Group 1 - The presentation features Murphy USA, with key executives including CEO Mindy West and other senior leaders [1][2] - The format of the event is a presentation led by Mindy West, marking her first live presentation as CEO [2]

Summary of Murphy USA Conference Call Company Overview - Murphy USA is the fourth largest convenience store operator in a fragmented market, serving 160 million customers daily [4][6] - The company has grown to a network of 1,800 stores since its first store was built in 1996, with plans to continue expanding [6][9] Industry Insights - The convenience store industry has approximately 152,000 stores, with a notable migration of new stores and population towards the Southeast and Southwest regions of the U.S. [5] - 43% of the population lives within a mile of a convenience store, and about two-thirds visit at least once a week, indicating high trip frequency [5] Growth Strategy - Murphy USA has a durable growth model focused on building high-performing new stores that yield attractive returns [7] - The company plans to accelerate new store openings, aiming for a robust pace of growth over the next several years [9] - The strategic pillars include store growth, diversifying the merchandising mix, sustaining cost profiles, leveraging market volatility, and long-term investments [9][12] Financial Performance - Despite headwinds in the fuel sector, the company's fuel performance remained resilient, and fuel is expected to be a major growth catalyst [7] - New stores built from 2021 to 2023 are delivering higher merchandise dollars and EBITDA, meeting return expectations [14] - The company has grown its square footage by over 100% in the past five years, with plans for further expansion [15] Customer Experience and Offerings - Murphy USA is enhancing its customer experience with a brand refresh that includes a new color scheme and improved store layouts, which is cost-neutral [16] - The company is focusing on its nicotine category, having increased its market share from 16% to 20% since 2019 [17] - The convenience store chain is also refocusing on food and beverage offerings to drive traffic and increase basket size [20] Operational Efficiency - The company has optimized labor costs, which constitute about two-thirds of store expenses, with only a 2% increase last year [23] - Efforts to reduce shrink resulted in a $4 million reduction through better inventory management [23] - Lifecycle management strategies are being implemented to predict and reduce maintenance costs [24] Competitive Landscape - Since 2020, 600 new stores have opened within three miles of Murphy USA locations, impacting about a third of its network [27] - The company has a strategy to manage competition, expecting market stabilization and recovery of margins over time [28][31] Capital Allocation - Murphy USA maintains a balanced approach to capital allocation, focusing on growth and share repurchases, with intentions to invest in initiatives that drive value [41] Future Outlook - The company is confident in its growth potential and aims to improve EBITDA performance in the coming years [38][36] - Leadership changes and a cultural shift are being implemented to enhance agility and accountability within the organization [36]

Murphy USA Inc. 1 Murphy USA Investor Deck Raymond James Institutional Investor Conference March 2026 Cautionary statement This presentation contains forward-looking statements. These statements, which express management's current views concerning future events or results, are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements include, but are not limited to, the volatility and level of c ...

Company Overview - Murphy USA is a leading fuel and merchandise retailer with nearly 1,700 locations across the U.S., focusing on the Southeast, Southwest, and Midwest regions [5] - The company reported a total revenue of $17.02 billion and a net income of $470.60 million for the trailing twelve months (TTM) [4] - The dividend yield stands at 0.64%, and the stock experienced a 1-year price change of -15.48% as of February 28, 2026 [4] Transaction Summary - Kieth A. Emery, Senior Vice President of Fuels, sold 899 shares of common stock for approximately $344,000, with a reported share price of $382.53 [2][6] - Following the transaction, Emery's direct and indirect common stock holdings were reduced to zero, indicating a complete disposition of all directly held shares [8] Recent Company Performance - In 2025, Murphy USA's stock experienced its first annual price decline since 2018, falling nearly 20% [6] - The company reported Q4 FY 2025 earnings on February 4, 2026, with an earnings per share (EPS) of 7.53, exceeding the estimate of 6.96 [9] - Significant operational changes were made towards the end of 2025, including the layoff of approximately 100 corporate employees and the appointment of Mindy West as CEO on January 1, 2026 [7] Market Position and Challenges - Murphy USA is known for lower fuel prices, which may sacrifice quality, as it lacks Top Tier certification for fuel quality [6] - Increased competition in the market offering affordable prices poses a challenge for Murphy USA's appeal among drivers [6] - Geopolitical tensions threaten fuel supply, impacting the company and the broader sector [6]

