, we also completed two high-return, yield-enhancing refining investments, further positioning us to deliver incremental value.

The Robinson product flexibility investment enables approximately 10,000 bpd of incremental jet fuel production, supporting growing regional demand, and the El Paso yield improvement investment enhances the refinery's ability to produce specialty gasoline for key markets. These disciplined investments yield high returns aligned with our targeted return of 25% or above, extending the competitive position of these refining assets. The refining macro environment remains constructive.

Globally, there is over 9 million bpd of planned and unplanned refined capacity downtime, approximately 4 million bpd above historical norms, reflecting ongoing Persian Gulf disruptions and accelerated Ukrainian attacks on Russian infrastructure. Against this backdrop, U.S. gasoline inventory remains well below the five-year range, while distillate inventory is at the bottom of its five-year range, underscoring continued market tightness.

Within our system, consumer demand remains strong across gasoline, diesel, and jet, supported by both domestic and international markets. Looking ahead, we expect to remain in an enhanced mid-cycle environment through the end of the year and into 2027. MPC's advantage is sustainable, a diversified and integrated U.S. refining system across three regions built for optimization with access to advantaged crude supply, low-cost natural gas, and the ability to supply both domestic and global consumer demand.

In the second quarter, our midstream business continued to advance its natural gas and NGL growth strategy. In April, MPLX placed the Secretariat I processing plant into service. In July, the Blackcomb natural gas pipeline began commissioning activities. The joint venture partners continue to progress the pipeline as planned, with Blackcomb expected to achieve full commercial service in the fourth quarter. This week, MPLX is beginning operations at the Harmon Creek III processing plant in line with its strategy to add processing capacity on a just-in-time basis. This increases MPLX's total processing capacity to 8.1 billion cu ft per day and de-ethanization capacity to over 800,000 bpd day.

In the Permian, sour gas treating volumes exceeded 150 million cu ft per day for the second consecutive quarter as MPLX continues to optimize operations at our Titan treating facility, and sour gas treating capacity is expected to expand to over 400 million cu ft per day by the end of the year. Natural gas and NGL fundamentals remain robust, creating compelling opportunities to support growing domestic and global demand for U.S. energy.

This morning, MPLX announced it is increasing its 2026 capital growth spending outlook by $500 million to $2.9 billion. The increase primarily reflects the accelerated execution of the ongoing Gulf Coast fractionation project, pulling forward capital MPLX previously expected to deploy in early 2027. With multiple investments transitioning from construction to operations this year, MPLX is on track to deliver mid-single-digit adjusted EBITDA growth in 2026, weighted towards the second half of the year.

This also positions MPLX for strong adjusted EBITDA growth in 2027. These investments are expected to support 12.5% annual distribution growth in 2026 and 2027, positioning MPC to lead in capital return. During the second quarter, we returned $2.8 billion of capital inclusive of $2.5 billion of share repurchases, reflecting strong cash generation and disciplined execution of our capital allocation priorities. We are maintaining balance sheet discipline with a targeted cash framework that allows flexibility while supporting return of capital. We will execute safely, invest strategically, and generate significant cash all at the same time. With that, I'll turn it over to Maria to walk you through our financial performance.

Thank you, Maryann, and good morning. Our second quarter results demonstrate a strong financial performance across the business. We delivered earnings per share of $17.73, an adjusted EBITDA of $8.5 billion. Refining and marketing adjusted EBITDA per barrel was $24.84. Cash flow from operations, excluding working capital changes, was $6.6 billion. And we returned $2.8 billion to shareholders. These results reflect both market strength and disciplined execution.

The next slide shows the year-over-year change in adjusted EBITDA from second quarter 2025 to second quarter 2026. Adjusted EBITDA increased approximately $5.2 billion year-over-year, primarily driven by our refining and marketing segment. Overall, our results show how our operational execution translated into financial performance. Turning to our segment results, we provide an overview of our refining and marketing segment, where R&M second quarter adjusted EBITDA was approximately $6.7 billion. Execution matters, and we delivered.

All regions contributed to the significant improvement year-over-year, primarily driven by a stronger margin environment. On total throughput of nearly 3 million bpd, reflecting a strong availability following our first quarter plant turnaround activity, our refineries ran at 94% utilization. In the Gulf Coast, we ran 100% utilization, delivering $27 of adjusted EBITDA per barrel, where crude optimization, higher jet yields, and strong domestic and export demand were differentiators. In the MidCon, we ran at 87% utilization as we completed plant turnaround and maintenance activity, delivering nearly $21 of adjusted EBITDA per barrel.

