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MPC Q1 Earnings Beat Estimates on Strong Refining Results
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Key Takeaways
MPC posted Q1 adjusted EPS of $1.65, topping estimates on stronger refining results.
Marathon Petroleum's revenues rose 8.5% Y/Y to $34.6B, beating consensus estimates.
MPC added a $5B buyback, lifting total repurchase authorization to $8.6B.
Marathon Petroleum Corporation (MPC - Free Report) reported first-quarter 2026 adjusted earnings per share of $1.65, which beat the Zacks Consensus Estimate of 72 cents. Moreover, the bottom line increased significantly from the year-ago adjusted loss of 24 cents. The outperformance was driven by stronger-than-expected Refining & Marketing segment performance.
The Findlay, OH-based oil and gas refining and marketing company reported revenues of $34.6 billion, which beat the Zacks Consensus Estimate of $30.3 billion. Moreover, the top line increased 8.5% year over year, reflecting higher sales and other operating revenues, along with higher revenues from other income.
Marathon Petroleum Corporation Price, Consensus and EPS Surprise
The company distributed approximately $1 billion to its shareholders during the first quarter and ended the quarter with $3.6 billion of capacity remaining under its share repurchase authorizations as of March 31, 2026.
MPC also announced an incremental $5 billion share repurchase authorization. With the addition of this new authorization, the company will have $8.6 billion available under its share repurchase authorizations as of March 31, 2026.
Inside Marathon Petroleum’s Q1 Segments
Refining & Marketing: The Refining & Marketing segment reported adjusted EBITDA of $1.4 billion, up approximately 181.6% from the year-ago figure of $489 million, and the figure surpassed the consensus estimate by 51%.
The refining margin improved to $17.74 per barrel from $13.38 in the prior-year quarter, primarily reflecting stronger crack spreads. Moreover, the figure beat the consensus estimate by 10.3%. Refining capacity utilization for the quarter was 89%, in line with the year-ago period.
Midstream: This unit mainly reflects Marathon Petroleum’s general partner and majority limited partner interests in MPLX — a publicly traded master limited partnership that owns, operates, develops and acquires pipelines and other midstream assets.
The segment reported adjusted EBITDA of $1.6 billion, down from the year-ago figure of $1.7 billion. The figure also missed the consensus estimate by 2.7%.
MPC’s Financial Analysis
Marathon Petroleum reported expenses of $33.2 billion in the first quarter of 2026, up from $31.2 billion reported in the year-ago quarter.
In the reported quarter, Marathon Petroleum spent $1.2 billion on capital programs (26% on Refining & Marketing and 71% on the Midstream segment) compared with $776 million in the year-ago period.
As of March 31, 2026, this Zacks Rank #1 (Strong Buy) company had cash and cash equivalents of $2.1 billion and total debt, including that of MPLX, of $32.8 billion, with a debt-to-capitalization of 58.3%.
In the second quarter of 2026, Marathon Petroleum expects solid operating performance, supported by refinery throughput of nearly 3 million barrels per day, including 2.8 million bpd of crude oil refined. The company projects refining operating costs of approximately $5.65 per barrel, while distribution expenses are expected to total around $1.63 billion. Planned turnaround costs are forecast at $300 million, and depreciation and amortization expense for the Refining & Marketing segment is expected to be about $390 million, while corporate costs are projected at roughly $240 million, including $30 million of depreciation and amortization. Overall, the outlook reflects continued strong utilization levels and a more normalized maintenance schedule heading into the quarter.
Marathon Petroleum expects 2026 capital spending, excluding MPLX, to total nearly $1.5 billion. Around 65% of the planned expenditure is directed toward value-enhancing projects, while the remaining 35% is allocated to sustaining operations. The company’s investment plan includes several high-return initiatives across its Galveston Bay, Robinson, El Paso and Garyville refineries. During the first quarter of 2026, MPC successfully commissioned the Garyville jet flexibility project, where upgrades to the hydrocracker fractionator now enable the conversion of existing products into higher-value jet fuel. This enhancement positions the company to capitalize on rising domestic and international jet fuel demand. Alongside these long-term strategic investments, MPC is also pursuing shorter-cycle projects aimed at improving margins and lowering operating costs.
Important Earnings at a Glance
While we have discussed MPC’s first-quarter results in detail, let us take a look at three other key reports in this space.
Northern Oil and Gas, Inc. (NOG - Free Report) reported first-quarter 2026 adjusted earnings per share of 74 cents, which beat the Zacks Consensus Estimate of 71 cents. The outperformance reflects strong production. However, the bottom line declined from the year-ago adjusted profit of $1.33 due to weaker natural gas prices and a 77% increase in operating expenses.