Core Viewpoint - Murphy USA Inc. will participate in the Raymond James 2026 Institutional Investors Conference, highlighting its engagement with investors and commitment to transparency [1] Company Participation - Mindy West, President and CEO of Murphy USA, is scheduled to present at the conference on March 2, 2026, at 9:15 a.m. Eastern Time [1] - The presentation will be accessible via a live audio webcast on the company's official website [1] Company Overview - Murphy USA is recognized as a leading retailer in the gasoline and convenience store sector [1]

Financial Performance - The company sold approximately 4.8 billion gallons of motor fuel through its retail outlets in 2025[32]. - The total fuel contribution per gallon was 30.7 cents in 2025, slightly up from 30.5 cents in 2024, but down from 31.4 cents in 2023[41]. - Retail fuel margin per gallon remained stable at 28.1 cents in both 2025 and 2024, compared to 27.6 cents in 2023[41]. - Merchandise sales revenue per store per month was $203.7 thousand in 2025, a slight decrease from $204.3 thousand in 2024[41]. - Merchandise margin as a percentage of sales increased to 20.2% in 2025 from 19.8% in 2024[41]. Capital Expenditures and Growth Plans - The company plans to build 45 to 55 NTI locations and up to 30 raze-and-rebuilds in 2026, targeting 50-plus NTI and up to 30 raze-and-rebuilds per year in future periods[25]. - The company expects capital expenditures for environmental compliance to be approximately $11.5 million in 2026[52]. - The company expects to maintain a disciplined capital expenditure program focused on growing ratably through periods of both high and low fuel margins[21]. Shareholder Returns - The company repurchased a total of 1,536,701 common shares for approximately $652.0 million in 2025, at an average price of $424.28 per share[22]. - The quarterly dividend was raised four times during 2025 from $0.48 per share in Q4 2024 to $0.63 per share, amounting to $2.52 per share on an annualized basis as of Q4 2025[22]. Employee and Operational Insights - The company has approximately 16,900 employees as of December 31, 2025, contributing to its sustainable business model[23]. - As of December 31, 2025, Murphy USA employed approximately 16,900 individuals, including 5,900 full-time and 11,000 part-time employees[64]. - The company has completed the alignment of all QuickChek benefit programs, ensuring equitable and competitive benefit packages for all eligible employees[69]. - Murphy USA emphasizes a strong safety culture and has developed a rapid response program to address safety events efficiently[70]. - The company offers comprehensive health benefits, including telehealth, dental, vision, and life insurance, as well as a 401K program with company match[70]. Market and Competitive Landscape - Consumer demand for motor fuel typically increases during the summer driving season, impacting revenues and sales volumes, which are generally higher in the second and third quarters[46]. - The company faces increasing competition from non-traditional retailers, which are expected to grow their market share in the gasoline sector[44]. Supply Chain and Distribution - The company has a strong distribution system that leverages scale to deliver favorably priced products, enhancing margins and volume[20]. - The company renewed a supply contract with Core-Mark for another five years, extending through 2031, with over 78% of merchandise sourced from this wholesaler[39]. Financial Management and Risk - The company maintains a conservative financial structure to endure unfavorable commodity price movements and compressed fuel margins[21]. - Murphy USA has a floating rate term loan of $600 million and a revolving credit facility with $183 million outstanding as of December 31, 2025, both tied to the Adjusted Term SOFR Rate or Prime Rate[263]. - Murphy USA utilizes limited derivative instruments to manage commodity price risks related to refined products, with short-term contracts in place as of December 31, 2025[260]. - A 10% increase or decrease in the benchmark price of commodities underlying derivative contracts would have been immaterial to the company[261]. - Changes in interest rates could cause fluctuations in interest expenses, but a 10% change would have an immaterial impact on the financial statements[263]. Corporate Strategy and Diversity - The company aims to diversify its merchandise mix and increase higher-margin non-nicotine sales through refined merchandising and store designs[26]. - Murphy USA is committed to promoting diversity through talent management strategies, including annual succession planning and performance reviews[68]. - The company utilizes a standard POS system across all stores, enhancing operational efficiency and supporting various payment methods[48]. Infrastructure - Murphy USA's headquarters spans approximately 120,000 square feet, located in El Dorado, Arkansas, along with additional office buildings for support personnel[72].