In the West Coast, we ran at 93% utilization and delivered over $27 of adjusted EBITDA per barrel, supported by a strong regional value chain optimization. We prioritize operational reliability, investments in high-return projects, therefore value-enhancing opportunities and continuous improvement across the portfolio.

These are objectives that we can and do control, positioning MPC to perform through cycles. Turning to slide seven, second quarter capture was 112%. Our results highlight the advantage of our integrated system, where planning, commercial, and operational execution are aligned to capture value across the barrel. Capture this quarter was supported by crude optimization, included advantage SPR barrels received from the DOE, and a strong clean product margins across gasoline, diesel, and jet.

In the Gulf Coast, margin capture was positively impacted by the advantage crude we ran in the quarter, increased jet fuel margins, and the physical offset related to the derivative losses in the first quarter. These tailwinds were partially offset by secondary products, which remain a market-driven headwind as prices of secondary products lag higher clean product prices.

This performance underscores the strength of our integrated value chain and our commitment to deliver peer-leading profitability per barrel. Slide eight shows our midstream segment performance for the quarter. Segment adjusted EBITDA increased $137 million compared to the second quarter of 2025. The increase was primarily driven by higher rates and throughput, including growth from equity affiliates and acquisitions, partially offset by the divestiture of non-core gathering and processing assets.

As MPLX is executing plans to expand its value chains and transition projects from construction to cash flow generation, it is also maximizing the utilization of existing assets and optimizing operations. MPLX remains on track to deliver sequential growth throughout the year, culminating in mid-single-digit adjusted EBITDA growth in 2026. Moving to slide nine, we cover our renewable diesel performance.

Following the completion of the Martinez turnaround in the first quarter, utilization increased to 95%, reflecting a strong operational availability. Results were supported by a more constructive margin environment, with uplift from feedstock optimization, as well as improved regulatory credit values. Segment adjusted EBITDA increased approximately $277 million year-over-year. As we look ahead, we remain focused on optimizing operations, leveraging feedstock and logistics flexibility, and responding to market conditions. Based on current fundamentals, we expect a constructive environment through the remainder of the year.

Slide 10 presents the elements of change in our consolidated cash position for the second quarter. Operating cash flow, excluding changes in working capital, was approximately $6.6 billion. Working capital was at $3.8 billion source of cash for the quarter, driven by higher payables, the timing benefit of crude exchanges, and inventory draws.

During the quarter, we returned over $2.8 billion of capital to shareholders, executing on our disciplined capital allocation framework. At the end of the quarter, MPC had roughly $7.8 billion of consolidated cash, including MPC's cash of $6.7 billion and MPLX's cash of over $1 billion. Turning to guidance on slide 11, we provide our third quarter outlook for the refining and marketing segment. We are projecting crude throughput volumes of 2.8 million bpd, representing utilization of 94%. Turnaround expenses is projected to be approximately $290 million. With activity mainly focused on conversion units in the Gulf Coast and MidCon regions, limiting our ability to upgrade certain products and creating a headwind to capture. With that, let me pass it back to Maryann.

Thank you, Maria. Our priorities remain consistent: operate safely and reliably, execute commercially, invest with discipline, and lead in the return of capital to shareholders. We remain focused on execution and are strengthened by our strategic relationship with MPLX. Our competitive advantage is sustainable. It is built on integrated value chains, scale, flexibility, and disciplined execution. Our portfolio and optimization capabilities position us to deliver peer-leading profitability per barrel in each region where we operate.

We are disciplined in how we deploy capital. We invest where we see clear line of sight to returns, strong demand pool, and sustainable competitive advantages. At the same time, we maintain our commitment to return capital to shareholders, supported by strong cash generation. MPLX remains the key differentiator for MPC, strengthening MPC through cycle cash flow profile, and enhancing our ability to deliver industry-leading capital returns.

We remain constructive on the outlook for both U.S. refining and midstream. While volatility will persist, our priorities remain consistent: capture upside, protect the downside, and lead in the return of capital to our shareholders. With that, I'll return the call back to Brian.

Thank you, Mary. Excuse me. Thank you, Maryann. As we open the call for questions, as a courtesy to all 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 to questions.

