Marathon Petroleum Corporation (MPC): Business Model Canvas [Dec-2025 Updated]

You're looking for the nuts and bolts of how Marathon Petroleum Corporation (MPC) actually makes money heading into late 2025, and honestly, it's a study in scale and transition. This isn't just about refining 3.0 million barrels per day across 16 U.S. refineries; it's about anchoring that massive operation with the steady, fee-based income from their MPLX midstream arm and aggressively building out renewable diesel capacity through ventures like the one with Neste. If you want to see exactly where the $131.59 billion in FY 2024 R&M revenue comes from and how they're managing costs like $5.34 per barrel in Q2 2025, dive into the nine blocks below-it's a defintely complex but clear strategy.

Marathon Petroleum Corporation (MPC) - Canvas Business Model: Key Partnerships

You're looking at the core alliances that power Marathon Petroleum Corporation's strategy, especially its pivot into lower-carbon fuels. These aren't just handshake deals; they involve billions in capital and define feedstock security and logistics reach. Honestly, these partnerships are where the real action is for future growth.

MPLX LP: Majority limited partner interest for midstream operations

Marathon Petroleum Corporation controls its midstream assets through MPLX LP, a master limited partnership. As of December 31, 2024, MPC owned the general partner and approximately 64% of MPLX LP's outstanding common units. This relationship is financially significant; for 2025, MPLX LP is paying Marathon Petroleum an estimated $2.8 billion in annualized dividends. MPLX LP reported its Third-Quarter 2025 Financial Results on November 4, 2025.

ONEOK, Inc.: Joint development of a 400 mbpd LPG export terminal

Marathon Petroleum Corporation, via MPLX LP, is partnered with ONEOK, Inc. on major Gulf Coast logistics expansion. They formed Texas City Logistics LLC (TCX) to build a large-scale liquefied petroleum gas (LPG) export terminal in Texas City, Texas.

• TCX ownership is a 50/50 split between ONEOK and MPLX.
• The terminal has a capacity of 400,000 barrels per day (bpd), split evenly with each partner reserving 200,000 bpd for customers.
• The total investment for the terminal is $1.4 billion, with MPLX contributing approximately $700 million.
• The facility is expected to be in service in 2028.

A second joint venture, MBTC Pipeline LLC, is developing the connecting pipeline from Mont Belvieu. This pipeline is 80% owned by ONEOK and 20% by MPLX, representing a total investment of $350 million, with MPLX's share being $70 million.

Neste: 50/50 joint venture for renewable fuels production at Martinez

The Martinez Renewables joint venture with Neste Corporation converts Marathon Petroleum's California refinery into a renewable diesel biorefinery. This is a 50/50 partnership.

• The total project cost for the conversion was $1.2 billion.
• Neste contributed approximately $1 billion to the joint venture.
• The facility's full nameplate capacity is approximately 730 million gallons per year (MMgy) of renewable diesel.
• The facility began operations in early 2023 and achieved full capacity by the end of 2024.

ADM: Joint venture for Green Bison soybean processing plant feedstock

The Green Bison Soy Processing facility in Spiritwood, North Dakota, is a venture with Archer Daniels Midland (ADM) to secure feedstock for renewable diesel. ADM owns 75% and MPC owns 25%.

Here's a quick math on the output from this Spiritwood complex:

LF Bioenergy: 49.9% interest for renewable natural gas (RNG) supply

Marathon Petroleum acquired a 49.9% stake in LF Bioenergy, an RNG producer, for an initial cash payment of $50 million. The deal has a potential total value of up to $100 million, contingent on earn-out targets. This platform is being built out to support production of over 6,500 MMBtu per day by the end of 2026.

Marathon Petroleum Corporation (MPC) - Canvas Business Model: Key Activities

You're looking at the core engine of Marathon Petroleum Corporation, the day-to-day work that drives the financial results. It's all about moving molecules efficiently, from the wellhead to the gas pump, and increasingly, into renewable fuels.