Dividend Announcement - Murphy USA Inc. declared a quarterly cash dividend of $0.63 per share, which annualizes to $2.52 per share, marking a 29% increase from the Q1 2025 dividend [1][1][1] Company Overview - Murphy USA Inc. operates over 1,800 stores primarily in the Southwest, Southeast, Midwest, and Northeast United States, serving approximately two million customers daily [1][1][1] - The company ranks 231 among Fortune 500 companies and employs around 16,900 individuals [1][1][1] Financial Performance - For Q4 2025, Murphy USA reported a net income of $141.9 million, or $7.53 per diluted share, slightly down from $142.5 million, or $6.96 per diluted share, in Q4 2024 [1][1][1] - The full-year net income for 2025 was $470.6 million, or $24.10 per diluted share [1][1][1] Board of Directors Update - Michael G. Kulp has been appointed as an independent director, bringing extensive experience in retail food service operations and leadership in scaling multi-unit businesses [1][1][1]

Core Insights - Murphy USA Inc. (MUSA) reported fourth-quarter 2025 adjusted earnings per share of $7.53, exceeding the Zacks Consensus Estimate of $6.67 and up from $6.96 in the previous year, driven by improved merchandise results [1][10] - Operating revenues reached $4.7 billion, a 0.7% year-over-year increase, but fell short of consensus expectations by $57 million due to lower petroleum product sales [1][2] Revenue Breakdown - Petroleum product sales amounted to $3.6 billion, down 0.6% from the fourth quarter of 2024 and below the estimate of $3.7 billion [2] - Merchandise sales increased by 3.7% year over year to $1.1 billion, contributing positively to overall revenue [2] Fuel Contribution - Total fuel contribution rose 8.9% year over year to $423.6 million, with a retail fuel margin of 34.3 cents per gallon, up 5.5% from the previous year [3][10] - Retail fuel contribution improved 10.8% year over year to $383 million, with retail gallons increasing by 3.1% to 1,234.2 million, surpassing estimates [4] Merchandise Contribution - Merchandise contribution increased by 2.1% to $213.2 million, although unit margins slightly decreased to 19.6% from 19.9% a year ago [5] - On a same-store sales (SSS) basis, total merchandise contribution rose by 0.4%, primarily due to a 2.7% increase in non-nicotine margins [5] Balance Sheet and Share Buyback - As of December 31, Murphy USA had cash and cash equivalents of $28.9 million and long-term debt of $2.2 billion, with a debt-to-capitalization ratio of 77.6% [7] - The company repurchased shares worth $67.5 million during the quarter [7] 2026 Guidance - For 2026, Murphy USA plans to open 45 to 55 new stores and complete up to 30 raze-and-rebuild projects, with merchandise contribution expected to be between $890 million and $900 million [8][10] - Capital expenditures are projected to total between $475 million and $525 million for the year [8]

Financial Data and Key Metrics Changes - The company is guiding for EBITDA of approximately $1 billion for the current year, with expectations for stronger growth in 2027 and 2028 to reach a long-term target of $1.2 billion [19][21] - The company expects to see same-store volume pressure of 1%-3% in a lower-price environment, necessitating competitive pricing strategies [33][36] Business Line Data and Key Metrics Changes - The company anticipates that each new class of 50 stores will generate between $35 million and $40 million of EBITDA at maturity after a three-year ramp [58] - The company has seen strong performance in the nicotine category, particularly in pouches and other products, despite some volume declines in cigarettes [67] Market Data and Key Metrics Changes - Competitive pressures vary by market, with some states like Texas showing higher margins and volumes, while others like Colorado and Florida are experiencing lower metrics [7][8] - The company is experiencing a relatively stable and low fuel price environment, which impacts customer price sensitivity [27][28] Company Strategy and Development Direction - The company is focusing on a culture shift towards quicker collaboration and more nimble decision-making, while maintaining its core strategies [80] - The company aims to reduce reliance on fuel and tobacco while exploring innovation opportunities in its portfolio, customer engagement, and advanced technology [81][82] Management's Comments on Operating Environment and Future Outlook - Management believes that competition, while disruptive, ultimately leads to higher margins as markets stabilize [9] - The company is preparing for potential volatility in the fuel environment, which could impact same-store performance [21][27] Other Important Information - The company is proactively investing in maintenance to enhance uptime and customer experience, expecting to save approximately $6 million to $8 million in maintenance costs [12] - The company has a modest exposure to SNAP changes, which are expected to have a limited impact on overall sales [70][72] Q&A Session Summary Question: Competitive pressure compared to 6-8 months ago - Management indicated that competitive pressures vary by market and that new entrants typically price low initially, impacting same-store volumes [5][6] Question: Maintenance capital spending and its impact - Management clarified that increased maintenance capital spending is a proactive measure to avoid future disruptions and enhance customer experience [10][11] Question: Long-term EBITDA growth drivers - Management discussed the importance of sustaining 50+ new store openings annually and the impact of a normalized fuel environment on EBITDA growth [20][21] Question: Fuel margins outlook - Management expects fuel margins to remain stable, with a target of around $0.30 per gallon, despite low volatility [27][28] Question: Nicotine environment outlook - Management believes the company is well-positioned to take share in the nicotine market and will continue to be promotion-driven [37][38] Question: Per-store expense growth drivers - Management highlighted successful expense management strategies and expects per-store expense growth to be around 4% going forward [42][44] Question: Impact of winter storms on operations - Management acknowledged higher maintenance costs due to winter storms but also noted higher margins leading into those storms [46][47] Question: QuickChek brand performance - Management reported stronger sales at QuickChek but acknowledged margin pressures and the need to refocus on core offerings [84][85]

