Highlights

  • Marathon Petroleum shows 329.54% basic EPS growth, a P/E of 15.90 and PEG of -0.59.
  • Second quarter net income attributable to MPC was $5,138 million, against $1,216 million.
  • Refining & Marketing adjusted EBITDA was $6,655 million in the second quarter, against $1,890 million.
  • The company repurchased 13 million shares for $3,250 million; $6.13 billion remains authorized.

An undervalued growth stock pairs earnings growth with its P/E and PEG ratios, and Marathon Petroleum (NYSE:MPC) shows all three: basic earnings per share grew 329.54% over one year, the trailing twelve-month P/E ratio is 15.90 and the PEG ratio, on an expected basis, is -0.59, with shares trading at USD 438.23 on October 28, 2026, up 0.52%. Alongside those figures, the refining, midstream and renewable diesel company entered a new $5.0 billion revolving credit facility on April 7, announced an additional $5.0 billion share repurchase authorization on May 5, and reported second quarter 2026 net income attributable to the company of $5.14 billion in early August.

Marathon Petroleum is headquartered in Findlay, Ohio, and incorporated in Delaware. It describes itself as an integrated downstream and midstream energy company operating one of the nation's largest refining systems. The company sells refined products to wholesale marketing customers, spot-market buyers and independent entrepreneurs who operate branded outlets. It reports three segments: Refining & Marketing, Midstream and Renewable Diesel. It consolidates MPLX, of which it owned approximately 64 percent at June 30, 2026.

Growth: Second Quarter Earnings, Refining Margins and Segment Results

Net income attributable to Marathon Petroleum was $5,138 million in the second quarter of 2026 against $1,216 million a year earlier, and $5,649 million for the first six months against $1,142 million. Second quarter basic earnings per share were $17.76 against $3.96, and diluted earnings per share were $17.73 against $3.96. Six-month diluted earnings per share were $19.30 against $3.68.

Total revenues and other income were $52,337 million against $34,101 million. The company said revenues increased primarily on a $1.12 per gallon rise in average refined product sales prices and a 7 mbpd rise in sales volumes.

Segment adjusted EBITDA was $1,778 million for Midstream against $1,641 million, and $258 million for Renewable Diesel against a loss of $19 million, while Refining & Marketing was $6,655 million against $1,890 million. Refining & Marketing margin was $36.33 per barrel against $17.58, which the company attributed primarily to higher crack spreads. Net refinery throughput was 2,944 mbpd against 3,060 mbpd.

Valuation: P/E of 15.90, PEG of -0.59 and Cash Generation

The P/E ratio of 15.90 is measured on trailing twelve-month earnings, and the PEG ratio of -0.59 is on an expected basis. Net cash provided by operating activities was $11,448 million for the first six months against $2,575 million. Total MPC stockholders' equity was $19,077 million at June 30, 2026, against $17,314 million at December 31, 2025.

Refining & Marketing segment adjusted EBITDA was $24.84 per barrel against $6.79.

Capital Returns and Balance Sheet

Marathon Petroleum repurchased 13 million shares for $3,250 million in the first six months at an average cost of $246.41 per share. The board approved an additional $5.0 billion authorization on May 5, 2026; $6.13 billion remained at June 30, 2026, and the authorizations have no expiration date. The company said repurchases may be suspended, discontinued or restarted at any time.

Dividends paid were $585 million against $564 million, and the board declared $1.00 per share on July 29, 2026. Cash and cash equivalents were approximately $7.77 billion at June 30, 2026, against $3.67 billion at December 31, 2025. Liquidity excluding MPLX was $11.7 billion, and the new revolving credit facility expires in April 2031. Total debt was $33,255 million.

Disclosed Risks and Outlook

Throughput fell on increased planned maintenance activity, primarily in the Mid-Continent region. Expenses for purchased RINs were $683 million against $314 million.

The company disclosed a Delaware climate-related lawsuit, filed September 10, 2020, seeking unspecified damages and abatement, and said neither the likelihood of an adverse outcome nor any liability can be determined. A Tesoro High Plains Pipeline dispute with the Bureau of Indian Affairs began with an assessment of approximately $187 million in trespass damages, of which the subsidiary paid approximately $4 million. The EPA assessed stipulated penalties at the Galveston Bay Refinery, which the company said may result in a payment of $1 million or more. MPLX's maximum potential payments under the Dakota Access contingent equity agreement were approximately $78 million.

Under its Strategic Petroleum Reserve exchange arrangements, the company expects to receive approximately 22 million barrels during 2026 and return approximately 27 million barrels from April 2027 through July 2029. MPLX increased its 2026 growth capital spending outlook by $500 million to $2.9 billion. The company stated that it expects global demand growth to outpace the net impact of refining capacity additions and rationalizations through the end of the decade. The filing contains no quantitative earnings guidance.