The foundation remains the massive refining footprint. Marathon Petroleum Corporation processes crude oil across its system, which as of early 2025, comprised 13 refineries. For the third quarter of 2025, the company reported a total throughput of 3.0 million barrels per day (bpd) at a capacity utilization rate of 95%. That scale allows for significant optimization by moving intermediate products between facilities to maximize margins.

Here's a look at the major operational and capital focus areas driving value:

Operating and expanding the MPLX midstream logistics network is a critical, capital-intensive activity that feeds the refining system and captures value downstream. MPLX has a $2.0 billion capital spending outlook for 2025, with $1.45 billion earmarked for Natural Gas and NGL Services growth capital. This network activity directly benefits Marathon Petroleum Corporation, as MPLX is expected to pay Marathon $2.8 billion in annualized dividends in 2025.

The focus on growing the renewable diesel portfolio is clear, moving beyond traditional refining. Marathon Petroleum Corporation manages this through specific assets:

• Dickinson, North Dakota facility: Capacity to produce 184 MMgy of renewable diesel.
• Martinez Renewable Fuels (50/50 JV with Neste): Capacity to produce 730 MMgy of renewable diesel.
• Q3 2025 production reached 1.295 million gallons per day at an 86% utilization rate.

Finally, managing commodity price risk and optimizing crude oil sourcing is an ongoing, essential activity. This involves strategic decisions like leveraging advantaged feedstocks to control costs, as noted in their renewable diesel segment strategy. The midstream segment supports this by expanding the Permian to Gulf Coast value chain, including the acquisition of the remaining 55% of the BANGL pipeline for $715 million and the announced acquisition of Northwind Midstream for $2.4 billion.

Marathon Petroleum Corporation (MPC) - Canvas Business Model: Key Resources

You're looking at the core assets that power Marathon Petroleum Corporation's entire operation as of late 2025. These aren't just line items on a balance sheet; they are the physical and financial foundations that let the company run its integrated system.

The refining backbone is massive. Marathon Petroleum Corporation remains the nation's largest refiner. As of the start of 2025, the company operated 13 refineries with a combined crude oil production capacity of 2.96 million bpd equal to 16% of the national total, according to an EIA report. By the third quarter of 2025, throughput was strong, hitting 3.0 million barrels per day (bpd) at 95% crude capacity utilization.

The midstream strength comes via MPLX. This subsidiary's asset base is crucial for moving product and raw materials. MPLX operates approximately 13,000 miles of pipelines transporting Natural Gas and Petroleum daily. This network is integrated with refining assets to maximize efficiency.

Financially, Marathon Petroleum Corporation maintains a solid position. As of June 30, 2025, MPC reported $1.7 billion of cash and cash equivalents. This liquidity helps support operations and capital commitments, even as the company returned approximately $1.0 billion of capital to shareholders in the second quarter of 2025.

The marketing reach is extensive, serving the retail consumer base. Marathon Petroleum Corporation serves retail consumers through approximately 5,300 branded stations, which include the Marathon and ARCO brands.

For the low-carbon transition, the Martinez Renewable Fuels facility is a key asset. This facility, converted from a former oil refinery and operated via a joint venture with Neste Corp., is designed to produce renewable diesel. At full nameplate capacity, the facility can produce 730 million gallons per year (MMgy) of renewable fuel. During the third quarter of 2025, the renewable diesel segment achieved 86% capacity utilization, producing 1.295 million gallons per day of renewable diesel.

Here's a quick look at some of the core physical and financial statistics underpinning Marathon Petroleum Corporation's operations:

The integration of these assets is what matters. The refineries use the midstream links to move intermediate products, optimizing operations and maximizing margins.

You can see the strategic focus in their capital spending, too. For instance, the Galveston Bay refinery project to upgrade distillate to ultra-low sulfur diesel has $200 million in capital spending allocated for 2025.