The Minnetonka, MN-based oil and gas exploration and production company reported oil and gas sales of $539.9 million, beating the Zacks Consensus Estimate of $511 million, supported by higher crude oil realizations. However, the top line decreased from the year-ago figure of $576.9 million. The year-over-year decline was mainly due to lower oil and gas sales during this quarter.
As of March 31, 2026, Northern Oil had $37 million in cash and cash equivalents. The company had a long-term debt of $2.6 billion, with a debt-to-capitalization of 58.8%.
Canadian Natural Resources Limited (CNQ - Free Report) reported first-quarter 2026 adjusted earnings per share of 85 cents, which beat the Zacks Consensus Estimate of 74 cents and increased from 81 cents in the year-ago quarter. The outperformance can be attributed to strong operational performance and higher realized natural gas prices.
Total revenues of $7.9 billion increased from $7.6 billion in the prior-year period, fueled by increased production volumes. Additionally, the figure beat the Zacks Consensus Estimate of $7.5 billion.
As of March 31, 2026, CNQ had cash and cash equivalents worth C$808 million and long-term debt of approximately C$16.5 billion, with a debt to capitalization of about 27%.
The Williams Companies, Inc. (WMB - Free Report) reported first-quarter 2026 adjusted earnings per share of 73 cents, which beat the Zacks Consensus Estimate of 65 cents. The bottom line increased from the year-ago period’s level of 60 cents, driven mainly by a 12.5% decrease in costs and expenses. Moreover, better-than-expected performance of its Transmission, Power & Gulf, Northeast G&P, West and Gas & NGL Marketing Services segments also contributed, with increases of 17.2%, 1.9%, 15.8% and 46.5%, respectively, from the year-ago quarter’s level.
The company’s revenues of $3 billion missed the Zacks Consensus Estimate of $3.3 billion. The figure decreased marginally by 0.6% from the year-ago quarter’s reported revenues. This can be attributed to lower service revenues tied to commodity contracts and an increased loss from commodity derivative instruments.
As of March 31, 2026, WMB had cash and cash equivalents of $950 million and a long-term debt of $30 billion, with a debt-to-capitalization of 66.5%.
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MPC Q1 Earnings Beat Estimates on Strong Refining Results
Key Takeaways
Marathon Petroleum Corporation (MPC - Free Report) reported first-quarter 2026 adjusted earnings per share of $1.65, which beat the Zacks Consensus Estimate of 72 cents. Moreover, the bottom line increased significantly from the year-ago adjusted loss of 24 cents. The outperformance was driven by stronger-than-expected Refining & Marketing segment performance.
The Findlay, OH-based oil and gas refining and marketing company reported revenues of $34.6 billion, which beat the Zacks Consensus Estimate of $30.3 billion. Moreover, the top line increased 8.5% year over year, reflecting higher sales and other operating revenues, along with higher revenues from other income.
Marathon Petroleum Corporation Price, Consensus and EPS Surprise
Marathon Petroleum Corporation price-consensus-eps-surprise-chart | Marathon Petroleum Corporation Quote
The company distributed approximately $1 billion to its shareholders during the first quarter and ended the quarter with $3.6 billion of capacity remaining under its share repurchase authorizations as of March 31, 2026.
MPC also announced an incremental $5 billion share repurchase authorization. With the addition of this new authorization, the company will have $8.6 billion available under its share repurchase authorizations as of March 31, 2026.
Inside Marathon Petroleum’s Q1 Segments
Refining & Marketing: The Refining & Marketing segment reported adjusted EBITDA of $1.4 billion, up approximately 181.6% from the year-ago figure of $489 million, and the figure surpassed the consensus estimate by 51%.
The refining margin improved to $17.74 per barrel from $13.38 in the prior-year quarter, primarily reflecting stronger crack spreads. Moreover, the figure beat the consensus estimate by 10.3%. Refining capacity utilization for the quarter was 89%, in line with the year-ago period.
Midstream: This unit mainly reflects Marathon Petroleum’s general partner and majority limited partner interests in MPLX — a publicly traded master limited partnership that owns, operates, develops and acquires pipelines and other midstream assets.
The segment reported adjusted EBITDA of $1.6 billion, down from the year-ago figure of $1.7 billion. The figure also missed the consensus estimate by 2.7%.
