Marathon Petroleum Corporation

Marathon Petroleum reported first-quarter adjusted EPS of $1.65 and adjusted EBITDA of $2.8 billion. Refining & Marketing adjusted EBITDA was approximately $1.4 billion, with segment adjusted EBITDA per barrel of $5.37; refinery utilization was 89% and capture was 99%, with nearly 3 million barrels per day of throughput. Adjusted EBITDA rose by nearly $800 million year over year, primarily driven by Refining & Marketing. Cash flow from operations, excluding working capital changes, was $1.7 billion; working capital was a $573 million use of cash, and the company ended the quarter with roughly $2.2 billion of consolidated cash. Refining turnaround costs were $530 million in the quarter, and the full-year outlook remains unchanged at $1.35 billion. For the second quarter, refining utilization is guided to about 94%, and renewable diesel utilization is expected in the low 90% range. Management also reiterated that MPLX expects 12.5% distribution growth for the next 2 years, underpinned by mid-single-digit adjusted EBITDA growth.

Maryann Mannen framed the quarter as proof that Marathon’s integrated system and operational discipline are working, highlighting record first-quarter safety, low downtime, and strong capture despite heavy maintenance. She emphasized that the company is leaning into advantaged crude sourcing, exports, and targeted capital projects like Garyville, El Paso, and Robinson to improve jet optionality and regional competitiveness. Her tone was confident and constructive on both the refining macro and MPLX’s role in supporting long-term cash generation and capital returns.

Maria Khoury focused on the quarter’s financial execution and balance sheet strength, citing $1.65 of adjusted EPS, $2.8 billion of adjusted EBITDA, $1.7 billion of operating cash flow excluding working capital, and a 62% payout ratio. She noted $530 million of refining turnaround costs in the quarter versus a full-year outlook of $1.35 billion, and said working capital consumed $573 million, driven mainly by inventory build and lower throughput. She also quantified derivative impacts at about $500 million of unrealized losses, including about $63 million in midstream and about $340 million of cash use from margin calls, while ending the quarter with roughly $2.2 billion of consolidated cash.

Analysts pressed management on the sustainability of high refining capture, the impact of elevated cracks on capture rates, and whether the current market represents a windfall that should change buyback pacing. Management said first-quarter capture would have exceeded 100% absent secondary-product and derivative timing effects, and expects some of that unwind in the second quarter; it also said the company remains disciplined and does not change capital allocation based on short-term volatility. Questions also focused on regional demand and the LPG export project, with management saying gasoline, diesel, and jet demand remain resilient, West Coast and Mid-Con conditions are strong, and the LPG platform is a growth platform with more contracting expected before startup.