The combination of Marathon and Andeavor created the largest US refiner, with facilities in the midcontinent, Gulf Coast, and West Coast. Since the merger, management has improved its operating cost structure and commercial operations, increasing competitiveness.
High-complexity facilities in the midcontinent and Gulf Coast position Marathon to capitalize on a variety of discount crude streams, endowing it with a feedstock cost advantage.
Bears
Marathon's refineries on the West Coast have higher costs and less cost-advantaged feedstock, while EVs threaten long-term demand more.
Marathon Petroleum is a leading integrated downstream and midstream energy company that operates 13 refineries in the Gulf Coast, midcontinent, and West Coast regions of the United States with an aggregate crude oil refining capacity of 3.0 million barrels per day. The company is one of the largest producers of renewable diesel in the US; its Dickinson, North Dakota, facility has the capacity to produce 184 million gallons per year, and its Martinez, California, joint venture facility (a 50/50 partnership with Neste) reached its full capacity of 730 million gallons per year in late 2024. Marathon also owns the general partner and approximately 64% of MPLX LP, a large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets.