Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Adjusted EBITDA | $11.7 billion | Increased $8.5 billion year-over-year |
| Refining & Marketing segment adjusted EBITDA | $9.9 billion | Not stated |
| Refining & Marketing adjusted EBITDA per barrel | $34.15 | Not stated |
| Operating cash flow excluding working capital | $8.5 billion | Not stated |
| Capital returned to shareholders | $3.3 billion | Not stated |
Guidance and outlook
- Refining & Marketing crude throughput volumes are projected at 2.8 million barrels per day for Q4.
- Refining & Marketing utilization is projected at 95% for Q4.
- Refining & Marketing turnaround expenses are projected at $230 million for Q4.
- Renewable diesel segment utilization is projected at 85% for Q4.
- Renewable diesel turnaround costs are projected at $65 million for Q4.
How management sounded
Positive (+6 on our -10 to +10 scale). Management delivered record utilization and strong cash flow while executing a clear strategic divestiture and raising the dividend. Management sounded more upbeat than on 8% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Asset Divestiture
Asked: Neil Mehta from Goldman Sachs asked about the rationale for the St. Paul Park and Mandan refinery sale.
Answer: Management explained the sale aligns the portfolio with their long-term strategy and allows them to reinvest in the Gulf Coast.
Refining Macro
Asked: Manav Gupta from UBS asked about the margin outlook and potential demand destruction.
Answer: Management remains constructive on 2027 and noted they have not seen demand destruction in jet or diesel.
Capital Allocation
Asked: Jason Gabelman from TD Cowen asked about the use of proceeds from the asset sale.
Answer: Management intends to reinvest in the U.S. Gulf Coast and continue their commitment to share buybacks.
Renewable Diesel
Asked: Matthew Blair from TPH asked about renewable diesel performance and fourth quarter trends.
Answer: Management noted strong operational performance and expects similar trends in the fourth quarter.
What to watch before the next call
- The closing of the St. Paul Park and Mandan refinery sale to CVR Energy by year-end 2026.
- The progress of Gulf Coast projects, specifically the distillate hydro-treater at Galveston Bay and Garyville feedstock optimization, expected by year-end 2027.
- Management's detailed 2027 capital plan to be provided in February.