MPC’s Financial Analysis
Marathon Petroleum reported expenses of $33.2 billion in the first quarter of 2026, up from $31.2 billion reported in the year-ago quarter.
In the reported quarter, Marathon Petroleum spent $1.2 billion on capital programs (26% on Refining & Marketing and 71% on the Midstream segment) compared with $776 million in the year-ago period.
As of March 31, 2026, this Zacks Rank #1 (Strong Buy) company had cash and cash equivalents of $2.1 billion and total debt, including that of MPLX, of $32.8 billion, with a debt-to-capitalization of 58.3%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
MPC’s Q2 & 2026 Guidance
In the second quarter of 2026, Marathon Petroleum expects solid operating performance, supported by refinery throughput of nearly 3 million barrels per day, including 2.8 million bpd of crude oil refined. The company projects refining operating costs of approximately $5.65 per barrel, while distribution expenses are expected to total around $1.63 billion. Planned turnaround costs are forecast at $300 million, and depreciation and amortization expense for the Refining & Marketing segment is expected to be about $390 million, while corporate costs are projected at roughly $240 million, including $30 million of depreciation and amortization. Overall, the outlook reflects continued strong utilization levels and a more normalized maintenance schedule heading into the quarter.
Marathon Petroleum expects 2026 capital spending, excluding MPLX, to total nearly $1.5 billion. Around 65% of the planned expenditure is directed toward value-enhancing projects, while the remaining 35% is allocated to sustaining operations. The company’s investment plan includes several high-return initiatives across its Galveston Bay, Robinson, El Paso and Garyville refineries. During the first quarter of 2026, MPC successfully commissioned the Garyville jet flexibility project, where upgrades to the hydrocracker fractionator now enable the conversion of existing products into higher-value jet fuel. This enhancement positions the company to capitalize on rising domestic and international jet fuel demand. Alongside these long-term strategic investments, MPC is also pursuing shorter-cycle projects aimed at improving margins and lowering operating costs.
Important Earnings at a Glance
While we have discussed MPC’s first-quarter results in detail, let us take a look at three other key reports in this space.
Northern Oil and Gas, Inc. (NOG - Free Report) reported first-quarter 2026 adjusted earnings per share of 74 cents, which beat the Zacks Consensus Estimate of 71 cents. The outperformance reflects strong production. However, the bottom line declined from the year-ago adjusted profit of $1.33 due to weaker natural gas prices and a 77% increase in operating expenses.
The Minnetonka, MN-based oil and gas exploration and production company reported oil and gas sales of $539.9 million, beating the Zacks Consensus Estimate of $511 million, supported by higher crude oil realizations. However, the top line decreased from the year-ago figure of $576.9 million. The year-over-year decline was mainly due to lower oil and gas sales during this quarter.
As of March 31, 2026, Northern Oil had $37 million in cash and cash equivalents. The company had a long-term debt of $2.6 billion, with a debt-to-capitalization of 58.8%.
Canadian Natural Resources Limited (CNQ - Free Report) reported first-quarter 2026 adjusted earnings per share of 85 cents, which beat the Zacks Consensus Estimate of 74 cents and increased from 81 cents in the year-ago quarter. The outperformance can be attributed to strong operational performance and higher realized natural gas prices.
Total revenues of $7.9 billion increased from $7.6 billion in the prior-year period, fueled by increased production volumes. Additionally, the figure beat the Zacks Consensus Estimate of $7.5 billion.
As of March 31, 2026, CNQ had cash and cash equivalents worth C$808 million and long-term debt of approximately C$16.5 billion, with a debt to capitalization of about 27%.
The Williams Companies, Inc. (WMB - Free Report) reported first-quarter 2026 adjusted earnings per share of 73 cents, which beat the Zacks Consensus Estimate of 65 cents. The bottom line increased from the year-ago period’s level of 60 cents, driven mainly by a 12.5% decrease in costs and expenses. Moreover, better-than-expected performance of its Transmission, Power & Gulf, Northeast G&P, West and Gas & NGL Marketing Services segments also contributed, with increases of 17.2%, 1.9%, 15.8% and 46.5%, respectively, from the year-ago quarter’s level.
The company’s revenues of $3 billion missed the Zacks Consensus Estimate of $3.3 billion. The figure decreased marginally by 0.6% from the year-ago quarter’s reported revenues. This can be attributed to lower service revenues tied to commodity contracts and an increased loss from commodity derivative instruments.
As of March 31, 2026, WMB had cash and cash equivalents of $950 million and a long-term debt of $30 billion, with a debt-to-capitalization of 66.5%.