Thank you. We will now begin the question-and-answer session. If you have a question, please press star, then one on your touchtone phone. If you wish to be removed from the queue, please press star, then two. If you are using a speakerphone, you may need to pick up the handset first before pressing the numbers. Once again, if you have a question, please press star, then one on your touchtone phone. The first question comes from Neil Mehta with Goldman Sachs. Your line is open.

Yeah. Good morning, Maryann, thanks for doing this. The first question is just on the refining side. The capture was very strong at 112%. You called out a couple things, including crude optimization and the strength of the product margin. Maybe you could just help us understand what the formula for success around the capture rate was as we think about modeling this on the go forward, too.

Yeah. Good morning, Neil. Thank you. You know this. Our overall objective with respect to commercial and planning, and frankly, our operational execution is to optimize our results, add value in all markets. There's always variables that we're not able to control. I think when you look at our results, there's a few things that you should always expect to see that are largely consistent. One- Would be our ability to capture, take advantage of the opportunities in the prompt.

Things like dislocations, supply constraints, regional asset disruptions, crude sourcing, as you saw in this quarter, and they're just a few, and we should be able to optimize around those. The other element there is really trying to build sustainability into these results. You've heard me say before, we're using our planning, our commercial, and our operational competency to do that.

One example is our ability to narrow our decision windows, which means we're now able to make better decisions, value-driven decisions on the opportunities that are presented, and in particular, in volatile markets. We're using an abundance of data, digital competencies to give our commercial leaders, our commercial planners, the analytics to make market-informed decisions, value decisions, value-driven decisions, and to make them faster. Our goal, as you know, is really to achieve peer-leading profitability in every region where we operate.

This quarter, in particular, the 112 was driven by strict inventory discipline in a backward-dated market. We had benefits from crude sourcing and optimization, as you've heard us talk about. We obviously had favorable impact from the derivatives that came through with the physical receipt in the second quarter, consistent with what we shared in the first quarter.

Incremental jet production in a very strong margin environment, then reliability in a strong crack environment. These are a few of the things that are both market-driven and our own commercial and planning capabilities that drove that. I'm going to ask the team to give you a little more detailed insight to help with the results in this quarter. I'm going to pass it to Rick.

Yeah. Hi, Neil. I'm going to start with where Maryann ended, and that's on reliability. Everything starts with Mike's team delivering safe, reliable operations at our refineries. That truly is the foundation of our ability to optimize our fully integrated system. As Maryann mentioned in our opening remarks, in a volatile market, our crude optimization team excelled across three regions. Let me give you just a few examples that demonstrate our commercial sophistication and our maturity in terms of where we're at. I'll start with the purchase of SPR exchange barrels, Neil. We bought directly from the SPR. We avoided the middleman, and we're grateful where the DOE releases helped meet market demands and ultimately consumer demands. We ran more than double Venezuelan crudes in 2 Q versus what we ran in 1 Q.

We ran record amounts of Canadian heavy in the Gulf Coast in the second quarter, thus reducing our exposure to Brent-based crudes. Out on the West Coast, we ran twice as many California-based crudes than normal with advantaged economics due to the recent pure closures that we've seen in that market, making these barrels available. Neil, we had many more yield enhancement shifts, but maybe I'll just pause there and pass it over to Julian and have him give you a little bit of color on a few of our yield enhancement shifts. Julian.

Thanks, Rick. Morning, Neil. In terms of the formula for success that you mentioned, I think that at its core, it's now our underlying operating model and the sustainable capabilities we've embedded that drives capture through enhanced execution. Planning are responsible for identifying value-enhancing strategies under all market conditions.

To do that, we'll leverage crude sourcing, logistics optionality, but really the depth of our integrated value chains. In combination, it's my planning, Rick's commercial, and Mike's operational teams who collaborate seamlessly now to optimize across these integrated value chains and run our strategies through the assets safely and reliably. In Q2, I think Jet is a really good example of this. We leveraged the strong market signals that Rick's team identified, and then we worked hand-in-hand with Mike's team to reoptimize quickly on refinery yields.

We were able to take full advantage of the Jet investments that came online at Garyville and Robinson a quarter, almost perfect timing. That resulted in a 3% increase in Jet yield year-over-year. In fact, since 2024, we've now increased our Jet yield capability from 8% to 12%. I think the key to our success, fundamentally, is that we've really enhanced our ability to rapidly adapt to changing market conditions, and we can flex between Jet and diesel production as appropriate to the conditions.

That's great, guys. Very thorough. Very helpful. Just a follow-up is just on cash. You guys are sitting on a lot of it, Maryann, just your perspective on some of the moving pieces as you think about what's the optimal level of cash relative to the $1 billion you talked about in the past. Return of capital, how aggressive you want to be. Working capital is such a big nut this quarter. How do we think about the unwind of that item?

Yeah, certainly, Neil. Just on cash flow. No change to our priorities on capital allocation. As you saw in the quarter, we did build a bit of cash on the strength, our capital allocation priorities are unchanged. The strengths of MPLX distribution should allow us to continue to lead in the return of capital. No change when we think about overall the cash balance that we need, roughly $1 billion. You probably heard Maria speak on the SPR as well. We do have an obligation to repay that, and we'll look at those balances as well. We really don't have a change at all in the way that we think about our cash balances. On working capital, I'll pass it to Maria and have her give you some of the sensitivities, but obviously a strong quarter this quarter.

We talked about inventory draw, et cetera. Let me give it to Maria, and she'll give you a little more color on the specifics on working capital, Neil, and hopefully that answers your question.

Hi, Neil. Yes. On working capital, we had a large benefit this quarter, as you saw, of $3.8 billion. We're cognizant of the timing of our working capital needs and the elements. If you think about it, we are already starting to rebuild inventory, right? We have a liability and a repayment obligation for these crude exchanges, and we will be watching as well our payables. It's good to keep in mind the sensitivity that we have communicated. For every $10 move in crude, that is about a $550 million change in working capital one way or another. Trust that helps.

Thank you. The next question comes from Manav Gupta with UBS. Your line is open.

Good morning, Maryann and team. I was hoping to talk a little bit on refining macro. Your opening comments were very interesting, where you said 9 million barrels is offline, 4 million more than normal, and it's been offline for some time here. I'm just trying to understand what this has done to global product inventory, how long could it take to replenish it. More importantly, we have actually seen serious damage to Russian refining capacity. We are seeing damages in the Middle East. Is there a possibility here that for the next 10 years or so, even the mid-cycle is higher given the actual unplanned downtime which will go on for some time and the global product inventory depletion, if you could talk about that?

Certainly, good morning again, Manav. We've been very constructive, as you know, on the long term, even before the conflict. Certainly the opportunities and the challenges that the Persian Gulf conflict have created on top of the Russian-Ukraine. We remain constructive well into 2027. As you mentioned, the global supply, it's extremely dynamic. As we've seen, it is difficult for us to have a level of prediction as to when it will resolve.

You've got, I think you mentioned this already, with respect to Persian Gulf conflict, the Middle East refineries have really been slow to come back online. Again, any further disruption in the region could cause further supply constraints to evolve. Russian-Ukraine conflict, certainly the acceleration of the Ukrainian attacks on Russian refineries have led to more than 2.8 million bbl offline downtime there as well.

That's a third of Russia's refinery capacity offline, and the country's fully banned diesel export. We certainly see that it will take quite some time for the infrastructure to be repaired. As I mentioned in my remarks as well, you got global product balances remain extremely tight and some of the lowest levels of inventories in gasoline and diesel that we've seen. I'm going to pass it to Rick and let him give you a little more color as he sees some of the market impacts here.

Yeah. Hi, Manav. I think where I'll start is on the demand side, just to give you a feel for what we're seeing in all three of the regions we operate. Within our system, we continue to see consumer demand being resilient on gas, diesel, and jet, and this is both domestically and internationally. We are seeing very strong signals in both markets. As an example, U.S. jet was at an all-time high in June. The demand for it was, and we hit distillate records on exports in the quarter in Q2 and continue to see very positive economic signals there.

If I move on, though, if you look at, as you and Maryann have touched on, the amount of refining capacity offline, I think what I want to leave you with, and I hope doesn't get overlooked, is the medium sour availability, which is reduced by the Middle East conflict and more refineries running light crudes, that ultimately is yielding more gasoline globally. The diesel spread is partially high as a result of that in combination with, as Maryann mentioned, low global inventories, but especially low global inventories in the U.S. and in Europe. We're seeing most everyone taking the appropriate signals, and we're all in max diesel mode, and we've watched this play out before.