The company's retail strategy relies on this physical footprint, using digital loyalty platforms to drive traffic to these thousands of locations.

• Refining Throughput (Q3 2025): 3.0 million bpd
• Renewable Diesel Production (Q3 2025): 1.295 million gallons per day
• Capital Returned to Shareholders (Q2 2025): Approximately $1.0 billion
• Available Share Repurchase Authorizations (as of June 30, 2025): $6.0 billion

Finance: review the Q3 2025 operating costs per barrel for R&M, which were $5.59.

Marathon Petroleum Corporation (MPC) - Canvas Business Model: Value Propositions

You're looking at the core promises Marathon Petroleum Corporation (MPC) makes to its customers, partners, and owners as of late 2025. These aren't just vague goals; they are backed by massive infrastructure and recent financial activity.

Reliable, large-scale supply of refined products across the U.S.

Marathon Petroleum Corporation delivers refined products at a scale that few can match, underpinning its value proposition of reliability. The company's crude oil refining capacity stands at 2,963 thousand barrels per calendar day (mbpcd). This massive system supported a Refining & Marketing refined product sales volume of 3,783 mbpd for the three months ended September 30, 2025. Even in the first quarter of 2025, net refinery throughputs reached 2,849 mbpd. The company expects 2025 to be another record year for refined product demand, driven by steady gasoline and diesel consumption.

High-quality, low-carbon fuels like renewable diesel and RNG

Marathon Petroleum is actively pivoting to low-carbon liquid fuels, leveraging significant assets. The Renewable Diesel segment includes two key biorefineries:

• Dickinson, North Dakota facility capacity: 184 MMgy of renewable diesel.
• Martinez Renewable Fuels facility (50/50 JV with Neste): 730 MMgy capacity, featuring pretreatment capabilities.

Operational execution is ramping up; the company produced 1.295 million gallons per day of renewable diesel in the third quarter of 2025, up from 934,000 gallons per day in the third quarter of 2024. This segment achieved an 86% capacity utilization in Q3 2025. Furthermore, Marathon Petroleum secured supply for renewable natural gas (RNG) by acquiring a 49.9% interest for an initial $50 million.

Stable, fee-based midstream services through MPLX for producers

Through its ownership of the general partner and majority limited partner interest in MPLX LP, Marathon Petroleum secures stable, fee-based cash flows. This relationship is foundational. For the full year 2025, expected distributions from MPLX to MPC total $2.8 billion. This expected cash flow is significant enough that management signaled in early 2025 that distributions from MPLX would cover MPC's dividends plus its $1.25 billion standalone capital outlook. MPLX itself remains focused on growth, with an expected 2025 organic growth capital investment of $1.7 billion.

Commitment to peer-leading capital return to shareholders

A core value proposition is the disciplined return of capital to shareholders, a commitment reinforced throughout 2025. In the third quarter of 2025 alone, Marathon Petroleum returned approximately $926 million to shareholders, which included $650 million in share repurchases. As of September 30, 2025, the company still had $5.4 billion available under its share repurchase authorizations. The company also announced a 10% quarterly dividend increase, setting the new payout at $1.00 per share, which translates to a $4.00 annualized dividend. This return strategy is supported by the fact that MPC's standalone 2025 capital spending outlook is set at $1.25 billion.

Logistical superiority via an integrated refining and midstream system

The integration between MPC's refining assets and MPLX's midstream network creates logistical superiority, allowing for optimization and market access. MPC's 2025 capital spending is heavily focused on high-return projects across its system, such as the Galveston Bay distillate hydrotreater, which requires a $200 million spend in 2025. MPLX is simultaneously expanding its connectivity, with its Secretariat processing plant expected online by the end of 2025, adding 200 MMcf/d of processing capacity in the Permian Basin. This integrated approach allows MPC to manage its supply chain efficiently, as evidenced by its ability to process crude oil at high utilization rates, such as 89% in Q1 2025.

