Marathon Petroleum Corporation
Marathon Petroleum Corporation (MPC) is a large US downstream energy company focused on refining, marketing and midstream logistics, with a market capitalisation of about $55.60 billion. Investors should know MPC’s earnings are driven largely by refining margins, throughput volumes and the price of crude oil, while its midstream businesses provide fee-based cash flows and logistical scale. The company operates one of the country’s largest refining systems and sells transportation fuels under well-known retail brands. Key investment considerations include sensitivity to cyclical oil markets, changes in fuel demand, regulatory and environmental pressures, and capital intensity of the business. MPC has historically returned cash via dividends and buybacks, but distributions depend on cash flow and board decisions. This summary is educational only, not personal advice — values can rise and fall and past performance is no guarantee of future results. Investors should assess suitability for their objectives and consider further research or professional advice.
Why It's Moving
Marathon Petroleum powers through Q3 with robust cash flow and strategic midstream growth despite refining headwinds.
Marathon Petroleum reported Q3 2025 net income of $1.4 billion, driven by strong cash generation in Refining & Marketing and key asset sales, even as margins softened in key regions. CEO Maryann Mannen highlighted MPLX distributions covering dividends and capex, positioning MPC for peer-leading returns amid tight supply-demand dynamics into 2026.
- Refining & Marketing adjusted EBITDA hit $1.76 billion, bolstered by $427 million ethanol JV sale and $484 million BANGL acquisition gain, offsetting Gulf Coast and West Coast margin pressures.
- MPLX to deliver $2.8 billion annualized distributions to MPC, funding dividends, capex, and extra capital allocation—a standout edge in energy.
- Midstream expansions like Traverse Pipeline and Gulf Coast Fractionators ramp up Permian-to-Gulf value chain, tapping rising producer demand for long-term growth.
Marathon Petroleum powers through Q3 with robust cash flow and strategic midstream growth despite refining headwinds.
Marathon Petroleum reported Q3 2025 net income of $1.4 billion, driven by strong cash generation in Refining & Marketing and key asset sales, even as margins softened in key regions. CEO Maryann Mannen highlighted MPLX distributions covering dividends and capex, positioning MPC for peer-leading returns amid tight supply-demand dynamics into 2026.
- Refining & Marketing adjusted EBITDA hit $1.76 billion, bolstered by $427 million ethanol JV sale and $484 million BANGL acquisition gain, offsetting Gulf Coast and West Coast margin pressures.
- MPLX to deliver $2.8 billion annualized distributions to MPC, funding dividends, capex, and extra capital allocation—a standout edge in energy.
- Midstream expansions like Traverse Pipeline and Gulf Coast Fractionators ramp up Permian-to-Gulf value chain, tapping rising producer demand for long-term growth.
Stock Performance Snapshot
Analyst Rating
Analysts recommend buying Marathon Petroleum's stock with a target price of $203.19, indicating strong potential for growth.
Financial Health
Marathon Petroleum is performing well with strong revenue and cash flow, but gross margins are modest.
Dividend
Marathon Petroleum's dividend yield of 1.96% provides some income opportunity for investors. If you invested $1000 you would be paid $36.40 a year in dividends (based on the last 12 months).
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Explore BasketWhy You’ll Want to Watch This Stock
Refining margins matter
Profits hinge on the spread between product prices and crude costs, so margins can swing with global supply and demand; performance can vary.
Midstream & scale
Logistics, storage and fee-based midstream assets help diversify cash flow, but operational incidents or regulation can affect returns.
Income and cash flow
MPC has returned cash via dividends and buybacks when cash flow permits, yet distributions are not guaranteed and depend on business conditions.
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