Orin
MPCNYSE·Oil & Gas Refining & Marketing

Marathon Petroleum Corporation MPC

Market cap $114.8BP/E 13.4× trailingGross margin 11.6%Reports Tue 3 Nov, before the open
$393.15
+4.77 (+1.23%)live 09:30 ET
52-wk $161.93 – $431.08
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Orin's take
0.62conviction · moderate
Refreshed 19 Aug · take v7. A new filing or a print queues the next refresh.

Marathon Petroleum's refining-margin tailwind is real — record diesel prices, curtailed Russian refined exports, and a strong Q2 print have driven the stock 51% higher to $360.75, with RSI at 72.7 signaling overbought conditions. The valuation discount to peers (P/E of 12.6 vs. peer median 14.5; EV/EBITDA of 7.6 vs. 8.9) is consistent with MPC's historical cyclical discount, not a mispricing, and insiders have been net sellers of $12.3M over 24 months including August sales at $350.

With total debt at $34.4B against equity of $17.3B and FCF declining from $12.2B in 2023 to $4.8B in 2025, the balance sheet and cash-generation trajectory temper enthusiasm at current elevated levels.

What could go wrong

  • Cyclical margin reversal. MPC's EPS swung from $28.12 in 2022 to $10.09 in 2024; a similar crack-spread normalization could rapidly compress earnings from current elevated levels.
  • Overextended technicals. At $360.75 the stock trades well above its 50-day MA of $293.57 and 200-day MA of $231.07, with RSI at 72.7, increasing vulnerability to a pullback.
  • Leverage and declining FCF. Total debt of $34.4B against equity of $17.3B, with FCF falling from $12.2B (2023) to $4.8B (2025), limits financial flexibility if margins compress.
  • Insider selling acceleration. Net insider dispositions of $12.3M over 24 months, with multiple executives selling in August 2026 at $341–$350 per share, signal limited conviction at current prices.

What would change my mind

Crack spread normalization. US Gulf Coast 3-2-1 crack spreads fall back toward mid-cycle levels ($15–18/bbl), compressing MPC's refining margins and Q3 guidancebearish
Russian refined product re-entry. Geopolitical developments allow Russian refined exports to return to global markets, increasing supply and pressuring marginsbearish
Sustained margin strength with deleveraging. MPC uses elevated FCF to materially reduce total debt from $34.4B and announces accelerated buybacks, improving the balance sheetbullish
Technical breakdown below 50-day MA. Stock closes below $293.57 (50-day MA) on rising volume, confirming the post-Q2 rally has exhaustedbearish

Where this comes from: Technicals as of 2026-08-19 · Peer relative comparison · Fundamentals FY2025 (period ended 2025-12-31) · Fundamentals FY2022 and FY2024. Orin's read on MPC; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$4.9B0.1% of fund
State Street$4.7B0.1% of fund
Vanguard Portfolio Management$4.0B0.2% of fund
Geode Capital Management$2.1B0.1% of fund
Morgan Stanley$1.5B0.1% of fund
Fmr$1.4B0.1% of fund

122 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 90 Form 4 filings, net −$15.0M. Of the 50 on hand, 0 were open-market purchases and 14 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Energy
MetricNowOwn medianSector
P/E13.4×6.2×51.1×
EV/EBITDA8.0×6.9×
P/S0.74×0.34×
P/B5.9×2.5×

Its P/E sits 80th percentile of its own last 5 years (+1.28σ from its own mean).

What the price assumes

10.1%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $4.8B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

33 firms · 2026-09-23
Consensus target

$405

$304$472 · +3% against today's price

How they rate it
  • 25 buy or overweight
  • 8 hold
  • 0 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 15.6× of 5 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
MPCMarathon Petroleum Corporation$113B13.4×8.0×11.6%5.6%49%
EOGEOG Resources, Inc.$76B11.0×5.6×70.2%25.7%22%
KMIKinder Morgan, Inc.$70B20.1×12.6×54.9%19.3%11%
PSXPhillips 66$103B14.5×9.3×9.8%4.6%24%
SLBSLB N.V.$77B24.9×12.2×16.5%8.5%12%
VLOValero Energy Corporation$108B15.6×8.4×11.3%5.4%30%

The median is of the 5 peers listed above and nothing else — check it against the column. This company trades 14.2% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 10.2×FY25 12.3×

What its sector has traded at

Energy
FY14 27.3×FY26 19.9×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$507$269.05 · +89%2026-06-10
Levered DCF$455$269.05 · +69%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $393.15
52-week range$162 – $431
Analyst targets$304 – $472
Standard DCF$507 as of 2026-06-10, when it was $269.05
Levered DCF$455 as of 2026-06-10, when it was $269.05
At own 5y-median P/E (6×)$181
At 5y P/E range (4–14×)$119 – $401
At sector P/E (51×)$1484

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.