When you're in max mode of any one product for a significant period of time, it puts pressure on other products, and we're starting to see that pull through on the gas crack as I think you're seeing in the indicators. Finally, I'll leave you with this. As refineries are running hard and as we enter hurricane season, a little bit of an elevated turnaround season in 3Q, which is in line with other 3Qs, we do expect more volatility here in the near term, Manav. Any refining disruption as you've seen over the last couple of months, it really doesn't matter what region you're in, Gulf Coast, West Coast, MidCon, it is proving to cause significant outsized market moves, and we just see a lot of that continuing to happen here as we look forward through the end of the year and beyond.

Thank you. My quick follow-up here is on the West Coast, where things appear particularly tight. I think there was a theory at one point that California can import its way out of the problem. Clearly looks like that's not going to work. A, your leverage over there, can you move some product from your refinery in Washington over to California to capitalize on it? Do you think market will get even tighter in 3Q, given one of the bigger peers of yours has already announced downtime at both the refineries?

Yeah, Manav. Really insightful question. What I would start by saying is, the Jones Act waiver is allowing us and the rest of the industry to make movements from the Gulf Coast into the West Coast, but those movements aren't enough to overcome the lack of Asian imports that are not coming in as they usually would due to the Middle East conflict. To your point, I would tell you we are extremely well-positioned with LAR and our Pacific Northwest assets to meet consumer demands, especially as you rightfully noted, several of our competitors there will have turnarounds here in 3Q.

Thank you. The next question comes from Doug Leggate with Wolfe Research. Your line is open.

Thank you. Good morning, everybody. Maryann, it's great to hear you on the call. I wonder if I could hit one very specific question and one follow-up. My specific question is on capture rates. You clearly had extraordinary capture rates across all three refineries. You normally show pretty fantastic capture rates in the fourth quarter when the RVP rules are different, butane blending and so on. My question is, the RVP waiver, as I understand it, was one of the policy steps taken by the U.S. government. Are you benefiting from that butane blending uplift in your capture in the second quarter, and should we therefore expect that also in the third quarter? That's my first question. I've got a follow-up on the cash balance.

Yeah, certainly. Good morning, Doug. That benefit, certainly it would be a part of 2Q, but it is just a really small element of all of the contributors that we were trying to articulate in the second quarter. Certainly a benefit, but not one that is significant in the second quarter. We tried to mention the things in the second quarter that led to that. I'd say two things. One, we had clearly market tailwinds, as we talked about, and then good commercial and planning execution, really trying to optimize in the prompt and bring those sustainable changes that we've been referring to deliver the most profitability per barrel in each of the regions where we operate. Hope that helps.

Yeah, it does. Thank you. Maryann, my follow-up is, clearly, I hear my peers talking about the extraordinary market we're in right now, and those of us who have been doing this for 30 years are looking at it going, "Well, how long is this going to last?" I see you not deploying 100% of your surplus cash to buybacks. We see obviously the big cash build on your balance sheet this quarter. I'm just curious, do you have any hesitancy about allocating your full cash distributions in the current environment? In other words, do you have any concerns on the durability of the current margin environment? Thanks.

Yeah, certainly. Thanks for the question, Doug. No, our capital allocation priorities are consistent. No change there. We believe the return of capital via share buyback to our shareholders continues to be the right vehicle. When we talk about cash balances, timing matters. Obviously, there's been a lot of volatility in the quarter, but that volatility doesn't change the way we think about returning capital. The only thing that's slightly different, and Maria mentioned it as well, with the SPR barrels, we have an obligation to repay those barrels in the future.

That's embedded in the working capital that she spoke about. Again, our overall view on the cash that we need to run the company, notwithstanding the SPR return, is consistent and therefore, the return of capital remains a priority. I hope that helps, Doug.

Thank you. The next question comes from Sam Margolin with Wells Fargo. Your line is open.

Good morning. Thanks for the question. Historically, Marathon and the whole refining industry has been pretty successful at identifying the best possible growth investments. When there's a surplus of light crude, we saw the industry build out some distillation capacity. When there's a call on product, there's been very timely conversion projects that have been executed, and MPC is certainly a part of that. Right now, I think the salient question is how you see growth potential on the refining side, in the context of not only product shortages that are accumulating structurally, but also crude availability dynamics that are changing with Venezuela and Canada as well in growth mode. Thanks.

Thanks, Sam. I'm going to pass the question first to Julian to talk about crude sourcing, et cetera, and then I'll come back and just talk in general the way that we are thinking about deployment of capital with respect to refining in general. Julian first, please.