Here's a quick look at the scale of the integrated system as of late 2025 data points:

Marathon Petroleum Corporation (MPC) - Canvas Business Model: Customer Relationships

For Marathon Petroleum Corporation (MPC), customer relationships are segmented sharply between high-volume business-to-business (B2B) clients and the individual retail consumer, each managed with distinct approaches.

Direct sales force and long-term contracts for wholesale clients

The wholesale segment is foundational to Marathon Petroleum Corporation's operations. This group, which includes major distributors, large fleet operators, railroads, and shipping companies, represents an estimated 65% of Refining and Marketing revenue. Marathon Petroleum Corporation leverages a direct sales force to secure these relationships, emphasizing logistical superiority and competitive pricing tied to market indexes. The company competes in the sale of renewable diesel to wholesale marketing customers, which includes private-brand marketers and large commercial and industrial consumers. Marathon Petroleum Corporation also competes with refiners or marketers in the supply of renewable diesel to refiner-branded independent entrepreneurs.

Digital loyalty programs and brand marketing for retail consumers

The relationship with the retail consumer is heavily digitized and brand-focused to drive foot traffic to branded locations. Marathon Petroleum Corporation maintains a significant physical footprint to support this channel.

• Marathon Petroleum Corporation serves retail consumers through approximately 5,300 branded stations.
• The digital loyalty program boasted over 6.5 million active members as of Q2 2025.
• Members redeeming personalized rewards spend 4.3 times more than those redeeming non-personalized rewards, a key driver for program design.

Dedicated account management for large commercial and industrial users

Large commercial and industrial users form a critical part of the B2B relationship structure, requiring specialized product offerings and reliable supply logistics. This client base requires products such as asphalt, lubricants, and petrochemical feedstocks. The commercial fuel buyers are acquired through the direct sales force, which focuses on demonstrating logistical advantages and pricing structures linked to established market benchmarks. Marathon Petroleum Corporation also competes in supplying these industrial markets with alternative forms of energy and fuels to satisfy their requirements.

Investor relations focused on capital return and distribution growth

The relationship with the investment community is managed through a clear focus on capital return, which is supported by the performance of its integrated structure, particularly the relationship with MPLX LP. Marathon Petroleum Corporation announced a 10% quarterly dividend increase in 2024, and MPLX's 12.5% quarterly distribution increase is expected to result in $2.8 billion of expected annual distributions to Marathon Petroleum Corporation. You can see the capital returned to shareholders across the first three quarters of 2025 below.

Marathon Petroleum Corporation received $619 million in distributions from MPLX in the first quarter of 2025, which was a 12.5% increase compared to the $550 million received in Q1 2024. For the second quarter of 2025, Marathon Petroleum Corporation received $619 million in distributions from MPLX, also a 12.5% increase over the $550 million received in the second quarter of the prior year.

Transactional relationships at the point-of-sale for retail fuel

The final touchpoint is the direct, transactional relationship occurring at the retail fuel pump. This is where the brand marketing and loyalty program efforts culminate in a purchase. The primary target market at these 5,300 branded locations generally skews towards middle-income individuals aged 25-64 who depend on personal vehicles, especially in the Midwest and Gulf Coast. The relationship is immediate and based on the convenience and quality perceived at the moment of transaction.

Marathon Petroleum Corporation (MPC) - Canvas Business Model: Channels

You're looking at how Marathon Petroleum Corporation (MPC) gets its products to market as of late 2025. It's a mix of direct sales, a massive branded network, and its integrated midstream arm, MPLX.

Wholesale and commercial direct sales to distributors and fleets

This channel moves product directly to large-volume users. The Refining & Marketing segment reported refined product sales volume of 3,835 mbpd for the three months ended June 30, 2025. For the nine months ended September 30, 2025, the segment's refined product sales volume was 3,689 mbpd.

