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Released November 05, 2025 | SUGAR LAND
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Written by Will Ploch, Assistant Editor-in-Chief for Industrial Info Resources (Sugar Land, Texas)
Undeterred by weaker-than-expected results amid rising maintenance costs and persistent inflation, Marathon is substantially boosting its midstream capacity in the Permian Basin.
Marathon reported $400 million in maintenance-related costs for third-quarter 2025, compared with $287 million in the same period last year. In a quarterly earnings-related press release, executives said they expect such costs to reach about $420 million in the fourth quarter. This offset positive results in Marathon's refining and marketing business, where per-barrel margins averaged $17.60, compared with $14.63 in the same period last year.
Industrial Info is tracking nearly $1.5 billion worth of maintenance-related projects from Marathon that are set to kick off over the next five years, nearly 80% of which are in the company's refining business. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project Database can learn more about these developments--including capacities, individual investment values and necessary equipment--from a detailed list of project reports.
"Margins were weaker in the third quarter as higher diesel prices and RIN (renewable identification numbers) values were more than offset by higher feedstock costs," said John Quaid, the chief financial officer of Marathon, in an earnings-related conference call.
By the Numbers
On the midstream side of its business, Marathon acquired Northwind Delaware Holdings LLC (also called Northwind Midstream) during the third quarter, enhancing Marathon's gas gathering, treating and processing services in New Mexico's portion of the Permian Basin. The portfolio includes more than 200,000 dedicated acres, more than 200 miles of gathering pipelines, and 150 million cubic feet per day of sour gas-treating capacity.
Marathon expects the newly acquired business' capacity to increase to 440 million cubic feet per day in the second half of 2026, following the expected addition of a gas-treating unit at the Titan Plant in Jal, New Mexico. Marathon's own projects in the Permian Basin include the ongoing construction of the Secretariat Cryogenic Natural Gas-Processing Plant in Orla, Texas, which, like the Titan Plant, is designed to source gas from the Permian's Delaware Basin area. Subscribers can read detailed reports on the Titan and Secretariat projects.
"When we look at the midstream, our growth opportunities are focused in the Permian," said Maryann Mannen, the chief executive officer of Marathon, in the earnings call. "Most recently, we put some capital to work to acquire a sour gas-treating set of assets. And the reason why we think that is so important is we believe that this is some of the best rock in the Permian is in the Delaware Basin," specifically in New Mexico's Lea County.
Marathon's net income for third-quarter 2025 was reported to be $1.37 billion, compared with $622 million in the same period last year. Net revenues stood at $35.85 billion, a 1.35% increase.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and proposed projects from Marathon Petroleum.
Key Takeaways
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Summary
Undeterred by weaker-than-expected results amid rising maintenance costs and persistent inflation, Marathon is substantially boosting its midstream capacity in the Permian Basin.
One-Two Punch of Maintenance, Inflation Hit Bottom Line
Marathon Petroleum Corporation (Findlay, Ohio) faced a rough third quarter, as rising inflation and maintenance-related costs largely negated financial benefits from strong refining margins. The company is building out its capacity to gather and process natural gas in the Permian Basin through a series of acquisitions and organic expansion projects. Industrial Info is tracking more than $5.8 billion worth of active and proposed projects from Marathon, more than half of which is attributed to crude oil-refining projects.Marathon reported $400 million in maintenance-related costs for third-quarter 2025, compared with $287 million in the same period last year. In a quarterly earnings-related press release, executives said they expect such costs to reach about $420 million in the fourth quarter. This offset positive results in Marathon's refining and marketing business, where per-barrel margins averaged $17.60, compared with $14.63 in the same period last year.
Industrial Info is tracking nearly $1.5 billion worth of maintenance-related projects from Marathon that are set to kick off over the next five years, nearly 80% of which are in the company's refining business. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project Database can learn more about these developments--including capacities, individual investment values and necessary equipment--from a detailed list of project reports.
"Margins were weaker in the third quarter as higher diesel prices and RIN (renewable identification numbers) values were more than offset by higher feedstock costs," said John Quaid, the chief financial officer of Marathon, in an earnings-related conference call.
By the Numbers
- $400 million: Marathon's maintenance-related costs in the third quarter, a substantial year-over-year increase
- $17.60 vs. $14.63: Marathon's per-barrel margins in its refining and marketing business for the third quarters of 2025 vs. 2024
- $1.5 billion: Total value of Marathon maintenance-related projects set to kick off through 2030, as tracked by Industrial Info
Acquisitions, Buildouts Drive Permian Business
Marathon expects to spend $200 million this year on its Galveston Bay Refinery in Texas City, Texas, with another $575 million of investment expected over 2026 and 2027. These developments include the ongoing addition of a distillate hydrotreater unit, which is designed to better produce ultra-low sulfur diesel. Subscribers can learn more from a detailed project report and plant profile.On the midstream side of its business, Marathon acquired Northwind Delaware Holdings LLC (also called Northwind Midstream) during the third quarter, enhancing Marathon's gas gathering, treating and processing services in New Mexico's portion of the Permian Basin. The portfolio includes more than 200,000 dedicated acres, more than 200 miles of gathering pipelines, and 150 million cubic feet per day of sour gas-treating capacity.
Marathon expects the newly acquired business' capacity to increase to 440 million cubic feet per day in the second half of 2026, following the expected addition of a gas-treating unit at the Titan Plant in Jal, New Mexico. Marathon's own projects in the Permian Basin include the ongoing construction of the Secretariat Cryogenic Natural Gas-Processing Plant in Orla, Texas, which, like the Titan Plant, is designed to source gas from the Permian's Delaware Basin area. Subscribers can read detailed reports on the Titan and Secretariat projects.
"When we look at the midstream, our growth opportunities are focused in the Permian," said Maryann Mannen, the chief executive officer of Marathon, in the earnings call. "Most recently, we put some capital to work to acquire a sour gas-treating set of assets. And the reason why we think that is so important is we believe that this is some of the best rock in the Permian is in the Delaware Basin," specifically in New Mexico's Lea County.
Marathon's net income for third-quarter 2025 was reported to be $1.37 billion, compared with $622 million in the same period last year. Net revenues stood at $35.85 billion, a 1.35% increase.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and proposed projects from Marathon Petroleum.
Key Takeaways
- Marathon executives expect maintenance-related costs to reach about $420 million in the fourth quarter
- Galveston Bay Refinery set for $575 million of investment from 2026 through 2027, including the addition of a new hydrotreater
- Major acquisitions likely to boost Marathon's performance in the Permian Basin
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
