Marathon Sees Q4 Utilization Falling to 95%


   
Daniel Rodriguez Huerta
DTN Refined Fuels Market Reporter

   CALGARY, CANADA (DTN) -- Ohio-based Marathon Petroleum expects fourth 
quarter crude throughput of 2.8 million bpd, or 95% utilization, down from 100% 
in the third quarter, with turnarounds mainly on Gulf Coast and West Coast 
conversion units, the company said Tuesday (11/3).

   The work will limit Marathon's ability to upgrade certain products and weigh 
on capture, Chief Financial Officer Maria Khoury said. She projected refining 
turnaround expenses of $230 million for the quarter.

   Marathon's Mid-Continent refineries ran at a record 101% in the third 
quarter and earned $36 bbl of adjusted EBITDA, helped by the Robinson refinery 
project that started up in the second quarter. West Coast refineries ran at 
98%, also a record for the region, and earned more than $33 bbl. Gulf Coast 
utilization was 99% despite planned conversion unit downtime, and adjusted 
EBITDA reached nearly $33 bbl. Garyville flexibility added this year helped the 
Gulf Coast refineries maximize distillate yields.

   Marathon expects its Gulf Coast investments to start up by year-end 2027, 
CEO Maryann Mannen said. A 90,000 bpd distillate hydrotreater at the 631,000 
bpd Galveston Bay refinery in Texas City, Texas, will turn high-sulfur diesel 
into ultra-low-sulfur diesel. At the 597,000 bpd Garyville refinery in 
Louisiana, feedstock optimization will add 30,000 bpd of crude throughput, and 
extra flexibility will allow 10,000 bpd of additional export-premium gasoline.

   Marathon executives also said:

   -- Within Marathon's system, demand for gasoline, diesel and jet remains 
resilient, domestically and internationally.

   -- Marathon has run in maximum diesel mode for most of the year, which 
continues to put pressure on the gasoline crack.

   -- Mid-Continent supply and demand balances are extremely tight, and any 
disruption in the Chicago market produces outsized gasoline crack moves, 
including one of about $30 within a week or two recently.

   -- Marathon has shown it can shift about 4% of its product yield between 
gasoline and diesel, and it can now respond quickly as jet and diesel economics 
change.

   -- Marathon did not delay or postpone any 2026 turnaround activity, and 
full-year turnaround expenses remain in line with its 2026 outlook of $1.35 
billion.




(c) Copyright 2026 DTN, LLC. All rights reserved.