Thanks, Maryann. Hi, Sam. In relation to the crudes that we choose to put in front of our refineries, I'll start and reinforce that we'll always maximize the most cost-effective feedstock to run through our system at all times. We've already got the ability to run over 100 different types of crudes across our system, with Garyville being the most flexible refinery on the Gulf Coast. We've got two premier Gulf Coast assets, and we can run almost any crude that's put before us, all based on economics. We have very high crude optionality, but we don't really see a need to further invest in the ability to run more different types of crudes. We have that choice across our enterprise, we're all ready to run on in terms of crude slate diversification.

Thanks, Julian. Sam, maybe to your question on how we are thinking about deploying capital in the refining space. Hopefully, you've seen even over the last few years, we're not relying on any particular specific market environment, a mid-cycle enhanced crack, et cetera. We're really looking to deploy capital where we can improve reliability, optimize around the yield. The example that Julian and others have talked about here on our decision to flex incremental jet yields. We talked about that last quarter at Garyville, completing the Robinson project.

We're trying to be sure that we can increase value, again, be the most competitive in every region where we operate by putting capital to work aligned with where we see longer-term demand headed, the strengths of our U.S. Gulf Coast, particularly as we look at export opportunities and align with the way that we see the portfolio for today and the portfolio for the future. Maintaining that strict discipline around the returns that we expect when we put capital to work. I hope that helps, Sam.

Yeah, it does. It's along the same reinvestment theme, but renewable diesel, probably worth asking. Commodity margins are back to where they were when you FID'd Martinez. It's obviously very policy-driven. Your thoughts on kind of the call on incremental renewable diesel capacity as well would be helpful. Thank you.

Yeah, you're welcome, Sam. No different. The capital that we put to work in RD is really for efficiency only, there's no change in the way we think about the allocation of capital today to the renewable segment. We want that asset to run well, reliably, as you've seen in the second quarter, feedstock sourcing there, safe and reliable operations, obviously the benefit of the regulatory environment has helped. We have no change in the way that we're thinking about capital in that particular segment. Efficiency only, as we said in the beginning of the year.

Thank you. The next question comes from Joe Laetsch with Morgan Stanley. Your line is open.

Hey, good morning, team. Thanks for taking my questions. I wanted to follow up on Sam's renewable fuels question. I think it was the strongest quarter from an earnings standpoint since the segment was broken out. I know the industry overall has seen tailwinds from higher credit prices. Could you just maybe unpack some of the drivers for Marathon specifically and speak to the repeatability of the strong results?

Hi, Joe. This is Rick. What I'll start with is we continue to have a constructive view. It was key for us, as is in our entire refining portfolio, that we ran, Maryann mentioned this in our opening remarks, at 95% utilization this quarter. That is an absolute must. We did quite well there. Renewable diesel margin continues to look favorable given the fundamental RIN balance. As you probably well know, the market is short. We believe it will continue to stay short. When I speak of short, I'm specifically referring to the RIN balances. We've seen volatility in the RVO market here in the last week to 10 days. We believe the market is short and will continue to be short, and the volatility is probably short-lived.

We believe we remain well-positioned. We're going to continue to optimize around our assets at Martinez and Dickinson and really lean into our pretreatment at Martinez as well, which we believe is a significant benefit. Hope that helps, Joe.

Thanks, Rick. That's helpful. I wanted to follow up on some of the comments within refining. One of the areas about performance relative to our expectations was on the Gulf Coast. I know utilization was strong, like you called out in the opening remarks, could you just provide some more detail on what you saw during 2Q? As part of that, could you also talk about the economic signals and arbs you're seeing in the export market? Thank you.

Maybe I'll start, turn it over to Maryann Mannen. I'll start on the export side. I mentioned record diesel export numbers that we exported, that would be a combo of both from Garyville and GBR. We continue to see very strong arbs and demand, specifically in Latin America and in Europe on the Gulf Coast, as well as we're leaning into the jet market out there as well. While the diesel-to-jet differentials have come in, they're still attractive, just not as attractive as they were in 2Q. I would say those are some pretty good signals, I will touch on gas just for a moment, because we continue to see gas demand throughout the Southeast to be very healthy. Margins are decent.

When we look at exports, we're seeing a little bit better than average export demand and margins as well on gas. Some very positive signals on the Gulf Coast that we're leaning into, Joe.