Financial Data and Key Metrics Changes - The company reported a guidance for 2026 capturing the timing and scale impacts of its new store program, expecting 50-plus new store openings annually to contribute $35 million-$40 million of EBITDA once they complete their three-year ramp [20][59] - The company anticipates a same-store volume pressure of 1%-3% in a lower-price environment, necessitating investment to maintain competitive positioning [33][36] - The projected maintenance capital spending is expected to save approximately $6 million-$8 million in maintenance costs by proactively replacing aging equipment [12] Business Line Data and Key Metrics Changes - Same-store gallons were impacted by competitive pressures, with varying performance across states; Texas showed higher margins and volumes, while Colorado and Florida experienced lower metrics [7][8] - The company is focusing on enhancing its nicotine product offerings, with strong growth expected in pouches and other nicotine categories, despite some anticipated challenges in duplicating past promotional successes [38] Market Data and Key Metrics Changes - The company expects fuel margins to remain stable at around $0.30 per gallon, reflecting a structural component supporting margins despite low volatility [28][29] - The company has a modest exposure to changes in SNAP benefits, estimating a headwind of less than $5 million overall, primarily affecting discretionary categories [71] Company Strategy and Development Direction - The company is committed to a culture shift aimed at quicker collaboration and more nimble decision-making, while maintaining its core strategies of everyday low pricing and continuous improvement [80] - The focus will be on innovation to support core business growth, with an emphasis on portfolio, customer engagement, and advanced technology [82] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to grow EBITDA, contingent on a more normalized fuel environment and sustained new store openings [21][22] - The company is prepared for potential impacts from winter storms and is cautious about increasing EBITDA guidance due to uncertainties in the operating environment [70] Other Important Information - The company is actively pursuing small tuck-in acquisitions to enhance market density and improve operational efficiency [51] - QuickChek brand is focusing on core products and simplifying its menu to improve margins and customer experience [85] Q&A Session Summary Question: Competitive pressure compared to 6-8 months ago - Management noted that competitive pressures vary by market, with some states experiencing higher margins and volumes while others face challenges [7][9] Question: Maintenance capital spending impact - Management clarified that the increase in maintenance capital spending is a proactive measure to avoid future disruptions and enhance customer experience [11] Question: Long-term EBITDA growth drivers - Management indicated that achieving long-term EBITDA guidance depends on sustaining new store openings and improving operational initiatives [20][22] Question: Fuel margin outlook - Management expects fuel margins to remain stable, with low volatility impacting customer price sensitivity [28] Question: Nicotine environment outlook - Management believes it remains an ideal retailer for nicotine manufacturers and anticipates continued growth in nicotine categories [38] Question: Per-store expense growth drivers - Management highlighted successful expense management strategies, including self-maintenance and improved loss prevention measures [42][43] Question: Impact of winter storms on operations - Management acknowledged potential higher maintenance costs due to winter storms but expects overall balance in margins [47] Question: QuickChek brand performance - Management reported stronger sales at QuickChek but noted ongoing margin pressures, focusing on core product offerings to drive traffic [85]