Branded retail gas stations (Marathon and ARCO)

This is where the motoring public interfaces with MPC's brands. As of March 05, 2025, there were 7,472 Marathon Petroleum gas stations in the United States. The network includes two strong brands: Marathon and ARCO.

• Marathon brand gasoline is available through retail outlets in the U.S. and District of Columbia.
• ARCO has locations across the West Coast, Mexico, and Upper Midwest.
• Ohio had the highest concentration with 901 Marathon Petroleum gas stations as of March 2025.
• California had 823 locations as of March 2025.

The retail network also features associated establishments:

The Marathon stations are predominantly owned and operated by independent entrepreneurs.

MPLX pipeline, terminal, and marine logistics network

The midstream segment, primarily MPLX LP, moves crude oil, refined products, NGLs, and natural gas through its extensive network. MPLX's total natural gas processing capacity is 12.4 Billion Standard Cubic Feet Per Day.

Logistics throughput for the first quarter of 2025 showed growth:

Key projects are coming online to support this channel. The Secretariat processing plant, a 200 MMcf/d facility in the Permian basin, is expected in service at the end of 2025, boosting total Permian gas processing capacity to 1.4 Bcf/d. MPLX announced $1.7 billion in organic growth projects for 2025.

Direct sales of specialty products (asphalt, lubricants)

Marathon Petroleum Corporation offers a variety of industrial petroleum-based products through this channel. The company markets Marathon Lubricants and Asphalt.

International exports of refined products and NGLs

The company utilizes international markets for its refined products. Refined product export sales volumes reached 370 mbpd in 2024, reflecting strong international demand. MPLX is also advancing an LPG export terminal construction, anticipated in service in 2028.

Finance: review Q3 2025 cash position against the 2025 standalone capital outlook of $1.25 billion by next Tuesday.

Marathon Petroleum Corporation (MPC) - Canvas Business Model: Customer Segments

Wholesale & Commercial Clients represent the largest portion of the Refining & Marketing (R&M) revenue base, estimated at 65% of R&M revenue. This segment is defined by high-volume, business-to-business transactions requiring logistical reliability.

Retail Fuel Consumers are served through Marathon Petroleum Corporation's branded network, which includes approximately 5,300 branded stations across key regions like the Midwest, Gulf Coast, and West Coast (via ARCO). The core target market here skews toward vehicle-dependent drivers in the middle-income bracket, aged 25-64.

The Midstream sector, primarily executed through MPLX LP, serves a distinct set of customers, including other refiners and natural gas and NGL producers. This segment is strategically important for stable, fee-based revenue. For example, MPLX LP generated over $4.2 billion in Q1 2025 EBITDA, highlighting its role in the overall business structure.

Marathon Petroleum Corporation also addresses Industrial and Specialty Markets, which require specific refined products and feedstocks. This includes customers needing asphalt paving materials and chemical feedstocks, diversifying the end-use applications beyond transportation fuels.

Finally, the company serves International Buyers of LPG and refined products, though the primary operational focus remains concentrated east of the Rocky Mountains, which accounted for 88% of its 2024 refining throughput.

Here's a quick look at the operational scale supporting these customer segments as of the latest reported periods in 2025:

The customer base is diversified across these channels, which helps manage volatility in any single market. You can see the breadth of their commercial reach through these key customer types:

• Wholesale distributors and large fleet operators.
• Retail consumers at approximately 5,300 branded locations.
• Natural gas and NGL producers (Midstream).
• Industrial users requiring asphalt and chemical inputs.
• International purchasers of refined products and LPG.

The Midstream segment's growth, evidenced by its Q1 2025 EBITDA exceeding $4.2 billion, shows a strategic focus on securing long-term, contract-based relationships within that customer group, which is a defintely different risk profile than the commodity-exposed R&M side.

