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MPC
FY2026 Q1
Improving
Marathon Petroleum Corporation earnings call
Buzzberg read
Global refining capacity offline estimated at 6 million bpd
MPC delivered a strong Q1 with 99% capture and 89% utilization. The call focused on a highly constructive refining outlook driven by geopolitical shutdowns and supply/demand imbalances. Management guided to 94% utilization in Q2 and detailed how it is positioned to capitalize on the current environment through feedstock flexibility, export optionality, and strategic jet capacity additions. Q1-2026 results: adjusted EPS of $1.65, adjusted EBITDA of $2.8 billion, 99% refining capture, and 89% utilization.
Buzzberg read Global refining capacity offline estimated at 6 million bpd MPC delivered a strong Q1 with 99% capture and 89% utilization. The call focused on a highly constructive refining outlook driven by geopolitical shutdowns and supply/demand imbalances. Management guided to 94% utilization in Q2 and detailed how it is positioned to capitalize on the current environment through feedstock flexibility, export optionality, and strategic jet capacity additions. Q1-2026 results: adjusted EPS of $1.65, adjusted EBITDA of $2.8 billion, 99% refining capture, and 89% utilization. Read full analysisCollapse analysis
MPC delivered a strong Q1 with 99% capture and 89% utilization. The call focused on a highly constructive refining outlook driven by geopolitical shutdowns and supply/demand imbalances. Management guided to 94% utilization in Q2 and detailed how it is positioned to capitalize on the current environment through feedstock flexibility, export optionality, and strategic jet capacity additions. Q1-2026 results: adjusted EPS of $1.65, adjusted EBITDA of $2.8 billion, 99% refining capture, and 89% utilization.
- Management is very bullish on refining margins for the remainder of 2026, citing 6 MBD of global capacity offline and tight product inventories.
- Guided Q2-2026 refining utilization to ~94%, signaling confidence in sustained strong demand and margins.
- Reported ~$500M in unrealized derivative losses and ~$340M in working capital use from margin calls; these are expected to reverse in Q2.
Revenue$34.568B+6% QoQ
EPS$1.65-59% QoQ
Gross margin9.57%Reported
Operating margin4.06%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Guidance
Second quarter refining utilization guided to 94%
Margins
First quarter capture nearly 100%, but derivative and secondary headwinds
Show 3 more callouts
Buybacks
New $5 billion share repurchase authorization announced
Midstream
MPLX plans 12.5% distribution growth for two years
Capex
Garyville jet capacity expansion added 30,000 bpd in March
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $34.568B | +6% QoQ |
| EPS | $1.65 | -59% QoQ |
| Gross margin | 9.57% | Reported |
| Operating margin | 4.06% | Reported |
| Free cash flow | $0.208B | Reported |
| Capex | $0.913B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| UnitsREFINING_AND_MARKETING | FY2026 Q2 | 94% | 94% | Guided |
| UnitsREFINING_AND_MARKETING | FY2026 | $1.35B | $1.35B | Maintained |
AI, capex & demand read
Management read
Confident
Management expressed strong confidence in operational execution, market positioning, and capital returns, citing record reliability, strategic investments, and a constructive macro outlook.
Investment and capacity
MPC is directing capital toward high-return refining projects such as Garyville jet capacity, Robinson jet flexibility, and El Paso yield improvements, while MPLX invests over $2.4 billion in 2026, primarily in natural gas and NGL infrastructure, including fractionation and export facilities expected to enter service in 2028 and 2029.
all 1 named companies below
Companiesreturns since call
Supply chain
Supply chain
Rick
MPC secured ~10 million barrels of cheap SPR crude directly from the DOE to run in Q2, with hopes for more in Q3, a tailwind most peers cannot match. — This access to advantaged SPR crude at a discount gives MPC a unique feedstock cost advantage for the second quarter, potentially boosting capture rates and margins versus peers that have to buy in the open market.
Evidence
“we've purchased approximately 10 million barrels of advantaged SPR crude directly from the DOE, taking out the middleman. We are advantageously working with the DOE to run those barrels in 2Q and And we're hopeful we may even get some”
External signals
Supply-chain alpha · 3returns since call
MPC expects to see its currently depressed mid-continent margins recover sharply in Q2, now calling it the 'best market' in its system.
Evidence
“we saw the mid-cons start to widen out. And as we look at the mid-con today, it is absolutely the best market we have right now within our system... EIA stats went from length on inventory in Jan and Feb to abnormally low levels now.”
MPC secured ~10 million barrels of cheap SPR crude directly from the DOE to run in Q2, with hopes for more in Q3, a tailwind most peers cannot match.
Evidence
“we've purchased approximately 10 million barrels of advantaged SPR crude directly from the DOE, taking out the middleman. We are advantageously working with the DOE to run those barrels in 2Q and And we're hopeful we may even get some barr…”
The recent volatility skews derivative and inventory timing effects. ~$500M in unrealized derivative losses are expected to reverse in Q2, adding to earnings.
Evidence
“we had about $500 million of unrealized losses... The impact on margin calls to working capital was about $340 million overall use of cash.”
Methodology & coverage
Management-only analysis. All 1 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.