Joe, Maryann Mannen, let me just give you maybe a little more color on what drove the Gulf Coast. First, we continue to talk about our lost capacity due to internal problems being, frankly, at the lowest level that we've seen in a decade. Reliability and execution really mattered, that, I would say, is one of the drivers. Second, you heard us talk about Garyville obviously having incremental jet capacity. You saw those jet-to-diesel margins. Clearly, being able to deliver those incremental volumes in a very healthy market backdrop helped the results there on the Gulf Coast as well.

Rick and Maria both talked a bit about the benefit of SPR and the crude sourcing, right? It's not just SPR, but just in general, Julian mentioned the flexibility that we have with being able to run multiple crudes. Incremental Venezuelan, WCS.

Crude sourcing, clearly a strong variable into the Gulf Coast as well. They would be a few of the things that I would tell you drove our Gulf Coast performance. Hope that helps.

Thank you. The next question comes from Theresa Chen with Barclays. Your line is open.

Morning. Thank you for taking my questions. Would you provide some additional color on your views on quality differentials from here and key dynamics to watch for the balance of 2026 and beyond? On the Gulf Coast consumption of heavy barrels in particular, would you elaborate on the economics of running WCS versus Venezuelan crude, and how does that compare across your Gulf Coast refining system currently?

Yeah. Hi, Theresa. This is Rick. Thank you for the question. I'll start with how heavy compares to Venezuelan in our system. I would tell you eight out of 10x, heavy wins when we look at the economic advantage of a heavy Canadian barrel versus Venezuela. That's not to say we don't like the Ven barrel. We do. We bought twice as much in 2Q as we did 1Q. I think a key differentiator is when you think of Marathon, we have the largest appetite for Canadian barrels of anyone in the U.S. On the Gulf Coast specifically, we have a large appetite. Economically, to address your question head on, that usually wins the day for us, both at Garyville and at GBR.

From a Venezuela perspective, when you look at the econ, we continue to see more Ven barrels coming to the U.S., they'll have to price those barrels accordingly. I believe they'll continue to be more economical for us, that inadvertently will put direct pressure on other grades such as WCS. When we look at WCS, today, let's call it WTI,  $-14 a barrel. When we look forward, if you look at Q4, Theresa, on the forward curve, it's north of $16 a barrel. It's going to move positive in our direction by about $2 a barrel between now and the fourth quarter, which is certainly a nice tailwind. I mentioned earlier we also have the benefit of domestic California crudes at LAR, which we've doubled up on there as well at very advantageous numbers. That along with the SPR barrels.

We were a large buyer of SPR barrels, if you look year-to-date, they've released about 110, 111 million bbl of SPR, at least is accounted for. We believe there's potentially another 38 million bbl that they could release yet this year. We believe that'll apply some pressure on differentials, which will be a definite tailwind for us from a feedstock perspective. Lastly, I would say when the conflict gets solved and you get more Middle East barrels coming into the Gulf Coast, specifically into North America, that's going to continue to put pressure on every competing grade in the Gulf Coast. When that day happens, it'll be another tailwind. I hope that helps, Theresa.

That's incredibly helpful. Thank you for that answer, Rick.

Looking at the Gulf Coast again, with Blackcomb ramping higher and multiple BCF per day of residue egress from the Permian headed to the Texas Gulf Coast over the near to medium term, how do you think about how this incremental gas translates as far as better profitability for your refining assets in the Gulf Coast, Galveston in particular, both in terms of getting cheaper gas to augment capture and COGS as well as lower OPEX? How should we think about that going forward?

Yeah, Theresa, I'll take a stab at that. We have several commitments that we're making on many, if not all, of the lines you just mentioned. I will tell you that you will continue to see a bottleneck as natural gas gets closer to the U.S. Gulf Coast refining complex, and we are solving for that. We are solving for that from an optionality and flexibility perspective with the sole intent of reducing our natural gas cost into our refining system on the Gulf Coast. The bottleneck is moving from what we would say, ultimately it'll continue to move downstream from WAHA closer to the water, and we will benefit from that bottleneck moving closer to us as we will ultimately be able to provide cheaper feedstock, cheaper natural gas costs into our Gulf Coast refining system.

You're welcome, Theresa. I hope that answers the question.

Thank you. The next question comes from Conor Fitzpatrick with Bank of America. Your line is open.

Marathon Petroleum (MPC) Q2 2026 Earnings Call Transcript

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