Marathon Petroleum Corporation (MPC) - Canvas Business Model: Cost Structure

You're looking at the core expenses driving Marathon Petroleum Corporation's operations as of late 2025. Honestly, the biggest chunk of cash leaving the door is for the raw material itself.

Cost of crude oil and feedstocks remains the largest variable cost component for Marathon Petroleum Corporation's refining segment. While we don't have a single, all-encompassing dollar figure for the full year's feedstock spend here, market dynamics show its impact; for instance, the Refining & Marketing (R&M) margin in the third quarter of 2025 was pressured by higher prices for feedstock.

Refining operating costs, which exclude planned turnaround expenses, show some fluctuation across the year, reflecting utilization and maintenance schedules. You can see the per-barrel cost trend below:

Planned refinery turnaround expenses, which are periodic maintenance shutdowns, are a significant, though managed, cost. For the full year 2025, Marathon Petroleum Corporation projected turnaround expenses around $450 million. To give you a sense of the quarterly impact, third-quarter 2025 turnaround costs totaled $400 million, and the company estimated these costs would rise to approximately $420 million for the fourth quarter of 2025, largely due to activity on the West Coast. This is definitely a cost that management must plan for meticulously.

Capital expenditures represent another major outflow, split between the standalone Marathon Petroleum Corporation and its midstream affiliate, MPLX.

Marathon Petroleum Corporation's standalone (excluding MPLX) capital spending outlook for 2025 is set at $1.25 billion. This spending is strategically weighted:

• Approximately 70% is focused on value-enhancing capital projects.
• The remaining 30% is allocated to sustaining capital.

The midstream arm, MPLX, has its own substantial capital plan focused on organic growth, which Marathon Petroleum Corporation relies on for logistics support and distributions. MPLX's organic growth capital plan for 2025 is $1.7 billion. Over 90% of this growth capital is targeting the Natural Gas and NGL Services segment.

Here's how the capital commitment breaks down for the two entities this year:

Finance: draft 13-week cash view by Friday.

Marathon Petroleum Corporation (MPC) - Canvas Business Model: Revenue Streams

You're looking at the core ways Marathon Petroleum Corporation (MPC) brings in cash as of late 2025. It's a mix of selling physical products and collecting fees from its midstream arm, MPLX.

The biggest chunk of money still comes from the traditional business, Refining and Marketing (R&M). For the twelve months ending September 30, 2025, Marathon Petroleum Corporation's total revenue was reported at $133.262 billion. To give you a sense of the R&M segment's operational strength in that period, the segment delivered an adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $1.8 billion for the third quarter of 2025.

The relationship with MPLX LP is a crucial, stable revenue source. It's not just about the direct sales of products; it's about the fee-based services. Marathon Petroleum Corporation expects to receive $2.8 billion in annualized cash distributions from MPLX LP, a figure that reflects a recent 12.5% distribution increase from MPLX. This predictable cash flow helps cover MPC's own dividends and standalone capital spending.

The Renewable Diesel segment is definitely a focus area, even if margins have been tight recently. For instance, the segment reported a third-quarter 2025 adjusted EBITDA loss of $56 million, despite production and utilization rates improving year-over-year. This revenue stream is tied closely to regulatory credits, which can cause volatility.

Marathon Petroleum Corporation also pulls in revenue from other areas that support the main operations. Here's a quick look at some of the key financial metrics we're seeing for 2025, based on the latest reported figures:

You'll also find revenue generated from the sales of specialty products. These include things like asphalt and petrochemical feedstocks, which are integrated into the overall Refining & Marketing segment's results. The business model relies on leveraging these integrated value chains.

The revenue streams are supported by specific operational achievements:

• Crude capacity utilization reached 95% in Q3 2025.
• Total throughput was 3.0 million barrels per day (bpd) in Q3 2025.
• MPLX's quarterly distribution increase was 12.5%.
• MPC returned $3.2 billion to shareholders year-to-date Q3 2025.

Finance: draft 13-week cash view by Friday.